COATING STANDARD Primary surface preparation Blasting and profile

COATING STANDARD Primary surface preparation - Blasting and profile: Sa ½ (profile: 30 - 75 ㎛) (average? ) – ISO 8501 -1 * restriction: humidity 85% or above, surface temp. below 3℃ - ISO 8503 -1/3 * surface cleanliness and roughness profile check before application - Salt limit(Na. Cl): ≤ 50 mg/㎡ (ISO 8502 -9 Conductivity test) - Shop primer: * Inhibitor free zinc silicate based or equivalent * Compatibility with main coating system: shall be confirmed by coating manuf. 1

COATING STANDARD Secondary Surface Preparation(SSP): Steel condition - Edge Grinding The steel surface should be prepared so that the coating selected can achieve an even distribution at the required NDFT and have an adequate adhesion by removing weld spatter and any other surface contamination in accordance with ISO 8501 -3 grade P 2. Edges to be treated to a rounded radius of minimum 2 mm, or subjected to three pass grinding or at least equivalent process before painting. A strong necessity for development of a grinding tool or process to mitigate the huge burden for labor and progress management. The amount grinding activities will tremendously be increased at block assembly stage. 2

COATING STANDARD SSP – surface treatment At block assembly stage i. ii. Damaged surface of shopprimer and welds: SIS Sa 2½ ( ISO 8501 -1) Compatible intact surface of shopprimer: Sweep blasting, high pressure water washing or equivalent method. (cf. compatible zinc silicate shop primer - cross over with other epoxy coatings: appdx. 1) iii. Intact shop primer not compatible with the main coat: Sa 2 (70% removal) After erection i. iii. Butts: SIS St 3 or better or Sa 2½ where practicable. (ISO 8501 -1) Small damages up to 2% of total area: St 3 Contiguous damages over 25 m 2 or over 2% of the total area of the tank: Sa 2½ (definition of damage, calculation of damaged area? , 순차적인 덧칠로 해결? ) Block division, erection procedure, working process should be take into account the limit of the amount of coating damages, erection butts to avoid the application of the blasting after erection. 3

COATING STANDARD SSP - DUST i Ii Dust grade “ 1” for dust size class “ 3” to “ 5” by means of adhesive tape test (ISO 8502 -3) Dust size classes “ 1” and “ 2”: shall be removed if visible (naked eye) Sampling of Current Standard for DUST grade Ceiling Wall Floor 4 Dust Size (ISO 8502 -3) 0 : Particles not visible under x 10 magnification 1 : Particles visible under x 10 magnification but not with normal or corrected vision(usually particles less than 50㎛ in diameter) 2 : Particles just visual with normal or corrected vision (usually particles between 50㎛ and 100㎛ diameter) 3 : Particles clearly visible with normal or corrected vision(particles up to 0. 5 mm in diameter) 4 : Particles between 0. 5 mm and 2. 5 mm in diameter 5 : Particles lager than 2. 5 mm in diameter

COATING STANDARD Soluble salt limit ≤ 50 mg/m 2 of Na. Cl ISO 8502 -6: Extraction methodology (Bresel only ? ) ISO 8502 -9: Assessment of soluble salt by conduct metric (Pre-washing is not explicitly required) A test result for the comparison of the content of Sodium Chloride in Total Dissolved Salt 5

QUALIFICATION OF COATING INSPECTOR i. NACE CIP(COATING INSPECTOR PROGRAM): LEVEL II, or ii. FROSIO(NORWEGIAN STANDARD NS 476): LEVEL RED, or Iii Equivalent as verified by Administration or RO - Inspection items: Table in para 6. 2 - Recordings: results from the inspection shall be recorded by the inspector and shall be included in the CTF – daily log and NC report. Current Status for Certified Coating Inspector (May, 2006) No. of Inspector No of Certified Ship Builder 240 39 (16%) 7 major ship yard in Korea Paint Maker 507 78 (15%) 6 major paint Maker in Korea Increased inspection activities for DFT measurement acc. to Annex 3 Ship Builder 480 Paint Maker 1, 014 Remarks (FROSIO) Increased documentation for provision of CTF. Increased activity for the test such as dust, soluble salt, profiles, etc. Other activity for approval of the quality control system At least, more than two times of the present coating inspectors are necessary to meet the PSPC comparing with the current shipbuilding standards. 6

VERIFICATION REQUIREMENTS Type Approval, Quality Control and Verification Approve quality control system? ) Type Approval of Costing System – by a third party (Who can be a third party? ) Coating Manufacturer Administration or R. O Technical Data Sheet Check Type Approval Test Paint Test Lab. Type Approval Cert. Preparation of Coating Technical File ? Ship Builder Issue check Approve quality control system ? (How ? ) Coating Inspector Who will employ the inspectors ? Coating Inspection Should IACS do direct coating inspection rather than monitoring? Inspection Report Approval of Quality Control System of the ship yards? Coating Technical File Monitoring Check (How ? ) Review Ship Owner More clarification is needed Safety Construction Certificate 7 Verify Issue

ANNEX 3 DFT measurements The following verification check points of DFT are to be taken: . 1 one gauge reading per 5 m 2 of flat surface areas; . 2 one gauge reading at 2 to 3 meter intervals and as close as possible to tank boundaries, but not further than 15 mm from edges of tank boundaries; . 3 longitudinal and transverse stiffener members: One set of gauge readings as shown below, taken at 2 to 3 meters run and not less than two sets between primary support members; Note: Arrows of diagram indicate critical areas and should be understood to mean indication for both sides. . 4 Three(3) gauge readings for each set of primary support members and 2 gauge readings for each set of other members as indicated by the arrows in the diagram; . 5 for primary support members (girders and transverses) one set of gauge readings for 2 to 3 meters run as shown in figure 3 above but not less than three sets; . 6 around openings one gauge reading from each side of the opening; . 7 five gauge readings per square meter (m 2) but not less than three gauge readings taken at complex areas (i. e. large brackets of primary support members); and. 8 Additional spot checks to be taken to verify coating thickness for any area considered necessary by the coating inspector. 8

Evaluation sheet Expected increase of ship building cost based on evaluation of new performance standards Items Cost (USD) Man power (M/H) Construction schedule delay (Day) NDFT 320 ㎛ (90/10) Dust (ISO 8502 -3) Soluble Slat (ISO 8502 -6, 9) Stripe coating Edge grinding (ISO 8501 -3, P 2) Secondary surface preparation Block Hull Qualified Inspector Verification DFT measurement (ANNEX 3) Others (incl. provision of CTF) 9 New facilities (USD) Total (USD) Expected additional man power (Area/persons ) Remarks