VERSABAR SAFETY MANAGEMENT SYSTEM

OPERATING PROCEDURES

1 PURPOSE VERSABAR SAFETY MANAGEMENT SYSTEM (E-01) VEHICLE OPERATIONS These procedures provide the Operations Manager with the ability to insure that all employees operating a company vehicle on public and private roadways are protected from traffic hazards. These guidelines are intended to be minimum standards that may be modified or augmented to comply with specific customers driving standards and requirements. These procedures meet or exceed the requirements of Federal Highway Administration Department of Transportation Regulation Transportation, 49 CFR Part 40, and Part 301 through Part 399. 2 SCOPE This program covers all Versabar, Inc. employees, customer employees, contractor employees, vendor employees and visitors that enter into a company owned or leased vehicle or any privately owned vehicle, which is used for company business, for transportation on public and / or private roadways. 3 DEFINITIONS 1. Authorized Driver An Authorized Driver shall be a Versabar employee that has been determined by a Versabar Operations Manager to be authorized to drive / operate a company vehicle. 2. Commercial Motor Vehicle Means any self-propelled or towed vehicle used on the public highways in commerce to transport passengers or property when: The vehicle has a gross vehicle weight rating or gross combination weight rating of 10,001 or more pounds; or The vehicle is designed to transport more than 15 passengers, including the drivers; or The vehicle is used to transport hazardous materials in quantities requiring placarding under regulations issued by the Secretary of Transportation. (49 CFR 350.3 and 390.5) 3. Commercial Driver s License (CDL) Means a license issued by a State or other jurisdiction, in accordance with the standards contained in 49 CFR 383. The CDL is required of any individual that intends to drive / operate a Commercial Motor Vehicle(s): With a gross combination weight rating of 11,794 kilograms or more (26,001 pounds or more) inclusive of a towed unit with a gross weight rating of more than,536 kilograms (10,000 pounds); or With a gross vehicle weight rating of 11,794 or more kilograms (26,001 pounds or more); or Is designed to transport 16 or more passengers, including the driver; or Is any size and is used in the transportation of Hazardous Materials. 4. Company Vehicle A motor vehicle (automobile and / or truck) designed for travel on public and private roadways, owned and / or leased by Versabar and any personally owned vehicle used in Versabar business. This would also included rented or leased vehicles being used for business purposes.

4 AUTHORIZED DRIVERS 4.1 Driver Qualification VERSABAR SAFETY MANAGEMENT SYSTEM (E-01) VEHICLE OPERATIONS Requirements to operate a company vehicle are: 1. Driver must be an authorized driver as described in Definitions ; and 2. Driver must have a current valid motor vehicle operator s license issued by an appropriate federal or state government. 3. Upon assignment of driving duties / privileges, a verification of the individual s driving record must be obtained from the license issuing authority (i.e., State Department of Motor Vehicles). This is done by the Human Resources Department at the request of the Operations Manager. This Motor Vehicle Record (MVR) report is to become part of the employee s driver/operator file. Subsequent MVR checks must be obtained annually and processed in the same manner. 4. Each employee is allowed a maximum of fifteen (15) hours of duty time including a maximum of ten (10) hours of driving time before he / she must have a minimum of eight (8) hours rest (off duty). The driver shall not operate a company vehicle until after completing the minimum eight (8) hour rest period. This driving time will begin from the time the employee leaves his/her home or hotel. 5. Management of Change that has been approved by the Operations Manager is required to modify this policy. 4.2 Driver Performance Review All Authorized Drivers shall immediately report to their Manager, any traffic accidents, violations or citations that they may receive (while on duty or on off time). A record of these accidents, citations or violations shall be maintained in the employee s Driver / Operator Record File (DOT drivers) or the individual s Personnel file (Non-DOT drivers) in the HSE Department. Every year prior to annual auto policy renewal date the HR Department shall conduct MVR reports on all Authorized Drivers. The Operations Manager shall meet with the authorized driver/s to review the individual s driving record MVR reports annually and whenever a traffic accident, citation or violation is reported. The Operations Manager shall determine at this meeting if the driver / operator is qualified to operate a company vehicle. The following schedule shall be followed in reviewing the qualifications of an Authorized Driver: 1. Does the driver meet the requirements of item 1 through 3 for Paragraph A. Driver Qualification above? 2. Minor Infraction(s) - parking tickets, minor vehicle accident (less than $200.00 vehicle damage) without citation requires a verbal warning and documentation in the individual s Driver / Operator Record File (DOT drivers) or the individual s Personnel File (Non-DOT drivers). 3. Serious Infraction(s) - speeding citations, significant damage to a company vehicle (greater than $200.00), other moving violations / citations require:

(E-01) VEHICLE OPERATIONS First Occurrence - a written warning placed in the individual s Driver / Operator Record File (DOT drivers) or the individual s Personnel File (Non-DOT drivers). Second Occurrence (In a 12 Month Period) driver will NOT be eligible to drive a company vehicle until one of the violations are removed from their MVR (in most States 3 years). Third Occurrence (In a 3-Year Period) - driver will NOT be eligible to drive a company vehicle until two of the violations are removed from their MVR (in most States 3 years). 4. Major Infraction (i.e., DWI, vehicle accident while speeding, felony traffic citation(s), etc.) - Temporary layoff or permanent employment termination depending on specific circumstances. 5. Employees shall be disqualified / ineligible to operate a company vehicle under the following circumstances: When an employee has experienced two or more at fault accidents and/or moving violation citations in any consecutive twelve-month period. When an employee has experienced three or more at fault accidents and/or moving violation citations in any consecutive three-year period. When the employee s legal driving privilege is limited because of revocation, suspension, withdrawal, or denial of an operator s license or permit. When the employee is convicted of a disqualifying offense. Disqualifying offenses include: 1. DWI conviction (company vehicle or other vehicle). 2. Felony conviction involving the use of any motor vehicle. 3. Hit and Run conviction (unauthorized leaving of the scene of accident). 4. Allowing an unauthorized person to operate a company vehicle. 4.3 DOT Regulated Vehicles No vehicles at Versabar are considered DOT Regulated Vehicles. 4.4 Reassignment of Employees Employees who are unable to perform all essential and / or primary functions of their job as a result of motor vehicle accident, citation, violations or limitations, may, at the discretion of management, be reassigned to an existing open position where his/her work qualifications are compatible. The employee s compensation base rate may be adjusted in conjunction with required job grades, departmental budgets and employee skills. In instances where no compatible position is available, the

(E-01) VEHICLE OPERATIONS employee is to be placed on temporary layoff status for a period not to exceed thirty (30) calendar days. Employees not recalled within the period of temporary layoff shall be permanently terminated. 5 VEHICLE OPERATING PROCEDURES 5.1 VEHICLE ACCIDENTS KITS Each Company Vehicle shall contain the following Vehicle Accident Kit : 1. One or more copies of the Vehicle Incident Report ; 2. One or more pencils or pens; 3. One disposable 35 MM camera with flash; 4. One Triangle Flare Kit; 5. One 2 1/2 pound ABC Dry Chemical Fire Extinguisher; and 6. One six (6) person First Aid Kit. 7. One flash light with spare batteries. 5.2 Vehicle Inspection Before starting the engine each morning, the driver shall conduct a basic visual vehicle inspection. Once each week the driver shall complete the Vehicle Inspection Check List form number. The completed inspection form shall be maintained in the vehicle file in the Facility Office. 5.3 Vehicle Loading No company vehicle shall be driven or allowed to be driven unless the vehicle is properly loaded, distributed and secured. Included in this requirement are vehicles carrying people, equipment, materials, chemicals, etc. The driver shall not move the vehicle until all passengers are properly wearing the seat belt and shoulder strap provided for their position in the vehicle. A passenger shall not be allowed to travel in/on a vehicle that does not have a seat belt and shoulder strap provided for that position. 5.4 Driving of Vehicles All company vehicles shall be operated in accordance with federal, state and local laws, ordinances and regulations. No driver shall operate a company vehicle while the driver s ability or alertness is so impaired, or so likely to become impaired, through fatigue, illness, or any other cause, as to make it unsafe for him/her to begin or continue to operate the vehicle. No driver shall operate a company vehicle while the driver s ability to hear emergency vehicle alarms is diminished by the loud volume sound produced by radios, tape players, C.D. players, walkmans, etc. No driver shall operate a company vehicle or be on duty, while in the possession of or under the influence of the drugs and other materials proscribed by 49 CFR 392.4, Drugs and Other Substances. No driver shall operate a company vehicle or be on duty, while under the influence of alcohol as required by 49 CFR 392.5.

(E-01) VEHICLE OPERATIONS No driver shall operate a company vehicle at speeds greater then those permitted by the jurisdictions in or through which the vehicle is being operated. The Manager shall insure that all drivers have sufficient time to travel the distance required without causing the vehicle to operate at speeds greater then those permitted by the jurisdictions in or through which the vehicle is being operated. Each driver is allowed a maximum of fifteen (15) hours of duty time including a maximum of ten (10) hours of driving time before he / she must have a minimum of eight (8) hours rest (off duty). All company vehicles shall have their headlights on while the vehicle is in motion or on a public / private road, day or night. All drivers operating large trucks (requiring a CDL) shall comply with the hours of service, travel logs and other requirements of 49 CFR 395. 5.5 Accident Reporting All vehicle accidents shall IMMEADITAELY be reported verbally to the Operations Manager. The vehicle driver and the Manager shall follow the directions given in Section (C) Incident Management & Reporting of this manual for the investigation and further reporting of the accident. 6 MOTOR VEHICLE MAINTENANCE Motor vehicles are one of the most basic and essential tools of our business. Because of the distances which our operations require us to travel, often in bad weather, it is essential that motor vehicles be kept in proper operating condition at all times. The best way to ensure that a vehicle is in good operating condition is to inspect it regularly. Daily inspections shall be made prior to leaving the shop. Quarterly inspections should be made by a qualified repair facility either as a specific process or as part of equipment repair or maintenance. Each vehicle shall have a separate maintenance file (Fleet Vehicle Record). All invoices for service and parts should be kept in this file. Dates and types of repairs and maintenance should be kept in this file. Daily inspections should be documented on the form Vehicle Inspection Form. This form shall be completed daily and kept on file for one year. Each file shall be discarded at the end of a year and replaced with the new month s file. A copy of the Vehicle Checklist label shall be placed on the dashboard of all Versabar vehicles. 7 EMPLOYEE TRAINING 7.1 Responsibility for Training The Operations Manager is responsible for ensuring that all personnel at his/her facility are trained in the requirements of the Company Vehicle Driving & Operating Procedures and for nstructing employees covered by the program with specific site / job information.

7.2 Employees to be Trained (E-01) VEHICLE OPERATIONS Each Versabar employee shall be trained on the requirements of the Vehicle Operating Procedures before they start work and annually there after. All employees shall be provided training prior to driving / operating a company vehicle. NO Employee shall drive / operate a company vehicle, unless they have been trained and qualified as per the requirements of the Vehicle Operating Procedures. 8 OPERATIONAL INSTUCTIONS The vehicle is fit for the purpose and has been maintained in safe working order, with seatbelts installed and functional. The number of passengers does not exceed manufacturer s specification for the vehicle. Loads are secure and do not exceed manufacturer s specifications and legal limits for the vehicle. Drivers must be appropriately assessed, licensed, trained and medically fit to operate the vehicle. Drivers are appropriately rested and alert. Drivers must not use a mobile phone or two-way radio while operating the vehicle. The risks of the journey have been assessed and plans in place in specific high-risk areas and highrisk countries. 9 SUMMARY OF RESPONSIBILITIES 9.1 HSE Manager Develop, review, and periodically update the Vehicle Operating Procedures format designed to effectively protect employees from the hazards of operating a vehicle on public and private roadways and to comply with the requirements of the 49 CFR Part 40, Part 301 through Part 399). Ensure and document employee instruction required by the Vehicle Operating Procedures. Provide technical and administrative assistance to company locations in their on-going efforts to maintain effective Vehicle Operating Procedures. Conduct annual audits of each location s Vehicle Operating Procedures to identify necessary corrections or modifications and to assist in developing and implementing such measures. 9.2 Operations Manager Support the HSE Manager in the administration of the Vehicle Operating Procedures. Actively participate in administrative activities such as material selection, process design, production operation s and loss control planning to reduce or eliminate vehicle accidents.

9.3 Supervisors VERSABAR SAFETY MANAGEMENT SYSTEM (E-01) VEHICLE OPERATIONS Shall be responsible for implementing the Vehicle Operating Procedures within their work group. Shall maintain copies of current copy of the Vehicle Operating Procedures and make them readily available to all employees. 9.4 Employees Are expected to cooperate actively in instruction sessions, follow personal protective equipment use requirements and other Safety & Environmental rules and regulations for driving / operating company vehicles. Shall report all incidents / accidents immediately to their supervisor. Shall not to attempt drive / operate a company vehicle until they are properly trained and have taken the precautions required in the Versabar Vehicle Operating Procedures.

(E-01) VEHICLE OPERATIONS VERSABAR SAFETY MANAGEMENT SYSTEM Form (E-1)(F-1) Weekly Vehicle Inspection Form CHECK LIST Vehicle Description: Make Model Year License Color CHECK ALL THAT APPLIES: YES/OK NO WATER FUEL SERVICE BRAKES PARKING BRAKES LIGHTS & REFLECTORS WINDSHIELD WIPERS LEFT FRONT TIRE AIR PRESSURE LEFT REAR TIRE AIR PRESSURE RIGHT FRONT TIRE AIR PRESSURE RIGHT REAR TIRE AIR PRESSURE STEERING HORN REARVIEW MIRROR BATTERY EMERGENCY EQUIPMENT LICENSE PLATE EXPIRATION DATE INSPECTION STICKER EXPIRATION DATE SERVICE DUE DATE DATE: SIGNATURE:

1 PURPOSE VERSABAR SAFETY MANAGEMENT SYSTEM (E-02) COMPRESSED GAS HANDLING This program provides the Operations Manager with the procedures to ensure the safety and health of personnel conducting compressed gas handling. This program complies with 29 CFR 1910.101, 29 CFR 1910.166 -.169, 29 CFR 1910.253, Compressed Gases. 2 SCOPE This program covers all Versabar, Inc. employees, customer employees, contractor employees, vendor employees and visitors that enter on to Versabar property and / or work site. 3 PROCEDURES 3.1 General Use only the type of gas for which the compressed gas equipment is designed. Ensure that the cylinder valve is shut off, except when cutting or welding is in progress. Do Not allow sparks, flames or other sources of ignition to come into contact with cylinders, regulators or hoses of a compressed or liquefied gas system. Keep the nozzle guard of airless spray machinery in place at all times when the machinery is being operated. When moving pressurized cylinders, always make sure they are in their proper containers, and that the valves are turned off and that the valve caps are fastened securely. Do not leave the valves on empty cylinders open. Close the valve before installing the valve cap. All cylinders, empty or full, shall be stored away from open flame furnaces, radiators, flammable and volatile liquids, or other hot places. Cylinders shall be stored, transported, and used in an upright position. In storing, secure them with a chain or bar to prevent toppling. See that protective caps are in place when cylinders are not in use. Cylinders shall not be handled roughly; do not drop them or permit them to fall or strike other cylinders or materials. Cylinders shall be transported only in an approved safe manner and in the recommended container. Inspect gas hoses and supply gas valves frequently. Clean new hoses to insure that they are free of dust and talcum before using. Keep torches, regulators, hoses, valves, etc., free of oil, dirt and dust. Avoid using long lengths of hose wherever possible. Use proper connections. Never use connections that do not fit properly. Make sure all connections are gas-tight.

(E-02) COMPRESSED GAS HANDLING Never use white lead, grease or pipe fitting compound in making joints on gas systems. Oxygen under pressure contacting such materials can be very dangerous. Always use the proper regulator to reduce gas pressure from a compressed gas cylinder. Open or crack valves slowly. Always close the cylinder and line valves at end of each shift, and purge hose and torch of gases. Never use a gas cylinder as a prop when cutting material. Never let hot slag fall on cylinders, hoses or on flammable material. Always refer to gases by their proper names. NEVER use oxygen as a substitute for compressed air in pneumatic tools or other devices. Treat equipment with respect. Do not misuse or abuse it. No compressed gas cylinders are allowed in confined spaces during hot work. 3.2 Marking and Labeling 3.2.1 Cylinders Compressed gas cylinders shall be legibly marked with either the chemical or the trade name of the gas. Such labeling shall not be readily removable. When ever possible the marking shall be on the shoulder of the cylinder. Marking shall conform to the requirements of the American National Standard Method for Marketing Portable Compressed Gas Containers to Identify the Material Contained, ANSI Z48.1-1965. 3.2.2 Piping and Hose Lines Each pipe carrying compressed gas shall be marked with the name of the gas, the pressure of the gas and the direction of flow. Each hose carrying compressed gas shall be identified by the color of the line. Each hose and / or pipe shall be color coded as per the following: 1. Combustible and Flammable Gas - RED 2. Oxygen - GREEN 3. Compressed Breathing Air - YELLOW

1 PURPOSE VERSABAR SAFETY MANAGEMENT SYSTEM (E-03) ELECTRICAL EQUIPMENT These procedures provide the Operations Manager with the ability to ensure the safety and health of personnel operating and maintaining electrical equipment. 2 SCOPE This program covers all Versabar, Inc. employees, customer employees, contractor employees, vendor employees and visitors that enter on to Versabar property and / or work site. 3 PROCEDURES 3.1 General Electrical shock can cause more damage to the body than is visible. A person may suffer internal hemorrhages and destruction of tissues, nerves and muscles. The voltage is not of the most concern with electrical shock. Voltage in a wire can be equated to the pressure in a pipe. The pressure (voltage) pushes the electricity volume (amperage) through the wire. It is the amperage that usually causes the damage during an electrical shock. The Effects of Electric Current (Amperage) on the Human Body table demonstrates the damage even very low amperages can cause to the body. EFFECTS OF ELECTRIC CURRENT (AMPERAGE) IN THE HUMAN BODY 1 Milliampere or Milliamp Perception level. Just a faint tingle. (1/1000 Amps) 5 Milliamperes Slight shock felt; not painful but disturbing. (5/1000 Amps) Average individual can let go. However, strong involuntary reactions to shocks in this range can lead to other injuries. 6 to 25 Milliamperes (women) Painful shock, muscular control is lost. or This is called the freezing current or let-go 9 to 30 Milliamperes (men) range. 50 to 150 Milliamperes Extreme pain, respiratory arrest, severe muscular contractions. Individual cannot let go. Death is possible. 1,000 to 4,300 Milliamperes Ventricular fibrillation. (The rhythmic pumping (1 to 4.3 Amps) action of the heart ceases.) Muscular contraction and nerve damage occur. Death is most likely. Amps) 10,000 + Milliamperes Cardiac arrest, severe burns and probable (10 death.

(E-03) ELECTRICAL EQUIPMENT The following are minimum requirements and are not all-inclusive: 1. All electrical equipment, cords and outlets for defects shall be inspected before being used. Use only equipment that is in good condition. Report unsafe conditions, such as defective cord insulation, poor connections to terminals, broken switches or plugs, sparking or overheating equipment or outlets without a Ground Fault Circuit Interrupters (GFCI) in damp areas. 2. Start and end from the OFF position. Make sure the power switch is off before plugging in equipment. When you are finished, turn the equipment off before unplugging it to protect yourself and the next user. 3. Don t kink, cut, or crush any electrical cord. Never carry equipment by its cord. 4. If equipment has a three-prong plug, use a three-slot outlet or extension cord. Never modify three prongs to fit two slots by removing the third prong. Use an adapter instead, making sure that the metal grounding piece on the adapter is connected to a grounded object, such as the screw on the receptacle cover plate. 5. Keep water and electricity far apart. Don t use electrical equipment when your hands are wet or any part of you is touching water. If you must work in damp areas, use a GFCI. 6. Don t overload equipment. 3.2 MAINTENANCE Before inspecting, servicing or repairing any electrical equipment, ALWAYS LOCK OUT / TAG OUT the device. Disconnect power for inspections, servicing, or changing accessories. Ensure that equipment is serviced regularly and repaired or replaced as needed. Only qualified and authorized persons shall inspect, service or repair electrical equipment. 3.3 PORTABLE ELECTRICAL EQUIPMENT When you use portable electrical equipment, you are exposed to voltages with the potential to injure and even kill. Faulty wiring, improper grounding and misuse of electrical outlets and plugs are just some of the hazards that may cause serious shocks and burns. 3.4 GUARDING The live parts of electrical equipment operating at fifty (50) volts or more must be guarded against accidental contact with the human body. Entrances to rooms and other guarded locations containing exposed live electrical parts must be marked with conspicuous warning signs forbidding unqualified persons to enter.

(E-03) ELECTRICAL EQUIPMENT Indoor electric wiring with more than 600 volts and that is open to unqualified persons must be guarded with metal-enclosed equipment or enclosed in a vault or area controlled by a lock. In addition, the equipment must be marked with appropriate caution signs. 3.5 GROUNDING Grounding is another method of protecting employees from electrical shock; however, it is normally a secondary measure. If faulty circuits or equipment allow current leakage, electricity will flow to the ground along the path of least resistance. Grounding substantially reduces the possibility of electrical shock, but it does not guarantee that no one will receive a shock, be injured, or be killed. Be sure to observe good safety habits whenever working with electricity. 3.6 CIRCUIT PROTECTION DEVICES A Ground Fault Circuit Interrupter (GFCI) is designed to shut off electric power within as little as 1/40 of a second. Make sure all electrical equipment is properly grounded, and plugged into grounded outlets installed with a GFCI. GFCI s are primarily used in damp or wet areas. Fuses are designed to melt when too much current flows through them. Fuses will be used on electrical supply lines as per the local life safety and fire codes. Circuit Breakers are designed to open the electrical circuit when too much current is measured flowing through the device. Circuit Breakers like fuses shall be used on electrical supply lines as per the local life safety and fire codes. 3.7 TRAINING All employees shall be trained in these procedures Section. The Operations Manager shall insure that each employee is properly trained before starting work when: 1. The employee is first hired, 2. The employee is appointed to a new job assignment, and 3. The employee is exposed to new substances, processes, procedures, equipment, etc. that represent a new hazard to the employee. All training shall be conducted as per the requirements of Section (B-4) Employee Training of this manual. The Training Record, Section (B-4), shall be completed for each training session. 3.8 RECORDS Documentation of each training, required above must be kept on file for each employee. This documentation shall be maintained for three (3) years after the employee terminates employment with Versabar. This documentation shall be maintained in the HSE Department.

1 PURPOSE VERSABAR SAFETY MANAGEMENT SYSTEM (E-04) HAND TOOL PROCEDURE This program provides the Manager with the procedures to ensure the safety and health of personnel working with and maintaining hand tools. This program complies with 29 CFR 1910.242, Hand and Portable Powered Tools and Equipment. 2 SCOPE This program covers all Versabar, Inc. employees, customer employees, contractor employees, vendor employees and visitors that enter on to Versabar property and / or work sites. 3 PROCEDURES 3.1 General Use hand tools only for the purpose for which they are designed. Inspect tools daily for defects. Tools with mushroomed heads must not be used. Tools with split or splintered handles or loose handles, must not be used. All defective tools must be returned to the tool room. Return all tools to their proper place when not in use. Never play with tools or point tools at anyone. Keep all tools in proper working condition. 3.2 Power Hand Tool Procedures 3.2.1 Personal Protective Equipment As protection from chips and dust, a face shield and safety glasses with side shields or goggles shall always be worn when using power tools. A sign shall be posted at each powered tool station requiring the wearing of a face shield and safety glasses with side shields or goggles. Wear work gloves when buffing, grinding or chipping. All buffers, grinders and chippers shall have guards. Most hand buffers, grinders and chippers produce noise above 100 Decibels at the operator s ears. Hearing protection, both ear plugs and ear muffs, shall be worn at all times when buffing. This is to protect your hearing. Buttoned long sleeve shirts shall be worn when buffing, grinding or performing other types of work where sparks or hot metals are present. Wire particles can cause injury striking bare arms. Loose, torn or ragged clothing creates a special hazard when operating reamers and other machines with revolving spindles or cutting tools. Loose, torn or ragged clothing shall not be worn while working.

(E-04) HAND TOOL PROCEDURE 3.2.2 General Check each tool to make certain it is in safe condition. Make no repairs to electric tools. Return the tool to the Tool Room Supervisor or the work sit supervisor for repair. Never yank on an electric cord to unplug it. Never use an electric tool with wet hands or when standing on a wet surface. Protect electric cords and air hoses to prevent damage and stumbling hazards. All electric tools shall be grounded. Never point a compressed air hose or tool at anyone. Never use compressed air to dust clothing, or for cleaning floors. Never stand over an air hose. If an air hose breaks, do not go near it or attempt to grab it until the air pressure is shut off. Clamp or otherwise secure small or light material before attempting to ream, drill, grind, etc. Take care that small power tools are not left where their cases may be broken by something falling or striking them. 3.2.3 Buffing Procedures All employees operating chipping guns and working near a person using a chipping gun shall wear both ear plugs and ear muffs to protect against the high noise. The buffer operator shall insure that the RPM rating of the wire wheels are equal to/or greater then the RPM rating of the buffer. Before attaching electrical cord to outlet, make sure switch is in off position. Do not use buffers with defective wheels. Be sure wire is securely fastened to the spindle. Do not drop or throw buffers on floor. When buffing in close or tight areas, make sure you have a firm grip on the buffer so that it cannot bounce out of your hands. Do not allow sparks and particles to fly towards other employees. Secure electrical extension cords--don t leave cords lying on the floor. 3.2.4 Grinding Procedures All employees operating grinders and working near a person using a grinder shall wear both ear plugs and ear muffs to protect against the high noise.

(E-04) HAND TOOL PROCEDURE The grinder operator shall insure that the RPM rating of the wire wheels, dics and stones are equal to/or greater then the RPM rating of the grinder. New discs and rocks are to be installed and a Ring test performed by authorized personnel only. Make smooth grinding contact with the work. Avoid bumping or impact action. Don t jam portable grinder into corners, etc.--the rock and disc may shatter. When grinders are not in use, they should be stored in a safe place. Never leave grinders lying around the shop floor where they are likely to be damaged. All grinders shall have guards installed as per the manufacturer s recommendations. Keep in mind that the most common causes of rock and disc breakage are: 1. Improper mounting of the rock and disc. 2. Improper speed. 3. Abusive operation. 4. Careless handling and storage. See that the wheel is properly dressed at all times. Do not use a wheel or disc with broken edges. The governor on each grinder should be checked once each month with a tachometer by an authorized employee. When using a grinder or power wire brush in the painting area, do not leave the tool where paint and dirt will get on or in it. When grinding tools and small parts on a stationary grinder do not wear gloves. Do not stand directly in front of a stationary grinder when first start up. The maximum clearance between the wheel and the tool rest is 1/8. Do not attempt to make any adjustments to the tool rest while the grinding wheel is in motion. If you think a grinder is running too fast or slower than normal, or appears to be defective in any way, report it immediately. If a wheel seems out of balance (indicated by excessive vibration in the grinder) replace the grinding wheel. Handle rocks and discs carefully to prevent dropping, bumping or any other action that is likely to cause damage. If a grinder is dropped or damaged take it to the tool room supervisor or work site supervisor immediately. Rocks and discs should be stored in a room not subject to extreme temperature changes. Keep in mind that dampness and extreme temperature changes may affect the bonding of the stone. Rocks and discs must be stored so as to protect them from shipping and breakage. Do not drop or throw a grinder on the floor as this may crack the rock or disc. Inspect rocks and discs daily for cracks and defects. Do not use rocks or discs with broken edges. Do not start a grinder with the rock or disc resting on the floor or on material.

(E-04) HAND TOOL PROCEDURE Never put a grinder down with the disc or rock still turning. Never operate a grinder or wire brush when holding onto the air hose or electrical cord only. NEVER BY PASS OR PUT OUT OF SERVICE ANY SAFETY DEVICE PROVIDED BY THE MANUFACTURER ON ANY POWER TOOL. 3.2.5 Chipping Gun Procedures All employees operating chipping guns and working near a person using a chipping gun shall wear both ear plugs and ear muffs to protect against the high noise. Inspect the chisels and the chipping gun daily before use. Turn in any defective equipment to the tool room supervisor or the work site supervisor for repair. Inspect the air hose for any loose connections. Keep hose out of the aisles and walkways and arrange them in orderly fashion to eliminate tripping hazards. Never point a chipping hammer at anyone. Never throw the tool down or use it as a hammer to remove chipped metal. Open air valves gradually on air hose or tools so as to avoid sudden kickbacks. Maintain safe footing and be sure that the material you are chipping is clamped or otherwise secured to prevent movement. When chipping tack welds apart, hold the chisel so that fingers will not be caught when the weld breaks. Do not weld on chipping guns.

(E-05) LARGE POWER TOOLS & MACHINES 1 PURPOSE This program provides the Operations Manager with the procedures to ensure the safety and health of personnel working with and maintaining hand tools. This program complies with 29 CFR 1910.212, Subpart O. 2 SCOPE This program covers all Versabar, Inc. employees, customer employees, contractor employees, vendor employees and visitors that enter on to Versabar property and / or work sites. 3 PROCEDURES 3.1 General Use tools and machines only for the purpose for which they are designed. Inspect tools and machines daily for defects. Tools and machines that are damaged must not be used. Lock Out and Tag this equipment Out of Service. Never play with tools or machinery. Keep all tools and machinery in proper working condition. Make no repairs to electric tools. Return the tool to the Supervisor for repair. Never yank on an electric cord to unplug it. Never use electric powered tools or machinery with wet hands or when standing on a wet surface. Protect electric cords, welding hoses, hydraulic hoses and air hoses to prevent damage and stumbling hazards. All electric tools and machinery must be grounded. Never point a compressed air hose or tool at anyone. Never use compressed air to dust clothing, or for cleaning floors. Never stand over an air hose. If an air hose breaks, do not go near it or attempt to grab it until the air pressure is shut off. Clamp or otherwise secure material before attempting to ream, drill, mill, grind, etc. 3.2 Personal Protective Equipment As protection from chips and dust, a face shield and safety glasses with side shields or goggles shall always be worn when using power tools or machines. A sign shall be posted at each powered tool station requiring the wearing of a face shield and safety glasses with side shields or goggles. Page (E-05)(1) Last printed 10/10/2008 9:55:20 AM Last Updated 10/10/2008

(E-05) LARGE POWER TOOLS & MACHINES Wear work gloves when buffing, grinding or chipping. All buffers, grinders and chippers shall have guards. Most buffers, grinders and chippers produce noise above 100 Decibels at the operator s ears. Hearing protection, both ear plugs and ear muffs, shall be worn at all times when buffing. This is to protect your hearing. Buttoned long sleeve shirts shall be worn when buffing, grinding or performing other types of work where sparks or hot metals are present. Wire particles can cause injury striking bare arms. Loose, torn or ragged clothing creates a special hazard when operating reamers and other machines with revolving spindles or cutting tools. Loose, torn or ragged clothing shall not be worn while working. 3.3 Drill Press Operating Procedures Review the written Work Order for the job, conduct a JSA meeting and wear the appropriate PPE. Review the pinch points involved in the job. Review the tool / machine emergency shut down system operation. Review any special conditions specific to this job. Assign each employee his/her specific work duties for this job. Clear the work area of all trash, debris and items not needed for the job. Lift the piece of stock onto the drill press table. If necessary, use Jib crane and / or get help. Position the stock so as not to drill into the drill press table. Clamp the stock in place on the drill press table. Use two or more clamps as needed. Place the clamp bolts as near to the stock as possible. Remove all non-essential equipment and tools from the work area. Only the tools needed for the job should be in the immediate work area. Select the proper drill bit and install the bit in the drill press. Select the proper drill rotation speed and the proper drill feed speed for the job. Line up the drill bit with the location of the hole to be drilled. Start the coolant pump. Start the drill press. Remember it only takes one hand to start the drill press. So Keep the other hand away from the rotating Tool. Engage the spindle and slowly lower the tool to the stock. Engage the drill feed. Page (E-05)(2) Last printed 10/10/2008 9:55:20 AM Last Updated 10/10/2008

(E-05) LARGE POWER TOOLS & MACHINES Stand Back and observe operation. At job termination disengage the drill feed and manually back the bit out of the stock. Turn off the drill press motor. Turn of the drill press coolant pump. Clean off the stock of any shavings. Remove the clamps from the stock and the table. Remove the stock from the drill press table. Clean the back side of the stock. Verify the drilled hole measurements and dimensions. Remove the completed stock to the holding area. Clean the work area. Start the next project. 3.4 Lathe Operating Procedures Review the written Work Order for the job, conduct a JSA meeting and wear the appropriate PPE. Review the pinch points involved in the job. Review the tool / machine emergency shut down system operation. Review any special conditions specific to this job. Assign each employee his/her specific work duties for this job. Clear the work area of all trash, debris and items not needed for the job. Measure the stock. Align the chuck. Make sure that the chuck is of the proper design for the job. Set the tail stock at the desired length as needed. Use mechanical lifting device (i.e. cherry picker, jib crane, etc.) to lift the stock into the lathe. Align the stock in the machine to needed specifications. Select the proper tool for the job and install it in the lathe. Set the lathe at the correct spindle rotation speed and feed speed for the tool. Adjust the tool to the proper position to start the job. Page (E-05)(3) Last printed 10/10/2008 9:55:20 AM Last Updated 10/10/2008

(E-05) LARGE POWER TOOLS & MACHINES Start the lathe. Remember it only takes one hand to start the lathe. So Keep the other hand away from the rotating Stock. Start the coolant pump (if necessary). Engage the lathe spindle. Engage the lathe tool feed. Stand back observe the operation. Make adjustments as needed. Continue machining the stock until the desired results are achieved. At job termination disengage and turn off the spindle feed. Turn off the off the spindle. Turn off the lathe. Turn off the coolant pump. Check all the measurements of the stock. Use a mechanical lifting device (i.e. cherry picker, jib crane, etc.) and secure it to the stock in the lathe. Loosen the chuck holding the stock. Use the mechanical lifting device (i.e. cherry picker, jib crane, etc.) to remove the stock from the lathe. Clean the stock and verify the stock measurements and dimensions. Remove the completed stock to the holding area. Clean the work area. Start the next project. 3.5 Horizontal Boring Mill Operating Procedures Review the written Work Order for the job, conduct a JSA meeting and wear the appropriate PPE. Review the pinch points involved in the job. Review the tool / machine emergency shut down system operation. Review any special conditions specific to this job. Assign each employee his/her specific work duties for this job. Clear the work area of all trash, debris and items not needed for the job. Page (E-05)(4) Last printed 10/10/2008 9:55:20 AM Last Updated 10/10/2008

(E-05) LARGE POWER TOOLS & MACHINES Determine the mounting method for the stock to be milled. Be sure to consider the limitations of the mounting brackets and the machine operation. If the stock is mounted improperly you will not be able to machine all the positions required without repositioning the stock. PLAN AHEAD. 5 Milling Machine: Additional supports are needed for any stock piece that weighs more then 20,000 lbs. 10 x 52 Milling Machine: Additional supports are needed for any stock piece that weighs more then 200 lbs. Get help and Use the mechanical lifting device (i.e. cherry picker, jib crane, etc.) to move the stock into position to mount on the mill. Secure the stock into the mounting position. Use as many clamps and back supports as needed to secure the stock. Remove all non-essential equipment from the work area. Select the proper tool for the job (i.e. - mill, bore, slab boring bar, etc.). Install the tool in the on the mill. Select and set the proper tool rotation speed and the proper tool feed speed. Adjust the tool alignment for the job. Start the coolant pump. Start the mill. Remember it only takes one hand to start the mill. So Keep the other hand away from the rotating tool. Engage the spindle. Engage the tool feed. Stand back observe the operation. Make adjustments as needed. At the job termination disengage the tool feed and manually back the tool away from the stock. Turn off the mill motor. Turn off the coolant pump. Get help and Use the mechanical lifting device (i.e. cherry picker, jib crane, etc.) to secure the stock in the mount on the mill. Clean the shavings from the stock. Check all the measurements of the stock. Remove the clamps holding the stock. Page (E-05)(5) Last printed 10/10/2008 9:55:20 AM Last Updated 10/10/2008

(E-05) LARGE POWER TOOLS & MACHINES Use the mechanical lifting device (i.e. cherry picker, jib crane, etc.) to remove the stock from the mill. Remove the completed stock to the holding area. Clean the work area. Start the next project. 3.6 200 Ton Press Operating Procedures Review the written Work Order for the job, conduct a JSA meeting and wear the appropriate PPE. Review the pinch points involved in the job. Review the tool / machine emergency shut down system operation. Review any special conditions specific to this job. Assign each employee his/her specific work duties for this job. Clear the work area of all trash, debris and items not needed for the job. Inspect all hydraulic hoses and fittings for possible damage and / or leaks. Repair all damage and / or leaks before applying pressure to the hydraulic system. Measure the stock. Determine the placement of the stock on the press and the working height of the machine. Get help and Use the mechanical lifting device (i.e. cherry picker, jib crane, etc.) to place the stock on the press. Install the any tool/s needed in the press. Turn on the press. Lower the press to the stock and apply a small amount of pressure to stabilize the tool/s on the stock. Check the tool placement for the proper alignment. Check for any potential hazards (i.e. stock being ejected, stock being moved by the press, etc.). Continue to move the press down on the tool/s forcing them into the stock piece, while maintaining a safe pressure on the tool/s. Observe the stock piece and tool/s for stability. At the job termination and the desired results are achieved, release the pressure on the press and raise the press to a safe height above the stock piece. Lock the press in the raised position. Turn off the press. Page (E-05)(6) Last printed 10/10/2008 9:55:20 AM Last Updated 10/10/2008

(E-05) LARGE POWER TOOLS & MACHINES Remove the tools. Get help and Use the mechanical lifting device (i.e. cherry picker, jib crane, etc.) to remove the stock from the press. Remove the completed stock to the holding area. Clean the work area. Start the next project. 3.7 18 and 20 Band Saw Operating Procedures Review the written Work Order for the job, conduct a JSA meeting and wear the appropriate PPE. Review the pinch points involved in the job. Review the tool / machine emergency shut down system operation. Review any special conditions specific to this job. Assign each employee his/her specific work duties for this job. Clear the work area of all trash, debris and items not needed for the job. Install the proper blade for the job. Select and set the proper blade speed and stock feed speed for the job. Get help and Use the mechanical lifting device (i.e. cherry picker, jib crane, etc.) to mount the stock on the table. Align the stock piece on the table. Secure the stock piece with vise and / or other means if necessary. Start the coolant pump. ***The coolant pump on the 20 saw will start automatically when the band saw is started. Start band saw. Remember it only takes one hand to start the band saw. So Keep the other hand away from the moving blade. Manually bring the blade up to the stock piece. Engage the stock feed. Observe the stock piece and the blade. At the job termination and the desired results are achieved, turn off the power to the saw blade motor. The coolant pump will stop automatically. Page (E-05)(7) Last printed 10/10/2008 9:55:20 AM Last Updated 10/10/2008

(E-05) LARGE POWER TOOLS & MACHINES Get help and Use the mechanical lifting device (i.e. cherry picker, jib crane, etc.) to remove the stock saw table. Inspect the stock piece for proper measurement and proper cut. Remove the completed stock to the holding area. Clean the work area. Start the next project. 3.8 Bench Grinder Operating Procedures The intended use of the bench grinder is to sharpen and reshape tools. This device is to be used to grind steel tools ONLY. No brass or aluminum devices will be worked on this grinder. Review the written Work Order for the job, conduct a JSA meeting and wear the appropriate PPE. Review the pinch points involved in the job. Review the tool / machine emergency shut down system operation. Review any special conditions specific to this job. Assign each employee his/her specific work duties for this job. Clear the work area of all trash, debris and items not needed for the job. Inspect the grinder before each job. Insure that the proper wheel is installed for the work to be done. The maximum RPM of the grinder must be equal to or less then the maximum RPM of the wheel installed. Any damaged wheels shall be removed from the grinder IMMEDIATELY. Start the grinder. Remember it only takes one hand to start the grinder. So Keep the other hand away from the rotating wheels. Hold the tool horizontal and 90 degrees to the rotation of the wheel. The tool must be held securely on the tool guide. When the tool is properly shaped or sharpened, turn off the grinder. Clean the work area. Start the next project. 3.9 48 Belt Sander Operating Procedures Review the written Work Order for the job, conduct a JSA meeting and wear the appropriate PPE. Review the pinch points involved in the job. Review the tool / machine emergency shut down system operation. Page (E-05)(8) Last printed 10/10/2008 9:55:20 AM Last Updated 10/10/2008

(E-05) LARGE POWER TOOLS & MACHINES Review any special conditions specific to this job. Assign each employee his/her specific work duties for this job. Clear the work area of all trash, debris and items not needed for the job. Inspect the sander before each job. Insure that the sandpaper installed is designed for the work to be done. The maximum RPM of the sander must be equal to or less then the maximum RPM of the sand paper belt installed. Any damaged belts shall be removed from the sander IMMEDIATELY. Start the sander. Remember it only takes one hand to start the sander. So Keep the other hand away from the rotating belts. Remember, any items with sharp edges may cut the sand paper and create a flying object hazard. When the device is properly shaped turn off the sander. Clean the work area. Start the next project. 3.10 48 Belt Sander with 12 Disc Device Operating Procedures Review the written Work Order for the job, conduct a JSA meeting and wear the appropriate PPE. Review the pinch points involved in the job. Review the tool / machine emergency shut down system operation. Review any special conditions specific to this job. Assign each employee his/her specific work duties for this job. Clear the work area of all trash, debris and items not needed for the job. Inspect the sander before each job. Insure that the sandpaper and the disc installed is designed for the work to be done. The maximum RPM of the sander must be equal to or less then the maximum RPM of the sand paper belt and the disc installed. Any damaged belts or discs shall be removed from the sander IMMEDIATELY. Start the sander. Remember it only takes one hand to start the sander. So Keep the other hand away from the rotating belts. Remember, any items with sharp edges may cut the sand paper and create a flying object hazard. The Disc is designed to work objects with sharp edges and corners. When the device is properly shaped turn off the sander. Clean the work area. Start the next project. Page (E-05)(9) Last printed 10/10/2008 9:55:20 AM Last Updated 10/10/2008

1 PURPOSE VERSABAR SAFETY MANAGEMENT SYSTEM (E-06) TEST MACHINE PROCEDURE This program provides the Operations Manager with the procedures to ensure the safety and health of personnel working with and maintaining the pull testing equipment. 2 SCOPE This program covers all Versabar, Inc. employees, customer employees, contractor employees, vendor employees and visitors that enter on to Versabar property and / or work sites. 3 PROCEDURES 3.1 General The Versabar pull testing processes are unique to the company and provide a very important service to our customers. The pull testing equipment is grouped into three (3) categories. The VJ Test Machine (Singapore) is designed to test any lifting or pulling device that has the following dimensions: length 108 feet or less; width or less; with a center of pull between 4 foot to 5 foot above the ground. The VT Test Machine (Big Chief) is designed to test any lifting or pulling device that has the following dimensions: length 168 feet or less (can be expanded to 200 feet with special adaptation); width 8 foot 6 inches or less; with a center of pull between 4 foot 6 inches and 5 foot 4 inches above the ground. The VS Test Machine is designed to test any lifting or pulling device that has the following dimensions: length 60 feet or less; width 3 foot 6 inches or less; with a center of pull between 1 inch and 3 inches above the floor. The VM Lift Test System is designed to test any lifting or pulling device that fits the weight restrictions of the VERSABAR cranes. These systems will normally be used to test the following types of equipment, but are not limited to those items listed: 1. Slings (wire rope and round nylon), 2. Spreader Bars, 3. Shackles, 4. Link Plates, 5. Hooks, 6. Turn Buckles, 7. Etc. 3.2 Hydraulics Maintenance for Test Systems Check the hydraulic fluid in the reservoir weekly for the proper level, Prior to operation of the system inspect for and report any leaks in hoses and/or fittings. All personnel must be in the designated Safe Area before / during testing.

(E-06) TEST MACHINE PROCEDURE 3.3 Personal Protective Equipment As protection from chips and dust safety glasses with side shields or goggles shall always be worn when not in the test machine control room. Cranes normally are very noisy and will require the wearing of Hearing protection while operating the crane. Safety Toe Boots are required in all Pull Test Areas. Hard Hats are required in all Pull Test Areas. Dress for the weather you will be working in with good serviceable clothing. Loose, torn or ragged clothing creates a special hazard when operating the crane and rigging the test machines. Loose, torn or ragged clothing shall not be worn while working. 3.4 Procedures for Operating the VT and VJ Test Systems The test systems shall always be locked out of service when the operator is not actually at the control panel and operating the machine. This is accomplished by placing the lock out cover over the ESD button on the control panel in the control room and locking the cover in place. Only the Test Machine Operators and the Test Supervisor shall have a key to the lock. Review the written Work Order for the job and conduct a JSA meeting. Verify that the crane operator and all of the riggers are currently qualified. Verify that communications (radios, hand signals, visual, etc.) are established and clear to all personnel. Inspect the slings to be used and verify that they are in good condition and have a current inspection date. Review the confined space restrictions of the test bed. Review the pinch points involved in the job. Review any special conditions specific to this job. Assign each employee his/her specific work duties for this job. Unlock and reset the ESD button in the run position on the control panel. The Test Machine Operator must maintain station at the control panel at all times while the ESD button is in the run position and / or unlocked. Position the Dead End at the proper stop for the length of the pull. Install the end piece pull linkages starting with the primary linkage first followed by each reducer one at a time from the largest to the smallest. Rig the equipment to be tested with the proper sized slings. Move the crane into proper radius position prior to installation of the load into the test bed.

(E-06) TEST MACHINE PROCEDURE Attach the equipment rigging to the crane and lift the equipment into the test bed. No personnel will be inside the test bed until the equipment is lowered onto the ground or in position to be connected to the live and dead ends of the pulling mechanism. Connect the equipment to the pulling ends of the test bed. This is a confined space work area and there is danger of pinch point injury. All personnel must exit the inside of the test bed and move to the designated safe area. The Safe Area shall be determined by the Test Supervisor. Conduct the Standard Pull Test Start the hydraulic pump and manually bring the pressure up to the desired test load pressure. Hold the test load pressure for one (1) minute or as per the client s requirements. If you are testing slings lower the pressure to the rated maximum safe working load. Shut down the hydraulic pump: 1. Depress the Pump Stop button and 2. Depress the ESD button to the shut in position and lock in place. The appropriate number of employees will enter the test bed to: 1. Measure and Record the sling length, 2. Check for broken wires and other sling damage, 3. Paint the proper Color Code on the sling swedge. 4. Re-stamp identification number if needed and apply spiral identification tag. Remove all personnel from the test bed. Unlock and reset the ESD button. The Test Machine Operator must maintain station at the control panel at all times while the ESD button is in the run position and / or unlocked. Retract the rams. Shut down the hydraulic pump: 1. Depress the Pump Stop button and 2. Depress the ESD button to the shut in position and lock in place. Record test data. Remove the equipment being tested from the Test Bed. Verify that the hydraulic pump is shut in and locked. Depress the Pump Stop button and Depress the ESD button to the shut in position and lock in place.

(E-06) TEST MACHINE PROCEDURE Move the live end of the test machine to the release position. This is accomplished by rigging the crane to pull the live end. Have employees enter the test bed and remove the pins or the bushings and the pins. All personnel are removed from the inside of the test bed and to the designated Safe Area. Use the Crane to lift the tested equipment out of the test bed. Lower the tested equipment to a safe location and rig down from the crane. Remove the slings from the tested equipment. Secure the area and the test machine or start another test procedure. Special client requests will require the issuance of a work order by the designated Versabar engineer. 3.5 Procedures for Operating the VS Test System The test systems shall always be locked out of service when the operator is not actually at the control panel and operating the machine. This is accomplished by placing the lock out cover over the ESD button on the control panel in the control room and locking the cover in place. Only the Test Machine Operators and the Test Supervisor shall have a key to the lock. Review the written Work Order for the job and conduct a JSA meeting. Verify that the crane / cherry picker operator and all of the riggers are currently qualified. Verify that communications (radios, hand signals, visual, etc.) are established and clear to all personnel. Inspect the slings to be used and verify that they are in good condition and have a current inspection date. Review the confined space restrictions of the test bed. Review the pinch points involved in the job. Review any special conditions specific to this job. Assign each employee his/her specific work duties for this job. Unlock and reset the ESD button in the run position on the control panel. The Test Machine Operator must maintain station at the control panel at all times while the ESD button is in the run position and / or unlocked. Position the Dead End at the proper stop for the length of the pull. Install the end piece pull linkages starting with the primary linkage first followed by each reducer one at a time from the largest to the smallest. Rig the equipment to be tested with the proper sized slings. Move the crane / cherry picker / chain hoist / lifting personnel into position to lift the equipment into the test bed.

(E-06) TEST MACHINE PROCEDURE Attach the equipment rigging to the crane and lift the equipment into the test bed. No personnel will be inside the test bed until the equipment is lowered onto the ground or in position to be connected to the live and dead ends of the pulling mechanism. Connect the equipment to the pulling ends of the test bed. This is a confined space work area and there is danger of pinch point injury. All personnel must exit the inside of the test bed and move to the designated safe area. The Safe Area shall be determined by the Test Supervisor. Conduct the Standard Pull Test Start the hydraulic pump and manually bring the pressure up to the desired test load pressure. Hold the test load pressure for one (1) minute or as per the client s requirements. If you are testing slings lower the pressure to the rated maximum safe working load. Shut down the hydraulic pump: 1. Depress the Pump Stop button and 2. Depress the ESD button to the shut in position and lock in place. The appropriate number of employees will enter the test bed to: 1. Measure and Record the sling length, 2. Check for broken wires and other sling damage, 3. Paint the proper Color Code on the sling swedge. 4. Re-stamp identification number if needed and apply spiral identification tag. Remove all personnel from the test bed. Unlock and reset the ESD button. The Test Machine Operator must maintain station at the control panel at all times while the ESD button is in the run position and / or unlocked. Retract the rams. Shut down the hydraulic pump: 1. Depress the Pump Stop button and 2. Depress the ESD button to the shut in position and lock in place. Record test data. Remove the equipment being tested from the Test Bed: Verify that the hydraulic pump is shut in and locked: 1. Depress the Pump Stop button and 2. Depress the ESD button to the shut in position and lock in place.

(E-06) TEST MACHINE PROCEDURE Move the live end of the test machine to the release position. This is accomplished by rigging the crane to pull the live end. Have employees enter the test bed and remove the pins or the bushings and the pins. All personnel are removed from the inside of the test bed and moved to the designated Safe Area. Use the Crane to lift the tested equipment out of the test bed. Lower the tested equipment to a safe location and rig down from the crane. Remove the slings from the tested equipment. Secure the area and the test machine or start another test procedure. Special client requests will require the issuance of a work order by the designated Versabar engineer. 3.6 Procedures for Operating the VM Test System Review the written Work Order and conduct a JSA Meeting. Move the crane to the proper radius position prior to installation of load into the test bed. Attach the weight indicator to the lift line on the crane. Rig up the equipment to be tested with the proper slings. Install the anchor slings on the Test Machine to provide anchor for the pull test, Or Install the anchor slings to the special weights to provide anchors for the pull test. Attach the equipment to be tested to the anchors. All personnel except the crane operator are to be removed from the test area to the designated Safe Area. The Test Supervisor shall determine the designated Safe Area. The crane operator will slowly lift the load to apply pulling pressure on the equipment to be tested, while constantly monitoring the weight indicator. When the Test weight is reached the lift shall be maintained at that weight for one (1) minute or for the time period requested by the client. When the test is completed, the crane operator shall lower the load so that it can be detached from the anchor. When the tested equipment is released from the anchor, the crane operator shall move the tested equipment to a safe area and the equipment shall be detached from the crane. Record the Test Data.

(E-06) TEST MACHINE PROCEDURE Start the next test or secure the crane and rigging equipment. 3.7 RECORDS The Test Data records, JSA meeting minutes, Work Order and another pertinent information shall be collected in a Job File and maintained for the client and future jobs.

1 PURPOSE VERSABAR SAFETY MANAGEMENT SYSTEM (E-07) MATERIAL HANDLING These procedures provide the Operations Manager with the ability to insure that all employees involved in handling material are protected from the hazards of the material handling. These procedures meet or exceed the requirements of OSHA Regulations Materials Handling, 29 CFR 1910.176; Forklift Operations, 29 CFR 1910.178; Overhead and Gantry Cranes, 29 CFR 1910.179; Crawler & Truck Cranes, 29 CFR 1910.180; Slings, 29 CFR 1910.184, ASME B30.9c-2000 and ASME B30.20a-1999. 2 SCOPE This section applies to all Versabar, Inc. facilities, vehicles, boats, barges and work sites. 3 PERSONAL MATERIAL HANDLING 3.1 General Evaluate the load--weight, size, center of gravity, shape, sharp edges. Can you see over and/or around the load? In a choice between injury to yourself or equipment, save yourself. But remember, if you plan your work and follow the correct procedures, you won t have to make the choice. The maximum lifting load limit for one employee shall not exceed 50 pounds. Mentally select the best travel path, Don t Rush. Decide if you need help before you start to lift a load. If in doubt--get help. Use another person or mechanical equipment, for example: forklift, crane, dolly, etc. Use the proper body position, as determined by the size and shape of the load. (See One Person Carries and Multiple Person Carries below) Wear gloves when handling rough or jagged edged objects. Versabar would prefer that employees wear gloves 100% of the time while handling material. There will be the rare situation where the gloves could cause more problems. 3.2 One Person Carry NEVER LIFT MORE THAN 50 POUNDS WITHOUT ASSISTANCE. Squat--Don t stoop or bend from the waist, keep back straight. Place your right foot parallel to one edge of the box (opposite, if you re left handed.) Place your left hand on the corner of the box or as far as is comfortable. On circular or irregularly shaped objects place your left hand at a point comfortable for you.

(E-07) MATERIAL HANDLING Place your right hand along or under the edge of the container (tip the container slightly to get your grip.) With your back straight, lift up using your leg muscles NOT your back muscles! Walk slowly--to change directions, stop, then turn your feet in the direction you wish to go. Don t turn your body at the waist. Lean back slightly as you travel. To place the object down without injury; Stop walking. Keep you back straight. Move your left foot back slightly. Squat down, taking the strain on your leg muscles. Let the front left point of the container or its front edge rest on the ground; slip your right hand up from under the right side of the container and lower the container flat on the floor/ground. Stand up smoothly KEEPING YOUR BACK STRAIGHT!! 3.3 Multiple Person Carry Decide on a leader to give directions, set the pace, etc. Follow the techniques for body positioning as just discussed in One Person Carry above. 4 FORKLIFT OPERATING PROCEDURES 4.1 General Forklift Operators must be Versabar certified before being allowed to operate a forklift. Forklifts must be inspected prior to operating. The pre-use inspection must be done at least daily or at the beginning of each shift. Employees must use the form, Versabar Forklift Daily Inspection Checklist. Operator must know the rated load capacity of his/her forklift and never exceed it. Operator must know the weight of the object and center of gravity before picking it up with the forklift. When picking up a load, drive the forks directly under the center of the load as far as they will go. Adjust distance between forks to best suit the load to be lifted in order to prevent any deformation of load and for greatest possible stability. The design of the forklift is based on a stability triangle. The front axle, with its drive wheels, acts as the base of the triangle and supports the weight of the load. The sides of the stability triangle meet at the point where the forklift steers, either at a single wheel or in the middle of the steering axle on four-wheel models. Keeping the downward force of the load (center of gravity) within the stability triangle keeps the forklift stable and keeps the load from crashing to the ground.

(E-07) MATERIAL HANDLING Allowing the load to move outside the stability triangle makes both the truck and the load less stable and subject to tipping, rolling or dropping the load. Your forklift and load become less stable: Whenever the load is raised When you are turning on slopes, wither front-to-back or side-to-side When tilting the load forward or backward, or side-to-side On rough or uneven surfaces. Drive the load about 2 to 4 above the floor level so that there is less chance of overturning. Don t ride the clutch pedal when driving, as this will cause the clutch to slip and wear (manual transmission only.) When hoisting or tilting, either shift into neutral or depress clutch pedal all the way to the floor. When moving, it is advisable that the load be tilted back toward the center of the forklift. The driver shall drive with caution. Outside of the shops on the uneven ground beware of holes. When depositing highly elevated loads, be sure the forklift is as close to the stacked material as possible and that the brakes are applied before tilting the load forward. The machine should be operated in reverse when going down ramps or ditches with a load or when visibility is poor due to a bulky load on the forks. Keep watch on all clearances; front, back, top and sides. Inspect a stacked load before you move it; be sure it will not spill. Avoid steering when forklift is standing still; the slightest travel speed on the forklift will save wear on steering linkage. Always shut off the ignition when changing LPG fuel cylinders. Make sure that all connections on fuel lines are tight before starting the engine. Place empty cylinders in designated storage areas. The forks on the forklift should be lowered to the floor level when not in use. Acetylene or other gas cylinders must always be transported and stored in an upright position and in proper racks with the valves off and the bottle caps on. Skids & stacking racks in poor condition should not be used in hauling material. Riding on forks of forklift is prohibited at all times. Do not block aisles with material. Partially blocked aisles make it necessary for lift forklift to raise heavy loads while driving down the aisles.

(E-07) MATERIAL HANDLING Stunt driving and horseplay at any time will not be permitted. Padeyes shall be visually inspected (for deterioration, cracks, deformation, etc.) on all loads prior to each lift. All padeyes on all equipment shall be non-destructively tested (x-ray, magna flux, UT, etc.) at least once every year and whenever a visual inspection indicates deterioration, deformation, cracks, etc. 4.2 Driver Qualification and Responsibilities All forklift operators shall be trained, qualified and authorized in accordance with the Versabar Forklift Operators Program before operating a forklift on Versabar property and /or work sites. The forklift operator shall conduct a visual inspection of their forklift prior to beginning their shift each day. The Forklift Operator s Inspection Form shall be used for this purpose. If a condition is found during this inspection that adversely affects the safety of the forklift operation, the forklift shall not be used until the condition is corrected. Once a week this form will be filed in the vehicle maintenance file. These records will be maintained for two (2) years. Check the oil and water at the beginning of each shift. Report all mechanical defects of your vehicle promptly to your foreman. Do not overload your machine, check capacity plate. Continuously observe the gauges in the instrument panel to be sure they indicate a normal condition. Be sure that work platforms are securely anchored to the forks of the forklift before being raised. Avoid bumping into objects and be sure that your feet and legs are inside the running lines of your vehicle. Before dismounting or leaving the forklift, always shut off the ignition and apply the hand brake. Do not leave the forklift unattended with the motor running. 4.3 Forklift Maintenance The Manager shall maintain a Forklift Maintenance File in the facility office. This file shall contain a record of all maintenance conducted on the vehicle. The forklift operator shall conduct a visual inspection of their forklift prior to beginning their shift each day. The Forklift Operator s Inspection Form shall be used for this purpose. If a condition is found during this inspection that adversely affects the safety of the forklift operation, the forklift shall not be used until the condition is corrected.

(E-07) MATERIAL HANDLING Once a week the Forklift Operator shall file this form in the vehicle maintenance file. These records will be maintained in the facility office for two (2) years. 5 CRANE OPERATING PROCEDURES 5.1 Qualified Personnel Cranes shall be operated only by the following qualified personnel: 1. Designated Operators possessing a current VERSABAR Class A crane operator s card; 2. Trainees operating under the direct supervision of a Designated Operator; 3. Qualified maintenance and test personnel (when it is necessary in the performance of their duties); 4. Qualified Crane Inspectors. No other person shall enter the crane cab or be at the controls. 5.2 Qualifications Required All crane operators, crane maintenance personnel, crane test personnel and crane inspectors shall successfully pass a written examination and practical operating examination on each crane that they intend to operate. The Operator must demonstrate proficiency in operating, controlling and minimum knowledge of the construction and operation of the specific crane. The Operator will demonstrate complete knowledge of standard crane signals. All Crane Operator training shall be in compliance with the current issue of the API RP 2D, Fourth Edition. All crane operators, crane maintenance personnel, crane test personnel and crane inspectors shall meet the following physical qualifications: 1. Vision of at least 20/30 Snellen in one eye and 20/50 Snellen in the other eye with or without corrective lenses; 2. Have the ability to distinguish colors, regardless of position; 3. Have the ability to hear and understand verbal instructions with or without hearing aids; 4. Have sufficient strength, endurance, agility, coordination and speed of reaction to meet the demands of the crane being operated. Evidence of physical defects or emotional instability which could render a hazard to the operator or others, or which in the opinion of the examiner could interfere with the operator s performance, shall be cause of disqualification. Evidence that an operator is subject to seizures or loss of physical control shall be sufficient reason for disqualification.

(E-07) MATERIAL HANDLING Each crane operator shall pass a basic crane operator s school before being permitted to (OJT) operate a crane under the direct supervision of a Versabar Class A Crane Operator. Each crane operator shall successfully pass a refresher course on crane operations at least once every four (4) years from the date of their Versabar Class A Operator s Card. 5.3 Conduct of Operators Each crane operator must have in their possession at the work site a certified copy of their Versabar Class A Crane Operator s card. The operator shall not engage in any practice, which will divert his/her attention while actually engaged in operating the crane. When physically or mentally unfit, an operator shall not operate a crane. The operator shall respond to signals from the appointed signal person. The operator shall be responsible for all operations under his/her control. The operator shall obey the STOP signal given by anyone. Before leaving the crane unattended, the operator shall: 1. Land any load, bucket, lifting magnet or other device; 2. Disengage the master clutch; 3. Set the travel, swing, boom brakes and any other locking devices; 4. Put the controls in the off or neutral position; 5. Secure the crane against accidental travel; and 6. Stop the engine. If there is a warning indicator on the control panels / displays, the operator shall not start the crane engine until the warning indication has been removed by a designated maintenance person. Before starting the crane engine, the operator shall insure that all controls are in the neutral position. The operator shall be knowledgeable of the proper operation and care of the crane. If any abnormalities arise, the operator shall shut down the crane and report the problem. The crane is not to be operated until the abnormality has been corrected. The operator shall visually inspect the crane and physically check the controls operation each time the crane engine is started. The operator shall know the weight of each load before making a lift. The crane shall not be loaded beyond the specifications of the load rating chart. The Crane Operator shall not operate the crane unless these items are installed and operating properly:

(E-07) MATERIAL HANDLING 1. A horn that can be heard above the noise of the running crane engine and background noise, 2. A boom angle indicator, 3. A weight indicator on the main lift line, and 4. An anti-two Block device on each lift line (necessary when lifting personnel). Designated signal person must be used when making a lift. Tag lines must be attached prior to making the lift. Tag lines should be used unless they will present more of a hazard. Tag lines are to be used as the load is being lifted until it reaches approximately 4 feet in the air and when landing the load but not until it reaches approximately 4 feet above the ground. No one should ever be under the load. A Tailgate meeting shall be conducted before the lift to discuss the requirements of the lift and to review the procedures to be used. All persons to be lifted, the designated signal person, the Manager and the crane operator shall be in active attendance. 5.4 Conduct of Operators (PERSONNEL LIFTS -- ONSHORE) Cranes are designed and intended for the handling of materials. No crane function shall be performed while a person is on the hook, load or boom. Personnel lifts shall only be made with cranes that are equipped with special equipment designed and approved specifically for lifting and / or transferring personnel. The crane shall be maintained and operated as per the requirements of the current editions of the API RP 2 D and 2 C. Each situation can and usually does present its own unique challenges. The following minimum requirements for personnel lifts are NOT a complete and all inclusive set of procedures. 5.4.1 Procedures for Lifting Personnel The Manager shall determine that there is no practical alternate way to perform the needed work and authorize its usage. Before lifting personnel the crane shall be inspected using the Overhead Crane Daily Checklist. The lift shall be made under controlled conditions and under the direction of a designated signal person. A Tailgate meeting shall be conducted before the lift to discuss the requirements of the lift and to review the procedures to be used. All persons to be lifted, the designated signal person, the Manager and the crane operator shall be in active attendance. The operator and signal person shall conduct a test lift.

(E-07) MATERIAL HANDLING Communication between the personnel being lifted, the signal person and the crane operator shall be maintained throughout the lift. The crane shall not be operated unless an automatic crane alarm and lift line stop device is and in -service to warn of and prevent a Two-Block condition from developing. The crane shall be operated so that the lifting platform s downward travel is power controlled, NO FREE FALL OPERATION. When welding is done by an employee on the lifting platform, the electrode holders shall be protected from contact with the metal components of the platform. Employees on the lifting platform shall wear safety harnesses with lanyards attached to the lifting line, preferably above the hook or shackle. (An exception to this requirement is in place for personnel transfers from boat to structure and from structure to boat. Only approved personnel transfer nets/baskets may be used for this procedure.) The operator shall remain at the controls the whole time that the personnel lifting platform is suspended. When lifting and lowering the personnel lifting platform, the operator shall control the speed and it shall not exceed 100 ft/min. (0.51 m/s). Mobile cranes shall not travel while personnel are on the lifting platform. The total weight of the load (lifting platform, equipment and personnel) shall not exceed 1/3 the static rated load capacity of the crane at the specific boom angle. The Personnel Lifting Platform shall be designed and constructed as per ANSI/ASME B30.5, Section 5-3.2. 6 CRANE OPERATING SIGNALS Standard signals to the operator shall be in accordance with the standards prescribed in ANSI/ASME B30.5, Section 5-3.3.2.

(E-07) MATERIAL HANDLING

(E-07) MATERIAL HANDLING

(E-07) MATERIAL HANDLING

(E-07) MATERIAL HANDLING 7 OVERHEAD CRANE OPERATING PROCEDURES Cranes shall be operated only by the following qualified personnel: 1. Designated operators; 2. Trainees operating under the direct supervision of a designated instructor; 3. Qualified maintenance and test personnel (when it is necessary in the performance of their duties); 4. Qualified crane inspectors. The crane shall be maintained and operated as per the requirements of the current editions of the API RP 2 D and 2 C. The operator shall not engage in any practice, which will divert his/her attention while actually engaged in operating the crane. When physically or mentally unfit, an operator shall not operate a crane. The operator shall respond to signals from the designated signal person ONLY. The operator shall be responsible for all operations under his/her control. The operator shall obey the STOP signal given by anyone. If any abnormalities arise, the operator shall shut down the crane and report the problem. The crane is not to be operated until the abnormality has been corrected. The operator shall visually inspect the crane and physically check the controls operation at each time the crane engine is started. The operator shall know the weight of each load before making a lift. The operator shall not load the crane beyond the specifications of the load rating chart. The hoist wire rope shall be free from kinks or twists and shall not be wrapped around the load. The load shall be attached to the load block hook by means of slings or other approved devices. The hook shall be brought directly over the load so as to prevent the load from swinging when lifted. Cranes shall not be used for side pulls as this practice can cause the crane to be over stressed. NO ONE shall ride or be lifted by the hook, slings, load or any other part of the crane. The operator shall test the brakes each time a load is handled.

(E-07) MATERIAL HANDLING NEVER LIFT A LOAD OVER YOURSELF OR OTHER EMPLOYEES. When the load approaches other employees, the operator will stop the crane and sound a warning. The load will not be moved until all personnel have been removed from the travel path of the lift. The load shall not be lowered beyond the point where five full raps remain on the lift hoist drum. When two or more cranes are used to lift a load, one qualified responsible person shall be in charge of the operation. All personnel involved in the lift will actively participate in a Pre-Lift / JSA meeting prior to the lift being attempted. The person in charge shall analyze operation and instruct all personnel involved in the proper positioning, rigging of the load and the movements to be made. The operator shall not leave the controls while the load is suspended. 8 CRANE INSPECTIONS 8.1 Daily and Annual Crane Inspection Procedures All cranes shall be inspected as per the requirements of the current edition of API RP 2 D and 2 C. ALL adjust / replace conditions are to be reported to the unit manager immediately. The crane is to be removed from service until the condition(s) are corrected. The daily inspection shall be recorded on the Overhead Crane Operators Daily Checklist for all overhead cranes. Each crane operator shall visually inspect the crane and functional check the controls operation upon each use. The annual inspection shall be recorded on the Overhead Crane Annual Inspection Report. This complete inspection will be done by a third party at least once each year. The following items shall be inspected for defects at intervals as defined above or as specifically indicated, including observation during operation for any defect which might appear between annual inspections. All deficiencies such as those listed below shall be carefully examined and corrected: All functional operational mechanisms for maladjustment interfering with proper operation shall be checked daily and corrected immediately. Deterioration or leakage in lines, tanks, valves, drain pumps, and other parts of air or hydraulic systems shall be checked daily and corrected immediately. An inspection of the bridge and trolley with special attention give to bolted components shall be performed weekly and problems corrected immediately.

(E-07) MATERIAL HANDLING Hooks shall be visually inspected daily and annually for any deformation and / or cracks. Hooks with cracks or having more that 15% in excess of normal throat opening or more than 10% twist from the plane of the unbent hook shall be removed from service and replaced. Chains, wire rope and other rope lifting lines shall be inspected daily and annually for deterioration, cracks, deformation, broken strands, etc. CHAINS SHALL NEVER BE USED FOR THE LIFTING OF OFFSHORE LOADS. Padeyes shall be visually inspected (for deterioration, cracks, deformation, etc.) on all loads prior to each lift. All padeyes on all equipment shall be non-destructively tested (x-ray, magna flux, UT, etc.) at least once every year and whenever a visual inspection indicates deterioration, deformation, cracks, etc. Annually, a qualified third party crane inspector shall conduct an operational inspection and load test of each crane. The qualified crane inspector shall certify the load capabilities and the operational condition of each crane. Documentation of these certifications shall be maintained in the individual crane maintenance files for five (5) years. 9 CRITICAL LIFT PLAN A critical lift is defined as any lift at or above 80% of the load chart, a lift using multiple cranes, a lift using mats, a lift near power lines, and/or a lift over significant equipment. 10 SLINGS OPERATING PROCEDURES 10.1 GENERAL The certification tag must be attached to all slings in use. If the tag is missing the sling must immediately be red tagged, taken out of service and recertified or destroyed. Slings that are unsafe shall not be used. Slings shall not be exposed to temperatures in excess of the manufacturer s recommendations. A sling shall be used that is long enough to provide the maximum practical angle between the sling leg and the horizontal (minimum practical angle at the crane hook if vertical angles are used.) Slings shall not be shortened with knots, bolts, or similar methods. Twisting and/or kinking the legs of a sling are prohibited.

(E-07) MATERIAL HANDLING A sling shall not be loaded in excess of its rated capacity. The load shall be centered in the base (bowl) of the hook to prevent point loading. Slings used in a basket hitch shall have the load balanced to prevent slippage. A sling shall be padded or protected from the sharp edges of its load. Hands and fingers shall not be placed between the sling and its load. Each sling shall be securely hitched to its load. The load shall be free to move before lifting and shall be kept clear of all obstructions. Shock loading shall be avoided. All personnel must stand clear of a suspended load. A sling shall not be pulled from under a load when the load is resting on the sling. Rigging equipment not in use shall be removed from the immediate work area so as not to present a hazard to employees. All slings that do not pass inspection shall be destroyed in this manner: Cut the sling, cut the sling eyes and dispose of the sling. NO chain slings shall be used on offshore lifts or on loads going offshore. All slings shall be visually inspected before each use by the rigger and the crane operator. All slings shall be successfully inspected each month by the Manager or designee. The VERSABAR Sling Inspection Report shall be used as a checklist to inspect each sling. The results of the monthly sling inspections shall be recorded on the VERSABAR Sling Inspection Log. Slings and rigging equipment should be returned to proper place when not in use. 10.2 WIRE ROPE SLINGS INSPECTIONS Inspection should be performed only by persons with sufficient experience and knowledge to properly apply the following criteria for rejection when examining a given sling. This is particularly important, since each of the 11 items listed depends to some extent upon the judgment of the inspector. The following should be considered criteria for rejection:

(E-07) MATERIAL HANDLING 1. Six randomly distributed broken wires in one rope lay or three broken wires in one strand in one rope lay. Snagged, nicked or severely bent wires count as broken wires. It is recommended that any sling with any broken wires should be taken out of service and returned to the manufacturer for recertification. 2. Abrasion, scrubbing or peeling causing loss of more than 1/3 the original diameter of outside individual wires. 3. Evidence of wire rope deterioration from corrosion. 4. Kinking, crushing or other damage that results in detrimental distortion of the wire rope structure. 5. Any evidence of heat damage including bare conductor, ground or welding arc. 6. Any marked reduction in diameter either along the entire main length or in one section. 7. Wire rope slings that are manually spliced. 8. Core protrusion along the main length. 9. End attachments that are cracked, deformed, worn or loosened. 10. Any indication of strand or wire slippage in end attachments. 11. More than one broken wire in the vicinity of a zincedon or swaged fitting. All slings that do not pass inspection shall be destroyed in this manner: Cut the sling, cut the sling eyes and dispose of the sling. 11 EQUIPMENT / LOAD BINDER PROCEDURES Load binders are commonly used on trucks, supply boats and lift boats to secure the load to prevent the load from shifting / moving while the truck or boat is in motion. Caution must be used when securing a load before shipment and when releasing the binder when removing the load from the truck or boat. Truck drivers should secure and unsecure the load on the back of their truck. The driver of each truck shall insure that each load is secure on his / her truck prior to departing the shipping yard. The Captain of a vessel shall insure that each load is secure on his or her boat prior to departing the shipping dock / platform / location.

1 PURPOSE VERSABAR SAFETY MANAGEMENT SYSTEM (E-08) OFFICE OPERATING PROCEDURE These procedures provide the Operations Manager with the ability to ensure the safety and health of personnel while working in an office environment. This program complies with 29 CFR 1910, Subpart D Walking Working Surfaces, 29 CFR 1910, Subpart E Means of Egress, 29 CFR 1910, Subpart J General Environmental Controls, 29 CFR, Subpart L Fire Protection. 2 SCOPE This program covers all Versabar employees, customer employees, contractor employees, vendor employees and visitors that enter on to Versabar property and / or work site. 3 PROCEDURES 3.1 FIRE PREVENTION All Versabar office spaces and bunkrooms are designated as NO SMOKING areas. Smoking is allowed only in areas designated by the Operations Manager. Keep the areas around heat producing equipment (i.e. copiers, computers, word processors, etc.) clear of all combustible and flammable material. Electrical appliances are fire hazards when left unattended. Be sure to turn off all appliances at the end of the day. Keep extension cords in good condition. Do not connect more than one (1) electrical device to one (1) extension cord. The most frequent cause of office fires is arson. Report any suspicions and / or suspicious persons. Know the Emergency Action Plan for your building. Fire extinguishers are provided in all areas of each building. These units are to be used on small fires that can be extinguished quickly. If you are not trained in the use and operation of fire extinguishers, do not attempt to put out a fire. Give the alarm and evacuate. Keep all walkways and exits clear and well marked with exit signs that will light when the power is lost. Stay Alert to the work and people around you. 3.2 SLIPS, TRIPS AND FALLS Good house keeping is the best and most sure method of preventing slips, trips and falls in the work place. Being alert to the activity around you will allow you to see the hazard before it becomes an injury. Close drawers completely after every use. Secure electrical cords and wires away from walkways and work areas. Avoid bending, twisting and leaning backward while seated. Page (E-08)(1) Last printed 10/10/2008 9:56:46 AM Revision Date 9/1/04

(E-08) OFFICE OPERATING PROCEDURE Always use a stepladder for overhead reaching. Clean up spills immediately. Make sure that working and walking areas have sufficient lighting. Do not stack materials in such a way as to cause an avalanche into the working or walking areas. 3.3 GENERAL Adjust the lighting and computer video screens to protect your eyes from strain. Follow the requirements of Section (E-7) Material Handling of this manual, whenever lifting any objects. Adjust your body position so as to prevent strains to your back, wrists and other parts of your body. If a device is needed to improve your ergonomic working conditions, talk to your Supervisor or the HSE Department. While operating a computer or any other device with a video display tube, it is recommended that you take a short break every twenty (20) minutes and perform some simple exercises to prevent strain: Change focus by glancing across the room or look out the window and focus on objects that are at least twenty (20) feet away. Lightly cup your eyes with your palms and relax for sixty (60) seconds. Look away from the screen and roll your eyes up and down, around and side to side. Stay Alert to the work and the people around you. Page (E-08)(2) Last printed 10/10/2008 9:56:46 AM Revision Date 9/1/04

1 PURPOSE VERSABAR SAFETY MANAGEMENT SYSTEM (E-09) PAINTING & BLASTING These procedures provide the Operations Manager with the ability to ensure the safety and health of personnel while painting and coating. These procedures comply with 29 CFR 1910, Subpart D Walking Working Surfaces, 29 CFR 1910, Subpart G Occupational Health and Environmental Control, 29 CFR 1910, Subpart H Hazardous Materials, 29 CFR 1910, Subpart I Personal Protective Equipment, 29 CFR 1910, Subpart L Fire Protection, 29 CFR 1910, Subpart M Compressed Gas and Compressed Air Equipment, 29 CFR 1910, Subpart O Machinery and Machine Guarding. 2 SCOPE This program covers all Versabar employees, customer employees, contractor employees, vendor employees and visitors that enter on to Versabar property and / or work site. 3 PROCEDURES 3.1 FIRE PREVENTION All VERSABAR office spaces are designated as NO SMOKING areas. Smoking is allowed only in areas designated by the Operations Manager. Keep the areas around ignition producing sources clear of all combustible and flammable materials. Paint products shall be stored protected from direct sunlight and hot work activities. Each employee must know the hazards involved in working with the paints and thinners as outlined Section (D-04) HAZCOM of this manual. Know the Emergency Action Plan for your area. Fire extinguishers are provided in all areas of each facility. These units are to be used on small fires that can be extinguished quickly. If you are not trained in the use and operation of fire extinguishers, do not attempt to put out a fire. Give or active the alarm and evacuate. Adequate ventilation shall be provided when paint products are stored, prepared or applied. All electrical lighting and equipment shall be explosion proof. Solvents and paints shall not be applied to surfaces warmer than summer ambient temperatures. Gasoline shall never be used as a solvent for cleaning purposes. Keep all walkways and exits clear and well marked with exit signs. Stay Alert to the work and people around you. 3.2 GENERAL Adequate clothing and personal protective equipment shall be used. An approved respirator shall be used for spray painting.

(E-09) PAINTING & BLASTING Ventilation is necessary because nearly all solvent vapors (released from drying paint) are heavier than air. Natural ventilation is rarely sufficient to keep local vapor concentrations to a safe level. As a rule, forced ventilation should be used especially during spray painting. Good housekeeping is the best and most sure method of preventing slips, trips and falls in the workplace. Being alert to the activity around you will allow you see to the hazard before it becomes an injury. Always use scaffolding or man lift for work above six (6) feet. Clean up spills immediately. If you have any exposed cuts or sores, be sure that they are properly treated before you start work. Adjust your body position so as to prevent strains to your back, wrists and other parts of your body. If a device is needed to improve your ergonomic working conditions, talk to your Supervisor or the HSE Department. Stay Alert to the work and people around. Do not keep any food with your working clothes. Do not eat, smoke or chew while painting or while in the paint application area. Spray painters must not spray toward each other or where there is any possibility of spray or vapor striking the head or face of any other person. When airless spraying, the nozzle tip must not be allowed to contact any part of the body. When cleaning up the gun, be sure that the pressure is cut off so that any accidental tripping of the trigger will not cause an injury. Never point an air hose at another employee or use compressed air to clean your self or your clothing. Inspect your paint and spray equipment before each use. Tag and take out of service any equipment that is in need of repair and turn it in to your work site supervisor. 3.3 ABRASIVE BLASTING Abrasive blasting and painting activities shall be planned to avoid contamination to other employees and nearby facilities. The sandblasting operator shall wear an air-supplied hood approved for abrasive blasting. The hood should cover the wearer s head, neck, and shoulders to protect him from rebounding abrasive. Employers must use only respirators approved by the NIOSH under 42 CFR Part 84.

1 PURPOSE VERSABAR SAFETY MANAGEMENT SYSTEM (E-10) OFFSHORE PROCEDURE This program provides the Operations Manager with the procedures to ensure the safety of personnel and to minimize the likelihood of employee injuries caused by hazards in the offshore or over water work place. This program is in compliance with OSHA regulation 49 CFR 172.802, Minerals Management Service regulation 30 CFR 250, Subpart O, U.S. Coast Guard regulation 33 CFR. The personnel working offshore are considered Safety Sensitive Positions by Federal law (68 Fed. Register 1451, march 25, 2003). 2 SCOPE This section applies to Versabar employees and Versabar subcontractors working offshore. 3 PROCEDURES 3.1 Safety Sensitive Positions The U.S. Coast Guard requires the following General Security Awareness training be provided all personnel visiting Gulf of Mexico offshore facilities: Familiarization with the relevant provisions of the Facility Security Plan (FSP) as required by the U.S. Coast Guard Maritime Security (MARSEC) Levels Dangerous substances and devices Suspicious behaviors 3.1.1 Security Measures at this Facility: Access Control ID Checks (Shore base and Heliport) Restricted Areas Entire facility is considered restricted Screening Delivery of Stores & Industrial Supplies Carry-on Items Monitoring CCTV Cameras (if applicable) Collision Avoidance Radar 3.1.2 Recognition and Detection of Dangerous Substances and Devices Know your surroundings Familiarize yourself with your work and living areas Be on the lookout for out-of-place or unusual items Report any suspicious items to your supervisor and/or FSO (Facility Security Officer) Page (E-10)(1) Last printed 10/10/2008 9:57:00 AM Revision Date 9/1/04

(E-10) OFFSHORE PROCEDURE Never use a hand-held radio to report a suspicious package or device or a cellular phone Provide the following information: Your name and location Location and description of item(s) Evacuate area immediately and follow emergency directions 3.1.3 Suspicious Activities and Behaviors Unknown persons photographing or videotaping the facility Unknown persons attempting to gain access to the facility Unknown persons inquiring about personnel and cargo screening procedures at the facility Unknown persons requesting you to transport items to the facility Unknown persons conducting diving activities near the facility Watercraft tied to or loitering around offshore structures Large vessels operating outside recognized navigation fairways Suspicious VHF radio transmissions or communications Inability to establish VHF communications with a vessel nearing the facility Repeated cyber or virus attacks, suspicious email Bomb threats Anti-American or anti-company sentiments expressed by people Distribution of anti-american or company propaganda Individuals proclaiming support for terrorist activities 3.2 Traveling to and from Offshore All employees will leave for and return from a job from the Versabar Office. We will provide transportation to and from the offshore site. All exceptions to this rule must be approved by the Versabar Offshore Project Manager. 3.3 Personal Protective Equipment The wearing of PPE appropriate to the type of work being conducted is required of all personnel as a condition of employment and as a condition of entry on to the Versabar Work Sites. VERSABAR Personnel shall wear all PPE required by the customer and comply with the following requirements. Listed below are the minimum requirements: 1. Hard Hat, Safety Glasses, Safety Toe Shoes or Boots must be worn on the Work Site, 2. Hearing Protection (All High Noise Areas), Page (E-10)(2) Last printed 10/10/2008 9:57:00 AM Revision Date 9/1/04

(E-10) OFFSHORE PROCEDURE 3. Fall Protection (Anytime six feet or more above the deck, anytime climbing a wellhead or ladder, anytime while working without hand rails over water), 4. Chemical Protection (Anytime working with Chemicals), 5. Personal Flotation Devices (See Working Over Water below), and 6. Seat Safety Belts and Inflatable Life Jackets are required to be worn by each person (pilot & passengers) traveling in an aircraft over water. 7. Gloves will be worn whenever handling rigging. Other types of PPE may be required from time to time depending on the type of work being conducted and the materials being handled. 3.4 Working Over Water PPE Requirements Each employee is required to wear a USCG Approved Type 1 or Type V, Personal Flotation Device (Life Jacket) or whenever: Participating in a Fire Drill, Man Overboard Drill or a facility / boat Emergency Evacuation Drill. Participating in an actual Fire, Man Overboard or Facility / Boat Emergency Evacuation situation. Transferring between a boat and another boat, a barge or an over water platform. Whenever working over water where there is no approved handrail in place to prevent the employee from falling into the water. Whenever on the Boat Landing, on the Plus Ten Deck Level or on any other deck level below an offshore platform s Production Deck. Whenever onboard a helicopter during over water flights. The Life Jacket provided by the helicopter company must be worn (no exceptions). Each employee working as a rigger moving equipment, personnel and other types of cargo on a crew boat and supply boat. Each employee on the deck of a Lift Boat with out approved handrails in place. Each employee on the deck of any boat (that is underway). 3.5 Helicopter Travel If traveling with any hazardous material or chemical you must inform the dispatcher and present the MSDS before boarding the helicopter. Never try and sneak on any hazardous material or chemical. Page (E-10)(3) Last printed 10/10/2008 9:57:00 AM Revision Date 9/1/04

(E-10) OFFSHORE PROCEDURE The pilot is in charge of the aircraft and has complete authority to make all decisions concerning the suitability of weather and landing areas, condition of aircraft for flight, loading of the aircraft, the manner of flight and any other factor relating to flight safety. Passengers shall report their name, social security number, weight (both personal and baggage) and destination to the Dispatcher as soon as they arrive at the departure point. Persons impaired by use of alcohol or drugs shall not be allowed to board any helicopter. Declare any suspect hazardous materials. Many of these materials are not allowed to be transported by passenger aircraft. All hazardous or flammable materials shall be properly containerized and the required paperwork completed before such material can be transported. Passengers shall remain inside the waiting area (e.g. waiting lounge, pumper s office, galley, below and clear of the helidecks) until they are notified to board. Employees shall not loiter near helidecks during landings or takeoffs Helidecks and landing / takeoff areas shall be kept free of debris, including, but not limited to, loose objects, baggage and tools. Smoking shall be permitted within 50 feet of a helicopter or fuel installation. Keep all lightweight articles (raincoats, windbreakers) secured while the helicopter is approaching or departing. No hats are allowed while boarding or de-boarding a helicopter. 3.5.1 Approaching and Boarding the Helicopter No hats are to be worn when approaching the helicopter, or anything else that could fly off. Hard hat and steel toe boots should be placed inside duffle bag or suitcase. Hearing Protection must be worn on board all helicopters in flight and around any helicopter when on the helideck while the engine is running. Wait until the pilot has made visual contact and signaled before approaching the helicopter. Remain in the pilot s view at all times when approaching the aircraft. Observe the path of the main rotor blades while they are turning and keep well under them. Crouch and keep your arms/hands below shoulder height when approaching or departing the helicopter. Beware of the large main rotor and its updraft. Never walk under the tail boom. Never walk toward the baggage compartment of any helicopter without first being directed by the pilot or helicopter landing officer. After unloading baggage, leave the vicinity of the helicopter in a direction away from the tail rotor and in full view of the pilot. Keep a firm grip on articles, including hats, when walking to and from the helicopter. Long items shall be carried in a horizontal position below waist level to avoid contact with the rotor blades. Follow the pilot s seating and cargo loading instructions. Page (E-10)(4) Last printed 10/10/2008 9:57:00 AM Revision Date 9/1/04

(E-10) OFFSHORE PROCEDURE Fasten seat belts before takeoff, keep them fastened during flight and do not unfasten them until the pilot instructs you to do so to depart the helicopter. 3.5.2 Flying in a Helicopter Passengers shall give the pilot their full attention and cooperate during the preflight safety briefing and during the flight. Employees shall familiarize themselves with helicopter safety posters, practices, and briefings each time they fly. Passengers shall be familiar with the location and operation of emergency exits and lifesaving equipment on board the helicopter. Passengers must be able to fasten the seat belts as designed or they will not be permitted to depart. Passengers shall never unfasten their seats of change seats while in flight. All Passengers must wear the Inflatable Life Jacket, securely fastened, provided by the helicopter pilot the entire time you are on the aircraft. Passengers are prohibited from smoking onboard all helicopters. Never throw anything out of a helicopter in flight or in the vicinity of a helicopter in the process of landing or taking off. Passengers shall not distract the pilot in flight and shall be especially quiet during takeoffs and landings. However, the pilot shall be advised of any unusual occurrence within or outside the helicopter. In the event of an emergency, passengers shall carefully follow the pilot s instructions and remain with the helicopter. Exit-qualified passengers should advise the pilot so that the pilot can plan the seating arrangements. Exit-qualified passengers must be familiar with the emergency evacuation instructions and express a willingness to give their full attention to following these procedures should it become necessary. 3.5.3 Departing the Helicopter Passengers arriving on a location shall clear the helideck before the departing passengers can be loaded. See Items a through h of Approaching and Boarding a Helicopter. Page (E-10)(5) Last printed 10/10/2008 9:57:00 AM Revision Date 9/1/04

(E-10) OFFSHORE PROCEDURE 3.5.4 General Helicopter Operations Crane operations during helicopter approaches or departures are prohibited. If possible, the crane operator shall cradle the crane or position the crane boom 180 degrees away from the helicopter s approach path and lock the swing brake when a helicopter is landing or departing the platform. The crane operator shall then step out of the cab of the crane so that the pilot will know that the crane has been shut down. Helicopters shall be electrically grounded before refueling can begin. Employees responsible for refueling helicopters shall undergo a special briefing and be issued an authorization card prior to refueling a helicopter. Injured persons traveling on a helicopter shall ALWAYS BE ACCOMPANIED BY ANOTHER PERSON other than the pilot or pilots. If in doubt, ask never take chances in and around helicopters. 3.6 Boat Transfers Passengers shall report their name, social security number, weight (both personal and baggage) and destination to the Dispatcher as soon as they arrive at the departure point. You must report any hazardous material or chemicals at this time and must have a MSDS sheet for all chemicals or hazardous materials. The captain of the boat is in charge of the boat and has complete authority to make all decisions concerning the suitability of weather and landing areas, condition of boat for operation, loading of the boat, the manner of operation and any other factor relating to operation of the boat and safety of personnel and operations. Persons impaired by use of alcohol or drugs will not be allowed to board any boat. Wear a Life Jacket, securely fastened, provided by the boat captain or your assigned Work Vest, whenever you are on the deck of the boat outside of the passenger cabin and whenever transferring to or from the boat and the platform or dock. Boat landings and dock areas shall be kept free of debris, including, but not limited to, loose objects, baggage and tools. Passengers shall give the captain their full attention and cooperate during the safety briefing and during the trip. Passengers shall be familiar with the location and operation of emergency exits, emergency equipment and lifesaving equipment on board the boat. All hazardous or flammable materials shall be properly containerized and the required paperwork completed before suck material can be transported by boat. Smoking will be permitted at the captain s direction only. Personal bags, tools or equipment shall be transferred to the platform or dock separately from personnel. Page (E-10)(6) Last printed 10/10/2008 9:57:00 AM Revision Date 9/1/04

(E-10) OFFSHORE PROCEDURE Where a crane is used to transfer personnel, a pre-lift meeting shall be held including the boat captain, the crane operator, the riggers and the personnel to be transferred. Only an approved personnel basket shall be used to transfer personnel. The load shall be under power control both up and down. The crane shall have an anti-two block device installed and properly operating. Where a swing rope is used to transfer personnel, users shall have both hands and arms free and shall hold with both hands firmly above the proper knot. Swinging from a boat to or from a platform or dock is under the control of the boat skipper and his instructions should be followed. NO EMPLOYEE is required to make a transfer that they feel that they are unable to make safely. Employees should assist each other during transfers. Employees will never use the personnel transfer basket as a workbasket or cargo net. 3.7 Work Site Operations Versabar employees must report to the location (PIC) person in charge immediately upon your arrival. Sign in with the appropriate person responsible for keeping records of all personnel on the location. You must report any medications that you are taking and any health issues for example diabetes. Listen and observe as location safety and operational procedures are explained to you. This will include discussion of the emergency stations, bunk and locker assignments, special topics of safety or operational concerns, rules of etiquette such as dress codes in living quarters and so forth. Pay close attention, each offshore structure will have unique rules to that platform. You must report all personnel injury incidents or potentials for injury to the company supervisor, IMMEDIATELY. You must report all personnel injury incidents or potentials for injury to your Versabar supervisor, IMMEDIATELY. You must report any pollution or potentials for pollution to the company supervisor IMMEDIATELY. You must report any pollution or potentials for pollution to your Versabar supervisor, IMMEDIATELY. You must report all equipment / property damage incidents or potentials for damage to the company supervisor, IMMEDIATELY. You must report all equipment / property damage incidents or potentials for damage to your Versabar Supervisor IMMEDIATELY. On deepwater platforms the person in charge is called the OIM. Directly below him is a Production Supervisor and HSE Advisor. Below them are Lead Electrical Supervisor, Maintenance Supervisor, and Production Operators. Below these leads will be a Lead Engineer and Subsea Lead Engineers. This is generally who Versabar reports to. Each offshore job is unique and you must pay attention to know who to report to. Page (E-10)(7) Last printed 10/10/2008 9:57:00 AM Revision Date 9/1/04

(E-10) OFFSHORE PROCEDURE 3.8 General Safety Rules for Offshore Safety must be the #1 concern of all employees working offshore. All employees should know that we have time to do a job safely. Do not rush to start or finish one. You must understand that you do not have to work on a job that you feel is unsafe. You have the responsibility to cease work and to notify your supervisor so that the appropriate action can be taken. You must report promptly to your supervisor any injury you sustain while at work. You are also encouraged to report accident details that did not result in personal injury or property damaged, but could have if the circumstances had been different (near miss.) Never engage in scuffling, practical joking, or horseplay on the job. Never run unless the situation is life-threatening Your supervisor or the person in charge of the offshore facility must familiarize you with the following on your initial assignment at an facility: o Emergency, fire and escape procedures (including alarm identification). o Potential for hazardous gases such as H²S. o Location of survival craft (Capsules or other types) o Emergency, abandon platform and man overboard alarms. Smoking is only permitted in designated areas. The use, possession or transportation of illegal drugs, alcoholic beverages, firearms or weapons while on offshore premises is prohibited. You are required to participate in the JSA process before beginning any work activity. All persons involved in the work to be done will participate in preparing & reviewing the JSA. You must participate in all required safety meetings, work permit meetings, tool box meetings, and SIMOPs meetings. You must have a MSDS for all chemical and hazardous material that you bring on board or that is coming by vessel in a container. Housekeeping must be maintained. Keep your work site neat and orderly to help eliminate falling and tripping hazards, and the risk of injury which may be caused by loose material shifting. 3.9 What to Bring Offshore Each Employee shall bring sufficient clothing and personal items for the expected length of the job or at least a week whichever is longer. The following personal items are recommended for you to take with you in a duffle bag or a bag with a shoulder strap: 1. Driver s License (up-to-date) 2. Operator Specific proof-of-training 3. Work clothes - uniforms 4. Proper PPE 5. Jogger s Warm Ups 6. Shower Shoes / flip flops 7. Underwear 8. Cotton Socks 9. Insulated Underwear (winter) Page (E-10)(8) Last printed 10/10/2008 9:57:00 AM Revision Date 9/1/04

(E-10) OFFSHORE PROCEDURE 10. Tooth Paste & Brush 11. Razor & Blades 12. Other personal items as needed. 13. Reading material: a good book, magazines, sudoko or cross-word puzzles. All employees are expected to limit their personal possessions on the work site to that which is directly related to the performance of your job. Casual off-duty clothing and other property is allowed in the scope of private property on the work site. However, stereo equipment, expensive street clothes, expensive dress watches and jewelry, exotic cameras and so forth are NOT appropriate on the work site. No jewelry allowed except watch with a break-away strap. This includes wedding rings. 3.10 Behavior & Attitude While Working Offshore You will be required to work a normal work shift and then have time off. But, unlike when working on land, when you get off of work, you are still on someone else s property. You must behave and act professional at all times. No fighting, rudeness, verbal or sexual harassment, and no horseplay will be tolerated. You must follow all safety rules. You will be living in close quarters on many occasions, so remember that the little things do will affect those around you: 1. Always be considerate of others; 2. Remove your slicker suit, boots and gloves BEFORE you enter the quarters or offices; 3. If your clothes are dirty, place a plastic bag on the seat before you sit down; 4. Stay out of the bunkrooms where others are sleeping; 5. If you must enter the rooms where others are sleeping, do so quietly, turning on as few lights as possible. 6. Shower regularly, you are required to maintain your personal hygiene; 7. Keep your personal effects picked up and in your bag or locker; 8. Keep your feet off of the furniture. 9. Good housekeeping is an absolute necessity, in the living quarters, on the units and in the offices. You must attend all safety meetings and you will be required to participate in the company s behavior based safety program. You must do a JSA prior to each job, each shift, and each day. You may also be required to obtain a Permit to Work. Management of Change Procedure must be followed if any temporary or permanent changes to Versabar approved policies. All temporary and/or permanent changes will be evaluated and managed to ensure that health, safety and environmental risks arising from these changes remain at acceptable levels. 3.11 Training All employees that work offshore or over water shall be trained in these procedures Section D-10 of this manual. The Operations Manager shall insure that each employee is properly trained before starting work when: 1. The employee is first hired, 2. The employee is appointed to a new job assignment, and Page (E-10)(9) Last printed 10/10/2008 9:57:00 AM Revision Date 9/1/04

(E-10) OFFSHORE PROCEDURE 3. The employee is exposed to new substances, processes, procedures, equipment, etc. that represent a new hazard to the employee. All training shall be conducted as per the requirements of Section (B-4) Employee Training of this manual. The Training Record, Section (B-4), shall be completed for each training session. Specific Training Requirements per Oil Company: Training Class Water Survival Training / HUET SafeGulf Training or Test Out MMS Video All Washed Up Rigging Certification CPR / First Aid / AED Winch Operator Certification Fall Protection BP Offshore Orientation Shell Yellow Hand Book Frequency Every 5 years Waiting to hear Annual Every 2 years Every 2 years Once Every 2 years Once Once This is to certify that I have received a copy of the Versbar Offshore Procedures. I have read the rules and understand the contents and agree to abide by these rules. Also, I agree to visit with my supervisor and understand other applicable safety rules which apply to the specific work I will be performing on offshore premises. I understand that my safety and the safety of others is my #1 responsibility. I will not take action until I understand the safe way to perform the tasks assigned DATE NAME (printed) TITLE SIGNATURE Page (E-10)(10) Last printed 10/10/2008 9:57:00 AM Revision Date 9/1/04

(E-11) SPECIAL PROJECTS PROCEDURES 1 PURPOSE This program provides the Operations Manager with the procedures to ensure the safety and health of personnel working in Special Projects Division. This program complies with 29 CFR 1910.212, Subpart O. 2 SCOPE This program covers all Versabar, Inc. employees, customer employees, contractor employees, vendor employees and visitors that enter on to Versabar property and / or work sites. 3 PROCEDURES The Special Projects Division conducts projects and work that is non-repetitive and therefore each project requires a through review and evaluation: 1. Prior to starting the work Each employee must understand the work to be performed and the hazards involved in conducting that work. 2. During the work All employees must be continuously observant and aware of their work environment. 3. After the job is completed A thorough review of the project with special attention to the trouble spots is a vital and valuable tool to insuring that future projects are conducted efficiently and incident free. 3.1 Hydraulics Maintenance Visually inspect all hoses, fittings, reservoirs, filters, belts, etc. prior to operating any hydraulic equipment. Clean with pressure washer. All lifting pressures shall be monitored to job specifications for the duration of the test. Consult the winch operator s log for the job for any problems or leaks both minor and major. Record in the operator s log any problems discovered during your inspection. 3.2 Winch Testing Winch tests are conducted as per the customer s requests whenever possible. Therefore the weight, angles of lift, speed of lift, etc. will vary from job to job. Review the fabrication drawings. Create a written Work Order describing in detail the procedures necessary to successfully complete the job. Procure the necessary materials. At the beginning of the job and each morning there after until the completion of the job, review the written Work Order for the job, conduct a JSA meeting and wear the appropriate PPE. Review the pinch points involved in the job. Page (E-11)(1) Last printed 10/10/2008 9:58:06 AM Revision Date 9/1/04

(E-11) SPECIAL PROJECTS PROCEDURES Review the tool / machine emergency shut down system operation. Review any special conditions specific to this job. Assign each employee his/her specific work duties for this job. Clear the work area of all trash, debris and items not needed for the job. Install winch into the skid that has been built for the job. Winch will be either bolted down or welded into position. Load the test winch depending on use: 1. Use stack load spreaders, or 2. Use of A-frame. Weave cables into the winch. Bolt winch into position at A-frame. Attach winch cable to certified test load. Lift load to customer s specifications. Note: the ton rated capacity is good for only the bottom cable wrap on the winch drum. Disassemble the winch from the A-frame test site and prepare for shipment. 4 SPECIAL PROJECTS Winch tests are conducted as per the customer s requests whenever possible. Therefore the weight, angles of lift, speed of lift, etc. will vary from job to job. Special Project procedures are sometimes necessary for some of these jobs. Page (E-11)(2) Last printed 10/10/2008 9:58:06 AM Revision Date 9/1/04

1 PURPOSE VERSABAR SAFETY MANAGEMENT SYSTEM (E-12) FIRE PREVENTION PROCEDURE These procedures provide the Operations Manager with the ability to ensure the safety and health of personnel while painting and coating. These procedures comply with 29 CFR 1910, Subpart D Walking Working Surfaces, 29 CFR 1910, Subpart G Occupational Health and Environmental Control, 29 CFR 1910, Subpart H Hazardous Materials, 29 CFR 1910, Subpart I Personal Protective Equipment, 29 CFR 1910, Subpart L Fire Protection, 29 CFR 1910, Subpart M Compressed Gas and Compressed Air Equipment, 29 CFR 1910, Subpart O Machinery and Machine Guarding. 2 SCOPE This program covers all Versabar, Inc. employees, customer employees, contractor employees, vendor employees and visitors that enter on to Versabar property and / or work site. 3 PROCEDURES 3.1 DEFINITIONS 1. Fire - A self sustaining chemical reaction that gives off large amounts of Light and Heat energy. Fire needs three agents to sustain the chemical reaction: Heat for ignition, Fuel, and an Oxidizing Agent (i.e. oxygen but some chemicals such as chlorine will react so violently with some metals as to create a chemical reaction very similar to fire in it release of Light Heat energy.) 2. Flammable - A gas or liquid with a flash point below 100 o F. 3. Combustible - A gas or liquid with a flash point at or above 100 o F. 4. Fire Extinguishing Agent - A material that can stop the chemical reaction of one or more of the different classes of fire. 5. Fire Classes - Categories used to describe the different types of fires. Class A = Fire having normal combustibles (i.e. wood, rags, paper, etc.) for a fuel. Class B = Fire having flammable or combustible gases or liquids (i.e. gasoline, diesel, condensate, etc.) for a fuel. Class C = Any other class of fire (A, B or C) which also involves energized electrical equipment. Class D = Fire having a flammable or combustible metal for a fuel. 3.2 FIRE PREVENTION Stay Alert to the work and people around you. Page (E-12)(1) Last printed 10/10/2008 9:58:27 AM Revision Date 9/1/04

3.2.1 Housekeeping VERSABAR SAFETY MANAGEMENT SYSTEM (E-12) FIRE PREVENTION PROCEDURE Good Housekeeping and equipment maintenance must be followed to keep fire hazards to a minimum. All work sites (including office spaces) must be kept free of flammable / combustible material and debris. Furniture shall be arranged to avoid contact with heaters. All walkways, staircases, hall ways and door ways shall be kept clear of any obstructions. Combustible and Flammable materials used in the fabrication and maintenance of equipment shall be stored in the Flammable Storage Locker / Building. Combustible and Flammable materials used in the cleaning and maintenance of living, eating, rest, wash, office and other work spaces shall be stored in a flammable storage locker. The passenger spaces of all vehicles shall be kept free of flammable / combustible material and debris. Keep the areas around ignition producing sources clear of all combustible and flammable materials. 3.3 Smoking and Smoking Materials The following areas are designated as NO SMOKING areas. Smoking is allowed only in areas designated by the Operations Manager. 1. Office Spaces, 2. Rest Rooms, 3. Break Rooms, 4. Storage Areas, 5. Computer Rooms, 6. Jobs Sites, 7. Any area subject to contamination by flammable liquids or gases, and 8. Any area designated NO SMOKING. Matches and Cigarette Lighters shall not be carried into any area that may have an explosive atmosphere. In operating areas with non-explosive atmospheres, only safety matches and double-action cigarette lighters may be carried. Plastic case cigarette lighters shall not be carried around welding operations. Never leave a burning cigarette unattended. Waste Baskets shall not be used as ashtrays and ashtrays shall not be emptied into waste baskets. 3.4 Automotive Equipment Unless properly permitted (i.e. Hot Work Permit), Automotive Equipment and other ignition sources are prohibited within the firewall or fenced enclosure of a tank battery or other facilities designated by the Operations Manager. Page (E-12)(2) Last printed 10/10/2008 9:58:27 AM Revision Date 9/1/04

(E-12) FIRE PREVENTION PROCEDURE In the absence of firewalls or enclosures, automotive equipment and other ignition sources MUST be kept fifty (50) feet are more from the tank battery equipment. The distance is determined by considering wind, weather, terrain and other conditions. All Automobiles and Pick-Up Trucks shall carry a fire extinguisher that is equivalent to or greater than a 2 ½ pound, ABC Dry Chemical Unit. All Larger Trucks, All Pick-Up Trucks pulling trailers, all Forklift Trucks and All Mobile Cranes shall carry a fire extinguisher that is equivalent to or greater them a 30 pound, ABC Dry Chemical Unit for every ten (10) feet of combined tractor and trailer length. When more than one extinguisher is carried on a vehicle, the extinguishers shall be installed on both sides of the tractor / trailer. 3.5 Flammables and Combustibles The following materials shall not be allowed near ignition sources (i.e. Open Flames, Smoking, Motor Vehicles, Electrical outlets, switches, junction boxes, etc.): 1. Containers of oil, gasoline, kerosene, diesel, solvents, etc., 2. Oily Rags, 3. Waste, 4. Debris, and 5. Other Combustible Materials. Buildings in which flammable or combustible liquids and/or gases are handled and stored must be adequately ventilated. Buildings that store large quantities of flammable liquids and/or gases must be designed and engineered for flammable storage. Combustible and Flammable materials used in the cleaning and maintenance of living, eating, rest, wash, office and other work spaces shall be stored in a flammable storage locker. Combustible and Flammable materials used in the fabrication and maintenance of equipment shall be stored in the Flammable Storage Locker. Combustible and Flammable cleaning, maintenance, materials in quantities greater than one (1) gallon shall be stored in the Flammable Storage Building. Gasoline, Diesel, Kerosene and other fuels must be stored in the Flammable Storage Building or an outside storage tank. Always use a safety can with a flame arrester for handling any flammable liquids. Gasoline, kerosene, or other flammable liquids shall not be stored in glass containers. Only approved containers may be used to store or transport flammable liquids. Oil-soaked clothing shall be removed and properly disposed of or cleaned. Dirty Rags shall be disposed of in air tight metal containers. The Use of Flammable Liquids as cleaning agents is prohibited. Aerosol sprays (i.e.- paints, solvents, cleaners, etc.) are flammable, they shall not be used near open flames or any other ignition sources. Page (E-12)(3) Last printed 10/10/2008 9:58:27 AM Revision Date 9/1/04

(E-12) FIRE PREVENTION PROCEDURE Aerosol Cans shall be stored in an approved flammable storage locker when not in use. 3.6 Bonding and Grounding When flammable and combustible liquids (i.e. condensates, gasoline, diesel, etc.) with a flash point of less than 200 o F are drawn into an open container (bucket) a metal container must be used and it must be properly bonded or grounded. Bonding can be achieved by: 1. Hanging the bare metal handle of a metal container over the valve from which the liquid is being drawn (WARNING there must not be any wood, rubber or plastic on the handle.), or 2. Setting the metal container down on a steal plate or steel deck definitely known to be in contact with the vessel from which the liquid is being drawn, or 3. Using threaded connections between the portable container to the container from which the liquid is being drawn, or 4. Attaching a metal connecting cable from the portable container to the container from which the liquid is being drawn. Grounding can be achieved by: 1. Attaching a metal connecting cable from the portable container to a metal stake driven into the ground two (2) to three (3) feet. 2. Each Container must be grounded separately. Static Electricity can be generated by personnel during normal work operations. Therefore, employees shall not place their hands in or under the fluid stream being drawn inside a container. Before the valve is opened, bonding can be accomplished by skin contact with the valve or vessel from which the liquid or gas is being drawn. 4 FIRE PROTECTION Know the Emergency Action Plan or Station Bill for your work site. Be familiar with the following fire survival techniques: 1. Give or Active the alarm. Notify other personnel on the location. 2. Evacuate as per the location Emergency Action Plan or Station Bill. 3. Be Aware of the location of all fire exits. 4. Understand the evacuation procedures for the work site. 5. Do not use elevators. Use designated exits. Page (E-12)(4) Last printed 10/10/2008 9:58:27 AM Revision Date 9/1/04

(E-12) FIRE PREVENTION PROCEDURE 6. If caught in a smoke- filled area, crawl on the floor and take short breaths through your nose. If possible, hold a cloth in front of your face. 7. Before opening a door, touch it to check if it is hot. If it is hot, do not open the door. 8. If unable to safely exit a fire or smoke filled area: Proceed to a room with an outside window, Close the door to isolate the room from the smoke-filled hallway, Move to a window, and Signal for help. Notify your supervisor of: 1. Your Location, 2. The time that the fire was discovered, and 3. Any actions taken to contain the fire. Fire Extinguishers are provided in all areas of each facility and on every vehicle. These units are to be used on small fires that can be extinguished quickly. If you are not trained in the use and operation of fire extinguishers, do not attempt to put out a fire. Maintenance and Inspections of fire equipment shall be performed by a trained employee monthly. Additionally, an inspection by a third party contractor must conducted annually. 5 TRAINING Each new employee shall complete a four (4) hour Fire Awareness and a hands-on Fire Extinguisher Use training program within six (6) months of their hire date. Each employee designated to inspect and maintain fire extinguishers shall complete a one (1) day Fire Science and hands-on Fire Extinguisher Use & Maintenance training program before being assigned to inspect and maintain fire extinguishers. These employees shall complete a one (1) day Refresher Fire Science and hands-on Fire Extinguisher Use & Maintenance training program annually. Each District Office shall conduct a Fire & Evacuation Drill as per their location Emergency Action Plan at least once each quarter. Fire and Evacuation Drills must be conducted for each crew at every work site at least once each job or week which ever is more frequent. The first drill shall be completed before work begins on arrival at the work site. Page (E-12)(5) Last printed 10/10/2008 9:58:27 AM Revision Date 9/1/04

5.1 Records VERSABAR SAFETY MANAGEMENT SYSTEM (E-12) FIRE PREVENTION PROCEDURE Documentation of all inspections, audits, maintenance, drills and training required by this section shall be maintained in the District Office for a period of least one (1) year from the date of the action. Page (E-12)(6) Last printed 10/10/2008 9:58:27 AM Revision Date 9/1/04

1 PURPOSE VERSABAR SAFETY MANAGEMENT SYSTEM (E-13) SLING INSPECTION The sling inspection procedure establishes inspection criteria for the damage assessment of wire rope slings. Each Versabar owned sling is subject to annual testing and inspection, at which time each sling will be evaluated against these criteria. Assessment criteria include damage to all components of a sling including body wires, eye wires and sling appurtenances such as swaged connections. Sling capacity is always verified through annual proof load testing. Once a sling condition falls outside of these criteria and subject to review by engineering, it is removed from regular service, but may still be used for more restricted applications. The damaged sling acceptance criteria are based on these presented by ASME B30.9 and API RP-2D. 2 SCOPE This section applies to all Versabar owned slings. 3 ROLES & RESPONSIBILITIES The Operations Manager is responsible for ensuring that all Versabar owned slings are inspected against these criteria during annual testing and certification. All rigging personnel are responsible for being familiar with these criteria. Rigging personnel are to notify their supervisor if during routine sling handling any sling damage is noted. Slings may be re-inspected and removed from service at any time if unacceptable damage is found. 4 PROCEDURES During the annual sling proof load test process visual inspection of the body and eyes of the sling are made to check for kinks, abrasions and broken wires. Form (E-13)(F-1) will be used to record any sling damage. Additional guidance on wire rope inspection is given in API RP-2D Recommended Practice for Operation and Maintenance of Offshore Cranes. 4.1 Sling Broken Wire Acceptability Criteria The following criteria will be used to assess the acceptability of a sling where there are broken wires within a wire strand either in the body or the eye of a sling. When the broken wire criteria are exceeded, the sling is no longer suitable for open water marine lifts. Subject to specific engineering review, the sling may still be acceptable for inland and onshore lifts, or non-critical applications. Page (E-13)(1) Last printed 10/10/2008 9:58:47 AM Revision Date 9/27/04

(E-13) SLING INSPECTION Wire Construction Allowable Number of Broken Wires per Strand: Single Part Slings: A maximum of 5 broken wires within a single strand is acceptable. Three-part slings: A maximum of 20 broken wires within a single strand is acceptable. Nine-part slings: A complete broken single strand is acceptable. Allowable Number of Broken Wires per Lay Length: Single Part Slings: A maximum of 10 broken wires within a single lay length is acceptable. Three-part slings: A maximum of 20 broken wires within a single lay length is acceptable. Nine-part slings: A maximum of 39 broken wires within a single lay length is acceptable. General sling and wire condition: The sling will be visually inspected for stretching, abrasion, scrubbing or preening. Sling Attachments: Sling attachments are to be visually inspected for cracking, general deformation, wear and looseness. Page (E-13)(2) Last printed 10/10/2008 9:58:47 AM Revision Date 9/27/04

(E-13) SLING INSPECTION VERSABAR SAFETY MANAGEMENT SYSTEM Form (E-13)(F-1) Sling Inspection Report Serial No. Date Sling Length (1) # Broken Wires (2) Sling Damage (3) Wire Rope Damage (4) Attachment Damage (5) Acceptable Yes/No Sling Status Inspector Notes: 1. Enter sling length as measured during current test. Compare with previous sling length measurements for same sling. 2. Enter the number of broken wires in any one rope lay (L), sling eye (E), and adjacent to any attachments (A). 3. Enter general condition of the sling Stretching (St), Abrasion (A), Scrubbing (Sc), or Preening (P). 4. Enter the general condition of the wire rope Corrosion (Co), Kinking (K), Crushing (Cr), Heat Exposure (H), Core Protrusion (Pr), Bird Caging (B) 5. Enter the condition of the attachments (ends, swedges etc). Indicate if Cracked (C), Deformed (D), Worn (W), or Loosened (L) Page (E-13)(3) Last printed 10/10/2008 9:58:47 AM Revision Date 9/27/04

(E-14) CABLE GREASE COATING PROCEDURES 1 PURPOSE This program provides the Operations Manager with the procedures to ensure the safety and health of personnel working with the Grease Pit which involves using the products Versa Cable and VM&P Naphtha. 2 SCOPE This program covers all Versabar, Inc. employees and contractor employees working on the Versabar property. 3 PROCEDURES At the beginning of the job and each morning there after until the completion of the job, review the written policy and wear the appropriate PPE according to the MSDS for Versa Cable and VM&P Naphtha. Chemical safety goggles, vapor respirator, impervious gloves, Tyvex suits, black rubber steel-toe boots. The Grease Pit has a designated change station (container just for this purpose.) In this building will remain all the required PPE. This is where the employee will go to put on and take off his Tyvex suit and rubber boots. In a close proximity to the grease pit, should be eye wash/shower station, fire extinguisher and spill cleanup kit. The grease pit will have permanently assigned/designated slings to use in lifting the slings in and out of the Grease Pit because they will get covered in Versa Cable. The Grease Pit lit should stay on at all times that the Grease Pit is not being used, in-between shifts and if the local weather report gives a probability of rain for that day. Don t even open the lid if it looks like rain. We want to avoid this: If the pit fills up with water, we will have to drain it into tanks and properly dispose of it as a Hazardous Waste product. This will be costly and time consuming. We will not paint the sling collars on the grease pit. We will paint the grease collars on the sling rack. 3.1 Filling and/or Re-filling the Grease Pit with Versa Cable 1. JSA must be completed prior to task. 2. Everyone must put on the proper PPE. 3. Review hazards involved in the job. 4. Review the emergency spill plan. 5. Review any special conditions specific to this job. 6. Assign each employee his/her specific work duties for this job. Enter the Grease Pit Changing Station: Put on proper PPE. Page (E-14)(1) Last printed 10/10/2008 9:59:00 AM Revision Date 9/1/04

(E-14) CABLE GREASE COATING PROCEDURES Come out of the changing station and find the designed rigging to remove the lid. Attach the slings to the lid and then attach the slings to the hook of the crane. Move back and signal the crane operator to remove the lid. Rig the proper size slings to the 550 gallon Versa Cable grease lube tank. Use the crane to lift the 550 gallon tank and transport it directly over the grease pit, hold Lower the tank directly over the pit. Ground the pit to the Versa Cable tank. Proceed to fill or re-fill the pit from the 550 gallon tank. When complete, remove the ground and bonding wires. Remove the Versa Cable tank. 3.2 Greasing Slings Step 1. Step 2. Step 2. Step 3. Step 4. Step 5. Step 6. Step 7. Step 8. Enter the changing station and put on all the proper PPE. The personnel applying the Versa Cable lubricant must wear the following PPE during the application: Safety glasses or goggles, vapor respirator, impervious gloves, Tyvex suits, black rubber steel-toe boots. Remove Grease Pit Lid: Employee attach the designated sling to the padeyes of the Grease Pit lid. The employee should leave the Grease Pit area completely and signal the crane operator to lift the lid. Remove Yellow Spiral Tag: Before removing the yellow spiral tag and store in the proper location (bin in container), be sure that the sling identification numbers are stenciled on the collar of the sling. The employee can then remove yellow spiral tag off the sling to be lubricated. Rigger then attaches the designated sling to the sling needing lubrication. Then attach the sling to the hook of the cherry picker or crane. The crane operator or cherry picker operator picks up the sling and slowly drops the sling into the pit, holds it for several then raises the sling out of the pit and places it on the grating to drain off the excess Versa Cable. At this point, the rigger goes up the stairs to remove the rigging from the crane hook. The slings will drain on the grating for approximately 6 hours (depending on available time). At this point the rigger should go directly to the changing station and take off all the messy, greasy, PPE. We want to avoid grease being spread from the bottom of their boots all over the yard and shop. This changing station (container) must stay organized, neat, clean as possible. Return all PPE to the proper location. Throw all trash away. In case of rain, the lid should be put back onto the Versa Cable while the slings are draining Page (E-14)(2) Last printed 10/10/2008 9:59:00 AM Revision Date 9/1/04

(E-14) CABLE GREASE COATING PROCEDURES 3.3 Cleaning Sling Collars Step 1. Step 2. Step 4. Step 5. Step 6. Step 6. Step 7. Step 8. Dripping Period: We are aiming for approximately 6 hours. Employees should then enter the changing station and put on all the proper PPE. The personnel applying the VM&P Naphtha must wear the following PPE during the application: Safety glasses or goggles, vapor respirator, impervious gloves, Tyvex suits, black rubber steel-toe boots. Employee will need small designated container for VM&P Naphtha and several rags. The employee will go onto the Grease Pit platform and remove as much grease as possible from the collar of the sling. Sling will then be rigged with designated rigging and attached to the hook of the crane or cherry picker to be moved over to the sling rack. Housekeeping. All trash and rags must be removed prior to putting lid back on the pit. Replace the lid on the pit. Employee should return to the changing station and remove all their PPE that is issued just for the Grease Pit. Keep in mind, that we want to restrict how far we spread the grease. Changing station must be cleaned after each use to prevent the spread of Versa Cable grease. PPE hung in the proper location and trash throw away in the proper receptacle. 3.4 Grease Pit Maintenance Prior to putting slings into the Grease Pit to be lubricated, they must be cleaned. The tape and rope that gets on slings must be taken off prior to putting slings into pit. Housekeeping of the dripping area (grating) and changing station (container) is essential to success. This will help the Versa Cable last longer. 3.5 Draining the Pit If the lid is left off, then the pit will fill with water. The Versa Cable will float and the water will sink to the bottom. We will have to order drums and drain the water out. This water will be considered Waste and have to be disposed of properly. 3.6 Training When the employee is first assigned to work in the grease pit area, prior to working in the grease pit area. Employees must go over the MSDS for VersaCable and VM&P Naphtha prior to working with the chemicals involved. Page (E-14)(3) Last printed 10/10/2008 9:59:00 AM Revision Date 9/1/04

(E-14) CABLE GREASE COATING PROCEDURES Page (E-14)(4) Last printed 10/10/2008 9:59:00 AM Revision Date 9/1/04

(E-15) FABRICATION DIVISION PROCEDURE 1 PURPOSE This program provides the Operations Manager with the procedures to ensure the safety and health of personnel working with and maintaining hand tools. This program complies with 29 CFR 1910.212, Subpart O. 2 SCOPE This program covers all Versabar, Inc. employees, customer employees, contractor employees, vendor employees and visitors that enter on to Versabar property and / or work sites. 3 PROCEDURES The scope of work will be determined by the type of materials to be used and by the welding codes covering the fabrication work to be done. Review the attached Quality System Procedure, Versabar, Inc., Special Process Procedures Fabrication of Structural Steels. This Section will govern the welding procedures for fabrication involving steel plate, pipe and structural members. At the beginning of the job and each morning there after until the completion of the job, review the written Work Order for the job, review the pertinent MSDS s, conduct a JSA meeting and wear the appropriate PPE. 1. Review the pinch points involved in the job. 2. Review the tool / machine emergency shut down system operation. 3. Review any special conditions specific to this job. 4. Assign each employee his/her specific work duties for this job. Clear the work area of all trash, debris and items not needed for the job. Attach gas lines (C-25 Argon & CO 2 ) to the gas cylinders. Open the valves on the cylinder and inspect the lines and manifold for leaks. Repair all leaks and replace any damaged lines and / or fittings. Inspect the welding leads and connections for the welding machine. Repair and / or replace any damaged leads or connections. Attach the welding leads and connections to the welding machine. Verify that the welding machine is properly grounded. Get help and use mechanical lifting devices (i.e. cherry picker, jib crane, etc.) to move equipment and / or materials involved in the job. Clear the work area of all trash, debris and items not needed for the job. Ensure that all combustibles and flammables are at least 35 feet from the perimeter of the work area. Page (E-15)(1) Last printed 10/10/2008 9:59:32 AM Revision Date 9/1/04

(E-15) FABRICATION DIVISION PROCEDURE Double check that the material to be welded is properly grounded and bonded to the welding machine. Verify that the air pressure source is in fact Compressed Air and not a combustible or flammable gas. Attach the scale gun (needle gun), grinder of other air tool to the compressed air supply valve. Inspect the compressed air lines and fittings for damage and / or leaks. Repair and / or replace any damaged or leaking hoses, lines and fittings. The welding machine, air compressor and gas cylinders must be shut off and secured at the end of the job or shift. Clear the work area of all trash, debris, tools and other items before leaving the work area. 3.1 TRAINING All employees that work in the Fabrication Division shall be trained in these procedures Section D-14 of this manual. The Operations Manager shall insure that each employee is properly trained before starting work when: 1. The employee is first hired, 2. The employee is appointed to a new job assignment, and 3. The employee is exposed to new substances, processes, procedures, equipment, etc. that represent a new hazard to the employee. 3.2 TRAINING All training shall be conducted as per the requirements of Section (B-4) Employee Training of this manual. Page (E-15)(2) Last printed 10/10/2008 9:59:32 AM Revision Date 9/1/04

(E-16) OPERATOR TRAINING AND QUALIFICATIONS FOR HYDRAULIC EQUIPMENT BASED PULLING AND LIFTING SYSTEMS 1 PURPOSE This procedure describes how Versabar personnel are qualified and documented as operators for custom hydraulic winch based pulling and lifting systems (hereafter pulling system(s)). This procedure does not address the operator qualifications for manufactured cranes and other mechanical equipment covered by existing industry standards or manufacturers recommendations. 2 SCOPE These procedures apply to any Versabar provided pulling and lifting system. 3 DEFINITION OF A QUALIFIED OPERATOR A Qualified Operator is a Versabar employee designated as such by Versabar who has appropriate experience and training in the operation of specific equipment. Such experience will comprise a specified minimum of both classroom training and hands-on field operation of the system. The minimum training requirements are given in section 7. Two levels of Operator will be considered: Technician Operator Qualified to operate the equipment they are trained on. Qualified to inspect the equipment they are trained on prior to operation. Qualified to support field maintenance on the equipment they are trained on. Superintendent Operator Same as Technician Operator, plus qualified to supervise and coordinate the operation of multiple pulling systems. A superintendent is also qualified to certify a pulling system suitable for operations after assembly, commissioning and system testing. All Versabuild qualified operators will also be certified riggers in accordance with API RP-2D and be familiar with wire rope construction, performance and inspection also in accordance with API RP-2D. 4 DOCUMENTATION Records of operator training, operating experience and other qualifications will be maintained as part of the Versabar HSE system. Records will be updated regularly to reflect additional field experience gained with specific equipment. Operator documentation will comprise the following: Hands-on performance test Training Records Field/Operating experience logs Additional supporting training records, i.e. rigger certification to API RP-2D Page (E-16)(1) Last printed 10/10/2008 9:59:54 AM Revision Date 11/8/04

(E-16) OPERATOR TRAINING AND QUALIFICATIONS FOR HYDRAULIC EQUIPMENT BASED PULLING AND LIFTING SYSTEMS 5 OPERATOR CERTIFICATION An operator must be certified every two (2) years on individual hydraulic winches, chain jacks and associated equipment, i.e. hydraulic power units, control stands. An operator must be certified annually on custom lift devices or complex pulling systems such as A-frames synchronized multiple winch load-out systems, etc. Re-certification can be achieved through either review of documented field experience with equipment during the previous two years or through a hands-on performance test witnessed and approved by a Versabar Certifying Authority. 6 CERTIFYING AUTHORITY An operator can be certified by a Versabar designated Winch Superintendent, or the Operations Manager. 7 OPERATOR REQUIREMENTS Operators shall receiving training on each winch and custom pulling system in the following areas: 7.1 Pulling and Lifting System Components Being able to identify all system major components Familiarity with hydraulic principles Familiarity with the specific hydraulic circuit for the system Familiarity with all system fluids and their handling 7.2 Pulling and Lifting System Maximum Capacities Understanding of the maximum safe working capacity of the system Understanding of any safe working load charts for the system Knowing the required wire size for the given rated safe working load Understanding the relationship between number of line parts and rated capacity 7.3 Wire rope construction and use The mechanics of wire rope Classes, designation and characteristics of wire rope Handling of wire rope Guidelines for the replacement of wire rope Wire rope slings The reeving of multiple-sheave blocks Resin-poured spelter socket terminations Page (E-16)(2) Last printed 10/10/2008 9:59:54 AM Revision Date 11/8/04

(E-16) OPERATOR TRAINING AND QUALIFICATIONS FOR HYDRAULIC EQUIPMENT BASED PULLING AND LIFTING SYSTEMS 7.4 Pulling and Lifting System Assembly Requirements Understanding the assembly sequence for the system Understanding the tie-down details for the system (welds, clamps, bolts) Understanding all field connection details used as part of the system (bolts, pins) Understanding the post-assembly hook-up and commissioning activities Understanding system load test requirements following installation 7.5 Pulling and Lifting System Safety Devices Understanding the safety devices incorporated in the system Understanding how to verify the performance of the safety devices Hazardous area operating requirements 7.6 Inspection and Maintenance Requirements Understanding post-installation inspection requirements Understanding routine inspection requirements Being able to complete inspection records and logs In addition all operators will be certified riggers in accordance with API RP-2D. Page (E-16)(3) Last printed 10/10/2008 9:59:54 AM Revision Date 11/8/04

(E-17) VERTICAL TEST MACHINE PROCEDURE 1 PURPOSE 1.1 The purpose of this procedure is to establish standard procedures for accessing the Vertical Test Machines. To perform any work on the top employees will have to climb the stairs or go up by manlift and then transfer over to the Test machine. This work is generally performed by members from different departments. It is crucial that everyone get on the same page prior to working 35 to 45 feet in the air. 1.2 Working at heights is extremely dangerous and the following guidelines must be strictly adhered to: 2 SCOPE Page (E-17)(1) 1.2.1 A permit Assessing the Vertical Test Machine must be obtained prior to anyone working up on the top of the test machines. 1.2.2 A Fall Protection Checklist must be completed prior to anyone working up on the top of the test machines. 1.2.3 A JSA must be completed prior to performing any work on top of the test machines. 1.2.4 Employees must take extreme caution when climbing the stairs. 1.2.5 If going up by manlift, personnel must be trained in manlift and must have a working radio for each manlift. Extreme caution must be taken when transferring from the manlift to the platform on top. 1.2.6 No one will be allowed up the stairs or up by manlift without first obtaining a Permit. 2.1 This procedure covers all personnel working or inspecting on the top of the Vertical Test Machines in Houston yard. 3 RESPONSIBILITY 3.1 The Houston Yard Superintendent is responsible for ensuring that this procedure is adhered to by all personnel. 4 PROCEDURE 4.1 Permit must be obtained prior to going up the Vertical Test Machine. If going up top to perform work a JSEA must be performed before obtaining a Permit to Access the Test Machine. Also a Fall Protection Checklist must be completed mainly to help Last printed 10/10/2008 10:00:12 AM Revision Date 3/19/08

(E-17) VERTICAL TEST MACHINE PROCEDURE assure that the proper anchor points are available to employees before going up. Permit will expire at end of shift when employees change. New Permit must be obtained each shift. 4.2 Versabar employees and contractors will follow Versabar s rule of holding onto the handrail. Tools must be hoisted up. One hand must be free to hold onto the handrail. 4.3 Personnel going up the Vertical Test Machine must have a working radio for communication. 4.4 When hoisting equipment up or down keep in mind that handrails are only rated for 200 lbs of force. 4.5 Do not let anyone rush you. 4.6 If you are expecting to be up there for a while, bring water. 4.7 A Person will be assigned to watch 100% of the time while personnel are accessing the Vertical Test Machine. 4.8 Manlifts must stay far back during a lift. 4.9 Prevention from dropping all tools and equipment must be a priority. 5 RELATED DOCUMENTATION 5.1 Permit to Access Vertical Test Machine (E-17)(F-1) 5.2 Fall Protection Checklist (D-11)(F-1) 5.3 JSA Form (B-8)(F-1) Page (E-17)(2) Last printed 10/10/2008 10:00:12 AM Revision Date 3/19/08