Contractor and Host Employer Relations on Oil and Gas Sites

Work in the oil and gas industry requires several different lines, so companies often hire contractors to perform specialized tasks. These host employers rely on contractors to work safely and abide by their company policies as well as federal, state, and local laws. Contractor employees need to understand their responsibilities to their contract and host employers. They also need to know how to perform their duties safely.

Contractors and their host employers work together to ensure all employees are properly trained on the hazards in their work area, and all operations on the site work together without creating hazards or causing confusion.

Company Roles

Oil and gas contractors often work with personnel from multiple companies, so it’s important to know how everyone works together on an oil and gas site. Contractors should provide their employees with general training on the work the host employer does, and common hazards associated with their job duties. Host employers are familiar with the equipment and hazards on their sites, so they’re usually responsible for in-depth training on site-specific hazards. They’re also responsible for training contractors on their policies, including emergency procedures and site remediation.

Determining which company is responsible for a specific task depends on the relationship between employers on the work site. For example, a full inventory of all chemicals must be kept on work sites, but the company that maintains that inventory can vary. A staffing agency that only provides temporary workers won’t generally keep a chemical inventory, but a subcontractor bringing on a whole team of its own people and providing its own supplies will probably maintain its own inventory.

Hazard Communication (HAZCOM)

The Occupational Safety and Health Administration (OSHA) requires workplaces to have a HAZCOM program when workers are exposed to hazardous chemicals.

A HAZCOM program evaluates chemical hazards in the workplace, trains employees on the chemicals they’ll use and provides employees with information about the hazards of those chemicals. As part of a HAZCOM program, each hazardous chemical on a work site must have a safety data sheet (SDS). An SDS contains information about a chemical, including safe handling instructions, potential health effects, and cleanup and disposal instructions.

If an SDS is missing from a work site with multiple employers, the company maintaining the chemical inventory must request a new SDS from the chemical manufacturer or distributor.

Job Preparation and Hazard Analysis

Before beginning work on a site, companies will generally perform a job hazard analysis (JHA). Some companies refer to it as a job safety analysis (JSA). A JHA or JSA identifies the major steps of a job or work task and any hazards associated with the work. A JHA also generally includes:

• Controls for those hazards
• The personal protective equipment (PPE) workers need
• Chemical handling information for all chemicals on site
• Emergency preparedness and response information.

JHAs are formal, written plans, and companies must provide documentation of the JHA to employees. Depending on company or work site procedures, a JHA may be performed by contractor personnel, host employer personnel, or both.

Incident Reporting and Prevention

Many oil and gas host employers and contractors follow formal incident prevention and reporting procedures. Depending on the nature of the work, contractor employees may follow their own internal procedures, the host company’s procedures, or a combination of both. Incidents can include:

• Chemical spills
• Injuries or illness
• Fires
• Property damage
• Motor vehicle accidents
• Criminal activity
• Near-misses

A near miss, also known as a near-hit, is an incident that almost occurred and could still happen if the issues that caused the near-miss aren’t corrected.

All incidents must be reported to appropriate personnel, and incident scenes should only be disturbed to treat injuries or control damage. All site employees should have the responsibility to stop work when they notice hazards or other risks to personnel, equipment, or the environment.

Host Employer Policies and Procedures

Some host employers have policies designed to ensure site changes and multiple operations work smoothly. A management of change (MOC) program establishes procedures to identify and control potential hazards because of work or process changes.

An MOC process should include:

• A risk assessment conducted by all impacted employees
• A work plan that addresses the time of the change and any control measures
• Authorization of the work plan by responsible employees

Simultaneous operations (SIMOPS) refer to two or more operations in the same location at the same time that don’t normally overlap, such as drilling and well completion on the same pad. Contractors and host employers should discuss SIMOPS procedures and changes to a JHA or specific work tasks involved with SIMOPS.

Compliance and Training Requirements

Contractors may have to show host employers their own policies and training documentation to ensure their employees are trained in line with host employer policies. Host employers who use contractors for regulated or permit-required tasks may also require contractors to have a written training program.

These training programs often include specific requirements for:

• Authorized and affected personnel
• Verification of training and certifications
• Any other required documentation for federal, state, and local regulatory agencies

All contractor employees must be able to understand and follow all work site and company policies. If a company has any employees who aren’t able to read or speak English, at least one other person should be available to translate policies for those employees.

Contractors are important personnel on many oil and gas sites. However, contractor personnel must be properly trained in their roles and how their duties interact with other operations on the site. When all contractor personnel are on the same page, they can work together to extract resources safely and efficiently.

View additional resources:

• Our blog, Q&A: How to Set Safety Expectations with Contractors provides more information
• Our EHS platform solution for Contractor Management helps you coordinate and track contractors
• Our course library offers contractor-specific training