Joe Hurt Regional VP North America Land Operations & Staff HSE

1. Joe Hurt Regional VP North America Land Operations & Staff HSE

2. IADC HISTORY • Founded as the American Association of Oilwell Drilling Contractors (AAODC) in 1940. • In 1972, the AAODC became the International Association of Drilling Contractors (IADC), beginning its transformation to an international organization. • Today, IADC represents drilling contractors, oil and gas producing companies and manufacturing and service companies worldwide and is truly a multinational organization.

3. Worldwide Membership • Worldwide Totals • 445 - Drilling & Well Servicing Contractors • 61 - Major & Independent Producers and National Oil Companies • 1133 - Oilfield Service & Supply Firms • US Totals • 188 - Drilling & Well Servicing Contractors • 32 - Major & Independent Producers and National Oil Companies • 731 - Oilfield Service & Supply Firms • US Land Totals • 167 - Drilling & Well Servicing Contractors • US Offshore Totals • 12 - Drilling & Well Servicing Contractors

4. IADC STAFF • Land • Joe Hurt – Regional Vice-President, Land Operations and HSE • Paul Breaux – Assistant Director, Land Operations and HSE • Offshore • Alan Spackman – Vice-President, Offshore Technical and Regulatory Affairs • John Pertgen – Assistant Director - Offshore Technical and Regulatory Affairs • Operations Division Support • Holly Shock – Committee Coordinator • Amanda Lemmond – Operations Group Assistant (ISP) • Accreditation • Mark Denkowski – Vice-President, Accreditation/Certification • Brenda Kelly – Director, Accreditation/Certification • Publications & Membership • Jason McFarland Vice-President, Membership/Publications • Loretta Krolczyk – Director, Publications • Sharon Thorpe – Director, Membership

5. GAINING PUBLIC TRUST • The general public gives us the license to drill, develop, and produce oil and gas resources!!! • The Upstream Oil and Gas Industry is measured by our lowest performing member!!! • What are each of us doing to help bring up the performance of our lower performing companies??????

6. IADC outreach efforts • OSHA Oil & Gas Outreach Team • OSHA Oil & Gas Conference Planning Committee • NORA OIL AND GAS COUNCIL • IADC Rig Moving Competency Standards • Swamper – ¾ Completed • Gin Truck Driver – Started • Winch Truck Driver (Future Project) • Forklift Operator (Future Project) • Truck Pusher (Future Project) • API RP 2D (Offshore Lifting) • API RP 53 (Blowout Preventers) • API TG5 (Spec for Hammer Unions) • API Spec 16 RCD (Rotating Control Devices) • Developing Managed Pressure Drilling B P • Developing UBO – HSE Planning Guidelines • API RP 92 U (Under Balanced Drilling Operations)

7. IADC conferences • IADC HSE – T Conference • IADC Safe Lifting Conference • IADC Contracts and Risk Management Conference • Drilling and Completing Trouble Zones Forum

8. IADC regulatory Issues • FRC • Occupational Safety & Health Review Commission Ruled that the enforcement letter was not lawful. • HOS • FMCSA is seeking comments to remove the Oilfield exemption and reduce hours from 11 to 10. • FRACKING EMMISIONS

9. IADC COMMITTEES • Ethics and Corporate Compliance Committee • Underbalanced & Managed Pressure Drilling Operations • Health, Safety & Environmental • Training • Government Affairs • Technical Committees • Well Control • Maintenance • Contracts • Rig Moving (Land) • Well Servicing

10. IADC Accreditation & certification ACD • First formed in 1993 with the creation of Rig Pass • Expanded in 1994 with the creation of WellCAP well control training

11. IADC Accreditation & certification • 8 accreditation programs • 397 accredited providers/companies • >1800 approved instructors • 15 languages • 59 countries • Staff: 10

12. IADC Accreditation & certification • HSE Rig Pass • WellCAP • WellCAP Plus • Competence Assurance • Drilling Industry Training • Ballast Control & Stability • Personnel Offshore Safety Training (POST)

13. IADC Accreditation & certification • HSE Rig Pass Endorsed By: • SafeLand • SafeGulf

14. IADC Accreditation Programs • Emphasize instructional quality • Establish criteria for: • Course content standardization • Instructional methodology and materials • Instructor qualifications • Student assessment • Program administration and quality assurance

15. IADC Accreditation Process

16. IADC Accreditation & certification • HSE Rig Pass Applications Processing 2011 • Program Applications: 112 • Instructor Applications: 428 • WellCAP Applications Processing 2011 • Program Applications: 36 • Instructor Applications: 284

17. IADC Accreditation & certification • for “The Development • of Drilling Industry • Training Standards and • Accreditation of Training • Providers” ISO 9001:2008 certified

18. IADC HSE ALERTS • General Overview • IADC's Safety Alert Program is a continuous improvement effort by the IADC HSE Committee to further the cause of safety in the Oil & Gas Drilling Industry. • The program is completely voluntary and IADC does not publish or provide company information in regard to alerts submitted by a company. • ~3 per Month • Alert Submissions • Online Submission Form on the IADC web site (www.iadc.org); • E-mail alerts to alerts@iadc.org; • Alert Submission Form by fax or mail. • *NOTE: Safety Alert submissions are “cleansed” of the submitting company’s name, any references or logos; • Safety Alert Team Review

19. Iadc incident statistics program • Oldest incident database of drilling related incidents. • Open to all drilling and service contractors. • Summary reports posted each quarter. • Annual in-depth report issued each year. • Rig Recognition • Company must be a current participant. • Company must have submitted data for the previous year. • Company must be a member of IADC.

22. US LAND IADC INCIDENT STATISTICS

23. Total Industry Fatalities VS Man-Hours 1990 = 0.038 2000 = 0.024 2005 = 0.013 2008 = 0.014 2009 = 0.015 2010 = 0.014 2011 = 0.007 Fatalities Man-hours 2011 3rd qt

24. US Land Fatalities VS Man-Hours Fatalities Man-hours

25. US Water Fatalities VS Man-Hours Fatalities Man-hours

26. US LAND FATAL INCIDENTS • 2011 IADC ISP YEAR END US LAND FATALITIES = 11 • (ISP = Incident Statistics Program) • 2010 IADC ISP YEAR END US Land FATALITIES = 13 • 2011 OSHA O & G INDUSTRY DATA POSTED TO 12-31-11 FATALITIES = 55 • (Upstream E&P only)

27. How is your preventative maintenance program?? How is your site(rig) inspection program?? Do your employees understand the importance of inspections to their safety??

28. How up to date is your equipment inventory?? Do your employees know it is their responsibility to stop unsafe actions?? How is your new employee indoctrination program??

29. 2010 US Industry Fatality Rates

30. Recent Near Miss

31. Incident Examples

32. Incident Examples No documented jack screw inspections for 30 years. Old Jack Screw New Jack Screw

34. Incident Examples

35. Incident Examples Mismatched Hammer Unions

36. Incident Examples Rig Moving incident

37. Incident Examples Hand Tools

38. Remember incident statistics are not numbers, but lives of co-workers, dads brothers, sons!

39. US Land Fatalities 2011 • Floorman • Rig Floor • Tripping • Struck By • > 6 months < 1 year • Motorman • Rig Floor • Routine drilling operations • Struck By • > 1 year < 5 years • Floorman • Rig Floor • Struck By • Running Casing • < 3 months

40. US Land Fatalities 2011 • Electrician • Vehicle • Travel • Vehicle • > 1 year < 5 years • Driller • Pipe rack area • Tripping • Caught between • > 6 months < 1 year • Driller • Rig floor • Other • Struck by • > 10 years

41. US Land Fatalities 2011 • Derrickman • Derrick ladder • Tripping • Fall different level • > 3 Months < 6 months • Floorman • Equipment room • Maintenance • Electric shock • > 3 months < 6 months • Floorman • Rig Floor • Tripping • Struck by • > 1 year < 5 years

42. US Land Fatalities 2011 • Floorman • Rig pad • Routine drilling operations • Slip / Fall • > 5 years < 10 years • Driller • Cellar area • Maintenance • Electric shock • > 3 months < 6 months

43. US Land Fatalities 2011

44. Questions?