PREVENTING OIL SPILLS OUR GOAL IS TO NEVER

PREVENTING OIL SPILLS OUR GOAL IS TO NEVER HAVE AN OIL SPILL, AND THE INDUSTRY TAKES EXTENSIVE PRECAUTIONS TO PREVENT SPILLS FROM OCCURRING.

TOPICS FOR DISCUSSION • WHY IS EFFECTIVE OIL SPILL PREPAREDNESS AND RESPONSE SO CRITICAL? • WHAT MAKES THE OIL SPILL PREPAREDNESS AND RESPONSE FRAMEWORK EFFECTIVE? • WHAT ARE THE COMPONENTS OFTHE OIL SPILL PREPAREDNESS AND RESPONSE FRAMEWORK? • HOW CAN WE SUPPORT OIL SPILL PREPAREDNESS AND RESPONSE EFFORTS?

PROTECTING OUR SHARED VALUES THROUGH A ROBUST OIL SPILL PREPAREDNESS AND RESPONSE FRAMEWORK, TOGETHER WE CAN ACHIEVE A MORE EFFECTIVE OIL SPILL RESPONSE TO PROTECT OUR SHARED VALUES. SENSITIVE ECOSYSTEMS LOCAL BUSINESSES HEALTH AND SAFETY TOURISM/RECREATION COMMUNITY INDUSTRIES

COMBATING THE SPREAD OF SPILLED OIL OUR COMMON ENEMY IS THE SPREAD OF SPILLED OIL AND ITS IMPACT ON OUR SHARED VALUES – PROTECTING THEM ISA RACE AGAINST TIME. THE EFFICACY AND SPEED OF RESPONSE ARE ACCELERATED BY: • SHARING OBJECTIVE INFORMATION • PRE-APPROVING RESPONSE STRATEGIES • RAPID, NONPARTISAN DECISION-MAKING • MOBILIZING RESPONSE CAPABILITIES

COOPERATING FOR EFFECTIVE RESPONSE FOR SUCCESSFUL OIL SPILL RESPONSE, WE NEED PROACTIVE COOPERATION WITH GOVERNMENTS AND LOCAL COMMUNITIES, WHICH CONSISTS OF: • • • OPEN LINES OF COMMUNICATION TRANSPARENT DECISION-MAKING CLEAR POLICIES REGARDING RESPONSE TECHNIQUES • REALISTIC EXPECTATIONS OF THE RESPONSE

OUR OIL SPILL PREPAREDNESS AND RESPONSE FRAMEWORK OUR FRAMEWORK IS MADE UP OF PREPAREDNESS AND RESPONSE PROCESSES, WITH ITS FOUNDATION COMPRISED OF INDUSTRY GUIDING PRINCIPLES, STAKEHOLDER ENGAGEMENT, AND INCIDENT MANAGEMENT. PREVENTION PREPAREDNESS RESPONSE RESTORATION

GUIDING PRINCIPLES FOR OIL SPILL PREPAREDNESS AND RESPONSE WE FOLLOW A SET OF GUIDING PRINCIPLES THAT ALLOWS THE RESPONSE COMMUNITY TO ACHIEVE A RAPID, WELL-MANAGED, AND UNIFIED RESPONSE EFFORT: PROTECT THE SAFETY STOP THE SOURCE OF A MINIMIZE OIL GETTING AND HEALTH OF PEOPLE SPILL AS QUICKLY AS POSSIBLE ENVIRONMENTAL AND COMMUNITY IMPACT TO SHORE IN OFFSHORE SCENARIOS INTO WATER IN ONSHORE SCENARIOS STAKEHOLDER ENGAGEMENT WITH GOVERNMENTS, COMMUNITIES, AND INDUSTRY

STAKEHOLDER ENGAGEMENT WITH GOVERNMENTS AND COMMUNITIES IS ESSENTIAL BEFORE, DURING, AND AFTER A SPILL, AND INCLUDES: • THREE-WAY COMMUNICATION BETWEEN INDUSTRY, GOVERNMENT, AND THE COMMUNITY • • UNDERSTANDING OF STAKEHOLDER PRIORITIES A SHARED VIEW OF THE SITUATION TRANSPARENCY OF DECISION-MAKING COLLABORATION WITHIN AN INCIDENT MANAGEMENT SYSTEM

INCIDENT MANAGEMENT AN INCIDENT MANAGEMENT SYSTEM ORGANIZES THE RESPONSE COMMUNITY TO WORK TOGETHER, MAKE DECISIONS, AND RESPOND RAPIDLY AND EFFECTIVELY. TYPICAL INCIDENT MANAGEMENT STRUCTURE INCIDENT COMMAND EXTERNAL STAKEHOLDER LIAISON AN INCIDENT MANAGEMENT SYSTEM PROVIDES: • ORGANIZATIONAL STRUCTURE • DEFINED ROLES AND RESPONSIBILITIES • CLEAR DECISION-MAKING AND RESPONSE PROCESSES • COMMUNICATION BETWEEN RESPONDERS AND IMPACTED COMMUNITIES • PLANNING OPERATIONS LOGISTICS FINANCE AND ADMIN COMMON UNDERSTANDING AND SITUATIONAL AWARENESS • IMPLEMENTATION OF RESPONSE

PREPARING FOR RESPONSE OUR DETAILED CONTINGENCY PLANNING AND PREPAREDNESS PROCESS IS MADE UP OF THE FOLLOWING CORE COMPONENTS: IDENTIFY POTENTIAL EVENTS PLAN SCENARIOS DEVELOP RESPONSE STRATEGIES PROVISION RESOURCES THIS IS A SCALABLE PROCESS THAT CAN APPLY TO ONE FACILITY OR MULTIPLE OPERATIONS ACROSS AN ENTIRE GEOGRAPHIC REGION.

RESPONDING TO AN INCIDENT THROUGH THE FOLLOWING PROCESS, INDUSTRY MOBILIZES RESOURCES ACCORDING TO A FORMAL, PRE-PLANNED STRATEGY AND ADAPTS THE RESPONSE AS THE EVENT UNFOLDS: INITIAL DEPLOYMENT CONFIRM RESPONSE STRATEGY ORGANIZE RESPONSE CASCADE RESOURCES ADJUST FOR REALITIES ONGOING RESPONSE

RESTORING IMPACTED AREAS RESTORATION CONSISTS OF ENVIRONMENTAL AND COMMUNITY REHABILITATION TO AGREED-UPON ENDPOINTS. THE GOAL OF RESTORATION IS TO RETURN THE IMPACTED AREA TO PRE-SPILL USE.

REQUEST OF STAKEHOLDERS FOR SUCCESSFUL IMPLEMENTATION OF THEOIL SPILL PREPAREDNESS AND RESPONSE FRAMEWORK – AND TO EFFECTIVELY PROTECT OUR SHARED VALUES – WE REQUEST THE FOLLOWING OF GOVERNMENT AND COMMUNITY STAKEHOLDERS: PRE-APPROVE RESPONSE STRATEGIES HELP OVERCOME BARRIERS DURING A RESPONSE LEVERAGE INDUSTRY EXPERTISE AS WE WORK TOGETHER

SUMMARY THE OIL SPILL PREPAREDNESS AND RESPONSE FRAMEWORK ALLOWS THE RESPONSE COMMUNITY TO APPROPRIATELY PLAN FOR AND RAPIDLY RESPOND TO MINIMIZE THE SPREAD OF SPILLED OIL AND THE RESULTING IMPACTSON OUR SHARED VALUES. SENSITIVE ECOSYSTEMS LOCAL BUSINESSES HEALTH AND SAFETY TOURISM/RECREATION COMMUNITY INDUSTRIES

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OUR OIL SPILL PREPAREDNESS PROCESS PREPAREDNESS PERFORM TRAINING AND EXERCISES IDENTIFY POTENTIAL EVENTS PLAN SCENARIOS DEVELOP RESPONSE STRATEGIES PROVISION RESOURCES STAKEHOLDER ENGAGEMENT WITH GOVERNMENTS, COMMUNITIES, AND INDUSTRY

PREPAREDNESS: IDENTIFY POTENTIAL EVENTS RESPONDERS DEFINE POTENTIAL OIL SPILL RISKS. IDENTIFY POTENTIAL EVENTS: RESPONDERS IDENTIFY POTENTIAL EVENTS AND THEIR LIKELIHOOD FOR THE SPECIFIC SITE, UP TO AND INCLUDING THE CREDIBLE WORST CASE. IMPROVE PREVENTION: THROUGH THE IDENTIFICATION OF POTENTIAL EVENTS, RESPONDERS MAY IDENTIFY AND IMPLEMENT FURTHER PREVENTION MEASURES THAT WILL REDUCE THE CHANCE OF SPILLS.

PREPAREDNESS: PLAN SCENARIOS USING THE IDENTIFIED EVENTS, RESPONDERS DEFINEAPPROPRIATE SPILL PLANNING SCENARIOS: RESPONDERS SELECT THE EVENTS THAT ENCOMPASS THE FULL RANGE OF IMPACT AND RESPONSE CHALLENGES FOR THE SPECIFIC SITE IN ORDER TO DEVELOP PLANNING SCENARIOS. SCENARIO CHARACTERISTICS: EACH PLANNING SCENARIO INCLUDES: • EVENT • OIL TYPE AND VOLUME • SPILL PROFILE • PREDICTED BEHAVIOR OF SPILL AND FATE OF OIL • IMPACTED ENVIRONMENTS AND COMMUNITIES

PREPAREDNESS: DEVELOP RESPONSE STRATEGIES RESPONDERS DEVELOP RESPONSE STRATEGIES BASED ONTHE PLANNING SCENARIOS. RESPONSE STRATEGY: RESPONSE STRATEGIES ARE DEVELOPED FOR EACHPLANNING SCENARIO AND INCORPORATE STAKEHOLDER ENGAGEMENT. RESPONSE STRATEGIES ADDRESS THE FOLLOWING QUESTIONS: • WHAT TECHNIQUES ARE NEEDED? • HOW MUCH OF EACH TECHNIQUE IS NEEDED? • WHAT IS THE RESPONSE TIMEFRAME? • HOW WILL THE RESPONSE ADAPT OVER TIME? NET ENVIRONMENTAL BENEFIT ANALYSIS (NEBA): THE RESPONSE STRATEGIES ARE UNDERPINNED BYNEBA, WHICH IS CONDUCTED DURING THE PREPAREDNESS PROCESS TO IDENTIFY THE BEST CHOICES THAT MINIMIZE IMPACTS OF OIL SPILLS ON PEOPLE AND THE ENVIRONMENT. OTHER CONSIDERATIONS OF THE RESPONSE STRATEGIES INCLUDE APPLICABLE REGULATIONS AND THE EFFECTIVENESS AND FEASIBILITY OF INVOLVED TECHNIQUES.

PREPAREDNESS: PROVISION RESOURCES INDUSTRY MEMBERS PROVISION RESOURCES APPROPRIATE TO THE PRE-PLANNED RESPONSE STRATEGIES USING THE PRINCIPLES OFTIERED PREPAREDNESS AND RESPONSE: RESPONDERS USE THE PRINCIPLES OF TIERED PREPAREDNESS AND RESPONSE TO CATEGORIZE AND STRUCTURE LEVELS OF OIL SPILL RESPONSE CAPABILITIES TO ALLOW FOR RESPONSE ESCALATION. RESOURCES ARE PROVISIONED, ACCORDING TO THE RESPONSE PLAN, AT VARYING LEVELS BASED ONSPILL SCENARIO REQUIREMENTS AND HOW QUICKLY RESOURCES WILL BE NEEDED AND CAN BE ACCESSED. THESE PRINCIPLES ENABLE RESPONDERS TO PLAN FOR APPROPRIATE REGIONAL AND GLOBAL RESOURCES TO BE MOBILIZED RAPIDLY AND CASCADED FOR AN EFFECTIVE RESPONSE TO A SPILL OF ANY MAGNITUDE. INDUSTRY RESOURCES: INDUSTRY MEMBERS PROVISION THE FOLLOWING RESPONSE RESOURCES DURING THE PREPAREDNESS PROCESS: • RESPONDERS • GENERAL EQUIPMENT • SPECIALIZED TOOLS AND SERVICES • SUBJECT MATTER EXPERTISE MUTUAL AID AND COOPERATION: INDUSTRY MEMBERS MAY ENTER INTO MUTUAL AID OR COOPERATIVE AGREEMENTS WITH OTHER LOCAL MEMBERS TO BOLSTER THEIR OWN CAPABILITIES THROUGH THE SHARING OF INDUSTRY RESOURCES.

PREPAREDNESS: TRAINING AND EXERCISES INDUSTRY MEMBERS PARTICIPATE IN AND LEAD TRAINING AND EXERCISE ACTIVITIES, ENSURING RESPONSE STAFF ARE PREPARED FOR A VARIETY OF SPILL SCENARIOS. TRAINING: STAFF ARE TRAINED IN ACCORDANCE WITH THEIR RESPONSE PLAN AND IN THEIR DESIGNATED ROLES FOR SPILLRESPONSE ACTIVITIES. EXERCISES: EXERCISES ENABLE PARTICIPANTS TO WORK TOGETHER IN CONDUCTING SIMULATED RESPONSES TO HYPOTHETICAL INCIDENTS IN ORDER TO DEMONSTRATE PROFICIENCY AND VALIDITY OF RESPONSE PLANS. TYPES OF EXERCISES INCLUDE: • DISCUSSION-BASED (TABLE TOP) EXERCISES • NOTIFICATION AND COMMUNICATION TESTS • EQUIPMENT DEPLOYMENT • FULL SCALE EXERCISES PARTICIPANTS: TYPICAL TRAINING AND EXERCISE PARTICIPANTSINCLUDE: • SPILL MANAGEMENT TEAM • FIELD RESPONDERS • REGULATORS • STAKEHOLDERS CONTINUAL PROCESS: TRAINING AND EXERCISES OCCUR THROUGHOUT THE PREPAREDNESS PROCESS.

PREPAREDNESS: SUMMARY OUR PREPAREDNESS PROCESS ALLOWS INDUSTRY TO PLAN FOR LOCATION-SPECIFIC POTENTIAL SCENARIOS, ENABLING A RAPID AND EFFECTIVE RESPONSE IN THE EVENT OF AN INCIDENT. PREPAREDNESS PERFORM TRAINING AND EXERCISES IDENTIFY POTENTIAL EVENTS PLAN SCENARIOS DEVELOP RESPONSE STRATEGIES PROVISION RESOURCES STAKEHOLDER ENGAGEMENT WITH GOVERNMENTS, COMMUNITIES, AND INDUSTRY

OUR OIL SPILL RESPONSE PROCESS RESPONSE INITIAL DEPLOYMENT CONFIRM RESPONSE STRATEGY ORGANIZE RESPONSE CASCADE RESOURCES ADJUST FOR REALITIES STAKEHOLDER ENGAGEMENT WITH GOVERNMENTS, COMMUNITIES, AND INDUSTRY ONGOING RESPONSE

RESPONSE: INITIAL DEPLOYMENT WHEN A SPILL OCCURS, RESPONDERS IMMEDIATELY DEPLOY LOCAL RESOURCES AND ASSESS THE INCIDENT POTENTIAL. INITIAL DEPLOYMENT: FOLLOWING A SPILL, LOCAL RESOURCES ARE IMMEDIATELY DEPLOYED TO MITIGATE INITIAL IMPACTS, REDUCE THE SPREAD OF OIL, AND PROTECT THE SAFETY OF PEOPLE. INITIAL ASSESSMENT AND CLASSIFICATION: RESPONDERS ASSESS THE INCIDENT SCALE AND IMPACT POTENTIAL IN PARALLEL WITH THE INITIAL DEPLOYMENT. ALERTS AND NOTIFICATIONS: APPROPRIATE STAKEHOLDERS, SUCH AS GOVERNMENT REGULATORS AND COMMUNITY LEADERS, RECEIVE ALERTS AND NOTIFICATIONS IMMEDIATELY FOLLOWING A SPILL, INITIATING THEIR ENGAGEMENT WITH THE SPECIFIC INCIDENT. IMPORTANCE OF TIME: IN MANY RESPONSES, THERE IS A CRITICAL “WINDOW OF OPPORTUNITY”, AFTER WHICH THE OIL SPREADS TO VERY MINISCULE THICKNESSES THAT MAY COMPROMISE RESPONSE EFFECTIVENESS. TIME IS OF THE ESSENCE AND, THEREFORE, PRE -APPROVAL OF RESPONSE STRATEGIES IS ESSENTIAL.

RESPONSE: CONFIRM RESPONSE STRATEGY FOLLOWING THE INITIAL DEPLOYMENT, THE ACTUAL SPILL IS MATCHED TO THEPLANNING SCENARIOS AND THE ACCOMPANYING RESPONSE STRATEGY IS CONFIRMED. MATCH TO SCENARIOS: RESPONDERS MATCH THE ACTUAL SPILL TO THECLOSEST PLANNING SCENARIO. NET ENVIRONMENTAL BENEFIT ANALYSIS (NEBA): THE CHOICES MADE DURING THE PREPAREDNESS PROCESS, BASED ON NEBA, ARE VALIDATED ONCE A SPILL HAS OCCURRED. THESE CHOICES CONFIRM THE SELECTION OF THE BEST AVAILABLE RESPONSE OPTIONS THAT MINIMIZE IMPACTS OF THE OIL SPILL ON PEOPLE AND THE ENVIRONMENT. CONFIRM RESPONSE STRATEGY: AFTER MATCHING THE SPILL, RESPONDERS CONFIRM APPLICABILITY OF THE CORRESPONDING PRE-PLANNED RESPONSE STRATEGY AND INITIATE ITS IMPLEMENTATION. THIS ENSURES UTILIZATION OF THE MOST EFFECTIVE RESPONSE TECHNIQUES FROM THE OUTSET. ADAPT BY EXCEPTION: THE PRE-PLANNED RESPONSE STRATEGY IS ADAPTED ONLY BY EXCEPTION, TAKING INTO ACCOUNT ANY UNFORESEEN FACTORS AND THE EVOLUTION OF THE SPILL.

RESPONSE: ORGANIZE RESPONSE THE RESPONSE IS ORGANIZED TOALLOW FOR PRUDENT OVERREACTION AND THE IMPLEMENTATION OF AN INCIDENT MANAGEMENT SYSTEM. ORGANIZE RESPONSE: ORGANIZING THE RESPONSE ENTAILS PROCURING THE APPROPRIATE RESOURCES, INCLUDING THE ESTABLISHMENT OF AN APPROPRIATELY SIZED SPILL MANAGEMENT TEAM, THAT ALLOW FOR PRUDENT OVERREACTION TO THEINCIDENT COMMENSURATE WITH RISKS AND REQUIREMENTS. IT IS IMPORTANT TO NOTE, HOWEVER, THAT UNNECESSARY RESPONSE MEASURES CAN FURTHER DAMAGE THE ENVIRONMENT. INCIDENT MANAGEMENT SYSTEM: INCIDENT MANAGEMENT SYSTEMS DEFINE AND STANDARDIZE ROLES AND RESPONSIBILITIES, COMMUNICATION LINES, MANAGEMENT STRATEGIES, PROCESSES, AND TERMINOLOGY ACROSS GOVERNMENTAL ORGANIZATIONS AND INDUSTRY, ENABLING TIMELY STAND-UP AND EFFECTIVE MANAGEMENT OF RESPONSE OPERATIONS IN THE EVENT OF A SPILL. KEYS TO SUCCESSFUL INCIDENT MANAGEMENT: • • MAINTAIN CLEAR INCIDENT RESPONSE OBJECTIVES AND TACTICAL ACTIONS ADOPT A DAILY INCIDENT MANAGEMENT ROUTINE AND PROCESS MONITOR DEPLOYED RESOURCES TO ENSURE THEIR APPLICABILITY AND EFFECTIVENESS FOSTER COLLABORATIVE AND OPEN WORKING RELATIONSHIPS AMONG STAKEHOLDERS

RESPONSE: CASCADE RESOURCES APPROPRIATE RESPONSE RESOURCES ARE DEPLOYED TO THE INCIDENT LOCATION. CASCADING RESOURCES: RESOURCES ARE DEPLOYED IN A CASCADING MANNER TO THE INCIDENT LOCATION, PER THEPREDETERMINED RESPONSE STRATEGY. THE CASCADING PROCESS INVOLVES RESOURCE TYPES: RESOURCES DEPLOYED TO THE INCIDENT LOCATION MAY INCLUDE LOCAL RESOURCES, MUTUAL AID, OIL SPILL RESPONSE ORGANIZATIONS, AND STATE AUTHORITIES. MOBILIZING TO THE INCIDENT LOCATION AS THE SPILL EVOLVES AND RESPONDERS BETTER UNDERSTAND WHAT EQUIPMENT AND SERVICES ARE REQUIRED. EACH BAR REPRESENTS A SPECIFIC RESPONSE CAPABILITY FOR A FACILITY OR REGION AND THE COLORED BARS REPRESENT THE APPROPRIATE CAPABILITIES FOR A SPECIFIC SPILL.

RESPONSE: ADJUST FOR REALITIES DURING A RESPONSE, STRATEGYEFFECTIVENESS – AS WELL AS INCIDENT CONDITIONS ANDCIRCUMSTANCES – MUST BE EVALUATED ANALYZED IN ORDER TO SUCCESSFULLY ADAPT THE RESPONSE APPROACH. VARIANCE FROM THE PLAN: BECAUSE A RESPONDER CANNOT PREDICT ALL CONDITIONS RELATED TO A PLANNING SCENARIO, THE RESPONSE IS ADJUSTED TO REFLECT REALITIES OF THE SITUATION, INCLUDING: • ACTUAL VS. FORECASTED OPERATING CONDITIONS • EXTERNAL RESTRICTIONS TO RESPONSE • SAFETY AND SECURITY • STAKEHOLDER REACTIONS • UNREALISTIC EXPECTATIONS NET ENVIRONMENTAL BENEFIT ANALYSIS (NEBA): DURING THE RESPONSE, THENEBA PROCESS IS USED TO REGULARLY RE-EVALUATE THE RESPONSE STRATEGY, TAKING THE REALITIES OF THE SITUATION INTO ACCOUNT. FOLLOWING RE-EVALUATION, THE EFFECTIVENESS AND FEASIBILITY OF RESPONSE OPTIONS ARE CONFIRMED AND THE BEST AVAILABLE RESPONSE OPTION THAT MINIMIZES THE IMPACT OF THE SPILL ON PEOPLE AND THE ENVIRONMENT IS IMPLEMENTED.

RESPONSE: ONGOING RESPONSE THE ONGOING RESPONSE REPRESENTS THE CONTINUED RESPONSE EFFORT AND TRANSITION TO RESTORATION. ONGOING RESPONSE: THE ONGOING RESPONSE WILL BE CONTINUALLY ADAPTED UNTIL A DETERMINED ENDPOINT HAS BEEN REACHED IN AGREEMENT WITH STAKEHOLDERS. THIS ENDPOINT IS DETERMINED BY: • NEBA CRITERIA • WHETHER FURTHER RESPONSE IS ENVIRONMENTALLY DETRIMENTAL OR BECOMES INCREASINGLY INEFFECTIVE • ADDRESSING COMMUNITY NEEDS REALITIES OF A RESPONSE: • WITH HUMAN HEALTH AND SAFETY AS OUR FIRST PRIORITY, • • A RESPONSE MAY NOT BE SAFE OR POSSIBLE IN ALL LOCATIONS. NOT ALL OIL CAN BE RECOVERED AND SOMETIMES CLEANUP EFFORTS CAN CAUSE MORE HARM THAN GOOD. MONITORING NATURAL PROCESSES AND TRANSITIONING TO RESTORATION MEASURES CAN, AT TIMES, BE THE BEST OPTION. TRANSITION TO RESTORATION: UPON COMPLETION OF THE RESPONSE EFFORT, RESTORATION ACTIVITIES MAY COMMENCE, INCLUDING: • ENVIRONMENTAL AND COMMUNITY RESTORATION • CONDUCTING LONG-TERM STUDIES AND PROJECTS • CONTINUED DIALOGUE BETWEEN INDUSTRY AND AUTHORITIES

RESPONSE: SUMMARY OUR RESPONSE PROCESS ALLOWS US TORESPOND RAPIDLY AND EFFECTIVELY TO AN INCIDENT WHILE CONTINUALLY EVALUATING AND MODIFYING THE RESPONSE IN ORDER TO ADDRESS CHANGING CONDITIONS, UNTIL AN AGREED-UPON ENDPOINT IS REACHED. RESPONSE INITIAL DEPLOYMENT CONFIRM RESPONSE STRATEGY ORGANIZE RESPONSE CASCADE RESOURCES ADJUST FOR REALITIES STAKEHOLDER ENGAGEMENT WITH GOVERNMENTS, COMMUNITIES, AND INDUSTRY ONGOING RESPONSE