Scherie :Douglas August, 2009 ,

ExhibirNo_

11 b{
Inc.

wo"lo*ia"EF

CONFIDENTIAL

BP-HZN-217 ?MDL01e28130

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Mincrals Managcmcnt Scrvicc (MMS) 0rganization GeneraiReguJ ations Incidenr Reporting SubpartL)Rcgulations (Drilling) Subpart0 Regulations (Trainins) NTL' s Regui.atory Support Contact Information

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CONFIDENTIAL

BP-HZN-2179MDL01e28131

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MMS Rcgion

'.r La'(e

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y.Qtroll Disl.ri.r {disil

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X6ndAcr"nl

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BP-HZN-217qMDLO e28132 1

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' MMS istrict Officcs D
District Manager

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Drilling

Engineer

,,2:, ,lYorkover, Coupletion! Engineer ,

CONFIDENTIAL

BP-HZN-217?MDL} 1928133

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Majority of MMS regulations for offshore in 30 CFR250 Failure to comply can result in i s s u a n c e o f a n Incidcnt of I'ion-Compliancc(INC) a n d / o r c i v i l p c n a l t y

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BP-HZN-217eMDLo s28134 1

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Mtr{S conductsregular inspections on drilling rigs operating in OCS ensurecompliance to with regrJations and safe operations - Tnspection maybe scheduled u n s c h e d u l e d or - Operatormust provide access to t h e f a c i l i t y a n d helicopter landing site
- Operator must make available all records

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BP-HZN-2171MDL0 e28135 1

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250.154- Identification Signs * Signs must bc visible from thc water linc and air and must include lessee nane, area and block and M0I)U name

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CONFIDENTIAL

BP-HZN-217?MDL01e28136

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2 5 0 .i B 7 - 1 9 0 Incident Reporting - Lessces are rcquircd to rcport safcty ancl environmental incidents to lr{r{S. - A few require immediate notification by phone - Most can be reported b y e W e l 1w i t h i n 1 2 h o u r s * S o m eo n l y n e e d e W e 1 1 e p o r t i n g r $,ithin 15 days * All repnrts to MMS wil l be clone by regula.tor.y staff * Regulatory staff responsible for making the decision to report * See RP Reporting lla.trjx f o r d e t a . "s ( c o p i e s li avai I ab1e)

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CONFIDENTIAL

BP-HZN-217?MDLO s28137 1

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I n c i d e n t s t h a t r e q u i r e i m m e d i a t eo r a l n o t i f i c a t i o n WS (rs soon as situation is stahilized) * A1l fatalities - Includes non-worir related fatalities * Loss of well control * Explosions - Files lasting more than 5 ninutes * Structural * 0il spills danage to a facility 10 barrcls or grcatcr Gxcept shallow vater flows)

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CONFIDENTIAL

B P - H Z N - 2 1 M D L 0e 2 8 1 8 7e 1 3

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Incidents that require an oral or elttell report vithin 12 hours: * 0ccupational injurics medical treatrnent * Shal I ow rcater fI ows that rcquirc cvacuation for - Fires lasting less than 5 minutes * Reportable releases of llrs gas * Collisions that result in property

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d a n a g e> S 2 b , 0 0 0 * Crane or personnel/naterial handlins incidents * Incidents that damage or disable safety systens or equipment (including fire-fighting systems) * Oil spilis )l bbl and (10 bbls (alt spills must be called in to the environmental pager regardless of si ze)

CONFIDENTIAL

BP-HZN-217?MDL01e2813e

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Incidents requiring only a vritten report rithin li days: * Reportable injuries not requiring evacuarion - Natural gas releases that inltiate equipment or process shutdown
- Incidents that resultcd in propcrty or cquipmcnt

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damage >$25,000

CONFIDENTIAL

BP-HZN-2179MDL019281 40

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Crane or personnel,/nateria] handline incident *' Incidcnt involving a failurc of the cranc itself (e. g. boom, cables, winches, ballring) * Other liftins apparatus (e. g. air tuggers, chain pulls) * Rigeing hardwarc (s1ings, shachles, turnbucklcs) - Load (striking personnel, dropping the 1oad, damaging the load, damaging th"_Ig"ift-\

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E-41{
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BP-HZN-217gMDLO 92814 1 1

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Fire incident -' fiJrcrc thcrc is visiblc burning has occurred flamc, ar cvidcnce that * Duration begins when fire is discovered and ends whenit is completely extinguished - Fircs that occurrcd but were n o t w i t n e s s e d c a n bc deemedto haye lasted (5 minutes

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CONFIDENTIAL

BP-HZN-2179MDL01928142

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Injuries that require evacuation * 0ccupational injuries that require the evacuation of the IP from thc facility to shorc or to another offshore facility for the purpose of receiring nedical treatnent - Medical treatment * Managenentand care of a patient to combat disease or a disorder. It does aof include: - V i s i t i n g a p h y s i c i a n s o 1 e 1 yf o r observation or counscling * Conducting diagnostic procedures, such as x-rays and blood tests, includrng the administrat,ion of prescription medications used soLely for diagnostic purposes (eye drops to dilate pupils, crc. / - Providins first aicl

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D o c u m e n t a t i o n- I A D Cr e p o r t s , p i t & t r i p d r i 1 1 s , B O p t e s t s , a p p r o v e dp e r m i t s , e t c . Emcrgcncv ri1ls - cspcciallv if non-English spcaklng d p e r s o n n e l a r e o n b c i i , r r dI n L e n L i s t o s e e i f o r i e n L a l i o n s . are being done in a manner that is understood.

CONFIDENTIAL

14

BP-HZN-2179MDL} 1928143

* Complete list

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of First Aid Treatment

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,,rt.fiUsing a non-prescription medication at nonstrcneth (for mcdicati.ons availablc ,1;c; ryc:cription r i. rn both prescrrption and non-prescriptlon forn, a. reconmendat'i hy a. physicia,n or other on licensed health care professional to use a nonprescription medicati on at prescription strength is considcrcd ncdical trcatncnt) * Administering tetanus inmunizations (other immunizations, such as Hcpatitis B vaccinc or rabies vaccine, are considered medical treatment) * Cleaning, flushing, or soaking wounds on the srrr['acel the skin o

D o c u m e n t a t i o n- I A D Cr e p o r t s , p i t & t r i p tests, approved permits, etc.

dri11s, BOp

Emcrgcncv rills - cspcciallv if non-English spcaking d personnelare on bciard. InLenL is Lo see i.[ orienLaLions are being done in a manner that is unclerstood.

CONFIDENTIAL

15

BP-HZN-2179MDL} 1e28144

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*
Complete List of First Aid Treatmenrs conr. such a,s sutures and staples a1.econiiclerecl medical treatment -1

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BandVqlng woundcoverings such as bandages, Aids, or gauzepads, or using butteifly bandages or Steri-Strips (othe::wound closing dev:ices

Using hot, or cold therapy

- Using.any non-rigid means of support, such as e _ L a s t r ct l a n c l a g e s , . w r a p so r n o n - r - i g i d b a c k b e l t s , ( d e v r c e sw i t h r i s i d s t a y s o r o t h e r s s y s t e m s designed to immobilize parts. of the body are considered rnedical treatment)

CONFIDENTIAL

BP-HZN-217?MDL} 1e28145

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ffiffiffiEh*--^-^^-r an accident victim (e.s. ffiiWffi::?i:::"i"e sl i ngs, neck col lars, hack boa,rds) spl i nts,
Wlt!ffi
f f ffi i--

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-_Complete List of First Aid Treatnenrsconr.

n^i-^ ,^nporary immobilization dcvices whilc

ruffiffi' m^..-. - .: Drilling

of a fingcrnail or tocnail to relieve pressure, or draining flui.d from a blister

- Using eye patches * Removing oreign bodjes f from the eye using onlyirrigation or a cotton swab

CONFIDENTIAL

BP-HZN-217?MDL} 1e28146

C o m p l e t eL i s t < i f F i r s t A i d T r e a t m e n t s c o n t . * Removingsplintcrs or foreign material fron areas other than the eye by irrigation, tweezers, cotton swabs, or other simple means - Using finger guards * Using massages (physical therapy or chiropractic treatment are conside::ed medical treatrnent)

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* Drinking fluids

[ o : r -r e J i e f o j ' h e a t s t r e s s

CONFIDENTIAL

BP-HZN-217?MDLO e28147 1

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Reportable Injuries * hccupational injwies work time, restricted work time is lost that result in cithcr work, or job transfer lost in which - Injured person is restricted or transferred to another job for a per-iod of at least one clay "0ne day" means the person was not able to retur:n to work or resumeall of his or. her normal duties on the day after the injur:y occurred.

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CONFIDENTIAL

BP-HZN-217?MDLO e28148 1

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MusterIncident * Incidcnt that requires operations pcrsonnel to muster for evacuationfor reasonsnot related to weatheror dri I I s - Includesnear nisses (collision avoidance radar,
etc) * Does NOT include false alarms (malfunction of HrS detectnr, etc)

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CONFIDENTIAL

BP-HZN-217eMDLa1e2814e

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I n i t i a l N o t i f i c a t i o n s s h o u l d b e m a d ea c c o r d i n g t o t h e BP d'lncjdent Notificarion, Reportinganrl Investi gat ion Procedure" R e g u l a , t o r yA g e n c yn o t i f i c a . t i o n s w j l I b e m a c l e v b Environment.al and Regulatory personnel Whenin cloubt, not'i fy your Regulatory or HSSEAclvisor.. Y o u r R e g u l a t o r y A d v i s o r w i l l m a k et h e d e c i s i o n w h e t h e r or not to notify MMS.

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CONFIDENTIAL
3

BP-HZN-2179MDL01e28150

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CONFIDENTIAL

BP-HZN-2179MDL01e28151

CONFIDENTIAL

BP-HZN-21TeMDL01e28152

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' Crane incidents

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CONFIDENTIAL

BP-HZN-2179MDLO 928153 1

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Keeping wells under control * 0pcrators nust take nccessary precautions to keco wells under control at all times - Use the best available and safest drilling technology to monitor and evaluate well conditir_rns trt nininize and the potential for the xell to flow or kick - Havea person onsite during drilling operations who represents r:perators' interests - Ensurethat the toolpusher, operator's represcntativc, or a member the drilling crew maintains continuous of surr.eill.ance the rig fioor unless well has been on secured 250.407 -

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CONFIDENTIAL

BP-HZN-2179MDL01e28154

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250.4A2 - Securins a well - When drilline opcrations arc intcrruptcd a downholc safety device (i. e. cenentplug, bridge plug or pa.cker)must he inslall-ed.
Ie:l

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IIIiJ
* 0n floating drilling operations, MMS rnay approve rhe use of blind or blind-shear rams or pipe rams and an i n s i d e B O Pi f t h e r e i s n o t t i m e t o i n s t a l l a clownholesafety clevice or if there are special circumstances. You nust gain approval before unlatching.

CONFIDENTIAL

BP-HZN-217?MDL01 55 e281

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regulatory advisor)

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250.403 - Rig moves must be submitted24 hours prior 1 , om o v i n g n o r o f f a l o c a t i o n ( n o t i f i c a , t i o nf i l e t i h v o

- IISCG requires 48 hour notj

250.444 - The crown block mtrst be checked a,t least once pet" week and after each drill-tine slipping operation * Results must be recorded in driller-' s report

CONFIDENTIAL

BP-HZN-217?MDL01e28156

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250.410-4tB- Application for Permit to Drill (APD) * MIIS approval rcquired prior to bcginningopcrations
A P Di n c l u d e s l o c a t i o n p l a t , c a s i n g c l e s i g n c r j t e r r l a , , prognosis, casing and cementing program, drilling diverter/B0P information, rig information and c e r t i f i c a t i o n s , H 2 Sp l a n i f a p p l i c a b l e , d i r e c t i o n a l plot, drilline fluids program Rcqucsts for dcpartures from thc regulations will attached to the ApD AII cenent volunes and test pressures the APD nust be followed (nininuns) approved in bc

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CONFIDENTIAL

BP-HZN-2179MDL01e28157

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250.420-428 - Casing and cementingprosrans * Minirnum casing,/ccmenting rcquircncnts listed for each string * Before resuning drilling after cementlng casing a satisfactory pressure test nust be held for 30 min - If wellbore opcrations continue for 30 days within casing string run to surface you must caliper or pressuretest the ca.sing a.ndsubm:ithe r-esults to t MIIS

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CONFIDENTIAL

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BP-HZN-217?MDL01e28158

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250.433-34- Diverter systenmust be actuatedat 1ea,st evely 7 days a.nd record tests jn drjl ler' s report 250.440-451- BOP Systems - Must be installed prior to drilling out surface casing * Visually inspec lne rlser e'r.ery days (i 3 i o n s p e r m it )

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CONFIDENTIAL

BP-HZN- ?MDL01e2815e 217

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BOPS1'stemscont - \rlust pressut:c rest BOPsystcn ( t h j s includes the choke manifold, kel1y valves, inside B0P, and dri1lstring safety valve): - W h e ni n s t a l l e d * No nore than evcry 14 days out of each c a s i n g s t r i n g ' o r l i n e r * Before drilling unlcss: 250.44A-451 -

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BOP stack was not removed run casing to RequiredBOP test pressuresfor the next hole section are not greater than the previous test
PTCSSUIC

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CONFIDENTIAL

BP-HZN-217?MDL01 60 e281

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250.440-451 - BOP Systemscont - BOP tcsts consist of (for cach BOpcomponcnt): - Lowpressure test between 200-300psi for 5 min - High pressur-e test per ApDfor b min

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CONFIDENTIAL

BP-HZN-217}MDL} 1928161

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250.440-451 BOPSystems cont * A d d i t i o n a l B O Pr e q u i r e m c n t s i n c l u d c - S t u m pt e s t w i t h w a t e r p r i o r t o installation * Alternate tests between control stations and pocls - Pressrire test hlind or blind slrear rams during stumptests and at a1l casing points - Rlind or: lrlind shea,r.ram est t r e q u r ' r e c la t l e a s t every 30 days - Fr:nction test rams and annr"rlars every 7 days *'l4lellsite leader must sign a n d d a t e B O pt e s t c h a r t s

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CONFIDENTIAL

BP-HZN-217?MDL} 1928162

_oLjhaLrl recorder scale.

appear stable whenviered

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. Ability to detect pressurechange on a chart i s 3 -4 p si /mi n

- Tests are ended when pressure appears stable for b min - 3-4 psiz'nin is the de facta testing stanclard

This was key point in technologyapplicatlon - achieving consensus ith regulators that what is "stahle pressure', w on chart is actually stiil declining 3-{ psi/min, We weren' t changing anything - but agr.eement this point on was critical.

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34

BP-HZN-217aMDLO1 63 e281

' B P d e v e l o p e dd i g i t a l test timeframcs

* More efficient

software to optimize

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and accurate

- Less exposure to high pressures

Additional benefits: Shorter e.xposuretime for personnel w o r k i n g w i t h h i g h p r e s s u r e l i n e s ; L e s s wear a,nd t,ear on BOPand surface equipment;

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35

BP-HZN-217sMDLa1e28164

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Digital algorithrn predicts the pressur-eat which the test would be interpreted as stable a n d e n d e du s i n g a c h a r t ( i . e . d e c l i n e r a t e 3 psi/min)
* Computer predicts if the stable pressure is above or helow the approved test pressirre - If greater, test is positive

is

Our software is extremely conservative. Model generates "predict.ions" a.t one per second. l\{ust have 60 consecutive "predictions" of stable pressure (within the 3 psiT'min decline rate) trnd above the requir.ed test pressure for the lieht to go green. If have bB or bg eood r e s u l L s L h e no n e b a d r e s u l L , m o d e l c o n l i n u e s r u n n _ i n g .

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CONFIDENTIAL

BP-HZN-217 ?MDL01e28165

D i si ta l A l g o ri thmsteps
- Fit an appropriate m a t h e m a t i c a l function to the earl y pressure data * Extrapolate pressure trend and predict srable pressure - Test for confidence

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Good exampleof softrvare running in the backgroundbehind a n a . c t u e Lp r e s s u r e t e s t u s i n g t h e c o n v e n t i o n a l c h a r t l method. F i r s t g r a p h i s s o f L w a r ep r e d , i c L i n ga . , f c i r e c a s L , , ( p u r p l e 1lne) to a stabiTizetl pressure. Forecast macle t g.9 a minutes. second graph is actual result allowing the test to proceed nornrally (using chart method). Stabilized, pressure observed vi;r chart after 56 minutes. Might also be a good place to mention that we ran our Digital BOPsoftware in the backgrounclof conventlonal chart interpretation (1ike the above) fot *Z years.

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BP-HZN-217?MDL01e28166

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MMS approval states the Anatomize software meetsthe intent of the regulations N o ti fi ca ti o n o f intention to use Dieital BOp Nlethod includcd in eachApD C u rre n tl y i n sta l led on 4 BP r igs
S h u t - i n t i m e s r e d u c e da n d s i g n i f i c a n t time/cost savings realized (68-Z

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7 - B hours saved on Horizon

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BP-HZN-217?MDLA 928167 1

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Well control dril]s * Conduct wcckly wc1l-control drills drilling crew * Record in the driller' 250.465 s report 254.462 with cach

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Changesto drilling program - Revisions to the appr-ovecl welI plan (Apll) require MtulS approval * Approval will staff be obtained fron MMS regulatory by

* TA or" PA proc.edures rnust be a.pproved by Mi[S prior to conducting the operation

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BP-HZN-2179MDL01928168

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Subpart 0 WeIl Control Training *"0pcrators must cnsurc cnployccs and conrract personnel engaged in weil control or production sa,fety opera.tions understa,rrdand can properly perform their duti.es - \4MS ay conduct m on-site oral, written or hands-on testing - WfS a.udited BP' s Subpa.r-t p1 0 a.n r.ecentllr a.ncl did not issue any INCs * Very comlrlirnentary of BP plan and irnplementation

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CONFIDENTIAL

BP-HZN-2179MDL01e2816e

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MII{S issues Notices to Lessees(NTLs)as guidance documents to: * Clarify - Supplement - Providemoredetail - 0utline informationrequired for various subnittals * Set forth polt'cy and interpreta.tion of a. regulator-y requirement that provides clear and consjstent approachto conpliance

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CONFIDENTIAL

BP-HZN-217?MDLA e28170 1

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Marine Trash & Debris (NtL tto. 2007-G03) - Must post spccificd placards in promincntplaccs on the rig * Offshore personnelnust complete awareness traininE annually

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CONFIDENTIAL

BP-HZN-217?MDL} 1928171

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0ceanCurrent Monitorins - NTL2009-G02 * Floating M0DL opcrations rcquirc continuousrcaltime current monitoring and data gathering * No longer need to notify I{MS whenthe current monitor is out of service for repairs

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BP-HZN-2179MDL01928172

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2009-G25Shutting in producible welIs during rig moves * Provides guidelincs for rcquesting dcparturcs from the requirement to shut in producing wells when moving a. rig onto a pla,tform nr- skidding between wells on a producing platform 2009-l'17 - Designated Safe leldine

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and Burning Areas

- Describes the process to gain approval for designated safe welding and burning areas on rigs * Dctails rcquirements for posting the approval on thc
rio

CONFIDENTIAL

BP-HZN-217?MDL] 1e28173

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Your Regulatory Advisor 1 5 y O U r Regulatory Staff * Linda 0nstott * Greg lYiltz " Bekki Winfree - Dennis Sustala * Teri Halverson * Anne-Renee l,ap1 ante * Scherie Douglas * Heather Pnwel 1

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CONFIDENTIAL

BP-HZN-217?MDL] 1s28174

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Link to 30 CFRPart 250 * lr1.1-1";ldL-ij!,ra(-r t1."{-L'3lj,;Lgi*UIXU:*-i: jL:rr1r.:+ll_l.rLsid:i: l!liti;n,re5|J.i6ddbii|,,r!:!:i,l..Ji'.1i,ij::l::L:!,.ri',i:h :l, rrw:ri1" 11 I r,!0.,_,i0,t ! -1g_ijt0;].1nL t i Ci ' Link t o N T L ' s
-!
tiE $i

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ltr,ilr:l:e;rJulrr -'-rea::td!r

l . ll].1, 1

Link to CyberRegs jff;,L'1lq. i:ri.:r.i:ilr. .q11.

* 0nce you establish your unique User NalreanclPassword, you will havc full acccss to CybcrRcgstr.

CONFIDENTIAL

BP-HZN-217gMDLO 928175 1

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. F a i l u re to co rn ply could lead to this...

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BP-HZN-217?MDLO e28176 1

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' If you have questions or want more information contact rneat: ' ScherieDouglas Office - x6843 Cell 3 scherie. dougla,s@bp. con

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CONFIDENTIAL

BP-HZN-217?MDL} 1e28177