1. 1 Safety Leadership: Many Returns TEAM 6: Tom, D J, John, Mary, & Vint

2. 2 Project Development Evaluated EHS Issues Prioritized against Corp. Values Safety Leadership and Management Involvement identified as the greatest opportunity for success

3. 3 Objectives Reduced Injury Rates by 80% over the next three years. Realize significant reductions in associated Work Comp costs over the next three years. Improved Morale, Retention and Reduced Employee Complaints

4. 4 EHS Strategy Map Key EHS Opportunities Stakeholder Involvement Learning & Growth Effective Processes Increase Safety Leadership and Management Involvement to EHS as measured by 80% reduction in Injury rates and Work Comp costs over three years. MGR – develop policy & budget by 1/1/05; include ES&H in all Performance Reviews 4/1/05; 100% participation in team, investigation, & training by 4/1/05 By 4/1/05: Start Safety Committee, Initiate Incident Investigation Program, Start Employee feedback team, revise Perf Review to include ESH, Attend Safety Leadership training by 1/1/05 and all ESH training for supervisors & employees by 7/1/05

5. 5 EHS Strategy Map Key EHS Opportunities Stakeholder Involvement Learning & Growth Effective Processes Increase Safety Leadership and Management Involvement to EHS as measured by 80% reduction in Injury rates and Work Comp costs over three years. SUPERVISORS -- include ES&H in all Performance Reviews by 8/1/05; 100% participation in team, investigation, & training; 100% on monthly walkthroughs/inspections by 8/1/05 Monthly Inspection/Walk through process by 8/1/05; Quarterly Permit Review process by 9/1/05 Attend all ESH training for supervisors & employees -- Incident Investigation, JSA/JHA, Safety SOPs, Inspections by 7/1/05

6. 6 EHS Strategy Map Key EHS Opportunities Stakeholder Involvement Learning & Growth Effective Processes Increase Safety Leadership and Management Involvement to EHS as measured by 80% reduction in Injury rates and Work Comp costs over three years. EMPLOYEE – 100% participation in teams, investigation, & training by 8/1/05 Start Feedback Team & Suggestion program by 7/1/04 Attend all ESH training for supervisors & employees by 7/1/05

7. 7 EHS Strategy Map Key EHS Opportunities Stakeholder Involvement Learning & Growth Effective Processes Increase Safety Leadership and Management Involvement to EHS as measured by 80% reduction in Injury rates and Work Comp costs over three years. ESH Implement Performance Monitoring System; Initiate Tracking system for all ESH meetings, inspections, reviews, & suggestions by 8/1/05, Implement training by 1/1/05 Attend Safety Leadership training and all ESH training for supervisors & employees by 4/1/05

8. 8 Project Benefits TANGIBLE Decreased Workers Compensation Costs Injury Rates Reduced INTANGIBLE Improved Culture Values Alignment Morale Productivity Reduced Labor costs

9. 9 Estimated Project Costs

10. 10 Estimated Savings

11. 11 Financial Analysis Present Value of Savings: PV(Savings) $228,621 Net Present Value of Savings: NPV(Savings) $159,201 Payback Period: 10 months ROI (3 Years): 229 % net Internal Rate of Return (3 Years): 3555 %

12. 12 Conclusions and Recommendations Management Leadership and Involvement is an excellent investment It really only requires participation and engagement by the Management Team The Intangible and Tangible Returns are hard to match. NEXT STEP: Approve the request and we’ll start the training!