TRUE. BLUE. DONE. Health, Safety and Environmental Management System (HSE MS)

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1 TRUE. BLUE. DONE. Health, Safety and Environmental Management System (HSE MS) TM

2 TRUE. BLUE. HEALTH. From the CEO For an integrated company like Valerus, success depends on consistent performance in every aspect of our operations. Of the many elements that comprise operating excellence, Valerus has identified ensuring the health and safety of employees and protecting the environment as our top priorities. Striving for continuous improvement and committing to the highest standards in each of these areas is The Valerus Way. Succeeding at The Valerus Way is centered on three key areas leadership, teamwork and accountability. These areas provide the systematic management of behavior for which we strive. To promote The Valerus Way, Valerus expects all employees to be knowledgeable of and comply with worker safety and environmental regulations particular to each work assignment. In addition, vendors, subcontractors and others who provide services at Valerus or customer facilities will be held accountable for ensuring that sound practices and procedures are followed. At Valerus, the health and safety of our employees and the protection of the environment are core values by which we must work and live. If we perform our tasks The Valerus Way, we are not only successful as a company, but also as individuals in life. Let s work together toward world class health, safety and environmental performance. Introduction The Health, Safety and Environmental Management System (HSE MS) is a structure that provides Valerus with the elements, expectations, and performance measures to implement effective processes. This document describes our comprehensive process that applies to every Valerus organization and location and is fully integrated into all management activities. This process is intended to provide a framework for Valerus operating areas to achieve top performance. It serves as a management tool to achieve our objectives of: Being the safest company in our industry; Protecting the health of our employees; Being good stewards of the environment by minimizing any adverse impacts from Valerus products and services; Assisting customers with the correct product and service choices to ensure their compliance with federal and local environmental regulations; and Being recognized as a valued member of the communities in which we operate. The purpose of the HSE MS is to provide performance expectations for all employees and assist in the management of hazards and risks associated with day-to-day activities. Valerus has demonstrated its determination to achieve the highest standards in health, safety and environmental performance and it is recognized by the industry that dedication to these areas contributes significantly to our long term business success. Pete Lane CEO, Valerus

3 TRUE. BLUE. SAFETY. Doing Business The Valerus Way Vision. Valerus is the clear partner of choice for integrated oil and natural gas equipment, operations and services all delivered The Valerus Way focusing on preventing incidents and promoting a healthy, safe and environmentally conscious workplace. Mission. Our mission is to provide the infrastructure to produce and treat oil and natural gas The Valerus Way. This is achieved by actively managing and improving our performance and promoting a healthy, safe and environmentally responsible culture. Our Health, Safety and Environmental Values. We have a personal commitment to and ownership of our employees health and safety, as well as the protection of the environment. We respect one another by recognizing that our success depends on the commitment, capabilities, and diversity of our employees. We are ethical and trustworthy in our relationships with all stakeholders. We follow through on commitments and are effective in our communications. We are accountable for our actions and we learn from our mistakes. We seek nontraditional solutions and we leverage best practices. We value teamwork within all levels of our organization. We continually seek to improve our health, safety and environmental practices and performance. Executive Responsibilities Senior management is responsible for: Working with the Health, Safety and Environmental Departments to establish performance expectations as outlined by this document. Communicating with all employees to ensure they understand their responsibilities and expected performance under the HSE MS. Setting performance measurements in the form of objectives and initiatives. Ensuring that the HSE MS elements and expectations are identified and individuals are held accountable. Reviewing and updating the HSE MS annually. Employee Responsibilities Valerus employees are responsible for: Stopping activities that are unsafe for personnel or the environment when they occur or are about to occur. Participating fully in the Job Safety Analysis (JSA) program. Abiding by Valerus health and safety processes and procedures. Recognizing and complying with environmental rules and policies that are applicable to each location. Participating in Behavior-Based Safety programs (BBS). Following project-specific waste management plans. Reporting all environmental incidents immediately to supervisor and Environmental Department. Health, Safety and Environmental Departments Responsibilities The Health, Safety and Environmental Departments are responsible for: Advising senior management on the establishment of health, safety and environmental performance indicators as outlined by the HSE MS. Assisting senior management in reviewing and updating the HSE MS annually. Advising and training the Valerus sales and service groups on the safety and environmental procedures, policies and regulations that affect them. Acting as a resource for customers to align them with the appropriate Valerus products and services to meet their environmental compliance needs. Safety is a core cultural value, says Chris Parks, Director of Health and Safety, because taking care of our people is the most important thing we do.

4 TM TRUE. BLUE. ENVIRONMENT. The Process. Adjust: Implementation of identified continuous improvement activities becomes part of the next HSE MS annual cycle and business plans. Review: Past performance is reviewed to identify strengths, weaknesses, deficiencies and other opportunities for improvement. Health, Safety And Environment Management System ADJUST REVIE W PLAN PERFORM Plan: Strategic planning and impact assessments contribute to defining clear goals with a focus on achieving the desired results. Perform: Specific actions and objectives are implemented through clearly defined procedures toward identified goals. The elements of the HSE MS are the means of achieving industry leadership in health, safety and environmental performance. There are seven elements classified under the overall plan s three primary focus areas: people, assets and systems. These elements define the framework for health, safety and environmental efforts at all locations where Valerus operates. This framework allows business units the flexibility to improve their efforts based on the risk of their specific operations. The Valerus HSE MS elements are: People People are the most valuable resource of the corporation. In order to maximize this value, employees must understand their roles and responsibilities and be well trained for their tasks. Employees have the authority to stop unsafe acts and conditions that pose risks to the health or safety of individuals or the environment. In addition, employees have the appropriate tools and training to successfully complete each job in an environmentally responsible manner. Leadership and Accountability Leadership is fundamental to the success of the HSE MS. Valerus leadership must take ownership to ensure that health, safety and environmental processes are integrated into the Valerus business plan. Communication and Involvement This element promotes a positive health, safety and environmental culture by ensuring continuous and effective communication between management and the workforce. Procedures and Documentation This element controls health, safety and environmental documentation to provide references and guidance to employees before they undertake various work activities. Performance Monitoring and Measuring This element tracks the organization s performance versus the Valerus HSE goals and expectations identifying patterns, areas that need improvement and areas of success. These metrics are continually reviewed by senior management. Audits and Inspections This element establishes the process by which Valerus will evaluate compliance of the organization against the elements of the HSE MS. Management Review, Improvement and Sustainability This element outlines the management review requirements of the effectiveness of the HSE MS. In addition, this element ensures sustainability of the HSE MS process with Valerus business objectives by identifying continual improvement and updates based on lessons learned and changes in business functions.

5 TRUE. BLUE. DONE. Safety is a driving force behind every action taken by each Valerus employee, whether out in the field, inside the shop, or in the office. Valerus breeds a culture of safety in which each and every person is responsible and accountable for safety (e.g. stop work authority ) and this resonates throughout the entire company. The safety of the environment is also paramount to Valerus culture, and we feel that minimizing the environmental impact of our products and services is an extension of our safety culture. Apart from the obvious concern we all have for human life and well-being, safety is a core company value any way you want to look at it and possibly one of the most important areas for accountability for everyone in the company. Valerus Compression Services ( Valerus ) is a worldwide leader in integrated oil and natural gas handling equipment, operations and services. We specialize in surface production facilities including oil and natural gas processing, treating and compression. Our team of experienced professionals presents Valerus customers with integrated and innovative solutions that optimize performance, reliability and environmental compliance. Valerus offers our customers a single-source for a range of integrated surface solutions to oil and gas processing and treating applications. Valerus experts provide support at every stage to enhance production while minimizing capital expense and reduce operating costs with enhanced safety performance and sensitivity to global and local environmental regulations. Valerus services include design and engineering, packaging and manufacturing, construction and installation, environmental compliance support, natural gas compression, process and treating, surface production equipment, and aftermarket services. Certifications & Memberships American Society of Safety Engineers Registered Environmental Managers Registered Professional Environmental Engineers Certified Safety Professionals by the Board of Certified Professionals TM Corporate Office 919 Milam, Suite 1000 Houston, Texas phone fax

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