UNITED PLANTATIONS BERHAD STANDARD OPERATING PROCEDURES FOR AREAS PLANTED WITH PEAT

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1 FOR AREAS PLANTED WITH PEAT Peat Cultivation/ Management Objective To establish a high standard of commercial oil palm planting with the view of achieving high initial yield and sustained high yield throughout its life cycle. At the same time to minimize any negative impact on peat. Assistant 1.2 Standards United Plantations Berhad practices zero burning. This replanting technique deals with oil palms which have reached the end of their economic life, which are mechanically felled with excavators, windrowed, shredded and left to decompose along planting rows or pulverized in situ (windrowed). Assistant As per Replanting SOP of 10/12/ Compared to the conventional clean clearing and burning system, no burning is carried out. Besides eliminating atmospheric pollution, the zero burning technique replenishes soil organic matter (90 to 100 tonnes per hectare), improves the physical properties of the soil, enhances its fertility through the recycling of nutrients resulting in reduced use of chemical fertilizers. The savings on fertilizer also see a reduction in environmental impact caused by the use of inorganic fertilizer, both through their manufacture and application in the field.

2 1.2.3 Section 29A(1) Akta Kualiti Alam Sekeliling 1974 prohibits all types of burning, the violation is a fine up to RM500, or 5 years imprisonment or both Under special circumstances (heavy infestation of pests or diseases) an application for open burning under Section Perintah Kualiti Alam Sekeliling 1974 (Aktiviti Yang Ditetap) (Pembakaran Terbuka) 2000 Perintah 3 Syaratsyarat Pematuhan Pembakaran Terbuka, could be made through the Department of Agriculture to Department of Environment. However in the recent years, this has not been granted. Manager 1.3 Planning Check with the land office whether there any express conditions in the Title Deeds prohibiting the cultivation of the proposed crop. The above information is required that steps can be taken to apply for rescission of the express conditions ahead of the replanting dates. Manager Company Secretary Replanting programme must be approved by Executive Director (Estates)/Chief Executive Director based on age yield, height of palms & incidence of diseases. It must be submitted 2 years before replanting and reviewed yearly by Executive Director (Estates)/Chief Executive Director. Manager Executive Director (Estates) Chief Executive Director

3 1.3.3 Oil palm should only be planted on peat which is less than 3 m Manager depth (shallow to moderately deep peat) To avoid cultivating oil palm on deep peat (>3m) unless the land was developed prior to November Manager 1.4 Procedures Construct/rehabilitate perimeter drain around the area to be planted Construct/rehabilitate field, collection and main drain as per the following dimensions. Type of Drain Field Collection Main Width (m) Top Bottom Depth (m) Field drains should be spaced at four planting row intervals and connected to the collection drain which feeds into the main drain as per the diagram attached. Maintain favourable water level in the field drain (target m water depth) through the installation of sandbag weirs, control gates and pumps to facilitate adjustment of the water level.

4 1.4.5 Care must be exercised to avoid over draining which can result in irreversible drying Compaction of planting rows and harvester paths. Do not camber the harvester paths on peat. Commence other relevant land preparation activities as for mineral soils (SOP ) where applicable for peat planting. Planting density to be 148 palms per hectare (for shallow peat less than a meter depth) and 160 palms per hectare for moderately deep peat (1-3 m depth). At land preparation, to apply lime at the rate stated below: Peat depth 1 m or less More than 1 m 1t GML/ha 2 t LSD/ha

5 During planting to apply Starter Mix comprising: Limestone dust = 70% Rock phosphate = 20% Zinc sulphate = 5% Copper sulphate = 5% Mix the ingredients thoroughly to obtain a homogenous mixture and apply 0.3kg in the planting hole and backfill and 2.2kg to be broadcast within 2 m radius after planting. 1.5 Environment Environment Issues a) Burning of old stand results in loss of valuable organic matter and causes emissions of Green House Gases to the atmosphere, loss of biodiversity and CO 2 sequestration. b) Soil erosion resulting in loss of top soil. c) Siltation of river. d) Used seedling polybags slow to degrade in the field. e) Excavators used engine oil discarded in field contaminates soil. f) Peat subsidence and oxidation.

6 1.5.2 Mitigation to above environmental issues a) Zero burning system to be adopted; overall group replanting hectarages ranges from 5% to 7% thus balance of 95% to 93% of hectarage at all times buffers the loss of biodiversity and CO 2 sequestration. b&c) Plant LCC in conjunction with land preparation, fallow period not to exceed 3 months, windrowed materials initially act as barriers of soil erosion and nutrient loss through surface wash. No planting in slopes above 20, terracing is done on slopes more than 6 to 20. d&e) Collect all polybags and used engine oil and despatch to authorized agents for recycling. g) Water management system to maintain adequate water in drains to minimise peat subsidence and oxidation.

7 1.6 Safety Fire Hazards Smoking of cigarettes are strictly prohibited in peat areas especially during the dry months to prevent any peat fires.

8 Layout plan of the drainage system for oil palm planting on peat