Roles & Responsibilities

Roles & Responsibilities

Table of Contents Roles and Responsibilities... 2 Corporate Management, Total Energy Services Inc... 2 President/ CEO... 2 VP Legal & General Counsel... 2 Vice President, Operations... 2 Vice President, Drilling Services... 2 Senior Management, Chinook Drilling... 2 General Manager... 2 Operations Manager... 3 Sales (All Positions)... 3 Controller... 3 Operations Management... 4 Field Superintendent... 4 HSE Management... 4 HSE Manager/Coordinator... 4 HSE Assistant Coordinator... 5 HSE Assistant... 5 Administration... 6 Sales Representative... 6 Personnel Coordinator... 6 Operations Assistant... 7 General Accountant... 7 Accounts Receivable Accountant/Contract Admin... 7 Accounts Payable Clerk... 8 Field Management, Drilling Services... 8 Rig Manager... 8 Field Crew, Drilling Services... 10 Crew Members... 10 Driller... 10 Assistant Driller... 11 Derrickhand... 11 Motorhand... 12 Floorhand... 12 Leasehand... 13 Driver... 13 Visitors, Rigs... 13 Visitors, Office... 14 1

Contractor and Sub-Contractor... 14 Roles and Responsibilities Corporate Management, Total Energy Services Inc President / CEO Vice President and General Legal Counsel Vice President, Operations Vice President, Drilling Services President/ CEO Review and sign Health, Safety and Environment Policies. Provide leadership, support and direction for HSE Program Understand the responsibilities under the applicable legislation VP Legal & General Counsel Provide leadership, support and direction for HSE Program Understand the responsibilities under the applicable legislation Vice President, Operations Develop and Review Health, Safety and Environment Policies. Review and sign Health and Safety Objectives, Environmental Objectives. Communicate Corporate Policies to Chinook Drilling Management and Employees Provide leadership, support and direction for HSE Program. Understand the responsibilities under applicable legislation Vice President, Drilling Services Communicate Corporate Policies to Chinook Drilling Division Management and Employees Provide leadership, support and direction for HSE Program. Understand the responsibilities under applicable legislation Senior Management, Chinook Drilling General Manager, Drilling Services Operations Manager, Drilling Services Sales Manager, Drilling Services Controller, Drilling Services General Manager Review and approve policies Review safety performance as submitted by HSE Department 2

Communicate with Operations Manager & Field Superintendents on Rig operations and performance in relation to production and safety Monitor enforcement of Government and Company rules and regulations concerning accident prevention Ensure proper investigations into accidents in operations in cooperation with HSE Department Provide support and feedback to corrective actions from incident investigations as necessary. Review outside agency inspections and ensure proper action is taken on recommendations. Review safety performance provide support and resources for improvements Operations Manager Review safety performance as submitted by HSE Department Communicate with Field Superintendents, Rig Managers and HSE Department on operations and performance in relation to production and safety Monitor enforcement of Government and Company rules and regulations concerning accident prevention Ensure proper investigations into accidents in operations in conjunction with HSE Department Provide support and feedback for corrective actions from incident investigations as necessary. Review outside agency inspections and ensure proper action is taken on recommendations. Review safety records provide support and encouragement for improvements Sales (All Positions) Controller Adhere to company policies and procedures Communicate changes in equipment and procedures as per customer requests, to ensure safety requirements are properly provided for. Resolve issues concerning customers regarding the enforcement of Government and Company rules and regulations Review findings of accident investigations concerned with operations and follow up when requested by customers. Review reports by outside agency inspections concerning operations in relation to customers accounts. Review safety statistics and provide to as required by the customers contract processes or upon request Negotiate additional needs with customers to provide support resources Controller is responsible for providing support to management, administration and field 3

employees. Participation in certain program functions is required. Perform required accounting functions as required by company and financial reporting regulations Participate in emergency drills and associated activities Report any safety issues observed to Supervisor immediately Provide suggestions to HSE Department on improvements to HSE programs Follow company policies and procedures Operations Management Field Superintendent, Drilling Services Field Superintendent Field Superintendent is responsible for support of safety programs and employee participation. Field Superintendent Responsibilities are as follows: Equipment, safety devices, fire extinguishers and tools are up to standard. Only the recognized Safe Work Procedures are being followed. Provide guidance to All field employees in safety and production areas Review and account for revisions in equipment and procedures to see safety requirements are properly executed. Provide support and resources concerning the enforcement of Government and Company rules and regulations regarding accident prevention Participate in investigations for operations under their charge, in conjunction with the HSE Department, in order to determine all facts related to the occurrence and to establish corrective measures to prevent a recurrence. Review the findings of investigations concerned with operations in their area and see that recommendations made are carried out properly and promptly. Review reports made by Government Inspections and see that prompt and proper action is taken on recommendations. Provide suggestions and guidance to HSE Department when proposing corrective actions on inspections and investigations. Review safety performance of all rigs and give rig managers full support and encouragement in their efforts to improve upon existing records and suggestions to improvements in safety & production procedures or process. HSE Management HSE Manager/Coordinator, Drilling Services HSE Coordinator, Drilling Services HSE Assistant, Drilling Services HSE Manager/Coordinator HSE Coordinator will be responsible for the following: Health, Safety & Environment Manager/Coordinator is responsible for administration of 4

HSE program initiatives. Provide advisory assistance and support to field personnel on related subject matter. Review and revise HSE programs to meet industry and regulatory standards of compliance. Communicate with all levels of Chinook Drilling organization to ensure compliance with industry, regulatory and Chinook Drilling HSE industry. Communicate with management on training minimum standards for employees according to HSE industry, regulatory and Chinook Drilling standards. Communicate with Industry organizations, communicating industry changes for HSE issues to management and revise programs as necessary. Maintain safety statistics and provide reports on safety performance. Complete inspections, investigations and mentoring of Supervisors and HSE support personnel. Coordinate & Supervise WCB claims in each province along with return to work plans for injured employees. Coordinate injury claims with WCB & Third party assistance. Provide guidance on procedures and policies. Develop training initiatives alongside Management to improve compliance and production while meeting safety goals. Coordinate audits and associated activities. Coordinate investigations along with senior and mid-level management in the event of serious incidents such as fatalities and major equipment losses. Notify outside authorities as required in the event of incidents with consultation from senior company & corporate management. Reviews submitted documents from field operations and ensure action to identified items as required. Ensure follow through on action items from investigations and inspections with consultation with Operations Manager, Field Superintendents and Rig Managers. Provide guidance, supervision, support and resources to Assistant HSE Coordinator & Operations HSE Assistance. HSE Assistant Coordinator HSE Assistant Coordinator is responsible for the following: Complete on-site inspections with crew members and Rig Managers Complete on site investigations with support and resources from HSE Coordinator, Operations management and senior management. Provide suggestions and recommendations on corrective actions from inspections and investigations Provide assistance to employees on HSE issues. Complete inventories on safety equipment Facilitate safety meetings with crews and management as needed. Regularly visit all Rig locations to inspect and communicate HSE information. Train crews in specific HSE programs. Regularly discuss HSE issues with management and suggested improvements and recommendations from employees. Communicate daily with operating Rig Managers, discussing HSE issues and communicating to Operations Manager & HSE Coordinator Assist HSE audit activities. HSE Assistant Responsibilities as follows: Provide support to HSE Personnel and Operations Management 5

Organization of employee and company documentation for retention. Assist with inventories for documentation and safety equipment as necessary. Assist in gathering safety related information as required Maintain databases related to safety and personnel as required Provide support for return to work program including assistance with WCB submissions, appointment scheduling and personnel coordinating Assist HSE Coordinators in completing investigation reports & bulletins Inventories of HSE Document booklets and resources for field support. Support to Safety recognition program is required Maintain HSE tracking files and databases Assist with HSE Audit activities as required Assist with contractor compliance databases, regarding document submissions as necessary. (ISNetworld, ComplyWorks, Etc) Assist with HSE Statistics reports Participate in safety discussions and meetings as required Administration Sales Representative, Drilling Services Personnel Coordinator, Drilling Services Operations Assistant, Drilling Services Accounting, All Positions, Drilling Services Sales Representative See Sales Personnel Coordinator Personnel Coordinator(s) Responsibilities are as follows: Recruit & qualify potential field employees for rig crews Communicate with outside training providers to schedule courses, verifying attendance and notification to payroll Review training course expiry dates required for employees Organization of employee and company documentation for retention Communication with Field Supervisors and Rig Managers on personnel requirements for filling positions and in cases transportation. Administer crew trucks, drivers and related documentation Arrangement of crew transportation, such as crew flights and accommodation Participate in safety discussions and meetings as required Review safety related information when communication information is released. Support to Safety recognition program is maintained Address issues concerning the enforcement of Government and Company rules and regulations concerned with human resources issues. Provide support and resources to HSE Department and Field Superintendents for office and field activities. Administration of Rig Technician program and associated incentives programs. 6

Operations Assistant Responsibilities as follows: Provide support to Office Operations reporting directly to Operations Manager. Review training course expiry dates as required Organization of employee and company documentation for retention, including filing documentation. Participate in safety discussions and meetings as required Review safety related information when communication information is released. Assist Operations Manager, Field Superintendent(s) & HSE Coordinator(s) in management functions when necessary General Accountant General Accountant Responsibilities will include: Handle general accounting functions of the division Amortization- Boiler Recertification, BOP Recertification, Insurance and CAODC fees Vehicle leases & registration Provide support to management, administration and field employees. Participation in certain program functions is required. Participate in emergency drills as required Provide safety related input to HSE Department in regards to their job function or other areas they are associated with. Accounts Receivable Accountant/Contract Admin Accounts Receivable Accountant/ Contract Administrator Responsibilities will include: Perform various accounting function as required Draft bids and contracts function of the division Obtain appropriate approvals for contracts Maintain contract database Track and report performance of all bids and contracts Communicate with customers, sales team and field personnel with respect to contract requirements. Draft letters to customers as required by sales team Draft changes to contracts Monitor timely delivery of documentation (contracts, bids, invoices) to customers and timely signing of contracts and other related documentation Monitor expiry and initiate updating of contracts Prepare invoices in accordance with tour sheets and contract requirements Maintain well logs Communicate with Sales team, Field Superintendents, Rig Managers on various issues while maintaining a good working relationship 7

Perform semi-weekly ageing analysis and communicate with controller and customers on any issues while maintaining a good working relationship with customers. Ensure that accounts receivable procedures performed in accordance with established internal control procedures Constant communication with Supervisors and Controller on any issues, concerns or questions Provide support to management, administration and field employees. Participation in certain safety program functions is required. Participate in emergency drills and associated activities Report any safety issues observed to Supervisor immediately Provide suggestions to HSE Department on improvements to HSE programs Follow company policies and procedures Accounts Payable Clerk Accounts Payable Clerk Responsibilities will include: Perform required accounting functions as required by company and financial reporting regulations Communication with Field Superintendents and Rig Managers on various issues while maintaining good relationships Communicate with vendors and resolve any issues while maintaining good relationships with vendors. Constant communication with Supervisor and Controller on any issues, concerns or questions. Provide support to management, administration and field employees. Participation in certain program functions is required. Participate in emergency drills and associated activities Report any safety issues observed to Supervisor immediately Provide suggestions to HSE Department on improvements to HSE programs Follow company policies and procedures Field Management, Drilling Services Rig Manager, Drilling Services Relief Rig Manager, Drilling Services Rig Manager Rig Managers are responsible for the safety of their crew and equipment while in operation. Duties & responsibilities include the following: 8

Direct drillers, crews, subcontractors and other Company employees while on the site in the safe and efficient performance of their rig. Primary company representative while on their specific location Ensure equipment, safety devices, fire extinguishers and tools are up to standard. Safe Work Procedures are followed and that adequate time is spent training employees. Enforce Company and Government rules and regulations specific to accident prevention at the work site. Take appropriate corrective measures against violation of rules See that duties of crew members are individually understood. Encourage employees to report unsafe conditions and practices and to see that prompt and proper corrective action is taken. Ensure safety meetings are held as required by policy (by each crew) at the location or at any time a major change in operations occurs. These meetings shall be attended by each crewmember and by all other parties involved in the operation and shall be recorded in the daily tour and on safety meeting forms. Investigate with drillers and crew members, near miss reports. Investigate with drillers and crew members each incident and immediately contact Operations Management. Report summary of incident with morning report and promptly send summary report Operations Management. Cooperate with Government Inspectors and take corrective action after consultation with Operations Management and to forward a report, including action taken, to Operations Management. Complete orientations with each new employee and ensure that the employee is completely aware of their duties and responsibilities under Chinook Drilling programs, and communicate to each new employee the location of all HSE related information and equipment While acting responsibly, have legal obligation to refuse such duties or orders as, in their own opinion, compromises their safety or that of those around them on the rig. If these incidents occur, they must suspend operations and contact Senior Management, Operations Management and HSE Management for further instructions. Participate in HSE & Preventative Maintenance programs, contributing feedback & suggestions to improve programs. Specific details of Rig Manager Duties will be outlined in HSE program policy and procedures and other supporting documentation. Below is a brief outline of duties: Scout locations & routes Load Out and Move Organize Third Party Drilling Equipment Rig-Up Rig-Up-To-Spud Performs Management and Supervisory Functions Organize Drilling of Surface Hole Participate in Head-Up and Pressure Test Organize Drilling of Intermediate and Main Hole Complete or Abandon Well Prepare to shut down rig Assist Operator s Representative in Completion or Abandonment Prepare to shut down Rig Rig-Out To Rack 9

Rig-Out to Move The above is not an inclusive list of duties; changes depend on scope of operations and operator requirements. Field Crew, Drilling Services Driller Derrickhand Motorman Floorhand Leasehand Driver Optional, Assistant Driller Crew Members Crew members have general responsibilities: Comply with company safety programs and government regulations. Learn and understand instructions before starting to work. Report unsafe conditions or practices to supervision. Clean and Maintain equipment Thoroughly learn his/her job first, and then learn the jobs of those around him/her, in order to understand how his/her actions may affect the safety of others. Participate actively with supervisors in all HSE compliance programs Participate in safety meetings and training. Assist in the training of new employees, when requested by supervision. Ensure use, care and maintenance of personal protective equipment and equipment on each rig site. Report all injuries, and note any first aid treatment on witness statement. Follow Company written policies, procedures and best practices to safely perform all jobs. When change in operations is encountered following safety meeting, ensure Driller or Rig Manager is aware and change is assessed & discussed. Refuse any work or condition that may put themselves or others in immediate danger Driller Duties & responsibilities include the following: Drillers are responsible for the safety of their crew and equipment while in operation. Expected to accept and understand the Safety Program and implement with assistance and in cooperation with the rig manager and operations management. Ensure compliance with all policies and procedures outlined by Chinook Drilling, government agencies and customers as required Give job instruction, including employee training and evaluation which includes but not limited to training the crew on blowout prevention procedures and other emergency procedures. Complete hazard assessments as required by company programs and ensure proper reporting and implementation of corrective actions to maintain a safe work environment. 10

Ensure that rig is kept in a clean, organized and acceptable condition at all times. Ensure prompt reporting of incidents and participate in investigations with the Rig Manager, all incidents on their shift as required. Complete inspections each tour along with completing daily, weekly and monthly meetings and rig inspections with their crew Learn, be knowledgeable of, and adhere to the safety policy, procedures, and practices, as well as governmental safety regulations pertaining to the area of operation. Ensure that crew members, service personnel and visitors adhere to safety regulations and policies. Seek the rig manager s or safety department s assistance as necessary. Primary duty of the Driller is to operate the drilling and hoisting equipment, mud pump(s) associated equipment, electrical generator and HPU equipment. Secondary duties include coordination of rig crew activities with the rig manager and company representative Report any defective equipment to Rig Manager immediately Ensures that crew members are trained in safe performance of their duties and maintains equipment as outlined in company preventative maintenance program and in accordance with management instructions. Ensure all required documents are posted on bulletin board in the doghouse. Review of safety bulletin and acknowledgement forms complete Instruct crew members on form completion and submission Assistant Driller Duties & responsibilities include the following: Give job instruction, including employee training and evaluation. Supervise workers and ensure they are following policy, procedures and best practices. Continuously inspect rig for unsafe equipment, conditions and work practices and correct or report immediately to supervision. Report and investigate with the Rig Manager all incidents on shift, as requested. At the end of the shift, ask each crew member if there have been any incidents or injuries and have each crew member sign off on the tour sheet. Complete inspections of safety equipment each tour. Hold daily or weekly and monthly meetings and rig inspections with their crew Derrickhand Additional duties may be required at the discretion of the Driller. Duties & responsibilities include the following: All work above the drill floor and maintaining proper drilling fluid characteristics, the rate of circulation, mud handling equipment, and preventative maintenance program participation. Learn and be knowledgeable of the safety policy, procedures and practices, and government safety regulations pertaining to their area of operations. Encourage, and participate in weekly safety meetings, rig inspections, and the safety awards program. Encourage fellow crew members and employees to adhere to safety regulations, work practices and policies. 11

Assist rig manager and driller in training fellow crew members in their roles Ensure mud pump and associated circulating equipment is properly maintained and all safety devices and functioning properly and serviced regularly as per established standards Ensure MSDS information is available and all precautions are taken when handling hazardous products. Inform the rig manager and company representative if information is not available for review. Ensure mud properties remain consistent with the drilling program, and in consultation with the company representative depending on well conditions. Assist with preventative maintenance and service to equipment such as crown sheaves, travelling block and other equipment and report any deficiencies to the rig manager and driller immediately Monitor fluid holding tanks and associated equipment and ensure integrity to eliminate or minimize and spills. Any deficiencies report immediately to rig manager and driller. Assist with any corrective actions as necessary. Motorhand The duties of a motorman include but are not limited to the following job requirements. Additional duties may be required at the discretion of the Driller. Primary duty to ensure that all equipment is operating and functioning properly. Complete minor repair work on equipment under instruction and supervision Ensure that all equipment is kept clean preventative maintenance is performed on all equipment. Ensure that all log sheets and maintenance forms are filled out correctly and are up to date on required equipment every tour. Complete daily inspection on all motors, BOP equipment, electrical generating equipment, air compressor equipment, hydraulic operating systems and report any deficiencies immediately to the rig manager and driller. Assist completing corrective actions from inspections, investigations, equipment deficiencies or other duties requested by the rig manager or driller as required, ensuring equipment integrity and protection of other personnel onsite. Visually check electrical generating equipment daily. Inform the Driller and rig manager of any and all abnormalities. Note: Do not attempt to make any corrections prior to consulting the driller and rig manager. All maintenance or repair work should be done by a qualified electrician. Inspect BOP accumulator unit each tour for proper working order Floorhand The Floorhand is normally the starting position on a drilling crew. Their primary duties are to assist the motorman and the Driller on the drill floor during drilling operations. In addition, the Floorhand also performs general duties around the drilling rig. Encourage fellow crew members and employees to adhere to safety regulations, work practices and policies. Ensure that the drill floor is kept clean and orderly. Assist in preventative maintenance on equipment with the rig manager, driller and motorhand with their guidance at all times. Assist in all rig operations with direction of rig manager and driller. Report any equipment deficiencies and unsafe acts to rig manager and driller 12

immediately. Assist in completing corrective actions from inspections, investigations, equipment deficiencies or other duties requested by the rig manager or driller as required to ensure equipment integrity and protection of other personnel onsite. Leasehand The duties of a Leasehand include but are not limited to the following job requirements. Additional duties may be required at the discretion of the supervision. Ensure inside and outside of buildings are kept clean and orderly. Assist in preventative maintenance on equipment with the rig manager, driller and motorhand with their guidance at all times. Assist in all rig operations with direction of rig manager and driller as necessary. Report any equipment deficiencies and unsafe acts to rig manager and driller immediately. Assist in completing corrective actions from inspections, investigations, equipment deficiencies or other duties requested by the rig manager or driller as required to ensure equipment integrity and protection of other personnel onsite. Driver The duties of the Driver include but are not limited to the following job requirements. Additional duties may be required at the discretion of the Rig Manager & Operational Management Ensure inside and outside of crew vehicle are kept clean and orderly. Keep loose articles, including emergency equipment secured inside the vehicle. Complete preventative maintenance on crew vehicle and ensure regular service is completed to ensure optimal performance and reliability. Report any equipment deficiencies and unsafe acts to rig manager and driller immediately. Ensure all traffic rules and regulations are adhered to at all times while travelling on major, secondary or lease roads. Operate vehicle within safe limits for travel and monitor road conditions allowing enough time to arrive at location on time and in a safe manner Use communication equipment while driving in accordance with Chinook Drilling and Total Energy Services policies Ensure proper directions are provided and locations are properly marked to ensure safe travel, and road markers are in place in case emergency services are required. Visitors, Rigs Anyone arranging a rig tour must check with the Calgary office to see if any special equipment is required by the operator or company safety standards. All planned tours should be first authorized by Calgary Operations, Rig Manager and the well site consultant. This must be done to ensure that there are no immediate hazards on the drilling location. E.g. H 2 S. NO ONE shall be allowed to tour around the drilling site without direct supervision by an experienced rig or company person. All basic approved PPE on all sites required: Hard hats, safety glasses, hand protection, protective footwear and Fire Retardant Coveralls. Ear protection must be used when entering high noise areas such as engine areas, on the floor, or generator set buildings. It is impossible to communicate in these areas so pass through quickly and talk outside. 13

All visitors must be supervised at all times unless otherwise authorized by a Rig Manager. Adhere to all Chinook Drilling & TESI policies, practices & procedures at all times Adhere to all applicable government regulations Visitors, Office All visitors must be supervised at all times unless otherwise authorized management Adhere to all Chinook Drilling & TESI policies, practices & procedures at all times Adhere to all applicable government regulations Contractor and Sub-Contractor Contractors and Sub-Contractors working for Chinook Drilling must be aware of hazards pertaining to Chinook Drilling work, facilities and operations. Working for Chinook Drilling in a safe manor is a condition of employment. Contractors and Sub-Contractors will be responsible for: Attending and participating in site-specific orientations and safety meetings in conjunction with a Chinook Drilling Manager or supervisor prior to commencing work. Insisting on safe performance throughout their operations by ensuring their employees are competent to do their job properly. Performing their tasks in accordance to all applicable government legislations and recommended safe work practices. Ensuring themselves and their employees meet with Chinook Drilling safety expectations and adhere to the information and policies within health, safety, and environment programs. Ensuring their programs and operations comply with contractual requirements. Ensure that all employees of the contractor or Sub-Contractor working on any Chinook Drilling locations have been trained to and understand the Alcohol and Drug Policy currently in place. Contractors and Subcontractors must adhere to the requirements of the Drug and Alcohol policy at all times while at the work site, including any owner Client expectations. Have Worker s Compensation Board account province of operation and is in good standing. Clearance Letter must be submitted on annual basis. Provide evidence of past and current HSE performance measurements and statistics when required. Report any and all incident or accidents to Chinook Drilling as soon as possible. In addition, if a subcontractor is involved in an incident Chinook Drilling will report the incident to the Owner Client, ensure the incident is investigated and participate in the investigation. 14

Provide evidence of adequate training and certificates of competency for safety critical tasks and activities or as required by Chinook Drilling. Certificates must be provided to the direct reporting manager. In the event a Contractor or Sub-Contractor does not have established HSE processes or procedures compatible with Chinook Drilling then they shall adopt and use the systems, documents, records and processes currently used by Chinook Drilling. Chinook Drilling shall ensure that all Contractors and Sub-Contractors working on Chinook Drilling locations will be included in any hazard assessments and all pre-job health, safety and environment process and communications for any task or job assigned. Chinook Drilling shall ensure that all subcontractors have been trained to and have accepted the Owner Client s policy and requirements regarding Drug and Alcohol. Chinook Drilling shall ensure that all subcontractors understand that the company will record and report all Drug and Alcohol issues to the Owner Client and shall assist in any investigations of the event by the Owner Client. Each Contractor and Sub-contractor used by Chinook Drilling may be subject to review and analysis of their health, safety and environmental performance at the end of each project. In some cases this can be replaced by an annual evaluation of the contractor or sub-contractor. 15