Cheyenne Drilling, LP

CONTRACTOR / SUBCONTRACTOR

HEALTH, SAFETY & ENVIRONMENTAL PROCEDURE

Safety Guidelines

The attached rules and instructions have been provided by Cheyenne Drilling, LP and reviewed with the contract employer. Contractor/Subcontractor agrees to comply with the polices and procedures outlined in this manual. This brief outline of Health, Safety and Environmental procedures may be supplemented by additional materials or requests may be changed in accordance with the activities being performed by the Contractor / Sub-contractor. At all times, full compliance with this program is expected.

All contract employers are responsible for ensuring that this information is reviewed by all contract employees before beginning work at any Cheyenne Drilling location or facility. A copy of this signed form should be returned to the HSE Manager located at the Woodward, Oklahoma office.

1.0 Purpose

The purpose of this procedure is to provide specific guidelines for summary of the safety rules and working procedures, which we suggest are the minimum standards and practices applying to all contractor and subcontractor personnel working on Cheyenne Drilling rig locations or facilities. These are Cheyenne Drilling, LP policies and procedures, and are intended to supplement applicable laws and regulations.

2.0 Scope

This procedure applies to all Cheyenne Drilling contractors, subcontractors and visitors.

3.0 References

Title 29 Code of Federal Regulations, CFR 1910 and CFR 1926.

4.0 Definitions

Reserved

5.0 Program

5.1 Individual Responsibilities

Each facility or location will designate PPE areas or boundaries. Once the line is crossed it is considered the "PPE Required Area" and PPE is required which shall include a minimum of safety glasses with side shields, hard hat, safety shoes, and suitable clothing. Additional PPE may be required in certain locations posted. Employees are required to adhere to PPE requirement postings. It is the minimum responsibility of every individual working on a Cheyenne Drilling rig or facility to comply with the information provided in this program. If any questions or concerns arise about safe work practices, consult a supervisor or a Cheyenne Drilling representative.

5.2 Contractor / Subcontractor Responsibilities

5.2.1 Cheyenne Drilling requires that all contractors shall be held responsible, as a minimum, for compliance with the rules contained in this program, in addition to all governmental regulations applicable to the scope of work being performed.

5.2.2 The contractor shall demonstrate a strong commitment to Health, Safety and Environmental matters and must have established HSE-related policies and procedures. Contractor shall ensure that an adequately trained employee or supervisor is at the worksite at all times and who has the authority to implement their HSE system properly. Contractor/Subcontractor employees should be familiar with their own company policies as well as those of Cheyenne Drilling, LP.

5.2.3 Contractor shall be responsible for maintaining all facilities and associated services under direction or contract agreements between the company and Cheyenne Drilling, LP.

5.2.4 Contractor and any Sub-Contractor acknowledge that the work to be performed can require extensive physical demands. Contractor and any Sub-Contractor shall ensure that all personnel assigned to any Cheyenne Drilling work can safely perform the essential functions of their job assignment with or without reasonable accommodation. Contractor and any Sub-Contractor shall ensure that personnel maintain the appropriate standards of personal hygiene in connection with the work that is being performed.

5.2.5 Minimum Eye and Face Protection:

As an absolute minimum, safety glasses with side shields will be required in all areas where required. They are not required in office areas and control rooms unless required by the task being performed or by company requirements.

5.3 Incident Reporting and Investigation

5.3.1 The Contractor or Sub-Contractor shall be required to immediately report to Cheyenne Drilling, LP all significant and important incidents involving fatality, injury, illness, environmental impacts, close calls, or hazardous situations. The reporting shall immediately be provided to the Toolpusher on location, or a Cheyenne Drilling representative.

5.3.2 Unsafe conditions shall immediately be reported to a Cheyenne Drilling representative.

5.4 Substance Abuse, Dangerous Materials & Firearms

5.4.1 It is the policy of Cheyenne Drilling, LP that any personnel who are in breach of the provisions of the rules, regulations, and policies related to substance abuse, dangerous materials, and firearms shall be removed from Cheyenne property.

5.4.2 Horseplay can be dangerous and is prohibited at all Cheyenne Drilling work sites.

5.5 Housekeeping

5.5.1 Contractor / Sub-contractor must use good maintenance practices around all Cheyenne Drilling work sites. Work areas shall be maintained in a neat and orderly manner.

5.5.2 Trash, spills, etc. must be immediately cleaned up, and spills of chemicals, oils, or potentially hazardous wastes must be immediately reported to a Cheyenne Drilling representative in accordance with the Environmental Management System.

5.6 Clothing and Other Apparel

5.6.1 Appropriate clothing for the job assignment shall be worn. Long pants and shirts are required, in addition to leather-type work boots with high ankle and steel-toe support. Steel-toe tennis shoes ARE NOT allowed on Cheyenne Drilling work sites.

5.6.2 Ragged or extremely loose clothing should not be worn.

5.6.3 Jewelry is not to be worn on Cheyenne Drilling rig locations.

5.7 Body Protection

5.7.1 Required protective apparel shall be provided by the Contractor / Sub-contractor and worn by those whose work exposes them to potential hazards.

5.7.2 Chemical protective suits, gloves, shoe covers, hair nets, etc. shall be provided for areas where the potential for exposure to chemicals exists.

5.7.3 Appropriate protection must be utilized to guard from burns caused by welding or burning operations. Equipment may include welding jackets (including leather or lightweight green cotton), bibs, sleeves or aprons. Particular attention must be paid to provide adequate protection when welding or burning is to be done with work in an elevated position.

5.7.4 Be sure that pant cuffs are over boot tops, sleeves and collars are properly drawn closed by buttons, etc. and that pocket covers are sealed or PPE with no pockets are selected. These safeguards are required to minimize the potential for hot metal falling into bodily contact with the mechanic. Shorts, cut off pants, tennis shoes, etc are not permitted when working.

5.8 Safety Harnesses/Lanyards

5.8.1 Fall protection (lanyard and full-body harness) shall be worn AND secured while working 6 feet or more above ground level or once both feet leave a guarded and elevated surface (such as working beyond a handrail). They must also be worn AND secured while in a manlift or personnel basket.

5.8.2 Full Body harness (Safety Harness) – Used to arrest the most severe free fall. This would include situations where a job requires an employee to work near the edge of a vertical fall hazard.

5.8.3 In all situations, a lanyard not to exceed 6’ in length will be used to secure the harness unless special equipment is installed, such as retractable cable.

5.8.4 In all fall protection cases, the employee and supervisor involved should agree on the type of fall protection needed for the work/task involved.

5.9 Hand Protection

5.9.1 Work gloves shall be worn when handling materials, working with hands near possible pinch points, housekeeping chores and in general applications except in situations requiring finger dexterity greater than can be performed while wearing gloves and no potential for chemical exposure exists.

5.9.2 Glove Selection – Gloves should be appropriate for the hazard that will be encountered.

Cotton glove – Used for general work where no chemicals will be encountered.

12" PVC glove – Provides excellent chemical protection as well as good cut and abrasion protection. Jersey lining provides maximum heat resistance in liquid applications. Should be used where liquids may exceed 140 degrees F.

Nitrile gloves (light green or blue) – Provide excellent chemical and solvent protection. Good cut and abrasion resistance is offered but limited to its thickness (glove is not lined). Should not be used in liquid applications in excess of 140 degrees F. Nitrile gloves are the preferred choice for hand protection in the manufacturing areas when working near or handling powder chemicals.

Welding gloves – Used for all welding applications. Excellent heat protection makes this glove suitable for other high temperature applications.

Kevlar gloves – Required for all sharps handling (used as a liner for other gloves in most cases).

Note: Any worn, damaged or chemically saturated PPE is to be replaced immediately.

5.10 Compressed Gas Cylinders

All compressed gas cylinders shall be returned promptly to a suitable storage area after use. They shall not be permitted to lay about the work site. Protective caps shall be placed over the cylinder valves when not in use or when being transported. Cylinder shall be stored in an upright position and be secured to a solid and stable support. Compressed air shall never be used for cleaning clothing or any part of the body. If used for other cleaning of equipment, the discharge shall be at or less than 30 psi and eye protection shall be worn.

5.11 Storage, Use and Labeling of Chemicals, Solvents & Paint

All chemicals, solvents and paints are to be stored in accordance with industry practice in a well ventilated area. Large quantities of chemicals shall be protected with some type of spill prevention and control measure.

Material Safety Data Sheets must be supplied to Cheyenne Drilling, LP for each chemical brought onto a Cheyenne work site. Failure to comply with this policy may result in the Contractor / Sub-contractor being removed from Cheyenne property or the work location.

Protective equipment, as outlined in the Material Safety Data Sheet, shall be provided by the Contractor / Sub-contractor.

5.12 Hydrogen Sulfide

Hydrogen Sulfide (H2S) may be encountered at many facilities. The Contractor / Sub-contractor is responsible for ensuring personnel are trained and equipped to work in H2S locations.

Contractor / Sub-contractor is also responsible for providing protective equipment and monitoring or testing equipment as required.

5.13 Fire Protection

Any unauthorized use of fire protection equipment for any other purpose than its intended use if prohibited. The Contractor / Sub-contractor shall provide fire protection equipment appropriate for the work being performed.

5.14 Safety Equipment & Training

The Contractor / Sub-contractor shall ensure that personnel have been provided with the necessary safety, emergency and job-related training required to safely perform their work assignment. Training records must be available for review by Cheyenne Drilling, LP.

The Contractor / Sub-contractor shall provide adequate safety equipment of an approved type and amount as is required for the performance of the work being done. Equipment shall be maintained in a professional manner as dictated by legal and industry standards.

5.15 HSE Meetings

Regular HSE meetings should be held and pre-job "toolbox talks" should be established. Contractor and Sub-contractor personnel may be required to participate in Cheyenne Drilling HSE meetings if the work tasks or requirements are specified or work activities involve the interaction of personnel.

5.16 Electrical Safety

Personnel working around electrical equipment shall take appropriate precautions to ensure that the equipment is de-energized while work is being performed on or around such equipment. Implementation of appropriate lockout-tagout systems is required as policy of Cheyenne Drilling, LP.

5.17 Emergencies

Personnel shall become familiar with Emergency Action Plans applicable to the location where work is to be performed. Good communication is essential to ensure that prompt emergency actions are carried out if necessary. If there are questions concerning emergency procedures, it is the responsibility of the Contractor / Sub-contractor to ensure their personnel are well aware of what procedures are in place and who to notify in the event of any type of emergency.

5.18 Environmental Management System (EMS)

Cheyenne Drilling, Inc. has proudly introduced the ISO-14001 Environmental Management System into the Health, Safety and Environmental Procedures Manual.

It is the responsibility of the Contractor / Sub-contractor to learn and comply with the contents of this procedure and the legal requirements of environmental compliance. All work and maintenance shall be completed in such a manner as to preclude contamination of land sites and fresh water zones through the use of good industry practices.

In the event a spill or release of any oil, produced water or chemical spills, the Contractor / Sub-contractor shall immediately notify a Cheyenne Drilling representative and appropriate measure shall be implemented to control the material and promptly report the environmental impacts.

5.19 Safe Work Systems

Safe Work Systems include Permit to Work, Confined Space Entry, Lockout-Tagout, Trenching & Excavation, Ground Disturbance, Job Safety Analysis, Risk Assessment Tool, etc. and are sometimes required for specific tasks to be performed. This may be a policy of Cheyenne Drilling, or the company or owner of the work location.

The Contractor / Sub-contractor shall be required to participate in these items when applicable to the work activity. These tasks are to be performed in accordance with the Safe Work System that is utilized.