Safety & Environmental Management Issue Date: 07/17/2017 Version 2.3 SECTION 3 HAZARD ANALYSIS Reviewed By Director of Production and Operations Steve Bodden Stone Energy Corporation Reviewed By Director of Deepwater Drilling and Completions Craig Castille Stone Energy Corporation Reviewed By HSE Manager Patrick Eiland Stone Energy Corporation Reviewed By Engineering and Construction Manager Greg Hernandez Stone Energy Corporation Approved By Chief Operating Officer Keith Seilhan Stone Energy Corporation Version Number: 1.0 Issue Date: 11/15/2011 Version Number: 2.0 Issue Date: 05/01/2013 Version Number: 2.1 Issue Date: 03/16/2015 Version Number: 2.2 Issue Date: 04/27/2017 Version Number: 2.3 Commitment Stone Energy Corporation is committed to the Health and Safety of its employees, contractors, and the communities where it operates. We will operate under sound environmental practices and will conduct our operations in compliance with all applicable laws, regulations, and standards. Management Expectations All employees and contractors are individually responsible / accountable for self, coworkers, and community when it comes to safety. All personnel, by actions and example, will strive to ensure a safe work place for employees and contractors. All personnel will respect the communities and areas we work in through compliance and environmental awareness. Page 1 of 6
Contents 3. HAZARDS ANALYSIS... 3 3.1 APPLICATION... 3 3.2 METHODOLOGY... 3 3.3 INITIAL ANALYSIS... 3 3.4 PERIODIC ANALYSIS... 4 3.5 ANALYSIS PERSONNEL... 4 3.6 ANALYSIS REPORT... 5 3.7 JOB SAFETY ENVIRONMENTAL ANALYSIS... 5 3.7.1 RESPONSIBILITIES... 5 3.7.2 REQUIREMENTS... 6 Page 2 of 6
3. HAZARDS ANALYSIS 3.1 APPLICATION Stone Energy s Management requires a hazards analysis be performed for any facility subject to API RP-75 and 30CFR250 Subpart S. The purpose of this analysis is to identify, evaluate, and, where unacceptable, reduce the likelihood and/or minimize the consequences of uncontrolled releases and other safety or environmental incidents. Human factors should be considered in this analysis. This document addresses hazards analysis at the facility level only; job safety analysis (operations / task level) requirements shall be addressed separately. For facilities brought to and used on Stone Energy operated leases by third party contractors, the Contractors must have a Hazards Analysis program for their facilities which meets the requirements of Stone Energy s SEMS program as well as API RP 75 and 30CFR250 Subpart S. Hazard analysis documentation shall be readily available and provided to Stone Energy upon request. If the hazard analysis of third party Contractor facilities requires consideration of both Stone Energy s Facilities and the Contractor s Facilities, then the site specific responsibilities of each party will be clearly defined in a Bridging Document, Bridging Agreement, or job safety / environmental analysis (JSEA) as appropriate. 3.2 METHODOLOGY Page 3 of 6 The hazards analysis must be appropriate to the complexity of the operation and must identify, evaluate, and manage the hazards involved in the operation. As a minimum, hazards analysis requirements for production equipment may be met by ensuring that the facility conforms to the requirements of API RP 14C, Recommended Practice for Analysis, Design, Installation and Testing of Basic Surface Safety s on Offshore Production Platforms. Stone Energy s approach to hazards analysis on offshore facilities is to concentrate on the areas that present the greatest risk. For facilities that present the highest risk, such as production or processing platforms with living quarters, the review shall additionally concentrate on the effects of an uncontrolled release on personnel. A checklist format based on API RP 14J and API RP 75 guidelines will be the preferred method for hazards analysis. The safety information normally required for this review includes an up-to-date P&ID / Process or Safety Flow Diagram, SAFE chart, design / MAWP of process equipment, details of any relief or vent system, an equipment layout drawing and electrical area classification plan as minimum reference information. 3.3 INITIAL ANALYSIS STONE ENERGY S GUIDING PRINCIPLES FOR DECISIONS ARE: a. Safety of all personnel b. Protection of the environment c. Compliance with all laws and regulations d. Maximization of production e. Minimization of cost Per current BSEE requirements as defined in 30CFR250 Subpart S, Section 250.1911, a hazards analysis (facility level) must be performed on each facility.
Page 4 of 6 The following factors (not necessarily in prioritized order) may be considered when establishing priority ranking for performing hazards analyses: a. Areas with continuous offshore population, such as living quarters on major platforms, and platform clusters or complexes. b. Inventory and flow rate of flammable, toxic, or other materials that may constitute a safety hazard or cause a significant environmental impact. c. Locations involving simultaneous operations such as producing while drilling, or producing while constructing above or below the water line. d. Facilities that remove natural gas liquids or handle hydrogen sulfide. e. Facilities with severe operating conditions, such as high pressures, highly corrosive fluids, or conditions such as abnormal sand production or high flow rates that may cause severe erosion or corrosion. f. Facilities in proximity to areas considered to be environmentally sensitive areas. SPECIAL CONSIDERATIONS FOR A NEW OR MODIFIED FACILITIES Stone Energy will utilize the following information when preparing a hazard analysis on new and modified facilities. a. Previous experience with a similar facility, area, field, well or process. b. Design circumstances, such as changes in the design team or the design itself, after the project is underway. c. Unusual facility location, design or configuration, equipment arrangement, or emergency response considerations. d. Any findings that need to be brought to resolution before start-up or that require immediate attention should be clearly identified. e. Operating procedures and practices, including simultaneous operations guidelines. A valid MOC shall be completed and approved prior to the installation of a new facility or the modification of an existing facility which shall include a proper hazard analysis as appropriate per Production Operations Section 4 Management of Change. 3.4 PERIODIC ANALYSIS Hazards analyses shall be reviewed periodically and updated as appropriate, with typical review intervals ranging between 5 years for high-priority facilities and 10 years for low-priority facilities. 3.5 ANALYSIS PERSONNEL A hazards analysis is normally performed by a team, but can be performed by an individual for simple facilities. The team or individual shall be person(s) knowledgeable in engineering, operations, design, process, safety, environmental and other specialties deemed appropriate. Where Stone Energy utilizes a team approach, the team may consist of one or more of the following disciplines: a. Engineering b. Operations
c. HSE d. Management Sources for the personnel who participate in the Hazard Analysis Team could include Stone Energy Staff, Stone Energy Consultants, Engineering Firms, Partners and Hazard Analysis Consultants. 3.6 ANALYSIS REPORT A current analysis, including any updates, shall be maintained for each facility within SEMPCheck (Click Here For Link) for the life of the facility. A copy of the documentation must be maintained at an onshore location. Identified hazards and recommendations resulting from the analysis shall be summarized and distributed to appropriate personnel for action via the MOC process. 3.7 JOB SAFETY ENVIRONMENTAL ANALYSIS The purpose of this procedure is to establish a formal process for evaluating and controlling existing or potential workplace hazards, and to ensure the information is communicated to all concerned parties. Because many workplace injuries and accidents are caused by inadequate or inaccurate procedures in carrying out the job task, the Job Safety Environmental Analysis (JSEA) should be viewed as the hallmark of prudent job planning. 3.7.1 RESPONSIBILITIES The Stone Energy OIM, Field Production Foreman or Project Manager is responsible for: Providing leadership and commitment, and holding contract personnel accountable for implementation of this procedure. Communicating to the workforce Stone Energy Corporation s commitment to the stopping of work if any unsafe situation is present. The Person In Charge (PIC), Platform Supervisor, or Project Manager is responsible for: Facilitating the development, review, and documentation of JSEA s with their personnel to carry out this policy. Utilizing the JSEA during daily safety meetings with their personnel. Jointly performing and reviewing with their personnel the JSEA as it applies to affected personnel. Incorporating the results of the JSEA into applicable Safe Work Procedures. Change or develop new JSEA s as conditions warrant. Audit the JSEA process to ensure that employees follow appropriate steps in carrying out JSEA task steps. The Stone Energy Employee or Contract Employee is responsible for: Actively participating in the development and reviewing of JSEA s. Incorporating the results of Safety Meetings and JSEA data into daily activities. Page 5 of 6
Advising the Person In Charge (PIC), Platform Supervisor, or Project Manager when conditions or situations of the task change. 3.7.2 REQUIREMENTS The JSEA is the process of identifying/evaluating hazards and implementing control measures to eliminate or reduce the potential for an incident. A JSEA may be required based upon the complexity of the job, the number of personnel involved, and the hazards that may be encountered. Although a JSEA may be conducted for any job where the JSEA process will prevent accidents or injuries, a JSEA will be required for, but not limited to the following jobs: Jobs requiring Hot Work (welding, burning, grinding, etc.) Jobs requiring personnel to work at heights, requiring fall protection or working outside the handrails Vessel / tank cleaning or confined space entry jobs Jobs requiring Lockout / Tagout procedures Jobs requiring opening of process piping or equipment Projects being performed during simultaneous operations Crane operations involving critical or heavy lifts Page 6 of 6