Lock out / Tag out Downhole Plug Assembly Business Case and feasibility

Table of Contents Product Purpose Design Deployment Safety impact Implementation Strategy Table of Contents 26/10/2019 Confidential

Product Purpose Improve safety by isolating hazardous energy Eliminate the risk of unexpected energy discharge Prevent injury or death Prevent property damage Prevent tampering or unauthorized access to valves Reduced property damage Reduce the number of service calls resulting from unauthorized access Confidential 26/10/2019

Simple elegant design Robust stainless steel construction (other material options are available) Plug fits in existing standard valve box ‘B’ Size Threaded lid can be opened in the same manner as current downhole valves Accommodates industry standard Master safety locks and hasps Leverages industry standard lock out / tag out procedures Confidential 26/10/2019

How is this system be deployed Worksite Valve 1 Valve 2 Valve 3 Valve 4 Identify all sources of hazardous energy for the worksite location Workers close valves 1 though 4 Workers apply their locks and tags to each plug Work is performed at the worksite location When the work is complete locks can be removed and the system can be safely energized Confidential 26/10/2019

If workplace safety measures are not proper and they fail, and if an injury or illness occurs, it costs something to someone: to injured workers, their families, friends and communities, co-workers and employers. Confidential 10/26/2019

The Cost of Workplace Injury Direct medical costs due to injury Employer premiums paid to the WCB compensate the health system for any medical, pharmaceutical and recovery costs required by workers affected by a workplace injury Costs to fix property and or equipment damage If a workplace injury or illness occurs as a result of faulty or absent equipment or machinery, etc., the employer must pay to fix, replace or install that equipment or machinery Hiring/retraining employees If an injury or illness is serious enough that the worker needs time to recover before returning to work, many employers will often have to hire or retrain someone to cover that position. Paying for the training and time of replacement workers is another example of direct cost of injury. Confidential 26/10/2019

The Cost of Workplace Injury (Continued) Legal If a workplace injury or illness occurs, and is found to have resulted due to a lack of compliance to safety law, other direct costs to employers may come out of situations like court proceedings, including fines -or even jail time - applied by the courts. Impact of reduced income for injured workers. If a worker is injured and cannot return to work right away, his or her income will be impacted. This has potential to change things like the worker’s normal buying habits, ie. being able to pay for recreational and leisure activities for self or family Impact on quality of personal life For an injured worker, normal areas of his or her life like attending school, relationships with partners, children and friends, the ability to take part in personal health and leisure activities, or to volunteer in community events, can be significantly changed by a workplace injury. The emotional and social impact of injury is very real, and can be very difficult to measure. Confidential 26/10/2019

The Cost of Workplace Injury (Continued) Indirect impact for workplaces. Workers who have been injured and are returning to the workforce may have to retrain to other types of work, because they can no longer do what they’ve always done. Workplace incidents and injury also have the potential to negatively influence worker morale, and even influence how the public perceives or feels about that workplace or industry. All of this can impact workplace function. Confidential 26/10/2019

Implementation Strategy Test fit sample to ensure proper operation Develop and approve policy for use and operation of plug assembly Train staff in operation of plug Count the number of valves and order enough for entire jurisdiction Install lock out plug on valves in the course of operations and maintenance Considerations: Cost saving per unit on larger orders, per unit cost of device is impacted by the number of unit ordered. Confidential 26/10/2019

Lead time and availability Small orders for testing purposes can be fulfilled in 4 weeks Larger orders for implementation can be fulfilled in 6 to 12 weeks depending on the exact quantity Confidential 26/10/2019