1. CONFIDENTIAL Gulf Environmental Benefit Fund July 2015

2. RESTORE (Clean Water Act) Purpose: Environment & economic development Amount: $5.2B (includes Tanssocean) Allocation: States – 35% RESTORE Council – 30% Impact-based – 30% RESTORE Science– 2.5% Centers of Excellence -2.5% Timing: $800M (Transocean) underway BP – pending completion of Consent Decree relative to July 2, 2015 announcement 15 year payout commencing after Consent Decree Natural Resource Damage (Oil Pollution Act ) Purpose: Mitigate impacts to resources and human use Amount: $8.1B (includes Early Restoration; additional $232 m available for unknown damages) Allocation: Allocation based on documented damages Timing: $1B for Early Restoration underway Remaining $7.1B pending completion of Consent Decree relative to July 2, 2015 announcement 15 year payout commencing after Consent Decree Gulf Environmental Benefit Fund - NFWF (Criminal penalties) Purpose: Remedy harm to injured natural resources Amount: $2.54B Allocation: 50% for Louisiana 14% for projects in AL, FL and MS 8% for projects in TX Timing: $850M received by NFWF and underway Remaining funds over 3 years Funding for Gulf Coast Restoration

3. Gulf Environmental Benefit Fund: Key Provisions of Plea Agreements Photo Credit: Terry Ross Funding: NFWF to receive a total of $2.54B: o $1.27B for barrier island & river diversion projects in Louisiana o Remaining funds allocated by formula:  28% each for Alabama, Florida, Mississippi ($356M/state)  16% for Texas ($203M) Purpose: Fund projects that remedy harm to the type of natural resources (habitats, species) that were affected by the spill Consultation: with State resource agencies, FWS and NOAA Timeline: Funds to be paid over a 5-year period

4. Payment Schedule Payment (in millions of dollars) LouisianaAlabamaFloridaMississippiTexas Apr. 2013$158.00$79.00$22.12 $12.64 Feb. 2014353.00176.5049.42 28.24 Feb. 2015339.00169.5047.46 27.12 Feb. 2016300.00150.0042.00 24.00 Feb. 2017500.00250.0070.00 40.00 Feb. 2018894.00447.00125.16 71.52 Totals$2,544.00$1,272.00$356.16 $203.52 BP = $2,394M Transocean = $150M Gulf Environmental Benefit Fund: Payment Timetable  $850 million has been received to date  More than half the funds to be received in yrs 4 & 5

5. Program Implementation Consultation with state and federal resource agencies State agencies: Alabama – Department of Conservation & Natural Resources Florida – Fish & Wildlife Cons. Comm. & DEP Louisiana – Coastal Protection and Restoration Authority Mississippi – Department of Environmental Quality Texas – TXPWD, GLO and TCEQ Federal agencies: NOAA U.S. Fish and Wildlife Service States have established websites for submission of projects NFWF to facilitate consensus on project slate Photo Credit: thepipe26 (Flickr)

6. CONFIDENTIAL Gulf Environmental Benefit Fund: Governance Flow Chart NFWF Gulf Committee Review NFWF Board Approval Project Implementation Reporting/Monitoring Court/DOJ Updates Federal Agencies State Agencies NGOs, Local Governments & Others Coordination w/ RESTORE & NRD Note: In accordance with the plea, NFWF retains final authority to select projects. Procedures subject to NFWF Board approval and may be modified. Preliminary Project List consensus Project Identification NFWF Staff Review Federal Agency Consultation FWS NOAA

7. Project Selection Criteria Required (per plea agreements): -Remedy harm to the type of natural resources (habitats, species) affected by oil spill -Projects must occur within Gulf states and waters and be within reasonable proximity to impacts, as appropriate -Infrastructure only as necessary to restore or protect natural resources -Louisiana: barrier island and river diversion projects only Other: -Alignment with restoration plans such as under RESTORE -Science-based, measurable outcomes -Cost-effective and potentially leveraged to maximize impact

8. 1.Restore and Conserve Coastal Habitat Barrier islands & beach/dune habitat Coastal marsh Coastal bays & estuaries 2.Enhance Populations of Priority Living Resources Oysters Gulf Coast birds Red snapper & reef fish Sea turtles Marine mammals  Intended to guide project selection and monitor outcomes  Priorities will be refined over time based on planning Overarching Goals and Focal Areas

9. Projects approved to date o 51 projects selected in the five Gulf states o Total obligation of nearly $395 million dollars o Project contracting and implementation underway In aggregate, these projects will: o Protect, restore and enhance over 45,000 acres of wetlands and other coastal habitats o Restore 7.5 miles (490 acres) of critical barrier island & beach/dune habitat in Louisiana o Protect 2700 nests for priority beach-nesting birds in Florida and Mississippi o Increase sea turtle hatchlings by reducing light pollution o Advance priority river diversion projects to benefit coastal Louisiana o Bolster fish populations through improved management and data collection o Restore over 750 acres of oyster reef o Increase capacity to treat injured marine mammals Current Projects – as of July 2015

10. 2015 Timeline: o Winter/Spring 2015 – States continue planning and project prioritization, public engagement and project solicitation o Spring/Summer 2015 – Proposal submission, review and negotiation o Fall 2015 – Final project approval Off-cycle requests anticipated based on leveraging opportunities through RESTORE, NRCS and based on other timely needs 2016 and beyond is expected to follow a similar annual cycle, with opportunities to consider other timely project needs Moving Forward Credit: Donieree.com