2006 Health Safety Environmental HSE Orientation San Juan

2006 Health, Safety & Environmental (HSE) Orientation San Juan Operations

Presentation Outline • Our Safety Beliefs & Guiding Principles • Working Safely at Conoco. Phillips Sites – Actions to Take Prior to Arriving at a COPC Site – On-Site Safety Programs and Expectations – Incident Reporting and Investigation • • Protecting Our Worker’s Health Our Environmental Standards Regulations and Lease Specific Rules Concluding Remarks Note: COPC is an abbreviation for “Conoco. Phillips Company”

Our Safety Beliefs & Guiding Principles • We are committed to doing whatever is required to have zero safety incidents, injuries and illnesses. This is our most important objective! • Our work is never so urgent or important that we cannot take the time required, or spend the money required, to do it safely. • All personnel working at our sites (employees & contractors) are expected to care enough to take action to keep themselves & others free from danger or injury (“Brother’s Keeper” concept). • All personnel have a right and a duty to stop any unsafe activity that they observe and to report all incidents. • Line management is accountable for safety performance. • We shall seek out contractors whose leadership have similar safety beliefs to our own & who actively promote safety.

Presentation Outline • Our Safety Beliefs & Guiding Principles • Working Safely at Conoco. Phillips Sites – Actions to Take Prior to Arriving at a COPC Site – On-Site Safety Programs and Expectations – Incident Reporting and Investigation • • Protecting Our Worker’s Health Our Environmental Standards Regulations and Lease Specific Rules Concluding Remarks Note: COPC is an abbreviation for “Conoco. Phillips Company”

Actions to Take Prior to Arriving at the Site • Ensure you have had the proper training. • Ensure you have with you: – Appropriate personal protective equipment (PPE). – The right tools for the job. – The right people to do the job safely. • Ensure you have no prohibited items

PPE Requirements Safety Hardhats must comply with ANSI Z 89. 1 Hardhats must not be modified by engraving, painting or re-shaping

Safety Hardhats: Which hardhat is not acceptable? X CAUTION Bump caps do not meet ANSI Z 89. 1 and are not to be worn for protection from falling or glancing objects

PPE – Hearing Protection Hearing protection is required in all high noise level areas and other posted areas Areas exceeding 82 d. BA are defined as being “high noise areas” High noise areas should be posted

Types of Hearing Protection

PPE – Eye / Face Protection Safety glasses with side shields that comply with ANSI Z 87. 1 must be worn For jobs where safety glasses do not provide adequate protection (e. g. welding), other appropriate protection must be worn Lens color tinting should be appropriate for the lighting conditions

Types of Safety Glasses

PPE – Hand Protection • Gloves must be worn when handling: – abrasive materials – materials that could cut a person’s hands – chemicals – hazardous materials • Gloves must be worn when performing: – electrical work – hot work – work that may expose one to blood-borne pathogens

PPE - Flame Resistant Clothing (FRC) After March 1 st, 2006, FRC will be the required outer-layer of clothing when on COPC locations within 35 ft of hydrocarbon production equipment Drilling, Work-over and Cavitation Rigs will require FRC whenever on a COPC location

FRC must be worn with the sleeves fully extended to the wrist and with the buttons and zippers closed Shirts are to be completely tucked inside of the pants at the waist FRC shall meet NFPA 2112 requirements

PPE – Respiratory Protection If Respiratory Protection is necessary, medical approval and fit testing are also required prior to use Facial hair must not interfere with the face-to-mask seal

PPE – Safety Footwear Safety-toed boots must be worn on all Conoco. Phillips locations Safety-toed boots must comply with ANSI Z 41. 1 and footwear will have a discernible sole & heel

The Right Tools for the Job The best way to ensure that you have the “right tool for the job” is to anticipate your equipment needs before going to the field Bring with you the equipment required to do the job safely! Do not forget tools such as fall protection, scaffolding, guards or special rigging

Ground Disturbance & “One Call” A New Mexico “One Call” must be completed with a 48 -hour notice prior to all ground disturbance by mechanical means: Call 800 -321 -2537 A Colorado “One Call” must be completed with a 72 hour notice prior to all ground disturbances by any means: Call 800 -922 -1987

Language Requirements Crew members in the San Juan Basin commonly speak Spanish as their primary language All crews must have at least one person present on location who can speak and read English, and who is also able to communicate with crew members who are not fluent in English

Short Service Employees - SSE’s • An employee will be required to wear a green hard hat for six months if: – – • They are new to the oil and gas industry. They are new to their employer. The only exception to this is if an employee is new to a company, but has at least six (6) months of experience with another company in the same position/job that they are assuming for the new company. In this case, they would be required to wear a green hard hat for a minimum one (1) month period

COPC only allows one Short Service Employee per Responsible Person A Responsible Person must have authority over the Short Service Employee and cannot be a short service employee themselves Exceptions to this rule can only be made by a Conoco. Phillips Supervisor

Training Requirements – All Employees All contractor personnel must have attended Petroleum Education Council training before working at a COPC site In-house equivalent training programs are acceptable, if approved by COPC’s HSE&R Supervisor This program is targeted at persons new to the Oil & Gas Industry. Once taken, it does not have to be taken again. Certification must be available upon request

Petroleum Education Council Training Course Content Confined Space Entry Lock Out - Tag Out Hot Work Personal Protective Equipment Fire Prevention Hazard Communication Respiratory Protection Hazwoper Awareness Level Trenching & Excavation Awareness First Aid / CPR Hydrogen Sulfide

Training Requirements for Contractor First-Line Supervisors First-line Supervisors may need to receive Conoco. Phillips training in one or more types of work that they are overseeing Specific types of work that require additional training include: Hot Work, LOTO, Rigging, Fall Protection, Confined Space, Purging, Fire Protection & Excavation COPC’s HSE personnel should be contacted to determine training requirements Training received will be documented in a COPC issued “Passport” Passports must be in the supervisor’s possession when on a COPC site. If not in possession, training will need to be verified by calling COPC’s HSE personnel.

Prohibited Items FIREARMS & AMMUNITIONS SWITCHBLADE KNIVES POCKET KNIVES WITHOUT A BLADE LOCKING MECHANISM ALCHOLIC BEVERAGES ILLEGAL DRUGS OR CONTROLLED SUBSTANCES DRUG PARAPHERNALIA PRESCIPTION MEDICATION WITHOUT PROPER LABELING PORNOGRAPHIC, OBSCENE, DEFAMATORY, ABUSIVE, OR INFLAMMATORY MATERIAL OR LITERATURE Cameras on location require COPC management approval All persons and vehicles on Conoco. Phillips property are subject to search at any time

On-site Programs and Expectations

On-Site Safety Programs and Expectations Reporting to the Person “In-Charge” Reviewing the JSA & Emergency Plan Participating in “STOP” Practicing Safety Leadership Understanding General On-Site Rules

Immediately upon arriving at the site, report to the Conoco. Phillips Supervisor or Representative If a Conoco. Phillips Supervisor is not present, make contact with the Contractor Representative who is responsible for directing the work

After reporting to the on-site supervisor, review the task and site-specific JSA so as to be aware of potential hazards and the plans that exist to mitigate hazards Review the on-site Emergency Plan requirements and identify all emergency contacts and resources

JSA’s – Job Safety Analysis A pre-job safety meeting and JSA will be conducted prior to beginning daily operations and also when the job scope or conditions change Full crew participation is expected JSA’s must be revised as work conditions or personnel change during the day

STOP Principles All personnel on location are expected to spend time Observing Behaviors Safe & Unsafe Behaviors are to be noted If an unsafe behavior is observed, the employee making the observation has the responsibility to STOP the Job and Initiate a Discussion Employees involved are expected to determine what actions should be taken to ensure a safe outcome A STOP Card is written up to document Safe and Unsafe Behaviors. Only anonymous information is reported.

Throughout your entire work-day, you should STOP and engage your fellow workers in conversations about Safe and Unsafe activities that you observe Conoco. Phillips is in the process of implementing STOP, and expects to have it fully implemented during 2006

Every employee working at a Conoco. Phillips site needs to behave as a “Safety Leader” A “Safety Leader” is a person who cares enough to take action to keep themselves & others free from danger or injury

All individuals on our locations have the Authority and Responsibility to correct unsafe acts or conditions and STOP any unsafe operation

Understanding General On-Site Rules While on location jewelry shall not be worn where the potential exists for it to get caught in machinery or equipment Jewelry includes rings, earrings, necklaces and non-medical wristbands

General On-Site Rules Hair longer than shoulder length must be tied up and placed under the hardhat Except in emergencies, employees should not work more than 18 consecutive hours Horseplay and practical joking is prohibited

Understanding General On-Site Rules Guards shall be provided to protect personnel from hazards such as “point of operation” hazards and rotating parts Removal of guards from machinery while in normal operation is prohibited

Understanding General On-Site Rules Smoking is allowed only in a “designated area” on location Smoking areas should always be upwind at least 75 ft from hydrocarbon sources Keep your entire worksite clean and orderly

Material Handling & Rigging

When guiding overhead suspended loads, tag-lines and tail ropes must be used Tag-lines must be of sufficient length to place workers out of the fall path of suspended loads Special training and certification is required for operators of man-lifts, forklifts and cranes

Critical Lifts will be assessed using a “Critical Lift Worksheet” Critical Lifts are those exceeding 10, 000 pounds or which cross-over live process equipment

Proper Lifting Practices Be “warmed” up & ready to lift Grasp the load firmly Keep the load close to your body with chin-in and back straight Lift with your legs – not your back Avoid twisting Obtain help when possible

Tools & Working Around Electricity

Tools Inspect the condition of all tools before use The use of defective tools or the “wrong tool for the job” is prohibited Observing someone using the “wrong tool for the job” would merit stopping work

Ladders must be adequate for the work being undertaken and inspected regularly Both hands shall be kept free for climbing Only one person is allowed on a ladder While ladders are in use they must be “tied-off” and properly anchored

Vehicle Safety “Tools” Vehicles will carry fire extinguishers with a minimum 20 lb multi-purpose rating First aid kits shall be accessible and the contents selected on a review of the job site and associated hazards

Tools for “Working at Heights” When fall hazards cannot be eliminated by working from ground level or thru the use of a guardrail system, a fall arrest system must be used A full body harness with 100% tie-off must be used when working above six (6) feet in unguarded areas

Working Around Electricity If working around electrical power lines, a minimum clearance of 10 feet shall be maintained All vehicles and equipment in transit must maintain a 4 foot minimum clearance from power lines Power lines without adequate clearances will have to be de-energized

Utilization of “Hot Sticks” to raise electrical power lines requires approval of a COPC Supervisor Work must then only be done by a qualified person such as a Company or Contractor electrician

Static Electricity Plastic buckets shall not be used for transporting hydrocarbons Metal storage tanks shall be grounded Tank trucks transferring liquids or solids shall be bonded to the storage tank before transfer begins

Special On-Site Activities

Confined Space Entry requires that a permit be written by a Conoco. Phillips Authorized Permit Writer (that is, a person with special training) Confined spaces include, but are not limited to, cellars, pits and tanks

Hot Work Permits are Required When Working: Within 75 ft of hydrocarbon sources Within 35 feet of combustible materials In a Hazardous (Classified) Area On Cad-welding applications On equipment that may contain flammable mixtures or a residue that may release flammable or combustible vapors or gases With motor vehicles operating in a tank dike or within 10 feet of producing wellheads

Situations normally considered “Hot Work” that do not require a Hot Work Permit • A Hot Work Permit is not required when using the following tools, devices and equipment further than 10 feet from a hydrocarbon source and outside of a hazardous (classified) area: – Non-intrinsically safe instruments, meters or tools such as cell phones, cameras, laptops or pagers – Specialty equipment such as work-over & drilling rigs, & wire-line units – Truck transports which are properly bonded and/or grounded • A Hot Work Permit is not required when using the above listed equipment inside of 10 feet or in a classified area if a combustible-gas indicator meter is used to verify that no flammable gases are present. Unless required for the work you are doing, please leave cell phones, pagers and cameras in your vehicle so as to avoid inadvertently violating the 10 foot rule

Lockout / Tagout • Lockout / Tagout (LOTO) procedures must be performed by a COPC Authorized (trained) person prior to servicing equipment that contains any of the following sources of energy: – fluids and gases – hydraulic – electrical – mechanical and gravitational – chemical – thermal – pneumatic

“Lone Worker” and “Check-In” Programs We want to insure that personnel travel safely to and from Conoco. Phillips’ locations each day These programs are designed to ensure that no worker becomes stranded on a location, especially in a situation where they may have been injured Every worker should understand their employer’s programs Conoco. Phillips requires that all of its contractors have Lone Worker and Check-In Programs

Incident Reporting and Investigation

Immediately notify your COPC representative of: - All injuries, illnesses, near misses, hazards, thefts, and vandalism - All Spills of liquid hydrocarbons, chemicals, or produced water - All unplanned gas releases to the environment

Conoco. Phillips Supervisors Office Donald Blair Maintenance 599 -3421 Tom Bealessio Drilling 599 -3480 Eric Fransen Projects (Rigs, Const. ) 599 -3450 Tom Lentz Central Operations 599 -3452 Jerry Loudermilk North Operations 599 -3445 Terry Bowker South Operations 599 -3448 Bob Wirtanen HSE&R 599 -3462 Farmington Conoco. Phillips Office 599 -3400 After Hours Answering Service 599 -5081 Cell 486 -4347 947 -2540 320 -3550 320 -4636 320 -0452 320 -2600 320 -6631 Pager 324 -7572 324 -2681 888 -557 -1070 324 -2602 599 -7206 599 -7046 599 -7168

When investigating an incident, Conoco. Phillips’ primary objective is to determine the “root cause(s)” of the incident so as to be able to take corrective measures to prevent similar incidents from occurring in the future. In order to determine the “root causes” of an incident, the active participation of all involved parties is required.

Presentation Outline • Our Safety Beliefs & Guiding Principles • Working Safely at Conoco. Phillips Sites – Actions to Take Prior to Arriving at a COPC Site – On-Site Safety Programs and Expectations – Incident Reporting and Investigation • • Protecting Our Worker’s Health Our Environmental Standards Regulations and Lease Specific Rules Concluding Remarks Note: COPC is an abbreviation for “Conoco. Phillips Company”

Occupational Health Issues Norm Asbestos Hydrogen Sulfide Lead Benzene Ergonomics

NORM Naturally Occurring Radioactive Material surveys are conducted on all equipment before being sold as surplus material and prior to entry into confined spaces Surveys over the years have revealed little to no NORM to be present in our operations

Asbestos Containing Material – ACM All insulation should be considered as ACM unless survey information and/or on-site labeling shows otherwise Abatement of ACM should only be undertaken in conjunction with HSE support and qualified personnel

Hydrogen Sulfide – H 2 S Locations with H 2 S product streams over 100 ppm are required to be posted When H 2 S exceeds 10 ppm in the breathing zone, supplied air respiratory protection and H 2 S monitors must be used H 2 S can only be confirmed by proper and frequent testing

Lead Painted & primer-coated materials should be considered to contain Lead unless a survey shows otherwise Abatement of Lead should only be undertaken in conjunction with HSE support and qualified personnel

Benzene may be found as a component in condensate produced in the San Juan Basin Additional PPE may be required if you are involved with handling condensate If your job involves directly handling condensate, contact your company’s or Conoco. Phillips’ HSE personnel

Ergonomics Designing the workplace environment to fit the capabilities of the worker is important for preventing injuries Ergonomic issues should be addressed by contacting your company’s or Conoco. Phillips’ HSE Department

Conoco. Phillips’ Environmental Policies

Environmental Protection If you observe a situation where environmental damage may be occurring, immediately notify a Conoco. Phillips Supervisor or Representative Drilling, work-over and production pits must be of the proper size & construction to hold all contents and prevent over-spray Earthen pits containing liquids must be lined & fenced, and the liners and fencing must be maintained in good condition

Environmental Protection Contractors bringing chemicals on site are required to have a one-time pre-approved MSDS from the COPC HSE Department Removal of drums & small portable containers from the worksite is required after use

Environmental Protection Pollution control equipment must be maintained in proper working order Open burning generally requires regulatory authorization Air permits exist that are specific to facilities and equipment. The stipulations of these permits must be met.

Environmental Protection Compliance with endangered species requirements is mandatory All construction sites must be evaluated for storm water regulation applicability Waste generated must be properly managed and disposed of in accordance with COPC policies and applicable regulations

Regulations and Lease Specific Rules

Vehicles are to be driven only on bladed lease roads or cleared locations Obey posted speed limits Drive appropriately for road weather and traffic conditions Vehicles operated by Conoco. Phillips, or its contractors, shall have a yellow and orange flag attached to an antenna

Vehicles should be operated and parked in such a way that backing up is avoided If backing up is necessary and a spotter is not available, a prior walk around is required If you must back-up, do so for the minimum possible distance

All Conoco. Phillips and contractor employees are expected to ensure that gates are properly closed and locked behind them Locks are not to be broken or removed If a broken or removed lock is found, contact a Conoco. Phillips supervisor immediately

Do not initiate or escalate conflicts with any individuals on leases, access roads or ranch lands If a confrontational situation develops, back away and contact a Conoco. Phillips supervisor immediately

Activities and Items Not Allowed on COPC Leases Wildlife calls, weapons, or night vision equipment Dogs or other animals Hunting or intentional injuring of wildlife Bringing non-business friends or family onto or across our leases Cutting or gathering of firewood or Christmas trees Removing pine nuts, artifacts or other non-oil and gas materials

Additional Requirements on Smith Ranch Use of optical vision equipment is not allowed There is no crossing of the Smith Ranch Property on behalf of COPC for any purpose other than providing services to COPC Picnics or barbeques are not allowed; however, rig personnel can prepare and eat food during drilling and completion operations

Presentation Outline • Our Safety Beliefs & Guiding Principles • Working Safely at Conoco. Phillips Sites – Actions to Take Prior to Arriving at a COPC Site – On-Site Safety Programs and Expectations – Incident Reporting and Investigation • • Protecting Our Worker’s Health Our Environmental Standards Regulations and Lease Specific Rules Concluding Remarks Note: COPC is an abbreviation for “Conoco. Phillips Company”

Conoco. Phillips is committed to providing every employee with a safe work place However, it is up to each individual to take responsibility for their safety and the safety of those working around them When it comes to safety, Conoco. Phillips does not differentiate between the safety of its employees and that of its contractors