Home Safety and Operations Integrity

Highlights

  • 0.48 Total Recordable Injury Rate, lowest Husky rate to date
  • 0.05 Lost Time Incident Rate, 55% improvement over 2018
  • 24 Tier 1 and 2 process safety events, five of which were Tier 1
  • Pipeline incident rate of 0.7 incidents per 1,000 km, down from 2018
  • 167 reportable release incidents, down from 2018 but above 2016 and 2017 numbers; volumes of hydrocarbon released and other fluids released were down from 2018

Objectives

  • To achieve global top quartile performance in process and occupational safety by the end of 2022.
  • Promote a safety culture through embedding the principles of a High Reliability Organization and applying our systems, processes and continued learning to prevent employee and contractor injuries and illnesses.
  • Design, maintain and operate facilities and assets focused on process safety and asset integrity to realize strong operational performance.
  • Prepare, plan and practice to respond effectively to incidents with worker and community safety and environmental protection as priorities.

Safety is ingrained in our culture and part of every decision through our High Reliability Organization (HRO) principles, systems and processes, and through continued learning. Our facilities and assets are designed, maintained and operated with a primary focus on process safety and asset integrity to realize safe, reliable operational performance. In the event of an incident, community and worker safety and environmental protection are the priorities.

We launched a new safety vision in 2019, to become global top quartile by the end of 2022 in process and occupational safety as measured against industry-standard metrics – or Top Q in ’22. We strengthened our centralized organization to provide the systems, standards, tools, oversight and expertise required to achieving this vision.

Top Q in ’22 means:

  • Becoming global top quartile in process and occupational safety, as measured against industry benchmarks.
  • Being systematic and in control in all high-priority requirements of the Husky Operational Integrity Management System (HOIMS).
  • Becoming an HRO.

We have revised our approach to providing safety and operations integrity expertise, standards, systems and oversight. We deploy safety and operations integrity teams in all areas of our operations. Our structure includes a technical authority team with responsibility for technical standards, all integrity engineering, reliability and maintenance, and a continuous improvement team.

We have adopted the attributes of an HRO and are embedding a continuous improvement mindset and structured approach to ensure we remain a rapid-learning company focused on getting better. HROs operate in complex, high-hazard fields for extended periods without serious incidents, and being an HRO is proven to reduce the number and severity of incidents in high-hazard situations. The principles of an HRO are:

  • Knowledge and learning – we understand facts, interpret our environment and apply knowledge to all our activities. We seek to be a learning organization, learning from our performance and making necessary changes.
  • Standards and procedural compliance – we capture our knowledge in standards, processes and procedures, which we follow.
  • Questioning attitude – we always ask whether we understand the hazards and risks, what could go wrong, do we have the right process, procedure or tool.
  • Team backup – we support and look out for each other, intervening when something isn’t right.
  • Integrity – we do the right thing, the right way, every time.

Husky has developed a six-step Continuous Improvement (CI) methodology. This is a scientific approach using team work to focus on structured problem solving, removing defects and waste, and closing performance gaps to deliver business results. The six steps are:

  1. Define the problem
  2. Go see and assess
  3. Identify root causes
  4. Design solutions
  5. Execute improvements
  6. Validate and sustain

We are piloting this methodology in several businesses and functions, and are seeing encouraging results in both closing safety performance gaps and developing internal capabilities.

The responsibility to deliver the Top Q in ’22 safety vision belongs to everyone in the organization. Husky has defined 15 safety goals critical to achieving our vision, with each of these goals sponsored by a senior executive and led by senior leaders across the organization.

We use a number of rigorous safety programs to strengthen our safety culture by making process and occupational safety improvements on an ongoing basis. Our goal is that no one is injured on the job.

Life-Saving Rules

We employ the nine International Oil and Gas Producers’ Life-Saving Rules, which focus on activities most likely to lead to fatalities or significant life-altering injuries, using a simplified, standardized, industry- wide approach that empowers employees and contractors to stop work when it is unsafe. The rules provide specific actions for workers to follow and make it easier to identify situations that, if not properly managed, may lead to hazardous conditions.

We continually work to reduce the number of incidents, evaluating our performance to identify and address areas of potential risk and ensuring that high potential risks are not repeated in other areas of the Company by sharing what we’ve learned across the organization and tracking actions to closure.

Industry-Standard Metrics

We measure our progress using three globally recognized, industry- standard metrics: Total Recordable Injury Rate (TRIR), Lost Time Incident Rate (LTIR), and combined Tier 1 and Tier 2 Process Safety Events.

Total Recordable Injury Rate

The TRIR measures lost time, restricted work, medical aid incidents and fatalities per 200,000 hours worked.

In 2019 our TRIR was 0.48, a decrease from 0.57 in 2018, and Husky’s lowest TRIR to date.

Lost Time Incident Rate

Lost time incidents are those preventing workers from performing their jobs. We had an LTIR of 0.05 per 200,000 exposure hours in 2019, recording 13 lost time incidents, compared to a plateaued rate of around 0.11 over the previous three years.

Employees and contractors receive ongoing training in safety processes and procedures to continuously drive better performance.

Combined Tier 1 and Tier 2 Process Safety Events

A process safety event occurs when there is a loss of primary containment at a facility. The impact on people or the environment – injuries or liquid/ gas releases – determines the severity of the event, Tier 1 or Tier 2. In keeping with global standards and definitions that align with those of the American Petroleum Institute, the American Institute of Chemical Engineers’ Center for Chemical Process Safety and the International Association of Oil & Gas Producers, we track the number of process safety events that occur at our facilities. In 2019 we had 24 combined Tier 1 and Tier 2 process safety events, five of which were Tier 1.

We investigate all Tier 1 and 2 process safety events to determine how to improve process safety, equipment reliability and related operating integrity practices, and to identify barriers to improve the management and mitigation of major accident hazards.

Incident Tracking

We track all incidents and use a company-wide tool to learn from the ongoing monitoring and assessment of reported events. Integrating the reporting and review of events such as injuries, equipment failures and complaints from the public can proactively reduce the likelihood of them happening again. Investigation results, action items and what we’ve learned are incorporated in our standards and processes to minimize the potential for recurrence.

Husky Operational Integrity Management System

In 2019 we launched our updated Husky Operational Integrity Management System (HOIMS 2.0). HOIMS 2.0 is a set of interrelated policies, aims, requirements and processes laid out in 15 elements that guide our safe, reliable operations. Each HOIMS element states a specific aim, and a clear set of minimum requirements to achieve it.

In total, the 15 HOIMS 2.0 elements detail the minimum requirements to deliver safe, reliable, compliant and efficient operations at our sites. The HOIMS 2.0 framework guides all operational activity within the organization, including an ongoing cycle of accountability and continuous improvement measures.

Systematic and In Control

A key part of our Top Q in ’22 safety vision is our drive to become systematic and in control. Our safety and operations integrity organization provides expertise in ensuring assurance reviews are completed for each of our assets. Activities are assessed to improve safety and mitigate operational risk. Our aim is to be systematic and in control in all our HOIMS 2.0 elements.

The HOIMS Owners Team, consisting of senior leaders from across the Company, provides direction and guidance to ensure the management system is relevant to operations. It further provides the support and resources necessary for compliance, and shares what is learned and best practices, with the goal of continuous improvement.

To assist in being systematic and in control, we have implemented our Husky Accelerator program, initially rolled out at the Sunrise Energy Project, the Lloydminster Asphalt Refinery and the Hardisty and Lloydminster storage terminals. This program embeds continuous improvement skills and culture in the organization. It includes the use of continuous improvement and operational coaches to review projects, identify and implement sustainable and long-term solutions and develop coaching capacity within the organization.

Operations Integrity

We design, maintain and operate our facilities and assets with a focus on process safety and asset integrity, to safeguard our employees and contractors, protect the public, minimize potential risks to the environment, and shelter assets from damage or loss.

At all our operations we identify hazards, assess associated risks and work to eliminate or mitigate them. This begins before critical equipment is acquired, with strategic sourcing that ensures teams with appropriate experience participate in procurement evaluations. For example, purchases made in engineering-critical categories – those that include the delivery of services, equipment or materials that have a direct impact on the process safety, integrity and reliability of our facilities – are subject to specific review by engineers during the bid evaluation stage.

We have developed safety cases for all facilities with the potential for major accident hazards, identifying and assuring the control and mitigation measures required to manage the risk are effective.

Performing activities safely and reliably leads to efficient and consistent performance and, as a learning organization, we continually assess whether we are meeting our own expectations and requirements. We conduct audits of business units and major facilities to verify the processes and procedures in place and that they are implemented effectively.

Road Safety

In-vehicle monitoring of our fleet contributes to safe driving. In 2019 we expanded our program with an additional 465 vehicles across our upstream organization, and in 2020 we will continue to focus on implementing the drive safe program in our downstream operations. In total Husky monitors 983 vehicles under the drive safe program, which provides real time support and coaching on safe driving behaviours and reinforces our commitment to the Life-Saving Rules.

In 2019 there were 14 motor vehicle accidents involving employees and contractors, compared to 9 the previous year. Husky’s fleet of approximately 1,400 vehicles covered about 24 million kilometres, an increase from 21 million kilometres in 2018.

Ground Disturbance Damage Protection

Our ground disturbance damage prevention program protects worker and public safety, and the environment by deterring contact with underground facilities, such as pipelines. "Line strike" incidents can range from a portion of a line being inadvertently uncovered by farm or other equipment to actual contact with a line. Husky’s ground disturbance program clearly defines and communicates our procedures to minimize these risks.

We have had no enforcement line strikes since implementing our damage prevention process in 2013, even in light of increased reporting requirements to federal and provincial regulators. This process has also reduced the number and severity of non-enforcement contacts. We use a risk-based approach to continually strengthen the program.

Offshore Well Management

Our well management programs offshore Newfoundland and Labrador and at the Liwan Gas Project offshore China start at the planning stage and continue through construction, commission and operation.

Wellbore monitoring, inspection of subsea trees, testing of subsurface safety equipment, plans for blowout mitigation and an inventory of relief well materials are part of the programs. During operations, at least two independent well barriers are in place.

With other area operators we participate in mutual emergency aid partnerships and a number of international safety initiatives, including with the IOGP.

In Indonesia, we have programs and activities in place with our partners who operate facilities in that jurisdiction.

In the Atlantic region, a harsh environment with seasonal sea ice and icebergs, our comprehensive ice management plan mitigates the risk inherent in such an environment with multiple layers of surveillance and a range of ice management techniques. These include towing icebergs and using water cannons to direct them away from operational areas.

Industrial Hygiene

We protect our employees and contractors by identifying, assessing and controlling occupational health hazards. Our industrial hygiene program includes ongoing surveillance, assessment and specific control procedures for a number of recognized hazards.

Our facilities use 14 industrial hygiene hazard-specific procedures to control potential risk, including benzene exposure control, hearing conservation, respiratory protection and management of silica, asbestos and chemicals. Site-specific plans and strategies are in place, based on comprehensive assessments that are used to define, communicate and report on industrial hygiene activities.

In 2019 we completed 94 quantitative surveys, including more than 2,010 assessment samples that produced 3,900 results.

Our operations are aligned with the Globally Harmonized System of Classification and Labelling of Chemicals (GHS), placing an emphasis on hazard communication and compliance. We have a formal chemical approval process for new products, with increasing levels of review required for more hazardous chemicals. Less hazardous alternatives are investigated for use, and suitable controls are established prior to chemicals arriving on-site.

Through our water supply integrity program, we ensure the water quality at our rural facilities for our employees and contractors. Water sources at sites, including groundwater wells, tanks and cisterns, undergo maintenance and regular sampling for potable water parameters. This includes any source for washing, including eye wash stations.

Office Safety Program

We have implemented a safety program across our offices that promotes an understanding and commitment to safety similar to our colleagues in the field. The program provides a consistent approach to minimizing risk and understanding safety. Based on shared responsibility, the program ensures every individual is aware of potential office hazards, how to mitigate them and what to do in the event of an incident or emergency.

Pipeline Integrity

We monitor and manage 21,115 kilometres of pipelines, as of March 31, 2020, from the design and construction phases through to operation, maintenance, discontinuation and abandonment. This includes pipelines operated by Husky for Husky Midstream Limited Partnership.

Pipeline Integrity Management Program

Our Pipeline Integrity Management Program employs a proactive approach to managing integrity, operations and maintenance, factoring in the diverse profile of all Husky-owned and operated pipelines. We review the program regularly for alignment with code and regulatory requirements.

Our pipeline risk assessment process aligns with the safety case approach used for facilities, identifying hazards and associated risks and, dependent on the level of risk, the control and mitigation measures required. The process uses the bow tie methodology to evaluate major accident hazards associated with Husky’s pipelines, classifying pipelines according to criticality and demonstrating there are sufficient barriers and safeguards to manage pipeline risks to as low as reasonably practicable.

With the goal of improving integrity and reducing incident rates, we apply the risk-based program throughout the lifecycle of all our pipelines, including:

  • Risk assessments that identify potential integrity issues and the appropriate action taken to address them.
  • Annual integrity reviews for all pipeline systems, assessing the effectiveness of the integrity programs and making recommendations for improvements where needed.
  • Mandatory training for employees involved in pipeline operation and maintenance. The Pipeline Operations and Maintenance Manual sets requirements for the safe operation and maintenance of pipelines.
  • Investigation of any incident to establish the root cause, using what is learned to continuously improve our programs.
  • Performance targets, set annually and tracked monthly.

Geohazard Integrity Management Program

We monitor potential impacts to pipelines from geohazards including natural earth movement so we can identify and mitigate those risks. Fibre optic sensing technology, which has increased capacity and capability for long-distance distributed monitoring is installed on all new large diameter and high consequence area projects. Geohazard baseline assessments have been completed on about 30% of our pipelines, starting with those that have the highest potential consequence.

In 2019 we completed construction on a new pipeline crossing the North Saskatchewan River, replacing the line that was the source of a 2016 release caused by ground movement. A number of integrity measures are in place on the new line, including a geotechnical review as part of the design process and fibre optic monitoring.

Pipeline Incidents

In 2019 Husky recorded a pipeline incident rate of 0.7 incidents per 1,000 kilometres, a reduction from 1.04 the year before. We have reduced our pipeline incident rate by more than 70% over the past five years.

Spill Management

Preventing spills and, if they occur, immediately detecting and effectively responding, is a priority. We’ve integrated HRO principles and behaviours to strengthen our spill management approach, evaluating our performance on a regular basis and focusing on how to prevent a recurrence.

When alerted to a spill, we respond by implementing containment and recovery plans while safeguarding workers, the public and the environment, and reporting to the appropriate regulatory authority. Containment and recovery prevent migration of the released product and reduce the potential of an impact to soil or water. In the event of a release our objective is to recover as much of the release as possible. If soil or water have been affected, an assessment is conducted to determine remediation efforts, followed by ongoing monitoring.

Our site-specific spill response plans include recommended practices governing spill management and site remediation. We participate in industry spill response organizations and mutual aid agreements, both onshore and offshore, and share knowledge and best practices to further improve prevention and response. Through mutual aid agreements we can access additional resources if needed.

We track our performance to report key trends to management, continually improving our management of spills through strategic measures such as preventative maintenance and increased monitoring at facilities.

Release Incidents Count

Reportable releases include those from operating pipelines, wells, facilities and drilling activities. In 2019 we had 167 reportable release incidents, lower than the year before and better than our target of 170. The volume of both hydrocarbons and other fluids (produced process water, refined products and chemicals) released in 2019 also declined compared to 2018.

To improve accuracy of reporting, recovered volumes are tracked using vacuum truck flow meters and validated when the fluid is disposed. We recovered 98% of hydrocarbons released in 2019, above our target of 85%.

In 2019 the largest spill was 130 cubic metres of oil emulsion, released at one of our Alberta cold heavy oil production with sand (CHOPS) facilities. We contained 90% of the spill on-site and recovered 99% through free fluid recovery and soil excavation. The source of the release was a sales tank that overflowed due to a high-level switch failure. We updated the alarm system and installed a new level transmitter, along with industrial control systems to allow real-time remote monitoring of the tank level.

The largest hydrocarbon spill in 2019 was 90 cubic metres of asphalt from a tank at the Lloydminster Asphalt Refinery, all of which was contained and recovered on-site. We improved the refinery's maintenance procedure and timing of the tank farm monitoring rounds.

Emergency Preparedness and Response

When an incident occurs that could affect the community, our employees and contractors, the environment, our assets and/or our reputation, our emergency management program facilitates a consistent and effective response.

Our 24-hour emergency line provides the public, emergency responders and customers with immediate access to information and a live dispatcher with the ability to address concerns, liaise with the right people and promptly initiate a response if required. The 1.877.262.2111 emergency number is displayed at all our facilities, included on all public notification material and posted on huskyenergy.com. Some sites post a local 24-hour emergency number and calls to that line receive the same level of information and response as the corporate phone number.

We continually improve our planning and compliance programs, using training and our experience to evolve our practices.

Preparedness

Our priority is always the safety of the community and our people. To ensure we are prepared to respond to any event, regardless of size, duration or impact, we conduct regular exercises emphasizing safe, reliable, relevant and compliant processes. Our exercises also test our ability to coordinate with third-party emergency responders.

In 2019 we conducted a full-scale response exercise at our Lloydminster Upgrader complex, and our Grande Prairie and Atlantic operations, inviting regulators and other agencies to observe. Husky’s Fire Response Teams attended the TEEX Training Center in Texas to practice fire response and further develop tactical skills.

To enhance our readiness at facilities where there is the potential for a higher-consequence event, our comprehensive emergency management program includes an existing hazard review, new hazard identification, mitigation planning, the sourcing of critical equipment and training specific to those sites.

We share what we’ve learned, both internally and with our partners, including local authorities and first responders. Reviews undertaken after an incident provide a rigorous framework to analyze events and determine lessons that can be applied in other areas, continually improving our response. We participate in additional training as an active member of spill cooperatives and preparedness programs.

Response

We evaluate our local response requirements using area-specific hazard and risk assessments, and tailor, test and integrate training and equipment for individual emergency response teams. These site teams include local management and are supported by a multi-discipline corporate support team.

We build internal capacity by ensuring dedicated employees have the knowledge and skills to coordinate a response in the event of an incident involving a water body, including making sure equipment that might be needed is available. These programs incorporate planning, equipment and training to mitigate the effects of a spill.

We base our plans and procedures on the Incident Command System (ICS), the standard model used in Canada and internationally to provide a consistent, proactive and effective emergency response across all operations. It focuses our response so that the most important actions are addressed by priority and under clear accountabilities. More than 750 employees completed various levels of ICS training in 2019, including role-specific courses.

We review, update and test all Emergency Response Plans (ERPs) each year. ERPs for all facilities and operating areas are supplemented with plans for specific hazards, such as geographic response plans for potential spills, pre-wildfire plans and well control plans.

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