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Partnership Agreement
Between
Koch Business Holdings, LLC
Koch Mineral Services, LLC
Koch Carbon, LLC
Koch Nitrogen Company
The C. Reiss Coal Company
Koch Hydrocarbon Southwest, LLC
Koch Hydrocarbon, LP
Koch Materials Company

and the

U.S. Department of Labor
Occupational Safety and Health Administration
(OSHA)

January 14, 2003

  1. AGREEMENT PARTNERS
  2. The partners to this Agreement are

    • The U.S. Department of Labor, Occupational and Safety and Health Administration (OSHA) and
    • The following participating companies, collectively called "Koch," all of which are affiliates of Koch Industries, Inc.:
      • Koch Business Holdings, LLC
      • Koch Mineral Services, LLC
      • Koch Carbon, LLC
      • Koch Nitrogen Company
      • The C. Reiss Coal Company
      • Koch Hydrocarbon, LP
      • Koch Hydrocarbon Southwest, LLC
      • Koch Materials Company
  3. DEFINITIONS
  4. CSHO - Compliance Safety and Health Officer

    Partnership Steering Committee - Committee formed to manage the partnership, consisting of representatives from both Koch and OSHA.

    SGE - Special Government Employee program

    VPP - OSHA's Voluntary Protection Programs

  5. BACKGROUND
  6. In the fall of 2001, Koch Industries, Inc. approached OSHA about expanding its relationship through a Partnership Agreement between certain Koch companies and OSHA.

    Today, Koch and OSHA will expand their relationship by committing to develop strong safety and health management systems. Koch will continue to strive toward workplace safety and health excellence by piloting with representative work sites.

    Koch's pilot work sites, which are identified in Attachment 1, allow OSHA to reach out to a diverse industry spectrum and to impact safety and health in a meaningful way. Koch companies have locations and employees throughout the world. The lessons learned from the pilot work site participation will be used to further impact safety and health at all Koch company work sites.

  7. PARTICIPATION GOALS
  8. Koch and OSHA will work in partnership to accomplish the following goals:

    • Prevent and reduce employee injuries and illnesses within Koch.
    • Expand awareness within Koch of the value of safety and health management systems that address hazards, and promote leadership and management commitment, and employee involvement.
    • Reduce injuries and illnesses related to ergonomics
    • Achieve stronger communication between OSHA and Koch to help share best practices, partnership impact measures (see section VII. Partnership Measurements), and technical information, as well as analyze industry and site trends.
    • Expand Koch's participation in OSHA's Voluntary Protection Programs (VPP).
  9. OBJECTIVES
  10. Koch and OSHA will work together to accomplish the following objectives in support of the partnership goals:

    1. Safety and Health Management Systems Expand awareness by providing technical assistance and guidance for implementing the Koch Safety and Health Management system at the pilot work sites that will:
      • Establish a proactive safety and health culture.
      • Provide baseline data for the existing systems and goals for improvement.
      • Promote the value of safety and health as part of a business management system.
      • Implement comprehensive safety and health management systems at participating pilot work sites.
      • Share knowledge and lessons learned from partnership to help reduce injuries and illnesses at other Koch sites.
    2. Improved Communication Achieve a stronger communication link between OSHA and Koch by:
      • Establishing contacts between OSHA Area and Regional Offices and Koch pilot work sites to assist in obtaining consistent regulatory interpretation and policy information.
      • Sharing best practices and lessons learned.
    3. Increased VPP Participation

      Expand Koch's participation in OSHA's VPP by:

      • Identifying interested pilot work sites and seeking assistance from the Voluntary Protection Programs Participants' Association to link the interested sites with participant mentors.
      • Increasing participation in the Special Government Employees' (SGE) program.
    4. Reduce workplace injuries and illnesses, including those related to ergonomics, by:
      • Using the Koch EHS Management system as a base for developing recommendations for management practices addressing ergonomic hazards.
  11. PARTNER ROLES AND RESPONSIBILITIES
  12. Koch and OSHA agree to work in partnership to improve safety and health performance at Koch pilot work sites.

    1. Koch agrees to:
      • Identify Koch pilot work sites to participate in the partnership.
      • Promote the establishment of safety and health management systems, and the integration of those systems into the overall business management system.
      • Support the Koch pilot work sites in working toward VPP participation.
      • Support Koch employees who participate in the SGE program.
      • Develop site-specific ergonomic guidelines for at least one pilot site based on current risk and leverage appropriate knowledge across other Koch pilot sites.
      • Support an overall workplace culture that values safety and health as part of daily business operations.
      • Continue an internal audit program that consists of both Environmental, Health & Safety (EH&S) compliance and management system reviews, where progress toward achieving EH&S goals is verified and improved per the partnership measures outlined in section VII. Partnership Measurements.
      • Share baseline and measurement data with OSHA initially and annually thereafter that will allow evaluation of partnership success (see section VII. Partnership Measurements).
      • Solicit OSHA participation in Koch-sponsored safety and health training events.
    2. OSHA agrees to:
      • Work cooperatively with Koch to provide safety and health information, training, and training materials as reserves allow.
      • Share information on available OSHA training offered through the OSHA Training Institute and other facilities.
      • Ensure that CSHOs are knowledgeable of partnership requirements and objectives, and encourage them to provide assistance as requested by Koch.
      • Establish, upon request, an OSHA presence at Koch conferences and professional functions to encourage participation in training and other outreach activities as reserves allow.
      • Establish a cooperative feedback process that will solicit comments and stakeholder feedback from the Partnership Steering Committee.
      • Establish an OSHA partnership contact in each region that has a Koch pilot work site.
      • OSHA will designate a regional ergonomic coordinator for outreach.
      • Facilitate mentoring support between the Koch pilot work sites and the Voluntary Protection Programs Participant's Association.
      • Track, analyze, and share information on activities such as:
        • Current relevant OSHA inspection findings.
        • Relevant regulatory interpretations.
        • Current industry statistics.
  13. PARTNERSHIP MEASUREMENTS
  14. The Partnership Steering Committee (see section IX. Partnership Administration) will identify appropriate performance measures and tracking protocols (if applicable) for the partnership. These measures will focus on:

    • Safety and health management systems.
    • Hazard identification and correction.
    • Reduction in Recordable and Days Away From Work incidents.
    • Participation in the VPP.

    For example, Impact Measurement will be used to identify and share the impact and success of the partnership by:

    • Annually identifying and recognizing Koch for outstanding progress toward safety and health excellence, as determined by the Partnership Steering Committee.
    • The number of Koch pilot work sites that participate in OSHA's VPP.
    • The number of Koch employees that participate in the SGE program.
    • Aggregate employee proactive involvement data.
    • Incident rate, severity, and lost workday injury and illness rates at individual Koch pilot companies.

    Measurement data will be evaluated at one-year intervals beginning one year from the effective date of this Partnership Agreement.

  15. INCENTIVES
  16. Partnership incentives include:

    • OSHA will maximize the resolution of complaints received against Koch pilot worksites through the use of phone and fax as stipulated in OSHA's Field Instruction Reference Manual (FIRM).
    • OSHA will give appropriate consideration to any Koch affiliate sites who have implemented effective ergonomic programs or who are making good-faith efforts to reduce ergonomic hazards.
    • OSHA will develop a recognition program to highlight the achievements of Koch pilot worksites with exemplary or novel approaches to ergonomics
    • A maximum good faith and history credit will be extended as allowed under OSHA's Field Instruction Reference Manual, the FIRM, in the event that citations are issued to a Koch pilot work site.
    • For hazards not deemed serious, a citation will not be issued if the hazard is abated during the inspection.
    • OSHA will formally recognize Koch pilot work sites for their partnering contributions.
  17. PARTNERSHIP ADMINISTRATION
  18. Partnership Steering Committee: A steering committee will be formed to manage the partnership.

    The steering committee will consist of representatives from Koch and OSHA as follows:

    • Three OSHA National and Field Office representatives.
    • Five representatives from Koch.

    The steering committee will:

    • Determine partnership procedures.
    • Hold quarterly conference calls.
    • Track, analyze, and share information on partnership activities and results.
    • Meet at least annually to evaluate the effectiveness of the Agreement. These meetings will include agenda items, such as:
      • Sharing information on current violations and statistics applicable to Koch or similar industry groups.
      • Clarifying the meaning and application of OSHA standards and policy through relevant interpretations and compliance directives on standards, proposed standards, and violations
      • Identifying the Koch sites with outstanding safety and health excellence.
      • Evaluating data and partnership impact
  19. PARTNERSHIP AGREEMENT TERMS
  20. The effective date of this Agreement will begin 30 days from the date of signing and will continue for three years.

    The Partnership Steering Committee will review the progress of the Partnership annually, in writing, and at the end of the three-year term. If there is consensus between Koch and OSHA, the Agreement can be:

    • Modified at any time.
    • Renewed at the end of the three-year term.
  21. FUNDS
  22. It is not anticipated that any funding will be transferred between OSHA and Koch.

  23. TERMINATION
    1. Individual Koch Pilot Work Site The Partnership may be terminated for one or more individual Koch pilot work sites 30 days following the receipt of written notice from Koch that operational control of the work site has transferred to a non-Koch-controlled entity through sale, lease, or other arrangement. The partnership will remain in effect for all work sites not covered by the notice. The Partnership may be terminated for one or more individual Koch pilot work sites for any reason 30 days following the receipt of written notice from OSHA.
    2. Entire Agreement The Partnership may be terminated for any reason 30 days following the receipt of a signed letter from any signatory partner.

 


  • John L. Henshaw
  • USDOL, OSHA

 

Date:



  • Dan Stecklein
  • Vice President
  • Koch Mineral Services, LLC
  • On behalf of:
  • Koch Carbon, LLC
  • The C. Reiss Coal Company
  • Koch Nitrogen Company

 

Date:



  • Randy L. Lair
  • Vice President - Aviation
  • Koch Business Holdings, LLC
  •  
  •  
  •  
  •  

 

Date:



  • Jeff Speer
  • Vice President
  • Koch Materials Company C

Date:


 


  • Blake McBeth
  • President
  • Koch Hydrocarbon Southwest, LLCC

 

Date:


  • Steve E. Tatum
  • President
  • Koch Hydrocarbon, LP

 

Date:


Attachment 1
Koch Pilot Work Sites

Koch Company

Work Site Location(s)

Koch Business Holdings, LLC

Wichita Aviation, KS

Koch Hydrocarbon, LP

  • Hutchinson Fractionator, KS
  • Medford Fractionator, OK
  • Isom Unit, Conway, KS

Koch Hydrocarbon SW, LLC

  • Mont Belvieu Fractionator, TX
  • Schaefferstown Propane Terminal, PA

Koch Materials Company

  • Billings, MT
  • Boise, ID
  • Catoosa, OK
  • Dodge City, KS
  • Garden City, GA
  • Reading, PA
  • Saginaw, TXA

Koch Mineral Services, LLC

Koch Carbon, LLC

KCBX Chicago, IL

C. Reiss Coal Company

  • Fairmont, WV
  • Green Bay, WI

Koch Nitrogen Company

Sterlington, LA

Koch Mineral Services, LLC

Wichita office

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