Cheyenne Drilling, LP

GENERAL HEALTH, SAFETY &

ENVIRONMENTAL REQUIREMENTS

Purpose

To ensure that direction and guidance, which will minimize exposure to potential hazards to employee health and safety, as well as to protect the environment, is provided to all employees.

Description

Safety rules and requirements are developed to protect employees from injury or illness by providing direction and guidance which will minimize exposure to potential hazards. Rules specifically state what must be done or what cannot be done. Over 90% of all occupational injuries are the result of violating established rules and practices, or not having established the necessary rules to protect employees from potential hazards. Following safety rules and requirements is the responsibility of all Cheyenne Drilling employees and is an expectation of employment with our company.

General rules and requirements can be developed that apply to all work activities. Requirements may also be specific and applicable to designated areas or jobs. Some types of policies and procedures may include:

-company-wide -critical task

-facility, shop, yard -equipment operation

-area -process control

-job -rig locations

-client controlled

In order to develop rules that will meet their intended purpose, that is, to provide safety requirements and direction for activities or tasks that will protect employees from injury or illness, and to protect the environment, the following steps should be considered:

Development

Have those people involved in implementing the requirements participate in the development of policies and procedures.

Give priority to practices and conditions with the highest potential for injury or illness and potential for adverse environmental impact.

Keep requirements simple and clear by avoiding complicated details.

Avoid requirements that impose actions counter to normal behavior.

Provide a good reason for every requirement.

Implementation

Have employees review requirements prior to discussion.

Where possible, use examples to explain requirements.

Test the employee’s knowledge and understanding of requirements.

Document employee training.

Enforcement

To be effective, compliance with all requirements must be emphasized and enforced by management. Uniform and equitable enforcement must be practiced for employees to accept and follow safe work requirements. If an employee does not comply with requirements, appropriate corrective steps must be followed. Corrective action may consist of:

Retraining and counseling, increased supervision & disciplinary steps.

The nature of the requirement and the potential for injury should determine the level and type of corrective action used.

Reinforcement

Positive reinforcement is beneficial in promoting health and safety requirements and it is also important that management team members:

Set a positive example

Know the requirements and their intent

Apply the requirements consistently

Recognize and acknowledge adherence to the requirements

Be positive, not condescending, when discussing requirements with employees

Employees will recognize the importance of company policies only if managers and supervisors provide reinforcement. Requirements can be reinforced by frequent reviews and references during either formal or informal contacts or discussions with the employees.

Group Discussions and Site Safety Meetings can be used to introduce new requirements and discuss why a requirement is needed, using examples of incidents that have occurred, or to discuss recent accidents or incidents occurring in the oil & gas drilling industry.

Personal Contact with an employee can be an appropriate way to talk about safety requirements and highlight specific job requirements. A planned effort to regularly talk with each employee informally may be most effective.

Formal Reviews should be conducted periodically to ensure that all employees are aware of the requirements. The HSE Manager will be responsible for conducting and documenting these periodic reviews

Procedure

Review with all levels of operations, the sections of this manual referring to general and specific HSE requirements.

Identify those requirements that are appropriate for your specific operation.

Involve employees in reviewing proposed requirements.

Implement the requirements ensuring that all employees have a clear understanding.

Enforce compliance with all requirements, implementing corrective actions as needed to ensure that requirements are followed. In some situations, disciplinary action may be determined on the severity, frequency and specific violation of an policy or program, if applicable.

Provide periodic positive reinforcement of selected requirements.

Conduct periodic formal reviews of requirements with all employees.

Develop and implement general safety and health requirements by discussing with each employee and providing each employee with a copy of this section. Employee participation is a key element of program development, but direction and leadership of regulatory requirements shall be provided by the HSE Manager.

Distribute a copy of general safety and health requirements… this is accomplished through distribution of the Employee Health & Safety Handbook.

Review and update general safety and health requirements at least annually. Document the review by indicating the date the review was conducted.

Establish a written policy indicating what corrective action will be taken for failure to comply with safety requirements.

Policy Statement (Drugs & Alcohol)

Cheyenne Drilling, LP subscribes to the following policy regarding illegal drugs, alcoholic beverages, firearms, explosives or other hazardous materials/substances:

· The use of, transportation of, possession of, or sale of any illegal drugs, as defined by the United States Drug Enforcement Agency, counterfeit drugs, or paraphernalia associated with drug or narcotic use by Cheyenne Drilling employees or by any other persons while on or operating Cheyenne equipment is strictly prohibited.

· The use of, possession of, transportation of, or sale of alcoholic beverages by Cheyenne employees while working or associated with Cheyenne work activities is strictly prohibited.

· The use of, possession of, transportation of, or sale of firearms, explosives, or any other hazardous substances by Cheyenne employees is strictly prohibited.

· Each employee of Cheyenne Drilling, LP as a condition of employment is required to sign a certificate giving the employer (Cheyenne Drilling, LP) the right to search or inspect his or her person, property, etc. for such prohibited items as listed above at any time during employment while working or associated with work activities of Cheyenne Drilling without any prior announcement.

· Visitors to a job location or at any office that do not have a specific purpose are strongly discouraged.

Individuals found in violation of this policy are subject to discharge, immediate removal from company premises, and if warranted, being reported to appropriate law enforcement agencies. It is strongly recommended that all employees review the Employee Safety Manual Handbook, Drug & Alcohol Policy, which covers these procedures in great detail, throughout their term of employment with Cheyenne Drilling, LP. These manuals are provided to all employees at the beginning of their employment, at no cost to the employee. Replacement manuals are available at any time.

A Safe Plan of Action

Cheyenne Drilling management is sincere in our efforts to protect employees, property and the environment. We want our employees to enjoy their work and be an active voice in all HSE concerns within the company. We consider it of utmost importance that all employees work is free of injury, property damage, and free of adverse affect to the environment.

Each employee is held responsible and accountable for his or her actions related to safe work behaviors and for the safe work practices of his or her crew members. Safe employees are well informed, and are always looking for ways to make things safer, more productive, and more efficient in their job activities. Employees who habitually are unable to work safely will be terminated for their own welfare, as well as for the welfare of their families and fellow employees.

Rig-Based Safety Supervisors

The primary responsibility to ensure that all meetings and inspections occur will be that of the Toolpusher. They may, from time to time, designate safety responsibilities to other crew members. Of course each crew member is responsible to ensure that all safety procedures are being followed and to observe for hazardous situations. Employees should immediately report any hazardous situations or work activities observed.

Third-Party Accident Investigation

When third party crews arrive, a safety orientation shall be given by the Toolpusher or a designee, who will provide detailed safety information regarding Cheyenne Drilling’s HSE policies and procedures, to include any site-specific information.

Pre-Tour Meetings

The pre-tour meetings are potentially the most powerful unit based accident prevention tool in Cheyenne Drilling’s HSE Program. The plan of action meeting lays out the work plans in any given workday. It is the time for each member of the work crew to ask questions or provide ideas. The meetings shall be held on a crew-by-crew basis before going on the tour.

Safety Meetings

In addition to the pre-tour plan of action meetings, formal safety meetings are to be conducted at a minimum of one time per week. It is strongly encouraged that each day’s pre-tour meeting includes a general safety topic. In most work activities, daily safety meetings are required by either Cheyenne or client policy. The Toolpusher shall have the responsibility to ensure that these meeting are conducted. However, the Toolpusher may designate another crew member to conduct a safety meeting. All employees are strongly encouraged to conduct crew safety meetings and to be actively involved in our HSE programs. At the end of each well, Toolpushers shall send in copies of the safety meeting minutes to be kept on record in the HSE files.

Rig Safety Inspections

Inspections of the drilling rig and related equipment is to be conducted on a monthly basis by each Driller and/or Toolpusher. The Rig Safety Inspection, as provided by the International Association of Drilling Contractors (IADC), is to be utilized to record the findings of the inspection. Upon completion, copies of the inspection are to be forwarded to the HSE office for filing.

Cheyenne Drilling HSE Safety Rules & Procedures

IMMEDIATELY REPORT ANY ACCIDENT OR INJURY TO THE TOOLPUSHER OR SUPERVISOR IN CHARGE NO MATTER HOW MINOR!

ALWAYS KEEP IN MIND THAT YOUR PRIMARY RESPONSIBILITY AS AN EMPLOYEE IS TO PERFORM YOUR DUTIES IN A SAFE MANNER!

Learn the approved safe work practices applicable to your work and observe them at all times. Do not take shortcuts or modify work assignments!

Employees are expected to maintain an active interest in our HSE program.

Never attempt to do a job alone or without sufficient equipment or personnel.

Wear suitable clothing for the work assignment.

The wearing of jewelry, such as rings, necklaces, bracelets, etc. is prohibited.

Safety glasses must be worn at all times in work locations, including shop areas.

Additional protective clothing may be required when working with chemicals.

Gloves must be worn when handling chemicals.

Safety Goggles must be worn when handling chemicals.

ANSI-Approved Hard Hats are required at all times when working on locations.

Hard Hats may be required if sufficient hazards exist in shop or yard areas.

Employees can choose to wear dust masks when handling and working with certain chemicals to protect against nuisance dust or odor. Cheyenne Drilling has performed PEL monitoring and determined that employees are not exposed to chemicals beyond permissible exposure limits (PEL’s). Dust Mask respirators are provided for volunteer use only… they are not required!

Good housekeeping is a must. Immediately pick up tools and litter, and clean slippery floors.

Forklifts must be used to move heavy items not suitable for carrying or lifting under normal conditions. If manual lifting must take place, two people or more should handle this task.

Earplugs are to be used when entering any high noise operation or where hearing protection required signs are posted.

Safety boots (meeting the requirements of ANSI standards Z41.1) are to be worn by all personnel on locations or where such hazards exist that could cause injury to the feet from falling objects. They must be in good condition without loose or worn soles and have high ankle and steel toe protection.

Main aisles, electrical panels, emergency eye wash stations, emergency exits and fire extinguishers have to be accessible at all times and should not be blocked by any type of obstruction.

All extension cords should be three cores or should have "ground fault protection". These cords should not be strung on the ground across walkways unless absolutely necessary. Cords should be marked with flagging tape whenever possible to prevent tripping over floor-level cords or running into overhead cords.

Office areas, doghouses, certain shop areas, and all work areas on rig locations are designated as "Smoke Free" zones. Smoking is allowed in designated areas only.

Employees must be trained and certified prior to being allowed to operate any forklifts. Carrying of a wallet card of proof of certification is required.

No riders are allowed on forklift trucks.

Hoisting a person with the forklift truck without the "Safety Cage" and a body harness for fall protection is prohibited.

Safety goggles are to be worn when changing tong dies, using bench grinders, chipping, using brushes or grinders, filing, or at any time where exposure to flying or splashing particles is possible.

Any unsafe conditions, accidents, injuries etc. should be brought to the attention of the Toolpusher or Driller immediately.

Bypassing or tampering with any safety devices is prohibited. Any violation of this rule can lead to disciplinary action or termination of employment.

First aid, CPR etc. should only be administered by trained and qualified employees. Assisting employees who are bleeding should be done by employees who are trained in "Bloodborne Pathogens".

Horseplay is prohibited at all times.

Any safety signs, lockout/ tagout tags, etc. should be observed and adhered to.

Clothing saturated with oil or chemicals shall be changed immediately.

Firefighting equipment shall not be tampered with. Leave it in its proper location and know how to use it in the event of an emergency.

Riding the elevators or blocks is strictly prohibited.

Sliding down dead line, cat line, rotary hose, or handrails is prohibited.

Always use handrails when climbing or descending ladders or stairways.

Derrick men shall not slide down the derrick ladder while depending on the counterweight to support them. Retractable lanyards shall also be used in conjunction to the climber assist unit to prevent falls.

Standing on the catwalk while objects are being pulled up the V-door ramp is prohibited.

Electrical repairs shall only be made by authorized electricians.

Drive belts shall not be tightened while they are in motion.

All pressure must be removed from vessels, lines, regulators, meters, fittings, and connections before disconnecting, moving or working on them.

Never hammer on lines or fittings that are under pressure.

Be alert for openings in the deck or grating into which you could trip or fall.

Never climb on any vertical equipment unless it is properly secured and supported.

Visually inspect lifting equipment before making lifts. Observe for deformities or cracks. Do not use worn out or broken hooks on hoisting equipment.

Employees are to properly follow all emergency action procedures is an emergency occurs.

Copyright 2003 Cheyenne Drilling, LP All rights reserved