© Chevron 2008

Chevron Pipe Line

Radical Change to Improve Safety

IPLOCA 44th Annual Convention October 1, 2010 John Truhe

© Chevron 2008 2

Objectives

Understand CPL safety emergency and response

Share nuggets that could apply to other organizations

© Chevron 2008 3

In 2007, CPL was in a Safety Emergency

Numerous people had been hurt on the job from January to August which includes

• First Aids

• OSHA recordable injuries

• Several people were not able to immediately return to work (DAFW)

Several of the OSHA recordable injuries had the potential to be very serious

MVC’s were recorded

Several incidents could have resulted in fatalities

© Chevron 2008 4

2004 2005 2006 2007

Other CVX Business Units

CPL Rate

CVX Rate

CPL Workforce DAFW Benchmarking in Sept 2007

Incidents at rate in excess of other comparable CVX Business Units

Analysis indicated 75% of incidents were short service workers

© Chevron 2008 5

The Bottom Line

Safety is a core value for Chevron

If we can’t manage safety, we can’t manage our business

© Chevron 2008

Timeline of Events

20072007

Safety Road Show

OCT –

DEC 2007

6

CPL102005.ppt© Chevron 2005

Safety Roadmap to World Class & IFOPeer Assist Modified

• Begin consolidation of Contractors

• Increase CSM coverage

CSM

Reliability

• Require a work order for all field maintenance work

Safe Operations

• Require onsite JSA • On boarding and mentors

(Constr. Reps, Inspectors, Field Engrs.)

Incidents

• Standardize on why tree & utilize ETC training

• Sr Mgr IIR fluency and own investigation & action

CSM

• Redeploy CSM• Develop master resource

schedule and sourcing plan• Contractor Leaders in CSLT• Area Safety Committees with

contractor HES Specialists• Culture & field effectiveness

incl in contractor evaluation

Safe Operations

• Team to eval limiting LPS/IPS • Adopt peer-to-peer BBS

MSP

• Assure rigor of self-assessment particularlyregarding CSM

Reliability

•Consistent Maint planning role• Utilize CMMS to prompt proc,

JSA, MOC• Morning Operations work

coordination mtg

Stage 1 Stage 2Stage 3

Stage 4Stage 5

Leadership

• Safety Imprv Plan road show• Recognize IFO behavior• Seize non-IFO opportunity• Reinforce core values• Slow 2008 Capital program• Launch FTL network

MSP

• Task Force complete Gap Assessment and SafetyImprovement Plan (focus oncritical few)

• Adv Supplier Relationship • Modify & use A & B

rating to qualify bidders• Weigh safety in contr select• CSM scorecard acctbility

CSM

Reliability

• Enforce use of SAP PM throughout CPL

Leadership

• Re-clarify roles and responsibilities, dotted line accountabilities; esp HES TL, FTL, Ops Mgr

3rd – 4th Quarter2007

1st – 2nd Quarter2008

3rd – 4th Quarter2008

2009 2010

Leadership

• Slow pace of non-essential OE processes

• LT scheduled, collective visits• Build relationship during visits• Increase weight of safety

results in LT PMP rating

ImmediateActions Taken (August ‘07)

Formed Safety Task Force

Personal Safety Action Plan

Visible Leadership

Corporate OE Peer Assist

Safety Road ShowOCT –

DEC 2007

© Chevron 2008

Timeline of Events Project

JAN –

SEP 2Re008

7

Safety Road ShowMAY − JUN 2008

Safety Improvement ProjectTeams OrganizedJAN –

SEP 2008

LeadershipShort Service EmployeesLost Prevention System ReplacementProject SafetyThird Party Services

© Chevron 2008 8

Take Away Nuggets

Field Observation

2,000

1,500

1,000

500

June July August0

May

Observations

Observation process

2008

© Chevron 2008

Take Away Nuggets

•Job Safety Analysis

•Contractor Safety on Projects

•Short Service Employees

9

© Chevron 2008 10

Key Success Factors and What We Learned Since 2007

Visible leadership and frequent communication

Safety improvement project focused on adapting standard processes

Involving field personnel created ownership

Declaring a safety crisis raised awareness and “Created Safety Buzz”

Employee ownership in developing – Behavioral Base Safety, Job Safety Analysis, Job Safety Site Plan, Contractor Health Environmental and Safety Management, Near Misses, etc.

© Chevron 2008 11

CPL Workforce DAFW Benchmarking – 2004 thru July 2010

© Chevron 2008 12

Safety – It’s For Life

To Date, Chevron Pipe Line achieved over 10 million man hours without any days away from work!