1. Burn Injuries How much do they really cost? July 24, 2014 DuPont Protection Technologies Nomex® Thermal Apparel Oil & Gas Industry

2. Internal Use Only 22 While work-related fatalities can cost a company millions of dollars and only happen in rare events, burn injuries are neither cheap nor uncommon. Data Source: National Business Group on Health Americans suffer from burn injuries every year. spent on burn injury treatments alone. While that’s an average of $27,368 spent per person, burn injury severity varies widely depending on the %TBSA, and you can bet the injuries in the oil and gas industry are significantly more severe, have a higher %TBSA, and are, therefore, much more expensive than the average injury.

3. Internal Use Only 33 Yet medical and claims costs are only the tip of the iceberg… THE TIP OF THE ICEBERG Direct Costs of Injuries Medical costs Wage indemnity Claims administration fees THE BULK OF THE ICEBERG Additional Costs of Injuries Damaged equipment, vehicles & goods General Liability Costs & Litigation Lost productivity and quality Production Interruptions, Yield Losses Replacement Labor / Overtime Damage to Customer Relations & Public Image 1X 2 to 5 X Data Source: International Association of Oil and Gas Producers, Liberty Mutual Safety Index

4. Internal Use Only 44 While it’s difficult to ascertain the full impact of work-related burn injuries in a measured cost to companies, we’ll cover some examples and numbers to illustrate the magnitude of impact. Hospital Costs OSHA Fines Insurance Claims Lawsuits Productivity Losses

5. Internal Use Only 55 How much would all the costs for a typical case add up to per person? $5,000,000 Even while being generous with the estimated individual cost components, a typical burn injury case can cost nearly $5,000,000 per person.

6. Internal Use Only 66 OSHA Fines Fines will vary based on the severity of the safety violation and situation. Accident reports from the past three years show OSHA fines ranging from $75,000 to nearly $500,000 per incident. Ex. In 2012, an Illinois company was proposed OSHA penalties totaling $473,000 for failing to provide, require and train workers on the proper use of protective clothing and failing to provide eye, face and hand protection when handling high- temperature liquid and hazardous chemicals. The investigation occurred when a worker died from chemical burns. Data Source: OSHA

7. Internal Use Only 77 Lost Productivity Costs Burn injuries can be extremely painful, may change a person’s physical appearance, and may cause much physical and psychological suffering… Productivity losses due to fires and burns are highest among males ages 24-44 and females ages 45-65 – ranges including much of the active workforce. In 2000, fires and burns in the United States cost $6.2 billion in productivity losses, equal to $8.6 billion in 2010 dollars.  That’s an average of $22,632 per person, if we take into consideration the 380,000 Americans that suffer burn injuries annually. 57% of burn cases can cost up to $100,000 for psychological treatment. Data Source: National Business Group on Health

8. Internal Use Only 88 Litigation Costs Litigation costs are where most companies take the biggest hit on burn injuries. Some examples… – $5,000,000 burn injury settlement over fuel system failure – $1,600,000 settlement for burns sustained on the job requiring arm and hand skin grafts – $375,000 wrongful death and burn injury settlement over gas tank fire – $122,500,000 burn injury verdict resulting from refinery explosion and negligence – $7,500,000 settlement for product liability case, where victim suffered burns on over 90% of his body Data Source: Various Law Firm Case Reports

9. Internal Use Only 99 Other costs to consider… Insurance claims Downtime due to incident investigation Lost work days Damage to customer relations Public image etc.

10. Internal Use Only 10 Adverse effects on public image and brand could generate much more severe financial repercussions Occupational health and safety are key components of any company’s sustainability profile and warrant investors’ attention A company’s failure to maintain a safe work environment can be expensive, both for the company and investors. – Following the 2010 explosion on BP’s Deep Water Horizon drilling rig which killed 11, BP sold $30 billion (20%) of its assets to pay for costs and claims related to the accident. Its stock price is still well below where it was before the accident. – The April 2010 explosion which killed 29 miners at the Upper Big Branch coal mine resulted in a nearly 50% drop in Massey Energy’s stock price by August 2010 Greater scrutiny is being placed on companies in high risk industries that are not adequately addressing occupational health and safety concerns – In 2011 ConocoPhillips shareholders filed a shareholder resolution seeking a report identifying steps the company has taken to reduce the risk of safety accidents. Source: Pax World Investments web site

11. Internal Use Only 11 With increased oil and gas production activity, the national rotary rig count is increasing. Concurrently, the number of fatalities and fatality rate in the industry are also on the rise. Although fatalities and fatality rate were going down in the late 2000s, data from recent years shows the contrary. Data Source: NIOSH, BLS CFOI

12. Internal Use Only 12 Data Source: BLS CFOI

13. Internal Use Only 13 It’s clear that costs to companies from burn injuries can be on the order of millions of dollars. Use the OSHA Injury Cost Calculator to estimate the cost of injuries to your company. https://www.osha.gov/dcsp/smallbusiness/safetypays/index.html?utm_medium=Print&utm_source=awgoto

14. Internal Use Only 14 How do these costs compare to the costs of an FR Clothing Program that will provide your workers with the highest level of protection from burn injuries? FR Apparel Program Cost Calculator Demonstration

15. Internal Use Only 15 The type of FR Apparel that you chose greatly impacts the cost Data Source: National Burn Registry Annual Report The difference between wearing Nomex® coveralls and FR Treated Cotton Coveralls is $600,000---on hospital costs alone

16. Internal Use Only 16 Nomex® FR Apparel Program NOMEX® WORRIES ABOUT THE WORST-CASE SCENARIO SO THAT YOU DON’T HAVE TO. Garments made with Nomex® fiber are subjected to rigorous testing, including Thermo- Man® thermal manikin testing. Nomex® fiber, and garments made with Nomex®, have been proven – not only in laboratory and field tests, but in real-world scenarios – for over 40 years. It works in the toughest fires; over 95% of firefighter turnout gear contains Nomex® fiber. Nomex® offers the highest level of protection from burn injuries to your employees. NOMEX ® IIIA - 6 oz/yd 2 4 seconds @ 2.06 cal/cm 2 s Total Exposure: 8.24 cal/cm 2 43.4% Predicted Body Burn Injury 88/12 FR Treated Cotton / Nylon – 7 oz/yd 2 4 seconds @ 2.06 cal/cm 2 s Total Exposure: 8.24 cal/cm 2 77.9% Predicted Body Burn Injury

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18. Internal Use Only 18 Data Sources: Lectric Law Library, Texas State University, New Mexico Case Records

19. Internal Use Only 19 How much more severe are burn injuries in the oil and gas industry? An industry with… Significantly more hazardous chemicals and products Much higher temperatures (450-500 °F) Volumes of product on the order of millions of gallons How much would THESE burn injuries cost? vs.

20. Internal Use Only 20 Thank you!