HSE Management Manual

1 2 HSE MANAGEMENT POLICY ROLES & RESPONSIBILITIES

3 PROJECT SAFETY MANAGEMENT

Issued June 2006

4 HAZARD - RISK MANAGEMENT

Hierarchyof HazardControls

HAZARD CONTROLS
Engineering and Quality Control 8
8.1 8.2 Matrix Quality Assurance / Control Processes Industry Standards 8.3 Management of Change

SAFETY MEETINGS
AND

COMMUNICATIONS

Basic Safety (Including PPE) 9

9.1 9.3 General Safety Rules 9.2 PPE Requirements Respiratory Equipment Code of Practice

Hazardous Exposure Control

QUALIFICATIONS, ORIENTATIONS AND TRAINING

10

10.1 10.3 10.5

Benzene H2S NORM

10.2 10.4 10.6

Chemicals Noise Silica

Work Practices and Procedures 11

11.1 Confined and Restricted Space Entry Environmental Protection (including Spill Response) 11.2 Flammable Atmospheres

INCIDENT MANAGEMENT
Emergency Response Incident Reporting

11.3

11.4

Working Alone

12
DRAFT: April 2010

RECORDS MANAGEMENT PROGRAM ADMINISTRATION

Note: The sub-titles highlight the general content of each section and are not an exact representation of the titles

MATRIX DRILLING FLUIDS LTD.

HSE Manual Contents
Section Description HSE Management 1.0 HSE Management Plan
Manual Introduction Matrix Policies & Commitments

2.0

Roles and Responsibilities (Including Prime Contractor)

Overview of Owner, Prime Contractor & Employer Responsibilities Detailed Management & Field-Level Responsibilities Subcontractor Management Plan

3.0

Site Safety Management Plan (Including Work Permits)

Worksite Safety Plan and Checklists Work Permit Requirements and Work Permit Form Pre-Startup Safety Reviews and Checklist

Core Program Elements 4.0 Hazard Management (Including Inspections)

Summary of Hazard Identification Regulations Levels of Hazard Risk Assessment 5-Step Risk Assessment Procedure & Matrix Forms

5.0

Meetings and Communications

Tailgate Safety Meetings & General Safety Meetings Stakeholder Communications Working Alone Communications

6.0

Qualifications, Orientations and Training

Safety Orientations Basic Safety Training Requirements Worker Competency Assessment and Development

7.0

Incident Management
Emergency Preparedness Overview First Aid Transportation and Emergency Response Planning Matrix 5-Step Incident Reporting & Follow-up Process Regulatory Reporting Requirements Incident Report Form

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Hazard Controls 8.0 Asset Integrity

Matrix Quality Assurance / Quality Control Processes Worksite Inspections and Evaluations Applicable Industry Standards Management of Change

9.0

Basic Safety Rules and Requirements

General Safety Rules Impairment (includes Fatigue and Drug & Alcohol) Personal Protective Equipment Requirements Respiratory Equipment Code of Practice

10.0 Hazardous Exposure Control

Storage and Handling of Hazardous Material (WHMIS/MSDS/TDG) Hazardous Exposure Codes of Practice including:
Benzene Chemicals H2S Noise NORM Silica

11.0 Work Plans, Practices, and Procedures

Work Plans, Practices, and Procedures Overview List of Industry Recommended Practices Corporate Codes of Practice including:
Confined and Restricted Space Entry Flammable Atmospheres Environmental Protection (including Spill Response and Reporting) Working Alone

Program Administration 12.0 Records Management and Program Administration

HSE Management References and Records Index End of Project Records CD(s) with HSE Manual, Supporting Forms & Reference Documents; Handbook of Safety Standards & Practices (and more fun stuff!)

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1.0 HSE Management: Policy and Plan

Corporate HSE Commitment and Policies ..........................1 Matrix Scope of Operations ..............................................1 Client and Contractor Operating Standards .......................1 Program Philosophies .......................................................2 a) Recognized HSE Standards ............................................ 2 b) Industry Initiatives ....................................................... 2 c) Corporate Culture ......................................................... 2 1.5 Due Diligence ....................................................................3 a) Information & Instruction .............................................. 3 b) Training ...................................................................... 3 c) Supervision ................................................................. 3 1.6 Applicable Regulatory Requirements ................................4 1.7 Corporate HSE Policy ........................................................5 1.8 Petroleum Industry Guiding Principles .............................6 1.9 Discipline and Enforcement Policy ....................................7 1.10 Program Audits and Assessments .....................................9 1.11 References ........................................................................ 9 1.1 1.2 1.3 1.4

Forms:
01-01 Management Leadership & Commitment (AASP Section 1)

HSE Management Strategy

1.0 HSE POLICY
Based on the principles of CSA Z1000 and ISO 14000

5.0 MANAGEMENT REVIEW

2.0 PLANNING

4.0 CHECKING & CORRECTIVE ACTION

3.0 IMPLEMENTATION & OPERATION

Management, Leadership and Support What you need to know

Corporate Commitment to HSE HSE Management Strategy Required Plans and Programs

What you need to do

Commitment to Company principles & policies Establish required plans and programs Establish performance standards and track

Matrix Drilling Fluids Ltd.

HSE Management Manual

1.0 HSE MANAGEMENT: POLICY AND PLAN

1.1 Corporate HSE Commitment and Policies
Matrix Drilling Fluids Ltd. is committed to conducting its operations in a safe and environmentally responsible manner. To support this commitment, Matrix has: A Health, Safety and Environment Policy. This policy is posted in the Calgary office together with the Petroleum Industry Guiding Principles as a reminder of the companys commitment to worker safety. A Policy on Discipline and Enforcement. This policy outlines disciplinary steps that will be followed where breaches of Company Policy, including the HSE policy and work rules occur. A Drug and Alcohol Policy (See Section 8.0)

Copies of these documents are included in this manual.

1.2

Matrix Scope of Operations

Matrix designs drilling fluid programs and provides field support services to its Clients in one of three ways: 1. Full Service Field Support: Matrix provides a Drilling Fluid Technician to be on-site continuously to monitor drilling operations and ensure the effective implementation of the drilling fluid program. 2. Partial Service Field Support: Matrix provides a local Drilling Fluid Technician to periodically visit the wellsite to conduct a spot check to confirm drilling mud properties. 3. No Field Support: Matrix provides the Client with a copy of the drilling fluid program and arranges for delivery of the required chemical additives. No field support is provided.

1.3

Client and Contractor Operating Standards

This manual was prepared by Matrix to establish an appropriate minimum standard for its wellsite supervisors. In the absence of adequate Client or contractor standards, this manual will be used by Matrix Drilling Fluid Technicians to guide their decision making. In addition, Matrix management are on call to provide technical and operations support to its Clients and Drilling Fluid Technicians. This document recognizes that most of Matrixs clients have developed their own operating standards, procedures and supporting documentation which forms the basis and minimum criteria when conducting well supervision work on behalf of those clients. In addition, each contractor hired by the client is responsible for ensuring current relevant acts, regulations and codes of practice applicable to their work are addressed by their workers. Where differences exist between Client safety policies and procedures, Matrix will strive to implement the more stringent standard with a goal of zero worksite incidents.

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1.4

Program Philosophies
The following philosophies form the foundation for Matrixs HSE Program:

a)

Recognized HSE Standards

To fulfill this commitment, Matrix has developed a Health, Safety and Environmental (HSE) Management System based on: CSA Z1000-06: Occupational Health and Safety Management Environmental, Management Systems (ISO 14001) Health & Safety Management (OHSAS 18001 CSA Z1000)
5.0 MANAGEMENT REVIEW

1.0 HSE POLICY

2.0 PLANNING

4.0 CHECKING & CORRECTIVE ACTION

3.0 IMPLEMENTATION & OPERATION

Basic Safety Program (BSP) for Upstream Petroleum Industry (IRP Vol. 9) and the BSP Audit Protocol. OSHA Process Safety Management (PSM) requirements.

The foundation for these processes is shown in the diagram on cover page.

b)

Industry Initiatives
Matrix is committed to ensuring a strong future for our industry, the environment and the people of Canada. Matrix is a member of the Alberta Association for Safety Partnerships (AASP) and a supporter of the Stewardship Program. Matrix also recognizes the importance of the Partnerships program sponsored by Alberta Employment and Immigration and maintains a Certificate of Recognition for its safety program.

c)

Corporate Culture
Corporate culture is the largest factor that determines how effectively a companys safety initiatives will work. The corporate culture, as it is related to achieving safety excellence, is driven by the following criteria: Top management is visibly committed. Middle management is actively involved. Supervision is performance-focused. Workers are engaged and actively participating. HSE system is based on defined values but with flexibility to meet needs. HSE system is positively viewed by the workforce.

Based on the work of Dan Petersen, Ph.D.

The Bottom Line: Matrix management believes that safety becomes part of your entire life and not just something you only practice at the workplace.

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Matrix Drilling Fluids Ltd.

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1.5

Due Diligence
Matrix expects its managers and supervisors to have a clear understanding of their responsibilities within the HSE management system. Matrix believes that it is important to evaluate the effectiveness of safety management systems regularly. "Due diligence" is defined as taking all reasonable care to prevent the occurrence of an incident or event. Due diligence in safety management can be described as a system approach that provides information, instruction, training, supervision, verification of knowledge, and correction of physical and human hazards.

a)

Information and Instruction (Education):

This part of the system ensures that workers receive the appropriate level of education they need to work safely. Education routinely takes place in classroom-type group settings, crew talks, one-on-one safety reviews, or through written or verbal directions.

b)

Training:
Training typically takes place on the job assigned. A training system includes training standards, selection of trainers, supervision during training, verification of training, and demonstrated competencies when training is completed.

c)

Supervision:
This part of the system ensures: Verification of training and education Identification and correction of hazards Direct observation of workers Correcting unsafe or unwanted behaviour Direction and instruction of workers Response to worker questions and concerns Documentation

As part of its due diligence, Matrix management reviews it HSE programs annually. Any management follow-up actions are recorded using the Corrective Action Plan form included in this section of the manual.

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1.6

Applicable Regulatory Requirements and Inspections

Within Canada, 80% of oil and gas development occurs in Alberta. With this in mind, the content of this manual is focused primarily on Alberta HSE regulatory requirements. Where appropriate, references are made to other provincial regulations where those requirements exceed or differ significantly from the standards established for Alberta. Overall, the differences are minimal as a result of the significant efforts being made to harmonize industry standards and regulatory requirements across Western Canada. A summary of the principle regulators and the applicable regulations is included in Section 12. This manual is developed in consideration of the following regulatory jurisdictions: Alberta British Columbia Saskatchewan

Specific Matrix policy documents and external regulations, standards and practices relevant to Matrixs operations are identified on a section-by-section basis. Where possible, electronic copies of these documents are provided in the HSE Utility CD. In some instances, due to copyright laws or information available only online, it is necessary to take the reader directly to a website for additional information. These links will be identified by italicized, blue underlined text. All workers, contractors, sub-contractors and vendor representatives will comply with all applicable provisions of Federal, Provincial and local laws and codes. Where regulations apply to a given task, the regulations and codes will be the minimum requirement. Matrix recognizes and adheres to the laws, codes, regulations and standards relevant to its operations. In addition to workplace health and safety requirements, the company is aware of the compliance requirements as outlined in the ERCBs Directive 19 as well as a Summary of Key Compliance Issues. Employees and contractors are reminded that: The enforcement process is simplified to include two enforcement processes: one for high risk and one for low risk activities. Enforcement actions are based on the risk levels predetermined by the ERCB. Enforcement actions will be escalated for persistent non-compliance; prompt reaction is expected and required whenever non-compliances are identified.

Regulatory agencies may also carry out formal inspections at varying frequencies depending upon perceived risks and location. Copies of any inspection reports that are generated as a result of an inspection must be forwarded to the Matrix representative responsible for the operations. The process for reporting regulatory inspections is outlined in Section 7.0, Incident Management.

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1.7

Corporate HSE Policy

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1.8

Petroleum Industry Guiding Principles

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1.9

Discipline and Enforcement Policy

Outlined below are the disciplinary steps that will be followed where breaches of company policy occur, including Matrixs HSE policy and work rules. Generally, all four steps will be employed. However there may be instances where, due to the seriousness of the offence, the process will begin at a higher level. The severity of the situation may justify immediate dismissal.
A NATURE OF INFRACTION Verbal Warning Examples may include minor breach of Client or Contractor policy or duty; however, no personal injury or property damage has or might reasonably be expected to have resulted. COMMENTS Contractor Management and the worker should privately discuss the incident. Management should present the facts and clearly describe the problem. Management must seek input from the worker on how to address the problem, what time frame should be set for resolving the problem and what follow-up discussions should occur. Unless requested by the worker, written documentation is at the discretion of Management, though noting the date of the discussion is recommended. A record of all verbal warnings will be maintained to provide supporting documentation in the event that escalating disciplinary action is required. Management and the worker privately discuss the incident. Management needs to check that the worker is clearly advised of: - Client or Contractor expectations regarding the issue - the specific behavior that was unacceptable - what is necessary to correct the situation - the designated time frame to improve, and; - the consequences of failure to improve. Contractor Management and their worker must document corrective actions. Contractor Management discusses the issue privately and then with the worker. Management will confirm that the worker has been clearly advised of all the issues outlined in Step B. The Contractors Manager, Matrix Wellsite Supervisor, and worker must document corrective actions and a copy must be placed on the workers file. When immediate action is necessary or when all the facts are not available, the Supervisor may suspend the worker with pay for up to five working days to permit investigation of the incident. Management shall meet to review the circumstances surrounding the infraction. Following the meeting, Management will inform the worker if there will be a suspension with or without pay or termination of employment.

Written Warning Examples may include breach of Client or Contractor policy or duty, an incident where risk of personal injury or property damage was evident, or a repeat of Step A.

Written Warning Breach of Company policy or duty, an incident resulting in minimal personal injury or minimal property damage, or a repeat of Step B. Suspension Breach of Company policy or duty; actions resulting in, or in the Supervisors opinion, an incident which could or had the potential for serious personal injury or significant property damage; insubordination or other action by a worker, which may justify dismissal for cause; or a repeat of Step C.

Note: For infractions where intoxication is suspected, refer to the Matrix Drug and Alcohol Policy regarding company guidelines for alcohol and drug testing.

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The following are examples, but are not limited to, the actions which shall involve discipline according to the aforementioned guidelines: 1. 2. 3. 4. 5. 6. 7. 8. Stealing or willful damage to property; Working while impaired by alcohol or drugs; Habitual tardiness; Smoking in areas where such is prohibited; Having open fires where such practice is forbidden; Carelessness in regard to accident prevention and/or safety of fellow workers; Refusal to comply with Company or Governmental Safety Regulations; Failure to report or failure to report accurately to the proper authorities, whenever required, accidents, operational breakdowns, personal injuries, etc.; Insubordination, including refusals or failure to perform work at any time when called upon to do so, unless work is considered excessive, unsafe or illegal; Absence from duty without notice to, or permission from the immediate Supervisor; Sleeping while on duty; Obtaining materials from storehouse or other assigned places without proper authority; Malicious mischief resulting in personal injury or destruction of Company or worker property; Divulging confidential Company information; Unauthorized use of a Company vehicle; Accumulation of traffic violations, which put drivers license and/or Company vehicle insurance at risk. Non-compliance with Matrix driving policy and/or provincial law.

9.

10. 11. 12. 13. 14. 15. 16. 17.

Notwithstanding the procedures outlined above, there may be circumstances where the nature of the infraction is so serious that, upon review by Matrix Management, the employment of the offending worker may be terminated immediately with cause.

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