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. Four members of Denbury’s Board are representatives on the Board’s Sustainability Committee. One of the Committee’s primary oversight responsibilities is to review with senior management and provide advice and oversight with respect to the Company’s performance of health, safety, protection of the environment, climate change and sustainability targets, as well as compliance with applicable health, safety and environmental (“HSE”) laws, rules and regulations.

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. 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 0.60 for 2019. The Bureau has not yet published an industry average TRIR for 2020. By comparison, Denbury’s TRIR was 0.47 in 2019 and 0.56 in 2020. Likewise, the oil & gas extraction sector indicated an average DART of 0.40 for 2019 while Denbury’s DART was 0.35 in 2019. An industry average for DART for 2020 has not yet been published; however, Denbury’s DART in 2020 was 0.70. We strive to have zero safety-related incidents each year.

Denbury not only continuously monitors the safety performance of our employees, but also the safety performance of our contractors. In 2019, Denbury’s employees and contractors’ combined TRIR was 0.88 and DART was 0.64. In 2020, Denbury achieved our best TRIR of 0.84 with employees and contractors combined. Our employees and contractors’ combined DART in 2020 was 0.61.

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.

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 contractors 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.

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.

In response to the COVID-19 pandemic, Denbury established and maintains a corporate task force to manage the company’s protocols to protect the health and safety of its employees and mitigate the impacts of COVID-19, while minimizing business interruptions.  As a result of these efforts, employees are able to continue safely performing their jobs and interacting with contractors and the community.