In Reply Refer To: MS 5231 November 17, 1992

ARCO Oil and Gas Company Attention: Ns. Brenda Y. Mundz Post Office Box 1346 Houston, Texas 77251

Gentlemen:

Reference 1s made to the following plan received November 3, 1992:

Type Plan - I n i t i a l Plan of Exploration Lease - OCS-G 12919 Block - 154 Area - Eugene Island Activities Proposed - Wells A through D

In accordance with 30 CFR 250.33, this plan is hereby deemed submitted and is now being considered for approval.

Your control number Is N-4381 and should be referenced in your communication and correspondence concerning this plan.

Sincerely,

(Orig. Sgd.) A. Donald Giroir

.J<* D. J. Bourgeois Regional Supervisor Field Operations

bcc: Lease OCS-G 12919 POO File (MS 5032) MS 5034 w/public info, copy of the plan and accomp. info. c AGobert:c1c:ll/lO/92:POECOM

NOTED

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ARCO Oi l and Gas Company <> 5»3SJ OHiC* Bc« ! J46 Houslon Texas '7 iS t " e ' e p n o n - ?i 1 Sd4 6139

Easierr Dnir.ci B«g i iaiory Comoi.ance a n 0

Environmental Department

November 2, 1992

Mr. Dan B. Bourgeois Regional Supervisor - Field Operations GULF OF MEXICO OCS REGION Minerals Management Service U.S. Department ofthe Interior 1201 Elirm d Park Boulevard NewOriea; . LA 70123-2394

RE: PLAN OF EXPLORATION Eugene Island Block 154 OCS-G 12919

Dear Mr. Bourgeois:

dn«ing of four expta^ ZHZ E ^ Z ^ ^ ** p m ^ m i

«bou. January 1, ,993, , rig ^ S S J S S 1 5 4 ^ fi™ <™» » » be .p,* on or

If need any further information, please call me at (715. 84^37

Sincerely,

Brenda Y. Mufioz Regulatory Compliance Coordinator

« NT Usher HMB 1222 (w/o attachments) p i . * ? ? ' * B B S ( w / ° attachments) t l 154 Gen. Lse WF-BYM

»acb0 i««* y c, I 0 . . , v <

ARCO Oil and Gas Company A Division of Atlantic Richfield Company

PLAN OF EXPLORATION PUBLIC INFORMATION

For

Eugene Island Block 154

OCS-G 12919

PUBUC INFORMATION

This Plan of Exploration for Eugene Island Block 134, OCS-G 12919, was prepared in accordance with 30 CFR f 250.33, Notice to Lessees 83-3, Letters to Lessees dated October 12. 1988 and September 5, 1989, and Department of Interior Secretarial Older 2974, revised January 19.1977.

Eugene Island Block 154 was leased by ARCO Oil and Gas Company in the March 2 V. 1991 Central GuIfofMexico Oil and Gas Lease Sale 131. The proposed exploratory activities include the drilling cf inn wdls in Eugene Island Block 154. Drilling ofthe first expl .rtocy well is scheduled to begin about January 1. 1993, subject to approval ofthe Flan and subsequent Permit to Drill. The proposed well locations and spud dates are as follows. The schedule is tentative in the meaning of 30 CFR $ 250.33-1 (a).

Depth Water Drilling Anticipated Prvp Bon Bra SfiuLHUf

SHL: 2900' FNL A 6500TEL 72' 60 January 1,1993

SHI. 5000* FNL ft 1100'FEL 73' 60 March 1,1993

SHL: 2800' FNL A S9O0TWL 72' 60 May 1,1993

SHL: 1900' FNL A 3600TFWL 71' 60 Jury I, 1993

drilling must be predicated upon the need to define reservoir limits and/or structures. The of platforms, producing facilities, and pipelines are contingent upon the success of the piupused weUs.

Other exploratory activities which may be conducted under this plan are a wellbore velocity survey and soil boring

Eugene Island Block 154 Exploratory WeUs A through D will be drilled using a rig such as Movibk Offshore. Inc. drilling unit (MODU), Teledyne 20. This is a mat supported jackup type drilling rig capable of drilling to 25,000 foot depths ia 17 to 250 fast of water. Srnrmarics of the Teledyne 20 is attached with a description of the safety ami pcitailoB PH iintlun equipment system. ARCO Oil and Gas Company supervisory drilling personnel are trained in blowout prestation and control procedures.

Plan of Exploration Eugene Island Block 154 Page 2 PUBLIC INFORMATION

SUPPORTING INFORMATION FOR PLAN OF EXPLORATION FOR EUGENE ISLAND BLOCK 154 PUBLIC INFORMATION

1. A structure map showing ihe proposed well locations, a cross-section and top of abnormal pressure plai are attached

2. The water depth across Eugene Island Block 154 varies from 68 feet to 78 feet A map showing the proposed well locations and bathymetry is attached.

3. A shallow hazards geophysical survey was conducted on board the M/V L'Aipenteur from August 21 to 23. 1991 by John E. Chance A Associates (JECA). A Shallow Hazards Report and maps were prepared by Rosanne Son-Hindmarsh, Consulting Geopbysicist and are attached

A site-specific review of the shallow hazards data for the immediate vicinity of the proposed wells iniHrstw that there is no hazard to dnlling at the proposed surface locations

Actual lines of data may be obtained from Mr Nat Usher. ARCO geopbysicist in Houston. Texas Mr Usher can be reached at (713) 584-3214.

4 ARCO has an Oil Spill Contingency Plan wnich was approved by the MMS on August 11. 1988. Spill reporting procedures and a list of company personnel responsible for pollutant spill cleanup are contained in the Oil Spill Contingency Plan ARCO's onshore base in Bayou Boeuf will be used for support during the proposed drilling operations and in the event of an oil spill. Clean Gulf Associates (CGA) has oil spill cleanup equipment mainhhi for use by ARCO. as a member company. The equipment is stored at Grand Isle, Venice, Cameron, Houma. Theodore and Intracoastal City, Louisiana and at Galveston, Texas City. Port Aransas, and Fulton, Tens.

(1) Oil and gas production are expected to be found on this lease Should a spill occur a Fast Response Unit would be obtained from the Clean Gulf Associates inventory to remove oil from the ocean in order to prevent or any potential shoreline impacts. As indicated in ARCO's Oil Spill Contingency Plan additional equipment far Hat removal of oil at sea and for shoreline cleanup would be obtained from CGA as needed for the particular situation. The nearest location for a FRU is in Houma with alternate locations in either Intracoastal Ciry or Grand Isle.

(2) sponse umc to Eugene Island Block 154 is estimated at 13 hours Response time is estimated as follow. All boat .ravel times are based on a traveling speed of 9 knots in open waters with approximately 3 noun additional travel umc to reach the Gulf from the Bayou Boeuf Shorebase A boat is usually kept at the ARCO shorebase.

A Locate and move boat Truck FRU from Houma to Base

Ohr I o hr

B. Contract labor to base C. CGA Supervision to baae

3.3 hr 2 Ohr

Total Procurement time1

Equipment Loadout Transport to spill C T B T I T I I PmhTWiM

3 5hr 1 Ohr "Ohr J U i

TOTAL RESPONSE TIME 12.5 hr

Total procurement time is the maximum of categories A B, and C

Plan of Exploration Eugene Island Block 134 Page 3

PUBLIC INFORMATION

(3) Site-specific review of the planned activities have been conducted using the methodology employed in the Final Environmental Impact Statement for Gulf of Mexico Sales 131. 133. and 137. According to Figure IV-2 the proposed dnlling location is in launch site 38 and probability for landfall of spilled oil within 10 days is: 3% to Terrebonne Parish.

A review of Biological Map No 6 included in the CGA Manual Volume II indicate the Terrebonne Parish coastal area to be mostly marshland The area consists of recreational beaches, barrier islands, mangroves, oyster beds, and bird rookeries. Please note that the Atchafalaya Delta Wildlife Management Area is adjacert to Terrebonne Parish. Endangered species that inhabit the area are the bald eagle

Response modes for onshore protection and cleanup are referenced in the CGA Manual Volume II. on the peges immediately following the abovementioned maps of biological sensitivity Priority for a shoreline cleanup would be given to environmentally sensitive areas which would be cleaned using these recommended methods as outlined in the CGA Manual Volume II

5. No new or unusual technology is to be utilized for the proposed exploratory drilling on Eugene Island Block 134

6. The tease supulations for archeological cultural resources include Eugene Island Block 134. A Cultural Resources Report is required and was prepared by L A Landry A Associates. The Cultural Resources Report is attached in Appendix V of the Geoph>sical Surv eyReport

7. Effluent waters, deck drainage, formauon waters, and dnlling fluids will be disposed of according lo the stipulations of the U.S. Environmental Protection Agency's National Pollutant Discharge Elimination System (NPDES) General Permit GMG 288524 Water based drilling fliud and cuttings which meet the NPDES General Permit toxicity limitation of a 96 hr LC50 of greater than 30.000 ppm will be discharged overboard. Other water based muds aad oil based muds will either be transported beck to shore for reclamation or disposal at aa appro*ed commercial facility or will be disposed by annular injection in an offshore well on the lease. No waste products which contain oil will be disposed of into die Gulf of Mexico

Dunng the proposed drilling oo this lease wastes likely to be gene rated include 1450 bbls drilling fluid aad 3800 bbls cuttings esumated based on drilling a 26" bote to 1000'. 17-1/2" bote to 4500*. 12-1/4" bote to 9000* and 8-1/2* hole to TD. If waterbased fluid is used the mud and cuttings will be discharged overboard at rates of less than 1000 BPD. A list of typical mud system additives is attached.

Also generated will be an estimated 12 bbls/day sanitary waste. 160 bbls/month deck drainage from rainfall and equipment and drilling deck washings. Sanitary wastes will be treated onboard with U.S. Coast Guard approved sanitation ueatment facilities Deck drainage will be routed through a skimming system lo remove any free oil. No wrasse will be discharged that contains free oil.

Domestic wastes and any chemicals generated will be brought to shore for disposal at a commercial facility

8. ARCO Oil and Gas Company, a Division of Atlantic Richfield Company, hereby requests that in stmrrUnrr with 30 CFR f 250 67(c) the above area be classified as "Zones where the absence of H2S has been confirmed." Scout tickets from numerous wells which have been drilled in the area including the Shell EI 135 #2 and the Calif EI 135 #2 have been reviewed. The information confirms that HjS is not present in the area

9 A Certificate for Coastal Zone Consistency is attached.

Plan of Exploration Eugene Island Block IS4 Page 4

PUBLIC INFORMATION 10 Air Emissions:

Source of Emissions MODU TELEDYNE MOVIBLE 20 3 • EMD SR12EW1W 1620 hp diesel engines on main generators 2 • GMC 8V-7IN diesel engines drive cement unit 1 • GMC 4-7 IT diesel engine powers electric logging unit

A rig schemauc showing point sources of air emissions is attached.

Emission Exemptions:

As per the guidelines contained in 30 CFR § 230.43(d). F«'**"|MfTlH V n t m a t h e activiues described in this Plan are below the exemption levels. The emission exemptons are itlml̂ frd as follows based on the distance to nearest shoreline of 42.7 miles from Eugene Island Block 134 to U S C G.S. benchmark 'Cove*.

NO r SO,, VOC, TSP - 33.3 (42 7 • r.. TPY • 1422 TPY

CO - 3400 (42.7 miles)273 TPY - 415 *, 7 TPY

Calculation of Projected Emissions

Emission Factors1 •

Nitrogen Oxides (NOx) Sulfur Oxides (SOx) Volatile Organic Cmnpound (VOC) Particulates (TSP) Carbon Monoxide (CO)

24 0 Ib /1000 hp-hr 2.8 Ib /1000 hp-hr 0 63u/ 1000 hp-hr 2.4 1b/1000 hp-hr 6.4 lb /1000 hp-hr

1 - Table 3.4-1

Ajsunjpjioii_s

EPA Report AP-42

Drilling ume per well

Percent of lime with 3 generators at 73% power Total power usage at 73% Percent of time with 3 generators at 23% power Total power usage at 25%

60 days

75%

25% 3937 M BHP-HRS

431M BHP-HRS

Cement pump operating time at 195 BHP or leas (2 hr/week testing BOP. 5 hr/caaing string)

Cement pump power usage Logging unit operating time

GIH-idling® 90 BHP POH-variable ftj 120 BHP

Logging unit nower uu|f

40 hrs

40 hrs 40 hrs

8 M BHP-HRS

SUBTOTAL HP-HRS for diesd powered engines

TOTAL HP-hn for diesel powered eagiaes for fear wells

4392 M BHP-HRS

17568 M HP-HRS

Plan of Exploration Eugene Island Block 154 Page 5

PUBLIC INFORMATION

Calculation of Prmected Emissions Nitrogen Oxides (NOx) 24 lb/ M HP-hr x 17568 M HP-hr x 0 0005 ton/lb

-2108 T NO-

Sulfur Oxides (SOx) 2.8 lb/ M HP-hr x 17568 M HP-hr x 0 0005 torvlb -24 6 TSO,

'x

Carbon Monoxides (CO) 6 4 lb/ M HP-hr x 17568 M HP-hr x 0 0005 ton/lb -562T CO

Volatile Organic Compounds (VOC) 0 63 lo/ M HP-hr x 17568 M HP-hr x 0 0005 ton/lb -S.ST VOC

Particulates (TSP) ' 2 4 lb/ M HP-hr x 17568 M HP-hr x 0 0005 ton/lb - 2 1 1 TTSP

Tftill EmiMions for Wells Np A through p lb/day toa/yr Exemption

toa/yr 1155 210.8 1422 135 24.6 1422 308 56.2 41537 30 55 1422

116 21.1 1422

Nitrogen Oxides (NOx) Sulfur Oxides (SOv) Carbon Monoxides (CO) Volatile Organic Compounds (VOC) Particulates (TSP)

II The Environmental Report for Eugene Island Block 154 is attached.

12.Eugene Island Block 154 is located approximately 42.7 miles from USCG S. benchmark 'Cove'. Dnlling operations will be supported from ARCO Oil and Gas Company's Bayou Boeuf Shorebase in Amelia. Louisiana. No new facilities are expected to be required to support the proposed operations The frequency of helicopter flights for transportation of drilling and contract personnel lo the RIG during dnlling operations is fitimt*rtd to be 10 round trips per week. During dnlling activities one workboat will average about 1.5 round trips per week. Workboats are typically 160* to 700* in length and travel up to 9 knots in open waters. A utility boat may also be used to supplement the workboat as needed. Utility boats are somewhat smaller than workboats, generally only 100' to 110* in length. A crewboat will also be utilized for die weekly crew change during times when hrltCTptcr travel is restricted due to weather. Crew boats are generally 110* lo 120* in lenglh with and aluminum hull and travel at about 20 knots. A Vicinity Plat is attached for reference which shows the likely route for travel between the shorebase and Eugene Island Block 154.

13 Water depths in Eugene Island Block 154 are less than 400 meters; therefore, no effect on chemosynthetic communities is likely.

14. Common Depth Point seismic lines will be submitted upon request.

15.The authorized representative of Atlantic Richfield Company to whom questions rsgsiiling this Plan may be addressed is:

Brenda Y. Mufioz Regulatory Compliance Coordinator

P O Box 1346 Houston, TX 77251

(713) 584-6837

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ARCO OIL AND GAS COMPANY SHIP SHOAL SOUTH

VICINITY PLAT BLOCKS 189 4 194 EUGENE ISLAND AREA

SCALE: 64.000 FEET JULY. 1991

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