Melt 1 1/2 teaspoons butter in a Dutch oven over medium-low heat. Add shallots to pan, and cook 4 minutes or until shallots are tender, stirring frequently. Increase heat to medium-high. Stir in white wine, water, mussels, and bay leaf; bring to a boil. Cover, reduce heat, and simmer 3 minutes or until shells open. Remove from heat; discard any unopened shells. Divide mussels evenly among 4 serving bowls. Add remaining 1 1/2 teaspoons butter to wine mixture in pan, stirring until melted. Discard bay leaf. Ladle 1/2 cup wine mixture over each serving. Sprinkle evenly with fresh parsley and tarragon; serve with French bread.