At Repsol we endeavor to minimize our generation of waste and improve its management throughout the lifecycle of our activities. We adopt measures aimed at improving internal waste management, developing programs to minimize waste at all stages of the process, encouraging reuse and recycling, and the replacement of raw materials and additives.

The majority of our waste arises from our exploration and production activities. Among these, largest contributor is the drilling mud, soil contaminated with hydrocarbons, and the mud from cleaning the bottom of tanks.

During 2010, there was an increase in our hazardous waste of 85% compared to 2009, due mainly to the final disposal of waste from contaminated soil processing in exploration and production activities, mainly in Neuquén in Argentina.

In addition, our non-hazardous waste increased by 28% as compared to the previous year, due, to a great extent, to the stoppages at the refineries in Spain, mainly at Muskiz, and the drilling work in the exploration and production activities in Brazil.

During 2010, 66% of the hazardous waste and 19% of the non-hazardous waste we dealt with was destined for reuse and recycling.

We took action during 2010 to improve and optimize waste management, including the following:

• Implementing integral waste management programs at the exploration and production business units of YPF in Argentina, minimizing waste production at origin, maximizing recycling and reuse, and safely disposing of waste with no value. Integral waste management is now functioning at El Portón and in Loma de la Lata. This type of management makes it possible to reduce the environmental impact and develop new products from recycling, donating some of these to the community, such as ecological firewood and organic soil amendments.

• Working at the Lubricants and Specialty Chemicals business unit in Spain to minimize the impact of our lubricant oils on the environment, by increasing use of renewable raw materials in the manufacture of our products. Moreover, we are working to achieve the ecological label (Eco-label) for the Bio Telex line, a biodegradable liquid with excellent lubricating qualities. The Eco-label is awarded to products with the best environmental performance.