Coastal Protection and Restoration Authority January 22, 2012 Deepwater Horizon

Response Update

Current Oiling Conditions Over 6 million pounds of oily materials were removed from Louisiana in According to response data, over 208 miles of Louisiana shoreline continue to display some degree of oiling. Nearly 100% of the shorelines currently classified by response as “heavily oiled” and “moderately oiled” are Louisiana shorelines.

Unilateral removal of segments from active response Lack of proactive and long-term oil reconnaissance and removal Submerged oil Premature exit from response Orphaned boom anchors Ongoing Response Issues

Post-Isaac reports of sheen in the area of MC 252 First reported by BP on September 16, 2012 Most recent report on January 11, 2013 A second ROV investigation commenced in December 2012 BP and Transocean to develop options for permanent remediation of potential oil contained within the wreckage Louisiana’s concerns Continued reports of sheening Lack of long-term plan to eliminate continued threat to the Gulf and surrounding environment Recent Sheening Near Macondo Well

Natural Resource Damage Assessment -- Early Restoration

Phase I Early Restoration Project Update

Lake Hermitage Marsh Creation

Louisiana Oyster Cultch Project Oyster Cultch Placements – Spring 2012 Hackberry Bay Sister Lake – Fall 2012 Lake Fortuna South Black Bay – Spring Mile Bay Drum Bay

Louisiana Oyster Cultch Project - Hatchery Oyster Hatchery Facility – Expansion of existing Louisiana Sea Grant Facility – At LDWF Marine Fisheries Lab – Designer - Crump Wilson Architects, LLC Baton Rouge, LA – Projected Timeline Construction begins – Feb Facility completion – Spring 2014 – Operations Broodstock maintenance Algal cultivation Larvae production Nursery system

Phase II Early Restoration Update

Coastal Restoration Projects Phase II ERP/ER The Phase II Final ERP/ER was finalized on December 21, Second round of projects to be funded from the $1 billion BP committed to early restoration on April 21, Approximately $9 million 2 projects: A Comprehensive Program for Enhanced Management of Avian Breeding Habitat Injuries by Response Improving Habitat Injured by Spill Response: Restoring the Night Sky

Oyster Re-establishment Program (Louisiana Oyster Cultch Project) Cheniere Ronquille Barrier Island Restoration Lake Hermitage Additional Increment (NRDA Early Restoration Project) Bay Side Segmented Breakwater at Grand Isle Saltwater HatcheryWest Grand Terre Beach Nourishment Shell Island RestorationWest Grand Terre Stabilization Chandeleur Islands RestorationBarataria Basin Barrier Shoreline Restoration - Caminada Headland Biloxi Marsh Shoreline ProtectionCaillou Lake Grand Liard Marsh & Ridge Restoration Coastal Restoration Projects “Louisiana Plan” Projects

RESTORE Act & Clean Water Act

CWA regulates the discharge of pollutants into U.S. waters. Parties responsible for discharging oil in violation of the CWA face penalties. –$1,100 - $4,300 per barrel OR $37,500 –$140,000 per day The U.S. Department of Justice filed a lawsuit seeking CWA civil penalties for the Deepwater Horizon Oil Spill, but the full amount of the CWA penalties has not yet been resolved. Clean Water Act

Interstate Ecosystem Restoration Council Equal-Share State Allocations Impact-Based State Allocations 30% (+ 50% of the interest) 35% 2.5% (+25% of the interest) Centers of Excellence Research Grant Program 2.5% (+25% of the interest) Restoration Science, Observation, Monitoring, and Technology Program 2.5% (+25% of the interest) RESTORE Act Overview

Settlements and Upcoming Trial

$1 billion civil Clean Water Act penalty Subject to the RESTORE Act Transocean: Settlement of Clean Water Act Penalties

1 misdemeanor charge of violating the CWA $400 million in criminal fines and penalties $150 million for acquiring, preserving and restoring marine and coastal environments, ecosystems, and bird and wildlife habitat harmed by the Oil Spill $150 million for oil spill response and prevention $100 million for DOI for improvements to offshore drilling safety practices Not subject to the RESTORE Act Transocean: Settlement of Criminal Charges and Penalties

Scheduled for Monday, February 25, 2012 in Federal Court in New Orleans. Judge Carl Barbier presiding over a non-jury trial Phase I of a two part trial – Will determine fault for the explosion of the rig and the resulting spill and allocate fault amongst the defendants – Determine the issue of gross negligence – Will not resolve the amount of the remaining CWA claims – Does not resolve the NRDA claims MDL Trial

BP settled with certain private plaintiff’s for economic, property damage and medical claims. Following a fairness hearing, Judge Barbier gave final approval for the economic and property settlement on December 21, 2012 and the medical benefits settlement on January 11, 2013 Estimated $7.8 billion (the final figure could be higher or lower) Does not resolve claims against Transocean or Halliburton Does not resolve NRDA, CWA or other governmental claims Settlement on Private Economic, Property and Medical Claims

Questions?