Document B5oXqpYr8MrEo6QLz6XbgwwaJ

ABD00026412 Process Safety Institute A Division of ABS Consulting January 17, 2002 BUSINESS CONFIDENTIAL Mr Ben Drone Engineering Manager Georgia-Gulf Corporation P O Box 91 Aberdeen, MS 39730-0091 PHA LEADER AND PHA REVALIDATION TRAINING COURSE PROPOSAL PROP-128C-02 Ben, based on your discussion with Mr Mark Taylor, the Process Safety Institute (PSI) division of ABSG Consulting Inc , operating as ABS Consulting, is pleased to submit this proposal to provide process hazard analysis (PHA) leader and PHA revaluation training to Georgia-Gulf Corporation (GGC) personnel at the Aberdeen, Mississippi, facility These training services will include (1) mclass instruction by an experienced trainer, (2) notebook material describing how to organize and lead hazard and operability (HAZOP) analyses, what-if/checkhst analyses, and PHA revaluations, (3) practical, process-onented workshop problems, and (4) a copy of A Manager's Guide to Reducing Human Error We use a hands-on approach to training -- several practice sessions throughout each course will provide course attendees with expenence in leading and documenting a PHA This proposal includes course descriptions, instructor information, references, information on both the class size/schedule and opportunities to obtain PHA leader and/or PHA revalidator certification, course options and costs, and statements concerning liability and work acceptance COURSE DESCRIPTIONS PHA Leader Training Course As outlined m Attachment 1, the PSI training course for PHA leaders incorporates two proven teaching techniques (1) lectures on the mechanics of performing an analysis and (2) workshops in which attendees lead and document HAZOP and what-if/checkhst analyses In the lecture portions of the course, our instructor will descnbe the following 1 The concepts of risk assessment and process safety management (PSM) 2 How to organize a PHA 3 How to prepare for a PHA, including Collecting information Selecting team members Scheduling Dividing a process system into sections (nodes) for analysis 4 How to lead a PHA, including Assigning team member responsibilities Using the HAZOP analysis technique Using the what-if/checkhst analysis technique 0 ABSG Consulting Inc. 10301 Technology Drive Knoxville TN 37932-3392 USA Telephone (865)675-2580 Fax (865)671-5851 ABD00026413 BUSINESS CONFIDENTIAL Mr Ben Drone PHA LEADER AND PHA REVALIDATION TRAINING COURSE PROPOSAL Page 2 PROP-128C-02 Addressing facility/stationary source siting Addressing prior incidents Addressing human factors Conducting a qualitative consequence assessment Expediting an analysis Handling common meeting problems 5 How to document a PHA, including Descnbing elements of a PHA report Resolving action items Our training will address all of the OSHA requirements for PHAs described in paragraph (e) of 29 CFR 1910 119 and the EPA requirements described in 40 CFR 68, and we can modify it to include any GGC corporate requirements Some topics, such as facility/stationary source siting, are more suited to what-if/checklist analysis than to HAZOP analysis What-if/checklist analysis is also very effective in addressing process changes (for management of change) and in addressing the hazards of simpler, less hazardous systems (such as auxiliary process systems) during PHAs Therefore, we offer to teach your prospective leaders both the HAZOP and what-if/checklist techniques so they can optimize their PHA process Our training includes several ways that human factors can be considered during PHAs Most companies find this training extremely useful because many of their accidents/incidents involve human error, particularly during startup and shutdown procedures We explain how to use the HAZOP and what-if/checklist analyses techniques to identify potential human errors during batch and nonroutine operations and to eliminate their causes In the workshop portions of this course, attendees will lead what-if/checklist and HAZOP analyses of process systems Our instructor first descnbes the process to be analyzed (our first problem is usually a chlorine unloading system), then begins the meeting The instructor initially acts as the team leader and assigns the scnbe's duties (i e , taking extensive notes of the meeting) to one of the team members The duties of leader and scnbe are then rotated periodically to give each attendee experience in performing these functions As an alternative to our example problems, we invite GGC to supply information on two or three processes familiar to your personnel The class can perform reviews on these processes as part of the course We have found this training approach to be very effective because the attendees (1) generally know the system quite well and require little class time to leam the process and (2) are accomplishing productive work for GGC while learning the various techniques This approach also demonstrates how the analysis techniques can uncover process weaknesses in designs that have already undergone standard review by the company (When PSI's example problems are used, students sometimes rationalize that the error would have been caught by their company's standard review process, thereby failing to fully appreciate the value of PHAs) If GGC elects to provide m-house processes for review, we will need information on the processes no later than 5 working days before the course begins Process Safety Institute A Division of ABS Consulting ABD00026414 BUSINESS CONFIDENTIAL Mr Ben Drone PHA LEADER AND PHA REVALIDATION TRAINING COURSE PROPOSAL Page 3 PROP-128C-02 PHA Revalidation Training Course As outlined in Attachment 2, the PSI training course for PHA revaluation incorporates two proven teaching techniques (1) lectures on the mechanics of performing a revaluation and (2) workshops in which attendees practice their newly learned skills In the lecture portions of the course, our instructor will describe the following Information necessary to gather and evaluate for a PHA revaluation Factors to consider when determining an appropriate approach for PHA revalidations How to effectively address previous PHA deficiencies and process modifications Steps necessary to prepare for, conduct, and document PHA revaluations Our training will address all of the OSHA PSM requirements for PHA revalidations described in paragraph (e) of 29 CFR 1910 119 and the EPA nsk management program (RMP) requirements described m 40 CFR 68 We recommend that the participants in this course should have already been trained in leading PHAs (such as our basic PHA course descnbed previously, or another similar course) INSTRUCTORS Our instructors are internationally recognized experts m process safety management and process hazard analysis They are among the very best m the field because they combine complete theoretical understanding of hazard evaluation techniques with the experience necessary to discriminate between techniques that work only in theory and techniques that work in practice They also have well-documented industry experience, m fact, our instructors wrote the following two books for AIChE's Center for Chemical Process Safety Guidelines for Hazard Evaluation Procedures, Second Edition with Worked Examples (referenced in 29 CFR 1910 119) and the authoritative book on how to revalidate PHAs, entitled Revalidating Process Hazard Analyses If more than one instructor is required, the lead instructor will be assisted by other expenenced PHA leaders m the workshop sessions We can provide you with resumes of the proposed instructors) once you have selected course dates REFERENCES Our students and technical contacts repeatedly tell us that we offer the best PHA and revaluation training available Please contact any of the following persons who will attest to the value and quality of our services (Note: Many of these clients worked with us as JBF Associates, Inc.; the Risk & Reliability Division of ABS Group Inc.; and/or EQE International, Inc.) Mr Kerry Ifill PSM Coordinator PCS Nitrogen Trinidad Ltd (868) 636-2205 Mr Bill Ralph Process Hazard Management BP Amoco Oil Company (409) 945-1588 Mr Andy Wiles Engineering Manager Georgia-Gulf Corporation (405) 670-0231 Mr Robert Hammann PSM Manager BP Chemicals Company (630) 961-7763 Process Safety Institute A Division of ABS Consulting ABD00026415 BUSINESS CONFIDENTIAL Mr Ben Drone PHA LEADER AND PHA REVALIDATION TRAINING COURSE PROPOSAL Page 4 PROP-128C-02 Mr Pete Aguila Engineering System Manager Georgia-Gulf Corporation (225) 298-2701 Ms Janice Minga Management System Coordinator Georgia-Gulf Corporation (662) 369-3603 Mr R J Frame Process Safety Compliance Manger BOC Gases, Inc (630) 221-0520 Mr Dusty Ferrell PSM Manager Georgia-Pacific Corporation (404) 652-4790 CLASS SIZE AND SCHEDULE PSI has taught many PHA courses at both public and client sites Based on our experience, we recommend a student/teacher ratio of no greater than 7 1 In the lectures during the morning of the first day, we can easily handle a much larger group (up to 35 students, including prospective team members) m a standard classroom arrangement, however, for the training to be effective, the PHA leader and revaluation workshops require smaller roundtable groups We propose to provide the lead instructor, who will be assisted in the workshop sessions by an additional PSI mstmctor(s) for larger classes We can schedule this training at a mutually convenient time To ensure you get the dates your want, please select some tentative dates as soon as possible We will hold your tentative dates open as long as we can, but course scheduling is confirmed only after we receive written authorizationfrom you (see Acceptance Agreement on page 7) CERTIFICATION In recent workshops, OSHA representatives stated that, to satisfy the requirements of 29 CFR 1910 119, "knowledgeable" PHA leaders must have been trained by recognized PHA experts and must have demonstrated understanding of the PHA technique(s) PSI offers a PHA leader and PHA revalidator certification program for graduates of our courses (please refer to the enclosed flyer, Attachment 3, for information on the certification program) The cost of the certification examination is included in the course fee, but a $200-per-student certification fee is due when a student submits an application for either certification If you would like to prepay the student certification fees as part of the course contract, the cost is $ 160 per student, per certification COURSE OPTIONS AND COSTS We propose classroom training services on a fixed-pnce basis, plus actual, reasonable travel costs PHA Leader Training Course The price of the standard 4-day course for new PHA leaders is $21,000, plus actual travel expenses for one instructor, for up to seven participants For 8 to 14 participants, the cost is $30,000, plus actual travel expenses for 2 instructors, and for 15 to 21 participants, the cost is $39,000, plus actual travel expenses for 3 instructors (the co-instructor[s] is present on the second, third, and fourth days only) Process Safety Institute A Division of ABS Consulting ABD00026416 BUSINESS CONFIDENTIAL Mr Ben Drone PHA LEADER AND PHA REVALIDATION TRAINING COURSE PROPOSAL Page 5 PROP-128C-02 To lessen costs, some of the course lectures and workshops can be reduced or eliminated and the course condensed into a 3-day format (see Attachment 4) The pnce of the 3-day course for new PHA leaders is $16,000, plus actual travel expenses for one instructor, for up to seven participants For 8 to 14 participants, the cost is $22,000, plus actual travel expenses for 2 instructors, and for 15 to 21 participants, the cost is $28,000, plus actual travel expenses for 3 instructors (the co-instructor[s] is present on the second and third days only) Also, GGC may provide the expenenced co-mstructors(s) to work with our lead instructor, which would reduce the cost for large classes The fixed pnce includes course notebooks and workshop matenals up to the specified student/instructor ratios If GGC provides the co-mstructor(s) for larger groups, there is a matenals fee of $100 for each additional student PHA Revalidation Training Course If purchased separately, the pnce of the 2-day course for PHA revaluation is $11,000, plus actual travel expenses for one instructor However, if purchased m combination with the PHA leadership course (e g, 3-day PHA leadership and 2-day PHA revaluation), the additional cost is $10,000, plus incremental travel expenses The fixed pnce includes copies of the course notebook, copies of the recently published AIChE CCPS book, Revalidating Process Hazard Analyses, and workshop matenals for up to 15 students We ask that you provide a suitable classroom, a color electronic projection device (e g , a Proxima or In Focus), an overhead projector, a screen, a VHS videotape player, a television, and other course amenities (snacks, dnnks, etc ) Ifyou do not have a color electronic projection device, please let us know as soon as possible so we can make other arrangements We believe it is very important for newly trained leaders to practice their skills as soon as possible on real problems To ensure a successful transition from the classroom to the real world, our instructors are available to provide one-on-one coaching and short-term assistance to new leaders during their first reviews Such supplemental training and review services are performed on a labor-rate basis of $2,500 per day We also provide audits of PHA meeting quality on a similar basis To minimize travel expenses charged to GGC, PSI would like to schedule any travel in advance in order to take advantage of discount airfares (as available) However, if the project is canceled, changed, or postponed by GGC after PSI receives written authorization from GGC to begin work, all expenses incurred by PSI to date (including travel cancellation and change penalties) will be the sole responsibility of GGC Attachment 5 lists our commercial terms and conditions We require a purchase order or a signed Acceptance Agreement (with a billing reference number -- see page 7) from you before traveling to your site Our payment terms for all training services are NET 30 days We will send you an invoice upon completion of the course Payment should be made to ABS Consulting, P O Box 846377, Dallas, TX 75284-6377 All other correspondence (e g, purchase orders, contracts, letters) should be sent to Process Safety Institute, 10301 Technology Drive, Knoxville, TN 379323392 This proposal is valid for 90 days Process Safety Institute A Division of ABS Consulting ABD00026417 BUSINESS CONFIDENTIAL Mr Ben Drone PHA LEADER AND PHA REVALIDATION TRAINING COURSE PROPOSAL Page 6 PROP-128C-02 LIABILITY Tire training materials and lectures prepared by PSI/ABS Consulting mil help prepare GGC employees to lead and revalidate PHAs However, PSI/ABS Consulting and its employees or other assigns cannot, individually or collectively, predict what will happen in the future Even when GGC personnel become proficient in the techniques taught in these courses, and even ifall ofthe techniques taught in these courses are used in GGC's internal safety program, accidents may still occur at GGC facilities Furthermore, neither PSI/ABS Consulting, nor any of its employees, subcontractors, consultants, or other assigns, make any warranty, express or implied, assume any liability or responsibility for any use, or the results of such use, of any information, product, or process disclosed in these training courses, or represent that using this material will not infringe upon privately owned rights Also, the process safety management/risk management program regulations are subject to interpretation by OSHA/EPA Therefore, PSI/ABS Consulting accepts no liabilityfor any regulatory impact that may occur at any GGCfacility Thank you for your interest in our training courses We look forward to working with you Please call me at (865) 671-5842 ifyou have any questions Sincerely, Donald K Lorenzo Executive Director ofTraining Services DKLkje Enclosures Process Safety Institute A Division of ABS Consulting ABD00026418 BUSINESS CONFIDENTIAL Mr Ben Drone PHA LEADER AND PHA REVALIDATION TRAINING COURSE PROPOSAL Page 7 PROP-128C-02 ACCEPTANCE AGREEMENT To authorize us to proceed, please ask the appropriate GGC representative to sign and return the enclosed copy of this proposal Signing this Agreement certifies that the representative is authorized to (1) sign on behalf of GGC and (2) bind GGC to the terms and conditions attached This Agreement may be amended only by a written addendum signed by both parties Approved for PROCESS SAFETY INSTITUTE Accepted for GEORGIA-GULF CORPORATION BY TITLE bnald K Lorenib Executive Director DATE January 17, 2002 BY TITLE DATE BILLING REF NO Number of Students OPTIONS (check/fill m as appropriate) 4-day PHA Leader course 3-day PHA Leader course 2-day PHA Revahdation course PHA Leader Certification (@ $ 160) How many9 PHA Revalidator Certification (@ $160) How many9 Additional PHA leader course notebooks (@$100) How many9 Authorization to purchase penalty tickets CJ O O O Process Safety Institute A Division of ABS Consulting