1. © 2006-2009 JMJ Associates, LLP. All Rights Reserved. | v063009 | Included content contains trademarks and U.S. registered trademarks of JMJ Associates, LLP. Four Corners Safety Network : A Look at What’s Next for Safety Michael Huvane JMJ Associates

2. © 2006-2009 JMJ Associates, LLP. All Rights Reserved. | v063009 | Included content contains trademarks and U.S. registered trademarks of JMJ Associates, LLP. Purpose of this Session To stimulate your thinking as a leader for safety such that you: take away one new incite or perspective leave the meeting committed to taking one action that will impact your company’s safety culture

3. © 2006-2009 JMJ Associates, LLP. All Rights Reserved. | v063009 | Included content contains trademarks and U.S. registered trademarks of JMJ Associates, LLP. Who is JMJ? Global consultancy; founded in 1987 Strategic implementation partner, catalyzing human intervention for breakthrough results 150 people operating from 6 offices Industries: Oil and Gas; Mining and Metals; Shipbuilding; Large scale construction

4. © 2006-2009 JMJ Associates, LLP. All Rights Reserved. | v063009 | Included content contains trademarks and U.S. registered trademarks of JMJ Associates, LLP. JMJ GLOBAL JMJ Americas JMJ Europe JMJ Qatar JMJ Singapore JMJ Australia JMJ Africa Last Updated: 10 December 2007

5. © 2006-2009 JMJ Associates, LLP. All Rights Reserved. | v063009 | Included content contains trademarks and U.S. registered trademarks of JMJ Associates, LLP. JMJ Specializes In Major capitol project execution Incident and Injury Free Leadership Development

6. © 2006-2009 JMJ Associates, LLP. All Rights Reserved. | v063009 | Included content contains trademarks and U.S. registered trademarks of JMJ Associates, LLP. San Juan Basin San Juan Basin A cultural change in safety At first led by operators; now major suppliers The message has landed People have not died as a result of your work

7. © 2006-2009 JMJ Associates, LLP. All Rights Reserved. | v063009 | Included content contains trademarks and U.S. registered trademarks of JMJ Associates, LLP. An Industry-Wide Perspective

8. © 2006-2009 JMJ Associates, LLP. All Rights Reserved. | v063009 | Included content contains trademarks and U.S. registered trademarks of JMJ Associates, LLP. Number & Severity of Injuries 1900198019401950196019701990 2000 History of Safety Performance

9. © 2006-2009 JMJ Associates, LLP. All Rights Reserved. | v063009 | Included content contains trademarks and U.S. registered trademarks of JMJ Associates, LLP. 1980200519851990199520002010 2015 Workplace Fatalities in US

10. © 2006-2009 JMJ Associates, LLP. All Rights Reserved. | v063009 | Included content contains trademarks and U.S. registered trademarks of JMJ Associates, LLP. 10 Hispanic worker deaths on the rise US worksite fatalities down 9% since 1992 Hispanic population deaths at worksites up 57% in same period (17% of USA total) Hispanic workforce has only increased by 3.5% since 1992 In 2007 Natural Resources and Mining (includes Oil and Gas operations) Industry #3 in Hispanic worksite fatalities

11. © 2006-2009 JMJ Associates, LLP. All Rights Reserved. | v063009 | Included content contains trademarks and U.S. registered trademarks of JMJ Associates, LLP. 11 Common Root Causes to Hispanic Fatalities –Language barrier –Lack of Training –Exploitation of this work force in general Human and Cultural Behavior Component –Hispanic workers less inclined to join a Union (especially those without Legal documentation in the U.S.) –Less likely to protest when conditions seem dangerous Stop the Job!!!! –More willing to except line authority as Gospel Hispanic worker deaths on the rise

12. © 2006-2009 JMJ Associates, LLP. All Rights Reserved. | v063009 | Included content contains trademarks and U.S. registered trademarks of JMJ Associates, LLP. Number & Severity of Injuries 1900198019401950196019701990 2000 Tremendous Improvement: What is Next?

13. © 2006-2009 JMJ Associates, LLP. All Rights Reserved. | v063009 | Included content contains trademarks and U.S. registered trademarks of JMJ Associates, LLP. 4 Key Challenges

14. © 2006-2009 JMJ Associates, LLP. All Rights Reserved. | v063009 | Included content contains trademarks and U.S. registered trademarks of JMJ Associates, LLP. 4 Key Challenges 1. Sufficient awareness of risk Keep the bear real (bear or rabbit?) Mindfulness (antidote to complacency) Does it take a Charlie Morecraft experience? Young workers If not sufficient mindfulness, no need to follow polices and procedures What are we doing to reinforce the proper amount of fear?

15. © 2006-2009 JMJ Associates, LLP. All Rights Reserved. | v063009 | Included content contains trademarks and U.S. registered trademarks of JMJ Associates, LLP. 4 Key Challenges 2. Paper safety VS real safety Disconnect for many at worker level 2 stories from the basin – is it about the paper or about safe action/going home Culture is, in part, a function of what leaders pay attention to, measure and control on a regular basis (Ed Schein) Reinforced by management – Florida plant manager Airline pilot “checklist” – a different culture

16. © 2006-2009 JMJ Associates, LLP. All Rights Reserved. | v063009 | Included content contains trademarks and U.S. registered trademarks of JMJ Associates, LLP. 4 Key Challenges 3. Relationship with Policies and Procedures = weak in this industry A function of mindfulness?? Cultural strengths = safety disadvantage –Independence –Get the job done Jim Weatherbee: only 2 problems with p/p A different culture and relationship to p/p in military and aviation

17. © 2006-2009 JMJ Associates, LLP. All Rights Reserved. | v063009 | Included content contains trademarks and U.S. registered trademarks of JMJ Associates, LLP. 4 Key Challenges 4. Bottoms-Up Leadership Story Investment at BP San Juan in Safety Excellence Team Contributed to 50% decline in TRIR in 09 Monthly meetings/individual coaching –Related to as leaders –Given tools –Requested to act –Held to account

18. © 2006-2009 JMJ Associates, LLP. All Rights Reserved. | v063009 | Included content contains trademarks and U.S. registered trademarks of JMJ Associates, LLP. What is Needed Now From Us As Leaders? More engagement and less preaching Engagement = a function of conversation Conversation = speaking and listening Get yourself a compelling question and go on a Listening Tour

19. © 2006-2009 JMJ Associates, LLP. All Rights Reserved. | v063009 | Included content contains trademarks and U.S. registered trademarks of JMJ Associates, LLP. Summary 4 Key Challenges 1. Sufficient awareness of risk (Is the bear real?) 2. Paper safety VS real safety 3. Relationship with Policies and Procedures = weak in this industry 4. Bottoms-Up Leadership What is needed: more engagement and less preaching 4. Bottoms-Up Leadership

20. © 2006-2009 JMJ Associates, LLP. All Rights Reserved. | v063009 | Included content contains trademarks and U.S. registered trademarks of JMJ Associates, LLP. What Could I Do? Ask myself – do I have the proper amount of fear or wariness? Have a conversation with a person who I think does not have the proper amount of fear vis a vis safety? Ask (inquire) why? Notice which Key Procedures are related to as “paper safety”. Engage the workforce in a conversation about why workers feel this way.

21. © 2006-2009 JMJ Associates, LLP. All Rights Reserved. | v063009 | Included content contains trademarks and U.S. registered trademarks of JMJ Associates, LLP. What Could I Do? Identify what I am paying attention to with regard to safety. Is it the “paper” or the real thing? Think about Bottoms Up Leadership and how you could institute in your organization.

22. © 2006-2009 JMJ Associates, LLP. All Rights Reserved. | v063009 | Included content contains trademarks and U.S. registered trademarks of JMJ Associates, LLP. Purpose of this Session To stimulate your thinking as a leader for safety such that you: 1) take away one new incite or perspective 2) leave the meeting committed to taking one action that will impact your company’s safety culture Turn to the person next to you and share your 1 take-away and your 1 action.