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Gulfs Progress Fact

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Gulf of Mexico Progress of We have made significant progress cleaning the Gulf Restoration shoreline and supporting economic and environmental restoration efforts in the Gulf. We have spent Efforts approximately $26 billion in claims payments and response, clean-up, and restoration costs. No company has done more to respond to an industrial accident. And, based on information from third-party sources, the Gulf is undergoing a robust recovery. Tourism records set in 2011 were broken again in 2012 as visitors from across the country and around the world flocked to the Gulf region; commercial and recreational fishing landings continue to out-pace pre-spill levels; and the environment is returning to its baseline condition.

Economic Restoration Efforts
BP is supporting economic recovery efforts along the Gulf Coast by paying legitimate claims and supporting two of the region’s most vital industries – tourism and seafood. We have also reached settlement agreements with the Plaintiffs’ Steering Committee to resolve the substantial majority of legitimate private economic loss, property damage and medical claims. Compensating the People and Communities Affected
As of Dec. 31, 2013, BP had paid approximately $12.8 billion in claims, advances, settlements and other payments. This includes approximately $11 billion for individual and business claims; $1.5 billion for government claims, advances and settlements; and $329 million for other payments such as tourism promotion, seafood testing and marketing, and behavioral health. The majority of these payments have come from the $20 billion trust BP established in 2010 to pay claims, settlements, natural resource damages and other costs. The trust has been fully funded.

Payments by State

$1.04 Billion

$1.70 Billion

Alabama $1.96 Billion Florida Louisiana $3.90 Billion Mississippi Federal/other states

$4.24 Billion

1/14/14

Tourism The Gulf tourism industry has seen a strong rebound. Many of the tourism records that were broken in 2011 were surpassed again in 2012. BP is supporting Gulf Coast tourism through the payment of $179 million for state-led tourism campaigns and $57 million for non-profit groups and government entities to promote the tourism and seafood industries. In addition, BP launched an advertising campaign that complemented these efforts by promoting tourism across the entire Gulf Coast.
Louisiana:  Tourist spending in New Orleans during 2012 was the highest in history at $6 billion, a $512 million increase over 2011, the previous record year. (Source: New Orleans Convention & Visitors Bureau) More than 9 million people visited New Orleans during 2012, the highest since 2004. (Source: New Orleans Convention & Visitors Bureau) The average Orleans Parish revenue per available room in 2012 was the highest in the past 10 years and exceeded 2009 levels by more than 40%. In all Louisiana Gulf Coast parishes combined, the 2012 revenue per available room was nearly 36% higher than in 2009. (Source: Smith Travel Research) Northwest Florida’s record-setting bed tax collections for 2012 were 35% higher than in 2009 and 14% higher than in 2011, the previous record year. (Source: University of West Florida) In fiscal year 2011-2012, lodging revenue collections on hotel and rental stays in Escambia County totaled $178 million, an 11% increase over the previous year’s record. (Source: Visit Pensacola) Florida had a record 89.3 million visitors in 2012, according to preliminary data from VISIT FLORIDA. The previous record was set in 2011 when 85.9 million visitors came to Florida. (Source: VISIT FLORIDA) Alabama:  Taxable lodging revenue in Gulf Shores and Orange Beach set a new record in 2012, topping by 15% the previous record set during 2011. (Source: Gulf Shores and Orange Beach Convention and Visitor’s Bureau) Revenue per available room and revenue per available condo unit in Gulf Shores and Orange Beach in 2012 was the highest in history and were above 2009 levels by 25% and 31%, respectively. (Source: Gulf Shores and Orange Beach Convention and Visitor’s Bureau) In 2012, taxable retail sales in Gulf Shores, Orange Beach and Fort Morgan were 21% above 2009. (Source: Gulf Shores and Orange Beach Convention and Visitor’s Bureau) The revenue per available room in Mississippi Gulf Coast counties in 2012 was 6% higher than it was in 2009. (Source: Smith Travel Research) Taxable hotel sales in 2012 in coastal counties were 8% higher than 2009. (Source: Mississippi Department of Revenue)









Florida: 

Mississippi: 







Recreational Fishing Recreational fishing, which is an important source of tourism and a significant contributor to the Gulf economy, saw strong numbers in 2011 and 2012.
2012  According to preliminary data from the National Oceanic and Atmospheric Administration (NOAA), recreational fishing landings in the Gulf during 2012 were 3% higher than the annual average from 2007-2009. 2 2011  In 2011, recreational fishing had the best landings by total weight since 2005, 11% higher than the annual average for 2005-2009 based on NOAA data.

Commercial Fishing Based on NOAA data, commercial seafood landings in the Gulf in 2011 and 2012 reached their highest levels since 2002. BP has helped support the seafood industry by paying or committing to pay $82 million to Alabama, Florida, Louisiana and Mississippi for state-led seafood testing and marketing programs.
Menhaden: NOAA commercial landings data indicate that Gulf menhaden landings in 2012 were 23.5% higher than the 2007-2009 average. Shrimp: NOAA data indicate that Gulf shrimp landings (excluding Texas) in 2012 were 6% above 2011 levels and 2.2% below the 2007-2009 average, with some variation from state to state. Oysters: While commercial oyster landings (excluding Texas) in 2012 were 20% below the 2007-2009 average, many believe this was primarily due to flooding, drought conditions and fresh water diversions, which caused a decrease in water salinity. For instance, the US Department of Commerce cited flooding as the cause when it declared a commercial fishery failure for Mississippi’s oyster and blue crab fisheries in September of 2012, and drought as the cause when it declared a fishery resource disaster for West Florida’s oyster fishery in 2013. Blue crab: Volumes of commercial blue crab landings in 2012 (excluding Texas) were 2.9% lower than 20072009 averages. Finfish and other species: NOAA commercial landings indicate that finfish (excluding menhaden) landings in the Gulf (excluding Texas) were 11% above 2007-2009 levels. For other species that constitute the remaining commercial catches in the Gulf, the volume of 2012 landings was 1.4% below the 2007-2009 average.

Environmental Restoration Efforts

BP is working with state and federal Trustees to assess and restore natural resources injured as a result of the accident. BP has paid around $1 billion to date to support the Natural Resource Damage Assessment (NRDA) process and to evaluate potential injuries and restoration options. While detailed analysis and interpretation of NRDA data continue, a number of third-party studies based on responsible science are available, and the observations are encouraging.
Natural Resource Damage Assessment: Since May 2010, more than 200 initial and amended NRDA work plans have been developed by BP and the Trustees to study potential injury to wildlife and habitat, and the recreational use of these resources. The NRDA data will help guide restoration efforts in the Gulf. BP will seek to share data and information collected from the cooperative NRDA studies with stakeholders and members of the public once these have been approved for release by the Trustees. Emergency Restoration: Emergency restoration projects are designed to prevent or reduce additional damage to natural resources. Work has been completed on two emergency restoration projects in support of sea turtles and birds; another project to help prevent and reduce further loss to seagrass concluded in early 2013. 3

Early Environmental Restoration
Through a landmark agreement signed with state and federal Trustees, BP is funding up to $1 billion in early restoration projects to speed the recovery of natural resources in the Gulf that were injured as a result of the accident. To date, BP and the Trustees have agreed on a total of 54 projects representing approximately $698 million, including both ecological and human use (recreational use) projects.

Phase I Projects  Following a public review and comment period, the Trustees approved eight initial projects in a Phase I Early Restoration Plan issued on April 17, 2012. The estimated cost of the projects, including base costs and contingency allotments, is $62 million. Collectively, the projects will restore and enhance wildlife, habitats and the services provided by those habitats, as well as provide additional access for fishing, boating and related recreational uses. The Trustees began implementing the projects in 2012 in Alabama, Florida, Louisiana and Mississippi.

proposed plans – totaling an estimated $627 million – on which BP and the Trustees reached agreement in principle during 2013.  The new projects are located across Texas, Louisiana, Mississippi, Alabama and Florida and include ecological projects that restore habitat and resources, as well as projects that enhance recreational use of natural resources. The ecological projects will include restoration of dune, seagrass and oyster habitats, as well as barrier islands that protect coastal areas from waves and tides, and the creation of living shorelines – made from organic materials – that protect against coastal erosion and provide habitat for wildlife. The recreational use projects are designed to address the temporary loss of use and enjoyment of natural resources during the period when human use was reduced, including the time when some beaches and waters were closed. Although a number of the project locations were not directly injured by the accident, the projects address loss of use by providing residents and visitors with new recreational options, better access to natural resources and a greater opportunity to enjoy them. The public will have an opportunity to review and comment on the Phase III projects. Funding will be provided once the Trustees review and address public comments, and the projects receive final approval.











Phase II Projects  Two additional projects were approved in December 2012 following a public comment period. The projects are designed to improve beach nesting habitat for birds and sea turtles. The estimated cost of the Phase II projects, including base costs and contingency allotments, is $9 million. The projects began in 2013.





Phase III Projects  In December 2013, the Trustees released their Phase III Draft Early Restoration Plan for public review and comment. The plan outlined 44 4

Supporting Long-Term Research In addition to approximately $1 billion that BP has already spent to support the NRDA process, we have committed to pay $500 million over 10 years to support independent research through the Gulf of Mexico Research Initiative (GoMRI). GoMRI has thus far awarded $184 million in grants. The goal of the GoMRI research is to improve society’s ability to understand, respond to and mitigate the potential impacts of oil spills to marine and coastal ecosystems. BP’s funding covers grant awards and administrative costs, and the research is separate and distinct from studies conducted through the NRDA.

Completing the Response

BP has spent more than $14 billion and 70 million personnel hours on response and cleanup activities, and significant progress has been made. Since approving the Shoreline Cleanup Completion Plan in November 2011, the US Coast Guard’s Federal On-Scene Coordinator (FOSC) has declared Removal Actions Deemed Complete -- meaning operational activity has ended -- for 4,339 of the 4,376 shoreline miles in the area of response. In Mississippi, Alabama and Florida, the Coast Guard has ended active cleanup and transitioned these states back to the National Response Center (NRC) reporting system.
 In Louisiana, patrolling and maintenance activities continue on just 17.6 of the 3,192 shoreline miles in the state’s area of response. Cleanup crews regularly patrol these areas and recover residual oil when it is found. Also, assessment teams periodically visit 3 miles of marsh area to monitor natural attenuation. The remaining 16.7 shoreline miles have either met the cleanup standards and are pending final FOSC approval, or in various stages of the inspection process that is conducted to verify that cleanup standards have been achieved.  BP remains committed and prepared to address residual oil – should it appear – even after removal actions are deemed complete. Following longstanding protocols established under the law, the Coast Guard will investigate reports of oil received by the NRC and will direct BP to respond if it determines the oil is from the Macondo well and is actionable. Sightings of possible oil or oil-based material can be reported to the NRC at 1-800-424-8802.





Shoreline Status (as of Jan. 3, 2013)

4 , 3 76 M i l e s G r o u n d - S u r ve ye d
3,275 miles no oil observed
323 miles oil observed but below threshold

1,101 miles some oiling

removal action deemed complete

4,339 miles

778 miles some measure of cleaning 741 miles

are now removal actions deemed complete 20 mi. inspection, periodic monitoring or approval process 17 mi. patrolling and maintenance

5

Shoreline Status by State (in Miles)*
17 20

3,155

LA
3,192 miles

MS
227 miles

AL
238 miles Total Miles Ground-Surveyed

FL
480 miles

Dept. of Interior
240 miles

Removal Actions Deemed complete
*Totals may not add due to rounding

Patrolling and maintenance

Various stages of inspection, periodic monitoring or approval process

Louisiana Deep Cleaning

In September 2012, Hurricane Isaac uncovered residual oil that had been buried when tropical storms in 2010 and 2011 deposited several feet of sand along the shoreline. In many instances, net environmental benefit analysis had indicated that deep cleaning at these sites could do more harm than good. However, after Isaac removed the layers of sand covering the material, clean-up crews were able to remove it without the same degree of potential risk or environmental impact. BP then secured approval to carry out a comprehensive effort to locate and remove other pockets of residual buried oil. Since January 2013, we have collectively dug 38,000 holes and pits across more than 32 million square feet in search of material along segments of shoreline at Elmer’s Island, Fourchon Beach, Grand Isle, Grand Terre I, Grand Terre II, Chaland and West Timbalier. For example, we used augers – drilling devices that can bore holes deep into the sand – to dig holes to depths of 5 to 8 feet in search of material. Of the approximately 16,000 auger holes drilled, just 3 percent of the sites contained oiling levels that required cleanup.

Approximately 16,000 Auger Holes

87% no oil observed
Oiling levels above cleanup standards

3% 10%

Oiling levels below established cleanup standards

6

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