FLTC Activities

It is the intention that the Company will in perpetuity extend and make available the seabed monitoring and communication service which provides information about those installations and pipelines that will be allowed by the U.K. government to remain on the seabed after decommissioning. Significant, one-off contributions to FLTC are therefore to be encouraged from owners of such installations and pipelines. FLTC manages the resulting endowment fund. FLTC has formed a wholly owned subsidiary company FLTC Services Limited ("FLTCS") whose role is to promote or supply information systems and devices which enhance safety in connection with oil and gas infrastructure in U.K. waters.

FLTCS' activities include:

• Ensuring provision of digitised data to fishermen about oil and gas related surface and sea bed structures (KIS-UKCS) and maintenance and updating of the relevant databases

• Long-term maintenance of seabed information by monitoring sites where decommissioning residues remain. This monitoring is additional to that required by law to be carried out by any licensee or other party. Such monitoring will be effected on a voluntary basis

• Providing to the U.K. Fishing Fleet around 300 FishSAFE units a device which gives an audible and visual warning when a vessel approaches at fishing speed an oil and gas surface or subsea structure on the UKCS.

FLTC's activities include or may include:

• Collecting decommissioning payments

• Managing the Endowment Fund

• Inter-industry issues management - engagement in inter-industry issues involving the oil and gas and fishing industries for example issues concerned with health and safety or environmental aspects of marine operations, including operational guidelines and practical responses to government concerns

• Research and Development - activities to enhance the safety of fishermen in UK waters by reducing the risk of loss as a result of Legacy Issues, in particular funding studies or other projects.