It is PETROGOLD' policy to operate its business as a company committed to sound environmental management and with concern for the well-being of our common environment. Our goal is to ensure that company facilities and operations are in compliance with international, state and local environmental standards. We believe that an appropriate balance can and should be achieved between environmental goals and economic health. We execute jobs with the special responsibility of environmental management. This requires each PETROGOLD employee to participate in and accept responsibility for achieving the following goals:

• Operation of our facilities in an environmentally sound manner
• Safe handling of production materials
• Conservation and recycling of raw materials and reduction in the amount of waste generated by the company’s production processes.

The company’s commitment to these goals includes the following specific elements

• All PETROGOLD facilities will operate in an environmentally responsible manner and in compliance with environmental laws and regulations
• PETROGOLD will maintain compliance programs to inform and train employees in the performance of their duty to fulfill the company’s environmental policies.
• Through audits and other means, the company will monitor operations to help assure that practices in our workplaces conform to our policies
• PETROGOLD management will make environmental responsiveness and resource conservation an integral part of business management, and will support finding sound solutions to such environmental problems as may arise.

Each PETROGOLD work site is expected to manage its activities in a manner that will achieve the goals of this Environmental Policy. Each PETROGOLD employee is expected to work toward these goals and is encouraged to advise his superior promptly of any situation that may be in conflict with this Policy.