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• Hall-Soustoss Oil Company .stent icn: He* K&ttoy C top 700 Louisiana, Suite ftp Houaton, Texaa 77002

Gentle-Kens

Reference ia .'j*ua to your In i t ia l Plan of Kxploration and aoooKpauying inforaation rweived Septenber 15, 198fi» for j,eae«_0C3-0 6167, Block 195, High Island Area. This plan included the activities proposed for Well A.

In accordant vith 30 CFR 250.33<a), this plan la hereby deeoed submitted and is now b ing considered for approvai.*

Tou;- plan jsogtrol number ia H- V3ft_and ahould be r< ferenoed in your OOSXBUO oe -ion and correspondence ooncoming thla plan*

Sinoereiy yours,

(Orhj. Sgd.) A. Dcv.a!J Giroir

0. «7. Baurseois Regional Supervisor Fi^ld C erationa

bcc: .Lease LKS-G 616 (OPS-3-2) (FILE HOOM) OPS-3-^ w/ Public Info, Copy of the plan

anc: aocoap. info. (PUBLIC REC ms)

WWilliaioson:ock: 09/19/88: poooom

• Office of

P r 0 S , a m Services

s't<c * t! ms '"formation Services

Section

m * i D, Arcam

• . . — a « . ^ . „ „ „ . , _ , RepublicBank Center H A L L - H O U S T O N O I L C O M P A N Y 7 00 Louisiana, Suite 2390

Houston, Texas 77002 {713^ 228-0711

September 14, 1988

Mr. Daniel J . Bourgeois Regional Superv isor , i e l d Operations U.S. Department of the I n t e r i o r Minerals Management S2rv ice 1101 Elmwood Bark Boulevard New Orleans. Louisiana 70123-2394

A t t e n t i o n : FO-2-1

RE: I n i t i a l Exploration Plan OCS-G 6167, Block 195 High Island Area Offshore Texa^

Gentlemen:

Enclosed please f i n d eight (8) copies of the I n i t i a l Exploration Plan with associated Air Quality Review for Lease OCS-G 6167 High Island Area. Five (5) copies of the subject report are f o r "Proprietary" information purposes and three (3) copies contain "Public Information"; a l l copies being marked accordingly.

Excluded from the Public Information copies are certain geologic discussions, depth of wells and structure map.

Hall-Houston O i l Compai y proposes d r i l l i n g operations t o commence on the "A" location by September 28, 1988. Lease OCS-G 6167 i s due to expire September 30, 1988, therefore your e a r l i e s t approval would be greatly appreciated.

Should f u r t h e r information be required, please contact the undersigned.

Sincerely,

f U t W ? Kathy Camp 0 Manager, Regulatoiy Affa .rs

KC enclosures

"p"W/ft Infonnation"

INITIAL EXPLORATION PLAN

HIGH ISL ANI. REA, BLOCK 195

OCS-G 6167

Hall-Houston O i l Company (Hall-Houston) as Operator of the subject block, submits t h i s proposed I n i t i a l E x p l oration Plan i n accordance w i t h the regu l a t i o n s contained w i t h i n T i t l e 3 0 CFR 250.33, as f o l l o w s :

1. Schedule of Ope-acions

I n order t o delineate the hydrocarbon p o t e n t i a l and l i m i ­t a t i o n s of t h i s block, Hall-Houston proposes t o d r i l l one (1) we l l i n High I s l a n d Block 1">5 from a surface l o c a t i o n i n High Island Block 196. As shov.. on the enclosed l o c a t i o n p l a t , t h i s surface l o c a t i o n i s necessary due t o the fairway covering a l l of High I s l a n d Block 195. A r i g h t of use and easement i s pr e s e n t l y being reviewed.

Lease OCS-G 6167 i s due t o expire September 30, 1988. Hall-Houston O i l Company a n t i c i p a t e s spudding Location "A" on September 28, 1988, subject t o the approval of t h i s E xploration Plan and issuance of the required Permit t o D r i l ] . I t should take approximately 45 days t o d r i l l Well A.

Add i t i o n a l e x p l o r a t o r y d r i l l i n g must be predicated upon the need t o f u r t h e r define s t r u c t u i s and/or r e s e r v o i r l i m i t a ­t i o n s . I n a d d i t i o n t o the d r i l l i n g of the w e l l s , other a c t i v i t i e s wnich may be conducted under t h i s Plan would be the s e t t i n g of a w e l l p r o t e c t o r s t r u c t u r e , a seafloor template, a v e l o c i t y survey i n a wellbore. and s o i l borings.

Transportation from the « s t i n g onshore f a c i l i t i e s i n Galveston, Texas, to the block w i l l i n v o l v e the use of one supply boat making seven (7) t r i p s per week, one crew boat making t e n (10) t r i p s per week and one h e l i c o p t e r making one (1) t r i p per week.

2. D r i l l i n g Equipment

The proposed w e l l w i l l be d r i l l e d w i t h a jackup d r i l l i n g r i g . When a r i g i s selected, the r i g specs w i l l be made a pa r t of the A p p l i c a t i o n f o r Permit t o D r i l l . T y p i c a l d i v e r t e r and EOP schematics are enclosed herewith as Attachment I .

I n i t i a l E x p l o r a t i o n Plan High I s l a n d Block 195 Hall-Houston O i l Company

Page 2

Safety f e a t u r e s w i l l elude w e l l c o n t r o l and blowout preven­t i o n equipment as described i n 30 CFR 250.50. The appro­p r i a t e l i f e r a f t s , l i f e j a c k e t s , r i n g buoys, etc., as pre­s c r i b e d by the U.S. Coast Guard, w i l l be maintained on the f a c i l i t y at a l l times.

3 . Location of Wells

The approximate l o c a t i o n of the w e l l proposed i n t h i s Plan as w e l l as the proposed depth, are shown on the accompanying Location P l a t , and enclosed herewith as Attachment I I , are described as f o l l o w s :

A Surface: 640' FSL/ 350' FWL of Blk 196 PBHL:

High I s l a n d Blocks 195 & 196 are lo c a t e d approximately 25 miles south of Galvrston, Texas. The water depth i n Block 196 i s approximately 52 f e e t .

4. Geological/Geophysical I n f o r m a t i o n

A s t r u c t u r e map which i l l u s t r a t e s Hall-Houston's current i n t e r p r e t a t i o n of High I s l a n d Area, Block 19 5 i s enclosed herewith as Attachment I I I .

A Shallow D r i l l i n g Hazards Report covering the surface l o c a t i o n of the w e l l proposed i n t h i s Plan i s enclosed herewith as Attachment IV.

5. Archaeological I n f o r m a t i o n

An Archaeological Survey was re q u i r e d w i t h the Shallow Hazards Survey Report f o r High I s l a n d Block 195. Results of the Hazards Survey Report i n d i c a t e t h e r e are no magnetic anomalies w i t h i n 500 f e e t of proposed surface l o c a t i o n .

I n i t i a l E x p l o r a t i o n Plan High I s l a n d Block 195 Hall-Houston O i l Company

Page 3

6. hore F a c i l i t i e s

The s e r v i c e base f o r t h i s area w i l l be Galveston, Texas. This w i l l be an established f a c i l i t y t h a t w i l l r equire no m o d i f i c a t i o n s .

7. P o l l u t i o n Prevention Inform .tion

P o l l u t i o n prevention c o n t r o l measures w i l l be i n accorc.mce w i t h 30 CFR 250.40. Hall-Houston has on f i l e w i t h the MMS an approved O i l S p i l l Contingency Plan f o r the Gulf of Mexico. I n the event of a s p i l l , t h i s Plan w i l l be actuated. H a l l -Houston i s a member of Clean Gulf Associates which provides s p i l l containmer equipment and clean-up equipment at s i x H a l l i b u r t o n Service Bases on the Gulf Coast: Galveston and Rockport i n Texas; Grand I s l e , Venice, Cameron and I n t r a c o a s t a l C i t y i n Louisiana. I f a s p i l l should occur from the proposed l o c a t i o n s , the equipment l o c a t e d a t Galveston, Texas, would be u t i l i z e d f i r s t , w i t h a d d i t i o n a l equipment moved i n from other bases, i f i.ecessary. Fast boat response w i t h o i l boom, skimmers, pump and storage tanks would r e q u i r e approximately 4-6 hours, i n c l u d i n g p r e p a r a t i o n time. A heavy equipment system would require approx_mately 20-28 hours, i n c l u d i n g s i x hours preparation time. D r i l l c u t t i n g s and excess d r i l l i n g f l u i d s w i l l be disposed of i n accordance w i t h a p p l i c a b l e environmental r e g u l a t i o n s . The d r i l l i n g f l u i d components and a d d i t i v e s t o be used are enclosed herewith as Attachment V.

Enclosed are copies of the f o l l o w i n g i n f o r m a t i o n :

ATTACHMENT NO.

I I I

I I I IV V

Rig I n f o r m a t i o n Location Plats (Well & V i c i n i t y ) S tructure Map Shallow D r i l l i n g Hazard Report L i s t of Mud Components and A d d i t i v e s

Also enclosed i s the A i r Qual i t y Review.

EQUIPMENT LIST

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I . ' . U ' ' I AM I'fA I f f I '» ! . ' L M I I VI .

OCS-G 6167 195

FAIRWAY

"Public Information"

196 OCS-G 6160

FAIRWAY

PSL: 850'FWL 640'FSL

MAT.J.-HOUSTON OH. COMPANY

HIGH ISLAND AREA BLOCK 19 5

1" = 2000' 9-9-80

Comeron

DRILLING MUD COMPONENTS

COMMON CHEMICAL OR CHEMICAL TRADE NAME

Aluminum Stearate "AXTAFLO-S" Barite Calcium Carbonate Calcium Chlordie Calcium Oxide Calcium Suifate Carboxymethyl 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

DESCRIPTION OF MATERIAL

Aluminum Stearate Nonionic Surfactant Barium Sulfate (BaSo4) Artgonite (CaCo3) Hyorophilite (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 rcontmorilinnite, bentonite, attapulgite CaSo4.2H20 Ligni te Lignosulfonate Cement Pre-flush Hydroloyzed Cereal solid Organo-aluminum complex Sodium Acid Pyrophosphate Sodium Carbonate NaHC03 Sodium Carboxymethyl Cellulose NaCI NaCr04.10H20 Corn Starch Biodegradable d r i l l i n g lubr icant Biodegradable d r i l l i n g lubr icant Oil base mud cone. Sacked concentrated o i l base mud Used t o mix cer ta in l oss -c i r cu la ­t ion p i l l s P las t i c f o i l , shredded cellopnane Loss-c i rcu lat ion material Surfactant mixed with diesel Ground walnut shel ls Loss-c i rcu lat ion material

PROJECTED AIR EMISSION SCHEDULE FOR EXPLORATION PROJECT

GENERAL INFORMATION

Distance Offshore: Name of Rig: Operator:

Contact Person: Commerce D r i l ' i n g :

Location o f F a c i l i t y : High I s l a n d Elcck 195 OCS-G 6167 25 miles Jackup Ha11-Houston O i l Company 700 Louisiana, Suite 2390 Houston, Texas 77002 Kathy Camp September 28, 1988

MAJOR SOURCE (OTFSHORE)

Power used aboard d r i l l i n g vessel; approximate foo\_age d r i l l e d

* Basec. on 60 h p h r / f t . from Table 4-3, "Atmospheric Emissions from Offshore O i l and Gas Development and Production", EPA No. 450/3-77-026, June, 1977.

** Emission f a c t o r s from Table 3.3.3-1, "Compilation of A i r P o l l u t a n t Emission Factors", T h i r d E d i t i o n , EPA Report AP-42, August, 1977.

17841' .*

Emitted Substance

Projected Emissions (lbs/day**)tons/year

1988 CO S02 NOX VOC TSP

(157) 3.533 (50) 1.124

(737) 16.592 (59) 1.338 (52) 1.177

Projected A i r Emissions Hall-Houston O i l Company I _gh I s l a n d Block 195 Page 2

MINOR SOURCFS (OFFSHORE)*

Including h e l i c o p t e r landing and ta k e - o f f ( 1 trip/week); supply boat (7 tr i p s / w e e k ) ; crew boat (10 t r i p s / w e e k ) ; loading and unloading operations?, and i n c i n e r a t i o n of waste paper (average 750 pounds c f w?s-/.3 per month) .

Ernj.tted Projected Err ssions Substance (tons/y' tar)

1988

CO .043 S02 .001 NOX .048 ?OC .006 ISP .002

Tables 3.2.1-3, 3.2.3-1 and 2.1-1, "Compilation of A i i P o l l u t a n t Emission Factors", T h i r d E d i t i o n , EPA Report AP-42, August, 1977.

TOTAL ALL SOURCES (tons/year)

1988 CC S02 NOX VOC TSP

Major 3.533 1.124 16.592 1.338 1.377 Minor .043 .001 .048 .006 .002

TOTAL 3.576 1.125 iC.640 1.344 1.179

ONSHORE SOURCES

These should be about the came as minor sources unless ntw f a c i l i t i e s are i n s t a l l e d a t the onshore base. No ar'-.j. t i o n r.l f a c i l i t i e * are required or planned at t h i s time.

EMISSION EXEMPTION I^TERMINATION 2/3 2/3

fc'or CO: R = 34C ) ~ 3400(25) = 29,070 tons/year P ;>r NOx, \TOC, TSP & S02: E = 33.3D = 33.3(25) = 833 tons/year

As rer DOI/MMS r e g u l a t i o n s , t h i s f a c i l i t y i s exempt from f u r t h e r a i r q u a l i t y review as i t has been determined t h a t i t s operations w i l l not have a s i g n i f i c a n t adverse environmental impact on a i r qua'.I i t y .