Issue Date: 05/01/2013

Safety & Environmental

Management System Version 2.0

SECTION 4 – MANAGEMENT OF CHANGE

OCS Rig Operations
Prepared By Director HSER Gene Cella Stone Energy Corporation
Prepared By Manager GOM HSE Cobb LeBouef Stone Energy Corporation
Prepared By Senior Drilling Superintendent Jimmy Reed Stone Energy Corporation

Reviewed By Operations Manager GOM Deepwater Steve Bodden Stone Energy Corporation
Reviewed By Rig Projects Manager GOM Shelf Craig Brazan Stone Energy Corporation
Reviewed By Rig Projects Manager GOM Deepwater Craig Castille Stone Energy Corporation
Reviewed By Operations Manager GOM Shelf Michelle Hebert Stone Energy Corporation
Reviewed By E & C Manager GOM Shelf Greg Hernandez Stone Energy Corporation
Reviewed By E & C Manager Deepwater Chris Whitney Stone Energy Corporation

Approved By VP GOM Shelf and Deep Gas Kevin Hurst Stone Energy Corporation
Approved By VP GOM Deepwater Keith Seilhan Stone Energy Corporation

Version Number: 1.0 Issue Date: 11/15/2011

Version Number: 2.0 Issue Date: 05/01/2013

Commitment
Stone Energy Corporation is committed to the Health and Safety of its employees, contractors, and
the communities where it operates. We will operate under sound environmental practices and will
conduct our operations in compliance with all applicable laws, regulations, and standards.

Management Expectations
 All employees and contractors are individually responsible / accountable for self, coworkers, and
community when it comes to safety.
 All personnel, by actions and example, will strive to ensure a safe work place for employees and
contractors.

 All personnel will respect the communities and areas we work in through compliance and
environmental awareness.

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Section 4 – Management of Change Version: 2.0
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Contents
4. MANAGEMENT OF CHANGE .............................................................................................. 3
4.1 GENERAL ......................................................................................................................
3
4.2 CHANGE IN FACILITIES ....................................................................................................
3
4.2.1 CHANGE IN CONTRACTOR FACILITIES, OPERATING PROCEDURES, OR EQUIPMENT ..... 3
4.2.2 SIGNIFICANT CHANGES IN WELL DESIGN & EXECUTION PLAN .................................. 3
4.2.3 CHANGES TO STONE ENERGY FACILITY OPERATING PROCEDURES .......... 4
4.3 CHANGES IN PERSONNEL ............................................................................................... 4
4.3.1 CONTRACTOR PERSONNEL ................................................................................. 4
4.3.2 OPERATOR PERSONNEL ..................................................................................... 4
4.4 MANAGING THE CHANGES ............................................................................................... 4
4.4.1 CONTRACTORS MOC PROCESS ............................................................................ 4
4.4.2 STONE ENERGY’S MOC PROCESS FOR WELL DESIGNS & OPERATIONS .................... 4
4.4.3 STONE ENERGY’S MOC PROCESS FOR CHANGES TO THE SEMS PROGRAM
5

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4. MANAGEMENT OF CHANGE

4.1 GENERAL
The management at Stone Energy has established Management of Change (MOC) procedures to
identify and control hazards associated with change and maintain the accuracy of safety
information. Stone recognizes that a facility or well is subject to continual change to increase
efficiency, improve production, operability and safety, accommodate technical innovation, and
implement mechanical improvements.

On occasion, temporary repairs, connections, bypasses, or other modifications may be made out of
operating necessity. Any of these changes can introduce new hazards or compromise the
safeguards built into the original design. Care must be taken to understand the process, facility, and
personnel safety and environmental implications of any changes. Although some changes may be
minor with little likelihood of compromising safety or environmental protection, all changes may
have the potential for disruption, injury, or business loss.

From a rig operations perspective, Stone Energy shall utilize their MOC procedures when it
involves changes to Company assets such as a facility or well. However, changes to contractor
owned assets such as a MODU, Platform Rig or Well Service Equipment shall be governed by the
MOC process of the owner. Communication of an MOC from Stone Energy to Contractor and from
Contractor to Stone Energy is a requirement of Stone Energy’s SEMS Program.
4.2 CHANGE IN FACILITIES

4.2.1 CHANGE IN CONTRACTOR FACILITIES, OPERATING PROCEDURES, OR EQUIPMENT

Stone Energy will execute a Bridging Document with MODU, Platform Rig and Well Service Unit
Owners that will provide details on the Contractors MOC process.

Stone Energy’s management plan requires the Contractor to be responsible for implementing their
MOC process, which will include Stone Energy, when modifications, component failures, critical
maintenance, bypass or changes could affect the operation and capability of the drilling or service
equipment, the operating procedures of the drilling or service equipment, and the well execution
plan.

Examples of critical equipment and processes the Contractor’s MOC process will involve Stone
Energy are as follows;

a. Well Control Equipment

b. Circulation & Mud Process Equipment
c. Hoisting Equipment
d. Drill String & Landing String
e. Station Keeping Equipment
f. Emergency Response Equipment & Evacuation Plans

4.2.2 SIGNIFICANT CHANGES IN WELL DESIGN & EXECUTION PLAN

As noted in section 4.1, Stone Energy’s MOC process will govern changes in well design and the
execution plan. For Stone Energy’s required MOC relative to well design and execution plan, refer
to Rig Operations MOC form.
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For significant changes associated with the well execution plan that involve critical third party
services, Stone Energy’s MOC process will govern and the facility owner (Drilling Contractor) will
be included in the process. For Stone Energy’s required MOC relative to third party MOC plan,
refer to Rig Operations MOC form.

4.2.3 CHANGES TO STONE ENERGY FACILITY OPERATING PROCEDURES

Changes to Stone Energy facility operating procedures will be managed through the Production
Operations MOC process as found in Production Operations Section 4 Management of Change.

4.3 CHANGES IN PERSONNEL

4.3.1 CONTRACTOR PERSONNEL

Stone Energy’s management fully recognizes contractor personnel working offshore do so on a
rotational basis and while offshore work in shifts. Thus there is no MOC process required for normal
and routine changes in personnel due to rotation or shift. However, Stone Energy’s management
also recognizes that key individuals can make profound contributions to the success of project in
terms of safety, efficiency and morale. Thus key positions will be defined in the Bridging Document
which will require an MOC and agreement by both parties for a voluntary / optional / controllable
change to occur. Mandatory or uncontrollable changes in key personnel will be addressed by the
Contractor and Stone Energy and a suitable replacement will be agreed upon.

4.3.2 OPERATOR PERSONNEL

Stone Energy’s management fully recognizes their field personnel working offshore do so on a
rotational basis and while offshore work in shifts. Thus there is no MOC process required for normal
and routine changes in personnel due to rotation or shift. However Stone Energy’s management
also recognizes that key individuals can make profound contributions to the success of project in
terms of safety, efficiency and morale. Thus key positions will be defined in the Bridging Document
which will require an MOC and agreement by both parties for a voluntary / optional / controllable
change to occur. Mandatory or uncontrollable changes in key personnel will be addressed by the
Contractor and Stone Energy and a suitable replacement will be agreed upon.

4.4 MANAGING THE CHANGES

4.4.1 CONTRACTORS MOC PROCESS

A contractor’s MOC process will be defined when the Bridging Document is developed.

4.4.2 STONE ENERGY’S MOC PROCESS FOR WELL DESIGNS & OPERATIONS
A description of Stone Energy Corporation’s MOC Process can be found in the following flowchart
(Click Here For Link) and is described below:

4.4.2.1 INITIATION OF THE MOC

A. Basis For Changes

B. HSE considerations and Hazard Analysis as appropriate

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C. Procedure Changes and Impact

4.4.2.2 REVIEW PROCESS

For Rig Operations, refer to Rig Operations MOC form (Click Here For Link) and the Rig
Operations MOC flowchart (Click Here For Link) for further information.

During the review process the following will be addressed as found in the MOC form:

 Impacts of proposed change on the health of personnel

 Impacts of proposed change on the safety of personnel
 Impacts of proposed change on the environment
 Impacts of the proposed change on separate but unrelated upstream or downstream facilities
 Impacts of the proposed change on area wide emergency plans
 Necessary time period to implement changes
 Necessary revision to safe work practices (if applicable)
 Necessary revisions to the training program (if applicable)
 Communication of the proposed change to the appropriate personnel
 The duration of the change, if temporary
 Necessary revisions of the safety and environmental information as found in Rig Operations
Element 2

4.4.2.3 REQUIRED AUTHORIZATIONS

Refer to Rig Operations MOC form (Click Here For Link) and the Rig Operations MOC flowchart
(Click Here For Link) for further information.

4.4.2.4 RECORDS REQUIRED FOR AUDIT

Record Requirements are defined in SEMS Element 12: Audit of Safety and Environmental
Management Systems Program Elements.

4.4.3 STONE ENERGY’S MOC PROCESS FOR CHANGES TO THE SEMS PROGRAM
If a management of change results in a change to the operating procedures of Stone Energy’s
SEMS program, the Stone Energy SEMS Steering Committee will address the change through the
SEMS Document Change Request procedures.

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