Terracon McKay Ltd. is committed to protecting the health and safety of our employees, sub-contractors and clients and other parties who may be affected by our activities. At Terracon McKay we believe that all injuries and accidents are preventable. To achieve this goal we are committed to adhering to performance standards, safety protocols, safe work practices, job and worksite hazard identification and control, external and internal audits, required training and complying with regulatory requirements. Moreover, every employee’s ongoing commitment and proactive support of our safety programs and agenda results in exceptional performance in workplace safety.

Senior Management’s Commitment to Safety
Terracon McKay’s overall focus of the Environmental, Health and Safety (EH&S) Program is to achieve zero Lost Time Accidents (LTA), “Nobody Gets Hurt” and returning home safely at the end of every shift, and protecting the environment. These issues are constantly emphasized by senior management.

The program scope describes senior management’s commitment to reducing accidents by hazard identification and control, ongoing inspections, an excellent training process, and open communication with employees for addressing EH&S issues. In order to be effective in implementing the EH&S Program, Terracon McKay’s President attends all the company’s safety meetings in our Fort McMurray office as well as at client sites. He is assisted in his effort to maintain employee safety awareness by all Board of Directors of the company and management. These individuals constantly plan for employee involvement and ensure the allocation of sufficient resources for work tasks and managing their Safety System. They are committed to meeting with each employee in the field during site visits to emphasize that managing safety means being aware of our environment and current activities. The President and all senior management firmly believe that employee involvement is essential to sustaining long term safety results. They consider Health and Safety to be an ethical, professional, personal and legal obligation.

Program Administration/Technical Services
Implementation of the EH&S program is administered by the Safety Director, who is assisted by one full-time Safety Coordinator in Fort McMurray and a part time Safety Assistant in Calgary. The field safety protocol implementation is administered by the Safety Coordinator in Fort McMurray. The President ensures that adequate resources are available for implementation of the EH&S Program. Enforcement of Terracon McKay’s Safety Policy and government rules and regulations is monitored through monthly safety meetings, inspections, task analyses, and internal and external audits. Written procedures for disciplinary actions for violation of Occupational Health and Safety (OH&S) and company rules are posted at all work sites.

Safety Achievement and Awards

• Terracon McKay has achieved a zero Lost Time Frequency for 2007. The target for every year is zero.
• Terracon McKay has maintained a Small Employer Certificate of Recognition (SECOR) since 2002 and the Certificate of Recognition (COR) since 2007.
• Terracon McKay participates in WCB’s PIR (Partnerships in Injury Reduction) Program, which is sponsored by Alberta Employment and Immigration. Under the PIR Program, Terracon McKay has been awarded a 20% maximum allowable rebate by WCB in 2008 for our exemplary safety performance.

Safety Program Highlights

• Terracon McKay uses a rigorous screening process in the selection of competent workers relating to technical qualifications, practical experience, driver checks, medical checks, safety tickets, driving history and reference checks. This policy also influences employee reliability, productivity, safety and the profitability of the company. A follow up safety orientation with employees after three months’ employment ensures that employees retain critical information.
• Terracon McKay has a policy forbidding the use of cellular telephones by employees while they are operating a company vehicle.
• Job Hazard Assessments (JHA) for all current jobs are updated annually with the full participation of our employees.
• Terracon McKay knows that orientation and training provide the company the opportunity to increase morale and productivity and to reduce incidents. We have enhanced the EH&S Program to reflect this strategy. We utilize a written testing program within the orientation process to ensure that a new hire has a good understandings of their responsibilities and rights. Terracon McKay’s offer of employment is contingent upon the acquisition/holding of various safety tickets (as required) and keeping them current. Many employees have taken safety courses such as Accident Investigation, Fall Protection, H2S Alive, and TDG Safety. Employees do not undertake any tasks without ensuring that they have the proper safety checks.
• Emphasis is placed on the employee’s right to refuse unsafe work. Management emphasizes that if you can’t perform the job safely, don’t do it.
• The company requires every prospective employee to have a good driving record, as evidenced by submission of a current Driver’s Abstract. Drivers’ Abstracts are thoroughly reviewed prior to employment with the company, and are thereafter checked on a periodic basis.
• A negative alcohol and drug test result is a prerequisite for employment with Terracon McKay. This policy includes pre-access testing and testing for cause and incidents, and is in line with our clients’ requirements.
• Terracon McKay offers employees in-house WHMIS trainers, experienced and qualified/trained Incident/Accident Investigation personnel, TDG trainers, qualified Auditors, and facilities to train personnel in OSSA, PST and CSTS. Given our seasonal employee turnover, this increases safety indoctrination within the company. The majority of our safety training is given in-house, with the exception of First Aid and H2S Alive.
• New hire and young worker safety initiatives, leadership development, drug testing, and ongoing improvements in the employee/management relationship regarding safety, and solicitation of employee commitment to the PIR Program are all being conducted within the company.
• Emphasis is placed on Field Level Risk Assessment (FLRA). FLRAs, updated regularly, are practiced rigorously by Terracon McKay’s employees prior to starting a job. This creates a strong foundation for building an incident/injury free culture at the work site.

Terracon McKay insures its EH&S Program is compliant with OH&S Code, particularly in such areas that are specific to tasks conducted by the company and its employees.

Terracon McKay demands 100% attendance and participation in all monthly safety meetings.

The company has in place a cash bonus and annual awards program which recognizes safety performance. Denial of the SIR (Service and Safety Incentive Recognition and Reward) bonus program can be instituted against any employee as a result of non-compliance with any facet of Terracon McKay’s Loss Control Management Policy.

Terracon McKay supports leadership development activities and encourages employees to further their education with motivational leadership courses such as ACSA’s Leadership for Safety Excellence.

Hiring of Sub-Contractors
Terracon McKay insists that if the services of a service supplier (sub-contractor) are required, they must have a safety self-monitoring process in place. The intent of this standard is to ensure Terracon McKay engage in business with only those companies able to self-manage their Safety and Environmental performance.

Summary
In summary, safety excellence and notable performance achievement are the result of Terracon McKay senior management’s commitment to safety and the employees’ awareness of and active participation in sustaining long term safety results within the company.