HEALTH, SAFETY and ENVIRONMENT POLICY

Sound health, safety and environmental protection practices are an integral part of the business operations of Paramount Resources. The prevention of incidents that may cause harm to people, property loss or an adverse impact on the environment is of the highest importance to the company. Paramount has developed a comprehensive HSE Management System to fulfill the Company’s commitment to health, safety and environmental protection. Our obligations include:

Worker Health and Safety

Paramount is committed to the health and safety of its workers and will provide the training and equipment necessary to enable its workers to perform their work in a competent and safe manner. Every job is important. Work should only proceed once the hazards have been identified and the needed precautions and controls are in place to address the operational risks to prevent injuries.

Environmental Protection

Paramount is committed to achieving a high standard of environmental stewardship. We will make environmental protection a consistent component of our corporate decision making by identifying the potential environmental impacts associated with our activities and taking prudent action to minimize these impacts.

Incident Response and Investigation

Paramount is committed to reducing the impact of any incidents that may occur. Paramount will ensure that emergency response plans are prepared and that its employees and contractors are ready to respond in a safe and effective manner that minimizes the consequences of emergency events. Paramount will investigate all incidents and apply what it has learned to prevent future incidents.

Regulatory Compliance

Paramount is committed to complying with all applicable government regulations and recognized industry HSE standards and practices. Individuals who knowingly violate applicable regulations will be held accountable by senior management.

HSE System Evaluation

Paramount is committed to continuous improvement by monitoring compliance with regulations, industry standards and internal practices with a view to achieving performance that compares favorably with industry leaders.

Paramount requires its management, supervisors, workers, contractors, consultants and other parties performing work on behalf of the company to act in accordance with our HSE plans and programs. Everyone has the right and responsibility to question their supervisor about a job that they believe to be unsafe or unnecessarily dangerous without fear of repercussion.

Paramount believes that its interests and those of its stakeholders, including the communities in which we operate, are best served by effectively managing our health, safety and environmental affairs with the highest level of diligence. To accomplish this, everyone representing our company has a duty and responsibility to ensure that the company’s HSE requirements, as set out in the policies, plans, practices, and manuals forming part of the HSE Management System, are being implemented, and improved upon as required, to achieve our corporate goals and objectives.