SYSTEMS APPROACH TO SHE MANAGEMENT FOR SMALLER OIL & GAS EXPLORATION & PRODUCTION COMPANIES

Size: px

Start display at page:

Download "SYSTEMS APPROACH TO SHE MANAGEMENT FOR SMALLER OIL & GAS EXPLORATION & PRODUCTION COMPANIES"

Roland Reynolds
5 years ago
Views:

1 SYSTEMS APPROACH TO SHE MANAGEMENT FOR SMALLER OIL & GAS EXPLORATION & PRODUCTION COMPANIES 2014 Fall Tech Conference by AIHA-RMS and ASSE September 16, 2014 Arvada, Colorado Presented by LT Environmental, Inc.

2 LT ENVIRONMENTAL, INC. Founded in 1992 Commitment to clients Safety is our priority Headquartered in Arvada Eight regional offices CO, ND, ID, WY, UT, NM, FL, & ID Staff includes ~125 professionals

3 Safety Statistics FATALITIES Fatality Rate = 27.5 per 100,000 workers (more than 7 times higher than the rate for all U.S. workers) Fatality rate increasing with additional development From

4 Safety Statistics The number of fatal work injury cases in oil and gas extraction industries were over 20 percent lower in 2013 to 112 from 142 in Fatalities in the oil and gas extraction industries accounted for 73 percent of the fatal work injuries in the mining sector in 2013.

5 Safety Statistics Fatality rate in Oil & Gas affected by company size Large (>100) = 13.4 Medium (20 99) = 23.4 Small (<20) = 65.5 From: Mortality Statistics for the US Upstream Industry: An Analysis of Circumstances, Trends, and Recommendations; K.D. Retzer, R.D. Hill, SPE, G.A. Conway, National Institute for Occupational Safety and Health; SPE Americas E&P Health, Safety, Security, and Environmental Conference, March 2011, Houston, Texas, USA

6 Why the Difference? Larger Oil & Gas companies have established safety, health, and environmental (SHE) standards of practice These SHE standards of practice often go beyond existing local, state, and federal regulatory requirements The SHE standards of practice are required to be followed by subcontractors The SHE standards of practice are enforced because of investors, partners, and the public s expectations

7 Typical SHE Standards of Practice U.S. Occupational Safety and Health Administration s Process Safety Management of Highly Hazardous Chemicals Standard Chapter 29 Code of Federal Regulations Section The application of management principles and systems to the identification, understanding, and control of process hazards to protect employees, facility assets, and the environment Applicable to facilities with a process which involves a listed hazardous chemical at or above the specified threshold quantities listed for that chemical, or a process which involves a flammable liquid or gas on site in one location, in a quantity of 10,000 pounds (approximately 1,300 gallons) Larger Oil & Gas companies often apply beyond the regulatory scope

Typical SHE Standards of Practice American National Standards Institute s Standard for Occupational Health and Safety Management Systems Z10-2005

8 Typical SHE Standards of Practice American National Standards Institute s Standard for Occupational Health and Safety Management Systems Z Goal of the standard is to encourage integration of safety into other business management systems Voluntary standard with no certification scheme

Typical SHE Standards of Practice International Organization for Standardization s (ISO) Environmental and Occupational Health and Safety Management Standards Environmental = 14001; Health and Safety

9 Typical SHE Standards of Practice International Organization for Standardization s (ISO) Environmental and Occupational Health and Safety Management Standards Environmental = 14001; Health and Safety = Goal of standards To provide employees a safe and healthy working environment, to manage operations to prevent pollution, and to continually improve a company s stewardship of the environment in which they work Applicable if companies are working in European Union countries Larger Oil & Gas companies often apply beyond the regulatory scope

10 Typical SHE Standards of Practice All standards of practice incorporate a Plan-Do- Check-Act (PDCA) continuous improvement philosophy Plan: Establish the objectives and processes needed to deliver the results in line with the environmental policy Do: Implement the needed processes Check: Check the processes against the environmental policy, objectives, targets, regulations, and report on the results Act: Take actions that will continually improve the management system

11 Typical SHE Standards of Practice The PDCA continuous improvement philosophy is established in a SHE Management System (SHEMS) Written Includes all levels of management and employees

12 Problems for Small Companies ISO and extremely complex Each typically involves a 17 element program Often deemed impractical for smaller companies to implement due to limitations on employee knowledge and availability, or cost of full implementation

13 Right-Scaled SHE Management System Incorporates the PDCA philosophy while only utilizing those elements deemed necessary and practical

14 Scope Includes all activities associated with oil and gas exploration and development All drilling, completion, production, pipeline, trucking, rail transportation, oil/gas/gas liquids and water stabilization, and disposal of by-products

15 Plan Risk Assessment Identification of risks that can impact safety, health, and the environment, and for which the Company can control and have an influence on Risk Prioritization A qualitative and quantitative evaluation of the probability of the risk occurring coupled with the potential consequences (severity) of any undesired events resulting from the risk

16 Plan Risk Register Results of risk identification and ranking will be entered into a risk register that will be maintained by a designated responsible employee Action Planning Based on the prioritization of the identified risks, the Company will develop a plan to establish actions to be taken and timelines to be followed to eliminate, minimize, or control the risks

17 Do Tasks to accomplish the action plan will be assigned by management to designated employees Progress of the assigned tasks, including tracking corrective actions to completion, will be recorded on an action register that will be reviewed periodically by management

18 Check A monitoring/auditing process will be developed to measure SHEMS effectiveness Can include one or two components: Internal auditing A designated team of employees will conduct an audit of the SHEMS key components periodically Third-party auditing An independent contractor will conduct an audit of the SHEMS key components periodically over a less frequent period

19 Act Periodic reports outlining the progress of the assigned tasks, new risks identified, results of monitoring completed, and changes in the SHEMS should be developed These task progress reports should be evaluated and the impacts to the SHEMS should be documented and revised

20 Benefits Streamlines regulatory compliance Risk register and action register clearly outline requirements and expectations Establishes a proactive control system Allows for management, investor, and partner evaluation and input Can be used to improve public perception and cooperation Right-sizes costs and personnel involvement Safety is Good Business

21 Contact: LT Environmental, Inc West 60 th Ave Arvada, CO Patrick Garland, P.G, REA Compliance, Remediation, Engineering

IMPROVING CHEMICAL FACILITY SAFETY AND SECURITY OSHA S DIRECTIVE TO MODERNIZE PSM

IMPROVING CHEMICAL FACILITY SAFETY AND SECURITY OSHA S DIRECTIVE TO MODERNIZE PSM January 30, 2014 Presented by LT Environmental, Inc. Process Safety Management Process Safety Management of Highly Hazardous