Permian Basin Association of Pipeliners

1. Permian Basin Association of Pipeliners Membership Meeting July 10, 2019

2. Agenda • 1115 – Welcome, Jason Wolf • Pledge of Allegiance • 1130 – Safety: • 1135 – Country Buffet, Petroleum Club • Lunch Sponsor Epic Brokers • 1205 – Guest Speaker • Michael Nischan, Epic Brokers • Q & A • 1230 - Committee Updates • Membership, Brian Whaley • Community Improvement, Kelly Maddox • Scholarship, Rebecca Bell • Golf Tournament, Adam Perkins, PCM • 1255 - Financial Update, Jon Sheng, Terracon • Upcoming Sponsorship Opportunities

3. Welcome to the PBAPJason Wolf • Safety First – Emergency Exits, group muster location • PBAP is a 501c6 organization, with this Mission: “To advance pipeline engineering, operations, safety practices and education for the mutual benefit of our members and the industry.” • Purpose: provide an opportunity for peer-to-peer networking for those involved in pipeline & related industries. • Membership meetings are held the 2nd Wednesday of each month • Industry safety improvement • Community improvement initiatives

4. Pledge of Allegiance

5. 2019 Goals • 400 Total Members • 100 Individual • 100 individual memberships (100% of goal) • 75 corporate sponsorships at 4 memberships each • 46 Corporate Memberships (60%) averaging 2.3 members (65%) • Existing corporate sponsors should ensure they have 4 members registered • $100k scholarship fundraising across 2 events • $160k scholarship fundraising across 3 events • Clay Shoot Thurs, May 2 (Complete) • Golf Tournament Tues, Sep 10 • Team Roping Event Sat, Nov 9 • Committee growth, involvement • Safety initiative: improve training, records maintenance, & verification • Community Improvement: Partnering with business ldrs; parks & law enforcement • Publicity: social media, news releases, and networking

6. Safety Moment

7. And Now……Our Scholarship Recipients!

8. LunchCountry BuffetSponsored by

9. Michael Nischan, CDS, CCSP VP, Transportation & Logistics Risk Control Instructor, North American Transportation Management Institute July 10, 2019 TRANSPORTATION RISK MANAGEMENT IN MODERN TIMES

10. AGENDA • HOW TO MANAGE THE RISK • HOT TOPICS: DISTRACTIONS, FATIGUE, MAINTENANCE

11. MOTOR VEHICLE CRASHES • Leading cause of accidental death • Primary causes • Distractions • Violations • Lack of training • Poor management oversight

12. CRASH COSTS Aside from human costs… • Business interruption • Potential loss of business • Equipment replacement costs • Increased insurance premiums • Bad safety ratings • Costs of litigation Sales team must work to pay for crash instead of generating profits. Costs are passed onto consumers.

13. HOW TO MANAGE THE RISK

14. HOW TO MANAGE THE RISK • Accountable person for fleet compliance and safety. • Utilize written fleet management program: • Hiring standards, distracted driving, fatigue, maintenance, post-crash process, etc. • Communicate policies to drivers. • Keep program current. • Utilize training program (new-hire and ongoing) for management and drivers. Fleet Management Program Driver Handbook Training Program

15. HIRING REQUIREMENTS • A solid transportation safety program begins with driver selection. • Your profitability is in the hands of people who drive on behalf of your business, regardless of who owns, leases, or rents vehicles (employer vs. employee). • Includes: • Sales personnel • Maintenance technician • Anyone getting reimbursed for mileage • Drivers of Commercial Motor Vehicles (CMVs) • Avoid negligent hiring, entrustment and retention!

16. CMV DRIVERS – HIRING REQUIREMENTS • Your profitability is in the hands of people who drive your vehicles • They hold the keys to your company • Required Elements: • §391 Qualifications of Drivers & LCV Driver Instructors • §382 Controlled Substance & Alcohol Use & Testing • Recommended - Pre-Employment Screening Program • Contains most recent 5 years of crash data and the most recent 3 years of roadside inspection data.

17. BEST PRACTICES – TRAINING • Provide new drivers with a handbook to clarify your expectations and policies. • Provide new driver training – don’t expect they know it all, even if they think they do! • Provide frequent coaching / training as a proactive measure and to address incidents. • Utilize technology and evaluations for coaching and training. • Constantly work towards improvements. • Remember that managers need training too. Training is an investment, not an expense!

18. MONITOR DRIVER PERFORMANCE • Telematics / GPS to track vehicle and cargo • Lane Departure Warning • Automatic Cruise and Braking • Onboard cameras* • Observe drivers through technology *Studies show as much as a 50% reduction in collision frequency and 80% reduction in claims costs

19. HOT TOPICS DISTRACTIONS FATIGUE MAINTENANCE

20. ARE DISTRACTIONS REALLY A PROBLEM? YES! 80% of all crashes and 65% of near-collisions occur within three seconds of a driver distraction.

21. FOUR TYPES OF DISTRACTIONS • Manual involves touching something – dialing phone, changing radio stations, grooming, etc. • Visual involves looking at something. • Auditory involves listening to something, like conversation or music. • Cognitive involves thinking about something. No difference in interference from a hands-free or handheld conversation.

22. LIABILITY – CELL PHONE RELATED CRASHES Employers are being sued for liability associated with crashes involving employees conducting company business on cell phones. • Recent settlements in double-digits; one as high as $21,000,000. • Drivers being sentenced to prison.

23. DROWSY DRIVING CRASHES • 100,000 crashes reported annually, ~1 million crashes linked to inattention due to fatigue. • 28% professional drivers suffer from sleep apnea (wellness issue). • Most crashes occur midnight – 6:00 AM & in the mid-afternoon (circadian dip). • Vehicle drifts off road and hits stationary object; rear-end or head-on collisions, no evidence of braking or evasive maneuvers. • Involve serious injuries & fatalities. National Sleep Foundation

24. EFFECTS OF SLEEP DEFICIT • Effects of losing two hours sleep in one night: • 20% loss in memory • 30% loss in the ability to communicate effectively • 50% decrease in judgment and decision-making skills • 75% decrease in the ability to pay attention • Largest dangers – “micro sleeps,” when drivers nod off for a few seconds with eyes open. In three seconds of micro sleep at 60mph a vehicle has traveled 265 feet without anyone at the wheel.

25. INSPECTION, REPAIR AND MAINTENANCE §396 Benefits of a good maintenance program: • Prevent vehicle breakdowns • Prevent hazardous conditions that may result in crashes • Deliver goods in timely fashion • Attain optimum vehicle component life • Predict operating costs

26. INSPECTION, REPAIR AND MAINTENANCE §396 • Motor carriers must systematically inspect, repair, and maintain, or cause to be systematically inspected, repaired, and maintained, all motor vehicles subject to control. • Do you know who is working on your equipment? • Need a responsible, experienced person. • Document qualifications of brake inspector and annual inspector. • Must be capable of performing the assigned task, brake inspection, or annual inspection by reason of experience or training or both.

27. AUTO RATES INCREASING • Renewals with 15 – 20% increases in auto rates because trial lawyers have succeeded in double-digit nuclear verdicts after truck crashes. • Insurance underwriters are expecting performance and overall risk management efforts to demonstrate a well-managed fleet to stay insurable. • Insurers may not renew high-risk operations. • The more you do to improve performance and satisfy underwriters, the better you can reduce litigation exposure and remain insurable.

28. WHAT YOU LEARNED TODAY • HOW TO MANAGE THE RISK • HOT TOPICS: DISTRACTIONS, FATIGUE, MAINTENANCE

29. TRANSPORTATION SERVICES FROM EPIC • Consulting solutions to reduce risk, improve performance and keep you insurable. • Develop fleet management program and training program. • Provide management and employee training. • Accident prevention programs and investigation. • Security program enhancement. • Seminars throughout the year.

30. We are what we repeatedly do. Excellence, then, is not an act, but a habit. - Aristotle Michael Nischan, CDS, CCSP VP, Transportation and Logistics Risk Control NATMI Instructor michael.nischan@epicbrokers.com 678.938.2012 http://www.linkedin.com/in/michaelnischan

31. Membership Committee Committee Purpose:Meet the membership goals set by the board and officers Committee Status: Formed, Brian Whaley Chair Committee Members: Brian Whaley, Mark Campbell, all PBAP members! Updates: • Current membership 195 total • 46 corporate sponsorships with 95 members (10 in past 30 days) • 100 individual memberships (6 in past 30 days) Next steps: • Advertising Strategy • Business Cards • Membership meeting guests

32. Improvement CommitteeKelly Maddox, Chair Committee Purpose: Civic improvement: social programs, parks and recreation • Goals • Engage with local civic leaders • Seek industry improvement suggestions • Identify resources (financial & manpower) to support these opportunities • Bring to membership, then officers for consideration/approval Recent Event: Law Enforcement & First Responder Appreciation Dinners, 13 June & 9 July GPA, PBAP, Safety Tech sponsored first event for 60 from local Midland/Odessa community Crestwood Midstream, GPA, PBAP sponsored second event in Kermit, TX

33. Safety Committee Committee Purpose: Improve Safety in Oil and Gas through standardized practices Committee Status: Formed, Terrell Roddy is Chair Committee Members: LyndolynPrevier, James Davis, Gary Mann, Eric Barber, Chancey Summers, Dan Thompson, Jerry Green, Mallory Friend Update: • Currently developing technology, training and standards

34. Scholarship CommitteeRebecca Bell, Chair College Recipients: Midland College Curt Pervier, Dean of Applied Technology Derek Gasch, Chair of Manufacturing Services Erin Casey-Richardson, Associate Director of Scholarships Odessa College UT Permian Basin Individual Awards: Kenzie Summers, Larabee, Kathryn Wolf, Dylan Carmack Future College considerations include: Howard College, Angelo State, and West Texas A&M Future relationship considerations include: grandchildren, nieces/nephews of members

35. Golf Tournament CommitteeAdam Perkins, PCM • Details and sponsorship links are posted to website • Event to be held Sep 10, Ranchland Hills Golf Club in Midland • 1600 E Wadley Ave • Morning and Afternoon rounds • Breakfast, Lunch and Dinner to be served • Raffle and silent auction • Limited to 28 teams per round to improve pace of play • Thus far: 13 teams, 4 Gold sponsors, 8 hole sponsors and title sponsor • Contact Adam at 985-688-1710 to join the committee

36. Closing BusinessJon Sheng, Treasurer • Financial update: bank account • Sep/Oct lunch sponsorships available ($2,500) • 5 minute business presentation • Contact Jason or Jon • Upcoming Events/Lunch Sponsorship tab on website • Lunch cost reduced for members $10/non-members $20

37. See you next time! Permian Lodging