EHS Manual

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Environmental, Health

& Safety

(EH&S)

Manual

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Environmental Health and Safety Manual

Policy No. 000 Policy Title: Table of Contents

Date: 3/30/2006 Revision: 1 Approval: Richard Wolf

Front Matter

EHS Manual Revision Sheet EHS Manual Audit Sheet

Section 100 Administrative Policy

Date / Revision

Policy Number EHS-101 EHS Policy 03/30/06 Rev 1

Policy Number EHS-102 Medical Records 03/30/06 Rev 1

Policy Number EHS-103 General Site EHS Rules 03/06/06 Rev 1 Policy Number EHS-104 EHS Management of Change 03/30/06 Rev 1

Section 200 OSHA Inspections

Policy Number EHS-201 OSHA Inspection Process 03/30/06 Rev 1 Policy Number EHS-202 OSHA Inspection Procedure 03/30/06 Rev 1

Section 300 Reporting and Recordkeeping

Policy Number EHS-301 OSHA Recordkeeping and Reporting 03/30/06 Rev 1 Policy Number EHS-302 EHS Incident Reporting 03/30/06 Rev 1 Policy Number EHS-304 EHS Monthly Reporting – Field Service 03/30/06 Rev 1

Section 400 EHS Training and Auditing

Policy Number EHS-401 EHS Training Requirements 03/30/06 Rev 1 Policy Number EHS-402 EHS Auditing Process 03/30/06 Rev 1

Section

500 Health

and

Safety

Requirements

Policy Number EHS-501 Major Contractor Safety 03/30/06 Rev 1 Policy Number EHS-502 Control of Hazardous Energy 06/20/06 Rev 2

Lockout/Tagout (LOTO)

Policy Number EHS-503 Personal Protective Equipment 03/30/06 Rev 1 Policy Number EHS-504 Respiratory Protection 03/30/06 Rev 1 Policy Number EHS-505 Hearing Protection and Conservation 03/30/06 Rev 1 Policy Number EHS-506 Hazard Communications 03/30/06 Rev 1

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Policy No:000 Table of Contents

Section 500 Health and Safety Requirement Date / Revision

Policy Number EHS-507 Hazardous Waste Operations and 03/30/06 Rev 1

Emergency Response (HAZWOPER)

Policy Number EHS-508 Emergency Response 03/30/06 Rev 1

Policy Number EHS-509 Fall Protection 03/30/06 Rev 1

Policy Number EHS-510 Powered Industrial Trucks 03/30/06 Rev 1

Policy Number EHS-511 Electrical Safety 03/30/06 Rev 1

Policy Number EHS-512 Fire Protection and Prevention 03/30/06 Rev 1 Policy Number EHS-513 Confined Space Entry 03/30/06 Rev 1 Policy Number EHS-514 Walking and Working Surfaces 03/30/06 Rev 1 Policy Number EHS-515 Ladders and Scaffolding 03/30/06 Rev 1 Policy Number EHS-516 Bloodborne Pathogens 03/30/06 Rev 1 Policy Number EHS-517 Compressed Gas Cylinders 03/30/06 Rev 1

Policy Number EHS-518 Hot Work 03/30/06 Rev 1

Policy Number EHS-519 Radiation 03/30/06 Rev 1

Policy Number EHS-520 Machine Guarding 03/30/06 Rev 1

Policy Number EHS-521 Tools 03/30/06 Rev 1

Policy Number EHS-522 Cranes and Rigging 03/30/06 Rev 1

Policy Number EHS-523 Means of Egress 03/30/06 Rev 1

Policy Number EHS-524 Driver Safety 03/30/06 Rev 1

Policy Number EHS-525 Housekeeping 03/30/06 Rev 1

Section

600 Environmental

Requirements

Policy Number EHS-603 Waste Management 03/30/06 Rev 1

Policy Number EHS-604 Toxic Substance Control Act 03/30/06 Rev 1

Appendix Title

Policy

No.

Appendix A Contractor Safety Forms EHS 501

A.1 Bid Solicitation/Contractor Qualification Form

A.2 Contractor EHS Training Form

A.3 Contractor EHS Rules Form

A.4 Contractor Work Permit

A.5 Weekly Safety Meeting Form

A.6 Contractor Inspection Checklist

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Appendix Title

Policy

No.

Appendix C EHS Mgmt. of Change Forms EHS 104

C.1 Examples of Changes

C.2 Change Management Record

Appendix D OSHA Inspection Procedure Forms EHS 202

D.1 Notice to OSHA

D.2 Notice of Protest

Appendix E Recordkeeping and Reporting Forms EHS 301

and Charts

E.1 Recordability Flow Chart

E.2 Recordability Checklist

E.3 Recordability Guidance

Appendix F EHS Incident Reporting EHS 302

F.1 EHS Incident Report Form

F.2 EHS Incident Investigation Form

Appendix H Field Service EHS Monthly Report Form EHS 304

Appendix I EHS Training Forms EHS 401

Appendix J EHS Audit Tracking Form EHS 402

Appendix K Lockout/Tagout Forms EHS 502

K.1 LOTO Index

K.2 Facility Authorized Personnel List

K.3 LOTO Audit Form

K.4 LOTO Control Sheet

Appendix L Personal Protective Equipment Forms EHS 503

L.1 PPE Equipment Inventory

L.2 Hazard Assessment Form

Appendix M Respiratory Protection Forms EHS 504

M.1 Respirator Specification Form

M.2 Cartridge Change Out Schedule

M.3 Respirator Cartridge Selection Chart

M.4 Medical Evaluation Questionnaire

M.5 Fit Test Protocol

M.6 Fit Test Documentation Form

M.7 Respirator Cleaning Procedure

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Appendix Title

Policy

No.

Appendix N Hearing Conservation Forms EHS 505

N.1 Area/Personal Noise Monitoring Survey Record

N.2 Hearing Conservation Program Audit

Form

Appendix O Fall Protection Forms EHS 509

O.1 Fall Hazard Assessment Form

O.2 Fall Protection Evaluation Form

Appendix P Powered Industrial Truck Forms EHS 510

P.1 Fork Truck Designation

P.2 Sample Daily Fork Truck Maintenance

Checklist P.3 Sample Fork Truck Training Evaluation

Appendix Q Fire Protection and Prevention Forms EHS 512

Q.1 Classes of fires and Appropriate

Extinguishers

Q.2 Sample Fire Prevention Checklist

Q.3 Sample Fire Extinguisher Inventory Form

Appendix R Confined Space Entry Forms EHS 513

R.1 Example Confined Space Entry Permit

R.2 Pre-Entry Checklist

R.3 Confined Space Inventory Form

Appendix S Waste Management Forms EHS 603

S.1 Exemptions From Hazardous Waste

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Environmental Health and Safety

Manual

Date: 9/24/2007 Title: Environmental Health and Safety Manual Revision Tracking Sheet

This sheet must be completed upon revision of any written S&W Energy Solutions EHS policy or procedure contained in the EHS manual.

Policy or

Procedure Rev. #

Rev.

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Environmental Health and Safety

Manual

Date: 9/24/2007 Title: Environmental Health and Safety Manual Review Sign-Off Sheet

This sheet must be completed following the annual audit/review of the EHS manual. The sheet must be signed and dated by the person authorized to conduct the audit.

Audit Date Audit Conducted By

____________ ___________________________ ____________ ___________________________ ____________ ___________________________ ____________ ___________________________ ____________ ___________________________ ____________ ___________________________ ____________ ___________________________ ____________ ___________________________ ____________ ___________________________ ____________ ___________________________ ____________ ___________________________ ____________ ___________________________ ____________ ___________________________ ____________ ___________________________ ____________ ___________________________

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Environmental Health and Safety

Manual

Policy No. EHS-101 Policy Title: Environmental Health and Safety Policy Date: 3/30/2006 Revision: 1 Approval: Richard Wolf

Table of Contents

1 Purpose and Scope... 2 2 Policy ... 2

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Policy No:EHS-101 S&W EHS Policy

1 Purpose and Scope

The purpose of this Policy is to state S&W Energy Solutions commitment to achieving environmental, health and safety (EHS) excellence. This commitment is the

responsibility of management and employees in all functions. S&W Energy will strive to provide a safe and healthy working environment and to avoid adverse impact and injury to personnel and to the environment and the communities in which we do business.

2 Policy

The well being of our employees while on the job, as well as the preservation of our environment at our job-sites and surrounding community, has the highest priority at S&W Energy. While we must provide quality work at a fair price for our customers in order to survive as a business, we refuse to compromise health and safety or damage our natural surroundings in the process. We believe that productive, safe, and

environmental-friendly work habits are one in the same.

Many accidents happen when people are in a hurry to get something done, or when they settle into comfortable habits and become complacent. Mainstream thinking is “an accident will never happen to me or affect me”. None of us have the ability to predict when, where, or how an accident will happen. The tragedy is that most accidents would take but a few seconds to avoid. No matter how busy or experienced you feel you are, you MUST consistently take the extra time to do any task safely while simultaneously thinking to avoid negative environmental consequence. You must make safety a core value in your day to day routine.

This EHS manual and its contents outline the minimum requirements for a safe and healthy work environment. Certain jobs will require additional protections. It is extremely important that you understand HOW each task is to be done in a safe manner. If you do not know, STOP and ASK before you commence your work. Your safety and well being, as well as the safety of those around you, can be a reality only through your constant and sincere effort. Simply talking or thinking about safety alone cannot and will not make safety a fact. You must believe in it, embrace it, and DO it. The S&W Energy Solutions’ EHS Policy includes very simple elements:

• Fostering a culture promoting compliance and encouragement of employees to raise their policy questions and concerns, and prohibiting retribution.

• Development and implementation of standards and procedures which will facilitate compliance by all S&W Energy Facilities, Sites, and personnel to this Policy and all applicable laws.

• Providing continuous education and training that will enable employees to understand the basic requirements of this Policy and applicable environmental, health and safety laws.

• Conducting internal and/or external EHS audits on a periodic basis to ensure compliance.

• Implementing a method for promptly reporting violations (and possible violations) of this Policy without the fear of retribution.

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Policy No:EHS-101 S&W EHS Policy

• Establishing strict, but appropriate disciplinary actions to be taken with employees who violate this Policy.

• Adopting, embracing, supporting, and ensuring employees understand the philosophy that performance is never more important than compliance. • Taking prompt remedial action when required.

• Promoting feedback and periodic evaluation to continually improve compliance with this Policy.

• Evaluating and providing rewards for employees whose actions promote the tenets of this Policy.

S&W Energy is committed to providing whatever it takes to ensure everyone works in the safest environment possible. Company management and employees must work as one to maintain a safe and healthy work atmosphere and to protect the workplace and surrounding community from negative environmental impact. This goal can only be achieved through a combined effort of working together.

We at S&W Energy view safety, not as a priority, but as a core VALUE in our business philosophy. While priorities may change, values stay with us indefinitely.

Richard Wolf

President – S&W Energy Solutions, Inc.

Signature ______________________________________ Date ________________

NOTE: All S&W Energy employees shall review the EHS Policy upon first day of employment and every year thereafter (annual requirement). The Policy shall be reviewed and signed by Management on an annual basis.

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Environmental Health and Safety

Manual

Policy No. EHS-102 Policy Title: Medical Records

Date: 3/30/2006 Revision: 1 Approval: Richard Wolf Table of Contents

1 Purpose and Scope... 2

2 Definitions ... 2

2.1 Access – The right and opportunity to examine and copy... 2

2.2 Designated Representative... 2

2.3 Employee Exposure Record ... 2

2.4 Employee Medical Record ... 2

2.5 Exposure (or Exposed) ... 3

2.6 Health Professional ... 3

2.7 Record ... 3

2.8 Specific Written Consent... 3

2.9 Toxic Substance (Harmful Physical Agent) ... 3

2.10 Trade Secret ... 4 3 Preservation of Records... 4 4 Access to Records ... 4 5 Trade Secrets... 5 6 Training ... 5 7 Auditing / Inspections ... 5 8 References... 6 9 See Appendix B ... 6

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Policy No:EHS-102 Medical Records

1 Purpose and Scope

This procedure/policy provides information on employees’, and/or their designated representatives’, rights to gain access to relevant medical records and information. The procedure also includes the requirements and guidelines of S&W Energy to maintain files and records relevant to employee medical information. A physician or other health care professional in charge of medical or exposure records can carry out access to medical records on behalf of S&W Energy.

Requirements in this procedure are not intended to affect existing legal and ethical obligations concerning confidentiality of employee medical information regarding patient/employee disclosure with medical-care relationship.

This procedure/policy applies to any general industry employer who has access to employee exposure or medical records, or other similar analyses. The medical records referenced include work-related records in addition to medical records that are not mandated by specific occupational safety and health standards.

2 Definitions

2.1 Access –

The right and opportunity to examine and copy.

2.2 Designated

Representative

– Any individual or organization to

whom an employee gives written authorization to exercise a right of access.

2.3 Employee Exposure Record – A record containing any of the

following types of information:

• Environmental (workplace) monitoring or measuring of a toxic substance or harmful physical agent results; or

• Biological monitoring results which directly assess the absorption of a toxic substance or harmful physical agent (not including alcohol or drugs); or • Material Safety Data Sheets (MSDS) indicating the material may pose a

hazard to human health; or

• A chemical inventory or any other record which reveals where and when used and identity of a toxic substance or harmful physical agent.

2.4 Employee Medical Record

– A record concerning the health status

of an employee which is made or maintained by a physician, nurse, or other health care professional which includes, but not limited to, the following: medical and employment questionnaires or histories, results of medical examinations and laboratory tests (pre-employment, baseline, etc.), medical opinions and diagnoses, first aid records, treatments and prescription information, and medical complaints.

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2.5 Exposure (or Exposed)

– Any employee subjected to a toxic

substance or harmful agent in the course of employment through any route of entry (inhalation, ingestion, skin absorption, etc.) and includes past exposure and potential exposure. It does not include situations where the employer can demonstrate that the toxic substance or harmful agent was not used or handled in the workplace at any given time.

2.6 Health Professional – A physician, occupational health nurse,

industrial hygienist, toxicologist, or epidemiologist, providing medical or other occupational health services to exposed employees.

2.7 Record – Any item, collection, or grouping of information regardless of

the form or process by which it is maintained (i.e., paper document, x-ray, microfilm, or automated data processing).

2.8 Specific

Written

Consent – A written authorization containing the

following information:

• The name and signature of the employee authorizing the release of medical information;

• The date of the written authorization;

• The name of the individual or organization that is authorized to release the medical information;

• The name of the designated representative (individual or organization) that is authorized to receive the released information;

• A general description of the purpose of the release of the medical information; and

• A date or condition upon which the written authorization will expire (if less than one year).

2.9 Toxic Substance (Harmful Physical Agent) – Any chemical

substance, biological agent (bacteria, virus), or physical stress (noise, heat, cold, vibration, repetitive motion) which:

• Is listed in National Institute for Occupational Safety and Health (NIOSH) Registry of Toxic Effects of Chemical Substances; or

• Has yielded positive evidence of an acute or chronic health hazard in testing conducted by the employer; or

• Is the subject of a material safety data sheet (MSDS) kept by or known to the employer indicating that the material may pose a hazard to human health.

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2.10 Trade Secret – Any confidential formula, pattern, process, device, or

information or compilation of information that is used in an employer’s business and that gives the employer an opportunity to obtain an advantage over competitors who do not know or use it.

3 Preservation of Records

Unless a specific occupational safety and health standard provides a different period of time, S&W Energy (and any other employer) shall assure preservation and retention of records as follows:

The medical record for each employee shall be preserved and maintained for at least the duration of employment PLUS thirty (30) years. However, the following records need not be retained for any specific period:

• Health insurance claim records kept separately from S&W Energy’s medical program and its records; or

• First aid records of one-time treatment and subsequent observations of minor scratches, cuts, burns, splinters, and the like which do not involve medical treatment, loss of consciousness, restriction of work or motion, or transfer to another job; or

• The medical records of employees if they have worked less than one (1) year for S&W Energy if they are provided to the employee upon termination of employment.

The exposure record of each employee shall be preserved and maintained for at least thirty (30) years.

4 Access

to

Records

Whenever an employee or designated representative requests access to a medical record, exposure record, or analyses of exposure or medical records, S&W Energy shall assure that the access is provided in a reasonable time, place, and manner.

If the record cannot be reasonably obtained within fifteen (15) working days, S&W Energy shall discuss with the employee or designated representative the reason for the delay and relay to them the earliest date when the record can be made

available.

S&W Energy shall ensure that a copy of the medical record is provided without cost to the employee and that it is given to the employee for such a period that allows time for a copy to be made (for their personal records).

A designated representative may gain access to an employee’s medical records, exposure records, or analyses of exposure or medical records by specific written

consent from the employee ONLY. A sample Medical Records Access Request Form is included in this procedure.

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S&W Energy shall allow access to personnel medical records and information to OSHA or any other governing regulatory agency upon request, however, the proper written access must be provided prior to providing the records. Reference OSHA or other regulatory agency guidelines and requirements before permitting this access. If employer ever ceases to do business, the employer shall transfer all records

referenced in this procedure to the successor employer. The successor employer shall receive and maintain these records.

If employer ceases to do business and there is no successor employer, the employer shall notify the current employees of their rights to access records at least three (3) months prior to employer ceasing to do business.

5 Trade

Secrets

S&W Energy may choose to delete information from an employee medical record upon request for access by the employee, designated representative, or physician, if the record contains trade secret information (i.e., manufacturing processes, chemical

mixture data, etc.) as long as the requestor is notified of such action in advance. This is allowed only if S&W Energy can prove or support the claim that the information deleted is in fact a trade secret.

Where a treating physician or health care professional determines that the trade secret information withheld or deleted is necessary to determine proper treatment or

emergency care for the employee, S&W Energy shall immediately disclose the specific information despite the written confidentiality consents for disclosing trade secret information. However, upon disclosure of such information, S&W Energy may elect to have sequestering parties sign written confidentiality consents that information is to be used for treatment purposes only and not disclosed or used in any other fashion.

6 Training

All S&W Energy employees shall be trained on the requirements and guidelines of this procedure initially (upon first day of employment) and annually thereafter. The training shall cover the following:

• The existence, location, and availability of records covered by this procedure;

• The person responsible for maintaining and providing access to the records; and

• Each employee’s rights of access of these records.

7 Auditing / Inspections

The Medical Records Access / Recordkeeping procedure shall be reviewed every 3 years. This procedure will be updated as necessary.

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8 References

1. 29 CFR 1910.20 Access to Employee Exposure and Medical Records / OSHA Recordkeeping and Reporting Requirements

2. 29 CFR 1910.1020 Access to Employee Exposure and Medical Records 3. 29 CFR 1926.33 (Same as 29 CFR 1910.1020)

9 See

Appendix

B

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Environmental Health and Safety

Manual

Policy No. EHS-103 Policy Title: General Site EHS Rules

Date: 3/30/2006 Revision: 1 Approval: Richard Wolf 1. Table of Contents

1 Purpose and Scope... 2

2 Policies... 2

2.1 General ... 2

2.2 Conduct ... 3

2.3 Asbestos & Other Fibers ... 3

2.4 Barricades and Notice of Work Activity ... 3

2.5 Confined Space Entry ... 4

2.6 Cranes and Motorized Equipment... 4

2.7 Defective Equipment ... 4

2.8 Demolition ... 4

2.9 Emergency Response... 4

2.10 Excavations... 5

2.11 Fire Protection... 5

2.12 Hazard Communication Program (HAZCOM) ... 5

2.13 Hazardous Substance / Waste Management... 6

2.14 Hot Work ... 6

2.15 Housekeeping ... 6

2.16 Ladders and Scaffolding ... 7

2.17 Lead Paint... 7

2.18 Lockout / Tagout ... 8

2.19 Personal Protective Equipment (PPE) ... 8

2.20 Reporting EHS Incidents... 8

3 Safety Meetings ... 9

4 Training ... 9

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Policy No:EHS-103 General Site EHS Rules

1 Purpose and Scope

This policy provides general environmental, health and safety guidelines for all S&W Energy employees at any S&W Energy Facility or Job-Site. The list highlights the primary requirements of each site. The specific S&W Energy procedure or policy shall be reviewed to obtain all requirements for each area covered here. General Site EHS Rules also provides guidance pertaining to safety meetings (i.e., purpose and

frequency).

In addition to general EHS guidelines and rules, the Facility or Site shall generate any site-specific requirements that are not referenced here. They shall be attached to this procedure and indicated as “Facility or Site Specific”. The guidelines included in Section 2 of this procedure may be amended, upon approval from the S&W Energy EHS Manager, so that they reflect the requirements of the Site.

2 Policies

S&W Energy is committed to providing a safe and healthy work environment for all employees, both on-site and Contractor Workers, and is committed to avoiding adverse impact to the environment in performance of all site activities.

2.1 General

• Employees shall not work at any time when their ability is or may be impaired as a result of the use of legal prescription drugs.

• All individuals, employees, contractors, visitors, etc. must be seated in moving vehicles and seat belts worn while the vehicle is in motion.

• Fighting, horseplay, gambling, possession of firearms or other weapons, possession or use of alcohol or illegal or unauthorized drugs is prohibited. • Except in “Designated Smoking Areas,” smoking is not permitted on Facility

property.

• Eating and Drinking is only permitted in designated areas.

• All tools and equipment shall be inspected prior to use. Unsafe tools and equipment shall not be used.

• Employees will perform work in such a manner as to assure at all times maximum safety to self, fellow workers and the public and in accordance with all Federal, State, and Local requirements.

• Employees who do not either feel qualified for or physically able to perform will not attempt to work.

• Employees will perform work according to proper EHS practices and procedures as posted, instructed, and prescribed.

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• Employees will obtain specific instructions and/or clarifications from their Supervisor before proceeding with work in situations where an EHS requirement or procedure is not completely understood.

• Employees will observe and adhere to all warning signs, signals, and notices. • Employees shall not be permitted to wear loose or flapping clothing or have

rags or other objects extending from pockets or belts when in the immediate proximity of machinery, motors, engines, or rotating equipment.

• Employees shall never operate any machine or rotating equipment unless all guards and safety devices are in place and in proper operating condition.

Immediately report every work-related Injury, Illness or Near Miss sustained at the Facility or Site to your Supervisor.

2.2 Conduct

The following list is not a complete list but includes acts and behavior which are prohibited and for which an Employee may be removed or dismissed from the Facility:

• Use of obscene or abusive language; racial, gender, or ethnic slurs. • Failure to follow specific instructions or specifications.

• Deliberately damaging, defacing, or misusing Facility or Site property or the property of others.

• Removing Facility or Site property from the premises without appropriate authorization.

• Gambling, bookmaking or selling lotteries on Facility or Site property. • Immoral or indecent conduct; sexual harassment.

• Illegally possessing, selling, distributing or manufacturing drugs on Facility or Site property.

2.3 Asbestos & Other Fibers

• All fibrous materials must be accompanied by a MSDS and must be treated with care.

• Unless a Facility or Site is documented to be asbestos free, the Employee shall not disturb any fibrous material, but shall notify the Supervisor immediately if any is found.

• Any Employee or Contractor performing asbestos abatement must comply with requirements stipulated in Facility or Site procedures and any Federal, State, or local regulatory requirements.

2.4 Barricades and Notice of Work Activity

• Facility or Site personnel shall erect all necessary barricades and notices to safeguard all individuals, both Contractor Workers and site employees, during the conduct of the any work performed at the Facility or Site.

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• Barricades and notices are required around excavations, holes, or openings in floors, roofs, elevated platforms, around certain types of overhead work, and whenever necessary to warn people against falling objects or debris.

• Blinking lights must be used on protective barricades, where lighting is inadequate.

• The use of Caution Tape, yellow and black tape, means access to areas may be permitted only when it is safe to do so.

• Areas in which entry is not permitted will be taped-off with red and black barricade tape and have signs similar to: “Danger - Do Not Enter” posted. Employees shall not enter such areas.

2.5 Confined Space Entry

• Employees must be qualified or trained to perform the work (have appropriate training per regulatory requirements) and briefed on the hazards of the confined space(s) prior to beginning work.

• Employees shall use S&W Energy Confined Space Entry procedures, unless another arrangement has been agreed upon.

No one will enter a PERMIT-REQUIRED CONFINED SPACE until a confined space entry permit has been issued and posted.

2.6 Cranes and Motorized Equipment

• Employees must be properly trained to operate mobile equipment, complete and pass applicable examinations and certifications to qualify to operate equipment. (This may include DOT licensure).

• Only certified operators with valid certifications may operate cranes and other motorized equipment at the S&W Energy Facility or Site.

2.7 Defective Equipment

• The Employee shall ensure that all tools and equipment shall be inspected prior to use. Any defective equipment shall be tagged “OUT OF SERVICE” and removed until it has been repaired or discarded.

2.8 Demolition

• All demolition work shall be conducted in such a manner as established in accordance with the Engineering requirements.

2.9 Emergency Response

• All Employees and Contract Workers shall review and become familiar with the Facility’s or Site’s Emergency Response Plan and procedures before beginning assigned work.

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• All Employees shall be familiar with the Facility’s or Site’s spill notification and evacuation procedures as described in the Emergency Response Plan and know where to muster in an emergency. Also, the Employee shall be made aware of all emergency contacts and procedures for reporting fires.

• Spills must be properly managed to prevent harm or degradation of the environment, access to storm water or sanitary sewer drains, and to ensure worker safety.

• Evacuate the area if a spill involves hazardous, explosive, or flammable materials.

• Supervisors are required to know who is on their job, and be able to account for them at all times, especially after an evacuation.

• Supervisors must report missing personnel and their presumed location as quickly as possible.

• Approved First Aid supplies shall be made available to all employees, contractors, visitors, etc. in ample quantities at all times.

2.10 Excavations

• Prior to commencement of any excavation, the Employee shall notify the Shift Supervisor, or designee.

• Any Employee shall ensure that excavation areas are properly barricaded and have posted warning signs to ensure the safety of all individuals in the area.

2.11 Fire

Protection

• The reason for discharging a fire extinguisher shall be discussed with all Employees. After recharging, the extinguisher shall be returned to its original location.

• Employees shall not obstruct in any way access to fire extinguishers, fire hose stations or other fire apparatus, emergency eye wash stations and showers, spill response equipment or other safety related equipment.

• Employees shall know the location and correct operation of the nearest fire alarm and fire extinguisher.

• Employees shall know the location of designated fire exits and shall not block access to those exits.

• Employees shall not refuel equipment while it is running or when hot. • Employees shall keep combustible and flammable materials away from hot

surfaces and ignition sources.

• Employees will store flammable materials in approved cabinets.

• Reference the Site’s Fire Protection and Prevention procedure for detailed requirements and precautions.

2.12 Hazard Communication Program (HAZCOM)

• Any HAZARDOUS MATERIALS brought on site must be accompanied by the associated MSDS. They shall be approved by the Facility or Site prior to bringing them on-site. The MSDS must be provided to the Facility

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Representative, or designee. All hazardous material must be in an approved container, including all flammable substances.

• All containers shall be properly labeled as to the contents and physical and health hazards at all times.

• Each Employee must be aware of the Facility or Site HAZCOM program that includes at a minimum: complete MSDS’s on hand at the work site for each chemical used, chemical inventory, adequate training for all personnel which covers: physical and health hazards of all products, proper handling of the products, and personal protective equipment.

A copy of the Facility or Site’s HAZCOM program and the Facility or Site MSDS inventory will be made available to any Employee or Contractor

Worker upon request.

2.13 Hazardous Substance / Waste Management

• Employees shall properly handle all hazardous and toxic substances and materials utilized in its work according to Site procedures and regulatory standards.

• Propane and compressed gas cylinders must be chained upright and on

approved carriers when moved. Reference Hazardous Material Deliveries and Compressed Gas Cylinder Procedures for detailed requirements and

guidelines.

• All Employees are responsible for the proper disposal of construction debris generated by their work at the Facility or Site.

• Enclosed disposal chutes are to be used whenever waste materials are to be dropped more than 10 feet.

• Employees will comply with requirements of S&W Energy’s Hazardous Material Handling and Waste Management procedures while on-site.

2.14 Hot

Work

• Employees shall not perform hot work (welding, cutting, brazing, and burning operations) without obtaining a Hot Work Permit.

• All employees shall comply with S&W Energy’s Hot Work procedure and all its requirements.

2.15 Housekeeping

• Employees shall maintain all walkways and work areas clear of obstructions, tripping hazards, and debris.

• All oily rags must be disposed of in appropriate containers designed for oily wastes.

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2.16 Ladders and Scaffolding

• All ladders must be approved for use before being put into service. Each user must inspect ladders visually before using.

• If it is necessary to place a ladder in or over a doorway, barricade the door and/or post warning signs.

• Metal ladders must not be used for electrical welding, or near electric lines or services.

• Ladders must be tied off, with the user wearing a safety harness, if it is necessary to use a ladder on top of a scaffold or close to the edge of an elevated platform, roof, or floor opening.

• The top of the ladder must extend at least three (3) feet beyond the supporting object, when used as access to an elevated work area.

• Sound, rigid and suitable footing is required for all scaffolds and no unsuitable objects shall be used for support, such as barrels, boxes, bricks or concrete blocks.

• Guardrails and toe boards shall be installed in conformance with regulatory and engineering requirements and standards.

• Where persons are required to pass underneath, all scaffolds will be provided with ½” mesh screening between the tow board and guardrail.

• Scaffold and components shall be capable of supporting four times its intended load without failure.

• Personnel must wear properly tied-off safety harnesses on scaffold platforms not equipped with standard handrails or completed decking. Safety harnesses must be secured before stepping onto the scaffold, and must not be removed until personnel are clear of the scaffold. Harnesses must be tied off to

independent lifelines or building structures – one lifeline per person.

• No one is allowed to ride a rolling scaffold while it is being moved. All tools and materials must either be removed or secured on the deck before moving. Pulling the scaffold along from overhead while on the scaffold is prohibited. • Brick, tile, block or other similar materials may not be stacked higher than 24

inches on the scaffold deck.

• All scaffolds shall be erected and maintained in accordance with regulatory and engineering requirements and standards.

• Employees shall comply with S&W Energy’s Ladders and Scaffolding and Fall Protection Procedures.

2.17 Lead

Paint

• For operations comprising of the grinding, welding, or burning of lead painted surfaces a Supervisor must be notified prior to the start of work. If it is not known whether the surface has lead paint on it, the Facility Manager or designee shall be consulted.

• The area shall be posted that work is being conducted on lead painted surfaces.

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• Work practices such as using HEPA vacuum and exhaust ventilation will be applied.

2.18 Lockout / Tagout

• Employees must get approval from the Shift Supervisor, or designee, BEFORE beginning work on Locked Out or Tagged Out equipment.

• All electrical wires and circuits are to be considered energized unless power is definitely disconnected and the applicable switches locked and tagged out. • All Employees shall comply with S&W Energy’s Lockout / Tagout procedure.

2.19 Personal Protective Equipment (PPE)

• Employees shall wear flame resistant or 100% cotton long sleeved shirts and long pants while involved in tasks with exposure to flames or electric arcs. Shirts with sleeves (long or short) will be worn at all other times.

• ANSI-approved hard hats shall be properly worn by all Employees and

Contractor Workers and visitors throughout the Facility, except in office areas and in other designated areas. (Metal hard hats are prohibited.)

• ANSI-approved safety glasses with side shields shall be properly worn by all Employees and Contractor Workers and visitors throughout the Facility, except in office areas.

• Both chemical goggles and face shields shall be worn when working with or loading / unloading chemicals such as ammonia, sulfuric acid, caustic etc. • ANSI approved safety shoes must be worn by all Employees and Contractors

working on site. No sneakers or dress shoes will be allowed.

• Approved full body harnesses and lanyards shall be properly used when working in areas where a potential fall hazard exists.

• Approved hearing protection shall be properly used in designated areas. When in doubt of noise levels, hearing protection shall be used. Double hearing protection must be used when working in or around the turbines/generators when in operation with enclosures open.

• Respiratory protection will be properly used where administrative or engineering controls fail to reduce air contaminants to within OSHA prescribed limits.

Employees shall comply with S&W Energy’s Respiratory Protection procedure, or equivalent procedure of their own.

• Other approved PPE such as face shields, protective clothing, gloves, etc. shall be used by Employees where the risk of injury or illness may be prevented by its use.

• All requirements as described in S&W Energy’s Personal Protective Equipment / Job Safety Analysis procedure shall be met.

2.20 Reporting EHS Incidents

• Employees are responsible for reporting any work-related injury/illness or near misses (or environmental incidents) to the Facility Manager or Supervisor as soon as they become known.

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• The Facility Manager or Supervisor will complete all required paperwork per S&W Energy’s EHS Incident Reporting and OSHA Recordkeeping Procedures.

3 Safety

Meetings

Supervisors at all work locations are responsible for conducting safety meetings with assigned personnel, including contractors and sub-contractors.

These meetings may be brief 15-20 minute sessions or as long as 30-60 minutes. Meetings held for training purposes may require additional time.

Meetings shall be held at a frequency established by the Facility or Site but at least monthly.

ALL safety meetings shall be fully documented on a general form. The record shall indicate the time, date, and location of meeting, topics covered, duration, name of instructor (person presenting material), and all personnel attending. Records shall be kept for one year.

In addition to the regular frequency of safety meetings, a safety meeting shall be conducted following an injury or near-miss to warn assigned personnel in an effort to prevent duplicate accidents or injuries.

4 Training

All Employees shall be trained on the guidelines of this procedure initially, prior to work at the Facility or Site. Refresher training is required any time there is a change to the Site’s general rules.

5 Auditing / Inspections

This procedure and policy shall be reviewed annually. Safety meeting records may be reviewed as part of this audit or inspection. The procedure / policy will be updated, as necessary.

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Environmental Health and Safety

Manual

Policy No. EHS-104 Policy Title: EHS Management of Change Date: 3/30/2006 Revision: 1 Approval: Richard Wolf Table of Contents

1 Purpose and Scope... 2 2 Definitions ... 3 2.1 Change ... 3 2.2 Change Management Record (CMR) ... 3 2.3 Controlled Document ... 3 2.4 Design Review ... 3 2.5 Piping and Instrumentation Diagrams (P&ID) ... 3 2.6 Replacement-in-Kind ... 3 2.7 RFC ... 3 2.8 Temporary Change ... 4 3 Training ... 4 4 Auditing / Inspections ... 4 5 References... 4 6 See Appendix C ... 4

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Policy No:EHS-104 EHS Management of Change

1 Purpose and Scope

The purpose of this policy is to introduce the need to manage changes (normal,

permanent, and/or temporary changes) to ensure that environmental, health and safety (EHS) factors has been included as part of the evaluation process. Facility or Site process, equipment, or operational changes must have appropriate review and

authorization prior to implementation to ensure they do not introduce unacceptable risk or hazards. The EHS review portion of the Management of Change process is

implemented at Facilities and Sites so as not to compromise the safety and health of employees (and the community) and to safeguard the surrounding areas from

environmental catastrophes. Management of Change applies to all changes other than those classified as “replacement-in-kind”.

Although maintenance crews typically conduct changes, all personnel must be aware of this policy as changes can be proposed by all employees. Everyone must understand the process and review required to implement a change and understand what

constitutes a change. Many times what may appear to be a minor revision may have much larger implications. It may lead to injuries, accidents, permitting violations, etc., costing companies large sums of money and penalties, not to mention seriously injuring employees if not handled appropriately. Therefore, proper authorization and analysis is needed.

A Facility or Site is required to have an overall Management of Change Procedure. EHS is only one part of the review and analysis of that process. This policy is not meant to replace any existing Management of Change procedure or process but to re-emphasize the need for review of all changes and to ensure EHS is included as part of that review. Definitions and sample Request Forms are included with this policy as a tool to assist Facilities or Sites with implementing Management of Change procedures. It is NOT intended as a stand-alone procedure. The EHS Management of Change Policy should be incorporated into the Facility or Site’s overall Management of Change procedures.

Prior to implementing ANY change, the proper analyses must be conducted and approved and the appropriate authorizations, most importantly for this policy EHS authorization, obtained (and all documented). NO CHANGE SHALL BE MADE OR IMPLEMENTED WITHOUT THESE REQUIREMENTS BEING MET.

All Facilities or Sites must have a formal system for identifying, assessing, authorizing, and implementing changes. Management of Change includes documentation and reviews that manage change by addressing the technical

basis of the change, the impact on the environment, safety, and health, modification to operating procedures, necessary time periods involved, authorizations required, training of affected personnel, and updating process

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2 Definitions

2.1 Change

All modifications to Facilities or Sites (buildings, structures, etc.), equipment,

procedures, processes, operations, raw materials, and processing conditions other than “replacement in kind” are considered a change. Changes may include

modifications of operation outside previously approved operating limits (EHS Procedure or Permit), process technology changes (rates, raw material,

experiments, catalysts, etc.), or equipment changes (materials of construction, equipment specifications, piping arrangements, etc.). A list of typical modifications classified as changes (and subject to Management of Change) is included as a reference in the Attachment section of this policy document.

2.2 Change Management Record (CMR)

A form used to document and control the progress of a modification from initiation through completion of the change. This is also referenced as a Change Request Form. Reference the Attachment section for an example form.

2.3 Controlled Document

A document whose contents and distribution are “controlled” through the Management of Change process. Typically these documents include P&ID's, operational procedures, training manuals, permits, etc.

2.4 Design Review

A review conducted by the appropriate personnel authorized to ensure the change has been engineered with the appropriate safety, health, and environmental

considerations. This includes one of the authorizations required to implement a change.

2.5 Piping and Instrumentation Diagrams (P&ID)

Flow charts or system diagrams of operational units that indicate specific information that can be used in training, troubleshooting, and safe operation auditing.

2.6 Replacement-in-Kind

Replacement of an instrument, electrical, piping, equipment, apparatus or other component with an identical part or an equivalent approved and specified by the applicable Engineering standard. It also includes replacement of procedures or processes that are the same (i.e., updates). A list of typical modifications classified as Replacement-in-Kind (and NOT subject to Management of Change) is included as a reference in the Attachment section of this policy document.

2.7 RFC

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2.8 Temporary Change

A change in piping or procedures for the purpose of accomplishing something not covered by typical operations will be considered a temporary change. It is

removed as soon as the operation is completed.

3 Training

All S&W Energy employees (at a Facility or Site or Field personnel) shall be trained on the guidelines of this policy.

Facility (or Site) Managers, technical staff, and supervisors must be trained in the

overall Facility or Site Management of Change Procedure or process and in the detailed step-by-step procedures through which change is implemented. Training on this policy is included.

Operators, craftsmen, and other personnel whose job function could involve them in implementing a change must be trained in the Facility or Site Management of Change Procedure or process, which includes this policy.

Initial training is required and refresher training required every three years.

4 Auditing / Inspections

The EHS Management of Change Policy shall be reviewed every three years. The procedure will be updated as necessary.

All documentation (Controlled Documents and Change Request Forms with supplemental information) shall be retained for the duration of the Policy. These records and documents may be reviewed during an audit or inspection.

5 References

A. 29 CFR 1910.119, Process Safety Management

B. Plant Guidelines for Technical Management of Chemical Process Safety

6 See Appendix C

C.1 Examples of Changes and Replacement-in-Kind (2 Pages) C.2 Example Change Request Form (2 Pages)

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Environmental Health and Safety

Manual

Policy No. EHS-201 Policy Title: OSHA Inspection Process

Date: 3/30/2006 Revision: 1 Approval: Richard Wolf Table of Contents

1 Scope... 2 2 General Guidelines ... 2

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Policy No:EHS-201 OSHA Inspection Process

1 Scope

Workplace inspections by OSHA compliance officers may occur at any time. Ensuring full compliance with all applicable standards at all times will minimize any impact that an inspection may have. This policy outlines the basic OSHA inspection process and criteria.

2 General Guidelines

Under laws established by the Department of Labor, OSHA inspections proceed as follows:

1. Inspections can be initiated either by an employee complaint or the Labor Department's initiative.

2. Advance notice of a safety and health inspection without Labor Department authorization is prohibited.

3. Compliance officers must present credentials to the owner, operator, or agent in charge. If the inspection was the result of a complaint, the compliance officer must present a copy of the complaint prior to the conclusion of the inspection.

4. Compliance officers are entitled to enter without unreasonable delay.

5. A compliance officer may gain entrance by presenting credentials to any employee if minimum delay fails to produce the manager in charge.

6. Investigations and inspections must be conducted during regular working hours or at other reasonable times.

7. An authorized employee representative(s), as well as employer representatives, may accompany the compliance officer during the inspection.

8. In the absence of an authorized employee representative, the compliance officer may consult with a reasonable number of employees.

9. The compliance officer checks the place of employment, and all pertinent conditions, structures, machines, apparatus, devices, equipment and materials.

10. The inspection may include possible hazards reported before or during the inspection.

11. A citation will be issued for any violation.

12. If a condition poses imminent danger, the inspector has the authority to request that it be corrected immediately. If the situation is not abated, he/she can secure an injunction through the U.S. District Court, requiring immediate correction or suspension of the work until it is corrected.

13. The citation will detail the violation and the standard, which has been violated. A definite length of time for correction (abatement) will be set.

14. A copy of the citation must be posted at or near the place where the violation occurred. For our purposes, the bulletin board shall be acceptable.

15. An employee or his/her representative may appeal the time given for correction or the penalty and ask for more severe treatment.

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Policy No:EHS-201 OSHA Inspection Process

16. The employer may appeal the citation and proposed penalty providing it is appealed within 15 working days of the date of the citation or the right to appeal is lost.

17. When appealed, the “violations” is referred to the Solicitor’s office for review prior to legal action being taken or appeal to the Review Commission (Federal, not State programs).

18. The Review Commission is a three-person body independent of the Labor

Department established for the specific purpose of hearing appeals. It should be noted that if the employee representative feels that the inspector was too easy on the contractor, he/she could also appeal the proposed penalty or the time of the abatement, asking for more severe treatment. If the employer does not file the Appeal within the stipulated fifteen days it loses the right of appeal.

19. When the Review Commission receives the Appeal from the Department of Labor, a notification of receipt will be sent to the Department of Labor, the employer, and the employee representatives setting time and place for hearing and appointing a hearing examiner. At all hearings there will be three parties--The Department of Labor, the employer, and the employee representatives. The hearing examiner will act as presiding officer and will issue a ruling. The examiner has the authority to subpoena records. It is optional at these hearings as to whether or not the parties are represented by legal counsel, and the President will make this decision.

20. The hearing examiner's ruling will be forwarded to the Review Commission which can concur in the rulings, modify, or vacate the rulings and can even increase the proposed penalty, based on the testimony at the hearing.

21. If the company wishes to contest the Review Commission's determination, our legal counsel will take the matter to the U.S. Court of Appeals.

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Environmental Health and Safety

Manual

Policy No. EHS-202 Policy Title: OSHA Inspection Procedure Date: 3/30/2006 Revision: 1 Approval: Richard Wolf Table of Contents

1 Scope... 2 2 General ... 2 3 Procedure ... 2 3.1 Procedures Prior to Arrival of a Compliance Officer... 2 3.2 Upon Arrival of a Compliance Officer... 3 3.3 At the Opening Conference... 3 3.4 Employee Representation... 4 3.5 Company Records ... 4 3.6 During the Inspection ... 5 3.7 Employee Interviews ... 5 3.8 Closing Conference ... 6 3.9 After the Inspection ... 6 3.10 Upon Receiving a Citation... 6 3.11 Citation Process... 6 4 See Appendix D ... 7

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Policy No:EHS-202 OSHA Inspection Procedure

1 Scope

This policy is an outline of the procedures required prior to, during, and after an inspection by OSHA compliance officers.

2 General

The Occupational Safety and Health Act was enacted in 1970, with its purpose being "to assure so far as possible every man and woman in the nation safe and healthful

working conditions and to preserve our human resources." The management of S&W Energy is in complete agreement with the purpose of the act and expects each project to comply with all regulations of the act.

Administration and enforcement of OSHA are vested in the Secretary of Labor and Occupational Safety & Health Review Commission or with the State Labor Department in those states with approved programs. The act is enforced by job site inspections by OSHA Compliance Officers to determine if the regulations provided in the act are being complied with by employers. Violations of the act as determined by the compliance officers (COSH) during their inspections will result in financial penalties, up to $10,000.00 per violation. S&W Energy accepts the enforcement procedures as provided in the act, but realizes that if certain procedures are followed by the projects before, during, and after the inspections, the results of the inspections will be much more favorable to the Company. For this reason, the following procedures to be followed during an OSHA inspection have been established.

3 Procedure

3.1 Procedures Prior to Arrival of a Compliance Officer

1. The Project Manager (or designee) will designate the General Superintendent, Resident Engineer, and/or Safety Supervisor, to accompany the Compliance Officer during the inspection. This employee must be thoroughly familiar with the work S&W Energy is doing on the project, the work areas in which S&W Energy is involved, the equipment on the project belonging to or under the control of S&W Energy, and any subcontractors and their work on the project. He/she must also be thoroughly familiar with the S&W Energy EHS Manual and the safety program in effect on the project.

2. All records as required by OSHA (OSHA 300 Form, OSHA 101 Form, Crane Inspection Reports, etc.) are to be maintained and available.

3. A camera (preferably digital) will be located on the project and available.

4. The OSHA poster will be posted in a location readily observable by all employees where they normally report for work daily.

5. All safety activities on the project are to be documented; i.e., safety meetings (when held, who attended, topic covered, etc.), employee disciplinary measures taken for safety violations, correspondence to other contractors or the owner about unsafe conditions, etc.

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3.2 Upon Arrival of a Compliance Officer

1. The Project Manager or Safety Supervisor will verify the Compliance Officer's credentials, making sure the credentials are current. He/she will obtain a business card from each compliance officer, or record the name, address and phone number of each one.

2. He/she will determine why the Compliance Officer wants to inspect the project. The reason for the inspection will help in making the decision as to whether or not to require a search warrant.

3. DO NOT REQUEST SEARCH WARRANTS UNLESS INSTRUCTED TO DO SO. Search warrants will be requested only after consultation with S&W Energy

Corporate Safety Department and/or agreement by the corporate legal staff. 4. If the Compliance Officer is at the project as the result of an employee complaint,

the Project Manager or Safety Supervisor will ask for a copy of the complaint. 5. The Project Manager or Safety Supervisor will call the S&W Energy Manager of

Safety immediately after obtaining the information in Nos. 1, 2 and 4 above, and before allowing the compliance officer to go to the work areas.

6. The Project Manager or Safety Supervisor will notify all project supervisors that the project is about to be inspected and the reasons for the inspection.

7. The Project Manager or Safety Supervisor will request an opening conference if the compliance officer does not call for one.

3.3 At the Opening Conference

1. The Project Manager, General Superintendent, Resident Engineer, and the Safety Supervisor (as applicable) are to be present.

2. Inform the subcontractors of the inspection and offer them the opportunity to be present. It is not mandatory that they attend; the choice is theirs.

3. Detailed notes must be taken of everything discussed.

4. If the inspection will disrupt an important meeting or critical phase of work,

explain this to the compliance officer and arrange for the inspection to take place at a later time/date.

5. All publications and documents given by the compliance officer should be kept and marked with the name of the Compliance Officer and the date of its receipt. 6. The compliance officer's length of time with OSHA, education, prior work

experience, and knowledge of project related work should be noted.

7. If more than one Compliance Officer is involved, it should be determined if they plan to make the inspection in one group or split into two (2) or more groups. If they want to divide into two (2) or more groups, it should be determined if it will present a problem for S&W Energy to provide a qualified employer

representative for each group. If we are not in a position to provide an employer representative for each group, this should be discussed with the compliance officers. If they still insist on dividing into groups, the S&W Energy Manager of Safety should be contacted for direction.

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8. If the project involves many contractors, an agreement should be reached with the compliance officer that he/she will inspect S&W Energy in a short period of time, and will not involve us in a prolonged inspection (some project inspections have taken over a week) while he/she is inspecting us and every other contractor on the project simultaneously.

9. At all times prior to, during, and after the inspection, all S&W Energy employees should act in a cooperative, professional, businesslike manner, never entering into personal arguments with the Compliance Officer or volunteering information.

3.4 Employee Representation

1. One authorized representative of the employees shall be given the opportunity to accompany the Compliance Officer. If there is a safety committee, one member of the committee may be designated as the employee representative.

2. There need not be an employee representative for each inspection; however, where there is no authorized representative the compliance officer will probably talk to a number of employees about safety and health matters on the site. For this reason, we always prefer one employee representative to accompany the inspection team.

3. Employees interviewed during the inspection are not considered as part of the inspection for "walk around" purposes. Employees should be interviewed in private, and the Employee Representative should not be with the inspector during the interview. The name of the employee interviewed, the area he/she is working in, and any item/area he/she is obviously making comment on or

reference to should be recorded.

3.5 Company Records

1. The Compliance Officer is allowed to look only at the OSHA records required to be kept by us: OSHA 300/300 A form, OSHA 301 form, Crane Inspection

Records, etc. A copy of any of these records or any other records is not to be given to the Compliance Officer.

2. The Compliance Officer is not to look at any of our Company safety manuals. 3. The Compliance Officer is not to look at any safety inspection reports made by

our Safety Engineering or Quality Control personnel, insurance carrier, etc., other than those reports required by OSHA. This includes not giving or letting the Compliance Officer look at any such reports made on subcontractor's activities. The officer may look at, but not have a copy of, safety committee minutes, check lists, or safety program plans.

4. Areas, which include, but are not limited to, our methods and operational

procedures or our erection/form systems, quality control procedures, etc. should be identified as trade secrets. This will also include all negatives, prints or

photographs, and environmental samples which should be labeled "Confidential - Trade Secret" and normally not disclosed.

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3.6 During the Inspection

1. The Project Manager, General Superintendent, Resident Engineer, and/or Safety Supervisor (as applicable) should accompany the Compliance Officer at all times. They should never allow the Compliance Officer to have free and unlimited

access to the project.

2. The inspection should be controlled. The Compliance Officer should be treated as would a guest in a house; he/she is there with our permission and will be expected to follow all instructions given him/her and will be required to conduct the inspection in such a manner that it does not disrupt the scheduled work. Remember that it is our project site - not OSHA's. The Compliance Officer is to be treated as any other visitor under our control while on our project.

3. Detailed notes of everything seen, discussed, and done by the Compliance Officer should be taken.

4. Photographs of everything the Compliance Officer photographs should be taken. If the equipment, work area, etc. can be photographed from a more favorable position (different angle, greater distance, etc.), photograph it from the different position.

5. No employee is to perform demonstrations for the Compliance Officer. Example - if a truck is idle and the Compliance Officer asks a person to operate it so he/she can see if the horn or back-up alarm is working, the request should be refused. The Compliance Officer should be allowed to see the work only as it is normally being done.

6. The Compliance Officer's questions should be answered to the best of a person's knowledge, but further information should not be offered. No evidence against oneself should be offered.

7. Orders, such as "clean up that trash", during the inspection to have conditions corrected that have not been noticed by the Compliance Officer should not be given. The immediate abatement of an alleged violation will not preclude a citation by the Compliance Officer, and may alert him/her to the condition. 8. If it is not fully understood what a Compliance Officer does or comments on,

questions should be asked and all facts recorded, even if the inspection is interrupted.

3.7 Employee Interviews

1. Private interviews with S&W Energy employees by the Compliance Officer should not be allowed if they will be disruptive to the work process. If the compliance officer insists on having private interviews, it shall be done in accordance with the section on Employee Representation.

2. Record the names and employer of all personnel interviewed and, if we are present, the content of such interviews.

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3.8 Closing Conference

1. The Project Manager, General Superintendent, Resident Engineer, and the Safety Supervisor (as applicable) will be present.

2. There should be notes of everything discussed and records of what documents were distributed by the Compliance Officer.

3. No questions concerning the inspection should go unanswered. If the

Compliance Officer feels that a violation exists on the project, abatement dates he/she plans to submit for each condition should be thoroughly discussed. If a condition cannot be corrected within the abatement date, it should be discussed with the Compliance Officer.

4. No estimate of abatement time needed to correct any alleged violations should be given.

5. Give the senior compliance.

3.9 After the Inspection

1. The Manager of Safety should be called to discuss the preliminary results of the inspection.

2. The Manager of Safety should immediately be sent copies of all notes and photographs taken.

3. The Manager of Safety shall call the S&W Energy Corporate Safety Department to discuss the preliminary results of the inspection.

3.10 Upon Receiving a Citation

1. The Manager of Safety should be notified immediately, as there will be only a limited period of time (15 working days) to make a decision as to how to best handle the citation. Date stamp the citation as of the date received and fax a copy to Corporate Safety

2. Make a copy for your record and send the original to corporate safety.

3.11 Citation

Process

1. The Compliance Officer has the authority to request any condition that poses imminent danger be corrected immediately. If the situation is not abated, he can secure an injunction through the U.S. District Court requiring immediate

correction, or suspension of the work until the condition is corrected. 2. The citation will detail the alleged violation(s) and the standard violated. A

definite length of time for correction (abatement will be set and a monetary penalty proposed.

3. A copy of the citation must be posted at or near the place where the violation occurred. DO NOT POST THE PROPOSED PENALTY COLUMN.

4. The employer may appeal the citation and proposed penalty within 15 working days of the date the citation was received or he/she loses his/her right to appeal.