2. 2005 CPI CONFERENCE “Leadership of Tomorrow – Bridging the Gap” Atlantic LNG Trinidad Train 4 Project Benchmark Subcontractor Safety Performance Through Leadership and Ownership Presented by Tom Hill DaCosta Kirton Geoff Cislo BECHTEL INTERNATIONAL INC. CASE STUDY PRE - 1996PRESENT

3. 2005 CPI CONFERENCE “Leadership of Tomorrow – Bridging the Gap” OBJECTIVES 1. Agree that world class Safety Performance is possible in countries that do not have world class safety regulations 2. Validate the importance of strong leadership skills in implementing a zero accident program 3. It is possible to overcome cultural / social stereotypes that can negatively affect Safety Performance

4. 2005 CPI CONFERENCE “Leadership of Tomorrow – Bridging the Gap” 4. Concur that continuous Safety improvement requires management /supervision to be “on the field" making it happen not in the stands cheering 5. You can implement a People Based Safety program that works, in a culture with no previous experienceOBJECTIVES

5. 2005 CPI CONFERENCE “Leadership of Tomorrow – Bridging the Gap” TRINIDAD & TOBAGO  BACKGROUND - British control in the 19 th century. - Independence in 1962. - One of the most prosperous in the Caribbean thanks largely to petroleum and natural gas production and processing. - Located in the Caribbean between the Caribbean Sea and the North Atlantic Ocean and is northeast of Venezuela.

6. 2005 CPI CONFERENCE “Leadership of Tomorrow – Bridging the Gap” TRINIDAD & TOBAGO -It covers a total area of 5128 sq km and is slightly smaller than Delaware. -590,000 Trinbagonians make up the Labour force - Trinidad & Tobago has a population of 1,275,700 persons:  40.3% consist of East Indian  39.5% consist of of African  18.4% consist of a Mixed origin  0.6% consist of Caucasian  1.2% consist of Chinese and other races.

7. 2005 CPI CONFERENCE “Leadership of Tomorrow – Bridging the Gap” Safety and Health, Goals and Targets, and Expectations  Project Goals - Achieve ZERO incidents by providing a work environment where Safety Performance is optimized and risks are managed to prevent accidents during plant Construction and Operation.  MEETING / EXCEEDING CUSTOMER EXPECTATIONS VIDEO SAFETY & HEALTH: è Achieve zero incidents by providing a work environment where Safety Performance is optimized and risks are managed to prevent accidents during Plant Construction and Operation. LNG PRODUCTION: è Meet or exceed Trinidad Train 4 Project performance guarantees and availability. SCHEDULE: è Achieve takeover of the facilities on or before the schedule completion : è Train 4TBD è Tank 4TBD è Obtain full commitment from all contractor personnel, subcontractors and project team. COST: è Reduce Project Costs for all Stakeholders. QUALITY: è Design, engineer, procure, construct, commission and bring into operation an LNG plant that meets or exceeds project requirements and industry standards that will produce LNG safely and cost effectively throughout the design life of the plant. WORKING RELATIONSHIPS: è Create and maintain mutual relationships characterized by open communication, trust, honesty and commitment to shared goals. ENVIRONMENTAL: è Design, construct and operate a plant in conformance with current Government of Trinidad & Tobago standards and international environmental guidelines and practices consistent with the LNG industry both in Trinidad & Tobago and worldwide. è Establish or reinforce environmental policies that make positive social and economic impacts on the surrounding areas. è Secure all permits & licenses from regulating authorities in a timely manner to meet project schedule TRINIDAD TRAIN 4 PROJECT GOALS

8. 2005 CPI CONFERENCE “Leadership of Tomorrow – Bridging the Gap” Safety and Health, Goals and Targets  Project Performance Measurement Values Threshold Value Target Value Stretch Value 1.000.550.25 0.200.100.00 RECORDABLE LTA  Developed by customer and included in contract  Basis for rewarding performance as part of Incentive program  Threshold value = Upper Boundary value that must not be exceeded to earn incentive payment.

9. 2005 CPI CONFERENCE “Leadership of Tomorrow – Bridging the Gap” Safety and Health, Goals and Targets Target Value = Midpoint value required to earn the incentive payment. Stretch Value = Lower Boundary value required to earn the incentive payment. CATEGORYWEIGHT % OSHA RECORDABLE 20 LTA 20 FATALITIES 30 CUSTOMER SATISFACTION 30

10. 2005 CPI CONFERENCE “Leadership of Tomorrow – Bridging the Gap” EXISTING CONDITIONS /FACTORS AFFECTING SAFETY PERFORMANCE  TRINIDAD AND TOBAGO HAS NO CURRENT ES&H REGULATIONS –Proposed 2003 Draft HSE Bill still to be signed.  TRINIDAD AND TOBAGO COST OF ACCIDENTS 1976-1998 –Direct Cost = US$ 25,000,000 (Source: National Insurance Board) –Indirect Cost = US$ 100,000,000 –Total Cost = US$ 125,000,000

11. 2005 CPI CONFERENCE “Leadership of Tomorrow – Bridging the Gap”  MANAGEMENT COMMITMENT - Working Relationship - Resources - Transfer of Technology - Accept Ownership of Safety Process - Incident investigation - Zero Accident Team (HSE Governance Committee) CII ZERO INJURY TECHNIQUES IMPLEMENTED VIDEO WORKING RELATIONSHIPS GOALS: è Create and maintain mutual relationships characterized by open communication, trust, honesty and commitment to shared goals. STRATEGIES: è Conduct a survey (minimum every 3 - 6 months) in Site, Houston, Port of Spain and key interfaces. l If survey result less than 85%, conduct a follow up teambuilding session. l If survey result greater than 85%, have a team celebration. è Provide Bechtel/ALNG/ Phillips Leadership Training to assist in developing a high performance team. TARGETS: è Survey results: Threshold 75% ; Target 85% ; Stretch 100%

12. 2005 CPI CONFERENCE “Leadership of Tomorrow – Bridging the Gap”  RISK REDUCTION METHOD - Pre-project and Pre-planning - Training and Education - Accident-Incident Management - Drug Alcohol Program - People Based Safety - Audits / Inspections CII ZERO INJURY TECHNIQUES IMPLEMENTED VIDEO SAFETY & HEALTH GOAL: è Achieve zero incidents by providing a work environment where Safety Performance is optimized and risks are managed to prevent accidents during Plant Construction and Operation. STRATEGIES: è Implement an effective behaviour based Safety and Health Program. è Fully comply with Atlantic LNG Safety and Health requirements. è Raise the level of Safety Awareness. è Control exposure to risks. è Increase management involvement in the safety process. è Perform Quarterly Safety & Health Management Audits. è Conduct Weekly Safety Inspections/Assessment. è Provide New Hire Orientation for 100% of the workforce. è Provide Job Safety Analysis training ( 100% of supervisory staff). è Conduct Environmental Awareness training ( 100% of workforce). è Conduct Random Drug Screening ( 1% of workforce). è Conduct Joint Emergency Evacuation/ Exercises ( 1 per Quarter).

13. 2005 CPI CONFERENCE “Leadership of Tomorrow – Bridging the Gap”  RECOGNITION AND REWARDS - Attendance Incentive - Safety Incentive - Fringe Incentive - (S.H.O.T) Safe Habits Observation Team Incentive - Contractor Performance Incentive  SUSTAINABILITY - Customer Satisfaction - Future work CII ZERO INJURY TECHNIQUES IMPLEMENTED

14. 2005 CPI CONFERENCE “Leadership of Tomorrow – Bridging the Gap” Safety Performance Summary 1 st August 2002 – 30 th June 2005 0 10 OSHA Recordables Lost Time Accident (LTA) Lost workdays Days without LTA Manhours without LTA Manhours without OSHA Recordables 0 1059 10,444,057 6,346,342 Start of construction : 1 st August 2002 Manpower on site: 3,300 workers THRESHOLD VALUE TARGET VALUE STRETCH VALUE RESULTS 1.00.550.250.19 0.200.100.000.0 RECORDABLE LTA TRAIN 4

15. 2005 CPI CONFERENCE “Leadership of Tomorrow – Bridging the Gap” Subcontractor Safety Performance (Project to Date ) ContractorJob-hoursNo. OSHA Recordable Incident(s) No. of LTA(s) Recordable Incident Rate LTA Accident Rate Project To Date (PTD) Raghunath Singh698,83130 0.850 Paramount Transport598,72310 0.330 Pres-T-Con327,35010 0.610 Hafeez Karamath (demob) 411,66020 0.190 Damus2,004,47530 0.290 Damus – Fire Water Tank 13,28600 00 B Joy Plumbing77,78300 00 Badrie and Sons(Janitorial) 3,92900 00 Badrie (Water)37,82000 00 Bechtel887,84500 00 CISL (equipment and painting) 334,10900 00 DMC1,256,16700 00 Gordon Winters (demob) 51,50200 00 Insertech92,202 0 00

16. 2005 CPI CONFERENCE “Leadership of Tomorrow – Bridging the Gap” Subcontractor Safety Performance (Project to Date ) ContractorJob-hoursNo. OSHA Recordable Incident(s) No. of LTA(s) Recordable Incident Rate LTA Accident Rate Insulation Trinidad Ltd 86,11900 00 Joseph Badrie & Sons (Special Assignment) 2300 00 Jusamco Pavers165,50800 00 Kentz – OJ’s564,17700 00 Mammoet58,11500 00 Nuovo Pignone2,20500 00 Ratio (demob)101,47100 00 Ramdhansingh210,41000 00 ReadyMix86,12300 00 S & D Construction 332,96400 00 Shade182,85200 00 SIS140,63400 00 Sure Security463,05300 00 Thermodyn8,28700 00 Trinidad Sanitation 16,47200 00 Trintoplan23,02200 00 Westminster Dredging 286,03100 00 Wholesale Electrical Supply 1,85600 00 William Bartholomew 6,14500 00

17. 2005 CPI CONFERENCE “Leadership of Tomorrow – Bridging the Gap” AREA CRAFT (MANUAL) CRAFT SUPER (NON- MANUAL) BECHTEL (NON- MANUAL) CUSTOMER (NON- MANUAL) 3805417913 Project Management Support of Safety Procedures % YES Does Project Management visibly and actively participate in the safety process? 79 89 77 Are supervisors supported by Project Management in their decisions relating to safety? 86879092 Has Project Management's efforts encouraged you to work more safely? 838091 77 Schedule Priority Over Safety Has your Supervisor required you to carry out any job or task that you felt was not safe? 18 630 Do you think schedule takes priority over safety at any time on this project? 44 222723 Personal Commitment to Safety Has your attitude toward safety gotten better since you started working on this Project? 949193 85 Do you think zero accidents are achievable? 77 818992 TRINIDAD TRAIN 4 PROJECT Safety Perception Survey - 7/2004 NO. OF RESPONDERS / GROUP

18. 2005 CPI CONFERENCE “Leadership of Tomorrow – Bridging the Gap” TRINIDAD TRAIN 4 PROJECT Safety Perception Survey - 7/2004 Do you feel this is your safety program? 75767969 Do you think employees are committed to achieving zero accidents? 829179 62 Supervisors Commitment / Support to Safety Process Does your Supervisor regularly discuss safety goals and performance with employees? 8485 73 92 Does your Supervisor show a personal interest in having a safe job? 929193100 Do you think your foreman is committed to achieving zero accidents? 91 7754 Are you encouraged by your supervisor to participate in the site's safety program? 888985100 People Based Safety Increases Safety Awareness Do you think Craft workers observing other Craft workers to provide feedback on safe and risky behaviors makes you more aware of safety? 8889 8177 New Hire Orientation Effective Is the Project new employee safety orientation efficient in preparing you for work on the project? 8883 9677 AREA CRAFT (MANUAL) CRAFT SUPER (NON-MANUAL BECHTEL (NON- MANUAL CUSTOMER (NON- MANUAL NO. OF RESPONDERS / GROUP

19. 2005 CPI CONFERENCE “Leadership of Tomorrow – Bridging the Gap” -Leadership role in ES&H -Positive Working relationships with customers and subcontractors -Work Execution Philosophy: for us (Bechtel) to be successful, we have to make our Subcontractors successful Project Management Team Commitment / Ownership

20. 2005 CPI CONFERENCE “Leadership of Tomorrow – Bridging the Gap” - Mandatory attendance at plan of the day and Tool box meetings - Provide resources and staffing level of one (1 ) Safety Representative / 50 workers minimum - Bechtel, Customer, Subcontractor Weekly Management Safety Walk downs per area - Increased Management attendance / participation via Specially prepared “Monday Management Safety Talk” Project Management Team Commitment / Ownership VIDEO Bechtel International Inc. Atlantic LNG Expansion Projects Job Nos.: 24560 Environmental, Safety & Health Department (4 th July 2005) The Train 4 Project has worked 10,444,057 hours as of 25 th June 2005 without a lost time injury. The last recordable was on the 23 rd May 2005. We have had ten (10) OSHA Recordable to date. Please pay attention to the following:  Permits – Application for work permits must be turned into Bechtel Safety Department at least 24 hrs in advance.  Access – The ISBL is becoming a parking lot for personal cars. Please do not park in the process areas.  Lockout / tag out – Reminder, all persons involved in working on systems must perform visual checks (for tags and locks).  Valves/Cables – Tags on valves and other equipment are being removed, anyone caught removing tags will face disciplinary action.  Color code – The color code for this quarter (July – September) is BLUE

21. 2005 CPI CONFERENCE “Leadership of Tomorrow – Bridging the Gap” - Zero Accident Team is the HSE Governance Committee -M-Mission Statement – A committee of your Company's most Senior Management personnel who meet twice monthly to hold discussions on providing guidance, assistance and leadership to all employees on the jobsite on the Project’s Safety and Health Program Project Management Team Commitment / Ownership

22. RRAISING LEVEL OF SAFETY AWARENESS Naming on Plot Plan and Drawing the Permanent Plant Roads/Streets with a Safety Related Name : -Zero Tolerance -Safe Way blvd -Done Done Road -Hard Hat Lane -Toe Board Alley - Walk the Talk RISK REDUCTION METHODS VIDEO

23. 2005 CPI CONFERENCE “Leadership of Tomorrow – Bridging the Gap” TTRANSFER OF TECHNOLOGY OSHA 10 hours training to craft apprentice Teaching evening classes on / off jobsite Advisor to Emergency Management Authority EX-Chairman of Safety Council of Trinidad and Tobago – South West Chapter Permanent Representative on Non- Governmental Organization Area Hospital RISK REDUCTION METHODS VIDEO

24. 2005 CPI CONFERENCE “Leadership of Tomorrow – Bridging the Gap” ROAD SAFETY AWARENESS RISK REDUCTION METHODS

25. QQUARTERLY INSPECTION ON RIGGING / LIFTING EQUIPMENT - Colour code by quarter -Fluorescent paint/tape -Security tie/seals on heavy use rigging RISK REDUCTION – AUDIT INSPECTIONS 1 st QUARTER 2 nd QUARTER 3 rd QUARTER 4th QUARTER

26. 2005 CPI CONFERENCE “Leadership of Tomorrow – Bridging the Gap” RREDESIGNED ORIENTATION / PROCESS - To provide information on Safety, Quality, Industrial Relations, Timekeeping, Health, security, ISPS, Badging -Increased attention and Interest RISK REDUCTION – TRAINING AND EDUCATION

27. IINNOVATIVE APPROACH ON IMPLEMTATION PROCESS - STAGE 1 – 100% BECHTEL NON MANUAL - STAGE 2 – 50% BECHTEL / SUBCONTRACTOR NONMANUAL - STAGE 3 – 100% CRAFT - CROSS CRAFT CONTROL - PRE-ACCEPTANCE ENVIRONMENT RISK REDUCTION – PEOPLE BASED SAFETY

28. RISK REDUCTION – ACCIDENT MANAGEMENT IINCIDENT INVESTIGATION - Integrated Investigation Team for High /potential Incidents Investigation with Bechtel, customer, subcontractor - Management trained in how to perform Root Cause Analysis from start of project and retrained as construction progressed.

29. TYPEFREQUENCYNO. TESTS POSITIVE RESULTS % RANDOM TESTINGWEEKLY2,8610.9% NIGHT SHIFTWEEKLY5571.5% NEW HIRE CHECKS3 TIMES/WEEK1,0230.8% SPECIAL(MAJOR HOLIDAYS) EVENT16,0860.7% CAUSE(INCIDENTS)EVENT1405% CAUSE (SUSPICIONEVENT728.6% RISK REDUCTION –DRUG AND ALCOHOL PROGRAM

30. 2005 CPI CONFERENCE “Leadership of Tomorrow – Bridging the Gap” ZZERO TOLERANCE ON FALL PROTECTION VIOLATION -100% of Workers required to work in elevated areas must attend and pass the Bechtel 5(five) hour Fall Protection Workshop - Consequences for not tying off -100% Tie-Off Matrix -Vertical Anchor Points using wire rope loops RISK REDUCTION – TRAINING AND EDUCATION

31. EESTABLISH MINIMUM REQUIREMENTS for ES&H PERSONNEL - 5 Years Experience - OSHA 30 hours construction Safety course - Blood Borne Pathogen Training - CPR / FIRST AID (current) RISK REDUCTION – TRAINING AND EDUCATION

32.  CREATED SUPPLY TO MEET DEMAND - ES&H Assistants Training Program to provide Trained Personnel for future work. Off project poaching created demand -Mentoring -Training and development -Transfer of Technology RISK REDUCTION – TRAINING AND EDUCATION

33. 2005 CPI CONFERENCE “Leadership of Tomorrow – Bridging the Gap” - TO REDUCE THE NUMBER OF NEAR MISS AND FIRST AID INCIDENTS BY 75% FOR THE NEXT MILLION HOURS WORKED RISK REDUCTION – INITIATIVES

34. 2005 CPI CONFERENCE “Leadership of Tomorrow – Bridging the Gap” - OCCUPATIONAL HEALTH NURSES AND EMTS - EMPLOYEES CAN GET EXTRA SICK LEAVE DAYS EASILY - IMPLEMENTED RETURN TO WORK POLICY - All WORKERS MUST BE SEEN BY NURSE BEFORE SEEKING OFFSITE MEDICAL ASSISTANCE. REDUCTION METHODS -AGGRESSIVE MEDICAL CASE MANAGEMENT

35. 2005 CPI CONFERENCE “Leadership of Tomorrow – Bridging the Gap” - Subcontractors Companies receive a Certificate of Completion and a “Write- Up” in the local Newspaper. - Gifts and Achievement certificates at Million Man hours Milestone 1,3,5,7,10 and completion of the project. - Workers receive incentives for attendance, working safe, and making observation as members of PBS RECOGNITION / REWARDS

36. 2005 CPI CONFERENCE “Leadership of Tomorrow – Bridging the Gap”  SUSTAINABILITY - The project has received an “A” rating in ES&H Compliance from our customer - Assist in winning other LNG Work in other companies CII ZERO INJURY TECHNIQUES IMPLEMENTED PRE - 1996 PRESENT