Introduction Bruce Berwager VP - Beta Offshore

2016 Contractor Safety Management Program

Introduction Welcome Who I am Why we are here Why we see this as important Why PEC was chosen What we expect of our Business Partners

Who I am Bruce Berwager Vice President – Beta Offshore Previously CEO Sandpiper Energy Resources and B&H Energy Partners COO at Venoco, UEI SVP & GM Warren E&P Management and engineering roles at Chevron, Conoco, Unocal 25 years in California 22 years offshore industry experience-US, Thailand, Dubai, Norway

Why We Are Here We are committed to ensuring a safe work environment for all We must ensure that all our business partners working at our facilities have: Sound Safety Programs Strong Safety Records Appropriate training for the employees sent to our facilities Insurance that meets our minimum standards We have contracts with 165 companies that work at our facilities, requiring us to review and maintain a huge amount of data. PEC Representatives are here today to help your companies understand and fulfill the new requirements to work for Beta Offshore.

Why This Is Important The Offshore O&G Industry is facing ever-increasing scrutiny. The safety of all, employees and contractors alike, is our first priority. Beta, as Operator, is ultimately responsible for everything that happens at our facilities. Beta’s facilities and operations are subject to federal regulations that require us to verify the skills, knowledge, and safety records of all who work at our facilities, subject to audit. Therefore, we must use contractors that have programs, training, and records that comply with our requirements.

Why We Chose PEC Safety We have selected PEC Safety as our contractor safety management administrator because: PEC Safety has representation nationwide PEC Safety has a stellar record of providing reliable, user-friendly service PEC Safety is used by our parent company, Memorial Resource Development throughout the US PEC Safety is also used by over 60 other oil companies in the US Many of our nationwide business partners are already registered with PEC Safety

What We Expect From Our Business Partners We expect our Business Partners to work with Beta personnel to make the work environment at our platforms and other facilities accident free…every accident can be prevented. We expect that our employees and those of our Business Partners have the proper training, skills, and tools to work safely, not endangering others, and return home after their shifts in as good of condition as when they came to work. Beta expects our Business Partners to participate fully with the requirements of the PEC Contractor Safety Management program because it’s good policy. The safety of all who work at our facilities is not an option, it is a requirement!

Chris England VP, Business Development – Corporate Introduction Chris England VP, Business Development – Corporate PEC Safety

Who is PEC Safety? PEC Safety is a Louisiana based company founded in 1993 Office Locations: Mandeville, Louisiana Dallas, Texas Houston, Texas San Antonio, Texas Regional Representatives: Oklahoma North Dakota Pennsylvania Utah

History of PEC Safety PEC Safety is Incorporated & Training Begins SSQ/SHERP Developed Creation of SafeGulf Creation of SafeLandUSA PEC Safety Administers SafeLandUSA Database BP Oil Spill – PEC Safety Trains 150k Response Workers in 3 months

Philosophy of Standardization Our Philosophy of Standardization: Standardized Safety Questionnaire Standardized Orientation SafeGulf SafeLandUSA Shared SSQ Verifications & Audits Our mission is to help your employees get home safely to their families “PEC Safety’s mission is to provide standardized training programs and contractor evaluation processes ensuring quality control and minimizing risks that an Operator is exposed to when using Contractors. Through standardization, we strive to minimize unnecessary duplication of efforts and expenses, while ultimately making the workplace a safer environment.”

PEC Safety at a Glance

Beta Offshore and PEC Safety Beta Offshore has established a business relationship with PEC Safety, and effective immediately, PEC Safety will assist Beta Offshore in implementing its Contractor Safety Management Program

Meeting Beta Offshore’s Requirements

Account Information SECTION 1

Account Information SECTION 1 Step 1 – PEC Initial Account Setup Acquire username and password from PEC Safety’s Contractor Support Department Phone: 866.647.2338 Email: safety@pecsafety.com

Account Information SECTION 1 Step 1 – PEC Initial Account Setup Login on PEC Safety’s website Input contractor specific credentials

Account Information SECTION 1 Step 2: Complete the Standardized Safety Questionnaire (SSQ) Complete Standardized Safety Questionnaire (SSQ) after logging in to PEC Safety’s website

Account Information SECTION 1 Step 3: Updating Standardized Safety Questionnaire (SSQ) Update SSQ Quarterly Once the SSQ is completed, you will be required to update the SSQ quarterly or at any time your organization makes or will make significant changes to: Statistical data Services your organization provides Your organization’s HSE Management System

Account Information SECTION 1 Step 3: Updating Standardized Safety Questionnaire (SSQ) At the beginning of every year, your SSQ will become incomplete and will require updating Sections requiring attention will be highlighted and PEC Safety will send you an annual reminder to update your SSQ

Account Information SECTION 1 Contractor Release To receive appropriate SSQ sections and Beta Offshore specific sections, please release your account to Beta Offshore Beta Operating Company, LLC

Account Information SECTION 1 SSQ Complete SSQ Incomplete

Account Information SECTION 1 Beta Offshore Specific (Quarterly) Man-Hour Section Beta Offshore is requiring each contractor to report on a quarterly basis all exposure hours and recordable accidents/incidents related to work/services performed on all Beta Offshore locations. This table is located in the SSQ under the section – Specific Quarterly Incidents. If a contractor did not have employees on any Beta Offshore location during a quarter, the contractor is still required to complete the table by recording zeroes for those quarters.

Account Information SECTION 1 Completion Dates The SSQ quarterly update for the General Safety Incident Statistics section (statistical data) will be available for updating on the following dates each year: January 1st April 1st July 1st October 1st Updates must be completed within 10 days following each of the above dates for the previous quarter

Document Information SECTION 2

Document Information SECTION 2 Required Documents Last three years of Experience Modifier Rate (EMR) documents received from your workers compensation insurance company W-9 Signed Beta Offshore Contractor Environmental Health and Safety Requirements Document Environmental Health and Safety (EHS) Manual Signed Beta Offshore Safety Handbook Acknowledgement Form Training plan and/or matrix Management of Change (MOC) SEMS Knowledge and Skills Document (Enter in PEC Safety’s Advanced Training Tracker) Last completed Job Safety Analysis (JSA) Mechanical Integrity Plan (If providing critical equipment on Beta Offshore’s premise) Background Check Policy Drug and Alcohol Policy Employee Training Records and certificates of course completion (Enter in PEC Safety’s Advanced Training Tracker) Contractor current applicable licensing from city, state, and government required agencies authorizing contractors to perform work and or consulting

Document Information SECTION 2 How to Meet This Requirement Certain questions in your SSQ ask for specific documents and give you the option to upload documents To have the ability to upload a document to PEC Safety’s system, purchase of the Verification Package is required To purchase go to: www.pecsafety.com/contractor-services If you have previously purchased the Document Upload and Training Tracker Bundle or were a CAP subscriber, you will not have to purchase the Verification Package until your subscription renewal for those is due.

Document Information SECTION 2 Certificate Upload and Storage

Document Information SECTION 2 Employee training records and certificates of completion must be uploaded into PEC’s Advanced Training Tracker PEC Safety offers a Training Tracker to house all your employee training records and certificates for Beta Offshore to review Enter training records for specific personnel to arrive on Beta Offshore locations Upload training certificates and documentation to verify training Release training records to Beta Offshore Training Tracker

Document Information SECTION 2 Training Tracker Benefits Adopt operator training matrices Run training needed and taken reports All PEC training is automatically added Able to print company badges with training listed

Sub-contractors Does your company use sub-contractors? Let PEC Safety take the burden of sub-contractors off of your shoulders Managing your sub- contractors with PEC Safety is cost effective, saving you time and money!

Contact Information Contact PEC Safety Beta Offshore Operator Account Rep Lauren Lindley: lauren@pecsafety.com For any additional questions or comments, contact us at: 866.647.2338 | safety@pecsafety.com Get on Board with PEC Safety! www.pecsafety.com Completion Dates Contractor Requirements – March 1, 2016

Follow-up Webinars PEC Safety’s Help Desk can host personal follow-up webinars regarding: How to manage and maintain your employee’s training records Navigating the SSQ and Training Tracker Uploading documents to the SSQ To schedule a webinar on system use email help@pecsafety.com

Closing QUESTIONS | COMMENTS PEC Safety