HALO VENTURES LTD

TABLE OF CONTENTS

(A) About Us

Company Profile1

Corporate Mission Statement2

Corporate Objectives3

Guiding Principles & Objectives4

(B) Health & Safety

Policy Statement5

Haltech Testing Inc. Guiding Principles 6

Petroleum Industry Guiding Principles 7

1.0Introduction9

1.0Introduction to Health, Safety & Environmental Program9

1.1Due Diligence Statement9

1.2To Do A Hazard Assessment10

1.3Three Keys to Safety10

2.0Responsibility for Safety and Health11

2.1 Senior Management11

2.2 Supervisor11

2.3 Employees12

2.4 Contractors12

2.5 Visitors12

3.0Inspection Policy13

3.1 Purpose13

3.2 Policy13

3.3 Responsibility13

List of Schedules & Forms 14

4.0Hazard Identification and Control15

4.1Trucking Hazard Identification, Assessment & Control16

4.1.1 Hazardous Goods Identification16

4.1.2 Hazardous Goods Assessment 16

. . . storage17

. . . H2S18

4.1.3 Hazardous Goods Control19

4.1.4Road Hazard Assessment & Control19

4.2Shop Hazard Identification, Assessment & Control20

4.0Hazard Identification and Control - Continued

4.2.1 Machinery, Tools & Equipment20

4.2.2 Safety Equipment21

4.2.3 Handling of Chemicals & Airborne Contaminants21

4.2.4 Cranes and Overhead Work22

4.2.5 Welding Gases & Guns22

4.2.6 Storage22

4.2.7 Entry / Exits23

4.2.8Injury or Sickness23

4.3 Procedures for Working On Tanks In Shop24

4.3.1Introduction24

4.3.2 Procedures24

4.4Worksite Hazard Assessment & Control28

5.0Safety Rules and Work Procedures29

5.1Safety Rules 29

5.2Standard Work Procedures31

5.2.1 Pre-Trip Service and Safety Inspection31

5.2.2Placards of Vehicle31

5.2.3En Route Inspection and Safety Check31

5.2.4Air Brakes32

5.2.5Driving as a Professional32

5.2.6Employee/Contractor Training & Orientation32

5.2.7Equipment33

5.2.8Equipment, Tools and Materials33

5.2.9Excess Head and Facial Hair33

5.2.10Firearms33

5.2.11Heating34

5.2.12Housekeeping/Right-Of-Way/Behavior34

5.2.13Alcohol & Drugs34

5.2.14Ladders35

5.2.15Lifting35

5.2.16Maintenance & Lockout Program36

5.2.17Permits and Completion of Documents37

5.2.18Personnel Safety37

5.2.19Public Relations & Highway Courtesy37

5.2.20Right to Refuse Unsafe Work38

5.2.21Safety Belts and Lifelines38

5.2.22Scaffolds and Platforms38

5.2.23Smoking39

5.2.24Tire Chains39

5.0Safety Rules and Work Procedures - Continued

5.2.25Towing39

5.2.26Welding39

5.2.37WHMIS40

5.2.28Worksite Ergonomics40

5.2.29Modified Work42

5.2.30Working in Extreme Conditions42

5.2.31Fatigue Management42

5.3Personal Protective Equipment44

5.3.1Head Wear44

5.3.2Clothing & Body Protection44

5.3.3Foot Wear44

5.3.4Eye Protection44

5.3.5Hearing Protection45

5.3.6Personal Monitors & Self-Contained Breathing Apparatus45

5.3.7Special Health Considerations45

5.4Enforcement46

5.4.1Description of Driving Offences46

5.4.2Description of Speeding Offences47

Code of Practice: P.P.E. Program 48

6.0Legislative Compliance53

6.1Employee Responsibility53

6.2Housekeeping53

6.3Working Around Moving Parts54

6.4Eye Protection54

6.5Respiratory Protection54

6.6Working At Heights Above Ground54

6.7Confined Spaces54

6.8Working Alone55

6.9Hazardous Waste55

6.10Workplace Violence & Harassment55

7.0Training ______57

7.1Employee and Contractor Training57

7.2Employee and Contractor Orientation58

7.3Driver Violations58

List of Schedules & Forms 59

8.0Communications61

8.1Communications System61

8.2Safety Meetings61

8.3Project Safety Meetings62

List of Schedules & Forms 63

9.0Accident/Incident Reporting65

9.1Incident and Accident Reporting65

9.2Incident and Accident Investigation & Follow-Up

9.2.1Purpose66

9.2.2Policy66

9.2.3Responsibilities66

List of Schedules & Forms 67

10.0 Environmental Policy69

(C) Emergency Response Plan

EMERGENCY PHONE NUMBERSpgs 75 & 76

1. Emergency Response Plan Goal 77

2. Training 77

3. Potential Emergencies 77

4. Action 78

5. Emergency Response Plan Spills 80

6. Emergency Response Plan Fires 81

7. Emergency Response Plan H2S 83

8. Emergency Response Plan Natural Disasters 84

Emergency 1st Aid see Procedures MediumRisk Tab #6

Procedures

High Risk

1. Confined Space Entry

2. Confined Space Leave

3. Confined Space Prepare to Enter

4. Handling Rodents or droppings

5. Install Blinds and Blanks

6. Labeling Hazardous Products

7. Operation of Dreager Pump / Tube

8. Operating around Power lines

9. Operation of SCBA/SABA

10. P-Tank Purge

11. Pressure Problems: Troubleshooting

12. Tubular Hydrate Identification and Removal

Medium Risk

1. Blow-down Float & Alarm Columns

2. Building Entry

3. Burner Lighting

4. Check Zero on Dry Flow Meter

5. Climbing Fixed Ladder on Tanks

6. Emergency First Aid and Situations

7. Flowing Oil Well: Troubleshoot

8. Fuel Gas / Utility Gas Systems: Operate

9. Gas Well: Trouble Shoot

10. Gauge Tanks Safely

11. Igniting Flare Tip

12. Lubricate Gear Mechanism on a Sr. Daniels Orfice Charger

13. Maintain Dry Flow Meter

14. Operating Daniels Junior Orfice Charger

15. Operation of Gastec Pump / Tube

16. P-Tank and Flare Stack Initial Setup

17. Putting Flow Oil Well on Stream

18. Shipping Procedures

Medium Risk cont

19. Texstream Injection Chemical Pump

20. Tool Care and Handling

21. Use of Portable Extension Ladders

22. Use of Step Ladders

23. Vent / Flair System: Troubleshoot

24. Wells Take Pressure Survey

25. Working in a Hot Environment

26. Working in Cold Weather

Low Risk

1. Above Ground Storage Tank Inspection

2. Above & Below Ground Storage Tank Inspection Checklist

3. Battery Jump Start & Boost

4. Bump Testing & Calibration: Using BW Microdock II

5. Catalytic Heaters: Operate

6. Centrifuge Test for Oil BS&W cut

7. Change Dry Flow Meter Charts

8. Changing a Flat Tire

9. Cheater Cord Procedures

10. Dry Flow Meters: Troubleshooting

11. Electric Heat Trace Operate

12. Flowing Oil Well: Perform Routine Check

13. Fuel Gas System Check

14. Fuel Gas System - Troubleshoot

15. Housekeeping

16. Inspect and Clean SCBA/SABA

17. Installation of Bolted and Threaded Connections

18. Maintaining Instrument Air Compressor

19. Performing Monthly Fire Extinguisher Check

20. Lockout Energy Sources

Haltech Testing Inc.

iv

Haltech Testing Inc.

www.haltechtesting.com

780 864 0153

COMPANY PROFILE

Haltech Testing Inc. takes pride in supplying a wide variety of reliable,

quality oil and gas well production testing equipment and personnel.

Haltech Testing Inc. is owned and operated by Hal Keith and Lon Urness.

The main office is located in Bay Tree, Alberta.

The primary function is to provide exceptional well testing personnel

that are trained in new well completions, frac recovery, clean-up tests,

and inline production testing and sound equipment to get the job done

efficiently and safely.

Haltech Testing Inc. was formed in 2003 as the result of increased

demand for oilfield services in the area.

Haltech Testing Inc. currently operates five well testing units.

(includes p-tank, flare stack and office trailer)

CORPORATE MISSION STATEMENT

To provide superior service, in a safe and cost effective manner, with sound equipment and exceptional personnel, while complying with Environmental and Industry Standards.

________(original signed)_________

Hal Keith

President, Haltech Testing Inc.

________(original signed)_________

Lon Urness

Sec/Treas, Haltech Testing Inc.

Corporate Objectives

1. Provide a safe and efficient work environment.

2. Promote job security.

3. Set goals to stimulate personal and company

growth.

Guiding Principles to Achieve Our Objectives

1. Empower individuals to take ownership of

ideas that improve the companys operating policies and procedures.

2. Maintain constructive relationships

between employees, peers and managers.

3. Lead by example.

4. Reinforce positive attitudes.

5. Focus on the situation or behavior, and not

on the individual.

6. Meet with customers on a regular basis to

ensure quality control.

HEALTH & Safety Policy Statement

HALTECH TESTING INC., at all staff levels, is committed to employing responsible management practices that will result in protecting the health and safety of employees, customers, contractors and the public.

To achieve this goal, HALTECH TESTING INC. will:

Comply with or exceed applicable government regulations and industry standards for health, safety and environmental protection.

Develop and train supervisors to ensure compliance with approved safe operating practices as they are responsible for enforcing the company health and safety program.

Supervisors are responsible for enforcing the company health and safety program.

Educate, train and motivate employees to conduct their activities in a safe and environmentally responsible manner.

Minimize the consequences of emergency events by ensuring prompt and effective response.

Require that all employees and contractors perform their duties in accordance with company standards.

Develop, implement and maintain emergency response plans appropriate for our operations.

Maintain regular health and safety monitoring and reporting practices.

Provide on an on-going basis, sufficient resources to ensure that employees are fully informed of health, safety and environmental requirements.

Be sensitive and responsive to public concerns regarding our business activities.

________(original signed)_______________________________________

Hal Keith Date

President

________(original signed)_______________________________________

Lon Urness Date

Sec/Treasurer

HALTECH TESTING INC. Guiding Principles

HALTECH TESTING INC.s management believes that a healthy and safe work environment for all employees and contractors is vitally important to the successful operation of our business. Employees and management must jointly make reasonable efforts to provide such a work environment.

WE BELIEVE THAT:

Known operational risks must be avoided or controlled to prevent injuries, work related illnesses, fires, property damage and other losses as an integral part of our business.

Management and employees are jointly responsible and held accountable for ensuring, creating and maintaining a safe workplace, establishing and following health and safety programs, furnishing and using proper equipment, furnishing and using procedures and training.

Employees and contractors are responsible for complying with all applicable health and safety and environmental laws and regulations and with company rules and procedures as a condition of employment. It is expected that employees and contractors will work safely and show equal concern for health and safety of their co-workers and that all incidents will be reported and investigated.

Excellence in health and safety performance is achieved through the support and active participation of all employees.

PETROLEUM INDUSTRY GUIDING PRINCIPLES FOR WORKER SAFETY

We, the members of the petroleum industry have a responsibility to protect all workers engaged in its activities from personal injury and health hazards.

Responsibility

The prime contractor, is responsible for coordination and general supervision of all activities at the work site, including activities carried out by contractors, sub-contractors, service companies and suppliers. While all parties have a responsibility to promote safety, the prime contractor must recognize its leadership role in promoting worker health and safety on the basis that is has the greatest power to influence work site situations. It is the responsibility of workers and employers to refuse to perform unsafe work practices.

Priority

Activities will be conducted on the basis that safety of all personnel is of vital importance, whether those personnel are employed by an operating company, a contractor, a sub-contractor, a service company, or a supplier.

Recognition

The process of selecting contractors, sub-contractors, service companies and suppliers, and the administration of contracts, will include recognition and support of good safety performance. Support and recognition based on good safety performance will also be provided by all employers to their employees.

Improvement

The operating company, in cooperation with service companies within the industry will promote methods and practices that have potential for improving safety performance.

This Page Intentionally left Blank1.0 Introduction

This Safety Handbook for Employees and Contractors outlines minimum safety and health expectations for employees, contractors and consultants while present at the owners work sites or engaged in any activity on behalf of the owners.

Its contents are supplement to the Provincial Occupational Health and Safety Acts and Regulations, other applicable laws and regulations and various industry codes and documents. Standards applicable to the work being performed will be required for all contracted work or for Haltech Testing Inc.s service orders, including those for supply and installation of materials.

In the event of a conflict between the language of a contract and the guidelines, the applicable potions of the CAPP Petroleum Industry Contractor Safety Checklist shall take precedence.

1.1 Due Diligence Statement

DEFINITIONS

dangerous occurrence . . . . . also considered as a near-miss incident

driver . . . . . . may include operators

employee . . . . . may include contractors

tailgate safety meeting . . . . . . considered the same as a worksite hazard assessment

vehicle . . . . . .may include trailer units and/or equipment; and

worksite hazard assessment. . . . . . considered the same as a tailgate safety meeting

HAZARD: Any circumstances or conditions, which poses the risk of an incident.

INCIDENT: Any unplanned and unwanted event, which results in damage or injury, or

which could have resulted in damage or injury.

HAZARD ASSESSMENT: See Section 4.0 of Haltech Testing Inc.s HSE Program

INSPECTION: See Section 3.0 of Haltech Testing Inc.s HSE Program

A HAZARD ASSESSMENT, also called a job safety analysis (JSA), is a careful analysis of the potential hazards associated with a particular task and/or an entire job-site.

Every new job or change at a job calls for hazard assessment and controls put in place by evaluating the degree of risk and exposure. Tools to assess include

Inspection and/or testing.

Observation by trained individuals.

Investigations of incidents and near misses.

Interviewing workers and reviewing records.

Analyze the risk by determining:

Consequences outcome of an incident

Exposure interaction with hazard

Probability likelihood that consequences will occur once individual is exposed

Controlling the hazard to prevent harm to workers:

At the source (Engineered)

Between the source and the worker (administrative) and/or

At the worker (PPE)

1.2 TO DO A HAZARD ASSESSMENT:

The supervisor begins by analyzing the risks arising out of the work activities or circumstances and implement safe work procedures if the activities or circumstances create a hazard. The procedures implemented must state the number of workers involved, the steps to be followed and the safety equipment required on the Hazard Assessment Form.

Look carefully at how the equipment is designed (for example, will there be special problems in very hot or extreme cold weather, or for operators who are especially short or tall)?

Carefully observe someone doing their job as they normally would. List each of the basic steps involved in the task. List what might go wrong causing injury or property damage at each step. Think about as many aspects of the job as possible, mechanics, electricity, temperatures, pressures, leaks, explosives, noise, direction of movement, impacts, pinch points, stability of equipment and so on.

For each potential problem, write down what should be done to prevent a problem from occurring or to minimize the damage if the problem does occur. Indicate what should be done, things to look for, positions to take and movement to make, and so on, as well as equipment maintenance and repair, and of housekeeping in the area. Give special instructions, listing what to do and how to do it, rather than general statements like, use caution.

**Check the lists with someone who has done the task many times, to be sure that all steps are included and all potential hazards identified.

1.3 KEYS TO SAFETY

1. Recognize the Hazard: This means having the necessary knowledge and training to be able to identify physical hazards and hazardous situations.

2. Know the Defense: This means having the necessary knowledge and training to correctly defend yourself from the hazard.

You are attempting to:

1st Eliminate the potential hazard, if unable to do so then,

2nd Control the potential hazard by:

1st choice = Engineering controls (valve l, tank certification, gauges, etc)

2nd choice = Administrative controls (inspections, documentation, etc.)

3rd choice = PPE

Sometimes a combination of the three is best if there is a greater level of worker safety.

3. Act in Time: This means acting in a time frame and in manner that protects yourself and others from danger.

2.0 Responsibility for Safety and Health

2.1 Senior Management

Ensure proper equipment is provided to do the job and laid out safely for its use, including first aid services, first aid equipment, and supplies.

To develop and establish safe operating procedures and communicate these to employees. Procedures will be available.

To develop supervisors competent in each of the areas of responsibility and training programs to ensure compliance with approved safe operating practices.

Will ensure appropriate training for employees.

Eliminate injuries by providing encouragement and support to the staff.

Ensure workers report every incident and accident.

The employer and/or prime contractor will post signs indicating the location of first aid service, equipment and supplies or, if posting of signs is not practicable, ensure that each worker knows the location of first aid services, equipment, supplies and procedures.

Review all accidents in order to develop means of eliminating them in the future and communicate these to all employees affected.

Review HSE and ERP annually.

Conduct monthly safety meetings or as required and record meeting minutes.

2.2 Supervisors

Supervisors appointed for supervision of well testing operations are competent in each area that is within the supervisor's area of responsibility and are responsible to maintain a safe work site including ensuring required first aid services, equipment and supplies, first aid attendants and services and that the services are adequate and appropriate.

Supervisors will be trained in the safe handling, use, and storage of hazardous substances; detecting and controlling worker exposure to H2s; emergency response including well control and blowout prevention; as well as the safe operation of work site facilities.

Supervisors are responsible to ensure that workers are trained in safe work practices and the health and safety program.

Supervisors are responsible for training workers in safe work practices and procedures and the actions and duties of the worker under his supervision.

Supervisors are responsible for informing employers and workers of the hazards and ensuring that the hazards are addressed throughout the duration of the work activities.

Ensuring all regulations and safety policies are implemented, administered and enforced.

Reporting and investigating all incidents, accidents, spill, near misses or hazardous conditions.

Ensuring all new personnel are aware of the regulations, training requirements, site operating procedures and emergency procedures.

Ensuring that all equipment (including PPE) is working properly, inspected, maintained and is capable of performing the task safely as well as the safe operation of facilities at location.

Ensure worksite ERP plan is communicated to all workers, an emergency communication system in place; first aid services, equipment, supplies are on site and kept clean, dry, accessible and ready for use as well as the required number of first aiders and/or SCBAs per worker on site and predetermined transportation services for injured or ill workers should it be required.

Ensuring that all personnel under their supervision keep their certificates of safety training up-to-date.

Ensure that the traffic is controlled to protect workers and that workers are visible and/or physically protected.

2.3 Employees

Each employee must read and be familiar with the contents of this booklet, signing the New Personnel/Contractor Orientation Checklist to confirm such.

Each employee must abide by the regulations contained herein.

Each employee must follow company written and oral instructions to safely perform his/her job.

Each employee must make themselves aware of the location of first aid services, equipment and supplies at each site.

Each employee must participate in the daily maintenance of the equipment they are operating.

Each employee must complete the Daily Pre/Post Trip Inspection for Trucks/Units.

Each employee must maintain a Daily Log Book for Trucks.

If the employee has any doubt regarding his/her job procedure or safety involved, he/she must consult his/her supervisor before proceeding.

Each employee must report all unsafe working conditions, near-misses, incidents or safety issues immediately to his/her supervisor.

Each employee must refuse to perform a task or assignment, if on reasonable and probable grounds, they believe that there exists an imminent danger to the health and safety of themselves or others.

Each employee must wear appropriate PPE.

Each employee must attend monthly safety meetings to discuss current safety issues.

2.4 Contractors

Prior to beginning work on a Haltech Testing Inc. site, a contractor must have a minimum:

Adequate comprehensive general liability insurance per occurrence and aggregate, which includes coverage for all non-owned automobile units as well as owned automobile used in the operation.

Workers compensation accounts in good standing, for the jurisdictions in which the workers are employed, including coverage for all subcontractors. The project manager of Haltech Testing Inc.s supervisor will normally request all contractors have a copy of evidence of WCB coverage for the duration of the job prior to any contactor work commencing (certificate of account showing that they have a current WCB number and/or a letter of clearance showing WCB coverage paid to certain date). This insurance must be effective on the date of service order, intermittent services agreement, or contract, and must continue in full force and effective until the services agreement, or contact, and must continue in full forces and effective until the terms of the order or contract are completed. Haltech Testing Inc. project manager should check with WCB to ensure that this coverage is in effect, prior to any work taking place by a contractor.

The subcontractor must supply a copy of the companys Health and Safety Program (Or complete Haltech Testing orientation, sign in agreement to understand and comply with Haltech Testing Incs Health & Safety Program).

The subcontractor must comply with all permits issued by Haltech Testing Inc.

The subcontractor must participate in pre-job inspections, hazard assessments, orientations, meetings and comply with all procedures laid out in this manual & Safe Practices.

The subcontractor must be aware of and comply with the Occupational Health and Safety Regulations as they apply to the job as post job safety performance will be reviewed.

2.5 Visitors

Visitors must immediately report to the sites main office or control room for instructions.

While on location adhere to all Government Regulations and Company Policies & Rules.

Never walk about a location unescorted unless under the direction of the site supervisor or his delegate.

3.0 INSPECTION

3.1 Purpose

To control losses of human and material resources by identifying and correcting unsafe acts and conditions.

3.2 Policy

This Company will maintain a comprehensive program of safety inspections at all facilities and job sites.

3.3 Responsibilities

Management is responsible for the overall operation of the program ensuring documentation. Managers are to ensure:

Monthly Premises inspections

Monitor supervisor/worker behavior, document quarterly

Methods and Safe Work Practices, document quarterly

Inspection, assessment and safety documentation

Supervisors are responsible for directing formal inspections and involving the workers and units on-the-job sites that they control. Supervisors are to ensure:

To inform workers of the hazards created and ensuring that the hazards are addressed throughout the duration of the work activities. The information required includes the name of the qualified coordinator, a site drawing, which must be posted, showing project layout, first aid location, emergency transportation provisions, and the evacuation plan, and a set of work procedures designed to protect the health and safety of workers at the workplace.

Unit/Equipment inspection, recording inspections and maintenance

(to be made available to equipment operators and anyone involved with inspection and maintenance).

Monitor worker behavior.

First aid kits are inspected monthly, kept clean, dry and clearly visible, with proper signage.

PPE is properly used and inspected.

Inspection, assessment and safety documentation.

Workers are responsible for participating in, and contributing to, the inspection program.

Schedules and Forms - Inspections

Personal Protective Equipment Schedule

Emergency Equipment Inspection Schedule __________________

Verification of work permits Form _________________________

Daily Vehicle Inspection Form ____________________________

Truck / Equip. Inspection Form / Drivers Log _________________

Hazard Identification, Assessment & Control Form

Monthly Shop Inspection Form

Quarterly Tool Inspection Form

4.0 HAZARD IDENTIFICATION AND CONTROL

Hazard identification is everyones responsibility. Think Now!! What can you do to assess hazards daily? There are several areas in which hazards present themselves on a daily basis. An assessment is to be conducted of the circumstances of the workplace, including: the number of workers who may require first aid at any time, the nature and extent of the risks and hazards in the workplace, including whether or not the workplace as a whole creates a low risk of injury, the types of injuries likely to occur, any barriers to first aid being provided to an injured worker, and the time that may be required to obtain transportation and to transport an injured worker to medical treatment. The assessment will be reviewed annually or whenever a significant change affecting the assessment occurs. The hazard assessment includes a site inspection, the number or workers, name of first aider, followed by an assessment of the hazards, and instructions to eliminate, minimize or control the hazards.

Possible Hazards:

Transportation:

Hauling Large loads Hazards

Loading and Unloading Products

Road Hazards

Shop & Maintenance:

Machinery, Tools and Equipment

Safety Equipment

Handling of Chemicals

Overhead Work / Underneath Work

Welding Gases / Guns

Butane Lighters

Electrical Fire

Lifting

H2S

Injury or Sickness

Work Site:

H2S

Hazardous gases/substances

Pressure

Tank Gauge Operation

Cell phone

Venting System

Sour Facility Safe Guard

Grounding / Bonding

Evacuation or rescue

There are many more possible hazards, scrutinize your work site.

4.1 TRUCKING HAZARD ASSESSMENTS & CONTROL

4.1.1 Hazardous Goods Identification

Haltech Testing Inc. handles many dangerous good products with the main products listed below in their proper shipping name, with the Product Identification Number (PIN).

P-TanksClass 3, UN. 2924

PropaneClass 3, UN. 1075 P.G.II

MethanolClass 3 UN 1230 P.G.II

4.1.2 Hazardous Goods Assessment

Due to the similarities of the products the following hazard assessments will apply to all the products listed, unless otherwise identified. These products emit vapors that are both flammable and poisonous. Therefore it is important to pay close attention to this information for your protection, your fellow workers and the environment as well.

Fire or Explosion

May be ignited by heat, sparks or flame.

Many vapors are heavier than air.

Most products are lighter than water.

Vapors may form explosives when mixed with air.

Vapors may travel to a source of ignition and flash back.

Containing vessels may explode when heated.

Health

Some vapors are irritating or poisonous.

Methanol vapor or liquid inhalation or contact may cause severe injury or death.

Fire may produce irritating, poisonous and/or corrosive gases.

Run off may pollute waterways.

First Aid

Remove to fresh air.

Apply artificial respiration if victim is not breathing.

Administer oxygen if breathing is difficult (if oxygen is available and you have the proper training).

Remove contaminated clothing and shoes.

In case of contact with material, immediately flush skin or eyes with running water for at least 15 minutes.

Keep victim warm and quiet.

Methanol contact or inhalation, effect may be delayed.

Get medical aid.

Ensure that attending medical staff is aware of identity of products involved.

Storage

Hazardous products must be properly stored in a designated area for a hazardous substance and must be; designed and constructed to provide for the safe containment of the contents; clearly identified by signs, placards or similar means; designed and maintained to allow the safe movement of workers, equipment and material; provided with adequate ventilation and lighting; in a location not normally occupied by workers; must not be in a location such as a lunchroom, eating area, change room, clothing storage locker or passenger compartment of a vehicle; in a manner which ensures that it will not readily fall, become dislodged, suffer damage, or be exposed to conditions of extreme temperature; and labeled according to WHMIS and add MSDS sheet to binder.

Hydrogen Sulfide (H2S)

One of the more dangerous vapors emitted from petroleum or petroleum based products is Hydrogen Sulfide (H2S). H2S is a naturally occurring, colorless and odorless (at higher concentrations) gas that can be highly toxic. In high enough concentrations, it can paralyze the breathing control center in the brain and in the respiratory system with one breath. Workers may not be exposed to H2S as a concentration exceeding 10ppm at any time without respiratory equipment. If a work site may become immediately dangerous to life or health, follow H2S procedures to ensure that a worker wears self contained breathing apparatus or an air line respirator. Respiratory equipment must meet regulation standards as listed in PPE Code of Practice.

Colorless gas.

Smells like rotten eggs as between 1 ppm and approximately 100 ppm. Sense of smell is deadened after this concentration.

Heavier than air, will settle in low areas, excavations, confined spaces, etc.

Will readily mix with liquids and then be released when liquids are disturbed.

Will cause irritation of eyes and throat at approximately 200 ppm.

Will cause respiratory distress and/or lose reasoning within 2 minutes at 500 ppm.

Quickly unconscious, breathing stops at approximately 700 ppm.

Will cause immediate respiratory arrest at 1000 ppm.

Explosive when mixed with air.

10 ppm 8 hours without adverse effect.

Above 10 ppm breathing apparatus must be worn.

As much as possible, avoid enclosed areas such as H2S process buildings, tanks, trenches or any other place where H2S may settle. Treat these areas as potential confined spaces when on a sour lease.

Anytime during work where it is suspected that H2S is present, breathing apparatus must be worn and the check in system is to be used during the work.

H2S Rescue

Whenever someone is overcome by H2S or this is suspected, DO NOT RUN INTO THE AREA TO EFFECT A RESCUE.

Proceed in the opposite direction, call for help and back up, don breathing apparatus, and then remove the casualty from the area.

Only after you and the casualty are free of the affected area can you remove the breathing apparatus and apply artificial respiration. When the casualty exhales, avoid breathing in the exhaled H2S. A casualty who is being revived from H2S poisoning is often violent; be prepared for this.

WARNING:You cannot rely on your sense of smell to determine how much H2S is present. Be safe and wear your breathing apparatus!

4.1.3 Hazardous Goods Control

Due to the dangers surrounding the handling and transporting of the aforesaid hazardous goods (4.1.1), Haltech Testing Inc. has implemented several steps to ensure the safety of their employees and/or contractors who come in contact with these products. Haltech Testing Inc. feels that through their orientation & training, safety rules, work regulations, regular safety meetings, personal protective equipment, field supervisors, scheduled equipment and site inspections we are able to minimize the occurrence of accidents/incidents.

It is imperative that the operators follow the safety rules and work regulations, as stated in Haltech Testing Inc.s Health, Safety & Environmental Program, to ensure control of the hazardous good situation. The most important steps that need to be taken to attain these standards are:

1. You must ensure that all connections are made correctly.

2. Under no circumstances are you to leave the unit until completion or replacement staff has arrived and is ready to take over.

3. Do not open any valves unless you are sure that all connections have been correctly made and all safety precautions have been followed.

Please take note what products you may come in contact with. Therefore if you are to transport or handle a product you are not familiar with, confirm the PIN, class, required placards and MSDS before handling the product.

4.1.4 Road Hazard Assessments & Control

Every day that we share the road with other vehicles, there is the potential for an accident. We cannot stress how important it is for the driver to be alert and aware of his/her surroundings as well as other drivers actions at all times. Be aware of slow moving equipment, oversized loads and wildlife on the roadway.

Vehicles should be operated in a defensive manner and Use seat belts provided.

Drivers should be alert and looking for future problems before they occur.

Drivers should examine their vehicles daily before using them and shall not operate any vehicle if any unsafe condition or mechanical defect is found. These conditions or defects should be reported to their supervisor for correction.

Clear all windows of dirt, dew, frost, ice or snow before driving. Operated with headlights on.

Do not leave tools or equipment loose in the passenger compartment of vehicles.

Any vehicle having restricted rear view should be equipped with audible backup beepers or alarms. When backing into tight spots or where there may be other traffic coming, use another person as a guide.

When parking a vehicle, ensure that the vehicle is set and parking brake is fully engaged.

In winter, allow for extra stopping distances, especially on bridges or intersections.

Drivers should try to be familiar with skid control procedures for the vehicle type.

Emergency kits and extra warm clothing should be carried, especially in remote areas.

4.2 SHOP HAZARD IDENTIFICATION, ASSESSMENT & CONTROL

4.2.1 Machinery, Tools and Equipment

Haltech Testing Inc. will ensure that tools and equipment are performing safely and used, and operated in accordance with the manufacturer's instructions and safe work practices. If modifications are made, they must be in accordance with manufacturer's instructions. If equipment is dismantled and re-assembled, it must be checked by a qualified person and determined to be safe before operation or use.

Piping systems, fittings and valves must be designed, constructed and maintained to safely withstand the anticipated internal pressures and external loads, be restrained from undue horizontal, vertical or swinging motion. Pipes must be restrained from uncontrolled movement.

All equipment and safeguards must be installed, operated and maintained in a condition to be able to perform the function for which it is intended or was designed (in accordance with CSA Standard Z432-4), without compromising the health and safety of a worker. A worker must not intentionally remove, impair, or render ineffective any safeguard, except as permitted by OHS regulation.

A worker must remove any equipment from service using the lock-out tag-out system when its condition or the condition of a safeguard is compromised or could affect the health and safety of a worker.

Before using any machinery, tools or equipment, a worker must ensure there is no danger to other workers.

Fire hazard areas are clearly identified as well as the prohibited use of an open flame or other source of ignition in the area.

Guards are placed over machines or to prevent entry for your protection. KEEP THEM IN PLACE. A fixed guard must not be adjusted to be readily removable without the use of tools.

Never use defective tools or tools with defective guards, turn them in and get new ones or have them tagged and repaired.

Rotating parts, such as friction drives, shafts, couplings and collars, set screws and bolts, keys and keyways, and projecting shaft ends, exposed to contact by workers must be guarded.

Every employee, who is required to operate a cutting torch, must be checked out by the foreman or supervisor. Do not attempt to operate a burning torch or do any work with it unless instructions are fully understood. Do not use a match to light a torch, use a friction lighter, stationary pilot flame or some suitable safe source of ignition.

Always use a jack stand or axle stand when working under equipment that is supported by jacks or cranes.

Always install spring brake cages when working on spring brakes, or in that area.

Tire cage or another approved restraining device must be used when a person initially inflates a tire mounted on a split-rim or locking ring wheel.

A person is required to use a protective screen or ensure the other workers are wearing approved eye protection when he/she are to perform electric arc welding.

4.2.2 Safety Equipment

The shop shall have the following equipment available:

First aid kit, PPE, fire extinguisher, and all other safety equipment that meets government regulations or better, kept properly supplied at regular intervals.

Personal (LEL) monitor.

Sufficient fire extinguishers, properly maintained.

Ladders with anti-skid pads.

Hook-on ladder when required for entering tanks through manhole.

Fresh air blower complete with hose to introduce fresh air into tanks, when maintenance workers are required to enter a tank.

One or more fire blankets.

ropes and associated rescue equipment.

Maxi-pot cages (spring brake cages)

Jack stands.

Maintenance manuals and logs.

NOTE: The above is just some of the equipment that must be available, but is by no means the only equipment. It is the responsibility of the foreman or supervisor and/or employees that everyone is familiar with the safe handling and storage of that equipment.

Everyone must endeavor to keep this equipment in good condition, clean and report anything missing or damaged immediately to your foreman or supervisor.

4.2.3 Handling of Chemicals or Airborne Contaminants

In our work, we at times handle chemicals. Please be sure that you know the hazards involved when working with these chemicals and that you protect yourself and co-workers from harm.

Some of the products you may have to work with are Methanol, glues, gaskets, kool tool, WD40, electro motive, silica sand.

Be on guard at all times. It is your responsibility to use PPE and become acquainted with the way it should be handled (MSDS) and follow the instructions to the letter. If you are splashed with any chemicals, wash off with cold water immediately, and report to First Aid as soon as possible.

The amount of a hazardous substance in a work area should not exceed the quantity reasonably needed for work in progress.

All hazardous substance must be handled or stored in a container designed, constructed and maintained in good condition to securely handle the substance.

Use proper precautions where flammable substances are present.

Should a worksite environment necessitate Respiratory Protective Equipment because of exposure to airborne contaminants exceeding their occupational exposure limits or the atmosphere has an oxygen concentration of less that 19.5% by volume, Haltech Testing Inc. employees are to vacate this environment immediately unless the client has provided all the safety equipment and qualified safety personnel onsite.

4.2.4 Cranes and Overhead Work

Every employee is warned to stand clear of crane loads.

Working with cranes or booms near overhead power lines shall proceed only after making sure that no contact can occur.

Before using any ladder, inspect it. See that it has proper safety feet and is free from cracks, broken rungs, and other defects. If necessary, to prevent slipping have someone hold the bottom of the ladder securely. Where practical, tie the top of the ladder securely.

4.2.5 Welding Gases & Guns

Welding gases should be treated with care. Cylinders containing gases cannot be thrown around as they are under very high pressure. A valve breaking off a full bottle can create a rocket endangering everyone.

The following compressed gases are commonly used in our shops:

Oxygen Oxygen supports and can greatly accelerate combustion. For this reason do not store substances which are combustible (oil, grease, rags, etc.) near oxygen cylinders, pipes or hoses. Do not smoke in an area where oxygen is stored. Oxygen, as a liquid or cold gas, may cause freeze burns. Do not touch frosted pipes and/or valves.

Argon and Carbon Dioxide Both of these gases can cause asphyxiation and death if confined, poorly ventilated areas. Argon and carbon dioxide can also cause freeze burns similar to oxygen. In liquid form these gases are extremely cold.

Acetylene This gas is highly flammable and explosive. Treat this gas with proper care. Even with copper, silver, and mercury, acetylene can at times become explosive. Keep acetylene away from sources of ignition and do not permit any accumulation of this gas.

Do not leave welding guns or cutting torches inside a tank whenever you leave for a short coffee break or at lunch time. Make it a habit never to leave a gun or torch in a tank or close to the manhole for any period that you are not inside. Argon, acetylene, and other gases can kill by suffocation or explosion.

For the above reason all welders and fitters are advised to wear long sleeved shirts preferably made of another material than cotton and certainly not white in color.

4.2.6 Storage

Material and equipment must be placed, stacked or stored in a stable and secure manner. Stacked material or containers must be stabilized as necessary by interlocking, strapping or other effective means of restraint to protect the safety of workers.

An area in which material may be dropped, dumped or spilled must be guarded to prevent inadvertent entry by workers, or protected by adequate covers and guarding.

4.2.7 Entry / Exits

There must be a safe way of entering and leaving a workplace and a worker must not use another way if the other way is hazardous. Hazardous areas not intended to be accessible must be secured by locked doors or equivalent means of security, and are not to be entered without safe work procedures.

4.2.8 Injury or Sickness

Do not try to remove foreign particles from the eye yourself.

In the case of serious injury, do not move an injured person (except for safety reasons) until medical aid arrives.

For the added safety of yourself and your fellow workers, acquaint yourself with the location of the following items in your work area:

- first aid kit

- fire extinguishers

- fire blankets

- nearest water outlet

4.3Procedures for working on Tanks in shop

4.3.1 Introduction

Most of the equipment, which is serviced in our shops, has been transporting hazardous hydrocarbon materials (explosive mixtures).

It is obvious; therefore, that all our employees should realize that they should follow good safety procedures at all times and never attempt shortcuts.

First and foremost, we should at all times know what dangers we are facing since knowing them can eliminate possibilities of injuries or worse.

Always follow all prescribed procedures and never attempt to take a shortcut.

Take the time to do a job safely. We just do not gamble with possible injury and/or death!

The three ingredients necessary to create an explosion or a fire:

1st a combustible material (gasoline, natural gas, paper, wood, etc.)

2nd oxygen (pure or in air)

3rd ignition (fire, spark, heat)

Eliminating any one of these three will avoid a fire or explosion.

Since air is present all around us and our type of work (welding, chiseling, cutting, etc.) will provide the ignition - Our best approach in almost all cases is to eliminate the combustible material.

4.3.2 Procedures

Before you start any work, try to ascertain from the previous operator in what service the unit has been. NOTE: Do not completely rely on this information as always being correct for the driver may not have been aware of the last product present in that unit.

Put the information received on the Unit Maintenance Log so everybody working on the unit will be aware of what to expect. Inspect the unit to see whether:

Piping slopes in the proper downward direction.

Equipment such as manifolds, reels, pumps, etc., where pockets of product can be trapped.

Valves are operative.

Space between double bulkheads can be steamed.

Patches are welded over top of cracks which can cause pockets.

Pads are used without vent holes.

Sand and/or rust are present in the bottom of a unit. (Crude tanks are particularly bad for this and can create an extreme hazard if this is not removed before work commences.)

Any other hazardous conditions.

It is extremely important that a competent experienced person inspects the unit and report his findings.

Any conditions which can possibly affect our fellow worker on this unit should also be noted in the Units Maintenance Log.

If, in the shop, units are being serviced, which have serviced a sour crude well, be on guard for hydrogen sulfide (H2S). (Refer to the H2S Alive Manual.)

Prior to any welding being done on the barrel of the unit inside the shop, the unit must be freed of any combustible or explosive liquids or vapors.

Work of a hot nature means that sparks and/or heat will be generated. For instance testing the sensors on a light petroleum unit could create a spark since a 24-volt current is used when testing. Hammering to loosen a corroded nut could create heat and/or spark, etc. In short, when in doubt whether a spark or heat could possibly occur, always take the safe route and remove the combustible and/or explosive material.

In the Haltech Testing shop, in order to purge a unit from explosive liquids and/or vapors, the unit should always be steamed prior to arriving back at the Haltech Testing yard and after this, if necessary, be air purged.

Continuous air blowing while the work is being done is another method of keeping a unit safe while you work on it. However, this has two disadvantages which make it not suitable as a standard procedure in Haltech Testing Inc. shop.

First of all, this method brings the gases out of the tank and into the building you are working in and the possibility of it settling in pockets

Second, it makes the use of an inert gas shielded welding gun inside the tank difficult.

Moreover, in Haltech Testings shop, the above methods are not always acceptable since we want to utilize the safest possible method and there is always the possibility of a leak into a pad, resulting in trapped liquid.

STEAM, simply because of its high temperature, will remove this liquid and the possibility of gaseous vapors building up again.

Consequently, the only safe and proven method is always steaming and afterwards, if necessary, air purging.

When a unit is steaming, be sure that as many vents and drains as possible are opened so that a good flow of steam goes through the tank. It is particularly important to have a drain open at the lowest possible point to avoid condensate build-up in the vessel. At this time all double bulkheads, lines, etc., are also steamed and purged. In certain cases where steam or condensate would damage a meter or other appendage the lines to this equipment should be disconnected as close as possible to the equipment. The appendage itself can then be aerated or carefully blown with air.

Be sure to check for any possible hang ups of product and/or vapor.

There is no set time for steaming. The type and condition of the unit as well as climatic conditions vary too greatly for a definite time. However, it should be understood that it is better to steam somewhat longer than what you initially thought necessary.

A clean bore stainless steel or aluminum tank will be gas free much faster than an old corroded multi-compartment steel tank.

After a unit has been completely purged of all liquids and vapors, the unit should be allowed to cool down by letting it sit for a time and/or by blowing it with air.

After this, a test should be taken with an explosion meter. The meter must have a zero (0) reading when the unit is tested.

Care should be taken to test all possible areas where vapors or liquids could be trapped. Apart from the compartments, areas between the double bulkheads, manifolds, pipelines, meters, inside the tunnel, legs, etc. should also be tested.

If these tests show the unit is safe to work on, it can be brought into the shop.

Before a worker proceeds to work on the unit, it is his responsibility to again test the unit in order to satisfy himself that the unit is completely safe.

If the unit is a truck, great care should be taken that the fuel tank of the truck is properly protected against sparks either caused by a welding current and/or from cutting and welding. The battery of the truck or a trailer mounted engine should be disconnected at both terminals to avoid possible damage to the units electrical system during welding. Batteries should be covered by a rag to avoid dropping sparks and exploding the hydrogen gas in the batteries.

If work has to be done inside a tank unit, two (2) men (buddy system) will be assigned of which one should remain outside the unit watching the other work and be ready for assistance if this is required. When for some reason the worker inside the tank becomes incoherent or unconscious, the person outside should immediately drop a hose blowing air inside the tank and at the same time call for help. Assistance must arrive before entering the tank himself.

A fire extinguisher should be handy and the person on watch should have immediate use of this device when so required.

When working inside a tank, ensure that a tank ladder is used so that access and egress is facilitated.

Suction and/or blowing fans should be used when working inside tank on a repair job.

If a unit requires a lot of work and consequently will remain in the shop for an extended period, the unit should be regularly tested whether vapor may have built up again.

Of course, a unit which was completely cut open over its full length will most likely remain safe, but when a multi-compartment unit where only one compartment is worked on, the possibility of vapors building up in the other compartments is possible, particularly in a heavily corroded tank.

After a unit is repaired be sure that the inside of the unit is cleaned out and suitable for the product it is going to be used for. Give it that last check.

In cold weather frequently a small amount of alcohol (methyl hydrate) is used to prevent valves, etc. from freezing. No hot work should be done after this procedure.

In all cases:

USE COMMON SENSE AND BE ALERT AT ALL TIMES.

DO NOT TAKE SHORT CUTS.

WHEN IN DOUBT, ASK. BE EXTRA CAUTIOUS.

REALIZE WHAT HAZARDS COULD BE PRESENT AND LOOK FOR THEM.

WARN YOUR FELLOW WORKER IN CASE HE DOES NOT APPROACH HIS JOB CORRECTLY.

MAKE SUGGESTIONS IN CASE YOU HAVE A PRACTICAL IDEA AS TO HOW SAFETY CAN BE IMPROVED.

4.4Work site hazard assessment & control

The work sites Haltech Testing Inc. employees must enter to perform their job have several potential hazards. These sites are not maintained by Haltech Testing Inc. but by the Oil Companies themselves. Thus, it is imperative that the Safety Rules and Work Procedures posted at each location and as stated in Haltech Testing Inc.s Health, Safety & Environmental Program be followed stringently by the employee for their personal safety.

The Worksite Hazard Assessment form is to be completed by the supervisor along with other employees upon arrival at the site and again for each change in conditions, surroundings or workers. The forms are kept on file at the office for three years.

In addition, the following steps need to be taken to ensure the highest level of safety:

1. For off-site locations, fire hazard areas as well as other hazards will be identified and communicated to employees prior to commencing work activities.

2. If working alone, consider the additional hazards and make contact with your supervisor before entering the site and arrange a check-in schedule.

3. Ensure all proper PPE is onboard including SCBA prior to entering any work site, then determine the wind direction and position the unit accordingly. Assume H2S danger is present at any facility.

4. Check the H2S monitor for gas presence. If the H2S monitor exceeds 10ppm, put on SCBA immediately and notify your superior of conditions.

5. When hooked up, you must ensure that all connections are correctly made (i.e.: drop hose and grounding/bonding device, etc).

6. Under no circumstances are you to leave the unit until safe to do so.

7. Do not open any valves unless you are sure that all connections have been correctly made and all safety precautions have been followed.

8. Before leaving, perform a walk-around check of your unit before pulling away, to ensure that all valves are closed and all is ready for transport.

Haltech Testing Inc.s field supervisors are required to complete routine work site inspections to ensure the safety of their employees. Any deficiencies that cannot be rectified will be relayed to the manager. Management will proceed with corrective action.

hazard assessment TOOL

We use the Riskex Risk Score Calculator available on Haltech Testing PCs.

5.0 SAFETY RULES AND WORK PROCEDURES

5.1 Safety Rules -When driving onto a lease, take note of the wind direction (wind flag).

1. Drivers operating a tractor and trailer unit shall have a valid Class 1 License.

2. Before commencing work, ALL past experience of work including an abstract of licenses or driving record and required safety tickets must be presented to the employer.

3. No riders. Only company employees or contractors on company business are allowed to ride in company vehicles.

4. Anyone with a loss of 6 points or more on their driving record must take a Defensive Driving Course prior to commencing work. Failure to do so will result in employment refusal or dismissal.

5. Report all accidents/incidents, no matter how small or trivial they may seem.

6. Smoking or open flame is prohibited except in designated areas.

7. Intoxicating liquor or drugs and persons under their influence are strictly forbidden while on the job or on client location or Haltech Testings facility.

8. Do not show up for work still under the influence of alcohol from the night before.

9. Always use headlights and clearance lights when driving.

10.All company vehicles will be driven at or below the posted speed limits. For example: if the posted speed is 100 kms/hr, drive 90 kms/hr. All gravel roads maximum is 70 kms/hr.

11.Always respect all contractor and client road signs (speed limits, regulatory signs)

12.Tire wear and inflation pressure will be checked regularly as well as oil and radiator levels. Employees are not permitted to perform tire disassembly or reassembly as tire services must be performed by a professional.

13.Check vehicles daily by walking around vehicle to give an eye inspection and record it. Unit is to be grounded with a cable before commencement of inspection.

14. As part of preventative maintenance on Haltech Testing Inc.s units, drivers will report all necessary repairs to the supervisor and record it in the Unit Repair & Maintenance Log. Operators have the responsibility of ensuring that the Unit Repair & Maintenance Log is checked before leaving the yard with any unit to be familiar with the unit they will be operating.

15. Operators must not work under vehicles with PTO engaged and without clocking tank vents.

16. Vehicles must be kept clean inside and outside. Ensure nothing obstructs the safe operation of equipment.

17. Employees shall ensure that company vehicles contain safety flares, first aid kit, a fire extinguisher and a flashlight (and seasonal emergency kit).

18. Employees shall ensure that all company vehicles and trailers have fully operating clearance, parking and signal lights, and are repaired as necessary.

19. Misuse of company property or equipment will bring automatic dismissal.

20. Supervisors will hold a tailgate (hazard assessment) meeting before starting work to inform employees of any safety hazards and the control or elimination of the hazard, record site personnel and first aiders, and to ensure general compliance with safe work procedures.

21. Never ride on a load that is in the process of being winched. Never be on top of an unsecured load, between the load and the pipe racks or tubs, or in any other area made hazardous by potential pipe/load movement. Pipes must be loaded on or unloaded from a truck one layer at a time.

22. Never walk under a suspended load.

23. All trucks must be properly grounded when necessary.

24. Never leave your vehicle unattended while hooking up (unhooking) or loading (unloading) at any site.

25. If a leak occurs, isolate as fast as possible and notify your supervisor or the appropriate site authority.

26. Understand your responsibility and duties including Emergency Response Plan.

27. Use safe fueling procedures.

28. Always put on tire chains while parked on a level area BEFORE driving into a slippery or muddy area. Chain up on both drive axles.

29. When following a truck that has a large or heavy load, wait until that vehicle has reached the top of the hill before proceeding up the same hill.

30. Never stand between a vehicle and the loading or docking area.

31. Always wear weather appropriate clothing, close fitting clothing and confined or short cut head and facial hair. Avoid wearing piercings, dangling neckwear, jewelry, or other similar items.

32. Drivers must at all times be aware of other workers around them when backing up, loading or unloading.

33. ALWAYS drive defensively. Be aware of careless actions of others.

34. Experienced employees share the responsibility for instructing new employees in matter of conduct and working safely. Improper activity or behavior will be reported and investigated.

35. Conduct which may be termed practical joking, scuffling or horseplay is forbidden because of the risk of serious injury. No activity that could result in a hazard to yourself or to any other person.

36. PPE to be worn in all designated areas.

37. Regular monitoring and/or hot work permits are required to control ignition sources.

38. All lights are to be clean before leaving the yard as needed.

39. All highway traffic regulations are to be strictly followed.

40. Decks on trucks and trailers are to be kept clean at all times.

41. Place stands or blocking under equipment before work commences.

42. Use the lock-out system on trucks, trailers, equipment or tools before any servicing or repairs take place.

43. Compressed air or steam must not be used for blowing dust, chips, or other substances from equipment, materials and structures if any person could be exposed to the jet, or to the material it expels or propels.

44. Obey all Haltech Testing Inc. and customer safety policies.

45. Haltech Testing Inc. employees are never involved in pipeline pigging.

46. WORK SAFELY.

EMPLOYEE DISCIPLINE POLICY: SUSPENSION OR DISMISSAL DEPENDENT UPON SEVERITY OF INFRACTION.

5.2 STANDARD WORK PROCEDURES

5.2.1 Pre-Trip Service and Safety Inspection

1. Check oil, coolant and belt tension

2. Start motor and allow engine to properly warm up.

3. Check all instrument panel gauges.

4. Hook up airlines before backing under trailer where applicable.

5. Check 5th wheel/hitches on all equipment, including converters, making sure it

is properly locked and that all spindle locks operate properly where applicable.

6. Check air system and all brakes for adjustment.

7. Turn on and check lights including signal light lenses should be clean and

without damage.

8. Ensure that there is adequate air pressure in all tires and physically inspect the

wheels, wheel nuts, and oil seals.

9. Note any damage to equipment on appropriate reports and report to your supervisor

and report in the Maintenance Log.

10. Check your safety equipment. It is your responsibility to ensure that the

equipment your unit carries operates properly.

11. Check that all licenses, registration, certification and permits are in your unit.

12. Conduct a thorough visual check of the complete unit. Walk Around Check.

13. Ensure windows and mirrors are clean and unobstructed.

14. Ensure that your unit has not sustained recent damage. It is your

responsibility to ensure that all damage is noted with your supervisor prior to

your departure.

15. Ensure that your trailer is properly equipped with the appropriate number of

placards (if required) and labeling

.

5.2.2 Placarding of Vehicle

1. Placards identifying the class of dangerous goods being transported must be

displayed on:

i. Cargo tanks and tanks containing dangerous goods or residues of

dangerous goods from a previous load requiring a placard.

ii. Vehicles containing more than 500 kgs (1,100 lbs) or more than 5 containers

(combined) of all other classifications of dangerous goods.

5.2.3 En Route Inspection and Safety Check

To be carried out approximately every 1.5 to 2 hours on pavement and every 1 to 1.5 hours on gravel. The first en-route inspection is to occur within the first hour of starting your trip.

1. Pull completely off the road into a safe location.

2. Begin your en-route inspection by walking down the drivers side of your unit

against the flow of traffic.

3. Physically check the tires.

4. Visually check for oil and coolant leaks.

5. Check all wheels, wheel nuts, feel hubs for excessive heat and check oil levels

in sight glasses.

6. Inspect air hoses and connections.

7. Clean windshield, lights and license plates when necessary.

8. Complete a thorough visual inspection of your equipment.

9. Drain air tanks periodically to ensure air system is free from moisture and

freezing at least every 24 hours.

10. Check oil and coolant levels.

11. Ensure load remains secure.

5.2.4 Air Brakes

1. Drivers shall regularly check all brakes on the unit to ensure that they remain

in proper working order.

2. You must have full system pressure to operate your brakes properly. It is your

responsibility to ensure that the full system pressure has been achieved prior to

operating your vehicle.

5.2.5 Driving as a Professional

To be a professional driver requires much more than just the skill to operate a motor vehicle. It requires a professional attitude that promotes safe, courteous driving and pride in a job well done. It also requires that maintenance of vehicles and equipment is one of the drivers top priorities.

Always consider the consequences of your actions. Safety is extremely important in our industry we must conduct ourselves as true professionals at all times.

5.2.6 Employee and Contractor Training and Orientation

Haltech Testing Inc. recognizes that initial safety training is one of the most important aspects of a safety program. In pursuit of achieving corporate objectives and superior results employees are continuously encouraged and supported to upgrade their professional skills. All employees of Haltech Testing Inc. are required to have the mandatory work permits TDG, WHMIS, H2S Alive, G.O.D.I. (for truck drivers), Fatigue Management and First Aid. If the potential employee does not possess the above permits Haltech Testing Inc. will arrange for the permits.

The recruiting and hiring of new drivers is critical to the success of Haltech Testing Inc.

As such Haltech Testing Inc. has developed a program to ensure that all new drivers are interviewed, screened, tested and trained by qualified Haltech Testing Inc. staff. All prospective employees (driving for the company) are required to submit a current drivers abstract and resubmit abstracts on a yearly basis. Upon hiring the employee will submit a 3 year employment history and copies of all relevant safety tickets. All employees will fully disclose any violations, incidents and accidents they have prior to employment as well as while in the employ of Haltech Testing Inc. regardless of whether the violation occurred during work hours or during time off.

All sub-contractors and independent contractors are also subject to the same qualification and training procedures. (Refer to part 7.0.)

5.2.7 Equipment

All trucks must be equipped with:

1. Approved directional lighting

2. Properly operating braking system

3. H2S personal detector

4. #1 first aid kit

5. Fire extinguisher

6. All required documentation

5.2.8 Equipment, Tools and Materials

No worker shall use any tool without proper training in its correct use unless supervised by a worker competent in the use of that took, equipment or appliance.

1. All contractor supplied equipment and tools required to complete the task

undertaken must be in good working order.

2. Any tools damaged or in need of repair must be tagged Unserviceable and

should not be used until repaired or replaced.

3. All portable lamps, extension cords and electrical tools must have proper

ground and be certified for the electrical classification of the work area in

which they are to be used. Explosion proof equipment should be used in

situations where combustion or explosion is possible.

4. Before leaving pneumatic tools unattended bleed air pressure from the

airline.

5. When using electrical tools in a wet area use a ground fault interrupter (GF)

circuit breakers on the power line or check that equipment insulation is

sound using an insulating platform and wear rubber gloves to minimize

shock hazard.

5.2.9 Excess Head and Facial Hair

Haltech Testing Inc. employees and contractors must be clean-shaven, mustaches neatly trimmed and sideburns trimmed to not extend below the ear lobe. Head hair should be cut to above the collar or tied back or contained above the collar with a hair net. Anyone failing to comply with this policy will be refused access to the work site and may be subject to disciplinary action.

5.2.10 Firearms

No employee shall carry any firearms on themselves or in their vehicles on any Haltech Testing Inc. sites.

5.2.11 Heating

Within Haltech Testing Inc. of P/L right-of-way, contractor built or supplied tool sheds, field offices, temporary work structures or shanties must not be heated with open electric heaters or other non-explosion proof devices without approval from a Haltech Testing Inc. representative. All rigid gas and propane lines for temporary heating must be connected by a tradesman with a valid gas fitters ticket.

5.2.12 Housekeeping/Right-of-Way Behavior

All employees shall ensure that good housekeeping practices are continuously observed at Haltech Testing Inc. work sites. All exits and emergency equipment must be kept clear of obstructions. Work sites must be left in an orderly fashion at the end of each workday and at the end of the job. Posted signs, including pipeline right-of-way speed limits must be adhered to. Ensure that survey markers, line locates or paint marks are not obscured by materials, vehicle, and equipment movement or spoil piles from excavations.

Floors, platforms, ramps, stairs and walkways available for use by workers must be kept in good repair and kept free of slipping and tripping hazards. Material storage should be on level ground and materials that may be blown about by the wind should be secured or covered by a tarp. Combustibles at work sites shall be stored in a covered, well-ventilated shed located a safe distance from other material storage and identified with appropriate warning signs.

All rubbish or excess building materials must be collected in bins/barrels and taken to an approved disposal site or area designated by Haltech Testing Inc. representative. Never let waste blow off a right-of-way or lease onto landowners property or into ditches. Hazardous wastes or WHMIS controlled products must be disposed of properly. Burning is not permitted at Haltech Testing Inc. sites without permission of the Haltech Testing Inc. representative.

The contractor is responsible for supplying proper sanitary facilities and potable water for their employees at work sites.

5.2.13 Alcohol and Drugs

Possession of or being under the influence of illegal drugs, controlled substances or alcoholic beverage is strictly prohibited on Haltech Testing Inc. work sites. Abuse of or use of will be cause for removal from the work site. A worker must ensure that legitimate use of over the counter medications or prescription drugs does not impair ones ability to perform their job.

No employee or contractor shall distribute, possess, or consume alcohol or illegal drugs on any work site occupied by the Company or in any Company vehicle or equipment.

No employee or contractor, including on call workers, shall report to work or be at work under the influence of any drug or substance that may or will affect his/her ability to work safely. No employee or contractor shall misuse prescription or nonprescription medication while at work. All workers must report to their supervisor any medication that may affect their ability to safely perform their job.

No employee shall refuse testing or substance abuse evaluations.

Drug and Alcohol Testing

A third party will be used to administer the testing provisions if deemed necessary. The worker to be tested will be accompanied by a supervisor. Testing and test results will be conducted in a manner that protects the privacy and dignity of the individual. Testing may be done:

Incident: Of an employee for alcohol and/or drugs when impairment or drug and/or alcohol use may have been a factor.

Reasonable Suspicion Testing: When a company supervisor or other official makes observations which form a reasonable basis for suspecting that the employee is in breach of this policy. Reasonable Suspicion is based in observations concerning appearance, behavior, speech, body odors and/or possession of alcohol, drugs or paraphernalia.

Pre-employment: Employees in safety sensitive positions may be tested prior to working.

Consequences of Failure to Comply:

An employee who fails to comply with this policy may be disciplined or terminated as deemed appropriated in regards to nature of the violation, the existence of prior violations, the response to prior corrective programs and the seriousness of the violation.

Employees who test positive on an illegal drug or alcohol tests over the alcohol level of .04 will be removed from duty and suspended without pay and/or terminated.

5.2.14 Ladders

Portable ladders must meet all regulatory requirements and shall as a minimum be:

1. CSA approved and equipped with safety feet on hard surfaces or spike feet for soft surfaces.

2. Ladder must be inspected before use on each shift, and after any modification, and any condition

that might endanger workers must be remedied before the equipment is used.

3. In good condition, never painted, and must be marked for the grade of material used to construct the ladder and the use for which the ladder is constructed.

4. Tied off at the top with tag lines or held by another worker and extending at least 1 m beyond the top of the bearing point.

5. Nonconductive if being used for electrical work. Never climb or step onto small piping, tubing or electrical conduits.

6. Overlap upper and lower sections of extension ladders by at least three rungs.

7. Set the base of the ladder at least one quarter of the vertical length from the base of the wall or structure and the operator is never to use the last two rungs.

8. Not be used if there is another safe way to enter or leave an area.

9.If work cannot be done from a ladder without hazard to a worker, a work platform must be provided. A worker must not carry up or down a ladder, heavy or bulky objects or any other objects which may make ascent or descent unsafe.

5.2.15 Lifting

Haltech Testing Inc. recommends mechanical lifting, lowering, pushing, pulling, carrying, handling or transporting any load in excess of 20 kg (44 lbs) whenever possible. In any case, avoid lifting anything over 50 lbs. without assistance. When lifting any object plant your feet securely, lower your body by bending at the knees (never bend from the waist), firmly grip the object to the lifted position and lift with your leg muscles while avoiding any twisting of your back. When lifting jagged or sharp edged objects be sure to use gloves to protect your hands. Get assistance from a co-worker to lift anything heavier or awkward.

5.2.16 Maintenance Program

Maintenance records must be kept available to equipment operators and inspecting personnel, including but not limited to the name of manufacturer, the type of equipment, the date put into service, when and for what purpose the equipment has been used, the date of the last inspection and name of the inspecting person, any damage suffered, and the date and nature of all repairs and maintenance.

Tools & Equipment Maintenance

The operator of any vehicle/mobile equipment shall be directly responsible for the safe operation of that equipment. The operator shall examine his/her equipment before initial daily use and thereafter as required. When the operator has reasonable cause to believe that the equipment is not in proper running order, he/she shall take action to ensure that the equipment is repaired before use with lock-out tag-out system and procedures. Manufacturers specifications are to be adhered to in service, repair, testing, adjustment, or inspection. A log of inspections and maintenance will be immediately available to the equipment operator and to any other person involved with inspection and maintenance of equipment. Records will be retained until six months after the sale of a piece of equipment.

Lockout /Tagout

If an employee must interact with a machine (other than normal operating mode) in a manner which may have the potential to cause injury to oneself or others, then he or she must lockout the machine.

It is the responsibility and right of an employee to lockout and ensure the control of energy whenever he/she has a need to place any part of their body in a position on or near machinery/equipment where unexpected movement, release of stored energy, energizing of electrical systems, of the flow of gases, fluids or other materials and could have the potential to injure oneself or others.

Covers, guards and stop buttons are not to be used as lockout devices. Only devices which allow for eliminating the possibility of release of energy are to be used to service, repair, test, adjust or inspect the equipment safely.

Employees will be trained in lockout procedures. Where lockout tags are used, the person who initiated the lockout on the machine must be in control of removing the lockout.

Only the employer may authorize another competent employee to remove a lockout tag from equipment or machinery if necessary only after verifying that no worker will be in danger due to the removal.

AT NO TIME SHOULD MACHINERY/EQUIPMENT BE LEFT IN AN UNSAFE CONDITION WITHOUT BEING TAGGED OUT.

Identify the machinery or equipment

Shut off the machinery or equipment

Label & Identify and de-activate all energy

Apply a lock/tag

Test it

See Lockout/Tagout Procedure.

5.2.17 Permits and Completion of Documents

There are several documents that are essential to our business. Employees must submit all requested documents deemed necessary by Haltech Testing Inc. in a timely fashion and in neat, legible writing. These documents are identified below:

1. Field Tickets

2. Time Sheets and Invoices

3. Worksite Hazard Assessments

4. Unit Inspections

5. Driver log books (hours of service)

6. Pre-trip and post-trip inspection reports (Kenworths)

7. Unit maintenance logs

8. Others as applicable

Until the above are properly and accurately completed and filled in, the operators pay cannot be processed.

5.2.18 Personnel Safety

All personnel involved in the produced fluids from (possible sour) wells shall:

1. Know the dangers and effects of hydrogen sulfide gas or any other chemical

hazard or biological hazards on site. Ceiling level exposure to a substance listed

in Schedule 1 Table 2 of the Occupational Health and Safety Code is not to be

exceeded at any time.

2. Be properly trained in the use of respiratory equipment.

3. Be clean shaven at all times. This is to facilitate the effective sealing of a

faceplate should respiratory protective equipment be required.

4. A worker must perform a negative pressure seal check before each use of a

respirator.

The contractor shall ensure that his employees are supplied with and wear all the necessary personal protective equipment required for the job as specified by regulatory requirements and in Haltech Testing Inc.s Health and Safety Program.

1. Wear approved hard hat while being in the vicinity or on any worksite.

2. Ensure employees are protected from traffic hazards.

3. At all times wear appropriate clothing.

4. Smoking is prohibited except in designated areas.

5. Entrance to any lease must be double checked with supervisor if the flare is out, if

there is any evidence of any gas leaks, and/or the H2S monitor detects a reading

above 10ppm. The lease operator will be notified if any of these conditions exist.

5.2.19 Public Relations and Highway Courtesy

All vehicles have equal rights on the highways. The way our units are operated will reflect upon our image. While we gain the respect of the public on the road, it is equally important that this image be conveyed while off the road whether at coffee shops or an inspection station.

Be conscious at all times that you represent Haltech Testing Inc. wherever you are!

5.2.20 Refuse Unsafe Work

Any worker has the right to refuse unsafe work. If you think that the work you do or the piece of equipment you use is unsafe you can stop this work immediately by citing your legal right to refuse unsafe work. Once you refuse to continue, procedures exist for rectifying the situation. Contact your supervisor or health and safety representative to find out how to correct the unsafe situation. Do not continue to work until you have been advised that the situation has been corrected. The supervisor will investigate the matter immediately ensuring that any unsafe condition is remedied or if in his or her opinion the report is not valid, must so inform the person who made the report.

5.2.21 Safety Belts and Lifelines and Rescue Equipment

Safety harnesses, rescue gear, ropes and equipment must be inspected visually and physically by qualified workers after each use, or when used for training purposes.

When it is impractical to provide work platforms and guardrails, all workers shall wear a CSA approved safety harness with a safety line, or wear a lanyard when:

a) Working on temporary work platforms 2.4 m (7.8 ft) or greater above the nearest

permanent safe level.

b) When work is being done over operating equipment or equipment hazards

such as protruding valves, or over water or open tanks.

c) When working from a temporary structure at a height of more than 6 m above a permanent safe

level

d) When working from a ladder at a height of more than 2.4 m above the nearest permanent safe

level where, because of the nature of the work, that person is unable to use at least one hand to

hold onto the ladder.

Use a safety rope or lanyard which is no more than 2m long and tied off so a worker can fall no more than 2m. Harness/fall arrest systems must meet three criteria:

1. They must be used only for the purpose for which they were designed.

2. All metal components must be built to withstand 4000 lbs. strain (17.8kN).

3. The rope or lanyard must be built to withstand the impact of a falling worker

(TEN times the workers body weight).

Safety harness must meet the design specifications outlined in CSA Standard Z259.10-M90. Anyone working on an elevated scaffold must have their safety harness tied into a lifeline, which is fastened to the top of the structure where the worker is working and extends freely to the ground.

5.2.22 Temporary Structures - Scaffolds and Platforms

For working above 3 meters, scaffolding must be in place ladders cannot be used. Scaffolding must be secured from accidental movement. All scaffolds, platforms and ladders used by the contractor shall be constructed, maintained and used in compliance with the applicable OH&S regulations & manufacturers specifications and erected by qualified personnel to minimum specs. While erecting scaffold, mark or designate it as unsafe. Scaffolding should only be designated as safe to use once erection and bracing is complete and mudsills/base plates, work decks, handrails and toe boards and sectional pining are installed and checked, the scaffold has been tied to permanent structure and outriggers are in place (when scaffold is above