MEMO

Nabors Corporate Services, Inc.

515 West Greens Road
Suite 1200
Houston, Texas 77067-4536
Phone: 281.874.0035
Fax: 281.775.8431
DATE: August 26, 2016 www.nabors.com

TO: All Employees

FROM: Steve Williams, Vice President – HSE & Risk Management

RE: Guidance for Classifying & Reporting Incidents

In an effort to ensure that key personnel across our global operations are aware of how to properly classify
an HSE incident, please find descriptive information below from the forthcoming HSE-PRO-004 Incident
Management Procedure:

Incident Classification:

Class I Incidents
a. Fatality (FTL).
b. Lost Time Incident (LTI) with hospital confinement of 72 hours or more.
c. Equipment/property damage or loss in excess of $500,000.
d. Environmental spill or emission in excess of $250,000.
e. Includes third party fatality, injury/illness and property damage alleged to be associated
with Nabors operations within the foregoing thresholds.

Class II Incidents
a. Lost Time Incident (LTI) with overnight hospital confinement up to 72 hours.
b. Restricted Work Case (RWC).
c. Equipment/property damage or loss from $50,000 - $500,000.
d. Environmental spill or emission from $50,000 - $250,000.
e. Includes third party injury/illness and property damage alleged to be associated with
Nabors operations within foreign thresholds.

Class III Incidents

a. Medical treatment with no overnight hospitalization.
b. Equipment/property damage or loss from $10,000 to $50,000.
c. Environmental spill or emission from $10,000 - $50,000.
d. Includes 3rd party injury/illness and property damage alleged to be associated with Nabors
operations within the foregoing thresholds.

Class IV Incidents
a. First Aid Case (FAC) and Information Only (IFO) incidents.
b. Equipment/property damage or less than $10,000.
c. Environmental spill or emission less than $10,000.
d. Includes third party injury/illness and property damage alleged to be associated with
Nabors operations within the foregoing thresholds.
 MEMO

Class V Incidents
a. Any incident not covered in Class I-IV, either not work related or attracting media attention
(PER).
b. Alleged injury/illness (ALD).
c. Non-reportable environmental spill or emission.
d. Third party incidents where Nabors had no involvement.
e. Non Recordable Fatality.

Definitions:

• Alleged Injury/Illness (ALD) – an injury/illness or incident that cannot be confirmed to be work

related.

• Environmental (ENV) - an incident involving the release of a liquid, solid or gaseous contaminant
to the environment.

• Equipment Damage (EQP) - an incident resulting in damage to equipment or assets, including

third party equipment.

• Fatality (FTL) - a death resulting from a work related injury or illness, regardless of the time
between the incident and death.

• First Aid Case (FAC) – All first aid cases. Includes FSA and FAP.

• First Aid by Physician (FAP) – medical evaluation and/or treatment provided by a physician where
treatment is not beyond first aid.

• First Aid at the Site (FSA) – a one-time treatment and subsequent observation of minor injuries
performed at the work site, which do not ordinarily require medical care by a physician

• High Potential Incident (HIPO) – an incident or near miss that scores a 15 or above on the Risk
Assessment Matrix

• Information Only (IFO) – any work-related injury/illness that did not result in a recordable or first
aid injury.

• Lost Time Incident (LTI) – any work-related injury or illness, which results in days away from
work as prescribed by a physician or licensed health care professional.

• Motor Vehicle Accident (MVA) – any collision involving a company, rental or personal vehicle
while performing company business.

• Near Miss – an unplanned event that did not result in injury, illness, equipment/asset damage or
environmental harm but which had the potential to do so. Only a fortunate break in the chain of
events prevented an injury, fatality or damage; in other words, a miss that was nonetheless very
near.

• Off Job Injury (OFF) – an injury suffered by an employee while at work, but off tour.
 MEMO

• Personal Injury/Illness (PER) – an injury or illness suffered by an employee that is not work
related.

• Restricted Work Case (RWC) – any work-related injury or illness that keeps the employee from
performing one or more of the routine functions associated with their job or a physician
recommends that the employee not perform one or more of their job’s routine duties.

Finally, there seems to also be confusion regarding classification of near misses and safety observations.
Remember, a near miss is a result of an event. Something fell. Something swung. And personnel were in
the immediate vicinity. For example:
1. A bolt fell to the rig floor landing 5’ from the nearest employee – This would be a NEAR MISS
2. An employee walking on the rig floor notices a bolt laying on the floor appearing to have come
from the Top Drive but no one was in the immediate area – SAFETY OBSERVATION

Our expectation is for 100% visibility – meaning ALL incidents shall be reported to your supervisor
immediately. It is very important that we classify all events properly in order to ensure accuracy and
measure our progress toward Mission Zero. Thank you for your efforts and support.