EXPANDING RESOURCES

Baldwin Hills
COMMUNITY ENERGY DIALOGUE
FIFTH EDITION

Designed to improve the communities understanding of Freeport-McMoRan Oil & Gas philosophy and operations at the Inglewood Oil Field.

www.inglewoodoilfield.com

Baldwin Hills
COMMUNITY ENERGY D I A L O G U E
FIFTH EDITION 2013

Producing California Oil to Meet Californias Energy Needs

Dear Neighbor, This fall marks the fifth year since the adoption of the Baldwin Hills Community Standards District (CSD) by the Los Angeles County Board of Supervisors in 2008. As you may recall, the passage of the CSD made the Inglewood Oil Field the most regulated oil field in California and subject to one of the most comprehensive Environmental Impact Reports (EIR) ever conducted for an oil field project. During the past five years over 60 action items and plans have been prepared pursuant to the terms of the CSD. Numerous ongoing tasks are required on an annual, quarterly, monthly, and daily basis to maintain compliance with the CSD. Plans and reports include but are not limited to the Drilling Plan, Abandoned Well Testing, Ground Movement Surveys, the Environmental Quality Assurance Program, Groundwater Monitoring Reports, and Air Monitoring. The CSD provides for third-party oversight to ensure compliance with its terms. One of the unique requirements of the CSD is the extensive level of public awareness opportunities the regulations created. The Community Advisory Panel (CAP) meets the fourth Thursday of every month at Kenneth Hahn Park. The CAP meeting is open to the public and the public is encouraged to attend. Between the monthly public meetings, the dedicated public website that is maintained for the oil field, and the various publicly issued reports that are routinely issued, the Inglewood Oil Field is the most transparent oil and gas operation in the state. An Operators Report is provided at each CAP meeting that includes updates on drilling activities, summaries on the number of rework rigs on the field (a rework entails activities such as liner replacement and perforations), and any new plan or submittals to Los Angeles County. Lastly, I am pleased to inform you that Plains Exploration & Production Company (PXP) has merged with Freeport McMoRan Copper & Gold Inc. (FCX). As a result of the merger there have been no changes to our local operations at the Inglewood Oil Field. Our new name is Freeport-McMoRan Oil & Gas (FM O&G). FCXs diverse portfolio of mineral assets now includes high-quality oil and gas resources in the United States. To learn more about FCX, please visit www.fcx.com. FM O&G is dedicated to maintaining a strong safety record in the operation of our facilities and to an ongoing cooperative working relationship with our neighbors and the stakeholders in the communities surrounding the Inglewood Oil Field. We encourage interested members of the community to contact Lisa Paillet who is available to attend your neighborhood association and community meeting to discuss operations at the oil field and to answer your questions. Lisas contact information can be found on page 11 of the newsletter or online at www.inglewoodoilfeildcom. Sincerely, Steve Rusch Vice President Environmental Health & Safety and Governmental Affairs

www.inglewoodoilfield.com

Baldwin Hills
COMMUNITY ENERGY D I A L O G U E
FIFTH EDITION 2013

We Appreciate Our Workforce Whose Daily Commitment to Safety, Teamwork and Productivity are Key to our Continued Success
COMPANY Freeport-McMoRan Oil & Gas (FM O&G) is a wholly-owned subsidiary of Freeport-McMoRan Copper & Gold (FCX), a premier U.S. based natural resource company with an industry leading global portfolio of mineral assets, significant oil and gas resources and a growing production profile. FM O&G consists of oil & natural gas assets in North America, including reserves in the Deepwater Gulf of Mexico (GOM), Onshore and Offshore California, Eagle Ford and Haynesville Shale plays, and an industry leading position in the emerging shallow water Ultra-Deep gas trend in the shelf of the GOM and Onshore in South Louisiana. Assets in FM O&Gs principal focus areas include mature properties with long-lived reserves and significant development opportunities as well as newer properties with development and exploration potential. FM O&G produced 5.0 million barrels of oil equivalent (BOE) in June 2013. Additional information about FM O&G can be found on FCXs website at www.fcx.com. ASSET AREAS Los Angeles and San Joaquin Basins Onshore California Santa Maria Basin Offshore California Gulf Coast Region, including Eagle Ford Shale and Haynesville Shale Gulf of Mexico Wind River Basin in the Rocky Mountains

Madden

Haynesville San Joaquin Valley Arroyo Grande Santa Maria Basin Los Angeles Basin Eagle Ford Gulf of Mexico

www.inglewoodoilfield.com

Baldwin Hills
COMMUNITY ENERGY D I A L O G U E
FIFTH EDITION 2013

We Communicate Openly and Transparently with Stakeholders and Communitities to Build Trust

Baldwin Hills Community Standards District Boundary Map

Key
CSD Boundary Active Surface Field Boundary Culver City/LA City/ County Boundary

www.inglewoodoilfield.com

Baldwin Hills
COMMUNITY ENERGY D I A L O G U E
FIFTH EDITION 2013

Producing California Oil to Meet Californias Energy Needs

The following summarizes notable operational activities Freeport-McMoRan Oil & Gas conducted during 2012 and 2013
FM O&G paid more than $11.4 million in taxes to Los Angeles County in 2012. As of June 2013 more

than $6.1 million have been paid to Los Angeles County. 134 well workovers (reworking of wells) were performed in 2012. A workover entails activities such as liner replacement, adding perforations, modifying injection profiles, and routine maintenance activities. The 2012 approved Drilling Plan identified 53 wells, 25 new wells and 28 re-drills. Redrilling means any drilling operation conducted to recomplete an existing well in the same or different oil producing zone where the well is deeper than the initial well depth. FM O&G drilled 4 new wells and 16 re-drills as part of the 2012 drilling program. The 2013 approved drilling plan identified 53 wells, 45 new wells, and 8 re-drills. As of June 2013, 16 wells have been drilled.
4 wells were plugged and abandoned in 2012. As of June 2013 2 wells have been plugged and

abandoned. The geologic zones of interest for the 2012 drilling program ranged at a subsurface depth of between 2200 feet and 8500 feet. In the 2013 drilling program the geologic zones of interest ranged at a subsurface depth of between 2300 feet and 6300 feet. In 2012, the Inglewood Oil Field produced approximately 2,791,000 barrels of oil and 1,431,000 cubic feet of natural gas. As of June 2013, the Inglewood Oil Field has produced approximately 1,356,000 barrels of oil and 671,695 cubic feet of natural gas.

www.inglewoodoilfield.com

Baldwin Hills
COMMUNITY ENERGY D I A L O G U E
FIFTH EDITION 2013

We conduct our activities in a manner that promotes positive and open relationships with community, government and other stakeholders where we operate

2008: CSD Adopted Pre-Drilling Requirements: - Annual Drilling Plan - Drilling Quiet Mode Plan - Air Monitoring Plan - Environmental Quality Assurance Plan

2009: CSD Plan Compliance - Odor Minimization Plan - Emergency Response Plan - Community Alert Notification System (CAN) - Website Established

2010: Drilling Resumed - All Pre Drilling Plans Approved - Accumulative Ground Movement Baseline Established - Fugitive Dust Control Plan Approved - Rention Basin Survey Approved

2008

2009

2010

NOTE: The above timeline is a snapshot of the last five years. We are unable to include all notable accomplishments and Third Party Audits that occurred between 2008 to 2013 due to space restrictions. www.inglewoodoilfield.com

Baldwin Hills
COMMUNITY ENERGY D I A L O G U E
FIFTH EDITION 2013

Producing California Oil to Meet Californias Energy Needs

2011: 1st Year of Drilling Completed - Landscaping Plan Phase 1 (La Brea Avenue) Approved and Installed - Settlement Agreement Reached (Challenge to Adoption of the CSD) - Recycling Plan Approved - Unused & Abandoned Equipment Plan Approved

2012: Inglewood Oil Field Hydraulic Fracturing Study - Evaluated Site Specific Impacts of the Well Completion Technologies. - Independent Peer Reviewer Critiqued and Provided Comments on the Frac Study as Required by the Settlement - Public meetings were held for input on the surveys designs. The findings were reported during the 2012 Annaul CSD Community Meeting - Landscaping Plan Phase 2 (Ladera Crest) Approved and Installed

2013: Five Years of Compliance Under the CSD - 22 Wells and Have Been Plugged & Abandoned (since the inception of the CSD) - Since the Inception of the CSD 101 Wells Drilled - Annual Requirements Include but not Limited toAbandoned Well Testing, Ground Movement Surveys, Community Meetings, etc., - Quarterly Reports Include but not Limited to Ground Water Monitoring Reports, Complaint Logs, Alarm Reports to the Fire Departments, etc.

2011

2012

2013

www.inglewoodoilfield.com

Baldwin Hills
COMMUNITY ENERGY D I A L O G U E
FIFTH EDITION 2013

Producing California Oil to Meet Californias Energy Needs

The following summarizes proposed upcoming work planned in 2014.

To view the Approved 2014 Annual Drilling, Redrilling, Well Abandonment, and Well Pad Restoration Plan in its entirety please visit www.inglewoodoilfield.com.

The CSD allows a maximum of 53 wells annually. The 2014 Drilling Plan proposes 52 new wells and

1 re-drill. The 53 wells are comprised of 27 producers and 26 injectors, of which 1 injector is a re-drill of an existing well. The plan includes using 2 drilling rigs in accordance with the CSD and Settlement Agreement. The geologic zones of interest for the 2014 Plan range at a subsurface depth of between 950 feet and 4,800 feet. This years proposed wells target shallow zone formations. Wells are drilled and completed in accordance with regulations and permit conditions specified by the California Division of Oil and Gas and Geothermal Resources (DOGGR). The Plan identifies16 wells for possible plug and abandonment. Five of these wells fall within 800 feet of developed areas. Since the inception of the CSD, 23 wells have been plugged and abandoned. There are no new drilling pads proposed for construction or any pads considered for abandonment and restoration in the 2014 Drilling Plan. For a well pad to be a candidate for abandonment and restoration, it must meet three criteria. 1. There must be no active wells on the pad. 2. There must be no idle wells on the pad that could be a future candidate for re-drilling or reworking. 3. The pad would not be useful in the future for potential new wells. A survey of the existing pads found that none of the pads meet any of these three criteria.
www.inglewoodoilfield.com

Baldwin Hills
COMMUNITY ENERGY D I A L O G U E
FIFTH EDITION 2013

Landscaping Update
The most visible change Freeport-McMoRan Oil & Gas is making to the oil field involves the implementation of the multi-phase Landscaping Plan. The photographs below show the successful planting of Phase 2 landscaping behind the Lewis Homes in Ladera Crest.

Before: Ladera Crest looking north.

After: Ladera Crest looking north.

Before: Ladera Crest looking northwest.

After: Ladera Crest looking northwest.

Before: Ladera Crest looking northeast.

After: Ladera Crest looking northeast.

www.inglewoodoilfield.com

Baldwin Hills
COMMUNITY ENERGY D I A L O G U E
FIFTH EDITION 2013

Freeport-McMoRan Oil & Gas charitable contributions are geared toward supporting programs that improve the quality of life for citizens in the communities in which we operate

FM O&G proudly sponsored the Science of Biking; an interactive Science, Technology, Engineering and Mathematics (STEM) exhibit experienced by over 400 24 children and adults at the Christmas-in-July event held at Kenneth Hahn Park.

FM O&G employees volunteered their time in support of the Junior Blind of Americas 60th Anniversary and the 2013 Olympics.

FM O&G supports On A Mission (OAM) and LAPDs 2nd Annual Deep Sea Fishing Adventure. OAM is dedicated to helping youth become responsible and productive citizens.

Culver City students interact with the Mobil Oilfield Learning Unit (MOLU). The STEM exhibit has toured across the country, last year making California the tenth state to host the MOLU. FM O&G proudly supports teachers and students through an annual contribution to the Culver City Education Foundation.

www.inglewoodoilfield.com

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Baldwin Hills
COMMUNITY ENERGY D I A L O G U E
FIFTH EDITION 2013

Building and Creating Bridges in Our Communities

Contact Information: Lisa Paillet Ombudsperson lisa_paillet@fmi.com

Please contact Lisa if you have questions regarding this newsletter or any matter related to the oil fields operations. Lisa is available to attend community meetings, special events, and meet with neighbors upon request in an effort to foster and enhance on-going communication between Freeport-McMoRan Oil & Gas and our neighbors.

Freeport-McMoRan Oil & Gas 5640 S. Fairfax Avenue Los Angeles, CA 90056 1-800-766-4108
www.inglewoodoilfield.com

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Freeport-McMoRan Oil & Gas 5640 South Fairfax Avenue Los Angeles, CA 90056

COMMUNITY ENERGY D I A L O G U E

Baldwin Hills

Presorted Standard U.S. Postage PAID Mercury Mailing Systems Inc.

TO:

2013 Baldwin Hills CSD Annual Meeting Tuesday, November 12, 2013, 6:30 pm Knox Presbyterian Church 5840 La Tijera Blvd Los Angeles, CA 90056
www.inglewoodoil eld.com

www.baldwinhillscsd.com
EXPANDING RESOURCES