Industry Awards Program
Safety Award for Excellence (SAFE)
Selection Criteria
This document
describes the procedures and criteria used by the Bureau to administer the annual SAFE Program.
The SAFE Program recognizes exemplary performance by Outer
Continental Shelf (OCS) oil and gas operators and contractors. It also
highlights to the public that companies can conduct offshore oil and gas
activities safely and in a pollution-free manner, even though such
activities are complex and carry a significant element of risk.
Each year, the Bureau presents the SAFE Award on both District and
National levels:
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The Region
and District Offices present the District SAFE Award to OCS companies
displaying the most exemplary performance on a single platform, rig, field,
unit, or throughout an entire District. District Offices may present SAFE
Awards for any of four categories including the outstanding high activity
operator, moderate activity operator, production contractor, and drilling
contractor. An outstanding operator and contractor conducting
simultaneous operations on one facility may be nominated as two separate
candidates in their respective categories. Each district may present up to
four SAFE Awards each year.
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The Bureau
Headquarters Office presents the National SAFE Award to OCS companies
displaying the most exemplary performance throughout the nation, taking
into consideration a company’s performance in each of their respective OCS
districts where operations are held. The four National SAFE Award
categories include the same categories of operator and contractor as
identified for the District SAFE Award. |
The National SAFE Award does not rely on the District SAFE
Award as a candidate source; rather the candidates are selected from the
operators displaying the best nationwide performance ratings. However, any
District SAFE Award received by a National SAFE Award candidate during the
award year will be considered a plus during the National SAFE Award
selection process.
Award Ineligibility
During the award year, companies are ineligible for the
Bureau
National SAFE Award when any one of their OCS facilities experiences an
operations-related fatality; a pollution spill of significant size and/or
environmental significance; or a P-103 Incident of Noncompliance (INC)
referred for civil penalty review. Companies that incur one or more of the
aforementioned incidents are also ineligible to receive the District SAFE
Award in the district where the incident occurred; however, they may still
qualify for the award in another district. If a District Supervisor feels
there is sufficient reason to mitigate any of these disqualification
factors, they must provide the justification in writing.
Qualification of Operators
The Bureau recognizes two categories of operators for production
activities--High Activity Operator and Moderate Activity Operator.
Qualification of operators is based on production levels as expressed in
Barrels of Oil Equivalent (BOE) and the number of in-service components, for
example, fired vessels, pumps, well bays, pipelines, meters, compressors,
and fire fighting systems. Components inspected and INCs issued by the
Bureau on behalf of and explicitly for the United States Coast Guard will not
be considered in the qualification and rating of operators at this time.
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A company that qualifies under the High Activity category
would need to meet the following criteria: |
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Produce
at least 10 MMBOE per year. |
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Operate a
minimum of 1,000 in-service components during the year. |
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A company
that does not qualify for the above category, may qualify for the
Moderate Activity category if they meet the following criteria: |
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Produce at
least 1 MMBOE per year. |
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Operate a
minimum of 100 in-service components during the year. |
These criteria are a reflection of the amount of activity on
the OCS and do not account for land-based activities, international
activities, or a company's financial strength. The complexity of
operations may also be considered in selecting among operators with
comparable safety and compliance records.
Qualification of Contractors
The Bureau currently recognizes two categories of contractors --
Drilling Contractor and Production Contractor. All eligible contractors
(see Award Ineligibility) qualify for consideration under the SAFE program
with greater weight given to contractors with higher staffing and activity
levels.
National SAFE Award Presentation Ceremony
The SAFE Award will be presented, along with the Bureau
Corporate Leadership and Corporate Citizenship Awards, in April of each year
during the Bureau Industry Awards Luncheon held in Houston, Texas.
District
SAFE Award Process
Nomination Letter
The nomination letter is the initial recognition of a
potential District SAFE Award recipient. The inspector submits this letter
to the supervisory team leader, for review and concurrence, who then
forwards the letter to the District Supervisor. At this point, the
nominated company becomes an official candidate. The District Supervisor
convenes a meeting with the supervisory team leader and the inspectors to
review the achievements narrated in the candidate nomination letter.
Selection Criteria
The following criteria groupings allow the nominating
inspector(s) an opportunity to comment on each performance area and the
reasons an operator or contractor should receive the District SAFE Award.
The nomination letter must be as explicit as possible for each category.
-
Result of Inspections - Number of inspections,
number of components inspected, and number of incidents of noncompliance
written against each company during the award year.
-
Record of
Events - Number and severity of major accidents, spills, fires,
blowouts, explosions, injuries, and fatalities.
-
Operational
Considerations - Overall condition of facility, equipment maintenance,
and housekeeping; accuracy, completeness, and availability of records;
observation of regulatory awareness; knowledge of contingency plan
provisions; ability to locate reference documents; and cooperation,
attitude, and knowledge of overall operations.
-
Technology
- Use of the best available technology to primarily enhance the safety
aspects of operations, plus an overall assessment of the training of
personnel using this technology and employee’s general knowledge on matters
of safety and good operation.
District Supervisor Review
Inspector participation is directly related to the success of
the SAFE Program. Inspector participation, promotion of the program,
and management of the candidate selection process is the responsibility of
the District Supervisor. Supervisors also administer the processing of
awards and any documentation requested by the Regions.
Documentation
Examples of documentation for District Awards:
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Initial District SAFEAward
Nomination Letter |
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Results of
a
candidate’s District performance review |
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District SAFE
Award
citation |
Regional Supervisor Review
After receiving the District nominations, the Regional
Supervisor conducts a review to confirm candidate performance. Recipients
of the District SAFE Award will be notified of their selection and invited
to participate in any local ceremonies and the Industry Awards Luncheon
for recognition.
National
SAFE Award Process
The National Safe Award does not utilize a nomination
procedure to identify award candidates as does the District Safe Award
process. Instead, potential SAFE Award candidates at the National level are
screened through a two-step process comprised of statistical analysis and
in-depth meetings involving the Bureau Headquarters, Regional, and District
personnel to determine a company’s overall performance on the OCS.
Selection Procedure and Review
The first step in selecting National SAFE Award candidates is
a statistical analysis of a company’s record of INCs for the year as
determined through the Bureau Inspection program. Each INC is weighted to
reflect the added potential for human injury and/or harm to the
environment. The resulting weighted INC-to-Component ratio or Safety Index
compares the safety performance of each company to that of others and to the
average OCS company within their respective category thus reducing the field
of candidates to a more manageable level.
The second step for selecting National SAFE Award candidates
is the review of a company’s offshore performance by means of correspondence
and meetings involving the Bureau District, Regional, and Headquarters personnel. Discussions are held to gather information in regard to the same four
categories as outlined under the District SAFE Award Process Selection
Criteria section thus provide the national SAFE Award Committee (SAC) with a
better understanding of a company’s compliance, knowledge of regulations,
and attention to safety; operational complexity and challenges; and
innovative approaches to existing and future operations. Only the top
candidates who show outstanding performance in each of their respective OCS
districts will be considered a finalist for the National SAFE Award.
Candidate Selection
Once all candidates have been thoroughly reviewed, the SAC
will choose up to five finalists for each of the four categories. The
finalists of the National SAFE Award will be notified of their selection and
invited to participate in the Annual Industry Awards Luncheon at which
time the SAFE Award winners will be announced.
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