SHELL EXPLORATION COMMENT ANALYSIS Plan of Cooperation Meeting

– January 22, 2015 D eering, Alaska

Page 1 of 5 Issues Comments Shell Response Mitigation

Measures

Shell has been in the news lately, are you going to do better this

year. The DoJ brought charges against o ne of

our contractors , Noble Drilling, for

deficiencies and violations in their 2012

activities. Shell has learned from this and learned ways to i m prove including managing our contractors. We have committed to having one of our Shell

mariners on each of our vessels . Also, we improved and upgraded the Discoverer drilling rig , fixin g the issues that caused them to get those fines. N/A

An audience member asked to see the map with the Chukchi

Leases. [Showed them the map on one of our slides] N/A

Are you going to be operating oil spill trainings in the areas near

the communities Yes, we offer oil spill trainings two times a year in the Chukchi coastal villages near our lease site. We also hold one oil spill response training each year in Savoonga, Wales, and Gamb el l. We will be offering

trainin gs in Kotzebue, Deering, and possibly Buckland this year. N/A

Where do the ocean currents go in the Chukchi? Does it flow We have been studying ocean currents for 7 years now. It’s really driven by winds.

Most of the water is heading north. The water can change quickly but we use our knowledge to determine which type of

vessels we use. N/A

The ocean in Kotzebue goes clockwise. If there is a spill up in the Chuck chi, it will flow to Kotzebue sound. There isn’t much

current

, the oil would rush in. In the 7 years we spoke about, we studied

the current in the areas around our Chukchi

lease s . In Kotzebue Sound, we don’t plan on drilling. We are interested in learning N/ASHELL EXPLORATION COMMENT ANALYSIS Plan of Cooperation Meeting

– January 22, 2015 D eering, Alaska

Page 2 of 5 Issues Comments Shell Response Mitigation

Measures

more about the S ound , however . Last year, we bega n a science agreement with the

Northwest A rctic B orough . Shell funds science studies that are directed by the communities through the NWAB.

Since you’re going to be drilling up near Pt. Lay, how long will it take for an oil spill response effort to start ? We have a dedicated oil spill response vessel that is nearby the drilling rigs and can respond to an incident and begin collecting oil within 1 hour. H

How are these boats in rough weather

– barges in the Sound. If there’s a spill, how are they going to react? The size of these vessels can handle rough weather very well. The landing craft is probably the only one that would need to

be harbored in rough weather. N/A

What about ice conditions

– can they handle tha t? We do have several vessels at our Ch ukchi

site that are ice class that can function for ice management; however

, we don’t purposefully break up ice. Our operations are designed to drill in ice free waters. If the Burger site is covered by ice , we won’t

go up to drill

. I

How far from the land in Goodhope Bay do you plan on being? It’s pretty shallow near....you’re going to be too close to the land. About 7 miles off of the coast. This location should be safe because they were designated as a state Potential Place of Refuge . We don’t plan on going any closer

to the land than that

. N/A

That area has potential for crosswinds. If you try to put your anchor down, the currents going to be strong

. Thank you for the information. We will pass this information along to our operations. N/ASHELL EXPLORATION COMMENT ANALYSIS Plan of Cooperation Meeting

– January 22, 2015 D eering, Alaska

Page 3 of 5 Issues Comments Shell Response Mitigation

Measures

Will there be VHF announcements I believe AES hires personnel to manage

the communication center. So there will be

someone hired here in Deering that works at the Communication Center, that the community can go to to find out what

Shell’s vessels are doin g. N/A

When are you going to start recrui ti ng for the PSOs ? We contract with NANA for PSOs from this region . I believe they recruit a little bit later in the spring, I encourage you to

con tact NANA. N/A

How will putting the bearded seal on the endangered species list impact our operations ? Not very much because these mammals are already pr otected, this is why we have

PSO s on our vessels. We will just potentially face more scrutiny

. N/A

If you were to find oil, then you cap it off, how are you going to monitor that cap. And what procedures are you going to do with that cap when there’s ice. Like what happened in Louisiana, it took them so long to stop that cap. Do you got some kind of scenario to

use ? It speaks to the design of our wells. Thes e are exploration wells so we are just drilling

them for the data now. After we drill these wells, we permanently close them with

concrete. N/A

They are designed for very cold water that they won’t fail ? Yes. N/A

What are you going to do about oil spills in ice, how are you going

to get the oil to the mainland ? Recent studies have shown that ice can actually help collect and trap the oil, where it can be more effectively burned or removed by mechanical means. N/A

Years from now, our kids can suffer from an oil spill. What are you going to do if there is an oil spill during complete ice ? We are still studying a situation like this as part of multi

- year joint studies on oil spill recovery in ice in Norwegian waters. The studies are being conduc ted, but we will look into this and get back to you. N/ASHELL EXPLORATION COMMENT ANALYSIS Plan of Cooperation Meeting

– January 22, 2015 D eering, Alaska

Page 4 of 5 Issues Comments Shell Response Mitigation

Measures

How long has S hell been drilling and exploring wells ? We have been in the Arctic since the 60s. We have successfully drilled 5 exploration

wells in the Chukchi Sea and many more

wells in the Beaufort Sea in the 1980s and

1990s. N/A

What about earthquakes ? They haven’t raised any red flags for us.

We have wells in California that has a lot of earthquakes. Our well design takes into account earthquakes. N/A

Who was it who drilled outside of Louisiana , that spilled oil? It was BP. N/A

The people on the north slope are close to where you are drilling.

What I see on the news is they aren’t going to see any money or jobs from your drilling, you’ll provide scholarships as an in

- kind

donation. It’s not a revenue sharing. How does that region benefit? We are in the north slope villages all the time. The majority think that oil and gas and the Inupiaq life/subsistence can coexist. We just conducted a survey that

shows this. We just signed an agreement with the village corporations on the north slope that gives them the option to purchase an interest in our Chukchi leases.

Their shareholders will benefit from

dividends. It also gives them a seat at the

table. N/A

How are we ensurin g that all of these upgrades and rebuilds are

tested on the Noble Discoverer We are under a heavy microscope. That rig will be inspected by the U.S. Coast Guard

and our own internal inspections and

shakedowns. N/A

What about these fines ? Who pays them? S hell did not pay these fines, Noble Drilling will. But, this is Shell’s program so we are responsible for the program as a whole, and we know our reputation is on

the line. N/ASHELL EXPLORATION COMMENT ANALYSIS Plan of Cooperation Meeting

– January 22, 2015 D eering, Alaska

Page 5 of 5 Notes:

*Mitigation Measures are only assigned to applicable comments. “Not applicable” (N/A) is used to designate comments that do not require mitigation measures as a course of action. See Mitigation Measures Index definitions according to assigned letter.

Proposed Mitigation Measures

A

- Communication Plan for avoiding conf licts with subsistence users.

B

- Collaboration and Communication with Whaling Associations
C

- Plan of Cooperation (will work to obtain a CAA)

D

- Will honor Camden Bay blackout dates for Nuiqsut and Kaktovik whaling.

E

- Subsistence Advisors based in Chukchi Sea Villages and Kotzebue

F

- Protected Species Observers
G

- Robust Marine Mammal Monitoring Protocol

H

- OSR support vessels on standby 24/7 near drilling location

I

- Real time Ice and Weather Forecasting

J

- Crew change by helicopter and collaboration on routes to and from shorebase

K

- zero discharge in Camden Bay of the Beaufort Sea: drilling fluids and cuttings after the 26

- in casing; gray and treated black waters; bilge and ballast waters

L

- enhanced blowout prevention and mitigation measures (i.e., second set of b lind shear rams, redundant ROV hot stab panel, prefabricated subsea collection and containment system, and relief well plan with designated relief well drilling unit).