BP Sustainability Reporting 2010 Gulf of Mexico restoration

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This download of selected pages from our full online Sustainability Reporting 2010 may not provide sufficient information to allow as full an understanding as would reading the entire online Sustainability Reporting 2010 contained within the website. BP Sustainability Review 2010 and the online BP Sustainability Reporting 2010 contain certain forward-looking statements concerning the businesses, operations and strategy of BP. For details see: Cautionary statement at www.bp.com/cautionarystatement BP Sustainability Review 2010 and the online BP Sustainability Report 2010 have been prepared by the management of BP p.l.c.. Ernst & Young have carried out a limited assurance review of the Review and Report. For details see: Ernst & Young assurance statement at www.bp.com/assurancestatement No part of the online Sustainability Reporting 2010 constitutes, or shall be taken to constitute, an invitation or inducement to invest in BP p.l.c. or any other entity and must not be relied upon in any way in connection with any investment decisions.

Deepwater Horizon accident On the evening of April 20, 2010, a gas release and subsequent explosion occurred on the Deepwater Horizon oil rig working on the Macondo exploration well for BP in the Gulf of Mexico

The Deepwater Horizon rig

The fire burned for 36 hours before the rig sank, and hydrocarbons leaked into the Gulf of Mexico for 87 days before the well was closed and sealed. Fundamentally, the accident involved a loss of control over the pressure in the well followed by the failure of the well's blowout preventer, a specialized valve designed to maintain consistent conditions. After the initial explosions, the blowout preventers emergency functions failed to seal the well, allowing the leak to occur. Eleven people died as a result of the accident and others were injured. We deeply regret this loss of life and recognize the tremendous loss suffered by the families, friends and co-workers of those who died.

We regret the damage caused to the environment and livelihoods of those in the communities affected. We are putting in place measures to help ensure it does not happen again. We have acted to take responsibility for the clean-up, to respond swiftly to compensate people affected by the impact of the accident, and to look after the health, safety and welfare of the large number of residents and people who helped respond to the spill. As of 31 December 2010, we had spent $17.7 billion for our response activities. Throughout, we have sought to work closely with government, local residents, our shareholders, employees, the wider industry and the media. We are committed to understanding the causes, impacts and implications of the Deepwater Horizon accident and to learn and act on lessons from it.

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Containing the leak

Discoverer Inspiration arrives to install the capping stack

BP worked with experts from the industry, government and academia to develop and implement efforts to stop the leak, contain the oil and permanently kill the well

Within days of the incident occurring, the US federal government formed a Unified Area Command to manage the response effort and communications. The Unified Command members included BP, the US Coast Guard, the US National Oceanic and Atmospheric Administration, the US Environmental Protection Agency, the US Occupational Safety and Health Administration and many other US federal departments and agencies. BP, working closely with specialists from peer companies, governmental agencies and academia, tackled the leak in multiple, parallel ways. After the accident, teams immediately set to work to stop the leak at the source, plan relief wells and develop a suite of options to stop or contain and recover the flow. Within weeks, we had begun work on the drilling of two relief wells that would permanently stop the leak. We employed multiple techniques to expedite the containment of the leak, including fitting caps on the well, using containment systems that pipe oil to vessels on the surface, and sealing the well through the static kill procedure.

How much oil was spilled?

Before the well was contained in July, a substantial amount of oil spilled into the Gulf of Mexico. Although there are several third-party estimates of the flow rate or total volume of oil spilled from the Deepwater Horizon incident, we believe that no accurate determination can be made or reported until further information is collected and the analysis, such as the condition of the blowout preventer, is completed. Once such determination has been made, we will report on the spill volume as appropriate. While we understand that the exact figure is of interest to many, BPs efforts to address the potential environmental and social impacts have not been limited by the precise volume of the spill.

See the Clean Water Act provision from the BP Annual Report and Form 20-F 2010 for information about the volume used to determine our estimated liabilities. Clean Water Act provision

A timeline of events
20 April Explosion occurs on the Deepwater Horizon 22 April Deepwater Horizon rig sinks 23 April The 11 missing people are declared dead 2 May Drilling begins on a relief well to permanently seal the leaking oil well 8 May Efforts to place a containment dome over the main leak point suspended owing to build-up of hydrates. 16 May Drilling of second, back-up relief well begins. Riser insertion tube tool becomes operational, capturing an estimated 3,000 barrels of oil a day. 29 May Top kill operation to stop oil flow by injecting heavy drilling fluids into the well is deemed unsuccessful. 4 June Lower marine riser package containment cap results in oil and gas being received onboard the Discoverer Enterprise. 12 July Sealing cap to increase containment capacity or potentially shut in the well is in place. 15 July Oil ceases to flow into the Gulf of Mexico. 9 August Pressure tests confirm Macondo well cement operation successful. 16 September The relief well intercepts the Macondo well. 19 September US Coast Guard deems the well kill operations complete and successful. Full response timeline

Ernst & Young observation

We saw that BP's materiality process has been used to prioritise the issues related to Deepwater Horizon to be included in this report. Although this process includes consideration of the importance of issues to stakeholders, some groups may consider that their individual concerns have not been addressed. Others will feel that the coverage in the report does not do justice to the complexity of certain issues.

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Remotely Operated Vehicles

Oceaneering ROV aboard the Transocean Development Driller III

More than 4 million people watched the 24hour a day camera feeds beamed live to bp.com from the remotely operated vehicles (ROVs) working around the leaking well

Armed with high-tech video equipment, the ROVs often described as robot submarines - were a window to BPs operation 5,000 feet deep in the Gulf of Mexico. Not only did these unmanned robots provide the eyes of the operation but also the hands. This fleet of hardy underwater vehicles regularly overcome harsh conditions and low visibility to complete numerous subsea missions from turning bolts to closing valves. ROVs are not a new technology. They have been used in the oil industry for more than 30 years to reach depths to which no human diver could descend. Most ROVs resemble a giant steel box, with some measuring up to 11.5 feet in length, about the size of a small car. Their manipulator arms can pick up tools and some are capable of lifting a tonne weight. These 1m vehicles are deployed in a protective cage which carries them to their subsea location.

Underwater toolboxes
BPs Richard Lynch led the team spearheading attempts to seal the well. He remembers watching the live video feed as the ROVs went to work on connecting pipes that would ultimately make way for the cap that would seal the well. Everyone watched the ROVS take those six bolts off around the joint and believe it or not we had a tool for every one of those bolts, he said. Each tool was specially engineered to be ROV-friendly so the robots could adequately grip every device. Subsea toolboxes were installed, allowing each robot to pick up equipment in the area, maximising the time they could spend on the operations. In 5,000 feet of water, this saved us the time that it would have taken to

get the ROVs back to the surface you have to have the tools available there and then, Lynch said.

ROV pilots
A tether or umbilical links the ROVs ROV to the surface control rooms cabin where the operators or pilots control or fly these highly manoeuvrable machines. According to subsea manager John Hughes, flying isnt the hard part of the role of ROV pilot its the maintenance. Nothing would have happened subsea without these vehicles, so it was key that they were well looked after, which is difficult when working with electronics. ROVs need very smart people to maintain them. They have a lot of electronics and hydraulics and fibre optics for the high-quality video, Hughes said. In a deepwater site like the Gulf of Mexico, its usual to find six ROVs and their operators working from three different vessels. A greater number would carry the risk of the ROVs tethers, which can span 3,000 feet, becoming entangled. But through extensive storyboarding, where every operation was broken down to a sequence of minute movements, a record number of 14 ROVs worked simultaneously around the Macondo well site to complete operations as quickly and as safely - as possible. Lynch says, To people watching the operation, it probably looked like chaos but every move had been well thought out. Nothing was left to chance, everything was designed for a reason and every movement mapped out in advance. Meet the people who operate the remotely operated vehicles

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Response in pictures

See more images on Flickr

BP deployed a team of 10 award-winning professional photographers throughout the Gulf Coast to document the overall response to the Deepwater Horizon incident

Over the course of six months, the photographers captured more than 200,000 images of the people, wildlife and environment impacted by the spill Led by Marc Morrison, the team included photographers whose work has appeared in hundreds of national and international publications, including National Geographic, Newsweek, Time, Life and the New York Times.

Our goal was to tell the story of BPs response, says Morrison. To do that, we worked closely with responders and officials from a variety of state and national agencies across the Gulf Coast. BPs photographers logged thousands of miles in each of the four states impacted by the spill. Along the way, their photos chronicled every aspect of the response: from efforts to stop the leak offshore to clean-up and restoration operations along the coast. Throughout the response, the team uploaded images on a regular basis to bp.com and were picked up by news media in the US and around the world.

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Compensating the people and communities affected

Claims center in Bayou La Batre, Alabama

BP was determined to respond swiftly and fairly to claims from individuals, businesses and government entities

We sought to implement a fair and simple claims process aimed at providing funds as quickly as possible. Most claims were from people or businesses reporting a loss of income or profit as a result of the spill.

Deepwater Horizon Oil Spill Trust - $20-billion fund

BP, in agreement with the US government, set up a $20-billion trust to provide confidence that claims funds would be available. The fund is designed to satisfy claims adjudicated by the Gulf Coast Claims Facility (GCCF), final judgments in litigation and litigation settlements, state and local response costs and claims, and natural resource damages and related costs. During 2010, BP made payments to the trust totaling $5 billion and is committed to making additional payments of $1.25 billion each quarter until the end of 2013. BP has pledged certain Gulf of Mexico assets as collateral for the trust.

Compensating individuals and local businesses

By early May, we had established a claims operation with a toll-free number and the first claims and community outreach offices. In June 2010, with the aim of improving transparency and objectivity, BP and the US government agreed to appoint Kenneth Feinberg to evaluate and manage individual and business claims. Mr Feinberg had administered the September 11th Victim Compensation Fund and other major funds related to incidents. The GCCF, headed by Mr Feinberg, took over responsibility for managing and paying individual and business claims in August 2010. www.gulfcoastclaimsfacility.com

Compensating governmental and other agencies

BP is directly managing claims and funding requests for losses or expenses incurred by states, parishes, counties, Native American tribes and other government entities. These primarily cover costs associated with response and removal activities, increased public services and loss of revenues due to the incident. Government claims

Supporting rig workers

BP funded a $100-million charitable trust to recognize the financial hardship of rig workers unemployed during the US governments moratorium on deepwater drilling. The Rig Worker Assistance Fund is administered through the Gulf Coast Restoration and Protection Foundation. Rig Workers Assistance Fund

BP paid out nearly $400 million in response to more than 150,000 individual and business claims from April to August 23 GCCF paid around $2.78 billion to businesses, real estate brokers and nearly 170,000 claimants BP paid $1.14 billion to federal, state and local governmental entities to cover claims, response and removal costs and payments

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Offshore and onshore clean-up

Approximately 2,500 miles of boom was deployed to contain or absorb the oil

Committed to cleaning up and restoring the affected Gulfs beaches and marshes, BP mounted the largest oil spill response in the history of the offshore industry

From the beginning, BP worked to fight the spill and minimize its impact on the environment by containing, removing or dispersing the oil offshore, and by implementing strategies to protect the shoreline and clean up oil that came ashore. Together, these efforts helped to reduce the amount of oil that reached the shore and environmentally sensitive marsh areas. The response involved the mobilization of approximately 48,000 people, the co-ordination of more than 6,500 vessels and the deployment of approximately 2,500 miles of boom to contain or absorb the oil. BP employees and retirees brought their expertise from all parts of the business, from around the world to the response effort.

Offshore
Local commercial fishermen and vessel owners helped with clean-up and protection activities through the Vessels of Opportunity programme. With their local knowledge of currents and shorelines, they provided surveillance and transport support, as well as assisting with boom and skim operations. In efforts to prevent the oil from reaching shore, we used large-scale offshore skimmers and shallow water equipment to scoop up the oily water. We also conducted controlled burning of oil, where conditions were appropriate. Approximately 265,450 barrels of oil were destroyed through controlled burnings and use of fire boom. We used EPA-approved dispersants to help break down the oil into smaller droplets that could be more easily dispersed through the seawater and degraded by naturally occurring bacteria found in the Gulf of Mexico. About 1.84 million gallons of dispersant were applied, with all applied more than 3 miles from the shoreline.

To address concerns about the effect of oil and dispersants, NOAA and the FDA developed seafood-testing protocols for evidence of the dispersants used in our response effort. To date, none of the seafood tested by the FDA has shown evidence of posing a threat to human health. By October 2010, the FDA had found that "the overwhelming majority of the seafood tested shows no detectable residue, and not one of the samples shows a residue level that would be harmful for humans."

Beach and marshlands

In partnership with state workforce agencies, BP provided training for almost 11,000 individuals across the Gulf Coast states to monitor beaches, perform onshore clean-up duties and to serve as a contingent workforce available to activate for clean-up when and where necessary.

New shoreline cleaning technologies deployed

To help achieve swift and effective cleaning where oil reached shorelines, BP used existing equipment as well as new techniques and equipment developed specifically in response to the accident. For example, we introduced sand sharks, large machines capable of safely removing tar balls and tar mats buried as deep as 18 inches below the sand; these allowed for beach clean-up while minimizing the sand disruption and avoiding the use of chemicals. In areas where large machinery was not appropriate, BP deployed teams of trained workers to manually clean beaches. Additionally, in places where oil encroached on fragile marshlands, BP worked closely with state and federal agencies to assess conditions and develop and implement appropriate clean-up plans to help protect the ecosystem.

BP employees and retirees brought their expertise from all parts of the business, from around the world to the response effort. Approximately 2,500 miles of boom were deployed to contain the oil. About 1.84 million gallons of dispersant were applied, with all applied more than 3 miles from the shoreline.

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Wildlife rescue and rehabilitation

Capturing an oiled bird

BP worked with nationally-recognized wildlife groups to develop specific rescue and rehabilitation programmes for nesting turtles, migratory shore birds and other species

Experts from the US Fish and Wildlife Service, the National Oceanic and Atmospheric Administration, the National Park Service, as well as state agencies, helped BP to identify the most sensitive wildlife habitats and prioritize appropriate spill countermeasures. These measures included booming wildlife refuges, state wildlife management areas and rookeries along the coast, as well as using methods to deter wildlife from entering oiled areas. Within days of the accident, BP established a hotline for the public to be able to report sightings of impacted wildlife. The wildlife reconnaissance and recovery teams goal was to respond as quickly as possible to reach and capture injured animals and take them to the nearest rehabilitation centre.

Rehabilitation efforts
Throughout the response, wildlife rescue and rehabilitation teams worked closely with oil removal and operations teams to prevent and minimize oil reaching sensitive wildlife areas. The teams also worked to take precautions to minimize the impact of oil-removal operations in sensitive wildlife areas. Once captured and transported to rehabilitation centers, injured wildlife were individually tagged and recorded, medically evaluated and assessed by trained wildlife specialists, given appropriate medication, water and food and then cleaned following certified guidelines for each species. Each animal was carefully monitored during the rehabilitation programme. BP worked with a number of wildlife agencies to determine appropriate locations for returning and releasing rehabilitated wildlife along the Gulf Coast.

US Fish & Wildlife Service reported 2,263 birds dead and visibly oiled, 18 turtles dead and visibly oiled, and four mammals dead and visibly oiled 1,246 birds, 397 sea turtles, three mammals and more than 14,000 sea turtle hatchlings cared for and released, as of 31 December 2010 Four bird rehabilitation centers, three bird stabilization centers and seven marine mammal and sea turtle rehabilitation centers were opened in strategic locations along the coast

Working with National Fish and Wildlife Foundation

BP agreed to donate net revenue from oil recovered from the spill to the US National Fish and Wildlife Foundation, a government agency whose mission is to preserve and restore America's native wildlife species and habitats. As of 31 December, we had provided $22 million to the foundation.

Jeff Trandahl Executive Director National Fish and Wildlife Foundation Time was of the essence if we wanted to minimize the effect of the spill on vulnerable species. The Recovered Oil Fund for Wildlife established by BP enabled the NFWF and our partners to put several conservation projects on the ground and realize unprecedented results for wildlife - all within six months.

However, there is more that needs to be done to boost wildlife populations outside of the direct spill area and promote their long-term survival, such as restoring critical oyster beds and increasing fish populations.

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Health and safety in the response effort BP took steps to safeguard the safety and welfare of approximately 48,000 individuals involved in the Gulf of Mexico oil spill response

Working across five states and along a 500-mile stretch of coastline, people were away from home for long periods of time, away from their usual healthcare, and working long hours. At the same time, the nature of response and the need to call on, train and deploy large numbers of people quickly, many of them volunteers, meant health checks, Health advisory sign required to establish and manage pre-existing health conditions, needed to be carried out more rapidly than in normal operating circumstances.

Identifying and managing health risks

BP worked closely with the US Coast Guard, the National Institute for Occupational Safety and Health, the Occupational Safety and Health Administration and other organisations to help manage many of the risks. Immediate measures included the identification of hazards to the responders and strategies to manage and reduce any risks that might be present. For example, BP assembled teams of toxicologists and industrial hygienists to assess risks in the working environment, including risks to human health from the oil itself and the dispersants used, and biological risks associated with the onshore clean-up, such as snake or rodent bites. We established an emergency medical evacuation service, and offered support to workers who might have been at potential risk of fatigue and stress-related conditions and to individuals in the affected communities who sought help with anxiety-related complaints owing to the spills impacts. We also took steps to safeguard food safety and manage the risks of foodrelated illnesses presented by catering for very large numbers of people.

Health and safety record in the response effort

Even with these efforts, the Gulf Coast Restoration Organization reported a total recordable injury frequency (RIF) of 2.86 and a day away from work frequency (DAFWC) of 1.01 in 2010. In comparison, BPs group-wide RIF and DAFWC were 0.61 and 0.193, respectively. Personal safety

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Monitoring health and environmental impacts

Collecting water and air samples near Shell Beach, Louisiana

To help ensure the public health and safety of residents and responders, BP supported comprehensive air and water monitoring programmes from the outset

BP, in co-operation with the Unified Area Command, implemented a comprehensive environmental testing and monitoring program to help guide oil recovery and clean-up efforts, and to assist in understanding any potential health and environmental impacts of the Deepwater Horizon accident.

Environmental sampling during the response

BP, the US Coast Guard, the US Environmental Protection Agency (EPA) and other government agencies tested numerous samples of water and sediments for oil and dispersant, and implemented a comprehensive airquality sampling and monitoring programme. More than 16,000 air samples were taken and analyzed for on-shore community observation, with over 1.6 million analytical results reported. Additionally, more than 851,000 community observation air monitoring readings were taken and reported. For worker protection, more than 338,000 air monitoring readings were taken and reported.

EPA has monitored the air since the early days of the spill, and has found pollution levels that are well below levels of concern for long-term health effects related to the spill. With the well capped and no new oil coming into the Gulf, the Agency expects the monitors to continue to show pollution levels that are well below levels of concern for long-term health effects related to the spill. - US EPA

The sampling and monitoring program used a statistically-based approach, where practical, to determine a representative selection of nearshore and offshore locations. The methods included various physical and chemical ways to test for hydrocarbons in water and sediment, chemical tests for the presence of dispersants, measurements of the oxygen content of the water column, and seafood tissue samples.

New technology deployed

We also deployed new technologies, including wave gliders - satellitecontrolled vehicles which monitor for the presence of any emulsified, dissolved and dispersed oil in water, chlorophyll, coloured, dissolved oxygen matter as well as water quality, marine mammal vocalizations and other key environmental variables. To help ensure the public health and safety of residents and responders, we shared the data and information from the environmental monitoring program with the appropriate state and federal agencies. Sampling results were published on this website and on various government websites.

Long-term impacts
Longer term, the National Institutes of Health is conducting a multi-year study to look at the potential health effects from the oil spill in the Gulf region. The study focuses on worker exposure to oil and dispersant products, and potential physical and mental health consequences. Gulf of Mexico Research Initiative

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Natural Resource Damage Assessment

Member of a NRDA team examines the shores near Bay Jimmy, Louisiana

As part of the US Natural Resource Damage Assessment (NRDA) program, BP is participating in an assessment of natural resource injuries along the Gulf Coast

NRDA is a process in which state, tribal and federal government agencies identify the nature and extent of potential injuries to natural resources resulting from an oil spill or hazardous substance release. BP is currently participating in an assessment of natural resource injuries in the Gulf of Mexico with federal and state trustees, including the National Oceanic and Atmospheric Administration, US Department of Interior as well as trustees for Alabama, Florida, Louisiana, Mississippi and Texas. Each agency acts as the trustee of natural resources which it owns, controls or manages for the benefit of the public. BP is working with scientists and trustee agencies through the NRDA process to identify wildlife and habitats that may have been exposed to oil or dispersants, and to look for evidence of injury.

Understanding impacts on wildlife, recreational uses

To understand how wildlife populations may have been affected by the spill, scientists are studying a range of life, including marine mammals, birds, fish and plants. Teams of experts are also studying the habitats like wetlands and beaches where those animals and plants live, with the goal of returning them to the condition that they would have been in if the Deepwater Horizon incident had never occurred. In addition, experts for BP and the trustee agencies are looking at how recreational uses of the Gulf have been affected so that lost opportunities to enjoy those activities can be addressed through restoration.

Emergency and early restoration plans

The process of gathering data for assessment is expected to continue in 2011. In parallel, scientists and other experts will work with the federal and state trustees to develop emergency and early restoration plans, implement them quickly, and then monitor the work to make sure they are successful. Final restoration plans will be developed when the injury assessments are complete.

2011 engagement and activities

We are implementing a waterfowl habitat creation programme in Mississippi. An emergency restoration plan to prevent or minimize erosion along sensitive shorelines and sea grass restoration and planting are also under consideration. In spring 2011, we are holding meetings in each state to solicit input from the public on potential restoration projects. The trustees meet to receive and review recommendations from state agencies and general public.

Attestation
The information on this page forms part of the information reviewed and reported on by Ernst & Young as part of BP's 2010 sustainability reporting. View Ernst & Young's assurance statement

NRDA findings
Natural resources Habitats

The NRDA process involves conducting studies to gather data and information on natural resources - marine mammals, birds, reptiles, fish, invertebrates, plants, and water quality - across a complete range of impacted habitats, from offshore to inland habitat areas. A number of studies are underway or have produced early results. Those documents will be posted on this site as they are finalized and available, along with study work plans and abstracts. This location on bp.com also will be updated as BP and the trustees undertake new studies. All cooperative reports and studies will be posted and available along with accompanying data. NRDA study data and reports are organized and cross-referenced by Natural Resources and Habitats. back to top

Natural resources
NRDA studies examine the impacts and status of natural resources including marine mammals, birds, reptiles, fish, invertebrates, plants, and water quality.

Marine mammals - Studies examining whales, dolphins, and manatees, from nearshore coastal environments to offshore waters. View all the marine mammals studies

Birds - Studies examining a wide range of birds from secretive marsh birds, colony-nesting birds like herons and egrets, coastal birds such as the gulls and terns, and pelagic birds like shearwaters. View all bird studies

Reptiles - Studies assessing sea turtles such as the loggerhead and Kemps ridley as well as estuarine species like the diamondback terrapin. View all reptiles studies

Fish - Studies of populations of fish including estuarine species like sturgeon and offshore species like the whale shark. View all fish studies

Invertebrates - Studies directed at oysters, crabs, shrimp, corals and plankton from coastal waters to deepwater benthic communities. View all invertebrates studies

Plants - Studies examining range of plant species including salt marsh plants and sea grasses. View all plants studies

Water quality studies - Range of studies examining overall water quality of the Gulf of Mexico, oil fingerprinting and toxicity, and a range of water sampling efforts. View all water quality studies

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Habitats
NRDA studies of habitats are organized in four categories:

Beach and uplands habitats - These range from the high tide line up through dunes to the hind shore. View all beach and uplands habitat studies

Intertidal zones and marsh habitats - These include fresh and saltwater marshes and tidal flats. View all intertidal zones and marsh habitats studies

Nearshore/shallow water habitats - These include sea grass beds, oyster beds, coral reefs and other shallow water environments. View all nearshore/shallow water habitat studies

Offshore/pelagic habitats - These include open water and deep ocean floor environs. View all offshore/pelagic habitats studies

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Gulf of Mexico Research Initiative

Dauphin Island Sea Lab, Alabama

BP has set up the $500-million Gulf of Mexico Research Initiative to study and monitor the long-term effects of the oil spill and its potential impacts on the environment and human health. BP is committed to understanding the long-term impacts of the Deepwater Horizon accident.

This 10-year programme seeks to engage and utilize the expertise of some of the worlds best research scientists to study the following: Spread of the oil and other contaminants and what ultimately happened to them. Environmental effects of the oil spill on Gulf of Mexico ecosystems, and ecosystem recovery. Technology that could help detect and clean up offshore oil spills, and reduce their impact. Potential impact of the oil spill and response on human health To implement the Gulf of Mexico Research Initiative, BP has entered into an agreement with the Gulf of Mexico Alliance, a partnership of the states of Alabama, Florida, Louisiana, Mississippi, and Texas. The alliance has worked for several years on issues such as water quality, habitat conservation, ecosystem integration and coastal community resilience.

Independent, peer-recognized researchers

BP and each of the five Gulf Coast states have appointed scientists with peer-recognized credentials to an independent advisory council to review funding requests and provide research grants. Funding decisions will be made by use of merit review by peer evaluation as set out by the National Science Board. The Gulf of Mexico Alliance will provide the administrative support for this effort. The scientific research will be conducted at academic institutions primarily in the US Gulf Coast states. All Gulf of Mexico Research Initiative-funded research will be conducted independently of BP. Grant recipients are

expected to publish their results in peer-reviewed scientific journals, and there is no requirement for BP to approve any study for publication.

Establishing baseline data

BP awarded grants totalling $40 million to Louisiana State University, the Northern Gulf Institute, the Florida Institute of Oceanography, the Alabama Marine Environmental Sciences Consortium and the National Institutes of Health to enable and support sampling during the incident and high-priority studies of the distribution, composition and ecological interactions of oil and dispersant. These studies, included as part of the Gulf of Mexico Research Initiative, will help establish baseline data as the foundation for subsequent research.

Attestation
The information on this page forms part of the information reviewed and reported on by Ernst & Young as part of BP's 2010 sustainability reporting. View Ernst & Young's assurance statement

Technical reports and documentation BP continues to work closely with local, state and federal agencies and organizations to collect and share information and data generated as part of the Deepwater Horizon response

At the federal level, we are working with the US Environmental Protection Agency, NOAA, US Fish & Wildlife Service, NOAA and others. At the local and state level, we have shared our information and data with the appropriate environmental, public health, wildlife and other agencies and departments.

Waste management
Under the direction of the Unified Area Command, BP developed and implemented a Gulf Wide Recovered Oil/Waste Management Plan. The plan covers oil recovery and waste management activities and procedures to support proper waste classification, handling, staging, storage, manifesting, transportation and disposal/recycling of the waste generated from the spill cleanup activities as well as potential reuse/recycling opportunities. The Gulf Wide Plan is being implemented in accordance with local, state and federal laws and regulations. Waste management plans Waste and recoverable material tracking Waste sampling analysis

Monitoring and sampling data

Health monitoring Coastal / nearshore water and sentiment sampling Daily air monitoring and sampling Water column sampling BP platform water monitoring Additional sampling data and management procedures Additional documents

Natural Resource Damage Assessment study outcomes

The NRDA process involves conducting studies to gather data and information on natural resources -- marine mammals, birds, reptiles, fish, invertebrates, plants, and water quality -- across a complete range of impacted habitats, from offshore to inland habitat areas. NRDA findings

Restoring the economy

Casino Beach in Pensacola, Florida

BP is working to foster economic restoration throughout the Gulf Coast, with special emphasis on two of the regions most impacted industries: tourism and seafood

With beach closures and the closing of fishing waters in the Gulf of Mexico, the Deepwater Horizon incident had a dramatic impact on the economy of the Gulf Coast during the summer and autumn of 2010. Even after the well had been killed and no further oil was reaching shore, the region struggled to change public perceptions of the impact of the spill.

Tourism
Throughout the Gulf Coast, we are providing financial support for state tourism promotion efforts. Within weeks of the accident, we had announced block grants of $70 million to help promote tourism and mitigate the economic impact of the oil spill in Louisiana, Mississippi, Alabama and Florida. In the autumn of 2010, we further increased our support for tourism in the region by committing an additional $47 million in total to the four states affected. Each state is using the tourism funds to develop specific marketing programmes that promote their states key tourism selling points. In Louisiana, for example, the state is using the BP funds to improve awareness of coastal amenities and the states brand as the Sportsmans Paradise by encouraging tourism through charter fishing and nature-based adventures. The funds will also be used to promote tourism in New Orleans and other tourism-related events. Elsewhere along the coast, state and local tourism officials have used BP funds to sponsor concerts and other special events that have attracted thousands of visitors to impacted cities.

Seafood

We are also working with officials in the region to design programs to test and monitor the safety of seafood and to promote Gulf seafood along the coast and around the country. In Louisiana, for example, BP is providing $18 million over a three-year period for testing of oil, dispersants and other spill-related impacts on seafood and is funding a three-year, $13-million fishery-resource monitoring plan to study the effects of the oil spill on the states fisheries resources.

Promoting Gulf seafood

BP is working with state and local organizations to promote Gulf seafood. For example, more than 290 restaurants throughout the Gulf Coast and around the country supported America Night Out for Gulf Seafood in December 2010, serving their favourite seafood dishes and recipes using seafood from the Gulf of Mexico. In Louisiana, BP is providing $30 million over a three-year period to the Louisiana Wildlife and Fisheries Foundation for the marketing of Louisiana gulf seafood. Louisianas Seafood Promotion and Marketing Board will manage the funding. More information on how BP is supporting the restoration of the Gulf economy can be found on our states websites. Alabama Florida Louisiana Mississippi

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Supporting the seafood industry

New Orleans Fish House, Louisiana

The safety of seafood from the Gulf of Mexico is a priority for BP, the US government and each of the affected states along the Gulf Coast

The Gulf Coast is a rich breeding ground for fish, crabs, oysters and shrimp and accounts for more than 1 billion pounds of finfish and shellfish - about 20 percent of the USs total commercial seafood production. The shrimp and oyster supply, in particular, is heavily concentrated in the Gulf, making the seafood industry an important component of the economy throughout the Gulf Coast. Because of the importance of the seafood industry to the Gulf Coast economy, BP supports ongoing seafood monitoring and testing programmes to reassure consumers throughout the US that Gulf seafood is safe.

Closing fishing waters

Throughout the response, BP and the National Oceanic and Atmospheric Administration (NOAA) closely monitored the surface and subsurface movement of petroleum. At its peak in June, about 37%, or 88,522 square miles, of federal Gulf waters were closed by NOAA for commercial and recreational fishing. In some locations state waters were also closed to fishing, to protect the public from exposure to potentially contaminated seafood. Under the protocols developed by state and federal agencies, harvest waters could not re-opened until oil from the spill was no longer present and the seafood samples from the area successfully passed both sensory analysis by trained experts and a chemical analysis to confirm there were no harmful oil residues. As of 1 February 2011, 99.6% of the federal waters in the Gulf of Mexico were open for fishing - with only the 1041 square miles immediately surrounding the Deepwater Horizon wellhead still closed.

Testing for dispersants

To help boost consumer confidence in the safety of seafood being harvested from the Gulf, NOAA and FDA also test for evidence of dispersants. Seafood samples collected in the Gulf have been analyzed for dioctyl sodium sulfosuccinate (DOSS), a major component of the dispersants used in the Gulf. Less than 1% of the samples showed any detectable level of DOSS, and the trace amounts detected were far below any level of health concern. BP will continue to fund seafood-testing programmes in Florida and Louisiana through 2013, and is in discussion with Alabama and Mississippi about doing the same.

Attestation
The information on this page forms part of the information reviewed and reported on by Ernst & Young as part of BP's 2010 sustainability reporting. View Ernst & Young's assurance statement

Supporting oil spill response efforts

Subsea engineer working on the Deepwater Horizon blowout preventer removal operation

BP is committed, in collaboration with our partners and industry peers, to delivering safe operations in the Gulf of Mexico

The lessons we learned throughout the response have wide applicability across the industry and it is BPs hope that our experiences can be used to improve the response to any potential future marine oil spill, anywhere. We are committed to working with the industry and governments to share lessons learned, as well as the new equipment and technology developed in response to this accident. In September 2010, we shared an initial set of lessons learned with the Bureau of Ocean Energy Management, Regulation and Enforcement. Capabilities and lessons learned report

"We have learned and will continue to learn - many lessons from this oil spill. The many investigations of the accident will bring changes to our industry - changes that will improve the safety of deepwater drilling going forward." - Bob Dudley, Group Chief Executive, BP

Working with our peers in the Gulf of Mexico

BP has joined the Marine Well Containment Company, an initiative with ExxonMobil, Shell, ConocoPhillips and Chevron designed to quickly deploy effective equipment in the event of another underwater blowout. The well containment equipment used in the Deepwater Horizon response will preserve existing capability for use by the oil and gas industry in the US Gulf of Mexico while the MWCC member companies build a system that exceeds current response capabilities. We have also offered to make available to the MWCC BP technical personnel with experience from the Deepwater Horizon response.

Our newly-formed Global Deepwater Response Team is charged with sharing the insights and experience gained from the incident with BP staff involved in other deepwater projects as well as with partner companies, regulators and others in various countries where we have offshore operations. We are also participating in the International Association of Oil and Gas Producers Global Incident Response Group which works to facilitate the application of the lessons globally within the industry, focusing on prevention, intervention and response aspects.

Attestation
The information on this page forms part of the information reviewed and reported on by Ernst & Young as part of BP's 2010 sustainability reporting. View Ernst & Young's assurance statement

Deepwater Horizon containment and response BP prepared the Deepwater Horizon Containment and Response: Capabilities and Lessons Learned report for the US Bureau of Ocean Energy Management, Regulation and Enforcement

The report identified four broad lessons from the incident. Collaboration: A broad range of stakeholders came together in the wake of the Deepwater Horizon incident to provide effective solutions and build new capabilities. It would have been extremely difficult for any one company alone to address challenges on the scale of the Deepwater Horizon incident. Systemization: The response to the incident required the development of extensive systems, procedures and organizational capabilities to adapt to changing and unique conditions. The adoption of these systems will ensure the ability to respond to future spills more rapidly at scale with a clear direction as to personnel, resource and organizational needs. Information: Timely and reliable information was essential across both the containment and response operations to achieve better decision-making, ensure safe operations and inform stakeholders and the public. Innovation: The urgency in containing the spill and dealing with its effects resulted in innovations in containment and response capabilities, ranging from incremental enhancements to step changes in technologies and techniques, which have advanced the state of the art and laid the foundation for future refinements as part of an enhanced regime for any type of source-to-shore response. Read the full report (pdf, 5410KB)

Supplemental multimedia material

Top hat installation Hydro-static kill Relief well and ranging TBS

Response video 1: Response overview Response video 2: ICPs at work Response video 3: Wildlife

Response video 4: Vessels of Opportunity Response video 5: SCAT in action Response video 6: Air surveillance Response video 7: Branch offices in action Response video 8: Open water skimming Skimming overview (interactive) Response video 9: Controlled in-situ burning

ROV 1 ROV 2 ROV 3 ROV 4 ROV 5 ROV 6 ROV 7 ROV 8

subsea staging area successful 1st cut of riser riser cutting above BOP diamond blade cutter LMRP cap removal BOP to choke manifold connections bolt and flange removal transition spool installation capping stack installation

Response Response Response Response

video video video video

10: 11: 12: 13:

Dispersants Booming Marsh cleaning Beach cleaning

Claims information

BP is committed to paying all legitimate claims for damages resulting from the Deepwater Horizon incident

Individual and business claims

All claims by individuals and businesses related to the Deepwater Horizon incident are now being processed by the Gulf Coast Claims Facility (GCCF) administered by Ken Feinberg. To file a new claim or check on the status of an existing claim: Individual and business claims - Gulf Coast Claims Facility

Government claims and funding requests

BP has established a dedicated process for managing claims and funding requests for losses and/or expenses incurred by states, parishes, counties, Indian tribes and other government entities and political subdivisions. All government claims and funding requests will be handled by a specialized team and given high priority. BP has made advanced funds available to the States of Alabama, Florida, Louisiana and Mississippi, as well as several local parishes in Louisiana. BP continues to pay government claims consistent with the law and is guided by the relevant statutes and regulations. Government claims

Claims and government payments

Gulf of Mexico oil spill

Public Report - data as of March 17, 2011

Payments Gulf Coast Claims Facility Payments (Individuals & Businesses) 1 Gulf Coast Claims Facility Payments (Fund for Real Estate Brokers and Agents) 1 Claims Paid by BP Prior to August 23rd (Individuals and Businesses) Total Payments to Individuals and Businesses Response and Removal Advances Response and Removal Payments2, 3, 4, 5 Loss of Revenue Increased Public Service Costs Payments to Government for Advances and Claims Payments to Individuals, Businesses, and Governments for Advances and Claims Other Payments6 Total Payments (Includes Advances, Claims, and Other Payments) Trust Payments Non-Trust Payments Approved Additional Government Payments (In Process for Payment) 7 Total Paid or Approved for Payment
1 2

Amount Paid $3,541,767,656 $60,222,090 $395,619,857 $3,997,609,602 $476,640,000 $700,295,614 $13,040,025 $994,994 $1,190,970,633

$5,188,580,235

$256,898,722 $5,445,478,957 $3,805,583,265 $1,639,895,693 $14,827,397 $5,460,306,354

Data provided by GCCF as of 3/17/2011 Includes payments made to Federal government and other government entities. 3 Includes $260 million of the $360 million committed for Louisiana Berm Project. 4 Includes amounts paid prior to August 23rd via Unified Command. 5 Includes government requests paid by BP Claims Process prior to August 23rd. 6 Includes payments for NRDA, Research, Tourism, Behavioral Health, Contributions, and Other Response Payments. 7 Includes $13.2 million pending for fisheries monitoring agreement.

Claims and government payments public report data as of March 17, 2011 (pdf, 52KB)

Detailed information on government claims payments

Below you will find information regarding advances and payments made by BP to government entities due to the Deepwater Horizon incident in the Gulf of Mexico. Under the Oil Pollution Act of 1990 (OPA), types of reimbursable losses from government entities include the following: Response and removal costs Net costs of increased or additional public services Net loss of revenue

BP pays claims consistent with the law and is guided by the relevant statutes and regulations, including the U.S. Coast Guard's guidelines addressing claims compensability and claims handling procedures. State 8KB) State 14KB) State 9KB) State 8KB) of Alabama government claims paid as of March 17, 2011 (pdf, of Florida government claims paid as of March 17, 2011 (pdf, of Louisiana government claims paid as of March 17, 2011 (pdf, of Mississippi government claims paid as of March 17, 2011 (pdf,

Government claims

Government claims and funding requests

BP has established a dedicated process for managing claims and funding requests for losses and/or expenses incurred by states, parishes, counties, Indian Tribes and other government entities and political subdivisions. All government claims and funding requests will be handled by a specialized team and given high priority. BP has made advanced funds available to the States of Alabama, Florida, Louisiana and Mississippi, as well as several local parishes in Louisiana. Government claims form

Pre-approval requirement for 2011 Response & Removal Costs

Effective February 1, 2011, BP will be requiring new pre-approvals for work undertaken due to the incident in the Gulf of Mexico. Gulf Coast Incident Command has sent a letter to political subdivisions and their supporting contractors about the process to incur costs, make commitments or otherwise take action that results in a claim or other expectation of funding or reimbursement by BP for expenses related to the Gulf of Mexico oil spill

Effective February 1, 2011, all pre-approvals granted prior to November 1, 2010 for work have expired and are no longer in effect regardless of whether the preapproval resulted from a purchase order number, a "213," Master Services Agreement or Work Release. Government entities are asked to contact Incident Command to obtain pre-approvals for ongoing activities that may be requested. In addition, any pre-approvals received after November 1, 2010 for response and removal activities will be in effect for 90 days after issuance or an earlier date if that was specified on the pre-approval. Letter from Gulf Coast Incident Command (pdf, 591KB)

Supporting materials for the government claims form can be found here;

Protocol for submission of claims or funding requests by government entities Government claims forms and documentation checklist Documentation process workbook for government claims Government claims documentation examples

Individual and business claims All claims by individuals and businesses related to the Deepwater Horizon incident are now being processed by the Gulf Coast Claims Facility (GCCF) administered by Ken Feinberg

To file a new claim or check on the status of an existing claim contact the Gulf Coast Claims Facility: Gulf Coast Claims Facility

Individual and Business Claims

Please contact the Gulf Coast Claims Facility Online: Contact info: By Email: By telephone: By Regular Mail: www.GulfCoastClaimsFacility.com www.gulfcoastclaimsfacility.com/contact info@gccf-claims.com 1-800-916-4893 (For TTY assistance: 1-866-682-1758) Gulf Coast Claims Facility Kenneth R. Feinberg, Administrator P.O. Box 9658 Dublin, OH 43017-4958 Gulf Coast Claims Facility Kenneth R. Feinberg, Administrator 5151 Blazer Pkwy., Suite A Dublin, OH 43017 1-866-682-1772

By Overnight, Certified or Registered Mail:

By Fax:

Investigating the accident Investigations into the Deepwater Horizon accident will play an important role in understanding its causes, preventing future accidents and improving the safety of deepwater drilling

We are committed to sharing the lessons we are learning with both the energy industry and the wider community. As findings from the external investigations are made public, we will link to them from this website.

Internal investigation
In the immediate aftermath of the explosion, BP launched an investigation, drawing on the expertise of more than 50 technical and other specialists from within BP and the industry. This investigation was led by BPs head of safety and operations, and performed independently from BPs accident response. BP internal investigation

External investigations
Several external investigations into the Gulf of Mexico oil spill are underway, including those by the Deepwater Horizon Joint Investigation, a combined effort of the US Coast Guard Marine Board of Inquiry and the US Department of Interior, Bureau of Offshore Energy Management Regulation and Enforcement the National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling, also known as the Presidential Commission the National Academy of Engineering the US Chemical Safety Board the US Congress the US Department of Justice and the US Securities and Exchange Commission the US Coast Guard

Attestation
The information on this page forms part of the information reviewed and reported on by Ernst & Young as part of BP's 2010 sustainability reporting. View Ernst & Young's assurance statement

BP internal investigation BPs investigation into the Deepwater Horizon accident drew upon the expertise of more than 50 technical and other specialists from within BP and the industry

This investigation was led by BPs head of safety and operations, and performed independently from BPs accident response. The BP investigation concluded that no single cause was responsible for the accident. The investigation instead found that a complex, interlinked series of mechanical failures, human judgment, engineering design, operational implementation and team interface failures, involving several companies including BP, contributed to the accident. The investigation team made 26 recommendations specific to drilling which BP has accepted and is implementing across its worldwide drilling operations. The recommendations include measures to strengthen contractor management, as well as assurance on blowout preventers, well control, pressure-testing for well integrity, emergency systems, cement testing, rig audit and verification, and personnel competence. Download the executive summary (pdf, 3735KB) Download the full investigation report (pdf, 13959KB)

Appendices A, B, F, G, H (pdf, 3634KB) Appendices C, D, E (pdf, 2556KB) Appendices I to AA (ZIP, 49290KB)

See presentation slides (pdf, 1347KB) Watch the video (29 mins)

Implementing the recommendations

Specialists from across BP have developed an integrated action plan for the recommendations, which apply to BP, our partners and our service providers. To confirm the delivery of each action within BP, we are setting up a programme of continuous self-verification and independent auditing by our safety and operational risk function.

The BP internal investigation video is also available for download: Download the video (ZIP, 432MB) Download the audio only version (MP4, 141MB)

Attestation
The information on this page forms part of the information reviewed and reported on by Ernst & Young as part of BP's 2010 sustainability reporting. View Ernst & Young's assurance statement

National Commission

President Obama announces the creation of the National Commission

On May 22, 2010, President Barack Obama announced the creation of the National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling: an independent, nonpartisan entity, directed to provide a thorough analysis and impartial judgment. The President charged the Commission to determine the causes of the disaster, and to improve the countrys ability to respond to spills, and to recommend reforms to make offshore energy production safer.

Released in January 2011, the National Commissions report identified certain failures of management and decision-making within BP and its contractors, as well as regulatory failures, to be contributing factors. The report recommended enhanced government oversight and regulatory frameworks, the creation of an industry-run, private sector entity to improve industry safety standards, the strengthening of environmental safeguards, and co-operation between industry and government toward technical advancement in well-containment and clean-up capabilities. Given the emerging consensus that the Deepwater Horizon accident was the result of multiple causes involving multiple parties, we support the Commissions efforts to strengthen industry-wide safety practices. We are committed to working with government officials and other operators and contractors to identify and implement operational and regulatory changes that will enhance safety practices throughout the oil and gas industry. National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling - Final Report

Attestation
The information on this page forms part of the information reviewed and reported on by Ernst & Young as part of BP's 2010 sustainability reporting. View Ernst & Young's assurance statement

Contacts

General enquires
For all general enquires regarding Gulf Coast recovery and restoration, please contact us on the following number: Phone: 866-448-5816 Lines are open Monday to Friday, 6am to 6pm (CST)

Environment and community

To report oil on the beach, shoreline or other environment or community impacts, please contact the National Response Center at 1-800-424-8802 or 202-267-2675 or online at www.nrc.uscg.mil To report oiled or injured wildlife, call +1 866 557 1401

Press contacts
BP America Press Office: +1 281 366 4463 BP Press Office London: +44 207496 4076

Additional contact information

Investor Relations, call 281-366-4937 Claims, call 1-800-916-4893 (TTY device 1-866-682-1758)

Information from the Unified Command

Twitter: @Restore_TheGulf Facebook: Deepwater Horizon Response Website: www.restorethegulf.gov