2007 LESSONS LEARNED SOLUTIONS INGAA SPRING MEETING

2007 LESSONS LEARNED & SOLUTIONS INGAA SPRING MEETING FRIDAY, APRIL 18, 2008 R. DAVID SHEEHAN, JR. Chief Executive Officer SHEEHAN PIPE LINE CONSTRUCTION CO.

I. MANPOWER SHORTAGE II. SCHEDULE III. RIGHT-OF-WAY/LANDOWNER ISSUES

10, 000 6, 859 Note: UA Manhours are approximately 20 -25% of total manhours

Pipeline Industry Workload (Union Statistics) 2006 2007 2008 UA Manhours 3, 680, 000 6, 859, 000 10, 200, 000 Total Hours Worked 16, 400, 000 30, 600, 000 45, 500, 000 7, 600 14, 000 21, 000 Total Number of Workers Employed Based on 34 weeks at 63 hours per week

I. MANPOWER SHORTAGE A. Consequences 1. Competition for Personnel a. Pay More Hours b. Bonuses c. Standby 2. Schedule Slippage a. Not Enough Workers b. Lower Productivity

I. MANPOWER SHORTAGE B. Solutions 1. Training – Training - Training 2. Recruitment 3. No Retirements Allowed 4. Extend Work Season

I. MANPOWER SHORTAGE B. Solutions 1. Training – Training - Training 2. Recruitment 3. No Retirements Allowed 4. Extend Work Season

II. SCHEDULE ISSUES Lessons Learned A. There are 12 months in the year Solutions Plan for 15 B. You can work year round #1 Be sure to tell BLM C. You can work year round #2 Buy more mats - a lot more!

II. SCHEDULE ISSUES Lessons Learned D. You can work year round #3 Solutions Be sure to finish the job you are on before moving to the next one E. Avoid all scenic waterways There are not enough HDD rigs to drill everything

III. RIGHT-OF-WAY/LANDOWNER ISSUES A. Communication B. Extra Work Space C. Access Roads D. Agreements