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Press Release

Revocation of Self-Certification by the
Nuclear and Industrial Safety Agency

June 30, 2011
Cosmo Oil Co., Ltd.
Corporate Communication Dept.
Public Relations Office

Cosmo Oil Co., Ltd. (Head Office: Minato-ku, Tokyo / Paid-in Capital: \107.2 billion / President and Representative Director: Yaichi Kimura) wish to express our sincere apologies for the concerns and inconveniences caused to the people in the local area and to all those whom have been affected by the fire/explosion of the liquefied petroleum gas tanks at Chiba Refinery.

The Nuclear and Industrial Safety Agency has revoked self-certification of Chiba Refinery as per details described below.

Details

Based on the High Pressure Gas Safety Act, Cosmo Oil Co., Ltd. has received notice for revocation of self-certification at Chiba Refinery in relation to the completion inspection and safety inspection as a result of the fire/explosion which occurred at Chiba Refinery following the earthquake on March 11.

Three reasons were given for the revocation, which are (1) Injuries due to the fire/explosion and the tragedy itself such as debris scattering outside the refinery. (2) Governor of Chiba Prefecture has given order to suspend the use of loading facilities for liquefied petroleum gas. (3) Criteria for authorization of self-certification as specified under the High Pressure Gas Safety Act was not met for the loading facilities of liquefied petroleum gas.

As a result of the revocation, Chiba Refinery will not be able to self-certify the inspections (completion inspection / safety inspection) and will need to be certified by the governor of Chiba Prefecture.

In addition, based on the High Pressure Gas Safety Act, Chiba Refinery have been given warning and instructed to produce preventive measures for inadequate procedures and not strictly conforming to the required criteria. Yokkaichi Refinery have also been given warning and instructed to produce preventive measures for the future.

Cosmo Oil Co., Ltd. takes the revocation and the warning seriously and will take all preventive actions and regain trust in the company.

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