1. Standards Governance Update Budget Overview SC Chair Rotation 2010 E&P Summer Standards Conference July 2, 2010 Washington, DC

2. API CSOEM Governance CSOEM reports to the Upstream Committee Upstream Committee is one of five BOD level Committees CSOEM also coordinates with the Global Industry Services Committee, or GISC GISC is a Resource Committee

3. API Governance Structure API Board of Directors Executive Committee Downstream Committee Pipeline Subcommittee Upstream Committee Marine Subcommittee Finance Committee General Membership Committee Political Affairs Committee Climate Change Steering Committee

4. API Resource Committees Federal Relations Committee State Relations Committee Tax Committee Communications Committee Law Committee Economics and Statistics Committee Information Management and Technology Committee Health and Environment Committee Corporate Finance Committee Global Industry Services Committee

6. Upstream Committee Upstream Committee is responsible for API E&P activities Committee is comprised of most senior upstream API member company representatives Chair is G. Luquette, Chevron Committee has been very supportive of standards Upstream Committee met July 1, 2010 1 st Action Item was for staff to work with a subgroup to develop a framing document for comprehensive industry safety initiative 2 nd Action Item was for Upstream Committee to consider CSOEM Chair Rotation

7. Global Industry Services Committee Global Industry Services Committee (GISC) is responsible for fiduciary oversight of API’s non- dues activities Committee met in March and approved business plan for two new international offices API Executive Committee met in June and approved GISC recommendation Offices will be in Dubai and Singapore and will each have a Standards Representative

8. 2011 Proposed Budget 2011 Budget Proposal: $325k for contracted experts $340k for research $177.5k for monogram support $842.5k total – 32% + over 2010 Budget is recommended in August and approved in November at API Annual Meeting

9. ECS Subcommittee Rotation ECS – R. Torgersen, ExxonMobil, 2008 Offshore Structures, SC2, P. O’Connor, BP 2005 P. O’Connor has agreed to serve an additional term Tubular Goods, SC5, J. Powers, ExxonMobil 2007 Valves & Wellhead Equipment, SC6, S. Lewis, ExxonMobil, 2010 Drilling Structures, SC8, R. Urbanowski, Precision Oilfield Drilling Services, 2008 Well Cements, SC10, D. Stiles, ExxonMobil, 2008 Field Production Equipment, SC11, B. Freeman, Chevron, 2009

10. ECS Subcommittee Rotation Drilling Fluids, SC13, P. Scott, ConocoPhillips, 2010 Plastic Tubulars, SC15, A. Wilkes, CP Chem/D. Granderson, Fiberglass Systems, 2010 Drill Through Equipment, SC 16, M. Whitby, Cameron, 2009 Subsea Equipment, J. Bednar, BP, 2001 R. Frazier, ATP Oil & Gas, has been appointed Vice Chair January 2010 Quality, SC18, M. Wright, Shell, 2008 Completion Equipment, SC19, J. Yonker, CEC, 2008 Supply Chain Management, SC20, G. Devlin, Cameron, 2005