ISMS Best Practices Workshop Integration of New Safety Initiatives into ISMS Continuous Improvement September 12-13, 2006

ISMS Best Practices Workshop 2 Recent Tank Farm History Numerous challenges over the last 7 years necessitated change*: ▪DOE performance letter in 2001 ▪Multiple Layoffs, mission acceleration, restructuring, funding cuts ▪Significant legacy issues emerged ▪Increased injury and event rates ▪Increased stop works and union grievances ▪Outside interveners *INPO Lesson Learned

ISMS Best Practices Workshop 3 CH2M HILL Improvement Cycle CH2M Prime Contractor 1999 *DART Problem Evaluation Report (PER) System ESTARS Vapor Issues Safe Work Environme nt (SWE) Culture Assessmen t Mandator y Respirator Usage in Farms ISMS Expectations 4/15/05 Human Performance Improvement Training Integratio n of SWE, ISMS & HPI Follow-up SWE Survey Accident Injury Rate PIP Addressin g OA Vapor Issues 244-CR Vault Event 7/22/04 Mission Alignment Process (MAP) SWE Mentoring IROF ISM S PIP DART 1.0 DART 0.1 IROF A-Prefix Farms – Mask Cessation WFO VPP Star Status IROF Disciplinary Process Revised *DART – Days Away and Restricted Time Not to scale – For illustration only

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5 CH2M HILL Employee Concerns

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7 5 Year DART and Recordable Injury Rates

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10 Current ISMS Strategy Single message of ISMS continuous improvement Integrate various concepts with goal of event and injury prevention ▪Safe work environment (SWE) ▪HPI ▪VPP SWE is a comprehensive safety culture initiative based on INPO/NRC experience SWE is based on individuals feeling free to raise issues without fear of retaliation HPI tools used to emphasize event prevention VPP used to emphasize worker involvement

ISMS Best Practices Workshop 11 ISMS Continuous Improvement based on effective problem identification, worker involvement, and event prevention ISMS Continuous Improvement Event prevention Worker involvement Problem identification and resolution

ISMS Best Practices Workshop 12 Benchmarking Resources NRC Safety Conscious Work Environment attributes Voluntary Protection Program Draft DOE ISMS safety culture elements INPO safety culture principles INPO Human Performance Improvement (HPI) concepts DNFSB Recommendation Commercial nuclear power problem identification process Safety culture survey tools

ISMS Best Practices Workshop 13 ISMS continuous improvement is based on an open work environment where everyone feels free to raise issues without fear of retaliation Safe Work Environment (SWE) Problem identification and resolution

ISMS Best Practices Workshop 14 Commitment Conservatism in Safety Decisions Problem Identification & Resolution Training Adequacy Self-Assessment Trust Communications Free Flow of Information Alternative Avenues for Concerns People Management Prevention of Retaliation Safe Work Environment Attributes

ISMS Best Practices Workshop 15 ISMS Continuous Improvement uses VPP to emphasize worker involvement Voluntary Protection Program Worker involvement

ISMS Best Practices Workshop 16 Voluntary Protection Program (VPP) Strong emphasis on worker involvement enabled SWE implementation Commitment to prevention of injuries Cooperative management/labor atmosphere Labor and management collaboration examples: Bargaining unit safety representatives Joint safety committees Worksite analysis Hazard prevention and control Safety and health training On-site reviews, internal inspections, continuous improvement Peer safety observers

ISMS Best Practices Workshop 17 ISMS Continuous Improvement uses HPI to emphasize event prevention Event Prevention Event prevention

ISMS Best Practices Workshop 18 HPI Integration into ISMS Emphasized “event prevention” versus “event investigation” message consistent with DOE ORP message of zero accidents HPI integrated into ISMS continuous improvement message ▪Avoided flavor of the month or new priority perspective Recognize workers for ISMS successes (event prevention) Took advantage of previous ISMS benchmarking activities to establish common ground with HPI such as: ▪Safe Work Environment problem identification and resolution attributes ▪VPP employee involvement ▪Use of HAMTC Safety Reps in event investigations and critiques ▪Progressive Performance Management and SWE survey feedback to improve perception of fairness and consistency ▪Organizational weaknesses evaluated in Root Cause Analysis Used event prevention message to emphasize company safety slogan “ At CH2M HILL, Safety is No Accident”

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ISMS Best Practices Workshop 20 Lessons Learned Senior management vision and commitment is essential Adapting NRC/INPO safety culture principles (SWE) have been effective in reducing events with consequence ▪Commercial nuclear Problem Identification & Resolution (PI&R) process was effective in DOE environment Benchmarking was necessary and critical for effective change Safety culture improvement initiatives must be integrated with ISMS VPP employee involvement helped SWE implementation SWE emphasis on PI&R helped HPI implementation Involvement of union safety representatives fostered change Independent assessments accelerated change Independent and comprehensive employee surveys based on SWE attributes increased workforce credibility and trust

ISMS Best Practices Workshop 21 Results Dramatic injury and event reduction over the last 12 months Robust problem identification and resolution Worker safety perception of company has improved significantly Worker trust of management high Raising issues through immediate supervisor has improved Integrated ISMS expectations clear and evident

ISMS Best Practices Workshop 22 CH2M HILL’s ISMS continuous improvement initiative has resulted in significant safety improvement over the last 2 years