Final Safety Culture Policy Statement

4310-VH-P

DEPARTMENT OF THE INTERIOR

Bureau of Safety and Environmental Enforcement

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AGENCY: Bureau of Safety and Environmental Enforcement (BSEE), Interior.

ACTION: Notice.

SUMMARY: The Bureau of Safety and Environmental Enforcement (BSEE) issues this Final

Statement of Policy to announce its expectation that individuals and organizations performing or

overseeing activities regulated by BSEE establish and maintain a positive safety culture

commensurate with the significance of their activities and the nature and complexity of their

organizations and functions. The BSEE defines safety culture as the core values and behaviors

of all members of an organization that reflect a commitment to conducting business in a safe and

environmentally responsible manner. Further, it is important for all lessees, the owners or

holders of operating rights, designated operators or agents of the lessee(s), pipeline right-of-way

holders, State lessees granted a right-of-use and easement, and contractors to foster in personnel

an appreciation for the importance of safety and environmental stewardship, emphasizing the

need for their integration into performance objectives to achieve optimal protection and

production.

FOR FURTHER INFORMATION CONTACT: Mr. Keith Petka, Safety and Environmental

Management Systems Branch at (703) 787-1736, or by e-mail at [email protected].

SUPPLEMENTARY INFORMATION:

I. Background.

On December 20, 2012, BSEE published a Notice in the Federal Register requesting

comments on its Draft Statement of Policy announcing the expectation that individuals and

organizations performing or overseeing activities regulated by BSEE establish and maintain a

positive safety culture commensurate with the significance of their activities and the nature and

complexity of their organizations and functions [77 FR 75443]. The comment period for this

notice closed on March 20, 2013.

II. Summary of Comments on Draft Safety Culture Policy Statement

In response to the Federal Register notice, BSEE received 32 sets of comments from oil and

gas companies (operators and contractors), industry associations, environmental organizations,

and individuals. In the following section, we address the general comments by topic and discuss

any changes made to the Policy Statement based on these comments. Comments that are not

related to the notice or that are outside the scope of the policy statement are not addressed. All

of the comments BSEE received are posted on www.regulations.gov, under docket number

BSEE-2012-0017.

Comments by Topic

Support for BSEE’s Issuance of Draft Safety Culture Policy Statement

A majority of commenters approved of BSEE’s publication of the draft safety culture

policy statement and identified it as an important starting point to initiate substantial discussions

focused on improving the safety culture on the Outer Continental Shelf (OCS).

nine Safety Culture Characteristics

The majority of commenters expressed agreement with the nine characteristics of safety

culture that BSEE listed in the policy statement. Some commenters recommended modifications

to the safety culture characteristics, such as the need for equipment control and integrity. In

response to these comments, BSEE has altered the title of characteristic two from “Problem

Identification and Resolution” to “Hazard Identification and Risk Management” and

acknowledged equipment control in characteristic four. The BSEE feels that these changes

better align with the common vocabulary used on the OCS for identifying potential safety issues

as well as concentrating on the inherent risk in oil and gas activities. A positive safety culture

would focus on continuously appraising hazards during the various exploration and production

activities while adequately directing resources to the highest risks in order to best enhance safety.

Other commenters suggested adding new characteristics such as implementation,

measurement and evaluation, and reward and recognition. The BSEE believes these are valuable

ideas, but are too specific for inclusion in this policy statement. It is not BSEE’s intention to

mandate safety culture requirements. The ultimate goal for releasing this policy statement is to

outline the critical traits that are present in a positive safety culture while initiating a constructive

dialogue on how regulators, industries, and the public can collaborate on improving the overall

safety on the OCS. However, we will consider utilizing these concepts as we plan future

strategies outside of this policy statement.

Safety Versus Production

Many commenters noted that the policy statement appears to subordinate safety to

production. Most of the commenters who commented on this issue pointed out that safety and

production are often viewed as being in competition with each other. All of those who

commented on this issue emphasized the need to clarify that safety should not be secondary to

production.

The BSEE agrees with these comments and has altered the policy statement to read,

“Each and every person involved in the wide range of activities associated with the offshore oil

and gas program should emphasize the need to integrate safety and environmental stewardship

into personal, company, and government performance objectives.”

Prescription of Safety Culture

Many commenters requested that BSEE refrain from mandating the adoption of a safety

culture and that the policy statement not be too prescriptive. The commenters cited the need for

flexibility in the adoption of safety culture and expressed the concern that the very act of

mandating or prescribing safety culture activities would counteract the cultural assimilation that

the safety culture statement intends to advance. It is not BSEE’s intention to mandate safety

culture requirements. The BSEE believes this would be counterproductive to building a positive

safety culture; therefore, we are not prescribing a safety culture policy.

Differences between Occupational and Process Safety

Many commenters stated that the policy statement should acknowledge a difference

between occupational and process safety. Some commenters noted that the measures taken to

advance occupational and process safety each are different: occupational safety focuses primarily

on behaviors while process safety focuses on management framework and better involves

organization leaders. One commenter stated that occupational safety efforts concentrate on

individual worker actions while process safety efforts concentrate on preventing high

consequence, low likelihood events through engineering design.

A number of commenters expressed concern that the broad direction to adopt a safety

culture is often translated into pressure on workers to avoid injuries. According to the

commenters, this would occur without a concomitant requirement for a safety culture

commitment throughout all levels of the organization.

The BSEE agrees with the comments that there is a difference between process safety and

occupational safety. In an effort to involve all types of safety and all organization personnel, the

definition of safety culture and several parts of the statement have been edited to better

encompass all roles in an organization, and characteristic three has therefore been edited to read,

“All individuals take personal responsibility for process and personal safety as well as

environmental stewardship.”

Lack of Environmental Awareness

Several commenters stated that the policy statement does not adequately present the need

for OCS organizations to focus on both safety and environmental issues. One commenter

described the link between environmental safety and process safety that is vital to the OCS safety

culture. Another commenter indicated that the statement “must clearly and consistently

emphasize the importance of environmental health and safety in addition to human safety.”

The BSEE agrees that environmental protection plays a significant role in the activities

on the OCS and we have edited the policy statement to reflect this importance.

Learn from Others

A number of commenters stated that other organizations and Federal agencies have

already led safety culture transformations and encouraged BSEE to study their experiences. The

BSEE appreciates this suggestion and is currently working to develop information sessions and

workshops with various organizations that have had extensive experience with safety culture in

comparable industries (e.g., Federal Aviation Administration, Nuclear Regulatory Commission,

Petroleum Safety Authority Norway, etc.).

Stop Work Authority

Many commenters encouraged the use of the stop work authority. They emphasized that

stop work authority could be used as a tool for workers to use in preventing accidents and as a

safety cultural assimilation method. Several of those commenters who advocated special

mention of stop work authority within the policy statement noted that while it deserves emphasis,

it also needs to be carefully described in order to prevent misuse. According to the commenters,

if the stop work authority were improperly applied or guided, it could exacerbate already

deteriorating conditions.

On April 5, 2013, the final rule “Revisions to Safety and Environmental Management

Systems” was published in the Federal Register [78 FR 20423]. This rule mandates that all

operators implement stop work authority on all OCS activities regulated by BSEE. Therefore,

BSEE is not making any changes to the policy statement with regard to stop work authority.

Further Involvement

Many commenters noted that BSEE should continue the dialogue on the topic of a safety

culture policy statement. The majority of these comments contained recommendations that

BSEE provide further details about safety culture in a future guidance document. Other

commenters stated that BSEE should engage in an ongoing dialogue with stakeholders to discuss

safety culture so that continued progress could be made.

Through public comments and industry input, BSEE has identified several tools that can

effectively encourage a positive safety culture on the OCS. These include:

1. Forums and workshops with industry and other agencies to discuss safety culture

initiatives;

2. Establishing a research program that can identify safety areas in need of

improvement; or

3. Writing guidance documents that describe best practices and case studies for safety

culture advancement.

The BSEE is currently exploring these options and will look towards further collaboration with

industry and the public.

III. Statement of Policy

The BSEE defines safety culture as the core values and behaviors of all members of an

organization that reflect a commitment to conduct business in a manner that protects people and

the environment.

It is necessary for everyone participating in the exploration, development, and production of

offshore oil and gas—from a contract service provider, to the leaseholder, to the government

regulator—to realize the importance of a culture that promotes safety and environmental

stewardship to a vigorous and respected offshore energy industry. Each and every person

involved in the wide range of activities associated with the offshore oil and gas program should

emphasize the need to integrate safety and environmental stewardship into personal, company,

and government performance objectives. Continued improvement in safety and environmental

protection will demonstrate to the American public that access to the valuable offshore energy

resources can be accomplished while respecting the environment and protecting the offshore

workers.

Experience has shown that certain personal and organizational characteristics are present in a

culture that promotes safety and environmental responsibility. A characteristic, in this case, is a

pattern of thinking, feeling, and behaving that emphasizes safety, particularly in situations that

may have conflicting goals (e.g., production, schedule, and the cost of the effort versus safety

and environmental protection).

The following are some of the characteristics that typify a robust safety culture:

1. Leadership Commitment to Safety Values and Actions. Leaders demonstrate a

commitment to safety and environmental stewardship in their decisions and behaviors;

2. Hazard Identification and Risk Management. Issues potentially impacting safety and

environmental stewardship are promptly identified, fully evaluated, and promptly

addressed or corrected commensurate with their significance;

3. Personal Accountability. All individuals take personal responsibility for process and

personal safety, as well as environmental stewardship;

4. Work Processes. The process of planning and controlling work activities is implemented

so that safety and environmental stewardship are maintained while ensuring the correct

equipment for the correct work;

5. Continuous Improvement. Opportunities to learn about ways to ensure safety and

environmental stewardship are sought out and implemented;

6. Environment for Raising Concerns. A work environment is maintained where personnel

feel free to raise safety and environmental concerns without fear of retaliation,

intimidation, harassment, or discrimination;

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7. Effective Safety and Environmental Communication. Communications maintain a focus

on safety and environmental stewardship;

8. Respectful Work Environment. Trust and respect permeate the Organization with a focus

on teamwork and collaboration; and

9. Inquiring Attitude. Individuals avoid complacency and continuously consider and review

existing conditions and activities in order to identify discrepancies that might result in

error or inappropriate action.

Although there are additional traits that amplify or extend these basic characteristics, these

nine characteristics are foundational to the development of an effective and functioning safety

culture that recognizes the need to protect people and the environment first and foremost.

Dated: May 2, 2013. James A. Watson

Director

Bureau of Safety and Environmental Enforcement

[FR Doc. 2013-11117 Filed 05/09/2013 at 8:45 am; Publication Date: 05/10/2013]