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Course 900 - Oil and Gas Safety Management

Safety guides and audits to make your job as a safety professional easier

Working with Contractors

contractor

Oil and gas contractors are responsible for ensuring that all work under contract meets or exceeds the OSHA standards in addition to complying with the company’s safety and health standards. The contractor is responsible for ensuring safe work performance of employees and subcontractors.

Oil and gas contractors provide a variety of oil and gas services, including:

  • wellsite construction and maintenance activities
  • utilities and infrastructure construction
  • property maintenance
  • training and consultation
  • installation, testing, calibration, repair, and maintenance of equipment and instruments

All of these work activities must be performed safely and in accordance with the applicable safety codes, standards and regulations.

1. Which of the following safety standards must oil and gas contractors ensure compliance with under the contract?

a. DHS and OSHA standards
b. BSEE and OSHA standards
c. OSHA and company standards
d. Company and NIOSH standards

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Contractor Communications

goals

It’s important that the employer involve communications about safety in all phases of the oil and gas project. From the time the project is conceived until it is finished, safety must be a part of the process.

During the Pre-Award phase, requirements are developed, solicitations are sought, contractors are selected and contracts are awarded. The employer should engage in all of the following key safety-related efforts during this phase:

  • consider the contractor's past performance during the contractor selection process.
  • establish appropriate safety and health requirements in contract specifications.
  • ensure the inclusion of applicable safety and health clauses in contracts.

2. Which of the following is NOT part of the Pre-Award phase of the oil and gas project?

a. Identify potential hazards during the project
b. Consider the contractor's past performance
c. Establish appropriate safety and health requirements
d. Include safety and health clauses in contracts

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The Pre-Bid Meeting

In the Pre-Bid meeting, contract safety requirements should be discussed, including:

goals
  • site specific safety plan
  • designated safety representative identification and requirements
  • daily pre-work coordination meetings
  • safety enforcement policies and procedures
  • drug screening
  • identification of potential hazards
  • defining hazard control responsibilities

3. During the Pre-Bid meeting, which of the following contractor safety requirements is discussed?

a. Employee recognition benefits and incentives
b. Safety enforcement policies and procedures
c. Human resource recordkeeping guidelines
d. Safety and health management concepts

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The Pre-Mobilization Meeting

During the pre-mobilization meeting, the following should be discussed:

  • Contractual safety requirements
  • Site-specific safety plan
  • Pre-Phase work plan discussion
  • Requirement for daily pre-task meetings
  • Requirements for safety talks, and worker and supervisor training
  • Confirm assignment of safety responsibilities

The roles, responsibilities, accountability and authority of the owner, general contractor and all contractor personnel should be discussed.

4. During the pre-mobilization meeting, which of the following should be discussed?

a. Total case incident rates (TCIRs)
b. Employer past citations and safety performance
c. Requirements for safety talks, worker and supervisor training
d. Experience modification rates (MODs)

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Contractor Selection Criteria

It’s traditional to select oil and gas contractors based on three criteria:

goals
  • low bidder
  • lower bidder
  • lowest bidder who can start now

However, in a world-class oil and gas company that understands the importance of safety, they will not make a decision based solely on cost.

Those companies will use the following criteria:

  • Total Case Incidence Rate (TCIR)
  • Experience Modification Rate (EMR) of less than 1.0
  • past safety performance
  • site-specific safety plan development
  • key management and worker experience

5. A world-class oil and gas company that understands the importance of safety-related will NOT make a safety decision based _____.

a. low bid
b. solely on cost
c. total case incident rate
d. environmental hazards

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Experience Modification Rate (Mod Rate or EMR)

goals

Experience Modification Rate (EMR) has strong impact upon a business. It is a number used by insurance companies to gauge both past cost of injuries and future chances of risk. The lower the EMR of your business, the lower your worker compensation insurance premiums will be. An EMR of 1.0 is considered the industry average. (Source: Safety Management Group).

According to the Michigan Oil and gas Users Council (MCUC), the following EMR chart indicates the relative effectiveness of a contractor’s SMS.

0.30 - 0.71 = Superior – Distinguished results
0.72 - 0.81 = Effective – Impressive results – Obvious commitment
0.82 – 1.04 = Average – Within industry norm
1.05 – 1.29 = Inadequate – Conspicuous past problems
1.30 – 2.05 = Poor – Lack of safety involvement

As you can see, safety is a serious consideration when choosing contractors to work on the oil and gas project. Using these criteria will not only result in selecting a higher level of contractor safety, it will also result in selecting a contractor that will be more professional in all aspects of the contracted work that will be performed.

6. Which of the following Experience Modification Rate (EMR) ranges indicates that the contractor has the most effective SMS?

a. 0.30 - 0.71
b. 0.72 - 0.81
c. 0.82 - 1.04
d. 1.05 - 1.29

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Total Case Incident Rate (TCIR)

The Total Case Incident Rate, or "TCIR" is a common method used to report workplace injuries. It is defined as the average number of work-related injuries incurred by 100 full-time-equivalent (FTE) workers during a one-year period. Use of the TCIR to report workplace injuries allow comparison of accident and injury statistics across industries, among industry segments, and from one year to the next.

The TCIR is typically calculated as follows:

TCIR

For example, if an employer with 500 workers reported 10 injuries in 2013, and workers in that company worked 1,000,000 hours that year, then the 2013 TCIR for that employer would be:

TCIR

7. The 200,000 value in the TCIR equation is defined as the average number of work-related injuries incurred by _____.

a. all FTE workers during a one-year period
b. 100 FTE workers during a one-year period
c. all FTE workers during a 3-year period
d. 100 FTE workers during a 3-year period

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Key Players

goals

The contractor, the owner, general contractor, project manager, site superintendent, and safety manager, should all have:

  • previous experience on similar type oil and gas projects
  • previous experience on projects of similar size
  • a history of success on previous projects

All managers on the oil and gas site should be competent in safety management. Workers should be competent in the work they are performing. Heavy equipment operators should all be able to show written documentation providing proof of competency. Also, a trained on-site healthcare provider or nurse should be present on large projects (more than $75 million).

8. Which of the following is an important qualification that helps to ensure all contract managers are competent?

a. Accreditation by a recognized construction board
b. Experience in management in general industry manufacturing
c. At least 3-years experience on construction projects
d. A history of success on previous projects

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Project Designers

policies

Project designers that are involved in the oil and gas phase should do the following:

  • Identify the impact of changes in your design on the health and safety of those involved in the project.
  • Provide sufficient information on health and safety associated with your design and planning to those who need it, so they can conduct the necessary training if needed.
  • Cooperate and coordinate with the contracted parties, and, where appropriate, other designers/advisers involved in the project
  • Provide ongoing advice and information, if requested, regarding the head contractor’s health and safety plan (such as by advising of any changes to planned activities).
  • Make sure other designers/advisers and contractors continue to carry out their duties and co-ordinate with others on the project (such as by asking for regular written activity reports or holding site meetings).

9. Who should provide sufficient information on health and safety design and planning to those who need it so they can conduct required training?

a. The designated government official
b. The employer
c. The Site Safety and Health Officer
d. The project designer

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Head Contractors

The general or head contractor on site should do the following:

policies
  • Develop and carry out a site-specific health and safety plan.
  • Make sure any contractor engaged to carry out oil and gas work is competent and has made suitable provisions for health and safety.
  • Obtain and check site-specific safety plans from subcontractors.
  • Make sure the coordination and cooperation of subcontractors regarding:
    • information and on-site activity (such as site meetings, site procedures)
    • appropriate communication arrangements between contractors on site for health and safety
    • arrangements for discussing health and safety matters with people on site (such as setting regular toolbox/tailgate meeting times)
    • incident and accident reporting
  • Make sure training for health and safety is completed.
  • Make arrangements to monitor health and safety performance (such as reports, audits and inspections).
  • Make arrangements to pass on information from the client or designer/adviser to other contractors and employees (such as activity reports).
  • Make arrangements to control visitor access, including such things as delivery of materials.

10. Which of the following should be a responsibility of the head or general contractor?

a. Communicate recordkeeping statistics to the department of labor
b. Arrange toolbox/tailgate meeting times to discuss safety
c. Coordinate with OSHA to conduct inspections
d. Ensure discipline whenever accidents occur

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Subcontractors

Each subcontractor on site should do the following:

  • Develop a site-specific safety plan for your work activity.
  • Identify the hazards of your work, assess the risks arising from them, and tell the head contractor and client about how these risks will be controlled.
  • Obtain evidence of the training and competence of your subcontractors and employees.
  • Keep the head contractor informed of any dangerous incident or accident.
  • Provide the head contractor with the information needed for health and safety management.
  • Cooperate with the head contractor and other contractors on health and safety matters.
  • Follow any directions of the client or head contractor so that they can meet their obligations.
  • Provide information and training to your employees on site.

11. Which of the following is listed as an important responsibility of the subcontractor?

a. Communicate recordkeeping statistics to the department of labor
b. Arrange toolbox/tailgate meeting times to discuss safety
c. Coordinate with OSHA to conduct inspections
d. Ensure discipline whenever accidents occur

Check your Work

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