STRATEGIC PETROLEUM RESERVE BAYOU CHOCTAW CAVERN 20 REPLACEMENT 1

BC-102 BC-20 2

CD-0 07/21/09 (A) Approves Mission Need CD-1 03/09/10 (A) Approves Alternate Selection and Cost Range Prerequisites Completion of Conceptual Design Report(s) Development of Acquisition Strategy Evaluation of Project Risks and Hazards Analysis Value assessment (e.g., need to perform Value Engineering Study) Approves initiation of engineering design and land acquisition Approves acquisition of LLE BAYOU CHOCTAW CAVERN 20 REPLACEMENT CRITICAL DECISIONS 3

CD-205/27/11 (A) Approves Performance Baseline Prerequisites Completion of Project Execution Plan Establishment of Performance Baselines An External Independent Review Approves acquisition of construction in FY 2011 CD-305/27/11 (A) Approves start of construction CD-409/07/12 (Submission) 01/15/13 (Approval) Approves start of operation, turnover to Operations and Maintenance BAYOU CHOCTAW CAVERN 20 REPLACEMENT EXECUTIVE SUMMARY 4

STRATEGIC PETROLEUM RESERVE CAVERN REPLACEMENT AT BAYOU CHOCTAW ACTIONS & ACTIVITIES: Land Acquisition – Corps of Engineers Just Compensation Letter was sent to P/L Olefins and the Wilberts 90 Day Notice to Vacate Sent to P/L on 3/24/11 to vacate by 6/27/11 Condemnation Letter Sent to the Wilberts on 4/13/11 Negotiations completed on 4/25/11. File sent to Legal on 4/26/11 D-T package to Corps Division Office 7/9/11 Right-of-Way available on 10/31/11 PL Olefins working on the removal of its ethane (personal property) 5

STRATEGIC PETROLEUM RESERVE CAVERN REPLACEMENT AT BAYOU CHOCTAW ACTIONS & ACTIVITIES: (cont) AFC Facilities Phase I Design is Complete 100% Phase II Design is Complete Well LLE has been Awarded and is Being Manufactured. Bids Received for Phase I Construction Package 6

STRATEGIC PETROLEUM RESERVE CAVERN REPLACEMENT AT BAYOU CHOCTAW LOOK AHEAD AFC Facilities Phase II Design Pre-Qualify Drilling Mgmt Services Contractor Complete Manufacture of Drilling LLE Award Phase I Facilities Construction Complete Condemnation Process for Land Acquisition 7

STRATEGIC PETROLEUM RESERVE CAVERN REPLACEMENT AT BAYOU CHOCTAW CONCERN P/L has notified USACE / DOE that Relocation Efforts may take up to 6 Months Negotiations are Ongoing on this Mitigative Measures are Being Identified and Implemented to Maintain Overall Project Schedule 8