Coastal Protection and Restoration AuthorityJanuary 22, 2012

Deepwater Horizon

Response Update

Current Oiling Conditions

• Over 6 million pounds of oily materials were removed from Louisiana in 2012.

• 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 IEarly Restoration

Project Update

Lake Hermitage Marsh Creation

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 2013 • 3-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.

2013• Facility completion – Spring

2014

– Operations• Broodstock maintenance• Algal cultivation• Larvae production• Nursery system

Phase IIEarly Restoration

Update

Coastal Restoration ProjectsPhase II ERP/ER

• The Phase II Final ERP/ER was finalized on December 21, 2012.

• Second round of projects to be funded from the $1 billion BP committed to early restoration on April 21, 2012.

• 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 Hatchery West Grand Terre Beach Nourishment

Shell Island Restoration West Grand Terre Stabilization

Chandeleur Islands Restoration Barataria Basin Barrier Shoreline Restoration - Caminada Headland

Biloxi Marsh Shoreline Protection Caillou 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?