SAFETY

Powered by Management . . . Driven by our Employees . . . Valued by our Customers

• Company Profile

Based in Calgary, AB, Cathedral Energy Services operates in the four Western Canadian Properties and the Rocky Mountain regions in the United States. We have approximately 600 employees and consultants involved in our service operations for directional drilling, Wireline, gas production testing and downhole tool rentals.

The Safety, Loss Control group consists of four personnel, whom bring various operational backgrounds to provide leadership and support to the Company’s Safety, Loss Control Program. The Safety, Loss Control Manager has been involved in health, safety and the environment since 1989.

Safety, Loss Control Program

• Safety, Loss Control Philosophy

Minimizing losses for injuries, environment, equipment or property, is the cornerstone of Cathedral Energy Services operational philosophy. Management is centered in its belief that accidents are preventable and the safety of employees, the general public and the environment is one of its greatest responsibilities.

Achievement towards creating a safe and healthy workforce is focused on empowering all personnel to fully participate in the Company’s safety, loss control programs. Striving to continuously improve the knowledge, experience and competency of its workers, management invites the participation of employees and consultants in the development process. Hazard assessments, job safety analyses (JSAs), management inspections, field safety meetings, and the right to refuse unsafe work are a few examples of the Company’s proactive measures to ensure a safe work place, whether it is in the field or in our facilities.

• Safety, Loss Control Elements

1. Certificate of Recognition (COR)

   Cathedral Energy Services has been involved with the Alberta Partnerships’ Certificate of Recognition (COR) program since 2000. In 2005, two acquired divisions, Advance Wireline and Tier One Oil Services, had their own COR certificate. In 2006, Cathedral Energy Services Limited Partnership elected to have all divisions registered under one COR. The COR external safety audit was performed by Safety Coordination Services and an overall score of 87% was achieved.

2. Safety Stand Down Week

   Senior Management provided strong leadership in fostering the safety culture for Cathedral Energy’s supervisors, employees and consultants by becoming involved in the Petroleum Industry’s Safety Stand Down Week, which is held every January. In 2007, Tier One’s senior and middle management visited every field location. Directional Plus’s senior management visited every field location in northeastern British Columbia. Commencing in 2008, all Divisions within Cathedral Energy will be involved in Safety Stand Down Week.

3. ISNetworld

   Cathedral became a member of ISNetworld in 2006. The corporate safety program, training and accident statistics are stored within ISNetworld’s questionnaire and located on our Company’s dashboard. To access the data in ISNetworld, please visit our links page. (Only ISNetworld Operating Company members have the authority to access this information.)

4. Canadian HSE Registry

   Cathedral Energy Services became a member of Canadian HSE Registry in 2006. The following divisions are registered: Cathedral Energy Services Ltd Advance Wireline Directional Plus Tier One Oil Services To access the Canadian HSE Registry information, please visit our links page. (Only Canadian HSE Registry Operating Company members have the authority to access this information.)

   
   

5. Petroleum Safety Services of Canada (PSAC)

   Cathedral Energy Services is a dedicated and active participant of PSAC’s sub-committees. The Company sends a representative to attend the following sub-committee meetings:

   • Health and Safety – Discussion and communication with government agencies and Operating Companies on issues dealing with transportation (cargo securement, hours of service, transportation of dangerous goods); lease site issues (lighting, lease size, ground disturbance); and drug and alcohol programs.
     
   • Oilwell Perforators – Liaison with government agencies on the following topics: explosives; radioactive sources; and well head boom truck operator’s training program.
     
   • Well Testing – Development of apprenticeship training program for well testers.

   In 2006, the Safety, Loss Control Manager volunteered his services to participate in the Alberta Employment, Immigration and Industry’s Occupational Exposure Limits working group as a representative for PSAC. The working group was responsible for discussing the adoption of the ACGIH (Association of Conference Governmental Industrial Hygienists) 2006 TLVs (Threshold Limit Values) to update Alberta’s Occupational Exposure Limits. The working group identified 46 substances to review in detail.



6. The OPTIC System™

   In 2006, Cathedral Energy Services purchased a safety management system database (The OPTIC System™) from Forge Dynamics. The database provides an opportunity to input and access all safety documents, training records, safety meetings, action logs, accident investigations, equipment maintenance records, hazard assessments, contractor management and MSDS's for all Divisions.