Spill Recovery Summit Phil Wieczynski September 15, 2010

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2. 2 The MC252 well has been shut-in since July 15. Following the completion of cementing operations on the well on August 5, pressure testing was performed which indicated there is an effective cement plug in the casing. A number of diagnostic operations to further understand the well's condition have been successfully completed on the MC252 well. The diagnostics were performed over the last few days by the Development Driller II, which is currently latched to the MC252 well. A lead block impression test was completed in order to determine the condition of the casing hangar, located near the well head. The test, which uses soft lead metal to form an impression of the casing hangar, shows that the hangar was in the proper location and had not lifted. The next operation to be performed is the installation of a lock down sleeve, which is a mechanical device that completely secures the casing hangar and the annulus. This operation is a key final step before restarting of the relief well drilling. Once the lock down sleeve is installed and tested, BP will re-start the relief well operations on the weekend in order to intercept the well annulus. The relief well is the last step in completely killing the MC252 well. The MC252 well has been shut-in since July 15. Following the completion of cementing operations on the well on August 5, pressure testing was performed which indicated there is an effective cement plug in the casing. A number of diagnostic operations to further understand the well's condition have been successfully completed on the MC252 well. The diagnostics were performed over the last few days by the Development Driller II, which is currently latched to the MC252 well. A lead block impression test was completed in order to determine the condition of the casing hangar, located near the well head. The test, which uses soft lead metal to form an impression of the casing hangar, shows that the hangar was in the proper location and had not lifted. The next operation to be performed is the installation of a lock down sleeve, which is a mechanical device that completely secures the casing hangar and the annulus. This operation is a key final step before restarting of the relief well drilling. Once the lock down sleeve is installed and tested, BP will re-start the relief well operations on the weekend in order to intercept the well annulus. The relief well is the last step in completely killing the MC252 well.

3. Air Monitoring Most Recent Data Available from DEP � NO SIGNIFICANT ISSUES DEP began monitoring for VOC�s on May 18 in Ft. Walton Beach and Apalachicola (Eastpoint). The most recent monitoring results show values of VOC�s well below levels of concern for public health. 3 Both EPA and DEP have put additional monitoring in place in response to the Deepwater Horizon oil spill. The EPA has daily monitoring in Pensacola and Panama City and DEP has monitoring in Fort Walton Beach and Apalachicola (Eastpoint). There are additional real-time sampling data, as well as, data for other coastal states available on this site. The monitoring at these sites requires laboratory analysis and therefore the data are not available until the samples are collected, analyzed and the data are reviewed. This effort takes, in general, at least a week to complete. All of the data are reviewed daily by DEP staff. DEP is collecting samples for 24 hours on Tuesdays and Fridays, but is also collecting a 7 day sample from Monday to Monday every week. This schedule provides for full-time sampling. Both EPA and DEP have put additional monitoring in place in response to the Deepwater Horizon oil spill. The EPA has daily monitoring in Pensacola and Panama City and DEP has monitoring in Fort Walton Beach and Apalachicola (Eastpoint). There are additional real-time sampling data, as well as, data for other coastal states available on this site. The monitoring at these sites requires laboratory analysis and therefore the data are not available until the samples are collected, analyzed and the data are reviewed. This effort takes, in general, at least a week to complete. All of the data are reviewed daily by DEP staff. DEP is collecting samples for 24 hours on Tuesdays and Fridays, but is also collecting a 7 day sample from Monday to Monday every week. This schedule provides for full-time sampling.

4. Water Monitoring Snapshot 4 In response to the Deepwater Horizon incident, Florida has conducted monitoring throughout the state. Monitoring has been conducted for the following purposes: Pre-assessment Baseline � Used as a part of the Natural Resource Damage Assessment (NRDA) process to establish the baseline or the state of the resource prior to contact with any petroleum products which is critical to document the harm caused by the petroleum products associated with the Deepwater Horizon incident. Oil Spill Sampling � Conducted in response petroleum reaching Florida�s waters. Used by the Florida Department of Health to make decisions on the safety of the beaches for recreation and also used as a part of the NRDA process. Routine Beach Sampling was completed on September 9, 2010 but additional water sampling for all of the affected states will be coordinated through the National Oceanic and Atmospheric Administration�s (NOAA) Damage Assessment Remediation and Restoration Program. DEP�s Office of Coastal and Aquatic Managed Areas will continue act as Florida�s trustees for this effort. � When petroleum product was present sampling was conducted to define the water quality conditions in close proximity to visible indicators of oil presence, such as tar balls, sheen and "mousse". � The results from these analyses were assessed against human health and environmental benchmark values to assist state, federal and local government agencies to prioritize clean-up efforts and to protect and inform the public.In response to the Deepwater Horizon incident, Florida has conducted monitoring throughout the state. Monitoring has been conducted for the following purposes: Pre-assessment Baseline � Used as a part of the Natural Resource Damage Assessment (NRDA) process to establish the baseline or the state of the resource prior to contact with any petroleum products which is critical to document the harm caused by the petroleum products associated with the Deepwater Horizon incident. Oil Spill Sampling � Conducted in response petroleum reaching Florida�s waters. Used by the Florida Department of Health to make decisions on the safety of the beaches for recreation and also used as a part of the NRDA process. Routine Beach Sampling was completed on September 9, 2010 but additional water sampling for all of the affected states will be coordinated through the National Oceanic and Atmospheric Administration�s (NOAA) Damage Assessment Remediation and Restoration Program. DEP�s Office of Coastal and Aquatic Managed Areas will continue act as Florida�s trustees for this effort. � When petroleum product was present sampling was conducted to define the water quality conditions in close proximity to visible indicators of oil presence, such as tar balls, sheen and "mousse". � The results from these analyses were assessed against human health and environmental benchmark values to assist state, federal and local government agencies to prioritize clean-up efforts and to protect and inform the public.

5. Sediment Sampling Sediment sampling was conducted in areas where oil had previously been observed on the beach and then subsequently removed. The purpose of the sediment sampling was to determine if visibly oil-free sands would pose a threat to people in the area Beach sand samples were analyzed for selected Polycyclic Aromatic Hydrocarbons, metals and Total Recoverable Petroleum Hydrocarbons Samplers collected cores, took pictures of the cores and then were instructed to collect sands above the visible layer of oil that appeared to be oil free For counties that did not have oil observations, samplers were instructed to collect one sand sample at the same sites that they were collecting routine water quality samples None of the samples were above EPA�s proposed health benchmarks, even when collecting oiled sediment 5

6. Subsea & Subsurface Oil Federal On Scene Coordinator has developed a comprehensive sub-sea oil monitoring plan, which will allow scientists to better understand what oil remains and lay the foundation for the natural resources damage assessment Subsurface sampling has been ongoing since May 6

7. Goals of Subsea Detection, Sampling & Monitoring Strategy The goals are to: Monitor and assess the distribution, concentration and degradation of the oil that remains in the water column and/or bottom sediments. Evaluate the distribution of indicators of dispersant or break-down products of dispersants used in oil spill response activities. Identify any additional response requirements that may be necessary to address remaining subsurface oil. 7

8. Natural ResourceDamage Assessment (NRDA) Through the NRDA process, NOAA and co-trustees conduct studies to identify extent of resource injuries, best methods for restoration, and type and amount of restoration required. The three steps are: Preliminary Assessment: Natural resource trustees determine whether injury to public trust resources has occurred. Injury Assessment/Restoration Planning: Trustees quantify injuries and identify possible restoration projects. Economic and scientific studies assess the injuries to natural resources and the loss of services. Restoration Implementation: The final step is to implement restoration and monitor its effectiveness. Trustees work with the public to select and implement restoration projects. 8 We are currently in the first and second steps � Step 1, Pre-assessment: We have finished the baseline sampling and are doing the pre-assessment, determining what public resources have been injured. We are primarily looking at beach/shoreline, marshes, seagrass beds, biological resources like birds, turtles, marine mammals, etc. In addition, one of Florida�s major injuries will be to Human Use, the loss of recreation boating and fishing as well as beach recreation. There are teams, primarily contractors, that have been and continue to do beach surveys of use, boat ramp surveys as well as using state park attendance to determine the loss of use of these public resources. All these surveys are ongoing and began back in early May. Step 2, Restoration Planning: The Trustees have put together list of emergency restoration projects (these are projects that can prevent further injury or reduce injury) for funding. These involve all states and have recently been submitted to the US Coast Guard. In addition, the states are working on a list of early restoration projects that could be done within the next 18 months that would help shorten the time for recovery or that could be accomplished without knowing the full extent of the damage � these projects must be able to be done without the possibility of re-oiling also. Discussions between the state and federal agencies and the responsible party are beginning related to funding, timeframes, is the restoration related to a perceived or documented injury, etc. The quantification (injury assessment) of the impacts are still being discussed and involve the development of scientific and statistically valid projects that can be utilized in a court of law if necessary. These plans will be in development soon as the injuries to resources are determined. Restoration planning typically begins after this, but as mentioned some early plans are already being submitted.We are currently in the first and second steps � Step 1, Pre-assessment: We have finished the baseline sampling and are doing the pre-assessment, determining what public resources have been injured. We are primarily looking at beach/shoreline, marshes, seagrass beds, biological resources like birds, turtles, marine mammals, etc. In addition, one of Florida�s major injuries will be to Human Use, the loss of recreation boating and fishing as well as beach recreation. There are teams, primarily contractors, that have been and continue to do beach surveys of use, boat ramp surveys as well as using state park attendance to determine the loss of use of these public resources. All these surveys are ongoing and began back in early May. Step 2, Restoration Planning: The Trustees have put together list of emergency restoration projects (these are projects that can prevent further injury or reduce injury) for funding. These involve all states and have recently been submitted to the US Coast Guard. In addition, the states are working on a list of early restoration projects that could be done within the next 18 months that would help shorten the time for recovery or that could be accomplished without knowing the full extent of the damage � these projects must be able to be done without the possibility of re-oiling also. Discussions between the state and federal agencies and the responsible party are beginning related to funding, timeframes, is the restoration related to a perceived or documented injury, etc. The quantification (injury assessment) of the impacts are still being discussed and involve the development of scientific and statistically valid projects that can be utilized in a court of law if necessary. These plans will be in development soon as the injuries to resources are determined. Restoration planning typically begins after this, but as mentioned some early plans are already being submitted.

9. Baseline Sampling for NRDA 9

10. Three Things about NRDA NRDA is restoration focused. Purpose is to determine type and amount of restoration needed to compensate the public for injuries to their resources. Restoration is considered early and throughout the process. Injuries are balanced against, and directly scaled to restoration. NRDA is a legal process. Trustees are required to demonstrate causality between release and resource injury and lost use; sound science is key to success. Strategy must be encompassing and flexible. Successfully getting to the end requires a common vision and coordination. 10

11. NRDA Florida Trustees Florida�s trustees as named by DEP Secretary: CAMA Director, Lee Edmiston, DEP Deputy General Counsel Larry Morgan, FWRI Director Gil McRae to serve Trustees coordinate with response agencies and integrate trustee concerns and science into cleanup. Assess injuries. Evaluate and scale restoration alternatives to: Return resources to baseline, Compensate for interim lost resources and services �To make the public whole� Oversee and/or implement restoration plan. Recover assessment costs. 11

12. Impacts to Florida Loss of Service: largest impact Florida has suffered. Beach Habitat: impacts to the beach from oil and tarballs. Dune habitats and coastal vegetation: impacts from recon, response and cleanup activities. Seagrass Beds: impacts from boom and VOO activities. Oiling of Sand Resources Offshore: impact to be determined in the future. Wildlife: shorebirds and nesting colonial species, sea turtles, marine mammals (minimal) 12 Loss of service � this is the largest impact that we believe Florida has suffered. This is loss of service to the public (does not include private economic losses). This includes loss or recreational services to the public primarily beach recreation and recreational fishing and boating. The length of time this loss occurs will also be addressed. This public loss can be addressed under NRDA and studies to-date concentrated on boat ramp surveys, aerial beach counts, and beach surveys. These surveys were done before impact and after impact and continue. Strategies for recovery (restoration) could possibly be related to improving or adding boat ramps to increase fishing efforts, fishing piers, purchase of private beachfront property to increase public access, etc. Beach habitat � impacts to the beach from oil and tarballs. At this point studies looking at oil under the sand, its impacts and ways to remove if necessary are being investigated. Impacts to dune habitats and coastal vegetation from recon, response and cleanup activities. The Trustees are looking at a coastal plant propagation proposal to collect seeds if necessary and propagate local plants for replanting of affected habitats, if nursery stock is not available. Impacts to sea grass beds from boom and VOO activities. Numerous cases of prop scarring have been documented in the panhandle from boom deployment and lack of proper anchoring of boom. Transplanting of sea grass, propagation of plants, or bird stakes are being discussed as a method to restore these areas. The oiling of large sand resources offshore is a potential impact that will be determined in the future. These sand resources are typically utilized in beach re-nourishment activities in the panhandle. If these resources have been contaminated and cannot be utilized restoration or alternative sources may have to be proposed. At this point it is unknown if any artificial reefs within state waters have been contaminated, however, this is a resource that will need to be investigated as a potential loss of service or impact to hard bottom communities. To-date there has been minimal, if any, impacts to salt marshes or sea grasses from direct oiling. These habitats are currently being investigated, primarily in the Perdido Bay and Pensacola Bay area by the shoreline pre-assessment teams. Wildlife affected included shorebirds and nesting colonial species, sea turtles, marine mammals (minimal in Florida) � primarily handled by FWC. There is also a group looking at the potential for groundwater contamination by hydrocarbons from offshore fresh water aquifer openings.Loss of service � this is the largest impact that we believe Florida has suffered. This is loss of service to the public (does not include private economic losses). This includes loss or recreational services to the public primarily beach recreation and recreational fishing and boating. The length of time this loss occurs will also be addressed. This public loss can be addressed under NRDA and studies to-date concentrated on boat ramp surveys, aerial beach counts, and beach surveys. These surveys were done before impact and after impact and continue. Strategies for recovery (restoration) could possibly be related to improving or adding boat ramps to increase fishing efforts, fishing piers, purchase of private beachfront property to increase public access, etc. Beach habitat � impacts to the beach from oil and tarballs. At this point studies looking at oil under the sand, its impacts and ways to remove if necessary are being investigated. Impacts to dune habitats and coastal vegetation from recon, response and cleanup activities. The Trustees are looking at a coastal plant propagation proposal to collect seeds if necessary and propagate local plants for replanting of affected habitats, if nursery stock is not available. Impacts to sea grass beds from boom and VOO activities. Numerous cases of prop scarring have been documented in the panhandle from boom deployment and lack of proper anchoring of boom. Transplanting of sea grass, propagation of plants, or bird stakes are being discussed as a method to restore these areas. The oiling of large sand resources offshore is a potential impact that will be determined in the future. These sand resources are typically utilized in beach re-nourishment activities in the panhandle. If these resources have been contaminated and cannot be utilized restoration or alternative sources may have to be proposed. At this point it is unknown if any artificial reefs within state waters have been contaminated, however, this is a resource that will need to be investigated as a potential loss of service or impact to hard bottom communities. To-date there has been minimal, if any, impacts to salt marshes or sea grasses from direct oiling. These habitats are currently being investigated, primarily in the Perdido Bay and Pensacola Bay area by the shoreline pre-assessment teams. Wildlife affected included shorebirds and nesting colonial species, sea turtles, marine mammals (minimal in Florida) � primarily handled by FWC. There is also a group looking at the potential for groundwater contamination by hydrocarbons from offshore fresh water aquifer openings.

13. Ongoing Response Organization 13

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15. 15 Important Issues for Response Maintenance as related to the Framework of Recovery Coordination within the Response Framework Providing effective leadership at key points within the organization Identifying where state and local governments can obtain the best information needed to represent the public Ensure good information sharing within our communities Transition planning from response phase to recovery phase The organization has changed many times since April 22nd Now entering a longer term recovery phase with different decisions and information flow Effective interactions with BP, Coast Guard, state and local agencies Provide the appropriate level of interaction in planning and recovery activities

16. 16 Recovery Issues Continued Accurate assessments of impacts Proper decision making related to the scientific evaluation of the oil on-shore and off-shore Documentation of impacts for the proper assessment of natural resource damages including direct impacts and lost use Participation in the natural resource damage assessment process Identify End Points for Response Actions Define �How Clean is Clean� as it relates to the various oil impacts

17. QUESTIONS?