In Haply E t f e r To: F<W-.

Union P a c i f i c Betourcei. A t t e n t i o n ; i ' r , J . ft. Car te r , J r . 1400 Sr . l th S t ree t * Suits. 1500 HouKtCMi* T o * a * 77C02-4364

Gentleman:

Weferunce 13 ;-»ad© to your i n i t i a l Flan of Exp lo ra t ion r*»c4»1vco Fouruary 29, 196B. f o r Lease QCS-G 9011 • Mock 154, Htph I I U . K - A re * , ' h i : , plan fncluu«3 the a c t i v i t i e s proposed fo r «-lls *v through IJ.

In accordanca w i th 30 OFF: 250.2**, r u v u t . • ««• 13, 1979, ami our l e t t e r dated January 29, 1979, t M s ftaja 1s bereo} 2*-v*r.-i nee" t e oe can? tu tu am­i s now b e l n ^ conclaered t o r approva l .

Tour p lan c o n t r o l nunber Ji, N-2*?35 O IK shnuld ce r«ft»rwc«*e In >uur cut&ain!-ca t i on and correspondence concern I ng t h i s p l an .

Sincerely your* .

-!?. tour^ec i * . ^ t o n a l Supervisor I e l d 0p«r«c1ota»

b lease OCS-G 9081 (OPS-3-2) (FILE ROOT) •4 w/Publ lc I n f o . Copy o f the plan (PUBLIC RECORDS) /pPS-3-4

HMoseph:cck:C\ 29/88:poecoi.

« Union Pacific 1 Resources

February 26, 1988

U. S. Department of the Interior Minerals Management Service 1201 Elmwood Park Boulevard New Orleans, Louisiana 70123-2394

Attention: Mr. Daniel J. Bourgeois Regional Supervisor Of f ice of Field erations

RE: Plan of Exploration High Island Area, Block 154 OCS-G 9081 Offshore, Texas

Gentlemen:

In accordance wi th 30 CFR 250.34, attached please f ind eight (8 | copies of Union Pacif ic Resources Company's Plan of Exploration for High Island Area, Block 154. Five (5) of the attached copies contain confidential geological information and are so ident i f ied. The remaining three (3) copies do not contain the confidential data and are ident i f ied for public information release.

Union Pacif ic Resources has tentative plans to start exploration ac t i v i t ies in this Block May 1, 1988.

Yours very t r u l y ,

UNION PACIFIC RESOURCES COMPANY

d</R. Carter, Jr. V ' Regul atory/Envl ronmental Supervisor

JRC/JAr:bna (poeltr) Attachments

Public

PLAN OF EXPLORATION

HIGH ISLAND AREA BLOCK 154

OCS-G 9081

UNION PACIFIC RESOURCES COMPANY

1000 LOUISIANA, SUITE 3000

HOUSTON, TEXAS 77002

FEBRUARY, 1988

TABLE OF CONTENTS

SECTION

Designated Company Contact I

Proposed Type and Seque' i >f A c t i v i t i e s and Approximate

Locat ions of the Explore . Wel ls I I

Structure Map I l l

Shallow D r i l l i n g hVards And

Archaeolog ica l Assessment IV

Desc r i p t i on o f D r i l l i n g Vessel V

L i s t o f D r i l l i n g Mud Add i t i ves VI

Oi l S p i l l Contingency P V I I

Pro jec ted A i r Emissions V I I I

Onshore Support Base F a c i l i t y IX

Guarantee Statement X

NOTE: Enclosed in the Plan of Exp lo ra t ion are CONFIDENTIAL papers. These papers have been stamped PROPRIETARY and are deleted f rom the copies being submit ted f o r Public I n f o r u a t i o n .

SECTION I DESIGNATED COMPANY CONTACT

DESIGNATED COMPANY CONTACT

Any inquiries to this proposed Plan of Exploration should be directed to

J.R. Carter, Jr. Regulatory/ Environmental Supervisor Union Pacific Resources Company 1000 Louisiana, Suite 3000 Houston, Texas 77002

Telephone: (713)654-2552

or

Jodie Connor J. Connor Consulting P. 0. Box 218753 Houston, Texas 77218

Telephone: (713)558-0607

SECTION II PROPOSED TYPE AND SEQUENCE OF ACTIVITIES AND APPROXIMATE LOCATIONS

OF THE EXPLORATORY WELLS

PROPOSED TYPE AND SEQUENCE OF ACTIVITIES

AND APPROXIMATE LOCATIONS OF THE EXPLORATORY WELLS

Union Pacific Resources Coinpany was awarded the High Island Area Block

154 (south 1/2) lease In the OCS Western Gulf of Mexico Oil and Gas

lease offering held in August, 1987.

Seismic work has been performed over the block and results are addressed

In the Shallow Drilling Hazards Assessment section of this Plan.

Five (5) exploratory wells are planned to test the geologic features in

the block. Proposed locations, drilling and completion time, true vertical

depth (TVD) and measured depth (MD) are as follows:

Drilling and

Well No. Proposed Location Completion Time

A SL: 5250' FSL & 5775' FWL 45 days

B SL: 3400' FSL & 6600' FWL 45 days

C SL: 5250' FSL & 5775' FWL 45 days

D SL: 2250' FSL & 5200' FWL 45 days

E SL: 1100' FSL & 2700' FEL 45 days

Onshore support operations should commence approximately seven (7) days

prior to drilling operations. Pending approval of the applicable Federal

Permits, i t is anticipated that the first well will be spudded on or about

Hay 1, 1988, with exploratory operations on the block completed by the

expiration date of the lease, October 31, 1992.

154

A & C D

D

o

B

o

QCS-G-9081

6feor * »vt <*;,: f s. C Si 1,77! t . . . 5 ? M Ft,.

( ?700 f E l UOO »S.

E

o

UNION PACIFIC RESOURCES COMPANY

N PLAN OF EXPLORATION

1 HIGH ISLAND B L K . 154

J O C S - G 9081

Sr Al I | • ?0VQ DAH /

SECTION II I STRUCTURF MAP

SK :v SHALLOW ORILL ING HAZARD! -«?. .\CHAEOLOGICAL ASSESSMENT

£ Eft

S ( l i n * . V DESCRIPTION I f LULLING VESSEL

o o <

I E CD r rn

03 m

S3

DESCRIPTION Of DRILLING VESSEL

The d r i l l i n g n c v \K^ wi l ) be used to d r i l l the v>Vi w i l l be a moden.

cant i leve. jack-up r ig dc stoned for 250' water depths. I t w i l l be equipped

with a l l required safety and pol lut ion control equipment. An equipment

l i s t and specified'ion sketches are included.

coed

^® L ®

2" - 10,000' Hydraulic Operated

Gate Valve

13-5/8" - IO.OOO'" UT Ca:.c ron

Type " l ' " Double v/Pipe Rars top & Blind Ra-A bottor

4" - K'.CCr. v : J : ^ - l i c Operated ''ate Valvt

2" - 10,0001 Manual Gate Valve

@

Cate Valve

13-5/P" - 10,OOC" UT ^ Ca-t-rcn

Type " l 1 " Sinflc v / P i p i Ra i s

E3 i ... » i

SECTION VI LIST OF DRILLING MUD ADDITIVES

DRILLING MUD ADDITIVES

COMMON CHEMICAL OR CHEMICAL TRADE NAME

Aluminum Stearate "AXTAFLO-S" Barite Calcium Carbonate Calcium Chlordie Calcium Oxide Calcium Sulfate Carboxymethjl Cellulose Caustic Potash Caustic Soda Chrome Lignite Chrome Lignosulfonate Drilling Detergent "E-Pal" Ferrochrome Lignosulfonate Gel

Gypsum Lignite Lignosulfonate "Mud Sweep" "MOR-REX" "Shale-Trol" Sapp Soda Ash Sodium Bicarbonate Sodium Carboxymethyl Cellulose Sodium Chloride Sodium Chromate Starch •TX-9010" "TORQ-Trim" "Black Magic" "Black Magic Supermix" Diesel

"Jelflake" MICA "Pipe-Lax" "Wall-Nut" Wood Fibers

P.ESCRIPT ION OF MATERIAL

Aluminum Stearate Nonionic Surfactant Barium Sulfate (BaSo4) Aragonite (CaCo3) Hydrophilite (CaC12) Lime (Quick) Anhydrite (CaS04) Carboxymethyl Cellulose Potassium Hydrate Sodium Hydroxide (NaOH) Chrome Lignite Chrome Lignosulfonate Soap Non-toxic, biodegradable defoamer Derived from wood pulp Sodium montmorillonite, bentonite, attapulgite CaSo4.2H20 Lignite Lignosulfonate Cement Pre-flush Hydroloyzed Cereal solid Organo-aluminum complex Sodium Acid Pyrophosphate Sodium Carbonate NaHC03 Sodium Carbox>methyl Cellulose NaCl NaCr04.10H20 Corn Starch Biodegradable drilling lubricant Biodegradable drilling lubricant Oil base mud cone. Sacked concentrated oil base mud Used to mix certain loss-circula­tion pills Plastic f o i l , shredded cellophane Loss-circulation material Surfactant mixed with diesel Ground walnut shells Loss-circulation material

SECTION VII OIL SPILL CONTINGENCY PLAN

OIL SPILL CONTINGENCY PLAN

Union Pacific Resources Company's Oil Spill Contingency Plan, approved

December 25, 1986, 1s on file with the Minerals Management Service in New

Orleans, Louisiana. The Plan includes (1) notification procedures and a

listing of contact agencies and personnel (2) response procedures for spills

of various sizes, (3) a listing of equipment, (4) responsibilities of the

operator personnel, (5) training procedures, and (6) preventative measures to

minimize spi 11 «• and pollution.

Union Pacific Resources membership in Clean Gulf Associates will make avail­

able the Association's spill cleanup equipment along the Texas and Louisiana

Gulf Coasts. A full inventory of equipment is maintained at CGA operating

bases in Grand Isle, Venice, Cameron and Intracoastal City, Louisiana.

Dependent upon weather conditions and location of boats, this equipment can

be at the drill site location appro>imately 15 miles from Galveston, Texas

within 4 to 6 hours from the time a call is Initiated.

Clean Gulf Associates has 5 types of equipment: (1) fast response open-sea

skimmer, (2) high volume open-sea skimmer, (3) shallow water skimmer,

(4) communication equipment and beach cleanup system, and (5) boat spray

system.

Should their services be required, Peterson Riedel Services, Inc. can

provide additional men, equipment, and materials to handle both major and

minor spills.

SECTION VIII PROJECTED AIR EMISSIONS

PROJECTED AIR EMISSIONS

GENERAL INFORMATION

Location of Fac i l i t y :

Distance Offshore: Name of Rig: Operator:

Contact Person: Well Footage to be Dr i l led in 1988: Well Footage to be Dr i l led in 1989: Date Dr i l l i ng Will Begin:

High Island 154 OCS-G 9081 15 miles Jackup Union Pacific Resources Company 1000 Louisiana, Suite 3000 Houston, Texas 77002 Mr. J . R. Carter, Jr . 32,050' 22,700' May 1, 1988

MAJOR SOURCE (OFFSHORE)

Power used aboard d r i l l i n g vessel, approximate footage d r i l l ed 54750'.*

Emitted SubsTance

CO SO

2 NOx VOC TSP

Projected Emissions Qb s/ day)* * tons/year

T9BB

94 3C

442] 36!

n

6.346 2.019

29.807 2.404 2.115

Projected Emissions (1bs/day|**tons/year

(100) 4.495 (32) 1.430

(469,

iSi 21.111 1.702 1.498

Based on 60 hphr/ft. frcm Table 4-3, "Atmospheric Emissions from Offshore Oil and Gas Development and Production", EPA No. 450/3-77-026, June, 1977.

Emission factors f om Table 3.3.3-1, "Compilation of Air Pollutant Emission Factors", Third Edition, EPA Report Af 42, August, 1977.

PROJECTED AIR EMISSIONS High Island Area Block 154

Continued

MINOR SOURCES (OFFSHORE)*

Including helicopter landing and take-off (10 trips/week); supply and crew boats (7 trips/week each); loading and unloading operations; and incineration of waste paper (average 750 pounds of waste per month).

Emitted Substance

Projected Emissions Projected Emissions (tons^vear) (tons^vear)

CO 1.114 .742 SO .035 .023 2

NOx .219 .145 VOC .106 .071 TSP -048 .032

* Tables 3.2.1-3, 3.2.3-1 and 2.1-1, "Compilation of Air Pollutant Emission Factors", Third Edition, EPA Report AP-42, August, 1977.

TOTAL ALL SOURCES (tons/year)

CO SO NOx VOC TSP ~~ ~~ 2

1988 Major 6.346 2.019 29.807 2.404 2.115 Minor 1.114 _JM> .219 __ 106 .048

TOTAL 7.460 2.054 30.026 2.510 2.163

1989 Major 4.495 1.430 21.111 1.702 1.498 Minor .7,2 .023 .145 .071 .032

TOTAL 5.237 1.453 21.256 1.773 1.530

ONSHORE SOURCES

These should be al'," the same as minor sources unless new facilities a»-e installed at t c •msh -c base. No additional facilities are required or plannr .1 this time.

PROJECTED AIR EMISSIONS High Island Area Block 154

Continued

EMISSION EXEMPTION DETERMINATION

2/3 2/3 For CO: E - 3400 - 3400 (15) - 20,67 tons/year For NOx, VOC, TSP & SO : E = 33.3D - 33.3 (15) = 500 tons/year

2

As per DOl/MMS regulations, this facility is exempt from further air quality review as i t has been determined that its operations will not have a significant adverse environmental impact on air quality.

SECTION IX ONSHORE SUPPORT BASE FACILITY

DESCRIPTION OF ONSHORE SUPPORT BASE FACILITY

Support facilit'.s for >J. Uing operations in High Island Area Block 154

wi l l be located at Galveston. Texas. The existing facility includes

dockage, helicopter landing site, bulk and sack mud additive storage and

loading facilities, and liquid mud mixing and storage facilities. A com­

munications and dispatching base is established and will be manned 24 hours

per day.

SECTION X GUARANTEE STATEMENT

< w

GUARANTEE STATEMENT

In the conduct of the proposed exploratory drilling activities in High

Island Area Block 154, Union Pacific Resources Company guarantees the

following:

1. The best available and safest technologies will be utilized throughout

the project. This includes meeting all applicable requirements for

equipment types, general project layout, safety systems, and equipment

and monitoring systems.

2. All operations will be covered by the MMS approved Oil Spill Contingency

Plan.

3. All applicable federal, state and local requirements regarding emission

and water quality and discharge for the proposed activities, as well as

any other permit conditions will be complied with.