NABORS INDUSTRIES, INC.

HUMAN RESOURCES POLICIES AND PROCEDURES MANUAL

SUBJECT SECTION – HEALTH, NUMBER – 200.70.2 PAGE -
SAFETY & ENVIRONMENT 1 of 6
DRUGS, ALCOHOL & EFFECTIVE DATE - SUPERCEDES ISSUE DATED
CONTRABAND September 15, 2005 October 4, 2004

POLICY
The Company has a vital interest in maintaining safe, healthful and efficient working
conditions for its employees. Being under the influence of controlled or prohibited drugs or
alcohol and the inappropriate use of medications and other substances on the job may pose
potential serious safety and health risks, not only to the user and those who work with the
user, but to the public as well.
With this basic principle in mind, the Company has established the following drug and alcohol
policy:
A. Alcohol
Possessing or being under the influence of alcohol while performing Company
business or while on Company premises is a violation of Company policy and is
prohibited to the extent that such influence may affect the safety of the employee,
co-workers, or members of the public, job performance or the safe and efficient
operation of the Company.
B. Illegal Drugs
The presence of illegal drugs or illegal inhalants in an employee while performing
Company business or while on Company premises is unlawful, strictly prohibited
and a violation of Company policy. The use, sale, purchase, transfer or possession
of illegal drugs or illegal inhalants by any employee while on Company premises or
while on Company business is a violation of Company policy.
C. Legal Drugs
Except as provided in paragraph 3-A below, the use or being "under the influence"
of any legal drug by any employee while on Company business or while on
Company premises is a violation of Company policy.
D. Contraband
The presence of Contraband items on Company premises or in an employee's
possession while on Company business is a violation of Company policy and is
prohibited. All Contraband items on Company premises shall be confiscated as
specified in paragraph 2-C below.
E. Concealed Weapons
Certain states permit the carrying of concealed handguns when certain training and
registration requirements are met. However, the right to carry concealed weapons
does not automatically extend to the workplace. Under existing criminal trespass
laws and certain handgun laws, employers who do not want concealed weapons in
the workplace may prohibit both employees and invitees from bringing guns on the
premises.
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Other than licensed officers or peace officers, the Company prohibits, to the fullest
extent permitted by law, the presence of guns on Company premises or in an
employee’s possession while on company business.
PROCEDURE
1. Testing and Screening
A. Other than in California or Canada, the Company may conduct unannounced tests
for the presence of drugs or alcohol at any time. Tests may also be conducted under
the following circumstances:
• In conjunction with any Company-required physicals.
• Upon reasonable grounds to suspect that Company policy may have been
violated by an employee or a group of employees.
• In the event of any accident or occurrence involving personal injury or
property damage during the course of employment or on Company
premises.
In California and Canada, random screening may only be conducted on employees
in safety-sensitive positions. Screening may also be conducted following an
accident where substantial personal injury has occurred, for reasonable cause, or
prior to employment.
B. These tests may include blood tests, urinalysis, or other screening tests as are
considered appropriate. A medical review officer shall confirm testing results
where required by applicable law or regulation.
C. Consent to testing is a condition of employment with the Company. An applicant
must complete an Employment Drug Testing Consent Form. An applicant who
refuses to submit to a drug or alcohol test will not be hired by the Company. An
employee who refuses to consent to such a test will not be returned to work and will
be terminated from employment.
D. If test results show either (1) the presence of illegal drugs at a concentration above
tolerance levels set by the business unit (which shall in no event be less stringent
than those imposed by the USDOT) or customer on whose premises the employee is
working, (2) the presence of illegal inhalants or (3) the presence of alcohol at a
concentration of 0.04% BAC or greater (or such lower level as may be prescribed
by the customer on whose premises the employee is working), the employee shall
be subject to immediate termination. If, after considering all of the facts and
circumstances, the Company determines that the positive test relates to a disability,
it may impose a lesser penalty as an accommodation under applicable law.
E. If test results show the presence of either (1) legal drugs which have not been
reported to the Company in accordance with paragraph 3-A below, (2) legal
inhalants or (3) illegal drugs or alcohol at a concentration below the level described
in paragraph 1-D above, management may take whatever disciplinary action is
deemed to be appropriate under the circumstances, up to and including termination.

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F. If the Company reasonably suspects that an employee possesses or is using illegal
drugs, illegal inhalants or is under the influence of alcohol, the Company shall
require the employee to leave the Company premises and suspend the employee
without pay pending an investigation which may include testing as described in 1-B
above. If testing is required, it should be conducted immediately or as soon as
possible after suspension.
• If tests results show the presence of illegal drugs, illegal inhalants or alcohol
as described in 1-D or 1-E above, the Company shall, depending upon the
nature of the test results, take the appropriate actions described in those
paragraphs.
• If the tests do not show the presence of drugs, inhalants or alcohol as
described in 1-D or 1-E above, the employee shall be reinstated and shall be
paid for the scheduled work hours that he or she has missed.
G. Collection and testing will only be conducted by qualified personnel and will meet
applicable standards.
H. Refusal, Tampering or Altering Samples
1. Refusal to provide an adequate sample or submit to a required drug or alcohol
test, or to report for testing within a reasonable time frame, for testing under the
terms of this policy, is deemed a refusal to cooperate and will result in
termination. An employee wrongfully refusing to provide a sample will be
terminated from employment. No supervisor shall allow an employee to
continue working where refusal has taken place. Any potential employee
refusing to provide a post offer, pre-employment sample will not be hired or
offered employment. Any employee who tampers with, alters or uses a
substance or device designed to falsify a test sample, results, or documents will
be seen as refusing to cooperate and will be terminated, or prevented re-
employment. Any potential employee committing one or more of these same
acts will not be offered employment.
2. Recognition and Awards Programs may be affected in the event of a positive
drug or alcohol test result at Management’s discretion.
2. Unannounced Searches of Company Premises, Including Employees and Their
Personal Property
A. In states other than California and in other jurisdictions to the extent permitted by
applicable law, from time to time, the Company may conduct unannounced
searches of Company premises, employees and their personal property including
without limitation, private vehicles, briefcases, lunch kits, lockers, and other areas
and items within the control of the employee. Such searches can be conducted at
any time. In California the Company must have cause prior to conducting a search
of the employees and their personal property.
B. Submission to such unannounced searches is a condition of employment. An
employee who refuses to consent to such a search will be immediately asked to
leave the premises and will be terminated from employment.

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C. Any Contraband item or restricted substance found as a result of a search which is
in violation of these policies shall be confiscated immediately. Any employee
found to possess or have sold, purchased or transferred any item in violation of this
policy shall be suspended immediately without pay pending an investigation by the
Company. If the investigation shall conclude that the employee has violated policy,
the employee will be subject to appropriate disciplinary action, including
suspension or termination. If the investigation shall conclude that no violation of
policy has occurred, the employee shall be reinstated and shall be paid for any
scheduled work hours that he or she has missed. Confiscated illegal items or
substances shall be turned over to the proper authorities and other prohibited items
shall be returned to the owner for transport from the premises.
3. General Administration of the Policy
A. Employees' Reporting Requirements - Legal Drugs
• For certain job positions, an employee's use of legal drugs that have the
potential to influence the employee's behavior can pose a significant risk to the
safety of the employee, other employees or the general public.
• Employees shall, prior to beginning their work shift, report the use of such legal
drugs to their immediate supervisor. Upon receipt of a report on an employee's
use of legal drugs, the supervisor, in consultation with senior management, shall
determine whether the employee can safely and effectively perform his or her
regular job duties while using the legal drug, or whether restrictions should be
implemented. The employee may be required to present written confirmation
from the prescribing physician that the employee can perform the essential
functions of the job without threatening the safety of the employee or others
while under the influence of the legal drug. Supervisors who are aware of such
a situation are to ensure that the employee is permitted to do nothing to
jeopardize the safety interests of the Company, the employee and the public
pending resolution of the issue.
• An employee may continue to work even though under the influence of a legal
drug, if management has determined that the employee does not pose a threat to
his or her own safety or the safety of co-workers and that the employee's job
performance is not significantly affected by the legal drug. Otherwise, the
employee may be required to leave the Company facility or comply with other
appropriate action as determined by management. Any employee who fails to
report the use of legal drugs that have the potential to adversely influence the
employees behavior is subject to disciplinary measures as described herein up to
and including termination.
B. Governmental and/or Customer Requirements
• Governmental agencies, customers of the Company, as well as the owners or
operators of a particular worksite, may have their own requirements, which are
applicable to third parties, regarding alcohol and/or drugs. These requirements
may be applicable to the Company and its employees and subcontractors. As a
condition of employment, Company employees are required to abide by
additional governmental or customer policies and requirements that may be
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imposed at a particular worksite in addition to the requirements of these policies
and procedures.
C. Restrictions Imposed by Law
• Where any applicable federal, state, provincial, or local law or regulation
imposes restrictions on implementation of this policy, these policies and
procedures will be implemented to the maximum extent permitted by such law
or regulation.
• Employees subject to U.S. Department of Transportation regulations will be
subject to these policies and procedures except to the extent DOT regulations
mandate otherwise.
D. Contract Personnel
• The policies stated herein are applicable to all personnel, including consultants
and contractors, employed at Company sites or facilities. Violation of these
provisions or refusal to cooperate with implementation of the policy can result
in the Company's barring contract personnel from Company facilities or
participating in Company operations.
E. Drug and Alcohol Abuse Policy: Relationship to Those Who Voluntarily Seek
Assistance.
• Employees who suffer from alcohol or drug abuse and related problems are
encouraged to seek assistance and appropriate treatment. However, because a
violation of this policy may result in termination for the first offense, it is the
responsibility of each employee with drug and/or alcohol problems to seek
assistance before a violation of the policy is detected by the Company. Such
requests for assistance shall be handled in a confidential manner.
• An employee's decision to seek voluntarily assistance or appropriate treatment
prior to a violation of policy, prior to detection by the Company of a violation,
and prior to initiation of actions by the Company which could reasonably be
expected to detect a violation of policy, will not be used as the basis for
disciplinary action or as a basis for termination of employment, and will not be
used against the employee in any disciplinary proceeding. Management may
however, restrict, modify or change an employee's job position or tasks, or may
require the employee to take an unpaid leave of absence when it is determined
that an employee undergoing such treatment/assistance may compromise safety
of operations. Conversely, voluntary admission of an alcohol or drug related
problem will not be a defense to the imposition of disciplinary action when,
prior to such voluntary admission, action is initiated by the Company which
does or which reasonably could be expected to disclose facts proving a violation
of this policy.
F. Eligibility for Consideration for Employment.
• An employee who is terminated for violation of this Company policy on drugs
and alcohol shall not be considered for further employment unless, at his or her

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own expense, the employee obtains two tests of a type which are satisfactory to
the Company, which are taken at least five months after the date of termination
and at least 30 days apart, and are both found to be free of illegal drugs or
alcohol. That individual will be considered as an "applicant" and shall be
required to meet all testing, screening and any other eligibility requirements for
employment. The Company may consider the circumstances surrounding the
prior violation in determining whether to hire the applicant.
• An employee who satisfactorily completes a recognized rehabilitation or
substance abuse program shall be considered for reinstatement upon
demonstrating such completion to the satisfaction of the Company, subject to all
other conditions of employment.
• An applicant who tests positive for the presence of illegal drugs or alcohol shall
not be hired by the Company and shall be ineligible for future employment by
the Company or any affiliated company.
• An applicant or employee who tests positive for the presence of illegal drugs or
alcohol as a repeat offense shall be ineligible for future employment by the
Company or any affiliated company.
G. Confidentiality
• In order to protect the confidentiality rights of employees and/or former
employees, all drug and alcohol test results and related information will be
treated as confidential. Except as otherwise required by law or agreed to by the
employee, all test results will be released to a Company-designated
representative and retained in a confidential file with restricted access by
Human Resources. In some instances, the results may be maintained by a third-
party administrator subject to similar confidentiality obligations.
4. Definitions
A. As used in this document "drugs" refers to both illegal drugs and legal drugs.
• "Illegal drugs" means (i) any drug which is not legally obtainable in the state or
province where it is being used (if in the United States or Canada) or in the
country where it is being used (if outside the United States or Canada) or which
is legally obtainable but has not been legally obtained, (ii) prescription drugs not
legally obtained and prescribed drugs not being used for prescribed purposes, or
(iii) marijuana, GATT, etc. which may be otherwise deemed legal for personal
use in some jurisdictions.
• "Legal drugs" means drugs prescribed by a licensed physician and drugs
available over-the-counter which are legally available in the state or province in
which they are used (if within the United States or Canada) or in the country in
which they are used (if outside the United States or Canada), ARE BEING
USED FOR THE PURPOSE FOR WHICH THEY WERE PRESCRIBED OR
MANUFACTURED, and which contain instructions, restrictions or warnings
indicating that use of the drug may impair safe performance of their job duties.
For example, an indication that the drug may cause drowsiness or that it should
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not be used while the person is driving or operating equipment is such a
warning.
B. The term "premises" is used in its broadest sense, including all land, property,
buildings, structures, rigs, cars, trucks, lockers, and desks owned, lease or used by
the Company as well as all Company worksites.
C. "Under the influence" means, for the purpose of this policy, that an employee is
affected by a drug or alcohol or the combination of a drug and alcohol in any
detectable manner or amount as determined by management. The symptoms of
influence are not confined to those consistent with misbehavior, nor to obvious
impairment of physical or mental ability, such as slurred speech or difficulty in
maintaining balance. A determination of influence can be established by a
professional opinion, a scientifically valid test and, in some cases such as alcohol,
by the opinion of management.
D. The term "Contraband" means for the purposes of this policy, firearms, explosives,
weapons, drug paraphernalia and other items as may be deemed dangerous or
inappropriate by supervisory personnel.
E. “BAC” means blood alcohol concentration.

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