Frontier Materials Concrete, LLC.

Quarterly Safety Review

February 25, 2008

1. Change Culture by Implementing Safety 24/72. Process of Accountability3. Ownership 4. Training5. Pre-planning/Analysis 6. Performance Measurables / Leading Indicators 7. Communication / Information Sharing 8. Substance Abuse and Screening Program 9. Safety Committee

KEY INITIATIVES KEY INITIATIVES

MISSION POSSIBLEMISSION POSSIBLE

CHANGE CULTURE BY CHANGE CULTURE BY IMPLEMENTING SAFETY 24/7IMPLEMENTING SAFETY 24/7Goal: To change the employee thinking

pattern to practice Safety 24/7

PROCESS OF ACCOUNTABILITYPROCESS OF ACCOUNTABILITYGoal: Improve the level of safety and health

accountability throughout the company

OWNERSHIPOWNERSHIPGoal: Create an environment that promotes

management and employee ownership of Frontier’s safety program

2008 Safety Awards Program2008 Safety Awards Program

• We have changed from a cash entitlement system to a points based awards system

• Employees earn points for their safety record, for reporting and correcting unsafe situations, and for their participation in our culture

• 3 types of reports that can earn an employee points

Hazard Id ReportsHazard Id ReportsUsed to identify an unsafe situation that could possibly

cause an incident. Once an employee identifies the hazard, they correct the problem if they can and

report it, or report it immediately so maintenance can correct it.

Example: On 2/15/08 Miguel Gonzalez reported that the covers on the feed conveyor were not bolted down properly and that the wind was whipping them around in such a way that they could fall off and hurt some one. It was fixed immediately by maintenance.

19 reports

Near Hit ReportNear Hit ReportUsed when something almost happens to an employee

that could have been an incident. This report shows that the employee recognized the situation, what

they were doing wrong, and took steps to correct it.

Example: On 1/18/08 Dennis Mahan almost side swiped a car in a company vehicle that he didn’t see on I-45 because his mirrors were not positioned properly.

2 reports

Safety 24/7 ConversationsSafety 24/7 Conversations

Used when they see a fellow employee doing something unsafe and point it out to them. The

purpose of the conversation is to help remind each other to work safely so that we can all “return home

in the same condition as when we left”.

Example: On 1/30/08 Louis Delapaz spoke to Francisco Lopez about not standing on his mixer chutes when he is washing out.

8 reports

We have had a total of 2929 of these types of reports

since we began the program in January.

TRAININGTRAININGGoal: Develop and implement

creative and effective training programs that target our most “at risk” tasks

•FACTS Training

•Public Training

•Emergency Maneuvers Module

•Fork Lift Training

MSHA TrainingMSHA Training

Materials used in MSHA training

Equipment training

Sand plant

Dredge training

Future TrainingFuture Training

• Fall Protection Torso

• Confined Space Training

• Behavior Based Training

• Computer Based Training– Interactive Training– Web Based Training

PRE-PLANNING/ ANALYSISPRE-PLANNING/ ANALYSISGoal: To establish a pre-planning process to identify

hazards and controls prior to beginning a job or task

• Prior to any large project, all key personnel and outside contractors will meet to discuss – What is to take place– Safety equipment needed– Who will be working on the project– Who to report to in case of an emergency– Local emergency contact numbers– Assignment responsibilities

PERFORMANCE PERFORMANCE MEASURABLES/ LEADING MEASURABLES/ LEADING

INDICATORSINDICATORSGoal: Identify leading indicators for safety

and develop a system for routinely measuring safety performance.

Reduction in Auto ClaimsReduction in Auto Claims

2004-2005= 18 claims2005-2006= 15 Claims2006-2007= 2 Claims 2007-2008= 1 Claim

Fiscal Year

Reduction in Auto ClaimsReduction in Auto Claims

0

2

4

6

8

10

12

14

16

18

2005-2006 2006-2007 2007-2008

Previous Year

Goal

Actual-25%

-25%

-17%

-87%

Reduction in # of W/C ClaimsReduction in # of W/C Claims2004-2005= 14 Claims2005-2006= 11 Claims2006-2007= 7 Claims

Fiscal Year

Reduction in WC ClaimsReduction in WC Claims

0

2

4

6

8

10

12

14

2005-2006 2006-2007

Previous Year

Goal

Actual

-25%

-25%

-32%

-37%

COMMUNICATION/ COMMUNICATION/ INFORMATION SHARINGINFORMATION SHARING

Goal: Develop procedures to facilitate the sharing of information among the companies safety departments

• File Transfer Protocol site installed and utilized (info sharing)

• Implement “Rule of 10” conference procedure• Skills Training / Mentor Program

– F.A.C.T.S. Level I through V• Working on Safety Alert System• Safety hotline has been developed

– (281) 210-2777

Utilization of electronic billboard system

Utilization of safety banners

SUBSTANCE ABUSE and SUBSTANCE ABUSE and SCREENING PROGRAMSCREENING PROGRAM

Goal: Establish a Substance Abuse and Physical Screening Program

• Pre employment drug screening• Post accident drug and alcohol test• Reasonable suspicion testing• Random testing• Human Performance Evaluations (HPE)• Respiratory testing• CDL qualification physicals• Annual audiometric test

SAFETY/ENVIRONMENTAL SAFETY/ENVIRONMENTAL COMMITTEECOMMITTEE

Goal: Establish an effective safety/ environmental committee

• The Safety Committee will meet on a monthly basis to discuss the safety issues and future projects

• Safety/Environmental Committee will consist of:FMC Aggregates

– Safety Officer -Safety Officer– Mentor Drivers (8) -Plant Manager– 1 Plant Manager -Maintenance Manager– Production Manager -VP of Operations– VP of RMC Division -HR Manager– Maintenance Manager -1 Hourly Laborer– Human Resource Manager– Customer Service Representative

SAFETY/ENVIRONMENTAL SAFETY/ENVIRONMENTAL COMMITTEECOMMITTEE

• The Rule of 10:– The Safety Committee will be called in the event of…

• Fatal injuries• Brain injuries• Injuries resulting in partial or total paralysis• Amputation or 100% loss of use of an upper or lower

extremity• Injury resulting in blindness or partial blindness• Severe burns or severe scarring injury• Heart attack and or stroke• Severe bodily injury• Pollutant discharge• Extensive property damage or business interruption

2008, 2009, 2010 2008, 2009, 2010 THREE YEAR SAFETY THREE YEAR SAFETY

PLAN BUDGETPLAN BUDGET

Item: Confined Space Trainer Budget: $4,000

Item: Fall Protection Test TorsoBudget: $1,500

Item: Test Torso StandBudget: $1,000

2008, 2009, 2010 2008, 2009, 2010 THREE YEAR SAFETY THREE YEAR SAFETY

PLAN BUDGETPLAN BUDGET - continued

Item: Conveyor Belt Trainer

Budget: Free- Sponsored by “Ranger”

Item: Training Computer for Each LocationBudget: $8,000

Item: Liberty Mutual Online Training ClassesBudget: $3,500

2008, 2009, 2010 2008, 2009, 2010 THREE YEAR SAFETY THREE YEAR SAFETY

PLAN BUDGETPLAN BUDGET- continued

Item: Virtual Reality Training Goggles

Budget: $600/ each

Item: Virtual Reality Training Software for Each SubjectBudget: $

Item: Filming Equipment and DVD BurnerBudget: $2,000

Virtual Reality Goggles Virtual Reality Glove

2008, 2009, 2010 2008, 2009, 2010 THREE YEAR SAFETY THREE YEAR SAFETY

PLAN BUDGETPLAN BUDGET - continued

Item: JTA Updated Software Budget: $

Item: Smart Drive CamerasBudget: $55/month for each vehicle

Item: Smart Drive RouteBudget: $1,500 for each site @ 4 routes total

2008, 2009, 2010 2008, 2009, 2010 THREE YEAR SAFETY THREE YEAR SAFETY

PLAN BUDGETPLAN BUDGET- continued

Item: Fire Extinguisher Trainer

Budget: $5,000

Item: Zonar VIR Hand Held UnitBudget: $22/month for 2 years