Industry Code: Alberta Small Employer OHS Legislated Requirements

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This document is a guideline only. Employers have a responsibility of assessing all applicable occupational health and safety legislation, for the tasks they are performing. Services in this industry can include: Directional drilling services involve only the supplying of equipment and specialized supervision to the oil company, not the physical drilling. This work is done during the drilling process, with the physical work or actual drilling done by the drilling rig crew. The companies performing the drilling are classified in industry 09600, Drilling of oil and gas wells. Wireline services involve lowering special instruments into the well for testing purposes. A wireline may also be used to pull instruments or scrape debris out of the well. Oil and gas well perforating involves lowering an explosive device into the well on a wire line. When the required depth is reached, the device is detonated by an electrical current. The explosive perforates the well casing, allowing the flow of oil at different levels. Well testing activities include testing production levels. Production testing is performed by compressor equipment, usually truck mounted, which introduces water, air, or nitrogen into the line under high pressure and records information on pressure instruments. A separator may also be employed to test the flow or proportion of gas/oil and water in the flow. Smaller hand held recording instruments may also be used for testing purposes. Dynamometers are a surface instrument used to test downhole pumps and pump jack performance. Echometers are a downhole instrument used to log fluid levels and requires the discharge of blank shells to generate shock waves which are recorded. After a shot hole has been drilled, the hole is usually never used again and must be closed for environmental reasons. Shot hole cementers place a plug part way down the hole, then fill the hole with cement from the plug to the surface. Cementing also involves pumping cement downhole to secure the well casing. Fracturing is the process of forcing, under high pressure, a mud-sand slurry with CO2 or nitrogen to expand or fracture the formation, allowing the oil or gas to escape up the well. Chemical treatments involve forcing/injecting stimulation fluids into the well casing to clear contaminants, remove paraffin and hydrates for well stimulation. Endless, continuous or coiled tubing units which run small diameter flexible steel tubing into the well are used to inject nitrogen, foams, solvents or other chemicals. Coiled tubing may also be used in other applications such as cementing, underbalanced drilling and perforating. Swabbing is an operation that temporarily lowers the fluid level in the well so that it can begin to produce. Swabbing is used in well completions and well control. Swabbing is sometimes necessary on well completions, if the well does not flow after perforating. The purpose of this page 1 of 6

operation is to swab, or lift, enough fluid out of the tubing so that the hydrostatic pressure is reduced to a value below that of the formation pressure. If the swabbing is successful, formation fluids will start flowing immediately. Swabbing done for well control may be required when high formation pressure is encountered while drilling. Formation fluids can be swabbed, or pulled, into the hole by the piston like action of the bit as pipe is "tripped out" (pulling the drill stem and bit out to the hole in order to run casing, change bits, or perform some other operation in the bore hole) of the hole, or the mud level in the hole can fall so that the hole is not longer full of mud. When hydrostatic pressure falls below formation pressure, crew members have a "kick" on their hands and they must take quick and proper action to prevent the "kick" from becoming a blowout. Underbalanced drilling is a process where lighter fluids are used to lubricate the drilling bit and drill stem using gasified drilling fluids to keep hydrostatic head pressure lower than the pressure being drilled. This reduces the cost and reduces the need for well stimulation in completing the well. Companies which provide the equipment, to oil and gas well drilling companies, for underbalanced drilling may also provide an operator for the equipment being rented but are not involved in the operation of the drilling rig. Relevant sections of OHS Legislation: Occupational Health and Safety Act 2 Obligations of employers, workers, etc. 18 Serious injuries and accidents 19 Investigation of accidents 35 Existence of imminent danger 37 Disciplinary action complaint Occupational Health and Safety Regulation 7 Availability of specifications 12 Equipment 13 General protection of workers 14 Duties of workers 15 Safety training 17 Issue of blaster's permit 18 Expiry 9blaster's permit) 19 Suspension, cancellation 20 Effect at work site 21 Employer records of blaster's permits 22 Amendment of permit 23 Possession of blaster's permit Occupational Health and Safety Code (2009) Part 1 Definitions and 2.1 Availability of legislation General Application 2.2 Designated person to prepare plan page 2 of 6

Part 2 Hazard Assessment, Elimination and Control Part 3 Specifications and Certifications Part 4 Chemical Hazards, Biological Hazards and Harmful Substances Part 7 Emergency Preparedness and Response Part 8 Entrances, Walkways, Stairways and Ladders 7 Hazard assessment 8 Worker participation 9 Hazard elimination and control 12 Following specifications 13 Manufacturer s and Professional Engineer s specifications 14 Certification by a professional engineer 15 Approved equipment 16 Worker exposure to harmful substance 21 Potential worker exposure 22 Worker overexposure 23 Worker decontamination 24 Emergency baths, showers, eye wash equipment 25 Prohibited activities 26 Codes of practice 27 Storage of harmful substance 28 General provisions for asbestos, silica, coal dust and lead 29 Restricted area 39 Use of crystalline silica in abrasive blasting 40 Health assessments for workers exposed to asbestos, silica or coal dust Refer to schedule 1 115 Emergency response plan 116 Contents of plan 117 Rescue and evacuation workers 118 Equipment 119 Safe entry and exit 121 Walkways, runways and ramps 122 Stairways 123 Handrails on stairways Part 9 Fall Protection 139 General protection 140 Fall protection plan 141 Instruction of workers 142 Full body harness page 3 of 6

143 Connectors, carabiners and snap hooks 144 Fall arrestors 150 Equipment compatibility 150.1 Inspection and maintenance 150.2 Removal from service 151 Clearance, maximum arresting force and swing 152.1 Anchor strength - temporary 152.1 Anchor strength - permanent 152.2 Duty to use anchors 152.3 Independence of anchors 160 Work positioning Part 10 Fire and Explosion Hazards 161.1 Flammable or explosive atmospheres a hazard 162 Prohibitions 164 Contaminated skin and clothing 165 Protective procedures and precautions in hazardous locations 171 Compressed and liquefied gas Part 11 First Aid 178 Providing services, supplies, equipment 179 Location of first aid 180 Emergency transportation 181 First aid providers 182 Duty to report injury or illness 183 Record of injury or illness 184 First aid record access Refer to Schedule 2 Part 12 General Safety Precautions Part 14 Lifting and Handling Loads Part 15 Managing the Control of Hazardous Energy 185 Housekeeping 186 Lighting 188 Restraining hoses and piping 189 Securing equipment and materials 208 Equipment 209 Adapting to heavy or awkward loads 210 Assessing manual handling hazards 212 Isolation 213 Verifying isolation 214 Securing by individual workers 215.3 Returning to operation page 4 of 6

Part 16 Noise Exposure 218 Worker exposure to noise 222 Hearing protection Refer to schedule 3 Part 17 Overhead Power Lines 225 Safe limit of approach distances 226 Transport loads, equipment and buildings Refer to schedule 4 Part 18 Personal Protective Equipment 228 Duty to use personal protective equipment 229 Eye protection (compliance with standards) 233 Footwear 234 Head protection 242 Limb and body protection 243 Skin protection 244 Respiratory dangers 245 Code of practice Part 21 Rigging 292 Breaking strength 292.1 Safety factors 293 Load ratings 294 Inspection 295 Prohibition 296 Rigging protection 297 Standards 298 Slings 299 Rope wound on drum 300 Cable clips 301 Ferrules 302 Matching components 303 Safety latches 304 Makeshift rigging and welding 305 Synthetic fibre slings 306 Wire rope 307 Metal mesh slings 308 Electric arc damage 309 Damaged hooks page 5 of 6

Part 22 Safeguards 310 Safeguards 311 Tampering with safeguards 312 No safeguards 314 Covering openings 315 Guardrails 318 Protection from falling objects 321 Toe boards Part 24 Toilets and Washing Facilities Part 25 Tools, Equipment and Machinery 254 Restrictions by employer 355 Drinking fluids 356 Exception (temp. site) 357 Toilet facilities 362 Contact by clothing, etc. 368 Controls 369 Immobilizing machinery Part 27 Violence 389 Hazard assessment 390 Policy and procedures 391 Instruction of workers 392 Response to incidents Part 29 Workplace Hazardous Materials Information System (WHMIS) 397 Training 398 Label required 400 Decanted products 404 Material Safety Data Sheet - Supplier 406 Information current (MSDS) 407 Availability of Material Safety Data Sheet Part 37 Oil and Gas Wells 750 Application 751 Competent supervisor 752 Breathing equipment 780 Well swabbing 781 Well servicing 782 Well stimulation page 6 of 6