Presentation on theme: "1 NYSE: NSH Curt Anastasio - CEO & President February 11, 2009 COVER SLIDE Looking Beyond Zero – When Zero Is Not Good Enough April 4, 2013."— Presentation transcript:
1 NYSE: NSH Curt Anastasio - CEO & President February 11, 2009 COVER SLIDE Looking Beyond Zero – When Zero Is Not Good Enough April 4, 2013
2 t t NuStar Overview t t Looking Beyond Zero – When Zero Isn’t Good Enough t t Safety Performance Measurement and Goals t t Culture, Leadership & Employee Involvement t t Employee Comments t t Closing Remarks t t Question & Answers Agenda
3 t t One of the largest independent petroleum pipeline and terminal operators in the U.S. 8,417 miles of crude oil and refined product pipelines 82 terminal facilities and four crude oil storage facilities Over 90 million barrels of storage capacity t t One of the largest asphalt refiners and marketers in the U.S. Two asphalt refineries capable of processing 104,000 bpd of crude oil NuStar Overview
4 t Employees come first Take care of the employees – they will take care of the unitholders and communities No layoffs Best pay & benefits in the industry All-employee bonus Great employee programs Recognition programs Wellness programs Employee events Regular roundtable meetings with executive management Helps attract and retain industry’s best workforce Culture is the Key to NuStar’s Success!
t t NuStar prides itself on a strong safety and environmental commitment Received many national safety honors over the last several years with our TRIR and LTIR far better than industry averages Presented with the International Liquid Terminal Association’s Platinum Safety Award – the Highest Safety Award in the Terminal Industry Continuous Improvement – Health, Safety & Environmental NuStar Injury Incident Frequency Rates TRIR – Total Recordable Incidents Rate LTIR – Lost Time Incidents Rate TRIR – Total Recordable Incidents Rate LTIR – Lost Time Incidents Rate 6 No LTIR Incidents
NuStar’s Transformation t Massive transformation since acquisition in 2005 Cultural shift from production to employee safety Establishment of clear safety expectations, which take priority over production Employee and leadership collective engagement Upgrade and modernization of the facilities Look at ways to utilize Engineering Controls Consolidate where appropriate – Ask employees for their input Utilize technology where appropriate to eliminate hazards Installation of modern fall protection on truck and rail handling facilities Prioritize action items and allocate resources TRIR has gone from Sixty to Zero! 8
9 Looking Beyond Zero t t Looking Beyond Zero – When Zero Is Not Good Enough t t Common reportable safety statistics are our universal language, sets minimum for performance measurement LTIR TRIR DART t t Reaching Zero in major statistics Positive internal and external recognition Have we reached optimal safety performance? t t “Zero” in major statistics isn’t good enough….. Zero incidents is the safety goal but to be great you need to look beyond zero!
10 Safety Performance Measurement t t How you measure performance and set goals may limit opportunity t t How do you set the “Safety Performance Bar”? Major safety statistics, number of non-recordable incidents, near misses? t t We must look past recordability when at “Zero” What do you consider a Near Miss? An Incident? When do you employ your tools? t t Proactive safety behaviors eliminate incidents Recognize potential hazard and eliminate before an incident occurs
11 Creating a Safety Culture t t Prior to acquisition, culture focused on production “Move the juice” was motto, even if meant taking risks Minimal formal safety training and equipment Extensive deferred maintenance Employee concerns not heard No community identification or involvement t t NuStar culture focused on employee Take care of the employee – they will take care of the unitholders and the community Safety – the most important way of taking care of employees – it truly places employees first!
12 Start with Leadership t t Safety – Core Value of Leadership All incidents are preventable Clarify safety expectation and maintain accountability at all levels Field presence and demonstration – Walk your talk! Create atmosphere for open discussion – Create trust Not alone, share with each other
13 Start with Leadership t t Safety – Core Value of Leadership Applaud proactive efforts, report extensively when reactive Encourage and reward employee involvement (listen to your people and react appropriately – follow up!) Begin every meeting with safety discussion Consistency in message and actions
14 Getting Employees Involved t t Clarify expectations and empower employees Not OK to have injuries Internalize hazard recognition behaviors Expectation is to stop and talk Communicate effectively t t Create opportunities to listen Toolbox meetings Roundtables – formal and informal Field discussion
15 Getting Employees Involved t t Employee driven safety committees Only effective if real hazards are identified – and resolved May have to customize per site t t Incident investigations Employees participate All incidents must be investigated Identify the rootcause! Fix it! t t Stand downs Per event stand downs – region and company wide Weekly ‘Stand Down’ meetings, produced and hosted by all
16 Providing the Safety Tools t t Expand classroom and field based training Relevant, interactive exercises and demonstration Minimize computer based training t t 16 Hour Hazwoper t t Critical Life Skills Training Job Safety Analysis PSM / MOC Permitting, LOTO Line Breaks Pre Startup Review t t Site specific training Respiratory protection H2S and rescue
Employee Comments t Company cares about us t We’re proud of what we do t People listen and respond t Not afraid of change t Focus is on doing the job safely, time is not #1 now t Help each other as opposed to every man for himself t We’ve installed right equipment and now have tools to do the job t Comments not always positive 17
Closing Remarks t Leadership and employees must be collectively engaged and work together t You must be consistent t Adopt a proactive continuous improvement philosophy and develop processes and tools to support t Recognize that what goals and metrics you use will influence ability to reach “Zero” incidents t John.roller@NuStarEnergy.com 18
19 NYSE: NSH Curt Anastasio - CEO & President February 11, 2009 COVER SLIDE QUESTIONS & ANSWERS