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True Gopv of the Letter Sent to the Minister of Enerqv Translated into Enqlish Registered at: - Ministry of Energy and Water Minister's Office

No.2692 Date: 161912019

- Prime Minister Office No. 1735/2

Date: 161912019

To the Minister of Energy

Summoner: Societe Huiles et Derives S.A.L. Represented by its Attorney-at-Law Me. Elie Naufal

Dear Sir, Whereas, the Summoner owns a number of properties in Selaata real estate area, and has obtained on such basis licenses to occupy the adjacent maritime public domain and has constructed thereon a port, factories and buildings legally exploited and operated by eight hundred employees; and Whereas, the Summoner heard recently that the Ministry of Energy has set up a project whereby it offers to the investors to lease them the properties belonging to the Summoner for a period of thirty years, provided that they build theron a power plant

working on liquefied natural gas and equipped with an FSRU, and sell the electricity produced to Electricite Du Liban; and Whereas, it is compulsory for the implementation of this project, to expropriate the lands belonging to the Summoner by the EDL in the first stage; and,

Whereas, the established jurisprudence of the State's Court has considered that it is required for the legality of the expropriation, to be of tangible public interest according to the theory of checks and balance; which requires the fulfillment of the following conditions:

That the party requiring the expropriation does not have access to lands that allow him to realize its project within equal conditions. That the financial cost of this expropriation is not very expensive compared to other methods that can be followed to achieve the project. That this expropriation does not lead to damages or excessive disadvantages in comparison with the benefit it provides; and

Whereas, it is certain, from the records of the real estate registry, and by the recognition of the former Minister of Energy Cesar Abi Khalil during his recorded lecture at the Economics and Business Forum for the year 2018, that:

EDL owns real estate properties adjacent to the beach in the Selaata region; about 3 km from the Summoner's properties. . The international consultant Mott McDonald appointed by the Ministry of Energy to conduct a preliminary feasibility study for building a power plant that works on gas, and after studying 24 potential sites, has reached the conclusion that the two best sites are Zahrani and the lands owned by EDL in Selaata. . The cost of expropriation of the square meter of beachfront properties similar to the Summoner's properties, is more than ten thousand US Dollars (that means that the cost of expropriation of the Summoner's properties is close to five hundred million US Dollars), and therefore it is way better to build the power plant on the real estate properties owned by EDL ; and

Whereas, it is certain from the report prepared by the international consultant Enviromental Ressources Management (ERM) to study the safety and environmental impact of establishing a natural gas liquefaction plant (FSRU) on the Summoner's properties; which copy has been previously provided to you, that the Summoner's properties are not suitable for the establishment of an LNG station or for the installation of an FSRU buoy on land or Onshore in the adjacent port due to their proximity to the residential areas, particularly because it may cause a danger on the public safety, on the population living in the neighborhood and on the existing surrounding economic interests, and hence, it is way better to place them Offshore facing the real estate properties owned by EDL; which are 3km far from the residential areas; and

Whereas, it is certain, according to the above, that the expropriation of the Summoner's properties to build a power plant thereon, will be illegal, since it does not fulfill any of the conditions set forth by the State's Court; which may probably annul any decree of expropriation that may be issued in that respect for overriding the right of power. Therefore,

The Summoner requests from your Excellency to reverse the decision of building a power plant and installing an FSRU station on the properties owned by them in the Selaata area, due to its unlawfulness and in order to preserve the tangible public interest and the safety of the residents of the region, and hence, to take the decision to re-locate the mentioned plant to the lands owned by EDL and to re-locate the FSRU Offshore facing such lands, as previously recommended by the consultant Mott McDonald appointed by the Ministry of Energy, otherwise we will be compelled to Oresent a claim in annulment of anv decree that mav be issued for the expropriation of the Summoner's properties in infraction of the laws: which would refrain the investors from participating in the tender and the lenders from participating in the financing of the project, and which would lead to the obstruction of your plan for the production of energy according to the dates specified therein. With all reserves and respect, On behalf of Societe Huiles et Derives s.a.l. Elie Naufal,

Copy to: - The Prime Minister

-Members of the Ministerial Committee in charge of Electricity Affairs

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