HEALTH, SAFETY & ENVIRONMENTAL HANDBOOK

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HEALTH, SAFETY & ENVIRONMENTAL HANDBOOKDTC ENERGY GROUP, INC.2012 EDITION1

HEALTH, SAFETY & ENVIRONMENTAL HANDBOOK2012 EditionThis handbook applies to all DTC Energy Group, Inc. personneland will be referred to as the DTC Energy Group or DTCHealth, Safety & Environmental (HSE) Handbook.This handbook serves as a reference for minimum rules and standardsat DTC Energy Group operations and facilities.The guidance in this handbook is not all-inclusive.Area and local management may adopt more stringent rulesand standards to meet specific needs.Contractor rules and standards must meet or exceed the requirementsof this handbook as well as any related regulatory requirements.Compiled and revised by Robert Sylar, CEO, Luke Clausen, COO and DTC Staff forDTC Energy Group, Inc. for use while training or operating at our sites and facilities.This manual was prepared to improve safety awareness and facilitate safety training.“Leadership in safety through example”2

Table of ContentsHSE SLOGAN . 1HSE MISSION . 1HSE POLICY . 1RESPONSIBILITIES .1-3- Management .1-2- Employees . 2- Contractors .2-3SAFETY RULES . 3DRUG, ALCOHOL AND FIREARM POLICY .3-4PERSONAL PROTECTIVE EQUIPMENT (PPE).4-9- Head Protection . 5- Eye Protection. 5- Face Shields . 6- Hearing Protection . 6- Hand Protection . 6- Foot Protection .6-7- Clothing . 7- Respiratory Protection.7-8OFFICE SAFETY .8-9- Workstation ErgonomicsSAFETY STANDARDS .9-26- Confined Space Entry .9-12- Electrical Safety .12-14- Energy Isolation (Lockout/Tagout – LO/TO) .14-16- Excavating and Trenching.16-18- Fall Protection .18-22o Fall Arrest Systemso Ladder Safetyo Personnel Liftso Scaffolds1

-o Blowout Preventer (BOP) Scaffoldingo Stairso Walkway/Mud Pit Guarding & Grating/Cellar CoversPersonnel Hoisting Operations .22-23Hot Work .24-26o Cutting and WeldingTagging and Flagging . 26MOTORIZED EQUIPMENT .27-33- General Precautions .27-28- Work Zone Safety . 28- Vehicle Safety .29-30- Forklifts .30-31- Gin-Pole, Winch Truck and Crane Operations .31-32- Taglines . 32- Fuel Supply and Transfer . 33SAFE WORK PRACTICES .34-44- Back Safety/Lifting. 34- Cable, Chain, Rope and Sling Safety .34-37o Inspection Processo General Safe Working Practiceso Rigging Practiceso Shackleso Rigging of Wire Rope Clips- Compressed Gas Cylinders .37-38o Handling Cylinderso Using Cylinderso Storing Cylinders- Fire Prevention and Protection .38-40o Fire Prevention Guidelineso Fire Response Procedureso Fire Fighting Procedureso Iron Sulfide- Hand Tool and Power Tool Safety .40-42- Job Safety Analysis (JSA) .42-43- Sandblasting . 44- Severe Weather Response . 44DRILLING, WORKOVER AND WELL SERVICE SAFETY .45-57- General Precautions . 45- Rig Inspections . 45- Rig Floor Safe Practices .45-46- Raising or Lowering the Derrick/Scoping Out/In the Derrick .46-472

-Air and Hydraulic Hoist Operations .47-48Stringing up the Blocks . 48Mud Mixing Operations .48-49Mud Pump Operation and Repairs .49-50Wireline Survey Operations .50-51Slips and Elevators . 51Handling Tubular Goods . 52Drilling Under Pressure . 52Nippling Up/Nippling Down .52-53Pressure Testing . 54Top Drive Operations . 54Wireline Operations (Logging, Coring, Perforating) .54-56Fishing/Jarring Operations . 56Well Servicing & Stimulation Safety .56-57INDUSTRIAL HYGIENE PROGRAMS .58-65- Hazard Communication .58-59- Asbestos .59-60- Benzene .60-61o Tank Gauging Procedures- Hearing Conservation . 61- Heat Exposure .61-62- Hydrogen Sulfide .62-64- Lead .64-65- Naturally Occurring Radioactive Material (NORM) . 65ENVIRONMENTAL PROGRAMS .65-74- Air .65-67- Water .67-70o SPCCo Stormwatero Wetlands- Waste Management .70-73- Weed and Pest Control .73-74ONE-CALL NOTIFICATION NUMBERS . 75AGENCY INSPECTION PROCEDURES . 76INCIDENT NOTIFICATION PROCEDURE .76-773

HSE SLOGAN“SAFETY - WELL WORTH IT.”HSE MISSION To promote a corporate attitude whereby ALL personnel embrace these Health, Safety and Environmentalconcepts as their personal responsibility and their standard of excellence.To foster a culture in which HSE concerns are equally important to all other business activities.To provide a technically sound, clear, and cost-effective HSE standard for the purpose of conductingactivities in a healthy, safe and environmentally responsible manner.To improve HSE performance, while instilling the “Spirit of Compliance” in our personnel and associates.To provide the means to educate and train personnel as well as subcontractors on the jobsite.HEALTH, SAFETY AND ENVIRONMENTAL POLICYDTC Energy Group is committed to protecting people and the natural environment in all areas where it conductsbusiness. Implementation of this policy is a management value and is the responsibility of every employee.It is DTC Energy Group's policy to: Comply with all health, safety and environmental laws and regulations.Cooperate with local, state and federal agencies in their inspection and enforcement activities.Incorporate HSE considerations in the company's planning and operational decisions.Develop and communicate HSE objectives throughout the company so that all employees understand theirindividual responsibilities and are appropriately trained in carrying out these objectives.Manage operations in a responsible manner and respond effectively to avoid and/or mitigate adverse HSEimpacts associated with operations.In the event of a safety or environmental incident, report information to governmental authoritiesconcerning the situation so as to facilitate a prompt and appropriate response to potential public inquiries.Participate in the formulation of prudent and responsible HSE laws and regulations that impact operations.Foster constructive working relationships with health, safety and environmental organizations and agencies.Commit the resources needed to implement our HSE policy.RESPONSIBILITIESManagement will: Promote the concept that HSE receives equal consideration with production and profits by including HSEmetrics in annual employee performance reviews and operational goals.Strive to provide all employees with a work environment free from unsafe conditions.Require that all injuries, vehicle collisions, spills/environmental releases, near misses, fires and any otherunsafe conditions be promptly reported to supervision and investigated as warranted.Accompany injured DTC Energy Group personnel to the doctor for treatment. If management is notavailable, a DTC Energy Group HSE designate shall accompany the injured DTC Energy Group personnel.Provide employees with the appropriate tools and training to successfully complete each job safely.Ensure all employees and contractors are qualified to perform assigned job duties.1

Communicate to all employees and contract employees the DTC HSE policies and procedures.Demonstrate the level of HSE excellence expected. Lead by example.Require the use of necessary personal protective equipment (PPE) by all employees.Resolve and discuss unsafe behaviors as soon as they are observed.Analyze HSE performance when evaluating service contracts.Require routine inspections and Job Safety Analysis (JSA) to evaluate and communicate potentially unsafeconditions prior to project commencement.Conduct and/or assign and document periodic safety meetings.Employee will: Evaluate all activities before undertaking to ensure that the operation will be safe and effective.Demonstrate responsibility by actively caring for the safety of fellow workers and the general public.Stop any task/job immediately if observing an unsafe act being performed or any unsafe conditiondeveloping. There will be no retribution for any work stoppage that occurs due to HSE concerns.Report all injuries, vehicle collisions, spills/environmental releases, near misses, fires or unsafe conditionsto your supervisor immediately.Actively coordinate and participate in regularly scheduled safety meetings and training classes appropriateto the business unit and job description.Share your concerns for your personal safety or lack of prior training.Wear the required PPE according to the job description and/or task.Assist in incident investigations.Conduct Behavioral Safety Observations or Job Safety Analyses.Discuss any observed unsafe condition, behavior and/or practice with fellow workers and your supervisor.Understand and comply with all HSE rules and policies that are applicable to the location and task.Follow Standard Operating Procedures (SOP’s) and Job Safety Analyses (JSA’s) to complete each task.Advise your supervisor of all prescription medication(s) and over-the-counter medications that mayadversely affect your ability to do your job safely.Learn the location of all emergency equipment on the site and be familiar with its purpose and usefulness.Become familiar with all emergency response signals and plans.Contractor will: Evaluate all activities before undertaking to ensure that the operation will be safe and effective.Stop any task/job immediately if an unsafe act or condition is observed. There will be no retribution for anywork stoppage that occurs due to HSE concerns.Be familiar with the respective company’s and/or DTC Energy Group’s HSE requirements before startingany project on DTC facilities. Discuss the differences and special requirements of the various programs.Be responsible for the actions of employees by requiring them to be trained and follow the rules that areapplicable to the job and location.Immediately report all injuries, vehicle collisions, spills/environmental releases, near misses, fires andunsafe conditions to the DTC Energy Group Supervisor.Hold pre-job safety meetings to discuss the project and anticipate HSE issues. Additionally, regular safetymeetings will be conducted to review the project’s progress and HSE issues.Actively participate in crew pre-job safety meetings and review of Job Safety Analysis (JSA) notinghazards specific to working with third party equipment and personnel.Provide proof of training or other HSE documentation upon request.Conduct and document incident investigations and implement corrective measures.Participate in HSE reviews.Gain approval and/or appropriate training before operating equipment.Ensure equipment is maintained in a safe working condition and properly rigged prior to the start of anyoperation.2

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HEALTH, SAFETY & ENVIRONMENTAL HANDBOOK 2012 Edition This handbook applies to all DTC Energy Group, Inc. personnel and will be referred to as the DTC Energy Group or DTC Health, Safety & Environmental (HSE) Handbook. This handbook serves as a reference for minimum rules and standards at DTC Energy Group operations and facilities.

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