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					           Contractor Compliance with the

Alcohol & Drug Policy




 Contractor Compliance Program
Contractor Compliance with the

Alcohol &
Drug Policy
Ta b l e o f C o n T e n T s
EnCana’s Commitment                   1
Expectations of our Contractors       2
  Policies and Testing Programs       2
  Prevention                          3
  Impaired Driving                    5
  Testing and Investigations          6
Consequences of a Violation          11
Key Definitions                      12
Alcohol and Drug Program Checklist
for Contractor                       14
                                                            EnCana Alcohol & Drug Policy — Contractor Compliance 



EnCana’s CommitmEnt
    EnCana is committed to protecting the health and safety of individuals
    and communities affected by our activities. The inappropriate use of
    alcohol and drugs puts those individuals and communities at risk and is
    not acceptable on our worksites.
    Through our comprehensive Alcohol & Drug Policy and Practices,
    EnCana has committed to preserving a high-performance work
    environment that is safe for our employees, contractors and the public.
    Our Alcohol & Drug Policy and Practices are founded on the
    principles of prevention and providing a safe work environment.
    Key to our policy and practices are the following elements:
    n   Use, possession, distribution and offering for sale of alcohol, drugs
        and drug paraphernalia in the workplace are strictly prohibited.
    n   Use of alcohol during work hours by individuals in safety-sensitive
        positions is strictly prohibited.
    n   Testing for alcohol and drugs can be conducted as part of
        post-incident investigations, or where there are reasonable grounds
        to believe alcohol or drugs are in use or are otherwise impacting
        the workplace.
    n   Pre-assignment testing for drugs can be used as part of the
        assessment of individuals under consideration for
        safety-sensitive positions.
	   n   All testing will be conducted according to U.S. Department of Health
        and Human Services standards, which are also accepted in Canada.
    n   Violations will not be tolerated.




        Outrageous economics
        Alberta’s economy loses roughly $530 million annually in
        productivity as a result of inappropriate alcohol and drug use.
        Each year, the Canadian economy loses $7 to $9 billion because
        of inappropriate use of pharmaceuticals.
        Alberta Profile, Social and Health Indicators of Addiction, AADAC, November 2003.
 EnCana Alcohol & Drug Policy — Contractor Compliance


          ExpECtations of our ContraCtors

           PoliCies And TesTing ProgrAms
                 We expect all contractors to meet the same standards for prevention
                 and testing as established within EnCana’s Alcohol & Drug Policy and
                 Practices. In particular, we expect every contractor to establish its own
                 alcohol and drug policy and testing program. Where it is impractical
                 for sole proprietors and other very small contractors to establish their
                 own policies and testing programs, they will be contractually required to
                 comply with the terms of EnCana’s policy and practices.
                 Contractors are expected to enforce these requirements among their
                 employees, subcontractors and agents (staff) who conduct EnCana
                 business or work on EnCana premises. EnCana may require contractors
                 to produce proof of their policies and practices, and reserves the right
                 to audit those policies and practices to assess compliance with
                 EnCana’s requirements.


                  Trends among employers
                  In 2007, the Alcohol and Drug Guidelines and Work Rule
                  (A Model for the Upstream Petroleum Industry) will be released
                  by Enform. It is expected to standardize alcohol and drug
                  policies and programs across industry.
                  Enform (www.enform.ca)


                 Failure to have an acceptable policy and practices or failure to take
                 actions in accordance with the applicable policy and practices, may
                 result in termination of the contractor’s agreement for services with
                 EnCana.
                 The Alcohol and Drug Program Checklist for Contractors at the end of
                 this booklet may be used by EnCana supervisors and contractors to
                 assess contractor compliance with EnCana’s requirements.
                                                       EnCana Alcohol & Drug Policy — Contractor Compliance 3


PrevenTion
     Contractors must ensure their staff report and remain fit for work while
     on EnCana business or premises. Fit for work means being able to
     safely and acceptably perform assigned duties and responsibilities
     without any limitations due to the consumption of alcohol or use of
     drugs. When determining an individual’s fitness for work, EnCana
     relies on standard testing methods for blood-alcohol content and the
     presence of specific drugs. For more information, see Testing Standards
     on page 8.
     If an individual is asked to perform services or to return to duty while
     under the influence of alcohol or drugs (including medications that could
     impact safe operations) it is the responsibility of that individual to inform
     the company that they cannot accept the assignment.
     In addition, contractors must prevent inappropriate use of alcohol and
     drugs as follows:

Alcohol
     Contractors must ensure their staff do not:
     n	    use, posses, distribute or sell beverage alcohol at EnCana
           worksites, without company authorization
	    	n    report for work with a blood-alcohol content greater than
           0.04 percent	
     n		   use any product containing alcohol during work hours, meals or
           breaks, if they are in safety-sensitive positions



    Preventable deaths
    In Alberta, 21 percent of drivers involved in fatal collisions in 2003
    had consumed alcohol before the crash.
    Substance Use and Injury: The ABCs, AADAC, 2003.
 EnCana Alcohol & Drug Policy — Contractor Compliance




          drugs
                 Contractors must ensure their staff do not:
           	     n    use or possess any drugs or drug paraphernalia that are
                      illegal to use or possess
           	     n    possess prescribed medications without a legally
                      obtained prescription
                 n    use prescribed or over-the-counter medications in
                      an irresponsible manner
           	     	n   intentionally misuse medications that inhibit or may inhibit their
                      ability to perform a job safely and productively (e.g. taking more
                      than the prescribed dosage of a medication, taking someone
                      else’s prescription medication, combining medication and alcohol)
                 Contractor staff are expected to investigate through a doctor or
                 pharmacist whether a medication may interfere with their ability to
                 work safely (e.g. cause drowsiness). They are also expected to take
                 appropriate steps to minimize associated risks, including immediately
                 notifying their company or an EnCana representative of any need
                 for modified work.




                 Sobering facts
                 In 2002, almost 17,000 Alberta workers used illicit drugs while at
                 work and more than 184,000 used alcohol while at work.
                Substance Use and Gambling in the Alberta Workplace 2002, A Replication Study,
                AADAC, 2003.
                                               EnCana Alcohol & Drug Policy — Contractor Compliance 5




i m PA i r e d d r i v i n g
   Contractor staff who are required to drive on behalf of EnCana
   must be able to provide proof of a valid driver’s license. Any loss
   of license must be reported immediately to EnCana and will result
   in the individual being deemed no longer qualified to drive at
   EnCana worksites.
   In addition, any individual charged with an impaired driving offense
   (e.g. blowing over the legal limit for blood-alcohol content, driving
   while impaired, or refusing to provide a breath sample) when
   operating a vehicle on an EnCana worksite or while conducting
   EnCana business, is subject to the following:
   n   the individual must inform their supervisor immediately who
       must then inform the EnCana supervisor immediately;
   n   the situation will be investigated;
   n   a range of actions may result, which may include medical
       assessment to determine if the individual has an alcohol or
       drug problem, alternative work, removal from EnCana work, or
       any other appropriate action depending on the circumstances.
   Failure to report an impaired driving charge or the loss of a
   driver’s license will be grounds for removal of the individual
   from the EnCana worksite and will be considered a serious
   breach of the contractor’s agreement with EnCana.
 EnCana Alcohol & Drug Policy — Contractor Compliance



     What do we know for sure?
      Workers under the influence of alcohol or drugs are at a greater risk of being injured
      and sustaining more serious injuries than workers who are sober.
      These same workers put their employers and livelihoods at risk by increasing costs
      from lost production, wages paid for sick days, and wages paid for temporary
      replacement workers.
     Substance Use and Gambling in the Alberta Workplace 2002, A Replication Study, AADAC, 2003.




           T e s T i n g A n d i n v e s T i g AT i o n s
                 Contractors must be prepared to conduct alcohol and drug
                 testing and investigations as described below. They must also
                 ensure their staff are aware of and will comply with testing and
                 investigation requirements.

          Pre-access testing
                 Pre-access testing is not currently a requirement for EnCana
                 contractors. However, where a contractor’s staff member is
                 assigned to safety-sensitive duties, the region or business unit
                 may require the individual to complete pre-assignment testing
                 in the same manner as an applicant to a similar safety-sensitive
                 position within EnCana.

          reasonable-grounds testing
                 Testing will take place as part of a full investigation when an
                 individual’s actions, appearance or conduct while at work give an
                 EnCana representative or contract supervisor reasonable grounds
                 to suspect the use of alcohol or drugs. The basis for the decision
                 will be made in conjunction with a second EnCana representative
                 whenever possible and documented as soon as possible after
                 action has taken place. Referral of a contract worker for a test will
                 be based on specific, personal observations of clues such as:
           	     n    use or evidence of use of alcohol or drugs
           	     n    changes in job performance
           	     n    changed, erratic or atypical behaviour
           	     n    changes in physical appearance
           	     n    changes in speech patterns
                                               EnCana Alcohol & Drug Policy — Contractor Compliance 7


   If an EnCana representative has reasonable grounds to believe a
   contract worker is unfit to be on the worksite, the contractor
   that employs the worker will be expected to remove the individual
   from the site using responsible escort procedures, and refer the
   individual for testing.

Post-incident testing
   Contractor staff may be subject to alcohol and drug testing as
   part of investigations into work-related incidents. The supervisor
   investigating the incident will determine which individuals were
   directly involved in the chain of acts or omissions leading up
   to the event and notify the contractor of any need for a test
   referral. Post-incident testing must be conducted as soon as
   reasonably practicable following an incident. Anyone referred
   for post-incident testing must not use alcohol or drugs, except
   prescribed drugs according to the prescription, within eight
   hours of the incident or before being tested or advised that a
   test is not required.

reasonable-grounds searches
   EnCana and our contractors can conduct investigations when
   there are reasonable grounds to believe that unauthorized
   alcohol or drugs are present on premises owned, contracted or
   otherwise controlled by the company. Supervisors are responsible
   for identifying situations where a search is justified. All searches
   at EnCana sites will be conducted under the direction of EnCana
   Corporate Security.

refusal to test
   Refusal to submit to a test, refusal to agree to disclosure of a test
   result to EnCana, or a confirmed attempt to tamper with a test
   sample are all considered serious violations of EnCana’s Alcohol &
   Drug Policy.
 EnCana Alcohol & Drug Policy — Contractor Compliance


                                         Testing standards
                                               Contractors are responsible for all testing
                                               requirements for their staff. Testing programs
                                               must meet EnCana’s standards, which are
                                               summarized below. Any specific requirements
                                               of operations or corporate groups must be
                                               communicated to contractors in advance.
                                               Accuracy and integrity. Sample collection,
                                               testing and reporting of results must be
                                               conducted in accordance with standards
                                               established by the U.S. Department of Health
                                               and Human Services and accepted in Canada
                                               in order to ensure the accuracy and integrity of
                                               results. Rigorous sample collection, storage and
                                               chain-of-custody procedures must be followed.
                                               Confidentiality. Except for the release of
                                               information in accordance with an alcohol and
     Bottoms up?                               drug policy and in situations affecting the health
                                               and safety of workers and the public, results of
      Aside from
      alcohol, the most                        all testing should be maintained by a designated
      commonly used                            company official and must be kept confidential.
      drug is cannabis                         EnCana should only be advised of a confirmed
      (marijuana/hash).                        violation of our policy or practices.
      Young, unmarried                         Testing focus. Testing must be conducted
      men are the most
                                               in post-incident and reasonable-grounds
      likely to abuse
                                               situations to determine the presence of
      alcohol and drugs.
                                               alcohol, cannabinoids, amphetamines,
     Substance Use and Injury:
     The ABCs, AADAC, 2003.
                                               methamphetamines, cocaine, opiates, and
                                               phencyclidine. The testing program should
                                               not include testing for other substances or
                                               medical conditions.
                                                    EnCana Alcohol & Drug Policy — Contractor Compliance 9


         Test methods. Alcohol tests should be administered by a
         calibrated breath-testing device that meets evidentiary standards
         and provides a printout of test results. In instances where a
         breath-testing device is not readily available, alcohol tests can
         consist of laboratory analysis of a urine sample, although prior
         agreement is required for this alternative procedure. All drug tests
         must be administered by urinalysis.
  	      sample collection. Collection of urine specimens and
         administration of alcohol tests must be performed by trained
         nurses or trained collection agents. In post-incident and
         reasonable-grounds testing, samples will be collected as soon as
         possible after the triggering incident, but collection attempts will
         end eight hours after the incident for an alcohol test,
         and 32 hours after the incident for a drug test.
  	      Urine sample analysis. Urine samples must be analyzed by a
         fully qualified laboratory, located either in Canada or the
         United States, and accredited by the U.S. Substance Abuse and
         Mental Health Services Administration.
  	      Test results. Confirmed positive test results must be reviewed by
         a trained and qualified Medical Review Officer, who will give the
         individual concerned an opportunity to explain the finding before it
         is communicated to EnCana.
  	      A positive alcohol test is one in which the blood-alcohol content is
         at or above 0.04 percent.



How much is too much?
      For the average person, a single drink
      can put them at or above 0.04 percent.
 0 EnCana Alcohol & Drug Policy — Contractor Compliance


                 A positive drug test is one in which the amount of drug in the
                 sample identified by the confirmation test is at or above the
                 cut-off levels established by the Department of Health and
                 Human Services for workplace testing programs, as indicated in
                 the following table.
          drug                       initial Test levels             Confirmation Test levels
                                                 (ng/ml)*                             (ng/ml)*
           Marijuana                                  50                                   15
           Cocaine                                   300                                  150
           Opiates
              Morphine                                     2,000                              2,000
              Codeine                                      2,000                              2,000
           Phencyclidine (PCP)                                25                                 25
           Amphetamines                                    1,000                                500
              Methamphetamine                              1,000                                500

          * An ng/ml means nanograms per millilitre. A nanogram is one billionth of a gram.
          A millilitre is one thousandth of a litre.


          violations
                 Any positive test result will be considered a violation of the
                 EnCana Alcohol & Drug Policy, whether or not the alcohol or
                 drugs were actually consumed on EnCana business or premises.
                 A positive test result, failure to report directly for a test, refusal to
                 submit to a test, refusal to agree to disclosure of a test result to
                 EnCana, or a confirmed attempt to tamper with a test sample are
                 all considered violations of these testing requirements.
                 Audits. EnCana reserves the right to audit the policy and testing
                 programs of its contractors to confirm compliance with
                 EnCana’s standards.
                 Concerns regarding contractor performance can be reported to
                 EnCana’s Integrity Hotline: 1-877-445-3222.
                                             EnCana Alcohol & Drug Policy — Contractor Compliance  



ConsEquEnCEs of a Violation
  If there is reason to refer any contractor staff for testing, the
  contractor will be expected to investigate the situation and
  proceed with a reasonable-grounds or post-incident test at
  EnCana’s direction, or of its own accord. The contractor must
  satisfy EnCana that no policy breach has occurred, or address
  violations in compliance with the policy.
  In the event of a positive alcohol or drug test, the contractor
  employing the individual who was tested will be notified and
  expected to escort the individual to a safe place. At EnCana’s
  discretion, the individual may be temporarily held out of service
  or reassigned, pending medical determination of fitness for work,
  assessment of a potential alcohol or drug problem, or completion
  of an investigation into a possible policy violation.
  Individuals in violation will not be allowed to return to their
  positions without the prior consent of EnCana. Consideration will
  be given to the job function performed, the safety of the work
  environment and any appropriate conditions governing return of
  the individual.
  Failure of contractors to meet these expectations or to conduct
  the required testing will be considered a breach of agreement,
  and may result in triggering penalty clauses, or suspension
  or termination of the agreement. Any violation of these policy
  provisions by a contract worker, including failure of an alcohol or
  drug test, or failure to complete the testing process, may result in
  permanent removal from EnCana worksites.




       Bottom line
       Failure to meet EnCana’s standards for preventing and
       responding to inappropiate alcohol and drug use could
       result in termination of agreements.
  EnCana Alcohol & Drug Policy — Contractor Compliance


          KEy DEfinitions:
                 Contractors are independent incorporated business entities
                 engaged to perform services for EnCana. Services and
                 deliverables are outlined in a written agreement between the entity
                 and EnCana. Individuals performing the services are engaged by
                 the business entity, which provides the business infrastructure to
                 manage its workforce. Contractors can be companies from whom
                 EnCana has selected one or more specific individuals to perform
                 a service (e.g. professional or technical specialists, temporary
                 staffing agencies), or companies EnCana has selected to perform
                 a service without specifying the individuals who will provide the
                 service (i.e. service providers such as document reproduction
                 services; services for drilling, completions and workovers). The
                 term contractor can refer to the business entity or an individual
                 it employs.
                 drug includes any drug, substance, chemical or agent the use
                 or possession of which is unlawful in Canada or requires a
                 personal prescription from a licensed treating physician, any
                 non-prescription medication lawfully sold in Canada and
                 drug paraphernalia.
                 drug paraphernalia includes any personal property which is
                 associated with the use of any drug, substance, chemical or
                 agent the possession of which is unlawful in Canada.
                 drug or alcohol test means a scientifically recognized test which
                 analyses an individual’s urine, breath or in certain situations,
                 saliva, for evidence of alcohol or drug exposure.
                 enCana business refers to all business activities undertaken in
                 the course of the company’s operations, whether conducted on
                 or off company premises. It includes those situations when an
                 individual is representing, or could reasonably be perceived as
                 representing the company in the performance of duties.
                 enCana premises includes but is not necessarily restricted to, all
                 land, property, structures, installations, vehicles and equipment
                 owned, leased, operated or otherwise directly controlled by the
                 company for the purpose of conducting company business.
                 enCana representative refers to the individual accountable for
                 a particular area or shift, including team leaders, lead hands,
                 superintendents, coordinators and others in supervisory positions.
                                                EnCana Alcohol & Drug Policy — Contractor Compliance  3


    Fit for work means being able to safely and acceptably perform
    assigned duties and responsibilities without any limitations due to
    the consumption of alcohol or use of drugs.
    medical review officer (mro) is a licensed physician certified
    as a Medical Review Officer who is independent of the company
    and who is responsible for receiving the laboratory report
    and reviewing any non-negative results with the employee to
    determine any alternative medical reasons for the result before
    reporting to the employer. The MRO makes the final decision on
    whether it is a verified positive, a verified refusal (adulterated or
    substituted) or a negative result.
    safety-sensitive position is a position in which an individual has
    a key and direct role in an operation where impaired performance
    could result in:
    n    an accident or incident affecting the health or safety of
         themselves, other employees, contractors, customers, the
         public or the environment, or
	   n    an inadequate response to an emergency or
         operational situation.
    In a key and direct role, the primary job function of the position,
    including non-routine or emergency duties, involves responsibility
    for actions or decisions which, if not performed correctly, could
    directly cause or contribute to:
	   n   a serious incident, or
	   n   an improper or inadequate response to a potentially
        serious incident.
    serious incident is defined by EnCana’s risk matrix and includes
    such events as:
    n   fatality
    n   long-term health impact or permanent disability
    n   evacuation of a community
    n   severe long-term or wide-spread environmental damage
  EnCana Alcohol & Drug Policy — Contractor Compliance


          alCohol & Drug poliCy ChECKlist
          for ContraCtors

                 Company:


                 Date:


                 Reviewed by:


                 All contractors doing business with EnCana must have an alcohol and
                 drug policy that meets EnCana’s standards. Only those companies
                 with a prior agreement (e.g. designated sole proprietors and other
                 small contractors) can choose instead to adopt EnCana’s Alcohol &
                 Drug Policy and Practices.
                 This checklist should be used as a guidance document and
                 referenced when used by EnCana to evaluate a contractor’s
                 alcohol and drug program.
                 All items in the checklist are reviewed in this booklet.




              Meets EnCana            Requirement                                     Identified gaps/
              requirement                                                             changes needed
              Yes/No                                                                  to resolve gap

                                      Policy and practices clearly apply to all
                                      contractor staff (i.e. employees,
                                      subcontractors, agents).

                                      Establish and define fitness for work as
                                      a basic performance requirement.

                                      Establish rules and prohibitions for use of:
                                      • alcohol
                                      • drugs

                                      Establish standards for safety-sensitive
                                      positions consistent with EnCana’s standards.
                                                EnCana Alcohol & Drug Policy — Contractor Compliance  5




Meets EnCana   Requirement                                          Identified gaps/
requirement                                                         changes needed
Yes/No                                                              to resolve gap

               Alcohol and drug testing program covers:
               • reasonable-grounds testing
               • post-incident testing
               • reasonable-grounds searches
               • refusals to complete testing process

               Testing standards and circumstances are
               consistent with U.S. Department of
               Health and Human Services standards.

               Testing standards meet EnCana
               requirements for:
               • accuracy and integrity
               • confidentiality
               • testing focus
               • test methods (particularly involvement of
                 a Medical Review Officer)
               • sample collection
               • urine sample analysis
               • test results

               Procedures are in place to take appropriate
               action on impaired driving charges.

               Consequences for policy or practices
               violations are clearly defined.
  EnCana Alcohol & Drug Policy — Contractor Compliance


          notEs
                 EnCana Alcohol and Drug Policy — Contractor Compliance Programs 




                                                                            Printed in Canada December 2006




     www.encana.com
Integrity Hotline: -877-445-3222

				
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