Halliburton 20 Rules of Contractor Responsibilities

20 Rules of Contractor’s  Responsibilities - Summary

 ▪ Overview of Halliburton’s  Contractor Management (HCM) Program

 ▪ Contractor’s Responsibilities

 ▪ Halliburton’s 20 Rules

 ▪ Training Expectations

 ▪ Acknowledgement Form

Halliburtons Contractor  Management Program  - Overview

▪ What is Halliburton’s  Contractor  Management (HCM) Program?

Halliburton’s Contractor Management Program is a global  initiative with a focus on assessing and mitigating risks to health, safety and the environment associated with Contractor Services.

▪ What are the requirements of HCM?

Halliburton’s Contractor Management requires Global, Regional and Site-Level execution tothe same  focus; starting with Halliburton’s 20 Rules of Contractor Responsibilities.

Halliburton’s 20 Rules of Contractor Responsibilities is an introduction and overview of Halliburton’s minimum  HSE expectations. These rules represent areas where we, as well as our Contractors have identified and mitigated HSE risks.

Contractor Supervisor Responsibilities, contd

▪ HSE Plan required

The Contractor Supervisor must ensure all work is planned to remove or safeguard all

known hazards.  The Contractor must submit a Site-Specific Safety Plan to Procurement documenting the intended method(s) used to remove or safeguard all known hazards (refer to WM-GL-HAL-PTP-306 Procurement –  HSE Process Requirements and WM-GL- HAL-HSE-0605 Contractor/Sub-Contractor Safety).

The HSE plan should also detail expected behaviors, identified hazards and development of appropriate work procedures before beginning work. If any unexpected hazard occurs, stop work until the hazard is removed or safeguarded.

▪ Communication of the HSE Plan to Employees

The Contractor Supervisor will communicate the proper instructions to each employee as it applies to the task the employees are about to perform.

Contractor Supervisor Responsibilities

▪  Communication of the HSE Plan to Halliburton

The Contractor Supervisor is expected to establish effective communication with Halliburton's representatives and maintain the communication (i.e. expected behaviors, roles, and responsibilities) throughout the job.

The Contractor Supervisor should continually communicate with their personnel, sub- Contractors and Halliburton's representatives to improve safety and environmental performance. They should question any request from Halliburton that they consider to create risk or potential harm to the environment. Identified unsafe conditions must be promptly corrected or properly safeguarded.

The Contractor Supervisor will ensure that records are kept that document the personnel that have reviewed and understood Halliburton Rules of Contractor Responsibilities.

▪ Safety Meetings

The Contractor Supervisor must hold on-the-job safety meetings (tailgate or toolbox) daily and as required by work conditions or shift changes.  Additional meetings may be required anytime a non-routine job is performed or a significant change in work scope activities occur.

Contractor Supervisor Responsibilities, contd

▪ Training

The Contractor will ensure all employees are adequately trained to respond safely to identified hazards.

▪ Incident Reporting

The Contractor Supervisor must report and fully investigate all incidents and provide a written report of incident and the root causes, and corrective action plan (steps taken to prevent another incident).

Contractor Employee Responsibilities

All contractor employees, including sub-contractors shall read, understand, and comply

with the contents of this presentation.

▪ Stop Work Authority

All contractor employees shall stop work immediately when a hazardous situation arises and implement appropriate mitigation techniques. All Contractor employees should question any request for an action considered to increase risk to people or the environment.

▪ Incident Reporting

All contractor employees shall immediately report any incidents (accident, spill, etc.),

regardless of the nature, to their Supervisor and the appointed Halliburton representative.

Contractor Employee Responsibilities

 ▪ All contractor employees must comply with all applicable federal, state, and local laws,

rules, regulations, and ordinances.

▪ All contractor employees shall report any unsafe conditions or practices immediately to

their Supervisor and the Halliburton appointed representative.

▪ All contractor employees must inspect personal safety equipment and report any problems to their Supervisor. Defective personal safety equipment shall be immediately removed from service and repaired or replaced.


Contractor Employee Responsibilities, contd

Emergency Response and Safety Data Sheets

All contractor employees are expected to be familiar with emergency response plans for the location they are working on. Contractors may be requested to participate in emergency drills while on a Halliburton facility or location.

The Contractor Supervisor will provide employees  access to adequate intrinsically safe (as

required) communication tools (phone, radio, etc.) to use in case of an emergency.

Safety Data Sheet review is required prior to handling chemical products and following all proper handling procedures including the use of PPE.

Rule #1: Report all incidents immediately

Halliburton requires that incidents (first aid, near-miss, environmental) and any changes to an employee's health be reported immediately to a Halliburton representative.  This data assists Halliburton in understanding current hazards and making improvements to work practices and conditions.

Rule #2: Illegal Drugs, Alcohol & Weapons

▪  The use, possession, transportation, promotion or sale of illegal drugs, controlled substances, drug paraphernalia, alcoholic beverages, firearms, explosives, or weapons in any office, work location, vehicle, vessel, or facility by Halliburton Contractors and sub- contractors while performing work for Halliburton is strictly prohibited.

▪  Halliburton reserves the right to carry out reasonable searches of individuals and their personal effects while on Halliburton premises. These searches may be conducted without prior announcement and at such times and locations as deemed appropriate by Halliburton.

▪  Halliburton prohibits all persons from possessing weapons on Company property or while engaged in Company related activities.

▪  Halliburton prohibits all persons engaged in Company related activities from taking weapons onto customer property, including, but not limited to, customer-owned or leased parking areas.

Rule #3: Driving and Vehicle Safety

▪  All personnel shall wear seat belts at all times when a vehicle or equipment is in motion.

Personnel transportation in beds of pick-ups is strictly prohibited on Halliburton sites.

▪  Use of cell phones, blackberry and other mobile electronic devices (including hands-free devices) during the operation of a vehicle while on Halliburton property is prohibited.

▪  Drive at a safe and reasonable speed and obey all posted signs.

▪  Driving while under the influence of alcohol or drugs is prohibited.

▪  Park vehicles in areas as designated by the appointed Halliburton Representative

Rule #4: Personal Protective Equipment (PPE)

▪   Strict adherence to all required Personal Protective Equipment (PPE) is mandatory, specific PPE requirements will be based on job type or tasks performed.

▪   Contractor employees working on Halliburton premises must wear appropriate personal protective equipment. Excessively loose-fitting clothing is prohibited especially around rotating or moving equipment.

▪   The use of rings, neck chains or loose jewelry may be limited, consult the Halliburton representative for local requirements prior to commencing the job.

▪   PPE requirements recommended by the job task and as designated on the Material

Safety Data Sheets (MSDS) for the product being handled shall be strictly followed.


▪    "Minimum PPE" will be worn by all personnel working on location when not in a

"designated safe area". (safe areas will be posted)

▪    "Minimum PPE" is: hard hat, safety footwear (steel toed), safety glasses. Additional site- specific or location-specific PPE such as hearing protection will be designated and posted in those areas as required.


Rule #5: Safe Housekeeping

▪   The contractor’s work area shall be kept clean and orderly, free of clutter  and trash, so work may proceed in a safe and orderly manner. Tools should be safely positioned during use and promptly put away when no longer required.

▪   Clearly identify fire-fighting, spill response kits, emergency shut down devices, and life- saving equipment, and do not block the path to this equipment.

▪   Only approved equipment shall be used in locations where flammable mixtures are present. A Hot Work Permit is required when open flames, or electric arcs are in the work area and while handling flammable materials.

▪   Smoking allowed in designated smoking areas, otherwise no smoking allowed in work area.

Rule #6: Smoking

▪   Smoking is prohibited except in designated areas.

▪   At some Halliburton locations, safety matches or lighters with an enclosed sparking mechanism may be required in the designated smoking area.

Rule #7: Adverse Weather Conditions

▪   Halliburton expects Contractors to use good judgment when weather conditions create a

potentially unsafe working environment.

▪   Notify the Halliburton Representative immediately if developing weather conditions could

possibly interfere with your company's safe delivery of products and services.

Rule #8: Emergency  Response Awareness

▪   All Halliburton work sites operate under a comprehensive Emergency Response Plan.

Contractors should review the site Emergency Response Plan and communicate that plan to all employees.

▪   It is recommended that the Contractor maintain a copy of the Halliburton Emergency

Response Plan while performing work on location.

Rule #9: Security

▪   Contractors will be responsible for their own equipment and held accountable for

controlling the actions of their personnel while on Halliburton premises.

▪   Contractor shall not bring unauthorized individuals onto Halliburton premises, i.e., friends,

relatives, or other observers.

▪   Contractor shall observe Halliburton requirements for site security; i.e., personal areas, closed & locked doors, gates, etc.

Rule #10: Respiratory Protection

▪   Respiratory protection is required when working in areas where respiratory hazards are present. In certain areas, on job sites and at some Halliburton locations, the required use of respiratory protection is necessary and will be posted. In some cases, it may be necessary to consult the product MSDS prior to commencing work in the affected area.

▪   The use of chemical materials that cause a need to wear respiratory protection must be communicated to the Halliburton Representative so necessary communication and risk mitigation to other affected personnel can be made.

▪   In areas where respiratory protection may be required, the employee should not have facial hair that will interfere with the seal of respiratory equipment.

▪    Note: Some Halliburton and customer locations have a local policy addressing facial hair.

Consult the local Halliburton Representative for Facial Hair Guidelines or policy for the area.

Rule #11: Work Permits

▪ It is the responsibility of the Contractor to understand and use the appropriate Permits to Work, and to verify any permit requirements at the location. Contractor must make necessary arrangements with their Halliburton Representative to acquire appropriate authorization to perform those operations at the site.

▪    Certain job tasks are required to be permitted,.  Contractors performing hot work, such as welding,  grinding, cutting or using open flame, etc., are required to obtain a hot work permit from the onsite Halliburton Representative.

▪    Confined Space entry poses a potential for immediate danger to life and health. Work requiring entry into spaces designated as Permit-Required Spaces will require the Contractor to obtain a Confined Space Entry Permit from the onsite Halliburton Representative.

▌ Examples of operations requiring a Permit to Work may include; but are not limited to:

▪    Hot Work

▪    Lockout/Tagout

▪    Excavation and Trenching

▪    Confined Space Entry

▪    Critical Lifting

▪    Electrical Work

▪    Working on Elevated Surfaces

Rule #12: Fall Protection

▪  Fall protection equipment shall be worn when working 4 feet or more above an established working surface.

         ▪ The minimum requirements for fall protection shall be a full body harness, shock    absorber, double locking snap hooks, and lanyard attached to a stationary support. Other fall protection systems (i.e. inertia reel, a cable-grabbing device) can be used with prior approval of the HSE Representative for the Halliburton facility.

▪  Fall Protection is required at all times regardless of height when an immediate danger exists below the working surface and no guard rails are present.

▪  For situations where it is necessary to unhook to change locations, secondary safety line or equipment shall be provided by the Contractor to individuals climbing or working above the working surface to insure they are properly protected from falls at all times.

Rule #13: Unprofessional Behavior

▪ Horseplay, practical jokes, or any type of harassment are prohibited while on Halliburton premises.

Rule #14: Tools and Equipment

Hand Tools

▪  The proper hand tools should always be used for the job. For example, wrenches should not be used as a hammer, screwdrivers should not be used as a pry bar, and pipe wrenches should not be used on hex nuts, etc.

▪  Hand tools shall be kept in good condition. Hammer and chisel heads, hammer handles, pipe wrench jaws and cutting edges should be regularly inspected.

▪  Defective tools shall be immediately removed from service and repaired or replaced.

Power Tools

▪  Power tools shall be kept in good working condition.

▪  Grinder wheels shall be properly rated for the speed of the grinder, with guards in place

without modification.

▪  Power hand tools and extensions cords must be in good working condition and have proper grounding.


▪  Cords and cables shall not have worn, frayed or damaged areas that would expose employees to an electrical hazard.

Rule #15:  Lockout / Tagout

▌  Lockout/Tagout (LOTO):

Lockout/Tagout must be used to secure all power sources when performing maintenance or service on equipment. Types of energy include: electrical, pneumatic, hydraulic, thermal, chemical and all forms of potential stored energy.

Contractors are expected to work with the facility to ensure the Contractor’s Site-Specific Safety plan contains the following LOTO criteria:

▪  A list of which Halliburton Employees, Contractors and/or Sub-Contractors authorized to apply LOTO


▪  A process/procedure for communicating site-specific LOTO requirements

▪  A procedure for removing and reapplying lockout / tagout devices during shift change

▪  Procedures detailing specific instructions for machines and/or equipment subject to LOTO

▪  A description of the identification system used for LOTO devices used at the facility.

▪  A procedure for abandoned lock removal

▪  Procedures for utilizing group lockout devices (as applicable)

▪  A requirement detailing proper usage for fortress keys (as applicable)

▪    A requirement for discipline for those Contractors and/or Sub-Contractors who knowingly and willfully deviate from the requirements set forth in the program.

Rule #16: Environmental Responsibilities

Spill Prevention

Where applicable, in many Halliburton locations, Spill Prevention, Control and Countermeasure (SPCC) and Emergency Response  plans have been developed to comply with environmental regulations.  If a spill or release results from the work your company is performing, implement initial contingency plans and contact the Halliburton representative immediately.

▪    Contractors performing operations on Halliburton premises will be responsible for addressing the remediation of all spills, leaks, etc., including removing or addressing contaminated soils resulting from their operations

Chemical Management

Chemicals should be properly labeled, stored in appropriate containers and staged properly to minimize the chance of spills or improper use.  At a minimum, all chemical handling, transport and storage methods should comply with requirements of local, regional and country regulations.

Storage tanks, pumps and other ancillary equipment containing flammmable chemicals shall be grounded and bonded.

Bonding and grounding cables shall have been recently checked for continuity.

Rule #16: Environmental Responsibilities, cont’d

Waste Management

Proper disposal of Contractor generated waste is the responsibility of the Contractor.  Every effort should be made to recycle, reuse or reduce wastes from Contractor activities. At a minimum all waste disposal activities should comply with all local, regional and country regulations.

Water, Wastewater and Air Emissions

All water, wastewater and air emissions should comply with all applicable local, regional and country regulations.   Every effort should be taken to minimize or reduce wastewater and air emissions.

Contractors working on Halliburton premises are responsible for taking the necessary steps to minimize and prevent pollution.

Rule #17: Forklifts & Equipment


▪   Operators shall be certified to operate forklifts and heavy equipment.

▪   Seat belts shall be worn at all times the equipment is in motion

▪   Riders are not permitted.

▪   Forklifts must be equipped with a backup alarm.

▪   When unattended, forks shall be fully lowered, power shall be shut off, keys removed, brakes set and wheels chocked if necessary.

Rule #18: Ladder and Scaffolding Safety

Ladder Safety:

▪  A Ladder should always be used to reach objects or areas not readily accessible to the

person’s reach.

▪  Where appropriate, all ladders must be secured in place (tied off ) before work begins.

▪  All ladders shall be inspected before use. Any damaged or unsafe ladders whether supplied by Halliburton or Contractor shall be reported to the Halliburton representative, tagged, and taken out of service.


▪  Scaffolding may be used when appropriate.

▪  Climbing or working from the handrail, mid-rail, or brace members of the scaffolding is prohibited.

▪  Authorized Persons shall only be responsible for use of the embankment with regard to scaffolding.

Rule #19: Electrical Safety & Power Lines

Electrical Safety & Power Lines:

▪  A qualified electrician using PPE shall conduct all electrical work (including grounding) in accordance with the latest codes, standards, and regulations.  Work permits may be required for certain job tasks, Contractor shall make necessary arrangements with their Halliburton Representative to acquire appropriate for work permit.

▪  A qualified person, prior to beginning work, shall discharge all stored energy and must verify the equipment is de-energized and ensure proper lockout/tagout  procedures are implemented prior to working on the equipment.

▪  All power lines shall be considered energized unless proper measures have been taken to de-energize, contact Halliburton representative when performing work near energized overhead power lines.


▪  PPE must be selected based on the arc-flash hazard rating.

▪  PPE shall be used by all Contractors, Contractor Employees and Sub-Contractors working within the Flash Protection Boundary.

Note PPE should be considered a last line of defense rather than a replacement for safe work practices or engineering controls that can reduce the exposure to arc-flash hazards. Electrical equipment must be placed in a electrically safe work condition whenever possible1.

Rule #20: Lifting/Hoisting Devices, Cranes and Dropped Objects

Cranes & Sling Safety

▪  Only trained certified operators and riggers are allowed to conduct lifting and hoisting operations with cranes.  The use of a crane or derrick to hoist employees onto a personnel platform is strictly prohibited.

▪  Proper inspection and determination of the load rating shall be conducted prior to use.

Suspended Loads

▪  A safe distance must be maintained when a load is suspended in the air.

▪  Employees shall not go between the suspended load and other objects where they may be trapped or crushed.

▪  Non-conducting Tag Lines shall be used to control a suspended load.

Rule #20: Lifting/Hoisting Devices, Cranes and Dropped Objects, contd

Dropped Objects

▪  Contractors, Contractor Employees and Sub-Contractors who are exposed to or create dropped object hazards while providing services at a Halliburton property of facility must be made  aware of Halliburton’s Dropped Objects  Prevention Program.

▪  Contractors, Contractor Employees and Sub-Contractors must comply with an approved Dropped Objects Prevention  Program  (i.e. Contractor DROPS Program or Halliburton’s   DROPS Program whichever is more stringent)

▪  Dropped objects awareness shall be included as part of the pre-job hazard identification process and communicated to all Contractor Employees and Sub-Contractors working at the site or location.

          ▪    Preparing Job Safety Analysis, communicating all applicable hazards, implementing controls and any other action necessary for the protection of employees and subcontractors.

Training Expectations

All training must be complete before any contracted services are commenced at any Halliburton and/or Customer location.  In addition, the Contractor shall adhere to the following:

▪    Provide all required training for its personnel in order to perform their job safely and correctly .

▪    For personnel that will operate at a rig site: H2S (Opito or IADC accredited), First Aid and Fire

Safety training is required.

▪    Provide further training as required depending on the task.

▪    Provide a training matrix for each position.

The Company confirms that it has presented these 20 Rules of Contract Responsibilities to its employees and acknowledges that they have read, understood and agreed to comply with all Halliburton Health and Safety Policies, Standards & Guidelines while on a Halliburton worksite.

1. Please include all employees that will be performing work at a Halliburton and/or Customer site and the date they reviewed Halliburton’s policies.
2. Submit signed list to the Halliburton Project Coordinator/Originator & Procurement.
3. The list must be updated to reflect all Contractor’s employees that are performing work at a Halliburton and/or Customer’s site.


▪ Has the 20 Rules of Contractor responsibilities acknowledgement form been completed?

▪ Has the Site-Specific Safety Plan been submitted to Procurement and approved by an HSE Representative?