Bureau Of Ocean And Energy Management (BOEM) Meeting Tuesday, April24, :00PM Page 2

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Offshore Oil and Gas Development: Legal Framework

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REMARKS BY ROBERT MATTHIAS ON BEHALF OF THE CITY OF VIRGINIA BEACH AT THE BUREAU OF OCEAN AND ENERGY MANAGEMENT (BOEM) MEETING IN REFERENCE TO THE PROPOSED DRAFT PROGRAMMATIC ENVIRONMENTAL IMPACT STATEMENT FOR PROPOSED GEOLOGICAL AND GEOPHYSICAL (G&G) ACTIVITIES IN THE MID-ATLANTIC OUTER CONTINENTAL SHELF (OCS) PLANNING AREAS TUESDAY, APRIL 24,2012-1:00 PM HILTON NORFOLK AIRPORT, NORFOLK, VA Ladies and gentleman, thank you for allowing me to speak today. The City of Virginia Beach is committed to energy development off the coast of Virginia. We, therefore, are completely in support of the proposed geological and geophysical studies that are needed before either offshore wind energy can take place or offshore oil and gas development can move forward. The City has been a leader in the development of wind energy off the coast of Virginia. In 2009, Mayor Will Sessoms started an Alternative Energy Task Force (AETF), which provided a report to Council last year. Although it addresses several issues, the report as adopted by Council strongly supports the development of offshore wind energy and offshore oil and gas development. Several examples exist of the City's leadership in developing offshore wind energy. The City is a founder of the Virginia Offshore Wind Coalition, or VOW. We have a City staffer who is a gubernatorial appointee to the Virginia Offshore Wind Development Authority (VOWDA). The City provided $50,000 for an engineering study to analyze the sensibility of constructing a meteorological tower on the Chesapeake Light Tower to investigate the feasibility of that location providing market quality studies on wind availability off the coast of Virginia Beach. We believe that large scale wind development can happen off the coast of Virginia Beach with little to no environmental impact. In fact, when visiting the Chesapeake Light Tower multiple times as we pursued that site as a meteorological tower, we noticed a complete absence of any evidence of large scale bird activity. As for offshore oil and gas

Bureau Of Ocean And Energy Management (BOEM) Meeting Tuesday, April24, 2012-1:00PM Page 2 development, although it will take place no closer than 50 miles off the coast of Virginia Beach, the Council when adopting the Alternative Energy Task Force (AETF) Report, added a caveat that it should be done to the safest extent possible and have no detrimental effect on the operations of the United States Department of Defense (DOD), National Aeronautics and Space Administration (NASA), or Wallops Island, which hopes to develop a growing space exploration and launch site. Again, thank you for the opportunity to testify today. I will provide you a copy of the resolution adopted by Council supporting Mayor Sessoms' Alternative Energy Task Force (AETF) Report.

ALTERNATIVE VERSION 1 A RESOLUTION ADOPTING THE 2010 VIRGINIA 2 BEACH ALTERNATIVE ENERGY TASK FORCE 3 REPORT 4 5 WHEREAS, on April 28, 2009, Mayor William Sessoms created the Mayor's 6 Alternative Energy Task Force and directed the Task Force to:.7 8 1) Analyze the current reality of energy demand in Virginia Beach and 9 explore potential sources of supply to satisfy that demand; 10 11 2) Consider how those possible supply sources might impact our community 12 both economically and environmentally; 13 14 3) Look forward in time to identify areas where supply may not keep pace 15 with demand; 16 17 4) Develop potential options to close that gap as well as to reduce our 18 dependence on foreign sources through identifying future sources which must be 19 environmentally sustainable and independent of foreign sources; and 20 21 5) Ideally and proactively position Virginia Beach to be an active leader in 22 the essential movement toward a more sustainable and intelligent energy future for 23 our nation, Commonwealth and community; and 24 25 WHEREAS, the Task Force conducted a total of nine meetings in pursuit of this 26 goal; and 27 28 WHEREAS, the Task Force has compiled its findings in a report to the City Council, 29 detailing a recommended City energy policy approach, and a supporting series of goals, 30 recommendations and actions to help accomplish this policy. 31 32 NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF 33 VIRGINIA BEACH, VIRGINIA: 34 35 That the City Council herby adopts the 2010 Virginia Beach Alternative Energy Task 36 Force Report, which is attached hereto as Exhibit A and is hereby incorporated by 37 reference. 38 39 BE IT FURTHER RESOLVED BY THE COUNCIL OF THE CITY OF VIRGINIA 40 BEACH, VIRGINIA: 41 42 That the City Manager is hereby directed to undertake those actions that would carry 43 out the goals, recommendation.s and actions set forth in the Task Force Report. 44

45 BE IT FURTHER RESOLVED BY THE COUNCIL OF THE CITY OF VIRGINIA 46 BEACH, VIRGINIA 47 48 That actions on the procedural recommendations contained within the Task Force 49 Report, including the appointment of a City Energy Advisory Committee, pursuing 50 partnerships to accomplish implementing the recommendations in the Report, and policy 51 recommendations related to uranium mining, offshore oil and natural gas drilling, the 52 proposed Dendron Coal Plant in Surry County, Virginia, and light rail shall be pursued as 53 deemed appropriate on a case-by-case basis by the Council. Adopted by the Council of the City of Virginia Beach, Virginia, on the 25th day of January, 2011. APPROVED AS TO LEGAL SUFFICIENCY: City Attorney's Office CA11764 ALT-1 January 24, 2011

-51- Item V-K6. ORDINANCES/RESOLUTIONS ITEM# 60606 (Continued) Voting: 11-0 (By Consent) Council Members Voting Aye: Rita Sweet Belli(fo, Glenn R Davis, William R "Bill" DeSteph, Harry E. Diezel, Robert M Dyer, Barbara M Henley, Vice Mayor Louis R, Jones, Mayor William D. Sessoms, Jr., John E. Uhrin, Rosemary Wilson and James L. Wood Council Members Voting Nay: None Council Members Absent: None. January 25, 2011

-50- Item V-K.6. ORDINANCES/RESOLUTIONS ITEM#60606 Attorney Steve Romine, 999 Waterside Drive, Norfolk, Virginia, 23452, Phone: 376-9468, represented Old Dominion Electric Cooperative. Although disappointed with procedural recommendations in the report encouraging Virginia Beach to take a position in opposition to _the Power Plant, ODEC appreciates the enabling Resolution which confirms the City is not taking a position in opposition to Cyprus Creek. The permitting re Cyprus Creek has been DEFERRED for eighteen (18) to twenty-four (24) months. ODEC does support the report. C. David Hudgins, representing ODEC, accompanied Steve Romine, 4201 Dominion Boulevard, Glen Allen, Virginia, (804) 968-4068/ (804) 314-6863. Robert G. Burnley, represented Wise Energy for Virginia and expressed appreciation to the Mayor and City Council for their leadership on this complicated energy plan. Mr. Burnley believes the ADOPTED Alternative Energy Plan will go a long way to protect the environment a1ui economy. Attorney Ca/e Jaffe, Southern Environmental Law Center, and applaud the Mayor and City Council for ADOPTING the Mayor's 20IO Virginia Beach Alternative Energy Task Force Report. Dorothy Holtz, 1304 Downs Lane, Phone: 460-2440, Member of the Sierra Club, spoke in SUPPORT of the Mayor's 20IO Virginia Beach Alternative Energy Task Force Report. Ann Williams 408 Lynn Shores Drive, Phone: 589-8736, stated implementation of this Coal Plant would be detrimental to the quality of life, health and the economy of the Region. Kristina Salzman, 608 Baljor Court, Phone: 385-4076, chose to move to Virginia Beach for the clean beaches, beautiful landscaping, wonderful neighborhoods and great schools. Ms. Salzman applauded the hard work and hopes the Alternative Energy Task Force Report would be voted upon in its entirety Upon motion by Vice Mayor Jones, seconded by Councilman Dyer, City Council ADOPTED AS REVISED TO INCLUDE LIGHT RAIL, BY CONSENT: Resolution re th'e iojo Virginia Beach Alternative Energy Task Force Report and DIRECTING the City Manager to take the necessary action re the goals and recommendations of the Task Force report January 25, 2011