Contractor compliance with the Alcohol & Drug Program. Rigorous. Respectful. Ready.

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1 Contractor compliance with the Alcohol & Drug Program Rigorous. Respectful. Ready.

2 Table of contents Cenovus s commitment 1 Expectations of our contractors 2 Prevention 5 Impaired driving 6 Testing and investigations 7 Consequences of a violation 12 Key definitions 13 Alcohol and drug checklist for contractors 15

3 Cenovus s commitment Cenovus is committed to protecting the health and safety of all individuals involved in our activities, as well as the communities where we live and work. We recognize that the use of alcohol and drugs can adversely affect job performance, the work environment and the safety of our staff, service providers and the general public. Cenovus has implemented a comprehensive Alcohol & Drug Program, which includes our policy, practice, guideline, forms and training. This program will help to minimize the health risks and unsafe work performance due to alcohol or drugs. Our Alcohol & Drug Program is founded on the principles of prevention and providing a safe work environment. Key points about the program Use, possession, distribution and offering for sale of alcohol, drugs and drug paraphernalia in the workplace is strictly prohibited Use of alcohol by individuals in safety-sensitive positions is strictly prohibited during work hours, meals, breaks or when on scheduled call Testing for alcohol and drugs can be conducted where there is reasonable grounds to believe alcohol or drugs are in use or affecting the workplace (e.g. after an incident) Pre-assignment drug testing is a requirement for safety sensitive personnel providing services to Cenovus All testing procedures and limits will be in accordance with the U.S. Department of Transportation and the U.S. Department of Health and Human Services standards, which are also accepted in Canada Health costs Alcohol and other drug use in the workplace costs business and industry more than $2.8 billion per year in lost productivity in Alberta. If left untreated, substance abuse contributes to unsafe work practices, accidents and increased risk of injury. It can also lead to depression, stress, reduced morale and other emotional problems; increased absenteeism, and higher workers compensation and insurance costs. Addictions site set to help, Alberta Health Services, May 2013 CONTRACTOR COMPLIANCE WITH THE ALCOHOL & DRUG PROGRAM 1

4 Expectations of our contractors We expect all contractors to meet the same standards for prevention and testing as established within Cenovus s Alcohol & Drug Program. In particular, we expect every contractor will have a fully-implemented alcohol and drug program that meets or exceeds the Cenovus program. A fully-implemented program includes having an agreement with an accredited testing provider to conduct alcohol and drug sample collection and testing within sample hold times as required. Where it s impractical for independent contractors and other very small companies to establish their own policies and testing programs, they will be contractually required to comply with the terms of Cenovus s Alcohol & Drug Program. Contractors are expected to enforce these requirements among their employees, subcontractors and other personnel who conduct Cenovus business or work on Cenovus premises. Cenovus will work with contractors to ensure that they have: An alcohol and drug program in place that meets or exceeds Cenovus s expectations Contracted a Cenovus approved or designated accredited testing provider Executed the Cenovus Alcohol & Drug Policy agreements Satisfied Cenovus s contractor health and safety requirements Failure to have an acceptable program or failure to take actions in accordance with the applicable program elements may result in termination of the company s agreement for services with Cenovus. It s the contractor s obligation to obtain legal advice regarding establishing and implementing their alcohol and drug program. Industry standards The Alcohol and Drug Policy Model for the Canadian Upstream Petroleum Industry produced by Enform and the Canadian Model for Providing A Safe Workplace by the Construction Owners Association of Alberta (COAA) help standardize alcohol and drug policies and programs across industry. Enform (www.enform.ca) COAA (www.coaa.ab.ca) 2 CONTRACTOR COMPLIANCE WITH THE ALCOHOL & DRUG PROGRAM

5 CONTRACTOR COMPLIANCE WITH THE ALCOHOL & DRUG PROGRAM 3

6 Audits Cenovus reserves the right to audit contractors to assess compliance with Cenovus s requirements. This includes conducting contractor health and safety verification activities to ensure implementation of their alcohol and drug program. Through our contractor health and safety program assessments, field verification snapshots and spot checks, Cenovus intends to assess a company s alcohol and drug management in a way that is collaborative and constructive to ensure that Cenovus s health and safety expectations are met and a high-performance work environment is maintained. The Alcohol & Drug Program checklist for contractors at the end of this booklet may be used by to help determine compliance with Cenovus s requirements. Concerns regarding contractor compliance with Cenovus s Alcohol and Drug program expectations should be directed to Cenovus Health & Safety. Alternatively, concerns can be reported directly to the Integrity Helpline at or through our Investigations Committee by at or by calling our switchboard at All reports are confidential and requests for anonymity will be honoured. 4 CONTRACTOR COMPLIANCE WITH THE ALCOHOL & DRUG PROGRAM

7 Prevention Contractors must ensure their staff report to and remain fit for work while conducting services for Cenovus or while on Cenovus premises. Fit for work under the Cenovus Alcohol & Drug Program means being able to safely perform assigned duties and responsibilities free from impairment from alcohol or drugs. To maintain fitness for work, contractors must ensure their staff do not: Use or possess any drugs or drug paraphernalia that are illegal Use prescription medications that are not prescribed to them Inappropriately use any prescription or non-prescription medications that could cause impairment Consume any product containing alcohol during their work hours, meals, breaks and when on scheduled call if in a safety-sensitive position At Cenovus camp locations, stricter requirements (e.g. zero tolerance) may be in place. Contractors staying in camp locations must ensure that they are aware of these additional requirements and comply with them. Sobering facts A 2009 report found that substance abuse, in particular alcohol, is a chronic challenge in the oil and gas industry s labour force in Canada, pointing to a 481% increase in Employee Assistance Program (EAP) access for alcohol abuse over a three-year period. Health and Wellness Trends in the Oil and Gas Sector: Insights from The Shepell fgi Research Group, Shepell fgi, 2009 CONTRACTOR COMPLIANCE WITH THE ALCOHOL & DRUG PROGRAM 5

8 Impaired driving Any contractor required to operate a motor vehicle on behalf of Cenovus must maintain a valid driver s licence. Any loss of license must be reported immediately to Cenovus and will result in the individual being deemed no longer qualified to drive at Cenovus worksites. Where holding a valid driver s licence is a condition of the contract, a loss of the licence or failure to report an impaired driving charge will be grounds for removal from the Cenovus worksite and will be considered a serious breach of the contractor s agreement with Cenovus resulting in action by Cenovus up to and including termination of the provision of services by the contractor. Preventable deaths Nearly 40% of industrial fatalities and 47% of industrial injuries in the United States can be linked to alcohol consumption and alcoholism. Combatting alcohol and drug use in the workplace, Canadian Manufacturing, October CONTRACTOR COMPLIANCE WITH THE ALCOHOL & DRUG PROGRAM

9 Testing and investigations Contractors must have a fully-implemented alcohol and drug program and should be prepared to conduct testing. They should ensure that their staff is aware of the alcohol and drug testing requirements as described below. Pre-assignment testing Cenovus expects any contractor who is assigned to safety-sensitive position to successfully complete a pre-assignment drug test yielding a fit for work result within 60 days prior to commencing services for Cenovus or being on Cenovus premises. Contractor personnel who have completed a pre-assignment drug test as set out in the above paragraph and have remained continuously employed with or retained by the contractor company without break are exempt from the 60-day timeframe. Reasonable grounds testing Reasonable grounds testing is conducted when an individual s actions, appearance or conduct while at work give reasonable grounds to suspect the consumption of alcohol or use of drugs. If a Cenovus representative or contract supervisor believes there are reasonable grounds for testing, they should engage a second representative on site to confirm the assessment of the individual s actions, appearance and conduct. Referral of an individual for testing will be based on specific, personal observations and will be in accordance with Cenovus s Alcohol & Drug Program expectations. If there are reasonable grounds to believe a contract worker is unfit to be on the worksite, the contractor that employs the worker will be expected to remove the individual from the situation and demonstrate fitness for work under the provisions of their own alcohol and drug program. Post-incident testing Post-incident testing may be conducted as part of a full investigation into a work-related incident. As a general practice, post-incident testing is conducted after incidents with an impact rating (actual or potential) of 2 or greater and where it has been determined by the supervisor and the Cenovus Health & Safety representative investigating the incident that the individual s acts or omissions could have caused or contributed to the occurrence. An incident impact rating of 2 is defined as injury or illness that should remedy within a few weeks to a few months with no life-altering complications. Post-incident testing must be conducted in accordance with Cenovus s Alcohol & Drug Program expectations and as soon as reasonably practicable following an incident. CONTRACTOR COMPLIANCE WITH THE ALCOHOL & DRUG PROGRAM 7

10 Maintaining a safe work environment A large proportion of employers (79%) in Alberta reported that testing had been either very or somewhat effective in reducing workplace problems due to alcohol. The results were even stronger for drug testing, with 87.3% reporting a positive effect. The Alberta Survey of Addictive Behaviours and Mental Health in the Workforce, Institute of Health Economics, 2009 Searches Cenovus has implemented a Search Practice that will allow searches to be conducted at Cenovus premises to detect, locate and mitigate drug and alcohol possession and/or trafficking or any contraband. This ensures a safe and secure environment for all staff. All searches at Cenovus premises will be conducted under the direction of Cenovus Corporate Security. Testing standards A contractor s alcohol and drug testing provisions must meet or exceed Cenovus s Alcohol & Drug Program standards as summarized below. Testing methods Cenovus testing procedures and limits are consistent with the provisions set out by the U.S. Department of Transportation and the Department of Health and Human Services. Alcohol tests must comply with the standards of the U.S. Department of Transportation and be administered by a calibrated breath-testing device with a printout of test results. If a breath-testing device is not available, a saliva specimen, urine sample or both may be collected for alcohol testing. Tests for drugs must be administered by urinalysis and comply with standards of the U.S. Department of Health and Human Services (HHS) and be conducted by laboratories certified by the U.S. Substance Abuse and Mental Health Services Administration (SAMHSA). Collection and administration of tests must be performed by trained collection agents. Samples must be collected within eight hours after the incident for an alcohol test and 32 hours after the incident for a drug test. 8 CONTRACTOR COMPLIANCE WITH THE ALCOHOL & DRUG PROGRAM

11 Bottoms up? According to the latest Canadian Alcohol and Drug Use Monitoring Survey, about 10% of Canadians ages 15 years and over had used marijuana at least once in the past year. It is the second most used substance, following alcohol (at 78%). Canadian Alcohol and Drug Use Monitoring Survey (CADUMS), Health Canada, 2013 CONTRACTOR COMPLIANCE WITH THE ALCOHOL & DRUG PROGRAM 9

12 Test results Before a compliance notification is provided to Cenovus, a confirmed positive test result must be reviewed by a trained and qualified medical review officer who will determine whether the results will be reported as a negative or a verified positive result. A positive alcohol test is one in which the blood-alcohol content is defined as: Safety-sensitive Above detection limits* * grams/210 litres of breath in accordance with U.S. DOT requirements A positive drug test is one in which the amount of drug confirmed in a sample is at or exceeds the cut-off levels established by the U.S. Department of Health and Human Services for workplace testing programs throughout North America. The cut-off limits have been updated to reflect the October 1, 2010 changes to Part 40 US DOT Procedures for the Transportation Workplace Drug and Alcohol Testing Programs and are as follows. Drug Initial test levels (ng/ml)* Confirmation test levels (ng/ml)* Marijuana Cocaine Opiates Morphine Codeine Acetylmorphine Phencyclidine (PCP) Amphetamines Methamphetamine 250 MDMA (Ecstasy) MDA 250 MDEA 250 * A ng/ml means nanograms per millilitre. A nanogram is one billionth of a gram. A millilitre is one thousandth of a litre. 10 CONTRACTOR COMPLIANCE WITH THE ALCOHOL & DRUG PROGRAM

13 How much is too much? For the average person, a single drink can put them at or above 0.04%. The time between when we first drink and begin to feel the effects of alcohol varies depending on how fast we drink, our size, and gender. Within 20 minutes, an individual s blood alcohol content can rise significantly. Confidentiality Except for the release of information in accordance with an alcohol and drug program and in situations affecting the health and safety of workers and the public, results of all testing should be maintained by a designated company official and must be kept confidential. Cenovus will be provided with a fitness for work notification for any test situation. Contractors shall ensure that they have obtained any necessary releases and permissions to provide information on a fit for work/not fit for work basis. Violations A confirmed positive test will result in a required notification to Cenovus that the contract worker was not fit for work and will be considered a violation of the Alcohol & Drug Program. Any refusal to comply with a testing request is considered a violation of Cenovus s Alcohol & Drug Program. This includes: Failure to report or attempts to delay reporting for a test Refusal to submit to a test Refusal to disclose a fitness for work result Attempt to tamper with a test sample CONTRACTOR COMPLIANCE WITH THE ALCOHOL & DRUG PROGRAM 11

14 Consequences of a violation Contractors are expected to investigate situations of suspected violations with the Cenovus Alcohol & Drug Program at the request of Cenovus or of its own accord. The contractor must communicate to Cenovus that no program breach has occurred or address violations in compliance with the program. When determining compliance with the Cenovus Alcohol & Drug Program, individuals being investigated will be temporarily banned from Cenovus worksites pending the completion of an investigation into a possible program violation. Any violation of the program provisions by a contract worker may result in dismissal from all Cenovus worksites. Failure of contractors to meet these expectations or to conduct the required testing will be considered a breach of agreement, and may trigger penalty clauses, suspension or termination of the agreement. Bottom line Failure to meet Cenovus s standards for preventing and responding to inappropriate alcohol and drug use could result in termination of agreements. 12 CONTRACTOR COMPLIANCE WITH THE ALCOHOL & DRUG PROGRAM

15 Key definitions Contractors are independent incorporated business entities engaged to perform services for Cenovus. Services and deliverables are outlined in a written agreement between the entity and Cenovus. Individuals performing the services are engaged by the business entity, which provides the business infrastructure to manage its workforce. Contractors can be companies from whom Cenovus has selected one or more specific individuals to perform a service (e.g. professional or technical specialists, temporary staffing agencies), or companies Cenovus has selected to perform a service without specifying the individuals who will provide the service (i.e. service providers such as document reproduction services, services for drilling, completions and work-overs). The term contractor can refer to the business entity or an individual it employs. Drug includes any substance, chemical or agent the use or possession of which is unlawful in Canada or requires a personal prescription from a licensed treating physician or any non-prescription medication lawfully sold in Canada. Drug paraphernalia includes any personal property which is associated with the use of any drug, substance, chemical or agent the possession of which is unlawful in Canada. Devices intended to alter or mask the result of a drug test would also be considered drug paraphernalia. Drug or alcohol test means a scientifically recognized test which analyzes an individual s urine, breath or in certain situations, saliva, for evidence of alcohol or drug exposure. Cenovus business refers to all business activities undertaken in the course of the company s operations, whether conducted on or off company premises. It includes those situations when an individual is representing, or could reasonably be perceived as representing the company in the performance of duties. Cenovus premises includes but is not necessarily restricted to, all land, property, structures, installations, vehicles and equipment owned, leased, operated or otherwise directly controlled by the company for the purpose of conducting Cenovus business. Cenovus representative refers to the individual accountable for a particular area or shift, including team leaders, lead hands, superintendents, coordinators and others in supervisory positions. Fit for work means being able to safely and acceptably perform assigned duties and responsibilities without any limitations due to the consumption of alcohol or use of drugs. CONTRACTOR COMPLIANCE WITH THE ALCOHOL & DRUG PROGRAM 13

16 Incident impact is a rating used to describe the potential impact of an incident based on Cenovus s risk matrix to determine actual and potential impact. Medical review officer is a licensed physician certified as a medical review officer who is independent of the company and who is responsible for receiving the laboratory report and reviewing any non negative results with the employee to determine any alternative medical reasons for the result before reporting to the employer. The medical review officer makes the final decision on whether it is a verified positive, a verified refusal (adulterated or substituted) or a negative result. Safety-sensitive position is a position in which an individual has a key and direct role in an operation where impaired performance could result in: An accident or incident affecting the health or safety of themselves, other employees, contractors, customers, the public or the environment An inadequate response to an emergency or operational situation 14 CONTRACTOR COMPLIANCE WITH THE ALCOHOL & DRUG PROGRAM

17 Alcohol and drug checklist for contractors Company Date Reviewed by All contractors doing business with Cenovus must have an alcohol and drug program that meets Cenovus s standards. Where it s impractical for companies (e.g. independent contractors and other small companies) to establish their own policies and testing programs, they can choose to adopt Cenovus s Alcohol & Drug Program by executing the agreements mentioned on page two of this booklet. This checklist should be used as a guidance document and referenced when used by Cenovus to evaluate a contractor s alcohol and drug program. All items in the checklist are reviewed in this booklet. Meets Cenovus requirement Yes or No Program requirement At a minimum, the program clearly applies to all individuals who perform or may perform Cenovus work. The program specifically sets out the standards for: Illicit drug prohibitions Alcohol prohibitions Medication standards Overall fitness for duty standard The policy and program meet the alcohol and drug testing requirements for: Pre-assignment testing Reasonable-grounds testing Post-incident testing Refusals to complete testing process Identified gaps/changes needed to resolve gap CONTRACTOR COMPLIANCE WITH THE ALCOHOL & DRUG PROGRAM 15

18 Meets Cenovus requirement Yes or No Program requirement Policy sets out additional testing standards and other circumstances consistent with industry best practices or other specific requirements (e.g. aligns with industry standards The Alcohol and Drug Policy Model for the Canadian Upstream Petroleum Industry or the Canadian Model for Providing A Safe Workplace by the Construction Owners Association of Alberta) Procedures are in place to take appropriate action if an individual receives an impaired driving charge. Consequences of a policy and program violation are clearly defined. (Note: Cenovus s concern is limited to potential removal from Cenovus work; subsequent employment status is not a Cenovus issue.) The company has procedures in place to track qualifications of new applicants onto Cenovus worksites (i.e. if they have been previously removed from Cenovus work at another job site). All testing standards meet Cenovus requirements (minimum requirements acceptable) Drugs tested for Cut off levels used Those responsible for testing fully meet Cenovus s standards: Trained collectors for urine sample collection, five part chain of custody Trained collectors for breath collection and/or saliva where appropriate Using devices from the conforming products list Laboratory certified by the U.S. Department of Health and Human Services Qualified medical review officer Use of qualified substance abuse professional Identified gaps/ changes needed to resolve gap 16 CONTRACTOR COMPLIANCE WITH THE ALCOHOL & DRUG PROGRAM

19 Life-saving rule No alcohol or drugs while working or driving

20 CENPM001 v.2 March 2015 cenovus.com Mar Cenovus Energy Inc. 2015

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