In fteply R e f i ' o :

ARJ) 011 and Gts Coopany Attention: ttt, Belinda V. Breaux Post Offica Box 1346 Houston. Texas 772S1

Gentlemen:

March 31. 1938

Referenca 1s aade to your In i t ia l Plan of Exploration received Karen 24. 1988* for Lease OCS-G 6165. Slock 177. High Island Area, This plan includes the activit ies proposed for WeUs A through E. *

In accordance with 30 CFR 250.34, revised Decenber 13. <79. and our let ter dated January 29. 1979. this plan Is hereby determined to be conplete and Is now being considered for approval.

Your plan control nuober 1s N-2964 and should ba referenced 1n your couewni-catfon and correspondence concerning this plan.

Sincerely your6.

(Orig. Sgd.) A. Donald Giroir

0. J. Bourgeois Regional Supervisor Field Operations

bcc: Lease XS-G 6165 (OPS-3-2) (FILE ROOM) (OPS-3-4 w/Publ1c Info. Copy of the plan (PUBLIC RECORDS)

ADGobert :cck:03/30/88: poecoa

*. rn — o m ra ^ ~ rn a

ARCO Oil and Gas Company Southern District Regulatory Compliance and Environmental Department Post OMice Box 1346 Houston. Texas '.'251 Telephone 713 584 6639

March 22, 1988

Jiel Mr. Daniel Bourgeois Regional Supervisor O f f i c e of Fiel^ Operations Minerals Management Service Gulf of Mexico OCS Regions 1420 South Clearview Parkway New Orleans, LA 70123

Re: Plan of Exploration (POE) High Island Block 177 OCS-G 6165

Dear Mr. Bourgeois:

PUBLIC INFORMATION

ARCO O i l and Gas Company, a Division of At lant ic Richf ie ld Company, hereby submits f i v e proprietary copies and four public information copies of the Plan of Exploration (POE) f o r Hign Island Block 1~7. The POE was prepared in accordance w i t h 30 CFR 250.34 and provides for the d r i l ing of f i v e proposed wells beginning on or about Apr i l 18, 1988.

The Cultural Resources Report w i l l be submitted separately. I f you need any fur ther information in your review, please c a l l me at (713) 584-6104.

Sincerely,

Belinda V. Regulatory Compliance & Environmental Coordinator

BVB:lmh

c: Mr. Jack Sandridge - Lake Jackson w/attachments F i le - HI 177 General Lease

» « C u ' l a n d G a t C o m p a n y >t a O n m o n o t A t l a n t i c R l c h l i t l d C o m p a n y MOB-3817-A

ARCO O i l and Gas Company. A D i v i s i o n of A t l a n t i c R i c h f i e l d Company

y PLAN OF EXPLORATION

j For i

HIGH ISLAND BLOCK 177

OCS-G 6165

T h i s Plan of Exp lo r a t i on f o r High I s l a n d Block u i , OCS-G 6165, was prepared i n accordance wi th 30 CFR 250.3A, OCS Orders Nos. 2 and 7, Notice" to Lessees 83-3, anci Department of I n t e r i o r S e c r e t a r i a l Order 297A, revised January 19, 1977.

High I s l and Block 177 was leased by ARCO O i l and Gas Company i n the August, 1983 Western Gulf of Mexico O i l and Gas Lease Sale 74. The shallow hazards geophysical survey was conducted by Gardl ine Surveys, I n c . from May 10 t o IA , 198A. D r i l l i n g of the f i r s t exploratory w e l l i s scheduled t o begin about A p r i l 15, 1988, subject to a p p r o v a l of the Plan and subsequent Permit to D r i l l . The proposed w e l l loca t ions and spud dates are as f o l l o w s . The schedule i s t e n t a t i v e i n the meaning of 30 CFR 250.3A-1 ( a ) .

Well Location

Surface Location

Drilling Days

Anticipated Spud Date

A 6100'FSL Sc 7500'FEL 60 April 18, 1988

B A600'FSL & AlOO'FEL 60 June 18, 1988

C 7050'FNL & 7500'FEL f.C August 18, 1988

D 7A50'FNL & 3500'FEL 60 October 18, 1988

E 1050'FNL & 2150'FWL 60 December 18, 1988

A d d i t i o n a l exploratory d r i l l i n g must be pred ica ted upon the need to def ine r e se rvo i r l i m i t s and/or s t r u c t u r e s . The i n s t a l l a t i o n o f p l a t f o r m s , producing f a c i l i t i e s , and p i p e l i n e s are cont ingent upon the success o f the proposed w e l l s . Other exp lora to ry a c t i v i t i e s which may be conducted under t h i s p lan are a wel lbore v e l o c i t y survey and a s o i l b o r i n g .

The proposed wel ls w i l l be d r i l l e d f rom a Mobile Offshore D r i l l i n g Uni t such as Teledyne Movible O f f s h o r e , I n c . ' s jackup r i g Teledyne No. 20. A schematic of the Teledyne No. 20 i s a t tached w i t h a d e s c r i p t i o n o f the blowout prevention equipment and d i v e r t e r system. ARCO O i l and Gas Company supervisory d r i l l i n g personnel are t r a ined i n blowout prevention and c o n t r o l procedures.

No waste products which conta in o i l w i l l be disposed o f i n t o the Gulf of Mexico. Domestic wastes w i l l be t r ea t ed onboard w i t h U.S. Coast Guard approved s a n i t a t i o n t r ea tmen t f a c i l i t i e s . E f f l u e n t waters, deck drainage, fo rmat ion waters, and d r i l l i n g f l u i d s w i l l be disposed o f according to the J t i p u l a t i o n s o f the U.S. Environmental P r o t e c t i o n Agency's N a t i o n a l Po l lu t an t Discharge E l i m i n a t i o n System (NPDES) General Pe rmi t GMG 280000.

Plan of Exploration High.Island Block 177 OCS-G ,6165 ;

Page 2

r

S p i l l reportitng procedures and a l i s t of coinpany personnel responsible for pollutant s p i l l cleanup are contained in the O i l S p i l l Contingency, Plan approved by the Minerals Management Service on June 19, 1987. The Clean Gulf Associates (CGA) has o i l s p i l l cleanup equi ment available for use by ARCO, as a member company. The equipment i s stored at Grand I s l e , Venice, Cameron, Houma, Theodore and Intercoastal City, Louisiana and at Galveston, Texas City, Port Aransas, and Fulton, Texas. Response time for a s p i l l in High Island Block 177 could vary from 6 to 12 hours depending on the location of company operated or available for charter workboats. Natural gas and associated condensate are expected to be found on this lease.

High Island Block 177 is located approximately AO.2 miles from the nearest shoreline judged to be a point near the U.S. Coastal md Geodetic Survey Benchmark "REBECCA". The water depth across the bloc1', is 52 . a t . A Vi c i n i t y Plat is attached for reference. D r i l l i n g operations w i l l be supported from ARCO Oil and Gas Company's Sabine Pass, Texas shorebase.

In compliance with Minerals Management Service Notice to Lessees 83-3, a Shallow Hazards Survey Report with maps are attached. Also attached are a Projection of Air Emissions, Structure Map, Location Plat, and a d r i l l i n g materials/additives l i s t . A Cultural Resources Report is being submitted under separate cover. Site specific examination of the data in the immediate v i c i n i t y of each proposed location indicates no significant d r i l l i n g hazards.

elinda V. Breaux Senior Regulatory Compliance & Environmental Coordinator

ARCO OIL AND GAS COMPANY V I C I N I T Y PLAT

BLOCK 177 HIGH ISLAND AREA

SCALE:1" = 63 #000 ' MARCH 1988

• .

®,O5OFW B L O C K 177 *I50'FWL OCS-6165

\

© 7050* FNL 7500* FEL

6100' FSL 7500' FEL

© 7450 'FNL 3500* FEL

® 4600'FSL 4 I00 'FEL

I ARCO OIL AND QAS COMPANY

PROPOSED N SURFACE LOCATIONS

HIQH ISLAND AREA

SCALE: V - 2000* MARCH 1988

i

SITE SPECIFIC HAZARD ANALYSIS

HIGH ISLAND BLOCK 177

• \ OCS-G 6165

^ EXPLORATORY WELLS NO. 1 - 5

A. Th i s locat ion i s a t leas t 250' from thc edge of a bur ied channel and AOO' from a possible accumulation of gas estimated to be 23' BML.

B. T h i s locat ion i s i n the center of a channel system and about 400' from an area o f shallow gas t h a t l i e s beneath the channel at a depth o f 60 ' -70 ' BML.

C. T h i s location i s 500' from an 8g magnetic anomaly and over 500' from the edge o f u y channel or poss ib le accumulation o f shallow gas.

D. T h i s locat ion i s 500' frora the Transco 12" p ipe l i ne which crosses the block and a t least 500' f r om the edge of any channel or possible accumulation of shallow gas.

E. T h i s locat ion i s a t l eas t 300' from the edge of a channel and from an area o f seismic blanking.

None o f the shallow biogenic gas associated v the channel system i n the block appeared to be over-pressured according to the Hazard Report. However, the deeper, b r i g h t spot anomalies below 190'BML are i n d i c a t i v e o f h igh pressure gas. None o f the proposed we l l l o c a t i o n s are near any o f these b r i g h t spots .

PROJECTED AIR EMISSIONS

f o r

Exploratory D r i l l i n g 1

High I s l and Block 177

OCS-G 6165

D e s c r i p t i o n of Temporary F a c i l i t y Under Part 250.34-1 (a)

High I s l a n d Block 177 Wel l s No. 1 through 5 . w i l l be d r i l l e d us ing a r i g such as the Teledyne Movible O f f s h o r e , I n c . Rig No. 20. This mat supported jackup d r i l l i n g u n i t i s designed fo r water depths from 17 f e e t t o 250 f e e t i n non-hurricane season, and i s capable of d r i l l i n g t o 25,000 f e e t .

Rig power i s c l a s s i f i e d as d i e se l e l e c t r i c . Three e l e c t r i c a l generators each ra ted a t 1180 KW are each d r i v e n by an EMD SR12E1W 1620 HP d i e s e l engine. The cement u n i t i s d r i v e n by two GMC 8V-71N d iese l s . The e l e c t r i c logging u n i t i s powered by a GMC 4-71T d i e s e l .

C a l c u l a t i o n of Emission Exemptions - Part 250.57-1 (d)

High I s l a n d Block 177 i s loca ted some 17 mi les southeast o f Galveston, Texas.

Carbon Monoxide (CO) = 3 4 0 0 ( D ) 2 / 3 t o n s / y r . = 3400 ( 1 7 ) 2 / 3 t o n s / y r . = 22479 t o n s / y r .

(NO x ) , (S0 x ) , (TSP) , (HC) = 33.3(D) t o n s / y r . = 33.3 (17) t o n s / y r . = 566 t o n s / y r .

T o t a l Miss ions

The t o t a l emissions f o r d r i l l i n g f i v e w e l l s per year on t h i s block are as f o l l o w s :

CO 68.6 TPY NOx 257.0 TPY SO x 30.0 TPY HC 6.8 TPY TSP 25.7 TPY

Projected Air Emissions HJ.gh Island Block 177, OCS-G 6165 Page 2

C r i t e r i a , f o r Calculations of PROJECTED EMISSIONS

Start HIf177 No. 1 V D r i l l i n g it ime for WflJ.1 No. 1, PTVD 12000'

Percent * f time with three prime movers (

( d r i l l i n g operations) operating at 75% of 1180 KW (non-drilling operations) operating at 25% of 1180 KW

ki l o w a t t to BHP conversion factor Assumed power requirement 75% of operating time: 3 X 885 KW X 1.34 Assumed power requirement 25% of operating time: 3 X 295 KW X 1.34

Cement pump operating time at 195 BHP or less (2 hours per week testing BOP, 5 hoars per casing string)

Logging unit operating time GIH - i d l i n g @ 90BHP POH - variable @ 120BHP

*4/18/88 60 days

75% 25% 1.3A

3560 BHP 1187 BHP

40 hrs

30 hrs 30 hrs,

Total BHP-hrs for diesel powered engines 4286 M BHP-hrs

Emission Factors*

Carbon Monoxides (CO) 6.4 lb/1000 HP-hr. Nitrogen Oxides (N0 X) 24 lb/1000 HP-hr. Sulfur Oxides (S0 X) 2.8 lb/1000 HP-hr. Hydrocarbons (HC) 0.63 lb/1000 HP-hr. Particulates (TSP) 2.4 lb/1000 HP-hr.

Table 3.4-1 Emission Factors for Stationary Large Bore Diesel Fueled Engines, EPA Report AP-42

Projected Emissions Per Well

Carbon Monoxides (CO)

Nitrogen Oxide (N0 X)

Sulfur Oxides (S0 V)

Hydrocarbons (HC)

6.4 lb/M HP-hr x 4286 M HP-hr x 0.0005 ton/lb = 13.7 T CO

24 lb/M HP-hr x 4286 M HP-hr x 0.0005 ton/lb » 51.4 T N0X

2.8 lb/M HP-hr x 4286 M HP-hr x 0.0005 ton/lb = 6.0 T S0X

0.63 lb/M HP-hr x 4286 M HP-hr x 0.0005 ton/lb =1.4 T HC

Particulates (TSP) 2.4 lb/M HP-hr x 4286 M HP-hr x 0.0005 ton/lb =5.1 T TSP

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C a u s t i c i red L. ign i t e

Mod i f i ed L i g ros uI f o n a t e

B l e n d e d L i g n o s u l ­f o n a t e Compound

CMC

D c t e r p c u I ( B i oc' eg radou ! •',

C a u s r i c Soda

Soda Ash

Sod i :;m Bicarbonate

Chen i c a I Name

Sj" !um s u l f a t e

N a t u r a l l y occur.- inc; c! ay

N a t u r a l l y occu"*ing clay

Sod i um t e t r a p • *-phate

L i g n i t e

NaOH t r e a t e d L i g n i t e

Sod i um L i g n o s u l f o n a t e

Compound o f chem i ca I s

Sod i um Car b o x y -me thy I Ce I I u i o f P

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Sod i um Hyd r o x i de NaOH

Sod i um C a r b o n a t e

Sodium B i c a r b o n a t e

A r.i. 1 i CPt i c>i

For i n c r e a s i n g muc «e 'cht up t o 20 ppc.

V i s c o s i t y end f i l t r a ­t i o n cont'o! in watf.r-ht iSB muds.

v i scos I t i "ir in sa 11-wster,muc z•

Th i nner f o r . ;w pH fresh-water nuds.

D i s p e r s a n t , e m u l s i f i e r and supplementary a d d i t i v e f o r f l u i d loss c o n t r o I .

1-6 r o t i J caust'c-! i g n i t e d i s p e r s e n + , emii;o*»er and sup p I em'--.,tar > * I u i d 'os-s add I f Lv v».

D i s p e r s - ' t and f l u i d loss c o n t r o . a d d i t i v e f o r water-base muds.

Blended ni-." 11-pur pose disperse. ", f l u i d loss agent s r . i n h i h i v o r f o r ijnique mud systems.

For f l u i d loss c o n t r o l and b a r i t e suspension in water-base muds.

Used fn water-base muds t o aid ir, Chopping sand. Emul s i f i e s o i l , reduces torque and minimizes b i t - b a l l i n g .

For pH c o n t r o base muds.

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For t r e a t i n g out calcium s u l f a t e in low pH muds.

For t r e a t i n g out calcium s-i f a t e or cement in high pH muds.

* M i ned Mi nera I s

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N u t S h e l l s : F i n e N a t u r a l M a t e r i a l M o s t o f t e n u s e d t o p r e ­v e n t , l o s t c i r c u l a t i o n .

G r o u n a M i c a * M i c a ' Used ' o r p r e v e n t i o n c f l o s t c i r c u l a t i o n .

None U s e d w h e r e l a r g e c ' e v i c e s o r f r a c t u r e s a r e e n c o u n ­t e r e d .

C o m b i n a t i o n o f g r . n u ' e s , f I a k e s , and f i b r o i s m a t e r i a l s o f v a r i o u s s i z e s i n o n e s a c k

S o d i um C h r o m a t e Sod i um C h r o m a t e Used i n w a t e r - b a s e muds t o p r e v e n t h i g h t e m p e r a ­t u r e g e l a t i o n .

T E R T I A R Y

0 . 1 5 1 ub I e S u r f f i c t a n t s

F i e n d o f F a t t y A c i d s S u I f o n a t e s a n d A ' j p h a ' t i c M a t e r i a l s

None

None

Non-weighted f l u i d f c spotting to free d i f ­f e r e n t i a l l y stuck pipe.

Invert emulsion that nay be weighted to desired density for spotting free d i f f er e.i t i . ! ! y stuck pipe.

•Mined Minerals