HSE at H&P

Safety performance in the drilling industry is typically measured based on OccupationalSafety and Health Administration ("OSHA") recordable injuries and the active rig yearsworked without an OSHA recordable injury, lost-time, or disabling injury. We view thesemetrics as lagging indicators, which can and have encouraged the wrong behavior suchas under reporting incidents. While we still track these metrics for regulatory purposes, wehave improved our safety efforts using a prevention-based methodology called C.A.R.E.(Control and Removal of Exposures).Our employee safety program now focuses on serious injuries and fatalities (SIFs), whichplaces more emphasis on near misses and injury exposures, especially those with SIFpotential. We believe it is important to take a more holistic and proactive approach toidentify safety issues. By focusing on both actual and potential safety events, we use our SIFsystem to prevent serious injuries and fatalities as opposed to relying purely on incidentsreported after they happen.Our data has identified that approximately 10% to 15% of all OSHA recordable injuriesare events in which valuable lessons learned are produced that can be used to reducepotential serious injuries in the future. The remaining recordable cases may not providethe necessary learning opportunities to prevent future serious injuries. Similarly, the dataalso indicates that SIF Potential incidents, all of which provide information to help preventfuture serious injury or fatality, may occur more frequently than recordable incidents