Safety Briefing

• CPR Certified

• 911

• Exits

• Head Count

• Evacuation Meeting Location

Safety Is our collective responsibility:

we maintain a culture of safety.

Service & Growth Customers create our success.

We can only be as successful as our customers.

Service is what we offer our customers – it is out product.

Growth is necessary to continue our success.

People Our most powerful asset.

Our companies have been built around

good people and expertise.

Asset Utilization Effective use of assets brings service, operational

And financial advantages.

We strive to use all of our resources efficiently – each day.

Cost Control Is an ongoing challenge. We need to continually find more

Efficient processes and cost-effective ways to operate.

“ A Legend on Track”

Northern Plains Railroad (NPR) operates a successful 350 mile regional railroad network in western Minnesota and North Dakota.

NPR exchanges traffic with Canadian Pacific Railway and with BNSF, giving shippers on NPR access the continental rail network and world class ports in both Canada and the US.

NPR’s business has evolved and grown since our inception in 1997 starting out with only 15 people and has grown to more than 160 in 2016.

Norma Tolley

Greene LANSFORD

Russell

CPR

Kramer

Egeland

Calio Alsen

Loma

Nekoma

Fairdale

Adams

Lankin

FORDVILLE

Dahlen

Whitman Devils Lake

Mohall

Johnstown

Gilby

Honeyford

CPR

Northern Plains Railroad

North Dakota

Saskatchewan Manitoba

Minnesota

North Dakota Minnesota

Southam

Calvin

Clyde

BNSF

BNSF

MNR

Bisbee

Rohrville

BNSF

CPR

Service Map

SERVICES PROVIDED

Track Maintenance

• We perform emergency track repairs and preventative maintenance, as well as surface and tie replacement.

• We also offer full support for disaster-related projects caused by washout, flooding, or derailment.

• Repair and maintenance service

Track Rehabilitation

• Railroad tracks move out of alignment and wear out with time and use. At NPRS, we rehabilitate outdated or light rail tracks so they are able to handle longer, heavier locomotives and rail cars.

• We also change out broken and defective rails, remove and reconstruct tracks, repair switches, tighten and replace track bolts, and build up mismatched and profile-grinding railheads, in addition to reconditioning turnouts, switch points, and weld frogs.

SERVICES PROVIDED

New Construction • Northern Plains Rail Services:

• Design and build track, from plans to payload

• Survey and stake for construction

• Prepare drawings and specifications

• Handle grading and drainage work

• Construct track and turnouts

• Redesign existing track layouts for smoother rail car movement patterns

• Design extensions and additional tracks

• Perform feasibility studies

• Design

• Provide preliminary/final drawings

SERVICES PROVIDED

Rail Car and Locomotive Repair Facilities,

Sales & Maintenance Locations

North Dakota Facilities:

• Fordville

• Lansford

• Minot

Minnesota Facilities:

• Erskine

• Randolph

• Duluth

• MSP

Locomotive and Rail Car Repair

• Our locomotive repair and maintenance are performed by our qualified service staff. Services include scheduled inspections, general maintenance, locomotive painting, and electrical work (including rewiring).

• For the convenience of our customers, we offer contract maintenance schedules specifically tailored to each locomotive or switching unit, short-term equipment rentals, and mobile services for repairs and

maintenance on rail cars in field or storage.

SERVICES PROVIDED

Industrial Switching

Turn Key Operations • Minnesota

• North Dakota

• Indiana

• Utah

• Wisconsin

• Canada

We offer a wide variety of switching services

for the movement of railroad cars between

terminal yards, industrial sidings, and other

local sites. Our customer retention is built on

long-term partnerships and our reputation of

providing customers with safe, efficient rail-

switching services. Our safety record is among

the top in this industry.

NPRT

Northern Plains Rail Training

• Classroom

• Field Training

• Testing

• Audits

Industry Audit

CHTRS Dave Armitage Co-founder of CHTRS

Canadian Regulation and what NPRT feels is to come for US industries.

Short Line & Industrial Regulation – A Canadian Model

AN OVERVIEW OF ALBERTA PROVINCIAL REGULATION

Transportation Safety Staff • Dangerous Goods

• 7 Dangerous Goods Inspectors

• Can inspect transload sites for rail compliance

• Will inspect for dangerous goods compliance

• Rail Safety

• 2 Rail Safety Officers

• Will inspect all sites for regulatory compliance

• Will review / verify railway audits

•

Railway (Alberta) Act came into force 2003

Training Program Development – CHTRS – 2004

Industrial Railway Regulations – Jan 01, 2010

Safety Management System – Apr 01, 2011

Railway Audit Program - Jun 30, 2013

Circular 1–2012 Circular 2–2013 Circular 3-2015

Webinars began in 2015

Making Railway Operations Safer In Alberta

Federal or Provincial?

• A railway is regulated by either a province or federally, not both with

the exception when considered to be a local railway company

• A railway that crosses a provincial or territorial border is regulated by

Transport Canada

• Industrial railways, with a siding agreement or that own track, that

operate within the borders of the province are regulated by Alberta

Transportation by way of the Railway (Alberta) Act.

Definition

“Industrial Railway” means a railway that: • transports only goods or commodities that are manufactured, refined or otherwise produced, processed or handled by the person who operates the railway or on whose behalf the railway is operated, and • is operated wholly or in part within the confines of the industrial site on which goods or commodities are manufactured, refined or otherwise produced, processed or handled, and is not operated for the purpose of transporting goods or commodities for a toll or a fee or of being a common carrier

Transload Sites

• 22 crude oil transload sites in operation;

• 3 unit train operations

• remainder vary in size

• Slowdown in crude by rail evident in 2015 for all sized

operations - smaller operations have ceased – track used

for car storage.

• 1 current short line hauled crude until the beginning of 2015

– producers stopped shipping

• Federal transload sites – service agreement

What Are The Alberta Requirements To

Operate an Industrial Railway?

Regulatory Requirements

• Railway (Alberta) Act and Regulations

• Federal Transportation of Dangerous Goods

Act & Regulations

•Provincial Dangerous Goods Transportation & Handling Act

• CAN/CGSB 43.147 – Railway Car Tank Standards

• Alberta Industrial Railway Regulations – Jan. 01/10

Alberta Railway Regulations

• Railway (Alberta) Act – September 01, 2002

• Adopted 22 Federal Rules, Standards and Regulations

• Industrial Railway Regulations

January 01, 2010

• Heritage Railway Regulations

January 01, 2010

• The Railway Administrator must be notified of planned railway works construction by way of a “Notice to Construct”.

New Construction

Operating Approval Application

• All railways must have applied for and received approval from the Railway Administrator prior to the commencement of railway operations.

• Railways that are considered to be non- compliant can be issued an administrative penalty up to $10,000 for each infraction.

Circulars • Circular 1

• Guideline for the transfer of dangerous goods to or from a

railway vehicle. (section 7) • Circular 2

• Guideline for the development of security management

program for the transfer of dangerous goods.

• Circular 3 • Guideline for the long term storage of DG residue cars

Safety Management System

Safety management implies a systematic approach to

managing safety, including the necessary

organizational structure, accountabilities, policies and

procedures.

Introducing Railway Safety Management System in Alberta

• No need to add SMS requirement to the Act as it was already in

place

• SMS development – included stakeholder consultation

• Existing SMS’s reviewed included:

Federal rail & aviation

• Other provinces rail SMS (British Columbia)

• Prescriptive – over 300 submissions – 98% return rate

• All railways must have submitted their initial SMS by

April 01, 2011

• Must audit their SMS annually

All railways under provincial jurisdiction must have a

Safety Management System accepted by Alberta

Transportation

Operating approvals are not issued before the Safety

Management System is accepted

Safety Management System

General Operating Instructions (GOI)

• Every company is required to submit a GOI for their rail operation as part of the safety management system.

• The GOI will vary by complexity of the railway operation but must accurately give rail employees proper instruction to allow for a safe railway operations.

• The GOI must contain railway instructions only. Product transfer and OH&S are not included in the GOI. Other site specifics are.

Safety Management Systems Are Working

• Conversations with industry indicates they have a better

understanding of what is required to run a safe railway operation (forced to develop)

• Makes good business sense, SMS implemented at other company locations outside Alberta

• No major derailments - injuries or fatalities since the SMS requirement came into force

• Measurable by annual audits

SMS AUDITS

SMS Audits must be conducted annually

Every three years a third-party audit must be submitted with the Operating Approval application

Audits must be conducted using approved protocols

Protocols can be found on the Rail Safety Website

Leading In Canada

Alberta leads the way in Canada and in North America

• No Cost Operating Approvals

• Regulatory Development by Collaboration

• Regulation specific to the industrial/short line railway operation

• Safety Management System & GOI

• Circulars 1, 2 and 3

• Annual Self and External Audits Every 3 Years

NPRT US Training Services

Steve Fry Regional Manager Twin Cities

Training Services We at Northern Plains Rail Training want to become your training provider of choice and a key partner in the training and development of your employees in the safe and efficient handling of rail equipment.

We are professional dedicated Railroaders with a proven Safety record in the Railroad Industry.

Locations

• North Dakota

• South Dakota

• Minnesota

• Wisconsin

• Iowa

Completed courses in Texas and Oregon as well.

Instructors

Our Instructors have decades of hands on experience that provide training to industries and railroads across the US.

• Steven Fry – 27 years

• Tom Onan – 40+ years

• Kim Johnson – 40 years

• Derek Muir – 15 years

Training Modules • Core Safety

• Freight Car Inspection

• Car Air Brakes

• Car Securement

• Rail Car Mover (RCM) Operation and Inspection

• Switching Operations

• SOFA

Coming Soon – Distributed Power

SOFA Switching Operations Fatalities Analysis

Nationally there have been 202 fatalities in railroad operations since inception of recording statistics in 1992. This figure is based on records thru December 2016.

Severe Injuries January 1997 – 2016 = 1,921

Amputations January 1997 – 2016 = 257

Analysis indicates fatalities are typically the result of: • Lack of Communication

• Miscommunication

• Being Inattentive

• Unexpected Movement of Equipment

• Limited Training and Experience