Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30,...

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Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center
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Transcript of Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30,...

Page 1: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

Shell Exploration and Production Company2010 North Louisiana Wells Contractor HSSE Forum

June 30, 2010

Shreveport Convention Center

Page 2: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

Shell Exploration and Production Company2010 North Louisiana Wells Contractor HSSE Forum

Welcome and Safety Briefing

Yesim Jonsson

CP Category Manager

Page 3: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

Forum Agenda

•Welcome and Safety Briefing, Yesim Jonsson

9:00 – 9:10

• Opening Comments, Dave Carpenter

9:10 – 9:20

•Goal Zero, Life Saving Rules, Jim Miller

9:20 – 9:50

•Lifting and Hoisting Standard, Rodger Simmons

9:50 – 10:20

•Break 10:20 –

10:30

•DROPS, Mark Price

10:30 – 11:00

•Contractor HSSE Management Process, Mike McRill

11:00 – 11:30

•Road Transportation – Journey Management, Mark Chustz

11:30 – 12:00

•Break (Lunch) 12:00 –

12:30

•Feedback Session, Q&A, Jim Miller 12:30 –

12:50

•Closing Remarks, Dave Carpenter

12:50 – 13:00

Page 4: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

Shell Attendees

Dave Carpenter – Well Delivery Manager

Mark Chustz – Drilling Superintendent

Jim Miller – Drilling Superintendent

Mark Price – Drilling Superintendent

Rodger Simmons – Completions Superintendent

Yesim Jonsson – CP Category Manager

Mike Mc Rill – HSSE Specialist, CSMP

Steve Ellis - HSSE Technician

Tom Ulrich – Construction Superintendent

Roman Esqueda – Senior Road Transportation Assistant

Page 5: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

Shell Exploration and Production Company2010 North Louisiana Wells Contractor HSSE Forum

Opening Comments

Dave Carpenter

Well Delivery Manager

Page 6: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

Magnolia - AMI

Shell Operations 2008-2009 spud 28 wells Majority of wells in J Block Average of 4 rigs, ramped to 7 E09

EnCana Operations 2008-2009 spud 65 wells Adcock & Bolan Began drilling southern AMI

2010 combined 170-180 wells (budget) Shell will average 10 rigs

D&C Challenges or 2010 & beyond:• Safe Rampup & Improving HSE• More subsurface complexity• Hotter wells• Well design (ECA, H2S, Cost)• Conversion to Development (PAD)• D&C Optimization for Cost/Performance• Water Management• Development Pilots

6

Approx Loc

Field Office

Deeper, hotter

H2S

Area?

Geologically

Complex

Page 7: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

HSE Incidents & Events – North Louisiana

Footer: Title may be placed here or disclaimer if required. May sit up to two lines in depth. May appear on Title pg.

Page 8: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

Shell Exploration and Production Company2010 North Louisiana Wells Contractor HSSE Forum

Goal Zero, Life Saving Rules

Jim Miller

Drilling Superintendent

Page 9: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

Leadership Core PackFinal version 5

Updated 5/03/10

Page 10: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

Slide 10

• Aim is to prevent harm to people

• 12 high-risk operations at work

• Consistent set of rules > culture of compliance

• Not new. Most staff adhere already every day

• Mandatory Compliance for work-related activities

• Applicable to all operations under Shell’s operational and/or governance control

• Minority interest JVs encouraged to participate

• Each reported non-compliance will be investigated

• Failure to comply will result in disciplinary action, up to and including termination of employment for Shell employees or, for employees of contractors or sub-contractors, removal from site and disqualification from future Shell work.

• Supervisors are held accountable to communicate and ensure compliance

Life-Saving Rules

Summary

Page 11: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

Slide 11

• Shell General Business Principles: our shared core values of honesty, integrity and respect for people, underpin all the work we do and are the foundation of our Business Principles

• Our Golden Rules – You and I:• Comply with the law, standards and procedures• Intervene on unsafe or non-compliant actions• Respect our neighbours

Goal Zero means no harm to people

Respecting and Valuing our People

Page 12: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

Slide 12

BGoal ZeroNo Harm

A

Compliance with the rules would have saved many of these lives

350+ Fatalities 2000 – 2008

Fact

Page 13: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

Slide 13

BNo HarmGoal Zero

• We have 12 clear and consistent Life-Saving Rules

• We expect everyone to comply with these Rules

• We are investigating each potential violation

• We are holding people accountable: management, supervisors, staff, contractors, sub-contractors

Where are we?

Page 14: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

Note: Commuting, alcohol in social settings and smoking in office environments are out of scope Slide 14

Work with a valid work

permit when

required

Conduct gas tests when required

Verify isolation

before work begins and

use the specified life protecting equipment

Obtain authorisatio

n before entering a confined

space

Obtain authorisation

before overriding or

disabling safety critical equipment

Protect yourself

against a fall when working

at height

Do not walk under a

suspended load

Do not smoke outside

designated smoking

areas

No alcohol or drugs

while working or

driving

Wear your seat belt

While driving, do not use your phone and do not

exceed speed limits

Follow prescribed

Journey Management

Plan

1

7

2

8

3 5

11

6

129 10

4

Life-Saving Rules – what are they?

Page 15: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

Slide 15

• Incidents and rule-breaking will be investigated thoroughly

• Failure to comply with any Life-Saving Rule will result in disciplinary action. - For Shell employees this includes termination of employment. - For contractors this includes removal from Shell sites and no

longer working for Shell companies.

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

• In addition, if a supervisor sets the conditions for rule breaking or fails to follow through if one is broken, maximum appropriate disciplinary action will apply.

Consequences of Rule-breaking

Page 16: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

Slide 16

• The investigation will take into account where the violation took place.

• For violations in high-risk operations we apply the general principle that if you choose not to comply, you choose not to work for Shell.

• High-risk is defined as:– all industrial operations – see rules 1 to 9 – for professional drivers under our operational control – see rules 9

to12– all business driving in defined ‘high-risk road environments’ – see

rules 9 to12

• For violations in lower risk areas, disciplinary action ranges from a verbal/written warning, suspension from duties, reduced IPF, and up to and including termination of employment for staff; or removal from site and disqualification from future Shell work for employees of contractors or sub-contractors.

Consequences of Rule-breaking

Page 17: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

Slide 17

• Know the Life-Saving Rules – purpose, application and consequences for non-compliance

• Ensure and verify all Shell employees and all contractors within your remit have been verifiably briefed

• Communicate, communicate, communicate

• Lead from the front and through personal example

• Face up to the hard people decisions

• Verify, measure and continuously improve compliance

The Role of Leaders

Page 18: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

Slide 18

• “Business drives …” Business leaders supported by HSSE, HR and CX are accountable for communicating the Rules and ensuring compliance

• “… Country coordinates …” Country Coordination Teams (CCT) led by Country Chair are accountable for one, integrated country approach

• “… HR and CX support.” Country HR is accountable for ensuring consistency in application of disciplinary action and CX support CCT in establishing an integrated message

Timeline:

• July 1, 2009: Life-Saving Rules fully enforced

• March – May 2010: Leaders to re-engage with employees and contractors (via contract holders) on where we are in our Life-Saving Rules journey

• Q2-Q4 2010: Ongoing engagement on the Rules through mini-campaigns

Implementation

Page 19: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

Slide 19

• Golden Rules remain

• Life-Saving Rules are mandatory minimum requirements

• Any existing rule that duplicates any Life-Saving Rule must be replaced by the relevant Life-Saving Rule

• Other equally important job or site-specific rules should not be called Life-Saving Rules

• The Life-Saving Rules do not replace or invalidate the other business, operational and safety rules in force at your workplace, or release you from your duty to comply with these

Life-Saving Rules and other rules

Page 20: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

Life-Saving Rules – 2009 performance

1205 Life-Saving Rules violations (~200/month) were reported globally between July and December 2009

Most violations in road safety (mobile phone use and speeding), followed by personal safety (working at height, alcohol and drugs use)

We are serious about following through on the consequences of rule breaking:

all employees who violated the Rules were subject to maximum appropriate disciplinary action up to and including dismissal

we dismissed a significant number of employees as a result of non-compliance and will continue to do so

contractors who violated the Rules were removed from site and in some cases, complaint letters were sent to contractor companies

Violations Workforce

Total

RDS (Jul- Dec 09) 116 8 30 22 16 220 19 48 115 181 322 108 1205

Page 21: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

Life-Saving Rules – how we measure success

Success is NOT measured by the number of employee and contractor dismissals

Success is fewer injuries and fatalities because of compliance with the rules

• Shell had its best ever safety performance in 2009 with Life-Saving Rules playing a role

• Successful intervention in over 1200 violations has helped prevent injury and save lives

Page 22: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.
Page 23: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

Shell Exploration and Production Company2010 North Louisiana Wells Contractor HSSE Forum

Lifting and Hoisting Standard

Rodger Simmons

Completions Superintendent

Page 24: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

To prevent incidents associated with lifting and hoisting. This standard

establishes Shell Exploration and Production Company’s (SEPCo) requirements for the:

• Operation, maintenance, testing, certification, inspection, and design of

lifting equipment, and

• The competency and qualifications of individuals involved with these

operations.

Applicability

This standard applies to work performed on:

• SEPCo well locations,

• Leases, or

• Right-of-ways.

Purpose

Page 25: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.
Page 26: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

Lift Sponsor

When planning and executing lifting operations, the Lift Sponsor shall do the following:

• Use the Lift Categorization and Work Authorization Table.

• Ensure that the lift area(s) is:

• controlled to ensure individuals are safeguarded from entering the path of the load, and

• adequately sized for load’s size and weight.

• Verify that the answers to Appendix E: Ten Questions for a Safe Lift are addressed in a Toolbox Talk.

• Ensure applicable lift planning requirements contained in this section are met.

Appendix E: Ten Questions for a Safe Lift

Page 27: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

Lift Risk Categorization Table

Page 28: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

Training

Onshore Mobile Rigger / General Lifting Appliance Operation and Rigging ( Combined )

NCCCO Equivalency

Aerial Platform Operation ( manlift )

Gin Pole Truck / Auto Crane Operation and Rigging

Powered Industrial Truck Operation

Powered Overhead Crane Operation and Rigging

Man-Riding Winch Operation

Page 29: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

Slings – Synthetic

Must have Frequent and Periodic Inspections.

Frequent Inspection - Prior to use the QP shall complete frequent, undocumented inspections as follows:

• Check for defects such as damage and deterioration and verify is has current certification.

•Slings without a valid certification will note be used.

•Note: Any sling without a certification tag must be removed from service and recorded in the inventory. The sling must be re-certified prior to use. Slings must be removed from service if any inadequacy is found.

Periodic Inspection - Are required to:

• be replaced annually and have a Certificate of Conformity ( CoC) available upon request indicating the sling is less than 1 yr old. Logged into sling inventory list. Stored in an enclosed area to minimize exposure to moisture, UV rays and chemicals.

• should have a legible tag marked with the working load and certification and manufacture date and be inspected by a Qualified Rigger to ensure that the flowing does not exist:

• cuts, tears, or abrasion,

• fraying or bursting of stitching

• penetration of foreign bodies

• damage from heat or chemicals, and

• distortion or excessive wear of the metal eyes, where fitted

Page 30: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

Slings – Wire Rope

Must have Frequent and Periodic Inspections.

Frequent Inspection - Prior to use the QP shall complete frequent, undocumented inspections as follows:

• Check for defects such as damage and corrosion. Check for proper configuration (the lifting assembly and associated hardware, as load tested). Ensure the sling has current certification.

•Note: Any sling without a certification tag must be removed from service and recorded in the inventory. The sling must be re-certified prior to use. Slings must be removed from service if any inadequacy is found.

Periodic Inspection - The QP shall perform and document periodic inspections as follows::

• File sling annual inspection records and certification papers must accompany slings.

Certification of Wire Tope Slings – Certification tags must list the following:

• Sling manufacture

• Working load limit

• Proof test certification number

• Sling length and diameter

• Date of proof test

• Rated load for the type of hitches and the angle upon which it is based

Slings used to pre-sling cargo must bear a certification tag not more than one year old. The certification tag must clearly indicate certification date.

Page 31: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

Sling Inventory

An up-to-date sling inventory of all slings kept on location must be readily available for audit. The inventory must contain the following information:

• Certificate number

• Date of certification

• Working load limit

• Basic description of sling (size, length, etc.

• Name of manufacture / certifying test facility

Page 32: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

Miscellaneous lifting hardware

All below the hook lifting devices and rigging hardware are subject to Frequent and Periodic Inspections similar to slings.

Such as:

• Spreader Bars / Special lifting devices

• Chain slings

• Eyebolts

• Turnbuckles

• Shackles

• Hooks

Page 33: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

Mobile Cranes

During lifting operations the QO (Qualified Operator) shall not hoist a load over personnel. ( LIFE SAVING RULE )

Obtain a Safe Work Permit approved at the SEPCo Supervisor level or above for bypassing the boom kick-out, and anti-two blocking or other safety devices.

Frequent Inspections - The QP shall perform daily and monthly documented inspections prior to use.

Periodic Inspections – shall be documented as follows:

• Permanently affix a tag to the equipment showing that it passed inspection. The tag must include:

• Date of inspection

• Person who performed inspection

• Unit or serial number

• Date the inspection expires

Tag Lines - must be used on all lifts for mobile crane operations.

Page 34: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

Gin Pole Trucks

Frequent Inspections - The QP shall perform daily and monthly undocumented inspections prior to use.

Periodic Inspections – shall be documented as follows:

• Permanently affix a tag to the equipment showing that it passed inspection. The tag must include:

• Date of inspection

• Person who performed inspection

• Unit or serial number

• Date the inspection expires

• Inspect critical items such as:

• hoisting machinery

• sheaves

• hooks

• chains

• ropes

Page 35: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

Powered Industrial Trucks ( Forklifts ) and Aerial Platforms

Frequent Inspections - The QP shall perform daily and monthly undocumented inspections prior to use.

Periodic Inspections – shall be documented as follows:

• Permanently affix a tag to the equipment showing that it passed inspection. The tag must include:

• Date of inspection

• Person who performed inspection

• Unit or serial number

• Date the inspection expires

Page 36: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.
Page 37: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

Answers to Frequently-Asked Questions

Slings The following is a list of frequently-asked questions regarding the SEPCo Lifting and Hoisting Standard. Answers have been provided by the Document Custodian. Question Answer

1. Can you hook a stinger into an existing stinger to make a longer stinger?

1. The preferred method is to get a longer stinger made.

2. What do I have to do with my wire rope slings? Re-certify or just annual inspections?

2. Wire rope slings used for everyday use (not pre-slung) only have to have an annual inspection performed on them.

3. Do I need to have my slings third party inspected?

3. No, but only a Qualified Person can inspect slings.

4. Do I have to pull test my wire rope slings yearly at my location?

4. No. Only the pre-slung slings require annual recertification. Slings that are at your location are good for the life of the sling as long as they have a current annual inspection and manufactures tag is still in place.

5. Are my synthetic slings only good for one year or can they be inspected for continued use?

5. Synthetic slings are only good for one year after the manufacture date.

6. Synthetic slings that have never been in service and have been stored in a warehouse. Do I have to throw them away after one year?

6. Yes. Synthetic slings are only good for one year after manufacture date.

7. I have a set of pre-slung slings that have been on location for more than a year and they are out of date for the one-year requirement. What do I need to do?

7. The slings have to be inspected by a Qualified Person. Tagged with the inspection date, the QP’s name, QP’s signature, and the load manifested to indicate that the sling is out of certification and have been inspected by a QP.

Page 38: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

UACONTRACTOR.COM

Page 39: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

Shell Exploration and Production Company2010 North Louisiana Wells Contractor HSSE Forum

Break

10 Minutes

Page 40: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

Shell Exploration and Production Company2010 North Louisiana Wells Contractor HSSE Forum

DROPS

Mark Price

Drilling Superintendent

Page 41: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

Shell NLA Dropped Object Prevention Scheme

DROPS

Page 42: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

Shell NLA Dropped Object Prevention Scheme

Who are these guys?

Page 43: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

Ben Franklin (1706 – 1790)- Founding Father- Political theorist- Author- Inventor

“…in this world nothing can be said to be certain, except death and taxes.”

- Letter to Jean-Baptiste Leroy (13 November 1789)

Page 44: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

Let’s add one other thing to be certain of:

GRAVITY

Page 45: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

Want to take a guess now?

Need a hint?

Page 46: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

Sir Isaac Newton (1643 – 1727)

- Physicist- Mathematician- Astronomer- Natural philosopher- “Theory” of Gravitation

In our business, gravity is a LAW!

Page 47: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

Breaking the law involves serious consequences:

Onshore Gas 2009: 80 HIPOs from Dropped Objects

Onshore Gas 2010 YTD: 67 HIPOs

Two fatalities: Wyoming 6-24-2008 (dropped joint of DP)

South Texas 4-6-2009

(Equip dropped from forklift)

Page 48: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

EP 2009-9039 – Prevention of Dropped Objects

Sponsor: Peter Sharpe

Sets out the mandatory requirements to prevent harm to personnel and damage to equipment from dropped objects in the execution of Shell’s drilling, completion and well intervention activities

Page 49: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

Requirements for DROPs:

• DROPS Lead for each location

• Systematic DROPs inspection program

• Worksite hazard management for DROPs:

• Tubular handling checklist

• Pipe clamps on forklifts

• Secondary retention devices

• Derrick equipment inventories

• Maintenance management

• Tethered tools used at height

Page 50: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

Requirements for DROPs:

•Complete register of lifting equipment

• Incident reporting using DROPs Calculator

• No-Go Zones

• Red Zones

• Forbidden Equipment & Practices list

Page 51: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

No-Go Zones:

• High potential for dropped objects

• Access controlled by PTW

• Physically marked off with rigid or chain barriers.

Page 52: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

Red Zones:

• Medium potential for dropped objects

• PIC is accountable for controlling access.

• Gates across access points to:

• Provide additional control

• Increase awareness

Page 53: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

Forbidden Equipment & Practices

• Home-made lifting devices (must have certification).

• Hammers w/ wooden handles used at height.

• Use of welding rods, tie-wraps, wire instead of engineered split pins or safety pins.

• Use of hooks on winch line rigging or stabbing board.

• Slings wrapped around derrick / mast beams.

• Unsecured water bottles, grease tubes / guns, etc.

• Drifting stands of DP in the derrick.

Page 54: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

Thanks for your attention!

Page 55: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

Shell Exploration and Production Company2010 North Louisiana Wells Contractor HSSE Forum

Contractor HSSE Management Process

Mike Mc Rill

HSSE Specialist, CSMP

Page 56: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

Contractor HSSE Management – Why?

Contracted work accounts for ~83%

of total exposure hours and ~88% of

injuries in Shell UA;

To achieve an injury free workplace

Shell and Contractors must be fully

aligned in HSSE values and

objectives;

Shell must recognize and partner with

Contractors demonstrating the ability

to manage HSSE consistent with

Goal Zero.

Page 57: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

CONTRACTOR HSE MANAGEMENT – UA MISSION

Page 58: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

UA CONTRACTOR HSSE MANAGEMENT TEAM

Lenda D. Jones Admin

Stacey KelleyCtr HSE-SD SpecialistCanada LeadWells & Projects

Pierre Trottier Ctr HSE-SD SpecialistProduction

Rusty Fralic Ctr HSE-SD SpecialistRockies

Mike McRillCtr HSE-SD SpecialistSouth Texas & Magnolia

Jimmy SchwingCtr HSE-SD SpecialistGOM Wells & La Onshore

Daniel Dupre Ctr HSE-SD SpecialistGOM Production, Construction & Logistics Jim Hiebert

Ctr HSE-SD SpecialistWind Energy, Geomatics & Geophysical

Dale SudermanCtr HSE-SD Specialist(Groundbirch)Projects & Production

Stephan Buffington Ctr HSE-SD SpecialistLegacy, Aviation & Env.

Hana Necas Ctr HSE-SD SpecialistProduction & ISN FP

Bill WesterCtr HSE-SD Specialist(Alaska)Wells, Logistics & Production Houston Based

Calgary Based

New Orleans Based

Jody LicatinoContractor HSE-SD Manager

Jeff EdwardsUA Safety Manager

Denver Based

Fausto Barbosa HSE Manager(Brazil)

Page 59: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

CONTRACTOR HSE MANAGEMENT

Applies to Mode 1 and 2 Medium and High Risk Contracts

• Contractor Provides Services at Shell Job Sites

• Contractor Provides Logistics Services to and from Shell Job Sites

• HSSE Risks Managed Under Shell HSE Management System or Contractors HSE Management System

Does not Apply to Low Risk or Mode 3 Contracts

• Contracts that Provide Material Only

• Contracts that Provide Off Site Services

• Contracts Designated as Low Risk

Page 60: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

Contractor HSE Management

Page 61: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

CONTRACTOR HSE MANAGEMENT

Low Risk Activities• Mudlogging

• Fishing

• Drilling Fluid Services

• Directional Services

• Rentals

• Casing Cleaning

• Slickline

• Inspection

• Solids Control

• Chemical Treating

Page 62: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

CONTRACTOR HSE MANAGEMENT

IS Networld

• Membership Required for all Applicable Contracts

• Dashboard Grade (Red, Yellow, Green) Reflects MSQ, HSE Stats and RAV’s

• 65% Minimum to be Graded Yellow

• Dashboard Reds May Require Variance to Continue Working for Shell

• Keep MSQ, Stats and RAV’s up to Date (at least quarterly)

Banding

• Color (Red, Yellow, Green) Assigned Based on Assessment Score

• Takes Precedent Over Dashboard Grade

• Red Banding Requires Variance to Continue Working For Shell

Page 63: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

CSMP - Magnolia

166 Total Contracts

122 Managed in CSMP

44 Mode 3 (no on-site services)

Page 64: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

CSMP – Contractor Assessments

Leadership & Commitment • Written HSE Policy Statement

• Upper Management Participation in Safety Meetings, Field Visits, Audits, Safety Committee, Incident Investigations

• Upper Management Held Accountable for HSE Results

Policy & Strategic Objectives• Yearly HSE Goals, Targets and HSE Plans

• HSE Manual

• Employee/ Supervisor HSE Roles Clearly Identified and Communicated

Page 65: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

CSMP – Contractor Assessments

Organization, Responsibilities, Resources, Stds & Documentation

• Employee HSE Training Program

• Short Service Employee Program, New Hire Orientation Program

• Drug & Alcohol Testing Program

• Behavior Based Safety Program

• Management of Change Program

Hazards & Effects Management• Hazard ID Training/Hazard Hunts

• Job Safety Analysis Process

• HAZCOM Program

• Fitness to Work Program

Page 66: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

CSMP – Contractor Assessments

Planning & Procedures• Written Emergency Procedures

• Preventive Maintenance Program for Equipment and Vehicles

• Equipment /Facility Inspection Program

• Driver Improvement Program

• Journey Management Program

Implementation & Performance Monitoring• Workplace Hazard Monitoring Through Regular Inspections

• Employee HSE Incentive/Recognition Program

• Incident History

• Incident Investigation Process

• Corrective Actions Tracked to Closure

Page 67: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

CSMP – Contractor Assessments

Auditing & Review• Audits/Reviews of Company HSE Management System

• Management Monitors Closeout of Audit and Self Inspection Findings

• Audit Findings Shared to Prevent Recurrence

• External Audits

Page 68: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

CSMP Magnolia – Going Forward

Prioritize Contractor Focus

10 to 15 Contracts in Each Area

Based on Exposure, Risk, Program Maturity, Incident History

Regular Interaction

Participate in Safety Meetings

Monitor Improvement Plans

Track Progress

Understand Challenges

Page 69: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

CSMP - Magnolia

Questions?

Page 70: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

Shell Exploration and Production Company2010 North Louisiana Wells Contractor HSSE Forum

Road Transportation – Journey Management

Mark Chustz

Drilling Superintendent

Page 71: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

Gravity is a law…

Death & Taxes are certainties…

In our business, DRIVING is also a certainty

Road Transport – Journey Management

Page 72: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

2010 YTD Magnolia

3 of 5 Life Saving Rules Violations have been related to Road Transport

Mobile Phone Use & Seatbelts

1 of 9 HIPO’s have been related to Load Securement of tubular

Actual incidents......fatigue, failure to yield

Learnings from the incidents have shown:

We need to ELIMINATE or CONTROL EXPOSURE to HAZARDS

Why Focus on Road Transport?

Page 73: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

Road Transport – Journey Management

3 Main Take-Aways for Today

Seat Belts & Cell Phones

Community Interaction

Load Securement

Page 74: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

Road Transportation – Journey Management

Life Saving Rules focus area

Highest project level

risk

Community Interaction

How does your company ensure compliance?

Page 75: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

Shell North Louisiana Transport Inspection Scorecard

May 2010

Overall Asset Score

95%

Improvement Areas:

First Aid Kits missing in vehicles.

Safety/Road Guard Vest missing.

Spotter use while backing up on location.

Categories Scores Inspections Completed & Percent Compliant

Annual Progress

North Louisiana Vehicles InspectedCommercial Vehicles Inspected

101Light Vehicles Inspected

1

Shell Vehicles Inspected 0 Other 1  Total Inspections 103

Page 76: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

Transport ManualDriver Safety and Professional Driver Safety

Page 77: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

01 0302 0504 0706 0908 1110 1312 1514

Driver Safety – Minimum Requirements

PurposeTo manager the Risk of driving and transporting people and goods on Company Business

Who is this for?Managers; Line Managers; Supervisors; Contract Holders; and Drivers

Drivers on company business and, where applicable, passengers are responsible for requirements 1 – 9.

Shell supervisors responsible for personnel who drive on company business, and managers, are accountable for requirements 10 to 15. Contract holders are responsible for requirement 15.

DRIVER AND PASSENGER REQUIREMENTS

RISK MANAGEMENT OF ALL DRIVERS

GO

GO

Page 78: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

01 0302 0504 0706 0908 1110 1312 1514

Driver Safety – Driver and Passenger Requirements

03

Use three-point seatbelts at all times and make sure passengers do so.

The only exception is for passengers in buses where only lap belts are available, or in public transport in which seatbelts are not available.

'This is a Shell Life Saving Rule'

Page 79: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

01 0302 0504 0706 0908 1110 1312 1514

Driver Safety – Driver and Passenger Requirements

04

Do not make a call or answer a mobile phone or pager, send or read a text message, or use a hands-free mobile phone device while driving a Vehicle.

1. Communication devices (i.e. 2-way radio, mobile phone) may only be used in Vehicles where permitted by legislation:

• in cases of Emergency and/or personal safety or security situations;

• as part of convoy management;• radio assisted roads (calling Km’s); or• during an Emergency or time sensitive operation

when needed to maintain safe control of equipment or processes.

'This is a Shell Life Saving Rule'

Page 80: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

PaperworkProper manifests & permits required for each load

Securement SystemTotal working load limit is rated for at least 100% of article weightChains

- 5/16” grade 70 transport chain is minimum- ratchet-style binders only

Straps- 4” minimum on trailer decks & 2” minimum inside baskets and beds

Tubulars- 4” straps every 10 ft over entire load- properly stripped & chocked

InspectionDriver re-examines load & securement within first 50 miles & every 150 miles

Load Securement

Page 81: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

Training & Resources

www.uacontractor.com– RT Standard & other related documents

– IVMS information

– Journey Management

– Contractor Gap Assessment summary

Page 82: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

Contractor’s Assistance & Next Steps

• Ensure all staff has reviewed & acknowledged the 12 Life Saving Rules

• Reporting of all hazards, incidents/accidents and near misses.– Includes driving related incidents, load securement incidents, incidents with

animals, etc.

• All contractors to complete RT questions in ISN (On Hold)

• Road Transport Specialists – conduct on-site gap assessments with contractors

– conduct teach & train sessions with contractors and Shell staff

– gap closure verification

• December 2010 – full implementation of Road Transport Standard

Page 83: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

Shell Exploration and Production Company2010 North Louisiana Wells Contractor HSSE Forum

Lunch Break

30 Minutes

Page 84: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

Shell Exploration and Production Company2010 North Louisiana Wells Contractor HSSE Forum

Feedback Session, Q&A

Jim Miller

Drilling Superintendent

Page 85: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

Shell Exploration and Production Company2010 North Louisiana Wells Contractor HSSE Forum

Closing Remarks

Dave Carpenter

Well Delivery Manager

Page 86: Shell Exploration and Production Company 2010 North Louisiana Wells Contractor HSSE Forum June 30, 2010 Shreveport Convention Center.

2010 North Louisiana Wells Contractor HSSE Forum

Meeting slides to be posted at:

http://www.uacontractor.com