PR-1712 - AI PS Assurance Procedure

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Petroleum Development OmanL.L.C.

Document Title: AI-PS Assurance

Document ID PR-1712

Document Type Proceure

Security !nrestricte

Discipline Tec"nical Sa#et$ %n&ineerin&

Owner 'S%( ) *ea o# Tec"nical Sa#et$ %n&ineerin&

Issue Date 12 'a$ 2+12

Version 2.+



Petroleum Development Oman LLCRevision: 2.0

Effective: May-12

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Effective: May-12

i Document Authorisation

Authorised or Issue ! "a# 2$12

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Effective: May-12

ii Revision %istor#

The follo+ing is a ,rief s!""ary of the "ost recent revisions to this doc!"ent. etails of allrevisions &rior to these are held on file ,y the iss!ing de&art"ent.

Revision&o

Date Author Scope ( Remar)s

2.0 Fe,-12 an e+itt ME Revised to cover the ne+ content and"erging of relevant "aterial fro"Revision 1.0

1.0 e&-0 Ro,in (or"an ')P (e+ Proced!re

iii Related *usiness Processes

Code *usiness Process +,P*" $.

EP1 Prod!ce 3ydrocar,ons

EP2 Maintain and 4ss!re Facilities

iv Related Corporate "ana/ement rame 0or) +C".

Documents

The related CMF oc!"ents can ,e retrieved fro" the CMF Business Control Portal .

Refer to 4&&endi5

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Effective: May-12

A*L, O CO&,&S

1 ntrod!ction...........................................................................................................................

1.1 6ac$gro!nd.....................................................................................................................

1.2 P!r&ose...........................................................................................................................

1.* co&e..............................................................................................................................

1. istri,!tion/Target 4!dience............................................................................................

1.7 Perfor"ance Monitoring..................................................................................................

1. Revie+ and "&rove"ent...............................................................................................

1. te&-o!t and 4&&roval.....................................................................................................

2 4-P 4ss!rance Fra"e+or$................................................................................................8

2.1 CCP Pillars of Process afety......................................................................................9

2.2 P) Ele"ent !ides....................................................................................................10

* Roles and Res&onsi,ilities...................................................................................................11*.1 #evel 2 4-P 4ss!rance...............................................................................................11

*.1.1 nitiate the #evel 2 4ss!rance.................................................................................12

*.1.2 Co"&lete the #evel 2 elf-4ssess"ent..................................................................12

*.1.* Pre&are for the level 2 4-P 4!dit.........................................................................12

*.1. E5ec!te the #evel 2 4!dit.......................................................................................12

*.1.7 Manage #evel 2 4!dit 4ction te"s........................................................................12

*.1. Manage the 4ss!rance Process..............................................................................12

*.2 #evel * 4-P 4ss!rance...............................................................................................12

*.2.1 nitiate the #evel * 4ss!rance.................................................................................12

*.2.2 E5ec!te the #evel * 4ss!rance...............................................................................12

*.2.* Manage #evel * 4ss!rance 4ction te"s................................................................12

*.2. Manage the 4ss!rance Process..............................................................................12

4&&endi5 1 - #evel 2 4-P 4!dit Ter"s )f Reference ;Te"&late<............................................12

4&&endi5 2 - 4!dit =or$ing Pa&er ;E5a"&le<............................................................................12

4&&endi5 * - #evel * 4ss!rance Plan ;E5a"&le<.......................................................................12

4&&endi5 - Ty&ical #evel * Prod!ction )&eration F!nction 4!dit...........................................12

4&&endi5 7 - Process afety Manage"ent Fra"e+or$.............................................................12

4&&endi5 - 4,,reviations........................................................................................................ 12

4&&endi5 > Reference Material...............................................................................................12






Effective: May-12

1 Introduction

11 *ac)/round

4n e5&losion at #ongford gas &lant occ!rred on 27 e&te",er 1998 res!lting in t+ofatalities and a 19 day interr!&tion in gas s!&&ly to the state of ?ictoria@ 4!stralia. 4na!dit cond!cted ,y a cor&orate tea" si5 "onths &rior to the e5&losion had deter"inedthat the gas &lant +as s!ccessf!lly i"&le"enting its &rocess safety "anage"entsyste". 3o+ever@ a Royal Co""ission s!,seA!ently investigated the e5&losion andfo!nd significant deficiencies in the areas of ;1< ris$ identification@ analysis and"anage"entB ;2< trainingB ;*< o&erating &roced!resB ;< doc!"entationB and ;7<co""!nications. These long-standing &ro,le"s had not ,een detected ,y the &rior a!dit.

Critical eval!ation of the 4-P "anage"ent syste" is one ele"ent of learning fro"e5&erience. This &roced!re covers for"al "ethods for &erfor"ing &eriodic 4ssetntegrity > Process afety ;4-P< fra"e+or$ a!dits@ +hich sho!ld red!ce ris$ ,y&roactively identifying and correcting +ea$nesses in "anage"ent syste" design and

i"&le"entation.ince 2010@ P) has i"&le"ented a dedicated &rogra" of level 2 ;cross-directorate<and level * ;asset verification< ass!rance for 4-P. The initial &rogra" +as ,ased onthe Center for Che"ical Process afety ;CCP< !idelines for Ris$ 6ased Processafety. 4n e5ternal a!dit at the end of 2010 reco""ended that P) esta,lished aris$-,ased 4-P ass!rance &roced!re that +as tailored to P) ,!siness. The&roced!re +as trialled in the 2011 4-P ass!rance &rogra" and +as for"alised in thefirst iss!e of this &roced!re in 2012.

IMPORTANT NOTE : This procedure has taken the procedure reference number of ‘Level 3 Audit !P"#$%$&' previousl( o)ned and administered b( the *+P Function, Asman( of the aspects covered in this procedure are applicable to those in the ori-inal P"#$%$& it )as a-reed that the t)o procedures be mer-ed,

12 Purpose

The &roced!re defines the &rocess for eval!ating the i"&le"entation of 4-PreA!ire"ents in P)@ to ens!re that they are in &lace and f!nctioning in a "anner that&rotects e"&loyees@ sta$eholders@ the environ"ent and &hysical assets against&rocess safety ris$s.

Scope

The &roced!re covers level 2 and level * 4-P ass!rance@ +here:

• #evel 2 ass!rance is a 2nd &arty ;inde&endent of the asset< a!diting of a single

asset. This is also referred to as a cross-directorate a!dit.

• #evel * ass!rance is an asset chec$ing or verifying its o+n &rocesses.

The &roced!re does not cover level 1 4-P ass!rance ;i.e. * rd &arty a!diting of theP) 4-P "anage"ent syste"<@ +hich is addressed ,y the #evel 1 Cor&orate 3E 4!dit &rogra" and the Cor&orate 3E 4!dits &roced!re PR-199. 3o+ever@ in general#evel 1 4-P a!dits are e5&ected to ta$e &lace once every three years.






Effective: May-12

Distriution(ar/et Audience

4-P Ele"ent )+ners@ )&erations Managers@ elivery Tea" #eaders and 4P4#Ttea" "e",ers / Process afety Ele"ent Cha"&ions.

13 Per4ormance "onitorin/

Co"&letion of #evel 2 self assess"ents and cross-directorate a!ditsD is incl!ded asan 4-P ey Perfor"ance ndicator ;P<. The P is calc!lated as a "ilestone"eas!re against the level 2 ass!rance &lan.

4!dit 4ction Clos!reD is incl!ded as an 4-P Perfor"ance ndicator ;P<. The P iscalc!lated as the &ercentage of overd!e 4-P a!dit actions of all o&en #evel 2 4-Pa!dit actions. ee ection * for f!rther infor"ation a,o!t action close o!t.

1 Revie5 and Improvement

4s a "ini"!"@ the &roced!re shall ,e revie+ed and !&dated on a three yearly ,asis

,y the oc!"ent )+ner.

16 Step-out and Approval

This &roced!re is "andatory and shall ,e co"&lied +ith at all ti"es. ho!ldco"&liance +ith the &roced!re ,e considered ina&&ro&riate or the intended activitycannot ,e effectively co"&leted or safely &erfor"ed@ then ste& o!t a!thorisation anda&&roval "!st ,e o,tained fro" the oc!"ent )+ner@ &rior to any changes or activities associated +ith the &roced!re ,eing carried o!t






Effective: May-12

2 AI-PS Assurance rame5or)

The Center for Che"ical Process afety ;CCP< develo&ed a Ris$ 6ased Processafety fra"e+or$ that +as organised into fo!r &illars@ +hich +ere f!rther "ade !& of t+enty ele"ents as sho+n in the fig!re 2.1 ,elo+.

Figure 2.! AI"P# Assuran$e Fra%ework



Plant o&erating&roced!res

Per"it To =or$

Technical integrity

Contractor"anage"ent

Training and&erfor"anceass!rance

Manage"ent of

change)&erationalreadiness

Cond!ct ofo&erations

E"ergency"anage"ent

Commit toProcess Sa4et#

Process safetyc!lt!re

Co"&liance +ithstandards

Process safetyco"&etency

=or$forceinvolve"ent

ta$eholdero!treach

nderstand%a8ards 9 Ris)s

Process$no+ledge

"anage"ent

3aards andEffects

Manage"entProcess

"ana/e Ris) Learn 4rome:perience

ncidentinvestigation

Meas!re"ent and"etrics

4ss!rance

Manage"entrevie+ andcontin!o!s

i"&rove"ent

Asset Inte/rit# - Process Sa4et# "ana/ement




Effective: May-12

21 CCPS Pillars o4 Process Sa4et#

4&&endi5 &rovides a s!""ary of the e5&ectations set ,y the CCP !idelines for each ele"ent of Ris$ 6ased Process afety. The e5&ectations "ay ,e !sef!l for a#evel 1 4!dit of P) 4-P Manage"ent. 4t a high level@ these e5&ectations are:

Tocommit to process sa4et#@ facilities sho!ld foc!s on:

• evelo&ing and s!staining a c!lt!re that e",races &rocess safetyB

• dentifying@ !nderstanding and co"&lying +ith codes@ standards@ reg!lations@

and la+sB

• Esta,lishing and contin!ally enhancing organiational co"&etenceB and

• oliciting in&!t fro" and cons!lting +ith all sta$eholders@ incl!ding e"&loyees@

contractors@ and neigh,o!rs.

Tounderstand ha8ards and ris)@ facilities sho!ld foc!s on:

• Collecting@ doc!"enting@ and "aintaining &rocess safety $no+ledgeB and

• Cond!cting haard identification and ris$ analysis st!dies.

Tomana/e ris)@ facilities sho!ld foc!s on:

• evelo&ing +ritten &roced!res that ;1< descri,e ho+ to safely start !&@ o&erate@

and sh!t do+n &rocesses@ ;2< address other a&&lica,le o&erating "odes@ and;*< &rovide +ritten instr!ctions that o&erators can e5ec!te +hen they enco!nter &rocess !&sets / !nsafe conditions.

• "&le"enting an integrated s!ite of safe +or$ &olicies@ &roced!res@ &er"its@

and &ractices to control "aintenance and other non-ro!tine +or$.

• E5ec!ting +or$ activities to ens!re that eA!i&"ent is fa,ricated and installed in

accordance +ith s&ecifications@ and that it re"ains for service over its entirelife cycle.

• Managing contractors@ and eval!ating +or$ &erfor"ed ,y contractors@ to

ens!re that the associated ris$s are acce&ta,leB ens!ring that contractors arenot e5&osed to !nrecognied haards or !nderta$e activities that &resent!n$no+n or intolera,le ris$.

• Providing training and cond!cting related activities to ens!re relia,le h!"an

&erfor"ance at all levels of the organiation.

• Recogniing and "anaging changes.

• Ens!ring that !nits@ and the &eo&le +ho o&erate the"@ are &ro&erly &re&ared

for start-!&s.

• Maintaining a very high level of h!"an &erfor"ance@ &artic!larly a"ong

o&erators@ "aintenance &ersonnel@ and others +hose actions directly affect&rocess safety.

• Pre&aring for and "anaging e"ergencies.

To learn 4rom e:perience@ facilities sho!ld foc!s on:

• nvestigating incidents that occ!r at the facility to identify and address the root

ca!ses.

• 4&&lying lessons fro" incidents that occ!r at other facilities +ithin the

co"&any and +ithin the ind!stry.

•

Meas!ring &erfor"ance and striving to contin!o!sly i"&rove in areas that have,een deter"ined to ,e ris$ significant.






Effective: May-12

• 4!diting &rocess safety "anage"ent syste"s as +ell as the &erfor"ance of

+or$ activities that "a$e !& the "anage"ent syste".

• 3olding &eriodic "anage"ent revie+s to deter"ine if the "anage"ent

syste"s are +or$ing as intended and if the +or$ activities are hel&ing thefacility effectively "anage ris$.

22 PDO ,lement ;uides

The Co"&any has develo&ed 4-P Ele"ent !ides that translate the CCP Ris$6ased Process afety g!idelines into reA!ire"ents in the P) Cor&orateManage"ent Fra"e+or$. The P) 4-P Ele"ent g!idelines are contained in '-8 4 P Ele"ents !ide. For each ele"ent@ the g!idelines identify:

• The f!nctional / cor&orate ele"ent o+ner. This is the individ!al +ho is

acco!nta,le for "aintaining the individ!al Ele"ent !ide and Cor&orateManage"ent Fra"e+or$ standards associated +ith the Ele"ent.

• 6ac$gro!nd@ ai"s@ o,Gectives and sco&e of the ele"ent.

• #evel 2 self assess"ent &rotocols. These are the &rotocols that shall ,e !sedfor the asset level 2 self assess"ents.

• #evel * verification chec$lists. These are chec$lists develo&ed ,y the f!nction

that sho!ld ,e !sed ,y the assets in the e5ec!tion of their level * ass!rancesched!le.

Refer to Appen&i' ( for e'a%ples of the re)uire%ents of a Typi$al *e+el ,Pro&u$tion Operation Fun$tion Au&it.






Effective: May-12

3 Roles and Responsiilities

31 Level 2 AI-PS Assurance

The R4C chart for level 2 4sset ntegrity > Process afety ;4-P< ass!rance issho+n in Ta,le *.1. !idance for the e5ec!tion of individ!al tas$s sho+n in theR4C chart is &rovided in ections *.1.1 to *.1..

R < Responsile

A < Accountale

S < Supports

C < Consulted

I < In4ormed

A I - P S C h a m p i o n

A I - P S A s s u r a n c e , l e m e n t O 5 n e r

A I - P S , l e m e n t O 5 n e r s

S p o n s o r + s . = a s s e t D i r e c t o r + s .

A

u d i t e e + s . = O p e r a t i o n s " a n a / e r s

A u d i t C

o o r d i n a t o r + s . = D 1 L o r e > u i v a l e n t

A

I P S A L 1 P S , l e m e n t C h a m p i o n s

A u d i t 1 e a m L e a d e r

A u d i t 1 e a m " e m 2 e r s

A u d i t P e e r R e v i e 5 e r

as)

1$ Initiate the level 2 assurance

1.1 Esta,lish and "aintain a ris$-,asedlevel 2 4-P ass!rance &lan. A S C R

1.2 dentify ris$ &riorities@ i.e. 4-PEle"ents to ,e addressed.

C A C C C R

1.* 4ssign co"&etent a!dit tea" leader. A R

1. Provide the reso!rces to ens!re thata co"&etent a!dit tea" is availa,le. A

2$ Complete the level 2 AI-PS sel4-assessment

2.1 Co"&lete level 2 self-assess"entagainst the level 2 4-P &rotocols. A R

3$ Prepare 4or the level 2 AI-PS audit

*.1 Pre&are and a&&rove the T)R for level 2 a!dit.

A C R

*.2 Finalise the sched!le of level 2 a!dit. A R

*.* ss!e &re-read "aterials for level 2a!dit.

A R

*. Cond!ct level 2 a!dit tea" ,riefing

on T)R@ a!dit "ethodology andre&orting reA!ire"ents.

A R

$ ,:ecute the level 2 audit

.1 Cond!ct level 2 a!dit. C C A R S

.2 #evel 2 a!dit close-o!t "eeting. A R

.* ss!e level 2 a!dit re&ort. C R A R C

. ss!e s!""ary re&ort of level 2a!dits.

A C

6$ "ana/e level 2 audit action items

7.1 Ens!re re"edial actions fro" thea!dit are &ro&erly addressed and thatactions ta$en are doc!"ented.

A






Effective: May-12

R < Responsile

A < Accountale

S < Supports

C < Consulted

I < In4ormed

A I - P S C h a m p i o n

A I - P S A s s u r a n

c e , l e m e n t O 5 n e r

A I - P

S , l e m e n t O 5 n e r s

S p o n s o r + s

. = a s s e t D i r e c t o r + s .

A u d i t e e + s . = O p

e r a t i o n s " a n a / e r s

A u d i t C o o r d i n a t o r + s . = D 1 L o r e > u i v a l e n t

A I P S A L 1 P S , l e m e n t C h a m p i o n s

A u d i t 1 e a m L e a d e r

A u

d i t 1 e a m " e m 2 e r s

A u d i t P e e r R e v i e 5 e r

7.2 4&&rove the clos!re of actionsrelevant to 4-P Ele"ent. A

7.* 4&&rove changes to re"edial actions@d!e dates/action &arties. A

?$ "ana/e the assurance process

.1 Maintain P) &rocesses and&roced!res for 4-P ass!rance. A R C

.2 ee$ feed,ac$ on ann!al ass!rance&rogra".

C A C C C C C C C C

.* ?erify the rigo!r of the PR &rocessand arrange &eriodic e5ternal&artici&ation.

C A C

Table ,.! RA#-I -hart for *e+el 2 AI"P# Assuran$e

Ma&&ing roles in the R4C against &ositions in the organisation:

• 4-P Cha"&ion: The irector acco!nta,le for 4-P in the Cor&orate 3E

Plan.

• 4-P 4ss!rance Ele"ent )+ner: The )+ner of this &roced!re.

• 4-P Ele"ent )+ners: Cor&orate or f!nctional o+ners of individ!al Ele"ents

as identified in '-8.

3 Initiate the Level 2 Assurance

Esta,lish and "aintain a ris$-,ased level 2 4-P ass!rance &lan.

• ss!e a three-year level 2 4-P ass!rance &lan &roviding coverage of all

assets. ain )&erations #eadershi& Tea" ;)#T< endorse"ent.

dentify ris$ &riorities@ i.e. 4-P Ele"ents to ,e addressed:

• Cond!ct 4-P ris$ revie+ +or$sho& involving 4-P +or$ing gro!& to identify 4-P Ele"ents to ,e in sco&e of level 2 ass!rance.

4ssign co"&etent a!dit tea" leader.

Provide the reso!rces to ens!re that a co"&etent a!dit tea" is availa,le:

• 4gree date for level 2 a!dits +ith )#T.

• ss!e list of &ro&osed a!dit tea" "e",ers to )#T and reA!est release of staff.

ain agree"ent.

• 6loc$ a!dit dates in a!dit tea" "e",erDs calendar.






Effective: May-12

3 2 Complete the Level 2 Sel4-Assessment

Co"&lete level 2 self-assess"ent against the level 2 4-P &rotocols:

• o+nload latest version of level 2 self-assess"ent trac$er and 4-P Ele"ent

!ides ;'-8< and distri,!te to Process afety Ele"ent Cha"&ions.• dentify asset focal &oint for level 2 self-assess"ent trac$er.

• ic$ off level 2 self-assess"ent in 4P4#T "eeting.

• Monitor co"&letion of the level 2 self-assess"ent.

3 3 Prepare 4or the level 2 AI-PS Audit

Pre&are and a&&rove the Ter"s )f Reference ;T)R< for level 2 a!dit:

• evelo& draft T)R for the level 2 a!dit and circ!late for co""ent. ee

4&&endi5 1 for draft level 2 a!dit T)R.

• ss!e final version of the T)R for the level 2 a!dit.

Finalise the sched!le of level 2 a!dit:

• Revie+ flight sched!les for the a!dit &eriod.

• Pro&ose draft sched!le and o!tline intervie+ees. ain agree"ent ,et+een

4!dit Tea" #eader and 4!dit Coordinator.

• 4!dit Coordinator to confir" that logistics incl!ding flights@ acco""odation@

land trans&ort and intervie+s have ,een arranged.

• dentify training reA!ire"ents for e5ternal a!dit tea" "e",ers@ e.g. 32

4+areness and Esca&e training for access to so!r facilities. 4rrange training ;if reA!ired<.

• 4rrange logistics for e5ternal a!dit tea" "e",ers ;if reA!ired<@ e.g. air&ort and

hotel &ic$-!& / dro&-offB trans&ort to / fro" training instit!tesB gate &assesB etc.

ss!e &re-read "aterials for level 2 a!dit.

• To facilitate the efficient and effective e5ec!tion of the a!dit@ it is reA!ired that

the self-assess"ent against the level 2 4-P &rotocols@ Plant )&eratingMan!al and )&erations 3E Case shall ,e for+arded or "ade accessi,le to 4!dit Tea" #eader at least one ;1< +ee$ &rior to the a!dit ;can ,e in electronicfor"@ via +e,site / #ive#in$ access or hard co&y<. This +ill allo+ a revie+ of the a!diteeDs arrange"ents and ena,le set-!& of the a!dit to ens!re foc!s onthe areas li$ely to re&resent the highest ris$ to the ,!siness.

Cond!ct level 2 a!dit tea" ,riefing on T)R@ a!dit "ethodology and re&ortingreA!ire"ents:

• Prod!ce / !&date a!dit tea" ,riefing "aterials.

• Engage 4-P Ele"ent )+ners to &artici&ate as &art-ti"e &resenters.

• )rganise roo" and send "eeting invitation for a!dit tea" ,riefing.

• eliver a!dit tea" ,riefing on T)R@ a!dit "ethodology@ level 2 &rotocols and

a!dit re&orting.

Page 1* PR-1712 - 'AI-PS Assurance' Procedure Printed 11/01/12





Effective: May-12

3 4 ,:ecute the Level 2 Audit

Cond!ct level 2 a!dit:

• The a!dit +ill ,e cond!cted !sing the P) 3E 4!dit "ethodology

s!""aried ,elo+. Findings shall ,e classified and the i"&le"entation of 4-P Ele"ents assessed in accordance +ith the criteria sho+n ,elo+.

• The "ethodology +ill !se a Hris$-,asedI a&&roach and a general a!diting

a&&roach in line +ith good ind!stry &ractice. Tea" "e",ers +ill gather infor"ation ,y field o,servation@ thro!gh intervie+s and incl!ding chec$s of hard+are and doc!"entation. 4!dit evidence +ill ,e ,ased !&on sa"&ling of the availa,le infor"ation and therefore sho!ld not ,e considered all-incl!siveor e5ha!stive. Conscientio!s efforts +ill ,e "ade to verify findings and toconfir" the validity of reco""ended actions. =here G!dg"ent is reA!ired@ theres!lt +ill ,e deter"ined ,y consens!s +ithin the a!dit tea".

• 4!dit o,servations@ &otential findings and reco""endations sho!ld ,e

recorded in 4!dit =or$ing Pa&ers ;4=Ps<B see 4&&endi5 2 for an e5a"&le.

)ne 4=P sho!ld ,e develo&ed for each 4-P Ele"ent +ithin the sco&e of thea!dit.

• Classification of the a!dit findings shall ,e in accordance +ith the Rating #evel

Ta,le *.1. 4ll findings are to ,e classified ,ased !&on the &rofessional G!dg"ent of the a!dit tea". The &ri"ary criterion for rating each finding is theadeA!acy of the control for the ris$ against the e5&ectation set in the relevantP) 4-P Ele"ent !ides ;'-8<.

0ea)ness Level De4inition

erio!s ;< The finding is li$ely to ca!se a high !ndesira,le effect on theachieve"ent of P)Ds o,Gectives@ therefore +arrantingi""ediate re&orting to senior "anage"ent e.g. Technicalirector level.

3igh ;3< The finding is li$ely to ca!se a high !ndesira,le effect on theachieve"ent of one of P)Ds o,Gectives@ +arranting re&orting tothe a!diteeDs "anage"ent.

Medi!" ;M< The finding is li$ely to ca!se a "eas!ra,le !ndesira,le effect onthe achieve"ent of one of P)Ds o,Gectives.

#o+ ;#< The +ea$ness is !nli$ely to have a "eas!ra,le i"&act on P)Dso,Gectives@ ,!t its correction +o!ld enhance the ris$ ,asedcontrol fra"e+or$.

Table ,.! Rating *e+el Table

• (o a!dit o&inion +ill ,e &rovided. 4ssess"ents of the i"&le"entation of the

4-P Ele"ents in line +ith the P) 4-P Ele"ent !ides ;'-8< +ill ,eindicated ,y reference to three &ossi,le categories:

Controls Acceptale

(one@ or a fe+ #o+ and/or Medi!" rated findings are re&orted +hich indicatethat a Honce-offI rather than &rocess or syste" str!ct!ral +ea$nesses is &resentor that general enhance"ent of the controls@ &rocess@ or syste" fra"e+or$ is notneeded ;e5 < 2 or less<.

Controls &eed Improvement

o"e Medi!" and / or one or "ore 3igh rated findings are re&orted +hichindicate a +ea$ness in $ey controls / ,arriers or in a &art of the &rocess or syste" str!ct!ral fra"e+or$ ;Some < 3 or more<.






Effective: May-12

Controls &eed "a@or Improvement

Three or "ore 3igh and/or one or "ore erio!s rated findings are re&ortedindicating fail!res in $ey controls / ,arriers or across a significant &art of the&rocess or syste" str!ct!ral fra"e+or$.

Table ,.2! -ontrol A$$eptability Table

• 4 f!rther A!alitative descri&tion +ill ,e &rovided as &art of the !""ary and

Concl!sions@ to s!""arise the overall o!tco"e and highlighting the 4-PEle"ents +here findings are identified. This +ill incl!de a ta,le that de&icts areference to each finding and the control acce&ta,ility assess"ent for each 4-P Ele"entB see Ta,le *.* for e5a"&le.

Process safetyc!lt!re

Plant o&erating&roced!res / "an!als

Cond!ct of o&erations

Co"&liance +ithengg. standards

f1-3 PT= E"ergency"anage"ent

Process safety

co"&etency

Technical ntegrity f7-3

f-3f-3

ncident investigation

=or$forceinvolve"ent

Contractor"anage"ent

Meas!re"ent and"etrics

ta$eholder o!treach Training and&erfor"anceass!rance

4ss!rance

Process $no+ledge"anage"ent

Manage"ent ofchange

f8- Manage"ent revie+and contin!o!si"&rove"ent

3EMP f2-Mf*-Mf-M

)&erational readiness

Table ,.,! O+erall Out$o%e Table

• !ring the a!dit the a!dit tea" "ay co"e across +ea$nesses in an 4-P

Ele"ent@ +hich have already ,een identified ,y the a!ditee in the self-assess"ent. n so"e of these cases the a!ditee "ay ,e a,le to clai" +or$-in-&rogressD ;=P< +hen the follo+ing criteria have ,een "et:

o Relevant iss!es and actions are identified and doc!"ented &rior to the

start of the a!dit.

o For these iss!es and actions an i"&le"entation &lan +as already in

&lace &rior to the start of the a!dit +ith "ilestones set and reso!rcesallocated together +ith evidence of i"&le"entation having ,eg!n.

o !ring the a!dit@ the follo+-!& &rocess +as fo!nd to ,e satisfactory@

ta$ing into acco!nt the trac$ record of the ,!siness in closing o!taction ite"s.

o 4 ris$ assess"ent had ,een cond!cted and interi" "itigations to

control the ris$ area +ere in &lace@ and dee"ed effective ,y the a!dittea".






Effective: May-12

o =here testing ,y the a!dit tea" &roves that the a,ove criteria can ,e

"et@ no s&ecific findings shall ,e raised for these iss!es in the a!ditre&ort. 3o+ever@ d!e reference +ill ,e "ade in the e5ec!tives!""ary of the a!dit re&ort as to the degree of reliance that +as&laced on the. !ch iss!es +ill also not have "aGor i"&acts on theo&inion. =here one of the a,ove criteria has not ,een "et@ reliance

cannot ,e &laced on the &rocess. 4nother finding +ill therefore ,eraised to ens!re that relevant actions are ta$en. The a!dit o&inion +illta$e s!ch a!dit findings into acco!nt.

• The draft a!dit re&ort shall !ndergo a &eer revie+ &rior to the disc!ssion +ith

the a!ditee.

• t is good &ractice to hold a no s!r&rises "eeting involving the a!ditee@ a!dit

coordinator and a!dit tea" leader to disc!ss the significant findings of thea!dit@ &rior to the for"al close-o!t "eeting.

#evel 2 a!dit close-o!t "eeting:

• The a!dit tea" +ill &resent the a!dit res!lts to the a!ditee and their

"anage"ent at the concl!sion of the a!dit. This closing "eeting or &resentation shall ,e cond!cted at the end of the a!dit or as &re-arranged,et+een the a!ditee and the 4!dit Tea" #eader. The &!r&ose of this "eetingis to for"ally co""!nicate the findings and the assess"ent of theacce&ta,ility of controls to the a!ditee and the "anage"ent tea" and toens!re clarity of !nderstanding. The findings@ associated classifications@ andacce&ta,ility of controls shall ,e considered HfroenI and only editorial changesallo+ed "ay ,e considered.

ss!e level 2 a!dit re&ort:

• =ithin seven ;< days of the a!dit concl!sion@ the 4!dit Tea" #eader shall

send a Hraft for Revie+I co&y of the a!dit re&ort to the 4!ditee. The 4!ditee+ill +or$ +ith his/her organisation to define the "ost a&&ro&riate +ay to

address the findings and reco""endations@ assign the action &arty anddeter"ine the &lanned co"&letion date. The 4!ditee shall have 1 days toco""ent and to co"&lete the H4ctionI@ H4ction PartyI and H!e ateI fields for each of the findings / reco""endations. The 4!dit Tea" #eader +ill revie+the actions and ti"ings &ro&osed ,y the site and +ill reA!est clarification if reA!ired to ens!re that actions do address the a!dit findings. =hen s!,stantialagree"ent has ,een reached on the contents of the re&ort@ the re&ort +ill,eco"e Final.

• =here agree"ent on findings or a&&ro&riate actions to address findings and/or

reco""endations cannot ,e reached@ the 4!dit Tea" #eader "ay disc!ss +iththe ne5t level of "anage"ent of the a!diteeDs ,!siness and agree a for+ard&lan to resolve the iss!e. n cases +here resol!tion ,et+een the a!ditor anda!ditee / a!diteeDs line "anage"ent cannot ,e reached@ they shall ,e

escalated to the 4-P Cha"&ion. f the dis&!ted area cannot ,e resolved@ the 4!dit Tea" #eader vie+ +ill &revail altho!gh the a!ditee +ill have the right toinsert a "anage"ent co""ent to &rovide his/her &oint of vie+ ;on thea&&ro&riateness of actions only<.

• )nce the re&ort is co"&leted@ it shall ,e distri,!ted as agreed +ith the a!ditee.

ss!e s!""ary re&ort of level 2 a!dits ;if reA!ired<:

• =hen "!lti&le level 2 a!dits have ,een cond!cted in the Co"&any d!ring the

year@ there is an o&&ort!nity to identify and re&ort on co""on iss!es ,et+eenthe assets. These co""on iss!es are generally for the attention of the 4-PEle"ent )+ners as the f!nctional /cor&orate o+ners of






Effective: May-12

3 5 "ana/e Level 2 Audit Action Items

Ens!re re"edial actions fro" the level 2 a!dit are &ro&erly addressed and that actionsta$en are doc!"ented:

• #evel 2 a!dit actions shall ,e co""!nicated and agreed +ith those e"&loyees

and contractors assigned the res&onsi,ility for closing the actions and therelevant Technical 4!thority res&onsi,le for a&&roving the clos!re.

• 4ll ite"s are to ,e assessed@ trac$ed and closed via the cor&orate a!dit

trac$ing syste"@ e.g. FM. )ther trac$ing arrange"ents "ay ,e !sed for lo+er &riority ite"s.

• The level 2 a!dit re&ort and doc!"ented resol!tion of actions shall ,e $e&t for

the life of the asset.

4&&rove the clos!re of actions relevant to 4-P Ele"ent.

• #evel 2 a!dit reco""endations are resolved ;closed< +hen they are

i"&le"ented@ or G!stifia,ly reGected.

•

The asset irector sho!ld "onitor the i"&le"entation of agreedactions/i"&rove"ents against erio!s findings.

• The )&erations Manager ;or eA!ivalent< sho!ld "onitor the i"&le"entation of

agreed actions/i"&rove"ents against 3igh findings.

• The elivery Tea" #eader ;or eA!ivalent< sho!ld "onitor the i"&le"entation

of agreed actions/i"&rove"ents against Medi!" findings.

• Clos!re state"ents shall &rovide adeA!ate infor"ation and evidence to verify

that action has ,een co"&leted.

4&&rove changes to re"edial actions@ d!e dates/action &arties.

• 4&&roval of any changes to ,e given in cons!ltation +ith the a&&ro&riate level

of a!thority@ i.e. asset irector for erio!s findingsB )&erations Manager for 3igh findingsB and elivery Tea" #eader for Medi!" findings.

• f an assigned action &arty changes roles &rior to co"&letion of the action@ the

action shall ,e reassigned to a ne+ action &arty ,y the 4!ditee.

• Changes to action ite" d!e dates reA!ire the a&&roval of the 4!ditee.

3 6 "ana/e the Assurance Process

• Maintain P) &rocesses and &roced!res for 4-P ass!rance.

• ee$ feed,ac$ on the ann!al ass!rance &rogra".

•

?erify the rigo!r of the PR &rocess and arrange &eriodic e5ternal&artici&ation.

32 Level 3 AI-PS Assurance

The R4C chart for level * 4-P ass!rance is sho+n in Ta,le *.2. !idance for thee5ec!tion of individ!al tas$s sho+n in the R4C chart is &rovided in ections *.2.1 to*.2..






Effective: May-12

R < Responsile

A < Accountale

S < Supports

C < Consulted

I < In4ormed A I - P S A s s u r a n

c e , l e m e n t O 5 n e r

A I - P S , l e

m e n t O 5 n e r s

O p e r a t i o

n s " a n a / e r s

D 1 L o r

e > u i v a l e n t

A I P S A L 1 P S , l e m e n t C h a m p i o n s

L e v e l 3 A u d i t o r

as)

1$ Initiate the level 3 assurance

1.1 Esta,lish and "aintain a ris$-,ased level * 4-Pass!rance &lan. A R C

2$ ,:ecute the level 3 assurance

2.1 Cond!ct level * a!dit. A R

3$ "ana/e level 3 assurance action items

*.1 Ens!re re"edial actions fro" the level * a!ditare &ro&erly addressed and that actions ta$enare doc!"ented.

A

*.2 4&&rove the clos!re of actions relevant to 4-PEle"ent. A R

$ "ana/e the assurance process

.1 Maintain P) &rocesses and &roced!res for 4-P ass!rance. A R C

Ma&&ing roles in the R4C against &ositions in the organisation:

• 4-P 4ss!rance Ele"ent )+ner: The )+ner of this &roced!re.

• 4-P Ele"ent )+ners: Cor&orate or f!nctional o+ners of individ!al Ele"ents

as identified in '-8.

3 2 Initiate the Level 3 Assurance

Esta,lish and "aintain a ris$-,ased level * 4-P ass!rance &lan.

• ss!e an ann!al level * 4-P ass!rance &lan. ain )&erations Manager

endorse"ent.

• The sched!le of the level * ass!rance shall ,e ris$-,ased and sho!ld ,e

incl!ded in the asset 3E ,!siness &lan. 4n e5a"&le level * 4-P ass!rance

&lan is sho+n in 4&&endi5 *.• #evel * 4-P ass!rance is "anaged and reso!rced ,y the 4P4#T. The

ass!rance of each ele"ent is coordinated ,y an asset Process afety Ele"entCha"&ion ;PEC<. Co"&liance +ith the level * 4-P ass!rance &lan sho!ld,e "onitored ,y the 4P4#T.

3 2 2 ,:ecute the Level 3 Assurance

• Cond!ct level * a!dit.






Effective: May-12

3 2 3 "ana/e Level 3 Assurance Action Items

Ens!re re"edial actions fro" the level * a!dit are &ro&erly addressed and that actionsta$en are doc!"ented.

• The res!lts of level * ass!rance shall ,e s!""arised and re&orted to the

4P4#T.

• The 4P4#T shall trac$ actions res!lting fro" level * ass!rance.

4&&rove the clos!re of actions relevant to 4-P Ele"ent.

• #evel * a!dit actions are resolved ;closed< +hen they are i"&le"ented@ or

G!stifia,ly reGected.

• Close-o!t of actions to ,e a&&roved ,y the Process afety Ele"ent Cha"&ion.

3 2 4 "ana/e the Assurance Process

• Maintain P) &rocesses and &roced!res for 4-P ass!rance.






Effective: May-12

Appeni, 1 - Level 2 AI-PS Auit Terms o# Re#erenceTemplate

erms o4 Re4erence

Cross-Directorate Process Sa4et# Audit o4 Asset+PDO Level 2 AI-PS Audit.

4!dit Ref J KKK

&onsor (4ME )6 TT#E REF (

4!ditee (4ME )6 TT#E REF (

Facility 4!ditCoordinator

(4ME )6 TT#E REF (

4-P Cha"&ion (4ME )6 TT#E REF (

4-P 4ss!ranceEle"ent )+ner

(4ME )6 TT#E REF (

4!dit Tea" #eader (4ME )6 TT#E REF (

4!dit Tea" (4ME )6 TT#E REF (

(4ME )6 TT#E REF (

(4ME )6 TT#E REF (

(4ME )6 TT#E REF (

Peer Revie+er (4ME )6 TT#E REF (

#ocations to ,ecovered

KKK

Period of a!dit MMM LLLL to MMM LLLL

ate iss!ed Rev KKK: MMM LLLL

O@ectives

The o,Gectives of the a!dit are:

• To assess the adeA!acy effectiveness of the i"&le"entation of 4-P

reA!ire"ents.

• =here +ea$nesses are identified@ to &rovide reco""endations and g!idance

on +hat is e5&ected and needed to de"onstrate adherence to P)Ds 4-PreA!ire"ents and !sing e5a"&les of P) and e5ternal i"&le"entation ase5a"&les of good &ractice.

Scope

The sco&e incl!des all &rocess facilities activities !nder the o&erational control of KKK asset as descri,ed in its )&erations 3E Case incl!des interfaces +ith other ,!siness activities@ contractors &roGects.

(ot every as&ect at each facility +ill ,e a!dited@ as the cross-directorate a!dit is Hris$-,asedI. #ocations@ +hich are to ,e sa"&led@ incl!de KKK offices in M!scat@ KKKoffices in the interior and KKK facility.






Effective: May-12

&ecific foc!s areas have ,een defined for the 4-P #2 cross-directorate a!dit inLE4R@ altho!gh these "ay not ,e e5ha!stive:

Ele"ent KKK EF(T)( )F E#EME(T C)PE



Standards

The a!dit +ill ,e carried o!t against the follo+ing standards:

1. P)Ds 3E Co""it"ent and PolicyB

2. )"anDs la+s and reg!lationsB

*. P)Ds Cor&orate Manage"ent Fra"e+or$B

. P)Ds 4-P 4ss!rance Proced!re ;PR-112< and 4-P Ele"ent !ides '-8<.

Costs

The "o,ilisation and "an&o+er costs for e5ternal tea" "e",ers +ill ,e allocated tothe central 4-P M!st =in acco!nt.

Schedule

The a!dit ta$es &lace d!ring the &eriod fro" MMM LLLL to MMM LLLL.

4 &ro&osed sched!le containing detail on the &ro&osed site field+or$ and intervie+ees+ill ,e sent and agreed se&arately. The a!ditee +ill s!,"it the organisational chartand general site &rocesses descri&tions to the 4!dit Tea" #eader to allo+ for thesched!le to ,e "ade s&ecific to the a!diteeDs organisation as detailed in their latest)&erations 3E Case.

The asset shall finalise and agree the draft sched!le t+o ;2< +ee$s &rior to the a!dit.!ring the e5ec!tion of the a!dit the 4!dit Tea" #eader "ay reA!est to "odify thesched!le to acco""odate additional intervie+s or sa"&le locations.

ntervie+s shall generally ,e cond!cted in the +or$&lace of the intervie+ee ;e.g.offices of "anage"ent@ +or$sho&s of "aintenance &ersons@ control roo"s of o&erations &ersons@ etc.<. 4rrange"ents shall ,e reA!ested for detailed ins&ections of facilities consisting of H+al$-thro!ghI of o&erating areas ;to ,e deter"ined<.

The res!lts of the "ost recent self-assess"ent against the level 2 4-P &rotocolsshall ,e &rovided ,y the Facility 4!dit Coordinator to the 4!dit Tea" #eader one ;1<+or$ing +ee$ ,efore the start of the a!dit ;for 4-P Ele"ents in sco&e of this a!dit<.

The asset shall &rovide the necessary &ersonal &rotective eA!i&"ent ;PPE<@ incl!dinghard hats@ hearing &rotection@ safety glasses@ &ersonal 32 gas "onitors and esca&e

sets@ +here reA!ired.






Effective: May-12

The sched!le +ill incl!de adeA!ate ti"e set aside for the a!dit tea" at the facility for clarification and draft re&ort +riting.

,vent Date

Co"&lete the self-assess"ent against the level 2 4-P&rotocols.

MMM LLLL

Finalise sched!le of a!dit +ith 4!dit #ead. MMM LLLL

ss!e of &re-read. MMM LLLL

4!dit tea" ,riefing on ToR@ a!dit "ethodology and re&orting. MMM LLLL

)&ening "eeting. #ead 4!ditor and Facility 4!dit Coordinator &resentations.

MMM LLLL

M!scat office intervie+s. MMM LLLL

4!dit tea" travels to interior ;F#3T / #)TC ET4#<. MMM LLLL

nterior intervie+s. MMM LLLL

Field +or$. MMM LLLLraft a!dit findings and interior feed,ac$. MMM LLLL

4!dit tea" travels to M!scat ;F#3T / #)TC ET4#<. MMM LLLL

Peer revie+. MMM LLLL

Revie+ agreed findings +ith Facility 4!dit Coordinator and 4!ditee.

MMM LLLL

Close-o!t "eeting. MMM LLLL

raft re&ort iss!ed to a!ditee. MMM LLLL

Res&onses fro" a!ditee to ,e ret!rned to a!dit tea". MMM LLLL

Final re&ort iss!ed. MMM LLLL

"ethodolo/#

The a!dit +ill ,e cond!cted !sing the P) 3E 4!dit "ethodology s!""aried,elo+. Findings shall ,e classified and the i"&le"entation of 4-P Ele"entsassessed in accordance +ith the criteria sho+n ,elo+.

To facilitate the efficient and effective e5ec!tion of the a!dit@ it is reA!ired that the self-assess"ent against the level 2 4-P &rotocols@ Plant )&erating Man!al and)&erations 3E Case shall ,e for+arded or "ade accessi,le to 4!dit Tea" #eader atleast one ;1< +ee$ &rior to the a!dit ;can ,e in electronic for"@ via +e,site / #ive#in$access or hard co&y<. This +ill allo+ a revie+ of the a!diteeDs arrange"ents and

ena,le set-!& of the a!dit to ens!re foc!s on the areas li$ely to re&resent the highestris$ to the ,!siness. The list of reA!ired doc!"ents is incl!ded later in these Ter"s of Reference.

The "ethodology +ill !se a Hris$-,asedI a&&roach and a general a!diting a&&roach inline +ith good ind!stry &ractice. Tea" "e",ers +ill gather infor"ation ,y f ieldo,servation@ thro!gh intervie+s and incl!ding chec$s of hard+are and doc!"entation. 4!dit evidence +ill ,e ,ased !&on sa"&ling of the availa,le infor"ation and thereforesho!ld not ,e considered all-incl!sive or e5ha!stive. Conscientio!s efforts +ill ,e"ade to verify findings and to confir" the validity of reco""ended actions. =here G!dg"ent is reA!ired@ the res!lt +ill ,e deter"ined ,y consens!s +ithin the a!dit tea".






Effective: May-12

Audit indin/s Classi4ication

Classification of the a!dit findings shall ,e in accordance +ith the Rating #evel ta,le.

4ll findings are to ,e classified ,ased !&on the &rofessional G!dg"ent of the a!dittea". The &ri"ary criterion for rating each finding is the adeA!acy of the control for the ris$ against the e5&ectation set in the relevant P) 4-P Ele"ent !ides ;'-

8<.

0ea)ness Level De4inition

erio!s ;< The finding is li$ely to ca!se a high !ndesira,le effect on theachieve"ent of P)Ds o,Gectives@ therefore +arrantingi""ediate re&orting to senior "anage"ent e.g. 4 level.

3igh ;3< The finding is li$ely to ca!se a high !ndesira,le effect on theachieve"ent of one of P)Ds o,Gectives@ +arranting re&orting tothe a!diteeDs "anage"ent.

Medi!" ;M< The finding is li$ely to ca!se a "eas!ra,le !ndesira,le effect onthe achieve"ent of one of P)Ds o,Gectives.

#o+ ;#< The +ea$ness is !nli$ely to have a "eas!ra,le i"&act on P)Dso,Gectives@ ,!t its correction +o!ld enhance the ris$ ,asedcontrol fra"e+or$.

Overall Assessment o4 AI-PS ,lements and Audit Ratin/

(o a!dit o&inion +ill ,e &rovided. 4ssess"ents of the i"&le"entation of the 4-PEle"ents in line +ith the P) 4-P Ele"ent !ides ;'-8< +ill ,e indicated ,yreference to three &ossi,le categories:

Controls Acceptale

(one@ or a fe+ #o+ and/or Medi!" rated findings are re&orted +hich indicate

that a Honce-offI rather than &rocess or syste" str!ct!ral +ea$nesses is &resentor that general enhance"ent of the controls@ &rocess@ or syste" fra"e+or$ is notneeded ;note: fe+ N 2 or less<.

Controls &eed Improvement

o"e Medi!" and / or one or "ore 3igh rated findings are re&orted +hichindicate a +ea$ness in $ey controls / ,arriers or in a &art of the &rocess or syste" str!ct!ral fra"e+or$ ;note: so"e N * or "ore<.

Controls &eed "a@or Improvement

Three or "ore 3igh and/or one or "ore erio!s rated findings are re&ortedindicating fail!res in $ey controls / ,arriers or across a significant &art of the&rocess or syste" str!ct!ral fra"e+or$.

4 f!rther A!alitative descri&tion +ill ,e &rovided as &art of the !""ary andConcl!sions@ to s!""arise the overall o!tco"e and highlighting the 4-P Ele"ents+here findings are identified. This +ill incl!de a ta,le that de&icts a reference to eachfinding and the control acce&ta,ility assess"ent for each 4-P Ele"ent.

Page 2* PR-1712 - 'AI-PS Assurance' Procedure Printed 11/01/12





Effective: May-12

!ring the a!dit the a!dit tea" "ay co"e across +ea$nesses in an 4-P Ele"ent@+hich have already ,een identified ,y the a!ditee in the self-assess"ent. n so"e of these cases the a!ditee "ay ,e a,le to clai" +or$-in-&rogressD ;=P< +hen thefollo+ing criteria have ,een "et:

• Relevant iss!es and actions are identified and doc!"ented &rior to the start of

the a!dit.

• For these iss!es and actions an i"&le"entation &lan +as already in &lace

&rior to the start of the a!dit +ith "ilestones set and reso!rces allocatedtogether +ith evidence of i"&le"entation having ,eg!n.

• !ring the a!dit@ the follo+-!& &rocess +as fo!nd to ,e satisfactory@ ta$ing

into acco!nt the trac$ record of the ,!siness in closing o!t action ite"s.

• nteri" "itigations to control the ris$ area are in &lace@ and dee"ed effective

,y the a!dit tea".

=here testing ,y the a!dit tea" &roves that the a,ove criteria can ,e "et@ reliancecan ,e &laced on the e5isting &rocess. (o s&ecific findings shall ,e raised for theseiss!es in the a!dit re&ort@ ho+ever@ d!e reference +ill ,e "ade in the e5ec!tive

s!""ary of the a!dit re&ort as to the degree of reliance that +as &laced on the. !chiss!es +ill also not have "aGor i"&acts on the o&inion. =here one of the a,ovecriteria has not ,een "et@ reliance cannot ,e &laced on the &rocess. 4nother finding+ill therefore ,e raised to ens!re that relevant actions are ta$en. The a!dit o&inion+ill ta$e s!ch a!dit f indings into acco!nt.

Report

The draft a!dit re&ort shall !ndergo a &eer revie+ &rior to the disc!ssion +ith thea!ditee.

The tea" +ill &resent the a!dit res!lts to the a!ditee and their "anage"ent at theconcl!sion of the a!dit. This closing "eeting or &resentation shall ,e cond!cted at theend of the a!dit or as &re-arranged ,et+een the a!ditee and the 4!dit Tea" #eader.

The &!r&ose of this "eeting is to for"ally co""!nicate the findings and theassess"ent of the acce&ta,ility of controls to the a!ditee and the "anage"ent tea"and to ens!re clarity of !nderstanding. The findings@ associated classifications@ andacce&ta,ility of controls shall ,e considered HfroenI and only editorial changesallo+ed "ay ,e considered. The 4!dit Tea" #eader "ay also ,e as$ed ,y thea!ditee to &resent the a!dit res!lts to +ider a!dience.

=ithin seven ;< days of the a!dit concl!sion@ the 4!dit Tea" #eader shall send aHraft for Revie+I co&y of the a!dit re&ort to the 4!ditee. The 4!ditee +ill +or$ +ithhis/her organisation to define the "ost a&&ro&riate +ay to address the findings andreco""endations@ assign the action &arty and deter"ine the &lanned co"&letiondate. The 4!ditee shall have 1 days to co""ent and to co"&lete the H4ctionI@H4ction PartyI and H!e ateI fields for each of the findings / reco""endations. The 4!dit Tea" #eader +ill revie+ the actions and ti"ings &ro&osed ,y the site and +ill

reA!est clarification if reA!ired to ens!re that actions do address the a!dit findings.=hen s!,stantial agree"ent has ,een reached on the contents of the re&ort@ there&ort +ill ,eco"e Final.

=here agree"ent on findings or a&&ro&riate actions to address findings and/or reco""endations cannot ,e reached@ the 4!dit Tea" #eader "ay disc!ss +ith thene5t level of "anage"ent of the a!diteeDs ,!siness and agree a for+ard &lan toresolve the iss!e. n cases +here resol!tion ,et+een the a!ditor and a!ditee /a!diteeDs line "anage"ent cannot ,e reached@ they shall ,e escalated to 'E). f the dis&!ted area cannot ,e resolved@ the 4!dit Tea" #eader vie+ +ill &revailaltho!gh the a!ditee +ill have the right to insert a "anage"ent co""ent to &rovidehis/her &oint of vie+ ;on the a&&ro&riateness of actions only<.






Effective: May-12

)nce the re&ort is co"&leted@ it shall ,e distri,!ted as agreed +ith the a!ditee assho+n in these Ter"s of Reference. The Facility 4!dit Coordinator +ill in&!t theaction ite"s in Fo!ntain MP4CT and "onitor for co"&letion ,y the action &arties andre&ort to P) T.

Lo/istics

The a!ditee shall &rovide the follo+ing facilities:

• The necessary &ersonal &rotective eA!i&"ent ;PPE< > reA!est +ill ,e

s!,"itted ,y 4!dit #eader.

• T a!thoriation for a!dit tea" to access local data files.

• 4 loc$a,le office +ith s!fficient s&ace@ des$/ta,le area@ and chairs for the a!dit

tea" and s!fficient +all s&ace to dis&lay several fli&charts.

• Fli& chart holder +ith &a&er@ in$ "ar$ers@ and *M ty&e H&ost-itI or Hstic$y

&adsI.

• 4 sta&ler +ith sta&les@ ta&e ;scotch and "as$ing<.

• Co"&!ter connection to electronic syste" +hich doc!"ents are stored ;e.g.@local intranet@ shared folders<.

• Co"&!ter &roGector ;H,ea"erI<.

• Tele&hone service.

• 4t least t+o internet connections via server.

• 4ccess to syste" &rinters ;&rovide &rinter n!",er<@ co&y "achine@ and fa5

"achine.

• Per"ission and &er"it ;incl!ding gas testing as reA!ired< to ta$e &hotogra&hs

on site ;i.e. &ri"arily d!ring the site visit<.

AI-PS Documentation Re>uest

The follo+ing doc!"entation ;&refera,le electronic co&y or +e, site / #ive#in$ area<shall ,e &rovided to the 4!dit Tea" #eader at least one ;1< +ee$ &rior to the start of the a!dit. These doc!"ents +ill ,e revie+ed in order to &rioritise the a!dit on areas of highest ris$.

1. elf-assess"ent against the level 2 4-P &rotocolsB

2. Plant )&erating Man!alB and

*. )&erations 3E Case

4dditional doc!"entation "ay ,e reA!ested d!ring the a!dit &rocess incl!ding P)&roced!res and asset ,!siness records relevant to the 4-P self-assess"ent.






Effective: May-12

Appeni, 2 - Auit /or0in& Paper %,ample

EL R C)(TR)# 4RE4/C)MP)(E(T: E"ergency Pre&aredness and Res&onse

R 64E C)(TR)#;s< / 4-P EKPECT4T)(

CP 122-2.7t is P)Ds res&onsi,ility to ens!re those &lans@ &roced!res and reso!rces are in &laceto res&ond s+iftly and efficiently to any e"ergency sit!ation and to "ini"ise anyconseA!ential losses.

T4T' )F C)(TR)# ;O/-<

),servations ;c!rrent controls in &lace<:

• t +as o,served that the Contractors "ain office +ell laid o!t +ith s!ita,le +or$

stations@ infor"ation ,oards and co""s syste"s in &lace. Chec$list for each $eyrole o,served.

• t +as re&orted that oil s&ills e5ercises tier 1@ 2 and * +ere &erfor"ed as &er

M)4.• t +as o,served d!ring a visit to the t!g ,oats that ER "!sters and drill have ,een

carried o!t@ evidence in the register and ca&tains log. 4n e5ercise +as carried o!ton ,oard to a satisfactory nat!re.

• 4t the Po+er tation@ the e"ergency contact n!",er +as last !&dated 2*/2/2011.

• 4,sor,ent is availa,le in la,oratory to clean-!& s&ills.

• ER drill +as "anaged +ith the "ain Contractor. a+ record for (ove",er 2011-

Fe, 2012. a& identified +as in&!t into a single action trac$er "anaged ,yContractor.

• ood ho!se$ee&ing at the Po+er Plant ProGect ite +ith clear indication of

e"ergency esca&e ro!tes.

),servations ;ga&s in controls<:

• ),servations on ER in la,oratory at ite: 32 alar" syste" last cali,rated in

1//2009 +ith d!e date &asted on the &anel as 11/1/10. (o record availa,le after that. )ne detector ;32 detector J7< +as at fa!lt ,!t no sche"atic to identify theaffected detector in the la,. (o record availa,le for last alar" testing for the 32 4lar". (o drill done +rt 32 release and therefore@ +hether the 32 alar" +hichis located o!tside the * la,s ;)il@ =ater@ Ce"ent< can ,e heard ,y staff +or$ing inla, is !n$no+n.

• #a, at ite. !ring the visit@ co!ld not locate s&ill recovery $it.

• The la, is located +ithin the overall office ,!ilding. The drill is therefore together

+ith the office ,!ilding +hich is "ainly evac!ation drill. (o record of &revio!s la,e"ergency drill +ith scenario on la, che"ical fire etc.

• T+o 32 "onitors !sed ,y the la, staff at ite +ere o!tside their cali,ration

&eriod ;e.g. detector no. 00 e5&ired 2*//2010<. (o register of 32 "onitor cali,ration records co!ld ,e fo!nd.

• eneral a+areness level of la, staff at ite +as inconsistent e.g. no detailed

$no+ledge of 32 levels fo!nd at different sites@ reA!ire"ents for !se of 64 sets@esca&e sets@ ,!ddy syste".

• Fire e5ting!ishers at the Po+er tation overd!e their ins&ection date - d!e

an!ary 2011.• Fire e5ting!isher ins&ection freA!ency at ite is "onths +hile in the freA!ency






Effective: May-12

other ites is every * "onths.

• "o$e detectors installed in the offices !sed ,y the Po+er tation ProGects did not

+or$.

P)TE(T4# F((

There are ga&s in the &re&aredness to res&ond in case of e"ergencies at the la,.There are also i"&rove"ents for fire eA!i&"ent "aintenance. This +as evidenced ,y

• )verd!e cali,ration of 32 "onitors and alar"s in the la,

• #ac$ of s&ill recovery $it in la,

• E"ergency drills not covering relevant &otential scenarios for the la,

• nconsistent identification of ins&ection dates of &orta,le fire e5ting!isher

"aintenance

• "o$e detectors in Contractor office not +or$ing.

egree of +ea$ness / "ateriality of fla+ in control :

s control co"&letely "issing or is fla+ed to e5tent that it is effectively not f!nctioningQ(o

s a control in &lace ,!t has a "aterial fla+Q Control is in &lace@ ,!t ga&s e5ist.

s there a ga& li$ely to have a "eas!ra,le !ndesira,le i"&act on the achieve"ent of one of the entityDs 3E o,Gectives and therefore +arrants re"edial actions to ,e ta$en.

Rating: ME'M

Cross checks:To )hat sort of incident could such a -ap in controls lead e,-, has a material fla) inapplication of M+C for or-ani.ation pla(ed a ke( contributor( role in prior incident!s'that could be classified in the "AM /ello) or "AM "ed cate-ories0

+r 1hat does the auditees risk re-ister rank as0

2oes such a control -ap )arrant remedial actions to be taken in a short term timeframe )ith oversi-ht of the follo)#up of these actions at the level of BusinessLeadership Team !i,e, M2C level'0

MP#C4T)(;<

#a,oratories "ay not detect and res&ond to e"ergencies to "a$e ti"ely res&onse if the detectors@ alar"s are not in good cali,ration/ "aintenance.

Conf!sion in fire e5ting!ishers ins&ection stat!s "ay leave the res&onse.

REC)MME(4T)(;<

1. dentify safety critical ele"ents incl!ding detectors and alar"s in the la,oratoryand incl!de in 4P for "aintenance and "onitoring.

2. Evolve &roced!re for ins&ection@ "aintenance and identification of ins&ectionstat!s tagging of &orta,le fire e5ting!ishers.






Effective: May-12

Appeni, - Level Assurance Plan %,ample

Ele"ent PEC an Fe, Mar 4&r May !n !l 4!g e& )ct (ov ec

2 )E1( 1 1 1 1

))22( 2 2 2 2

))1( * *

8 ))22( 7 7 7 7

9 ))1(

10 ))(

11 )ET( 8 9 8 9

1* ))( 10 10 10 10

17 ))1( 11 11 11 11

(otes to sched!le:

1. Engineering T4-2 revie+ of an engineering "odification.

2. a"&le chec$ of critical dra+ings for a single &rocess !nit@ e.g. PEF@ haardo!s areadra+ings@ ca!se effects@ fire gas ca!ses effects@ area layo!ts@ etc.

*. a"&le chec$ of co"&leted H&rod!ctionI ris$ assess"ents ;R4<@ e.g. Go, 3E &lansattached to &er"its@ R4 s!&&orting te"&orary override of safeg!arding syste"s@ etc.

. a"&le chec$ of co"&leted H"aintenanceI R4s in FR.

7. a"&le chec$ of a cha&ter fro" a Plant )&erating Man!al.

. #evel * PT= a!dit.

. 3ard+are 6arrier ?erification of a single ,arrier.

8. #evel * a!dit of EMC contractor.9. #evel * a!dit of )C contractor.

10. Revie+ of a co"&leted FCP.

11. #evel * Cond!ct of )&erations a!dit ;To& 10 Proced!res<.






Effective: May-12

Appeni, ( - Typical Level % Production Operation &unction'udit.

Level 3 Audit erms o4 Re4erence

The 4!dit Ter"s of Reference ;ToR< shall ,e !sed in the initial stages of the 4!dit &lanning too!tline to the &ro&osed 4!ditee;s< the sco&e and str!ct!re of the a!dit.

'udit Terms of(eference

Level 3 Audit 0or)oo)

The #evel * 4!dit =or$,oo$ ;E5cel< is &rovided to ena,le the a!dit chec$lists and res!lts to ,e"aintained in one location. The +or$,oo$ is &rovided +ith a Title sheet and e5a"&les of thet+o for"ats that are reA!ired to ,e !sed. The +or$,oo$ shall contain all the ele"ents of thea!dit to &rovide one doc!"ent.

Level % 'udit)or*!oo*

Level 3 Audit Report

The 4!dit Re&ort shall ,e !sed to relay ,ac$ the findings@ concl!sions and reco""endations of the a!dit to the a!ditee;s< and follo+-!& coordinators.

'udit (eport






Effective: May-12

Appeni, - Process Sa#et$ 'ana&ement 3rame4or0

The Center for Che"ical Process afety ;CCP< develo&ed a Ris$ 6ased Processafety fra"e+or$. The fra"e+or$ +as organised into fo!r &illars@ +hich +ere f!rther "ade !& of t+enty ele"ents. This a&&endi5 &rovides a s!""ary of the e5&ectations

set ,y the CCP !idelines for Ris$ 6ased Process afety. The e5&ectations "ay ,e!sef!l for a level 1 a!dit of P) 4-P "anage"ent. The Co"&any has develo&edg!idelines for each of these ele"ents that translate the CCP g!idelines intoreA!ire"ents in the P) Cor&orate Manage"ent Fra"e+or$. The P) g!idelines for 4-P are contained in '-8.

Commit to Process Sa4et#

To co""it to &rocess safety@ facilities sho!ld foc!s on:

• evelo&ing and s!staining a c!lt!re that e",races &rocess safety

• dentifying@ !nderstanding and co"&lying +ith codes@ standards@ reg!lations@

and la+s

•

Esta,lishing and contin!ally enhancing organiational co"&etence• oliciting in&!t fro" and cons!lting +ith all sta$eholders@ incl!ding e"&loyees@

contractors@ and neigh,o!rs

1 Process Sa4et# Culture

Process safety c!lt!re is defined as the co",ination of gro!& val!es and ,ehavio!rsthat deter"ine the "anner in +hich &rocess safety is "anaged.

Maintain a de&enda,le &ractice:

• Esta,lish Process afety as a core val!e

• Provide strong leadershi&

• Esta,lish and enforce high standards of &erfor"ance

• oc!"ent the &rocess safety e"&hasis and a&&roach

evelo& and i"&le"ent a so!nd c!lt!re:

• Maintain a sense of v!lnera,ility

• E"&o+er individ!als to s!ccessf!lly f!lfil their safety res&onsi,ilities

• efer to e5&ertise

• Ens!re o&en and effective co""!nications

• Esta,lish a A!estioning / learning environ"ent

• Foster "!t!al tr!st

• Provide ti"ely res&onse to &rocess safety iss!es and concerns

Monitor and g!ide the c!lt!re:

• Provide contin!o!s "onitoring of &erfor"ance

2 Compliance 5ith Standards

The standards syste" addresses ,oth internal and e5ternal standardsB national andinternational codes and standardsB and local@ state@ and federal reg!lations and la+s.The syste" "a$es this infor"ation easily and A!ic$ly accessi,le to &otential !sers.

Page *0 PR-1712 - 'AI-PS Assurance' Procedure Printed 11/01/12





Effective: May-12


• Ens!re consistent i"&le"entation of the standards syste"

• dentify +hen standards co"&liance is needed

• nvolve co"&etent &ersonnel

• Ens!re that standards co"&liance &ractices re"ain effective

Cond!ct co"&liance +or$ activities:

• Provide a&&ro&riate in&!ts to standards activities

• Cond!ct co"&liance ass!rance activities

• eter"ine co"&liance stat!s &eriodically as reA!ired and &rovide a stat!s

re&ort to "anage"ent

• Revie+ the a&&lica,ility of standards as ne+ infor"ation or changes arise

Follo+ thro!gh on decisions@ actions and !se of co"&liance res!lts

• '&date co"&liance doc!"ents and re&orts as needed

• Co""!nicate confor"ance or s!,"it co"&liance ass!rance records to the

a&&ro&riate e5ternal entity

• Maintain ele"ent +or$ records

3 Process Sa4et# Competenc#

evelo&ing and "aintaining &rocess safety co"&etency enco"&asses threeinterrelated actions: ;1< contin!o!sly i"&roving $no+ledge and co"&etency@ ;2<ens!ring that a&&ro&riate infor"ation is availa,le to &eo&le +ho need it@ and ;*<consistently a&&lying +hat has ,een learned.


• Esta,lish o,Gectives

• 4&&oint a chair"an

• dentify corollary ,enefits

• Pro"ote a learning organiation

E5ec!te activities that hel& "aintain and enhance &rocess safety co"&etency

• 4&&oint technology ste+ards

• oc!"ent $no+ledge

• Ens!re that infor"ation is accessi,le

• Provide str!ct!re

• P!sh $no+ledge to a&&ro&riate &ersonnel

• 4&&ly $no+ledge

• '&date infor"ation

• Pro"ote &erson-to-&erson contact

• Plan &ersonal transitions

• olicit $no+ledge fro" e5ternal so!rces






Effective: May-12

Eval!ate and share res!lts

• Eval!ate the !tility of e5isting efforts

• olicit needs fro" o&erating !nits

0or)4orce Involvement

=or$force involve"ent &rovides a syste" for ena,ling the active &artici&ation of co"&any and contractor +or$ers in the design@ develo&"ent@ i"&le"entation@ andcontin!o!s i"&rove"ent of the R6P "anage"ent syste".


• evelo& the ,asic fra"e+or$ or standards for the +or$force &artici&ation &lan

at the cor&orate level

• efine@ s!,Gect to ris$-,ased considerations@ classes of iss!es that can ,e

resolved ,y +or$ers +itho!t "anage"ent involve"ent

• Provide for s!,stantive +or$force &artici&ation in the creation or revision of

safety &olicies and &roced!res@ and the esta,lish"ent of safety goals and

&lans

• Create &ositions for safety cha"&ions@ staffed ,y +or$force vol!nteers@ to

serve in an advisory and "entoring role

• Provide training on haard identification and ,asic ris$ assess"ent &rinci&les

to all o&erators and "aintenance &ersonnel

Cond!ct +or$ activities:

• nstit!te a +or$er Go, safety o,servation &rogra"

• "&le"ent a s!ggestion s!,"ission and res&onse &rogra" inde&endent of any

&artic!lar R6P ele"ent

• ncl!de &ersonnel fro" all levels of the organiation in a reg!larly sched!led&rogra" of f ield safety and ho!se$ee&ing ins&ections

• "&le"ent a &rogra" of infor"al +hat-if e5ercises@ s!ch as ta,le to& drills@ as

&art of the &rocess safety training &rogra"

• Cond!ct an ann!al &rocess technology or &rocess safety school develo&ed and

ta!ght +ith significant +or$force involve"ent

• nstit!te a for"al "entoring &rogra" in +hich senior@ e5&erienced +or$ers

assist in the develo&"ent of less e5&erienced &ersonnel

• 4ssign e5&erienced o&erators and "aintenance &ersonnel to &roGect design

tea"s

• Cond!ct &eriodic offsite "eetings@ d!ring +hich +or$ers fro" all levelscolla,oratively identify &otential o&&ort!nities for syste" i"&rove"ents

• 'se a +e,-,ased electronic s!rvey to collect feed,ac$ fro" "an!fact!ring and

research facilities

• =hen co""!nicating safety "essages or safety &olicies@ incl!de a convenient

+ay for the reader to &rovide feed,ac$

• For" f!nctional tea"s for relevant Ris$ 6ased Process afety ;R6P<

ele"ents@ +ith +or$er re&resentation fro" all levels

• Reassign selected +or$ers fro" their nor"al d!ties and dedicate the" to

acco"&lishing a $ey R6P tas$

• 6!dget ti"e into +or$ sched!les to allo+ +or$force "e",ers to f!lfil

for"alied +or$force involve"ent activities






Effective: May-12

• Esta,lish and adhere to sched!les for senior staff to s&end ti"e in +or$ areas

• 'se a A!ality circle a&&roach to addressing R6P "anage"ent syste"

&ro,le"s

• Esta,lish inter-facility net+or$s to address co""on iss!es

• trive to "otivate a ,road range of &artici&ation

Monitor the syste" for effectiveness

• nvolve the +or$force in identifying s!ita,le R6P "etrics and in "onitoring

and co""!nicating this infor"ation to "anage"ent

• Maintain a!dita,le records doc!"enting +or$force involve"ent activities

• Cond!ct &eriodic s!rveys to "onitor +or$er attit!des and to solicit in&!ts

6 Sta)eholder Outreach

ta$eholder o!treach is a &rocess for ;1< see$ing o!t individ!als or organiations thatcan ,e or ,elieve they can ,e affected ,y co"&any o&erations and engaging the" in a

dialog!e a,o!t &rocess safety@ ;2< esta,lishing a relationshi& +ith co""!nityorganiations@ other co"&anies and &rofessional gro!&s@ and local@ state@ and federala!thorities@ and ;*< &roviding acc!rate infor"ation a,o!t the co"&any and facilityDs&rod!cts@ &rocesses@ &lans@ haards@ and ris$s.


• +nsure consistent implementation

• Involve competent personnel

• eep practices e-ective

dentify co""!nication and o!treach needs:

• Identify relevant sta*eholders

• Dene appropriate scope

Cond!ct co""!nication / o!treach activities:

• Identify appropriate communication pathways

• Develop appropriate communication pathways

• Develop appropriate communication tools

• Share appropriate information

• /aintain e0ternal relationship

Follo+ thro!gh on co""it"ents and actions:

• Follo+ !& co""it"ents to sta$eholders and receive feed,ac$

• hare sta$eholder concerns +ith "anage"ent

• oc!"ent o!treach enco!nters

nderstand %a8ards and Ris)

To !nderstand haards and ris$@ facilities sho!ld foc!s on:

• Collecting@ doc!"enting@ and "aintaining &rocess safety $no+ledge

• Cond!cting haard identification and ris$ analysis st!dies

Page ** PR-1712 - 'AI-PS Assurance' Procedure Printed 11/01/12





Effective: May-12

? Process Bno5led/e "ana/ement

The $no+ledge ele"ent &ri"arily foc!ses on infor"ation that can easily ,e recorded indoc!"ents@ s!ch as ;1< +ritten technical doc!"ents and s&ecifications@ ;2< engineeringdra+ings and calc!lations@ ;*< s&ecifications for design@ fa,rication@ and installation of &rocess eA!i&"ent@ and ;< other +ritten doc!"ents s!ch as "aterial safety data

sheets ;Ms<.Maintain a de&enda,le &ractice:

• Ens!re consistent i"&le"entation

• efine the sco&e

• Thoro!ghly doc!"ent che"ical reactivity and inco"&ati,ility haards

Catalog!e &rocess $no+ledge in a "anner that facilitates retrieval:

• Ma$e infor"ation availa,le and &rovide str!ct!re

• Protect $no+ledge fro" inadvertent loss

•

tore calc!lations@ design data@ and si"ilar infor"ation in central files

• oc!"ent infor"ation in a !ser-friendly "anner

Protect and !&date &rocess $no+ledge:

• Control or li"it access to o!t-of-date doc!"ents

• Ens!re acc!racy

• Protect against inadvertent change

• Protect against &hysical ;or electronic< re"oval or "isfiling

• !&&ort efforts to &ro&erly "anage change

'se &rocess $no+ledge:

• Ens!re a+areness

• Ens!re that &rocess $no+ledge re"ains !sef!l

7 %a8ards and ,44ects "ana/ement Process +%a8ard Identi4icationand Ris) Anal#sis in CCPS ;uide.

3aards and Effects Manage"ent Process ;3EMP< is a collective ter" thatenco"&asses all activities involved in identifying haards and eval!ating ris$ atfacilities@ thro!gho!t their life cycle@ to "a$e certain that ris$s to e"&loyees@ the &!,lic@or the environ"ent are consistently controlled +ithin the organiationDs ris$ tolerance.


• oc!"ent the intended ris$ "anage"ent syste"

• ntegrate 3EMP activities into the life cycle of &roGects or &rocesses

• Clearly define the analytical sco&e of 3EMPs and ass!re adeA!ate coverage

• eter"ine the &hysical sco&e of the ris$ syste"


• Ma$e consistent ris$ G!dg"ents

• ?erify that 3EMP &ractices re"ain effective






Effective: May-12

dentify haards and eval!ate ris$s:

• ather and !se a&&ro&riate data to identify haards and eval!ate ris$s

• elect a&&ro&riate 3EMP "ethods

• Ens!re that 3EMP revie+ers have a&&ro&riate e5&ertise

• Perfor" ris$ activities to the a&&ro&riate level of technical rigor co""ens!rate

+ith the life cycle stage and the availa,le infor"ation

• Pre&are a thoro!gh ris$ assess"ent re&ort

4ssess ris$s and "a$e ris$-,ased decisions:

• 4&&ly the ris$ tolerance criteria

• elect a&&ro&riate ris$ control "eas!res

Follo+ thro!gh on the assess"ent res!lts:

• Co""!nicate i"&ortant res!lts to "anage"ent

• oc!"ent the resid!al ris$

• Resolve reco""endations and trac$ co"&letion of actions

• Co""!nicate res!lts internally

• Co""!nicate res!lts e5ternally

• Maintain ris$ assess"ent records

"ana/e Ris)

To "anage ris$@ facilities sho!ld foc!s on:

• evelo&ing +ritten &roced!res that ;1< descri,e ho+ to safely start !&@ o&erate@

and sh!t do+n &rocesses@ ;2< address other a&&lica,le o&erating "odes@ and

;*< &rovide +ritten instr!ctions that o&erators can e5ec!te +hen they enco!nter

&rocess !&sets / !nsafe conditions.

•

"&le"enting an integrated s!ite of safe +or$ &olicies@ &roced!res@ &er"its@and &ractices to control "aintenance and other non-ro!tine +or$.

• E5ec!ting +or$ activities to ens!re that eA!i&"ent is fa,ricated and installed in

accordance +ith s&ecifications@ and that it re"ains for service over its entire

life cycle.

• Managing contractors@ and eval!ating +or$ &erfor"ed ,y contractors@ to

ens!re that the associated ris$s are acce&ta,leB ens!ring that contractors are

not e5&osed to !nrecognied haards or !nderta$e activities that &resent

!n$no+n or intolera,le ris$.

• Providing training and cond!cting related activities to ens!re relia,le h!"an

&erfor"ance at all levels of the organiation.

• Recogniing and "anaging changes.

• Ens!ring that !nits@ and the &eo&le +ho o&erate the"@ are &ro&erly &re&aredfor start-!&s.

• Maintaining a very high level of h!"an &erfor"ance@ &artic!larly a"ong

o&erators@ "aintenance &ersonnel@ and others +hose actions directly affect

&rocess safety.

• Pre&aring for and "anaging e"ergencies.






Effective: May-12

Plant Operatin/ Procedures +Operatin/ Procedures in CCPS ;uide.

Plant o&erating &roced!res are +ritten instr!ctions ;incl!ding &roced!res that arestored electronically and &rinted on de"and< that ;1< list the ste&s for a given tas$ and;2< descri,e the "anner in +hich the ste&s are to ,e &erfor"ed.


• Esta,lish "anage"ent controls

• Control &roced!re for"at and content

• Control doc!"ents

dentify +hat o&erating &roced!res are needed:

• Cond!ct a tas$ analysis

• eter"ine +hat &roced!res are needed and their a&&ro&riate level of detail

• 4ddress all o&erating "odes

evelo& &roced!res:

• 'se an a&&ro&riate for"at• Ens!re that the &roced!res descri,e the e5&ected syste" res&onse@ ho+ to

deter"ine if a ste& or tas$ has ,een done &ro&erly@ and &ossi,le conseA!ences

associated +ith errors or o"issions

• 4ddress safe o&erating li"its and conseA!ences of deviation fro" safe

o&erating li"its

• 4ddress li"iting conditions for o&eration

• Provide clear@ concise instr!ctions

• !&&le"ent &roced!res +ith chec$lists

• Ma$e effective !se of &ict!res and diagra"s

• evelo& +ritten &roced!res to control te"&orary or non-ro!tine o&erations

• ro!& the tas$s in a logical "anner

• nterlin$ related &roced!res

• ?alidate &roced!res and verify that act!al &ractice confor"s to intended

&ractice

'se the &roced!res to i"&rove h!"an &erfor"ance:

• 'se the &roced!res +hen training

• 3old the organiation acco!nta,le for consistently follo+ing &roced!res

• Ens!re that &roced!res are availa,le

Ens!re that &roced!res are "aintained:

• Manage changes

• Correct errors and o"issions in a ti"ely "anner

• Periodically revie+ all o&erating &roced!res






Effective: May-12

Permit o 0or) +Sa4e 0or) Practices in CCPS ;uide.

Per"it To =or$ ;PT=< fills the ga& ,et+een o&erating &roced!res and "aintenance&roced!res. afe +or$ &ractices hel& control haards and "anage ris$ associated +ithnon-ro!tine +or$.


• efine the sco&e

• &ecify +hen in the facilityDs life cycle the safe +or$ &roced!res a&&ly



Effectively control non-ro!tine +or$ activities:

• evelo& safe +or$ &roced!res@ &er"its@ chec$lists@ and other +ritten standards

• Train e"&loyees and contractors

• Control access to &artic!larly haardo!s areas

• Enforce the !se of safe +or$ &roced!res@ &er"its@ and other standards

•

Revie+ co"&leted &er"its

1$ echnical Inte/rit# +Asset Inte/rit# and Reliailit# in CCPS ;uide.

Technical integrity is the syste"atic i"&le"entation of activities@ s!ch as ins&ectionsand tests necessary to ens!re that i"&ortant eA!i&"ent +ill ,e s!ita,le for its intendeda&&lication thro!gho!t its life.


• evelo& a +ritten &rogra" descri&tion / &olicy

• eter"ine the sco&e of the asset integrity ele"ents

• 6ase design and TPM tas$s on standards


• '&date &ractices ,ased on ne+ $no+ledge• ntegrate the asset integrity ele"ent +ith other goals

dentify eA!i&"ent and syste"s that are +ithin the sco&e of the asset integrity &rogra"and assign TPM tas$s:

• dentify eA!i&"ent / syste"s for incl!sion in the asset integrity ele"ent

• evelo& an TPM &lan

• '&date the TPM &lan +hen eA!i&"ent conditions change

evelo& and "aintain $no+ledge@ s$ills@ &roced!res@ and tools:

• evelo& &roced!res for ins&ection@ test@ re&air@ and other "aintenance

activities• Train e"&loyees and contractors

• Ens!re that ins&ectors hold a&&ro&riate certifications

• Provide the right tools

Ens!re contin!ed fitness for &!r&ose:

• Cond!ct initial ins&ections and tests as &art of &lant co""issioning

• Cond!ct tests and ins&ections d!ring o&erations

• E5ec!te cali,ration@ adG!st"ent@ &reventative "aintenance@ and re&air

activities

• Plan, control, and e0ecute maintenance activities

• +nsure the 1uality of repair parts and maintenance materials






Effective: May-12

• +nsure that overhauls, repairs, and tests do not undermine

safety

4ddress eA!i&"ent fail!res and deficiencies:

• Pro"&tly address conditions that can lead to fail!re

• Revie+ test and ins&ection re&orts e5a"ine res!lts to identify ,roader iss!es

• nvestigate chronic fail!res !sing a str!ct!red "ethodology

• Plan "aintenance and re&air activities

4nalye data:

• Collect and analye data

• 4dG!st ins&ection freA!encies and "ethods

• Cond!ct additional ins&ections or tests as needed

• Plan re&lace"ents or other corrective actions

• 4rchive data

11 Contractor "ana/ement

Contractor "anage"ent is a syste" of controls to ens!re that contracted servicess!&&ort ,oth safe facility o&erations and the co"&anyDs &rocess safety &erfor"ancegoals.



• dentify +hen contractor "anage"ent is needed


• Ens!re that &ractices re"ain effective

Cond!ct ele"ent +or$ activities:

• 4&&ro&riately select contractors

• Esta,lish e5&ectations@ roles@ and res&onsi,ilities for safety &rogra"

i"&le"entation and &erfor"ance

• Ens!re that contractor &ersonnel are &ro&erly trained

• F!lfil co"&any res&onsi,ilities +ith res&ect to safety &erfor"ance

Monitor the contractor "anage"ent syste" for effectiveness

• 4!dit the contractor selection &rocess

• Monitor and eval!ate contractor safety &erfor"ance

12 rainin/ and Per4ormance AssuranceTraining is &ractical instr!ction in Go, and tas$ reA!ire"ents and "ethods.Perfor"ance ass!rance is the "eans ,y +hich +or$ers de"onstrate that they have!nderstood the training and can a&&ly it in &ractical sit!ations.


• efine roles and res&onsi,ilities

• ?alidate &rogra" effectiveness

• Control doc!"ents






Effective: May-12

dentify +hat training is needed:

• Cond!ct a Go, / tas$ analysis

• eter"ine "ini"!" reA!ire"ents ;or essential ele"ents< for Go, candidates

• eter"ine +hat training is needed

• ro!& training into logical &rogra"s

• Manage changes

Provide effective training:

• evelo& or &roc!re training "aterials

• Consider ti"ing

• nter+eave related to&ics

• Ens!re that training is availa,le

Monitor +or$er &erfor"ance:

• !alify +or$ers initially

• Test +or$ers &eriodically

• Revie+ all A!alification reA!ire"ents &eriodically

13 "ana/ement o4 Chan/e

The M)C ele"ent hel&s ens!re that changes to a &rocess do not inadvertentlyintrod!ce ne+ haards or !n$no+ingly increase ris$ of e5isting haards.


• Esta,lish consistent i"&le"entation


• ee& M)C &ractices effective

dentify &otential change sit!ations:• efine the sco&e of the M)C syste"

• Manage all so!rces of change

Eval!ate &ossi,le i"&acts:

• Provide a&&ro&riate in&!t infor"ation to "anage changes

• 4&&ly a&&ro&riate technical rigor for the M)C revie+ &rocess

• Ens!re that M)C revie+ers have a&&ro&riate e5&ertise and tools

ecide +hether to allo+ the change:

• 4!thorie changes

• Ens!re that change a!thoriers address i"&ortant iss!es

Co"&lete follo+-!& activities:

• '&date records

• Co""!nicate changes to &ersonnel

• Enact ris$ control "eas!res

• Maintain M)C records






Effective: May-12

1 Operational Readiness

The readiness ele"ent ens!res that sh!t do+n &rocesses are verified to ,e in safecondition for re-start.


• Ens!re consistent i"&le"entation• eter"ine ty&es of and triggers for the readiness &ractice

• eter"ine the sco&e of readiness revie+s


• Ens!re that readiness &ractices re"ain effective

Cond!ct a&&ro&riate readiness revie+s as needed:

• Provide a&&ro&riate in&!ts

• nvolve a&&ro&riate reso!rces and &ersonnel

• 4&&ly an a&&ro&riate +or$ &rocess

• Perfor" ele"ent +or$ in a diligent "anner

•

Create ele"ent +or$ &rod!cts

Ma$e start!& decisions ,ased !&on readiness res!lts:

• Consider i"&ortant iss!es affecting the start!&

• Co""!nicate decisions and actions fro" the readiness revie+

Follo+ thro!gh on decisions@ actions@ and !se of readiness res!lts:

• Enact ris$ control "eas!res

• '&date &rocess safety $no+ledge and records

• Maintain ele"ent +or$ records

16 Conduct o4 OperationsCond!ct of o&erations instit!tionalies the &!rs!it of e5cellence in the &erfor"ance of every tas$ and "ini"ie variations in &erfor"ance.



• Esta,lish standards for &erfor"ance


Control o&erations activit ies:

• Follo+ +ritten &roced!res

• Follo+ safe +or$ &ractices

• 'se A!alified +or$ers

• 4ssign adeA!ate reso!rces

• For"alie co""!nications ,et+een +or$ers

• For"alie co""!nications ,et+een shifts

• For"alie co""!nications ,et+een +or$ gro!&s

• 4dhere to safe o&erating li"its and li"iting conditions for o&erations

• Control access and occ!&ancy






Effective: May-12

Control the stat!s of syste"s and eA!i&"ent:

• For"alie eA!i&"ent / asset o+nershi& and access &rotocols

• Monitor eA!i&"ent stat!s

• Maintain good ho!se$ee&ing

• Maintain la,elling

• Maintain lighting

• Maintain instr!"ents and tools

evelo& reA!ired s$ills / ,ehavio!rs:

• E"&hasie o,servation and attention to detail

• Pro"ote a A!estioning / learning attit!de

• Train +or$ers to recognie haards

• Train +or$ers to self-chec$ and &eer-chec$

• Esta,lish standards of cond!ct

Monitor organiational &erfor"ance:

• Maintain acco!nta,ility

• trive to contin!o!sly i"&rove

• Maintain fitness for d!ty

• Cond!ct field ins&ections

• Correct deviations i""ediately

1? ,mer/enc# "ana/ement

E"ergency "anage"ent incl!des ;1< &lanning for &ossi,le e"ergencies@ ;2< &rovidingreso!rces to e5ec!te the &lan@ ;*< &racticing and contin!o!sly i"&roving the &lan@ ;<training or infor"ing e"&loyees@ contractors@ neigh,o!rs@ and local a!thorities on +hatto do@ ho+ they +ill ,e notified@ and ho+ to re&ort an e"ergency@ and ;7< effectively

co""!nicating +ith sta$eholders in the event an incident does occ!r.Maintain a de&enda,le &ractice:

• evelo& a +ritten &rogra"

• esignate an o+ner and define roles and res&onsi,ilities


Pre&are for e"ergencies:

• dentify accident scenarios ,ased on haards

• elect &lanning scenarios

• Plan defensive res&onse actions

• Plan offensive res&onse actions

• evelo& +ritten e"ergency res&onse &lans

• Provide &hysical facilit ies and eA!i&"ent

• Maintain / test facilit ies and eA!i&"ent

• eter"ine +hen !nit o&erator res&onse is a&&ro&riate

• Train ERT "e",ers

• Plan co""!nications

• nfor" and train all &ersonnel

• Periodically revie+ e"ergency res&onse &lans






Effective: May-12

Periodically test the adeA!acy of &lans and level of &re&aredness

• Cond!ct e"ergency evac!ation and e"ergency res&onse drills

• Cond!ct ta,leto& e5ercises

• Practice crisis co""!nication

• CritiA!e e5ercises@ drills@ and act!al res&onses

• Cond!ct assess"ents and a!dits

• 4ddress findings and reco""endations

Learn 4rom ,:perience

To learn fro" e5&erience@ facil ities sho!ld foc!s on:

• nvestigating incidents that occ!r at the facility to identify and address the root

ca!ses.

• 4&&lying lessons fro" incidents that occ!r at other facilities +ithin the

co"&any and +ithin the ind!stry.

• Meas!ring &erfor"ance and striving to contin!o!sly i"&rove in areas that have

,een deter"ined to ,e ris$ significant.• 4!diting R6P "anage"ent syste"s as +ell as the &erfor"ance of +or$

activities that "a$e !& the "anage"ent syste".

• 3olding &eriodic "anage"ent revie+s to deter"ine if the "anage"ent

syste"s are +or$ing as intended and if the +or$ activities are hel&ing the

facility effectively "anage ris$.

17 Incident Investi/ation

ncident investigation is a &rocess for re&orting@ trac$ing@ and investigating incidentsthat incl!des ;1< a for"al &rocess for investigating incidents@ incl!ding staffing@&erfor"ing@ doc!"enting@ and trac$ing investigations of &rocess safety incidents.

Maintain a de&enda,le incident re&orting and investigation &ractice:

• "&le"ent the &rogra" consistently across the co"&any

• efine an a&&ro&riate sco&e for the incident investigation ele"ent


• Monitor incident investigation &ractices for effectiveness

dentify &otential incidents for investigation:

• Monitor all so!rces of &otential incidents

• Ens!re that all incidents are re&orted

• nitiate investigations &ro"&tly

'se a&&ro&riate techniA!es to investigate incidents

• nterface +ith the e"ergency "anage"ent ele"ent

• 'se effective data collection "ethods

• 'se a&&ro&riate techniA!es for data analysis

• nvestigate ca!ses to an a&&ro&riate de&th

• e"and technical rigor in the investigation &rocess

• Provide investigation &ersonnel +ith a&&ro&riate e5&ertise and tools

• evelo& effective reco""endations






Effective: May-12

oc!"ent incident investigation res!lts:

• Pre&are incident investigation re&orts

• Provide clear lin$ing ,et+een ca!ses and reco""endations

Follo+ thro!gh on res!lts of investigations:

• Resolve reco""endations

• Co""!nicate findings internally

• Co""!nicate findings e5ternally

• Maintain incident investigation records

Trend data to identify re&eat incidents that +arrant investigation:

• #og all re&orted incidents

• 4nalye incident trends

1 "easurement and "etrics

This ele"ent addresses +hich indicators to consider@ ho+ often to collect data@ and+hat to do +ith the infor"ation to hel& ens!re res&onsive@ effective R6P"anage"ent syste" o&erations.


• Esta,lish consistent i"&le"entation

• eter"ine triggers for "etrics collection and re&orting

• Ens!re that the sco&e of the "etrics is a&&ro&riate


• ee& "etrics &ractices effective

Cond!ct "etrics acA!isition:

• "&le"ent a&&ro&riate ele"ent "etrics• Collect and refresh "etrics

!""arie and co""!nicate "etrics in a !sef!l for"at

• 'se "etrics ele"ent to i"&rove R6P ele"ents

1 Auditin/

The a!dits ele"ent is intended to eval!ate +hether "anage"ent syste"s are&erfor"ing as intended.


•

Ens!re consistent i"&le"entation• nvolve co"&etent &ersonnel

• dentify +hen a!dits are needed

Cond!ct ele"ent +or$ activities:

• Pre&are for the a!dit

• eter"ine the a!dit sco&e and sched!le

• 4sse",le the tea"

• 4ssign res&onsi,ilities

• ather advanced infor"ation

• Plan onsite activities

• Cond!ct the a!dit

• oc!"ent the a!dit






Effective: May-12

• 4ddress a!dit findings and reco""endations

'se a!dits to enhance R6P effectiveness:

• Monitor R6P "at!ration over ti"e for each facility

• hare ,est &ractices

2$ "ana/ement Revie5 and Continuous Improvement

Manage"ent revie+ is the ro!tine eval!ation of +hether "anage"ent syste"s are&erfor"ing as intended and &rod!cing the desired res!lts as efficiently as &ossi,le.



• Esta,lish standards for &erfor"ance


Cond!ct revie+ activities:

• Pre&are for the revie+• eter"ine the revie+ sco&e

• ched!le the revie+

• ather infor"ation

• Pre&are a &resentation

• Cond!ct the revie+

• oc!"ent the revie+

• 4ddress revie+ findings / reco""endations

Monitor organiational &erfor"ance:

• trive to contin!o!sly i"&rove

•

Cond!ct field ins&ections






Effective: May-12

Appeni, 5 - A66reviations

The follo+ing a,,reviations are !sed in this Proced!re.

4-P 4sset ntegrity > Process afety

4P4#T 4sset ntegrity Process afety 4ction #eadershi& Tea"

4=P 4!dit =or$ing Pa&erB

CCP Center for Che"ical Process afety

3E 3ealth afety and Environ"ent

P ey Perfor"ance ndicator

)#T )&erations #eadershi& Tea"

PPE Personal &rotection EA!i&"ent

R4C Res&onsi,le@ 4cco!nta,le@ !&&ort@ Cons!lt@ nfor"

R6P Ris$ 6ased Process afety

T Technical irectors ro!&

T)R Ter"s )f Reference






Effective: May-12

Appeni, 7 ) Re#erence 'aterial

The follo+ing list contains only the "ain doc!"ents of related to this &roced!re.

Codes o4 Practice

•CP-10 - Cor&orate Manage"ent Fra"e+or$ - CoP

• CP-11 - Maintenance ntegrity Manage"ent Code of Practice

• CP-117 - )&erate !rface Prod!ct Flo+ 4ssets - CoP

• CP-118 - =ell #ifecycle ntegrity CoP

• CP-122 - 3E Manage"ent yste"

• CP-20 - Manage"ent of Change - CoP

Procedures

• PR-1000 - )&erations 3andover Proced!re

• PR-1001a - Facility Change Pro&osal Proced!re

• PR-1001c - Te"&orary )verride of afeg!arding yste" Proced!re

• PR-1001e - )&erations Proced!re Te"&orary ?ariance

• PR-1007 - Maintenance and ns&ection 4ctivity ?ariance Control Proced!re

• PR-1010 - Pi&eline erating Proced!re

• PR-102* - 4!to"ation yste"s oft+are Manage"ent Proced!re

• PR-1029 - Co"&etence 4ssess"ent 4ss!rance

• PR-102 - Pre&arations and Manage"ent of )&erations Proced!res

• PR-10* - as Freeing@ P!rging #ea$ Testing of Process EA!i&"ent

• PR-10 - solation of Process EA!i&"ent Proced!re

• PR-10 - Pre&aration of tatic EA!i&"ent for nternal Maintenance and ns&ection

• PR-108 - 3ydrogen !l&hide Manage"ent Proced!re

• PR-109 - as Freeing and P!rging of Tan$s Proced!re

• PR-1081 - The 6!ddy yste" Proced!re

• PR-108 - #oc$ed ?alve and &ectacle 6lind Control

• PR-1098 - =ell 4ctivity Co-ordination Control Proced!re

• PR-117 - as Testing Proced!re

• PR-1179 - Co""issioning and tart-!&

• PR-112 - Per"it to =or$ Proced!re

• PR-128 - F!nctional Criticality 4ssess"ent Proced!re

• PR-190 - Control of Porta,le Te"&orary EA!i&"ent

• PR-191 - Process #ea$ Manage"ent

;uidelines