Deepwater Horizon Update August 10, 2010

Total Paid to Claims = $319 Million
Cost of Response to Date= $6.1 Billion

Wildlife Collected Dead:

• Birds: 3,902
• Sea Turtles: 517
• Mammals: 71

Since the well has been capped the number of birds and sea turtles found dead has increased compared to daily averages in the first months of the spill. Scientist believe the increase can be attributed to the oil taking longer to reach some of the more sensitive nesting grounds, as well as rescuers recently reaching those areas that had been avoiding so as not to cause more harm than good.

Subsea Source Control
The MC252 well has been shut-in since July 15; there is currently no oil flowing into the Gulf. BP continues to work with the guidance and approval of the National Incident Commander and the leadership and direction of the federal government.

Following the completion of cementing operations on the MC252 well on August 5, pressure testing was performed which indicated there is an effective cement plug in the casing. BP believes the static kill and cementing procedures have been successful.

BP continues to progress the relief well operations that commenced on May 2. The well is currently at a measured depth of 17,909 feet. Progressing towards the intersect with the MC252 well will involve drilling alternating with ranging runs to confirm proximity to the well. Depending upon weather conditions, August 15th is the current estimate of the most likely date by which the first relief well will intercept the MC252 well annulus.

Operations on the second relief well, which started May 16, have been suspended at a measured depth of 15,874 feet, so as not to interfere with the completion of the first relief well.

Surface Spill Response
Work continues to identify and collect oil on the surface of the sea and to collect and clean up oil that has reached shore. Since July 15, no new oil has flowed into the Gulf of Mexico from the MC252 well. As a result, BP, as part of Unified Command, has conducted overflights and other reconnaissance and has found less skimmable quantities of oil over the last several days. To date, skimming operations have recovered a total of over 826,000 barrels of oily liquid and a total of 411 controlled burns have been carried out.

Approximately 30,800 personnel, more than 5,050 vessels, and dozens of aircraft are engaged in the response effort.

BP Makes Early Deposit into Gulf of Mexico Oil Spill Escrow Trust
Press Statement from BP:
BP announced today that it has established a trust and made a $3 billion initial deposit of the previously-announced $20 billion escrow account to pay legitimate claims arising from the Deepwater Horizon incident and the resulting oil and gas spill.

“The purpose of the escrow account was to assure those adversely affected by the spill that we indeed intend to stand behind our commitment to them and to the American taxpayers,” said Bob Dudley, CEO of BP’s Gulf Coast Restoration Organization. “Establishing this trust and making the initial deposit ahead of schedule further demonstrates our commitment to making it right in the Gulf Coast.”

Two individual trustees have been named to the newly-established trust that will administer the account: the Honorable John S. Martin, a former U.S. District Judge for the Southern District of New York, and Kent Syverud, Dean of the Washington University School of Law.

Citigroup will serve as corporate trustee and paying agent for the account. Arrangements have been made for checks drawn on the fund to be cashed free of charge at any of the 160 Whitney National Bank branches across the Gulf Coast region.

On June 16, following consultations with the U. S. Government, BP announced that it would transition the claims process required under the Oil Pollution Act of 1990 to an independent claims facility managed by Kenneth Feinberg and create a $20 billion escrow account to satisfy claims resolved by that facility and certain other claims, including natural resource damages and state and local response costs. BP announced at the time that the first deposit of $3 billion to the account would occur by the end of the third quarter. BP has decided to make this deposit early to demonstrate its commitment to meet its pledge to restore both the livelihoods of those affected by the oil spill and the environment.

An additional $2 billion deposit will be made in the fourth quarter of 2010. Thereafter, $1.25 billion will be deposited per quarter until a total of $20 billion has been deposited.

Senior Administration Officials Meet with BP Executives at the White House
Chief of Staff Rahm Emanuel, Assistant to the President for Energy and Climate Change Carol Browner, White House Counsel Robert Bauer, and National Incident Commander Admiral Thad Allen and other senior administration officials met with BP executives Bob Dudley and Lamar McKay at the White House to discuss a range of issues regarding the ongoing clean up and recovery efforts in the Gulf.

They impressed upon BP the importance of living up to their commitment to long term recovery, and underscored that the Administration will remain vigilant in ensuring that promise is met. Among a variety of other issues, the administration officials also stressed the need for BP to move quickly to pay state and local government claims, and reiterated President Obama’s commitment to work with the people of the Gulf to hold BP accountable, and to address economic, health and environmental needs, and restore the beauty and bounty of the region.

Admiral Allen Provides an Update on the BP Oil Spill Response
National Incident Commander Admiral Thad Allen provided a briefing to inform the American public and answer questions on the administration-wide response to the BP oil spill. A full transcript is available here.

Admiral Allen reiterated the administration’s commitment to continue drilling until the relief well is completed: “We believe that we have filled the casing with cement and have secured that part of the well. The job before us now is to finish the relief well, to enter the annulus from the bottom, assess its condition, and then seal the well with cement from the bottom up. That will, in our view, at that point, permanently kill the well.”

Allen also stressed the continued efforts to cleanup impacted shoreline: “In the meantime, we are redoubling our efforts in the areas that are most impacted by oil. This would include the northern areas of Barataria Bay, behind the Chandeleur Islands, Breton Sound, areas over in Terrebonne and Timbalier Bay as well,” he said.

Relief Well Drilling and Acoustic Monitoring Continue
Development Driller III continues the drilling of the relief well to ensure the well is permanently sealed and has reached a depth of 17,909 feet below the Gulf surface, conducting ranging runs periodically as it comes closer to intercepting the wellbore. The second relief well is holding at 15,961 feet. The NOAA Ship Henry B. Bigelow continues conducting acoustic surveys in order to ensure the integrity of the wellhead—part of continued efforts to use the best scientific tools available in response to the BP oil spill. Pressure tests have shown that the procedure to prevent any more oil from spilling with a cement plug appears to have succeeded.

FWS Personnel Continue Wildlife Rescue and Recovery Missions Across the Region
From the Houma, La., Incident Command Post, 279 field personnel, 86 vessels, four helicopters and one float plane participated in reconnaissance and wildlife rescue and recovery missions. From the Mobile, Ala., Incident Command Post, wildlife recovery teams responded to 34 calls on the Wildlife Hotline. To report oiled wildlife, call (866) 557-1401.

Shoreline Cleanup Operations Continue Along the Gulf Coast
As part of continued efforts to protect wildlife and wildlife habitats from the impacts of the BP oil spill, FWS and National Parks Service cleanup crews continued shoreline cleanup operations at Gulf Islands National Seashore in Mississippi, removing oil debris from Horn Island (3,540 lbs), Petit Bois (1,000 lbs), Cat Island (1,925 lbs) and Ship Island (1,600 lbs).

Approved SBA Economic Injury Assistance Loans Surpass $19.7 Million
SBA has approved 229 economic injury assistance loans to date, totaling more than $19.7 million for small businesses in the Gulf Coast impacted by the BP oil spill. Additionally, the agency has granted deferments on 789 existing SBA disaster loans in the region, totaling more than $4.3 million per month in payments. For information on assistance loans for affected businesses, visit the SBA’s Web site at www.sba.gov/services/disasterassistance, call (800) 659-2955 (800-877-8339 for the hearing impaired), or email [email protected].

Administration Continues to Oversee BP’s Claims Process
The administration will continue to hold the responsible parties accountable for repairing the damage, and repaying Americans who’ve suffered a financial loss as a result of the BP oil spill. To date, 145,219 claims have been opened, from which more than $324 million have been disbursed. No claims have been denied to date. There are 1,256 claims adjusters on the ground. To file a claim, visit www.bp.com/claims or call BP’s helpline at 1-800-440-0858. Those who have already pursued the BP claims process and are not satisfied with BP’s resolution can call the Coast Guard at (800) 280-7118. Additional information about the BP claims process and all available avenues of assistance can be found at www.disasterassistance.gov.