DEEPWATER HORIZON Update May 18, 2010

MONDAY, MAY 17 The Numbers to date: Total response vessels: 950 Containment Boom deployed: more than 1.36 million feet Containment boom available: more than 350,000 feet Sorbent boom deployed: more than 480,000 feet Sorbent boom available: more than 800,000 feet Total boom deployed: more than 1.8 million feet (regular plus sorbent boom) Total boom available: more than 1.15 million feet (regular plus sorbent boom) Oily water recovered: more than 7.65 million gallon Dispersant used: more than 590,000 gallons Dispersant available: more than 300,000 gallons Overall personnel responding: more than 20,000 BP says it is collecting an estimated 2,000 barrels of oil a day Total response costs to date: $625 million. 17 staging areas are in place and ready to protect sensitive shorelines. These areas include: Dauphin Island, Ala., Orange Beach, Ala., Theodore, Ala., Panama City, Fla., Pensacola, Fla., Port St. Joe, Fla., St. Marks, Fla., Amelia, La., Cocodrie, La., Grand Isle, La., Shell Beach, La., Slidell, La., St. Mary, La., Venice, La., Biloxi, Miss., Pascagoula, Miss., Pass Christian, Miss. BP’s Latest Update: Subsea Source Control and Containment Subsea efforts continue to focus on progressing options to stop the flow of oil from the well through interventions via the blow out preventer (BOP), and to collect the flow of oil from the leak points. These efforts are being carried out in conjunction with governmental authorities and other industry experts. The riser insertion tube tool (RITT) containment system that was put into place in the end of the leaking riser is operational. It is estimated to be collecting and carrying about 2,000 barrels a day (b/d) of oil to flow up to the drillship Discoverer Enterprise on the surface 5,000 feet above. Produced oil is being stored on the drillship while produced gas is being flared. It is expected that it will take some time to increase the flow through the system and maximize the proportion of oil and gas flowing through the broken riser that will be captured and transported to the drillship. This remains a new technology and both its continued operation and its effectiveness in capturing the oil and gas remain uncertain. Other containment options continue to be progressed. BP also continues to develop options to shut off the flow of oil from the well through interventions via the failed BOP. Plans continue to develop a so called "top kill" operation where heavy drilling fluids are injected into the well to stem the flow of oil and gas, followed by cement to seal the well. Most of the equipment is on site and preparations continue for this operation, with a view to deployment in the next week or so. Options have also been developed to potentially combine this with the injection under pressure of a variety of materials into the BOP to seal off upward flow. Work on the first relief well, which began on May 2, continues. The DDII drilling rig began drilling the second relief well on May 16. Each of these wells is estimated to take some three months to complete from the commencement of drilling. NOAA Coordinates Underwater Fish and Habitat Surveys NOAA’s Flower Garden Banks National Marine Sanctuary is teaming up with NOAA’s National Centers for Coastal Ocean Science, the Harbor Branch Oceanographic Institution and the University of North Carolina Wilmington to conduct remotely operated underwater vehicle surveys of the fish and deep water habitats of East and West Flower Garden Banks—vital marine sanctuaries in the Gulf of Mexico. Fishing Restrictions Expanded; Majority of Federal Waters Remain Open NOAA modified the Gulf of Mexico commercial and recreational fishing closure area. It now measures 24,241 square miles—approximately 10 percent of the Gulf of Mexico exclusive economic zone. The majority of federal waters in the Gulf of Mexico are open to commercial and recreational fishing. Seafood Safety Analysis Continues NOAA Fisheries is collecting baseline samples for seafood safety analyses on the west side of the Mississippi river. Two locations were sampled and the research vessel is now moving west of the oil spill in Louisiana waters. NOAA Fisheries also contracted a fishing vessel that left Saturday morning to sample the easternmost closed fishing zone using bottom trawl gear. SUNDAY, MAY 16 Riser Insertion Tube Leak Mitigation Tactic is Tested The Unified Area Command reports that overnight the Riser Insertion Tube Tool was successfully tested and inserted into the leaking riser, capturing some amounts of oil and gas. The oil was stored on board the Discoverer Enterprise drill ship 5,000 feet above on the water’s surface, and natural gas was burned through a flare system on board the ship. The test was halted temporarily when the tube was dislodged, but technicians have fully inspected the system and have re-inserted the tool. While not collecting all of the leaking oil, this tool is an important step in reducing the amount of oil being released into Gulf waters Secretary Salazar and Secretary Napolitano issued a joint statement on these efforts: “Today, BP attempted another test to contain some of the oil leaking from the riser. This technique is not a solution to the problem, and it is not yet clear how successful it may be. We are closely monitoring BP’s test with the hope that it will contain some of the oil, but at the same time, federal scientists are continuing to provide oversight and expertise to BP as they move forward with other strategies to contain the spill and stop the flow of oil. We will not rest until BP permanently seals the wellhead, the spill is cleaned up, and the communities and natural resources of the Gulf Coast are restored and made whole.” Progress Made in Relief Well Drilling Preparations MMS reports the Development Driller III, which will drill the first relief well, has finished running blowout preventer (BOP) stack and riser and is currently latching the BOP to the wellhead for the first relief well. The Development Driller II, which will drill the second relief well, is on location and is making preparations for initiating the drilling process and performing BOP maintenance. SATURDAY, MAY 15 Secretaries Napolitano and Salazar Seek Clarification of BP’s Redress Intentions Secretary Napolitano and Secretary Salazar sent a letter to BP CEO Tony Hayward publicly holding BP’s feet to fire. As the President said yesterday, this administration is committed to ensuring that those affected are compensated. The Secretaries reiterated that as a responsible party for this event, BP is accountable to the American public for the full clean up of this spill and all the economic loss caused by the spill and related events. Coast Guard and EPA Approve Use of Dispersant Subsea The U.S. Coast Guard and U.S. Environmental Protection Agency (EPA) announced they have authorized BP to use dispersants underwater, at the source of the Deepwater Horizon leak. Oil spill dispersants are chemicals that attempt to break down the oil into small drops and prevent it from reaching the surface or the U.S. shoreline. Dispersants are generally less harmful than the highly toxic oil leaking from the source and biodegrade in a much shorter time span. The use of the dispersant at the source of the leak represents a novel approach to addressing the significant environmental threat posed by the spill. Preliminary testing results indicate that subsea use of the dispersant is effective at reducing the amount of oil from reaching the surface—and can do so with the use of less dispersant than is needed when the oil does reach the surface. This is an important step to reduce the potential for damage from oil reaching fragile wetlands and coastal areas. This course of action was decided upon with thorough evaluation and consideration of many factors as well as consultation with stakeholders. While BP pursues the use of subsea dispersants, the federal government will require regular analysis of its effectiveness and impact on the environment, water and air quality, and human health through a rigorous monitoring program. EPA's directive to BP, including the monitoring plan the company must adhere to in order to ensure the protection of the environment and public health, is publicly available at www.epa.gov/bpspill/dispersants. Water Contamination Devices Installed in Everglades A National Park Service crew installed three Semi-Permeable Membrane Devices in the Gulf Coast District of Everglades National Park to detect contamination in the water. FRIDAY, MAY 14 Review is Launched to Examine Environmental Procedures of Oil and Gas Exploration The Council on Environmental Quality and the Department of the Interior announced a review of the National Environmental Policy Act procedures for the Minerals Management Service (MMS), the bureau in DOI that manages the nation’s natural gas, oil and other mineral resources on the outer continental shelf (OCS). The review will examine the MMS NEPA procedures for OCS oil and gas exploration and development DOD Aircraft Conduct Dispersant Spray Missions The Department of Defense’s Modular Aerial Spray System (MASS) aircraft flew multiple missions—dispensing the same dispersant chemicals being used by BP and federal responders. These systems are capable of covering up to 250 acres per flight, and flights are coordinated with the EPA and the State of Louisiana to ensure all environmental concerns are addressed. Additional Funds are Authorized for Pollution Removal Efforts MMS successfully amended its Pollution Removal Fund Authorization to cover response operations through May 17 with a maximum value of $1 million. This agreement may be amended as the response situation warrants. Teams Continue Shoreline Cleanup and Assessments SCAT teams surveyed 19 miles of Dauphin Island, Ala., and the Jackson County shoreline with minimal tarball findings. An additional five teams were deployed to Bon Secour National Wildlife Refuge (Ala.) to recover tarballs.