Employee & Contractor Safety

Live safe zero by choise

Denbury has a long-standing commitment to the highest standards for the health and safety of our employees, contractors and local communities. We recognize that providing and integrating a sound health and safety program into our business is key to our success. As we continue the evolution of our safety culture, we stress the importance of individual choices and the impact they have on our lives, both at work and at home. Our logo and theme, “Zero by Choice”, is a reminder that each employee or contractor can achieve a zero-incident workplace by making the right choices in everything we do.

CORPORATE SAFETY STRUCTURE

GRI:
403-1
Employee Health
& Safety

Denbury’s dedication to safety is built into our management structure, starting at the highest levels and extending to our field offices. Three members of Denbury’s Board are representatives on the Board’s Reserves and Health, Safety and Environmental (“HSE”) Committee. One of the Committee’s primary oversight responsibilities is to review and assess with senior management the Company’s health and safety polices, practices and procedures.

We understand that we are individually responsible for our own safety and the safety of those around us. We know that every task can be completed injury free.

Denbury has an established HSE Department that provides corporate guidance and standardization across the organization on HSE matters and is tasked with ensuring that Denbury meets or exceeds safety and environmental regulations. Our Vice President of HSE works closely with a dedicated safety team consisting of five corporate and twelve field safety employees integrated into our field operations.

Denbury has an HSE Committee comprised of senior managers from each operations department. This team meets on a regular basis to review, discuss and address safety and compliance performance. The Safety Committee identifies those areas that need improvement and then develops, launches and champions new safety programs and initiatives.

It is Denbury’s policy to conduct business in a manner that respects the environment, as well as the health, safety and security of its stakeholders.

General guiding principles for the Company, its employees and contractors:

  • Implement and maintain an HSE management system to achieve the objectives outlined in our HSE Policy.
  • Comply with all applicable HSE laws, rules and regulations, not just because it is legally required, but also because we believe it is the responsible way to conduct our business.
  • Educate and train employees and contractors to provide them with the knowledge, skills, and understanding to perform their responsibilities and duties at the highest level and maintain a safe, secure and healthy work environment.
  • Continue to minimize the impact of our business activities on the environment by implementing economically feasible projects that promote energy efficiency and use natural resources effectively.
  • Achieve continuous HSE improvement and compliance by setting HSE leading and lagging performance targets annually, auditing assets and business practices, reviewing results and regularly reporting our performance.
  • Routinely review and verify performance with audits, evaluations and other quality assurance and quality control methods.
  • Identify and assess potential risks, hazards and threats to people, the environment, and our assets, and implement reasonable and practicable actions to eliminate, mitigate, or manage these risks.
  • Empower and expect employees and contractors of the Company to immediately “Stop Work” without fear of reprisal when an unsafe condition or act is observed which could affect the safety of personnel and/or the environment and to report noncompliance or unsafe conditions and take immediate action to prevent injuries or environmental incidents.
  • Work proactively with stakeholders to develop and advance effective approaches to health, safety, security and environmental protection.
  • Provide resources necessary to manage and communicate our HSE commitment, expectations and accountability in the same manner as any other critical business function.

Compliance with our HSE Policy and working safely are conditions of employment for all employees of the Company, as well as for contractors to work with the Company. Every Denbury employee is expected to take personal responsibility to understand and comply with our HSE Policy.

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SAFETY PERFORMANCE

GRI:
403-2
Employee Health
& Safety

Each year, Denbury establishes corporate goals specifically related to employee and contractor safety performance and monitors them throughout the year. The performance statistics are continually reported to the Board, senior management and all employees to reinforce their importance. The compensation of every Denbury employee is tied, in part, to achievement of these goals, which further reinforces that safety is integral to everything we do.

Two performance indicators that Denbury closely monitors are Total Recordable Incident Rate (“TRIR”) and Days Away/Restricted or Transfer Rate (“DART”). TRIR is a rate that represents the number of Occupational Safety and Health Administration (“OSHA”) recordable incidents for every 200,000 hours worked. In 2018, our TRIR target was set to 1.00 as we strived to improve upon previous year’s performance. DART is a rate that represents the number of days away from work, work restriction or job transfer resulting from OSHA recordable incidents and illnesses for every 200,000 hours worked.

As shown in the charts below, Denbury has consistently outperformed our industry’s average TRIR and DART in recent years. The most recently published Bureau of Labor Statistics data for the oil & gas extraction sector indicated an average TRIR of 1.00 for 2017 and 0.80 for 2018. By comparison, Denbury’s TRIR was 0.36 in 2017 and 0.11 in 2018. Likewise, the oil & gas extraction sector indicated an average DART of 0.60 for 2017 and 0.40 for 2018 while Denbury’s DART was 0.27 in 2017 and 0.00 in 2018. We strive to have zero safety-related incidents each year.

Total Recordable Incident Rate

graph

Days Away/Restricted or Transfer Rate

graph2

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HSE ROAD SHOW

Denbury’s focus on safety is highlighted by our annual HSE Road Show. Company leaders, including our CEO and senior operations executives, toured every operating location to meet with all employees to discuss our commitment to safety and compliance in 2018 and 2019. Our ‘Zero by Choice’ motto was reinforced and past performance and future expectations were discussed. We plan to continue the annual HSE Road show each year going forward, and also plan to conduct a similar conference for all contractors.

RANDY SPEAKING

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CONTRACTOR SAFETY

Contractors are an integral part of Denbury’s business, and the well-being and safety of our contractor partners is equally as important as the safety of Denbury’s employees. Our employees’ engagement with contractors about safety is a standard practice. Contractor orientations and pre-job safety reviews promote both a safe work environment and clear communications.

Denbury HSE personnel conduct annual and post-incident audits of our contractors. Denbury also partners with ISN, a global leader in supplier and contractor management, to conduct HSE program audits of select contractors connected to Denbury in ISN.

We invite our contractors to inspirational safety presentations with our employees because we believe their well-being and safety is equally as important as Denbury’s employees.

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ZERO BY CHOICE REPORTING TOOL

In 2018, Denbury implemented our Zero by Choice (“ZBC”) Program (“Program”) and developed the ZBC Reporting Tool application (“ZBC Reporting Tool”). One of the cornerstones of our Program is identifying, mitigating, and communicating hazards. We encourage our employees and contracts to share their hazard observations as well as positive behaviors such as ‘Safety Conversations’, ‘Stop the Job’ examples and ‘Safe Acts’. Leading indicators, such as hazard observations of behavioral or operational conditions, provide key information regarding our culture and maintenance philosophies, which allow us to act before an incident occurs. This focus on leading indicators impacts the performance of our employees and contractors and influences the daily business objectives.

Leading indicators of behavioral and operational conditions are vital to business performance and integral to enhancing our focus on creating favorable outcomes. These indicators include substantial amounts of business related activities such as:

  • Asset Integrity – Maintenance work orders (Preventative & Corrective)
  • Hazard Observations (Stop Work Authority, Unsafe Conditions, & Unsafe Behaviors)
  • Safety Conversations (Tool utilized to track field engagements)
  • Safe Acts (Tool utilized to recognize safe behaviors of teams)

The ZBC Reporting Tool captures all leading indicators (Hazard Observations, Safety Conversations, and Safe Acts) in one place, and allows front-line workers to send in leading indicators in real time from their mobile devices, instead of relying on the old method of using either paper forms and/or emails.

Additionally, the ZBC Reporting Tool communicates with our SAP-Enterprise Asset Management (EAM) corrective maintenance program. If a report contains a Hazard Observation on a fixed piece of equipment, a notification is automatically sent to the SAP-EAM to create the corrective maintenance work order. This not only creates transparency of the hazards identified in the workplace, but also ensures maintenance is being performed to correct the hazard, and in some cases, prompt continued preventative maintenance.

The ZBC Reporting Tool has a series of reports, notifications, and dashboards that allow visibility of the data entered into the system to field and corporate leaders. Those reports and notifications are as follows:

  • Daily Report – An automated report that is emailed to the entire Operational Organization and provides an overview of the entries from the previous day
  • Stop Work Authority Notification – An automated email notification to Business Unit & Corporate Leaders advising that an engagement that required the stoppage of work took place. The notification provides the location in which the Stop Work Authority event occurred and what was done to correct it
  • Hazard Observation – If a Hazard Observation involving an Unsafe Condition on Denbury-fixed piece of equipment is reported, an automated work order notification is sent to SAP-EAM
  • Spotfire Dashboard – This dashboard displays real time data that allows business leaders and field personnel to adapt and actively improve business performance

This internal solution allows Denbury to progress our ZBC initiative through enhanced focus on reporting and sharing of leading indicators. It also allows us to further assess our HSE culture to determine if additional training, resources, or equipment are needed to help our workers perform their jobs safer and more efficiently. Additionally, this solution provides:

  • One consistent, company-wide platform of reporting, analyzing, and trending leading indicators;
  • Integration of our behavior based observation and corrective maintenance program with the ability to track a work order from the time it is entered to completion; and
  • Encouragement for our managers and personnel to engage workers throughout the organization through Safety Conversations and reporting of Safe Acts.

In 2018, the North Dakota Petroleum Council (NDPC) selected Denbury’s implementation of the ZBC Program and the development of the ZBC Reporting Tool as the recipient of their annual Excellence in Safety Award.

North Dakota Petroleum Council

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LONE WORKER MONITORING

There are times where our workers are required to work and/or travel alone in the normal course of business. In these situations, we believe it is important to have a means for our employees to seek help when needed. Denbury initiated a Lone Worker Safety program using satellite and cellular based devices capable of issuing an alert if our employee falls or triggers a SOS. In either of these situations, the alerts trigger a communication to our Control Center located at our corporate office that is monitored 24 hours a day, 7 days a week. The GPS capability of the devices also provides our employee's exact location, so help can be directed as efficiently as possible.

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