Xn Reply Kefer Tot K**-1 f*JH eeim 1 * . U H

Kooh Exploration Camaajiy attentlmnt Mr. tf. tm Foleoa 650 foydraj Street Sw Orleans, Louisiana 70156

Gentlemen!

Reference Le &&de to your Initial Plan or ExplnraUom an* aoooapenylns ir-"creation received January 31 % 1989 f for ' J\\WW flflhf f*47 ir* ^llfi L*ockA 188 and 189, respectively, taat Cameron area. Thie plan include* tne activities propoaed for Well* A through BU

In aeoora-soc with 30 CfB 250.33(e), thie plan la hereby deemed submitted ar J is now being oofiaidcreC for approval.

Yo-r plan f a j r a j ntmftT tr M - * ^ 0 should be reference is yeor oeoam4-cation aad correspondenee concerning thie plan*

Sincerely yours,

(Ot g. Sgd.) Wi11iam H. Martin • for

Dm 4i aourgeolo Bagioeal Supervisor Field Operationa

boo: Leaae OCS-G 8417 (OPS-3-2) (FILE BOOH) Leaae OCS-G 8418 (OPS-3-2) (FILE ROOM) QPS-S-** w/ Pr&llo Info. Copy of the plan • • and accomp. info. (PtHLXC RECORDS)

ABGobert:cck- 2/06/̂ 9:

Office o

F f * 16 J989

MK O C H EXPLORATION COMPANY

Roplyto:

January 31, 1989

2050 POYDRAS CENTER 650 PCYOftAS STREET NEW ORLEANS. LOUISIANA 70130 PH. 504-522-9651

Mr. Daniel J . Bourgeois Reqional Supervisor Office of Field Operations U. S. Department of the Interior Minerals Management Service 1201 Elmwood Park Boulevard New Orleans, Louisiana 70123-2394

RE: In i t i a l Exploration Plan OCS-G 8417/8418, Blocks 188/189 East Cameron Area Offshore, Louisiana

Gentlemen: In accordance with the provisions of Tit le 30 CFR 250.33, Koch Exploration Company hereby submits for your review and approval nine (9) copies of an In i t ia l Plan of Exploration for Leases OCS-G 8417/8418, Blocks 188/189, East Cameron Area, Offshore Louisiana. Five (5) copies are "Proprietary Information" and four (4) copies are "Public Information". Excluded from the Public Information copies are certain geologic discussions, depths of wells and structure map.

Koch Exploration Coirpany anticipates commencing act iv i t ies under this proposed I n i t i a l Plan of Exploration on March 15, 1989.

Should additional information be required, please contact Mr. Clay P i l i e at (504) 522-9521.

Sincerely,

W. T. Folsom Gulf Coast Operations Manager

WTF/JO/me Enclosures

U Public Information"

EXECUTSVe OFFICES, WICHITA. KANSAS 67201 POST OFFICE BOX 2256 TELEPHONE 316-632-6600

KOCH EXPLORATION COMPANY

INITIAL PLAN OF EXPLORATION

EAST CAMERON AREA, BLOCKS 138/189

OCS-6 8417/8418

Koch Exploration Conpany (Koch) as designated Operator of the subject blocks, submits this proposed Initial Plan of Exploration Ir accordance with the reaulations contained within Title 30 CFR 250.33 ar.d more specifically defined in the Minerals Management Service letter to Lessee's and Operators dated October 12, 1988.

SCHEDULE OF OPERATIONS

Under this Plan of Exploration, Koch proposes to dri l l eight (8) wells from two (2) surface locations. The first well will be spud on or about March 15, 1989, subject to the approval of this Plan of Exploration and issuance of the required Permit to Dri l l . Each well will take approximately 25 days to dr i l l . Spud dates for the remaining wells have not been determined; however, exploratory dril l ing should be completed by June 30, 1991.

It should be emphasized that this schedule is tentative in the meaning of 30 CFR 250.33-1. Additional exploratory drilling must be predicated upon the need to further define the structures an J /or reservoir limitations.

In addition to the drilling of these wells, other activities which may be conducted under this Plan would be the setting of a seafloor template, the setting of a well protector structure, the running of a velocity survey in a wellbore, and the collection of soil borings.

DESCRIPTION OF DRILLING UNIT

The proposed wells will be drilled with a typical jackup drilling rig. When a rig is selected, the rig specifications will be made a part of the Applica­tions for Permit to Drill. Typical diverter and BOP schematics are enclosed as Attachment A.

Safety features will Include • trol and blowout prevention equipment as described in 30 CFR 250.50. opriate life rafts, life jackets, ring buoys, etc., as prescribed by . Coast Guard will be maintained on the facility at all times.

WELL LOCATIONS The approximate locations of the wells proposed in addition to the proposed depths, are shown on the accompanying Location Plat, enclosed herewith as Attachment B, and described as follows:

WATER DEPTH

East Cameron Block 188

A. 1500' FSL & 5530' FEL 94'

B. 1500' FSL & 5530' FEL 94'

C. 1500' FSL & 5530' FEL 94'

East Cameron Block 189

0. 820' FSL & 5960' FWL 90'

E. 820' FSL & 5960' FWL 90'

F. 820' FSL & 5960' FWL 90'

G. 820' FSL & 5960' FWL 90'

H. 820' CSL & 5960' FWL 90'

STRUCTURE MAP

A structure map drawn to the top of each prospective hydrocarbon accumulation showing the surface and bottom hole locations of the proposed wells Is enclosed as Attachment C.

BATHYMETRY MAP

A bathymetry map showing the surface locations of the proposed wells Is enclosed as Attachment 0.

SHALLOW HAZARDS

Information on geological hazards and surface locations relative to anomalies 1s enclosed as Attachment E.

OIL SPILL CONTINGENCY PLAN

All dr i l l ing, construction and production operations shall be performed In accordance with Industry standards to prevent pollution of ths environment.

Koch's 011 Spill Contingency Plan has been approved by the MMS. This plan designates an 011 Spill Team consisting of Koch's personnel and contract personnel. This team's duties are to eliminate the source of any spill, remove all sources of possible ignition, deploy the most reliable means of available transportation to monitor the movement of a slick, and contain and remove the slick If possible.

Koch 1s a member of Clean Gulf Associates (CGA). The CGA has two permanent equipment bases in Texas, at Rockport and Galveston, and four bases in Louisiana, at Venice, Grand Isle, Intracoastal City, and Cameron. Each base is equipped with fast response skimmers and there is a barge mounted high volume open sea skimmer based at Grand Isle, Louisiana. In addition to providing equipment, the CGA also supplies advisors for clean-up operations. Equipment available from CGA and the base it is located at is listed in the CGA Manual, Volume I, Section I I I .

Estimated response time for a spill In East Cameron 188/189 could vary from 12 to 36 hours. Equipment located in Cameron, Louisiana would be utilized first with additional equipment transported from the nearest equipment base on-site as required.

In the event a spill occurs from East Cameron 188/189, our Company has

?rojected trajectory of a spill utilizing Information 1n the Environmental mpact Statement (EIS) for OCS Lease Sales 118 and 122.

The EIS contains oil spill trajectory simulations using seasonal surface currents coupled with wind data, adjusted every 3 hours for 30 days or until a target is contacted.

Hypothetical spill trajectories were simulated for each of the potential launch sites across the entire Gulf. These simulations presume 500 spills occurring 1n each of the four seasons of the year. The results 1n the EIS were presented as probabilities that an oil spill beginning from a particular launch site would contact a certain land segment within 3 10, or 30 days. Utilizing the summary of the trajectory analysis (for 10 days] as presented on pages IV-40 through IV-45, the probable projected land fall of an oil spill 1s as follows. Also listed is the CGA Map Number corresponding to the land segment which will be utilized to determine environmentally sensitive areas that may be affected by a spill.

AREA LANO SEGMENT CONTACT % CGA MAP NUMBER

East Cameron Galveston, Tx. et.al. 1% "x. Map No. 3 & 4 188/189

Cameron, La. 1% La. Map 5

Section V, Volume II of the CGA Manual containinq as listed above, also includes containment/cleanup protection respond > for the sensitive areas.

Section VI, Volume II of the CGA Operations Mama, picts the protection response modes that are applicable for oil spill cleanup operations. Each response mode Is schematically represented to show optimum deployment and operation of the equipment In areas of environmental concern. Implementation

of the suggested procedures assures the most effective use of the equipment and »111 result In reduced adverse impact of the oil spills on the environment. Supervisory personnel have the option to modify the deployment and operation of equipment to more effectively respond to site-specific circumstances.

NEW OR UNUSUAL TECHNOLOGY

No new techniques or unusual technology will be required for these operations.

LEASE STIPULATIONS

Lease Stipulation No. 1, cultural Resource Report, 1s attached to these leases and In accordance with the stipulation, a prehistoric site survey has been conducted. The Cultural Resource Report, prepared by John E. Chance & Associates was submitted to the MMS under separate cover.

DISCHARGES All disc arges associated with the drilling of the proposed wells will be In accordance with the Environmental Protection Agency NPDES General Permit for the Gulf of Mexico.

The permittee is authorized by the General Permit to discharge the effluents listed in the following table. Such discharges will be limited and monitored by the permittee as specified below:

01scharge and Monitoring Requi rements Effluent 01scharge Measurement sample Recorded Characteristic Limitation Frequency Type/Method Values(s)

Free 011 No Free 011 Once/day 1/ Visual/Sheen on receiving water

Number of Oays Sheen Observed

Once/month Once/end of well 4/

Grab Grab

96-hour LC50 96-hour LC50

30,000 ppm monthly average minimum 3/

Once/Month Grab 96-hour LC50

Discharge Rate

1000 bbls./hr. Once/hour 1/ Estimate Maximum Hourly Rate

Discharge Rate for Controlled Discharge Rate

(see Figure 1) Once/hour 1/ Measure Maximum Hourly Rate

Areas 5/

Oil Content

Volume (bbls.)

Once/day 1/ Grab/Report 6/ Percent 011 TJ

Once/month Estimate Kthly Total 7/

1/ When discharging; discharge is authorized only during times when visual sheen observation 1s possible for muds to which any oil has been added to the mud system for any reason (unless an alternative test procedure has been approved).

The following effluents must be monitored by observation once/day during daylight hours and if sheen Is observed it must be noted.

Oeck Drainage Uncontaminated Ballast Water Well Treatment Fluids Uncontaminated Bilge Water Completion Fluids Mud, Cuttings \ Cement 9 ML Workover Fluids Uncontaminated Seawater Desal inization Unit Discharge Boiler Blowdown Blowout Preventer Fluid Source Water and Sand

2/ Suspended particulate phase with Mysldopsis bahla following approved test method. The sample shall be taken beneath the shale shaker.

3/ Under certain circumstances an alternative toxicity limitation may be requested from the appropriate Regional Administrator.

4/ Sample shall be taken when maximum well depth is reached.

5/ No discharge of priority pollutants except in trace amounts. Information on the specific chemical composition shall be recorded, but not reported unless requested by EPA.

6/ Percent oil shall be recorded for the same drilling fluid as monitored for visual sheen.

7/ This information shall be recorded, but not reported unless otherwise requested by EPA.

8/ Monitoring shall be accomplished during daylight by visual observation of the surface of the receiving water in the vicinity of sanitary and domestic waste outfalls. Observations shall be made following etther the morning or mid-day meals and at a time during daylight and maximum estimated discharge.

Discharges will be free of oil and will be in compliance with and monitored as required by EPA NPDES General Permit (GMG 280000) In accordance with 40 CFR 122-6. Any oil contaminated mud will be transported to shore for proper disposal.

A discussion of the quantity, rates of discharge and composition of solid and liquid wastes is enclosed as Attachments F and 6.

HYDROGEN SULFIDE

This area Is not known to contain H2S

COASTAL ZONE CONSISTENCY

A Certificate of Coastal Zone Consistency is enclosed as Attachment H.

PROJECTED EMISSIONS

Projected emissions are enclosed as Attachment I.

ENVIRONMENTAL INFORMATION

An Environmental Report is enclosed as Attachment J .

ONSHORE BASE Koch will uti l ize existing onshore facilities located in Cameron, Louisiana. This will serve as port or debarkation for supplies and crews. No onshore expansion or construction Is anticipated with respect to this activity. East Cameron 188/189 are located approximately 60 miles south of the Louisiana coastline. A map showing the location of Blocks 188 and 189 relative to the shoreline and onshore base 1s enclosed as Attachment K. The Cameron base Is capable of providing the services necessary for the proposed exploration activities. It has 24-hour service, a radio tower with phone patch, dock space, equipment and supply storage base, drinking and drill water, etc. During exploration activities one supply boat will be making six trips per week, and one helicopter will be making seven trips per week to Blocks 188/189.

The onshore activities associated with East Cameron 188/189 should not result in any Increase in the size and number of onshore support and storage facilities or land and personnel requirements.

AUTHORIZED REPRESENTATIVE

Inquiries regarding this plan may be made to the following authorized representative of Koch Exploration Company:

Mr. Clay Pll le Koch Exploration Company 650 Poydras, Suite 2050 New Orleans. Louisiana 70130 (504) 522-9521

LIST OF ATTACHMENTS

A R1g Schematics B Location of Well C Structure Map D Bathymetry Map E Shallow Hazards Analysis F 01 scharge Rates G Nud Components H Coastal Zone Management Cert i f icat i I Projected Emissions J Environmental Report K Vicinity Map

, ATTACHMENT A (

BLOVvOUT PREVENTEh STACK WITH A

HYDRIL DIVERTER

Refer lo foUowing page for description of individual Hems of this assembly.

Y« 64,839.040'

KOCH

OCS- 6-84/8

o o o

• o o o 00

I I x

189

• PROP SURF LOC. 8 2 0 FSL

S 9 6 0 ' F W L

KOCH OCS-G-8417

CO I t o 00 tn

N

II

X

198

PHOP SURF. LOC 1500 5530

^ S L 7 * FEL J

G

iD

o O

<D

IO

o

I I

X

Y» 50,08 0.992 M 1

ATTACHMENT "B1

KOCH EXPLORATION COMPANY

EAST CAMERON 168 8 189

LOCATION MAP

f = 3 0 0 0 ' f- i

LEGEND DENOTES SHOT POINT & SHOT POINT No.

ATTACHMENT "D1

— - ® DENOTES LINE No. 8 LINE DIRECTION

mmm DENOTES BOTTOM SEDIMENT CHANGE • • • • (INCREASED SAND S SHELL CONTENT)

ZERO DATUM • SEA LEVEL

CONTOUR INTERVAL • I FOOT

*OC* E*PLO«AT»ON COMPANY

BATHYMETRY MAP

BLOCKS 188 8 189

OCS-G-8417 6 0CS-6-84I8 .

EAST CAMERON AREA 2

SEPTEMBER 1986 <0

ENCLOSURE No.l j f t

0> J0M» $ Choftct a Astooores. lux O

»5

.60 .S3 .50

189 OCS-0-84/1

2<J JSO . / ^ o i— »— • * / f—• • • »

-«>

t :̂

C «OCH EXPLORATION COMPANY

BATHYMETRY MAP

BLOCKS 188 8 189

OCS-G-8417 8 OCS-G-8

EAST CAMERON AREA

SEPTEMBER 19*6

ENCLOSURE iMo. I

£ Chance M at toe ions ftc

aa

LSGjNf r

—JL— DENOTES SHOT KNHl" 8 SHOT lOiNT No.

—-(£, OENOTtS LIN* No. 8 UNE OIPEC^ON

OCNOTES BOTTOM SEDIMENT CHANG K

. <NX*CASSD SAND a SHELL CONTENT »

ZERO DATUM • SEA ISVCL

CONTCJR INTERVAL • I FOOT

ATTACHMENT "D"

ATTACHMENT G

DRILL INC HUD COMPONENTS

COMMON CHEMICAL OR CHEMICAL TRADE NAME

Aluminum Stearate "AXTAFLO-S" Barite Calcium Carbon*v Calcium Chlordie Calcium Oxide Calcium Sulfate Carboxymethyl Cellulose Caustic Potash Caustic Soda Chrome Lignite Chrome Lignosul fo;.ate Drilling Detergent •E-Pel-ferrochrome Lignosulfonate Gel

Gypsum Lignite Lignosulfonate "Mud Sweep" •NOR-REX" •Shale-Trol" Sapp Soda Ash Sodium dicarbonate tad*u& Carboxymethyl Cellulose Sodi'iv Chloride Solium Chrornate Starch "TX-3C10" •T0RQ-Tr1m" "Blar* Magic" •Black Magic Super-mix" Diesel

•Jelflake" KICA "Pipe-Lax" •Wall-Hut-Wool Fibers

DESCRIPTION OF MATESJAL

Aluminum Stearate Nonionic Surfactant Barium Sulfate BaSo4) Aragonite (CaCo: ) Hydrophilite (CaC12) L*me (Ouick) Anhydrite (CaS04) CarboxymetNyl Cel1ulose Potassiur.' ciyorite Sodium Hydroxide (NaOH) Chrome Lignite Chrome Lignosulfonate Soap Non-toxic, biodegradable defoarr.tr Derived from wood pulp Sodium montmo< -!lonite, bentonite, attapulgite CaSo4.2ri?Q lignite Lignosulfonate Cement Pre fli»'#h Hydro] uyzed Cereal solid Organo-alumlnum complex Sodium Arid Pyrophosphate Sodium Carbonate NiHC03 Sodium Carboxymethyl Cellulose NaCl NaCr04.10H20 Com Starch Biodegradable drilling 'ufcricant Biodegradable drilling lubricant 011 base mud cone. Sacked concentrated oil base mud Used to mix certain loss-circula­tion pi l ls Plastic foi l , shredded cellophane Loss-circulation material Surfactant mixed with diesel Ground walnut shells Loss-circulation material

ATTACHMENT H

COASTAL ZONE MANAGEMENT

CONSISTENCY CERTIFICATION

PLAN OF EXPLORATION

EAST CAMERON 38/189

OCS-6 8417/8418

The proposed activities described in detail in thi< Plan comply with Louisiana's approved Coastal Zone Management Program and will be conducted in a manner consistent with such Program.

Arrangements have been made with the State Times in Baton Rouge, LjMsiana to publish a legal notice no later than February 14, 1989.

Koch Exploration Company

Lessee or operator

Certifying Official

OaTe

P.O. Box 218753 Houston, Texas 77218 713-558-0607

ATTACHMENT I

PROJECTED AIR EMISSION SCHEDULE FOR EXPLORATION PROJECT

GENERAL INFORMATION

Location of Facility:

Distance Offshore: Name of Rig/Platform: Operator:

Contact Person: Total Well Footage to be Drilled Date Drilling Will Begin:

East Cameron 188/189 OCS-G 8417/8418 60 miles Jack-up Koch Exploration Company 650 Poydras, Suite 2050 New Orleans, Louisiana 70130 Mr. Clay Pilie 73300' March 15, 1989

MAJOR SOURCE (OFFSHORE)

Power used aboard drilling vessel; approximate footage drilled 73300'.*

Emitted Substance

CO SO 2

NOx VOC TSP

Projected Emissions tons/vear

(145) (46)

(679 ( 5 5

48

14.51 4.62

67.90 5.48 4.82

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

Emission factors from Table 3.3.3-1, "Compilation of Air Pollutant Emission Factors:, EPA Report AP-42, August, 1977.

Projected Air Eni$$ions Koch Exploration Company East Cameron 188/189

Page 2

MINOR SOURCES (OFFSHORE)

Including supply boats (6 trips/week); helicopter (7 trips/week); loading and unloading operations; and incineration of waste paper (average /50 pounds of waste per month).

Projected Emissions (tons/ye<

Substance T9oT Emitted (tons/year)

CO 1.17 SO .04 2

NOX .19 VOC .11 TSP .05

* Tables 3.2.1-3, 3.2.3-1, and 2d, "Compilation of Air Pollutant Emission Factors", Third Edition, EPA Report AP-42, August, 1977.

TOTAL ALL SOURCES (TONS/YEAR)

1989 CO SO ~~2

NOx VOC TSP

Major 14.51 4.62 67.90 5.48 4.82 Minor 1.17 .04 .19 .11 .05 Total 15.58 47ol> 68.09 5759 0 7

ONSHORE SOURCES

These should be about the same as minor sources unless new facilities are installed at the onshore base* No additional facilities are required or planned at this time.

EMISSION EXEMPTION DETERMINATION

2/3 2/3 For CO: E - 3400D - 3400 (60) - 52,109 tons/year For NOx, VOC, TSP & SO : E - 33.3D - 33.3 (60) - 1998 tons/year

2

As per DOI/MMS regulations, this facility Is exempt from further air quality review as It has been determined that Its operations will not have significant adverse environmental impact on air quality.

ATTACHMENT I

,11 MAMUPf AjSAt

C

MAIN DECK PLAN

PLATFORM LOWER OECK

ATTACHMENT J

ENVIRONMENTAL REPORT

FEDERAL LEASES OCS-G 8417/8418

EAST CAMERON AREA BLOCKS 188/189

OFFSHORE, LOUISIANA

THE FOLLOWING ENVIRONMENTAL REPORT WAS PREPARED BY J. CONNOR CONSULTING FOR KOCH EXPLORATION COMPANY FOR COASTAL ZONE CONSISTENCY DETERMINATION BY THE STATE OF LOUISIANA ON OPERATIONS PROPOSED TO BE CONDUCTED IN THE PLAN OF EXPLORATION FOR LEASES OCS-G 8417/8418. FOR INQUIRIES REGARDING THIS REPORT PLEASE CONTACT:

KOCH EXPLORATION COMPANY

605 POYDRAS, SUITE 2050

NEW ORLEANS, LOUISIANA 70130

ATTENTION: MR. CLAY PILIE

JANUARY, 1989

TABLE QF CONTENTS

TITLE PAGE 1

TABLE OF CONTENTS 11

I. DESCRIPTION OF PROPOSED ACTION 1

A. DESCRIPTION OF PROPOSED TRAVEL MOOES, ROUTES ANO 1 FREQUENCY

B. ONSHORE SUPPORT SYSTEMS 1 C. NEW OR UNUSUAL TECHNOLOGY 1 D. VICINITY MAP 1 E. PROPOSED MEANS TO TRANSPORT OIL AND GAS TO SHORE 1

ROUTES, QUANTITIES

I I . DESCRIPTION OF AFFECTED ENVIRONMENT 2

A. COMMERCIAL FISHING 2 B. SHIPPING 2 C. PLEASURE BOATING, SPORT FISHING AND RECREATION 3 D. POTENTIAL OR KNOWN CULTURAL RESOURCES 4 E. ECOLOGICALLY SENSITIVE FEATURES 4 F. PIPELINES AND CABLES 5 G. OTHER MINERAL USES 5 H. OCEAN DUMPING 5 I. ENDANGERED OR THREATENED SPECIES AND CRITICAL 6

HABITAT

I I I . UNAVOIDABLE ADVERSE ENVIRONMENTAL EFFECTS 6

A. WATER QUALITY 6 B. EFFECTS ON MARINE ORGANISMS 7 C. WETLANDS AND BEACH 7 D. AIR QUALITY 7 E. COMMERCIAL FISHING 7 F. SHIP NAVIGATION 8 G. CULTURAL RESOURCES 8

H. RECREATION ANO AESTHETIC VALUES 8

IV. SUMMARY 8

REFERENCES 10

- i l -

I. DESCRIPTION OF PROPOSED ACTION

Koch Exploration Company (Koch) proposes to conduct exploration activities in East Cameron Blocks 188/189, OCS-G 8417/8418.

As proposed, the Exploration Plan for East Cameron 188/idS Includes the drilling of eight wells from two surface locations.

,«. this time, the planned commencement date for exploratory activities is March 15, 1989.

A. DESCRIPTION OF PROPOSED TRAVEL MOOES, ROUTES AND FREQUENCY

Boats and helicopters will be dispatched from a support base located in Cameron, Louisiana. The boats will normally move to the blocks via the most direct route from Cameron, Louisiana. Following is an estimate of boat and helicopter trips to the proposed operations.

B. ONSHORE SUPPOR1 ?ASE

The nrooosed activities will utilize a support base located at Cameron, *. This base provides 24-hour service, a radio tower with phone k space, office space, parking lot, equipment and supply storage king and drill water, etc. The proposed exploratory activities

,j maintain this base at its present level of activity. No ^f the physical facilities is expected to result from the work

planned in conjunction with the blocks.

C. NEW OR UNUSUAL TECHNOLOGY

No new techniques or unusual technology will be required for these operations.

D. VICINITY MAP

East Cameron 188/189 are located approximately 60 mile; > of the Louisiana coastline. See Attachment K.

E. PROPOSED MEANS TO TRANSPORT OIL AND GAS TO SHORE, ROu.c QUANTITIES

Producible hydrocarbons wi1" transported to shore through connections with pipelines already in place ^ :r near East Cameron 188/189.

Drilling Operations

6 trips per week 7 trips per week

II. DESCRIPTION OF AFFECTED ENVIRONMENT

A. COMMERCIAL FISHING

The Gulf of Mexico is the single most important area for fisheries production in the Unlt?d States. In 1985, the total landings of all fisheries in the Gulf was acout 2.4 billion pounds, valued at $596 million dockside, and represented about 38% of the total United States landings by pounds and 26% by value. In 1985, the top four U.S. ports 1n quantity of commercial fishery la.dings were Cameron, Louisiana; Pascagoula-Moss Point, Mississippi; and Dulac-Chauvln and Empire-Venice, Louisiana.

The Gulf shrimp fishery represents the single most valuable fishery in the United States with landings (heads removed; averaging approximately 230 million lbs/yr. The major shrimp species include brown, white, and pink shrimp. In 1981 production reached almost 270 million pounds worth over $401 million dockside. In addition to shrimp, the blue crab significantly contributes to the Gulf's crustacean landings. In 1985, about 56 million pounds of blue crabs, worth about $16 million, were taken in the Gulf's near-shore estuaries and sounds. Oysters are the main mollusk harvested in the Gulf's nearshore estuaries and sounds, and oyster landings in 1985 were approximately 26.5 million pounds valued at about $41 million.

In the Gulf the following commercial fishes were the most economically important in 1985 and are arranged in order of decreasing priority: qulf menhaden, groupers and scamp, red snapper, black mullet, red drum, yellowfin tuna, catfish and bullheads, swordfish, black drum, spotted seatrout, yellow-tail snapper, pompano, vermilion snapper, and king r.ickerel and cero.

The menhaden purse seine fishery is the most important fishery in terms of pounds landed. In 1985, 1.9 billion pounds valued at $67 million were landed in the Gulf. Menhaden are used in the manufacture of fish meal and solubles for additives to livestock feeds, and production of fish oil. Also, small amounts are used for bait and canned pet food.

The Industrial bottomfish trawl fishery oroduces stock for the pet food industry, bait, animal food, and fishmeal. This fishery reached peak production in the early 1970's at about 115 millions pounds, worth about $2.8 million; however, It has declined in recent years.

Shrimp is by far the most valuable component of the Louisiana landings. The menhaden fishery is the largest in terms of pounds landed. In 1985, the total commercial landings for Louisiana were about 1.7 billion pounds, worth $229 million. Louisiana ranked first in the United States in pounds landed and second in value.

B. SHIPPING

Fairways play an Important role in the avoidance of collisions on the OCS, particularly In the case of the large oceangoing vessels, but not all vess'i: stay within the fairways. Many others, such as fishing boats and OCS support vessels, travel through areas with high concentrations of fixed structures.

2-

In such cases the most Important mitigation factor is the requirement for adequate marking and lighting of structures. After a structure has been in place for a while, it oft^n becomes a landmark and an aid to navigation for vessels that operate in the area on a regular basis.

East Cameron 188/189 ar* cUar of shipping fairways and anchorage areas. The drilling rig, pi t orm and each of the marine vessels servicing these operations will be equipped with all U. S. Coast Guard required naviga­tion-J safety aids.

C. PLEASURE BOATING, SIH)RT FISHING ANO RECREATION

The northern Gulf of Mexico coastal zone is one of the major recreational regions of the United States, particularly in connection with marine fishing and beach-related activities. The shorefronts along the Gulf coasts of Alabama, Mississippi, Louisiana, and Texas offer a diversity of natural and developed landscapes and seascapes. The coastal beaches, barrier islands, estuarine bays and sounds, river deltas, and tidal marshes are extensively and intensively utilized for recreational activity by residents of the Gulf South and tourists from throughout the Nation, as vsll as from foreign countries. Publicly-owned and administered areas such as National seashores, parks, beaches, and wildlife lands, as well as specially designated preserv­ation areas such as historic and natural sites and landmarks, wilderness areas, wildlife sanctuaries, and scenic rivers attract residents and visitors throughout the year. Commercial and private recreational facilities and establishments, such as resorts, marinas, amusement parks, and ornamental gardens, also serve as primary interest areas and support services for people who seek enjoyment from the recreational resources associated with the Gulf.

The two major recreational areas most directly associated with offshore leasing ar.d potentially affected by it are the offshore marine environment and the coastal shorefront of the adjoining states. The only major recreational activity occurring on the OCS is offshore marine recreational fishing and diving. Studies, reports, and conference proceedings published by MhS and others have documented a substantial recreational fishery, including scuba diving, directly associated with oil and gas production platforms. The recreational fishing associated with oil and gas structures stems from their function as high profile artificial fishing reefs. A report on the 1984 Marine Recreational Fishery Statistics Surveys presented by NMFS at the Sixth Annual Gulf of Mexico Information Transfer Meeting indicates a majority of the offshore recreational fishing in the Central Gulf of Mexico is directly associated with oil and gas structures. There are currently about 4,000 offshore oil and gas structures in the Central and Western Gulf of Mexico. Many other studies have demonstrated that when oil and gas structures are accessible to marine recreational fishermen and scuba divers they are a major attraction or marine recreational activities and are a positive influence on tourism and coastal economics.

With the exception of Grand Isle and vicinity and a stretch of beach area in Cameron Parish, (Peveto/Constance/Ocean View Beaches, Holly Beach, Hackberry Beach) Louisiana has very limited beach area suitable for recreation. Most of it is very narrow, of poor recreational quality and generally inaccessible by automobile, some of the highest quality beach areas in coastal Louisiana

3

are found along the barrier islands chain off Terrebonne Parish. Several additional significant recreational resources are found along the Gulf Coast. Louisiana has ornamental gardens, scenic roads, rivers, and trails.

0. PCTHNTIAL OR KNOWN CULTURAL RESOURCES

Archaeological resources are any objects or features which are man-made or modified by human activity. Significant archaeological resources are either historic or prehistoric and, as defined by 36 CFR 50.6, generally Include properties greater than 50 years old which are associated with avents that nave made a significant contribution to tne broad patterns of our history; are associated with the lives of ner*~">s significant in the past: embody the distinctive characteristics of a ly; . t-sr-cd-, or method of construction; represent the work of a master; po ;i • •>> ^tistic values; represent a significant and distinguishable ent 'hove nonents may lack individual distinction; or have yielded, or m,, o yield, information Important in prehistory or history.

Although most historic archaeological resources on the OCS are shipwrecks, other types of historic sites, such as the Ship Shoal Lighthouse, may occur in Federal waters.

Figures indicate that less than 2% of pre-20th century ships reported in the Gulf and less than 10% of all ships reported lost between 1500 and 1945 have known locations. Considering the problems with inaccurate wreck reporting, drift and breakup of wrecks, and snips which have been lost but never reported, it becomes apparent that very little is rea y known about the locations of historic shipwrecks in the Gulf of Mexico.

In order to deal with the man?gement problems of this largely unlocated resource base, a high probability zone for the occurrence of shipwrecks (Zone 1) was proposed by the baseline study (CEI, 1977). This zone was delineated by using geographic factors, such as approaches to seaports, straits, shoals, reefs, and historic shipping routes, as indicators of high shipwreck potential.

Required remote sensing surveys on the OCS have recorded evidence of approximately 57 potential wrecks. Ten of these are definite wrecks while the remaining 47 would require further investigation for positive identi­fication. Eighty percent of these possible wrecks were recorded within Zone 1 which, according to the baseline study, 1s where the highest incidence of shipwrecks should occur.

E. ECOLOGICALLY SENSITIVE FEATURES

Barrier beaches are a common landform along the Gulf Coast and stretch in an Irregular chain from Florida to Texas. These elongated, narrow landforms are composed of sand and other loose sediments transported by waves, currents, storm surges, and wind. In geological terms, barrier Islands are a young phenomenon, being formed only Tn the last 5000 to 6000 years. The term "barrier" identifies the structure as one that protects other features, such as bays, estuaries, and marshes, from direct wave attack of the open

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ocean. The waters In these bays and estuaries are a blend of the terrestrial-freshwater systems of the mainland and the saltwater system of the ocean, and among the richest ecosystems known. Many of the species that Inhabit the bays, estuaries, and adjacent marshes use tnese areas as spawning, nursery, and feed grounds.

Another benefit of both the Islands and their adjacent marshes and bays 1s that of providing habitats for a large number of birds and other animals. The Islands also provide habitat for several threatened or endangered species, for example, the loggerhead turtle, the southern bald eagle, alliga­tor:, and brown pelicans.

The shelf and shelf edge of the Central and Western Gulf are characterized by topographic Matures which are inhabited oy benthic communities. The benthic organisms on these features appear to be depth related; however, the actual limiting factors are temperature and light penetration (turbidity and sedimentation).

The Central Gulf of Hexico lists 16 topographic features.

Shelf Edge Banks Midshelf Banks

Bright Bank Sonnier Bank McGrail Bank 29 Fathom Bank Rankin Bank Fishnet Bank Alderdice Bank Rezak Bank Sidner Bank Ewing Bank Jakkula Bank Bouma Bank Parker Bank Sackett Bank Diaphus Bank Sweet Bank

F. PIPELINES AND CABLES

Koch as a prudent operator will avoid all pipelines and cables In these blocks during exploratory activities.

G. OTHER MINERAL USES

The activities proposed for East Cameron 188/189 will have no direct or Indirect impact on other mineral uses.

H. OCEAN DUMPING

Ocean dumping is prohibited In this area

I. ENDANGERED OR THREATENED SPECIES ANO CRITICAL HABITAT

Five federally listed endangered whale species occur within the Central Gulf. These include fin, humpback, right, sel, and sperm whales. Generally, these large cetaceans inhabit the continental slope and deep oceanic waters, occasionally they are sighted nearshore (Schmidly, 1981}. Sperm whales have been sighted near the Louisiana Delta and offshore Brownsville (Fritts et a l . , 1983).

Four federally listed endangered turtle species (Kemp's ridley, green, hawVjill, and leatherback turtles) and one threatened species (loggerhead turtle) occur ir, the Gulf of Mexico.

The American alligator occurs generally throughout the Central Gulf coastal areas. The alligator is listed as endangered throughout its range except in the coastal areas of Florida and Texas where it 1s listed as threatened and in Louisiana where it is listed as "threatened by similarity of appearance".

The red-cockaded woodpecker occurs primarily in mature open pine forest throughout the Eastern and Central Gulf area and into eastern Texas.

Arctic peregrine falcons migrate along the eastern coast of Florida, the Florida Keys, and the Gulf coast of Texas. Some peregrine falcons overwinter along the Gulf coastal areas.

The northward migration corridor cf the endangered eskimo curlew crosses the Louisiana and Texas coastal areas.

Brown pelicans occur alo the coast of Cameron Parish, Louisiana. Bal eagles inhabit several Gulf coastal counties.

These species may be affected by the development of coastal lands ?-itd/cr tne occurrence of oil spills which may affect the species directly or through their food sources. Since the proposed activities include no plans for :he development of the coastal lands, the impact on endangered or threaten?i species 1s primarily based on the occurrence of oil spil ls.

Koch as * prudent operator, will take the necessary measures to reduce the

?robab1lity of oil spills. Koch's proposed exploration operations on B'.ocJcs 88/189 should not pose a threat to any endangered or threatened species.

I I I . UNAVOIDABLE ADVERSE ENVIRONMENTAL EFFECTS

A. WATER QUALITY

Drilling activities will temporarily reduce water quality adjacent to the location. This will Increase turbidity in a plume down-current from the vork site. Released waters and a minor oil spill could also contribute to water quality degradation.

B. EFFECTS ON MARINE ORGANISMS

Some organisms will be killed and some will be temporarily functionally impaired as a result of exploratory operations. The most affected groups will be plankton and benthos Immediately around the drilling rig. Damage will be botn mechanical and toxicological. Discharge of hole cuttings will damage plankton within the plume and bury some of the less mobile benthic fauna. These Impacts are considered to be localized, short term and reversible at the population level.

An oil spill could affect a broad spectrum of marine organisms. However, most effects would be localized and short term. Any effects on m&rjftals and turtles would be significant.

C. WETLANDS AND BEACH

l.< * ^ unlikely event of a spill occurring and reaching shore, organisms In wc i and beach habitats could be killed or functionally impaired. Human cor ty disruption could also occur. Although all such effects would be lo ..zed, any effects on endangered species and/or critical habitats would be significant.

0. AIR QUALITY

The air quality at the lease sites will be degraded temporarily during operations, but should return to normal once operations are measurably completed. Offshore activities probably will not affect onshore a1r quality. Air quality at the onshore base will be only insignificantly reduced by onshore activities. Any such effect will be temporary.

E. COMMERCIAL FISHING

Of the various types of fishing gear in use in the OCS areas, trawls, have the greatest chance for operational conflicts with oil and gas activities. Losses may, however, be compensated under the Fishermen's Contingency Fund or other legal routes. Trawl nets can be snugged on underwater stubs causing damage or loss of the nets. In addition, it is conceivable that snags could damage underwater production equipment or pipelines causing a spill of oil or gas. Because safety equipment is Installed, which shuts in production when a loss of pressure occurs, the likelihood of a major spill resulting thereby 1s considered very small. Less frequently, large objects which were lost overboard from petroleum industry boats, pipeline lay barges, and platforms are caught by fishing gear resulting in damage to the gear and/or Its catch of fish; however, occurrence of this type of incident is low. Also, commercial fishermen would probably not harvest fish in the area of an oil spill, as spilled oil could coat or contaminate commercial fish species rendering them unmarketable. Other unavoidable adverse Impacts Include loss of fish space caused by Installation of unburled pipelines, rigs, platforms, or by other OCS-related tructures. There may be some localized competition for shore facilities. . ise effects and any effect that the exploratory

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operations w i l l have on stocks of Important species are considered minor. F. SHIP NAVIGATION

Very l i t t l e Interference can be expected between the r ig and marine vessels uti l ized during d r i l l i ng operations and ships that use established fairways. However, at night and during rough weather, fog, and heavy seas, ships not using established fairways could collide with the r ig .

G. CULTURAL RESOURCES

There 1s only a small probabil i ty that an unknown cultural resource exists in the lease are is.

H. RECREATION ANO AESTHETIC VALUES

The rig and marin* vessels may represent an obstacle to some sport fisherman, but such an effect is expected to be negligiDle and not permanent.

Even though existing regulations and orders prohibit indiscriminate l i t t e r i ng of the marine environment with trash, offshore o i l and gas operations involving men, machines, equipment, and supplies is bound to result in some l i t te r ing of the ocean. Human nature and accidents associated with offshore operations w i l l contribute some floatable debris to the ocean environment which w i l l eventually come ashore on major recreational beaches. The effects that normal operations or a minor o i l sp i l l would have on any fish stocks important to sport fishermen are also considered to be negligible.

A minor o i l sp i l l and/or non-petroleum floating debris could foul beaches inshore of the lease area. The fouling of the beaches would be an aesthetic detriment that could adversely affect recreation. Any effects on beach recreation could adversely affect tourism and, consequently, the local economy.

IV. SUMMARY

The proposed activity will be carried out and completed with the guarantee of the following items.

A. 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.

6. All operations are covered by a Minerals Management Service approved 0*1 Spill Contingency Plan.

C. All applicable Federal. State and Local requirements regarding air emission and water quality and discharge for the proposed activities, as well as any other permit conditions, will be complied with.

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The proposed activities described In detail In the P; n of Exploration will comply with Louisiana's Coastal Zone Management Program and will be conducted in a manner consistent with such Program.

REFERENCES

1. Final Environmental Impact Statement, Proposed Oil and Gas Lease Sales 94, 98 and 102, Gulf of Mexico OCS Region, OCS EIS, MMS 84-0057.

2. Final Environmental Impact Statement, Proposed 011 and Gas Lease Sales 94, 98 and 102, Gulf of Mexico OCS Region, OCS EIS, MMS 84-0057, visuals.

3. Fisheries of the United States, 1985, April, 1986.

4. The Ecology of Petroleum Platforms in the Northwestern Gulf of Mexico: A Community Profile, Bureau of Land Management Open rile Report 8Z-03, July, 1982.

5. Environmental Report West Cameron Area Blocks 516 and 524, March, 1987.

6. BLM Draft Environmental Impact Statement, OCS Oil and Gas Lease Sales A-62 and 62.

7. BLM Final Environmental Impact Statement, OCS Oil and Gas Lease Sales A-62 and 6Z.

8. BLM Final Environmental Impact Statement, OCS Oil and Gas Lease Sale 47.

9. Minerals Management Service, 1983. Final Regional Environmental Impact Statement, Gulf Of Mexico. U.S. Department of the interior.

10. Final Environmental Impact Statement, Proposed Oil and Gas Lease Sales 110 and 112, Gulf of Mexico OCS Region, OCS EIS, MMS 86-0087.

11. Final Environmental Impact Statement, Proposed Oil and Gas Lease Sales 110 and 112, Gulf of Mexico OCS Region, OCS EIS, MMS 86-0087, visuals.

12. Final Environmental Impact Statement, Proposed Oil and Gas Lease Sales 113, 115 and 116, Gulf of Mexico OCS Region, OCS EIS, MMS-87-0077.

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