High Arctic Energy Services L.P

TRAINING
Through its training program developed in 2001, High Arctic provides its employees with a wide range of in-house technical support and training relating to downhole operations and snubbing units. High Arctic has a fully-operational training well with derrick, snubbing unit and 120 metre wellbore at its facility in Red Deer, Alberta. The training well is pressurized and simulates an actual wellsite. Four full-time certified trainers administer the training program. The training program exceeds all government certification requirements, combines classroom work and practical experience and covers topics including packers, downhole tools, snubbing, slick line operations and procedures and fishing tool operations. There are six competency levels in the training program, all of which relate to different aspects of working with downhole operations and snubbing units. Certified Training Offered: GODI (General Oilfield Driver Improvement) This one-day course is intended for oilfield truck drivers operating vehicles with GVW of 4500 kg and over. Topics include defensive driving skills, professional driving attitude, regulations and policies, National Safety Code requirements, proper vehicle inspection, securing of loads, off-highway driving techniques, and road conditions and hazards. Students receiving 80% or better on the written examination are eligible for a reduction of up to three demerit points from their Alberta driver’s license through Alberta Registries. WHMIS (Workplace Hazardous Materials Information System) WHMIS is designed to instruct the employer and employees in the safe handling of hazardous materials used in the workplace. It educates the student on how to understand the labeling of dangerous goods, where to find information about the product, and what information to look for. This information is used to prevent incidents causing injury or death due to misunderstanding of chemical hazards in the workplace. Course length is approximately 4 – 6 hours. Transportation of Dangerous Goods TDG is an information system developed to familiarize shippers, receivers, and carriers of the hazards of dealing with dangerous goods and to teach safe handling practices when dealing with dangerous goods for the protection of the public and environment. Many products in the petrochemical industry require transport or movement from production to storage, sales, or use. These products must be identified, marked, and handled as dangerous goods to prevent incident and/or damage. Course length is approximately 4 – 6 hours. H2S Alive This course is designed to educate individuals on e dangers of and the procedures used when dealing with the H2S gas or potential for H2S gas. Instruction is given on the properties and health hazards of H2S gas, and the student is required to operate a self-contained breathing apparatus, a detector tube device, and perform rescue breathing on a mannequin. An industry standard certificate valid for 3 years is issued upon successful completion of a written examination and demonstration of the required skills. Wellhead Boom Truck Apprenticeship Training This three-day course provides training on the safe operation of boom trucks engaged in wellhead pumping, wireline, coiled tubing, and perforating operations. Topics will include boom truck inspections, safe operating practices, rules and responsibilities, reading and using capacity charts, wire rope and rigging safety, and hands-on boom truck operation. Job Hazard Assessment In order to be controlled, workplace hazards that can affect people, equipment, and the environment must first be identified and understood. Knowledge of the hazard is the first step in the development of the health and safety management system in any workplace. A hazard assessment must focus on all parts of business operations, including health and safety, environment, quality and production. This training course focuses on the identification, classification, and prioritization of the risks associated with hazards to people, property, and environment. Course length is approximately 16 hours. Incident / Accident Investigation & Root Cause Analysis An Incident/Accident Investigation System is one of the primary tools used for identifying preventative solutions after an incident has occurred. This training focuses on the investigation process and the use of the information uncovered during investigations to supply systemic reasons for what happened, and the determination of the root causes within the management systems that permitted the occurrence of the incident. The results of incident investigations also can provide a basis for determining the likelihood of recurrence and its potential severity. Incident investigations can provide valuable information that assists in the development of effective controls to minimize the potential for recurrence and loss potential of future incidents. Course length is approximately 16 hours. Fall Protection for Rig Work This on-day training course was developed in conjunction with the Canadian Association of Oil Well Drilling Contractors (CAODC) and is intended for workers, supervisors, managers, and safety personnel. Topics covered include rescue team roles, rescue equipment, ropes and knots, mechanical advantage, management of escape buggy, and rescue scenarios. Upon successful completion of the prescribed practical skills and written examination, the student is issued an industry standard certificate of completion. Pre-Requisite: Successful Completion of Fall Rescue for Rig Work course. Fall Rescue for Rig Work This one-day training course was developed in conjunction with the Canadian Association of Oil Well Drilling Contractors (CAODC) and is intended for workers, supervisors, managers, and safety personnel. Topics covered include rescue team roles, rescue equipment, ropes and knots, mechanical advantage, management of escape buggy, and rescue scenarios. Upon successful completion of the prescribed practical skills and written examination, the student is issued an industry standard certificate of completion. Pre-Requisite: Successful Completion of Fall Protection for Rig Work course. First Aid / Cardio-Pulmonary Resuscitation This course is instructional training in first aid skills and knowledge with CPR. It involves instructional and practical learning of various first aid treatments and proper procedures used in resuscitation. The teachings from this course help to enable workers to effectively and immediately deal with injuries or human incidences, reducing long-term or permanent disability to human life. Course length is approximately 16 hours over 2 days. This course is taught to the standards of the International Red Cross/Red Crescent. Driver Training and Competency The ability of our employees to perform their driving and work tasks safely and efficiently is dependent on the skills they have acquired prior to joining High Arctic Energy Services Inc. and, most importantly, the skills they will develop within our company. Therefore, it is very important that we embrace the following philosophies: High Arctic Energy Services employees will be suitably trained to operate vehicles/equipment which they are required to operate in order to perform the tasks and needs of the company. Training shall provide employees with the skills to ensure they are able to perform their work/driving activities with both competency and proficiency, and also to ensure the safety of the public, their co-workers, and themselves. Benefits accrued from the driver training program include: Reduction in operating costs. Training drivers, through proper use and efficient operation of vehicles, prevent excessive vehicle depreciation and operating costs. Trained drivers also save on fuel and excessive tire, brake, and transmission wear. Increased driver efficiency. Trained drivers are more efficient in their job performance, such as in the handling of goods, maintaining work records, adhering to route and time schedules, and in the development of systematic work habits. Increased efficiency of vehicle maintenance. Trained drivers have a greater respect for the mechanical condition of their vehicles. They note minor vehicle defects and report them for correction according to company policy. More responsible drivers. Trained drivers who are kept informed of company policy, rules and regulations, need less supervision. Trained drivers have a greater sense. When an employee is applying for a job at High Arctic, the Driver Trainer will take them on a “Pre-Employment Driver Evaluation”. Once that is complete, it is decided whether the employee requires more training in that area. If it is decided more training is necessary, the Driver Trainer will spend up to 20 hours with each individual on practical training. Once complete, the employee is taken to a government agency (i.e. Vital Documents) and signed up for the road and written test through that agency. Employees must meet established standards and certifications prior to being permitted to operate company vehicles. High Arctic has identified a number of courses and procedures that are minimum requirements for our drivers. The HSE Coordinator must monitor employee training requirements and assist in the coordination of training. Prior to an employee initially obtaining a Class 3 or Class 1 license, the individual must pass a driver evaluation with one of our company’s driver trainers. The individual must successfully pass the evaluation prior to being certified to operate independently and, depending on the results of the evaluation, inexperienced drivers may be required to drive under the supervision of an experienced driver for an additional 40 loggable drive time hours.	More Information: Competency Based Training The 500 foot test well is the cornerstone of the competency training. All of the curriculum for each level was created around how wide a variety each student could learn within the infrastructure. In each level, specific areas are focused on, such as the shop, operations, traveling, and documentation. Each section has a checklist of up to 10 specific tasks each that must be mastered by the employee to be awarded their competency certificate. Classes for the Competency Levels are administered b the Technical Trainer and Driver Trainer. The Technical Trainer spends five days combining classroom and practical training with up to five students per course. The main focus of the learning is the High Arctic Operations and Safety Policy and Procedure Manuals. Students are taught everything by the policies and procedures put into place, and are tested on their knowledge at the closing of the course by writing an exam. Once both the Competency Checklist and written exam are turned in, the employee can increase their competency level and their wage as well. High Arctic has seen some young employees realize their potential through the extra investment in their career. In total, there are six Competency Levels to be mastered. The Competency Levels begin with Class III Assistant and move through Class II and Class I. Once a Class I Assistant Level is achieved, it is up to the discretion of the Operator the employee works with, the Operations Manager, and the Technical Trainer as to whether the individual will move on to the Operator Competency Levels. The Operator Levels work the same as the Assistant Levels, labeled Class III, II, and I Operator. Once all of the levels are mastered and completed to the satisfaction of the Operations Manager, the employee may go on to a Supervisor position. Partnership In Training Early in 2002, a Partnership in Training was implemented for High Arctic’s customers and government regulators to better understand downhole operation and the operation of snubbing units. This situation has been very successful and has provided the program with highly valuable feedback. The partners involved were Bonus Well Servicing and Weathorford (Downhole Tool Division). Originally the course was developed to train and inform current and new employees of the job skills they will require to have a safe and successful career in the Snubbing Industry. Because this program became industry recognized, High Arctic started offering it to their customers and company representatives that wish to understand the process of our services better. The following outlines some of what the course involves: Packers Setting Procedures Mechanical Breakdown Positioning in the Annulars Packer Styles and Applications

TRAINING

Through its training program developed in 2001, High Arctic provides its employees with a wide range of in-house technical support and training relating to downhole operations and snubbing units. High Arctic has a fully-operational training well with derrick, snubbing unit and 120 metre wellbore at its facility in Red Deer, Alberta. The training well is pressurized and simulates an actual wellsite. Four full-time certified trainers administer the training program. The training program exceeds all government certification requirements, combines classroom work and practical experience and covers topics including packers, downhole tools, snubbing, slick line operations and procedures and fishing tool operations. There are six competency levels in the training program, all of which relate to different aspects of working with downhole operations and snubbing units.

Certified Training Offered:

GODI (General Oilfield Driver Improvement)

This one-day course is intended for oilfield truck drivers operating vehicles with GVW of 4500 kg and over. Topics include defensive driving skills, professional driving attitude, regulations and policies, National Safety Code requirements, proper vehicle inspection, securing of loads, off-highway driving techniques, and road conditions and hazards.

Students receiving 80% or better on the written examination are eligible for a reduction of up to three demerit points from their Alberta driver’s license through Alberta Registries.

WHMIS (Workplace Hazardous Materials Information System)

WHMIS is designed to instruct the employer and employees in the safe handling of hazardous materials used in the workplace. It educates the student on how to understand the labeling of dangerous goods, where to find information about the product, and what information to look for. This information is used to prevent incidents causing injury or death due to misunderstanding of chemical hazards in the workplace. Course length is approximately 4 – 6 hours.

Transportation of Dangerous Goods

TDG is an information system developed to familiarize shippers, receivers, and carriers of the hazards of dealing with dangerous goods and to teach safe handling practices when dealing with dangerous goods for the protection of the public and environment. Many products in the petrochemical industry require transport or movement from production to storage, sales, or use. These products must be identified, marked, and handled as dangerous goods to prevent incident and/or damage. Course length is approximately 4 – 6 hours.

H2S Alive

This course is designed to educate individuals on e dangers of and the procedures used when dealing with the H2S gas or potential for H2S gas. Instruction is given on the properties and health hazards of H2S gas, and the student is required to operate a self-contained breathing apparatus, a detector tube device, and perform rescue breathing on a mannequin. An industry standard certificate valid for 3 years is issued upon successful completion of a written examination and demonstration of the required skills.

Wellhead Boom Truck Apprenticeship Training

This three-day course provides training on the safe operation of boom trucks engaged in wellhead pumping, wireline, coiled tubing, and perforating operations. Topics will include boom truck inspections, safe operating practices, rules and responsibilities, reading and using capacity charts, wire rope and rigging safety, and hands-on boom truck operation.

Job Hazard Assessment

In order to be controlled, workplace hazards that can affect people, equipment, and the environment must first be identified and understood. Knowledge of the hazard is the first step in the development of the health and safety management system in any workplace. A hazard assessment must focus on all parts of business operations, including health and safety, environment, quality and production. This training course focuses on the identification, classification, and prioritization of the risks associated with hazards to people, property, and environment. Course length is approximately 16 hours.

Incident / Accident Investigation & Root Cause Analysis

An Incident/Accident Investigation System is one of the primary tools used for identifying preventative solutions after an incident has occurred. This training focuses on the investigation process and the use of the information uncovered during investigations to supply systemic reasons for what happened, and the determination of the root causes within the management systems that permitted the occurrence of the incident. The results of incident investigations also can provide a basis for determining the likelihood of recurrence and its potential severity. Incident investigations can provide valuable information that assists in the development of effective controls to minimize the potential for recurrence and loss potential of future incidents. Course length is approximately 16 hours.

Fall Protection for Rig Work

This on-day training course was developed in conjunction with the Canadian Association of Oil Well Drilling Contractors (CAODC) and is intended for workers, supervisors, managers, and safety personnel. Topics covered include rescue team roles, rescue equipment, ropes and knots, mechanical advantage, management of escape buggy, and rescue scenarios. Upon successful completion of the prescribed practical skills and written examination, the student is issued an industry standard certificate of completion. Pre-Requisite: Successful Completion of Fall Rescue for Rig Work course.

Fall Rescue for Rig Work

This one-day training course was developed in conjunction with the Canadian Association of Oil Well Drilling Contractors (CAODC) and is intended for workers, supervisors, managers, and safety personnel. Topics covered include rescue team roles, rescue equipment, ropes and knots, mechanical advantage, management of escape buggy, and rescue scenarios. Upon successful completion of the prescribed practical skills and written examination, the student is issued an industry standard certificate of completion. Pre-Requisite: Successful Completion of Fall Protection for Rig Work course.

First Aid / Cardio-Pulmonary Resuscitation

This course is instructional training in first aid skills and knowledge with CPR. It involves instructional and practical learning of various first aid treatments and proper procedures used in resuscitation. The teachings from this course help to enable workers to effectively and immediately deal with injuries or human incidences, reducing long-term or permanent disability to human life. Course length is approximately 16 hours over 2 days. This course is taught to the standards of the International Red Cross/Red Crescent.

Driver Training and Competency

The ability of our employees to perform their driving and work tasks safely and efficiently is dependent on the skills they have acquired prior to joining High Arctic Energy Services Inc. and, most importantly, the skills they will develop within our company. Therefore, it is very important that we embrace the following philosophies:

High Arctic Energy Services employees will be suitably trained to operate vehicles/equipment which they are required to operate in order to perform the tasks and needs of the company.

Training shall provide employees with the skills to ensure they are able to perform their work/driving activities with both competency and proficiency, and also to ensure the safety of the public, their co-workers, and themselves.

Benefits accrued from the driver training program include:

Reduction in operating costs. Training drivers, through proper use and efficient operation of vehicles, prevent excessive vehicle depreciation and operating costs. Trained drivers also save on fuel and excessive tire, brake, and transmission wear.
Increased driver efficiency. Trained drivers are more efficient in their job performance, such as in the handling of goods, maintaining work records, adhering to route and time schedules, and in the development of systematic work habits.
Increased efficiency of vehicle maintenance. Trained drivers have a greater respect for the mechanical condition of their vehicles. They note minor vehicle defects and report them for correction according to company policy.
More responsible drivers. Trained drivers who are kept informed of company policy, rules and regulations, need less supervision. Trained drivers have a greater sense.

When an employee is applying for a job at High Arctic, the Driver Trainer will take them on a “Pre-Employment Driver Evaluation”. Once that is complete, it is decided whether the employee requires more training in that area. If it is decided more training is necessary, the Driver Trainer will spend up to 20 hours with each individual on practical training. Once complete, the employee is taken to a government agency (i.e. Vital Documents) and signed up for the road and written test through that agency.

Employees must meet established standards and certifications prior to being permitted to operate company vehicles. High Arctic has identified a number of courses and procedures that are minimum requirements for our drivers. The HSE Coordinator must monitor employee training requirements and assist in the coordination of training.

Prior to an employee initially obtaining a Class 3 or Class 1 license, the individual must pass a driver evaluation with one of our company’s driver trainers. The individual must successfully pass the evaluation prior to being certified to operate independently and, depending on the results of the evaluation, inexperienced drivers may be required to drive under the supervision of an experienced driver for an additional 40 loggable drive time hours.

More Information:

Competency Based Training

The 500 foot test well is the cornerstone of the competency training. All of the curriculum for each level was created around how wide a variety each student could learn within the infrastructure. In each level, specific areas are focused on, such as the shop, operations, traveling, and documentation. Each section has a checklist of up to 10 specific tasks each that must be mastered by the employee to be awarded their competency certificate.

Classes for the Competency Levels are administered b the Technical Trainer and Driver Trainer. The Technical Trainer spends five days combining classroom and practical training with up to five students per course. The main focus of the learning is the High Arctic Operations and Safety Policy and Procedure Manuals. Students are taught everything by the policies and procedures put into place, and are tested on their knowledge at the closing of the course by writing an exam. Once both the Competency Checklist and written exam are turned in, the employee can increase their competency level and their wage as well. High Arctic has seen some young employees realize their potential through the extra investment in their career.

In total, there are six Competency Levels to be mastered. The Competency Levels begin with Class III Assistant and move through Class II and Class I. Once a Class I Assistant Level is achieved, it is up to the discretion of the Operator the employee works with, the Operations Manager, and the Technical Trainer as to whether the individual will move on to the Operator Competency Levels. The Operator Levels work the same as the Assistant Levels, labeled Class III, II, and I Operator. Once all of the levels are mastered and completed to the satisfaction of the Operations Manager, the employee may go on to a Supervisor position.

Partnership In Training

Early in 2002, a Partnership in Training was implemented for High Arctic’s customers and government regulators to better understand downhole operation and the operation of snubbing units. This situation has been very successful and has provided the program with highly valuable feedback. The partners involved were Bonus Well Servicing and Weathorford (Downhole Tool Division). Originally the course was developed to train and inform current and new employees of the job skills they will require to have a safe and successful career in the Snubbing Industry. Because this program became industry recognized, High Arctic started offering it to their customers and company representatives that wish to understand the process of our services better. The following outlines some of what the course involves:

Packers

Setting Procedures
Mechanical Breakdown
Positioning in the Annulars
Packer Styles and Applications