In Rtply Rtfor Toi FO-2-1 July 14* 1987

Shell Off short Inc. Attentions Mr. G. D. Mtgllllgsn Pott O'f Ice Box 60159 lio* Orltsns* Loul si tnt 70160

Gtntl

..CiV

This letter Is to Inforn you that the concurrence of tho Florida Departnent of Envlrorantnttl Rogulttlon with Shell 's Coestel Zont Cons latency Certification has been received for your Plsn of Exploration for Leasts OCS-G 8324. 6329. and andj5343. Blocks 22* 66* and lO^TDestin Dont Arta.

This plan wts conditionally approved by our lettor of May 6. 1917.

Sincerely yours*

hntLIMfer Kent C* Stauffer Chief* Plans* Platfora and Pipeline S' :tlon

bcc i Laast OCS-G 8324 POO Fi le w/letter (N-2C73) (0PS-3-2)(FILE ROOM)

Lease OCS-G 6329 POD F i le (OPS-3-2)(FILE P.OCXl) Lease OCS-G £343 POO Fi le (CP5-3-2)(FILE ROOM) LE-5

fFCW

M)j oseph tcck t7/13/87 iconcu rr

BEST WMLABLE COW

I n f tep ly Refer To» PO-3-1

S h e l l Offshore I n c . A t t e n t i o n s Property AOti i n i s t r e t Ion P o e t O f f i c e Oox 570 Hous ton* Texas 77001

Gontlotaont

On Doceesher 20* 1984* o l e x t s r »«_ forearueo t o yoe as n o t i f i c a t i o n * pursuant t o S t i p u l a t i o n Ito. 5* t hax App l i ca t ions for Penu l t t u D r i l l t o liopletaent approvoO Plans of Exp lc rv . Ion w i th in b ±>poc1f1c O r l l l l n g wlnoow f o r a s p e c i f i c t l u e per ioo HBu.u OO i s t f l l z as t l i e ueans of approving t he t1i*.1n^ o f placeifaent ano l o c a t i o n of surface bruc turos dbscclated w i t h exp lo ra to ry c r i 11 Ing or. a f fec teo leaees ano fo r ......vli . u i i . . . o f f l c l t ^ t e x p l o r a t i o n ano ... t n l a i i z l n v cor f U c t s to Depertuom. of Defense a c t i v i t i e s *

On Fehruary 4* 19fa5* a Uo t l c J t o Lesseos ouo Operators* Mo. BS-2* " E f f e c t o f D r i l l i n g "Wlnoow" App rova l s * " n o t i f ieo a p p i i c a o i e lessees o f t he e f f e c t o f f i x i n g chese o r l l l l n g windows. I t s ta tes in p a r t t l i a t pursuant t o 30 CFP. 2 5 0 . 1 2 ( a ) ( 1 ) ( i l l ) * a suspension of ope ta t i ons w i l l be d i rGctec iAQ w i l l ho in e f f e c t f o r a l l leases in tr.e L a s t o m Gul f o f Mexico whicl i were I s s u e c pursuant t o t n o January 5* 19ti4. leaso o f f e r i n g t l i a t con ta in S t i p u l a t i o n he. 5 ano which arc not locateo w i t h i n dn approved d r i l l i n g window. SlBii ler ^uspoi is ions n l l i l ikewise he o l r oc tod by separate l e t t e r s . r or a l l suclt loaves a f f e c t e d LI> fu tu re d r i l t i ng wlnoow openings ano s n a i l oe e f t e c v i v e e.s of t h c oa to of the openings o f t he o r i l i i n ^ wincows.

S i n c e Lease CCS-o 6343, Des t i n Dotee Btock 19V> was no t incluoed in tho c u r r e n t l y approveC"Tl f th d r i l l i n g wirKiow as o o t i inou in our October 23* 19&7, l e t t e r * we liorwhy o l r e c t a suspension ot ope ru t i ons fo r Leai>e OCS-G U 3 4 J t o couiuonce Jtnuary 1* 19bB* anc ten.. inoto* , ursuant t o 30 CFI; 25U.12(o) (2)* when t h e o r l l l l h g window i n which t h i s loose i s includeo ts openec. Pursuant t e 30 CFK 2S0 .12 (d ) ( l ) * t l te tort., o l t h t s lee^e w i l l be oxtenooo f o r a per ioo u f t1i«e u^uivalot i t t o t h o ^or ioo tna t t h i s auopetibion of epera t iens i s it i e f f e c t .

I n accordance wltf the procedures for col iec t ion of rentals ana foyal t loe Ouo the Fednal Govorrauont* the folloulng should be noteo:

1 . Pursuant to and consistent with the purpose of 30 CFR 2 1 0 . I M U ) , no peynent of rental or bilnlnuiu royal y shall be requlrcJ for or during the pe r iod of suspension.

2 . Pursuant to 30 CFR 2iti.J.54{c), rentel peynent Is not required In advance of any leaso anniversary date f a l l i n g wi th in t h i s period of suspension o f operations. However* prorated rental w i l l be ,„ and payable as of the date t h i s suspension of operations tenninates. Tlie anount of rental duo w i l l he coaputed and you w i l l be n o t i f i e s thereof. Tl .ount due shall be peid w i t h i n 30 days aftor rocolpt of such notice. Tho .unlvorsat., oate of t h i s lease w i l l not cnange Uocause of th is lease suspension or tno rental r e l i e f r e s u l t i n g therefrom.

I f you have any questions concerning these pay&ent procooures* please con tec t the Chief of tho Reference Oata Branch* Minerals Managesawt Service* Lakewood* Colorado* at (303 ) 231-3437.

Sincerely yours*

(Orio. Sgd.) J. Rog ers Pearcy

J . Rogers Pearcy Regional Director

ccz Ancco Production Cowpany Attentiunt Mr* Lee B« Johnson Post Offico Box 50079 New Orleans* Louisiana 70150

occ: Rcyalty Managenent Pro^rab (FAD-RDB) IMS 0 Leaso OCS-C e343 (0^5-3-2) PRO 9 (OPS-3-2) OTO Roaoing F i le

'FO-3 11E-3-1 OPS-3

GATranter, 2: (PD-3-1); nup:01-05-B0ioisk-lA

'- • UMTBD

OCM8S43 Offeriag D.te 12/18/85 DBS - 109

RenUl Maw of BMM DECISION S17.280 11.334,400.00

Amoco Production Company Post Office Box 50879 New Orleans. Louisiana 70150

Shell Offshore Inc.

LEASE FORMS TRANSMITTED FOR EXECl) . 'ON

fj - . T . ^ r y - , ^ ^

tatEVB OlSrRJCT Gui/ of Mfliia . QCS ^ # N 0 ^

Sof the Outer 629), and the remkhon. p«t

Act (67 SUt. 462; 43 U J.C. 1337) i : thereto (30 CFR 256), yeer hM for the

the foBowiat action i

I (ft

and ntm the thiee copjci of •ttached lesae. (If leaf* U Mtiint, tridenct muit be furnUktd of agtnft authoriution.

and the fint year', rental 2. Pay tha baUncr of MOS with the attached

•horein for Electronic Fund*

by the Federal i 4 m Bank ef M v York ae later hae, oa the Uth

(M CPS 256.47). That day ia d«y ef ttb

FEB 13 W7 • t. Complywith bondin* requir i accordinc to 30 CFR 256,

[ j 4. Comply with the affixmatiTe action rne|Miini CFR aectioo 60-1.40 within 120 dayi of the effective dai. f the

ef 41

I . 2, and 1 ahove he aede ear later than the 11th badnea day i r r - g - i — ^ ' r I I - i i if Tli l/T li iioie i i in i i m a i ^ l i i

IMPORTANT: Ihr km /dm WfUOM fhr attachment of Uu CORPORATE SEAL to all eafpamUmt.

Original Signed: J. Rogers Pearcy

JAN 2 8 007

BEST AVAILABLE C0PfoSTED. WINSTEA^

Form MMK 2005 (Auguat 1962) (fonmriy Pom SSOO-l)

UNITED STATES DEPARTMENT OF THE INTERIOR

MINERALS MANAGEMENT SERVICE

Oa AND GAS LEASE OF SUBMERGED LANDS UNDER THE OUTER CONTINENTAL SHELF LANDS ACT Tku /hrm dorn not amilUuU an ii/ormalum etSUctum <u dtfin-i <* u US C IMt

and Ouriforw 4of not rqntn nfiproMl Ou Offlct «fMinn§*mnl t '

Offica

Metairie. LA

Caah bonua

$1,668,000.00 Minimum royalty rate per aer*. hectare or fraction

^"^S.OO per acrd Work commitment

Serial number

OCS-G 8343

Rental rate par am, hectare or fraction thereof

$3.00 per acre Royalty rate

16 2/3 percent Profit ihan raU

ThMI—e iaefliactweaaof MAR 1 1987 (hereinafter called thc 'Effective DaU") and ihal I continue for an initial period of " V e years (heretnefter called the "Initiai Feriod") by and between the United Sute« of Anwm. (hen-irWur

called the-i aoo. by th. Regionel Director, Gulf of Mexico OCS Region Mmerala Management Service, ita luthnnaequlBcer, aad

moco Production Company

Shell Offshore Inc.

50.0%

50.0%

(hereinafter called the 'LMM*") In consideration of any cash psy men, heretofore made by UM Leaaae to Uie lessor snd in considersii.<i of promiaes. terms, conditions, snd covenants contained hewn, indudinf the SK^datioi^s) numbered 1, 2 , 3 , 4 , a n d 5 attached hereto, ths Lease and Leaaor agree aa follow*

1. snd 14 tm. Hda Mw* ia isau<d pursuant to the Outer Continental Shelf Lands Act of August 7. Itt63 67 Stat. 462; 4S U. S.C. Ittl at ssq.. aa amandad (92 Sut 629), iheratnafter caUad the 'Act"). Tha laaaa ia iaaued subjsct to the Art; all nirulsoncui

tU the statute and in existence upon the EffecUve DaU of this lease; all regulations issued pursuant to the statute in the future whirl, i for the preven1 we of WMU and the cooes rv ation of the natural reaources of the Outer Continrntal Shelf, and Ihe protection of n>rrelativ«

righU therein; and ail other apphcable statutes and regulationa.

Sec. 2. BifSU af Uaaaa. The Leaaor here! granta snd leaies U the Leaaee ths eaduaive right and privilege to dnll for de­velop, and produce oil and gu reaources. except helium gas. m lbs submerged Unda of the Outer Continental Shelf contaiiung approximately

aam or hectares (hen nafter referred U> ss the "leaaed area"), descritx >l nr follows'

5760

All of Block 199. Destin Dome. OCF. Official Protraction Diagram. NH 16-8.

^ MWlABtf COW

Thew righU incl-jde: (a) the nonexcluaive right to conduct within the lease d area

gaotagkal and geophyiical explorations in arcurdsnce with applicable regulations;

(b) the nonexclusive right to drill water wells within the leased srea. unleaa the water is part of geopressured-geothermal and aworiated reaources, and tu use the water produced therefnim for operations purauant to the Act free of coat, on the condition that the driiling » conducted in accordance with procedures approved by the Director of the Minerals Management Service or the Director's delegate (hereinafter called the 'Di cctor"). and

(c) the right to construct or erect and to maintain within the leased area artificial islands, instai lations. and other devices pemanently or temporarily attached to the leahed and other works end itructures necessary to the full enjoyment of the lease, subject to compliance with applicable laws and regulations.

See. S. Tern This lease shall continue from the Rffertive Date of the leaae for the Initial Period and su long thereafter as oil or gas is produced from the leased area in paying quantities, or drilling ur well reworking operations, as approved by the Lessor, are conducted thereon.

Sec. 4. Reatals. The lessee ihall pay the Lessor, on or before the first day of each lease year which comnvnces prior tu a discovery in paying quantitiea of oil or gas on the leased area, a rental as shown on the face hereof.

See. S. Minimum Koyalt; The Lessee shatl pay the lessor at the expirmtion uf each leaie year which commence after a dlicovery of oil ind gaa in paying quantities, a minimum rnyalty a* shown on the face ••reof or. if there is pruduction. the difference between the actual

royalty required to be paid with respect Ui nuch lease year and the preacribed minimum royalty, if the actual royalty paid is less than the minimum royalty.

open market fur the rnqjor portion of like-quality products produced and sold from the fie! r srco where the leased srea is situated, will be conaidered to be a r. . nable value

(c) When paid in value, royalties on production shall he due and payable monthly on the last day of the month next following the month in which the production is obtained, unleaa the Leaaor dtsignates a later time. When paid in amount, such royalties ahaU be delivered at pipeline connections or in tanka provided fay the Leaaee. Such deliveries shall be made at reaaonable timea and intervale and, at the Lessor's option, shall be effected either (i) on or immediately adjacent to the Icaacd area, without coat to the Leaaor, or (ii) at a r w e conven­ient paint cloeer to shore or on ahore, in which event the Lessee shall be entitled to reimbursement for the raaaonable eeet of transporting the royalty substance to such delivery point The Let aai shall not bc required to provide storage for royalty paid in amount in excess of tankage required when royalty is paid in value. When royalties arc paid in amount, thc Leasee shall nut be held liable for the loss or destruction of royalty oil or other liquid products in storage from causes over which the Lessee haa no control.

Sec, 7. Payments Ti.e Lessee shali make all paymenU to the Lesaor by check, bank draft, ur money order unleaa otherwiae provided by regulations or b" direction cf the Lessor. Rentala, royalties, and any other payments required by this leaae shall be made payable to the Minerals Management Service and tendered to the Director.

Sec. 8. Bonds The Leasee shall maintain at all times the bond(s) required by regulation pnor to thc issuance of the leaae and shall fur­nish such addiU mai security as may be required by thc Lesaor if. after operations have begun, the Lesaor dec s such additional security to be neceaaary

Sec. t . Plan* The Lesiee shall conduct all operations on the leaaed area in accordai, e with approved exploration plans, and approved development and production plans as are required by regulations. The Lessee may depan from an approved plan only as provided by ap­plicable regulations.

See. S. Royalty on Production (a)The lesiee shall pa t fixed ruy aity aa shown on the face hereof in amount or value of produrtiof. nav-ed. removed, or sold from the leased area, (ies of ail kinds (except helium) ia sibject to royalty The l-essor shall determine whether pn. duction royalty shall be paid m amount ur value.

(b) The value of production for purposes of computing royalty on pm duction from this lease ihall never lie less than the fair market value of the production. Tbe value uf production ahail be the estimated reaaonable value of the production as determined by the Lessor, due consiieration being given to the highest pnce paid for a pan ur for a majority of pnduction of like quality in the same field or area, to tNe price received t.y the Lessee, to posted pr; . to regulated prices, and to other relevant matters. Except when the Lessor, in its discretion, determines i i " ' to consider special pncing relief from otherwise ap-plK-alile Pederitl regulatory r. •. ..rements. ihe value uf production f>.r the purposes »f computing royalty shall not be deemed to tie less than the gnms proceeds accruing lo the Lessee from the taW i..ereof In tfie al • • • of goiid reason lu Ihe contrary, value computed on the UIM- of the higheat pnce paid or offered at the time of produclion in a (air aiul

See. 10. F I J fui ma we. The Leaaee shall comply with all reguIaUons and orders relating to exploration, development, and pruduction. Afler due nutice in writing, the Leasee ahall drill such wells and product at such rates aa the Lesaor may require i . . order that the leased area or any part thereof may be properly and timely developed and produced in accordance with sound operating principles.

See. I I . Directional Drilling. A directional well drilled under Uie leased area from a surface location on nearby land not covered by thia leaae shall be deemed to have the same effect for all purposes of the lease as a well drilled from a surface location on the leaaed area. In those circumstances, drilling shall be considered to have been com menced on the leased area when drilling is commenced on the nearby land for the purpcue of directionally drilling under the leased area, and production of oil ur gas frum the leased area through any directional well surfaced on nearby land or driUing or reworking of iny such direc tiunsJ well ihall be considered production or drilling or reworking •/)»• rations on the leased area fur all purpoaes of the lease. Nothing con tained in this Section shall be construed as granting to the lessee any interest, lionse, easement, or other right in sny nearby land

8t. ll. Saf rty A* IU) •11 of employment within tht liMid aree m compliance with occupational •afety and health aUndarda and, in addition, fiee tnm recogniaad haxarda to employeea of the Leeeee or of any contractor or wb contractor operating within the lea»ed area,

(b) maintain all operationt withia the leaaed arw ia com pl iance wi'h regulations intended to protect personi, property, and the environ­ment on the Outer Continental Sh-If; and

(c) allow prompt access, sl the ule of any operation subject UJ la/rty regulations. to any authomtd Federal inapector and thall provide any documents and records whkh are perfcnent to occupational or public health, aafety. or environmental protection aa may be requeeted.

Sae. IS. tmtmmtm md CeareWatkn. (al The Leaaor may tutpend or cancel thia leaae purauant to Section S of the Act and compensation thai 1 be paid when provided by tht Act.

(bl The Leaaor may, upon recommendation of the Secretary uf Defense, dunng a iUte of wsr or national energency declared by Con Cress or tha Prertdtnt of the Unitad States, auapend operationt under tha leaae. aa provided ia Section 12(c) of the Act. and juet compenaa­tion thall be paid to the Lettee for tuch suspension.

u . i i i ii i im The Leeeee thai! indemnify the Lestor for. end hoid it harmless from, any daim, including dauns for loat or damage to property or injury to pertont caused by or resulling from any operation on the leased c m conducted by or on behalf of the L u t . However. 'Jm Umm UaU not be httd responsible to the Leeeor under thia section far sny lots, damage, or injury cauaad by or resulting from:

(a) negligence of the Lessor other than thee iwuoi, or omission of a discretionary function or duty on the pa. : a Federal agency whether or not the diacre.ion involved is abuaed; or

(b) the Leaaee s compliance w.th an order or directive of the Lesaor againat wiiich an admimttntivt appeal by the Leeaer it filed before Ua cauae ol action for tht daim aheet and ia purauad diligently thtreeftor

See. IS . DUjaettUaelfli iaitlta (a) At provided in Section 27(aN2| of the Act. the Leeeor thii' have the right to purchaae not more than 16-2/3 percent by voiume ol tht oil and gaa produced punuant to the laaee at the regulated price, or if no reguUted pnce applies, at the fair market value at the weilh d if Iht od and gas saved, removed, or sold, except that any oil or gat obtaintd by the Leaeor u royalty or nel pro­fit than ahall be credited sgsinst the amount that may be purchased under this tuhaection.

(b) Aa provided m Section 27(d) of the Act. the Leeeee thall take any Federal oil or gaa for which no acceptable bide a n received, ee deter mined by the Leaaor. and which m not tranaferrad to a Federal agency punuant to Section 27(aU) of the Act. snd ahall pay to the Lesaor a cash amount equal to tht regulsted pnce, or if no regwleted price ep plies, the fair market value of tht od or gas to obtained

(c) Aa providad m Section l(b|(7) of thc Act the Letaee thall offer 20 percent ot the crude oil. condensate, and natural gaa liquids produced on the leaae. at the maffcet value aad pomt of dehvery aa provided by ngulationa applkiWe to Federal royalty od. to small or independent refiners aa (Mined in thc Emergency Petroleum Allocotiot Act of 1973.

(d.Un time of war, or whtn the President of the United Stales shdi to prew-nbe, the Leteor ihail bava ths right of first refuaal U r'vehne at the market pnce ail or any portion of the oil or y u produced from the band araa. oa provided in Section 12(b) of the Act.

IS. Ua With.) tuch ume aa the Lessor may presmU. the Leaaee shall subscribe to and op*rau under a umt. pooling or drilling agreement embracing all or part of the lands suhject to this lease at thi Lersor may determine U he appropriaU or nan wary Whtn any proviaion of a unit, pooiing, or dril ig agreement, approvad by the Letsor, is inconsistent with s pnv vitton ot thU laaae. tht provUon of tht tgreement thaU govem

Sae. 17. Efaal Oppertaaity Claaae. During the performance of thk lease, the Leatat thall fully comply with paragraphs (I) through tT) af Section 202 i.f EaecuUve Order 11246. ss amended (reprinted m 41 CFR 60 - 1.4(a)), and the impkmcnting regulations, which an far the purpoae of pnvenUAg employment diacnminotion tgainet penoce oa thc hack of ran. co!or. reiigwn, tcx, or national ongin Paragrapha(1) through (7) of Section 202 of Eiecutive Order 11246. aa amended, an incorporated in this leaae by reference

See. IS. ( ertificstion ef Nuaatgrtgaud FaeSllUe. By entering into thk lean, the Lettee certifica. aa specified in 41 CFR 60-1.8, that it docs not and will not maintain or provide for its employees any segregated facilities at any of its establishments, and that it doea not and will not permit its employees to perform thck tcrvkea at any loca tion under it> control when segregated facilities an maintained. Aa uaed in this >-enification. the term "segregated facilities' maana, hut k not limited to. any waiting rooms, work anea. restrooms and waah rooma. restaurants and other eating onaa. timeclocks, locker rooma and other storage or dressing sreas. parking Iota, drinking founlaina, recreation or entertainment anea, trans port* tum, and houaing facilities provided for employees which an tegrrgattd by explicit direct! vr or an in fact tcgregated on the baek of ran. color, ntigbn. or national ongin. because of habtt, local custom, or otherwiae The l.ttttt further agrees *Jia; it will cbtain identical certifications from propoaed contractors and subcont-icton pnor to award of rontracts or suU-oi.tr* i • unless they «re e.- mpt undrr 41 CFR 60-1.6.

Sar. te. nations to Lesaor All rights in thc let wd area not ea -anted bi the lessee by thc Act. thc regulationa. or tMs Ier reby reserved to the Lessor VV'thout hmi ting thc generali­ty • ecguing. reserved nghts include.

u. . nght to authorue geological and geophysical exptoration in thc Icated ana which does not unreasonably interfere with or en­danger actual operations under the Icate. and the right to grant auch eisements ,e nghts of wsy upon, through, or in the leased a m aa mag be necessary or appropriate to thc working of other landa or to tht treatment and shipment of products thereof by or under authority of tht L-ssor.

(b) thr nght to gram leases for any minerals other than od and gm within the leased are*, except that operslloos under such koen shall mt unreasonably interfere wnh or endanger operationa under this leaae.

(c) the rignt. as provided in Section 12(d) of the Act. lo restrict opera­tions m the leaaed a m •>' iny port Ihereof which may be designated by Ihc Secntary of Defenae. with spproval of thc President, at heUg within an a m needed for natonal defense, and to long ae audi designation remains m effect no operaiiona may bc conductad on the turface of the leaaed a m nr the part thereof included within the deaignation except with Ihe roncurrence of the Secrt tary of Defense If opentions or produrtion under this lease within any designated a m an suspended pursuant to this paragraph, any paymenU of nnl da snd royalty presenbed by this lease likewise shall be suspended duriag •uch penod of suspension of uperatMins and production, and the term of this kase shall bc extended by adding thereto any such suapenaion penod. and the Lesaor ihall be liable in thc lorsaee for such compenaa­tion aa k required to be paid under thc CooatUution >i thc I; nited Statea

See. SI. Trsaifer of Leaee Thc Lcaeee shall file for approvd with the appropnau field office of thc Minerak Management Serwc any in strument of aaaignment or other I ansfer of thk ken. or any intereat thenin, in accordance with appli< able reguUtions

(Continued on reverse)

BEST AVAILABLE COPY

si. dm ml Lmm. H M L M M C may •urrci.dcr this entire I M M or any offkaaily designsted aubdiviaion of thc Icaacd ana by fil mg with the appropnsle field office of the itnerals Ms/ia^emm Scr -/in a written relinquishment, in triplicate, w hich shall bc effective ss of the date of filing. No surrender of thia iaai e or of any portion of thc leaaed oran ahall relieve the Lesne or ita surety of the obligation to pay all accrued rentala royalties, and other financial obligations or to abandon all wells on the ana to be surrendered in a manner satisfsc-tory to the Director.

af rrnmtf ea Tendnitiea mt Leaee. Within a • ac t t . period of one year after terminauon of thia leeae in whole or ia part, the Leaaee ahall remove all devices, worka, and structures from the premiaea no longer aubject to the leaie in accordance with applicable regulations and orders of the Director. However, the Limit may, with the approval of the Director, continue to maintain devices, works, and structures on the leased t m fur drilling or producing on other lesses

8 M . tt. •amtdin iaCaMalDefaaU. (aj Whenever the Lettee tailt to comply with any of tht pnikiaw of tht Act, the regulations iaaued punuant to the Act. or tht terma of thb laaM. thc IcaM shall be subject

to cancellation in aecordann with thc proviaioM of Section 6(c) and (d) of tht Act and thc Lector may exercise any other remedies which thc Lettor may have, including thc penalty proviaiona of Section 24 of thc Act. Furthermore, pursuant to Section 8<o) of the Act, the Lessor msy cared the lease if it ia obtained by fraud or misrepresentation.

(b) Nonenforcement by thc Lesaor of a remedy fbr any particular violation of the proviaions of the Act, thc regulations iaaued p — n t to the Act, or the terms uf this lease shall not prevent the cancellation of this lease or the exercise of iny other remedies under paragraph (a) of thie taction for any other violation cr for the same violation occur-ring at any otlwr time.

bcc. 24. Ui or RcddeotCc

No member of. or Delegate tn. C aamr, after election or appointment, or cither

before or alter they have qualified, and during their continuance in oi­fice, and no offiear, agent, or employee of the Department of the In­terior, except M provided in 43 CFR Part 7, thall bc admitted to any dura or part in thia lean or derive any benefit that may arin therefrom. Thc proviaiona of Section 3741 of the Revised Statutes, as amended. 41 U.S.C. 22, and the Act of June 26, »«H8,62 8tat.702,M amended. 18 U.S.C. 4S1 -433. relating to conUwie made or entered into, or accepted by or oe behalf of thc United Statea, form a pert af this lease inaofar at they may bc applicabie.

(Leane) THE UNITED STATES OF AMERICA, Lessor

(Signature of Authorued Officer) (Signatun cf Authoriaed Officer)

(Name of Signatory)

(Title)

(Name of Signatory ) Regional Director Gulf of Mexico OCS Region Minerals Management Service

(Title)

(Date) (Dale)

(Addmeof Liseeji^

(S«mturc cf AuthoriMd OCBor) (Signature of Author- ttkar)

(Name of Signatory) (Name rf Signatory)

(TWa) fUtk)

(Due) (Pate)

(Addraaa of Laaaae) (Addraaa of Laaaae)

(I H i l l ) (Leaaee)

(Signature of Authorixed Officer) (Signature of Authorized Ufficer)

(Name of Signatory) (Name of Signatory)

(Title; (Title)

(Date) (Date)

(Addreaa of Leaaee) (f (Au leaae u atmUd 6y a corporahon. it mual tear Ur corporati MOL

(Addreaa of Laaaae)

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(Leare) (Lessee)

(Signa&ire of Authorized Officer) (Signature of Authonzed Officer)

(Name of Signatory) (Name of Signatory)

(Title) (Title)

(Uate) (Date)

(Addreaa of Leaaee) (Addreaa of L i m i)

(l/esseel (Lessee)

(Signature nl Authorced Officer) (Signature of Authonzed Officer!

(Name of Signatory ) (Namr of Signatory i

(Title) (Title)

(Uate. (Dale)

(Addraaa of Leaaee)

/ / (AM laaae u mcuUd hy a corpora/ion. U mtat bmr tkt rvrynraU sen/

(Addreaa of Leaaee)

UNITED STATES DEPARTMENT OF THE IN?ERIOR MINERALS HANAGEMENT SERVICE

Outar Continrntal Shalf, Eaattrn Culf cf Hexico Oll and Caa Leaae Sele 94

OCS-C 8343

Stlpuletion No. 1—Protection of Archaeological Reaourcea.

(a) "Archaeological reaource" aeana any prehlecorlc or hlatorlc diatrict. alta. bulxdlng. atructure. or object (including ahlpvrecfca); auch ten lacludea artlfacta. racorda, and raaalna which ara related to •rach a diatrict, a«te. bulldiag. structure, or object. (Sec.-Ion 301(5). Nr * l n i . - l c Praeerratlon Aet. aa aaended. 16 U.S.C. 470w(S)). ** .lobe ana any drilling, alning. or conatruction or plaeeaent of a. . i .;ut' ,# 'or exploration, developaent. or production of the leaae.

(b) If the Ragionai Director (RD) bellevea an archaeological reaource aay axlat in tha laaaa araa. the RD will eotify the leaaee in writing. The leaaee ahall then coaply with aubparagrapha (1) through (3).

(1) Prior to cooBenclng any onerationa. tha laaaaa aball pre­pare a report, aa apecifled by tbe RD. to dateraine tbe potential existence of any srchaeologlcal reaource that aay be affected by operationa. Tbe report, prepared by an srchaeologist and a geophysIclsL, aball be baaed un an aaaeaeaent of data froa reaote-aenaing aurveya and of othar pertinent arehaaolofclcal and environaental inforaation. Tbe leaaee ahall aubalt tbia raport to tbe ID for review.

(2) If the evidence suggests tbat an archaeological reaource aay ba preaent. the leaaee ehall either:

(I) Locate tha aite of any operation ao aa not to adveraely affact the area where the archanological reaource aay be; or

(II) Eatabliah to the aatlak'acclon of tha RD that an archaoologlcial reeouree doee nrt exist or will not be adveraely effected by operationa. Thla ahall be done by further archaeological inveatlgatlon conducted by an archaeologlat and a geophysicist, using aurvey equipaent and technlquea deeaed ntcessary by the RD. A report on the investigation ahell ba eubaitted to the RD f-T review.

(3) If the . J d«tenlne* that an avchaaologlcal tespurca ia lihely to tve preeent In the leaae area and aay be adversely affected by cperatlona. tbe RD v i l l notify the leeeee inme­diately. The leeeee ehall take no action that aey adveraely effect the archaeological reeouree until tha RD haa told the leeeee how to protect i t .

(c> If che leeeee diecovere eny archaeological resource while conducting operationa in the leaae area, the leeeee ehall reporc tha discovery iaaedlately to the RD. The leaaee ehall aake every reaaonable effort to preaerva the archaeological reaource until the RD hee told the leeeee how to protect i t .

Stipulation No. 2—Live 3ottoB Areaa.

For activities conducted undar Plana of Exploration, tbe provisions of thla Btipuletion eball apply only in watar deptha of 100 aetere or leee. For ectivitlee conducted under Development and Production Plane, the proviaiona of thla atlpulatlon aball apply in watar deptha of 200 aetere or leee.

Prior to any drilling activity or tbe conatruction or plaeeaent ot any atructure for exploration or developaent on tbia leaae Including, but not

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limittd tc . u a l l dr i l l ing •nd pipoliaa aad platfoia placMaat. tha laaaaa w i l l •ubalt to tha lagioaal Dlractor (RD) a haebfaatry aap prapara.. ot l l latag raaota •analoi aal /or othar a* rv., twhalgaaa. Thla aap w i l l taelala latarpratatiaaa fer cha praaanca af l ive '^ttoa araaa within a a l n l — R| \,%2V aatara ratflai of a propoaej aapla ia t l ' i or production activity at ta .

lar cha parpaaa af chia •clpaiaclaa. " l ive bottoa araaa" are dafiaad aa •eagrMa ceaauaitleet or tkaaa araaa ahirb contain Meingical eaatahlagaa ceaaiatiag af aach aeaalle iavercebracaa aa aaa faaa, aaa whlpa• h.drolda mmmtm, aacidlaaa. a pongee, b ryot oaaa. or corala l lv leg aaaa aad aMachat' Ce ruterally occurring hard or rocky ferae tlona vlth rough, hrokoa, er aa -otb topoarapbyt ar araaa whe<« 11 the tape favara cha aceuaalecloa of tu r tUa . flehee ( irai otntr 'aua'

Tha laesaa w i l l alao aaaatt to cha IB phot-uoctMacaslan af cha aaa boc toa within 1,120 aatara af cha propoaad axploracioa d r l l l l a i atcaa or propoaad placfora locaciaua.

If ic la dacataluad ckac live bettea araaa eight ba advaraaly lapactad oy the propoaa.l ac t i v i t y . Chen che 10 wi l l raquira Che laaaaa co uader cake aar aeeeura daeaad aconoalcally, eavirenaencally. aad technically faaalhla ta praiacc l iv» boccoa ateaa. Thaaa aeaaurea aay includa. buc ara noc tl.Mcad ce. cha following:

(a) cha relocation af operaciona Co avoid l ive bottor areaa(

fb) tha ahuactng af a l l dr i l l ing flalde ead cuttinga i a euch a aaaaar ar ce avoid l ive bottoa areaai

(c) cha traaaportat lea of d r i l l l ag f laida aad cuttinga to approved diapcaal al-a»- ac*

(•1) tha aonitoring af l ive bet toa araaa te aeaaaa tha adequacy of any eltlgatlor aeaaurea takan and tha iep. r of laaaaa la lc lacad acciviw.ae.

icipulatleo Wo. 3 - i m i t a r T Harnlna Areae.

Eglin AFB Araaa

ft) Rel* Haral aee

Whethar ^epanaacion fer auo. daaaga ir injury mi&x ba lur. • <\ er a cheory of etrice or abaeluca l lab l l lc r wl otherwiae, cha laaaaa •••.ae< .11 rlake of daaaga er Injury ce perieu* or property, whlc*. oceur l a , ea* »\ above cha Outer Contlnan'.al Shelf (OCI 1 . co aay panona or te ar..- propercy a? f f paraon or paraoae who ara age* n, aaployaaa. er lavlceaa of tha laaaaa. his agaaca. independenc concraeccra. er eukcoecraccor' doing buaiaeaa vich cha laaeae la conneccion wich aay activit ies balag perforaed bp cha laaeae l a . aa. or above the OCS. If awch l a Jury or daaage to auch i • ^on ar propercy occura by raa-on of cha aeclvlclaa af eay agency at cha 0 S 'ovateaert. ire eaacractore ar subcontractore, or any ef chair olf lcera i f -ata. ar aaployaaa. being .onducted ee a part of. or In eoe-actioa witt t i f . -oi.saa aad aeclvlclaa nl cha Coansnder. AraaatfC r . v l s l c . S . I ' , .-Ida.

Nocwichacaadlag any Hal tst loi i 'be leeaea'a l i ab i l i t y la tacclon 14 of ch/. leaaa, cha laeaaa aaauasa thlj He« v.ather auch Injury or daaaga It ce' *m<S In uho.j or tn perc by eny act tr ^:«oio^, regard I ts* of aegligenee ar i s z l t , ef che Dnitad stataa. Ice ceffti^vir'a o*. eubesntractora. or aay of tea off icera. agenta, or eaployaae. Tne IHA* furthar sgreea co indaantfy and aave haralaae the Unlced statee agalaac a l l t 'u M tor loaa. daaage, or Injury e>iacalaad by tha laaaae. and to Indaantfy a t eiva haraleaa tha Unlced Icacaa .gsinst a l l clalaa for looe. draajta. or le« >*: sustalnid by cha aganca. eaployeee, ar Inv iteee af Cha l iaaaa. his - i t i r s . or any independenc contractrrt or tub-eeatrectara deiag bueinaee with tha laaaee in coaaaccloo vich th» prograa1 and activit iea ef che above eeowand. whecher tus aaaa ba caaead la wtela ar la pare by tha negligence or faulc of cbe Unlced Scacaa. ' t s eoacraccote er eub-concraccora. o- any ot ice offleara. egaace. or aaplovevc /nd whecher au clalaa eight be •••avelaed under e cheory o ' s t r ict or abuoluce l iabi l iey or othtnrtM,

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fb) Eltctrow .piatlc Ei'laslon*

Tb* leitee . grtes U buat-.oi h" .«n .•etraiagnatic aai•• loca ar4 theaa of hia agenta. aapleyesie. inviteea. mi JI . - coecractore. or anbcont/aetere. efianatlBg froa individual daalgr 4ae • • -ar'.ae-1 of Defenae (DO.t', wernlng areaa in aecordaace eith raquireaents ip-. .id by the coaaander of tha coaaand heatfquartara liated tbeee to the deg ce neceaaary to prevent dosage te, c r uneccepteble intet/erauce with DOO flight, teeting, ir operat onal activi-....., conducted within Individual deal gna. ad warning aree... •eceaaary aon.-•.'ia*: control end coordination witb the I:MMf hie egerce, .aployeea, inviteee, independent contractcra or aubcratra-iora will "J* effe*ted by 'he ruvjadar of the appropriate onahore allltary tncMlletioo ccwfc: . \« opet looa lo tbe particular warning aroe; provided, hcv»v;.-, the' con T - of ».-h exectreaagnetic eadaeiona ah/.U in no Inst an . prohl dt ell aanner a electroaagnetle coaaunication *vrlrg any per od of tiae betueen a leaaae, b.*e agenc eaployeee, Inviteea, InCtpcndaut cor crore, or aubeontraetora, and onahors facilitiee.

(c) Optrstlonsl Controla

Tbe laaaee, when operating or cauaing to be opereted on hia .!.*.» •>>ai at eircreft traffic in the individual daalgnated warning arae, .1 ontsr into an agreeaent wth che coaaender of the ladividus* coaaand h/ .e,>.<artera lieted above on utillting en individual deaignated wernlna aree p- 'Jl ts owencing auch traffic. Such an agreenent will provide for posltl' ontrol >.i K-cte an-, aircraft operating into the warning areaa at a'l tiaer.

(d) Evacuation

When the activities of toe Araaaant Developaent end Teet Center et Eglin Alr Poree Baee, Florida, aay endanger pereonnel or property, tbe leaaae egrees, upon rtceipt of a directive froa tbe Regior Dirtctor (Rd, to 1 eaete al l pertonne. froa el l etructuree on the leaae end to ehut-in and eocure el l welle -nt' other jqulpaant. including pipelinea an tbe leeee. witbin 48 houre or within tu 1 otber period of tiae aa aay be specified by tbe directive. Such direct' i k .all not tequire evacuation of personnel at 1 ahuttlag-in and aecurv of equipaent for a period of tiae greater than 72 houra; however, eucn a perjo.1 of tiae aay ba autended by a aubaequent directive froa the RD. i'qulpuat.. and atructuree aay reaaln in place on tbe leaae during auch tiae ea :he directiva reaaie.a in effect.

Stipulation Ho. 4—Tranaportation.

f,«) Pfp<:lln.*t v i l l w* required: (1) if pipeline rlghta-of-way 1 a.< bn de*.eraine'l ano obtainei.' ''.) if laying of auch pipelinee ie tecUao'ogicelly fettelbl* and en.ironaenr preferable; end (3) i f . In the op' ton of the leaaor, pipeline 1 can be '.aid ^rbout net aoclel Ioee. taking into account any Increaentel coeti of >spelinea ov.r Iternative aetboda of tranaportation end aav Increaentel benef i-e in th. '•>. j of increeeed envi-nns: •nisi protection or reduced aultiple uee co.v I f c .he leaaor apeciflcally r.«**t*.ee tke right to require that any plpelina ua« * ot trenaporting production tc ihore be placed In certain deelgnated aanageaen'. ereaa. In eelectlng tbe 1 of tranaportation. conalderatlon ' / i l l be given co eny re. 'SM-US of the Regional Technlcel Working Crr up for aaeaaaaanc an-: urnsgtcK'nt i<l trsnsportstlon of offehore olx ead gas witb rhe ^artldpetio • ri 'ederal. State, and local govemaente snd Industry. All pipelines, • c tilig both flow linea and gathering 1 es r/g ofl aed gaa. ahall be deaigp d m: > tna'. rueted to provide for edequete protection fvoa watar currents, aton acourln*, aid other haaa dt tt deteralnee or a caie-b)-csse baale.

(b) I 'lr- Se developaent of sufficient pipeline ;,«clty. au ciude oil i'i'I >•* rr jr.i' ,n*<i by eurfece veeeela froa offahore ptoduction sl.es etcept In the caaa *i r . i gency. Deterelnatlon aa to eaergency ondltlons and ip|.rc»nr*« - -..ponaea to thete conditlont will be aado l<y the Reglnnal Dif eror

(r Where the three criteria aa: feck in the ff-.et aenter.ee of thla atlpula­tlon ara not aet end aurface trensirnration auat be eaployed, el l veeeela used for carrying hydrocarbtna froa the leseed aree will conform with all atandardi eatebllehad or auch vas vela, pur mant to the Forta end Watetweya Cafetr Act (33 r.q.c 121 et eeq.).

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V

Stlpula' ton Wo. 5i--> "trlf tl.»n on E«plar>tlOB Activiti—

R M fl«e< •nt, locat n, and plaaaav pa .lod a of cpa-ation of aur faca I'.iiv-cnraa thla laaaa duting cba axploratloa ataga ara aubja-t ca approval bjr .1 e

Aagtonal Director (ID) aftor tba rer*av of M. tt§*y \st . r ' i Plan af bp]cmtlon (POE). Prior to approval of tba POE. tha KD e i . l lumavle wich cba Cna.-rsr.Jrr, Anuaant Dlviaion. Egl in Alr Pocce Baee. Plori la . aad tba Caaa tilling Officer* Naval Coaatal Syateae Center, Pan aaa City. Plorida, l a ordar Co dat aral nt .-ha POE'a coapatlbllley with acheduled a l l l tary operaciona. Tbe POB wi l l eerve aa cba laatnataat for proaotlag a predictable and orderly distribution of anrfeca atructuree, dete raining cha locacion and danalty of aach etructuree, and aaslal t ini exploration whlla alnlalting coaf 11 tea wtth Oaparcaenc of Defenee act lv l t l ts . A tot w i l l be dlaapprovad l a ar^>. : . A O I with 30 CPI 2S0.34-l(o) (2)( 411) If I t l a dataralaad tbat tbe pmr^ae i epe:sclent v l l l raaalt l a interference with ache Julto a l l l Cary air^leaa -uch a a\aeer ea Co poaalbly Jeopardiee cba nacional dafanaa or to peaa oaaceiptaMa rlsoa to l i f e and property. Moreover, i f tbara »- :, aerloua three'. o* nata or daaaga to l i f e or nropercy. or i f i t l a l a tba f^carrac of nacional aecurity or dafanaa. approvad

. lons aay ba aoapoadad .a aceordanca -'rh 3C CPI 230.12(a)(1)(11) and xls.* >. Tba Cera of cba le^aa wi l l be extsnaed ca sowar cba parlod of auch euapanaion or prohibit ion, tt la raeogai'si tbat tba laaoaaee of a laaaa conveya tbe right to t' •- leeeoe aa pror ided In f actio' 1(b)(4) of cbe OCS Lande Acc Co engage in expl . . tvlen. developarMiC. and producti— tccivlclaa conditioned upon otbo* tr« tucory aad tegulatory regulr»>VM.u.

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UNITED STATES DEPARTMENT OF THE INT ERIOR

MINERALS MANAQEMENT SEHVK*E

DESIQNATION OF OPERATOR

tnd not consbtutt tn doos not rvqun

Mammon cot* oon m dttotd or 4 4 u s e. by tht i Oco of Umtgtmtm tnd BmtfBi

The lessee ktontifM below is. on the records c tM Minerals Mtrnagement Service, a ttaf .wHm ot:

UBM Number OCS-G-8343

aegionaion.ce: GULF OF MEXICO OCS RI:.oICN

and hr-reoy designates p^g J 3 f f g

R E C E I V E D

Nwrw: SHELL OFFSHORE INt P. 0. BOX 61933 New Orleans, La. 70161

Minerals M*.'>*t*iwnt Service LHSing & Environment

ae hU operator and local agmt. with fua authority to act in hie behalf in ccm >iying with the tarmt of tha lease and ragtfa-tions applicable therato and on whom tha Regional Diractor or hia rapmwntatira may serve writtan or oral instructions in aecuring compliance with Uta Operating Regulationa with reepect to (dae vibe »«ock or aliquot pwtion lo af eh thie designa­tion ia appl'cab'o):

A l l of Block 199, Deatin Dome, OCS Offfir.;^! Protraction Diagram, NH 16-8.

II le underatood that thit designation ot operator doee not relieve the i-^see of responsibility for comptaince with the terna of me leaee. laws, regulatione. and Outer Continental Shell Ordera p, ohtabto lo the area. II to alao underatood that thb daaignatftn of operator doee not constitute an assignment of any intere '-t the lease.

eaae 61 dofault on the pert of the deaignated operalor. the leeeaa wW muke full end prompi comp iance with an rat* 1K..M, leeae terns, or ordora of the Secreiary of the Interior or hto repreaentative.

The ag -ees to notify the Regional Diractor promptty of any change in thn daaignatad operator. AMOCO PRODUCTION COMPANY

« 1 .noi P. 0. BOX 50879 FEb 1 1 m l Now Orleana. Louiaiana 70150

(Namo 01 Laaaaa) (Data)

(Atam vac. Sign

FOn- a**;; , -ao aptafflbtr 1985) (SuMraaor* s-v-m e-l 123 •Nc wW not bo uaad)

Signatura of Laaaaa)

POSTED-WINSTEAD

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1

SEP t 9

tttt I \. ffiter* inc.

C i ^ * ' Sis* 576 HOUttOflt

Gtntl

/UOl

On OtCM cr 2C« 196.;. « lelttr M S for^trdtd t /OM U (Wtlflcttloa* ptrmnt to Stlp«!«tioii to. &• Ut t ^cttt^st ftr PtrrBtt to Drill U 1tpl<G«t ^ r / * r . ^1M» Sf Exp1<ir t1«Ki wi.tilt * sptclMc drilling window for & specific l'*m (tf ltd Muld tn wt'llztd t« tht •tats of awrcvlns Ua tltlnf of plfictMtt tna location oi surfece stnicteirt* as stel a ttd with tHuIorttcri i'rllltag oa afftcttd laasas and ftr aaxfofjlfiy afflclaat tug: lor a tita ti*i einlaUlag conflicts to DtpartiMii of Dtfttst tcttvltlts.

Ot ^abPtttr/ 4* IMS. t Notlct to Lassttt tbd Opt rator&. Nt. 85-2. "Effact of Orllllng *Vi1iidc'<* Approvals.* notif ltd acpllcaMa lassttt tf U t tfftct of fltltg wasa drilliae wlndots. It statts fa ptrt ttet pursuaiit to 10 Cfk 250.12u)(3} (cwrrtntljr 30 CF3 25C,U (i) C3)). a MSptoslta tt operations Mill directed aad Da in efft'.t ftr all leases in (ha Ctstarn Calf tf Ntafco Mhich were fstted p u r s u t to the January £, l&c4, least offering thtt cottala St ipulat loo ND. 5 Mhich are net locateo withia an approved cr l l i r * wlnoow. SiaMar ••^s.wisitns -U i llkmlst ht w Irec ted p> stptrtU inters for aU vsst. teases affected bjr future drilliny •ioddM openings tod .4: J l M effective as of tht daU of thc openings of the dril ling windows.

Uase OCS-C P343. Oestin tem cluck 195. at* not .ncluded ir. tt.« sevens drilling Mledati ts outlined <n o'ir Seotea'«r XX 196£. iettei, Ue hereb> direct a suspension of o p e r a t e f o r OCS-G f'43. to coewance October 1. 1988. and Untir-att. pursuant to 30 CfK 2r>c.lC(J). wten a driiling window In wNich this letse is includes is opened. Pursitnt io 30 CKR 25C.10(f). tht tarsi of Uiis lease uil l be extended fpr a perioc of tloa uouivaient to • te psrlw* ttet this suspension of oper ati xis ifkJftjiffect.

In McardMet with tht prtcrturtt for colltciioo tf r t tUU ud rc/oltlts dut tht Fcdtrtl GtvtmMat, tte followltfi shttlt bt noted:

1* Pursuant tt tnd consiftoot with tte purpost of 30 CFR 218.1 S4(t)* oo ptyatat tf ronUl tr HlnlouM roytlty shtll te rtqulred fcr or during tte porlod tf susptnsltt.

2. Pursusnt to 30 CFR 2ie«l&4(c). rtnul ptyotot Is not rtqulred In tdvtnct tf tdjr lttst tnolvtrstfy date fttl Ing within this period of suspension of oparations. Howtvar. prorated renUl win ht due ttd payable ts ef tte dtte this suspension of operations Urci nates. Tte fiaount of rtntal due will bt ccmputed ted jrou win ht notified thereof. Tht aaount dot shell te paid within r dsys after receipt ef such notice. Tht anniversary dttt of this leasr' 1 . net change because of this lease suspension or the rental relief resul -1 utrtfrteu

If / t t have aty tiutstlons concern log these payaent procedures, please contact tte Chief of tte Referenct Oate Branch. Minerals mnagtBent Service. Ukewood. Col orade. at (303) 231-3437.

Sincerely yours.

• •' R lpti J . He ianc oo tfional Supervisor

Froduction and Develepaeat

vcs Amoco Production Coapany Attention: Hr. U. R. Oukes Post Of /Ice ocx 50679 New 0: teens. Lc .inland 7C150

bcc: Rryal Henagecient Progres (FAD-PUB) (i:S 552) Lease QCS-G 8343 (OPS-3-2) PRO 9 (OPS-3-2)

(£0-3 LE-3-1 OPS-3

CATranter. 2: (PD-3-1) :nnp:09-22-88:Oisk-lA

In Reply Refer To: MS 5321

JAN 3 I 19tf>

Amoco Production Conpany Attent ion: Nr. Scott B. Bally Post Office Box 3092 Houston. Texas 77253

Shell Offshore Inc. Attent ion: Ns. Mary Ooklanos Post Office Box 61933 New Orleans. Louisiana 70161

Gentlenen:

By let ter of Deceinber 20, 1984, you were no t i f ied that Appllcatlo? to Dr i l l would be u t i l i z e d to Implement aporoved Plans of Exploration wi th in a specific d r i l l i n g window for a specif ic t ine perida.—Ttiatr let ter specified the neans of approving the timing of placement and locstlon of surface structures associated with exploratory d r i l l i n g on affectod leases while maximizing e f f i c i e n t exploration and mlnlmizlr.g conf l i c ts to Departaient of Defense a c t i v i t i e s .

On February 4, 1985, a Notice to Lessees and Operators, No. 85-2, •Effect of D r i l l i ng 'Uindow' Approvals,• not i f ied applicable essees of the ef fect of f i x ing these d r i l l i n g windows. I t states In part that pursuant to 30 CFR 250.12(a)(l)(111) (currently 30 CFR 250.10(b)(3)), a suspension of operations (SOO) wi l l be directed and w i l l be In ef fect for a l l leases In the Eastem Gulf of Mexico which were issued pursuant to the January 5, 1984, lease offer ing that contain Stipulation llo. t and which are not located within an approved d r i l l i n g window. Similar suspensions ./111 likewise be directed by separate le t ters for a l l such leases affected by future d r i l l i n g window openings and shal l be ef fect ive as of the date of the openings of the d r i l l i n g windows. Only one d r i l l i n g window w i l l be open at any time.

The OCS-G serial numbers indicated on the enclosed l i s t for leases in the Destin Dome Area were not included In the f i f teenth d r i l l i n g window as outlined in our Apr i l 23, 1991, l e t t e r . Therefore, we hereby direct an SCO for each lease speci f ied on the enclosure to commence February 1. 1992. and terninate. pursuant to 30 CFR 250.10(j) , when^T-tfrPTino ^ n q g ^ jn mSSk lease is included is opened. Pursuant to^JU LFR ibU.10( f ) , the temi of th is luntJ UIM be extended for a per iod of time equivalent to the period that th is SOO is in e f fec t .

In accordance wi th the procedures for col lect ion of rentals and royal t ies due the Federal Government, the followiny should be noted:

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C C 6 I v C o

The aiSn^J / Jte SS.di?ifn? w a b , e « o f the date

***** of thts lease ^ . t j ^ ^ l ^ ^ j S ^ T

Service. Laki*ood. ColdPjdd. ^ (my z n ^ T ^ * * * *

Sincerely,

•If. sd • J. R

J . Rogers Pearcy Regional Director

Enclosure

bcc:

MS 5232. w/encl lm~S2S0. w/encl MS 5421, w/encl MS 5030, w/encl

WICarl:css:wp51:dril6w1n.doc:January 29, 1992

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