SCAA 2014 Annual Meeting Safety & Environmental Management Systems (SEMS) Centre for Offshore Safety (COS) Overview Charlie Williams Executive Director williamsc@centerforoffshoresafety.org

Deepwater – Industry / Focus Approach Well Containment & Intervention Capability Prevention & Industry Drilling Standards Spill Response Capability Joint Industry Task Force Groups Formed After Macondo Offshore Equipment Offshore Procedures Subsea Well Control & Containment Oil Spill Preparedness & Response Safe Drilling Operations

Update you on COS and COS activities Objectives Emphasize the role of SEMS and its execution in the delivery of safe and reliable operations Update you on COS and COS activities Here are the current activities of COS. Ldrshp is our first good practice. It is a good practice on how ldrs can conduct site visits in a manor that improves safety culture and SEMS effectiveness. It also is technique for how ldrs can use these same visits to observe SEMS effectiveness in their organizations SPI’s are what has been called leading indicators. COS has 50 person team that includes BSEE and the Coast Guard to develop these SPI’s. They will be the key indicators for the industry on whether they have healthy and effective SEMS systems. Lrng is focused on what are near misses of major incidents and how we can learn from these and other safety indicator data. KM is our data backbone for storing and analyzing all the collected data

Safety & Environmental Management Systems What are the elements of SEMS? Leadership Mechanical Integrity Safety and Environmental Information Pre-Start-Up Review Hazard Analysis Emergency Response and Control Management of Change Incident Investigation Operating Procedures Audit Safe Work Practices Records and Documentation Training The SEMS that COS is focused on is the 13 element SEMS in API RP 75 which is the basis for the BSEE SEMS regulations.

Safety and Environmental Management Systems (SEMS) Goal: Safe & Reliable Operations / Operational Integrity SEMS is a key mechanism to reduce the likelihood of major incidents

Bow Tie Approach Barrier Elements

Operator/Contractor Interfaces Why is the focus on SEMS? Because slips and falls do no result in major incidents. Failures in Safety Management do. Here is a simplified version of the SEMS elements. When SEMS is combined with a good safety cutlure it is the best barrier to a major incident. Safety Culture is the corporate culture is what enables staff compliance with your SEMS system. Also an effective SEMS helps develop a good Safety Culture

Our Mission Promote the highest level of safety for offshore drilling, completions, and operations through Effective leadership, Communication, Teamwork, Safety management systems, and Independent 3rd-party auditing & certification. Here is the current composition of the Board. Members of COS can be contractors, drilling contractors, operators, or other industry groups. However they must operate in DW greater than 1000 feet. All API members must be members of COS. Despite the membership the work is done by task groups similar to API standards work. Thus anyone can participate in this task groups. Additionally the audit tools are freely available on the COS website. It is hoped that everyone will want to use the tools and other SEMS auditing services.

Core Functions Effectiveness Assurance & Measurement Auditing Accreditation & Certification Find SEMS Gaps SEMS audits Performance data collection and analyses Close the Gaps Share and learn from the results Develop and share good practices Improve Skills and Knowledge

COS Delivery Performance Measurement and Learning SEMS Audit Requirements and Results Safety Performance Indicators Program Learning from Incidents Program Good Practices Leadership Site Engagement Skills & Knowledge Management System Knowledge Sharing COS Safety Forum OTC/COS SEMS Session What we do in the other core functions

Elements of an effective Skills & Knowledge Management System (SKMS): Commitment & Objectives Overview & Scope Accountability & Responsibility Roles &/or Tasks Assessment & Remediation Auditing & Quality Assurance Records & Documentation

What’s next for COS SEMS Effectiveness Measures, Tools, & Techniques – Continuous Improvement Expand Audit Protocol Guidance Respond to SEMS Regulatory Changes Contractors Marine Stop Work and Ultimate Work Authority FAQs SEMS Lead Auditor Training & Individual Certification Coast Guard Safety Culture

Center for Offshore Safety THANK YOU Questions Charlie Williams Center for Offshore Safety Executive Director williamsc@centerforoffshoresafety.org

SEMS Toolkit and Accreditation/Certification SEMS Audit Protocol (revision 2 complete) Compliance Readiness Worksheet Operator-Contractor Letter Templates Audit Guidance Document (revisions underway) Accreditation and Certification Auditor Qualification & Competence Requirements Training Program Requirements for Auditors Certification Requirements Accreditation Requirements Audit Report Forms Why is the focus on SEMS? Because slips and falls do no result in major incidents. Failures in Safety Management do. Here is a simplified version of the SEMS elements. When SEMS is combined with a good safety culture it is the best barrier to a major incident. Safety Culture is the corporate culture is what enables staff compliance with your SEMS system. Also an effective SEMS helps develop a good Safety Culture

SEMS II “…working with the COS workgroups on developing indicators to gauge industry OCS performance other stakeholders. …” COS-2-01, Qualification & Competence Requirements for Audit Teams & Auditors COS-2-03, Requirements for Third-party Auditing & Certification COS-2-04, Requirements for Accreditation of Audit Service Providers Audit Service providers must be accredited by a BSEE-approved accreditation body .. like COS Here are the current activities of COS. Ldrshp is our first good practice. It is a good practice on how ldrs can conduct site visits in a manor that improves safety culture and SEMS effectiveness. It also is technique for how ldrs can use these same visits to observe SEMS effectiveness in their organizations SPI’s are what has been called leading indicators. COS has 50 person team that includes BSEE and the Coast Guard to develop these SPI’s. They will be the key indicators for the industry on whether they have healthy and effective SEMS systems. Lrng is focused on what are near misses of major incidents and how we can learn from these and other safety indicator data. KM is our data backbone for storing and analyzing all the collected data

Safety Performance Indicator Program Objectives Collect and learn from safety performance Assessment of whether the measured performance meets or exceeds industry norms through benchmarking and sharing of information. Development of collaborative solutions to improve performance. What we do in the other core functions * Not the complete set of COS SPI

Learning From Incidents Program Objectives Provide members a mechanism for sharing timely information which can be used in decision-making regarding standards and practices; Complement the information from the Safety Performance Indicator Program Scope SPI 1 and 2 incidents High Value Learning Events Information Description Site, Operation and Activity Type Consequences Areas for improvement Lessons Learned Analyses and Learning to Improve What we do in the other core functions