1. Office of Natural Resources Revenue U.S. Department of the Interior Industry ComplianceAccurate Revenues & DataProfessionalism & Integrity Implementation of the U.S. Extractive Industries Transparency Initiative (USEITI) May 13, 2014

2. Industry ComplianceAccurate Revenues & DataProfessionalism & Integrity ONRR: Who We Are ♦ Mission: To collect, disburse, and verify Federal and Indian energy and other natural resource revenues on behalf of all Americans. ♦ Established within the Office of the Secretary of the Interior under the Assistant Secretary for Policy, Management and Budget on October 1, 2010. ♦ Serves a leadership role in Department-wide collaboration and implementation of key natural resource revenue related initiatives such as the Extractive Industries Transparency Initiative. Dallas Denver Farmington Ft. Berthold Houston Oklahoma City Tulsa Washington D.C. 2

3. Industry ComplianceAccurate Revenues & DataProfessionalism & Integrity Office of Natural Resources Revenue 3

4. Industry ComplianceAccurate Revenues & DataProfessionalism & Integrity 4 ONRR: Cumulative Revenue Disbursement $257.4 Billion Since 1982, ONRR has disbursed over $257 billion in mineral lease revenues from Federal offshore and Federal and Indian onshore lands The annual disbursement to the U.S. Treasury is one of the Federal government’s largest sources of non-tax revenue In FY 2013, ONRR disbursed $14.2 billion

5. Industry ComplianceAccurate Revenues & DataProfessionalism & Integrity ONRR: Management of Revenues (as of 6/24/2013 1 ) 61,533 Total Leases Offshore:6,538* Onshore: 48,650** Indian:6,345*** 32,433 Producing Leases Offshore: 1,432* Onshore: 25,049** Indian: 5,952*** *Administered by BOEM **Administered by BLM ***Administered by BIA 1 ONRR lease data is maintained for the sole purpose of collecting, verifying and disbursing mineral revenues. For official lease data, please refer to the leasing agencies. 5 Oil Natural Gas Coal Carbon Dioxide Copper Geothermal Hot Water Lead Limestone Phosphate Potash Renewables Sand & Gravel Sodium Sulfur Other Products & % of Collections 90% 8% 2% Royalties Rents Bonuses Penalties Other revenues Collect Disburse Funds Audit & Ensure Compliance from over 2,000 payors Federal Onshore Federal Offshore American Indian Land Categories

6. Industry ComplianceAccurate Revenues & DataProfessionalism & Integrity DOI/ONRR: Leading Implementation of USEITI 6 The Extractive Industries Transparency Initiative, or EITI, is a global standard that promotes revenue transparency and accountability in the extractive sector.

7. Industry ComplianceAccurate Revenues & DataProfessionalism & Integrity Increase Transparency & Dissemination Enhance Understanding by all Stakeholders Achieve Better Governance & Accountability Highlight resource revenue to government Ensure fair return on behalf of citizens for the use of public resources Inform public policy dialogue Strengthen investment climate Enhance public financial management Foster participatory governance through collaborative decision-making USEITI: Benefits of Implementation 7 Provide accessible and useful information about public resources Maintain or increase social license to operate Maintain or increase trust & public confidence across sectors

8. Industry ComplianceAccurate Revenues & DataProfessionalism & Integrity USEITI: MSG Representation  Civil Society Project on Government Oversight, Revenue Watch, Transparency International Earthworks, First Peoples Worldwide, North Star Group, Oceana Calvert Investments, Energy Policy Forum, Goldwyn Global Strategies, Research Associates United Mineworkers, United Steelworkers University of California Los Angeles, Virginia Polytechnic Institute  Government Departments of Energy, the Interior, Treasury State Compact Commissions for Mining, Oil and Gas State Government Representatives from California and Wyoming  Industry BP, Chevron, Conoco-Phillips, Exxon-Mobil, Noble Energy, Shell Oil, Ultra Petroleum, Walter Energy Freeport McMoRan Copper & Gold, Newmont Mining, Peabody, Rio Tinto American Petroleum Institute, Council of Petroleum Accountants Societies, Independent Petroleum Association of America, National Mining Association The USEITI Multi-Stakeholder Group has 21 Members and 21 Alternates, representing a wide range of organizations and stakeholder interests: 8

9. Industry ComplianceAccurate Revenues & DataProfessionalism & Integrity EITI RequirementDecisions Reached by MSGPending MSG Decisions Scope – Types of Commodities and Revenues to be included Commodities: Oil; Gas; Coal; Other Leasable Minerals, Non-Fuel Minerals (Hard Rock, Sand & Gravel); Geothermal; Other Renewables (Solar/Wind) Tabled for future discussion (Forestry and Fisheries) Revenue Streams: Rents, Royalties Bonuses and Fees Revenues collected by US Department of Interior (DOI) Federal Corporate Income Taxes to be reported by companies Details of how taxes can be reported, consistent with SEC 1504 and EU law per EITI Standard USEITI: MSG Outcomes to Date - Scope 9

10. Industry ComplianceAccurate Revenues & DataProfessionalism & Integrity EITI RequirementDecisions Reached by MSGPending MSG Decisions Materiality Threshold for Third Party Reconciliation For the initial report, $50 million total annual revenues paid to DOI by parent company, including its subsidiaries. This equals approximately 80% of DOI natural resources revenues. For the second report, $20 million total annual revenues paid to DOI by parent company, including its subsidiaries, which equals approximately 90% of DOI natural resources revenues. USEITI: MSG Outcomes to Date - Materiality 10

11. Industry ComplianceAccurate Revenues & DataProfessionalism & Integrity USEITI: Unilateral Disclosure Disclosure of complete, reliable data, disaggregated by commodity, company, revenue stream, and by project (to the extent allowable by law and by existing parameters of reporting to Interior). 100% of extractive revenues collected by Interior that are determined to be within scope by the MSG, regardless of the materiality threshold. Represents an unprecedented scale of government disclosure. 11

12. Industry ComplianceAccurate Revenues & DataProfessionalism & Integrity USEITI: Publicly Sourced Narrative Will provide easy access to available data available from U.S. government agencies and other authoritative sources. –Gives context and a well-rounded picture of the extractive industries in the U.S. Include information for additional types of natural resources that will not be reconciled under USEITI. Consistent with the goals and standards established by the September 20, 2011, U.S. National Action Plan for the Open Government Partnership. 12

13. Industry ComplianceAccurate Revenues & DataProfessionalism & Integrity USEITI Implementation Timeline April 2014 USEITI MSG Meeting #1 Approve Terms of Reference for the Independent Administrator (IA) June 2014 USEITI MSG Meeting #2 Review Opt-In Process for States & Tribes Review Options for Reporting Taxes, Project Level Data, Accounting Period, & Contextual Narrative September 2014 USEITI MSG Meeting #3 IA on Board MSG Decisions on Reporting Taxes, Project Level Data, Accounting Period, & Contextual Narrative Review Reporting Template Options November 2014 USEITI MSG Meeting #4 Develop 2015 Work Plan to Publish 1 st USEITI Report Review IA’s Draft Inception Report December 2013 U.S. Application Submitted March 2014 U.S. Candidacy Approved December 2014 DOI Online Data Pilot December 2015 Publish 1 st USEITI Report December 2016 Publish 2 nd USEITI Report 2014 USEITI MSG Work Plan 13

14. Industry ComplianceAccurate Revenues & DataProfessionalism & Integrity 14 Questions & Follow Up Jennifer L. Goldblatt Chief of Staff Office of Natural Resources Revenue Jennifer.Goldblatt@onrr.gov Paul A. Mussenden Deputy Assistant Secretary Natural Resources Revenue Management paul_mussenden@ios.doi.gov Gregory J. Gould Director Office of Natural Resources Revenue greg.gould@onrr.gov Additional Contacts: