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COMPANY OVERVIEW

3 R D QU A RT E R 2016
Table of Contents
I. About Us

II. Operating Divisions


Drilling Services
Fluids Management

III. Senior Management

IV. Health, Safety & Environmental (HSE)

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ABOUT US

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About Us
Founded in 1992, Pinnergy is a diversified energy services company
with a broad and comprehensive service offering to customers
throughout Texas, Louisiana and New Mexico, and is one of the
largest independent oilfield service companies in its industry.
Our Health, Safety & Environment program is a critical component to
our long-term sustainability, and we are committed to continuously
improving our performance.
Pinnergy has assembled an experienced senior management team of
talented individuals with over 400 years of combined industry
experience.
Pinnergy makes significant ongoing investments in infrastructure to
ensure the Company maintains the highest level of safety and
operating standards in the industry.

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About Us
Our Mission
To provide superior service and unmatched value

Our Vision
Pinnergy is committed to being the service provider and
employer of choice in our industry. We will achieve this by
continually listening to our customers, investing in our employees'
development, employing our resources efficiently and always
adhering to our values.

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About Us
Our Values
Safety We are safe, even when no ones looking
Environment We value and protect the environment for future
generations
Reliability We do what we say well do
Value We provide the best service...period
Integrity We always do the right thing, even if its hard
Commitment We take care of our customers and our Pinnergy
family
Excellence We always go above and beyond

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OPERATING DIVISIONS

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Operating Divisions
Customers can reduce costs and streamline operations by packaging
Pinnergys drilling and fluids management services.

Drilling Services Fluids Management


Water Well Fluid Hauling & Storage
Conductor Oil & Gas Waste Disposal
Surface Casing Water Transfer
Rental Equipment Rental Equipment

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Operating Locations

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Strong Customer Base
Our customers satisfaction is the hallmark by which we measure our
continued success, and we are committed to that goal.

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OPERATING DIVISIONS
DRILLING SERVICES
Drilling Services
We provide all necessary
drilling services from the time a
well is staked until the big rig
arrives:
Water Well Drilling
Conductor Drilling
Surface Casing Drilling
Packaging our services helps
customers reduce drilling days
per well, days from spud on
wells drilled, and overall usage
of big rigs.

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Water Well Drilling
Licensed to provide water well drilling
and related services in Texas, Louisiana
and Oklahoma
Truck-mounted fleet includes both rotary
table and hydraulic top-head water well
drilling rigs
Ancillary services include:
Submersible pump installation and rental
Waterline hook-up and rental
Generator rental
Water well plugging
Water meters

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Conductor Drilling
Large fleet of truck-mounted
and track-mounted conductor
rigs
One of the leading providers of
conductor drilling services in
Texas and Louisiana
Cellar, conductor and rat &
mouse holes can normally
be drilled and completed in
one day

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Conductor Equipment

Spiradrill Conductor/Boring Rig Mobile Mixer Cement Truck

Texoma 800 Conductor/Boring Rig Track-Mounted Conductor Rig

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Surface Casing Drilling
Our fleet features:
Schramm T130XD Rotadrills
with 130,000 lb hoist capacities
A Schramm TXD Rotadrill with
a 200,000 lb hoist capacity

The specialized surface casing


rigs decrease overall days from
spud on each well drilled
Rigs can also drill shallow oil
and natural gas wells

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Surface Casing Rig Types

(Above) Schramm TXD Trailer-Mounted Rig


(Left) Schramm T130XD Carrier-Mounted Rig
Images courtesy of www.schramminc.com

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Surface Casing Track Record
2014 Stats:
In 2014, we drilled 1,196,363 feet. We have increased our total annual footage
by 18 percent over three years.
Our annual drilling ROP average improved 12 percent over three years to
207.4 feet per hour in 2014.
We drilled over 600 holes in 2014, which is a 28 percent increase over three
years.

2015 Stats:
In 2015, we drilled 697,034 feet, remaining competitive in the downturn.
Our annual drilling ROP average continued to improve to 220 feet per hour in
2015.
We drilled over 320 holes in 2015, despite the significant reduction in spud
count.

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Surface Casing Track Record
Pinnergy is ranked #1 in the U.S. in total number of wells drilled and #1 in Texas
in total footage drilled between July 1, 2011 and June 30, 2012.

Pinnergy Feet Drilled = 442,192


Texas
500,000 250
450,000
400,000 200
350,000

Well Count
Footage

300,000 150
250,000
200,000 100
150,000
100,000 50
50,000
0 0

Footage Well Count

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OPERATING DIVISIONS
FLUIDS MANAGEMENT
Fluids Management
Our robust service offering allows
customers to do more with fewer
vendors:
Fluid Hauling
Fluid Storage
Oil & Gas Waste Disposal Wells
Water Transfer
Rental Equipment

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Fluid Hauling
The large fleet of late-model vacuum
trucks is manned by DOT-certified
drivers and maintained by trained
mechanics in well-equipped shops. Our
fleet of 130 BBL and 140 BBL units all
feature GPS tracking devices.
Pinnergy has developed a digital truck
dispatching system which captures data
during the entire life of a job. This
system allows us to meet specific
customer and regulatory agency
reporting requirements.
Dispatchers and supervisory personnel
are on duty around-the-clock.

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Fluid Storage
Pinnergy offers tanks to
complement the fluids
management process:
500-BBL manifolded frac
tanks
Gas buster tanks with
dual busters
Tanks can be rented daily,
monthly or yearly.

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Oil & Gas Waste Disposal Wells

Pinnergys oil & gas waste disposal team includes some of the most experienced
disposal well operators in the industry. The senior management team has been
involved in the construction and operation of approximately 40 disposal wells.
Pinnergy utilizes an electronic monitoring system at each well site to track injection
volume, well pressure and additional regulatory requirements to ensure safe
operations.
Permitted capacity is over 400,000 barrels per day.

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Oil & Gas Waste Disposal Wells
The disposal wells have high
performance unloading systems
enabling the facility to unload
multiple 130-BBL trailers in
approximately 10 minutes and
safely inject large volumes of
fluids on a daily basis.

The facilities use state-of-the-art


pumps that maximize daily
capacity, and contain an
advanced screening system that
filters the water before it is
injected into the formations,
preserving and prolonging the life
of the wells.

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Oil & Gas Waste Disposal Wells

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Water Transfer
Pinnergy custom-designed its
water transfer system.
We operate as a 100% layflat
200/600 water transfer company.
Our state-of-the-art equipment
features a Bazooka Deployer that
makes the system safer and faster.
Exclusive use of vacuum pumps
eliminates the need for priming.

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Rental Equipment
Equipment for rent:
500-BBL frac tanks
Gas buster tanks
Generators
Submersible pumps
Temporary water lines
Light plants and fork lifts
Water meters

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SENIOR MANAGEMENT
Senior Management Team
Senior Level Managers Years in Industry Position
Randy Taylor 40 President & CEO
Wade Webster 21 Executive Vice President & COO
Jeannie Hollingshead 37 Executive Vice President & CAO
Tommy Mouser 38 President Drilling Services
Steve Nations 36 President Fluids Management
Brandon Taylor 12 Vice President Corporate Development
Justin Taylor 12 Vice President Finance
Josh Rich 10 Vice President Health, Safety & Environment
Max Mullins 39 Vice President Human Resources
Lonnie Bubba Smith 40 Vice President Corporate Sales
Barbara Mayfield 22 General Counsel
Lonnie Applegate 27 Vice President Fluids Management
Chad Gorman 25 Vice President Fluids Management
Lance Cauthen 12 Vice President Drilling Services
Andy Snow 30 Vice President Drilling Services

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Senior Management
Randy Taylor
President & CEO

Mr. Taylor provides overall leadership in developing and implementing the strategic direction of the Company. He has
been involved in financial and energy-related businesses for over 40 years. In 1981, Mr. Taylor formed Taylor Service
Company, an oilfield service company providing fluid hauling services, frac tank rentals and oil and gas waste disposal
well operations. Mr. Taylor sold the Company in 1996 to Dawson Production Services, a publicly traded company (now
part of Key Energy Services). At the time of the sale, the company had six operating locations and was one of the
largest privately held saltwater disposal operators in Texas. Prior to forming Taylor Service Company in 1981, Mr. Taylor
held various financial executive positions for Gulf States Oil & Refining Company. He began his career as a tax
accountant with Deloitte & Touche. Mr. Taylor received a BBA with Honors in Accounting from The University of Texas at
Austin and is a Certified Public Accountant.

Wade Webster
Executive Vice President & COO

Mr. Webster has held this position since March 2011 and oversees all operations for Pinnergy. He joined Pinnergy in
July 2003 as Vice President and Chief Financial Officer and managed all finance, fleet and acquisition-related activities
of the Company through March 2011. Mr. Webster has 21 years of experience in the commercial banking, investment
banking, private equity and energy service industries. Previously, Mr. Webster was a Vice President with Energy
Spectrum, a private equity fund and investment bank focused exclusively on the energy industry. While at Energy
Spectrum, Mr. Webster focused primarily on private equity and debt placements, debt restructurings, and merger and
acquisition activities. Prior to Energy Spectrum, Mr. Webster was an Associate with Growth Capital Partners, a regional
merchant and investment banking firm. He began his career with Wells Fargo Bank, where he managed a commercial
loan portfolio. Mr. Webster received a BBA in Accounting from The University of Texas at Austin.

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Senior Management
Jeannie Hollingshead
Executive Vice President & CAO

Ms. Hollingshead has held this position with Pinnergy since March 2011 and oversees all administrative functions for
the Company. She joined Pinnergy in July 2003 as Vice President and Chief Administrative Officer. She has 37 years of
accounting and senior level administrative experience. She joined Taylor Service Company in 1988 as the sole office
clerk, and as the company grew, was promoted through the ranks to eventually oversee all accounting and
administrative functions. Subsequent to the sale of Taylor Service Company in 1996, she remained the Vice President
of Administration of Taylor Invesco, LLC. Prior to joining Taylor Service Company, Ms. Hollingshead was controller of a
retail chain and a distribution company, and accounting manager for a poultry processing company. She received a BS
with Honors in Accounting from Stephen F. Austin State University in Nacogdoches, Texas.

Tommy Mouser
President Drilling Services

Mr. Mouser provides operational leadership and is responsible for the Drilling Services Division for Pinnergy. He has 38
years of experience in the energy industry. He formed Ark-La-Tex Boring & Anchor Service, Inc. in 1992, and served as
President until he sold the majority ownership position in July 2003, at which time he became President of the Drilling
Services division. Mr. Mouser started the Company with one rig and two employees, and grew the business to seven
rigs and 35 employees. Prior to forming Ark-La-Tex Boring, Mr. Mouser spent 13 years with Arkla Exploration Company
in Shreveport, Louisiana where he supervised the drilling and completion of oil and gas wells in Texas, Louisiana,
Arkansas, Mississippi and Oklahoma. Prior to that, he worked as a driller both offshore and onshore for Parker Drilling
and Sawyer Drilling. Mr. Mouser attended Stephen F. Austin State University in Nacogdoches, Texas.

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Senior Management
Steve Nations
President Fluids Management

Mr. Nations provides operational leadership and oversees the Fluids Management Division for Pinnergy. Mr. Nations
has 36 years of experience in the energy industry. Mr. Nations began his career in 1978 with Well Tech, an oilfield
service company. In 1989, Randy Taylor hired Mr. Nations where he eventually held senior level management positions
in both the Operations and Sales departments of Taylor Service Company from 1993 through the sale of the company
to Dawson Production Services in 1996. He worked for Key Energy Services after they acquired Dawson, where he
received extensive senior level management training and eventually managed their Workover Rig Operations in
Marshall, Texas. In March 2004, Mr. Nations joined Pinnergy to start-up and manage the Taylor Service Division, later
renamed the Fluids Management Division.

Brandon Taylor
Vice President Corporate Development

Mr. Taylor joined Pinnergy in 2011 and oversees the planning and execution of corporate and related operational
activities of the Company. Mr. Taylor has 12 years of experience and has held various positions in consulting and
private equity with energy, financial and real estate-related businesses. Prior to joining Pinnergy, Mr. Taylor was with
Goldman, Sachs & Co., where he was a member of the Fund Management Group within their Merchant Banking
Division. While at Goldman Sachs, he was part of a team responsible for raising, investing and managing a series of
global opportunistic funds. Previously, Mr. Taylor served as a consultant for Protiviti, Inc., an international consulting firm
formerly known as Arthur Andersen, where he identified areas of business risk and provided solutions for clients to
improve the company's efficiency and profitability. Mr. Taylor received his BBA degree from The University of Texas at
Austin with a concentration in Finance and Accounting.

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Senior Management
Justin Taylor
Vice President Corporate Finance

Mr. Taylor joined Pinnergy in 2011 and oversees all finance, mergers & acquisitions and other corporate-related
activities of the Company. Mr. Taylor has 12 years of experience and has held various positions in consulting and
private equity with financial and energy-related businesses. Prior to joining Pinnergy, Mr. Taylor was a member of the
Energy Spectrum Capital Investment Team in their Private Equity Group. While at Energy Spectrum, he focused
primarily on evaluation and execution of potential investments as well as oversight of the portfolio companies and their
growth initiatives. Previously, Mr. Taylor served as a consultant for Protiviti, Inc., an international consulting firm formerly
known as Arthur Andersen, where he advised clients on strategic and operational initiatives and provided solutions to
improve the company's profitability. Mr. Taylor received his BBA degree from The University of Texas at Austin with a
concentration in Finance and Accounting.

Josh Rich
Vice President Health, Safety & Environment

Mr. Rich joined Pinnergy in 2012 and oversees all matters involving the Health and Safety of Pinnergys employees, as
well as the Environment that Pinnergy works in. He has held various positions in consulting and as an employee within
the energy industry. Mr. Rich served as a Safety & Environmental Representative for EOG Resources, in their Tyler
division, where he provided HSE support and development for much of the Haynesville-Bossier, Woodbine-Eaglebine
and Cotton Valley plays. Prior to that, Mr. Rich performed HSE consulting services for several operators, service and
midstream companies including Apache, Southwestern Energy, Cabot, H&P, Cactus Drilling, Weatherford International
and DCP Midstream. Mr. Rich began his career in the oil & gas industry as a Wireline Engineer for Halliburton. Mr. Rich
received his Bachelor of Science & Technology with a concentration in Industrial Safety from the University of Texas at
Tyler.

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Senior Management
Max Mullins
Vice President Human Resources
Mr. Mullins provides leadership and manages all of the Human Resource functions for the Company. He joined
Pinnergy in 2007 with more than 20 years of HR experience. Prior to joining Pinnergy, Mr. Mullins had a 37-year career
with AT&T, both in Operations and Human Resources. He joined Southwestern Bell Telephone Co. (AT&T) as a Cable
Splicers Assistant in Jasper, Texas, and was promoted through the ranks to Executive Director. Mr. Mullins worked in
several positions throughout his career in Texas, Connecticut, Illinois and Tennessee before his retirement from SBC
(AT&T) in 2003.

Lonnie "Bubba" Smith


Vice President Corporate Sales
Mr. Smith joined Pinnergy in 2011 and brings 40 years of experience in oilfield sales and services. He began his career
in Houston with Milchem Drilling Fluids in 1975 as a drilling mud engineer. Mr. Smith advanced to Regional Sales and
later represented Patterson Rental Tools in City Sales. In 1984, he relocated to Mobile, Alabama, and worked for nine
years with Mather Mud Company in distribution and sales. Mr. Smith began concentrating on the E&P waste and
disposal industry in 1993 when he moved back to Houston to join Newpark Environmental. In 2000, he became part of
the Environmental Treatment Team, a subsidiary of Superior Energy Services, as Vice President of Sales. He
graduated from Louisiana State University in 1975 with a degree in General Studies.

Barbara Mayfield
General Counsel
Ms. Mayfield is the Company's General Counsel. Prior to joining the Company in 2006, she was in private practice for
15 years. She began her career at Vinson & Elkins, L.L.P., where she represented issuers and underwriters of tax-
exempt debt, before continuing her career with a firm that specializes in the federal tax aspects of employee benefits.
She received a BFA from Southern Methodist University and her law degree, with honors, from The University of Texas
School of Law.

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Senior Management
Lonnie Applegate
Vice President Fluids Management

Mr. Applegate provides operational leadership and supports the Fluids Management Division for Pinnergy. Mr.
Applegate joined Pinnergy in 2005 after 16 years in the LTL Freight and Transportation business at Central Freight
Lines and Air Liquide America. At Pinnergy, he began in Operations but quickly joined the Sales team at the Companys
operating location in Godley, TX. Mr. Applegate was promoted to District Manager over the North Texas District,
overseeing both the Fluids Management and Drilling Services Divisions. In this role he managed upwards of 250
employees and oversaw the logistics to handle over 70,000 barrels of water per day for customers. In 2011, he was
again promoted through the ranks to his current role as Vice President Fluids Management, overseeing several of
Pinnergys operating districts. Mr. Applegate was very instrumental in the startup of the Companys West Texas District
with the Fluids Management Division, including the completion of several new disposal wells in the area.

Chad Gorman
Vice President Fluids Management

Mr. Gorman provides operational leadership and supports the Fluids Management Division for Pinnergy. Mr. Gorman
has 25 years of experience in the energy industry. Mr. Gorman began his career in 1992 with Mobley Company, Inc., an
oilfield service company. Mr. Gorman joined Pinnergy in 2008 after 17 years working for the Mobley family. Since his
time at Pinnergy, he has held several positions which include Divisional Controller, District Manager and his current
position since 2011.

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Senior Management
Lance Cauthen
Vice President Drilling Services

As Vice President of Drilling Services, Mr. Cauthen provides operational leadership and supports the Drilling Services
Division for Pinnergy. Mr. Cauthen started his career in the energy industry in 2004 with Beacon Resources. While with
Beacon Resources, he was responsible for leading the installation and operation of Quicksilver Resources initial
cryogenic process facility in the Barnett Shale. In 2005, he became the General Manager of Texas Transco, an oilfield
service company. Mr. Cauthen joined Pinnergy in 2007 as a Field Sales Representative and was promoted to Regional
Sales Manager for the companys South Texas district in 2011. Mr. Cauthen also served in dual roles as District Manager
and Regional Sales Manager for a period of time in this district.

Andy Snow
Vice President Drilling Services

Mr. Snow supports the growth of the Drilling Services Division by overseeing its sales, marketing, contracts and
administration. After graduating from Texas A&M in 1986 with a degree in Industrial Distribution, he spent 15 years in the
chemical industry as an outside sales rep and hazardous waste coordinator for Delta Distributors (now Brenntag), and
Solvents & Chemicals Inc. In 2001, he founded Carthage Industrial Sales and shortly afterwards became a managing
partner in Dakota Distributing in Mansfield, TX. With Dakota, he was involved in all aspects of chemical distribution:
sales management, purchasing, payroll, & overall logistics to name a few. Mr. Snow sold his shares in Dakota
Distributing in 2007, just prior to joining Pinnergy as a Sales Representative in the companys North Texas district. He
was promoted to District Sales Manager where he played an integral role in the success of the Surface Casing Division
and now serves as its Vice President.

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Partnership

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HEALTH, SAFETY AND
ENVIRONMENT (HSE)
HSE Department
Josh Rich
Vice President HSE
Austin

Autumn Siebeneicher
HSE Admin Assistant
Austin

Regional Transportation
Regional HSE Manager (1) Regional HSE Manager (1) Regional HSE Manager (1)
Safety Manager (1)
West TX South TX Ark-La-Tex
South TX

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HSE Staff
Corporate HSE Department
Josh Rich
Vice President Health, Safety & Environment

Mr. Rich joined Pinnergy in 2012 and oversees all matters involving the Health and Safety of Pinnergys employees, as
well as the Environment that Pinnergy works in. He has held various positions in consulting and as an employee within
the energy industry. Mr. Rich served as a Safety & Environmental Representative for EOG Resources, in their Tyler
division, where he provided HSE support and development for much of the Haynesville-Bossier, Woodbine-Eaglebine
and Cotton Valley plays. Prior to that, Mr. Rich performed HSE consulting services for several operators, service and
midstream companies including Apache, Southwestern Energy, Cabot, H&P, Cactus Drilling, Weatherford International
and DCP Midstream. Mr. Rich began his career in the oil & gas industry as a Wireline Engineer for Halliburton. Mr. Rich
received his Bachelor of Science & Technology with a concentration in Industrial Safety from the University of Texas at
Tyler.

Autumn Siebeneicher
HSE Administrative Assistant, Austin

Ms. Siebeneicher joined Pinnergys safety department in May 2011. She is responsible for data entry in ISNetworld,
coordinating classes and the development of presentations for the safety meetings and trainings.

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HSE Staff
Regional Transportation Safety Managers and Regional HSE Managers

Terry Travis
Regional HSE Manager, West TX

Ms. Travis joined the Company in 2006 as a truck driver and later served as a dispatcher. She previously worked as a
safety manager for a trucking company. She transferred into Pinnergys safety staff in 2007.

Larry Payne
Regional HSE Manager, Ark-La-Tex

Mr. Payne joined Pinnergy in 2010. Mr. Payne served 27 years as a DPS Officer for the State of Texas. After departing
the DPS, he worked over three and a half years in the safety department for another service company.

William Abel
Regional Transportation Safety Manager, South TX

Mr. Abel joined Pinnergys safety staff in 2011. Previously, Mr. Abel worked over 23 years for the Texas DPS.

Michael Coon, CSHO


Regional HSE Manager, South TX

Mr. Coon joined Pinnergys South Texas safety staff in September 2014. He has 15+ years of experience in the Oil &
Gas industry with 8 years in safety. Michael is a Certified Safety & Health Official though TEEX.

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Corporate HSE Committee
The Corporate HSE Committee was
established to address safety issues
and endorse new company-wide
programs.
The committee addresses issues such
as incentive programs, special training
programs and possible expansion of
safety staff in the field.
Any specialized equipment or facilities
for the safety program such as training
facilities are discussed by the council.

In addition, the committee determines the need to stress more investigation,


training and asking for proposed programs to comply with Federal, State and
local regulations as well as customer requirements.

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New Hire Employees
Upon completion of application, the candidate is interviewed to determine
experience and qualifications for the job.
Employee background check is then completed including:
Past employer DOT requirements
Criminal check
Social Security check
Motor Vehicle Record check on employees driving record is confirmed.
Pre-Employment Drug Screen (Part of DISA Drug testing program) is finalized.
All employees are provided a copy of the Drug & Alcohol policy requirements
and Pinnergys Employee Handbook.
Essential Job Function Tests (Worksteps) are completed.
Pinnergy furnishes proper PPE as required by OSHA.

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Training Courses / Programs
Behavioral Based Safety (S.T.E.P. Safety Takes Every Person)
Customer Orientations
DOT Hours of Service
Driver Training Program
HS
Hazardous Awareness
Heavy Equipment
Incident Investigation and Reporting
JSEA's
Leadership Development
Load Securement
Medic First Aid / CPR
OSHA Regulatory
PEC / ETC / IADC RigPass / SafelandUSA Orientation
Reasonable Suspicion
Short Service Employee (SSE)
Supervisor Drug and Alcohol Awareness

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ISNetworld Member
OSHA/EMR Verification Step
Completion: 100%

ISN RAVS Written Review


Overall Review Score: 100%

Training Documentation Review (T-RAVS)


Overall Score: 100%

Track training and safety meetings for employees

Over 45 ISNetworld Clients

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PEC Premier

Percentage
Service Region Scoring Set Score Max Score Rank Date Scored
Score
Domestic USA Onshore All Above
100 90 2/11/2013 111%
Onshore Oil and Gas Services Average

PEC provides a report card for Pinnergy to provide our customers with
answers to their questions plus our safety statistics.
Pinnergy is ranked Above Average for Domestic USA Onshore Oil and Gas.

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Monthly Meetings and Audits
Intranet Tracking / Trending
Mobile Platform Auditing
Monthly Safety Meetings
Monthly Field Inspections (Shop, Yard and Disposal Sites)
Monthly Audits (Surface Casing, Water Well and Conductor Rigs)
Ongoing Audits (Post / Pre Trips, Logs and Maintenance Files)
Quarterly Audits (All Vehicles)

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IADC Rig Pass Accreditation
February 2016 February 2019

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Incident Investigation
At scene investigation by Supervisor and/or Safety Staff
Post-Incident Drug Test
Documented Incident Report
Photographs of scene (if possible) as well as any damage
Vice President HSE coordinates and monitors all incidents, both vehicle
and employee
Monthly meeting involving President, Managers and Safety staff discussing
all incidents that have occurred the previous month
Incident Review Board
Perform Root Cause Analysis

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Safety Statistics
DOT Compliance Review
June 2013: Satisfactory Rating
Pinnergy TRIR
DOT TVIR 2.75
2015: 0.58 2.5
2.45
2014: 0.24 2.25
2.16
2013: 0.55 2 1.96
1.75
2012: 0.19 1.66
1.5
Experience Modifier
1.25
Score: 0.95 as of October 2015 (policy
1 0.99
period) 0.75
0.7
Pinnergy TRIR 0.5
2011 2012 2013 2014 2015 2016
2016 (YTD): 0.73
2015: 0.99
2014: 1.66
2013: 1.96

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DISA, Inc.
Pinnergy is a member of DISA, Inc. and has utilized them as third-party administrators since
March 2010 to manage the drug and alcohol policy requirements for the Corporate,
Department of Transportation, and Contractor Compliance programs. With the compliance
and audit assistance provided by DISA, Pinnergy is able to maintain compliance with all
programs.

The DISA Contractors Consortium (DCC) allows owners to manage and track the
compliance of their contractor workforce and helps implement their individual policy
guidelines.

Numerous customers have implemented the DCC program and mandated the participation
of contractors in this program. These companies have access to monitor the compliance of
Pinnergys drug and alcohol program. DISA reports drug & alcohol results of Pinnergy
employees selected to perform contractor work by showing a status of Active or Inactive,
which determines the employees work eligibility on site.

As Pinnergys TPA, DISA also provides statistical reporting and other program documents
required by the National Compliance Management System (NCMS), a third-party auditor
utilized by ExxonMobil. This allows Pinnergy to comply with audit requests and to maintain a
satisfactory status with the customers.

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NCMS DOT Audit
The National Compliance Management Service (NCMS) DOT Audit Division assists oil & gas
operators with the contractor pre-qualification process.
The services concentrate on standardization and centralization of multiple operator
requirements. An NCMS evaluation of one contractors alcohol and drug testing information
for one operator is actually being performed for all member operators. This consolidation of
operator requirements is aimed at reducing the administrative burden on contractors as well
as the member operators.
Some of the benefits to standardization and centralization include:
Eliminates repeated audits for contractors
Timely evaluations performed including emergency situations
Standardized and centralized monitoring
Thorough, accurate record keeping in one central location
Easy, timely access to necessary information for DOT inspections or state audits
Contractor status report provided on NCMS web site information is updated hourly
Member operators share the contractor listing this gives each operator a broader contractor base
NCMS is a data provider to ISNetworld the NCMS alcohol and drug information is downloaded to
ISNetworld twice a day
NCMS maintains a high standard of compliance in regard to meeting the USDOT
regulations. All procedures closely follow the Headquarters Inspection Form(s) and changes
to the regulations are monitored.

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NCMS DOT Audit

The Client-Required Drug & Alcohol Division of NCMS is designed to provide auditing for
our clients (Oil & Gas Operators) specific requirements. This division ensures that the
contract companies working for our clients meet the personalized requirements established
by them (i.e. written policies, specific testing protocol, random drug/alcohol testing, annual
drug/alcohol testing, etc.).

An evaluation of the contract companies program and testing protocol is performed as well
as on-going monitoring of their program and employees.

Assistance is given to the contract companies in order to meet all of the clients
requirements. This is accomplished with the use of model policies, suggestions for revisions,
and/or additions to the existing program. The ultimate goal for all involved is to successfully
complete the work required as safely as possible.

54
111 Congress Avenue, Suite 2020
Austin, Texas 78701
512-343-8880

w w w.pi nnergy.com

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