1. Joe Hurt Regional VP North America Land Operations & Staff HSE

2. IADC HISTORY  Founded as the American Association of Oilwell Drilling Contractors (AAODC) in 1940.  In 1972, the AAODC became the International Association of Drilling Contractors (IADC), beginning its transformation to an international organization.  Today, IADC represents drilling contractors, oil and gas producing companies and manufacturing and service companies worldwide and is truly a multinational organization.

3. WORLDWIDE MEMBERSHIP  Worldwide Totals 445 - Drilling & Well Servicing Contractors 61 - Major & Independent Producers and National Oil Companies 1133 - Oilfield Service & Supply Firms  US Totals 188 - Drilling & Well Servicing Contractors 32 - Major & Independent Producers and National Oil Companies 731 - Oilfield Service & Supply Firms  US Land Totals 167 - Drilling & Well Servicing Contractors  US Offshore Totals 12 - Drilling & Well Servicing Contractors

4. Land  Joe Hurt – Regional Vice-President, Land Operations and HSE  Paul Breaux – Assistant Director, Land Operations and HSE Offshore  Alan Spackman – Vice-President, Offshore Technical and Regulatory Affairs  John Pertgen – Assistant Director - Offshore Technical and Regulatory Affairs Operations Division Support  Holly Shock – Committee Coordinator  Amanda Lemmond – Operations Group Assistant (ISP) Accreditation  Mark Denkowski – Vice-President, Accreditation/Certification  Brenda Kelly – Director, Accreditation/Certification Publications & Membership  Jason McFarland Vice-President, Membership/Publications  Loretta Krolczyk – Director, Publications  Sharon Thorpe – Director, Membership IADC STAFF

5. GAINING PUBLIC TRUST The general public gives us the license to drill, develop, and produce oil and gas resources!!! The Upstream Oil and Gas Industry is measured by our lowest performing member!!! What are each of us doing to help bring up the performance of our lower performing companies??????

6.  OSHA Oil & Gas Outreach Team  OSHA Oil & Gas Conference Planning Committee  NORA OIL AND GAS COUNCIL  IADC Rig Moving Competency Standards  Swamper – ¾ Completed  Gin Truck Driver – Started  Winch Truck Driver (Future Project)  Forklift Operator (Future Project)  Truck Pusher (Future Project)  API RP 2D (Offshore Lifting)  API RP 53 (Blowout Preventers)  API TG5 (Spec for Hammer Unions)  API Spec 16 RCD (Rotating Control Devices)  Developing Managed Pressure Drilling B P  Developing UBO – HSE Planning Guidelines  API RP 92 U (Under Balanced Drilling Operations) IADC OUTREACH EFFORTS

7.  IADC HSE – T Conference  IADC Safe Lifting Conference  IADC Contracts and Risk Management Conference  Drilling and Completing Trouble Zones F orum IADC CONFERENCES

8. IADC REGULATORY ISSUES FRC Occupational Safety & Health Review Commission Ruled that the enforcement letter was not lawful.Occupational Safety & Health Review Commission Ruled that the enforcement letter was not lawful.HOS FMCSA is seeking comments to remove the Oilfield exemption and reduce hours from 11 to 10. FRACKING EMMISIONS

9. IADC COMMITTEES Ethics and Corporate Compliance Committee Underbalanced & Managed Pressure Drilling Operations Health, Safety & Environmental Training Government Affairs Technical Committees Well Control Maintenance Contracts Rig Moving (Land) Well Servicing

10. IADC ACCREDITATION & CERTIFICATION ACD First formed in 1993 with the creation of Rig PassFirst formed in 1993 with the creation of Rig Pass Expanded in 1994 with the creation of WellCAP well control trainingExpanded in 1994 with the creation of WellCAP well control training

11. 8 accreditation programs 8 accreditation programs 397 accredited providers/companies 397 accredited providers/companies >1800 approved instructors >1800 approved instructors 15 languages 15 languages 59 countries 59 countries Staff: 10 Staff: 10 IADC ACCREDITATION & CERTIFICATION

12. HSE Rig Pass HSE Rig Pass WellCAP WellCAP WellCAP Plus WellCAP Plus Competence Assurance Competence Assurance Drilling Industry Training Drilling Industry Training Ballast Control & Stability Ballast Control & Stability Personnel Offshore Safety Training (POST) Personnel Offshore Safety Training (POST) IADC ACCREDITATION & CERTIFICATION

13. HSE Rig Pass Endorsed By: SafeLandSafeGulf IADC ACCREDITATION & CERTIFICATION

14. IADC ACCREDITATION PROGRAMS Emphasize instructional qualityEmphasize instructional quality Establish criteria for:Establish criteria for: Course content standardization Course content standardization Instructional methodology and materials Instructional methodology and materials Instructor qualifications Instructor qualifications Student assessment Student assessment Program administration and quality assurance Program administration and quality assurance

15. IADC ACCREDITATION PROCESS

16. HSE Rig Pass Applications Processing 2011 Program Applications: 112Program Applications: 112 Instructor Applications: 428Instructor Applications: 428 WellCAP Applications Processing 2011 Program Applications: 36Program Applications: 36 Instructor Applications: 284Instructor Applications: 284 IADC ACCREDITATION & CERTIFICATION

17. for “The Development of Drilling Industry Training Standards and Accreditation of Training Providers” IADC ACCREDITATION & CERTIFICATION ISO 9001:2008 certified

18. General Overview IADC's Safety Alert Program is a continuous improvement effort by the IADC HSE Committee to further the cause of safety in the Oil & Gas Drilling Industry. The program is completely voluntary and IADC does not publish or provide company information in regard to alerts submitted by a company. ~3 per Month Alert Submissions Online Submission Form on the IADC web site (www.iadc.org);www.iadc.org E-mail alerts to alerts@iadc.org;alerts@iadc.org Alert Submission Form by fax or mail. *NOTE: Safety Alert submissions are “cleansed” of the submitting company’s name, any references or logos; Safety Alert Team Review IADC HSE ALERTS

19. IADC INCIDENT STATISTICS PROGRAM  Oldest incident database of drilling related incidents.  Open to all drilling and service contractors.  Summary reports posted each quarter.  Annual in-depth report issued each year.  Rig Recognition  Company must be a current participant.  Company must have submitted data for the previous year.  Company must be a member of IADC.

22. US LAND IADC INCIDENT STATISTICS

23. Total Industry Fatalities VS Man-Hours 1990 = 0.038 2000 = 0.024 2005 = 0.013 2008 = 0.014 2009 = 0.015 2010 = 0.014 2011 = 0.007 2011 3 rd qt Man-hours Fatalities

24. US Land Fatalities VS Man-Hours Man-hours Fatalities

25. US Water Fatalities VS Man-Hours Man-hours Fatalities

26. US LAND FATAL INCIDENTS 2011 IADC ISP YEAR END US LAND FATALITIES = 11 (ISP = Incident Statistics Program) 2010 IADC ISP YEAR END US Land FATALITIES = 13 2011 OSHA O & G INDUSTRY DATA POSTED TO 12-31-11 FATALITIES = 55 (Upstream E&P only)

27. How is your preventative maintenance program?? How is your site(rig) inspection program?? Do your employees understand the importance of inspections to their safety??

28. How up to date is your equipment inventory?? Do your employees know it is their responsibility to stop unsafe actions?? How is your new employee indoctrination program??

29. 2010 US Industry Fatality Rates

30. RECENT NEAR MISS

31. INCIDENT EXAMPLES

32. No documented jack screw inspections for 30 years. Old Jack ScrewNew Jack Screw INCIDENT EXAMPLES

35. Mismatched Hammer Unions

36. Rig Moving incident INCIDENT EXAMPLES

37. Hand Tools INCIDENT EXAMPLES

38. Remember incident statistics are not numbers, but lives of co-workers, dads brothers, sons!

39. US Land Fatalities 2011 Floorman Rig Floor Tripping Struck By > 6 months < 1 year Motorman Rig Floor Routine drilling operations Struck By > 1 year < 5 years Floorman Rig Floor Struck By Running Casing < 3 months

40. US Land Fatalities 2011 Electrician Vehicle Travel Vehicle > 1 year < 5 years Driller Pipe rack area Tripping Caught between > 6 months < 1 year Driller Rig floor Other Struck by > 10 years

41. US Land Fatalities 2011 Derrickman Derrick ladder Tripping Fall different level > 3 Months < 6 months Floorman Equipment room Maintenance Electric shock > 3 months < 6 months Floorman Rig Floor Tripping Struck by > 1 year < 5 years

42. US Land Fatalities 2011 Floorman Rig pad Routine drilling operations Slip / Fall > 5 years < 10 years Driller Cellar area Maintenance Electric shock > 3 months < 6 months

43. US Land Fatalities 2011

44. Questions?