Tenets of Operation Interpretation and Description

Interpretation and description of the OE Tenets

Tenets of Operation Prefaced with... “We Always”

1. Operate within design or environmental limits.

General description: This tenet addresses the need for personnel to clearly understand the limitations, ratings, capacities and operational capabilities of all equipment, industrial components and material resources utilized in our operations. It requires that personnel have an accurate understanding of what tools and equipment were designed to do, the manufacturer’s recommendations for use, what limitations apply, and under what conditions that equipment is capable of functioning correctly. Tools must be used properly within their intended purpose (proper tool for the job), under conditions that meet the manufacturer’s recommendations and by personnel that are properly trained and authorized to use that equipment. Material resources have inherent limitations to their capabilities and manufacturers must produce products that meet a variety of industry standards and provide customers with assurances that their products meet the engineering specifications for those products sold by them. End users of equipment must be certain that material resources are capable of performing the task for which they are utilized.

Examples of Tenet 1: Design Limits topics Pressure limits of hydraulic equipment, lines and hoses Pressure limits of pneumatic equipment, lines and hoses Mechanical capabilities of lifting equipment, cranes, slings, shackles Load limits of cables used in mechanical applications of equipment Fluid levels on equipment RPM limits of engines Temperature limits of engines Pressure, heat and strength limitations of piping, iron, metal and alloys Torque limits of mechanical equipment Load Limitations of transportation equipment Design Limitations of Personal Protective Equipment

Environmental conditions can have significant affect on operations. The limitations of tools, equipment and personnel can be adversely affected by weather and at times simply by the physical presence of a variety of environmental factors. Our workplace and work activities present the potential for companies to adversely affect the natural world and it is our responsibility to do all that we can to prevent endangering our environment and the natural resources we enjoy and benefit from.

Examples of Tenet 1: Environmental Limits topics Rough seas can create potentially hazardous conditions for vessels

Written by Luke Meaux, HES Representative Chevron GOMBU Hurricane Restoration Team


High winds have the potential to blow small or loose items overboard High winds can limit the safe operations of material handling High winds and rain can increase risks of working at heights High winds and rain can increase slip, trip and fall hazards High winds and rough seas can increase risk for helicopter transfer High winds and rough seas can increase risk for personnel transfer Rain and wet conditions can create electrical hazards Windy conditions increase the potential for debris getting into eyes Strong ocean currents can challenge underwater diving operations Underwater diving operations can be challenged by low visibility Underwater sea life can pose a hazard to divers

2. Operate in a safe and controlled condition.

General description: It is the responsibility of all personnel to conduct work activities and job tasks with the utmost concern for the safety of all involved and in a manner whereby the outcome of those activities is limited to planned events. Work activities must be well planned, organized, communicated and carefully executed in order to result in the desired outcome. All tasks must be undertaken with high degree of preparedness conducted by qualified personnel and utilizing the appropriate tools, equipment and resources to get the job done safely and without causing harm to the environment. Individuals must be allowed sufficient time to conduct operations safely without undue haste or the undertaking of unnecessary risks.

Examples of Tenet 2: Safe and Controlled Condition topics Crane loads should be moved slowly and transported low to the ground when

possible Vehicles must be operated within the posted speed limits Proper PPE must be worn for all tasks Hazards must be identified and either eliminated or mitigated before moving

forward with job task All personnel must be qualified to perform their assigned responsibility Stop Work Authority must be used if issues arise warranting concern The job plan must be communicated to all parties involved in job task No hurrying or rushing of work activities to meet deadlines at the expense of

safety All documentation for job tasks must be completed and approved by an

authorized operations representative Good communications must be established and maintained during operational

activities

3. Ensure safety devices are in place and functioning.



General description: In today’s oilfield environment a myriad of complex systems, tools, equipment and technology is used to conduct operations. Offshore facilities and vessels depend on numerous systems to maintain operational capacity and to perform effectively, reliably and safely. Persons responsible for operating, maintaining and monitoring that equipment must be well trained and knowledgeable about the equipment they are responsible for. It is vital that routine monitoring, inspection and testing is performed on all equipment, systems and tools to confirm that those resources are performing up to standard and are fully functional. Devices that provide the ability to monitor, control, manage and respond to situations must be relied up to work as designed. The reliability of these devices depends on having well-serviced, functional and operational equipment. In instances where deficiencies in safety devices are discovered which have the potential to negatively affect operational capabilities and or limit the functional capabilities of those devices, it is critical that those issues are communicated and addressed appropriately. Such equipment must be repaired or replaced. The necessity of Stop Work Authority must be considered any time safety devices are found to be poorly functioning or inoperable.

Examples of Tenet 3: Safety Devices in place and functioning topics All gauges on equipment must be functioning properly and clearly readable All ESDs must work as intended All exhaust manifolds and mufflers must be equipped with heat shielding Equipment must contain guards to prevent bodily contact with potentially

hazardous moving parts (PTO shafts, Belts / pulleys, reciprocating parts) Systems requiring redundancies must have backup systems at the ready Handrails and guardrails must be in place and in good condition Hose connections must be equipped with safety pins and whip checks Cranes must have properly functioning load indicators Emergency communications systems and alarms must be operable Warning signs and placards must be legible and good condition Bench Grinders and hand grinders must have guards/ shields installed Eyewash stations and emergency showers must be operable

4. Follow safe work practices and procedures.

General description: Chevron has identified categories of work activities that possess unique challenges and potential hazards. These safe work practices have been developed and implemented based upon many years of experience and with the intent of assisting personnel in conducting incident free operations. Specific operational procedures, training, safety considerations and documentation have hashave been developed to assist personnel in assuring that job tasks within these categories can be performed safely and within regulatory requirements. Safe work practices are intended to ensure the proper authorization of designated work and to



make clear to people carrying out the work, the exact identity, nature and extent of the job, the hazards involved, and any limitations on the extent of the work and the time during which the job may be carried out. SWP may also specify the precautions to be taken, including safe isolation from potential risks such as hazardous substances and electricity.

Examples of Tenet 4: SWP and Procedures topics Permit to Work (PTW) Lockout Tagout (LOTO) Fall hazard Management Simultaneous Operations (SimOps) Hot Work (Welding and Non-welding) Fire Prevention & Egress Electrical Safety Confined Space Entry Flag, By-Pass & Monitor (FBM)

5. Meet or exceed customer’s requirements.

General description: Chevron’s goal is to be the global energy company most admired for its people, partnerships and performance. Whether working as a company representative, contractor or partner with interest in a joint project, it is important that all team members earnestly strive to meet the expectations, agreements, requirements, standards and goals of the endeavor that is set before them. This commitment to operational excellence is one of the defining principles guiding our efforts to achieve this goal and it is up to each of us as individuals to strive for a level of performance indicative of a world-class organization.

Examples of Tenet 5: Customer’s Requirements topics We adhere to the ten Tenets of Operational Excellence We follow the two key principles: Do it safely or not at all and There is

always time to do it right We follow company policies and procedures We are committed to supporting with the Chevron Way We strive to conduct incident free operations We report all incidents, accidents, near misses and environmental

events We exercise Stop Work Authority when appropriate We believe all incidents are preventable

6. Maintain integrity of dedicated systems.



General description: Our workplace contains a broad variety of systems designed, built, installed and operated to perform specific functions. These range from basic everyday conveniences such as air conditioning, running water and electricity to highly complex and technically advanced systems performing previously unimagined operations with amazing reliability. These systems often include emergency response equipment, communications equipment, numerous monitoring and control systems and a variety of purpose built equipment that provide the capacity for the wide variety of needs required to meet the challenges of our operational activities. It is critical that all systems be maintained in a state of readiness and with full operational capability. When issues arise with dedicated systems thorough analysis should be performed in order to determine what aspects of operational capabilities could be affected and to immediately notify the appropriate personnel of the issue. The necessary action must then be taken to rectify the shortcomings of the system in as timely a manner as possible.

Examples of Tenet 6: Dedicated Systems topics Emergency Response systems (fire water, warning alarms, control systems

indicators) DP system (Dynamic Positioning) many components involved Electrical Generation systems (engines, electrical motors and distribution

systems) Communication systems (radios, phones, Gai-tronics phones) Waste water treatment systems (treatment tank, plumbing, chemical

dispensers, filters, gauges) SAT systems (SAT control, Saturation chambers, HRC (Hyperbaric Rescue

Craft), Dive Bell, Umbilical Cables Air supply system (provides air pressure for a variety of pneumatic equipment

such as tuggers, needle guns, waste water suction, etc.) Fresh Water supply system (water maker, filters, tanks, hot water heaters) Vessel Ballasting system (pumps, tanks, and gauges) ROV systems Surface Diving systems: dive control, diving bell, surface dive compression

chambers, umbilical cables, dive cameras, communications, etc.

7. Comply with all applicable rules and regulations.

General description: We operate here in the Gulf of Mexico under a lease agreement at the permission of the Federal Government. Governmental organizations such as the Environmental Protection Agency and its enforcement division the Minerals Management Service have regulatory authority over many aspects of our business activities conducted at Chevron’s leasehold facilities. As an organization we are committed to meeting the standards set forth by other regulatory institutions such as OSHA and ANSI. It is imperative that we first clearly



understand these requirements, regulations and guidelines and furthermore that we work diligently to ensure full compliance with those that apply to our operations. Because Chevron is committed to meeting the standards set forth by regulatory institutions it requires all its employees and contractors to adhere to those regulations and report all violations witnessed to the appropriate company representative.

Examples of Tenet 7: Rules and Regulations topics

OSHA guidance- Occupational Safety and Health Administration Code of Federal Regulations EPA / MMS Regulations- Environmental Protection Agency / Minerals

Management Service ANSI- American National Standards Institute API- American Petroleum Institute guidance OOC- Offshore Operators Committee ISO- International Standards Organization DOT- Department of Transportation Chevron Company Policies USCG- United States Coast Guard

8. Address abnormal conditions.

General description: Abnormal conditions, unforeseen obstacles and unusual situations that sometimes arise can present challenges to our planned activities and ongoing operations. When confronted with such circumstances, investigations must be conducted to ascertain the existing conditions and accurately assess the situational demands in their current status. Work plans and proposed job tasks must be analyzed to identify necessary changes and modifications to meet those demands and or to determine if the work can be continued. Prudent judgment must be exercised when making determinations with regard to changes to the scope of work and the manner in which job tasks are to be conducted. All changes must be communicated to all parties involved in the job task and to those who could be affected by deviation from the original plan.

Examples of Tenet 8: Address abnormal conditions topics Downed platforms contain numerous hazards due to the nature and

result of the event. The extent of damage caused by storms including the submersion of the entire structure poses unique challenges for the Hurricane Restoration Team.

Seawater can promote corrosion on equipment, tools and metal materials leaving them less capable then when manufactured

Storms can cause damage to and weaken the integrity of structural components promoting potential failure



Unusually loaded structural components may contain trapped energy Damaged structures may be unstable and be prone to collapse or

contain the potential for unexpected movement of structure members Damaged wells may contain unexpected hazards such as

communication between well bore annuli, damaged valves, leaks, out of round piping, damaged well heads, etc.

Potential entanglement of ROV tether and Diver’s umbilical in structural debris

Failure of the backup system for a primary operational system which requires redundancy

Loss of communications Failure of any system which provides functionality critical to conducting

safe operations

9. Follow written procedures for high risk or unusual situations.

General description: Some work activities have the potential to present significantly hazardous situations for personnel or the environment and may include unusual operational challenges. These situations are often best addressed by having detailed written procedures to clearly define job scope, identify hazards, mitigate risks, describe conditions and clearly communicate the responsibilities and the prescribed course of action for all personnel involved prior to beginning the activity. Following the execution of the task, written procedures give the opportunity to document how challenges were met, the unique situations experienced while conducting the task and to clearly define what worked well and things that are to be avoided. These lessons learned can be shared with others and may be used by management to create “Best Practices” for distribution to the workforce.

Examples of Tenet 9: Potentially High Risk or Unusual Situations Underwater Well Intervention Heavy lifts Confined space entry Underwater burning Work at heights Scaffolding Fuel transfer High voltage electrical work

10. Involve the right people in decisions that affect procedures and equipment.



General description: The diversity of work activities in today’s petroleum industry covers a broad spectrum of tasks and includes the use of many specialty tools and equipment. To successfully and safely conduct this wide range of activities it is important that we gather personnel with relevant experience, training and education in the job to be performed and the equipment to be used. We all benefit from operating in a team-based environment where leadership maximizes personnel resources. The involvement of the right individuals in creating well conceived job plans and carefully developing procedures to meet the demands of the work activity is an important component to the successful completion of the task.

Examples of Tenet 10: Involve the right people in decisions topics Ensure that persons planning a task have the appropriate knowledge, training,

experience and or education to provide valued input to the planning of the task

Welcome a team approach to conducting planning and strategy sessions Ensure that one or more members or representatives for each party involved

in a task takes part in the planning of that work activity Promote input from team members by being a good listener while considering

the suggestions and potential solutions to challenges proposed by team members

Seek subject matter expert advice for highly complex, unusually critical or highly specialized tasks

Consider directly consulting with equipment manufacturers to clarify any questions regarding the capabilities of tools and equipment


Documents

Tenets of Operation Interpretation and Description