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					 APPALACHIA CONTRACTOR FORUM
Welcome     & Introduction    All
CSMP    & CP                  Bill Wester & Tracy Page
Setting   the Stage           Mike De Witt
Life   Saving Rules           Mike De Witt
Learning's   from Incidents   Paul Broering
Break                         All
Training                      Paul Broering
Operations   Update           Wells Superintendents
Charter                       Shawn Keane
Breakout   Session            All
Wrap-up    and Close          Mike De Witt & Dean Frakes
Lunch                         All

 Bill Wester                         Tracy Page
 Contractor HSE Management           Contracts & Procurement



                                                               1
PENN COLLEGE – EVACUATION
          UPPER PARKING DECK (muster area)




                                             2
WELCOME AND INTRODUCTIONS


   In the interest of time, one representative from each
    company, please give:
     Your    Name
     Position

     Service    provided to Shell
     Brief   intro of your team




                                                            3
     SHELL APPALACHIA – Leadership Team




                                Shell Appalachia
                                Leadership Team


Mike De Witt     Rick Mykitta     John Storslett   Sylvie Tran   Bill Langin
Wells Delivery    Production         Projects      Development   Exploration
  Manager          Manager          Manager          Manager      Manager




                                                                               4
     SHELL APPALACHIA – Wells Group



                                Mike De Witt
                                   Wells
                                  Delivery
                                  Manager
                  Wayne Mc
Del Southwell                    Robert Smith
                    Leod                        Paul Broering   Tom Swanson
   Drilling                      Completions
                   Drilling                      HSE Tech         RT Team
Superintenden                   Superintenden
                Superintenden                    Supervisor         Lead
      t                               t
                      t




                                                                              5
SHELL APPALACHIA – Contractor Management

                          Contractor HSE
                           Management



 Bill Wester          Stephan                           Robert Pickering
                                       Hana Necas
 Team Lead           Buffington                             HSEMS
                                     ISNetworld Focal
   (Wells)          (Production)                          Evaluation




                            Contracts &
                            Procurement



          Tracy Page          Brian Vogel       Jeremy Turpin
        Appalachia Lead     Production Focal    Projects Focal


                                                                           6
CONTRACTOR HSE MANAGEMENT PROCESS


   Identify/develop work scope to be performed
   Risk Rank the work scope (H,M,L)
     •   High/Medium risk require ISNetworld subscription to
         tender
   Select Mode (1,2, or 3)
   Review potential contractors
   Stoplight banding (R,Y,G)
     •   Red requires variance and HSE Improvement Plan prior
         to work
     •   Yellow requires HSEIP within 30 days
     •   Green meets Shell’s expectations (annual HSEIP)
 Contractor   Orientation
                                                                7
 Performance    Monitoring/HSE Communications (forums)
SETTING THE STAGE




                    8
HSSE Update & Sustainable Development


                       LICENSE TO OPERATE – Core Values

                        Operating Safely, Responsibly, & Minimizing
                       Impact
                        Goal Zero – Relentless Pursuit of No Harm
                        Personal Safety
                        Process Safety
                        Environment and Communities

                       SUSTAINABLE DEVELOPMENT:

                        Safety: Shell and Contractor
                        Water Management + Air emissions
                        Roads and Traffic
                        Good neighbor in community
                        Cumulative Impact

                       OUR RESPONSIBILITY
      HSSE Performance
INDUSTRY                               APPALACHIA YEAR END ‘10


   BP Horizon                            8 Recordable Injuries (TRCF 9.4)
                                        13 High Potential Incidents (HiPO)
   Road Transportation Incidents
                                        24 Motor Vehicles Accidents
   Worker Injuries                    (MVA)
   Well Control Incidents              119 Loss of Primary Containment
                                       (LOPC)
   Groundwater Issues
                                        Notice of Violations (NOV’s)
                         Onshore Gas TRCF ’10 = 3.1
                         67 HiPO’s
    HSSE Performance
BUILDING A CULTURE                  PERFORMANCE TO DATE


Contractor Assessments -              8 Recordable Injuries
Shutdowns                            13 High Potential Incidents (HiPO)
 HSE Onboarding                     24 Motor Vehicles Accidents
 Contractor Orientation Training   (MVA)
(+2000)                              119 Loss of Primary Containment
 Minimum Requirements for Key      (LOPC)
Standards                            Notice of Violations (NOV’s)
 Operations Reviews
 Additional HSE Staff
 Life Saving Rules
 Road Transport Plan and Staff
 Engaged Regulators
 Job Safety Analysis (JSA)
 Gas Migration – Well Design
LIFE SAVING RULES




                    12
 Fact
                                   Goal Zero
                                   No Harm
                                                    B
350+ Fatalities
2000 – 2008


                  Compliance with the
                  rules would have saved many of these lives
 A                (mostly contractor staff)
Shell will…
                                                                No Harm
                                                                Goal Zero
                                                                            B

 •   Identify clear and consistent Life-Saving Rules

 •   Expect that everyone complies with the Life-Saving Rules

 •   Investigate each potential violation

 •   Hold people accountable: Management, Supervisors,
     Staff of both Shell and Contractors/Sub-Contractors
 Life-Saving Rules – what are they?

                                                                 Verify isolation before
                                                                 work begins and use the          Obtain authorization   Obtain authorization before
          Work with a valid work    Conduct gas tests when       specified life protecting        before entering a      overriding or disabling safety    Protect yourself against a
          permit when required      required                     equipment                        confined space         critical equipment                fall when working at height



      1                               2                            3                              4                      5                                6




      7                               8                            9                              10                     11                               12




     Do not walk under a             Do not smoke outside         No alcohol or drugs        While driving, do not use         Wear your seat belt         Follow prescribed Journey
     suspended load                  designated smoking           while working or           your phone and do not                                         Management Plan
                                     areas                        driving                    exceed speed limits


Note: Commuting, alcohol in social settings and smoking in office environments are out of scope
Consequences of Rule-breaking
•   Incidents and rule-breaking will be investigated thoroughly

•   If the violator is aware of the rule or required procedure through training, experience or communication, and
    did not comply with that rule or procedure, the maximum appropriate disciplinary action will be applied.

•   Failure to comply with any Shell Life-Saving Rule will result in disciplinary action. For employees of contractors
    or sub-contractors, this means removal from site and disqualification from future Shell work.

•   In addition, if a supervisor (Shell or Contractor) sets the conditions for rule breaking or fails to follow through
    if one is broken, maximum appropriate disciplinary action will apply.
Working together on the Rules
Shell’s expectations:

•     Ensure that all your staff and your (sub) contractor staff assigned to Shell business have been verifiably
      briefed on the Shell Life-Saving Rules by March 1 2011.

•     Embed Life-Saving Rules in induction processes for staff to work for Shell as soon as possible and no later
      than end June 2011.

•     (Sub) contractor compliance with Life-Saving Rules is the accountability of the contractor at all times.

•     Actively report on Life-Saving Rule breaking.

•     Verify, measure and continuously improve compliance.
        HOW MANY DAYS SINCE DRILLING HAD:

A Fatality
                                                              156 – 156
   (**None since start-up of PA on 7-29-2010)
                                                              156 – 156
A Lost Time Injury
   (** None since start-up of PA on 7-29-2010)


An HPI (High Potential Incident)
                                                               9 – 31
   (** NM – Drill rod falls from trailer – 12-22-10)


Harm – (OSHA Recordable Injury)
                                                               16 – 81
   (**MTC – Employee’s head contacts matting – 12-15-10)

                                                              156 – 156
A Spill (Reportable HC Spill/Release)
   (** None since start-up of PA on 7-29-2010)


MVA– (Motor Vehicle Accident                                  64 – 64
   (** MVA – Damage to truck bumper and fender – 10-28-10)


                                                                          19
        HOW MANY DAYS SINCE COMPLETIONS HAD:

A Fatality
                                                               156 – 156
   (**None since start-up of PA on 7-29-10)
                                                               156 – 156
A Lost Time Injury
   (** None since start-up of PA on 7-29-10)


An HPI (High Potential Incident)
                                                                14 – 57
   (** NM–Hydraulic valve closed during FRAC ops. 12-17-10)


Harm – (OSHA Recordable Injury)
                                                                73 – 81
   (** MTC – Lime Contacted Eye, 10-19-10)


A Spill (Reportable HC Spill/Release)
                                                               156 – 156
   (** None since start-up of PA on 7-29-2010)


MVA– (Motor Vehicle Accident                                    1 – 57
   (** MVA-Truck backs into car, 12-30-10)


                                                                           20
HIPOS – 2010


                            HIPO'S 2010


     7
     6
     5
     4

     3
     2
     1
     0
         Drops   Perssure      MVA    Hyd Valve   Union




                                                          21
(SPILLS) - LOPC Totals for 2010




                                  22
          Spill Volumes 2010



                6000



                5000



                4000
Gallons




                3000



                2000



                1000



                     0
                         Aug     Sept    Oct      Nov      Dec    Grand Total
          Completions    59.5    3635    288      10      362.5      4355
          Drilling        52     120    75.75    285.25   587        1120
          Grand total    111.5   3755   363.75   295.25   949.5      5475




                                                                                23
Spill Causal Factors




                       24
                    UA Onshore Gas “Wells” - Early Information Bulletin

Fountain #: 563953                                                                                                               Location: US-PA                                                                                                                                                                               Date: 13 Sept 2010
                                                                                                                                 “MVA-DUMP TRUCK LOST CONTROL”
What happened: A tri axle dump truck hauling cuttings dried with sawdust lost control while descending a steep grade on an access road. The
vehicle ended up veering off the road into the ditch where the truck eventually contacted the culvert and rolled. Driver sustained no injuries,
additional information to follow as investigation is ongoing.




                                                                                                                                                                                                                   Preliminary Information Points:
Insert photo or diagram in this box. Take photos on “low” resolution. Use contrasting Arial bold font for
                                         any text descriptions.
                                                                                                                                                                                                                   • Driver had been recently hired and received 2 days of training with a mentor.

                                                   GENERAL PROCEDURE FOR EIB HANDLING                                                                                                                              • Driver’s past experience had been driving a truck with an automatic transmission.
                                                                                                                                                                                                                     This truck had a standard transmission.
Step 1 – Be sure that you have deleted any other templates previously used. This template is the only one
currently valid to use in Onshore Gas.                                                                                                                                                                             • No posted signage alerting driver of the steep grade.

Step 2 - When the EIB is completed, send it to your HSE Supervisor for second level review. He/she will                                                                                                            •         Driver was wearing his seat belt, which likely contributed to his sustaining no
review it and forward it to the HSE Operations Manager for third level review.                                                                                                                                              injuries.

Step 3 - The HSE Operations Manager will review the EIB and submit it to the EIB focal point for final                                                                                                             • Excessive speed was a contributing factor due to improper shifting, and braking
review and quality checks, addition to FIM & Livelink, and distribution.                                                                                                                                             techniques.




 This Early Information Bulletin provides preliminary information; a detailed investigation is pending. For internal use only.
 This document is provided for information purposes only and is not and must not be construed as providing technical advice. If such advice or assistance is necessary, the services of an appropriate qualified professional should be retained. You must not rely on this document to address any general or specific questions that may apply to your operations or to a
 particular set of facts. Shell Exploration and Production Co. and its affiliates make no claim, representation or warranty, express or implied, as to the completeness, correctness or usefulness of this document to produce any particular results with regard to the subject matter contained herein or that this document will satisfy the requirements of any applicable federal,
 state or local laws and regulations. Shell Exploration and Production Co. and its affiliates make no representation or express or implied warranty and assumes no liability of any kind, resulting from the use or reliance on this document.
 EIB Template 27 Aug 2010
             UA Onshore Gas Wells - Early Information Bulletin
Fountain #: 575578                                                           Location: US-PA                                                                                                                    Date: 14 Oct 2010
                                                                        NM – MAN RIDER COUNTERWEIGHT LINE PARTS.
What happened: While lifting the counterweight for man rider to the derrick, the counterweight lifting line parted, dropping
counter weight (weighing 15.8 pounds) approximately 40 feet to the rig floor. A red zone was established and the closest
person was 15 feet away. Investigation is ongoing.




                                                                                                                                          Preliminary Information Points:

  Counterweight                                                                                                                           • No-Go zone was established and followed.
 weighing 15.8 lbs
                                                                                                                                          • In two incidents (dated back from 2008) the Maxi
                                                                                                                                            Rider counter weight fell after it was improperly
                                                                                                                                             attached.

                                                                             Carabineer had been                                          • Proper Counter Weight Attachment Instructions were
                                                                           attached through eye of                                          not followed per manufacture recommendations.
                                                                           cable. Once weight was
                                                                                                                                          • Attaching the carabineer directly into the eye of the
                       Homemade cable                                          hoisted, the cable
                                                                                                                                            secondary safety lanyard, instead of directly into the
                                                                              slipped through the                                           eye of the counterweight was not perceived as a
                                                                                 crimped clamp                                              hazard.

                                                                                                                                          • No JSA was present for the job task.


 This Early Information Bulletin provides preliminary information; a detailed investigation is pending. For internal use only.
 This document is provided for information purposes only and is not and must not be construed as providing technical advice. If such advice or assistance is necessary, the services of an appropriate qualified professional should be retained.
 You must not rely on this document to address any general or specific questions that may apply to your operations or to a particular set of facts. Shell Exploration and Production Co. and its affiliates make no claim, representation or warranty,
 express or implied, as to the completeness, correctness or usefulness of this document to produce any particular results with regard to the subject matter contained herein or that this document will satisfy the requirements of any applicable
 federal, state or local laws and regulations. Shell Exploration and Production Co. and its affiliates make no representation or express or implied warranty and assumes no liability of any kind, resulting from the use or reliance on this
 document.                                                                                                                                                                                                                 EIB Template 27 Aug 2010
BREAK




        27
TRAINING


   Paul Broering – Senior HSE Technician
      To   discuss training plans and proposals for 2011




                                                            28
    CONTRACTOR ORIENTATION



   Who is it for?
   The Contractor orientation is for any contractor who will be working on a Shell location.
   Why should I attend an Orientation training?
   Introduction to Shell’s HSE Policies and procedures. Set clear and concise Expectations for the contractors.




                                                                                                                   29
    CONTRACTOR ORIENTATION – AGENDA

• Core Values - Shell                     •Short Service Employees - Shell
•HSE Commitment & policy - Shell          •Out of Position Workers – Shell
•GOAL ZERO - Shell
                                          •Temporary Pipe Work – API/ANSI
•Life Saving Rules - Shell
                                          •Permit to Work – OHSA
•Workplace Hazard Controls – OHSA
                                          •Job Safety Analysis – OHSA
•Road Transport Hazards – DOT
•Lifting & Hoisting – OSHA                •General Operations - Shell
•Dropped Objects - OHSA                   •Lock Out / Tag Out – OHSA/Industry
•Pressure – ANSI/API                      •Forklift - OHSA/ASME
•Falls from Heights – OHSA                •Knives - Shell
•Electricity – OSHA/NEC
                                          •Fit for Duty – Shell/DOT
•Incident Reporting & Case Management -
           OHSA                           •Road Transport – DOT
•Haz-ID - Shell                           •ISO 14001 – International Standards
•Haz-Com – OHSA                           Organization
•Medical Emergency Response - Shell


                                                                                 30
REGULATORY REQUIREMENTS FOR L&H


  Persons operating hoisting equipment are required to be trained per OSHA on the following
  equipment:
    Mobile Cranes (State License Required)
    Aerial Work Platforms
    Forklifts/Loaders
    Base Mounted Winch
    Overhead Cranes
    Overhead Hoists
Contact Information for Shell L&H SME’s


    Doug Manning
     doug.manning@shell.com
     504.214.6213


    Kenneth Reynolds
     k.reynolds@shell.com
     504.214.0385
SHELL APPROVED TRAINING PROVIDORS




   Houma Training Center
   279 Thompson Rd            Jarod Randall
   Houma, LA 70363            Operations Manager
   Tel. 985.873.7969          14072 Route 6
   Cell 985.856.2177
                               Mansfield, PA.16933
   Fax 985.873.7934
   dudlene.armond@sparro Office: 570-724-SAFE
    wsgroup.com            (7233)
   www.sparrowsgroup.com Fax : 570-724-7245

                               Cell:   337-501-4080
OPERATIONS UPDATE


   Del Southwell – Drilling Superintendent
   Wayne Mc Leod – Drilling Superintendent
   Robert Smith – Completions Superintendent




                                                34
CORE CONTRACTOR FORUM CHARTER (draft)


   What is the goal of the forum?


   Who is expected to attend?


   Is this the right date/time?




                                        35
BREAKOUT SESSION


   What are some of the barriers with the ongoing transition?


   What information would you like to see shared in this forum over the next 6 months?


   What are we going to do in the next 6 months to reduce our exposure?




                                                                                          36
QUESTIONS?


   Open Discussion/ Q&A
   Next Forum:      ? (TBD)




                               37

				
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