Union Oil Company of California, Peak Oilfield Service Company, Nabors Alaska Drilling, Inc., ESS Support Services Worldwide, CUDD Pressure Control, Inc., & McKinley Service and Equipment, Inc.: Alliance Agreement

AGREEMENT ESTABLISHING AN ALLIANCE
BETWEEN
THE OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION
U.S. DEPARTMENT OF LABOR
AND
Union Oil Company of California, Peak Oilfield Service Company, Nabors Alaska Drilling, Inc., ESS Support Services Worldwide, CUDD Pressure Control, Inc.,
& McKinley Service and Equipment, Inc.
Effective Date: 7 October 2008

ALLIANCE AGREEMENT

THIS AGREEMENT, made and entered into effective as of the 7th day of October, 2008, by and between THE OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION, U.S. DEPARTMENT OF LABOR ("OSHA"), Anchorage Area Office and Union Oil Company of California, Peak Oilfield Service Company, Nabors Alaska Drilling, Inc., ESS Support Services Worldwide, CUDD Pressure Control, Inc., & McKinley Service and Equipment, Inc.

RECITALS

OSHA, Union Oil Company of California, Peak Oilfield Service Company, Nabors Alaska Drilling, Inc., ESS Support Services Worldwide, CUDD Pressure Control, Inc., and McKinley Service and Equipment, Inc. recognize the value of establishing a collaborative relationship to foster safer and more healthful American workplaces.
These organizations hereby agree to form an Alliance to provide all members and others with information, guidance, and access to training resources.
This Alliance will help members protect employees’ health and safety, particularly in reducing and preventing exposure to Oil and Gas Platform hazards and addressing the benefits of behavior changes.
This Alliance will work towards a safer working environment through implementing and promoting safer work practices in order to decrease the injury and illness frequency rates for employees.
This Alliance will foster improved safety and health performance through sharing information, best practices, and managerial approaches to Health and Safety.

TRAINING AND EDUCATION GOALS:
1. OSHA, Union Oil Company of California, Peak Oilfield Service Company, Nabors Alaska Drilling, Inc., ESS Support Services Worldwide, CUDD Pressure Control, Inc., and McKinley Service and Equipment, Inc. will work together on the Union Oil Company of California, Anna and King Salmon platforms, to achieve the following training and education goals:
  1. Dissemination of information to improve worker safety and health and inform users about the appropriate personal protective equipment for various hazards. Also to promote the value of personal protective equipment to minimize hazards and the importance of maintaining the equipment in a correct manner.
  2. Upgrade knowledge and training in the requirements of OSHA standards such as Lockout-Tagout, PPE, and Safe Work Practices.
  3. Promote training and open dialogue between members of this Alliance and others, in order to stay current with developments and changes in the field.
  4. Work with Alliance participants on Oil and Gas projects regarding safety and health issues that are addressed and developed through the Alliance Program.
OUTREACH AND COMMUNICATION GOALS.
1. OSHA, Union Oil Company of California, Peak Oilfield Service Company, Nabors Alaska Drilling, Inc., ESS Support Services Worldwide, CUDD Pressure Control, Inc., and McKinley Service and Equipment, Inc. will work together on the Union Oil Company of California, Anna and King Salmon platforms, to achieve the following outreach and communication:
  1. Provide expertise in developing information on the recognition and prevention of workplace hazards, and expertise in developing ways of communicating such information.
  2. Speak, exhibit, or appear at OSHA’s or Alliance members’ conferences, local meetings, or other appropriate events.
  3. Promote and encourage participation by Alliance members and others in OSHA’s cooperative programs such as the Voluntary Protection Program, and the Safety and Health Achievement Recognition Program.
  4. Work with Alliance participants on specific issues and projects involving the Union Oil Company of California oil and gas Anna and King Salmon platforms.
  5. Create a comprehensive safety and health inspection checklist for offshore drilling and operational inspections of facilities.
PROMOTING NATIONAL DIALOGUE ON WORKPLACE SAFETY AND HEALTH.
1. Union Oil Company of California, Peak Oilfield Service Company, Nabors Alaska Drilling, Inc., ESS Support Services Worldwide, CUDD Pressure Control, Inc., and McKinley Service and Equipment, Inc. will work together to achieve the following goals related to promoting the national dialogue on workplace safety and health:
  1. Raise employees’ awareness of and demonstrate personal commitment to workplace safety and health whenever OSHA, Union Oil Company of California, Peak Oilfield Service Company, Nabors Alaska Drilling, Inc., ESS Support Services Worldwide, CUDD Pressure Control, Inc., and McKinley Service and Equipment, Inc. leaders address groups.
  2. Demonstrate a conscientious daily commitment to safety and health by decreasing behavior-based incidents affecting production and morale.
  3. Increase the open communication and interaction from a top-to-bottom and bottom-to-top approach without adverse negativity.
  4. Develop and disseminate case studies illustrating the business value of safety and health and publicize results.
  5. Convene or participate in forums, round table discussions, or stakeholder meetings on specified issues to help forge innovative solutions in the workplace or to provide input on safety and health issues.
  6. Participate in meetings for the purpose of promoting a strong presence, belief and attitude for a successful safety and health program.
  7. Communicate all finds of hazards among all facilities, including those not presently under this Alliance Agreement through written notification of observations made during alliance visits on the Anna and King Salmon platforms.
NO ENDORSEMENT BY OSHA.
1. OSHA’s Alliances provide parties an opportunity to participate in a voluntary cooperative relationship with OSHA for purposes such as training and education, outreach and communication and promoting a national dialogue on workplace safety and health. These Alliances have proved to be valuable tools for both OSHA and its Alliance participants. By entering into an Alliance with a party, OSHA is not endorsing any of that party’s products or services; nor does the Agency enter into this Alliance for the purpose of promoting a particular party’s products or services.
IMPLEMENTATION TEAM.
1. An implementation team made up of representatives of OSHA, Union Oil Company of California, Peak Oilfield Service Company, Nabors Alaska Drilling, Inc., ESS Support Services Worldwide, CUDD Pressure Control, Inc., and McKinley Service and Equipment, Inc. will be established and will:
  1. Meet at least two times per year to develop a plan of action, determine working procedures, and identify the roles and responsibilities of the participants. Included in these semi-annual meetings will be the tracking and sharing of information on activities and results in achieving the goals of the Alliance. Additionally, the Union Oil Company of California Anna and King Salmon platforms will be visited by OSHA quarterly to evaluate improvements implemented by the Alliance members. The first visit will be split into two scheduled visits, so as to accommodate both crews assigned to the platform under the Alliance.
APPLICATION OF CERTAIN PROVISIONS OF EXISTING SERVICE CONTRACTS & NO PAYMENT FOR FIELD VISITS.
1. Peak Oilfield Service Company, Nabors Alaska Drilling, Inc., ESS Support Services Worldwide, CUDD Pressure Control, Inc., and McKinley Service and Equipment, Inc. agree that the indemnification and insurance provisions in the respective company's master service/ blanket service agreement listed in Exhibit A with Union Oil Company of California or its related or affiliated companies shall apply to any field visits made by Peak Oilfield Service Company, Nabors Alaska Drilling, Inc., ESS Support Services Worldwide, CUDD Pressure Control, Inc., and McKinley Service and Equipment, Inc. pursuant to this agreement.
2. The provisions of the blanket service/ master service agreements referenced in Section 6.1 shall apply only to the contracting parties to the agreements listed in Exhibit A, and shall not apply to any other contractors in Section 6.1. For example, the Peak Oilfield Service Company master service agreement/ blanket service agreement referenced in Exhibit A shall apply only to Peak Oilfield Service Company, and not to any other contractors.
3. Under no circumstances shall Union or its related or affiliated companies be required to compensate Peak Oilfield Service Company, Nabors Alaska Drilling, Inc., ESS Support Services Worldwide, CUDD Pressure Control, Inc., and McKinley Service and Equipment, Inc. for any actions or services provided pursuant to this Agreement.
CONFLICTS OF INTEREST.
1. No Party, nor any director, employee, or agent of a Party will give to or receive from any Party or any director, employee, or agent of the other Party any commission, fee, rebate, gift, or entertainment of significant cost or value in connection with this Agreement. Each Party will promptly notify the other Party of any violation of this section, and any consideration received by a Party as a result of such violation will be paid over or credited to the other Party. Additionally, in the event of any violation of this Section, including any violation occurring prior to the date of this Agreement, resulting directly or indirectly in either Party's consent to enter into this Agreement, the non-breaching Party may, at its sole option, terminate this Agreement at any time. Any representatives authorized by either Party may audit any and all records of the other Party reasonably necessary to determine, and with the sole purpose of determining, whether there has been compliance with this Conflicts of Interest Section. All Parties shall maintain true and correct records in connection with all matters relating to this Agreement and retain such records for at least 24 months after termination of this Agreement. OSHA shall be exempt from the obligations under this paragraph.
TERMINATION
1. This agreement will remain in effect for one year from the date of signing. Any signatory may terminate it for any reason at any time, provided they give 30 days written notice. This agreement may be modified at any time with the concurrence of all signatories.

Scott C. Ketcham Area Director Occupational Safety and Health Administration	Date
John Zager General Manager Union Oil Company of California	Date
Mike O’Connor President Peak Oilfield Service Company	Date
Tom Pellegrom Cook Inlet Area Manager Peak Oilfield Service Company	Date
John Haynes EHS Manager Nabors Alaska Drilling, Inc.	Date
Larry Weihs Chief Operating Officer ESS Support Services Worldwide	Date
Steve Carr Vice President, HES CUDD Pressure Control, Inc.	Date
Steve McKinley Chief Executive Officer McKinley Service and Equipment, Inc.	Date


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