Our Mission: To prevent offshore seismic testing and drilling for oil and gas off the South Atlantic coast.

November 13, 2017 Peg Howell, Spokesperson for SODA, to NCBIWA

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Peg the “Company Man”

My first rig, Penrod 60

Peg Howell – “Company Man”

Coastal Opposition Continues to Grow

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138 East Coast Municipalities

>1,200 Elected Officials

Alliance representing >41,000 Business Interests

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Atlantic Beach, SC: Passed 9/14/2015 (offshore drilling and seismic blasting)

Beaufort, SC: Passed 2/10/2015 (offshore drilling and seismic blasting)

Briarcliffe Acres, SC: Passed 10/19/2015 (offshore drilling and seismic blasting)

Charleston, SC: Passed 3/24/2015 (offshore drilling and seismic blasting)

Charleston County, SC: Passed 5/5/2015 (offshore drilling and seismic blasting)

Columbia, SC: Passed 5/5/2015 (offshore drilling and seismic blasting)

Edisto Beach, SC: Passed 5/8/2014 (seismic blasting)

Folly Beach, SC: Passed 3/10/15 (offshore drilling and seismic blasting)

Georgetown, SC: Passed 4/16/2015 (offshore drilling and seismic blasting)

Georgetown County, SC: Passed 7/25/2017 (offshore drilling and seismic blasting)

Hilton Head, SC: Voted to send letter to BOEM 3/25/2015 (offshore drilling);

Voted to send letter to SCDHEC 3/19/2015 (seismic blasting)

Horry County, SC: Passed 8/22/2017 (offshore drilling and seismic blasting)

Isle of Palms, SC: Passed 2/17/2015 (offshore drilling and seismic blasting)

James Island, SC: Passed 3/19/2015 (offshore drilling and seismic blasting

Kiawah Island, SC: Passed 5/5/15 (offshore drilling and seismic blasting)

McClellanville, SC: Passed 5/4/2015 (offshore drilling and seismic blasting)

Mt. Pleasant, SC: Passed 5/13/2015 (offshore drilling and seismic blasting)

Myrtle Beach, SC: Passed 8/11/2015 (offshore drilling and seismic blasting)

North Myrtle Beach, SC: Passed 8/17/2015 (offshore drilling)

Pawleys Island, SC: Passed 9/14/2015 (offshore drilling, proclamation)

Port Royal, SC: Passed 2/11/2015 (offshore drilling and seismic blasting)

Rockville, SC: Passed 4/20/2015 (offshore drilling and seismic blasting)

Seabrook Island, SC Mayor and Councilmembers: Voted to send letter 4/28/2015 (Offshore drilling and seismic blasting

Sullivan's Island, SC: Passed 3/17/2015 (offshore drilling and seismic blasting)

Surfside Beach, SC: Passed 9/22/2015 (offshore drilling and seismic blasting)

SC Municipalities & Counties Opposing Offshore Drilling and/or Seismic Airgun Surveys

April 28, 2017: Presidential Executive Order Implementing an America First Offshore Energy Strategy

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Do we need to drill in the Atlantic to be “Energy Dominant?”

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The “Shale Revolution”- Onshore Oil & Gas7

The “Shale Revolution” Brings Abundance8

The “shale revolution”• Since 2008, crude oil

production has increased > 90%

• Since 2005 natural gas production has increased > 50%

• We have 80-100 years natural gas supply

Source: http://www.energytomorrow.org/energy-101/energy-demands/crude-oil-and-natural-gas-production

• Now export both crude oil and natural gas

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The United States has been a net energy importer since 1953, but declining energy imports and growing energy exports make the United States a Net Energy EXPORTER by 2026.

Source: https://www.eia.gov/outlooks/aeo/

Annual Energy Outlook 2017

U.S. Oil and Gas Global Dominance10

Sources: https://www.oilandgas360.com/despite-oil-downturn-u-s-ranks-no-1/

https://www.cnbc.com/2017/07/13/us-become-worlds-largest-natural-gas-exporter.html

The U.S. is:• World’s largest

natural gas producer (overtaking Russia) and is forecast to become a net exporter by 2022

• …and the world’s largest oil producer (overtaking Saudi Arabia).

Where things stand now – Seismic 11

We Oppose Seismic Airgun Surveys12

• The first step before exploratory drilling

• Risk to marine life is not worth the reward

• Airgun blasts can be heardmore than 2500 miles away from their source

• Blasts impair sea mammal feeding, communication, migration and calving

• DOI estimates >130,000 marine mammals will be injured

• Blasts drive away fish

Seismic Airgun Surveys

Expedited Seismic Airgun Blasting Permits13

✓

✓

✓

• 8 Permit Applications▪ 1 approved aerial permit▪ 1 sonic permit▪ 1 3D permit off NC

Offshore South Carolina:

▪ 5 seismic permit applications under NMFS - IHA review

▪ 3 permits approved by SC DHEC

• Results are proprietary for 25+ years

• Only Oil Companies & BOEM receive the results

Unprecedented amount of noise14

▪ Currently 5 seismic permit applications under IHA review

Combine those 5 applications:

▪ > 90,000 miles of seismic lines

▪ > 900 days (roughly 2.5 years) of airgunexplosions every 10-15 seconds, 24 hours per day

▪ > 570,000 individual marine mammal impacts

Seismic Interpretation will NOT “tell you what’s out there”

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▪ Seismic air gun data helps geologists create an image of the subsea rock strata. Seismic interpretation identifies possible structures in which oil/gas may be found. Itdoes NOT definitively locate oil and gas deposits.

▪ 2D seismic interpretation is correct only 15-25% of the time.

▪ 3D seismic is an additional amount of testing. It only improves the odds to ~40% chance of finding oil and/or gas.

▪ To know what’s out there, you must drill.

▪ If seismic air gun testing told oil companies “what’s out there,” they would never drill a dry hole.

http://fuelfix.com/blog/2015/09/28/shells-arctic-oil-well-comes-up-dry/#34370101=0

Shell would not have spent $7 billion in the Arctic on a dry hole!

2D Seismic

3D Seismic

What’s in it for the Carolinas?16

Offshore Drilling Advocates Claim…17

1. New revenues will come to South Carolina via “Revenue-sharing” = $3.7 Billion (cumulative to 2035)

2. Job creation: Offshore development will bring over 35,000 new jobs in South Carolina by 2035

3. The Port of Georgetown can be a primary location for servicing related OCS development. It can be the next “Port Fourchon”

The API/Quest Offshore Report

• Published December 2013• Economics based on $100/bbl oil and

$7/mcf natural gas vs. current prices of $50/bbl and $3/mcf

• Leasing begins in 2018, with 350 leases sold; Production begins in 2026

• 75% of drilling will be in deepwater(current breakeven is ~$90/bbl.)

• 690 wells to be drilled between 2018-2035

• The Atlantic contains very small amounts of estimated oil and gas relative to opportunities in the GOM

No Offshore Revenues to SC

▪ New revenues will come to South Carolina via “Revenue-sharing” = $3.7 Billion (cumulative to 2035)

▪ President Trump has said there will be NO revenue sharing for the Atlantic OCS

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Drilling Advocates Claim THE FACTS

Source: The Economic Benefits of Increasing U.S. Access to Offshore Oil and Natural Gas Resources in the Atlantic, authored by Quest Offshore Resources, December 2013, p.10

SC Economic Impact: Tourism vs. Oil

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Tourism vs. Oil Report examines the SC economic impact

Source: Munson, McLaren, Stickler, Offshore Drilling vs. Tourism: Projected Revenue for South Carolina, Sept. 7, 2015

Projected contributions to SC's Economy from Oil Drilling vs. Tourism Revenuesin Horry, Georgetown, Charleston & Beaufort counties

Oil Rig Explosion Kills 4 in Gulf of MexicoApril 2015

Galveston Bay oil spills are routine -- averages285 spills a year.

Santa Barbara pipeline break oil on 9 miles of beachMay 2015

Santa Barbara 3 million gallons January 1969

Hurricane Katrina9 million gallons oil

100 rigs destroyed450 pipeline breaksAugust 2005

Taylor Platform Destroyed by Ivan Leaking oil since 2004

Exxon Valdez 11 million gallons March 1989

Deepwater Horizon210 million gallons

April 2010

Everywhere They Drill, They Spill

LLOG subsea pipeline672,000 gallons October 2017

Jobs, Jobs, Jobs…?

▪ Offshore development will bring over 35,000 new jobs in South Carolina by 2035

▪ Total jobs numbers are significantly inflated; based on drilling 690 wells

▪ They will not be “local” jobs

▪ Offshore drilling jobs require highly trained and very experienced personnel

▪ Oil field workers are nomads and work on rotational schedules. They will not move to SC and not contribute to the local economy on their time off

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Drilling Advocates Claim THE FACTS

Source: The Economic Benefits of Increasing U.S. Access to Offshore Oil and Natural Gas Resources in the Atlantic, authored by Quest Offshore Resources, December 2013, p.48 and 49

Infrastructure Will Ruin Our Coastline

▪ The Port of Georgetown can be a primary option for servicing related OCS development. We can be the next “Port Fourchon”

▪ Making the Port of Georgetown the next Port Fourchon will create industrialization and harm to tourism, fishing, health, and the productivity of our coastline

▪ Georgetown County has passed a resolution against offshore drilling & seismic airgun surveys

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Drilling Advocates Claim THE FACTS

Port of Georgetown doesn’t want to be the next Port Fourchon, LA

THE FACTS:

▪ Port Fourchon is not a vacation destination

▪ Port Fourchon has been in the making for 50+ years

▪ 1300 acre port - now adding another 4000 acres

▪ 250 oil field-related companies and LOOP (Louisiana Offshore Oil Port) pipeline

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Port Fourchon25

After Hurricane Katrina:

https://youtu.be/e9gLNwcaWDE

What’s in it for the Carolinas??26

▪ It’s a terrible economic decision

▪ The good jobs won’t go to Carolinians

▪ It’s extremely risky to our coastal economy, our health, our children’s futures and our way of life

▪ It’s a FOREVER decision

Why oppose Atlantic offshore oil and gas exploration and development?

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