Guidelines for Improving Contractor Safety Performance in the Natural Gas Industry

Transcription

1 Guidelines for Improving Contractor Safety Performance in the Natural Gas Industry Copyright 2007 American Gas Association, All Rights Reserved See Notice and Disclaimer on final page. October 10, 2007 AGA Safety & Occupational Health Committee GUIDELINES FOR IMPROVING CONTRACTOR SAFETY PERFORMANCE IN THE NATURAL GAS INDUSTRY REV: 04/03/07 1

2 TABLE OF CONTENTS INTRODUCTION SCOPE AND LIMITATIONS WHY IMPROVE CONTRACTOR SAFETY PERFORMANCE IDENTIFYING SAFETY AND HEALTH HAZARDS CONTRACT SAFETY LANGUAGE CONTRACTOR BID PACKAGE SELECTING SAFE CONTRACTORS PAST INJURY AND ILLNESS EXPERIENCE EXPERIENCE MODIFICATION RATES OSHA INCIDENCE RATES CURRENT SAFETY PRACTICES PRE-JOB SAFETY MEETING AND SITE ORIENTATION. REVIEWING CONTRACTOR SAFETY PERFORMANCE MAINTAINING EFFECTIVE COMMUNICATION POST CONTRACT EVALUATION REFERENCES: APPENDIX A SAFETY AND HEALTH HAZARDOUS ASSESSMENT FOR CONTRACT WORK APPENDIX B CONTRACTOR SAFETY AND HEALTH QUESTIONNAIRE APPENDIX C CONTRACTOR SAFETY AND HEALTH SITE ORIENTATION APPENDIX D CONTRACTOR SAFETY AND HEALTH POST PROJECT EVALUATION APPENDIX E REGULATORY COMPLIANCE AND CONTRACTORS GUIDELINES FOR IMPROVING CONTRACTOR SAFETY PERFORMANCE IN THE NATURAL GAS INDUSTRY REV: 04/03/07 2

3 INTRODUCTION It is good business for Owners and Contractors to continuously improve workplace safety. This publication has been developed to help Natural Gas Distribution and Transmission companies improve their safety and health process. Every year contractors are impacting the profitability of the Natural Gas Industry because of delays caused by accidents, excavation related damage, possible third party liability suits and other direct and indirect costs associated with poor safety performance. Owners can contribute to improved contractor safety and occupational health performance by the following actions: Making a deliberate management decision to improve the safety performance of the contractors they utilize. Identifying and informing contractors of potential safety and health hazards associated with the project. Including specific safety language in contracts. Including site specific safety and health requirements in contractor bid packages. Conducting pre-bid meetings with contractors to address specific safety requirements. Requesting safety and health data from each prospective contractor, and using this data to evaluate contractors during selection process. Selecting Contractors who demonstrate a commitment to a safety and health program which is appropriate for the work being performed and supported by its top management. Conducting pre job meetings and site orientation to address safety expectations. Communicating planning and scheduling of contract and in-house activities to prevent the creation of safety and health hazards. Assessing the safety and health performance of contractors during the job when necessary. Ensuring Contractors meet Safety and health requirements and expectations. Performing post job evaluation of contractors' safety and health performance and sharing the results of the evaluation with the appropriate management personnel of the contractor. It takes time and effort to implement the above actions to improve the safety and health performance of contractors. However, implementation will enable the Owner and the Contractor to develop a mutual understanding for achieving excellent health and safety performance. Because several departments are involved in the administration of contractors, it is suggested the representatives of the following departments be part of the team that develops a contractor safety program: Safety Legal Inspections GUIDELINES FOR IMPROVING CONTRACTOR SAFETY PERFORMANCE IN THE NATURAL GAS INDUSTRY REV: 04/03/07 3

4 Risk Management Operations Engineering Procurement SCOPE AND LIMITATIONS It is recognized that contractors have the primary responsibility for the safety and health of their employees. The contractor is responsible for developing a safety and health process that assures compliance with local, state and federal laws. Contractors are also responsible for providing employee training which meets regulatory requirements and assures safe practices. Nothing in this publication is intended to change contractors responsibilities. Rather, these guidelines are intended to help the owner and contractor improve overall safety performance while preserving the independent contractor relationship. These guidelines are primarily directed at construction, maintenance and safety sensitive related activities, and may not apply to incidental contractors such as janitorial, laundry, delivery, and other service oriented contracts. WHY IMPROVE CONTRACTOR SAFETY PERFORMANCE? A contractor's ability to control accidents is a clear indicator of their ability to control all aspects of the work they perform. (The following information is based on the Business Roundtable A-3 Report Improving Construction Safety Performance ) A. HUMANITARIAN Owners have a moral obligation to provide a safe work environment and to prevent injuries to employees and non-employees. B. ECONOMIC 1. The total costs of work accidents have been steadily increasing. These costs are a significant expense to all companies and this expense contributes to the final cost of all goods and services. 2. Workers' Compensation Insurance is the most expensive of any insurance carried. Annual costs of workers' compensation and liability insurance to the industrial, utility and commercial construction industry is in the billions of dollars. It is not uncommon for contractors with poor safety performance to pay twice the premium for workers' compensation insurance versus those with the best safety performance. 3. The direct costs of injuries (insured costs, excluding insurance premiums) include: GUIDELINES FOR IMPROVING CONTRACTOR SAFETY PERFORMANCE IN THE NATURAL GAS INDUSTRY REV: 04/03/07 4

5 Medical and hospital costs. Rehabilitation costs. Workers' compensations benefits, both temporary and total disability. Property losses. Liability losses. 4. The indirect costs of injuries (non-insured costs), which impact the owner as well as the contractor form the bulk of total cost and include: Loss of productivity. Disrupted schedules. Investigations and report preparation. Training of replacement employees. Cleanup and repair. Wages for nonproductive time. Adverse publicity. Owner civil liability. Equipment damage. 5. A conservative ratio of indirect costs to direct costs is 4 to 10 times. If a company experiences direct worker compensation losses of $50,000, the indirect costs associated with the direct costs are likely to amount to an additional $200,000 to $500,000! 6. The costs of injuries, both direct and indirect, are ultimately passed to and paid by the owner. Increased insurance costs, paid by the contractor, will result in increased contract prices paid by the owner. 7. The costs of a Safety and Occupational Health Program (3 percent of direct labor) are small in comparison to the costs of injuries, and include: Safety and medical personnel salaries. Safety meetings. Inspections. Safety orientations. Personal protective equipment. Wellness programs. Safety and health training C. OTHER REASONS FOR OWNERS TO BE CONCERNED ABOUT CONTRACTOR SAFETY PERFORMANCE INCLUDE: 1. Improved productivity and adherence to schedule: Research has shown that contractors with poor safety performance also experience problems in maintaining schedule and, controlling cost. 2. Better quality work: GUIDELINES FOR IMPROVING CONTRACTOR SAFETY PERFORMANCE IN THE NATURAL GAS INDUSTRY REV: 04/03/07 5

6 In recent years safety and quality have become synonymous. A contractor s safety performance is an indicator of that contractor s dedication to the principles of quality. 3. Reduced exposure to bad publicity: Accidents involving natural gas systems create a negative public image for our industry. Typically, in the case of major construction accidents the media often identifies the owner, not the contractor. 4. Decreased disruption of owners, employees and facilities: Contractor accidents can endanger the safety of your own employees, and impact the profitability of your operation through indirect costs. 5. Enhanced labor relations: Requiring consistent safety standards reinforces management's commitment to safety. Double standards can jeopardize the success of your whole safety effort. 6. Decreased liability from third party injury claims: Since the contractor is protected by workers compensation laws, the injured employee may look to the owner to receive additional compensation. Fewer contractor injuries mean less exposure to this type of civil action. 7. Reduced regulation: Improving the overall safety of industry operations improves public perception and decreases the perceived need for regulatory agencies to become more involved in the Natural Gas Industry. IDENTIFYING SAFETY AND HEALTH HAZARDS The key to improving contractor safety and health performance is to identify known and potential hazards at the initial stage of the project. Identifying hazards up front can allow the owner and contractor to proactively address them through each phase of the contractual process and construction project. See Appendix A Safety and Health Hazard Identification Checklist for Contract Work. This checklist is designed to assist owners in identifying possible safety and health hazards associated with construction projects. Completion of this checklist and an understanding of the underlying issues will assist the owner and contractor in managing them efficiently and correctly. It can also guide the owner in specifying the appropriate provisions to incorporate into various contract documents. GUIDELINES FOR IMPROVING CONTRACTOR SAFETY PERFORMANCE IN THE NATURAL GAS INDUSTRY REV: 04/03/07 6

7 CONTRACT SAFETY LANGUAGE Although standard safety language (for example, "the contractor must comply with all federal, state, and local safety regulations") may be included in a contract, additional safety language may be necessary to clearly convey the owner s expectations. Safety procedures vary among companies and job sites and may have a significant impact on a contractor's bid and ability to maintain a safe work place. A specific safety addendum can be developed and attached to the contract, when more specific safety requirements must be addressed by the contractor. An addendum to the existing safety language can minimize the need to modify existing contract language and ensures that each bidder is aware of specific job-site safety requirements. CONTRACTOR BID PACKAGE An owner can inform a contractor of identified hazards and safety expectations by clearly stating requirements in its bid package or during a pre-bid safety meeting. At this time the owner can also request specific safety information from the contractor that can be used to evaluate the contractors past injury experience and, current safety practices. A qualification or pre-selection questionnaire can be used to collect the information required for the evaluation (see appendix B for sample questionnaire). The questionnaire can be given to each bidder or prospective contractor with the bid or proposal documents. The contractor completes this questionnaire and submits it along with its bid or proposal. SELECTING SAFE CONTRACTORS The selection of a qualified contractor is the most important step in obtaining safe contractor performance. Research has shown that screening contractors by their past injury experience and current safety practices is an easy and effective method to improve overall safety and health. Two kinds of information can be requested to evaluate a prospective contractors safety performance. Past injury and illness experience and information on the contractor s current safety practices. PAST INJURY AND ILLNESS EXPERIENCE Examining a contractor's past safety record can provide an objective (although somewhat dated) prediction of future performance. The most reliable health and safety performance indicators (lagging GUIDELINES FOR IMPROVING CONTRACTOR SAFETY PERFORMANCE IN THE NATURAL GAS INDUSTRY REV: 04/03/07 7

8 indicators) are insurance Experience Modification Rates (EMR) and OSHA incidence rates requested for the past three years. EXPERIENCE MODIFICATION RATES Workers' compensation experience modification rates (EMRs) are used by the U.S. insurance industry to determine premiums for workers' compensation insurance. In its simplest form, the EMR is the ratio of actual losses to expected losses over a moving three-year period. The advantage of this measure is that it is the most difficult for a contractor to manipulate. State rating bureaus use premium and claim data supplied by insurance carriers to calculate an employers EMR. Studies have shown that typical EMRs for construction contractors range from 0.3 to 2.0. An EMR less than 1 indicates above average injury and illness performance and an EMR greater than 1 indicates below average performance. OSHA INCIDENCE RATES: OSHA requires all onshore employers with 10 or more employees to record injury and illness information on OSHA form 300, "Log of Work-Related Injuries and Illnesses." The employer must retain complete forms for 5 years. Data on the following items are readily available from contractors, completed OSHA 300 log: a. Fatalities. b. Injuries and illnesses involving days away form work. c. Injuries and illnesses without lost workdays. d. Days away from work. e. Days of restricted work activity. If the contractor knows the total number of employee hours worked during the year, the contractor can easily compute incidence rates related to a common exposure base of 100 fulltime workers for any of the items above by using the following formula: Incidence rate = (N/H)(200,000) Where N= number of injuries and /or illness or lost workdays, etc. H= total hours worked by all employees during a year. If the hours are unknown, hours per employee month should be used. 200,000 = base for 100 full-time-equivalent workers (working 40 hours per week, 50 weeks per year). The following data may be particularly useful in evaluating a contractor: a. Number of fatalities. GUIDELINES FOR IMPROVING CONTRACTOR SAFETY PERFORMANCE IN THE NATURAL GAS INDUSTRY REV: 04/03/07 8

9 b. Incidence rate for case involving days away from work. c. Incidence rate for total OSHA-recordable cases. (This rate provides the broadest statistical base) d. Incidence rate for number of days away form work. There is some correlation between EMRs and OSHA Incidence Rates, when used in tandem, they can effectively indicate a contractor's past safety performance, especially when trends (increases or decreases) are considered. CURRENT SAFETY PRACTICES An owner may also wish to examine more subjective data (Leading Indicators) to determine a contractor's safety attitudes, practices and management commitment. Information on the following may be requested to determine if, and to what extent a contractor may have the ability to effectively manage identified or potential safety and health hazards by using proven safety practices. (see Appendix B for sample questionnaire) Is management held accountable for accidents? Does the contractor have an established accident accountability system for all levels of management? The contractor's safety staffing plan including who is the contact for safety, their qualifications and authority. A written safety and health program including a description of the contractor's programs to comply with applicable regulatory requirements. A description of the contractor's safety orientation for new employees. Enforcement of safe practices including their disciplinary procedure regarding safety violations. Type and frequency of safety or toolbox meetings, samples of meeting materials and minutes. The contractor's policy regarding alcohol, controlled substances and firearms. Does the contractor conduct accident investigations and correct identified hazards? If yes, samples of investigation reports. Are safety inspections conducted? If yes by whom and how often, samples of inspection reports. Has the contractor received any citations from a regulatory agency during the last three years? GUIDELINES FOR IMPROVING CONTRACTOR SAFETY PERFORMANCE IN THE NATURAL GAS INDUSTRY REV: 04/03/07 9

10 Has the contractor provided appropriate safety training for the work to be performed? Examples of contractor training topics include the following: 1. Hazard communication. 2. Personal Protective equipment. 3. First aid and CPR 4. Fire prevention and protection. 5. Forklift and crane operations. 6. Hot work and welding. 7. Entry to confined spaces. 8. Asbestos removal. 9. Work permits. 10. Respiratory protection. 11. Scaffolding requirements. 12. Control of hazardous energy sources. 13. Work area protection -- warning signs, signals, barricades etc. 14. Excavating, trenching, and shoring. 15. Emergency evacuation and emergency medical assistance. 16. Naturally occurring radioactive material. 17. Hazardous waste operations and emergency response plans. 18. Fall protection. 19. Lead & Toxic Coatings PRE-JOB SAFETY MEETING AND SITE ORIENTATION After the contract has been awarded, a pre job safety meeting should be held with the contract employees who will be directly responsible for the planned work. This meeting is important because often these contract employees were not the employees who prepared the bid or attended the pre bid meeting. A walk through and safety orientation of the job site should take place between the owner and contractor representatives including specific safety requirements pertinent to the project. (see appendix c for sample site orientation check list) GUIDELINES FOR IMPROVING CONTRACTOR SAFETY PERFORMANCE IN THE NATURAL GAS INDUSTRY REV: 04/03/07 10

11 REVIEWING CONTRACTOR SAFETY PERFORMANCE The owner should periodically review its job site to verify that contractors performing work on site have effective safety programs that address previously identified issues, applicable regulations and comply with safety provisions included in the contract. Conducting periodic reviews of the job site with contractor management is an effective way to assess the contractors' performance. Identified problems should always be communicated and corrected through the contractors' management. Owners often want to maintain the arms length relationship with independent contractors by ensuring contractor supervision remains in control of contractor employees. Only during imminent danger situations should owners take control of contractor personnel. MAINTAINING EFFECTIVE COMMUNICATIONS Continual discussions between the owner and the contractor are a necessity to maintaining a safe and healthy workplace. Hazardous conditions may arise due to day-to-day operations between contract and inhouse activities, which might not have been discussed or identified previously. Open communication can be maintained by including a contractor representative in daily planning and scheduling meetings. No restrictions should be placed on the discussion and correction of any safety and health related issue. An effective communication method is to require the contractor to report all injuries that occur while working for the owner. This reinforces the importance of safety to the contractor. It also permits owner to perform tracking and trending, and prompts incident investigations, when necessary. POST CONTRACT EVALUATION Each completed project can be reviewed and evaluated from a safety perspective (see appendix d for sample post project evaluation form). This information can be used by the owner along with previous information collected to establish a pre approved bidders list. Contractors who have been previously selected and demonstrated a high level of safety performance can be included on the pre approved list. GUIDELINES FOR IMPROVING CONTRACTOR SAFETY PERFORMANCE IN THE NATURAL GAS INDUSTRY REV: 04/03/07 11

12 Sources for Further Information: 1. The Construct Users Roundtable (CURT) See CURT publications UP-801 through UP American Petroleum Institute (API) STD Contractor Safety Performance Process RP 2221 Managers Guide to Implementing a Contractor Safety Program 3. The Business Roundtable "Improving Construction Safety Performance" (Report A-3), The Business Roundtable, 200 Park Avenue, New York, NY The Workers Compensation Crisis, Safety Excellence Will Make A Difference, The Business Roundtable January, 1991 GUIDELINES FOR IMPROVING CONTRACTOR SAFETY PERFORMANCE IN THE NATURAL GAS INDUSTRY REV: 04/03/07 12

13 APPENDIX A SAFETY AND HEALTH HAZARD ASSESSMENT SURVEY This checklist is designed to assist in identifying possible safety and health hazards associated with contract work so that they may communicate these hazards effectively to prospective contractors at the time of bid request, along with requirements for personal protective equipment that must be worn by contractor employees during the project. This form and all supporting information should be kept on file with the contract. Description of Project: Company Representative: Start Date: Completion Date: A. Potential Safety Hazards: 1. Impact Hazards 2. Penetration or Puncture Hazards 3. Compression Hazards 4. Cold Temperature Exposure 5. Hot Temperature Exposure 6. Fire Potential 7. Fall Potential (greater than 4 feet) 8. Heavy Lifting Potential 9. Electrical Hazards 10. Hazardous Energy Control (Lockout/Tagout) 11. Hot Work 12. Excavations 13. Hazardous Atmosphere 14. Other Potential Hazards Explain: GUIDELINES FOR IMPROVING CONTRACTOR SAFETY PERFORMANCE IN THE NATURAL GAS INDUSTRY REV: 04/03/07 13

14 B. Potential Health Hazards: 1. Respiratory Hazards Painting or applying other surface coatings Oxygen deficient atmosphere Abrasive blasting Refractory rip-out or installation Work inside a dirty boiler Grinding on boiler tube deposits Welding inside a boiler Welding on alloy steels Chemical cleaning Welding, cutting, grinding, scraping or sanding on painted surfaces Work involving the disturbance, handling or abatement of asbestos Application of Pesticides, Herbicides, Etc. Invasive trenching or digging in contaminated soil 2. Ionizing Radiation 3. Non-Ionizing Radiation 4. Excessive Noise 5. Confined Space Entry 6. Ergonomic Hazards 7. Poor Lighting Conditions 8. Other Potential Hazards Explain: C. Personal Protective Equipment: 1. Head - Type: 2. Eye - Type: 3. Ear - Type: 4. Foot - Type: 5. Hand - Type: 5. Clothing - Type: 6. Respirator - Type: 7. Fall Protection - Type: 8. Other - Type: GUIDELINES FOR IMPROVING CONTRACTOR SAFETY PERFORMANCE IN THE NATURAL GAS INDUSTRY REV: 04/03/07 14

15 APPENDIX B CONTRACTOR SAFETY AND HEALTH QUESTIONNAIRE The Natural Gas Industry is committed to providing a safe and healthy workplace for employees, contractors and the general public. To qualify to perform on-site work, contractors must provide the following information and agree to obtain the following information from all subcontractors utilized and provide it upon request. Contractor/Consultant Name: Date: Contracted Activity: Contractor Representative: Phone #: Request For Quotation: The following information must be for the facility providing labor. We are not interested in overall statistics at a national or international level. Describe the geographic area this questionnaire applies to: 1. In the table below, provide the last three years of history for the area or region to which this questionnaire applies. In addition, attach copies of applicable OSHA 300 logs and verification of your EMR/discount rate information. ITEM DESCRIPTION A Interstate Experience Modification Rate (EMR) B Recordable Incident Rate* (see B Below) C Lost Time Incident Rate* (see C Below) D Using the OSHA #300 logs from the facility providing labor, please document the following: Number of Injuries and Illnesses E Number of Lost Workday Cases F Number of Injury Related Fatalities G H Total Number of Employees Employee Hours Worked Per Year (If unknown use # of employees 2080) * (B) Rate = item D x 200,000 by item H * (C) Rate = item E x 200,000 by item H 2. Does your company have a written safety and health program? Yes No Written Hazard Communication Program Yes No 3. Does your company use subcontractors? Yes No If yes, do you qualify subcontractors based on their ability to address safety, health and environmental requirements? Yes No Do you verify that they meet regulatory requirements? Yes No 4. Are all documents, pertaining to this questionnaire, available for auditing? Yes No If no, please explain: 5. Who in your company coordinates your safety and health program? Name/Title: Phone: GUIDELINES FOR IMPROVING CONTRACTOR SAFETY PERFORMANCE IN THE NATURAL GAS INDUSTRY REV: 04/03/07 15

16 TRAINING: Please respond to all highlighted items with Yes, No or N.A. (Estimated percentage of Employees should reflect the percentage of employees providing labor who have received training). PROGRAMS/TRAINING Reference Source Program is Documented and Written Yes/No/NA Estimated % of Employees Providing Services who have Received Training Frequency of Training for Individual Employees Individual Employee Training Documented Yes/No/NA Asbestos Class IV (awareness) OSHA 29 CFR Asbestos Class III OSHA 29 CFR Asbestos Class I and II OSHA 29 CFR Confined Space Entry - OSHA 29 CFR (g) Cranes OSHA 29 CFR 1926 DOT HM-126\f Hazmat Employee DOT 49 CFR Drug Awareness DOT 46 CFR & Electric Power Gen., Tran, Dist., OSHA CFR 29 CFR Electrical Safety OSHA CFR 29 CFR Emergency Response Excavtions Fall Protection First Aid/CPR OSHA 29 CFR (a) OSHA 29 CFR OSHA 29 CFR OSHA 29 CFR (b) Forklifts (Power Industrial Trucks) OSHA 29 CFR (1) HAZCOM OSHA 29 CFR (h) Hazwoper - Awareness Level OSHA 29 CFR Hazwoper 8 Hour OSHA 29 CFR Hazwoper 24 Hour OSHA 29 CFR Hazwoper 40 Hour OSHA 29 CFR Hazwoper Supervisor 8 hour OSHA 29 CFR Hearing Conservation OSHA 29 CFR Incipient Fire Fighting Lead Worker Lead Supervisor Lockout/tagout Authorized Person Lockout/Tagout - Affected Person New Employee Orientation Personal Protective Equip. Process Safety Mgmt. OSHA 29 CFR (g) OSHA 29 CFR (l) see above OSHA 29 CFR (c)(7) see above OSHA 29 CFR (g)(1) OSHA CFR (f) OSHA 29 CFR (g)(1) Respiratory Protection OSHA 29 CFR Welding and Burning OSHA 29 CFR (a)(2)(xii)(c) Scaffolding OSHA 29 CFR GUIDELINES FOR IMPROVING CONTRACTOR SAFETY PERFORMANCE IN THE NATURAL GAS INDUSTRY REV: 04/03/07 16

17 GENERAL: 1. Has your company received any citations from a regulatory agency during the last three years? Yes No If yes, please describe citations. 2. Does your company perform Job Safety Analysis (JSA)? Yes No AUDITING: 1. Does your company perform safety audits/reviews? Yes No If yes, are safety audits documented? Yes No 2. Who performs the safety audit/review and how often? Title: PERSONAL PROTECTIVE EQUIPMENT: 1.Does your company require the following: Hard Hats (ANSI-Z89.1)(29 CFR ) NA Yes No Safety shoes (ANSI-Z41.1)(29CFR ) NA Yes No Eye protection (ANSI-Z87.1)(29 CFR ) NA Yes No Hand protection (29 CFR ) NA Yes No Hearing protection (29 CFR ) NA Yes No Fall protection (29 CFR ) NA Yes No Respiratory protectio n(29 CFR ) NA Yes No 2. In addition to regulatory required Personal Protective Equipment, what other PPE is required or supplied? If any, please describe or list: SAFETY MEETINGS: 1. Does your company have scheduled, documented employee safety meetings? Yes No If yes, how often? 2. Who conducts the safety meetings? Job Title: 3. Do managers/supervisors participate in the safety meetings? Yes No 4. Does your company hold work-site (tailgate) safety meetings? Yes No If yes, how often? 5. Who conducts these safety meetings? Title: 6. Is documentation of safety meetings available? Yes No DRUG SCREENING OR TESTING: 1. Does your company have a written policy regarding drug screening/testing of employees? Yes No 2. Does your drug testing program conform to DOT requirements? Yes No If yes, which DOT regulations is your program designed to satisfy Research and Special Projects Administration - Pipeline Yes No Federal Highway Administration Yes No 3. Indicate the circumstances in which your company's employees may be subject to drug screening. Employment Probable Cause Periodic Random Post Accident Other: GUIDELINES FOR IMPROVING CONTRACTOR SAFETY PERFORMANCE IN THE NATURAL GAS INDUSTRY REV: 04/03/07 17

18 ACCIDENT/INCIDENT INVESTIGATIONS: 1. Does your company have policy requiring written accidents/incident reports? Yes No 2. Does your company conduct accident/incident investigating? Yes No If yes, please attach a brief outline of procedures: 3. Does your company document, investigate, and discuss near miss accidents? Yes No If yes, is documentation available? Yes No 4. Are accident/incident reports reviewed by managers/supervisors? Yes No GUIDELINES FOR IMPROVING CONTRACTOR SAFETY PERFORMANCE IN THE NATURAL GAS INDUSTRY REV: 04/03/07 18

19 APPENDIX C CONTRACTOR SAFETY AND HEALTH SITE ORIENTATION DATE: CONTRACTOR: PHONE #: IF SUBCONTRACTOR, INDICATE PRIME: CONTRACTOR REPRESENTATIVE NAME\TITLE: CONTRACTOR SUPERVISOR IN CHARGE: BRIEF CONTRACTOR ON FOLLOWING: Site emergency evacuation/response plan Hazard communication requirements Incident notification (injuries, fires, chemical spills/releases, property damage, near misses) Notification number: Clearance Procedure Training INFORM CONTRACTOR OF IDENTIFIED SAFETY AND HEALTH HAZARDS AND COMPLIANCE ISSUES ASSOCIATED WITH THE WORK TO BE PERFORMED (reference Hazard Assessment Survey)(Appendix B): Asbestos removal Chemical Cleaning Processes Control of hazardous energy sources (lockout-tagout). Emergency medical assistance Entry to confined spaces Excavating, trenching and shoring Fall protection Fire prevention and protection Forklift and crane operations Hot work and welding Hazardous Chemicals Hazardous waste operations Lead & Toxic Coatings Pesticides PCB s Personal Protective equipment PSM covered processes. Respiratory protection Installation of Scaffolding Warning signs, signals, and barricades Waste disposal requirements Work permit requirements Site specific air and water permit impacts DETERMINE THE FOLLOWING REGARDING THE CONTRACTOR: Does the contractor have the appropriate procedures/programs to address identified hazards/compliance issues? Do contractor's employees have appropriate qualifications and training to address identified hazards? Have required MSDS s been exchanged and provided to site management? Have required excavation notifications been made to authorities I understand the safety and health hazards associated with this project and the regulatory requirements which our employees and subcontractors will have to comply with while working on the project. I accept the responsibility of informing our employees and subcontractors of safety and health hazards, and regulatory requirements associated with this project. Contractor Representative: Orientation given by: Date: Date: GUIDELINES FOR IMPROVING CONTRACTOR SAFETY PERFORMANCE IN THE NATURAL GAS INDUSTRY REV: 04/03/07 19

20 APPENDIX D CONTRACTOR SAFETY & HEALTH POST PROJECT EVALUATION DATE: CONTRACTOR: CONTRACTOR REPRESENTATIVE: PROJECT DESCRIPTION: LENGTH: FROM TO MAN-HOURS WORKED: ESTIMATED TOTAL COST: DID THE CONTRACTOR ADHERE TO REQUIRED SAFETY AND HEALTH REGULATIONS? YES NO DID THE CONTRACTOR CORRECT SAFETY AND HEALTH PROBLEMS BROUGHT TO THEIR ATTENTION? YES NO DID THE CONTRACTOR ADEQUATELY COORDINATE CONTRACT ACTIVITIES WITH IN-HOUSE ACTIVITIES TO PREVENT SAFETY AND HEALTH PROBLEMS? YES NO DID THE CONTRACTOR COMMUNICATE SAFETY AND HEALTH CONCERNS TO ITS OWN EMPLOYEES (THROUGH SAFETY MTGS. OR TAILGATE MTGS. ECT.)? YES NO DID THE CONTRACTOR PROMPTLY REPORT ACCIDENTS AND PROVIDE REPORTS? YES NO PROJECT INJURY EXPERIENCE: # Injuries and illnesses with lost work days. # Injuries and illnesses with restricted workdays. # Injuries and illnesses without lost or restricted workdays. COMMENTS: PROJECT COORDINATOR: GUIDELINES FOR IMPROVING CONTRACTOR SAFETY PERFORMANCE IN THE NATURAL GAS INDUSTRY REV: 04/03/07 20

21 APPENDIX E REGULATORY COMPLIANCE AND CONTRACTORS Hazard communication (e)(2) (2) Multi-employer workplaces. Employers who produce, use, or store hazardous chemicals at a workplace in such a way that the employees of other employer(s) may be exposed (for example, employees of a construction contractor working on-site) shall additionally ensure that the hazard communication programs developed and implemented under this paragraph (e) include the following: (i) The methods the employer will use to provide the other employer(s) on-site access to material safety data sheets for each hazardous chemical the other employer(s)' employees may be exposed to while working; (ii) The methods the employer will use to inform the other employer(s) of any precautionary measures that need to be taken to protect employees during the workplace's normal operating conditions and in foreseeable emergencies; and, (iii) The methods the employer will use to inform the other employer(s) of the labeling system used in the workplace Lead (1)(1) (1) General. (i) The employer shall communicate information concerning lead hazards according to the requirements of OSHA's Hazard Communication Standard for the construction industry, 29 CFR , including but not limited to the requirements concerning warning signs and labels, material safety data sheets (MSDS), and employee information and training. In addition, employers shall comply with the following requirements: Asbestos. (d) Multi-employer worksites (d)(1) (1) On multi-employer worksites, an employer performing work requiring the establishment of a regulated area shall inform other employers on the site of the nature of the employer's work with asbestos and/or PACM, of the existence of and requirements pertaining to regulated areas, and the measures taken to ensure that employees of such other employers are not exposed to asbestos. (2) Asbestos hazards at a multi-employer work site shall be abated by the contractor who created or controls the source of asbestos contamination. For example, if there is a significant breach of an enclosure containing Class I work, the employer responsible for erecting the enclosure shall repair the breach immediately. (3) In addition, all employers of employees exposed to asbestos hazards shall comply with applicable protective provisions to protect their employees. For example, if employees working immediately adjacent to a Class I asbestos job are exposed to asbestos due to the inadequate containment of such job, their employer shall either remove the employees from the area until the enclosure breach is repaired; or perform an initial exposure assessment pursuant to (f)(1) of this section. (4) All employers of employees working adjacent to regulated areas established by another employer on a multi-employer worksite, shall take steps on a daily basis to ascertain the integrity of the enclosure and/or the effectiveness of the control method relied on by the primary asbestos contractor to assure that asbestos fibers do not migrate to such adjacent areas. (5) All general contractors on a construction project which includes work covered by this standard shall be deemed to exercise general supervisory authority over the work covered by this standard, even though the general contractor is not qualified to serve as the asbestos "competent person" as defined by paragraph (b) of this section. As supervisor of the entire project, the GUIDELINES FOR IMPROVING CONTRACTOR SAFETY PERFORMANCE IN THE NATURAL GAS INDUSTRY REV: 04/03/07 21

22 general contractor shall ascertain whether the asbestos contractor is in compliance with this standard, and shall require suc h contractor to come into compliance with this standard when necessary Permit-required confined spaces. See AGA letter Dated 6/6/94 (OSHA confined Space Entry Gas Industry Exemption) (c)(8) (8) When an employer (host employer) arranges to have employees of another employer (contractor) perform work that involves permit space entry, the host employer shall: (i) Inform the contractor that the workplace contains permit spaces and that permit space entry is allowed only through compliance with a permit space program meeting the requirements of this section; (ii) Apprise the contractor of the elements, including the hazards identified and the host employer's experience with the space, that make the space in question a permit space; (iii) Apprise the contractor of any precautions or procedures that the host employer has implemented for the protectio n of employees in or near permit spaces where contractor personnel will be working; (iv) Coordinate entry operations with the contractor, when both host employer personnel and contractor personnel will be working in or near permit spaces, as required by paragraph (d)(11) of this section; and (v) Debrief the contractor at the conclusion of the entry operations regarding the permit space program followed and regarding any hazards confronted or created in permit spaces during entry operations (c) (9) In addition to complying with the permit space requirements that apply to all employers, each contractor who is retained to perform permit space entry operations shall: (i) Obtain any available information regarding permit space hazards and entry operations from the host employer; (ii) Coordinate entry operations with the host employer, when both host employer personnel and contractor personnel will be working in or near permit spaces, as required by paragraph (d)(11) of this section; and (iii) Inform the host employer of the permit space program that the contractor will follow and of any hazards confronted or created in permit spaces, either through a debriefing or during the entry operation The control of hazardous energy (lockout/tagout) (f)(2) (2) Outside personnel (contractors, etc.). (i) Whenever outside servicing personnel are to be engaged in activities covered by the scope and application of this standar d, the on-site employer and the outside employer shall inform each other of their respective lockout or tagout procedures. (ii) The on-site employer shall ensure that his/her employees understand and comply with the restrictions and prohibitions of the outside employer's energy control program Process safety management of highly hazardous chemicals. OSHA has concluded that current regulations by the office of pipeline safety (OPS) address the hazards of fire and explosion from gas transmission and distribution processes, therefore OSHA is precluded from enforcing its process safety management rule over these hazards. (See AGA letter dated 10/19/92) (h) (h) Contractors. GUIDELINES FOR IMPROVING CONTRACTOR SAFETY PERFORMANCE IN THE NATURAL GAS INDUSTRY REV: 04/03/07 22

23 (1) Application. This paragraph applies to contractors performing maintenance or repair, turnaround, major renovation, or specialty work on or adjacent to a covered process. It does not apply to contractors providing incidental services which do not influence process safety, such as janitorial work, food and drink services, laundry, delivery or other supply services. (2) Employer responsibilities. (i) The employer, when selecting a contractor, shall obtain and evaluate information regarding the contract employer's safety performance and programs. (ii) The employer shall inform contract employers of the known potential fire, explosion, or toxic release hazards related to the contractor's work and the process. (iii) The employer shall explain to contract employers the applicable provisions of the emergency action plan required by paragraph (n) of this section. (iv) The employer shall develop and implement safe work practices consistent with paragraph (f)(4) of this section; to control the entrance, presence and exit of contract employers and contract employees in covered process areas. (v) The employer shall periodically evaluate the performance of contract employers in fulfilling their obligations as specified in paragraph (h)(3) of this section. (vi) The employer shall maintain a contract employee injury and illness log related to the contractor's work in process areas (h)(3) (3) Contract employer responsibilities. (i) The contract employer shall assure that each contract employee is trained in the work practices necessary to safely perform his/her job. (ii) The contract employer shall assure that each contract employee is instructed in the known potential fire, explosion, or toxic release hazards related to his/her job and the process, and the applicable provisions of the emergency action plan. (iii) The contract employer shall document that each contract employee has received and understood the training required by this paragraph. The contract employer shall prepare a record which contains the identity of the contract employee, the date of training, and the means used to verify that the employee understood the training. (iv) The contract employer shall assure that each contract employee follows the safety rules of the facility including the safe work practices required by paragraph (f)(4) of this section. (v) The contract employer shall advise the employer of any unique hazards presented by the contract employer's work, or of any hazards found by the contract employer's work. FOM Chap V-F F. Issuing Citations - Special Circumstances. 2. Multiemployer Worksites. On multiemployer worksites, both construction and non-construction, citations normally shall be issued to employers whose employees are exposed to hazards (the exposing employer). a. Additionally, the following employers normally shall be cited, whether or not their own employees are exposed: (1) The employer who actually creates the hazard (the creating employer); (2) The employer who is responsible, by contract or through actual practice, for safety and health conditions on the worksite; i.e., the employer who has the authority for ensuring that the hazardous condition is corrected (the controlling employer); (3) The employer who has the responsibility for actually correcting the hazard (the correcting employer). 2.b. It must be shown that each employer to be cited has knowledge of the hazardous condition or could have had such knowledge with the exercise of reasonable diligence. (See Chapter IV, B. Lb.(4).) GUIDELINES FOR IMPROVING CONTRACTOR SAFETY PERFORMANCE IN THE NATURAL GAS INDUSTRY REV: 04/03/07 23

24 FOM Chap V-F.2.c. 2.c. Prior to issuing citations to an exposing employer, it must first be determined whether the available facts indicate that employer has a legitimate defense to the citation, as set forth below: (1) The employer did not create the hazard; (2) The employer did not have the responsibility or the authority to have the hazard corrected; (3) The employer did not have the ability to correct or remove the hazard; (4) The employer can demonstrate that the creating, the controlling and/or the correcting employers, as appropriate, have been specifically notified of the hazards to which his/her employees are exposed; (5) The employer has instructed his/her employees to recognize the hazard and, where necessary, informed them how to avoid the dangers associated with it when the hazard was known or with the exercise of reasonable diligence could have been known. (a) Where feasible, an exposing employer must have taken appropriate alternative means of protecting employees from the hazard. (b) When extreme circumstances justify it, the exposing employer shall have removed his/her employees from the job to avoid citation. NOTE: All of these items must be documented in the case file. (See Chapter 111, D.8.a.(5)(b)3.) d. If an exposing employer meets all the conditions in F.2.c., that employer shall not be cited. If all employers on a worksite with employees exposed to a hazard meet these conditions, then the citation shall be issued only to the employers who are responsible for creating the hazard and/or who are in the best position to correct the hazard or to ensure its correction. In such circumstances the controlling employer and/or the hazard-creating employer shall be cited even though no employees of those employers are exposed to the volatile condition. (See, however, F.2.e.) Penalties for such citations shall be calculated as indicated in Chapter VI, using the exposed employees of all employers as the number of employees for probability assessment. e. In the case of general duty clause violations, only employer(s) whose own employees are exposed to the violation may be cited. (See Chapter IV, A.2.b.(1)(b).) DEPARTMENT OF TRANSPORTATION PART 199 Subpart A - Drug Testing Definitions. Employee means a person who performs on a pipeline or LNG facility an operating, maintenance, or emergency-response function regulated by part 192, 193, or 195 of this chapter. This does not include clerical, truck driving, accounting, or other functions not subject to part 192, 193, or 195. The person may be employed by the operator, be a contractor engaged by the operator, or be employed by such a contractor Drug test required Pre-employment testing Post employment testing Random testing Reasonable cause Contractor employees. With respect to those employees who are contractors or employed by a contractor, an operator may provide by contract that the drug testing, education, and training required by this part be carried out by the contrac tor provided: (a) (a) The operator remains responsible for ensuring that the requirements of this part are complied with; and (b) (b) The contractor allows access to property and records by the operator, the Administrator, and if the operator is subject to the jurisdiction of a state agency, a representative of the state agency for the purpose of monitoring the operator's compliance with the requirements of this part. Subpart B - Alcohol Misuse Prevention Program Definitions. GUIDELINES FOR IMPROVING CONTRACTOR SAFETY PERFORMANCE IN THE NATURAL GAS INDUSTRY REV: 04/03/07 24

25 Covered employee means a person who performs on a pipeline or at an LNG facility an operation, maintenance, or emergency response function regulated by parts 192, 193, or 195 of this chapter. Covered employee and individual or individual to be tested have the same meaning for the purposes of this subpart. The term "covered employee" does not include clerical, truck driving, accounting, or other functions not subject to parts 192, 193, or 195. The person may be employed by the operator, be a contractor engaged by the operator, or be employed by such a contractor Alcohol tests required. Each operator shall conduct the following types of alcohol tests for the presence of alcohol: Post accident Reasonable suspicion Return to duty Follow-up Contractor employees (a) (a) With respect to those covered employees who are contractors or employed by a contractor, an operator may provide by contract that the alcohol testing, training and education required by this subpart be carried out by the contra ctor provided: (b) (b) The operator remains responsible for ensuring that the requirements of this subpart and part 40 of this title are complied with; and (c) (c) The contractor allows access to property and records by the operator, the Administrator, any DOT agency with regulatory authority over the operator or covered employee, and, if the operator is subject to the jurisdiction of a state agency, a representative of the state agency for the purposes of monitoring the operator's compliance with the GUIDELINES FOR IMPROVING CONTRACTOR SAFETY PERFORMANCE IN THE NATURAL GAS INDUSTRY REV: 04/03/07 25

26 Notices and Disclaimer The AGA disclaims liability for any personal injury, property or other damages of any nature whatsoever, whether special, indirect, consequential or compensatory, directly or indirectly resulting from the publication, use of, or reliance on the this document; for any violation of any federal, state or municipal regulation with which this document may conflict; or for the infringement of any intellectual property rights from the use of this document. The AGA does not take position with respect to the validity of any patent rights asserted in connection with any items which are mentioned in or are the subject of the document, and the AGA disclaims liability for the infringement of any patent resulting from the use of or reliance on the document. Users of the document are expressly advised that determination of the validity of any such patent rights, and the risk of infringement of such rights is entirely their own responsibility. Efforts have been made to ensure the accuracy and reliability of the data contained in the herein; however, the document is provided as is and neither AGA nor its employees or agents make any representations, warranties or guarantees of any kind, either express or implied, including, but not limited to, any warranty that the document will fulfill any particular purpose or needs and the implied warranties merchantability, quality, accuracy or fitness for a particular purpose. Neither AGA nor its employees or agents make any warranty as to the results that may be obtained from the use of the document. In issuing and making the document available, the AGA is not undertaking to render professional or other services for or on behalf of any person or entity. Nor is the AGA undertaking to perform any duty owed by any person or entity to someone else. Anyone using this document should rely on his or her own independent judgment or, as appropriate, seek the advice of a competent professional in determining the exercise of reasonable care in any given circumstances. Information on the topics covered by the document may be available from other sources, which the user may wish to consult for additional views or information not covered by the document. The AGA has no power, nor does it undertake, to police or enforce compliance with the contents of the document. Nor does the AGA list, certify, test, or inspect products, designs, or installations for compliance with the document. Any certification or other statement of compliance with the document shall not be attributable to the AGA and is solely the responsibility of the certifier or maker of the statement. It may become necessary to make revisions to this document in the future. Whenever any revisions are advisable, recommendations should be forwarded to the American Gas Association, 400 N. Capitol Street, NW, 4 th Floor, Washington, DC 20001, USA. GUIDELINES FOR IMPROVING CONTRACTOR SAFETY PERFORMANCE IN THE NATURAL GAS INDUSTRY REV: 04/03/07 26