Concho

Safety & Health

Protecting Our Workforce

Starting at the top with our most senior leaders, our employees are engaged in identifying and managing health and safety risks and are active participants in continuously improving the health and safety performance of our company. 

Safety Oversight

Ultimate oversight of our health and safety programs resides with our Board of Directors. The Health, Safety, Environmental and Reserves Committee (the HSE&R Committee) has the responsibility for oversight of Concho's approach to Health, Safety and Environmental (HSE) matters and reviews our health and safety policies, management systems and performance on a regular basis. At an operating level, our Director of HSE reports to our Senior Vice President of Operations and Production, who reports to our Executive Vice President and Chief Operating Officer.  Our Executive Vice President and Chief Operating Officer reports to our President, who reports to our Chairman and Chief Executive Officer. Senior leaders, including Senior Vice President of Operations and Production, Executive Vice President and Chief Operating Officer, President, and Chairman and Chief Executive Officer are responsible for clear and ongoing communication of Concho’s safety expectations throughout the organization.
 
To ensure accountability and drive continual improvement, HSE is one of the performance metrics considered by the Compensation Committee of our Board of Directors in determining the discretionary component of compensation for each of our officers, including the Chairman and Chief Executive Officer. The discretionary component comprises 40% of an officer’s total target opportunity under our annual cash bonus program.
 

Concho’s Safety Management System defines the fundamental safety and health principles by which we run our business. Our Safety Management System consists of five interrelated components:

1

Compliance, Injury and Illness Prevention Programs

Developing and implementing programs based on OSHA guidelines. This helps ensure that we comply with applicable Federal and State regulations focused on employee and contractor safety. Our programs include:

Stop Work Program

Every Concho employee and contractor is empowered to call for a halt to work when unsafe conditions are observed, in order to prevent incidents.

Incident Investigation Process

Specially trained personnel use a methodical and systematic approach to investigate all incidents. This process includes developing and verifying the implementation of effective corrective measures.

Near Miss Reporting and Analysis

Near miss incidents are reported and investigated based on potential severity, using the same methodology used in incidents resulting in loss.

American Exploration and Production Council (AXPC) Benchmarking

Our participation in AXPC allows Concho to benchmark recordable injury incident rates against industry peers to determine if current rates are within normalized ranges for the industry. 

Protecting Workers

We conduct atmospheric and noise sampling at appropriate intervals to ensure proper regulations are followed to protect employees and contract workers on Concho locations.

2

Leadership

Facilitating effective safety and health leadership throughout Concho. This includes leadership at the Board level from our HSE&R Committee. Additionally, annual safety leadership courses are developed to educate supervisors to drive safe work practices. These programs are coupled with highly visible field presence from health and safety personnel conducting safety compliance reviews for contractors and Concho employees.

3

Improvement

Employing a continuous quality improvement model to analyze and optimize our operations. Our model is based on investigations of both leading and lagging indicators, with a heavy emphasis on leading indicators such as Stop Work, Near Misses, Contractor Feedback and Hazard Observations. 

4

Training

Providing ongoing training to employees about safe work practices, regulatory guidelines, process improvements and lessons learned during incident reviews. Concho requires 100% in-person attendance each month for field training. Training over the last few years has included a variety of safety courses for Concho field supervisors including a Safety and Environmental Leadership course and an Incident Response, Investigation and Reporting course. In 2019, both field employees and supervisors were trained to use our new HSE management software designed to minimize risks, increase worker safety and achieve regulatory compliance. 

5

Contractor Accountability

Holding contract companies accountable for compliance with Concho’s expectations for providing a safe work environment. Our health and safety team conducts field compliance reviews to promote safe and compliant work practices by contractors. We also monitor contractors’ insurance, incident rates, safety policies and training programs using the widely accepted ISNetworld.

Our commitment to safety and health is paramount in providing a responsible work setting for our employees and contractors, enabling them to create value for the company, our stockholders and the communities where we work and live. 

Comprehensive Emergency Action Plan

Thorough preparation is the best way to respond to any emergency. That’s why we have developed comprehensive plans for training all Concho employees. Our plan includes:

Significant Incidents

Employees know how to respond to incidents that require immediate attention, such as a serious injury.

Releases

We have developed a comprehensive Emergency Action Plan for effective notification and management of environmental releases. We also review and update our Spill Prevention Control and Countermeasure plans on a regular basis as required by the EPA.