Highly Detailed, Web-Based Process Training for the Mid- Stream Industry Phil Rutledge Western Gas Resources, Inc. Midland TX

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1 Highly Detailed, Web-Based Process Training for the Mid- Stream Industry Phil Rutledge Western Gas Resources, Inc. Midland TX Mark Roop esimulation, Inc. Houston, TX

2 Disclaimer THIS PRESENTATION IS NEITHER INTENDED AS AN ENDORSEMENT OF THE ESIMULATION PRODUCT, NOR IS IT INTENDED TO BE AN EXHAUSTIVE INSTRUCTIONAL TUTORIAL ON THE USE OF THE ESIMULATION PRODUCT. RATHER, THIS PRESENTATION IS INTENDED ONLY TO PROVIDE A PARTIAL SUMMARY OF WESTERN GAS RESOURCE S LIMITED EXPERIENCE WITH THE ESIMULATION PRODUCT. YOUR EXPERIENCE MAY VARY.

3 Business Issues Wide variance in operator competency levels Risk of inappropriate or inexperienced operator responses Safety Environmental Production losses Reduced economic operating efficiency Operators retiring new untrained staff

4 Mid-Stream Training Challenge Geographically diverse assets Small number of operators Working shifts Limited no. of competent trainers Lots of equipment training courses, but not a lot of detailed process training options

5 RWD Technologies Plant specific operator training programs for refining, petrochemical, and chemical industries Procedural documentation services Generic web-based refinery courses Approached esimulation about building courses for mid-stream

6 BUSINESS IMPROVEMENT TECHNOLOGIES RWD s Learning Model Competency Unit-Specific Quantitative Analysis Systematic Analysis of Direction, Magnitude and Response Time of Changes Equipment Savvy Intuitive Feel for Equipment Operation and Basic Principles General Qualitative Analysis Able to Analyze Directional Changes on Common Processes Experience, Procedural, and Intuitive Based Analysis Unit-Specific Qualitative Analysis Able to Analyze Directional Changes on Unit-Specific Processes 30-40% 40-50% 70-80% % esimtrainer Competency Target 15-20% Industry average operator competency Training Capital (time and resources)

7 Western Gas Challenged with the delivering process training and refresher training to their operators Realized need to train new personnel quickly to backfill for retiring operations staff Was very receptive to esimulation s and RWD s web-based approach

8 Project Description WGR awarded contract for development of esimtrainer courses Cryogenic Gas Plant Course Fractionation Course Propane Refrigeration Course Used one of WGR s plant as the basis Project kickoff Dec 03

9 Project Description (cont.) Courses delivered August 04 Quality issues Course withdrawn Cryo Course - Re-released in Feb 05 Fractionation and Propane Refrigeration courses - Summer 05 Courses enhanced based on industry feedback

10 Cryogenic Gas Plant Courses Stabilization, amine treating, amine regeneration, dehydration, turbo/expander, demethanizer, residue compression Fractionation Course Depropanizer Propane Refrigeration Stabilization, amine treating, amine regeneration, dehydration, propane refrigeration loop, compression SRU / Amine Treating in-progress

11 Modular Design Orientation Overview of gas processing Different for each course Analysis tools training Fundamental concepts Operations and control Troubleshooting

12 Demonstration Phil Rutledge Western Gas Resources, Inc.

13 Deployment Strategy WGR deploys product in multiple ways Onsite orientation (make them feel comfortable) 1 day Web-based orientation using Net meeting or Goto meeting Different intervals - Review discussion on course progress

14 Deployment Strategy Kept students active and positive and encouraged them to participate Put time limit on courses hours for Cryo hours for Fractionation hours for Propane Refrigeration Started with easier course first to build confidence

15 Strategic Value Improved operator productivity Reduced safety and environmental risk by reducing inappropriate operator responses Improved competency to allow operators to consistently achieve operational directives

16 Summary Western Gas has a tool to improve and maintain operator competency Western Gas is in the process of a corporate deployment of esimtrainer across all assets

17 Any Questions?