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ComplianceGlossary Term

PSM (Process Safety Management)

A regulatory framework governing hazardous process facilities like refineries and gas plants. Subcontractors working on-site must comply with the operator's PSM programme, including hazard reviews and safe work permits. Non-compliance can result in immediate removal from site.

Related Terms

Psychological Safety

Compliance

A work environment where crew members feel safe to report hazards, mistakes, or concerns without fear of punishment or ridicule. For subcontractors, it reduces incident rates and improves site communication. Crews with high psychological safety are more likely to flag near-misses before they escalate.

Well Integrity

Compliance

The ability of a well to contain fluids and pressure without uncontrolled release. Subcontractors performing wellsite work must follow strict well integrity protocols to prevent blowouts or leaks. Failure to comply can result in contract termination and regulatory penalties.

Osha (occupational Safety and Health Administration) Variance

Compliance

A formal permit allowing a subcontractor to use an alternative method that differs from a standard OSHA regulation. It is granted when the alternative provides equal or greater worker protection. Subcontractors must apply directly and remain compliant with all variance conditions during field operations.

IEEPA (International Emergency Economic Powers Act)

Compliance

A U.S. federal law that grants the president broad authority to regulate or block international trade and financial transactions during a declared national emergency, which can directly affect subcontractors by triggering sudden tariffs on imported equipment and materials, disrupting cross-border project timelines, or restricting payments to and from American clients and primes. Field service companies working on U.S.-linked contracts or sourcing materials from affected countries should monitor IEEPA-related executive orders closely, as cost structures and contract terms can shift with little notice.

Methane Mitigation

Compliance

Efforts to detect, reduce, and report methane emissions from oil and gas operations. Subcontractors may be required to use low-bleed equipment, perform leak detection, and document emissions. Clients increasingly include methane mitigation requirements in scopes of work and contracts.

MVR (Motor Vehicle Record)

Compliance

An official document showing a driver's licence history, violations, and suspensions. Clients and prime contractors often require MVRs before allowing subcontractor personnel to operate vehicles on site. A clean MVR is frequently a condition of insurance coverage and site access approval.

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