1 STAMP, INC. (Safety Training Accreditation Management Process)

2 One Challenge of our industry Too many accidents Regulations are created to reduce incidents Operators are required to make sure that contractors have a good safety program.- example – Process Safety Management Each operator interprets these new requirements. From these interpretations, each operator creates their own method of meeting these requirements

3 The operators challenge Many operators have contractors. Can not conduct a different type of audit for each type of contractor They do not have the resources or the expertise Result – Each operator creates their own orientation, multiple programs.

4 The contractor’s challenge Many times work for multiple operators Must meet the requirements of each customer At the same time they must implement programs that prepare their employees for their own specific type of work.

5 The Solution Standardization – STEPS – PEC orientation, Rig Pass, etc. The contractors must take the lead role in the process of having their programs evaluated – must be contractor driven

6 STAMP Mission STAMP is a non-profit corporation whose mission is to improve the quality and reliability of contractor safety programs and verification processes as a principal means to improve HSE and operational performance in the oil and gas industry. STAMP is a voluntary contractor-led initiative to help companies meet regulated HSE requirements and industry standards through the application of consistent auditing and accreditation processes. STAMP applies an industry accepted, third-party audit protocol to certify that a company has implemented safety programs that meet or exceed regulatory and participating operator HSE requirements. Ultimately, STAMP seeks to improve industry performance by strengthening the value chain that links contractor and service companies with operator companies.

7 STAMP’s Goals Improve Contractor safety performance and compliance Improve the integrity (i.e., level the “playing field”) of Contractor selection and program verification processes Provide a consistent and cost-effective means to fairly evaluate contractor safety programs Minimize costs, redundancies and duplication of effort for both contractors and operators

8 Guiding Principles Improved Safety (the ultimate, expected outcome of this effort for companies and the industry) Consistency (consistent application of training, auditing and accreditation requirements) Tangible Benefits (benefits should be obvious and real to both contractor and operating companies) Transparency (the way STAMP operates should be transparent to all concerned parties to ensure consistency and a level playing field) Confidentiality (provide mechanisms to preserve the confidentiality of sensitive data and other records) Performance (improvements in safety training, auditing processes, information management, company & industry safety performance and operational efficiencies should be measurable, or otherwise evident)

9 Benefits to Contractors Contractors are accurately, consistently and fairly evaluated Level of HSE training and proficiency recognized and accepted by participating operators Reduced redundancy of HSE training required by different operators* Reduced frequency of operator audits* More effective use of resources* Contractors request a STAMP audit at a time of their choosing Third-party auditors approved by contractor and operator Improved safety performance and operating costs* A tool to monitor/audit sub-contractor safety programs Recognition for HSE excellence* Encourage CDT validation and quantification* of benefits

10 Benefits to Operators Contractors take responsibility for HSE programs & training Contractors fund STAMP Fewer resources needed to monitor contractor performance* More efficient access to contractor performance information STAMP works in conjunction with existing HSE data management systems, operator audit protocols and ongoing data gathering and verification processes Contractors can be accessed more efficiently, consistently and fairly for selection purposes Participating operators approve the STAMP model and protocol system Third-party auditors approved by contractor and operator Improved contractor safety performance and reduced operating costs* Encourage ODT validation and quantification* of benefits

11 Many questions to be answered

12 How can a contractor get “STAMPed”? Contractor decides that they want to be evaluated PEC, on behalf of STAMP, Inc. will send a third party auditor to the contractor’s facility to evaluate their HSE program. The auditor will present deficiencies, if any, to the contractor Contractor will eliminate deficiencies Auditor will confirm Contractor will receive a STAMP

13 What will the auditor evaluate? The contractor’s HSE program If the contractor has an orientation that meets or exceeds the standard requirements of their customers, of OSHA, MMS, etc., then the auditor will be able to attend the contractors program for evaluation purposes.

14 Who will determine how a company will be audited? The contractors will have a say in determining what the audits will include? Contractor organizations will be encouraged to create the audits for the businesses in their organizations. Examples – IADC for Drilling, OMSA for Offshore Marine, ADCI for Diving, etc. Committees representing each segment of industry are starting to meet – July 27 in Lafayette, La.

15 The audit protocol The audit will include industry specific elements Different types of businesses need different training, they take different risks. Bottom line – Their programs differ and therefore in order for an audit to be effective, it must take into consideration these differences.

16 STAMP Organization Board of Directors –Up to 20 Contractor Members Provide overall direction and oversight of STAMP’s operations, performance, and cost management Represent different industry sectors Lead development of sector-specific safety program requirements and audit protocols –Four Officers Establish STAMP bylaws, policies and administrative procedures – President – Roosevelt Smith, Tetra Contracted an Executive Director to coordinate the development and implementation of STAMP – John Stephens, Houston, Texas

17 Key Relationships STAMP –Contractor-led, non-profit company –Establishes audit and verification processes –Manages STAMP certification data base –Establishes sector-specific safety program requirements PEC/Premier –Provider of selected administrative, data management and operational support services Advisory organizations –NSMS, OSHA, API, –and others

18 Seed money for the organization during development Present Board members each provided $5,000 seed money for development – 20 board members at $5,000 = $100,000 Industry organizations will be asked to contribute Operators will be able to contribute – Method to be determined.

19 What will this cost Membership in STAMP - $500 per year to pay for operation of the organization The audit will cost about $750 per day for the auditor – Size of the contractor will determine the number of days needed for the audit and the total cost of the audit.

20 Examples of Industry Sectors 1.Catering 2.Cementing 3.Completion 4.Diving/ROV 5.Drilling Services 6.Electrical Services 7.Environmental Services 8.Fabrication Services 9.General Contractor/Construction 10.Heavy Equipment Services 11.Machine Shop Services 12.Mud and Fluid Services 13.Painting/Blasting/Coatings 14.Pipeline Construction 15.Roustabouts/Contract Labor 16.Tank/Vessel Cleaning 17.Transportation – Aircraft 18.Transportation – Land (DOT) 19.Transportation – Marine 20.Tubular Services 21.Welding Services 22.Well Services 23.Workover Services