Background Screening Consortium Program Overview and Status NABSC North American Background Screening Consortium September 13, 2007 Program Overview and Status

Facilities Security Challenges and Responses Chemical Facilities Security continues to receive high levels of scrutiny from government and industry since 9/11 DHS, ACC, Congress and Industry representatives collaborate routinely on facilities security rules and regulations proposals DHS responses have focused on terrorist threat mitigation and prevention Industry owners responses, however, have been to strengthen CBC and D&A screening processes for contractors (work place violence and worker safety are the drivers - not terrorism) Multiple processes, uncoordinated processes Variations in level of scrutiny and threat assessment

Federal Government Security Mitigation Programs TWIC - Transportation Worker Identification Credential A government-issued identification card initially required to have an unescorted presence on facilities regulated under the Maritime Transportation Security Act (MTSA) of 2002 CFATS - Chemical Facilities Anti-Terrorism Standards Covers remaining facilities not covered under MTSA rules(TWIC) Above two programs not coordinated and implementation schedules not firm though final rules issued Above programs apply to both owner employees as well as contractor employees Above programs will not provide owners or contractor employers with information on their findings

NABSC Development Industry Owners recognize the benefits of criminal background screening in identifying individuals who may pose a risk to Owner financial assets and other people working at Owner facilities The Owners also realize there are advantages to having a standardized program approach and background screening criteria implemented through multiple suppliers to minimize cost and administrative effort (NASAP experience) In early 2005, a task group of Owner Representatives, Owner Associations and Safety Councils in Houston, Baton Rouge and New Orleans was formed to develop a criminal background screening consortium that would create a comprehensive standardized program for administering background checks on Contractor Employees The NABSC program has completed the piloting phase and is set to begin implementation

NABSC Program Development Team Membership Mark Atherton - DuPont - Chairman Owners Reps Bayer Chevron Phillips Dixie Chemical DuPont ExxonMobil Lubrizol Lyondell Rhodia Rohm & Haas Shell Total Associations and TPAs HBR GBRIA GNOBR GNOIEC HASC InfoMart Sterling Testing DISA Forward Edge ASAP Drug Solutions

Program Principles NABSC has been modeled after the North American Substance Abuse Program. Multiple professional and experienced Third Party Administrators will be utilized. All parties involved in handling data will be required to comply with the Fair Credit Reporting Act (FCRA) and other applicable federal, state and local laws. The best available national criminal databases will be searched and are specifically listed in program documentation. Each Owner retains flexibility to determine their site access grade and which Contract Companies will be included in the program.

Program Principles Owner sites will participate voluntarily and will maintain the right to allow or deny access to individuals that do not meet their site security requirements. No agreements or contracts between HASC and Owners are required. Contractor employers will have agreements directly with a consortium TPA. Owners will not be involved in the hiring process for Contractor Employees and will only have access to status information, eg. the Employee is either “Active” Or “Inactive” in the program. A professional third party Auditor will periodically audit TPAs for compliance and assure any corrective actions needed are completed.

Key Features and Requirements Contractor Employers with assistance from TPA’s will get written consent from Employees prior to starting a background screen and provide all Pre-Adverse and Adverse Action letters including advice of rights and responsibilities per FCRA. Contractor Employers will order screens for Employees, review screen reports and assure their Employees meet a specific Owner’s site requirements before assigning them to an Owner’s site. Background screens will be performed using standardized criteria defined in the NABSC program description. All convictions found, prison time served, and probation occurring during the past seven (7) years will be considered relevant for purposes of developing a screen report grade.

Key Features and Requirements Federal, state and county court house records will be checked in all identified areas of residence and employment (when known). Contractor Employees will have the right to dispute the initial information contained in the background screen report. TPA’s will resolve these disputes. Background screen grades will be maintained by the TPA’s and will be available to authorized Employers for two (2) years and then new screens will be required. Authorized Owners will access status information thru the HASC web site through a portal to the TPA of record. Owners will only see “Active” or “Inactive” status for Contractor Employees that are assigned to their site.

Key Features and Requirements Authorized Contractor Employers will access status information on perspective employees thru their TPA of record. The Houston Area Safety Council (HASC) will be the "Program Custodian“. They will hold the security or grade requirement specified by each participating Owner and will dynamically query each TPA to access program status information. HASC will not store any employee background screening results or status information. Owners will be advised to obtain indemnification from their Contractors for any litigation that may arise from the administration of this program and information provided by the TPA’s in a background screen report. Ongoing program oversight will be maintained by a Steering Team made up of key Owner’s, Association’s and Safety Council’s.

Key Features and Requirements Current Grades Definitions 00 Clear Record 01 One or more “non-violent misdemeanors” 02 One or more “violent misdemeanors” 03 One or more “lesser felonies” were found. 04 One or more “violent misdemeanors” and one or more “lesser felonies” 05 One or more “higher felonies” were found. 06 One or more “higher felonies” and one or more “violent misdemeanors” 07 Patriot Act List

Screening Search Criteria Summary Misdemeanors and Felonies where disposition is conviction, pending or adjudication withheld, deferred adjudication, no contest, or open warrant will be deemed relevant SSN Verification/Trace DMV Trace Seven Year Criminal History Search (County/State/Federal) National Criminal Database Search Admin Office of the Courts Dept of Corrections Prison Release Date Office of Parole Boards Sex Offender Registries Patriot Act/Terrorist Watch List Search Denied Persons List Fugitive List Office of Foreign Assets Control Terrorist Watch List

Approved TPA’s ASAP Drug Solutions DISA Forward Edge InfoMart Sterling Testing Systems

NABSC Pilot Program Scope Participating Owner Companies and Sites ExxonMobil - BayTown Lyondell Chemical - Channelview, La Porte, BayPort Du Pont - Ponchartrain, La. Participating Contractor Employers Austin Industrial BE&K Construction Kelly Services Day & Zimmerman

Summary of Pilot Results/Metrics Percentage of screens at each cut score 00 – 204 screens - 89.9% 01 – 11 screens - 3.5% 02 – 7 screens - 3.0% 03 – 1 screen - 0.4% 05 – 2 screens - 0.6% 06 – 2 screens - 0.9%

Summary of Pilot Results/Metrics Average Turnaround Time by Score 00 – 2.84 days 01 – 3.47 days 02 – 2.85 days 03 – 2.00 days 05 – 7.04 days 06 – 3.98 days

NABSC Benefits Summary Establishes standardized background screen criteria; Contractor Employers do not have to comply with multiple Owner requirements. Includes multiple professional Third Party Administrators giving Contractors a choice, providing competition and controlling costs. Allows Participating Owners flexibility to determine which contract companies will be included in the program. Graded security levels allows participating Owners flexibility to establish their own site access requirements. Provides Owners and Contractor Employers ready access to Contractor Employee’s background screen status (active/inactive). Program can and will be audited to ensure compliance.

Pathforward Participating Owners will begin notifying contractor employers of their NABSC participation Participating Owners will establish their own timelines and criteria for transition activities. HASC will begin holding informational meetings for Contractor Employers in October Overall transition timeline may be up to two years for grandfathered contractor employees.

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