Guideline for Hazard Analysis (rev.99) by murplelake79

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									                             Petroleum Development Oman L.L.C.



                                UNRESTRICTED                             Doc. Id. : HSE/97/05
                                September 1997                           Author : Thomas Anwyl, TSE/53




                  Hazard Management in Contracts
                           Guidelines




Authorised for Issue:



Signed: ........................................................ 30 September 1997
        A.M. Riyamy, TSEM
        Corporate Functional Discipline Head Safety and Environment




Keywords: Hazard, Risk, Contract Management Plan, HSE Assessment, HSE Specification, Hazard and Effects, HEMP


This document is the property of Petroleum Development Oman, LLC. Neither the whole nor any part of this document may be
disclosed to others or reproduced, stored in a retrieval system, or transmitted in any form by any means (electronic, mechanical,
reprographic recording or otherwise) without prior written consent of the owner.
CONTENTS

1       INTRODUCTION ..................................................................................................................................... 2

1.1         Background ..................................................................................................................................................................... 2

1.2         Purpose ............................................................................................................................................................................ 2

1.3         Distribution / Target Audience ...................................................................................................................................... 3

1.4         Document Structure ........................................................................................................................................................ 3


2       HAZARD MANAGEMENT IN CONTRACTS, GUIDELINES ........................................................ 4

2.1         Scope................................................................................................................................................................................. 4

2.2         Related Standards ........................................................................................................................................................... 4

2.3      The Hazard and Effects Management Process ............................................................................................................. 5
   2.3.1     Objective of HEMP .................................................................................................................................................. 5
   2.3.2     When to apply HEMP............................................................................................................................................... 5
   2.3.3     HEMP explained ...................................................................................................................................................... 5
   2.3.4     HSE Risk .................................................................................................................................................................. 9

2.4      HEMP in the Contract Management Plan ................................................................................................................... 9
   2.4.1    Contract Strategy .................................................................................................................................................... 10
   2.4.2    Contract Scope and Definition ............................................................................................................................... 10
   2.4.3    HSE Assessment ..................................................................................................................................................... 10
   2.4.4    HSE Specification .................................................................................................................................................. 10
   2.4.5    Preliminary Contract HSE Plan .............................................................................................................................. 10
   2.4.6    HSE Performance Reports ...................................................................................................................................... 11


3       APPENDICES .......................................................................................................................................... 12


Appendix I                 Glossary of Terms, Definitions, Abbreviations
Appendix II                Checklist for HEMP in the CMP
Appendix III               HEMP in detail
Appendix IV                Managing HSE Risk
Appendix V                 Generic Hazard Listing
Appendix VI                HSE Cases currently active in PDO
Appendix VII               Templates for recording Hazards and Effects
Appendix VII               User Feedback Sheet

Revision History

                     Description                                                                          Revision number                    Date issued
                     Original procedure SRD/G/03                                                          0                                  Mar-94
                     Revised to incorporate EP-95 0300                                                    1                                  Sept-97




Hazard Management in Contracts Guideline (HSE/97/05)                                             revision 1, September 1997                                            Page 1 of 12
1 Introduction

1.1 Background

This document has developed from SRD/G/03 ‘Guidelines for Hazard Management’. The revision was required to reflect:

       change from Safety Management Systems (SMS) to Health, Safety and Environment Management Systems (HSE-MS);
       introduction of the Hazard and Effects Management Process (previously, the Hazard Management Process had been
         described) in to the HSE-MS;
       increased emphasis on risk management within HSE-MS;
       progression of Company Safety Cases to HSE Cases describing only major hazards;
       introduction of EP 95-0000 series of documents which reflect ‘best practice’ in HSE management;
       introduction of the Corporate Management Framework (CMF);
       introduction of a new document hierarchy into PDO.


1.2 Purpose

This guideline supports the procedure 'HSE Management of Contracts' HSE/97/02. It has been produced to record best practice
and to give help and assistance on how the requirements of the procedure can be achieved. The guideline contain no mandatory
requirements. This guideline:

       describes the Hazard and Effects Management Process (HEMP);
       recommends when and how it is best practice to apply HEMP, related to the Contract Management Plan (CMP);
       describes the HSE Risk Matrix and expands upon best practice for managing HSE risk;
       recommends when and how to use the HSE Case for managing risk in contracted activities;
       directs the reader to further information on structured tools for use in HEMP;
       provides a listing of some generic hazards to aid application of HEMP.

This guideline provides general guidance for all contracted activity within PDO’s operations. Because of this not all of the
issues covered will be relevant for all contracts. Users should select those issues which are most appropriate to their needs and
which are most relevant to their particular contract. The guidelines can not be definitive; the omission of an issue from a
guideline should not be taken to imply that the issue is unimportant and can be neglected.

The guidance follows the chronological sequence of events in the Contract Management Plan. In particular it refers to:

       Contract Strategy;
       Contract Scope definition;
       HSE Assessment;
       HSE Specification;
       Preliminary Contract HSE Plan;
       HSE Performance Reports.

The HSE Management of Contracts Flowchart from HSE/97/02 is repeated in Figure 1 with those areas that this document
provides guidance upon, highlighted in red.




Hazard Management in Contracts Guideline (HSE/97/05)             revision 1, September 1997                    Page 2 of 12
                                                     Prepare preliminary
                                                         Contract
                                                      Management Plan



                                                         Establish:
                                                     Contract strategy
                                                Contract Scope & Schedule
                                                                                                                           PLANNING AND
                                                     HSE Assessment &                                                      INVITATION TO
                                                      HSE Specification                                                    TENDER


                                                   Pre-qualify Contractors
                                                        (if required)



                                                         Finalise
                                                         tender
                                                         document


                                                                                                                          TENDER PERIOD
                                                        Contractor
                                                    prepares preliminary
                                                     Contract HSE plan



                                                            Review
                                                            tender                                                       EVALUATION AND
                                                                                                                         CONTRACT AWARD


                                                   CONTRACT AWARD




                                           Finalise                  Hold local kick-off
                                        Contract HSE Plan                                                                MOBILISATION
                                                                        meeting




                                                    Monitor Contract HSE
                                                    Plan implementation                                                  EXECUTION
                                                     and performance



                                                     Maintain same level
                                                      of vigilance as                                                    DE-MOBILISATION
                                                      during execution

                                                                                                Feedback to Work
                                                    Contract Performance                      Category Custodian for     CLOSE-OUT
                                                         Report                               update of register and
                                                                                              future pre-qualification


                                         Figure 1. HSE Management of Contracts Flowchart


1.3 Distribution / Target Audience

The Target audience is Contract Owners, Holders and Company Site Representatives. In addition contractor management and
in particular, Contract Manager, contractor Site Representative may benefit from exposure to these guidelines. A ‘User
Feedback Sheet’ is provided in Appendix VIII for any reader who has comments on the guidance contained, or who identifies
additional issues on which they consider guidance is necessary.


1.4 Document Structure

The document complies with the requirements of a Business Control Guideline as defined in PDO’s document control system.
It contains three major sections:

Main Section      Content                          Purpose
Introduction      Background                       How the current document developed
                  Purpose                          What the current document is expected to achieve
                  Distribution                     Who is expected to use the document
                  Document Structure               Overview of contents
Guideline         Scope                            The breadth of Company activities covered by the document
                  Related Standards                Other PDO Business controls which should be referenced when
                                                   using this guideline
                  Description                      The actual guidance provided by the document
Appendices                                         Detailed information that expands upon the guidance offered




Hazard Management in Contracts Guideline (HSE/97/05)                                       revision 1, September 1997                      Page 3 of 12
2 HAZARD MANAGEMENT IN CONTRACTS, GUIDELINES

2.1 Scope

The procedure HSE/97/02 ‘HSE Management of Contracts’ requires hazard assessments to be performed by the Contract
Holder when preparing the HSE Specification for the contract and by the contractor when preparing their Contract HSE Plan.

The Hazard and Effects Management Process (HEMP) is the method recommended for use in hazard assessment. Correctly
applied it ensures hazards and their effects have been fully identified, assessed, controlled and recovered from in the event of
loss of control. This guideline describes HEMP and how it can be applied in the HSE Management of Contracts. It then
provides guidance on HSE risk and the recommended methods for managing HSE risk in contracted activities including the
HSE Case.

It directs the reader to other documents which provide overviews on some of the tools and techniques that can be used to
practice HEMP and provides a generic listing and brief description of some of the more common hazards found in Exploration
and Production (E&P) operations.


2.2 Related Standards

Business control documentation supported by this guideline is listed below.

   Management System             Health, Safety and Environment Management System                       HSE/97/11
   Policy                        PDO HSE Policy
   Code of Practice              No HSE Code of Practice currently exists to support these
                                 documents
   Procedure                     HSE Management of Contracts Procedure                                  HSE/97/02
                                 Procedure for the Registration of Contractors                          FCS/PR1
                                 Contract Procedures                                                    FCS/PR2
   Specification                 HSE Standards Manual, Chapter 2                                        HSE/96/01
                                 HSE Specification proforma (available from Unit Contract
                                 Sections)
   Guidelines                    HSE Training Guide                                                     HSE/97/03
                                 Guidelines for Contractor HSE Pre-qualification                        HSE/97/04
                                 Guidelines for the Content and Assessment of Contract HSE Plans        HSE/96/02
                                 Guidelines for the Monitoring of HSE in Contracts                      HSE/97/06

Reference documents used in the writing of this document and to be consulted if more information is required are listed below.

   SIEP EP 95-0000 series            HSE Management Systems                                             EP 95-0100
                                     Management of Contractor HSE                                       EP 95-0110
                                     Competence Assurance for HSE Critical Activities                   EP 95-0120
                                     Overview Hazard and Effects Management Process                     EP 95-0300
                                     Implementing and documenting an HSE Management System              EP 95-0310
                                     and HSE Cases
   British Standards Institute       Guide to Occupational health and safety management systems         BS 8800
   E&P Forum                         Guidelines for the Development and Application of Health,          6.36/210
                                     Safety and Environmental Management Systems
   Shell Health, Safety and          Risk Assessment Matrix                                             March 1996
   Environment Committee




Hazard Management in Contracts Guideline (HSE/97/05)             revision 1, September 1997                     Page 4 of 12
2.3 The Hazard and Effects Management Process

Definition of HEMP The Hazards and Effects Management Process (HEMP) is defined as;"The structured hazard analysis
methodology involving hazard identification, assessment, control and recovery and comparison with screening and performance
criteria." (Source EP 95-0300).


2.3.1    Objective of HEMP

To provide a structured approach towards the analysis of hazards throughout the life cycle of an asset.

This is achieved through use of structured tools and techniques that allow hazards to be identified, assessed, and when fully
understood in both situation and context, to be controlled and if necessary recovered from if control is lost.


2.3.2    When to apply HEMP

HEMP should always be applied at the following times:

       At the start of each life cycle phase for an asset;
       Prior to any major change (structural, operational, or maintenance) to an asset;
       Prior to the execution of an activity;
       Prior to the introduction of a new hazard to the operation;
       Prior to the start of any contracted operation.

Further triggers for the application of HEMP should be when:

       hazards appear to pose a significant threat or;
       established controls are known to be inadequate to meet standards or;
       continuous improvement in HSE performance is required.

In relation to HSE Management of Contracts, when to use HEMP is described in detail in section 2.4.

Demonstration of HEMP in its most complex form is an HSE Case. This is required only when the risks from the hazard are
assessed as being extreme. For all other levels of risk, HEMP is demonstrated through application of procedures, checklists
and structured ways of working. At its simplest HEMP is no more than a site HSE discussion, commonly called a 'toolbox talk'.


2.3.3    HEMP explained
The HEMP process originally consisted of four steps, Identify, Assess, Control, Recover. These have now been expanded to
five steps which better focus the process on the management of risk, rather than the management of the hazard in isolation. The
five steps are summarised below:

         1. Identification of Hazards and Effects
         A systematic search for hazards and their effects, to include hazardous events, hazards, threats, escalation factors
         2. Evaluation of risk
         Assessment of hazard and effects to establish probability of occurrence and severity of exposure
         3. Recording of Hazards and Effects
         Formal record of assessment using pre-defined forms
         4. Comparison with Objectives and Performance Criteria
         Gap analysis between assessed risk and acceptable risk (against PDO standards)
         5. Risk Reduction Criteria
         Decision on best approach to reduce risk based upon cost benefit analysis

HEMP in general is explained in Table 1 and shown in Figure 2. For a more detailed explanation refer to Appendix III. A
template for Contract Holders experienced in applying HEMP is provided in Appendix II.




Hazard Management in Contracts Guideline (HSE/97/05)             revision 1, September 1997                  Page 5 of 12
Hazards, which have to be identified, assessed, controlled and recovered from, are the starting point for the HEMP process and
can be identified and assessed in a number of ways. These are:
      
            experience / judgement
            checklists
            standards
            structural review techniques


                                                                        Structured Review




                                                           il
                                                       e ta
                                                                        Techniques




                                                     o fd
                                                                    Standards


                                                  el
                                                  ev
                                                gl
                                             sin
                                                                Checklists
                                         rea
                                       Inc




                                                         Experience /
                                                         Judgement


                                    Identify Hazards
                                                                  Evaluate Risks
                                       and Effects
                                                IDENTIFY             ASSESS     Record Hazards
                                                                                  and Effects
                                                            HEMP
                                                RECOVER             CONTROL
                                    Establish Risk                           Compare with
                                      Reduction                             Objectives and
                                      Measures                            Performance Criteria

                                 Figure 2. Approaches to hazard assessment which support HEMP

Experience / judgement

The knowledge of experienced staff provides a sound basis for hazard identification and assessment. They can draw on
experience gained from different aspects of Company operations and the E&P business in general in different locations.
Practical staff experience gained in the field and feedback from incidents, accidents and near misses is invaluable.

Checklists

These are a useful way of ensuring that known hazards and threats have all been identified and assessed. The use of checklists
(such as provided in Appendix V) however, must not be allowed to limit the scope of review as the situation and context in
which they were compiled may not be directly applicable to the situation currently under review. They are normally drawn up
from standards and operational experience and focus on areas where the potential for mistakes is high or where problems have
occurred in the past. Hazard Registers taken from the life cycle of previous developments are particularly useful as a basis for
checklists.

Standards

These reflect collective knowledge and experience, accumulated on the basis of national or international operations. They
generally focus on hazard assessment and control, since the hazard is inherent and recognisable. Standards usually contain
information on hazards applicable to a particular type of operation. The designer of a pressure vessel relief system, for example,
can use an ERD or ISO Standard to find detailed guidance on the relief cases that should be considered. In some cases
compliance with prescriptive standards alone will reduce risk 'as low as reasonably practicable'. Similarly, the acceptability or
otherwise of emissions or discharges to the environment, or release of agents harmful to health can be assessed by reference to
environmental quality standards and occupational health exposure limits. Standards can provide guidance on all four steps of
identify, assess, control and recovery. Where new or non-standard designs are concerned, especially ones containing

Hazard Management in Contracts Guideline (HSE/97/05)                 revision 1, September 1997               Page 6 of 12
configurations with multiple interfaces, it is unlikely that all the possible interactions can be identified using standards alone.
In more complex facilities other hazard management tools will be required.

Structured review techniques

A range of structured review techniques to support all of the above are described in the EP 95-0000 series of documents. Some
of these techniques were initially developed for use in safety management others have been specifically developed for
environmental and occupational health management often using similar principles as for safety management. One example is
HAZID (Hazard Identification) and another is HAZOP (Hazard and Operability Study). With interpretation, these techniques
are also capable of addressing emissions, discharges, waste generation and occupational exposure to hazardous substances, etc.
Many of these techniques also contain screening and acceptance criteria for Controls.




Hazard Management in Contracts Guideline (HSE/97/05)              revision 1, September 1997                     Page 7 of 12
                                                                               Table 1. The Hazard and Effects Management Process summarised
HEMP Stage           Objective of Stage                                    Result of HEMP                       Source of Information                          Tools & Techniques available
Identification of   To identify, the hazardous events (consequences) to    List of potential hazardous events   Individual knowledge                           Brainstorming
hazards and effects be avoided, to identify the hazards, threats and       List of potential hazards            Group knowledge                                Hazard Identification. HAZID (EP 95-0312)
                    escalation factors which might contribute to that      List of potential threats            Contractor knowledge                           Health Risk Assessment. HRA (SHSEC Sept. 94)
                    hazardous event.                                       List of potential Escalation         Established activity documentation (business   HRA and exposure evaluation for chemical agents (SHSEC 95)
                                                                           Factors.                             reports, inspections, audits, incident         Human Factors (EP 95-0324)
                                                                                                                investigations etc.)                           Environmental Assessment. EA (EP 95-0370)
                                                                                                                Specialist reports (HAZAN, HAZID, SAFOP        Soil and Groundwater Guides (EP 95-0385, 0386, 0387).
                                                                                                                etc.)                                          Social Impact Assessment (EP 95-0371)
                                                                                                                Specialist tools (QRA, HAZID, etc.)            Hazard and Operability Study. HAZOP (EP 95-0313)
                                                                                                                HSE Cases                                      FIREPRAN (EP 95-0350)
                                                                                                                Task Hazard Control Sheets                     SAFOP (DEP)
                                                                                                                Generic hazard and effects listing (TSE/1)     Job Hazard Analysis. (EP 95-0311)
                                                                                                                EP 95-0300                                     Tripod Beta (EP 95-0321)
                                                                                                                                                               Tripod Delta (EP 95-0320)
Evaluation of risk   To assess the risks to health, safety and             For each hazardous event, hazard,    HSE Risk Matrix                                Most of the above techniques, plus:
                     environment from the identified hazardous events      threat, escalation factor an         Incident Reports                               HSE Risk Matrix
                     by consideration of;                                  evaluation of:                       PDOTRACK                                       Quantitative Risk Assessment. QRA (EP 95-0352)
                     1. The likelihood of occurrence;                          The probability of             HSE Info Tool                                  Historical records (EP 95-1020, PDOTRACK, QRA Datasheets – E&P Forum)
                     2. The severity of exposure.                                occurrence                     QRA Datasheets (E&P Forum)                     Consequence Analysis as in:
                     Risks are to be assessed against established and          The severity of exposure       Oman Legislation                               Physical Effects Modelling (EP 95-0314)
                     demonstrably effective controls (barriers).           List of appropriate standards        HSE Standard Manual (HSE/96/01)                Environmental Dispersion Models (Monitoring air quality; EP 95-0376;
                                                                           which are in place and enforced      EP 95-0000 series                              Monitoring water quality; EP 95-0381)
                                                                           List of hazardous events for         International Standards (BSi, API, ISO etc.)   Oil Spill Trajectory Models
                                                                           which standards are not in place                                                    Risk Assessment Models for Contaminated Soil (Environmental quality
                                                                           or not acceptable.                                                                  standards for soil and groundwater; EP 95-0385; Setting priorities for
                                                                                                                                                               contaminated soil and groundwater; EP 95-0387)
                                                                                                                                                               Groundwater models
Recording of        To record the results of the identification and        Hazard Registers                     THESIS software (TSE/1)                        THESIS software
hazards and effects evaluation stage for those hazardous events where      Activity Specification Sheets        WHIMS (BOS/7)                                  WHIMS software
                    risk is significant;, so that;                         Task Specification Sheets                                                           HSE-MS
                    1.     The information can be communicated to          Task Hazard Control Sheets.                                                         HSE Case
                           others;                                                                                                                             Specifications
                    2.     A record exists when challenged by inspection
                           or audit.
Comparison with     To establish the gap between the risk as evaluated     A list of unacceptable risks                                                        HSE Risk Matrix
Objectives and      in previous stages and acceptable risk as defined in   ranked against severity of
Performance         Company standards.                                     exposure and likelihood of
Criteria                                                                   occurrence.
Risk Reduction      To reduce the residual risk to as low as reasonably    New standards to be in place and HSE Risk Matrix                                    HSE-MS
Criteria            practicable                                            enforced                         HSE-MS (HSE/97/02)                                 EP 95-0100
                                                                                                            Guidelines (HSE/97/05)                             EP 95-0300




Hazard Management in Contracts Guideline (HSE/97/05)                              revision 1, September 1997                                Page 8 of 12
2.3.4   HSE Risk

To apply HEMP effectively, the HSE risk presented by the hazard and its effect must be known. Risk is a combination of two
components, frequency and consequence. Risk management requires either a reduction in the frequency with which something
occurs or a reduction in the consequence if it does occur. In PDO the tool against which risk is assessed is the HSE Risk
Matrix shown in Figure 3.

    Consequence                                                               Increasing Probability
                                                                                 A             B              C               D               E

                   Rating    Assets     People-    People-  Environment Never heard of Incident heard Incident heard     Incident       Incident
                                        Health     Safety               in EP Industry    of in EP      of in PDO      happens <5     happens >5
                                                                                          Industry                   times per year times per year
                                                                                                                         in PDO     in that location
                     0         No       No Injury No Injury  No effect
                            damage
                     1       Slight      Slight     Slight    Slight effect
                            Damage       Injury     Injury
                     2       Minor       Minor      Minor     Minor effect
                            Damage       Injury     Injury
                     3       Local       Major      Major      Localised
                            Damage       Injury     Injury       effect
                     4       Major      Single     Single     Major effect
                            Damage      Fatality   Fatality
                     5      Extensive   Multiple   Multiple     Massive
                            Damage      Fatality   Fatality      effect

                                                          Figure 3. The Basic HSE Risk Matrix

The matrix plots frequency of occurrence along the top as five separate columns ranging from A to E. Consequence is plotted
down the side of the matrix as six separate rows ranging from 0 to 5. The consequence descriptions are expanded upon further
in HSE/97/01. Risk therefore plots within the matrix as a combination of probability and consequence. This is known as the
risk classification. For example A1 is a lower risk classification than C3. Within Company operations levels of risk have been
predefined and these are shown in Figure 4.

    Consequence                                                               Increasing Probability
                                                                                 A             B              C               D               E
                   Rating    Assets     People-    People-    Environment Never heard of Incident heard Incident heard     Incident        Incident
                                        Health     Safety                 in EP Industry    of in EP      of in PDO        happens         happens
                                                                                            Industry                     several times   several times
                                                                                                                          per year in     per year in
                                                                                                                             PDO         that location
                     0         No     No Injury No Injury  No effect
                            damage
                     1       Slight     Slight    Slight  Slight effect
                            Damage      Injury    Injury
                     2       Minor      Minor     Minor   Minor effect
                            Damage      Injury    Injury
                     3       Local      Major     Major    Localised
                            Damage      Injury    Injury     effect
                     4       Major     Single    Single   Major effect
                            Damage     Fatality  Fatality
                     5      Extensive Multiple Multiple     Massive
                            Damage     Fatality  Fatality    effect
                                         Figure 4. The HSE Risk Matrix as defined by the HSE-MS.

                                                                               Level of risk
                                                                               Discretionary
                                                                               Low
                                                                               Medium
                                                                               High
                                                                               Extreme

All action to reduce risk should result in the risk classification decreasing either in consequence (e.g. C4 to C3) or in
probability (e.g. C4 to B4). How much effort to expend will be based upon cost benefit analysis. . HSE risk is discussed in
more detail in Appendix IV.


2.4 HEMP in the Contract Management Plan

The Contract Management Plan (CMP) is described fully in HSE/97/02. This section considers those major aspects of the
CMP where HEMP must be effectively applied if the CMP is to achieve its objectives. For each aspect, which part of HEMP to
consider is shown in bold type.
2.4.1    Contract Strategy

This is a preparatory step in which the approach to managing the contract is decided upon. The decision to be taken at this
stage is who will be responsible for executing HEMP? If a ‘hands on’ approach is chosen, the responsibility for effective
application of HEMP at all stages rests with the Contract Holder. If a ‘hands off’ approach is taken, the responsibility of the
Contract Holder for executing HEMP ends after the HSE Specification is completed and then moves to the contractor.
However, the Contract Holder still remains responsible for the effectiveness of the contractor application of HEMP at all stages.


2.4.2    Contract Scope and Definition
Major hazards should be identified and recorded for inclusion in the HSE assessment. During this phase, the Contract Holder
should perform a preliminary identification of the hazards and effects, and record this in a note to file.


2.4.3    HSE Assessment
The HSE risk relating to the identified major hazards should be assessed and methods for reduction of that risk agreed. HEMP
should focus on:

       Identifying those hazards which can be eliminated from the workscope;
       Quantification of the residual HSE risk in the workscope after established standards have been applied;
       Reduction in the residual risk to as low as reasonably practicable by introduction of risk reduction measures;
       Specifying as a contractual requirement risk reduction methods as essential controls and clarification of when these
         should be in place;
       Providing the contractor with the necessary information to get a full understanding of the hazards involved in the
         workscope.

The following parties should contribute to the hazard assessment:

       Contract Holder;
       The planned activity supervisor(s);
       An HSE adviser;
       A representative of the department that the asset holder for the area/facility in which the contractor will be operating.

The aspects of HEMP to be considered are:
                 Identification                   1.Identification of hazards and effects
                 Assessment                       2. Evaluation of risks
                    Assessment, Control           4. Comparison with objectives and performance criteria
                    Control, Recovery             5. Establishment of risk reduction measures


2.4.4    HSE Specification

The HSE specification is the result of the Contract Holder applying HEMP. It contains requirements identified during the
HEMP process. To be effective it should relate to HSE Policy, HSE Objectives, HSE Targets and HSE Standards. Specified
performance indicators should then be used to measure compliance to these standards. The aspect of HEMP to be considered
is:
                  Control, Recovery             5. Establishment of risk reduction measures


2.4.5    Preliminary Contract HSE Plan
In response to the HSE Specification, the contractor should develop a Contract HSE Plan which details how the HSE risk
should be minimised. It should cover the contract phases from mobilisation to demobilisation and clearly indicate the policy,
procedures and standards to be adopted during each phase of the contract. The Contract HSE Plan should demonstrate the
contractor’s understanding of the requirements stated in the HSE Specification and indicate how the contractor should achieve
compliance.


Hazard Management in Contracts Guideline (HSE/97/05)              revision 1, September 1997                   Page 10 of 12
The Contract Holder should at this stage be looking for evidence that the contractor using their specialist skills has applied
HEMP independently of the requirements of the HSE Specification with the result that the Contract Holders application of
HEMP has either been:

       Confirmed and therefore endorsed as adequate in scope and content by the contractor;
       Challenged by the contractor, with alternatives and improvements proposed.

The HSE kick-off Meeting or an HSE Workshop can be used to establish the contractor’s understanding of the HSE
Specification. If it is found that the contractor’s understanding and ability to apply HEMP is lacking then the effectiveness of
the HSE pre-qualification should be reviewed. The aspects of HEMP to be considered are:
      Identification                By the contractor       1.Identification of hazards and effects
      Assessment                    By the contractor       2. Evaluation of risks
      Assessment                    By the contractor       3. Recording of hazards and effects
      Assessment, Control           By the contractor       4. Comparison with objectives and performance criteria
      Control, Recovery             By the contractor       5. Establishment of risk reduction measures


2.4.6    HSE Performance Reports
The report contains only factual information on the HSE performance of the Company and contractor throughout the contract
against the standards of the HSE Specification. HEMP itself is not applied at this stage but an observation upon how effective
HEMP was, as a tool to manage HSE risk is justified. Comments might relate to:

       What standards were found acceptable / unacceptable?
       What controls (barriers) were successful / unsuccessful and why?
       Was the Guidance provided on HEMP useful, if not, why?




Hazard Management in Contracts Guideline (HSE/97/05)             revision 1, September 1997                   Page 11 of 12
3 Appendices

Appendix I         Glossary of Terms, Definitions, Abbreviations

Appendix II Template for application of HEMP to the CMP

Appendix III HEMP in detail

Appendix IV Managing HSE Risk

Appendix V         Generic Hazard Listing

Appendix VI HSE Cases currently active in PDO

Appendix VII Templates for recording Hazards and Effects

Appendix VIII                Use Feedback Sheet




Hazard Management in Contracts Guideline (HSE/97/05)   revision 1, September 1997   Page 12 of 12

								
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