1 January 2012 CONFIDENTIAL

Appalachia Projects Team Core Contractor HSSE Meeting

August 28, 2014

Shell Appalachia Wellsboro Campus

2 CONFIDENTIAL

AGENDA

Breakfast

Introductions and Recognition – Craig

“Goalie of the Month” presentation – Lori and Martina

Personal story – Texting while driving, Rob Lausted, Crossfire

Incident review – Lori and contractor reps

Break

Journey to “Goal Zero” – HRI presentation

The “E” in HSSE – Wayne Swinehart, Rory Hunter, Jim Townsley and Brad Newlin (URS)

Q&A and wrap up – Craig

https://www.youtube.com/watch?v=vMODht9aJvs

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A Goalie Should Be Submitted:

•When an individual intervenes on another individual(s) who is about to perform an action that would result in an incident or unsafe act.

Example: If someone went to dig without an approved one-call and an intervention was made.

• When someone intervenes on an unsafe act in the community.

Example of a past winner: As Jerald Dike was heading home at the end of his shift, he noticed a young child (5yr old) standing at the edge of the road, near traffic trying to flag a vehicle down. He stopped to help, as he could tell that the child was scared and crying. The child was dropped off by the school bus at the end of the road and unfortunately her guardians were not home. The little girl had been there for about an hour waiting. Jerald took action by staying with her. While waiting for a family member to arrive Jerald notified Pat Pratt about the situation were Pat then contacted the local school. Before a school representative arrived at the house, a family member arrived to take her home. Jerald Dike is nominated for going out of his way to assist the young girl protecting her from possible danger of traffic and comforting her at the time.

CONFIDENTIAL Restricted

4 July 2013

Example of a another past winner: The nominees pulled up to the scene of a vehicle rollover on Hwy 414 near Old Mill Road (Texas Creek). The nominees noticed that there was a PA State Trooper on scene and they asked the trooper if they could help. The trooper asked if the nominees could help control traffic by setting up flaggers. The crew set up and controlled traffic at the scene to help the trooper. Good job to these individuals for realizing that a local law enforcement officer needed assistance and for helping the trooper. Community assists like this speak volumes to not only the contractors but to Shell’s commitment to safety and social performance as well. A Goalie Should Not Be Submitted:

• When an action takes place that is part of your daily work activities. Examples: • When SWA is used, but the actual hazard doesn’t exist. • Monitoring for gas around a well head and detecting it.

CONFIDENTIAL Restricted

Nominees

Jason Davis– Crossfire Nayeli Lopez – Crossfire

Glenn Ulmer – J.L. Watts

CONFIDENTIAL

Jason noticed an operator using a cell phone while the bucket was in the air and moving. He stopped the job and told the operator to put the bucket on

the ground and stop the machine before using a cell phone.

Jason Davis Crossfire

CONFIDENTIAL

Unconventional Americas March 2013

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GOAL ZERO REPORT

CONFIDENTIAL

GOAL ZERO - NO HARM… NO LEAKS. APP PROJECTS 8-28-2014

Total Incidents 2014

Days Since Last Event

LWC 0 522

RWC 0 659

MTC 0 1325

FAC 0 12

LOPC 1 9

NM 1 23

PLD 3 13

MVI 0 593

RTE 0 526

NTC 0 716

UAC 0 10

LSR 0 406

*Data collected from FIM - 01/01/14 through 08/27/2014 on 8/27/2014

TRCF = 0

LTI = 0

CONFIDENTIAL Unconventional Americas 9 March 2013

Since July 28,2014 – August 27, 2014

Emergency Drills – 6

NM – 1

PLD – 1

LOPC – 2

UAC – 5

FAC - 1

INCIDENT REVIEW

CONFIDENTIAL Unconventional Americas 10 March 2013

INCIDENT REVIEW

NM – TRENCHER ENTERS ROW WITH LIVE EXISTING 20” LINE. Trenching operations were on-going to lay a pipeline spur. At one point in the job scope the line being installed was to parallel a live 20” line. During the operation a trencher entered into the buffer-zone of the 20” line and paralleled it for a yet undetermined distance. A track-hoe was then brought in to excavate a bell-hole on the trench. During the excavation with the track-hoe the ground sloughed revealing the 20” line in close proximity.

CONFIDENTIAL Unconventional Americas 11 March 2013

PLD-PIPE SLIDES AND DAMAGES TRAILER Pipeline crew was in the process of unloading seven joints of 20-inch pipe that were 60 feet in length on the right-of-way (ROW). The first joint of pipe was unloaded without any issues. While unloading the second joint of pipe, the remaining six (6) joints of pipe slid away from the truck cab and the front portion of the load came to rest on the ground. The pipe sliding to the ground caused damage to the trailer. No personnel were in the vicinity of the incident.

INCIDENT REVIEW

CONFIDENTIAL Unconventional Americas 12 March 2013

Photos of PLD – PIPE SLIDES AND DAMAGES TRAILER

CONFIDENTIAL Unconventional Americas 13 March 2013

LOPC - INADVERTENT LOSS OF DRILLING FLUID During horizontal drilling, the driller observed a lack of fluid return. The job was stopped and it was discovered that 30 gallons of water-based drilling fluid had surfaced from the well bore onto the right-of-way (ROW). Clean-up efforts began immediately and all proper notifications were made.

LOPC - CONTAINMENT FAILS RELEASING FRESH WATER - Improperly installed containment failed to retain water from a pigging the line operation. Approximately 15 gallons of fresh water was released to ground. Line was newly installed and had not been previously in-service.

INCIDENT REVIEW

CONFIDENTIAL Unconventional Americas 14 March 2013

INCIDENT REVIEW

UAC – UNMARKED ABANDONED GAS LINE UNCOVERED – A utility company failed to identify an abandoned line in their ROW. While excavating around a marked gas line the excavator operator uncovered the abandoned unmarked line. Work was stopped immediately and all notifications were made. A One Call was valid for the site.

CONFIDENTIAL Unconventional Americas 15 March 2013

INCIDENT REVIEW

UAC - ABANDONED UNDERGROUND PHONE LINE CUT – At approximately 12:30 PM, contractor was excavating on a pipeline ROW. During the excavation, an unmarked underground communication line was cut by the excavator. Work was immediately stopped and an investigation initiated. Contractor was working with a valid PA One call. Service company was contacted and verified that phone line was abandoned.

UAC – UNSECURED LOAD TRANSPORTED ON JOBSITE. - A pull behind flatbed trailer hauling skids, a valve, and flanges was transported from upper to lower pipeline access road. Load traveled on public highway approximately three miles. No items on flatbed trailer were secured. No materials were lost during transport. Work was stopped and securement requirements discussed.

CONFIDENTIAL Unconventional Americas 16 March 2013

INCIDENT REVIEW

SEC - THIRD PARTY TRESSPASSES ONTO JOB SITE - Third party vehicle passes site meet and greet without signing in and continues onto location. Civil construction activities were in progress. Contractor immediately stopped work and requested for the trespasser to leave location. Proper notifications were made.

UAC-CONFUSING TERMINOLOGY USED - Civil Construction Supervisor ordered a truck to haul “dirty water” meaning non-potable. The trucking company uses the term to mean produced water and will send contaminated trucks to haul these loads. The water being hauled was to be dumped into a rock lined ditch. Had the contaminated truck been used this would have resulted in an environmental incident. The Trucking Supervisor was aware of the terminology confusion and contacted the Civil Supervisor prior to the truck being dispatched. A truck free of contaminates was dispatched to haul the non-potable water. No incident occurred.

CONFIDENTIAL Unconventional Americas 17 March 2013

INCIDENT REVIEW

FAC-CONTRACTOR STUNG BY A BEE

While working on the right-of-way (ROW), a contractor was stung by a bee. The contractor notified crew members and supervisor of the sting and that bees were in the area. The contractor does not have an allergy to bee stings, nor displayed any adverse reaction to this bee sting. Contractor HSE assessed the contractor and allowed the contractor to return to work.

6 MUSTER DRILLS PERFORMED WITH CREWS

CONFIDENTIAL Unconventional Americas 18 March 2013

2014 INCIDENTS

NM 13%

LOPC 19%

PLD 31%

UAC 31%

RTE 0% LWC

0%

FAC 6%

MVI 0%

LSR 0%

YTD Data

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Wrap it up………………. Next Core Contractor meeting TBA

Actions to take back to your team: Review the “Goalie of the Month” criteria and promote the program.

Plan the work, work the plan!

Remember the uacontractor.com website for HSSE support

Don’t forget to sign the roster

And last of all, be careful exiting the property and entering Route 6!

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CONFIDENTIAL