October 17, 2005

To: Nabors Alaska Drilling Management
From: Nabors Alaska Drilling crew members

   As Nabors employees, we have endured a continued pattern of callous disrespect coupled with a thorough lack of appreciation by the "Upper Management" of Nabors Alaska Drilling.

    Nabors employees voted in favor of union representation in October of 2000 in order to negotiate for better wages and benefits. In our opinion, Nabors management not only failed to join in "Good Faith" bargaining but also used the union and the negotiation process to shield themselves from pay and wage increases that would have normally occurred to keep pace with other drilling contractors.

   Since it had become increasingly clear that no "reasonable" increase would be gained through union representation, Nabors employees decided to no longer be affiliated with the union group.  Instead, we adopted the philosophy of an "Open Door Policy" (that Nabors management had suggested) should the union representation be withdrawn. As of yet no discussions have occurred, with any and all questions directed at wage increases by us falling on deaf ears. To make matters worse, Nabors Alaska Drilling has provided all levels of management with very substantial wage increases over the last several months. The current disparity in pay and lack of any communication between upper management and the rig employees can no longer be ignored.

    It has been suggested that (as hourly employees) we are in fact a liability to the company. Much to the contrary, we are the greatest single asset available to the company. The numbers have consistently shown an increase in production with a dramatic drop in injuries, environmental impacts and rig down time. All of which we should be very proud. The profits reported by all concerned bear this out.

   We need to develop an honest and realistic "Plan Forward" to address our wage concerns. The current process of "hearsay and rumor" with each crew change will not do.

We have been asked to "Keep the Faith" while the process continues. With a matter so very important to both rig employees and the management, we feel that a steady and continued dialog should have been established and maintained. Again, this lack of communication shows a total lack of respect and concern for our needs. Our "Trust and Respect" for the upper management team has its limits and they are nearing and end.

    It seems that there is little discussion left at our disposal and now some action must be taken on our part. All rig hands have been contacted at home and on the slope. An overwhelming majority of hands are in agreement and are more than willing to stand together on this issue. With the increased tension and anxiety (created by the lack of communication with upper management) in the work place, it has now become a safety issue on all of Nabors’rigs. Therefore an indefinite "Safety Stand Down" shall take place on Thursday October 20th beginning at 11:30 a.m. Since this is a "Safety Issue" we should not expect any intimidation or coercion from any management personnel. If no response has been received by 9:00 a.m. Thursday October 20th we feel it is our duty to notify local State, Federal and elected officials of our intent so they can be aware of and prepare for the impending North Slope drilling situation.

     Starting at 6:00 a.m. Thursday October 20th each rig shall communicate with their company representative on how best to secure the rig and well. This shall ensure that no loss to equipment, well integrity or environmental impacts occur, especially when involved in critical drilling operations. That is why we have decided to openly notify you of our intensions in advance so any modification to well plans can be arraigned for safety considerations. It is not now, nor has it been our intention to cause harm or bring unwanted publicity to Nabors Alaska Drilling or any North Slope Operators but we are forced to take action.

Sincerely,
Nabors Alaska Drilling crews from:    2-ES, 3S, 4ES, 7ES, 9ES, TWIX
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