California State Lands Commission February 20, 2015

Avon Marine Oil Terminal Location Map Tesoro Avon MOT Suisun Bay Hwy 680 Bridge Carquinez Strait City of Benicia City of Martinez

Avon Marine Oil Terminal Improvements Concrete Wharf Berth #2 Berth #1 Approach Trestle Pipe Rack Berth #3 Berth #4 Approach Trestle Wharf Berth 1 Pipe Trestle (E) Berth 5 Parcel #2 (E) Berth 1 Parcel #1 (P) Berth 1A Parcel #1 (P) Osprey Nesting Platform Area Parcel #3 (E) Approachway Parcel #1 (E) Existing (P) Proposed

PRC General Lease – Industrial Use Commission authorization effective July 26, year term Three renewal options of 10 years each Lease entered holdover status following end of Lease term on December 31, 2009 Application received July 2011 EIR preparation began in 2014

Proposed Lease Terms Term: 30 years beginning January 1, 2015 Authorization: Operation and maintenance of existing facilities Periodic maintenance dredging MOTEMS compliance-related renovations Rent: Base Rent of $302,263 Effective January 1, 2015 Annual rent adjustments using CPI Base Rent adjustments every 10 years by appraisal Insurance: $10 million Performance Deposit: $2 million

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Avon Terminal MOTEMS Renovations west mooring dolphin escape boat and lift Berth 1A (new) emergency/spill response dock Berth 5 (to be removed) Approachway and pipeway Berth 1 (existing)

Notice of Preparation……………………………. Public Scoping Meeting………………………... Public Draft EIR………………………… Public Hearings Held (Martinez)………….. Final EIR Published/Notice of Intent……... Final EIR and Lease Hearing……………. April 2, 2014 April 22, 2014 September 29, 2014 October 20, 2014 January 30, 2015 February 20, CEQA Timeline Proposed MOTEMS Compliance Timeframe Proposed Project Start..……………………. In-Water Work Window (Biological).… Project Completion Goal…….………………. 2 nd Quarter 2015 August to November By end of 2017

1) Ballast Water Discharge  Water Quality; and  Biological Resources. 2) Oil Spills  Operational Safety/Risk of Accidents;  Biological Resources;  Water Quality;  Land Use and Recreation; and  Visual Resources, Light and Glare. 9 Potentially Significant Impacts Identified in the EIR

10 Mitigation Measures To Reduce Impacts Related to Ballast Water Discharge: Adherence with ballast water regulations in the California Marine Invasive Species Act; and All vessels must submit reporting forms to the CSLC’s Marine Facilities Division.

To Reduce Impacts Related to Oil Spills: Conduct regular inspection, maintenance and upgrades as required by the Marine Oil Terminal Engineering and Maintenance Standards (MOTEMS); Improve emergency response practices; and Mitigation Measures (cont.)

Remotely operated quick release mooring systems Mitigation – Install Safety Technologies

Vessel line tension monitoring 13 Mitigation – Install Safety Technologies (cont.)

Allision Avoidance Systems: laser systems to measure the angle and approach velocity of incoming vessels and the surge and sway of vessels at berth Mitigation – Install Safety Technologies (cont.)

1) Certify the Environmental Impact Report. 2) Adopt the:  Mitigation Monitoring Program;  CEQA Findings; and  Statement of Overriding Considerations. 3) Authorize issuance of the Lease as presented in Calendar Item Recommended Commission Actions