Update on the Aftermath of Hurricanes Ivan, Katrina, and Rita The Untold Story

1. Update on the Aftermath of Hurricanes Ivan, Katrina, and RitaThe Untold Story Restoring Trust in Pipeline Safety A Conference for all Stakeholders November 2, 2006 Alex Alvarado

2. GOM Pipeline Infrastructure • 33,900 total miles of pipelines • In 2001 and 2002 MMS approved 2,049 and 2,017 miles respectively-record years

3. Pipelines Approved(Updated October 21, 2006)

4. GOM Production • GOM production to continue to increase during the next decade (deepwater) • GOM provides 30% oil and 22% gas of US supply • Pipeline technology has kept up with increased water depths • World deepest installation & operation is in GOM at 7,570 ft (November 2003)

5. Hurricanes Katrina and Rita Impact on Pipeline Infrastructure

6. Hurricanes Katrina and Rita Impact on Pipeline InfrastructureOctober 23, 2006 • 20,000 miles (60%) of pipelines in GOM waters were within the hurricane force wind corridors • Industry has completed most inspections to determine full damage extent • Time frame extended • Inspections completed by October 6, 2006 • Repairs completed by November 1, 2006 • Monthly inspection and pipeline status reports submitted by industry • Last report due November 10, 2006 • To date 564 pipelines have been reported damaged • 119 have diameter 10” or greater

7. Hurricanes Katrina and Rita Impact on Pipeline Infrastructure • Have not had chance to analyze the updated No. of damaged reports • Of the total 457 reported by April , 2006 • 41% associated with platform damage (leaning or destroyed) • 4% third party impact • 2% had movement > 1000’ • 1% mudslides • 5% exposed • 28% riser damage • 19% unknown/other

8. Pipelines displacement caused by Hurricane Ivan 18” oil pipeline displaced up to 3,000 feet in 27mi span

9. Pipeline displacement caused by Hurricane Rita

10. Hurricanes Katrina and Rita Impact on Pipeline Infrastructure

11. Typhoon – Before Rita

12. Typhoon – After Rita

13. Mars – Before Katrina

14. Mars – After Katrina

15. WD 117 – Before Katrina

16. WD 117 F – After Katrina

18. Water Level Elev: 0’-0” EI-338-A (-)10’-0” Current Point of View Elev: (-) 85’-0” 158’-0” Height: Height: 60’-0” Height: 42’-0” Height: 18’-0” 40’-0” Height: Height: 33’-0” DIVER Mud-Line Level Elev: (-) 253’-0”

19. Hurricanes Katrina and Rita Impact on Pipeline Infrastructure-EI 338

20. Hurricanes Katrina and Rita Impact on Pipeline Infrastructure • New mobile offshore drilling unit (MODU) standards on rigs fitness requirements • API RP 95J Gulf of Mexico Jackup Operations for Hurricane Season-Interim Recommendations, First Edition • MMS NTL No. 2006-G09 Interim Guidelines for Jack-up Drilling Rig Fitness Requirements for the 2006 Hurricane Seasonpublished adopting information on RP • API RP 95F Interim Guidance for GOM Mooring Practice-2006 Hurricane Season to cover floating moored MODU • MMS NTL No.2006-G10 Interim Guidelines for Moored Drilling Rig Fitness Requirements for the 2006 Hurricane Season published adopting information on RP • Must demonstrate the fitness of any drilling rig to be used to conduct operations in the GOM OCS during the 2006 hurricane season

21. Summary • Over all industry is doing a good job in planning, response, and recovery • One fatality • No significant pollution incidents • Hurricane Katrina & Rita most difficult hurricane response and recovery • Repairs still on going and will continue through this hurricane season