Safety Standards Manual

Revision Date: February 24, 1995 1.01 Introduction

This manual is designed to supplement existing Local, Provincial and Federal regulations plus the Company Safety Standards contained in this document. This manual reflects current knowledge of work hazards and the best means of reducing those hazards.

No manual of this type can be, nor is represented to be, all inclusive and is not a substitute for common sense and formal training. Users of this manual should always consult the appropriate legislation or safety practice if any doubt exists, prior to implementing any procedure contained in this manual.

In keeping with the Wascana Energy Inc. commitment to safety it is intended that employees receive basic training, especially in first aid, cardiopulmonary resuscitation and chemical hazard awareness. These programs plus any others deemed necessary by the management will be made available to all employees requiring this training.

Any questions regarding safe work practices, or suggestions for a safer workplace are encouraged and should be submitted to your supervisor.

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WASCANA
Energy Inc. 1.02 Industry Guiding Principles

Further to the Corporate Policy Statement on Health, Safety and Enviroriment, Wascana Energy Inc. fully support the Petroleum Industry Guiding Principles for worker safety.

These guiding principles were developed as part of the Upstream Petroleum Industry Task Force On Safety (U.P.I.T.F.O.S.) report, and states

We, the members of the petroleum industry, have a responsibility to protect all workers engaged in its activities from personal injury and health hazards. To meet our responsibility we will operate under the following guiding principles:

Responsibility - The operating company, when acting as principal contractor, is responsible for coordination and general supervision of all activities at the work site, including activities carried out by contractors, subcontractors and suppliers. While all parties have a responsibility to promote worker safety, the operating company recognizes its leadership in promoting worker health and safety on the basis that it has the greatest power to influence work site situations.
AMIN

Priority - Activities will be conducted on the basis that safety of all personnel is of vital importance, whether those personnel are employed by an operating company, a contractor, a subcontractor or a supplier.

Recognition - The process of selecting contractors, subcontractors and suppliers, and the administration of contracts, will include recognition and support of good safety performance. Support and recognition based on good safety performance will also be provided by all employers to their employees.

Improvement - The operating company, in cooperation with others within the industry, will promote methods and practices that have potential for improving safety performance.

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Revision Date: February 24, 1995 1.03 Oil and Gas Industry Governing Acts and Regulations Alberta Acts and Regulations i) Energy Resources Conservation Act. (E-11-RSA, 1980) a) Oil and Gas Regulations (151/71). b) Energy Resources Conservation Board Act and Regulations. -

ii) Occupational Health and Safety (O.H. & S) Act

a) Occupational Health and Safety Act, Statute Revised to 15/11/83 b) Occupational Health and Safety Amendment Act 1988. c) Asbestos Regulations (7/82). d) Chemical Hazards Regulations (393/88). e) Designation of Hazardous Materials Regulations (387/81). f) Designation of Occupations Regulations (288/76). g) Designation of Serious Injury and Accident Regulation (298/81). h) Explosives Safety Regulations (272176). i) First Aid Regulations (299/81). j) General Safety Regulation (448/83). k) Noise Regulations (314/81). I) Regulations Pursuant to the Occupational Health and Safety Act, including, the Joint Worksite Health and Safety Committee Regulation, Designation of Joint Worksite Health and Safety Committee Regulation, Designated Worksite Regulations (various/1977). m) Silica Regulations (9/82). n) Ventilation Regulations (326/84). o) Vinyl Chloride Monomer Regulations (10/82). iii) Workers Compensation Act (W-16/81) a) Workers Compensation Regulations (427/81). b) Alberta Regulations (168/81).

WASCANA
iv) Environmental Legislation (Proclaimed September 1, 1993) a) Environmental Protection & Enhancement Act Chapter E 13.3. b) Activities Designation Regulation AR 110/93. c) Approvals Procedure Regulation AR 113/93. d) e) f) g) h) Air Emissions Regulation AR 124/93. Ozone - Depleting Substances Regulation AR 125/93. Conservation and Reclamation Regulation AR 115/93. Disclosure of Information Regulation AR 116/93. Environmental Protection & Enhancement (Miscellaneous) Regulation AR 118/93. i) Environmental Assessment (Mandatory and Exempted Activities) Regulation AR 111/93. j) Assessment Regulation AR 112/93. k) Appeal Board Regulation AR 114/93. I) Regulation AR 121/93. m) (Ministerial) Regulation AR 127/93 n) Handling, Use and Application Reg. AR 126/93. o) Regulation AR 122/93. p) Regulation AR 129/93. q) Storm Drainage Regulation AR 119/93. r) Storm Drainage (Ministerial) Reg. AR 120/93. s) Regulation AR 123/93 t) Protection Act (F-14- RSA/80). u) Protection Regulations (310(72, 413/83). v) RSA/80). w) Pipeline Regulations Pipeline Act (P-8Forest and Prairie Forest and Prairie Water Well Waste water and Waste water and Waste Control Pesticides Sales, ,1 Potable Water Pesticides Industrial Plants Environmental Environmental
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Safety Standards Manual

Revision Date: February 24. 1995

g) h)

Transportation of Dangerous Goods Administration (37/86). Boiler and Pressure Vessels Act (B-8- RSA/80).

i) Design, Construction and Installation of Boilers and Pressure Vessels Regulations (227!75). j) Gas Protection Act (G-2- RSA/80). k)Gas Protection Regulations (339/77). Saskatchewan Acts and Regulations i) Department of Energy and Mines a) b) c) Mineral Resource Act and Regulations. Oil and Gas Conservation Act and Regulations. Pipeline Act and Regulations.

ii) Saskatchewan Department of Labour /^ a) b) c) d) e) f)

Iii) Saskatchewan

Accident Prevention Regulations (1986). Occupational Health and Safety Act (0-1-93). Occupational Health and Safety Regulations (142/84, 24/86). First Aid Regulations (1986). Electrical Inspection and Licensing Act and Regulations. Radiation Health and Safety Act. Department of Health Public Health Act.

a) iv) Workers Compensation Board a)

Workers Compensation Act.

v) Environmental Legislation a) b) c) Air Pollution Control Act. Environmental Management and Protection Act. Litter Control Act.

vi) Saskatchewan Highway and Transportation Department

WASCANA
Energy Inc.
a) Transportation of Dangerous Goods Act. British Columbia Acts and Regulations i) Ministry of Energy, Mines and Natural Resources a) b) c) ii) Workers Compensation Act a) b) c) d) iii) Environmental Legislation a) b) c) d) e) f) g) h) iv) Other a) b) c) d) e) Canada Acts and Regulations a) b) Canada Labour Code (Safety of Employees) (RSC 1970). Canada Shipping Act. Electrical Safety Act. Health Act - Industrial Camps Health Regulations. Fire Services - British Columbia Fire Code Regulations. Pipeline Act and Regulations. Transportation of Dangerous Goods Act and Regulations. Environment and Land Use Act. Environmental Management Act. Litter Control Act. Pesticide Control Act. Waste Management Act. Forestries Act. Water Act. Weed Control Act and Regulations. Assessment Penalties. Industrial First Aid Regulations. Industrial Health and Safety Regulations. Reporting of Injuries Regulations. Drilling and Production Regulations. Petroleum Development Road Regulations. Surface Lease Regulations.

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Safety Standards Manual

Revision Date: February 24, 1995 c) Canadian Centre for Occupational Health and Safety Act (C35). d) Explosives Act (RSC 1970). e) Environmental Contaminants Act (C72). f) National Energy Board Act (RSC 1970). g) Oil and Gas Production and Conservation Act (May 82). h) Canada Oil and Gas Drilling Regulations. i) Radiation Emitting Devices Act. j) Transportation of Dangerous Goods Act and Regulations, k) Fisheries Act. I) Canadian Environmental Protection Act. m) Canada Safe Illumination Act. 1.04 Revision and Updating Procedures Updating A procedure is established to revise and update this document on a formal request

/" basis. Should the manual holder see that pertinent information is incorrect, incomplete or omitted, it is recommended that the following "Revision Request " form be completed, and sent along with any attachments to the Regina office of Wascana Energy Inc., attention of Pat Riley. These requests will be reviewed and upon approval the revised sections will be distributed to manual holders. Revision The master copy of this document is retained by the Regina office. On each page is the revision date. When a page or section is revised, recipients should enter the new issue information of the revision log sheet. Periodic verification of the manuals contents will be done as required, but not less than annually. All manuals issued will be numbered and a list of recipients kept, in order that revisions can be correctly routed.

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Safety Standards Manual

Revision Date: February 24, 1995

REVISION REQUEST FORM Section No. Page No.

Description of Revision:

Requested By:

Address/Dept.

Manual Number: Request Acknowledgment: Approval Date:

Request Numbered & logged:

Revision Date:

Correspondence Required:

Issue Date:

WASCANA
Energy Inc. 2.0 2.01 Administration Introduction This manual is designed to outline the safety and loss control rules for all workplace needs. Various sections may be emphasized according to the specific job requirement. The Occupational Health and Safety Act has also outlined certain responsibilities for both the employer and the employee. These responsibilities and

accountabilities are clearly defined. 2.02 Company and Employee Responsibility Wascana Energy Inc. has developed a health and safety program committed to the protection of employees, contractors and the public from exposure to hazards. Every employee and contract employee also shares the responsibility to ensure a safe workplace for himself and his fellow workers by being constantly aware of and correcting hazards as they occur. Responsibility and accountability falls to each manager or supervisor and every employee or contract employee.

Standards:

As outlined in the Wascana Energy Inc. Corporate Policy Statement, the Company has a responsibility to provide and be accountable for maintaining a safe and environmentally secure workplace. The Company through active leadership will strive to achieve that goal, however the responsibility for a safe work place is not the Company's alone but shared by all supervisors, employees and contractors.

Supervisor Responsibility: bridging the gap between management and employees, general guidelines will help that function in the health and safety area, he or she must: i) regularly use them when instructing job methods or when indoctrinating new employees or contractors in safe job practices. Know Company policies and practices included in this manual and One of the keys to any successful program is the role of the supervisors in

Safety Standards Manual

Revision Date: February 24, 1995 ii) appropriate corrective action should it be necessary. iii) Always set a good example in the areas of safety and ensure that his Be alert to unsafe conditions and acts and take immediate and

actions are consistent with Company requirements. This consistency will maintain his workers interest in safety. This interest shall be fostered by arranging for regular safety meetings. iv) Ensure that legislated requirements and Company policies are being

complied with through the use of a regular inspections. Employee Responsibility: through informational sessions, and by the immediate supervisor as they pertain to a particular job function. The worker shall ensure that a safe workplace is maintained by active participation in the safety program and through compliance with the safety standards contained in this manual. In the area o1 safety the worker is often called upon to be responsible not only for his own safety but also for that of his fellow worker. Contractor Responsibility: must be made aware of and comply with the contents of this manual. Contractors engaged . Contract operators who are directly supervised by a Company employee Each employee shall be made aware of all features of the safety program

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WASCANA
Energy Inc. 2.03 Site Specific Regulations

In some cases site specific precautions may be required in addition to the guidelines set out in this manual. These additional precautions should they be required must be in written form and must be followed.

Additionally, there may be times when the client safety procedures are equal to or are more stringent than those defined by Wascana Energy Inc. In this case after consultation with the Senior Wascana Energy Inc. Representative on site, the clients safety procedures may be used.

2.04

Pre-Job and Regular Safety Meetings

Regular safety meetings will be held as defined by regulation or as often as required by project needs, employees are required to attend. An attendance record will be completed and signed by the attendees and kept on file along with the minutes of the meeting.

Safety Meetings the

The agenda will follow the outline of a normal business meeting. The minutes of

meeting will be recorded and distributed. 1) 2) 3) Acceptance of the minutes from the previous meeting. Business arising from the minutes. Old hazards New concerns Solutions Safety training Accident/incident review New hazards Required training

4)

5)

Education program Review of legislation Review of procedures

Safety Standards Manual

Revision Date: February 24, 1995 Pre-Job Safety Meeting Pre-job safety meetings will be held prior to the commencement of any new, unfamiliar or potentially hazardous task. The contents of the meeting will include but are not limited to the following: Method of performing the task. General safety requirements. Hazards likely to be encountered. Procedures to control the hazards. Contents and type of work permit. Rescue procedures. Communication requirements. Safety equipment.

Minutes of the pre-job safety meetings must be taken and a signed roster of all persons involved in the work task kept on file. Tail Gate Meeting 'Tail-gate' meetings to discuss safety related problems with the local supervisor are

valuable and are encouraged. Safety Check List Following is a check list of items which (where applicable) should be routinely covered at pre-job safety meetings. 1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) 12) 13) Hard Hats Safety Eye Wear Welding Screens Hearing Protection Protective Clothing Breathing Apparatus Facial Hair Fire Equipment Chemical Handling (W.H.M.I.S.) Safety Footwear First Aid Equipment Signs and Barricades Smoking

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WASCANA
Energy Inc.
2.05 Performance Appraisal The safety records and achievements of all Wascana Energy Inc. employees will be evaluated during annual performance appraisals. Employees whose personal or group safety records are poor, and who do not conscientiously attend safety meetings will be assessed on that basis. 2.06 Insurance All contractors or sub contractors must supply proof of insurance and of an account in good standing with the Workers Compensation Board prior to being allowed to perform any work for Wascana Energy Inc,

2.07

Workers Compensation Board

All employees of Wascana Energy Inc. are covered by Workers Compensation for the jurisdiction in which they are employed. All Workers Compensation Board accounts are kept in good standing.

2.08

Accident Mcident Reports and General Emergency Response

While some authority for health and safety can be delegated to contract personnel and persons working on behalf of Wascana Energy Inc. the responsibility cannot be. For that reason any incidents on or involving Wascana Energy Inc. personnel or property must be reported.

Of particular concern are events which:

Result in damage to Company equipment or injury to personnel; Are caused by Company property or personnel. Result in damage or injury to contractor or third party property or

persons.

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Safety Standards Manual

Revision Date: February 24, 1995 Reporting Serious Events Regardless of the time of day any employee, contractor or consultant who is involved in or witness to a serious event or a situation which has the potential for causing serious injury involving Wascana Energy Inc. personnel or property, must report the event to the appropriate supervisor/manager, who will then take the required action. These procedures are fully described in the Wascana Energy Inc., Emergency Response Plan. All employees must be fully familiar with the contents of this plan, and must also be conversant with their individual responsibilities should an event occur. When a serious incident occurs the employee must: Attempt to prevent further injury or loss of property without compromising his own safety. Report immediately to the appropriate supervisor. Record all pertinent data for inclusion in the accident report. All incidents require a preliminary written report within 24 hours. Medical Aid, Lost-Time & Vehicle Events report forms are available at all work locations and provide for a short written report of all incidents, the form is completed and signed by the supervisor in charge of the work location. All completed forms must be forwarded to the appropriate regional office for review and distribution. W.C.B. Forms time injury requires that a Workers Compensation Board form be completed, one form is completed by the employee and another form is completed by the employer. These forms are completed in addition to the accidenUincident report. Log Book Injuries requiring first aid treatment must be recorded in a log book kept at the worksite. Page: 19 A medical aid or lost AccidenVincident

Energy Inc.

WASCANA
Summary of Emergency Response Plan

Standards: to

An emergency is defined as any event that calls for immediate special action

prevent or minimize danger to life, property or the environment. Levels of emergency have been categorized as follows: Level t- The situation is on company property with no potential danger outside of the company property and no one has been injured. The situation can be handled entirely by company personnel, on the company property. Level 2- Safe operating control has, or may have, been lost, resulting in or potentially resulting in fatalities, or serious injury to employees, contractors or the public, serious damage to the environment and/or communities in the surrounding areas, or critical media coverage and poor public relations. Any situation involving a fatality or severe injury even though safe operating control was not lost or was re-established must be considered a Level 2 emergency. Typical Level 2 emergencies would include, but are not restricted to, the following:

Uncontrolled sweet / sour gas or oil release (pipeline, plant or well) Large spill of oil or controlled product into fresh water. Large fire in an operated facility. Large fire in an office building. Death or serious injury to an employee or non employee involved in

Safety Standards Manual

'Revision Date: February 24, 1995 The most senior Wascana Energy Inc. representative will be responsible to initiate all subsequent steps of the plan, as follows: - If unsure of the emergency level go to the highest level. - Notify either Production or Drilling superintendent, Environment or Safety and the production foreman. Keep going through the contacts until a first Level Contact is made. - The superintendent (First Level Contact) will notify Environment, Safety, Immediate Manager as applicable. - The Manager of Production (Area) or Drilling (depending on the emergency) becomes the Emergency Response Team Leader, and is in charge of the emergency unless delegated to another role and the emergency command specifically assumed by the V.P. of Production. - The Emergency Response Team Leader will assemble Team Members as required. /^ Work Resumption: Level 1 - The Emergency Response Team Leader will notify all involved members of the Response Team of the ending of the Level 1 emergency. Level 2 - The Emergency Response Team Leader will notify all involved members of the Response Team when the emergency has been down graded to Level 1. The Emergency Response Team Leader will also ensure all outside agencies are contacted regarding the downgrading. Then follow Level 1 ending of emergency. Investigation In the event of a serious incident, Company supervisors must proceed promptly, upon notice of the incident, to the scene to conduct a full investigation. Incidents involving fatalities, serious injuries or the potential for either may be investigated by government agencies and the police or R.C.M.P., upon presentation of valid credentials all government or R.C.M.P. investigators shall be Page: 21

WASCANA
Energy Inc. afforded the fullest cooperation, particular care shall be taken to ensure that ail evidence is secured, and preserved in its original state. Work at the scene of a fatality or serious injury may not resume until authorized by the Coroner, R.C.M.P. or other government investigator, along with the appropriate Company authority, unless resumption of work, on a restricted basis, is required to prevent further loss of life or property. Where loss of Company property or loss of revenue has occurred, evidence should not be disturbed until permitted by the Company insurance adjusters. Evacuation: The Senior Wascana Energy Inc. Representative on site will have the responsibility to commence evacuation of the area. If possible the evacuation should be coordinated with the head office support group. Contract Employees Should the injury occur to a contractor it is essential that the contractors office be

contacted to ensure that the next of kin of their employees are properly notified, it is also essential to ensure that Wascana Energy Inc. personnel are subsequently advised in order that the names of the accident victims can be released.

2.09 Contractor Safety and General Contract Requirements Standards The legislated responsibilities summarized here are the minimum acceptable standard for a contractor health and safety program. While Wascana Energy Inc. has a responsibility to ensure, where possible, the health and safety of all employers and workers on a worksite , it shall by establishing worksite requirements in the contract documents obligate its contractors to implement the required health and safety programs. Pursuant to Section 2 (5) of the Alberta Occupational Health and Safety Act and Section 3 of the Saskatchewan Act every principal contractor shall ensure, as far as its reasonably practicable for him to do so, that every employer and every worker engaged in an occupation at a work site owned by him or for which he is primarily responsible complies with the these Acts and the regulations. Page:22

Safety Standards Manual

Revision Date: February 24, 1995 Contractor Orientation: Any and all contractors working on a Wascana site will attend a contractor orientation session before they commence work. Contractors: the health and safety of its employees, both contracted and permanent. Sub Contractors: employees, and compliance with relevant worksite safety programs and legislation. Sub Contractors have a responsibility for the health and safety of their The Contractor has a responsibility to ensure, where reasonably practical,

Standard Sections for a Typical Contract

Contractor: safety of all

The Contractor shall take all reasonable steps to protect the health and

workers, employees and third parties from injury or illness as a result of the work contracted. All equipment provided by the Contractor shall be maintained in good condition and shall meet all standards, regulations and legislation requirements. All work procedures shall be in accordance with Wascana Energy Inc. and legislated standards and only competent personnel shall be allowed to work on the job site. The Contractor shall cease all work in the area of a defined health or safety hazard until it is resolved. The Contractor shall immediately remove from the

Safety Standards Manual

Revision Date: February 24, 1995 Contractor Selection Checklist for Health & Safety Insurance: Yes No N/A

Request copies of liability insurance coverage carried by the contractor. (This information to be supplied directly by the Insurance agent).
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Has the WEI letter of compliance been executed and received? Workers Compensation Board: Request from the contractor a W.C.B. letter of clearance regarding account standing.
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Request a record of accident statistics from the contractor. ---Safety Program ( Policy and Procedures ) Does the potential contractor have a Safety Program in place. ---OH&S Standards or equivalent ? -----------Does Company provide first aid training ? -----------Training for H2S and other toxic gases ? -----------Does the Company have substance testing of employees -----------Is protective equipment supplied by the contractor to the employees? -----------Does the contractor hold regular safety meetings? -----------Has Wascana Energy Inc. received the signed copy of acknowledgment from the Safety Hand Book at Regina or Area Office.
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Review program to ensure it meets or exceeds WEI requirements. Jobs in excess of 300 man-hours per day. Ensure reporting requirements are in place to deal with accidents or incidents ----Inquire as to whom the contractor safety representative will be and secure his or her name if available. ----Evaluate the contractors Emergency Response Procedure for completeness. ----Equipment: The contractor must ensure any equipment to be used by the contractor is in good repair, and as required review maintenance records. ----

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WASCANA
Energy Inc.
Contractor Selection Checklist for Health & Safety Field Operations (Minimum requirements for non-approved contractor selection) This is not meant to be the standard way to approve vendors, but is in place for the unforeseen tasks that may arise. -

Insurance: 1) Receive a copy of liability insurance coverage carried by the contractor. 2) Ensure that the Contractor representative has signed the acknowledgment form in the Safety Hand Book

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With the above requirements met, the Contractor has the status of Temporary Vendor 'and may proceed with work. The Contractor information will be forwarded to the required office and the formal contractor approval process will be initiated. The status of Approved Vendor' must be