1 January 2012 CONFIDENTIAL

Appalachia Projects Team Core Contractor HSSE Meeting

July 29, 2014

Shell Appalachia Wellsboro Campus

2 CONFIDENTIAL

AGENDA

Breakfast

Introductions and Recognition – Craig and Ronald

Shell Appalachia 2014 Charity Golf Tournament results

“Goalie of the Month” presentation – Lori and Martina

HSSE incidents, “Goal Zero” report and the Q2 Contractor Perception Survey results – Josh Pritchard

Construction Site Safety Standardization – Pat and Craig

Break

Success is in the Basics - Life Saving Rules, BBS, Short-Service employees, www.uacontractor.com external website

“Bonded Routes” website and Road Transportation Safety – Cory Kodish and Matt Burdick

Q&A and wrap up - Craig

2

3 CONFIDENTIAL

Appalachia Safety Council Charity Golf Tournament

Partners in Progress/Highland Chocolates - Established in 1997, Partners In Progress, Inc. is committed to people with disabilities to develop and implement vocational, residential and social activities to improve the quality of life for all within our communities. Highland Chocolates is owned and operated by Partners In Progress and currently employs 5 Staff Members and 20 individuals with disabilities.

3

Shell Appalachia and our contractors raised a total of $50K, after expenses!

CONFIDENTIAL Restricted

Arnold Yon – Crossfire Brent Mason – Crossfire Benny Byeley – Crossfire Justin Parnell – Crossfire Josh Rush – Crossfire Jeff McCoy – Crossfire

Dan Kohlman – JL Watts Troy Christensen – JL Watts Rich Pequignot – Pequignot Logging

Nominees

CONFIDENTIAL

Rich used his stop work authority to tell Bob Burkett and Josh VanDergrift of Shell about a potentially hazardous road condition. The intersection would have posed a rollover risk for his chip trailer.

Rich Pequignot Pequignot Logging

CONFIDENTIAL CONFIDENTIAL

AUDIT FINDINGS

6 8/12/2014

Audit Finding Your Actions

Back-Up Alarm Not Working on Earth Moving Equipment

Review the Guidance Letter and Follow Expectations

Meet and Greet not established a safe distance from the work area. Impacted by noise.

Ensure that the meet and greet area is outside a hazardous noise area for the location.

First Aid Kits with out of compliant items.

Establish an audit procedure to ensure that FA Kits are being checked weekly. This is to be presented to your Contractor Holder prior to August 20th.

GOAL ZERO REPORT

CONFIDENTIAL

GOAL ZERO - NO HARM… NO LEAKS. APP PROJECTS 7-28-14

Total Incidents 2014

Days Since Last Event

LWC 0 522

RWC 0 629

MTC 0 1295

FAC 0 292

LOPC 1 69

NM 1 118

PLD 3 53

MVI 0 563

RTE 0 301

NTC 0 686

UAC 0 474

LSR 0 227

*Data collected from FIM - 01/01/14 through 06/30/14 on 7/1/14

TRCF = 0

LTI = 0

CONFIDENTIAL Unconventional Americas 10 March 2013

Since April 1 through July 27, 2014

Drills – 7

PLD – 3

NM – 1

LOPC – 1

NWR - 1

INCIDENT REVIEW

CONFIDENTIAL Unconventional Americas 11 March 2013

INCIDENT REVIEW

NM - EMPLOYEE SLIPS ON ENV. MATTING

DRILL - MAN DOWN GAS RELEASE

DRILL – TABLE TOP FALL FROM HEIGHTS

LOPC – HYDRAULIC LINE FAILURE

PLD – TELEPHONE LINES CUT DURING EXCAVATION

DRILL – MUSTER

DRILL – MUSTER

CONFIDENTIAL Unconventional Americas 12 March 2013

DRILL – MUSTER

PLD – KEEPER PIN DAMAGED WHILE MOVING SKIDS ON TRAILER

DRILL – MUSTER

DRILL – TABLE TOP HEAT EXHAUSTION

PLD – TRUCK DOOR SCRATCHED

NWR – CONTRACTOR FELT ILL

INCIDENT REVIEW

CONFIDENTIAL Unconventional Americas 13 March 2013

An excavator was being fueled and serviced by a worker. The worker completed the service, secured the service truck, and walked to another task - leaving the service vehicle parked beside the excavator. The excavator operator re-entered their machine and proceeded to swing the boom to the left causing the counter weight to contact the headache rack on the parked service truck.

LFI REVIEW

CONFIDENTIAL Unconventional Americas 14 March 2013

LFI REVIEW

CONFIDENTIAL Unconventional Americas 15 March 2013

While attempting to load two pipe racks simultaneously onto the low boy trailer, the forklift operator inadvertently overshot the pin due to minimal height of the bed pin. The spotter was not positioned in a location to see the pin. As a result, one of the pipe racks, weighing approximately 1500lbs fell 3 ft. to the ground. The job was stopped. Due to the stringent exclusionary zones during this type of job task, no one was in the adjacent area.

LFI REVIEW

CONFIDENTIAL Unconventional Americas 16 March 2013

LFI REVIEW

A contract worker was fatally injured after being struck by a skid

mounted load during truck loading operations at a Groundbirch

well site.

The worker was struck by the load while involved in the loading

operation.

The Emergency Response system was activated, Medivac Air

Ambulance was dispatched, but despite receiving medical

attention, the worker could not be revived.

PERCEPTION SURVEY REVIEW

CONFIDENTIAL Unconventional Americas 18 March 2013

What is perception?

Perception is reality

There are things known and there are things unknown, and in between are the doors of perception. Aldous Huxley

CONFIDENTIAL

QUESTION REVIEW FROM MANAGEMENT

1. My feedback to the craft on incidents and trends that occur on the project is being shared and received effectively. Favorable Responses

2. Goal Zero is achievable. Favorable Responses 3. As management, I visibly and actively drive safety from the top down to the

field. Favorable Responses 4. My company’s management is familiar with the safety requirements

contained in the Shell HSSE management procedures. Favorable Responses

5. We manage our sub-contractors like we manage our people. Favorable Responses

CONFIDENTIAL

6. As leadership in my company, I support my crews in their decisions related to safety. Favorable Responses 7. I find value in our weekly safety meetings. Favorable Responses 8. Schedule sometimes takes priority over safety on projects. Mostly favorable responses with one form as agree. 9. I see a continuous improvement in my company’s safety program. Favorable Responses 10. My company provides the needed training to safely perform the job. Favorable Responses

QUESTION REVIEW FROM MANAGEMENT

CONFIDENTIAL Unconventional Americas 21 March 2013

In Summary (Management):

27% reduction in from last survey

Management believe Goal Zero is achievable

Managers are open to safety decisions of crews

Management believes they manage subs as themselves

Weekly safety meetings have value to Contract company

Schedule over safety has improved compared to previous surveys

Management believe they see safety improvements within their company

Management believe they provide the needed safety trainings

CONFIDENTIAL

QUESTION REVIEW FROM FIELD PERSONNEL

1. Goal Zero is achievable. Favorable Responses 2. I am committed to achieving zero incidents. Favorable Responses 3. Schedule sometimes takes priority over safety on the project.

Favorable Responses 4. Our company’s management is visible and actively participates in the safety

process. Favorable Responses 5. My field manager is fair, firm and consistent when applying safety rules in

the field. Mostly favorable responses, one disagree. 6. My field manager seeks opportunities to give positive recognition to crew

members when they meet/exceed expectations. Favorable Responses

CONFIDENTIAL

7. My management supports me in my decision with safety. Favorable Responses 8. I am familiar with the consequences of violating a life saving rule. Favorable Responses 9. In the past 12 months I use more safe behaviors. Favorable Responses 10. I believe I can intervene or stop the job without getting in trouble. Favorable Responses

QUESTION REVIEW FROM FIELD PERSONNEL

CONFIDENTIAL Unconventional Americas 24 March 2013

In Summary (Field Personnel):

42% reduction from last survey

Schedule v. Safety improved

Field personnel believe Goal Zero is achievable and are committed to working toward it

Field personnel appreciate proper enforcement of safety

Field personnel believe their management supports their safety decisions

Life Saving Rule violation consequences must be known to all

One individual strongly disagreed with the ability of Stop Work Authority

CONFIDENTIAL

How can these survey’s improve your business?

CONSTRUCTION SITE STANDARDISATION PROGRAMME

PTP/U – UPDATE

26 September 2013 Restricted

CONFIDENTIAL

THE END IN MIND

27

GOAL ZERO

Sites LOOK the same • Site set-up and facilities

based on standard principles

• Consistent branding

in signage and materials

• More visual

project management

•Teams understand how

to access & use standard

materials/tools, developed

from best practice

• Formalized learning

on and between projects Sites KNOW the same

• Everyone feels

proud of their safety

performance and connected

to a global community

• Everyone feels able to

intervene

Sites FEEL the same

Sites DO the same • Hazardous Activity and Safe

Practice standards

understood and implemented

• Consistent approach to

construction safety

management

CONFIDENTIAL Restricted

ESTABLISHING A SET OF STANDARD GLOBAL SAFETY REQUIREMENTS ACROSS PROJECTS

28

CASE FOR ACTION:

• The same, specific activities are

hurting people, repeatedly

(TRC’s and HIPO’s)

• Construction sites across projects are

not consistent in the way they look

and the way in which key HSE

activities are performed

• Project staff are sometimes not

efficient as they re-invent the

wheel/re-learn and spend

unnecessary time searching for

materials on a specific topic

• Contractors are faced with an

inconsistent approach by different

Shell project teams

OBJECTIVE OF OUR WORK:

• Eliminate harm by embedding a set

of standard working practices focused

on high risk and high frequency

incidents

• Achieve consistent branding across

the Projects business by establishing

a consistent approach to site safety

management

• Reduce waste and streamline

processes by providing a clear HSE

activity roadmap supported by a

structured repository of standard

materials/ aids to deliver the above

• Improve experience transfer and

learning

CONFIDENTIAL Restricted

THERE ARE TWO ELEMENTS TO THE PROGRAMME

2. Safety Roadmap and Site Safety Management Guidelines

• Focused on achieving greater consistency in the way we manage safety on sites

• Recommended for all projects to evaluate the Safety Roadmap to assess which activities will enhance the project’s current site safety management approach

1. Hazardous Activity and Safe Practice Standards

• Focused on achieving safer working practices for everyone

• Complements the Life-Saving Rules and builds on the HSSE & SP Control Framework

• Mandatory across Mode 1 and 2 Projects

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CONFIDENTIAL

1. HAZARDOUS ACTIVITY & SAFE PRACTICE STANDARDS

A set of MANDATORY standards, applicable to all Mode I and Mode II sites

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Hazardous Activity

Standards:

1. Confined Space Work

2. Excavations

3. Heavy Equipment and Vehicle

Operations

4. Hot Works

5. Lifting and Hoisting

6. Safe Isolation of Energy

7. Scaffolding and other forms of

access

8. Simultaneous Operations

9. Working at Height

Safe Practice Standards:

A. Barricades and Open Holes

B. Housekeeping

C.Line of Fire

D.Personal Protective Equipment

(PPE)

E. Routine Life Tasks

CONFIDENTIAL

HAZARDOUS ACTIVITY STANDARDS

1. Fall arresting systems must consist of a full body harness, personal Dual SRL or two shock absorbing lanyards, self-locking snap hooks. You must be trained before installing or using any fall protection equipment.

2. 100% tie off is required if outside the protected area. Lanyards must be attached to an anchorage that can hold 5,000 lbs and be approved as a tie-off point. The tie off point must be above the work activity.

3. Identify potential hazards for dropped objects and manage dropped objects using tool lanyards. 4. Ensure that the area below is barricaded off with red tape and tags with information about the

hazard, duration of the work and person responsible. 5. Ensure a fall protection recovery plan is in place prior to working at height.

• Verify that everyone working at height has been trained to use or install fall protection equipment • Assign a competent person to carry out inspections of fall protection equipment and ladders before

they are used • Check that scaffolds, mobile work platforms and equipment for lifting people are in line with

Internationally recognized standards • Do not allow chain or rope ladders to be used unless all other means of accessing the work are not

possible

31

Working at Height

EVER

YON

E LE

AD

ERS

•Ensure that all floor openings have

covers that are secured, can hold

twice the expected load and are

labelled “Hole Cover”

EXAMPLE

CONFIDENTIAL

THE TEAM’S CURRENT FOCUS

32

Quick Wins: • Developing materials to support Asset implementation • Engaging with asset teams with updates and the path forward expectations • Rollout the Hazardous Activity and Safe Practice Standards across the business, visual

and toolbox information • Meet with support functions to raise awareness to the CSSS implementation process

(CSMP, CP, etc)

Implementation: • Using current tools (ISN, Contractor Portal)for engaging our contractors (mode 1 and

2) • Robust rollout plans from the asset to be included in the 2014 HSSE plans • Assurance that we have embedded the process effectively across the business • Apply for derogations if required in Q4

CONFIDENTIAL

SUCCESS IS IN THE BASICS

33

July

2013

CONFIDENTIAL

SUCCESS IS IN THE BASICS!

12 Life Saving Rules – Craig Short Service Employee (SSE) policy - Pat Behavior Based Safety (BBS) – Lori External Shell Contractor website - Martina

http://us.uacontractor.com/

34 8/12/2014

http://www.drillingcontractor.org/astronaut-over-time-normalization-of-deviance-will-lead-to-lower-standards-27749

“Normalization of Deviance” – Astronaut Mike Mullane talks about

prevention of the “predictable surprise”

CONFIDENTIAL

BACKGROUND – THE 12 LIFE SAVING RULES

They are the core element of Shell’s “Goal Zero” standard. What is “Goal Zero”?? (last slide) Introduced in 2009, we looked back 8 previous years and documented 350+ contract and staff fatalities. This ranked very high among major O&G producers for that period of time. The majority of the fatalities were direct results of disregard for processes and procedures already in place. Consequence management for disregard was typically weak. We looked at the leading risks associated with these fatalities and landed on12 high risk areas, resulting in the “12 Lifesaving Rules”

35 Footer

CONFIDENTIAL

BACKGROUND

We’ll stay the course with the existing 12 LSR’s and they will not change, nor will the consequences for violating them. Our “goal” is to move even more to a focus on genuine “caring” about saving lives vs. the emphasis weighted towards the consequences of non-compliance. Statistics in 2013 show that more than 30 lives have likely been saved already by compliance with the 12 Lifesaving Rules and 2013 was Shell’s safest year ever!

If you choose to NOT follow the rules, you choose to NOT work for Shell.

36 Footer

CONFIDENTIAL

What is “Goal Zero”?

We measure Goal Zero by the number of “zero” days. We maintain two Goal Zero counters, one for “no harm” and the other for “no leaks”. At the Group level, a “zero” day is one when there are:

(a) no work-related fatal incidents or other significant incidents impacting employees or contractors at Shell Operated Ventures,

(b) no work-related significant environmental incidents

WHAT IS A BEHAVIOR BASED SAFETY PROCESS?

Brief Presentation on the BBS Process

Lori Zeafla HSSE Technician

CONFIDENTIAL

WHAT IS A BBS PROCESS

•Behavior-based safety is the application of behavioral psychology to promote safe behavior in the workplace using employee involvement. It involves initially identifying practices (behaviors) critical to reducing the risk of injury. These practices and behaviors are then compiled into a checklist that employees use to collect data on safe and unsafe practices within the organization. Finally, employee teams analyze data gained from observations to develop action plans that promote continuous improvement in safety.

One of the biggest challenges in safety is getting people to do what they are supposed to do

CONFIDENTIAL

2013-14 YTD Unconventionals Data (US &

CAN)

This month the focal team identified Personal Protective Equipment as

our #1 hazard.

January Observation identifying this concern: TASK: UNLOADING MATERIAL AT 8 PLEX FOR TRANSFORMER

WHAT: ONE PERSON DIDN’T HAVE GLOVES

WHY: THEY WERE WET AND THEY WEREN’T ABLE TO USE

SOLUTION: PROVIDED PERSON WITH NEW PAIR OF GLOVES

Suggested Actions provided by the BBSM Team

WHAT WHO WHEN Glove use is a cultural issue.

Implement PPE campaign across the

Projects group. Begin implementing in

crew safety meetings.

Shell and

Contractor

Leadership

JANUARY

Conduct leadership tours highlighting

PPE use during the month of February. Site OSR

and

Supervisors

JANUARY

Conduct BBS observations based

around PPE for month of February. BBSM STR JANUARY

Action Items: Chronic Unease – Revisit

what chronic unease means and how it

applies to our field work. Actions Taken: Reviewed with contractor leadership in Safety days in Fresh Start in January 2014. Chronic unease will be reviewed with crews again as we begin to ramp back up.

Shell and

Contractor

Leadership

DECEMBER

Revisit with crews the need to make

sure all buffer zones and spotters are

in place before proceeding with work. Actions Taken: Reviewing Spotter training to ensure all spotter signals compare across the board.

BBSM

STR, Site

OSR and

Supervisors

DECEMBER

Complacency of ongoing hazard

recognition - conduct hazard ID walk-

through surrounding dropped objects Actions Taken: Implementing a hazard id walk thru prior to starting work on any location that has the possibility of dropped objects,

BBSM STR DECEMBER

Barriers are “Low Consciousness of Hazards” and “Knowledge or Training”.

2013: Upper

Extremities: 39.38% of

total incidents:

2014: Upper

Extremities: 33% of total

incidents:

**Need to increase

use of PPE and

observations

regarding regular

PPE use

EXAMPLE OF TRENDING & ACTION PLANS

CONFIDENTIAL

BBSM IN APPALACHIA

Appalachia uses a contractor management style approach to BBSM

• Contractors develop their own BBS Process

• Shell Construction in Appalachia has a BBS Team to review contractor data.

• Mid Quarter the Shell BBS Team with Contractor Representatives meet and review

trending data.

• At the end of each quarter the BBS Team and Contractor Representatives meet and

review trending data and proposed action plans to address identified failures of

behaviors.

• Action plans are shared allowing for cross company learning of what is

successful vs what is not.

• At the end of each quarter, contractors review their data and action plans at the

Core Contractor meetings.

• Observations made by Shell employee’s are tracked in the BBSM Data base. The

observation card is then given to the contractor in order for the data to be tracked by

the contractor.

•UACONTRACTOR.COM BONDED ROUTES WEBSITE

42 July 2014

Use this area for cover image (height 6.5cm, width 8cm)

Cory Kodish Shell Appalachia

CONFIDENTIAL

WHERE WE WERE…

— Spring of 2011 Shell Appalachia had 11 rigs running in Tioga County.

July 2014 43

Miscommunication, poor

infrastructure and lack of

understanding of the

local regulations and

surroundings lead to

heavy damage to roads

in the area.

Damaged roads led to

strained relationships with

PA DOT and local

municipalities.

CONFIDENTIAL

REACTIVE VS. PROACTIVE

— Due to the overwhelming amount of traffic and damage, road crews were on call 24 hr/day.

July 2014 44

This created a major safety

hazard for construction

crews, Shell related

activities and most

importantly the public.

CONFIDENTIAL

IDENTIFYING THE ISSUES…

1. Miscommunication! 2. Lack of understanding of the possible hazards i.e. School zones,

congested areas, tight or blind turns as well as poor existing infrastructure.

3. Lack of a central location for all contractors across the asset to get up to the minute information on road conditions and routes.

45 July 2014

PROACTIVE APPROACH: GET INFO INTO THE HANDS OF THE CONTRACTORS!

CONFIDENTIAL

Options evaluated by Projects Team and a

bonded route is determined (Jeremy or

Cory’s group)

Jon Snyder procures state bonds (where required)

Bonded Route Publication Process & Website Access Maintenance

Pad site proposed / site added to build schedule

Bonds are established and route has been approved

Shell Logistics to request additions and deletions to the Road User’s Website access

via the Rettew HelpDesk

Shell Actions – Projects & Logistics Rettew Actions

Update Shell Bond List document and upload to Road User’s Website

Projects Team to communicate new route info to Rettew HelpDesk, cc Shell

Logistics

Build formal bonded route in standard

Rettew format – upload to Road User’s Website

Notify Shell Logistics once website update

with new Bonded Route

Notify Shell Logistics once website updated with new Bond Info

Update Shell Access List, generate

passwords and distribute to applicable

website user

Provide monthly report to Shell reflecting

current access roster for contractors

Jon Snyder communicates new bond info to Rettew HelpDesk, cc Shell

Logistics

Shell Logistics Rettew HelpDesk hugh.knight@shell.com tim.mcmahon@shell.com randy.starcher@shell.com

greidel@rettew.com

CONFIDENTIAL

THE PROACTIVE APPROACH

— Utilizing UACONTRACTOR.COM

July 2014

47

Click here for Appalachia specific

info.

CONFIDENTIAL

BONDED ROUTES WEBSITE

48 July 2014

For Bonded Routes: click on

this link.

CONFIDENTIAL

BONDED ROUTES: LOG IN

July 2014

49

New Contractors must acquire a Username and Password prior to

accessing the Bonded Routes link.

CONFIDENTIAL

APPALACHIA ROAD USERS GUIDE

July 2014

50

Along with the bonded routes, authorization letter, interactive mapping and road

safety material, we are also posting the traffic plans for the various mobilizations

going on throughout the asset.

CONFIDENTIAL

APPALACHIA ROAD USERS GUIDE

51 July 2014

CONFIDENTIAL

APPROVED ROUTES

52 July 2014

One tip: Any snippet of a string of text is searchable.

On the pages that are tables (Approved Routes, Intersection assessments, Roadway Videos),

the column headers are clickable. They sort that table alphabetically, A-Z. Clicking it again

reverses the sort, Z-A.

CONFIDENTIAL

INTERACTIVE MAPPING

53 July 2014

CONFIDENTIAL

INTERACTIVE MAPPING

July 2014

54

Provides detailed information on Road Conditions, School Zones,

Posting and Bonding information etc…

CONFIDENTIAL

DOMINION CONNECTOR UPDATE

July 2014

55

CONFIDENTIAL

TRAFFIC PLANS AND OPS UPDATES

July 2014

56

Provides Completions Updates, General traffic plans, Road Construction updates and Holiday

restrictions.

CONFIDENTIAL

“SHARE the ROAD” Matt Burdick – Road Transport Tech

58

Wrap it up………………. Next Core Contractor meeting is August 28

Contractor Presentation volunteer for September is ????

The “E” in HSSE – Environmental controls in construction

HSSE Improvement Plan review

Near-miss reporting

Actions to take back to your team: Review the CSSS material and implement use

Promote the “Goalie of the Month” program

Continually reinforce the 12 Life Saving Rules to your team

Use the uacontractor.com website

Don’t forget to sign the roster

And last of all, be careful exiting the property and entering Route 6!

confidential

CONFIDENTIAL