SHD Oil & Gas LLC | 1650 Tysons Blvd Suite 900| McLean, VA 22102 CONTRACTOR SERVICE REQUIREMENTS September 5, 2014 Dear Valued Contractor / Service Provider: SHD Oil & Gas LLC values the safety of all workers and the protection of our environment. Our company is committed to having incident free operations, achievable by working as a team with those contractors and employees who demonstrate sound safety management practices and implement good accident prevention programs. We also expect our contractors’ workforce to be effectively trained and equipped with the hazard recognition and control tools necessary to experience incident-free operations, have required insurance policies in force and have executed a master service agreement with us. Our company determined that we needed additional resources to help evaluate the safety performance and related qualifications of our contractors and service providers. We are pleased to announce that we have established a business relationship with PEC Safety (PEC) to accomplish these objectives. Effective immediately, PEC will be assisting SHD Oil & Gas LLC, Inc. in its contractor management system and qualification processing. SHD Oil & Gas LLC contractors and selected service providers will be required to complete the following requirements by December 5, 2014. If you are already completing any of these requirements for another customer using PEC, simply release the required information to SHD Oil & Gas LLC. 1. Standardized Safety Questionnaire (SSQ) – Before a contractor can provide services or equipment or perform work on a SHD Oil & Gas LLC location or facility, their safety records must be collected and reviewed. To facilitate this process, all contractors must complete an online SSQ. If your company does not have access to the internet or cannot complete a digital formatted process, PEC will make the necessary arrangements to collect the required SSQ information. 2. Update SSQ Quarterly – Once the SSQ is completed, you will be required to update the SSQ on a quarterly basis, or at any time significant changes to statistical data or procedural standards have taken or will take place. 3. OSHA 300 Log Update – SHD Oil & Gas LLC is requiring your company to report exposure hours and recordable cases on a quarterly basis. This table is located in the online SSQ link under the section labeled ‘General Safety Incident Statistics Section. SHD Oil & Gas LLC | 1650 Tysons Blvd Suite 900| McLean, VA 22102 4. Document Submittal – SHD Oil & Gas LLC will be using PEC to track and verify your company’s insurance certificates and coverage limits, workers compensation experience modification rate (EMR), and OSHA-required forms. Contractors performing work on a SHD Oil & Gas LLC location or facility must submit the following: Certificate of required insurance documents with SHD Oil & Gas LLC as the holder; Last three years of the OSHA 300 log Injury/Illness Summary forms; Experience Modifier Rate (EMR) document received from your worker compensation insurance company (Last 3 years); Safety Manual; Training Plan and or matrix; and Last completed JSA; Employee Training Records; To meet SHD Oil & Gas LLC’s Document Submittal requirement, each contractor must purchase PEC’s Document Upload and Training Tracker Bundle on an annual basis. (Please see Attachment I for annual fee information). If you have already purchased the Document Upload and Training Tracker Bundle to meet another customer’s requirements or you are currently a PEC CAP subscriber you will not have to purchase this bundle again. 5. SafeLandUSA Orientation and PEC Core Training – At a minimum, all personnel arriving on a SHD Oil & Gas LLC location must have SafeLandUSA Orientation (Please see Attachment II for additional information about SafeLandUSA. All contractors’ location supervisors must have at a minimum PEC Core Compliance Training (Please see attachment III for additional information about PEC Core Compliance Training). The SafeLandUSA orientation and the PEC Core Compliance Training deadline to come onto a SHD Oil & Gas LLC site for work will also be December 5, 2014. 6. Training Records Reviewed - Workers who are assigned to perform services on SHD Oil & Gas LLC locations (drilling, construction or production) will have their training records reviewed for compliance. To facilitate this process, please upload workers’ training records into PEC’s Advanced Training Tracker (included in Document Upload and Training Tracker Bundle). PEC’s Advanced Training Tracker will allow you to track in-house and third party training as well as print employee training badges and run reports that can be exported into Excel and PDF documents. PEC does offer multiple options to get your existing training records into their system via data transfers and customized programming. NOTE: Both your SSQ and Advanced Training Tracker information need to be released to SHD Oil & Gas LLC before information can be viewed. This release function is in your SSQ and Advanced Training Tracker resource. PEC Customer Support Representatives (CSRs) can assist you in this release function if needed. SHD Oil & Gas LLC | 1650 Tysons Blvd Suite 900| McLean, VA 22102 SHD Oil & Gas LLC’s goal is to provide you valuable, easy to use tools and services that will help expand the safety culture within your organization and facilitate safety performance criterion with our company. Your attention and response to these new requirements are appreciated. In order to be eligible for consideration by SHD Oil & Gas LLC during the contractor bid or selection process, your company’s subscription must be in place and all required information must be posted by December 5, 2014. PEC has a Customer Support Department designated to help you, the contractor, with questions regarding how to comply with the following requirements. For further details about PEC, please contact the PEC Customer Support Department at 866-647-2338 or visit www.pecsafety.com. The SafeLandUSA orientation and the PEC Core Compliance Training deadline to come onto a SHD Oil & Gas LLC site for work will also be December 5, 2014. Sincerely, Demarco Bell President and COO SHD Oil & Gas LLC
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