C A S T E X O F F S H O R E , I N C . 333 Clay Street. Suite 2900-- Houston TX 77002 281/447-8601 - FAX 281-447-1009

February 14, 2019

U.S. Department of the Interior Bureau of Safety and Environmental Enforcement Gulf of Mexico OCS Region 1201 Elmwood Park Boulevard New Orleans, Louisiana 70123-2394

Attention: Angie Gobert Chief, Supervisory Petroleum Engineer Pipeline Section (GE 1035A)

Subject: Proposed Pipeline Repair Request - Segment No. 10771 / ROW OCS-G 15674 4" Oil PipeUne: Vermilion Block 252 "A" to Vermilion Block 249 "SSTI" OCS Federal Waters, Gulf of Mexico, Offshore, Louisiana

Dear Ms. Gobert:

Castex Offshore, Inc. (Castex) is hereby requesting approval for the proposed pipeline repair in accordance with 30 CFR 250.1008(e) for the above referenced pipeline segment.

In support of our request, please find the following documents for your review: • Pay.Gov Receipt • NRC Report #1237490 • Proposed Pipeline Repair Procedure • Photo of Riser leak • SSTI Drawing

Should you have any questions or require additional information, please contact our Regulatory Representative, Natalie Schumann at (281) 878-0042 or via email at nschumannw castexener^\ .com.

Sincerely,

Dean Rayburn Vice President

Enclosures

DR:nns

Repair procedures are hereby accepted. Departure is hereby approved pursuant to 30 CFR 250.141. Date: \<\/\<] _

Cfoc) Bryan A. Domangue" Acting RegionaLSupervisor Bureau of Safety and Environmental Enforcement

Schumann, Natalie

From: Sent: To: Subject:

notification@pay.gov Thursday, February 14, 2019 9:12 AM Schumann, Natalie Pay.gov Payment Confirmation: BSEE Pipeline Repair Notification - BX

An official email ofthe United States government

Your payment has been submitted to Pay.gov and the details are beiow. If you have any questions regarding this payment, please contact Brenda Dickerson at (703) 787-1617 or BseeFinanceAccountsReceivable@bsee.gov.

Application Name: BSEE Pipeline Repair Notification - BX Pay.gov Tracking ID: 26FDKS18 Agency Tracking ID: 75679811852 Transaction Type: Sale

Transaction Date: 02/14/2019 10:12:22 AM EST Account Holder Name: Ashley Green Transaction Amount: $388.00 Card Type: Visa

Card Number:**** ******** 1519

Region: Gulf of Mexico Contact: Ashley Green 281-878-0042 Company Name/No: Castex Offshore, Inc., 02970 Pipeline Segment No: 10771 Lease Number(s): 05431,06678 Originating Area/Block: Vermilion VR, 252 Terminating Area/Block: Vermilion VR, 249

THIS IS AN AUTOMATED MESSAGE. PLEASE DO NOT REPLY

Pay.gov is a program ofthe U.S. Department of the Treasury, Bureau ofthe Fiscal Service

Facility Incident Report • Drill 03 Actuallncident : Incident Name Castex Offshore - Vermilion 252 A | NRC Number 1237490

Name: Ethan Miller

Position:

Company: Castex Offshore

Name; Ethan Miller

Phone; 832 462 6186 Fax: Phone: 832 462 6186 Fax

Company: Castex Offshore Notified: \ & Not Notified • Notified

Email: vr252a@castexemgey.com

Address; 333 Clay Street, Suite 2900

Email: vr252a@castexemgey.com

Address: 333 Clay Street, Suite 2900

City: Houston State Texas City. Houston State: Texas

Zip: 77002 Country:United States of America Zip; 77002 Country: United States of America

Incident date: 02/12/2019 13:30 Time Zone; (GMT-06:00) Central Time (US & Canada)

Incident Reported to Ql/C; 02/12/2019 14:07

Tune Zone (GMT-06:00) Central Time (US & Canada)

Area Name: Vermilion Block: 252 Area Abv#: VR

Facility Type; E & P Platform Facility A OCSG# 5431

Latitude: 28° 32' 38.3" N

Nearest City: Intercoastal City, LA

Longitude: 92 ; 11 ,24 8"W

Miles To City; 75.00 Miles to shore: 75.00

Incident Type:

Product Release

Incident Crew found a leak on oil sales pipeline. Approximately half of a gallon of crude oil went into the water. Description:

Ma ler ia ls Amt Discharged; Quantity; 0.5 gallon(s) Material Discharged; Crude Oils API Gravity; 36.5

Body of Water Affected Gulf of Mexico

Ground Water Affected: No Yes Water Inlake Affected No

Spill Size. Length 150 Feet Width: 60 Feet

Slick Size. Estimated percentage of area covered by slick: 90 %

Spill Source: Source secured dale and time; or Date 02/12/2019 Time 13 35

Source continuous-estimated rate Rate: each

Color of slick Appearance percentage: barely visible 60 % silvery 4 0 % slight color

brightly colored dull dark

Weather Air Temp: 58 "F Water Temp:

Ceiling: Visibility; 8

Wind Dir: N 'Heading Wind Velocity; 20 mph

Seas. 8 Feet High Tide Time; 00:00

Current Dir: S Current Speed: 3 knots

R e s p o n s e Actions taken to Shut in the platform and pipeline, and sealed the leak. correct/ mitigate incident . , , — ! Injuries: 0 Fatalities:0

j Evacuated: [£] No Yes i

. p ^ Q ® 02/12/2019 14:49 Page 1 of 2 WHT 1 O'BRIEN Generated by Witt O'Brion 's

Damage. No Yes

Facility Incident Report

Captain's Name:

Captain's Address.

^ ^ ^ ^ ^- i Vessel Name-

Vessel Owner-

Captain's Phone. Fax.

Call Sign: Card Number:

Agent.

Remarks;

Cody Schexnaider

Justin Popoff

Justin Popoff

Reported to (name)

Sterling Vaughan

Cody Schexnaider

Reported to (name)

Threatl

Reported to (Position) Q|

Agency/Organization

National Response center

Flag.

Update 201.2 Time

0 14:26 02/12/2019

1 4 : 1 7 02712^201?

Assigned* T i m e

1237490 14.37 02/12/2019

P R O 02/12/2019 14:49 Page 2 of 2

Castex Offshore, Inc.

Segment 10771 - Proposed Riser Repair Procedure

Segment 10771 Details

Pipeline: 4-1/2" x 0.337" w.t (4" sch 80) Originating Location: Vermilion 252A - Water depth 155' Receiving Location: VR 249 8" SSTI Crimson Gulf SN 15585 - Water depth 150' Service: Oil - MAOP 1440 psi Length: 26,126' Volume: 371 bbls

A pinhole leak in the 4" oil pipeline has been observed at thc VR 252 A Platform. The leak is located at approximately the (+)10, elevation behind a standoff riser clamp. All of the repair is planned to take place above water. The proposed procedure provides for cutting the riser pipe below thc existing leak and subsequently welding on a new flange to the riser for use in the installation of a replacement pipe section in the riser. Please see the procedure below and attachments for more detail.

Repair Procedure

Note: See Attachments A and B detailing photos of the riser leak and a SSTI drawing with valve identification.

1) VR 252A structure shall confirm that the departing 4" oil Segment 10771 pipeline is shut-in, blown down to "zero" pressure and isolated from all pressure sources.

2) VR 252A will displace riser with approximately 40 bbls of water

3) Mobilize a DSV (Dive Support Vessel) to the 4" Segment 10771 SSTI to thc 8" Segment 15585 in VR 249.

4) Divers will locate the 8" x 4" hot tap and expose the SSTI for identification ofa l l valves included in the SSTI assembly.

4) Divers will: a) Close Tap Valve # 1 (4" Cameron BV, ANSI 900# RTJ) b) Confirm that Check Valve #2 (4" Tom Wheatley, ANSI 900# RTJ) is in the

Operating position.

Proposed Pipeline Riser Repair Procedure Segment No. 10771 - 4" Oil Pipeline Vermilion 252A February 14, 2019 Page 2

5) Upon confirmation from thc DSV that the 4" hot tap and pipeline valves are closed, VR 252A will bleed the pipeline to zero psig at the platform; open up (un-flange) the pipeline at a desired point located above the { + )10 , elevation leak and prepare to pump out any remaining product in the riser down to a point below the leak elevation. Spill containment measures will be in place at the open-flange location.

6) Remove the riser clamp form both the 4" oil pipeline riser

7) After completion of the product clearance from the riser, VR 252A will insert a vented plug down through the riser to isolate and contain the product remaining in the pipeline from a point below where the leak repair work will be performed.

8) After insertion of the vented plug, VR 252A will remove approximately the top 2-3' of the neoprene riser coating from the riser and perform a thickness measurement inspection of the riser pipe to confirm the existence of acceptable pipe wall thickness in order to weld out flange.

9) Upon confirmation of acceptable pipe at approximately 2' below the existing leak, VR 252A will drill a lA n hole in the riser at the planned repair location to confirm that the product in the pipeline has been isolated from the riser at the planned repair elevation. Spill containment measures will be in place at the proposed repair location. Upon confirmation of no product flow from the drill hole, VR 252A will perform a "cold-cut" (mechanical cut) of the riser at approximately 2' below the existing leak location.

10) After removal of the leaking section of the riser, VR 252A will weld a new 600# ANSI flange to the riser and perform X-ray inspection of the weld in accordance with API 1104 (or equivalent) specifications. All relevant hot work permitting shall be performed prior to initiating the welding operation.

11) A second riser cut and new flange will be installed approximately 10' above the new flange installed in Step #9. This new flange weld will also be X-Rayed.

12) VR 252A will install a pre-fabricated, flanged-end closing spool section (4" API 5L, X-42, Schedule 80; which will be hydro-tested in the shop to 2160# for 4 hours) in the riser and prepare to put the line back in service.

Proposed Pipeline Riser Repair Procedure Segment No. 10771 - 4" Oil Pipeline Vermilion 252A February 14, 2019 Page 3

13) VR 252A will install a new standoff clamp at the (+) 10' elevation.

14) After VR 252A has filled and pressured up the newly repaired riser, the DSV will be instructed to place the SSTI valves in the operating condition. Divers will: a) Open Tap Valve # 1. b) Replace all protective cover over the SSTI assembly (mats or pure sand

bags) as required.

JVote; In accordance with 30 CFR 250.141, Castex hereby requests an alternative compliance to the pressure test required by 30 CFR Part 250.1003(4)(b)(2). In lieu of performing a field hydrotest, a 2-hour charted leak test will be performed on the riser at normal operating pressure.

15) Perform 2hr leak test at operating pressure (500 psig) using a calibrated chart recorder and dead weight indicator.

16) After a successful test thc pipeline will be returned to service.

17) Demobilize the project.

ATTACHMENT A

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