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Recommendation 020 E 2007 MAIN COMPANY (Revised )

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Recommendation 020 E 2007 MAIN COMPANY (Revised 5.5.2008)

Background

Previously, confusion as regards the responsibility for and coordination of HSE efforts at the worksite has arisen during the construction of processing installations and facilities. Lately, the removal and scrapping of installations has also raised the issue again. The Working Environment Act (AML) requires that a Main Company is in place if there are multiple employers at the worksite.

On this basis, SfS wants to implement Best Practice for the establishment and handling of the Main Company responsibility.

The Main Company responsibility is regulated in Section 2-2 of the AML.

SfS would like to call attention to the fact that an agreement between OLF and the Norwegian Shipowners' Association (NR) already exists as to the identity of the Main Company on mobile installations in the petroleum activities.

See http://www.olf.no/arbeidsliv/avtaler/?15154.pdf

Definitions

Licensee

Ref. Section 4g of the Framework Regulations:

A physical or legal person, or several such persons, who have a license to explore, transport or produce under the provisions of the Petroleum Act or earlier legislation. If a license has been granted to several persons jointly, the term licensee may mean the licensees jointly or individually.

Operator

Ref. Section 4e of the Framework Regulations:

The party which handles the daily management of the petroleum activities on behalf of the licensee(s).

Builder

Ref. Section 2c of the Regulations relating to safety and health requirements on construction sites:

Any physical/actual person or body corporate that commissions work on a building or construction project.

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Technical service provider

The party which manages the daily operation of the petroleum activities on behalf of the operator.

Main Company

The Main Company is responsible for coordinating the safety and environmental efforts of the individual players at the workplace

Main responsibility

The operator/builder shall be responsible for defining the Main Company and the planning and implementation of the Main Company's tasks.

The Main Company responsibility must be planned according to the following criteria:

 When should the Main Company responsibility be established

 Which party should be the Main Company for which area/activity Which geographical/activity-related area is covered by the Main Company responsibility (pay particular attention to interfaces such as between e.g. hook- up, completion and handover)

 When any transfer of Main Company responsibility should take place

 The responsibility must be stated in all relevant contracts

 The responsibility must be described

 Any compensation for the Main Company tasks must be contractually agreed

 When any transfer of Main Company responsibility from the "old" to the

"new" Main company should take place

Selecting the Main Company

When selecting the Main Company, it is important to have an overview of the project's organisation, geographical location and expected development over time.

The Main Company responsibility should be assigned to the dominant contractor or builder. (The party with the most opportunity to exercise control).

The main challenges in the coordination tasks for the various project constellations are:

1. New facilities

One Main Company at all times (not necessarily the same Main Company all the time)

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resources are allocated in the receiving unit. (This will be fine if the process is properly planned and it has been clarified which activities which go with the responsibility as Main Company.) Challenge in the transfer of Main Company responsibility from contractor to operator/builder (task/transfer plan for Main Company)

Ensure compliance with laws and regulations.

2. New constructions in existing installations Always one Main Company

Challenge in the interference in existing operations (culture, scope, activities, etc.). Focus on communication and joint understanding of roles and responsibilities.

3. New construction performed by another operator inside existing installations

Two Main Companies

The challenges lie in the coordination, control and management of activities which may influence each other's operations and safety. (E.g.

joint work permit system, coordinated access system etc.)

Responsibility as Main Company

Requirements

The following requirements must be met in order to be Main Company:

 that the Main Company has a presence and can exercise authority in the area where the responsibility as a Main Company is defined

 that the Main Company has the necessary resources and competence to handle the tasks

 that the Main Company must have contact with local authorities and supervisory authorities as regards the Main Company's area of responsibility

 that the plan for Main Company responsibility is established (who/what/when/where)

 that a coordination protocol is established for all employers present on the location and that this is signed by all employers and their Safety Delegate service

 that overall HSE strategies, plans and targets must be established

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Duties as a Main Company

In order for the intentions in laws and regulations to be fulfilled, the Main Company must:

 Coordinate plans with a direct effect on HSE through a Coordination protocol

 Establish a coordinating working environment committee for the workplace

 Establish interfaces between the companies

 Coordinate the safety delegate service so that the Main Company's main safety delegate is given the authority to act as coordinating main safety delegate

 Ensure that all employees are connected to a safety delegate at the workplace, and that they are given the chance to submit matters to the respective working environment committees

 Ensure that risk issues which affect more than one enterprise are addressed in a joint forum

 Together with the “polluter” assess if the use of chemicals or chemical products as an integrated part of his work can have an effect adjacent to his workplace, which can expose personnel having another employer than the polluter

 Inform all employers on the workplace about a possible chemical pollution and give advise on precautionary activities (PPE and information) which must be implemented to protect personnel

 Set common acceptance criteria (accumulated values)

 Coordinate working hours/shift plans where these have an effect on other companies

 Coordinate internal HSE information and meeting activities

 Coordinate reporting of undesirable incidents and hazardous situations

 Check that prevailing laws and regulations are made available for and are understood by both Norwegian-speaking and other employees

 Coordinate HSE measures which concern the entire workplace

 Make joint emergency contingency plans known

 Coordinate and carry out joint emergency preparedness drills

 Coordinate counting of crew lists (emergency preparedness)

 Coordinate the audit plans of the individual companies where these interact

 Ensure that all employers at the workplace have an AKAN (the Norwegian Tripartite Committee for the Prevention of Alcohol and Drug Problems in the Workplace) programme to offer their employees

 Ensure that safety delegates and safety and health personnel have the necessary insight into the work operations at the workplace

 Safeguard any transfer of Main Company responsibility (this responsibility lies with the builder)

Necessary measures for the Main Company

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 right of sanction in the event of non-compliance (e.g. cancelling contract)

Employer responsibility

The above does not exempt the individual employer from his statutory and regulatory responsibility

Employee responsibility

The employee is responsible for contributing to the establishment of a Main Company and following up that the arrangement works as intended

Requirements for all employers

In order for the Main Company to be able to exercise its responsibility, all relevant employers:

 have an HSE management system which meets statutory and regulatory requirements

 sign a coordination protocol which must reflect the updated plans

 ensure that a safety delegate has been elected/appointed for their area

 coordinate the safety delegate services and recognise the role of the coordinating main safety delegate

 comply with common acceptance criteria and other provisions given by the Main Company

 have a system for keeping track of the crew

 make joint emergency preparedness plans known, and participate in drills where expected

 Adapt own meeting activity so that this can be coordinated with the joint HSE meeting activity

 coordinate own audit plan where it may interact with those of other players

 be proactive as regards HSE information which may be relevant for other companies

 report undesirable incidents and hazardous situations to the Main Company

 ensure that risk issues which affect more than one enterprise are addressed in a joint forum

 have the responsibility to give employees adequate competence to handle chemicals or chemical components which are a result of the work, or exposure of chemical components resulting from work on an adjacent workplace

See attachment: Coordination protocol

References

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