HBR Safety Excellence Award Audit Agenda 3/23/06 1. Welcome/Introductions - T Sattler 2. Customer Message - D Brooks 3. Company Overview - D Bordelon 4. Best Practices - T Sattler 5. Visitor Orientation - L Hernandez 6. Turnover to HBR Audit Team

Basic Industries was founded in 1977 with offices, warehousing, and fabrication facilities headquartered in Baton Rouge, Louisiana. Our strategic placement of offices in Port Arthur, Texas; Houston, Texas; Dripping Springs, Texas; Washington D.C. allows Basic Industries the ability to market the Company’s integrated resources on a national, as well as international, level. Basic Industries was founded in 1977 with offices, warehousing, and fabrication facilities headquartered in Baton Rouge, Louisiana. Our strategic placement of offices in Port Arthur, Texas; Houston, Texas; Dripping Springs, Texas; Washington D.C. allows Basic Industries the ability to market the Company’s integrated resources on a national, as well as international, level. Basic Industries is The Right Choice!

n A fundamental business practice of Management is the principle that all occupational injuries and illnesses can be prevented. n Management demonstrates their commitment to the safety and health of it’s personnel through oversight and involvement in day to day operations.

Best Practices n “ZAP” Zero Accident Prevention Training n Craft Certification & Training Program n Employee Benefits Program

Zero Accident Prevention ZAP n CBT can be delivered at any ARSC safety council n Can be jobsite (traditional format) or CBT n Exceeds OSHA mandated training n Reliable recordkeeping process

Craft Certification n NCCER Accredited training & assessment unit n In-house Master Trainer n 4 certified Program Administrators n 5 certified Proctors n 10 certified Craft Instructors n 35 certified Performance Evaluators n 100% core workforce are Certified Plus (Accomplished 12 mos. previous to mandate)

Employee Benefits n All field employees (average 35 hours/wk) are eligible 1 st month following 90 days of continuous employment: - Health/Dental/Vision insurance, - Life insurance, - Retirement (401K)

Safety Improvement Statistics n This is an “Accident Free” worksite. n 17 Years Without A Recordable Injury. n 1,000,000 Manhours.

Q & A

VISITORS SAFETY ORIENTATION Emergency Notification – The Process Team Supervisor will determine whether to blow the emergency horn. Emergency Signals : – Fire - five short blasts repeated after 10 seconds – Vapor Release - two long blasts repeated after 10 seconds – Evacuation - one continuous blast – All Clear - one five second blast – System Test -Horn - one short blast every Wednesday at 9:00 a.m. PA System - Checked every Wednesday in conjunction with horn. Building Public Address (PA) System – An announcement will be made of all significant emergencies by the Console 5 (Utilities) Technician, Process Team Supervisor or Emergency Controller.

VISITORS SAFETY ORIENTATION n Report via your escort or contact person for personnel accounting. n Always note the wind direction, by observing windsocks or steam vapor plumes. n Stay upwind of vapor releases. n Do not respond to an emergency. As a visitor, you do not have an assigned role in emergency response. n Never re-enter an area without authorization. n Do not be a spectator. n Do not start vehicles or other equipment that could become a source of ignition. Safety Guidelines During an Emergency

VISITORS SAFETY ORIENTATION Building Evacuation Occupants of buildings at BOP must familiarize themselves with the building(s) layout and exit doors for the building they occupy. (Building layout maps are posted in each building.) In the event of an emergency necessitating building evacuation, leave the building through the nearest exit door and assemble at your building's designated area for personnel accounting. – Admin Building occupants will gather on the east side of the lake just south of the pump building for personnel accounting. – Employees who work south of the Goose Creek Drainage Ditch (Walk-thru Gate), will gather at the southwest corner of the main BOP parking lot outside the Walk-thru Gate, for personnel accounting. – Occupants of the MDO Building will gather in the parking lot behind the Main Security Guardhouse for personnel accounting.

VISITORS SAFETY ORIENTATION Safe Haven During an emergency such as a vapor/toxic gas release, site buildings will not normally be evacuated. All personnel located in permanent buildings will: – Remain inside their respective building (if designated as a safe haven), unless otherwise instructed by the building owner or your escort/contact. All Personnel Located In Temporary Buildings Will: – Seek safe haven in the nearest (designated) permanent building. All personnel outside/downwind of release should seek safe haven refuge

VISITORS SAFETY ORIENTATION Safe Haven - continued Permanent safe haven buildings at BOP n Control Center n BOP-X Control Center, n Administration Building, n MDO, & Security n Base Plant Utilities Water Control House n Multipurpose buildings n LAB The shop and warehouse areas of the Multipurpose building are not considered as safe havens.

VISITORS SAFETY ORIENTATION Reporting Building/Plant Medical Emergencies or Plant Occurrences All emergencies must be reported by dialing on the telephone, or by using a portable radio's process channel to contact the Console 5 (Utilities) Technician. If you do not have a radio, or you cannot locate a telephone, leave the scene and search for the nearest occupied building and/or an individual with a radio, have them notify plant personnel

VISITORS SAFETY ORIENTATION Confined Spaces – Permit-required confined spaces are located throughout the Baytown Olefins Plant (BOP). Confined spaces may be difficult to access and are not intended to be occupied by human beings, except when maintenance is required. – The overall permit program controls and protects all site personnel from permit space hazards and regulates entry into permit spaces. – Do not enter any confine space unless trained as an entrant and space is permitted.

VISITORS SAFETY ORIENTATION Carbon Monoxide – BOP has established safe work practices for the protection of personnel from the harmful effects of carbon monoxide (CO). High concentrations of carbon monoxide, (15 to 80 %) are possible in areas where SYNGAS Purge Gas or are located. – The areas of concern (Boiler/HRSG) are designated by white chained areas and signs. – Personnel entering these designated areas are required to wear personal CO monitors.

VISITORS SAFETY ORIENTATION Personal Protective Equipment Whenever entering the Plant Operating Area (south of Walker Ave., and or west of "M" Ave. beyond the Control Center), wear the following equipment : – Safety glasses with side shields / Goggles – Hard hat – Safety (steel toed) shoes or fully-enclosed leather shoes – Ear plugs / ear muff are required in dual hearing protection areas – Flame retardant clothing or visitor's smock with long sleeves is required. Sleeves must be buttoned at the wrist and FRC garment buttoned or zipped closed in front. – Gloves – Personal CO monitor required in the area of the Utilities boilers and HRSG (Designated by white chained area and signs) Ô Metals FAB Shop (FRC, hearing protection, and safety glasses with side shields are required) Ô Requirements on PPE are also depend on job conditions

VISITORS SAFETY ORIENTATION ELECTRONIC DEVICES n Wireless Phones - Most wireless phones in use today ARE NOT intrinsically safe. Therefore, wireless phones ARE NOT permitted to be taken into operating areas of the plant. n Personal Digital Assistants - Most PDA's (Palm pilots) ARE NOT intrinsically safe. Palm manufactures two Models (M500 and M505) which are certified by Underwriters Laboratories for use in Class 1, Div. 2, Groups A, B, C and D environments, which include most refineries, chemical plants and similar industrial facilities. Only Palm Models M500 and M505, or others certified for use with an approval label are permitted to be taken into operating areas. n Pagers - BOP issued pagers have the appropriate label indicating they are intrinsically safe. Most personal pagers ARE NOT intrinsically safe. Pagers ARE NOT permitted in operating areas unless they have the approved label. n Cameras - Most digital cameras ARE NOT intrinsically safe and can only be used in operating areas if a hot work permit and/or a gas test have been conducted by Operations. Most 35mm cameras do not produce enough energy to start an ignition in non-flash mode. If taking flash photos, a hot work permit and/or a gas test must be conducted by Operations. You must have BOP manager’s authorization to use a camera. n Other Electronic Devices - other electronic devices must have an intrinsic safety approval (Class I, Div. 2) documentation or sticker before their use s allowed in operating areas without a Hot Work permit and/or gas test.

VISITORS SAFETY ORIENTATION Incident Reporting System n IMPACT An IMPACT report is generated when an action has the potential or caused personal injury or property damage. n Unsafe Condition Report An unsafe condition is a situation that is potentially harmful to personnel or equipment if allowed to continue in its present state. The Unsafe Condition Report provides a documented form of communication that identifies and describes the problem, with a section for corrective recommendations. Anyone can fill out an Unsafe Condition Report and expect a response within seven working days from the person who is responsible for the area. n Personal Injury/Illness Report Report to your BOP escort/contact any occupational incident that causes injury or illness or has the potential to result in an injury or illness. Report any off-the-job incident if it impairs your ability to perform any part of an assigned job or if time will be lost from a scheduled workday. Impairment mean medication, (including over the counter of any type), restrictions, limitations, etc.