Apache Contractor Meeting 2014

1. Apache Contractor Meeting 2014 July 9, 2014

2. Facilities Emergency Muster Session Timeline Cell Phones Apache Introductions Facilities Emergency Muster Session Timeline Cell Phones Apache Introductions opening

3. Management Gulf of Mexico Operations Update • Performance Update • Apache SEMS II Implementation • Contractor Management Updates • Sub-Part O Assessments • Question and Answer Agenda

4. Cory Loegering • Vice President • Gulf of Mexico Region Gulf of Mexico Operations update

5. Steve Daigle • HSE & Regulatory Manager • Apache Gulf of Mexico Region Performance update

6. Apache Deepwater & Gulf of Mexico • Safety Performance Performance Update

7. Performance update

8. Performance update

9. Apache Global • Safety Performance • Includes Contract Workers Performance Update

10. Jeanette Dehn • SEMS Coordinator • Apache Gulf of Mexico Region

11. SEMS II

12. The SEMS II final rule expands, revises, and adds several new requirements to the existing 30 CFR part 250, subpart S, regulations for SEMS. SEMS II was published April 5, 2013 and require operators to be in compliance as of June 4, 2014. One of the purposes for today’s meeting is to communicate the new requirements, changes that Apache has made to meet those new requirements, and new responsibilities of Apache employees and contractors. Overview

13. - Job Safety Analysis Requirements • Introduction of the Ultimate Work Authority • Stop Work Authority • Record Keeping • Employee Participation Plan • - Reporting Unsafe Work Conditions What Has been revised?

14. Outside of sems - What is the one thing required on all apache gulf of Mexico locations?

15. Answer = Fire Retardant Clothing (FRC)

16. What has changed? ALL JOB STEPS must be included AND assessed Environmental hazards/impacts must be assessed (new) 3 Signature Levels required on all JSAs - All members of the work party - Supervisor of the work party - Designated person in charge of the facility (new) JSA – Job safety analysis

17. JSA – Job safety analysis What has changed? contractors) that plan, conduct, or manage work must be trained in hazard recognition & mitigation All personnel (including contractors) that plan, conduct, or manage work must be trained in hazard recognition & mitigation; aka – the JSA process. (new) 5. All JSAs must include Stop Work provisions (new) 6. JSA Form has been updated (new Apache Form)

20. Stop Work Authority will be explained in further detail in later slides.

21. What has changed? Ultimate Work Authority (UWA) is new to SEMS. Requires a single person be designated in charge of the facility at all times UWA = Case by Case, but usually head person in charge of facility or vessel Name or position of UWA should be posted at all times Entire Crew must be informed of who the UWA is at any time, including following transition/handover periods Apache has implemented a UWA Agreement document that is available via Safe Work Practices and SEMS Portal (https://semsportal.apachecorp.com) UWA – Ultimate Work Authority

23. What has changed? New to SEMS Rule (but is not new to Apache) Complicated by UWA requirement May be initiated prior to or during a job All Personnel (employee, contractors, visitors) are obliged to exercise SWA. If exercised, all personnel must comply immediately Reprisal or retaliation for those exercising SWA is strictly prohibited SWA must be discussed at all safety meetings AND be included on all JSAs Revised Apache SWA Program has 2 types of SWA: - Low Risk (minor issues) & High Risk (Imminent Danger) 8. ALL SWAs must be documented on the SEMS Portal SWA – STOP Work Authority

24. Short overview DWRAP Overview

25. Stop Work Authority

26. “It’s easier to explain why you stopped a job, than explain to a family why you didn’t.” -Blu Hartley

27. Record Keeping What has changed? JSAs must be maintained on the facility for 30 days (no change, still maintain in DWRAPS) - These records must include the designated person in charge of the facility signature 2. Stop Work occurrences must be maintained/accessible on the facility for 30 days. This will be recorded in DWRAPS. (new) 3. Employee Participation Plan (EPP) records must be maintained for 2-years. This will be recorded in Apache audit files. (new)

28. Who can you contact for SEMS support? ALWAYS feel free to contact Jeanette Dehn regarding any SEMS questions that you may have. jeanette.dehn@apachecorp.com Office - 281-302-2541 https://semsportal.apachecorp.com

29. https://semsportal.apachecorp.com

30. What has changed? EPP is another new change to the SEMS regulation EPP regulations require all employees – offshore and onshore – to participate in SEMS program development and changes All employees must be provided access to the SEMS Program EPP – Employment Participation Plan Apache receives safety and environmental concerns along with contractor and employee input on the SEMS program through the SEMS portal report link. This allows for participation and suggested improvements with our SEMS program.

31. What has changed? All personnel (employee and contractor) must be provided with contact information to confidentially report unsafe work conditions, incidents, or violations. (new) The BSEE and Apache Hotline information must be prominently posted at all Facilities. Apache’s Person-In-Charge is responsible for ensuring these posters are displayed at all times. (new) Reporting unsafe Work Conditions

34. AIM for ZERO is intended to help establish and maintain a sustainable culture where everyone returns home safely at the end of the day (or work shift) and conducts business with no impact to the environment. Apache AIM 4 Zero Program Overview

35. The objectives for Aim for ZERO are: • Encourage employees and contractors to utilize the AIM for ZERO program • to suggest ideas along with solutions to improve EH&S performance. • Engage employees and contractors to own the responsibility of their workplace and environment. • Demonstrate the importance of safe and environmentally responsible operations with actions to implement ideas with the potential to improve EH&S performance. • Help achieve “Operational Excellence” by improving safety and environmental performance. • Increase awareness and communication concerning safety and environmental • issues. • Promote positive safety and environmental behavior and leadership. Aim for Zero Electronic Form

36. Tina Ghiorse • Contractor Management Specialist • Apache Gulf of Mexico Region

37. Apache requires all contractors who go offshore for Apache to have a current ISNetworld subscription. Contractors with an A or B Dashboard Grade are considered preferred contractors. • Secondly, Apache requires all contractors to be enrolled in the DISA drug testing consortium. NOTE: DISA account must be linked to ISNetworld account. Contractor MANAGEMENT Overview

38. All contractors that will perform work offshore for Apache’s Gulf of Mexico Region must participate in these programs. • NOTE: Any contractor that provides “ONLY” shore-based services is asked to contact Apache to discuss their scope of work. Contractor MANAGEMENT Overview

39. Apache requires that all subcontractors meet the same requirements as that of the direct contractor (Except for the necessity of a MSA/Contract with Apache or executing the SEMS Agreement and Expectations letter). • Subcontractors must be linked to Apache’s subcontractor ISN account to facilitate the training verification process at heliports or shore-bases. subcontractors

40. Apache utilizes ISNetworld to assist with monitoring and evaluating offshore contractors and their personnel on two (2) separate levels. 1. Company Level Evaluations 2. Employee Level Evaluations Contractor MANAGEMENT update

41. What has changed? • ISN I.D. cards are required when checking in at any Apache shore-base or heliport. • Live at PHI heliport in Houma and Fourchon 3/2013 • Live at Bristow heliport in Galliano 12/2013 • Live at shore-base in Fourchon 3/2014 Contractor MANAGEMENT

42. When confirming compliance, what is the one Apache requirement most contractors fail to double check? POP QUIZ

43. DISA Compliance All DISA Questions – NejatDahmani 281-726-3647 Answer:

45. Preheat, Inc. – 100% Petroleum Co-Ordinators, Inc. – 100% Laborde Marine – 97% M-I, LLC – 97% Seacor Marine – 96% Baker Hughes US Gulf Coast – 95% Contractor recognition

46. What has changed? Contractor Training

47. Apache Corporation will continue to conduct Contractor Audits to verify information entered into ISNetworld/TQ. • Apache intends to audit at a minimum, 10% of our high risk contractors. • Apache will continue to conduct “Document Drills”. Contractor audits

48. Future Change • All contractors for both regions (Shelf & Deepwater) will be combined into one ISN account titled “Gulf of Mexico Region”. • Anticipate 8/1/2014 to begin transition. Contractor MANAGEMENT

49. if you have any questions please ConTACT Tina Ghiorse tina.ghiorse@apachecorp.com 713-296-7438

50. Barbara Lopez • HSE Specialist • Apache Gulf of Mexico Region