MPA/MSRC DISPERSANT PROGRAM

1. MPA/MSRC DISPERSANT PROGRAM Presented to RRT III May 25, 2006 By Don Toenshoff, Jr. Executive Vice President Marine Spill Response Corporation

2. MPA/MSRC DISPERSANT PROGRAM AGENDA • Program Evolution • Program Overview • Program Transition Plan • Service Providers • Closing

3. MPA/MSRC DISPERSANT PROGRAM PROGRAM EVOLUTION • Clean Coastal Waters/EADC (‘96-’05) - AT-802 or AT-502 (“Ag Tractors”) - Coolidge, AZ • MSRC/MIR-G/Airborne Support, Inc. (‘98-’06) • DC4 or DC3 • Houma, LA • MSRC New Program Development • (July 2003- Present) • Transition Period (2006)

4. MPA/MSRC DISPERSANT PROGRAM OVERVIEW • Scope of Services Include: • Small aircraft – “First Strike” Spray Aircraft • Dynamic Aviation, Inc. BE-90A • Home based GOM • Doubles as spotter plane for large aircraft • Functions as observer aircraft • Large Aircraft • International Air Response, Inc. (IAR) C-130A • Home based in Coolidge, AZ • Maintain Dispersant Inventory • Industry “Pooling Scheme” given costs and complexities of inventory logistics • Program Management Services • Manage onsite dispersant operations during a spill • Manage dispersant stockpiles and logistics • Manage dispersant training and exercise program • Support RP in preparing dispersant use request to FOSC and RRT • Provide oil spill observation aircraft and trained spotters and observers

5. MPA/MSRC DISPERSANT PROGRAM OVERVIEW • Aircraft Spray Systems • Built specifically for each aircraft • Include monitor/documentation system • Records locations sprayed, time sprayed, quantity sprayed, etc. • Spray system will be flight tested for dosage, swath width, droplet size and droplet size distribution • Dispersant Stockpiles • Large stockpile (size to be determined) will be located at the main dispersant base (location to be determined) • Smaller stockpiles to be located at or near staging airports • Stockpiles containerized for transport by truck or aircraft • Dispersant transfer system built for each aircraft and will accompany aircraft

6. MPA/MSRC DISPERSANT PROGRAM OVERVIEW • Program intended to provide voluntary coverage to E&P industry in U.S. Gulf of Mexico & California • Primary source of funding • Program will be re-examined after publication of the U.S. Coast Guard Final Rules requiring dispersant capability • Requirement for tank vessels and some MTR Facilities to “ensure by contract” aerial dispersant capability • Anticipate 1st half ‘07 publication of Final Rule • Plus, expected 12-18 month implementation period • Planes will be available for other emergency needs, nationwide within U.S. EEZ

7. MPA/MSRC DISPERSANT PROGRAM TRANSITION PLAN: 2006 • Access to Airborne Support, Inc. aircraft • Based in Houma, LA • Access expires 12/31/06 • Replaced EADC aircraft (Air Tractor based in Coolidge, AZ) with Dynamic Aviation BE-90A on 1/01/06 • BE-90A interim base in Long Beach, CA • BE-90A will relocate to GOM once C-130A is FAA approved for dispersant service • International Air Response C-130A • Based in Coolidge, AZ • scheduled to commence operations summer 2006 • Nationwide capability

8. MPA/MSRC DISPERSANT PROGRAM DYNAMIC AVIATION, INC. • BE-90A to be based in GOM • Presently, Long Beach, CA • BE-90A twin engine aircraft operated with pilot and co-pilot • Serves as spray aircraft (~425 gallons) • Serves as spotter/observer aircraft • Planning Assumption: • Ready to take-off within 4-hours of notification

9. MPA/MSRC DISPERSANT PROGRAMINTERNATIONAL AIR RESPONSE, INC. • C-130A • Home based Coolidge, AZ • (40 miles SE of Phoenix) • Payload ~3,250 gallons • Planning Assumptions: • Ready to take-off within 4-hours • of notification • - Flight time Philadelphia: ~ 8 hrs • - Flight time Norfolk: ~ 8 hrs • - Flight time Atlantic City: ~8 hrs

10. CLOSING: • Thank You for this opportunity to address RRT III • Questions?