1. 1 MURPHY OIL USA, INC. Murphy Oil USA Safe Systems of Working Permit To Work System (SHERS-11.2) MOUSA-11/2011

2. 2 MURPHY OIL USA, INC. Why Do We Need A Permit To Work? Because uncontrolled work activities eventually lead to uncontrollable emergencies

3. 3 MURPHY OIL USA, INC. What Is A Permit To Work System? A permit to work system :-  Is a formal recorded process used to control work identified as potentially hazardous  Is a means of communication between the person authorized to issue the permit and those carrying out the potentially hazardous work  Ensures that proper consideration is given to the hazard associated to a particular job or simultaneous work activities at a site  Defines the process to be followed to control specific types of work (non-routine) that may:- o Conflict with other work activities by introducing hazards not previously identified o Present hazards or high risk to personnel o Compromise the integrity of the facility o Pose environmental risks

4. 4 MURPHY OIL USA, INC. When Is A Permit Required? The use of a permit to control work activities should be considered:-  When it is intended to carry out work which may adversely affect the safety of personnel, plant or the environment  When the work is identified as involving significant hazards, for example welding, tank cleaning, shot-blasting, tank lining, oil water separator inspections  When two or more individuals or groups need to coordinate activities to complete the task safely  When there is a transfer of work and responsibilities from one group to another It should not be:-  Applied to all activities, this will reduce the overall effectiveness of the permit system  Applied to control site visitors or routine maintenance tasks in non-hazardous areas

5. 5 MURPHY OIL USA, INC. Types of Work Permit The permit to work system will include three types of permit:-  Safe Work (Cold Work / Low Energy)  Hot Work  Confined Space Entry Safe Work (Cold Work / Low Energy)  Any work or use of equipment that will not create a potential ignition source, may present a hazard to personnel or the environment and does not have a human respiration risk due to compromised atmospheric conditions

6. 6 MURPHY OIL USA, INC. Types of Work Permit Hot Work  Any work or use of equipment that could produce a spark or will generate sufficient heat to ignite combustible/flammable materials, liquids or vapors

7. 7 MURPHY OIL USA, INC. Definition Confined Space Confined Space can be defined as follows:-  A space that is large enough and so configured that personnel can bodily enter  Has limited or restricted means of entry or exit  Is not designed for continuous occupancy  Has a potential to contain a hazard atmosphere  Contains material that has the potential to engulf an entrant

8. 8 MURPHY OIL USA, INC. Permit To Work Forms Safe Work Hot Work Confined Space Entry

9. 9 MURPHY OIL USA, INC. Essential Features Essential features of a permit to work system are :-  Clear identification of those who may authorize particular jobs  Training in the preparation, issue, use and closure of permits  Clear identification of the types of work considered hazardous  Clear identification of task, hazard assessment & permitted duration of task  Monitoring to verify and validate the effectiveness of the system Why monitor?  To maintain the effectiveness of the permit process  To identify opportunities for improvements  Demonstrate management commitment  Maintain a safe work environment

10. 10 MURPHY OIL USA, INC. Objectives The key objectives of a permit to work system are to ensure:-  Proper communication of planned work between all parties  That the work scope & mitigation measures are clearly defined, specifically:- o Exact identity, nature and extent of the job o Hazards identified o Mitigation measures required o Limitations on the extent of the work o Times the work can be carried out o Safe isolations from potential risks  Proper authorization of non-routine work

11. 11 MURPHY OIL USA, INC. Work Permits The various types of work permits will be:-  Color coded  Written in English  Have a unique reference number  Be produced in duplicate  Have spaces for the following information to be entered:- o The work location o The equipment and materials to be used o The work to be carried out o The energy isolations required o The hazard mitigation measures to be implemented, including PPE o The activities carried out to ensure mitigation measures have been implemented o Any tests carried out to verify that the work can be performed safely

12. 12 MURPHY OIL USA, INC. Responsibilities – Permit Requestor The person requesting a work permit responsible for ensuring that:-  The work permit is requested in a timely manner  The scope of the proposed work, the equipment to be used, the associated hazards, the proposed hazard mitigation measures and the identified safe method of working are defined  The workplace is prepared for inspection prior to authorization of the permit  The safe method of working is communicated to those performing the proposed works  The workplace is regularly inspected to ensure that activities are being performed safely  The workplace is inspected prior to signing off the permit to ensure that:- o The scope of work has been effectively achieved o The plant, equipment and/or work area has been left in a safe condition

13. 13 MURPHY OIL USA, INC. Responsibilities – Contractor Management If work is to be carried out by contractor personnel, that company’s site representative will ensure that -  Those employees assigned to carry out the work:- o Have received site safety orientation training o Understand how the permit to work system operates o Understand their specific responsibilities within the permit system o Are trained and competent to perform the tasks assigned to them  Plant and/or equipment supplied to perform the tasks are maintained, certified as necessary and remain fit for purpose during the duration of the work

14. 14 MURPHY OIL USA, INC. Responsibilities – Permit Issuer The Permit Issuer (Trained Murphy employee) will ensure that:-  The scope & nature of the work is fully understood  The hazards associated to the work are identified  The identified hazard mitigation measures are implemented prior to the work starting  Permits issued for other tasks that may interact are cross referenced  The equipment & workplace is adequately prepared prior to authorizing the permit  A safe method of work is reviewed & understood by those performing the work  Any testing, including gas testing, is carried out & recorded prior to permit issue  The plant, equipment and/or work area is inspected prior to signing off the permit  A suitable hand-over is performed at the time of shift change to ensure:- o All ongoing or suspended permits are discussed with the new Permit Issuer

15. 15 MURPHY OIL USA, INC. Responsibilities – Permit Holder The Permit Holder will ensure that:-  They have received instruction in the permit to work system  The people working for them have received training in the permit to work system  They have fully discussed the proposed work with the Permit Issuer  The work party is briefed on scope of the proposed work, the details of the permit & hazard mitigation measures  The plant, equipment and/or work area are prepared & safe to start the proposed work  Safe working practices are adopted for the duration of the assigned work  The control measures are maintained throughout the work activity  The plant, equipment and/or work area is inspected prior to permit sign-off  On completion or suspension of work, the site is left in a safe condition

16. 16 MURPHY OIL USA, INC. Responsibilities – Those Carrying Out The Work Those carrying out the work will ensure that:-  They have received safety orientation training & understanding the permit system  They do not start work until an appropriate work permit has been properly issued  They receive a briefing from the Permit Holder on the task & the precautions to be taken  They follow the conditions specified on the permit  When they stop work, the site & any equipment is left in a safe condition  If in any doubt, or if circumstances change, they stop work & consult the Permit Issuer

17. 17 MURPHY OIL USA, INC. Permit Request The Permit Requestor / Holder will ensure that these sections of the work permit are completed prior to the form being presented to the Permit Issuer:-  Company (Including Contractor Name, where applicable)  Area / Unit (Where is the work to take place)  Permit Holder (Record name)  Equipment # (Record equipment number, where applicable)  # Persons (Identify number assigned to work task)  Work Order # (Record WO number, where applicable)  Scope of Proposed Task (Detail work to be done) For significant work the Permit Requestor will provide the Permit Issuer with a:-  Safe method of working  Job Safety Analysis

18. 18 MURPHY OIL USA, INC. Pre-Task Hazard Assessment Prior to issuing a work permit a task and workplace task hazard assessment will be carried out at the work site The assessment will be carried out by the Permit Issuer & Permit Requestor / Holder The purpose of the inspection will be carried out to identify:-  All potential hazards associated with the proposed work  The control measures necessary to ensure the work can be performed safely

19. 19 MURPHY OIL USA, INC. What Hazards Do You See? Hazards Include  Poor Access & Egress  Hot Surfaces  Sharp Edges  Steam  Combustible Deposits  Flammable Vapor  Toxic Vapor  Slippery Surfaces  Uneven Surfaces  Noise  Manual Handling  Confined Space  Work at Height  Activities of Others  Overhead Obstructions  Trapped Pressure

20. 20 MURPHY OIL USA, INC. Hazard Control Review The Permit Issuer and Permit Requestor / Holder (person supervising the work) will discuss, at the designated work site:-  The identified hazards  The necessary control measures  Any additional information to ensure mutual understanding & agreement of the actions required to perform the task safely

21. 21 MURPHY OIL USA, INC. Preparing The Work Site The Permit Issuer and Permit Requestor / Holder will ensure that all steps necessary to prepare the work site for the proposed work are have been taken, for example:-  Communicating the scope of work to all relevant parties  Physical isolation of plant and/or equipment (Energy isolations)  Draining, purging, venting, or flushing of equipment  Barricading the work site (To prevent unauthorized access)  Gas testing for flammable & toxic vapors (If identified as potential hazard) Typically Murphy operations or maintenance personnel will prepare the work site If those assigned to perform the permit required work are to prepare the work site a separate permit for site preparation must be raised

22. 22 MURPHY OIL USA, INC. How Would You Prepare This Site Strainer Removal? Preparation  Removal of hoses  Removal of trip hazards  Removal of platform  Temporary scaffold  Isolation of inlet  Isolation of outlet  Isolation of pump  Isolation of steam  Draining of strainer  Secondary containment  Depressurize strainer  Barrier work area  Mechanical lifting aid  Certificate review

23. 23 MURPHY OIL USA, INC. Gas Testing At The Work Site Gas testing for oxygen and/or flammable or toxic vapors will be carried out by a trained and competent person The competent person will carry out the range of gas tests required to ensure that the work site and surrounding area is safe to allow the proposed work to proceed The range of tests required will be determined by:-  The scope of work  The work location  The type of permit being issued Permit Issuer will determine any requirement for continuous gas monitoring during the works Any hot work that is to be performed inside a confined space will require continuous monitoring for flammable vapors within the confined space

24. 24 MURPHY OIL USA, INC. Gas Testing – Hot Work The following conditions apply to gas testing prior to hot work:-  Gas testing for Oxygen & Flammable Vapor (LEL) will be performed o Oxygen testing is required as low oxygen readings can adversely affect the flammable vapor test  Work will not be authorized to start if:- o The flammable vapor reading is greater than 0% LEL o There are residues of flammable liquids present  If the flammable vapor reading is >0% LEL the source must be determined & remedial actions taken to eliminate it prior to work commencing  If a flammable vapor of >0% LEL is detected at any time during the work all hot work must stop immediately  The permit can only be re-issued once the source of the vapors has been identified, action taken to eliminate the source and gas testing carried out to confirm 0% LEL

25. 25 MURPHY OIL USA, INC. Gas Testing – Confined Space Entry The following conditions apply to gas testing prior to confined space entry:-  Gas testing for Oxygen & Flammable Vapor (LEL) & toxic vapors will be performed o The range of toxic vapors to be tested for will be determined by the potential hazards created by the function of the confined space Table 1 – Confined Space Entry Requirement TestsOxygenLELH2SBenzeneTemppH Safe to Enter Confined Space19.5 to 23%0%<10ppm0ppm<37.8C6 to 8 Respiratory Protection Required<19.5%<10%10 – 100ppm0.5 – 500ppm37.8 - 43.3CN/A No Entry Permitted 23%>10%>100ppm>500ppm>43.3C 8 Entry into a confined space known to contain an inert atmosphere (nitrogen blanketed) is only allowed:-  If entry is to be carried out by specialist contractors  Specialist equipment is used  Entry is authorized by senior management

26. 26 MURPHY OIL USA, INC. Pre-Task Safety Briefing Following issue of the work permit the Permit Holder will ensure that a Pre-Task Safety Briefing is carried out with those who will be carrying out the work The purpose of the safety brief is to ensure mutual understanding of the:-  Scope of work  Hazard mitigation measures  Work permit conditions & control measures  Safe work practices to be followed  Site evacuation procedures If additional workers arrive on site after the initial safety brief the Permit Holder must ensure that they are given a task safety brief before starting work

27. 27 MURPHY OIL USA, INC. Start Of Work The Permit Holder will ensure that work starts promptly after the issue of the work permit This is to ensure that conditions do not change within work area prior to work starting The period allowed between permit issue and work starting is:-  Safe Work Permit60 minutes  Hot Work Permit30 minutes  Confined Space Entry Permit30 minutes If work has not commenced within the specified time period it cannot begin and the permit must be return to the Permit Issuer for re-validation

28. 28 MURPHY OIL USA, INC. Permit Duration & Extension A work permit can be issued for a maximum period of twelve (12) hours providing the Permit Issuer remains on site for that period The permit can be extended for a maximum of twelve (12) hours providing the Permit Issuer remains on site for that period Whenever a work permit is extended the Permit Issuer will ensure that the following expectations are effectively met:-  Attend the work site, with the Permit Holder & carry out an inspection to confirm:- o All restrictions conditions and controls listed on the work permit remain the same o The performance of those performing the work tasks meets expectations o Any gas testing requirements are carried out and recorded o Both copies of the work permit are updated

29. 29 MURPHY OIL USA, INC. Conditions For Stoppage Of Work Work must be stopped and the work permit returned to the Permit Issuer (Murphy) under any of the following conditions:-  Any safety concerns  Activation of emergency alarm  Incident or near miss at the work site  Fire-Watch leaves the work site  Safety-Watch leaves the work-site  Greater than 0% LEL detected at the work site  Gas test equipment failure  Expiration time reached

30. 30 MURPHY OIL USA, INC. Permit Cancellation The work permit will be cancelled under the following conditions:-  Change of entire work crew  Change of Permit Holder  Change in scope of work  Shift change  Change in work site conditions  Injury, incident or near miss at the work site  Major incident leading to site wide evacuation  Withdrawal of permit by Permit Issuer  Withdrawal of permits by facility employee  Work completion

31. 31 MURPHY OIL USA, INC. Permit Expiry When the work permit expires the Permit Holder will ensure that:-  The work is either completed and/or has been left in a safe condition  Housekeeping expectations have been effectively met The Permit Issuer and Permit Holder will carry out a joint inspection of the work and associated work site to ensure that:-  The work site has been left in a clean and safe condition  If the work is completed it fully meets the original scope and/or intent  If the work has not been completed the work area / equipment is left in a safe condition If the above conditions are met the Permit Issuer will:-  Sign off on both copies of the work permit  Forward the work permit to the EHS Manager for retention purposes

32. 32 MURPHY OIL USA, INC. Permit Retention Completed permits and any supporting documents are retained for a minimum of period of 13 months In the event that an incident occurs at the workplace while the work permit was in effect, the permit and associated documents will be retained with the incident report for an indefinite period The EHS Manager will ensure that all Confined Space Entry permits are reviewed within a 12 month period following expiry of the permit to ensure:-  Compliance with work permit system expectation  Permits are fully & accurately completed  Permits have been signed-off correctly  Opportunities for improvements are identified

33. 33 MURPHY OIL USA, INC. Additional Requirements – Hot Work Permit Prior to the issuing a hot work permit additional safeguards will be required, these include but are not limited to, the:-  Physical isolation of plant and equipment  Sealing of all drains within 100 feet of the work site  Purging / flushing / draining / venting of equipment  Postponement / stopping of product movements within the work location  Placement of fire-fighting equipment  Provision of a trained and adequately briefed Fire-Watch at the work site  Performance of an appropriate range of gas tests

34. 34 MURPHY OIL USA, INC. Hot Work Permit - Fire-Watch Whenever hot work takes place a Fire-Watch will be assigned to monitor the work activities and maintain a safe working environment The Fire-Watch must be trained and able to fulfill the duties associated to the role competently. They must be aware of the:-  Planned work and associated hazards  Control measures as specified in the permit to work and any associated documents  Procedure for sounding the alarm in the event of an emergency  Evacuation routes to be used in the event of a fire occurring at the work site  Communication protocol between work site and control room  Gas testing required prior to and during the works  Safety hazards associated to fire-watch duties  PPE required to perform fire-watch duties safely  Correct selection and use of fire extinguishers  Site safety plan

35. 35 MURPHY OIL USA, INC. Fire-Watch Duties The Fire-Watch must be able to perform the following key duties of the role:-  Verify that gas testing has been carried out and the area is safe to perform hot work  Inspect the work site prior to the work starting to ensure that:- o Potential risks, including combustibles are removed or covered o Any nearby openings are sealed or covered with fire safe materials o Hazard mitigation measures listed on the permit are implemented  Ensure that fire-fighting equipment is readily available and serviceable  Maintain a diligent watch on activities likely to create an ignition source o It is not permitted for the fire-watch to carry out any other duties, they must continuously monitor the work taking place  Stop the hot work should a safety hazard be identified  Sound the fire alarm in the event of a fire  Maintain a watch at the work site for at least 30 minutes after the hot work has ceased for signs of combustion

36. 36 MURPHY OIL USA, INC. Confined Space A confined space entry permit is required whenever entry into a space that meets any of the following criteria :-  Is large enough & so configured that somebody can bodily enter  Has limited or restricted means of entry of exit  Is not designed for continuous human occupancy  Has poor ventilation & contains, or has the potential to contain, a hazardous atmosphere  Contains a material that has the potential for engulfing the entrant  Has an internal configuration that might cause an entrant to be trapped or asphyxiated o By inwardly converging walls or by a floor that slopes downward & tapers to a smaller cross section  Contains any other recognized serious safety or health hazards

37. 37 MURPHY OIL USA, INC. Types of Confined Space Examples of permit required confined spaces include:-  Any type of vessel, column or reactor  Stationary of portable tanks  Sumps or pits at a depth of 5 feet or greater  External floating roofs if at a depth of 5 feet or greater  Accessing the top of an internal floating roof  Excavations at a depth of 5 feet or greater  Pipeline if large enough to allow a person to place their head inside A Safe Work or Hot Work permit will be issued together with a Confined Space Entry permit to control the work activities in the confined space

38. 38 MURPHY OIL USA, INC. Preparation Prior To Entry Additional preparation for confined space entry will include, as applicable:-  Purging / flushing / draining / venting of the confined space and associated equipment  Physical isolation of the confined space and associated plant /equipment  Postponement / stopping of product movements within the work location  Arranging for continuous ventilation once entry is obtained  Provision of appropriate measures to handle potential hazardous waste  Mitigation of product movement within the same bund area  Gas Testing, i.e. Oxygen, Flammable & Toxic Vapors  Sealing of all drains within 100 feet of the work site  Selection and placement of rescue equipment  Provision of suitable means of access and egress  Provision of low voltage or air driven lighting  System de-pressurization  Barricading of the work site

39. 39 MURPHY OIL USA, INC. Role Of The Entry-Watch Whenever confined space entry takes place an Entry-Watch will be assigned:-  To monitor the activities taking place within the confined space  Maintain a safe working environment The Entry-Watch must be appropriately trained and able to fulfill these duties:-  Maintain contact / communication with those inside the confined space at all times  Continually observer those working inside the confined space, the work in progress & the surrounding area for safety concerns  Alert those inside the confined space to any danger in or around the confined space and to call for assistance immediately  Ensure there is an effective means of communication to raise the alarm in the event of an emergency  Ensure that all gas testing requirements have been effectively met  Ensure that all control measures as specified in the permit to work and associated forms are effectively maintained

40. 40 MURPHY OIL USA, INC. Entry-Watch The Entry-Watch must also be aware of:-  The correct / proper use of a fire extinguisher & other safety equipment if needed  The requirements of the permit to work & confined space entry forms  All control measures & how they are effectively maintained  How to act in the event that a person within the confined space has a safety problem  How to shutdown equipment in the event of an emergency  Who is providing emergency rescue o What rescue equipment is close by o Where it is located o Who is available to provide assistance when using it  The procedures for sounding the alarm in the event of an emergency  The communication protocol between work site and control room

41. 41 MURPHY OIL USA, INC. Exercise One Using the following information produce a Safe Work Permit  Scope Of WorkReplace damaged stainless steel hose on Sulfuric acid tote  Equipment To Be UsedHand tools  Other ActivitiesCaustic soda delivery due during proposed work Electrical contractor installing new sulfuric acid pump Ethanol road load-out taking place within 50 feet of work area Connection to sulfuric tote (tote full of acid) Pump system locked out for maintenance Connection to sulfuric off-loading pump

42. 42 MURPHY OIL USA, INC. Exercise Two Using the following information produce a Hot Work Permit  Scope Of WorkFabricate new 4” stainless steel import pipeline to sulfuric acid tank to run from outside off-loading point into production building. No connections into existing plant or equipment to be made  Equipment To Be UsedElectrical welding plant & grinder, diesel generator, hand tools and Portable Scaffold (tank to be top filled)  Other ActivitiesProduction plant will be running normally Electrical contractor installing gauging equipment to sulfuric tank Pump maintenance being carried out on sulfuric off-loading pump Pipe route at height through production plant Sulfuric acid tank within bund New pipe to run at low level from here to off- loading point outside building

43. 43 MURPHY OIL USA, INC. Exercise Three Using the following information produce a Confined Space Entry Permit  Confined SpaceTank 4 (Internal Floating Roof)  Previous ProductEthanol  Connections to Tank8” Import, 8” Export Lines & 4” Line to Tank 3 1” Thermal Relief (x3) & 8” Drain Sump  Electrical EquipmentCommon Use Import Pump & Dedicated Export Pump Tank Temperature Gauge, Radar Gauge & Hi-Hi Alarm  Reason For EntryTank cleaning prior to inspection  Equipment To Be UsedDiesel driven power washer, hand tools (brushes & mops) Portable Scaffold (Wall Washing)  ContractorTank Clean USA  Other ActivitiesTank 3 Adjacent to Tank 4 is being painted (Brush & Rollers) Tank 4 export pump is being serviced Tank 3 Tank 4 Tank 4 Export Pump