BILL BARRETT CORPORATION

Transcription

1 BILL BARRETT CORPORATION CONTRACTOR ENVIRONMENTAL, HEALTH & SAFETY MANUAL Revision Date: 10/07/16

2 CORPORATE HEALTH AND SAFETY POLICY The safety and wellbeing of our employees and contractors is paramount and at the core of our operations. Bill Barrett Corporation s (BBC) position is that all accidents and injuries are preventable. BBC has the obligation to provide a safe workplace and each person working on BBC locations has a vital responsibility to contribute to working safely. Through such joint efforts, an accident and injury free work environment can be achieved. We believe it is in the best interest of all to protect the health and safety of our employees and contractors. In keeping with this philosophy BBC will: Provide safe and healthy working conditions for all individuals in the work place. This includes tools, equipment, and materials free of recognized and preventable hazards. Safety procedures will not to be compromised to achieve other goals. Design, construct, operate and maintain our facilities in accordance with all applicable standards, laws, and established safety practices. Recognize that an effective safety program extends beyond normal working hours. BBC will provide effective on-the-job safety and health management, and will encourage safety in employees, contractors and their family s off-the-job activities. Maintain safety rules and procedures with firm and fair enforcement and effectively communicate these expectations to all who work on BBC locations. Provide necessary supervisory and employee training so that each person can acquire the knowledge, skills, and attitude needed to perform their work in a safe and responsible manner. Promote good health and safety attitudes by enlisting the support of all employees and contractors through communication and appropriate recognition of superior safety performances. Achieve leadership in accident prevention and health protection by constantly improving safety performance with the objective of eliminating accidents and exposure to hazards. Scot Woodall Chief Executive Officer

3 Table of Contents Section A Introduction & Purpose 4 How to Use this Manual Purpose Section B Responsibilities.5 BBC Employee Responsibilities Contractor Responsibilities Stop Work Authority Section C Workplace Behavior Polices...6 Professional Conduct Contraband: Drugs, Alcohol & Weapons Housekeeping Smoking Language Requirements Vehicle Operations Cell Phone Policy Field Visits Section D Emergency Procedures 7 Evacuation First Aid/CPR Incident Reporting Incident Analysis Section E Safety Communication.8 Pre-Job Safety Meeting Job Safety Analysis Tail Gate Safety Meetings Section F Personal Protective Equipment (PPE).9 General PPE guidelines Head Protection Face & Eye Protection Hearing Protection Foot Protection Hand Protection Flame Resistant Clothing Respiratory Protection Fall Protection Section G Occupational Health...10 Fit for Duty

4 Hazard Communication Benzene Hydrogen Sulfide (H2S) Heat Stress/Cold Stress Section H Safety Operations 11 Manual Lifting Equipment Hand & Power Tools Ladders Section I Specialty Operations 12 Electrical Safety Scaffolding Section J Drilling.12 Section K Well Servicing..12 Section L Safe Work Practices 12 Isolation of Hazardous Energy (LOTO) Working from Heights Hot Work Confined Space Trenching & Excavation Safety APPENDICES Appendix A Reporting Guidelines Appendix B Environmental Brochure

5 Section A Introduction & Purpose How to Use this Manual This manual is intended to be a guide for Bill Barrett Corporation (BBC) contractors performing work on all BBC locations. While all BBC contractors maintain their independent responsibility for ensuring safe operations, BBC expects its contractors to comply with all BBC policies and procedures as well as all applicable state and federal regulations. Each contractor is required to review and acknowledge receipt of this document. Each contractor should review this manual annually and review regularly with any employees performing work on BBC locations. If any policy or procedure is not clearly understood, or conflicts with a contractor s independent judgment, please contact a BBC Health and Safety Representative. Purpose BBC employs a diverse group of contractors who provide specific labor or service functions necessary to operate our assets. While diverse in nature, all contractors have a common need for effective safety programs to protect their employees, BBC employees, other contractors, and the community from injury and illness or other losses associated with incidents arising from contractors work. The purpose of BBC s Contractor H&S Program is to ensure that contractors and their subcontractor(s) understand health and safety requirements as they apply to the general scope of the contractor s work. The Contractor H&S Program provides BBC with methods to monitor and improve contractor safety performance and regulatory compliance, while maintaining the independent contractor relationship. Benefits that result from improved contractor safety include: Sending every employee, contractor, subcontractor, vendor and visitor on BBC location home safely. Increased safety and wellbeing of contractor and Company employees. Decreased Company and contractor exposure to litigation and regulatory action. Improved productivity and quality. Minimizing the potential for damage to Company facilities and contractor equipment. The requirements of BBC Contractor H&S Program apply to all field service contractors including, but not limited to, those who perform on-site services related to the drilling, completion, and production of oil and gas wells and the construction, operation, and maintenance of related tank batteries and pipeline facilities. Since the functions performed by contractors are diverse, program requirements may vary from one contractor to another, depending on the scope of their work. Therefore, it is the contractor s responsibility to evaluate the specific job hazards and the health and safety requirements associated with these activities.

6 Section B Roles and Responsibilities BBC Responsibilities Prior to employing a new contractor, BBC will obtain and evaluate information regarding that contractor s EH&S performance and programs. BBC does this by requiring that all of our service companies be registered with ISNetworld. Only those contractors meeting BBC s minimum criteria in ISNetworld will be considered for employment by BBC. Throughout the BBC/contractor relationship, BBC will continually evaluate the health, and safety programs and performance of existing contractors and, when appropriate, will assist contractors in the implementation of environmental, health, and safety programs that address mutual EH&S issues. Throughout the duration of the BBC/contractor relationship BBC will: Continually monitor the contractor's work activity. Require contractors use a system of work permits for potentially hazardous activities. Collect, review, and maintain documentation pertaining to adverse safety incidents, injuries, near misses, etc., and take appropriate action to prevent such incidents from occurring in the future. Inspect and advise contractors on BBC s H&S requirements. Periodically review contractor's EH&S information to determine eligibility to remain on BBC's Approved Contractor List. BBC will utilize information provided by the contractor to ISNetworld for this purpose. Maintain contractor H&S data and performance history. Because tasks performed by BBC contractors vary and many require skills and expertise that are not typically found within the BBC workforce, BBC must rely on the expertise of its contractors to perform in a manner that is protective of the environment and health and safety of their employees, subcontractors, and the community. In order to ensure that BBC resources and assets are adequately protected from the actions of contractors and subcontractors, contractors and subcontractors shall be evaluated by BBC on their performance and work practices relating to environmental, health and safety (EH&S) issues. To verify compliance, contractors may be subject to a detailed safety audit at any time during the term of the working relationship with BBC. Contractor Responsibilities As a condition of doing business with BBC, all contractors are expected to develop and maintain health and safety programs that adequately address the scope and associated hazards of the contractor s work, and to take the steps necessary to establish, administer, and enforce H&S rules that comply with applicable local, state and federal regulatory requirements, as well as BBC safety procedures and policies. The means of ensuring that their employees and subcontractors comply with all requirements of the contractor s and BBC safety programs shall be the sole responsibility of the contractor. Contractor Responsibilities include: Compliance with federal, state, and local H&S regulations, as well as the conditions and requirements of BBC's Contractor H&S Program.

7 Promptly notifying BBC of any observed site hazards or adverse H&S condition. Cooperating with BBC to resolve issues that may arise. Establishing, publishing, and distributing safety policies and procedures to employees. Designating personnel to monitor and carry out H&S program requirements. Establishing and maintaining employee H&S training programs. Conducting and documenting regularly scheduled "general" H&S and job-site/job specific "Tail Gate" meetings prior to beginning work each day. Immediately reporting any injury or adverse safety incident to BBC and appropriate regulatory agencies as required. Maintaining complete and accurate records of all injuries/incidents as required by law and provide records to BBC upon request. Investigating all incidents. Incidents that result in serious injury or property damage as well as all near misses will have a full report and root-cause analysis (RCA) conducted. Contractors will provide BBC with written reports based upon the results of the investigation. Immediately notifying BBC of any regulatory agency audit or notice of non-compliance. Promptly correcting any non-compliance issue when notified by an agency or BBC. Ensuring that all contractor personnel have and use the proper personal protective equipment while on the job. BBC is not responsible for supplying personal protective equipment to contractor personnel. It is solely the contractor s responsibility to ensure that its employees are adequately trained. As previously stated, BBC may audit contractors to ensure that contractor employees are receiving appropriate and adequate training. Stop Work Authority (SWA): All contractors and BBC employees are authorized to stop work on any BBC location when a hazardous condition or behavior is recognized. Any contractor may stop work for any safetyrelated reason without fear of repercussion. Section C Workplace Behavior Policies The following policies and procedures are BBC minimum H&S requirements that must be met by all contractors and their subcontractors. As previously stated, contractors are expected to develop and maintain health and safety programs that adequately address the scope of the contractor s work, and to take the steps necessary to establish, administer and enforce rules that comply with (or exceed) applicable local, state, and federal regulatory requirements, as well as BBC safety policies and procedures. All contractor personnel, vehicles, and belongings are subject to search and inspection at BBC's sole discretion. All persons working on a BBC location will act in a professional manner. No form of harassment, horseplay or fighting will be tolerated while on BBC locations.

8 Prescribed intoxicants, narcotics, or illicit drugs shall not be consumed or possessed while working on a BBC location. Any contractor employee under the influence of intoxicants, narcotics, or illicit drugs while at work will be removed from the work location immediately. Any prescription that medication that causes an intoxicating effect shall not be consumed prior to working at a BBC location. Persons under the influence of a prescription that causes an intoxicating effect will not be allowed to work on BBC locations. Firearms/weapons or explosives of any kind are prohibited on BBC property, including the possession of a firearm in a vehicle or other equipment. It shall be the contractor's responsibility to practice good housekeeping to the fullest extent possible. This will include, but not be limited to: The disposal of trash; Keeping materials and supplies orderly, appropriately labeled, and stored safely; and Keeping equipment and material from obstructing roads and walkways. Smoking on BBC property is prohibited except in designated areas. Contractor employees should consult the BBC project supervisor to determine where smoking is allowed. All smoking locations will be designated by BBC personal. A disposal canister and fire extinguisher shall be placed in all designated areas. All workers must be able to read or understand the posted warning signs while working at a BBC location. A translator will be assigned by the contractor for any employee who is not able to read English written signage. Contractor personnel shall operate vehicles in a responsible and safe manner anytime they are on BBC's property. Contractor personnel shall have a current and valid driver's license and comply with all applicable local and/or State laws governing motor vehicle use. All cell phone use must be in compliance with state and local laws. Cell phone use while driving on a BBC location is limited to hands-free operation. Field visits by non-employed personnel of contractors or subcontractors are strictly prohibited. No person shall be allowed on BBC locations without the express written approval of BBC management. Section D Emergency Procedures Evacuation The contractor shall be responsible for complying with (or establishing, if necessary) an emergency evacuation plan prior to starting the project. All contractor employees will have a full understanding of the various emergency response scenarios and what the most appropriate response will be to a given emergency. The contractor is responsible for communicating the emergency evacuation plan to its employees and for ensuring that all contractor employees follow the plan in the event of an evacuation.

9 First Aid/CPR At least one employee adequately trained to render first aid shall be on all BBC worksites at all times. All contractor work locations shall be equipped with a minimum of one first aid kit. Incident Reporting The contractor shall promptly report to the BBC project supervisor any incidents and occupational injuries or illnesses involving contractor employees. The On-The-Job Injury or Accident Report (or equivalent) shall be completed and forwarded to the BBC project supervisor within 24 hours. A copy of the On-The-Job Injury or Accident Report is provided in Appendix B of this manual. Incident Analysis The contractor shall analyze all incidents involving contractor employees that result in an OSHA recordable injury, spill/release to the environment, fire/explosion, or motor vehicle accident (MVI) with complete report and root cause analysis. Incidents with property damage in excess of $500 shall also be investigated with a root cause analysis. Property damage of BBC property or public/private property while working on BBC locations will be fully investigated with a root cause analysis. The initial investigation will be documented and a copy will be forwarded to the BBC project supervisor and the EHS department within 24 hours of the accident. Upon request, the contractor shall furnish BBC with copies of all applicable workers compensation first report of injury forms and their revised OSHA 300 log. The contractor shall complete all post-accident drug and alcohol tests for all accidents or injuries that meet the criteria defined in DOT 49 CFR, Parts 40 and 199 or the requirements of the contractor s testing policy. Final investigation reports shall be due to BBC s EHS department no later than 7 days after the incident unless extended via written approval from a BBC representative. Final Incident Reports shall consist of, but not be limited to: 1. Root Cause Analysis (RCA)/5 Why 2. Witness statement(s) of events 3. Photographs 4. Any requested documentation on worker s compensation report, medical reports 5. Post Incident drug screening verification 6. Corrective actions including responsible parties and target completion dates Section E Safety Communication All contractors shall conduct a health and safety meeting prior to beginning each job. Meeting should review job steps, hazards (both actual and possible), and mitigations to hazards. If job scope or site conditions change contractor management will hold an additional meeting to discuss job scope and associated hazards. Meetings should include, but not be limited to: 1. Job planning 2. Job assignments 3. Specific workplace hazards 4. Mitigations to recognized hazards 5. Completion of written job safety analysis (JSA)

10 Each contractor crew working on BBC locations shall have a written JSA for daily work. Daily JSA should recognize all job tasks, hazards and mitigations for work being performed. As job scope changes, contractors are required to update daily JSA and communicate new job tasks, hazards and mitigations to crews. Daily Tail-gate safety meetings shall occur at the beginning of each work shift to discuss job scope, personnel assignment, and JSA. All contractor personnel working on BBC locations shall review, understand and sign the contractor s JSA. Any visitor or other affected work groups shall be made aware of hazards on JSA. Section F Personal Protective Equipment (PPE) General PPE The contractor shall be responsible for assessing the hazards present before any work begins, requiring its employees to use appropriate PPE, and strictly enforcing its use. Contractors and their subcontractors are required to provide, wear, and use PPE consistent with any site-specific BBC PPE requirements. Contract personnel shall dress appropriately for the intended work. This includes wearing full-length pants and sleeved shirts. Loose-fitting or baggy clothing shall not be worn in areas where it could be caught in moving equipment. Cotton or natural fiber clothing is suggested. The following are not allowed: Shorts Sleeveless shirts Tank tops and/or wearing no shirt at all Open toed shoes or sandals In addition to specific task-related safety equipment, all BBC projects will require the use of the following general safety equipment items at a minimum: Hard hats that meet ANSI Z89.1 Safety glasses that meet ANSI Z87.1 and stamped accordingly Hearing protection specific to work type Gloves specific to work type Hard-toed protective footwear that meets ANSI Z41 Flame retardant clothing (FRC) Any contractor, subcontractor or visitor on location without appropriate PPE will be asked to leave BBC locations until they can obtain the appropriate PPE needed to perform their job function. The contractor shall ensure all personnel are familiar with the provided safety equipment and its limitations, use, and how it is to be inspected. The contractor is responsible for making sure that all protective equipment is inspected, well maintained, and in working condition at all times. Flame Retardant Clothing Flame retardant clothing is mandatory for all contractor employees who work at operational BBC production facilities, pipelines or compressor stations. All contractors must provide their own

11 FRCs. The FRC must be the outer layer of clothing and must cover the full length of the arms, torso, and legs. Short-sleeve shirts and plain denim jeans are not allowed. Respiratory Protection Contractors involved in work that requires respiratory protection shall have a written respiratory protection program that conforms to the requirements contained in OSHA 29 CFR A written copy of the program shall be furnished to BBC upon request. The contractor is responsible for providing their own respiratory protection equipment, including any spare parts that may be necessary during the procedure. Documentation of employee qualification training records, medical exams, and fit tests shall be made available to BBC upon request. Fall Protection All employees working from heights as defined by OSHA will follow all guidelines for working safely. Employee must be trained in the safe use and inspection of fall protection equipment prior to use. All contractors and subcontractors will wear fall protection when working above 6. When working at 4 to 6, contract personnel will only work in areas protected by guardrails. Any area not protected in accordance with OSHA requirements must be reported to the BBC supervising employee immediately. Section G Occupational Health Fit for Duty All contractors are responsible for verifying personnel and subcontractors are Fit for Duty. To meet this policy, contractors will be held accountable for enforcing both contractor and BBC safety programs. Contractors will be required to verify that all personnel are physically capable of performing job assignments. Hazard Communication The contractor is responsible for establishing a Hazard Communication Program in accordance with the requirements of 29 CFR Employee training documentation must be provided to BBC upon request. In addition, the contractor must: Maintain an inventory and Material Safety Data Sheets (MSDS) or Safety Data Sheets (SDS) for all hazardous chemicals used or stored on site. BBC maintains copies of MSDS / SDS for all hazardous chemicals at each facility or in the District office. Contractors may request MSDSs from the BBC project supervisor or from the BBC s EHS Department. Identify chemical hazards, communicate chemical hazard information to its employees, and ensure that all recommended and appropriate precautions, including PPE usage, are taken when working with hazardous chemicals. Label all contractor-owned chemical containers as to their content and hazards. Labeling shall comply with the requirements of OSHA 29 CFR Not remove, alter, or deface and BBC labels. Notify BBC EHS Department when bringing new chemicals onto a BBC location. Have employees trained to meets OSHA Globally Harmonized Systems (GHS) requirement

12 Benzene Benzene is a liquid found in most crude oil and condensate. Benzene can also be found in produced gas in a gaseous form. Benzene is a known carcinogen. All contractors working with or near crude oil, condensate or liquid gas should have benzene awareness training program in place. Good housekeeping measures should always be followed when working around known sources of benzene. If contractor personnel or subcontractors believe that they have been exposed to benzene, contractors shall notify a BBC representative immediately. Hydrogen Sulfide (H2S) All contract personnel working in a hydrogen sulfide environment must have certificates to verify they have been properly trained and are proficient in the use of emergency air packs or site evacuation procedures. The contractor shall submit such certificates to BBC upon request. Contractors certified to use air-purifying or supplied air respirators are required to follow accepted rules, regulations and practices governing respirator and SCBA use. It is the contractor s responsibility to have an adequate number of SCBAs on hand in case they are needed. Documentation of medical monitoring, fit testing, and training for all affected employees must be made available to BBC upon request. Cold Stress/Heat Stress Due to the extreme temperature changes in most areas where BBC operates, heat/cold stress should be recognized by contractors and subcontractors. Contractors are responsible for ensuring appropriate training and monitoring of heat and cold stress is provided to all employees and subcontractors. In locations of severe heat and cold plans should be implemented and followed. Heat/Cold Stress Plans should include, but not be limited to: 1. Personnel acclimations 2. Work duration 3. Scheduled breaks 4. Signs/Symptoms of Heat/Cold Stress 5. First Aid measures Section H Safety Operations Manual Lifting No person shall lift over 50 lbs. without assistance. Before lifting, determine if the load can be moved by mechanical means. If the load will block vision, carry with assistance. If your walking path is not free of obstructions, clear path before moving any item. Equipment All equipment will be maintained in accordance to manufacturer recommendation. Only persons trained in the specific operations of the equipment being utilized are authorized to do so. Each contractor utilizing mobile equipment on BBC location must have a training program with test on file and maintenance program with logs.

13 At no point shall any contractor or subcontractor operate equipment belonging to BBC without express permission from a BBC representative. Hand & Power Tools All hand and power tools will be maintained and inspected prior to use. Any tool that is not in good working order will be removed from service or Red Tagged until repairs have been made. Only tools that have been manufacturer designed and used as intended will be allowed on BBC locations. Section I Specialty Operations Electrical Safety Only trained and licensed electricians may work on any electrical system on BBC locations. Low voltage DC systems are exempt from this requirement. Scaffolding Scaffolds must be designed and installed by a competent person and meet the requirements of 29 CFR 1926 Subpart L Appendices A-E. Fall protection shall be provided during the following: 1. When elevated work goes outside the confinements of the scaffold. 2. When working on an incomplete scaffold. Section J Drilling Rigs BBC administers a Rig Safety Inspection program for those employees including contract employees who work around rigs. The Rig Safety Inspection program includes daily inspections, corrections of problems, and training. See complete Rig Safety Program for complete details. Section K Well Servicing See complete Well Servicing Safety Program for complete details. Section L Safe Work Practices Isolation of Hazardous Energy (Lockout / Tagout or LOTO): Contractors involved in work that requires isolation of energy sources shall have a written lockout/tagout program that conforms to the requirements of 29 CFR A copy of the program shall be furnished to BBC upon request. In addition, the following must be provided: Documentation ensuring that all personnel who will be involved with the lockout/tagout process are properly trained in the specifics of the contractor s written equipment-specific lockout/tagout procedures. All lockout/tagout activity must also conform and be consistent with BBC lockout/tagout procedure. It is the contractor's responsibility to coordinate any lockout/tagout with the BBC project supervisor or delegate. The contractor shall provide and have available their own lockout equipment including locks, chains, and tags that may be necessary during the lockout procedure.

14 Lockout/tagout devices including those installed by either BBC or the contractor are never to be bypassed, ignored, or otherwise defeated. Working from Heights The contractor is responsible for ensuring that all contract personnel are properly trained in the hazards of working in elevated positions in excess of 6 feet in height. The contractor will be responsible for providing affected employees with full body harnesses with lanyards and ensuring that the equipment is used by contractor employees who must work at heights where safe work platforms are not available. Contractor-owned equipment, such as ladders and scaffolding, must be maintained and used in compliance with OSHA rules contained in 29 CFR and approved for the type of work being performed. Hot Work Contractors involved in work that requires hot work shall have a written program that conforms to the requirements contained in OSHA 29 CFR A written copy of the program shall be furnished to BBC upon request. The contractor must obtain a Hot Work Permit from the BBC project supervisor or delegate before any hot work is performed. Contractor is responsible for working with the BBC project supervisor or delegate to ensure that all necessary precautions are taken when hot work is performed. Confined Space Entry (CSE) Contractors involved in work that requires entry into a permit-required confined space shall have a written confined space entry program that conforms to the requirements contained in OSHA 29 CFR A written copy of the program shall be furnished to BBC upon request. Trenching & Excavation Safety The contractor must have an Excavation and Trenching Safety Program that complies with 29 CFR, 1926 Subpart P and through.653

15 Appendix A - Reporting Guidelines The following guidelines should be followed to ensure timely, accurately and thorough accident reporting: 1. If the injury/illness is life threatening the main priority is the safety and wellbeing of the employee. If needed, always contact emergency service or local 911 to care for an injured or ill employee FIRST. 2. All incidents/accidents of a contract employee or subcontractor employee, such as; injury, illness, property damage, fire, motor vehicle incident (that occurred on BBC property or while performing work for BBC), spill and near miss must be reported to the EHS department immediately or within a reasonable amount of time. 3. The Supervisor will make a written report to management whenever an employee of a contract company is injured while working at BBC properties, leases or equipment. The report should be made immediately using BBC s reporting forms or equivalent. Contractors are responsible for managing injury/accident reporting and investigations of any subcontractors or vendors brought on BBC locations. 4. Initial reports must be submitted within 24 hours of any injury/accident. 5. BBC has the right to request any information (within the guidelines of law and master service agreement) that pertains to any incident or accident that occurs on BBC property or while performing work for BBC. 6. Failure to follow incident reporting guidelines can result in disciplinary actions including termination of master service agreement. Appendix B Environmental Compliance Brochure

16

17

18 WELL SERVICING SAFETY PROGRAM KEY POINTS All vehicles shall be located at least 100 feet from the wellhead, outside the guylines and not in the fall line of the derrick. Smoking is not allowed on BBC locations. 1. INTRODUCTION AND PURPOSE The purpose of this Well Servicing Safety Program is to ensure that information on the hazards of well servicing are evaluated and communicated to BBC and other employees. This program has been developed to: Provide employees with the necessary information concerning the health and physical hazards of well servicing. Ensure that employees are provided information, training, and/or equipment to properly protect themselves against those hazards. The program includes requirements for: Work Site Preparation Rigging Up Hoisting Hoisting Lines and Winch Lines Derrick Power Tongs Pumps and Lines Blowout Preventers Rod and Tubing Jobs Swabbing Created on 8/27/2002 Page 1 Revised on 11/7/2016

19 Well Servicing Safety Program 2. RESPONSIBILITIES 2.1. ENVIRONMENTAL HEALTH AND SAFETY (EHS) MANAGER RESPONSIBILITIES: Ensure the program is current with regulatory requirements. Maintain the records associated with the program, including the written program, inspection and auditing reports, and training records. Ensure employees receive training prior to working at well servicing. Review work to determine necessary training, work practices, and/or personal protective equipment (PPE). Periodically evaluate the program to ensure its continued effectiveness SUPERVISOR RESPONSIBILITIES: Make sure the employees are trained for the various jobs in well servicing. Make routine surveys of the work area to ensure safe practices are being followed and proper PPE is being safely utilized. Advise contractors of Bill Barrett Resources Corporation (BBC) safety requirements. Ensure that employees and contractors have access to this program EMPLOYEE RESPONSIBILITIES: Follow established safe work practices and use the proper PPE when well servicing. Immediately inform your supervisor of the following: Unsafe conditions, Worn or damaged tools and/or equipment, Malfunctioning safety equipment. Know the location of emergency equipment, e.g., first aid supplies, emergency eyewash, fire extinguishers, etc. Page 2 Revised on 10/01/2016

20 Well Servicing Safety Program 2.4. CONTRACTOR RESPONSIBILITIES: Train contractor personnel in the safety requirements that apply to the well work site. Ensure that contractor personnel have the required PPE and are trained in its proper use. Inform contractor personnel of the hazards present at the work site. 3. WELL SERVICING SAFETY PROCEDURES 3.1. WORK SITE PREPARATION: Rig site should be clean with weeds cut back and no debris in the vicinity. Foundation bases should be graded and drained wherever possible, so that water will drain from the working area. No smoking on rig floors, walkways, around rig or within 100 feet of the wellhead. No matches or cigarette lighters or open flames are permitted within 100 feet of the wellhead RIGGING UP: Rigs shall be set and derricks raised as far away from service and power lines as possible, but no closer than 10 feet. Any trench or excavation greater than 4 feet deep must be sloped or retaining walls installed. Refer to the Trenching and Excavation Chapter for further information. Rigs shall not be spotted until master switch for the pumping unit is shut off and the brake is set and the counterweights are stored in the down position. When working around cellars or other excavations, employees shall be aware of possible hazards from cave-ins and adequate protection shall be provided when needed. Carrier wheels nearest the wellhead shall be chocked. Chocks shall be installed on both sides of the carrier between wheels nearest the wellhead. Page 3 Revised on 10/01/2016

21 Well Servicing Safety Program The foundation shall have an equivalent of a minimum of six 3 x 12 x 4 hardwood boards placed side by side under the T-sill. (Three boards under each derrick load screw.) Derrick leg screws shall not have more than four (4) inches of thread exposed. Jam nuts shall be properly secured on all foundation and derrick leg screws. No one is allowed in the derrick while it is being raised, lowered or telescoped up or down. The locking dogs holding the top section of the derrick shall be inspected to ensure they are seated before any additional work is performed. The rig shall not be moved while the mast is in a raised position. If a rig is found to be spotted incorrectly over a well, the derrick shall be lowered to a horizontal position before the rig is moved. Guyline tension shall not be used for positioning or leveling the derrick. All guy wires and geronimo lines shall be fastened only to approved anchors. All guy wires should be properly installed before any rig work begins. Always use three proper size clamps per guy wire. When a derrick is raised, a geronimo shall be installed during rig up as part of the derrick equipment unless it is known that no one will be working in the derrick. Flags shall be placed on all guy wires to prevent the possibility of them being struck by vehicles or equipment. All vehicles shall be located at least 100 feet from the wellhead, outside the guylines and not in the fall line of the derrick. Only vehicles necessary to the function of the job shall be allowed within the guylines. When a vehicle is no longer needed inside the guylines it shall promptly be removed. Page 4 Revised on 10/01/2016

22 Well Servicing Safety Program 3.3. HOISTING: Only authorized employees shall operate hoisting equipment. NO ONE SHALL RIDE THE TRAVELING BLOCKS, HOOK OR ELEVATORS. No one is allowed to be under equipment that is suspended. While hoisting equipment is in operation, the operator shall not be allowed to perform other work or leave the controls until the load has been safely landed. No person is allowed to ride on suspended loads. Never leave a suspended load unattended. Never pick up a load beyond the rated load capacity of the hoist. Use tag or restraint line for handling suspended loads. Hook must have proper safety latch. 3.4 HOISTING LINES AND WINCH LINES: When cutting wire rope, the ends to be cut shall always be seized with wire or adequate tape and a guillotine type wire rope cutter should be used to make the cut. Eye protection is a must during this procedure and also for the pouring of babbitt. The dead-man anchor shall be inspected regularly for weld failure or metal fatigue. The end of the hoist line shall be properly secured to the end of the drum. There must always be at least 4 wraps of the line on the drum to eliminate any strain on the fastening of the drum. When a 2-line tieback is used, there shall be at least 6 to 9 wraps on the top layer. A minimum of 3 wraps will be used on the dead-man anchor. Drum and chain guards shall remain in place except when mechanical adjustments and repairs are being performed. During replacement of hoisting lines, the blocks shall be secured in the derrick or placed on the ground. Page 5 Revised on 10/01/2016

23 Well Servicing Safety Program When the winch line is not in use, the hook on the end of the line shall be securely fastened to the derrick and the line pulled snug DERRICK: NO ONE SHALL RIDE THE TRAVELING BLOCKS, HOOK OR ELEVATORS. Before the derrick is raised, the raising cylinders should be checked for trapped air. This is very important when moderate temperature changes occur from one day to the next. A check of the scoping cylinder should also be made. The rig and derrick should be inspected visually (and checklist filled out) before raising and scoping. See section on rig and derrick inspection. The hinge pins should be inspected for cracks on a regular basis. Each crewmember must watch for lines or other items which might hang up in the derrick during the raising operation. All guylines will be tightened and secured immediately after the derrick has been scoped out. ALL GUYLINES SHOULD BE FLAGGED TO PREVENT OTHER VEHICLES FROM RUNNING INTO THEM. THE LOAD GUIDES WILL BE TIGHTENED BEFORE ANY PULLING OPERATIONS BEGIN. No one is allowed in the derrick during raising and lowering operation. Tools carried up or down the derrick ladder are required to be properly secured to the body, leaving both hands free for climbing. The derrick climber assist and line will be in place before climbing the mast. The geronimo will be installed after the derrickman is secured at either the rod basket or tubing board. THERE WILL BE NO TEST RIDES ON THE GERONIMO. Crewmembers shall not ride the geronimo from the derrick except in an emergency. The geronimo shall be tested on the ground so the operator is sure it is in good working order. A safety line, hobble, tie-off chain or some other forms of securing line must be attached from the derrick to all equipment temporarily used in the derrick when work is being done on the floor. This particularly applies to kelly hoses, chicksans, tools or other equipment capable of becoming unscrewed, busting or by some other means falling to the floor. Page 6 Revised on 10/01/2016

24 Well Servicing Safety Program Work on the floor shall be suspended and crewmembers shall get out of the way while the derrick worker is using hand tools in the derrick. A weight indicator shall be installed, operable, accurate and checked regularly. No one should be in the derrick when unseating a pump, tubing anchor, packer or working jars or bumper subs. The derrickman will check the upper section of the mast to make sure it is secure and all support latches are in place and seated. The operator should also visually check before any load is placed on the derrick. All fingers in the tubing board shall have a safety chain welded to them. Should one break, the chain would hold it from falling POWER TONGS: All tongs shall be equipped with proper backups for the size of pipe used. The tubing tongs shall be securely attached and anchored with a stiff arm. A snub line will be attached, separate from the stiff-arm attachment, as a safety feature, on the tongs. Power tongs with front openings shall have proper guards in place and in working condition at all times. Maintenance, repair or adjustments to power tongs shall not be performed until the engine has been stopped or the power input line has been disconnected PUMPS AND LINES: Pump discharge manifolds shall always have the proper relief valves. Relief valves should be turned so that the discharge will be directed away from the crewmembers and equipment. Shear-pin type relief valves shall have suitable guards to protect crewmembers from piston action of valve stem and from flying parts of sheared pins. Each end of all hoses and hardlines shall be secured by chain or cable hobbles clamped to each end. Page 7 Revised on 10/01/2016

25 Well Servicing Safety Program All blowdown lines will be properly secured by cross bars to prevent the end of the line from whipping around. All moving parts of power train system that are exposed shall have protective guards over them to prevent any potential hazard. Never hammer on pressurized lines BLOWOUT PREVENTERS: Blowout preventers and controls should be checked to make sure they are working properly and that proper pressure can be maintained. Blowout preventers should have the right size of rams to fit the size of pipe being used. Accumulator valve handles must be in the open or closed position during normal operations, NOT in a neutral position. If the blind rams are closed for any purpose, a valve below the rams must be opened first, to relieve any pressure. Prior to opening the rams, all employees must be made aware so they can leave the working platform. Each crewmember shall be trained in the operation of the blowout preventer and closing unit and their responsibility in the event of a blowout ROD AND TUBING JOBS: Rod and tubing tongs shall have a snub line secured to the derrick leg and a safety gate to cover the exposed moving parts. Rod hangers and sleeves shall be inspected before each job. The derrickman should remain on the ground until the first pull of rods is pulled or the first stand of tubing is pulled. The crown sheaves and blocks shall be inspected regularly. ALWAYS HAVE A SAFETY VALVE IN THE OPEN POSITION, WITH PROPER CONNECTIONS FOR THE SIZE OF PIPE BEING USED. Never hang a single or double rod in the basket. Page 8 Revised on 10/01/2016

26 Well Servicing Safety Program The derrickman shall inspect and report on the condition of the rod and tubing boards and other components of the derrick. Upon completion of pulling rods, they shall be properly secured to prevent movement. All rod transfers must have safety latches or D rings in safe operating condition. Rod transfer swivel nut must be spot welded to prevent swivel from coming loose and falling apart. Weight indicators shall be installed, operable, safely secured and visible to the operator at all times. The operator shall not leave the brake handle without chaining it down, properly secured. On multiple completion wellheads, extreme caution shall be taken to eliminate the chance of error in opening or closing the wrong valve. All tubing should be properly secured in the derrick SWABBING: Only trained personnel shall operate the sand drum. The lubricator shall not be lifted by packing off the oil saver rubber. Always use the winch line when lifting the lubricator. Sufficient flags shall be placed on the sandline to stop the swab at a safe distance from the oil saver. Do not overload wirelines. Swabbing lines shall not be used to pull heavy strings of rods or to fish strings of rods. When swabbing or bailing, no one shall stand near the cable, as it might part or throw slack and hit them. The line angle compensater should be lubricated with the sand drum locked in a stopped position and the rig engine off. Page 9 Revised on 10/01/2016