1. Life-Saving Rules Contractor Leadership Engagement Pack
Document purpose:
This slide pack is specifically for briefing contractor leadership and management prior to briefing their staff on Shell’s Life-Saving Rules.
Overview:
Safety is Shell’s top priority and we continuously seek to improve how we manage safety and strengthen our safety culture. The enforcement of our 12 “Life-Saving Rules” is one example of this.
The Life-Saving Rules set out clear and simple “dos and don’ts” covering activities with the highest potential safety risk. They are not new rules. They have been carefully selected to focus compliance on activities where failure to comply with safety rules has had the highest potential for serious injury or death.
The Life-Saving Rules apply to all Shell staff and contractors, all of whom will receive a thorough briefing so they fully understand the need for complying with the rules and the consequences if they are breached. The Life-Saving Rules were introduced in 2009 and apply to all Shell staff and contractors.
This session is to give you the information you need to ensure your organisation, its people and sub-contractors can fully comply with the Life-Saving Rules.
Your support as a leader in your organisation is crucial.

2. Definitions and Cautionary Note
Reserves: Our use of the term “reserves” in this presentation means SEC proved oil and gas reserves and SEC proven mining reserves.
Resources: Our use of the term “resources” in this presentation includes quantities of oil and gas not yet classified as SEC proved oil and gas reserves or SEC proven mining reserves. Resources are consistent with the Society of Petroleum Engineers 2P and 2C definitions and includes Oil Sands.
Organic: Our use of the term Organic includes SEC proved oil and gas reserves and SEC proven mining reserves excluding changes resulting from acquisitions, divestments and year-end pricing impact.
To facilitate a better understanding of underlying business performance, the financial results are also presented on an estimated current cost of supplies (CCS) basis as applied for the Oil Products and Chemicals segment earnings. Earnings on an estimated current cost of supplies basis provides useful information concerning the effect of changes in the cost of supplies on Royal Dutch Shell’s results of operations and is a measure to manage the performance of the Oil Products and Chemicals segments but is not a measure of financial performance under IFRS.
This presentation contains forward-looking statements concerning the financial condition, results of operations and businesses of Royal Dutch Shell plc. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Royal Dutch Shell plc to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as ‘‘anticipate’’, ‘‘believe’’, ‘‘could’’, ‘‘estimate’’, ‘‘expect’’, ‘‘intend’’, ‘‘may’’, ‘‘plan’’, ‘‘objectives’’, ‘‘outlook’’, ‘‘probably’’, ‘‘project’’, ‘‘will’’, ‘‘seek’’, ‘‘target’’, ‘‘risks’’, ‘‘goals’’, ‘‘should’’ and similar terms and phrases. Also included as forward-looking statements in this presentation is our disclosure of reserves, proved oil and gas reserves, proven mining reserves, resources, and all future estimates of refining capacity, oil and gas production, capital investment and expenditure, cash from operations, dividends, share buybacks and investments. There are a number of factors that could affect the future operations of Royal Dutch Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this presentation, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for the Group’s products; (c) currency fluctuations; (d) drilling and production results; (e) reserve estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and regulatory developments including potential litigation and regulatory effects arising from re-categorisation of reserves; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; and (m) changes in trading conditions. All forward-looking statements contained in this presentation are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional factors that may affect future results are contained in Royal Dutch Shell’s 20-F for the year ended December 31, 2008 (available at and These factors also should be considered by the reader. Neither Royal Dutch Shell nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this presentation. There can be no assurance that dividend payments will match or exceed those set out in this presentation in the future, or that they will be made at all.
The term “Shell interest”is used for convenience to indicate the direct and/or indirect (for example, through our 34% shareholding in Woodside Petroleum Ltd.) ownership interest held by Shell in a venture, partnership or company, after exclusion of all third-party interest. 
The United States Securities and Exchange Commission (SEC) permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this presentation that SEC's guidelines strictly prohibit us from including in filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No , available on the SEC website You can also obtain these forms from the SEC by calling SEC-0330.

3. Life-Saving Rules You and I go home safely every day
The Life-Saving Rules are not new rules. They have been picked out because they target activities where failure to comply with safety rules has the highest potential for serious injury or death.
Having the same 12 Life-Saving Rules across Shell is a powerful way of ensuring a consistent culture of compliance.
All employees, contractors and sub-contractors must be briefed on the Life-Saving Rules. At the end of briefings everyone must confirm that they have attended the session – for example, by signing a register.
Compliance is mandatory for everyone while on Shell business or on Shell sites. There are serious consequences if Life-Saving Rules are breached – will cover this in more detail later in this session.
We must still comply with all other safety rules. If any national law requires an even higher level of compliance we meet that national requirement.
Note: From July 1, 2009, the Life-Saving Rules have been fully enforced.

4. Fact
Goal Zero
No Harm B
380+ Fatalities – 2010
The 380+ fatalities occurred in Shell companies and those under Shell’s operational control.
Most employees and contractors follow the safety rules every day but non-compliance with a safety rule was a significant contributory factor in many of the deaths between 2000 and 2010.
We refuse to accept death and serious injury as an inevitable consequence of working in our industry.
Compliance with the rules would have saved many of these lives (mostly contractor staff) A

5. B Where are we? No Harm Goal Zero
We have 12 clear and consistent Life-Saving Rules
We expect everyone to comply with these Rules
We are investigating each potential violation
We are holding people accountable: management, supervisors, staff, contractors, sub-contractors B

6. Life-Saving Rules – what are they?
Verify isolation before work begins and use the specified life protecting equipment
Obtain authorisation before entering a confined space
Obtain authorisation before overriding or disabling safety critical equipment
Work with a valid work permit when required
Conduct gas tests when required
Protect yourself against a fall when working at height 1 2 3 4 5 6 7 8 9 10 11 12
The Life-Saving Rules target 12 high-risk activities at work where it is proven that failure to comply has the highest potential for serious injury or death.
These rules are not new. They are all equally important, no implied ranking.
By driving a simplified, standardised set of Life-Saving rules across the Group we intend to achieve a culture of compliance.
These are global Shell rules:
- no deviations allowed - no additions
Speaker Note: Important Qualifications such as the following can be mentioned here:
Alcohol during social and customer entertainment is out of scope; it is highly recommended, however, to ensure everyone reaches home safely e.g. by taking taxis
Commuting is out of scope
Focus is on smoking where dangerous due to the proximity of hydrocarbons or other ignitable substances
Do not walk under a suspended load
Do not smoke outside designated smoking areas
No alcohol or drugs while working or driving
While driving, do not use your phone and do not exceed speed limits
Wear your seat belt
Follow prescribed Journey Management Plan
Note: Commuting, alcohol in social settings and smoking in office environments are out of scope

7. The Rules almost always cover activities in high-risk operational situations.
Breaches in those situations mean we will apply the principle that “If you choose to break the rules, you choose not to work for Shell.”

8. Consequences of Rule-breaking
Incidents and rule-breaking will be investigated thoroughly
If the violator is aware of the rule or required procedure through training, experience or communication, and did not comply with that rule or procedure, the maximum appropriate disciplinary action will be applied.
Failure to comply with any Shell Life-Saving Rule will result in disciplinary action. For employees of contractors or sub-contractors, this means removal from site and disqualification from future Shell work.
In addition, if a supervisor (Shell or Contractor) sets the conditions for rule breaking or fails to follow through if one is broken, maximum appropriate disciplinary action will apply.
In each case of a breach there will be an investigation in line with the appropriate local policy and practice. Procedural justice will be ensured.
If it is proven that anyone who was aware of a Rule through training, experience or communication broke a Life-Saving Rule they will face maximum appropriate disciplinary action, in accordance with local law.
For employees of contractors or sub-contractors, this means removal from site and disqualification from future Shell work. For Shell employees it is up to and including termination of employment.
What we want is for everyone to follow the Rules. We are making this effort on Life-Saving Rules because we do not want people to be harmed.
We know that Life-Saving Rules are not a magic solution for every fatality or serious injury. But we believe they will help us make an enormous improvement for everyone who works for us.
Please always follow all safety rules – they are there to protect us.

9. Working together on the Rules
Shell’s expectations:
Ensure that all your staff and your (sub) contractor staff assigned to Shell business have been verifiably briefed on the Shell Life-Saving Rules.
Embed Life-Saving Rules in induction processes for staff who work for Shell.
(Sub) contractor compliance with Life-Saving Rules is the accountability of the contractor at all times.
Actively report on Life-Saving Rule breaking.
Verify, measure and continuously improve compliance.

10. What if (Sub) contractors break the Life-Saving Rules?
First Time Rule Broken
(Sub) Contractor
(Sub) contractor Staff removed from site
If a Supervisor sets conditions for rule breaking = supervisor removed from the site/contract
Repeated Rule Breaking
If you choose to break a Life-Saving Rule you choose not to work for Shell
Removal of (Sub) Contract Manager from contract
Significant breaches regarded as breach of contract
Extensions or bidding for future contracts difficult
If in doubt, consult HR
Local Community (sub) Contracts/ Project critical contracts
Removal of (sub)contractor staff/supervisor/ Contract Manager
Insist on increased supervision

11. Communication tools for Contractors
To brief you:
Contractor leadership engagement pack – this pack (slides 1-10)
For your Supervisors to brief your frontline employees:
Employee and contractor induction pack
Tools to help people remember the Rules:
Guidance to clarify the rules pack and Work Cards

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