IADC elects 2006 chairman, officers

November 2005 DDRILLRILL BBITSITS Page 1

IADC held its 65th Board ofDirectors Meeting on 20 October2005 in Houston and elected its

2006 officers.Claus Chur was elected Chairman of

the International Association ofDrilling Contractors. He is a member ofthe KCA DEUTAG Board and isDirector-Europe/Middle East/Russia,based in Bad Bentheim, Germany.

Robert Long was elected ViceChairman of IADC. Mr Long isPresident, Chief Executive Officer anda member of the Board of Directors ofTransocean Inc.

John Lindsay was re-elected asIADC Secretary-Treasurer. Mr Lindsayis Vice President, US Land Operations,for Helmerich & Payne Inter-

national Drilling Co.Lee Hunt, IADC President, and

Brian Petty, IADC Senior VicePresident Government Affairs, were re-elected.

Scott Gordon, Vice President-Division Manager Gulf Coast Divisionof Unit Drilling, was re-elected VP-IADC Land Division.

Danny McNease, President, CEO,Chairman of the Board of RowanCompanies, was re-elected VP-IADCOffshore Division.

Darrell Johnson, VP Underbal-anced Systems for WeatherfordInternational Ltd, was elected VP-IADC Drilling Services Division.

The marine division of RandySmith Training Solutions,Alliance Maritime Training,

has become the first training provideraccredited under the IADC BallastControl and Stability Program, operat-ed in conjunction with the Inter-national Nautical Institute of London.

Accreditation was awarded followinga site visit to Alliance headquarters bySteve Kropla, IADC Director ofAccreditation & Training, and DougOlson of Alstom, representing theNautical Institute.

Alliance Maritime Training will pro-vide accredited courses in MODU,TLP and spar stability from its trainingcenters in Houston; Lafayette, La.;

Aberdeen, Scotland; and Cairo, Egypt.Accreditation allows Alliance to awardClass B stability certificates, whichcomply with standards of the USCoast Guard and the InternationalMaritime Organisation and with flagstate requirements.

The ballast control and stabilityaccreditation program establishesspecifications for training providersand course curriculum guidelinesbased on the ballast requirements ofIMO Assembly Resolution A.891(21).The course curriculum is intended tofulfill international flag state trainingrequirements for Ballast ControlOperator, Barge Supervisor andOffshore Installation Manager licenses

serving aboard an MOU. The systemhas been approved for individualsseeking those licenses on vessels regis-tered in the Marshall Islands andVanuatu. IADC is seeking additionalapproval from the US Coast Guardand other flag states.

Accredited stability courses can beused as the starting point for an IADCBallast Control Operator Certification.Certification can be obtained withdocumentation of sea time served andwith verified completion of key ballastcontrol tasks through the use of on-board logbooks.

For more information, contact SteveKropla at ext 211 (steve.kropla@iadc.org).

Safety alerts issuedAlert 05-36: Improper use

of hand tool results in injury;

Alert 05-37: Dropped object

— improper rigging of drum

sling;

Alert 05-38: Ladder incident

— driller fractures back and

wrist in fall;

Alert 05-39: Health issue —

soft tissue infections offshore

(MRSA).

www.iadc.org/alerts.htm

Rig census readyThe ReedHycalog 52nd

Annual Rig Census is now

available. IADC will have a

summary in the November/

December issue of DrillingContractor.

IADC ballast control program awards accreditation

DRILL BITSNovember 2005

Volume 15, Number 11

Accreditation updatesWellCAPAccreditation pending:• SAS Industries, Houston,

Texas (new).Accreditation awarded:• Welltekindo Nusantara,

PT., Indonesia (conditional);• Instituto Mexicano del

Petroleo, Mexico (condition-al).

HSE RIG PASS Accreditation pending:• Nabors International Inc,

Houston, Texas (new);• Gyrodata Inc, Houston,

Texas (renewal);• SW Jack Drilling Co,

Indiana, PA (renewal);• Surmar S.A. de C.C.,

Campeche, Mexico (new);• High Plains Technology

Center, Woodward, Okla.(renewal);

• CAZA Drilling Inc, Denver,Colo. (renewal).

IADC HSE Committeerevises safety books

The HSE Committee has com-pleted revisions on the “IADCSafety Meeting Topic and RecordBook” and the “IADC Rig SafetyMeeting Topic Book.”

The “Safety Meeting Topic andRecord Book” provides more than75 safety topics, as well as space torecord crew attendance. The “RigSafety Meeting Topic Book” con-tain about 140 meeting topics.

Both books should be availablearound mid- to late November.

Reserve your copies today bycontacting IADC Publications at1/713 292 1945, ext 215, orloretta.krolczyk @iadc.org.

November 2005DDRILLRILL BBITSITSPage 2

IADC welcomes new associate editorLinda Hsieh has joined the IADC

as associate editor for Drilling Contractormagazine. Ms Hsieh will also assumeresponsibility for IADC’s monthlynewsletter, “Drill Bits,” and manageIADC’s media relations.

“Linda brings to IADC excellentqualifications,” remarked IADC

President Dr Lee Hunt. “I am confi-dent that Linda will make a strong con-tribution to IADC’s communicationsdepartment.”

Ms Hsieh will report to IADC VicePresident/Publisher Mike Killalea.Linda Hsieh can be reached at ext 219(linda.hsieh@iadc.org).

European tax workshop on 9 NovIADC will hold an informal meeting

of member company tax specialists on9 Nov at Amsterdam’s Crowne PlazaHotel. It is free to members.

The purpose is to bring togetherIADC European tax professionals fordiscussions on current topics in theEU and abroad. Among the topics willbe the practical problems of bringingrigs in and out of markets like the

Netherlands, Norway, the UK and theCaspian area. Broader subjects — suchas transfer pricing and deemed profitschemes in the developing world —will also be discussed, with an empha-sis on West Africa.

For more information, contact BrianPetty at 1/202 293 0670 (brian.petty@iadc.org) or Anne Otten31/24 3600759 (anne.otten@iadc.org).

IADC advises Indian investigatorsIADC Vice President - Middle East

and Asia Ken Fischer recentlyappeared before the panel investigat-ing the 27 July 2005 disaster thatclaimed ONGC’s Bombay High Northplatform.

The explosion and fire resulted in theloss of more than ten workers andcaused damage to a nearby jackup rig.

The investigation committee, led byformer ONGC Chairman S.K.Manglik, is charged with determining

the cause of the incident and withmaking recommendations to preventsimilar occurrences in the future.

IADC has pledged its full coopera-tion to the committee and is providinginformation for an assessment ofglobal HSE management practices,including the use of the IADC HSECase Guidelines.

For more information, contact KenFischer at ext 202 (ken.fischer@iadc.org).

IADC wants to hear from youIADC is working to make it easier to

move rigs in Oklahoma.Difficulty in obtaining oversize or

overweight load permits in the statehas delayed rig moves, and IADC isworking with the Oklahoma Indepen-dent Producers Association to stream-line the permitting process.

IADC is seeking information on rigmove permits from members operat-ing in other states on the following:

• Does the state you operate in allow

you to obtain a yearly permit to includeoversize/overweight loads?

• Does your state provide for anonline system to obtain special permitswhen needed?

• If you have to obtain a special per-mit each time, how long does it take toobtain the permit?

Please send answers, or any otherinformation regarding the permittingprocess, to Joe Hurt (joe.hurt@iadc.org).

Rigs achieveASP milestones

Rigs listed below achieved ASPsafety milestones for the years indi-cated since last the LTI:Four Years• Comanpa CA, Rig Comanpa 22;• ENSCO Offshore UK Ltd, Rig

ENSCO 100;• Pride Foramer, Rig Pennsylvania;Two Years• Union Drilling Inc, Rigs 35, 1;• Kuwait Drilling Co, Rig 16;One Year• Energy Drilling Co, Rig 7;• KCA DEUTAG, Rig T-79;• Parker Drilling, Rig CIS Region;RecordableTwo Years• Express Drilling Systems, Rig

EXP 4.

ReedHycalogannual rig census

ReedHycalog, a Grant Pridecocompany, presented an Annual RigCensus at the IADC Annual Meetingin Houston. IADC’s official maga-zine Drilling Contractor will publish asummary in the November/December issue. For more informa-tion, contact Linda Hsieh, ext 219(linda.hsieh@iadc.org).

IADC Drilling Gulfof Mexico 2005

IADC Drilling Gulf of Mexico2005, endorsed by the AmericanAssociation of Drilling Engineersand sponsored by NobleCorporation, will be held at theOmni Houston Hotel Westside on 30Nov-1 Dec 2005. Registration beginsat 7:30 am in the Texas BallroomFoyer.

For additional information, pleasecontact Leesa Teel, ext 210(leesa.teel@iadc.org).

The IADC Training Committeehas approved the proposeddraft of the IADC Comp-

etence Assurance Accreditation Pro-gram, paving the way for its imple-mentation in 2006.

The program is designed to reviewand audit company CompetenceAssurance Programs to make sure theymeet standards on developing andensuring the skills of their personnel.

Programs to be accredited will bereviewed for: Training Policy andProcedures Documents; Identificationof Job Positions; Training Resourcesand Methods; Assessment Systems;Recordkeeping Systems; and QualityAssurance.

George Edwards of Global-SantaFe, Chairman of the Comp-etency Subcommittee, presented the

draft at the October meeting of theCommittee.

Other members of the subcommit-tee include Dado Matkins ofTransocean (Training CommitteeChairman); Farell Moughon ofPride International; Victor Flemingof Rowan Companies; Scott Bell ofGlobalSantaFe; John Portier ofNabors; Luther Johnson ofTODCO; Tom Mangum of VetcoGray Inc; Tom Standley of FMC;and Kris Wilson of AberdeenDrilling Schools.

Implementation of the IADCDrilling Industry Accreditation Pro-gram for more generalized types oftraining is also scheduled for 2006.

For more information, please con-tact Steve. Kropla, ext 211 (steve.kropla@iadc.org).

November 2005 DDRILLRILL BBITSITS Page 3

Competence Assurance on the way

Price increase for WellCAP and RIG PASS

IADC announced a price increasefor WellCAP and WellCAP PlusCertificates and RIG PASS cards,

effective 1 Jan 2006.WellCAP full course (fundamental

and supervisory) certificate and num-ber prices will increase from $20 to$25 each. WellCAP Plus certificateswill increase from $25 to $30 each.Prices for introductory level certifi-cates will stay unchanged, as will pro-gram accreditation and renewal fees.

RIG PASS cards will increase from$5 each to $6.50 each for IADC mem-bers and from $7.50 to $10 each fornon-members. New cards will containpre-printed bar codes compatible withthe SafeGulf system to be implement-ed in the Gulf of Mexico. RIG PASSproviders will also have the option ofprinting their own cards and bar codesin a system similar to WellCAP’s.

Steve Kropla, IADC Director ofAccreditation and Certification, saidthe price increases were necessary for

increased program auditing forWellCAP and RIG PASS. Industryactivity has resulted in a scarcity ofmember volunteers available for audit-ing measures. As a result, IADC willrely more on third-party auditors toreview applications and to monitorproviders.

Mr Kropla noted that the RIG PASSprice increases also resulted from data-base modifications and data reportingrequired to comply with the SafeGulfprogram developed by major opera-tors in the Gulf of Mexico. Mr Kroplastated there will also be a data report-ing charge for integrating older RIGPASS cards into the SafeGulf system.This marks the first price increase forWellCAP certificates since the pro-gram was implemented in 1995. It isthe first increase in RIG PASS pricessince the cards were redesigned in2000. For more information, contactSteve Kropla, ext 211 (steve.kropla@iadc.org).

IADC backs US-Braziltax treaty

In advance of a meetingbetween President Bush andBrazilian President Lula thismonth, IADC is supporting a callfor negotiations on a bilateral taxtreaty between the two countries.The treaty would provide addi-tional commercial certainty for oiland gas investments and fordrilling contractors operating inBrazil. Given a complex tax envi-ronment, a treaty would greatlybenefit both US and Braziliancompanies by assuring clarityabout potential tax liabilities. Atreaty would further stimulateinvestment flows and spur greatermutual economic development.Tax treaties exist between the USand virtually all its major tradingpartners to make transparent andenforceable tax claims, generallyavoiding lengthy and unduly nec-essary audits.

For more information, contactBrian Petty 1/202 293 0670(brian.petty@iadc.org).

IADC welcomes 13 new members

• Classic Drilling Co, Texas;• Cruzen Drilling Co Inc,

Oklahoma;• Driltech LLC, Louisiana;• Forster Drilling Corp, Texas;• Foster and Hendricks Mfg

LLC, Texas;• Mixon Drilling Inc, Texas;• Norton Energy Drilling,

Texas;• Particle Drilling Technologies

Inc, Texas;• Psychemedics Corp, Texas;• Regional Clean Sea

Organisation, UAE;• Scorpion Offshore, Texas;• Suvira International Inc,

Texas;• Songa, Texas.

Issued monthly by the International Association of Drilling Contractors

Global Leadership for the Drilling Industry

Ed Kautz, Chairman

Paul Bragg,Vice ChairmanJohn Lindsay, Secretary-Treasurer

Lee Hunt, PresidentLinda Hsieh, Editor

Kathye Sargent,Associate Editor

PO Box 4287, Houston,TX 77210-4287 USA. 1+713 292 1945 for all extensions listed;fax, 1+713 292 1946; info@iadc.org.

November 2005DDRILLRILL BBITSITSPage 4

Industry pushes for faster BLM permitting

Testifying before a US SenateAppropriations Subcommit-tee, Logan Magruder, Pre-

sident of the Independent PetroleumAssociation of Mountain States,called for expedited BLM permits foroil and natural gas activities on feder-al onshore lands.

Mr Magruder noted that 3,700 per-mit applications were pending in theIntermountain West and that BLMlands there contain 201 Tcf of natu-ral gas.

Mr Magruder also cited delays inprocessing rights of way to transportnatural gas from the lease to the mar-ket pipeline, stranding natural gas.

When asked whether there areenough drilling rigs to satisfy existingBLM permits, much less additionalones, Mr Magruder cited theReedHycalog annual rig census: Atotal of 211 rigs were added to the USfleet in the last year. The census wasreleased at IADC’s recent DirectorsMeeting and will be summarized inthe November/December issue ofDrilling Contractor.

Mr Magruder was testifying onbehalf of the US domestic producerassociations and IADC.

For additional information, contactBrian Petty 1/202 293 0670(brian.petty@iadc.org).

IADC, partners fight travel regulations

IADC, ADC, NOIA, OMSA,OOC joined in challenging thepotential impact on offshore

E&P of a federal proposal for travelwithin the Western Hemisphere. Theproposal could have the unintendedconsequence of requiring workers tocarry passports to US offshoredrilling and production locations.

The joint association commentnoted that the offshore energy sectoroperates under a unique set of lawsthat were developed long before9/11-related security considerations.Under these laws, an offshore facilityattached to the US seabed is consid-ered a “point” in the US. But adrilling rig, e.g., isn’t considered a

point in the US if disengaged fromdrilling but transiting to another sitewithin the US Exclusive EconomicZone. Workers in this mode might berequired to carry passports whentraveling to and from locations, eventhough originating in the US.

The joint letter asks that theDepartment of Homeland Securityspecifically exclude mineral, oil andgas, and other energy productionactivities within the US EEZ fromthe passport requirement.

For additional information contactBrian Petty 1/202 293 0670(brian.petty@iadc.org) or AlanSpackman, ext 207 (alan.spack-man@iadc.org).