2006 Health, Safety & Environmental (HSE) Orientation

1. 2006 Health, Safety &Environmental (HSE) Orientation San Juan Operations

2. Presentation Outline • Our Safety Beliefs & Guiding Principles • Working Safely at ConocoPhillips Sites • Actions to Take Prior to Arriving at a COPC Site • On-Site Safety Programs and Expectations • Incident Reporting and Investigation • Protecting Our Worker’s Health • Our Environmental Standards • Regulations and Lease Specific Rules • Concluding Remarks Note: COPC is an abbreviation for “ConocoPhillips Company”

3. Our Safety Beliefs & Guiding Principles • We are committed to doing whatever is required to have zero safety incidents, injuries and illnesses. This is our most important objective! • Our work is never so urgent or important that we cannot take the time required, or spend the money required, to do it safely. • All personnel working at our sites (employees & contractors) are expected to care enough to take action to keep themselves & others free from danger or injury (“Brother’s Keeper” concept). • All personnel have a right and a duty to stop any unsafe activity that they observe and to report all incidents. • Line management is accountable for safety performance. • We shall seek out contractors whose leadership have similar safety beliefs to our own & who actively promote safety.

4. Presentation Outline • Our Safety Beliefs & Guiding Principles • Working Safely at ConocoPhillips Sites • Actions to Take Prior to Arriving at a COPC Site • On-Site Safety Programs and Expectations • Incident Reporting and Investigation • Protecting Our Worker’s Health • Our Environmental Standards • Regulations and Lease Specific Rules • Concluding Remarks Note: COPC is an abbreviation for “ConocoPhillips Company”

5. Actions to Take Prior to Arriving at the Site • Ensure you have had the proper training. • Ensure you have with you: • Appropriate personal protective equipment (PPE). • The right tools for the job. • The right people to do the job safely. • Ensure you have no prohibited items

6. Safety Hardhats Hardhats must comply with ANSI Z89.1 Hardhats must not be modified by engraving, painting or re-shaping PPE Requirements

7. Safety Hardhats:Which hardhat is not acceptable? X CAUTIONBump caps do not meet ANSI Z89.1 and are not to be worn for protection from falling or glancing objects

8. Hearing protection is required in all high noise level areas and other posted areas Areas exceeding 82 dBA are defined as being “high noise areas” High noise areas should be posted PPE – Hearing Protection

9. Types of Hearing Protection

10. Safety glasses with side shields that comply with ANSI Z87.1 must be worn For jobs where safety glasses do not provide adequate protection (e.g. welding), other appropriate protection must be worn Lens color tinting should be appropriate for the lighting conditions PPE – Eye / Face Protection

11. Types of Safety Glasses

12. PPE – Hand Protection • Gloves must be worn when handling: • abrasive materials • materials that could cut a person’s hands • chemicals • hazardous materials • Gloves must be worn when performing: • electrical work • hot work • work that may expose one to blood-borne pathogens

13. PPE - Flame Resistant Clothing (FRC) After March 1st, 2006, FRC will be the required outer-layer of clothing when on COPC locations within 35 ft of hydrocarbon production equipment Drilling, Work-over and Cavitation Rigs will require FRC whenever on a COPC location

14. FRC must be worn with the sleeves fully extended to the wrist and with thebuttons and zippers closed Shirts are to be completely tucked insideof the pants at the waistFRC shall meet NFPA 2112 requirements

15. If Respiratory Protection is necessary, medical approval and fit testing are also required prior to use Facial hair must not interfere with the face-to-mask seal PPE – Respiratory Protection

16. Safety-toed boots must be worn on all ConocoPhillips locations Safety-toed boots must comply with ANSI Z41.1 and footwear will have a discernible sole & heel PPE – Safety Footwear

17. The best way to ensure that you have the “right tool for the job” is to anticipate your equipment needs before going to the field Bring with you the equipment requiredto do the job safely!Do not forget tools such as fall protection, scaffolding, guards or special rigging The Right Tools for the Job

18. A New Mexico “One Call” must be completed with a 48-hour notice prior to all ground disturbance by mechanical means: Call 800-321-2537A Colorado “One Call” must be completed with a 72 hour notice prior to all ground disturbances by any means: Call 800-922-1987 Ground Disturbance & “One Call”

19. Crew members in the San Juan Basin commonly speak Spanish astheir primary languageAll crews must have at least one person present on location who can speak andread English, and who is also able to communicate with crew memberswho are not fluent in English Language Requirements

20. Short Service Employees - SSE’s • An employee will be required to wear a green hard hat for six months if: • They are new to the oil and gas industry. • They are new to their employer. • The only exception to this is if an employee is new to a company, but has at least six (6) months of experience with another company in the same position/job that they are assuming for the new company. In this case, they would be required to wear a green hard hat for a minimum one (1) month period

21. COPC only allows one Short Service Employee per Responsible Person A Responsible Person must have authority over the Short Service Employee and cannot be a short service employee themselvesExceptions to this rule can only be made by a ConocoPhillips Supervisor

22. Training Requirements – All Employees All contractor personnel must have attended Petroleum Education Council training before working at a COPC site In-house equivalent training programs are acceptable, if approved by COPC’s HSE&R Supervisor This program is targeted at persons new to the Oil & Gas Industry. Once taken, it does not have to be taken again. Certification must be available upon request

23. Petroleum Education CouncilTraining Course Content Confined Space Entry Lock Out - Tag Out Hot Work Personal Protective Equipment Fire Prevention Hazard Communication Respiratory Protection Hazwoper Awareness Level Trenching & Excavation Awareness First Aid / CPR Hydrogen Sulfide

24. Training Requirements for ContractorFirst-Line Supervisors First-line Supervisors may need to receive ConocoPhillips training in one or more types of work that they are overseeing Specific types of work that require additional training include: Hot Work, LOTO, Rigging, Fall Protection, Confined Space, Purging, Fire Protection & Excavation COPC’s HSE personnel should be contacted to determine training requirements Training received will be documented in a COPC issued “Passport” Passports must be in the supervisor’s possession when on a COPC site. If not in possession, training will need to be verified by calling COPC’s HSE personnel.

25. Prohibited Items FIREARMS & AMMUNITIONS SWITCHBLADE KNIVES POCKET KNIVES WITHOUT A BLADE LOCKING MECHANISM ALCHOLIC BEVERAGES ILLEGAL DRUGS OR CONTROLLED SUBSTANCES DRUG PARAPHERNALIA PRESCIPTION MEDICATION WITHOUT PROPER LABELING PORNOGRAPHIC, OBSCENE, DEFAMATORY, ABUSIVE, OR INFLAMMATORY MATERIAL OR LITERATURE Cameras on location require COPC management approval All persons and vehicles on ConocoPhillips propertyare subject to search at any time

26. On-site Programs and Expectations

27. On-Site Safety Programs and Expectations Reporting to the Person “In-Charge” Reviewing the JSA & Emergency Plan Participating in “STOP” Practicing Safety Leadership Understanding General On-Site Rules

28. Immediately upon arriving at the site, report to theConocoPhillips Supervisor or RepresentativeIf a ConocoPhillips Supervisor is not present,make contact with the Contractor Representative who is responsible for directing the work

29. After reporting to the on-site supervisor, review the task and site-specific JSA so asto be aware of potential hazards and theplans that exist to mitigate hazardsReview the on-site Emergency Plan requirements and identify all emergency contacts and resources

30. JSA’s – Job Safety AnalysisA pre-job safety meeting and JSA will be conducted prior to beginning daily operations and also when the job scope or conditions changeFull crew participation is expected JSA’s must be revised as work conditions or personnel change during the day

31. STOP Principles All personnel on location are expected to spend time Observing Behaviors Safe & Unsafe Behaviors are to be noted If an unsafe behavior is observed, the employee making the observation has the responsibility to STOP the Job and Initiate a Discussion Employees involved are expected to determine what actions should be taken to ensure a safe outcome A STOP Card is written up to document Safe and Unsafe Behaviors. Only anonymous information is reported.

32. Throughout your entire work-day, you should STOP and engage your fellow workers in conversations about Safe and Unsafe activities that you observe ConocoPhillips is in the process of implementing STOP, and expects to have it fully implemented during 2006

33. Every employee working at a ConocoPhillips site needs to behave as a “Safety Leader” A “Safety Leader” is a person who caresenoughtotakeaction to keep themselves & others free from danger or injury

34. All individuals on our locations have the Authority and Responsibility to correct unsafe acts or conditions and STOP any unsafe operation

35. While on location jewelry shall not be worn where the potential exists for it to get caught in machinery or equipment Jewelry includes rings, earrings, necklaces and non-medical wristbands Understanding General On-Site Rules

36. Hair longer than shoulder length must be tied up and placed under the hardhatExcept in emergencies, employees should not work more than 18 consecutive hoursHorseplay and practical joking is prohibited General On-Site Rules

37. Understanding General On-Site Rules Guards shall be provided to protect personnel from hazards such as “point of operation” hazards and rotating parts Removal of guards from machinery while in normal operation is prohibited

38. Smoking is allowed only in a“designated area” on locationSmoking areas should always be upwind and at least 75 ft from hydrocarbon sourcesKeep your entire worksite clean and orderly Understanding General On-Site Rules

39. Material Handling & Rigging

40. When guiding overhead suspended loads,tag-lines and tail ropes must be usedTag-lines must be of sufficient length to placeworkers out of the fall path of suspended loads Special training and certification is required for operators of man-lifts, forklifts and cranes

41. Critical Lifts will be assessed using a “Critical Lift Worksheet” Critical Lifts are those exceeding 10,000 pounds or which cross-over live process equipment

42. Proper Lifting Practices Be “warmed” up & ready to lift Grasp the load firmly Keep the load close to your body with chin-in and back straight Lift with your legs – not your back Avoid twisting Obtain help when possible

43. Tools & Working Around Electricity

44. Tools Inspect the condition of all tools before use The use of defective tools or the “wrong tool for the job” is prohibited Observing someone using the “wrong tool for the job” would merit stopping work

45. Ladders Ladders must be adequate for the work being undertaken and inspected regularly Both hands shall be kept free for climbing Only one person is allowed on a ladder While ladders are in use they must be “tied-off” and properly anchored

46. Vehicle Safety “Tools” Vehicles will carry fire extinguishers with a minimum 20 lb multi-purpose rating First aid kits shall be accessible and the contents selected on a review of the job site and associated hazards

47. Tools for “Working at Heights” When fall hazards cannot be eliminated by working from ground level or thru the use of a guardrail system, a fall arrest system must be used A full body harness with 100% tie-off must be used when working above six (6) feet in unguarded areas

48. If working around electrical power lines,a minimum clearance of 10 feetshall be maintainedAll vehicles and equipment intransitmust maintain a 4 foot minimumclearance from power lines Power lines without adequate clearances will have to be de-energized Working Around Electricity

49. Utilization of “Hot Sticks” to raise electrical power lines requires approval of a COPC SupervisorWork must then only be done by a qualified person such as a Company or Contractor electrician

50. Static Electricity Plastic buckets shall not be used for transporting hydrocarbons Metal storage tanks shall be grounded Tank trucks transferring liquids or solids shall be bonded to the storage tank before transfer begins