Houston Chronicle Texas oil patch safety survey Sandridge Energy Services Greg Dewey, Senior Vice President of Communications 405-429-6388 In response to reported increases in oil patch deaths and in related traffic accidents, the Houston Chronicle obtained and analyzed public information about the amounts paid from 2008-2012 by oil and gas industry employers to workers who were injured or ill enough to miss a day of work or more. We are surveying 20 oil and gas companies across the state that ranked highest among 300 companies in terms of the amounts paid in compensation in those years. The data from this analysis will be published online and in print and we’d appreciate your responses to put it in better context. Please e-mail all responses to Yang Wang or Lise Olsen at the Houston Chronicle by Thursday, August 15,2013. Yang.wang@chron.com Lise.Olsen@chron.com What was the average size of your workforce in Texas in 2012? What was the number of average employees you employed in Texas in 2008? Texas SandRid ge E&P Lariat Services Total 2008 2012 330 451 925 567 1,25 5 1,018 1. What's your main business (es) - check all that apply: a. Drilling (oil or natural gas) b. Oil/gas well supply services c. Well operator/lease holder d. Trucking/transport e. Other? (please specify) SandRidge Energy, Inc. is an oil and natural gas company headquartered in Oklahoma City,  Oklahoma with its principal focus on exploration and production. SandRidge and its subsidiaries  also own and operate gas gathering and processing facilities and conduct marketing operations. In  addition, Lariat Services, Inc., a wholly­owned subsidiary of SandRidge, owns and operates a  drilling rig and related oil field services business. SandRidge focuses its exploration and  production activities in the Mid­Continent, Gulf of Mexico, West Texas and Gulf Coast regions. 2. In which of the Texas shale plays do you operate – check all the apply ___Haynesville/Bossler (East Texas) ___Eagle Ford/Pearsall (South Texas) _X_Permian Basin (West Texas) – including Cline and Wolfcamp ___Barnett/Fort Worth Basin Other (please specify): 3. If you are a driller, how many land rigs do you have in Texas on average in 2012? 17 How many did you have in Texas in 2008? 34 If you are a well operator how many well leases did you hold in Texas in 2012? (or now) As of 1/1/2012: 6,552 Total Leases and 707,829.4865 Net Acreage. As of 8/20/2013: 2,103 Total Leases and 185,184.9085 Net Acreage. How does this compare with the number you had in 2008? ????????? If you own a fleet of trucks, how many did you operate in Texas in 2012? October = 865 How many in 2008? Approx. 600 4. Texas Department of Insurance public records show: Sandridge Energy Inc. had 176 claims related to injuries, illness or death involving one day or more totaling $ 4,193,530.04 for medical benefits and lost work time. (2012 is incomplete). Not sure where the above information came from or even what time period they are discussing. Does this seem accurate to you? Why or why not? 5. You ranked 8th out of 300 oil and gas companies covered by Workers’ Comp in terms of the total compensation paid to injured workers from 2008-12. Do you have any comment or information to help explain this data or to put it in context for a related story? To get a clear picture of SandRidge’s safety record in comparison to our peers, it’s important to benchmark against similar companies. Although we were not provided the names of the 300 companies contained within the survey, it’s likely that most are pure E&P companies. SandRidge is one of only a few companies that engages in exploration and production activities as well as midstream services and full service drilling operations support including drilling fluids, roustabout crews, pulling units, rig transportation services and drilling construction services. Injury statistics may be directly correlated to the level of drilling activity a company is performing in addition to other factors such as company size and type. History of SandRidge • SandRidge Energy (SD) acquired Riata in June 2006 • SD became publically traded in 2007 • EH&S Department formed in November 2007 • Merged the Regulatory Department with EHS in 2008. • Purchased Forest Oil Co. Permian Basin package in Dec. 2008 • Purchased Arena Energy in July 2009. • Purchased Dynamic the spring of 2012 • • • • • • • • • • • • However, since late 2007, when we launched our EHS department, we have made continuous improvements in safety. (see our most recent TRIR graph below) From 2008-2011 we have introduced our EHS Philosophy and Core Principles including: Safety & Health Manual Safety Field Handbook Safety Awards program Quarterly Production Operations Meetings Monthly EHS&R Executive Management meetings Updated EHS & R internal website Monthly EHS training and field safety meetings Emergency Response Programs Drug & Alcohol Program EHS Alert system Partner with the FAA for weather and radar systems for the GOM 6. Please provide names of affiliated companies/subsidiaries under which you also do business in Texas. (Include any previous names used if you changed names or merged with another company/ies since 2008) SandRidge E & P Subsidiaries Domestic [Foreign] Bandon Oil and Gas GP, LLC DE [TX, LA] Bandon Oil and Gas, LP Cholla Pipeline, L.P. DE [TX, LA] TX DBH, LLC DE [TX] d/b/a Dynamic Bandon Holdings, LLC [TX] Dynamic Offshore Resources, LLC DE [TX, LA] Dynamic Offshore Resources NS, LLC TX [LA] Galveston Bay Pipeline Company DE [TX] Galveston Bay Processing Corporation DE [TX] Grey Ranch Plant Genpar, LLC TX Grey Ranch Plant, L.P. TX Integra Energy, L.L.C. (formerly Riata Energy South Africa, LLC) TX [OK] Midcontinent Resources, LLC TX Sabino Exploration, LLC TX SandRidge CO2, LLC (formerly PSCO2, LLC) TX SandRidge Energy, Inc. DE [LA, OK, TX] SandRidge Exploration and Production, LLC (formerly NEG Operating, LLC) DE [AR, KS, LA, NM, OK, TX] SandRidge Midstream, Inc. (formerly ROC Gas Company; f/k/a Riata Operating Company) SandRidge Offshore, LLC TX [OK, KS] SandRidge Onshore, LLC DE [TX] SandRidge Operating Company (formerly Alsate Management and Investment Company; f/k/a Alsate Exploration, Inc.) TX [OK] SandRidge Realty, LLC OK Sierra Madera CO2 Pipeline, LLC TX SPN Resources, LLC LA [AL, TX] WTO Gas Gathering Company, LLC TX Lariat Services, Inc. Chaparral Supply, LLC - Merged into Lariat 4/1/13 (formerly Riata Services, LLC) d/b/a Chaparral Drilling Fluids Domestic [Foreign] TX [OK, KS] Hondo Heavy Haul, Inc. - Merged into Lariat 4/1/13 TX [NM] Lariat Services, Inc. TX [KS, LA, NM, OK] DE [LA, TX] [OK, TX] d/b/a LARCO [OK, TX] d/b/a Chaparral Drilling Fluids [OK, TX] d/b/a Hondo Heavy Haul [OK, TX] 7. Do you have any new safety initiatives you’ve developed to respond to the oil boom in Texas? Two men have been instrumental in the tremendous decline in incidents. Stuart Wittenbach, Vice President of Environment, Health & Safety joined SandRidge in late 2007. From 1989 to 2007 until he joined the Company, Stuart served as Director of Environmental, Health & Safety. He has over 30 years of environmental, health and safety management experience in the oil and gas industry including developing large scale safety compliance programs. Mr. Wittenbach graduated from Texas Tech University with a Bachelor’s Degree in Agronomy and a Master’s from Stephen F. Austin State University. Greg Dykes joined SandRidge as Vice President – Services in February 2013. From 2009 until he joined the Company, he was the Senior Director of EHS Compliance for Chesapeake Energy. Mr. Dykes has over 32 years of diversified Exploration and Production experience including onshore, offshore, domestic, and international operations. Mr. Dykes began his career in the oil and gas industry in 1981 with Marathon Oil Company where he served in several senior leadership positions including Vice President of Worldwide Drilling and Completions. Mr. Dykes graduated from Louisiana Tech University with a Bachelor’s Degree in Chemical Engineering in 1981. Proactive Programs for 2012 and 2013 • Training – Computer Based Training and lecture • ER and spill plans and training • Field Reviews • EHS&R Plus Reviews • SD Operational Integrity System • Behavior based training such as Balmert and Safety Leadership Sessions • Environmental Manual – updated and distributed • Safety & Health Manual – being updated in 2013 • Stop Work Authority (SWA) – formal program completed and implemented • Active participation with the Endangered Species Committees (Sand Dunes Lizard and Lesser Prairie Chicken) • Co-Chairman of the Independent producers EHS Forum. • Active participant in the Frac Focus program. • Dedicated in-house workers’ comp case management team with an on-site bilingual medic in Texas. Assist with all benefits including health plans, FMLA, 401k, sick/vacation, disability policies. SandRidge CARE and Change Together Programs for assistance. • Dedicated Nurseline with Spanish speaking registered nurses. • Post offer employee exams and fit for duty exams. Our Philosophy Phflosophy PHILOSOPHY AND COMMITMENT Through the active participation of its officers and employees. 5andRidge Energy. Inc. is committed to opelating in a heahhy. safe and environmentally friendly manner. The Company will adhere with all applicable laws and regulations and good industry practices. Sandi-iidge Energy. Inc. and its Environmental Health and Salety team are {owned on: 0 PREVENTING accidents. injuries and illnesses. I PROTEC11NG the health and safety oi' its employees. contractors, communities and the environment. 4 RESPONDING to emergency situations appropriately and The Company's employees are responsible for participation in the Company': environmental ivnirtiati-res and compiying with established guidelines in D[dEl to protect their health and safety as well as the health and salety at others around them. Tom L. Ward Matt Grubb Choimm and Chin! Ealculiv! Dflimr Final-idlunl and Oflioel ames Bennett Di Ltwcutiw Vac-I President and En-culhu Viol P1-osi-dent. Op-araliom Ch|i|d'F||ul|csnlOl'Iioer