INCIDENT INVESTIGATION AND REPORTING PROCEDURE

1.0 Purpose

To insure prompt and complete accident investigations, reporting and proper processing of injured or ill employees, for reporting of property damage incidents, and to report near-miss incidents.

2.0 Scope

This procedure applies to all Cheyenne Drilling facilities and rig locations.

3.0 Definitions

In order to perform accident reporting and investigation procedures properly certain terms must be defined. A list of such terms and their definitions may be found in appendix B of this part.

4.0 Responsibility

It is the employee’s responsibility to immediately report all job-related injuries and illnesses or near-miss incidents. It is management’s responsibility to promptly investigate and report the accident or close call incident and correct its causes.

5.0 General

5.1 Reporting Job-Related Injury/Illness

Employees will be instructed by their respective supervisors to promptly report job-related injuries/illnesses. Employees will be instructed to report job-related injuries/illnesses manifesting when away from work to their respective supervisor or notify the HSE Manager or a designee. The HSE Manager will be notified immediately following all injuries and assist in the completion of incident reporting and investigations.

5.2 Determination of OSHA recordability will be made utilizing the Bureau of Labor Statistics Record Keeping Guidelines.

5.3 An incident investigation committee may also be made available to assist in determining the recordability of injuries not covered explicitly in the BLS Guidelines.

5.4 The HSE Manager will be responsible for the upkeep of the company’s OSHA 200 & 300 logs.

6.0 Procedure

The Toolpusher or Area Supervisor has the primary responsibility for the investigation and reporting of ALL incidents, first aid cases, close calls, etc.

6.1 Incident Investigation

6.1.1 Incident Investigation

· All incidents will be investigated by the Immediate Supervisor and employee(s) involved in the incident. Supervisors must be trained in incident investigation techniques.

· An Injury, Illness or Incident Report form must be completed and forwarded to the HSE Manager within 24 hours of occurrence. The HSE Manager shall ensure that incident reports are distributed to corporate management officials.

· The accident report should be signed by the employee(s) involved, Immediate Supervisor or Toolpusher, and the Drilling Manager.

· A near-miss report must be completed and forwarded to the HSE Manager within 24 hours after the event occurs.

For both near-miss reports and accident reports, all items noted “actions to prevent recurrence” on the report form will be assigned to a responsible party for completion and target completion date and added the facilities corrective action log.

NOTE: To ensure compliance with reporting timelines, employees involved in the incident and members of the investigation team may be required to report to work at times other then normal schedule. (The investigation report should not be delayed while waiting on a time when key employees are scheduled to work).

6.2 Recordable Accidents and Illness

6.2.1 An accident investigation committee may be formed as needed and will investigate all recordable injuries and illnesses when there may be concern over the classification of an injury or illness.

6.2.2 The HSE Manager or a designee will be responsible for assigning members to the accident investigation committee. Some considerations will be:

· Employee(s) involved

· Employee(s) immediate supervisor

· Employee(s) from a similar work group

· Area Foreman

· Area Supervisor

· Toolpusher

· Driller

· Client Representatives

· Others deemed as necessary

6.2.3 Makeup of the accident investigation committee will vary based on the type, severity and severity potential of the incident.

6.2.4 A Root Cause Analysis will be used to investigate incidents with a high potential for recurrence and/or a high injury potential (all injuries requiring offsite medical or first aid). The HSE Manager will have responsibility for selection of the investigation team completing the investigation in a timely manner.

6.3 Fatality or Critical Injury

Drilling Manager

· Immediately report by telephone to:

¨ Company President

¨ Other Drilling Managers or Toolpushers as needed

¨ Corporate HSE Manager

¨ Other personnel as necessary

· Comply with government reporting requirements.

· Report investigation findings to the HSE Manager.

· Assign Investigation Committee utilizing both in-house and outside expertise as needed.

· No later than three months following the accident date, work with HSE Manager to write final follow-up report detailing status of corrective action(s).

· INTERPRETATION(S)

¨ Within 8 hours after the death of any employee from a work-related incident or the inpatient hospitalization of three or more employees as a result of a work-related incident, the employer of any employees so affected shall orally report the fatality/multiple hospitalization by telephone or in person to the Area Office of the Occupational Safety and Health Administration (OSHA), U.S. Department of Labor, that is nearest to the site of the incident, or by using the OSHA toll-free central telephone number.

¨ This requirement applies to each such fatality or hospitalization of three or more employees which occurs within thirty (30) days of an incident.

¨ Exception: If the employer does not learn of a reportable incident at the time it occurs and the incident would otherwise be reportable under paragraphs (a) and (b) of this section, the employer shall make the report within 8 hours of the time the incident is reported to any agent or employee or the employer.

¨ Each report required by this section shall relate the following information: Establishment name, location of incident, time of the incident, number of fatalities or hospitalized employees, contact person, phone number, and a brief description of the incident.

6.4 Fire and/or Property Damage involving Cheyenne Drilling-owned property would be discussed in the formal report.

6.5 Accident Reports involving contractors and other non-Cheyenne personnel.

Contractors must comply with all requirements of this procedure including a detailed incident investigation. A complete Injury and Illness Report must be done.

6.6 Monthly Injury Data Reporting

The HSE Manager will be responsible for compiling injury/illness data and reporting monthly.