Safety & Environmental Management Systems (SEMS)

Transcription

1 SEMS Table of Contents Safety & Environmental Management Systems (SEMS) PURPOSE The Stone Energy Corporation Safety and Environmental Management System (SEMS) have been designed to promote safety and environmental protection during its exploration, construction, and production of offshore oil and gas operations. RESPONSIBILITIES All Stone employees and contractors working on Stone operated or managed facilities must follow these safe work practices unless prior approval and agreement is reached. SEMS PROGRAM ELEMENTS The program follows areas as required by 30 CFR 250 Subpart S and API RP-75: 1. General Safety and Environmental Information 2. Safety & Environmental 3. Hazard Analysis 4. Management of Change 5. Operating Procedures 6. Safe Work Practices 7. Training 8. Assurance of Quality and Mechanical Integrity of Critical Equipment 9. Pre-Startup Review 10. Emergency Response and Control 11. Investigation of Incidents 12. Audit of Safety and Environmental Program Elements 13. Records and Documentation A copy of the full Stone Energy Corporation SEMS program is available on the Stone Intranet at If you don t have access to this intranet page, contact your field supervisor or the Stone Energy HSE Department for a copy. Element 6 above specifically recognizes these five safe work practices: 1. Opening of pressurized or energized equipment or piping 2. Lockout and tagout of electrical and mechanical energy sources 3. Hot work and other work involving ignition sources 4. Confined space entry 5. Crane Operations The requirements for these five practices are met in the following SEMS Safe Work Practices Section.

2 SEMS Table of Contents SEMS SAFE WORK PRACTICES Table of Contents ENERGY ISOLATION (LOCKOUT/TAGOUT) POLICY... 3 PROCESS EQUIPMENT AND PIPING ISOLATION PROCEDURES WELDING, BURNING, CUTTING, AND HOT WORK SAFE PRACTICES CONFINED SPACE ENTRY CRANE OPERATION AND MAINTENANCE PROGRAM... 48

3 Energy Isolation (Lockout/Tagout Policy Corporate Policy Issued: Revision #: 3 Revision Date:10/12/11 Energy Isolation (Lockout/Tagout) Policy PURPOSE To ensure that personnel, the environment, and equipment are protected from unintended releases of potentially hazardous substances or energy, proper isolation procedures must be followed. These procedures apply to all forms of energy, including electrical, steam, pneumatic, hydraulic, thermal, chemical, and pressure. This policy is applicable to all Stone Energy operated and/or managed facilities. Stone Energy s Energy Isolation (Lockout/Tagout) Policy establishes procedures for the isolation and affixing of appropriate lockout and/or tagout devices to prevent unexpected energizing, start-up, or release of stored energy. SCOPE This program covers the service and maintenance of machines and equipment in which unexpected energizing or start-up of the machine(s) or equipment, or the release of stored energy could cause injury to employees, damage property, and the environment. This policy establishes the minimum performance requirements for the control of such hazardous energy. This policy does not apply to the following: Work on cord and plug connected electrical equipment for which exposure to the hazards of unexpected energizing or start-up of equipment is controlled by the unplugging of equipment from the energy source AND by the plug being under the exclusive control of the employee performing the maintenance or service Operations where the controlled release of potentially hazardous energy sources is intended (e.g., sandblasting) Hot tap operations involving transmission and distribution systems for substances such as gas, steam, water, or petroleum When they are performed on pressurized pipelines, provided that: Continuity of service is essential Shutdown of the system is impractical Documented procedures are followed Special equipment is used which will provide proven effective protection for employees. DEFINITIONS Affected Employee An employee whose job requires him/her to operate or use a machine or equipment on which servicing or maintenance is being performed under

4 Energy Isolation (Lockout/Tagout Policy Corporate Policy Issued: Revision #: 3 Revision Date:10/12/11 lockout or tagout, or whose job requires him/her to work in an area where such servicing or maintenance is being performed. Authorized Employee A person who isolates and implements a lockout/tagout system procedure on machines or equipment to perform the servicing or maintenance. An authorized employee must understand the necessary precautions to be taken and possess the expertise to properly isolate the equipment or system. An authorized employee and an affected employee may be the same person when the affected employee s duties also include maintenance or service work on a machine or equipment which must be locked and/or tagged out. Energy Isolating Device A mechanical device that physically prevents the transmission or release of energy, including but not limited to the following: a manually operated electrical circuit breaker; a disconnect switch; a slide gate; a blind; a line valve; a block; and any similar device used to block or isolate energy. The term does not include a push button, selector switch, or other control circuit type devices. Energy Source Any source of electrical, mechanical, hydraulic, pneumatic, chemical, thermal, or other energy. Common types of energy include: Mechanical energy can be linear translation or rotation, or it can produce work, which in turn produces changes in temperature. This type of energy can be turned off or left on. Potential energy can be due to pressure (above or below atmospheric) as in hydraulic, pneumatic, or vacuum systems; or it can be due to springs or gravity. Potential energy can be dissipated, controlled, or blocked; it cannot be turned on or off. Electrical energy refers to generated electrical power or static electricity. In the case of generated electricity, the electrical power can be turned off or the path from the source to the destination can be interrupted. Static electricity can only be dissipated or controlled. Thermal energy is manifested by high or low temperature. This type of energy is the result of mechanical work, radiation, chemical reaction, or electrical resistance. It is controlled by isolating the source of the temperature differential. Job Leader The authorized employee designated by Person In Charge (PIC), Production Foreman, Well Site Leader, Construction Foreman, Decommissioning Foreman, and Shore Base Foreman, or his/her representative, to coordinate all aspects of the job being performed. This person is most important on large jobs or projects which last for more than one shift. Lockout Device A device that utilizes a positive means, such as a lock, to hold an energy isolating device in the safe position and prevent the energizing of a machine or equipment. Lockout devices must be substantial enough to prevent removal without the use of excessive force or unusual techniques, such as with the use of bolt cutters or other metal cutting tools.

5 Energy Isolation (Lockout/Tagout Policy Corporate Policy Issued: Revision #: 3 Revision Date:10/12/11 RESPONSIBILITIES Affected Employee Be familiar with the Lockout/Tagout Policy and recognize all lockout/tagout devices. Authorized Employee Be familiar with all aspects of the Lockout/Tagout Policy and adhere to all provisions. Person In Charge (PIC), Production Foreman, Well Site Leader, Construction Foreman, Decommissioning Foreman, and Shore Base Foreman, etc. Ensure all employees and contractors are trained and all personnel, including contractors, adhere to lockout/tagout procedure. Job Leader Coordinate the maintenance and/or servicing work. Ensure that all other employees working on the job are aware of their responsibilities. Production Operations Ensure all new, renovated, and modified equipment is capable of being locked out. Contractors Ensure that all contract employees are trained in Lockout/Tagout Procedures and maintain documentation. GENERAL Lockout ALL energy isolating devices which are capable of being locked out will be locked out using a key type lock. Tags will NOT be used in place of a lock ANYWHERE that a lock could be used. Whenever a major replacement, repair, renovation, or modification of machines or equipment is performed, and whenever new machines or equipment are installed, the energy isolating devices for the equipment or machines shall be designed to accept a lockout device. Only authorized employees shall perform lockouts. The person-in-charge of a facility or project shall determine which employees, who by virtue of their training or experience are authorized employees. The person-in-charge shall determine which equipment/systems each authorized employee is qualified to isolate and lockout, and designate a job leader for each project. All locks used for lockout purposes must: Be singularly identified (i.e, be distinguishable from all other locks) and MUST NOT be used for any other purpose Be accompanied by a tag identifying the employee who applied it, the date and time the lock was applied, and the purpose for the lockout. Be capable of withstanding the environment to which they are exposed for the maximum period of time that exposure is expected.

6 Energy Isolation (Lockout/Tagout Policy Corporate Policy Issued: Revision #: 3 Revision Date:10/12/11 Have an exclusive key for each lock (i.e., no master keys). The key must be under the sole control of the authorized employee who applied the lock while the lock is in place. Tagout A tagout system may be used ONLY when an energy isolating device is not capable of being locked out. Additional safety measures must be taken when a tag is used without a lock. Examples include, but are not limited to the removal of an isolating circuit element, blocking of a controlling switch, opening of an extra disconnecting device, or the removal of a valve handle to reduce the likelihood of inadvertent energizing. The tag must be placed on the energy isolating device. If this is not possible, the tag must be located as close as safely possible to the device, in a position that will be immediately obvious to anyone attempting to operate the device. Only authorized employees shall perform tagouts. The person-in-charge of a facility shall determine which employees, who by virtue of their training or experience are authorized employees. The person-in-charge shall determine which equipment/systems each authorized employee is qualified to isolate and tagout. All tags used for tagout purposes must: Be standardized within each facility in at least one of the following criteria: color, shape, or size; Print and format must be standard Be singularly identified Be the only device(s) used for controlling energy Not be used for any other purposes

7 Energy Isolation (Lockout/Tagout Policy Corporate Policy Issued: Revision #: 3 Revision Date:10/12/11 Be capable of withstanding the environment to which they are exposed for the maximum period of time that exposure is expected. Tagout devices must be constructed and printed so that exposure to weather conditions or wet and damp locations will not cause the tag to deteriorate or the message on the tag to become illegible. The tag s means of attachment must be substantial enough to prevent inadvertent or accidental removal. Tagout device attachment means must be of a non-reusable type, attachable by hand, self-locking, and non-releasable with a minimum unlocking strength of no less than 50 pounds, and having the general design and basic characteristics of being at least equivalent to a one-piece, all-environment-tolerant nylon cable tie, (e.g., tie wrap). Tagout devices must warn against hazardous conditions if the machine or equipment is energized, and must include a legend such as the following: Do Not Start, Do Not Open, Do Not Close, Do Not Energize, Do Not Operate, etc. ENERGY CONTROL PROCEDURE Preparation for Shutdown Prior to turning off any equipment for the purpose of lockout and/or tagout, the operator, job leader, and appropriate maintenance personnel should: Determine the types and amounts of energy powering the equipment; More than one energy source (electrical, mechanical, etc.) may be involved Locate and identify all isolating devices and the steps needed to control them Notify all affected employees in the immediate area, either by personal contact, intercom, or radio that a machine or equipment shutdown is to occur. Equipment Shutdown Use the normal shutdown procedures to stop the machine or equipment Locate all devices that control the flow of energy to the equipment and use them to isolate the equipment from its energy sources; could mean closing a valve, installing a blind, shutting off the main power at the panel circuit breaker, etc

8 Energy Isolation (Lockout/Tagout Policy Corporate Policy Issued: Revision #: 3 Revision Date:10/12/11 Avoid shutting off the panel circuit breaker while a piece of equipment is under load; this could cause an electrical arc or an explosion. Application of Lockout/Tagout Devices The job leader will attach a multiple lockout hasp and lock with tag to each energy isolating device. Some energy sources may not have built-in lockout devices (e.g., some types of valves). Chain can be used to hold the valves in the correct position and the lock can be applied to the chain. There are also special types of devices available which fit over some types of valves that can be locked out. A tag must be filled out for each lock. If, after careful evaluation, a lock cannot be applied, then a tag should be attached to the energy isolating device at the same point that a lock would be applied, or as close to it as possible. Extra safety precautions are required if only a tag will be used (see Tagout above). If bolted blank flanges, (e.g., blind flanges ) or slip blinds, (e.g., skillet blinds) are used for energy isolation, each employee must attach a tag to the flange, the same as for other energy isolating devices. Control of Stored Energy The following steps shall be taken: Verify that all moving parts in the system have stopped moving Check the system for any potentially hazardous energy which may still be stored Bleed off any trapped pressure that could release hazardous material or operate a moving part

9 Energy Isolation (Lockout/Tagout Policy Corporate Policy Issued: Revision #: 3 Revision Date:10/12/11 Install ground wires where necessary to discharge electricity stored in capacitors and prevent static electricity build-up Release the tension on all springs and other sources of potential energy; If it is not possible to release the energy then block and secure the source Block or support any elevated equipment that could fall because of gravity Block and secure any parts in a hydraulic or pneumatic system which could move from a loss of pressure; Drain the lines and leave vent valves open Drain piping on process systems and close valves to prevent the flow of hazardous materials When piping systems and process vessels must be blocked where there are no valves, the lines may be blanked or blinded at the pipe flanges Before separating the pipe flanges to insert a blind, ensure that the line or vessel to be worked on is depressurized If work must be conducted where extreme cold or heat could injure personnel, the condition must be corrected by the use of heaters or other means to warm cold environments or blowers to remove excess heat, or protective clothing must be worn If there is a possibility of re-accumulation of stored energy to a hazardous level, verification of isolation must be continued until the servicing or maintenance is complete, or until the possibility of such accumulation no longer exists. Verification of Equipment Isolation Ensure that the equipment or machine is completely isolated Review all previous steps to make sure they are complete Ensure that all personnel are clear of the equipment or machine Push all start buttons and other operating controls to ensure that the equipment is isolated and will not start Return all operating controls and switches to the off position. Removal of Lockout/Tagout After the servicing and/or maintenance on the machine or equipment have been completed, an inspection of the work area must be initiated to ensure that nonessential items have been removed and to ensure that the machine or equipment components are operationally intact The work area shall be checked to ensure that all affected employees in the area have been notified and cleared to a safe distance from the equipment before the locks and/or tags are removed

10 Energy Isolation (Lockout/Tagout Policy Corporate Policy Issued: Revision #: 3 Revision Date:10/12/11 Each lockout or tagout device must be removed from each energy isolating device by the employee who applied the device, except for emergency situations (see Special Circumstances below) The job leader will be the last person to remove his/her locks and/or tags. Equipment Guarding Equipment with any missing, broken, or improperly installed guards shall not be operated; Report these conditions to your supervisor immediately All equipment guards shall be properly installed after repair or maintenance. Contractors All contractors must have a lockout/tagout policy which meets all federal and state regulations and provides at least the same level of protection to all employees as Stone Energy s policy. All contract personnel must be trained on the policy and it shall be documented. The lockout/tagout policy to be used for each job must be decided upon by both the contractor and Stone Energy personnel prior to the start of each job. All affected and authorized employees, both Stone Energy and contractor, must be trained on the specific requirements of the policy to be used prior to the start of the job. SPECIAL CIRCUMSTANCES Shift Change Requirements The job leader is responsible for briefing the (on-coming) job leader on the next shift. The on-coming job leader is responsible for briefing all of the other on-coming personnel on the status of the job. Both job leaders should tour the job site together. The oncoming job leader should place their lock and/or tag on each energy isolating device prior to the off-going job leader removing theirs Other personnel should replace their locks and/or tags as they arrive or depart. All oncoming employees should be briefed by the on-coming job leader concerning the status and details of the work. Testing or Positioning of Machines In situations in which lockout or tagout devices must be temporarily removed from the energy isolating device and the machine or equipment energized to test or position the machine, equipment, or component thereof, the following sequence of actions shall be followed: Clear the machine or equipment of tools and materials Remove employees from the machine or equipment area Remove the lockout and/or tagout devices

11 Energy Isolation (Lockout/Tagout Policy Corporate Policy Issued: Revision #: 3 Revision Date:10/12/11 Energize and proceed with testing or positioning De-energize all systems and reapply energy control measures prior to continuing with the servicing and/or maintenance of the equipment (see Energy Control Procedure above). Emergency Lock Removal Lockout and/or tagout devices must be removed from the energy isolating device by the individual who applied them, except under emergency conditions. When the authorized person who applied the device is not available to remove it, that device may be removed under the direction of the person-in-charge or his/her designated representative, provided that the following conditions are met: Verification that the authorized employee who applied the device is not at the facility and will not be able to return to remove the lock/tag A reasonable effort must be made to contact the authorized employee to inform them that their lockout and/or tagout device needs to be removed before he/she returns to work at the facility Determine if any conditions exist which would not allow removal of the lockout and/or tagout device by the person-in-charge, all emergency removals must be documented After the person-in-charge has inspected the area and equipment and verified that it is safe to remove the lock and/or tag, he/she or his/her designee may remove the lock and/or tag. Group Lockout or Tagout When servicing and/or maintenance is performed by a crew, craft, department, or other group, they shall use a procedure which affords all of the involved employees a level of protection equivalent to that provided by the implementation of a personal lockout or tagout device. The job leader must be aware of the exposure status of individual group members with the regard to the lockout or tagout of the machinery or equipment. Group lockout or tagout devices shall be used in accordance with this policy and shall include, but not be limited to the following specific requirements: Each authorized employee shall affix a personal lockout or tagout device to the group lockout device, group lockbox, or comparable mechanism in the same manner as for a normal lockout The keys to all of the locks used to lockout the equipment shall all be placed in a box with a lockout hasp attached The job leader attaches their own individual lock to the hasp All other employees that will be working on the equipment during lockout phase will place and remove their locks on the box as per the requirement of this policy

12 Energy Isolation (Lockout/Tagout Policy Corporate Policy Issued: Revision #: 3 Revision Date:10/12/11 The job leader s lock that is on the hasp is the last one to be removed from the box. Isolation for Confined Space Entry Isolation requirements for entry into a confined space are detailed in Stone Energy s Confined Space Entry policy. In general, all pipes and tubing leading into or out of the space must be skillet-blinded, have a double block and bleed, or be physically disconnected. A single closed valve is NOT ACCEPTABLE isolation in most situations, except if the facility is shut in and all pressures have been bled to atmospheric pressure. For specific cases, contact the HSE Coordinator. Isolation for Hot Work General requirements for hot work are detailed in Stone Energy s Welding, Burning, Cutting, and Hot Work Safe Practices. In general, where equipment or production system isolation is necessary to conduct hot work, the isolation will consist of one or a combination of the following: physical disconnection, skillets, or double block and bleed. If the double block and bleed is used, the block valves must be locked closed and the bleed valves must be locked open, with provision made for indication that depressurization between the block valves has been achieved. The bleed valve shall be vented to a safe location. A single closed valve is not an acceptable isolation for potentially hazardous systems in the vicinity of the hot work, except when the facility/equipment is shut in and all pressures have been bled to atmospheric pressure. For specific cases, contact the HSE Coordinator. Isolation for Cold Work The degree of isolation for cold work normally would be single device isolation. Routine production operations often involve single valve isolations. It is important to remember that when work is to be performed downstream of a single valve isolation, the effects of work and other operations on the isolation must be considered and adequate precautions taken. For example, the effects of vibration or temperature change may affect the isolating valve.

13 Energy Isolation (Lockout/Tagout Policy Corporate Policy Issued: Revision #: 3 Revision Date:10/12/11 Electrical Isolations The extent of electrical isolation required to ensure that the equipment is safe to work on will depend on the particular circumstances of each job. With the approval of the person-in-charge or his/her designated representative, electrical systems which operate at less than 480 volts AND which require only a single isolation may be isolated by an authorized employee. For equipment or systems which operate at 480 volts or more, the electrical isolations shall only be performed by an authorized employee who is also an electrician. Following isolation, electrical circuits must be shown to be dead by using appropriate testing equipment and/or by operating push buttons, switches, etc. (see Verification of Equipment Isolation above). Isolation of Fire Protection Systems Prior to the isolation of any fire protection system or firewater piping, the Production Foreman shall be notified. For BOEMRE regulated structures; In the event the Production Foreman deems the isolation of the Fire Protection System or piping can t be avoided, the following steps shall be taken: The Production Foreman shall notify their respective Superintendent Either the Superintendent or the Production Foreman with notify the HSE Department with the following information: Detailed explanation of why the fire protection system or firewater piping is being placed out of service; if hotwork is involved in making repairs and/or modifications, this shall be included Anticipated time the fire protection system/piping is being placed out of service Structure manned or unmanned; if manned number of personnel on board Maximum incoming production capabilities Maximum hydrocarbon storage capacity Detailed inventory of firefighting equipment HSE Department shall submit for a temporary dry chemical waiver from the appropriate BOEMRE district and include the information given by the Production Foreman Upon BOEMRE approval, the fire protection system and/or firewater piping can be placed out of service. Note: In the event repairs and/or modifications can t be made within the approved time, an extension must be submitted to the respective BOEMRE district PRIOR to the current waiver expiring. An updated explanation on

14 Energy Isolation (Lockout/Tagout Policy Corporate Policy Issued: Revision #: 3 Revision Date:10/12/11 why the repairs and/or modification couldn t meet the most prior timeline along with a new timeline. Smoke and fire detection devices should be disabled and tagged when they are present in an area where hot work will be performed. All personnel should be made aware of how to manually operate the fire suppression system if it becomes necessary to activate it while the detectors are out of service. The detectors should be returned to service immediately upon completion of the hot work. If hot work must be performed in an area where the fire suppression system is out of service, extra precautions must be taken. Such precautions include extra fire extinguishers or additional standby personnel. The precautions will vary depending on the size and duration of the job. Hot work while fire suppression systems are out of service should be avoided if at all possible. Isolation of Safety Devices/Relief Valves Safety devices and relief valves shall not be isolated unless they are temporarily out of service for start-up, maintenance, or testing procedures. The person-in-charge shall approve any such isolation. An observer must continuously monitor all process parameters affected by the isolation until the safety device and/or relief valve is returned to service or until alternate protective measures are implemented by the person-in-charge. Any surface or subsurface safety device which is temporarily out of service shall be flagged. Operational Locks Operational locks are used for purposes other than isolation for maintenance purposes. Examples are locks used to lock open block valves upstream and downstream of a relief valve to prevent accidental closure. Operational locks must be individually identified. A list of all operational locks, their location, and their function should be maintained at each facility. Operational locks should not be removed without the permission of the personin-charge and all changes noted on the list. This system is separate from the lockout system, and the usage of an operational lock is not a substitute for applying a lockout lock with appropriate tag. Long-Term Isolation Equipment which must be isolated for extended periods of time, and which is not undergoing maintenance or repair, can be locked out using an operational lock provided that a tag is attached which clearly indicates the status of the equipment and the danger of removing the device (e.g., Danger Do Not Open, Downstream Equipment Not in Use ). Tags should be signed and dated, and all long-term isolation devices should be maintained on a list. Tags should be reviewed periodically to ensure that they are still legible. Tags should be replaced and/or updated at least quarterly.

15 Energy Isolation (Lockout/Tagout Policy Corporate Policy Issued: Revision #: 3 Revision Date:10/12/11 TRAINING Training must be provided for all employees whose work operations are located or have the potential to be located in an area where energy control procedures may be utilized. Training shall be provided annually for authorized employees, and at least every three years for affected and other employees. Retraining shall be provided for all authorized and affected employees whenever there is a change in job assignments, equipment, processes that present a new hazard, or a change in the energy control procedures. Retraining shall be provided whenever a periodic inspection reveals that there are deviations from or inadequacies in the employees knowledge or use of the energy control procedures. Retraining shall reestablish employee proficiency and introduce new or revised control methods and procedures, as necessary. The contractor will be responsible for training their employees and shall maintain records that employee training has been accomplished and is being kept up-to-date. The records shall contain each employee s name and the date(s) of training. The Field Production Foreman is responsible for ensuring that all employees have had the proper training prior to field assignments. PERIODIC INSPECTIONS An authorized employee that isn t utilizing the energy control procedure must conduct an inspection of each facility at least annually to ensure that the requirements of this policy are being followed. The inspection shall be designed to correct any deviations or inadequacies observed. The inspection shall include a review between the authorized employee and each authorized and affected employee observed during the inspection of each employee s responsibilities under the Lockout/Tagout Policy. The authorized employee shall document the inspection. The documentation must identify the machine or equipment on which the Lockout/Tagout Policy was utilized, the date of the inspection, the employees included in the inspection, and the person performing the inspection. The PIC, Production Foreman, Well Site Leader, Construction Foreman, Decommissioning Foreman, and Shore Base Foreman will maintain all documentation and certify that the inspections have been performed. Enforcement Any employee not complying with this program may be subject to disciplinary action up to and including dismissal. Any contract employee not complying with the provisions of the Lockout/Tagout Policy in effect at the job site will not be permitted to enter or perform work at any Stone Energy-operated facility.

16 Process Equipment and Piping Isolation Procedures Corporate Policy Issued: 10/12/2011 Revision #: Revision Date: Process Equipment and Piping Isolation Procedures PURPOSE The purpose for this procedure is to provide guidance on properly isolating pressurized process equipment and piping. SCOPE During maintenance, repair, and testing of equipment on all Stone Energy Corporation facilities, it is imperative that all equipment and/or piping is properly isolated in our constant efforts to provide a safe work environment to protect all employees and contractors, protect the environment, and remain in compliance with all state and federal regulations. APPLICATIONS Hazardous liquids or gas must be safely contained to prevent movement throughout a process system. This may occur during: Confined space entry Hot work Pressure testing of piping Welding or hot tapping Vessel piping maintenance or repair. RESPONSIBILITIES Person In Charge (PIC), Production Foreman, Well Site Leader, Construction Foreman, Decommissioning Foreman, and Shore Base Foreman, Employees and Contract Employees are responsible for using blinding as the preferred method of isolation. A blind should be installed with these three major considerations: Location: Will the blind effectively isolate the equipment in the selected location? Is there access to the selected location? Can the blind be safely removed at the time such removal is required? Proper rating of the blind Blind matching the size of the designated line If there are multiple blinds being installed such as during platform modification, a Blind List should be used.

17 Process Equipment and Piping Isolation Procedures Corporate Policy Issued: 10/12/2011 Revision #: Revision Date: GENERAL INFORMATION Hazards include, but are not limited to the following: Under-rated blinds may fail Failure to use blinds may result in a hazardous atmosphere spreading to an undesired and unexpected location or equipment Disconnected lines and double block and bleed will still allow a hazardous atmosphere to escape and are not as effective as blinding Misconceptions between blinds with spacers, screens, or orifice plates. GUIDELINES Blinds should be installed to isolate and prevent the release of combustible and/or toxic liquids, vapors, or gasses into the work area and to prevent re-pressurization of equipment isolated for maintenance Blinds should be installed at vessels, equipment, or confined spaces scheduled for entry or hot work as outlined in this manual in the Confined Space Entry Procedure and Hot Work Procedure Blinds should be the correct size and thickness for the ANSI-class piping on which they are being used (See table below). ANSI Class Blind Rating Chart NOMINAL PIPE SIZE (NPS) /4 1/4 3/8 1/2 5/8 3/4 3/4 7/ /8 3/8 1/2 3/4 7/8 1-1/8 1-1/4 1-3/8 1-1/ /8 5/8 5/8 7/8 1-1/8 1-3/8 1-5/8 1-7/8 2-1/2 (Assumes steel plate with ASTM A-36 yield strength or better) Slip blinds (blanks) for ring type joint (RTJ) flanges should only be purchased from approved manufacturers and be designed specifically for the size and rating of the

18 Process Equipment and Piping Isolation Procedures Corporate Policy Issued: 10/12/2011 Revision #: Revision Date: flanges. RTJ blinds made by unauthorized manufacturers are not allowed. No blinds manufactured on-site that are not approved by the manufacturer (for RTJ Flanges) or that do not meet the specification in the Blind Rating Chart located in this section will be allowed. Blinds should be tagged for identification with the following information: Date of blind installation Reason for installing the blind Equipment being isolated Person installing the blind.

19 Welding, Burning, Cutting, and Hot Work Safe Practices Corporate Policy Issued: Revision #:3 Revision Date: 10/11/11 Welding, Burning, Cutting, and Hot Work Safe Practices PURPOSE To establish procedures for safely conducting welding, burning, cutting and other hot work activities; to provide a hot work permitting system for high risk facility/site areas. SCOPE This policy establishes minimum requirements for burning, welding, and hot work activities at all Stone Energy Corporation facilities in addition to the Stone Energy BOEMRE approved Welding, Burning, and Hot Work plan. RESPONSIBILITIES The Person In Charge (PIC), Production Foreman, Well Site Leader, Construction Foreman, Decommissioning Foreman, and Shore Base Foreman is responsible for: Providing resources to fully implement this program Evaluating the safety aspect of these activities as an integral part of pre-planning a job, (e.g., Job Safety Analysis) Ensuring all employees reporting to him/her who are involved in these activities are properly trained and understand the requirements of this procedure and the hazards and safeguards involved Issuing the Hot Work Permit anytime hot work activities are going to be conducted outside of a designated safe welding area. This includes: Inspecting the work area Filling out the permit form Reviewing the permit conditions with employees involved Monitoring the work for compliance Revoking the permit if conditions change that may create hazards Inspecting the work area when the work is completed and closing out the permit. The Contractor involved in hot work activities is responsible for: Inspecting equipment and the work area before beginning work. This inspection should be thorough, and any problems should be immediately brought to the attention of the supervisor. Bringing any questions or concerns about the usage and choice of equipment on the job to the attention of supervision or the Environmental, Safety & Health Department.

20 Welding, Burning, Cutting, and Hot Work Safe Practices Corporate Policy Issued: Revision #:3 Revision Date: 10/11/11 Following safe practices while performing welding, cutting, or brazing. This includes: Practicing good housekeeping Wearing proper clothing / PPE including any necessary respiratory protection Reading and following safeguards on Material Safety Data Sheets (MSDS) or product labels as applicable Posting warning signs or barricades as necessary Using equipment per manufacturer s instructions Following other related procedures such as the Stone Energy Corporation Confined Space Entry Procedure and/or Lockout/Tagout Procedures Following conditions specified on the Burning, Welding Hot Work Permit Understanding and following the general and specific requirements outlined in this procedure. The PIC, Production Foreman, Well Site Leader, Construction Foreman, Decommissioning Foreman, and Shore Base Foreman are responsible for: Slag, sparks, or other burning materials shall be prevented from contacting equipment which contains flammable liquids in an area within 35 feet of the work or any level below where sparks may reach; Metal shields, flame resistant guards, or curtains may be used to prevent contact if the equipment cannot be relocated from the work area (If tarps are used as shields, they must be made of fire retardant materials.) Before any hot work is performed within 10 feet of the well bay, all producing wells in that well bay must be shut in, in accordance with 30 CFR Before any hot work is performed within 10 feet of a production area, that production area must be shut in, in accordance with 30 CFR If drilling, well completions, work-overs, well servicing, or wire-line operations are in progress, no hot work will be allowed unless the well contains kill weight fluid, or the well is plugged and you have precluded the entry of formation hydrocarbons into the well bore. Personnel performing fire watch shall have no other duties during welding or burning operations. Designated personnel shall be equipped with a portable gas detector and firefighting equipment prior to the start of the operation. All designated personnel will remain on duty for a period of 30 minutes after hot work operations have been completed.

21 Welding, Burning, Cutting, and Hot Work Safe Practices Corporate Policy Issued: Revision #:3 Revision Date: 10/11/11 REQUIREMENTS For Burning, Welding, and Hot Work activities if the object to be welded cannot be readily moved, all movable fire hazards in the vicinity shall be removed. Where practicable, all flammable and combustibles shall be relocated at least 35 feet from the work site. If the object cannot be moved and all the nearby fire hazards cannot be removed, then guards shall be used to confine the heat, sparks, and slag, and to protect the immovable fire hazards. If these conditions cannot be met, then welding or cutting shall not take place. A hot work permit is required before any hot work is done. Fire extinguishers shall be maintained in a state of readiness for instant use. The type of extinguisher required is determined by the type of fire hazards nearby. Whenever there are cracks or holes in the floor, nearby windows, open doorways, etc., precautions shall be taken such that no readily flammable or combustible materials on the other side shall be exposed to sparks. A fire watch shall be required whenever welding or cutting is performed in a location not designated as a safe welding and burning area. Fire watch shall have fire extinguishing equipment readily available and be trained in its use. They shall be familiar with procedures for initiating the emergency evacuation procedure in the event of a fire. They shall only attempt to extinguish a fire when the fire is obviously within the capacity of the equipment available. A fire watch shall be maintained for half an hour after the completion of welding or cutting operations to detect and extinguish smoldering fires. No hot work shall take place without authorization by the Person In Charge (PIC) or Platform Supervisor and the Project Manager responsible for such operations. These personnel shall designate specific precautions to be taken, and complete the Hot Work Permit. Hot work shall not take place in unauthorized areas, in sprinkled buildings while such protection is impaired, in the presence of explosive atmospheres or in areas where such an atmosphere may develop, or near large quantities of exposed readily ignitable material. Field Production Foremen and Project Managers shall recognize their responsibility for the safe usage of welding and cutting equipment by designating an individual responsible for authorizing cutting and welding operations, and by ensuring that cutters and welders and their supervisors are suitably trained in the safe operation of their equipment. Also, Person In Charge (PIC)s and Platform Operators must advise all contractors about flammable materials or hazardous conditions onsite, of which the contractor may not be aware. Welding or cutting shall not be performed on used containers such as drums, barrels, or tanks until such containers have been thoroughly cleaned to ensure that no materials remain that might ignite or produce toxic vapors. Any process pipes, connections, or vessels shall be disconnected, purged, and properly isolated before welding or cutting. All hollow spaces, cavities, or containers shall be vented to permit the escape of air or gases before preheating, cutting, or welding. Purging with inert gas is recommended.

22 Welding, Burning, Cutting, and Hot Work Safe Practices Corporate Policy Issued: Revision #:3 Revision Date: 10/11/11 Adequate ventilation shall be provided at all times. A number of potentially hazardous materials are employed in fluxes, coatings, coverings, and filler materials used in welding or cutting. These include, but are not limited to, the following: Cadmium Fluorides Zinc Lead Beryllium Mercury In all cases where these or other hazardous materials are present, special precautions must be taken. Ventilation usually must be increased, and in no case should these fumes be inhaled. Oxygen must NEVER be used for ventilation. Potential hazards from burning and welding activities must be evaluated and proper safeguards taken. Potential hazards include: Electric shock, burns, radiant energy, fires, and explosions; all precautions shall be taken to guard against these hazards High noise levels (over 85 dba) Respiratory hazards from fumes, vapors, gases, or dusts. Oil and grease must be kept away from oxygen systems. Gauge connections, valves, etc. must not be coated with oil or grease (oil + oxygen = fire). Compressed gases shall be used only by experienced and properly trained persons. When welding or burning in elevated positions, precautions should be taken to prevent sparks or hot metals from falling onto persons or flammable materials below. Matches and cigarette lighters shall not be carried by welders or helpers when engaged in burning operations. In dusty or gaseous spaces, or if the smell of paint or thinner is very strong and the danger of explosion exists, welding or burning equipment shall not be used until the space is adequately ventilated and the atmosphere has been tested for flammables, percentage of oxygen and toxics. Gas cylinder shutoff - In order to eliminate the possibility of gas escaping through leaks of improperly closed valves when gas welding or cutting, the torch valves shall be closed and the fuel-gas and oxygen supply to the torch positively shut off at some point outside the confined area whenever the torch is not to be used for a substantial period of time, such as during lunch hour or overnight. The torch and hose shall also be removed from the confined space.

23 Welding, Burning, Cutting, and Hot Work Safe Practices Corporate Policy Issued: Revision #:3 Revision Date: 10/11/11 Suitable eye protection, guards, and clothing shall be worn during welding or cutting operations, or while clearing scale from walls or boards. A friction lighter or stationary pilot light shall be used to light a torch. Hoses shall not be repaired with tape, but should be replaced. When welding equipment is not in use, the cylinder valves shall be in the closed position. Inspect all leads, grounds, clamps, hoses, gauges, torches, welding machines, and cylinders prior to use each day. Safeguards from the above hazards may include the following: Proper clothing, aprons, gloves, etc. Goggles, hard hats, helmets, and shields Respiratory protection Local exhaust or forced ventilation Cylinder handling equipment Hearing protection Following safeguards on MSDS and product labels Using equipment per manufacturer s recommendations Clothing worn by personnel involved in burning and welding activities should: Be made of cotton or wool rather than a synthetic fabric Have long sleeves and button collars Have no open front pockets or turn-up cuffs Protective clothing required for welding, cutting and brazing activities may include: Leather or other suitable gloves (may be insulated) Aprons of leather or other suitable material Leggings or high boots (for heavy work) Safety shoes Hard hats Hearing protection Eye protection is required for both welders and helpers involved in welding and cutting activities. ANSI approved safety glasses with side shields must be worn in addition to the welder s helmet with the appropriate shaded lenses or face shield. Mechanical ventilation must be used when natural ventilation is unacceptable or the concentration of contaminants is too high for welders and co-workers. Types of mechanical ventilation include:

24 Welding, Burning, Cutting, and Hot Work Safe Practices Corporate Policy Issued: Revision #:3 Revision Date: 10/11/11 Local exhaust (preferred method) Local forced air (such as a fan) General area (such as roof exhaust fans) The manufacturer s instructions are to be followed for all equipment used in burning and welding activities. Fire Protection required for hot work activities must be evaluated for each job, and precautions specified on the Permit. The following precautions may be required: Good housekeeping must be practiced. Flammable and combustible materials should be kept at least 35 feet from the welding, cutting, and brazing activities. Offshore locations require that producing wells be shut-in at the surface safety valve when hot work is performed within 10 of production or well bay areas. When combustible materials cannot be removed, suitable covering or protection must be used to protect the materials. The proper type and size of fire extinguisher should be provided whenever necessary. Designated Fire Watch must be trained in the use of fire extinguishers and responsibilities of a Fire Watch. Handling of compressed gas cylinders must be done in accordance with the following rules: Cylinders must be handled with extreme care to avoid damage to the cylinders and to avoid possible back injuries Protective caps must be in place except for cylinders in use which then should have a regulator on the cylinder valve Cylinders must be secured to prevent upsetting them Oxygen and fuel gas cylinders shall not be taken into confined spaces Cylinders may be rolled on their bottom edge or moved with hand trucks, but never dragged Cylinders or valves must not be modified Cylinders must not be used for other purposes such as rollers, supports, etc. Slings must not be used to lift/move cylinders. Bottle racks should be used Empty cylinders should be clearly marked as EMPTY Never consider cylinders as completely empty or without internal pressure; always use extreme care when handling cylinders. Storing of compressed gas cylinders must be in accordance with the following rules:

25 Welding, Burning, Cutting, and Hot Work Safe Practices Corporate Policy Issued: Revision #:3 Revision Date: 10/11/11 Cylinders must be secured in an upright position Storage areas must be well-ventilated and safe areas reserved only for storage of cylinders Flammable or hazardous materials must not be stored in the same area as the cylinders Cylinders must not be stored in areas where other work activities may damage them Oxygen cylinders must not be stored within 20 feet of combustible or flammable materials. If closer than 20 feet, a fire-resistive partition at least 5 feet high must be used to separate the cylinders from the materials Acetylene and liquefied fuel gas cylinders must be stored (and used) with the valve end up Storage areas should be dry to prevent rusting of cylinders Storage areas should be ventilated to prevent temperature over 130 F (54 C). Also, ventilation should prevent the possibility of the accumulation of any gas resulting from leaking cylinders. Usage of compressed gas cylinders must be in accordance with the following rules: Cylinders must be used in an upright position and secured from being knocked over The protective cap must be in place when cylinders are being moved or not in use Threads on the cylinder valve and the regulator must be inspected before use, and only used if in good condition Cylinder valves must be opened slowly Cylinder valves should be cracked open for an instant to clear the opening of dirt or dust prior to installing the regulator. This should not be done around ignition sources Regulators and pressure gauges should only be used with gases for which they are designed and intended Repair of cylinders or regulators should be done by the manufacturer Cylinders or attachments should not come in contact with sparks, molten metal, electric current, excessive heat, or flames Pneumatic tools must never be operated from compressed gas cylinders Compressed gas cylinders must never be taken into an unventilated room, tank, or confined space Gas cylinders must only be used for the purpose intended by the supplier Cylinder valves must be closed when the work is finished, the gas released from the regulator, the regulator removed, and the protective cap installed

26 Welding, Burning, Cutting, and Hot Work Safe Practices Corporate Policy Issued: Revision #:3 Revision Date: 10/11/11 Leaking gas cylinders should: Be taken out of use immediately Have the valve closed Be properly tagged & supervision notified Have warning signs posted as necessary The supplier notified and their instructions followed. Regulators used with compressed gas cylinders must meet with the following requirements. Only regulators approved by recognized testing agencies such Underwriters Laboratories, Inc. or Factory Mutual should be used at Stone Energy Corporation Sites Regulators should have both high and low pressure gauges Oxygen regulators should have a safety relief valve and safety vent covers on the high pressure gauge Regulator treads should conform to industrial standards. (ANSI / CGA V ) Regulators should be clearly marked as to their type of service Regulators must always be handled carefully and repaired only by the manufacturer Leaky and damaged regulators or regulators showing creeping pressure changes must be taken out of service and repaired The pressure-adjusting device should be released whenever regulators are connected but not in use Cylinder valves should never be opened until the regulator is drained of gas and the pressure-adjusting device is fully released. Hoses and hose connections used with compressed gas cylinders must meet the following requirements: All cutting hoses used in field operations shall be grade T without regard to the type of fuel being used in the respective operation (ie: oxygene, acytelene, propane, etc.) Hoses and connections must be properly identified. Color codes for hoses should be: Red - fuel-gas hose Green - oxygen hose Black - inert gas or air hose. Connection markings are usually as follows:

27 Welding, Burning, Cutting, and Hot Work Safe Practices Corporate Policy Issued: Revision #:3 Revision Date: 10/11/11 Std - Oxy for oxygen Std - Acet for acetylene. The following safety rules apply to the use of hoses in welding and cutting activities: Backflow protection shall be provided by an approved device that will prevent oxygen from flowing into the fuel-gas system or fuel from flowing into the oxygen system (Follow vendor installation instructions) Flash-back protection shall be provided by an approved device that will prevent flame from passing into the fuel-gas system (Follow vendor installation instructions) Do not use hoses that are longer than necessary Prevent kinking of hoses Prevent hose damage from vehicular or pedestrian traffic Repair or replace damaged or leaking hoses at once (Do not repair with tape.) Inspect hoses frequently. Test for leaks with normal pressure using a soapy water solution Protect hoses from sparks, slag, grease, oil, chemicals, etc. Torches used for welding and cutting must meet the following requirements: Only torches approved by recognized testing agencies such as Underwriter Laboratories, Inc. or the Factory Mutual should be used The following safety precautions are to be followed when using torches: The proper torch must be used for the work to be done. The manufacturer s information should be checked Before changing torches, the gas must be shut off at the regulator; NOT by crimping the hose Torches should be lit in a manner which does not endanger personnel, equipment, or nearby objects A torch should not be put down until it is completely shut off Torches should NOT be hung on regulators or cylinders Torches must be operated according to the manufacturer s recommendations. When welding or cutting is to be stopped for some period of time (such as lunch break or overnight) the following is required: Close the oxygen and acetylene cylinder valves

28 Welding, Burning, Cutting, and Hot Work Safe Practices Corporate Policy Issued: Revision #:3 Revision Date: 10/11/11 Open the torch valves and relieve all gas pressure from the hoses and regulator Close the torch valves and release regulator pressure screws. Arc welding and cutting must meet the following requirements: The personnel using this equipment must be knowledgeable of the manufacturer s operating instructions, and the equipment must be operated in accordance with the manufacturer s recommendations Welding cables must be inspected frequently and maintained in good condition Defective or damaged cables should be replaced immediately All electrical connections should be securely fastened Welding cables should be kept orderly to minimize tripping hazards and should not lie in water, oil, or spilled materials. When arc welding is performed in wet or damp conditions, special precautions must be taken to protect the welder from electric shock. Safety shields or barricades shall be placed around welding jobs where needed to protect others from direct rays of electric arc. These direct rays may cause flash burns and/or eye damage. Electrodes and holders must meet the following requirements: The proper size holder must be used for the electrode to be used. Hot electrode holders must NOT be dipped in water. The following precautions should be taken to prevent electrical shock: The welder / operator should be insulated from both the work and the metal electrode and holder The electrode should not contact the operator s bare skin or wet clothing Never change electrodes with bare hands or wet gloves The welding unit should be properly grounded Keep cables and electrode holders in good condition and clean and dry Keep welding cables away from other sources of electrical power Never coil or loop welding cables around the body.

29 Welding, Burning, Cutting, and Hot Work Safe Practices Corporate Policy Issued: Revision #:3 Revision Date: 10/11/11 Part A BOEMRE Approved Welding, Burning, Hot Tapping Plan General All offshore welding/burning shall be minimized by onshore fabrication when feasible. This Welding and Burning Safe Practices and Procedures Plan will be used in performing welding/burning activities on the following: A mobile offshore drilling unit (MODU) during any drilling, completion, re-completion, remedial repair, stimulation, or other work-over activity A platform, structure, artificial island, or other installation during any drilling, well completion, well work-over, or production operation. A platform, structure, artificial island, or other installation which contains a well open to a hydrocarbon-bearing zone. A copy of this plan and approval letter shall be available on the facility where the welding is being conducted. Stone Energy Corporation Standards Stone Energy Corporation Welding Qualification Standards Structural Welding: All structural welding on Stone Energy Corporation facilities shall be done by qualified welders who have been tested and qualified in accordance with appropriate provisions of AWS Structural Welding Code, AWS Dl.1. Pressure Piping and Process Equipment: All welding on pressure piping and process equipment on Stone Energy Corporation s facilities shall be done by qualified welders who have been tested and qualified in accordance with appropriate provisions of ANSI B31.3, Petroleum Refinery Piping Code. Any welding performed on coded process equipment shall be conducted in a code shop only, and under qualified inspection. This equipment shall be code stamped. Qualifications: Welder examination for qualification shall be accomplished by a third party who has demonstrated expertise in welding inspection and welder qualifications. Evidence of successfully meeting Stone Energy s qualifications standards shall be furnished to each welder by the third party conducting the qualifications test. A copy of the qualification test results shall be furnished to Stone Energy. Requalification shall be required at Stone Energy s request on a periodic basis not to exceed a twelve month period.

30 Welding, Burning, Cutting, and Hot Work Safe Practices Corporate Policy Issued: Revision #:3 Revision Date: 10/11/11 The Stone Energy Corporation s designated person-in-charge of welding/burning operations shall be the drilling consultant on drilling rigs and the production foreman on production platforms. Safe Welding Areas Stone Energy Corporation, as the designated Operator of certain federal offshore leases, will determine safe welding areas according to the following criteria, and will spot these respective areas on individual structures for its personnel to abide by, and for BOEMRE inspection. They are as follows: Prior to the commencement of any welding or burning operation on a structure, Stone Energy s designated person-in-charge at the installation shall personally inspect the qualifications of the welder or welders to assure that they are properly qualified in accordance with the approved company qualification standards or requirements for welders. All welding equipment shall be inspected prior to beginning any welding and burning. All engine-driven welding machines located on production or process platforms shall be equipped with spark arrestors and drip pans. Welding leads shall be completely insulated and in good condition, oxygen and acetylene bottles secured in a safe place, and hoses verified to be leak free and equipped with proper fittings, gauges, and regulators. No welding shall be done on containers, tanks, or other vessels which have contained a flammable substance, unless the contents of the vessels have been rendered inert and determined to be safe for welding or burning by the designated person-in-charge. Open Areas: Safe welding areas will be placed only in unclassified areas as defined by API RP 500. All safe-welding areas will have solid decking immediately beneath them to prevent welding slag from falling into the water below the facilities or to a lower deck. There will be no equipment containing hydrocarbons or other flammable substances within 35 feet horizontally from the safe welding site. Enclosed Areas: Properly designed and placed welding sheds shall be kept free of flammables around all sides. Undesignated Safe Welding and Burning Areas All welding which cannot be done in the approved welding area shall be performed in compliance with the following:

31 Welding, Burning, Cutting, and Hot Work Safe Practices Corporate Policy Issued: Revision #:3 Revision Date: 10/11/11 Prior to the commencement of any welding or burning operation on a structure Stone Energy Corporation s designated person-in-charge at the installation shall personally inspect the qualifications of the welder or welders to assure that they are properly qualified in accordance with the approved company qualification standards or requirements for welders. The designated person-in-charge and the welders shall personally inspect the area in which the work is to be performed for potential fire and explosion hazards. After it has been determined that it is safe to proceed with the welding or burning operation, the designated person-in-charge shall issue written authorization for the work using the Welding and Burning Authorization - Hot Work Permit. All welding equipment shall be inspected prior to beginning any welding and burning. All engine-driven welding machines located on production or process platforms shall be equipped with spark arrestors and drip pans. Welding leads shall be completely insulated and in good condition, oxygen and acetylene bottles secured in a safe place, and hoses verified to be leak free and equipped with proper fittings, gauges, and regulators. During all welding and burning operations, one or more persons as necessary shall be designated as a fire watch. Persons assigned as a fire watch shall have no other duties while actual welding or burning operations are in progress. Prior to any welding or burning, the fire watch shall have in his possession, firefighting equipment in a condition ready to use. If a gas detector is not in the area where welding is being performed, the fire watch will have a portable gas detector in use. No welding shall be done on containers, tanks, or other vessels which have contained a flammable substance unless the contents of the vessels have been rendered inert and determined to be safe for welding or burning by the designated person-in-charge. In the event drilling, work-over, or wire-line operations are in progress on the platform, welding operations in other than approved safe welding areas may be conducted only if the wells on which work is being done contain noncombustible fluids and entry of formation hydrocarbons into the well bores is precluded by a positive overbalance toward the formation. Also, all other provisions of this section shall be applicable. No hot tapping on platforms is anticipated, but if it becomes necessary, applications will be submitted to and approved by the Minerals Management Service before any hot tapping is performed. Prior to any welding or burning operations being conducted in or within 10 feet of the well bay or production area, all producing wells in the well bay or production area will be shut in at the surface safety valve, in accordance with 30 CFR

32 Welding, Burning, Cutting, and Hot Work Safe Practices Corporate Policy Issued: Revision #:3 Revision Date: 10/11/11 All production equipment located between 10 feet and 35 feet of any welding or burning operation will be protected with flame proofed covers, or otherwise shielded with metal or fire resistant guards or curtains. If any of the production equipment is in a Class I Division I area, special attention will be given to assure that the equipment is rendered safe before welding. Equipment containing hydrocarbons or other flammable substances shall be relocated at least 35 feet horizontally from the work site. Similar equipment located at a lower elevation where slag, sparks, or other burning materials could fall shall be relocated at least 35 feet from the point of impact. If relocation is impractical, either the equipment shall be protected with flameproof covers or otherwise shielded with metal or fire resistant guards or curtains, or the contents shall have been rendered inert. All water discharge point sources from hydrocarbon handling vessels shall be monitored in order to stop welding and burning operations in case flammable fluids are discharged as a result of equipment upset or malfunction

33 Welding, Burning, Cutting, and Hot Work Safe Practices Corporate Policy Issued: Revision #:3 Revision Date: 10/11/11 Part B STONE ENERGY CORPORATION HOT WORK, SAFE WORK, OR ENTRY PERMIT CHECK ONE HOT WORK \ OTHER VALID ON THIS DATE AND UP TO DAY SHIFT OF THE FOLLOWING DAY. DATE WORK TO BEGIN AT (A.M.) (P.M.) PERMIT IS VOID AS FOLLOWS 1. WHEN CONDITION CHANGE MAKING CONTINUTATION HAZARDOUS 2. WHEN STARTING WORK DELAYED OR WORK STOPPED FOR HR. (S) 3. PERMIT EXPIRES AT A.M. P.M. SECTION (1) SECTION (2) ALL ITEMS TO BE INITIALED BY AUTHORIZED PERSON. PERMISSION IS GRANTED TO TO TO USE ENTER DESCRIPTION OF WORK (HOT WORK ONLY) (ENTRY ONLY) PLANNED AND SPECIFIC LOCATION ITEM A. PROPSED WORK HAS BEEN CHECKED WITH OPERATOR IN CHARGE B. PRESSURE IN EQUIPMENT AND PIPELINE REDUCED TO SAFE LEVEL C. UNDERGROUND DRAWINGS CHECKED BEFORE EXCAVATION D. EQUIPMENT HAS BEEN DRAINED AND PURGED OR CLEANED E. EQUIPMENT HAS BEEN PROPERLY BLINDED OR BLANKED F. GAGE GLASS COLUMNS HAVE BEEN DRAINED AND CLOSED OR PROTECTED G. PRECAUTIONS TAKEN AGAINST RELEASE OF GAS OR OIL IN AREA H. OIL SPILLS OR OTHER COMBUSTIBLES HAVE BEEN REMOVED OR PROTECTED I. SEWER OPENINGS HAVE BEEN COVERED J. FACILITIES AVAILABLE FOR CONTROL AND DISPOSAL OF DANGEROUS MATERIAL INITITAL DOES YES NOT APPLY UNIT OR AREA FACE SHIELD SAFETY GOGGLES T. PROTECTIVE SUIT K. STAND BY FIRE EQUIPMENT NEEDED (LIST): U. SAFETY HARNESS / LIFE LINES V. OTHER PERSONAL PROTECTION NEEDED L. SPECIAL WARNING / CAUTION SIGNS POSTED W. RESCUE MEN DESIGNATED M. EQUIPMENT HAS BEEN PROPERLY TAGGED AND / OR LOCKED OUT N. T.E.L. REPRESENTATIVE HAS AFFIRMED THAT EQUIPMENT IS LEAD FREE O. The cutting hoses are T rated. P. WELDING MACHINE IS SAFELY LOCATED, SAFELY GROUNDED & SPARKS CONTROLLED INITIAL ITEM DOES YES NOT APPLY Q. VENTILATION EQUIPMENT HAS BEEN INSTALLED R. PROPER MEANS OF ACCESS OR EGRESS IS AVAILABLE S. PERSONAL PROTECTION EQUIPMENT IS NEEDED & WILL BE WORN (CHECK BOXES) LUNGS EYES DUST RESPIRATOR SAFETY GLASSES EXTREMITIES X. CRAFTSMEN ARE TRAINED FOR HAZARDS THEY MAY ENCOUNTER CANNISTER MASK COMPRESSED AIR MASK FRESH AIR MASK BOOTS HELMET GLOVES Y. ADDITIONAL PRECAUTIONS LISTED IN SECTION (3) WILL BE FOLLOWED. CONTRACTORS ALSO SEE REVERSE SIDE OF YELLOW COPY FOR INSTRUCTIONS AND FURTHER APPLICABLE PROVISIONS. SIGNATURE: SECTION (3) VAPOR TESTS AND SAFETY REPORT HC H 2 S H 2 CO O 2 OTHER TYPE FLAMMABLE VAPOR TIME % OR PPM INITIALS OF TESTER

34 Welding, Burning, Cutting, and Hot Work Safe Practices Corporate Policy Issued: Revision #:3 Revision Date: 10/11/11 VAPOR TESTS TO BE REPEATED EVERY HR(S). RE-INSPECTION REQUIRED EVERY HR(S). ADDITIONAL PRECAUTIONS REQUIRED: SECTION (4) APPROVAL SIGNATURES SAFFETY CHECKED SECTION (5) RE-INSPECTION INTIAL IN COLUMNS BELOW IF ORIGINAL CONDITIONS PREVAIL. TIME OF RE-INSPECTION AUTHORIZED PERSON SEC 2 SAFETY CHECKED WORK AUTHORIZED WORK AUTHORIZED WHITE POST AT JOB SITE PINK TO ISSUER YELLOW LOCAL SAFETY DEPARTMENT After work is complete or permit expires, file completed permit in platform/facility file system.

35 Confined Space Entry Corporate Policy Issued: Revision #:1 Revision Date: 10/17/07 Purpose Confined Space Entry The purpose of this chapter is to establish methods to identify confined spaces, classify them according to their risks, and establish guidelines necessary for the safe preparation, entry, and restoration of a confined space entry. Scope This program applies to any confined spaces of Stone Energy Corporation s facilities that meet a Permit-Required Confined Space definition: that has limited openings for entry and/or exit; that could contain known or potential hazards; that is not intended for continuous occupation; or that has insufficient natural ventilation. Note: It is the policy of Stone Energy Corporation that none of its production operators (employees or contractors) will be allowed to enter confined spaces unless authorized by the Production Superintendent. Examples of confined spaces include: Spaces normally entered through a manhole, such as tank cars, process vessels, bins, furnaces, boilers, storage vessels, mixers, etc. Open-topped spaces more than four (4) feet deep not subject to good ventilation, such as pits, trenches, vessels, vaults, sumps, wells, etc. Other types of spaces, such as large diameter pipes, septic tanks, sewers, etc. Responsibilities The Stone Energy Production Foreman is responsible for overall program administration. The Person In Charge (PIC), Platform Supervisor, or Project Manager is responsible for: Implementing the program in their areas and monitoring compliance.

36 Confined Space Entry Corporate Policy Issued: Revision #:1 Revision Date: 10/17/07 Assuring that entrants, attendants, and gas testing and rescue personnel have completed the appropriate training. Obtaining and/or issuing the necessary permits and serving as the Entry Supervisor. If a confined space entry is conducted by contract personnel, the Field Foreman will be responsible for verifying that all permits have been completed and the requirements of this program have been met. Verifying that equipment preparation and isolation methods have been completed (including the placement of tags and/or locks as required) and are sufficient to protect personnel and equipment (Refer to Chapter 1). Performing, or having a qualified gas tester perform, the pre-entry and follow-up atmospheric monitoring for oxygen, flammable, and toxic atmospheres. Instructing personnel on the proper methods and safeguards required to perform the job safely. Compliance with pre-set conditions on the permit. Alerting all affected personnel to changes in area conditions which could adversely affect personnel or equipment involved. Leaving the jobsite in a safe, clean condition. Informing the appropriate personnel when the work has been completed, by returning and/or signing off on the permits (including the removal of any tags and/or locks used to isolate the equipment). The Person In Charge (PIC), Platform Supervisor, or Project Manager is responsible for: Maintaining a master list or description of permit and non-permit required confined spaces at the facility/site, and posting appropriate warning signs at entrances to confined spaces. Assisting contract personnel managers and supervisors/superintendents with the confined space hazards analysis and the development of entry and emergency procedures. Assisting with atmospheric monitoring as needed.

37 Confined Space Entry Corporate Policy Issued: Revision #:1 Revision Date: 10/17/07 Reviewing and endorsing the Confined Space Entry Permit before personnel enter the space. This includes third party confined space entry operations. The Personnel entering a Confined Space are responsible for: Understanding and following the Confined Space Entry Procedure. Knowing the requirements and precautions specified on the Confined Space Entry Permit. Knowing the potential hazards related to the confined space involved. Being able to recognize the signs and symptoms of over-exposure to potential hazards. Understanding the consequences of over-exposure to potential hazards. Maintaining contact with the Attendant (Hole-Watch). Evacuating the confined space when conditions change, become unsafe or when instructed to do so by the Attendant. Using the personal protective equipment required for the job as specified on the Confined Space Entry Permit. The Attendant (Hole Watch) for Confined Space Entry is responsible for: Understanding and following the Confined Space Entry Procedure. Maintaining an accurate count of all persons in the confined space. Knowing the requirements and precautions specified on the Confined Space Entry Permit. Knowing the potential hazards related to the confined space. Monitoring hazards inside and outside the space to determine if it is safe for entrants to remain in the space. Maintaining contact with personnel working in the confined space. Being able to recognize the signs and symptoms of over-exposure to potential hazards.

38 Confined Space Entry Corporate Policy Issued: Revision #:1 Revision Date: 10/17/07 Ordering evacuation of the confined space when: A condition develops which is not allowed by the entry permit. Personnel show behavior indicating over-exposure to hazardous materials. A situation outside the space develops which could endanger personnel in the confined space. The Attendant must leave his/her workstation. Keeping unauthorized persons away from the confined space. Summoning rescue services in emergency situations. NOTE: The Attendant may leave his/her workstation only long enough to summon rescue or emergency services. Assisting rescue personnel to the extent possible based on training to do so. The Attendant is not to enter the confined space to attempt rescue, except as a trained member of a rescue team. Definitions Confined Space means that the space: is large enough and so configured that an employee can bodily enter and perform assigned work; and has limited or restricted means for entry or exit; and is not designed for continuous employee occupancy. Non-Permit Confined Space means a confined space that does not contain or, with respect to atmospheric hazards, have the potential to contain any hazard capable of causing death or serious harm. This type of confined space shall require a written permit to certify the confined space is suitable to be entered. Permit-Required Confined Space means a confined space that has one or more of the following conditions or characteristics: Contains, or has the potential to contain a hazardous atmosphere, or

39 Confined Space Entry Corporate Policy Issued: Revision #:1 Revision Date: 10/17/07 Contains a material that has the potential for engulfing an entrant, or Has an internal configuration such that an entrant could be trapped or asphyxiated by inwardly converging walls or by a floor, which slopes downward and tapers to a smaller cross-section, or Contains any recognized serious safety or health hazard. NOTE: A Permit-Required Confined Space may be reclassified as a Non-Permit Confined Space by removing the hazard. Acceptable Entry Conditions means the conditions that must exist in a permit space to allow entry and to ensure that employees involved with a permit-required confined space entry can safely enter into and work within the space. Attendant means an individual stationed outside the permit space who monitors the authorized entrants and who performs all attendants duties assigned by the Confined Space Entry Program. Authorized Entrant means an employee who is authorized by the employer to enter a permit space. Blanking or Blinding means the absolute closure of a pipe, line, or duct by fastening of a solid plate that completely covers the bore and is capable of withstanding the maximum pressure of the pipe, line, or duct with no leakage beyond the plate. Attempts should be made to blind at the closest point to the confined space. Double Block and Bleed means the closure of a line or pipe by closing and locking or tagging two (2) in-line valves and by opening and locking or tagging a drain or vent valve in the line between the two closed valves. Entry means the action by which a person passes through an opening into a permitrequired confined space. Entry occurs as soon as any part of the entrant s body breaks the plane of an opening into the space. Entry Permit means the written or printed document that is provided by the employer to allow and control entry into a permit space. Acceptable entry conditions are properly noted on the document. Entry Supervisor means the person responsible for determining if acceptable entry conditions are present at a permit space where entry is planned, for authorizing entry and overseeing entry operations, and for terminating entry as required.

40 Confined Space Entry Corporate Policy Issued: Revision #:1 Revision Date: 10/17/07 Hazardous Atmosphere means an atmosphere that may expose employees to the risk of death, incapacitation, impairment of the ability to self-rescue, injury, or acute illness from one or more of the following causes: Atmosphere oxygen concentration below 19.5 percent or above 23.5 percent. Flammable gas, vapor, or mist in excess of 10 percent of the lower explosive limits (LEL). Airborne combustible dusts at a concentration that meets or exceeds its lower explosion limits (LEL). Any other atmospheric condition that is Immediately Dangerous to Life and Health (IDLH). Atmospheric concentration of any substance for which exposure could result in excess of that substance s permissible exposure limit. Hot Work Permit means the employer s written authorization to perform operations capable of providing a source of ignition. Immediately Dangerous to Life or Health (IDLH) means any condition that poses an immediate or delayed threat to life, or that would cause irreversible advance health effects, or that would interfere with an individual s ability to escape unaided from a permit space. Inerting means the displacement of the atmosphere in a permit space by a noncombustible gas to such an extent that the resulting atmosphere is noncombustible. Note that this procedure produces an IDLH oxygen deficient atmosphere. Isolation means the process by which a permit space is removed from service and completely protected against the release of energy or material into the space. Oxygen Deficient Atmosphere means an atmosphere containing less than 19.5 percent oxygen by volume. Oxygen Enriched Atmosphere means an atmosphere containing more than 23.5 percent oxygen by volume. Permit System means the employer s written procedure for preparing and issuing permits for entry and for returning the permit space to service following termination of entry. Prohibited condition means any condition in a permit space that is not allowed by the permit during the period when entry is authorized.

41 Confined Space Entry Corporate Policy Issued: Revision #:1 Revision Date: 10/17/07 Rescue service means the person(s) designated to rescue employees from permit space. Retrieval system means the equipment (including a retrieval line, chest or full-body harness, wristlets if appropriate, and a lifting device or anchor) used for non-entry rescue of persons from permit spaces. Testing means the process by which the hazards that may confront entrants of a permit space are identified and evaluated. Testing includes specifying the tests that are to be performed in the permit space. Requirements Supervision should be alert to the possibility that a confined space may exist or may be introduced to the facility/site at a later date and that should be added to the master list. Warning signs must be posted at the entrance of confined spaces that may not be recognized as a confined space. Before any employee or contractor is permitted to enter a Permit Required Confined Space, a Confined Space Entry Permit must be issued and posted at the entrance to the space such that it may be inspected by anyone involved in the confined space entry. Trained supervision, Environmental, Health and Safety, or Field Foreman only may issue confined Space Entry Permits. The supervisor of personnel performing work inside the space is the recipient of the permit. Suitable personal protective equipment must be worn when entering a confined space. Although the equipment can vary depending on the assigned work, it may include: Self contained respiratory equipment Acid or caustic resistant apparel, e.g., slicker suits Suitable hand protection Eye and face protection Head protection Hearing protection Foot protection

42 Confined Space Entry Corporate Policy Issued: Revision #:1 Revision Date: 10/17/07 Safety harness A full body harness with lifelines attached may be required for those who enter the confined space. If a lifeline is not required for those entering, and if entry is from above or through a man-way, a lifeline must be immediately available to the standby employee. Each authorized entrant using a full body harness must have a retrieval line attached at the center of the entrant s back near shoulder level, or above the entrant s head. Wristlets may be used in lieu of the full body harness if the use of a full body harness is infeasible or creates a greater hazard, and it is shown that the use of wristlets is the safest and most effective alternative. The other end of the retrieval line must be attached to a mechanical device or fixed point outside the permit space in such a manner that rescue can begin as soon as the rescuer becomes aware that rescue is necessary. A mechanical device must be available to retrieve personnel from vertical type permit spaces more than five (5) feet deep. Each employee who enters a confined space must verify that equipment is properly isolated, locked and tagged out, and sign in on the Confined Space Entry Permit (see Chapter 2, Part A). When he/she leaves the confined space, he/she must sign off the Confined Space Entry permit. The confined space entry permit shall not be removed until all personnel have signed off the permit. A Confined Space Entry Permit is valid for one (1) shift. A new entry permit must be filled out and posted at the main access way and reissued every shift or 12 hours. The permit is void and must be reissued whenever a condition develops which was not covered by the permit. All permit required and non-permit required confined spaces must have the atmosphere tested before they are entered. Entry is not allowed into a confined space with a hazardous atmosphere. A trained Attendant must be assigned and stationed at the entrance of all permit required confined space entry jobs. Compressed gas bottles (acetylene, oxygen, argon, nitrogen, air, etc.) must not be brought into a confined space. Any time work is suspended, welding leads and hoses must be removed from the confined space. This is to prevent leakage into the space which would compromise the atmosphere, and to reduce the risk of an explosive release into a small area where its effects would be greatly concentrated.

43 Confined Space Entry Corporate Policy Issued: Revision #:1 Revision Date: 10/17/07 Ventilation When painting, welding, burning, applying coatings, or doing anything which might generate gases, vapors, or fumes, adequate ventilation and respiratory protection must be used. It should also be noted that coatings may cause a fire hazard. Ventilation is discussed below: General ventilation should be achieved by exhausting from the confined space and discharging to the outside. Ventilation equipment should be placed at the top or bottom of the confined space, based on the risk/nuisance factors to be encountered. For example, if the risk factors are represented by lighter than air gases such as hydrogen (H2) or natural gas (methane), the air mover must be near the top of the confined space where these gases will rise. In all other circumstances, the air mover should be at the bottom of the confined space. The inlet for ventilation air must be at a position upwind from the air mover to avoid short circuiting, which defeats the purpose of ventilation, and away from diesel engines, etc., such as welding machines. A positive means of ventilating the vessel or space must be established and operated the entire time work is in progress. The accepted practice and the recommended level for general ventilation is one complete air change every three (3) minutes. In some cases, natural may be sufficient. In other cases, it may be necessary to use fans or air movers. The ventilation system must be arranged so that only clean, fresh air is drawn into the vessel. Ventilation systems should be bonded to the space or vessel. If air operated horns are used to ventilate a space, they must exhaust outside the space, not inside. Air horns may only be operated by clean fresh air. Nitrogen, oxygen or other gases are hazardous and may not be used. Whenever welding, cutting, burning, or brazing is performed in a confined space, local exhaust ventilation may be necessary to capture contaminants or fumes at the source (the point of operation) and remove them from the atmosphere within the confined space. The exhaust air mover must be outside the confined space and a flexible hose/duct connected to it and extending to the point of operation. Hot Work Permits are required before performing these operations in confined spaces. Pneumatic tools should be used whenever possible to reduce the hazard of electrical shock and ignition sources. Pneumatic tools may only be operated with air. The use of nitrogen, oxygen, or other gas is prohibited.

44 Confined Space Entry Corporate Policy Issued: Revision #:1 Revision Date: 10/17/07 Specific Requirements All gas testing and monitoring equipment used in, or to monitor atmospheres in, confined spaces shall be UL Listed or FM Approved as Intrinsically Safe or Approved for Use in Hazardous (electrically classified) Locations. Gas testing and monitoring equipment must have a field calibration check before the initial use each day. In addition, functional operation checks must be performed before and after each use. Portable electric tools, lights, and equipment operated in areas where there is a potential for flammable or combustible atmospheres to be present or accumulate shall be of industrial grade, in good condition, and UL listed or FM approved as Intrinsically Safe or Approved for Use in Hazardous (electrically classified) locations. Portable electric tools, lights and equipment used in Confined Spaces shall be of industrial grade, in good condition, operated at a maximum of 110 volts AC, and connected to a ground fault circuit interrupter, or be operated at no more than 12 volts DC. Personal protective equipment such as hard hats, safety glasses, face shields, and steeltoed boots etc., shall meet the applicable ANSI or other recognized industry standards for the application. Respiratory protection equipment shall have NIOSH Approval for the application. Fall Protection & Rescue Retrieval equipment shall meet the applicable ANSI Standards for the application. Continuous monitoring of the confined space atmosphere should be performed at all times. Permissible exposures to abnormal atmospheres in confined spaces for purposes of entry into confined spaces -a normal working atmosphere will be defined as one which contains an oxygen concentration of 19.5% minimum and maximum concentration of 23.5%, and is free of harmful amounts of flammable gases, dusts, and toxic materials (less than 10% of the LFL and below the PEL or TLV). Anything other than this will be considered an abnormal or alien atmosphere. Under certain controlled circumstances, but not IDLH conditions, where normal atmospheres cannot be achieved, personnel will be permitted to enter and work in Confined Spaces but only when wearing the appropriate personal protective equipment and respiratory protection. See "Hazardous Atmosphere" in the Definitions Section of this procedure. Emergency notification, response, and rescue plans must be made in advance. If special equipment is needed, such as scoop stretches, safety harnesses, retrieval lines, life lines, self-contained breathing equipment, etc., it should be made ready for immediate use. If there is a reasonable chance that life threatening incidents (asphyxiation or severe bleeding) may occur, an onsite rescue team may be needed. If the facility/site plans to use

45 Confined Space Entry Corporate Policy Issued: Revision #:1 Revision Date: 10/17/07 an offsite rescue team, facility/site management must evaluate the capabilities of the response group to assure their response times are appropriate for the hazards. Agreement with offsite rescue teams should be documented and updated at least annually. Non-Permit Required Confined Spaces These are spaces in which the hazards are considered to be minimal or adequately controlled. To be classified as a Non-Permit Required Confined Space, the Confined Space must not have conditions which are, or could reasonably become, Immediately Dangerous to Life or Health (IDLH). Examples of Non-Permit Required Spaces might include, but not necessarily be limited to: Pits less than four (4) feet in depth Heating, ventilating, or air conditioning (HVAC) plenums designed to be entered for servicing Manholes or large diameter pipe that have very low or no potential for a hazardous atmosphere to develop. Non-Permit Required Confined Space work should be conducted as work in regular work areas. However, personnel should consider if: There have been changes in the Confined Space since it was determined to be a Non-Permit Required Confined Space. The work planned could cause Confined Space to become Immediately Dangerous to Life or Health (IDLH). Other work being performed in the area of the Non-Permit Required Confined Space could cause it to become Immediately Dangerous to Life or Health (IDLH). If any of the above applies, the Non-Permit Required Confined Space should be treated as a Permit Required Confined Space. If there is any question about the classification, stop and check with your supervisor.

46 Confined Space Entry Corporate Policy Issued: Revision #:1 Revision Date: 10/17/07 Part A Confined Space Entry Permit Date: Start Time: End Time (no later than end of shift or 12 hours): District/Field/Facility: Confined Space Description/Purpose of Entry: Hazards (circle): High H2S, high/low oxygen, NORM, benzene, SO2, CO, flammable gas, chemicals (see MSDS), poor light, slippery surfaces, low/high temperature, electrical, high noise level,. Equipment (circle): Air Supplied Respirators, air-driven or explosion-proof fan, air eductor, Tyvek clothing, slicker (rain) suit, rubber gloves, rubber boots, safety harness and lifeline, hearing protection, hard hat, goggles, face shield, hoist or block and tackle and mounting point directly over top entry, gas monitor(s), first aid equipment, fire fighting equipment, low voltage or explosion-proof lighting, radios, vacuum truck, scaffolding, GFCI, danger signs, barrier tape,. List all persons involved in the confined space entry work (attach second page if necessary): Entrant Print Name / Company / Title Signature (use ink) (Y/N) Standby Person (s): Is all piping/wiring disconnected, blinded or locked out? (See Lockout/Tagout Procedures) Have all substances been flushed from the vessel and lines? Has continuous forced draft ventilation been established? Monitor continuously and record meter readings at least hourly below. Time Guides: Oxygen % Flammability (%LEL) <10 H2S (ppm) <10 SO2 (ppm) <2 Benzene (ppm) <1 NORM (μr/hr) <50 Other Meter Model/Serial Number: Calibrators name/date: Name of meter operator: Reference Check Results: Has breather and rescue equipment been checked and issued to each person involved in confined space work? SCBA at entry for standby person? YES YES Yes Yes Yes

47 Confined Space Entry Corporate Policy Issued: Revision #:1 Revision Date: 10/17/07 Do all involved employees/contractors understand hazards, know responsibilities, have protective equipment and understand a rescue plan (pre-job safety meeting)? Have the Respiratory Protection and Lockout/Tagout procedures been reviewed and followed? Is standby person trained in rescue, first aid, CPR, use of their assigned SCBA, their responsibilities as standby and the communication system with entrants? Hot work Permit required? Attach copy. YES YES YES YES Certified as Safe by Entry Supervisor: Print Signature

48 Crane Operation and Maintenance Program Acknowledgment Page I hereby commit as an employee of Stone Energy Corporation or as a contract employee working for Stone Energy Corporation that I understand the criticality of complying with the Stone Energy Crane Operation and Maintenance Program. I have read and understand the Stone Energy Crane Operation and Maintenance Program and will abide by the procedures contained herein. Specifically, I will ensure that: All crane operations meet or exceed API RP 2D (latest edition) and this program. All riggers and crane operators on board platform are qualified and that I have personally verified that their qualifications meet or exceed API RP 2D (latest edition). All cranes are inspected and maintained in proper safe working order and are used within their safe operating limitations. All new Crane Operators and Riggers on board platform will read the Stone Energy Crane Operation and Maintenance Program and abide by the procedures. Any questions regarding the policy and procedures within this program shall be directed to your Stone Energy Production Foreman. Work Location: Signature: Print Name: Date: Company Name: Return this completed statement to your Stone Energy Production Superintendent. TABLE OF CONTENTS

49 1.0 OBJECTIVE 2.0 PURPOSE AND SCOPE 3.0 DEFINITIONS 4.0 REFERENCES 5.0 RESPONSIBILITIES 5.1 Crane Operator 5.2 Hoist Operator 6.0 OPERATING PRACTICES, PROCEDURES, AND REQUIREMENTS 6.1 Crane Equipment 6.2 Operating Practices 6.3 Heavy/Identified Lifts 6.4 Personnel Transfer 6.5 Rigging Practices 6.6 Boats and Shorebase 7.0 INSPECTION AND MAINTENANCE 7.1 Operational Inspections and Maintenance 7.2 Mechanical (Preventative) Inspections and Maintenance 7.3 Required Inspections 7.4 Deficiencies 7.5 Records 8.0 CRANE OPERATOR QUALIFICATIONS 8.1 Physical Requirements 8.2 Training Requirements 8.3 Crane Operator Qualifications / Classifications TABLE OF CONTENTS (Continued)

50 9.0 RIGGER QUALIFICATIONS 9.1 Physical Requirements 9.2 Training Requirements 10.0 OVERHEAD/PORTABLE HOIST OPERATING PRACTICES, PROCEDURES AND REQUIREMENTS 10.1 Hoisting Equipment 10.2 Rigging Practices 10.3 Hoist Inspection and Maintenance 11.0 CONTRACT/RENTAL CRANES 11.1 Jack-Up Boats 11.2 Rental Cranes APPENDIX A - FIELD SUMMARY APPENDIX B - CRANE TERMINOLOGY APPENDIX C - RIGGING SPECIFICATIONS AND INFORMATION APPENDIX D - STANDARD HAND SIGNALS APPENDIX E HEAVY/IDENTIFIED LIFT WORKSHEET APPENDIX F INSPECTION FORMS Crane Pre-Use/Preventative Maintenance Inspection Monthly Inspection Quarterly Inspection Annual Inspection Self Inspection Checklist APPENDIX G DRUM RACK DESIGN GUIDELINES APPENDIX H BOTTLE / CYLINDER RACK DESIGN GUIDELINES Offshore / Onshore Crane Operation and Maintenance Program

51 1.0 OBJECTIVE To set guidelines for the safe operation, maintenance and inspection of all cranes and associated equipment (including criteria for overhead/portable hoists and load rigging practices in order to assure safe operation and mechanical integrity. 2.0 PURPOSE AND SCOPE 2.1 This program is to ensure that all cranes, hoists, slings and wire rope used on Stone Energy operated facilities are properly inspected, maintained and operated according to the manufacturer s recommendations, API RP 2D (latest edition), API RP 2C (latest edition), applicable OSHA regulations, and applicable U.S. Coast Guard regulations. 2.2 These guidelines pertain to all Stone Energy and third party/contract cranes used in conjunction with operations whether operated by Stone Energy personnel or other (contract) personnel. These guidelines do not apply to cranes on movable drilling units, derrick barges, or lay barges, with the exception of Section 6.0 for Boat and Shorebase Operations. This equipment shall be covered under applicable regulations governing their operation and applicable manufacturer s recommendations. Each contractor will be solely responsible for compliance with these requirements. 2.3 Overhead/portable crane or hoist guidelines/procedures are addressed in Section DEFINITIONS Crane Operator: An individual qualified through training meeting requirements of API RP 2D (latest edition), experience and testing who is responsible for all crane operations (including rigging) associated with a particular lift at a facility. "Field Fabricated": The practice of facility personnel using materials available onsite to fashion a makeshift device (i.e. slings) in lieu of utilizing such a device specifically manufactured and tested by an appropriate recognized agency. Load: An object that must be lifted or moved whose total weight equals that of the object and all tackle, wire rope and hardware used to lift or move it. Load Radius: The distance from the centerline of the crane turntable to the centerline of the load (true vertical of the load bearing hook). Overhead Hoist: A semi-portable trolley -type hoist attached to a fixed beam usually used for lifting small loads within a specific area or building.

52 Portable Hoist (Tugger): A portable hoist usually attached to the platform structure used to perform lifting and/or moving of equipment in areas that preclude platform crane or overhead hoist usage. Personnel Basket: A synthetic rope-type basket specifically manufactured for safely transferring personnel to/from boats and offshore platforms. Required Safety Devices: Those safety devices required by regulations, recommended practices and/or industry operating policies that are designed to prevent or minimize accidental occurrences (e.g. anti-two blocking devices, high boom angle kick-outs, etc.). "Rigger": An individual, qualified by training meeting the requirements of API RP 2D (latest edition), assigned the duties of properly attaching slings, hooks, etc., to a load prior to a lifting or hoisting operation. Weather Shutdown : All crane/lifting operations will be shut down when winds reach or exceed 35 Mph. A crane operator can shut down operations below 35 Mph winds if he believes that the weather could cause harm or damage during lifting. 4.0 REFERENCES 4.1 These guidelines have been based in part on guidelines and recommendations contained in the latest editions of: API Spec 2C - Specification for Offshore Cranes API Spec 9A - Specification for Wire Rope API RP 2D - Recommended Practice for Operation and Maintenance of Offshore Cranes API RP 9B - Recommended Practice on Application, Care, and Use of Wire Rope for Oil-Field Service All crane operations on Stone Energy operated facilities shall be conducted in accordance with the latest editions of the above mentioned publications. 5.0 RESPONSIBILITIES 5.1 Crane Operator All crane operators shall read and understand these guidelines The crane operator is responsible for all crane operations including rigging practices, mechanical integrity of the crane as described in Section 7.0, the equipment used, i.e. slings, shackles etc., and the decision to proceed with lifting operations.

53 5.1.3 The crane operator is responsible for performing the Pre-Use and Monthly inspections and/or subsequent inspections (as specified in Section 7.1), and assuring that all rigging equipment is sound and tagged (certified) (API-RP- 2D) as required The crane operator shall designate or identify the riggers and signal personnel in order to enhance communications and reduce confusion The crane operator shall conduct a pre-lift discussion with all personnel involved with the upcoming lifting operation and assure that all riggers are qualified While operating the crane, the crane operator shall: Take into consideration weather and sea conditions and check the appropriate static and dynamic lift charts to determine if the load can be lifted safely. All crane/lifting operations will cease when the winds reach or exceed 35 Mph. The crane operator can shut down operations below 35 Mph winds if he believes that the weather could cause harm/damage during lifting. Not operate the crane if unable to do so safely (e.g., due to illness, taking medication, etc.). Not exceed the limitations imposed by safety devices (e.g., boom kickouts) or structural constraints (e.g., safe boom angles for a given weight). Have the authority to stop the operation if unsafe conditions develop. 5.2 Overhead/Portable Hoist Operator All hoist operators must read and understand these guidelines prior to operating an overhead/portable hoist The hoist operator is responsible for all hoist operations including rigging practices, the mechanical integrity of the hoist, the equipment used, and the decision to proceed with lifting/tugging operations. 6.0 OPERATING PRACTICES, PROCEDURES, AND REQUIREMENTS

54 Crane operation is a privilege by qualification, not a right of employment. Rejection and/or cancellation of a Qualified Operator status are at the discretion of Stone Energy. 6.1 Crane Equipment Except for maintenance personnel performing maintenance duties, no personnel shall operate a crane on a Stone Energy operated facility unless they have a valid and current crane operator qualification card issued through an approved third party trainer in accordance with the provisions of API RP 2D and in accordance with the requirements outlined in Section 8.0. All Crane Operators will also be required to read, understand and follow this Stone Energy Crane Operation and Maintenance Program. All operations, including maintenance operations, shall be conducted in a safe manner. At a minimum this shall include the following: a) The crane operator shall perform a pre-use inspection as detailed in Section 7.1 prior to the day's initial lift operations. b) Lift cables shall not be wrapped around the load (slings or chokers must be used). c) There shall always be a minimum of half (1/2) a layer of cable left on the bottom layer of the auxiliary and load winch cable drums and a minimum of three-quarters (3/4) of a layer of cable left on the bottom layer of the boom winch cable drum at its lowest operational point (i.e., crane boom at horizontal with bridle and boom in tension, or headache ball/load block at water level). d) Required crane safety devices (i.e., anti-two blocking mechanisms on hoist lines, high and low boom angle shutdowns) shall be functioning properly whenever the crane is in operation. The exception to this requirement is whenever the crane is being operated for the purpose of repairing one or more of the safety devices. e) Main hoist lines shall not be twisted around each other. f) A crane file shall be kept on board for the purpose of maintaining records of inspections, maintenance and usage. A minimum of four years shall be available. g) A crane's basic configuration (e.g., boom length, wire rope size and type, etc.) shall not be changed without permission from the Production Foreman. It shall be the Production Foreman's responsibility to ensure that a new load chart is provided to match the new configuration.

55 h) All lift cables/wire ropes and slings shall be inspected for condition, adequate lubrication and appropriate certification tags. 6.2 Operating Practices Except for maintenance personnel performing maintenance duties, no personnel shall operate a crane on a Stone Energy operated facility unless they have been trained by an approved third party instructor in accordance with the provisions of API RP 2D and in accordance with the requirements outlined in Section 8.0. All Crane Operators will also be required to read, understand and follow this Stone Energy Crane Operation and Maintenance Program. All operations, including maintenance operations, shall be conducted in a safe manner. At a minimum this shall include the following: a) The operator will perform Pre-Use and Monthly Inspections regardless of usage time. b) The crane operator will become familiar with the load in respect to its weight and configuration including all special rigging used to lift it prior to making the lift. c) When determining if the fast line can be used for a lift, identify from the load chart the dynamic lifting capacity of the crane (fast line) at the lowest proposed lift angle or longest radius. If the lift exceeds 90% of the rated capacity of the fast line capacity, the fast line shall not be used. d) The crane shall not be overloaded. e) Loads shall not be moved over personnel. f) All personnel must be clear of the load before it is lifted or moved. g) Crane lifting operations may not begin until the crane operator has designated one qualified signal person for all areas where the crane operator's vision is, or will be, obstructed during any part of the lift. The crane operator and the signal person(s) must maintain direct communication with each other throughout their portion of the lift either visually or by radio. Examples of situations requiring two signal persons would include lifts from one deck to another deck (if the signal person from one deck remained on that deck) and lifts to and from boats. h) The crane operator shall respond to signals only from the designated signal person(s), but shall obey any "STOP" signal from anyone whenever it is given. If a stop signal is given, crane operations shall cease until the

56 appropriate designated signal person verifies that it is safe to resume operations. When it is safe to resume operations, the appropriate designated signal person shall communicate that fact to the crane operator. i) When a helicopter approaches a facility, the crane boom shall be swung away from the heliport, the swing lock shall be engaged, and the crane operator shall step out of the cab of the crane. Pilots have been instructed not to land if anyone is in a crane cab. If a lift is in progress, the lift should be completed before the crane is secured. j) Due to potential safety hazards, the crane boom shall be properly cradled under the following conditions: severe weather, high winds, and periods of infrequent use (defined as: several hours, not days) especially at night. k) On lifting, the load hook shall be positioned directly over the load to avoid a side thrust on the boom and to prevent the load from swinging. The swing brake should be unlocked at this time to allow the boom to track the load. l) The crane shall not be used in a manner that might result in shock loading (for example, pulling up grating that is still welded to the platform). 6.3 Heavy/Identified Lifts Stone Energy s intention is to have every lift a safe lift, without incident or injury to persons or equipment. The following is the procedure to be followed in achieving this goal. Heavy lifts are those whose weights are within 10% of the maximum rated dynamic capacity of the crane at any given boom angle. Identified lifts are those deemed critical because of the odd or unusual size of the load, precarious center of gravity of the load, loads which might require special rigging and/or situations that may require special attention or handling Qualification of Heavy/Identified Lifts Qualification of a Heavy Lift: 1. Identify the weight of the load to be lifted. 2. Using a platform deck drawing, identify the load radius at the proposed boat or platform location for the initial lift and/or the proposed boat or platform location to which the load is to be placed.

57 3. From the load chart, identify the dynamic lifting capacity of the crane at the lowest proposed lift angle or longest radius. 4. Subtract 10% from the rated dynamic lifting capacity of the crane at the lowest proposed angle or longest radius. 5. The result is the determining weight 6. If the weight of the load exceeds the determining weight, the criterion has been met to call the lift Heavy. Note: Refer to Appendix E Heavy/Identified Lift Worksheet Qualification of an Identified Lift: 1. Identify the load size, path of movement, handling requirements and load positioning. 2. If any of the previous facts deem the load awkward, unusual or potentially hazardous to the surrounding equipment or persons the load is called Identified. Note: Refer to Appendix E Heavy/Identified Lift Worksheet Heavy/Identified Lift Procedures The following procedures will be followed when Heavy and/or Identified lifts are to be made by Stone Energy and/or Rental (Contract) Cranes: 1. The Supervisor, Project Engineer or Foreman will be notified when there is a potential Heavy or Identified Lift situation for a Stone Energy crane. The Foreman will be responsible for inspection and maintenance stated herein to assure proper mechanical integrity and qualified operation of the Stone Energy crane. 2. The Supervisor, Project Engineer or Foreman will be notified when there is a potential Heavy Lift to be performed by any contracted crane. The contractor will adhere to all specifications and procedures herein unless agreed to otherwise. 3. In Turn-Key operations the contractor will attend a pre-job meeting and review the procedures herein.

58 6.3.3 Pre-Lift Information Heavy Lift - Pre-Lift Information To be documented and sent to Supervisor in charge of job. 1. The weight of the lift and center of gravity will be verified onshore by actual load cell test (not estimated) and documented. 2. Boom angle and radius will be verified for the off load boat position and the capacity of the crane at that angle noted. 3. The distance of the boom tip to the water at the proposed lift angle from the boat or vessel will be verified and documented. 4. The size and weight per foot of the lifting wire rope, weight of the block, tackle and slings will be verified. 5. Using items 2, 3, and, 4 (above), the weight of the wire rope and the block when it is at water level, the determined weight will be added in total load weight. This total will be the lift weight. 6. The radius, boom angle and lifting capacity at the final load location will be verified. 7. A drawing of the lift including the facts stated above will be developed. 8. Determination whether or not a process shut in is needed. 9. When a lift boat is used, a vessel pre-load procedure will be obtained from the vessel operator and scrutinized by the Project Engineer. Using the information above, the Supervisor or Foreman will determine if the lift can be made with the given equipment. Identified Lift - Pre-Lift Information 1. To be documented and sent to Supervisor or Engineer in charge of job. 2. An object drawing will be made of the load to be lifted. 3. The center of gravity will be verified onshore by actual test (not estimated) and a drawing developed indicating such.

59 4. Boom angle and radius will be verified for the off load boat or platform position. 5. The radius and boom angle at the final load location will be verified. 6. A drawing of the lift including the facts stated above will be developed. 7. Determination whether or not a process shut in is needed. 8. Using the information above, the Supervisor, Project Engineer or Foreman will determine if the lift can be made with the given equipment Pre-Lift Activities Heavy-Lift - Pre-Lift Activities 1. The site crane will have an annual inspection and load test performed. 2. Any discrepancies found during the inspection will be corrected before the lift is made. 3. All rigging (slings, shackles etc.) will be inspected and be certified and tagged accordingly. 4. Slings with hooks will not be used for the lift; they must have thimbled eyes and shackles. 5. The crane block must have a lockable hook latch. 6. Radio Communication will be provided. They will be used by the crane operator, flagman on the boat and flagman on the platform. 7. The Project Engineer, Construction Coordinator, Field Consultant and Maintenance Coordinator or Foreman will hold a Pre-Job meeting. 8. The lift drawing will be reviewed and understood by all. If contract cranes are used the contractor will attend the Pre-Job meeting. Identified Lift - Pre-Lift Activities 1. The site crane will have an annual inspection and load test performed.

60 2. Any discrepancies found during the inspection will be corrected before the lift is made. 3. All rigging (slings, shackles etc.) will be inspected and be certified and tagged accordingly. 4. Special rigging will require a rigging diagram sent to the field. 5. Slings with hooks will not be used for the lift; they must have thimbled eyes and shackles. 6. The crane block must have a lockable hook latch. 7. Radio Communication will be provided. They will be used by the crane operator, flagman on the boat and flagman on the platform. 8. The Project Engineer, Construction Coordinator, Field Consultant and Maintenance Coordinator or Foreman will hold a Pre-Job meeting. 9. The lift drawing will be reviewed and understood by all. 10. If contract cranes are used the contractor will attend the Pre-Job meeting. Load Out Point (Dock) 1. The load out dock dispatcher or Foreman will be informed in writing of the weight and dimension of the lift. 2. The load will be spotted on the boat by direction of the job coordinator and Vessel Captain. 3. If slings or spreader bars are supplied by the vendor and are to go with the load to the location, they will be inspected and verified to match rigging drawing and be certified and tagged accordingly. 4. The load will be labeled specifying its weight at right angles on the load. 5. The load will have knot -less tag lines, 15 long minimum, affixed at right angles or each corner at the lowest point of the lift. 6. The dock foreman will assure that the Stone Energy Material Transfer contains all weights and dimensions of the equipment being sent to the location.

61 6.3.5 Making the Lift An API-RP-2D qualified operator will operate the crane to make the lift (must have crane card on person). 1. A Crane Operation Heavy/Identified Lift safety meeting/lift plan will be held and attended by all on location prior to the lift and will include the following. The lift drawing will be reviewed and understood by all. Each person s duties throughout the lift. Proper rigging of the load. Determine if platform shut-in is necessary. Pinch point identification on the deck of the boat and/or platform. Emphasis that no one will get under the load at any time. The path that the lifted object will take once it leaves the boat or platform to its landing position. Instructions to the boat Captain on what he will do once the load leaves or approaches the deck. Flagman positions on the platform to direct the load to its final position. Emphasize that all other personnel will be in constant sight of the Flagman and/or Crane Operator. All other operations in the affected areas on the platform will cease while the lift is being made. 2. The Crane Operator will perform and document a Monthly and Pre- Use inspection on the crane immediately before the lift is made. 3. The platform or system will be shut in if need be. 4. The riggers on the boat or platform will verify that slings, shackles and other attachments are tight, secure and free of obstruction.

62 5. The Crane Operator and Job Coordinator will have a final discussion on the lift and its safe accomplishment. 6. When all involved are satisfied and agree that the lift can be made without incident, the lift will be made. 7. As the lift is made, radio communications will be constantly used by the Crane Operator and Flagmen to assure everything is going as planned. 8. The lift will be aborted if any person identifies a potential hazard. 9. After the lift has been made the Job Consultant will contact the Project Engineer and confirm the lift is complete. All of the above activities concerning the lift, meetings, etc. will be documented on the Daily Construction Report and Vendor daily tickets. As the experience level of each individual is different, Stone Energy desires that each person involved with the lift(s), be interviewed as to their experience with Heavy and/or Identified lifts. The individual shall then be, if required, trained on the potential hazards for lack of awareness, and failure to follow instructions and Stone Energy and industry safety practices. Individuals not meeting the experience level required will be replaced with competent personnel. 6.4 Personnel Transfer A personnel basket will be used for all offshore transfers between a facility and a boat whenever the crane is used to make the transfer Only properly designed workbaskets shall be used as work platforms or workstations. Personnel baskets are not designed for this purpose and shall not be used as such Crane hooks used to lift personnel baskets will have a positive locking device (not a spring loaded flap or clip). Stinger should never be used to connect personnel basket to block All shackles incorporated in a Personnel Basket lifting configuration will be tight and wire locked Personnel lifts to and from a motor vessel shall be swung over water whenever possible.

63 6.4.6 All personnel being transferred over water must wear a USCG approved life preserver that is properly donned A maximum of four (4) personnel are permitted to ride in the personnel basket at a time Personnel riding on the personnel basket shall ride on the outside of the basket, facing inward, with their arms locked around the netting Personnel baskets will be equipped with tag lines free of knots and must be a minimum of 15 feet in length Cargo other than personal hand luggage and small supplies and equipment will not be transferred with the personnel basket. Cargo must not overhang the edge of the personnel basket All personnel baskets will have a safety "shock" load strap Cranes shall not be used to raise or lower personnel into or out of tanks or other production vessels. Only properly designed personnel hoisting equipment shall be used for this purpose Personnel are not allowed to ride on the following: any load, slings, cables, "headache" ball (connected to the whip line or fast line), nor the load block Only qualified "A" or "B" crane operators are allowed to transfer personnel. All other crane operators ("C" crane operators and maintenance personnel) whether Stone Energy or contractor, are prohibited from transferring personnel All personnel lifts shall be under power control both up and down. 6.5 Rigging Practices Personnel performing "Rigger" functions or activities shall meet the requirements of Section Sling angles will not be less than 30 degrees from the horizontal (or not more than 60 degrees from the vertical). See Appendix C for proper sling angle calculations NO "field fabricated" slings shall be used.

64 6.5.4 Knots or kinks are not permitted in wire rope or slings for any reason All wire slings will be certified and permanently tagged. Slings and wire rope must not be used if they have no certification tag, excessive amount of wear, damage, flat spots, broken wires, or visual lack of lubrication exist. All wire slings will be replaced or re-certified every 5 years or sooner, if any of the above conditions are present. All slings must be inspected preuse by the qualified personnel. All wire rope slings must be inspected annually by a certified 3 rd party inspector during the annual crane inspection. If any of the above conditions exist when the slings are inspected they must be replaced or sent in for inspection, testing, refurbishment and re-certification by qualified personnel. All slings that will be permanently placed out of service shall be destroyed and properly disposed of and slings that will be placed out of service temporarily (i.e. recertification process) will be properly tagged Out of Service. Stone Energy Corporation time requirements supersede the requirements of API RP 2D. The time allotment is Stone Energy Corporation s requirement. Wire slings which are pre-slung on vendor supplied equipment will be recertified or replaced on an annual basis Chains and fiber rope ("soft line") shall not be used in the place of wire rope slings to lift loads or personnel. Appropriately rated, certified nylon or synthetic webbed slings are acceptable for non-personnel lifts Wire rope and slings shall not contact any rough cut edges or holes such as pad eyes and shall be padded or properly protected to prevent damage from contact by sharp corners. Shackles must be used with all pad eyes Hook openings shall be turned outward on hook slings. (see Appendix C) Tag lines shall be used on all lifts. They shall be of sufficient length, diameter, and strength to allow adequate control of the load by the rigger(s) The free end of tag lines should not contain anything that is likely to become snagged during lifting operations (e.g., knots or weights) Tag lines should be connected to the lowest practical point and at right angles on the load whenever possible. If a tag line cannot be attached directly to the load, it must be attached to the shackle end of the sling as near the load as possible Slings and tag lines must be clear of all obstructions before the signal person and/or rigger divert their attention from the load.

65 At no time are load hooks or lines to be used underwater. If underwater operations are to be performed, the contractor shall furnish the proper submergible cable/equipment Wedge sockets shall be installed in accordance with API RP 2D (see Appendix C) Shackle information: There are two types of shackles commonly used in rigging. They are the anchor (bow type) shackle and chain ("D" type) shackle. The pin styles commonly used with shackles are screw pins, bolt pins, and loose pins. Shackles, like most other rigging hardware, are sized by the diameter of the steel in the bow section rather than the pin size. ONLY screw type pins are accepted on Stone Energy locations for rigging and lifting operations. ONLY domestic made Crosby or equivalent high strength alloy steel shackles are to be used in lifting operations (refer to Appendix C). ONLY properly fitted screw pins shall be used in shackles. Never replace the shackle pin with a bolt. Shackles should never be used if the distance between the eyes is greater than listed in Appendix C. All screw pins must be straight and completely seated in the shackle. Shackles worn in the crown or the pin by more than 10% of the original diameter shall be discarded. Shackles should never be attached where the load could possibly roll or unscrew the pin during the lifting process. Shackle specifications: (see Appendix C) Drum and Bottle Racks

66 6.6 Boats and Shorebases Drum and Bottle Racks used for transporting drums and pressure cylinders offshore will be designed to appropriately secure and safely transport drums and cylinders. Refer to Appendix G and H for design guidelines Stone Energy Cargo manifests shall be completed prior to transporting loads to and from offshore and shall include the weight of each piece of cargo Cargo manifests, showing both the loads and their weights (if over 5,000 pounds), shall be faxed from the shorebase to the affected offshore facility and communicated to the crane operator so that he/she may prepare for the lift(s) Boat personnel shall maintain radio communication with the crane operator on the platform at all times while lifts are being made to or from the boat Boat personnel should direct the placement of each load onto the deck of the boat, taking into consideration balance, actual and anticipated sea conditions, and subsequent load changes. However, the load placement location must not cause the crane operator to exceed the safe working limits of the crane (e.g., exceed safe boom angle). The crane operator shall plan the lifts with the boat crew prior to making the first lift Loads in excess of 5,000 pounds shall be clearly marked on both the load and the cargo manifest before placing the load on the boat. Where possible, the markings should be visible from the crane Boat lifts shall be made over the water whenever possible. Loads coming from boats shall be raised only high enough to clear the sides (gunwales) of the boat before swinging the load over the water. Loads made to a boat shall be lowered over the water until just before swinging the load over the gunwales. 7.0 INSPECTION AND MAINTENANCE 7.1 Operational Inspections and Maintenance Prior to starting the crane for the first lift of the day and at each operator shift change, the operator will perform a Pre-Use Inspection on the crane and the following will be included (corrections or repairs will be made before starting the crane and the inspection must be documented on the Stone Energy Crane Pre-Use Inspection Form).

67 Check the boom angle indicator. Check fuel level and fill if needed. Check engine oil level and fill if needed. Check hydraulic fluid levels and fill if needed. Move all controls to ensure freedom of movement/operations. Test horn, radio, and any other communication equipment (e.g., Gaitronics) for proper operation. Check emergency shutdown device(s) for proper position. Visually inspect boom, boom components, and boom appendages for damage Prior to making the first lift, each crane operator shall inspect the crane for the following items (corrections or repairs should be made prior to making the first lift): If the crane is mechanical, check protection sheet metal covers over boom hoists, operating clutches, and brakes to ensure that they are closed/shut and secured. All personnel lifts with a mechanical crane are to be made under power control both up and down. Boom up and down to verify proper boom hoist operation and function of boom angle indicator. Verify that load line or fast line hook safety latches are in good working order. Verify proper function of swing capability. Inspect rigging equipment that will be used for impending lifts to verify condition and the presence of tags where appropriate. Consult cargo manifest to identify weight of the load. Test horn, radio, and any other communication equipment (e.g., Gaitronics) for proper operation. Check emergency shutdown device(s) for proper position. Visually inspect boom, boom components, and boom appendages for damage. Verify that weather and sea conditions will permit crane operations. 7.2 Mechanical (Preventive) Inspections and Maintenance Cranes will be kept clean, lubricated and free of rust. Corrosion, not mechanical failure, often results in major component change; there is no excuse for this occurrence. The new API standards set inspection intervals according to the number of hours the crane is operated. All cranes will be inspected monthly by a qualified (Class A or B) crane operator regardless of usage category. The crane will be started, boomed up and down, swung 360, hoists operated and safety devices tested. This task performance will help keep

68 critical components from sticking and/or freezing up. All Monthly inspections will be documented on the Stone Energy Monthly Crane Inspection form. All deficiencies noted shall be repaired immediately. Maintenance procedures are spelled out clearly for each inspection interval within the inspection guidelines. The operator, mechanic and inspector are each responsible for certain tasks. Each person will carry out his or her duties as prescribed. Running ropes will be changed every three years or sooner depending upon condition indicated by inspection. Pendant lines will be changed every five years or sooner depending upon condition indicated by inspection. Slings will be replaced every five years or sooner depending upon condition indicated by inspection. All slings must be inspected pre-use by the qualified personnel. All wire rope slings must be inspected by a 3 rd party certified inspector on an annual basis during the annual crane inspection. All crane cables will be kept lubricated, preferably with Esguard cable lubricant. Slings will be kept lubricated with lightweight oil preferably organic. Vendors slings on pre-slung equipment will be re-certified or replaced on an annual basis as per Stone Energy Corporation policy. All winches will be changed every three years. Repairs will be done by qualified individuals and recorded in the crane maintenance file. In no case will welding be done on a crane without approval from the Foreman or Project Engineer. Stone Energy contract field mechanics may perform certain maintenance task on a crane. The extent of which the maintenance will be performed will be dictated by the mechanics experience, training and familiarity with the machine. Examples of such maintenance are: Engine Preventive Maintenance and Repair Lubrication of components Qualified Third Party Crane Service Technicians shall be called out for the following: Quarterly Inspections Annual Inspections Hydraulic System Repairs / Changes (i.e. filter changes, hose changes, control valve linkage repair) Boom section replacement including heel pins Winch and Wire Rope Replacements Pedestal bearing repair Control valve service

69 7.2.1 Mechanical (preventative) inspections and maintenance shall be performed in accordance with API documents RP 2D and Spec 2C and manufacturers recommendations NO welding repairs shall be made to critical components of the crane (i.e., booms, hooks, blocks, shackles, or swing assemblies) without specific repair procedures and recommendations from the unit manufacturer and the approval of the Maintenance Coordinator or Foreman, Production Foreman and the Area Production Engineer. 7.3 Required Inspections Inspections will occur according to usage hours based on a three-month average with the exception of Monthly inspections which will be conducted on all cranes regardless of usage category. (API RP-2D 4.1.1) Usage hours are defined as actual operating hours or stick time. Usage hours do not include engine idle time. The usage ratings, rating hours and required inspections are as follows: (based on 3 month average) Category Usage Inspection Type Infrequent 10 hours Pre-Use, Monthly, Annual or less Moderate 50 hours Pre-Use, Monthly, Quarterly, Annual or less Heavy 50 or more hours Pre-Use, Monthly, Quarterly, Annual In addition to the requirements of API RP 2D, all cranes, regardless of usage level, will be given Pre-Use and Monthly inspections by the qualified crane operator. Pre- Use inspections will be performed before daily usage and more frequently if the crane is used on a continuous basis or if deemed necessary by the qualified operator. Daily means a 24-hour period beginning at 12:00a.m. of one day and ending at 12:01a.m. the next day. Pre-Use inspections will also be performed at each operator shift change. Pre-use inspections will be documented on the Stone Energy Crane Pre-use Inspection Form. Monthly inspections will be performed by a qualified crane operator (Class A or B) once per Calendar Month and must be documented on the Stone Energy Monthly Crane Inspection Form.

70 Special attention will be given to noted discrepancies with communication to the Foreman and/or Mechanic on duty upon discovery. Pre-Use inspection forms will also be used to record operating hours (actual usage not engine idle time). Inspectors for Initial, Annual and Quarterly inspections will be provided by a Third Party Crane Service Company and the Inspector/mechanic must be Qualified as stated in API RP-2D 2.2. Qualified crane operators (API RP-2D 2.1 and 4.1.2) will perform Pre -Use and Monthly inspections. Inspectors will complete the Stone Energy crane inspection forms in addition to their own inspection forms. A Stone Energy or Contract Supervisor s signature must be on all inspection forms. This signature denotes acceptance of the inspection, forms are filled out correctly and assures discrepancies are being resolved (parts are on order). 7.4 Deficiencies Deficiencies are defined as conditions that in any way compromise the proper performance and/or safe operation of the crane. Upon inspection, minor deficiencies will be recorded and repaired on the spot or within a short time period (2 weeks). A Crane will be tagged Out of Service at the operator controls if a major deficiency cannot be corrected immediately. Notify Foreman immediately if a crane is tagged Out of Service or is de-rated upon inspection. If a crane is de-rated a new temporary load chart must be obtained and posted in the cab and a record of it kept on file. There must also be a sign posted at the operator s station stating, This Crane is De-Rated % during the period of this status. 7.5 Records Records of inspections, maintenance, load tests, operational tests and sling and cable certifications will be kept in a single file folder on the platform where the crane resides, if physically possible, for 4 years (Required by BOEMRE). Current Pre-Use inspections can be kept on/in the crane or about the crane (out of the weather) or in the platform office. (API RP2D k.1.o). Aged pre-use inspections will be kept in the crane file. Work Orders will be initiated for any and all work performed. A list of current qualified crane operators will be kept on the main facility.

71 A sling inventory will be performed once a month verifying tags or other identification on the slings, and that related certification documents are filed on location. A running rope record and associated certification documents will be kept for each crane in its respective crane file. 8.0 CRANE OPERATOR QUALIFICATIONS 8.1 Physical Requirements Anyone operating the crane for the purpose of making lifts must meet the following physical requirements as per API RP 2D and must be re-evaluated every four years and as physical conditions change. If cranes will be operated by contract personnel, the contractor s employer will be responsible for verifying the following physical requirements are met during the crane operator qualification process. Have vision of at least 20/30 Snellen in one eye and 20/50 in the other with or without glasses and have depth perception. Be able to distinguish red, green and yellow, regardless of position of colors, if color differentiation is required. Have adequate hearing. Have no history of a heart condition, epilepsy, dizziness, fainting spells, nervous disorders, or any other disabling medical condition that may interfere with the safe operation of a crane. Exceptions to this statement will be considered on a case-by-case basis, with a physician's approval, and with the review and approval of the Senior Production Foreman and HSE Director All personnel operating a crane for the purpose of making lifts must notify their immediate supervisor whenever their physical condition changes in a way that could interfere with their ability to safely operate the crane. 8.2 Training Requirements Crane operators must attend and pass a training course based on the requirements contained in API RP 2D before they can be issued an initial Qualification card. Appropriate refresher training will be conducted at a minimum of every (4) years. If cranes will be operated by contract personnel, the contractor s employer will be responsible for verifying the following training

72 requirements and other criteria are met during the crane operator qualification process. Additionally, the following topics will be included in the training course: Stone Energy s Crane Operation and Maintenance Program. Rigger training as outlined in API RP2D. A written test which attendees must pass in order to obtain crane operator qualification and rigger qualification. 8.3 Crane Operator Qualifications / Classifications There are three levels of crane operator Qualifications: Class A - Advanced Crane Operator Class B Limited Crane Operator Class C - Trainee Operator Levels Advanced Crane Operator Crane Operator Required Experience Schools required 1 Day 3 years Minimum 1 Day 1 year Minimum Crane Operator Classification Table Type of Certificate Class A Class B Operating Limitations No limitations except those imposed by the weather. May not lift over 75% of the rated crane capacity. Trainee 1 - Day None Class C Must be under direct supervision of a Class A or B Crane Operator. May not lift more than 50% of the rated crane capacity. May not lift personnel Initial Qualification approval consists of up to four components: Adequate medical status as per API RP 2D. Classroom course as per API RP 2D. Hands-on evaluation of operating proficiency by the instructor of an approved training facility.

73 Production Foreman's recommendation. Qualification Requirements Table Operator Levels Attend Classroom Course Adequate Medical Status Hands-On Evaluation Foreman Recommendation Trainee Class C Crane Operator Class B Advanced Crane Operator Class A Yes Yes No Yes Yes Yes Yes Yes Yes Yes Yes Yes a) Adequate medical status means being physically and medically capable of safely operating a crane as per API RP 2D. Specific requirements are listed in Section 8.1. b) Classroom requirements are listed in Section 8.2. c) A hands-on evaluation of each candidate's operating proficiency will be conducted by the instructor. This evaluation will consist of the following: The pre-use inspection detailed in Section The pre-lift inspection detailed in Section Performing several deck lifts (to include at least one "blind" lift using hand signals only). Making both fast line and load line lifts to and from a boat (the load line lift will simulate a heavy lift operation). Performing swing exercises (show competency in starting and stopping sideto-side, front-to back, and circular swings on command). Securing operations (placing the boom in the cradle, setting appropriate controls, and turning off the crane). d) The Production Foremen's recommendation allows for input from the field personnel Qualification procedures:

74 a) For Trainees, the Supervisor of the platform should inform the Field Foreman that they have a person who needs to begin training. If the trainee meets all physical requirements, with the Foreman's approval, he/she may begin the training process after attending a crane operator training class based on the requirements of API RP 2D latest edition. b) For Crane Operators (Class B) and Advanced Crane Operators (Class A), the qualification process is similar to that for a trainee but with two additional steps: the candidate will be scheduled for the next available crane school as well as for a hands-on evaluation of the candidate's operating proficiency (see Section ). Crane schools will be conducted by only Stone Energy approved third party crane training companies/organizations. Classification Level Upgrade Table Requirement Trainee to Crane Operator Crane Operator to Advanced Crane Operator Meet all physical Yes Yes requirements? Attend (and pass) crane Yes Yes school? Have hands-on operating proficiency evaluated? Yes Yes Obtain Foreman's approval? Yes Yes c) The Qualification process for upgrading a person s classification should start by notifying the Field Foreman and the candidate must meet all physical requirements. If the candidate is a trainee, a school and hands-on evaluation will be scheduled. If a Crane Operator is being upgraded to Advanced Crane Operator, additional training and evaluation is also required Refreshers are required every four years. They shall consist of the following: Competency verification through attending and passing a classroom training course. Meeting all physical requirements. Obtaining the employee's Foreman's recommendation Qualification rescission will be based upon the following:

75 A change in a crane operator's physical condition which results in the inability to perform in accordance with this policy. Poor crane operation/performance. Upon request by the employee or contractor. Upon request by the employee's or contractor s Foreman. Upon qualification rescission, the employee's or contractor s crane qualification document and/or card must be returned to the Production Foreman. 9.0 RIGGER QUALIFICATIONS 9.1 Physical Requirements Anyone serving as a "Rigger" for purposes of attaching loads prior to making lifts with cranes on Stone Energy premises must have adequate physical capabilities (e.g., vision, hearing, etc.) to safely execute those duties expected of him/her. 9.2 Training Requirements All "Riggers" (whether Stone Energy or contractor) must have knowledge of the basics of safely rigging loads through an approved API RP2D structured rigging school and experience. This training should be equivalent to the rigger orientation required of certified crane operators in Section Load rigging practices must follow all API recommendations and standard industry procedures Anyone serving as a "Rigger" shall have attended an approved API RP2D structured rigging school and read and be familiar with Section 6.3. This shall include riggers on board crew boats or supply boats where loads from platform cranes are being rigged for loading and unloading OVERHEAD/PORTABLE HOIST OPERATING PRACTICES, PROCEDURES, AND REQUIREMENTS 10.1 Hoisting Equipment This section applies to all overhead/portable hoists including those operated by hand, by electricity, or by pneumatics. All operations, including maintenance operations, shall be performed in a safe manner. At a minimum, this shall include the following:

76 The hoist operator shall inspect the immediate area, hoist, associated rigging, and the load prior to making a lift. Deficiencies that could jeopardize the lift shall be corrected prior to making the lift No part of the hoisting system shall be overloaded. This includes the beam upon which the hoist rides, the hoist itself, the lifting chain and hook, and any slings or shackles associated with the lift All personnel must be clear of the load before it is lifted Lifts may not travel over personnel Upon lifting, the load hook shall be positioned directly over the load prior to making the lift The hook must have a properly functioning safety latch Proper personal protective equipment (PPE) must be worn during all hoisting operations Rigging Practices Rigging equipment must be appropriate for the job Shackles must conform to the requirements listed under Section of this policy Slings must conform to the requirements listed under Section 6.3 of this policy Chains will be used with hooks and hooks will be locked with latches or wire to prevent loosening Hoist Inspection and Maintenance The load chain and hook shall be inspected daily or prior to each use, if used infrequently. The inspection should identify problems that could adversely affect the lifting operation The hoist brake should be checked at the start of each lift by hoisting the load a few inches and watching to see if the brake holds. If the load does not drift downward, the lift may be continued. If the load does drift downward, the brake must be repaired before continuing the lifting operation.

77 All parts of the pneumatic system should be checked for leakage prior to making the lift The lifting controls should be checked for smooth and proper operation. This applies to the hand chain on manually operated hoists as well as the controls on electrically or pneumatically operated hoists CONTRACT/RENTAL CRANES This section applies to all cranes provided to Stone Energy on a contract basis. This includes lift-boat cranes and portable rental cranes (excluding derrick barges) Jack-Up Boats All cranes on board jack-up boats that are contracted to Stone Energy will be required to follow the inspection, maintenance and operating requirements of API RP 2D (latest edition) Rental Cranes Due to the reassembly nature of rental cranes, an annual inspection and load test should be conducted by a qualified inspector at each new crane setup Load test should consist of a dynometer pull in each quadrant of lift to ensure safety of crane and its foundation. APPENDIX A FIELD SUMMARY OBJECTIVE

78 The Crane Operation and Maintenance Program contain detailed guidelines deemed necessary to ensure safe crane operations at Stone Energy facilities. This policy applies to all Stone Energy and third party cranes used in conjunction with all Stone Energy operations whether the cranes are operated by Stone Energy personnel or contractors. The details of this policy must be familiar to, and complied with, by all contractors, foremen, crane operators and maintenance personnel working on cranes. Failure to comply with all the provisions herein may result in disciplinary action for those parties involved. PROCEDURES All crane operations on Stone Energy operated facilities shall be conducted in accordance with the latest editions of the most appropriate API Recommended Practices 2D. See Section 4.0. A. Equipment (including slings and shackles) shall not be overloaded or used in an unsafe manner. All necessary maintenance and inspection precautions as specified in the above referenced documents shall be adhered to. See Section 6.0 and 7.0. B. Crane Operators shall meet the minimum specified physical requirements and have passed the required qualification tests after attending the mandatory training course(s). See Sections 5.0 and 8.0. C. Rigging operations must conform to the standard industry safe practices (as contained in Section 6.3) and be performed by personnel that meet the minimum requirements of Section 9.0. D. Cargo exceeding 5,000 pounds shall be clearly marked on both the load and the cargo manifest prior to placing the load on any boat. Manifests shall be faxed to/from the shorebase and affected facility before the load is sent onward. See Section 6.6. E. Overhead/Portable Hoists shall be operated and maintained in accordance with the provisions of Section All operators of overhead/portable hoists must read and understand this policy prior to the operation of an overhead/portable hoist. APPENDIX B CRANE TERMINOLOGY 1 CRANE BOOM 2 BOOMHEAD SHEAVE ASSEMBLY

79 3 JIB 4 FLOATING HARNESS OR BRIDLE 5 GANTRY OR A-FRAME 6 REVOLVING SUPERSTRUCTURE 7 SWING CIRCLE OR ROLLER PATH 8 BOOM FOOT PIN 9 JIB MAST 10 BOOM SPLICE BOLTS OR CONNECTORS (TYPICAL) 11 FOUNDATION BOLTS OR FASTENINGS 12 CRANE BASE OR PEDESTAL 13 JIB FRONT STAY LINES 14 PENDANTS, GUYS, OR BOOM BACKSTAYS 15 DERRICKING, OR RUNNING BOOM HOIST ROPE 16 JIB BACKSTAY LINES 17 JIB OR AUXILIARY HOIST LINES 18 JIB OR WHIPLINE HOOK 19 MAIN HOIST LINE 20 MAIN LIFT HOOK BLOCK 21 LIFTING TACKLE OR SLING APPENDIX C

80 APPENDIX C - Continued

81 APPENDIX C Continued

82 APPENDIX C - Continued

83 APPENDIX C Continued

84 APPENDIX C Continued