In Reply Reffer Tos FCH2-1 March. 25. 198C

Agip Petroleum Co. Inc, Attention: Ms. Sharon L. Perez 2950 North Loop West Houston. Texas 77092

Gentlemen:

Reference is made to your I n i t i a l Plan of Exploration and Environmental Report received Harcn 17. 1988., amended March 22. 1988. for Lease OCS-C 0420. Clock 364. East Cameron Area. This plan includes the ac t i v i t i es proposed for Wel is A. B. and C.

In accordance wi th 30 CFR 250.34. revised December 13. 1973. and our l e t te r aated January 29. 1979. th is plan 1s hereby determined to be complete an' 1s now being considered for approval.

Your plan control number 1s M-2953 and should be referenced 1n your comeuni-cation and correspondence concerning th is plan.

Sincerely yours.

(Orig. Sgd.) A. Donald Giroir

P. J . Bourgeois Regional Supervisor Field Operations

bcc: lease OCS-G 8420 (OPS-3-2) (FILE ROOM) (0PS-3-4 w/Publ1c In fo . Copy of the plan and ER (PUBLIC RECORDS)

MDJoseph:cck;03/24/88:poecom

OCS-O 2 4 ^ 0

In Reply Refer To: F(H2-1 March. 25. 198(5

tf

Agip Petroleum Co. Inc . ' Attention: Ms. Sharon L. Perez 2950 North Loop West Houston. Texas 77092

Gentlemen:

Reference is made to your I n i t i a l Plan of Exploration and Environmental Report received Marcn 17. 1988.. amended March 22. 1988. ^for Lease OCS-G £420. Clock 364. East Cameron Area. This plan includes the ac t i v i t i es proposed fo r Wells A. 8. and C.

In accordrnce wi th 30 CFR 250.34. revised Dece-Oer 13. 1979. and our le t te r uated January 29. 1979. th is plan 1s hereby determined to be complete an' 1s now being considered for approval.

Your plan control number Is N-2953 and should be referenced in ycur coEOunl-cation and correspondence concerning th is plan.

Sincerely yours.

(Orig. Sgd.) A. Donald Giroir

D. J . Bourgeois Regional Supervisor Field Operations

bcc: lease OCS-G 8420 (OPS-3-2) (FILE ROOM) (0PS-3-4 w/Publ1c In fo. Copy of the plan and ER (PUBLIC RECORDS)

MDJoseph:cck:03/24/38:poecom

Agip Petroleum Co. lime, Corporate Office P-ooknollowC entral III. 2950 North Loop W-3rd Floor Houstor X 77092 Phone (713) 688-6281

New York Office 666 Fifth Avenue. New York N Y 10103 Phone (212) 887-1330

March 21, 1988

U.S. Department of the Interior Minerals Management Service 1201 Elrr.woo Park Blvd. New Orleans, LA 70123-2394

Att : Mr. Daniel J. Bourgeois Regional Supervisor Rules Production

Re: OCS G-8420 East Cameron - Block 364 Amendment to Plan of Exploration

Gentlemen:

Enclosed please find an amendment to the Initial Plan of Exploration for Lease OCS G-3420, Block 364, East Cameron Area, Offshore Louisiana.

Plan amended as follows:

Approximate Location of Proposed Wells and Plats

Well No. Proposed Location

A. Surface Location: 4610' FNL 3320' FEL

B. Surface Location: 4610' FNL 3320* FEL

C. Surface Location: 4610' FNL 3320' FEL

Also, please amend the Environmental Report: Description of Proposed Activity to show three (3) wells drilled from one (1) surface location instead of as originally proposed.

Al l other data submitted remains the same. If you have any questions, please advise.

Sincerely,

Sharon Perez Title Analyst/Permit Coordinator

Mi

Agip Petro leum Co. Inc.

EAST CAMERON BLOCK 364

WELL LOCATION MAP

PUBLIC INFORMATION

MARCH 11 . 1987

£&te Petroleum Co. Inc. Corporate Office Brookhollow Central III. ?950 North Loop West. 3rd Floor. Houston. TX 77092 Phone (713) 688-6281

UrS- - _ _ ^ s f » . New York Office 666 Fifth Avenue. New York. N Y 10103

Phone (212) 887-0330

.via: Ch iO, I bj>o

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

Attention: Mr. Daniel J. Bourgeois Regional Supervisor Rules <3c Production

Re: OCS G-8420 - Block 364 East Cameron Area INITIAL PLAN OF EXPLORATION

Gentlemen:

In accordance with 30 CFR 250.34, as amended, Agip Petroleum Co. Inc. herein respectfully submits for your approval, an Initial Plan of Exploration for lease OCS G-8420, Block 364, East Cameron Area, Offshore, Louisiana.

Agip Petroleum Co. Inc. submits nine (9) copies of the proposed Plan of Exploration. Five (5) copies are considered Proprietary Information and are exempt from disclosures .is allowed for in subsection (b) paragraph (9) of the Freedom of Information Act (81 Stat. 54; U.S.C. 552) as amended by Public Law 93-502, November 21, 1974, (88 Stat. 1561). Four (4) copies are considered "Public Information" The information believed to be exempt is geological and/or geophysical. As Operator of this lease, Agip Petroleum Co. Inc. requests that this information and data considered exempt be dispensed for use only by the U.S. Government.

Thank you for your consideration in this ma-ter. Start up of operations in East Cameron Block 364 should commence on or about the 15th day of April 1988. If further information is necessary, please do not hesitate to caU.

Sincerelv,

Sharon L. Perez

"Public lnformc'.::a"

p Petroleum Co. Inc.

AGIP PETROLEUM CO. INC. i

x i N OF EXPLORATION

j V OCS G-8420

*»ST CAMERON AREA

BLOCK 364

SECTION ' ITEM

1 Introductory Letter

2 Proposed Type and Sequence of

Exploration Activities and Timetable

3 Description of Drilling Vessel

4 Safety and Environmental Safeguards, including Oil Spill Contingency Plan

5 Approximate Location of Proposed Well and Plat

6 Structural Interpretation and Shallow

Drilling Hazards Report

7 Onshore Support Base Facilities

8 Mud Components

9 Enviornmental Report

10 Air Quality Report

Section 2

PLAN OF EXPLORATION \

OCS G-8420

PROPOSED TYPE AND SEQUENCE OF EXPLORATION ACTIVITIES ANb TIME TABLE

Agip proposes to drill six (6) wells from three (3) surface locations on East Cameron Block 364 to evaluate the subject lease to determine the potential for further development.

Exploratory drilling of the well is scheduled to begin approximately April 15, 1988, subject to the approval of the Plan of Exploration and issuance of the required Permit to Dr i l l . The spud dates of the remaining wells have not been scheduled; however, these wells should be completed by September, 1989.

The proposed drilling schedule is as follows:

East Cameron - Block 3< \

Location No. Approximate Days to Drill

A. (1) 30 (2) 30

B. (1) 30 (2) 30

C. (1) 30 (2) 30

It should be emphasized that this schedule is tentative in the meaning of 30 CFR 250.34-1 A). Additional exploratory drilling must be predicted upon the need to define structure and/or reservoir limits. The fabrication and installation of platforms, producing facilities and pipelines are contingent upon the success of this well. In addition to the drilling of wells, oth-^r activities which may be conducted under this plan would be setting of a seafloor template so as to minimize dissipation of the seafloor, a velocity survey in a well bore and soil borings.

Agip will utilize an existing support base in Morgan City, Louisiana.

Section 3

, PLAN OF EXPLORATION

| §' OCS G-8420

«

DESCRIPTION OF DRILLING VESSEL

The water depth in Block 364, East Cameron Area is approximately 375 feet.

The proposed wells will be drilled with a typical semi-submersible rig to be determined at a later date. A typical diverter system and BOP schematic are included.

nvsrre ELIMSNT . D i v Q r t e r Systtm

Agip Petroleum Co Jnc. • •

WELL CONTROL CONTINGENCY PLAN FOR DRILLING WITHOUT A RISER AND DIVERTER .

Ln the eVent of a b^ovvout which surfaces beneath the rig while drilling the pilot hole for the 20-inch conductor casing, the r i ^ should be moved off location while maintaining circulation, rump the designated kill weight mud at the maximum possible rate to f i l l th^ pilot hole and discontinue pumping.

Personnel Assignment While Drilling

1. Contract tool pusher will be on the rig floor drilling the pilot hole.

2. Company representative will be on the rig floor while drilling the pilot hole.

3. The barge engineer will be made aware of the contingency procedure, of his role in this activity, and be prepared to handle the winches, power, etc.

4. An abandon rig dri l l will be conducted prior to drilling the pilot hole.

5. The standby boat will stand by in the vicinity of the rig on radio ale'..

Areas of Responsibility During Blowout

1. Contract Pusher - in charge on rig floor

2. Driller - remain on brake and coordinate mud mixing and pumping

3. Assistant Driller - supervise mud room activities

4. Rig Crew - assist derrick man

5. Mud Engineer - check mud properties

6. Crane Operator - shut down crane motor; assist barge engineer, then assist in mud room

7. Barge Engineer:

a. ensure mechanic and electrician are standing by in the engine room and that they close all watertight doors

b. assign roustabouts to winches to remove pawls as directed

c. increase moorir-; tension; set pawls on upwind anchor chains; hold downwind mooring on brakes

d. shut do••'r, all unnecessary sources of isrjition

e. stand by in control house for orders to move rig

• .

8. Welder

9. !Mud Loggers

- stop welding and proceed to his alarm station

- take up positions to observe water in moonpool and down current for the presence of gas

10. [Radio Operator

11. Galley Crew

12. Service Company Personnel and Off-Duty Crews proceed to their alarm stations

notify standby boat and marine base of emergency condition '

- enter all rooms to ensure personnel are aware of emergency condition, then proceed to alarm stations

Agip Petroleum Co. Inc.

PLAN OF EXPLORATION \

OCS G-8420

SAFETY AND ENVIRONMENTAL SAFEGUARDS

Safety features during drilling operations will include well control f.r W w >at prevention equipment that meets or exceeds the requirements of OCS Order No. 2.

Oil in any form shall not be disposed of into the water of the Gulf.

Liquid waste materials containing substances which may be harmful to aquatic Ufa or wildlife, or injuries in any manner to life or property shall be treated to avoid disposal of harmful substances into the waters of the Gulf.

Drilling muds containing oil are not disposed of into the Gulf. This type of material is loaded and barged to shore for proper disposal. Drilling mud containing toxic substances are neutrahzed prior to disposal.

Drilling cuttings, sand and sotids containing oil are not disposed of into the Gulf, unless the oil has been removed.

The subject offshore mobile drilling unit is equipped with drip pans under the rig floor. All oil from diese! engines is pumped to a sump and then pumped into barrels for return to an offshore site.

Operator personnel are instructed in the technique methods necessary to prevent pollution. Non-operator personnel are instructed ai. supervised to insure that nor— pollution practices are adhered to.

The facilities are inspected daily.

Agip Petroleum Co. Inc.'s Oil Spill Contingency Plan has been submitted to the Minerals Management Service. This plan designates an Oil bpill Team consisting of Agip Petroleum Co. Inc. personnel ar.d contract personnel. This team's duties are to eliminate the sources of the oil spill, move means of available transportation to monitor the movement of the slick, and contain and remove the slick if possible.

Agip Petroleum Co. Inc. is a member of the Clean Gulf Association (CGA). The CGA has 4 permanent bases in Louisiana; at Venice, Grand Isle, Intracoastal City and Cameron, and two bases in Texas; at Galveston and Rockport. Each base is equipped with fast response skimmers and there is a barge mounted high volume open sea skimmer based at Grand !sl°. In addition to providing equipment, the CGA also supplies advisors for clean up operations. Response time for a spili in East Cameron - Block 364 could vary from 12 to 18 hours depending upon the location of company workboats or workboats available for charter.

•

Section 4

Agip Petroteyiffii Co. Inc.

Section 5

\ PLAN OF EXPLORATION

| * OCS G-8420

Approximate Location of Proposed Well and Plats

East Cameron - Block 364 is located iome l l o .niles from the nearest shoreline off the Texas coast. A vicinity plat is shown in this section.

East Cameron - Block 364

Well No. Proposed Location

A. T i > - ^ _ Surface Location:^Z60OrFNL 1900' FEL (2) Surface Location: Same as A. (1)

B. (1) ^J-5uTFa>e-4-QC^tion: lWO' FNL 5900' TEL (2) Surface LocatToiu^Same as B. (1)

Q ^ j a t f Surface Location: 4610T>I«^3320' FF.L (2) Surfac3 Location: Same as C. (TT^-—

I

Agip Pei .o ie i - r« Co.Inc.

I: EAST CAMERON BLOCK ^64 < \ •>

WELL LOCATION MAP

MARCH 1987

Petroleum Co. Dime •

Section 6

STRUC TURAL INTERPRETATION

AND

SHALLOW DRILLING HAZARDS REPORT

* i EAST CAMERON BLOCK 364

Surface Location: A ,."V FNL and 3320' FEL

' The water depth at this location is 358 feet and numerous seafloor pockmarks i

are present fw" chin cr.^ aiea. Based on r e f l e c t i o n s from w i t n i n Che water column on

U

Che fathou..•>•«• r records*" we «issu.ne these anomal ies are r e l a t e d t o th«- v e n t i n g o f

b i o g e n i c gasc~. f r o m t h e s h a i ] ^ ' - s ed imen t s . l . i e se s e a f l o o r f e a t u r e s should pose no

p r o b l e r r \ r . - r i l l i n g o p e r a t i o n s f r o m a f l o a t i n g r i g . The r e f l e c t i v i t y f ro : . i the

s c . U o o r i s s i g n i f i c a n t l y h i g h e r than f r o m t h e sv. f i c i a l sedimenCs i n the novrheas t

c o r n e r o f Block 364. T h i s suggesCs a change f r o m s i l t y c l a y f i n e n o r t h e a s t t o

c l a y e y or s i l t y sands a t Che proposed l o c a C i o n . ,

I n Che r e g i o n nea^ Che proposed s i c e i a u p p £ . < t secCion c o n s i s t o f c l o s e l y

spaced r e f l e c t o r s 70-80 f e e t t h i c k , p rob i b l y r e p r e s e n t i n g a s e r i e s o f s i l C and sand

seams. At Che s p e c i f i c l o c a C i o n chere i s ev idence f r o m Che two ne^resC subbottom

p r o f i l e r ' l i e s t h a t C h i s sequence r a y b« d i sCurbed by s h a l l o w cuC and f i l l channe l s .

The s e i s i n ; characCer o f Che f i l l maCer i a l i s chaoCic buc Chis anomaly should pose

no prob lem d r i l l i n g f r o m a f l o a C i n g p l a t f o r m . The u n d e r l y i n g s e c t i o n i s -'Of

a f f e c t e d and c o n s i s t s o f a s e i s m i c a l l y amorphous secCion ( p r o b a b l y c l a y s ) 3:; feeC

C h i c k u n d e r l a i n by a n o t h e r sequence o f c o n f o r m a b l e i n C e r f a c e s .

Both subbottom o r o f i l e r and ana log w a t e r gun da ta i n d i c a t e a f a u l t as c l o se as

?C f) t e e t f rom the s u r f a c e l o c a t i o n . T h i s d i s p l a c e m e n t t r e n d s nor . .. v e s t - sou theas t ,

i s w e l l de f i : -<d , \v<i . ' " f s e t s a l l the h o r i z o n s mapped on Che hazard r e p o r t . The

l o c a t i o n i s cr. t i i - u t c h r o w n s ide and s h o u l d presenC no problems i n d r i l l i n g

o p e r a t i o n s .

These d i f a s i g £ * _ t t h a t t h i s s i t e i s s u i t a b l e f o r e x p l o r a t i o n d r i l l i n g

»r »*:ions f r r ? f ' . o a t i n g p ! i t f o r m .

J o h n ,yy And ine

ANTOINE2 . SLP 'ms

EAST CAMERON BLOCK 364

Surface Location: 1,900' FEL 7,600' f SL

The wptor depch at this location is 360 feet anc '.umerous seafloor p^"kmarks are present in the area. Based on reflections from within the water column on the fathc meter records, we assume these anomaties are related to the venting of biogenic gases from the shallow sediments. These seafVor features should pose no problem for drilling operations. Th: reflectivity from the SL floor in this area is high, significantly higher than from . a ficlal sediments in the northeast corner of Block 364. This suggests a ehai ge i *oni silty clays in the northeast to clayey or silty sands at the proposed location.

At this site :he • \tbottom profiler data reveal an upppermost section of closely spaced ref lec tc j to a deptl of approximately 90 faet. These comformable beds probably represent a series of silt j ~ d sar.d seams that nvclio a seismically amorphous section (probably clays) 35 feet thick. 71 is u .ic is underlain by another sequence of conformable interfaces.

The analog water gun data indicate a fault approximately 250 feet north of the proposed location. This is an adjustment leature related to the larger fault 5,000 feet toward the north. This si** is on the up thro v. . side of the small displacement. This faulting is probably related tc movement on the large salt diapir within East Cameron Block 359.

These data suggest that this site is suitable for exploration drilling operations from a floating platform.

Antoiii-^ *' Associates

EAST CAMERON BLOCK 364

face Location: 5,900* FEL 1,900' FNL

The water depth at this location is 356 feet and the reflectivity from the seafloor is high as noted on tm? side scan sonar data. This is in contrast to the low reflectivity characteristic of the s i floor in the northeast corner of Block 364, There are a number of sea bottom pock marks in the general area but the density of the anomalies is much lower than toward the east. These features are related to the venting of biogenic gases from the shallow sediments.

At this site the subbottom profiler records reveal a surficial cover of undifferentiated sediments, probably muds, eight feet thick. This unit overlies a 75 foot section of closely spaced, conform, "e interfaces that probably represent a series of silt and sand seams.

Neither the subbottom profiles or water gun data indicate any major anomalies near this location and suggest that it represents a suitable location for exploratory drilling from a floating platform.

Antoine <5e Associates

John Antoine

0

Section 7

PLAN OF EXPLORATION <

OCS G-8420

ONSHORE SUPPORT BASE FACILITIES

Agip Petroleum Co. Inc. will use existing onshore base facilities located at Morgan City, Louisiana. This will serve as port of debarkation for supplies and crews. No onshore expansion or construction is anticipated with respect to this activity.

This base is capable of providing the services necessary for the proposed activities. It has 24-hour service, a radio tower with phone patch, dock space, equipment and supply storage base, drinking water, etc.

DRILLING MUD COXPOKEKTS

CHtAlCAL TRADE NAME DESCRIPTION Or MATERIAL

Aluminum Stearate "AXTAFLO-S* B a r i t e C=lcium Carbonate Calc ium Chlordie Calc ium Oxide Calcium Sulfate Carboxymethyl Cel lu loee C a u s t i c Potash C a u s t i c Soda Chrome Ligni te Chrome Lignosulfonate D r i l l i n g Detergent • E - P a l " Ferrochrome Lignosul fona te Gel

Gypsum L i g n i t e L ignosu l fona te •Kud Sweep-•KQR-REX' • S h a l e - T r o l ' Sapp Soda Ash Sodium Bicarbonate Sodium Carboxymethyl C e l l u l o e j Sodium Chloride Sodium Chronate S t a r c h "TX-9010" "TORQ-Trim-"Black Magic' "Black Magic Supermix" D i e s e l

• J e l f l a k e -

"Pipe-Lax-

Aluminum Stearate Ncnionic Surfactant Barium Sul fa te (BaSo4) Aragcni te (CaCo3) H y d r o p h i l i t e (CaCi'2) Lime (Ouick) Anhydri te (CaS04) Carboxymethyl Cel lulose Potassium Hydrate Sodium Hydroxide (HaOH) Chrome L i g n i t e Chrome Lignosulfonate Soap Kon- toxic , biodegradable defoamer Derived from vood pulp Sodium montmor i l lon i te , bentonite a t t a p u l g i t e CaSo4.2K20 L i g n i t e L ignosul fona te Cement P re - f lush Hydroloyzed Cereal s o l i d •rgano-aluminum complex Sodium Acid Pyrophosphate Sodium Carbonate KaHC03 Sodium Carboxymethyl Cellulose KaCl NaCr04.10H20 Corn Starch Biodegradable d r i l l i n g l u b r i c a n t Biodegradable d r i l l i n g l ub r i can t O i l base mud cone. Sacked concentrated o i l base mud Ueed t o mix c e r t a i n l o s s - c i r c u l a ­t i o n p i l l s P l a s t i c f o i l , shredded cellophane L e s s - c i r c u l a t i o n mate r ia l Sur fac tan t mixed v i t h d iese l Ground walnut s h e l l s L o s s - c i r c u l a t i o n mate r ia l

BEST MAILABLE

COASTAL ZONE MANAGEMENT

\ CONSISTENCY CERTIFICATION

V PLAN OF EXPLORATION

EAST CAMERON AREA, BLOCK 364

OCS-G 8420

The proposed a c t i v i t i e s described in deta i l in th is Plan comply with 1

Louisiana's approved Coastal Zone Management Program and w i l l be conducted a manner consistent wi th such Program.

Arrangements have been made with the State-Times in Baton Rouge, Louisiana to publish a public notice of the proposed act iv i t ies no later than

M.^rrh ? 4 r 1 QflR .

Agip Petroleum Company, Inc. Lessee or Operate

;ertitying Officials

Date ^

Agip Petroleum C®. Inc. Cc rponte Office Bipokhollow Cenfral III, 2950 North <_oop West. 3rd Floor. Houston. TX 77092 Rhone. (713) 688-6281

New York Office: 666 Fifth Avenue. New York. N Y . 10103 Phone (212)^87-0330

Sta te Times * Legal Ad Depjjrtment 535 Lafayette St reet E i : o n Rouge, LA 70S04

Please publish the f o l l o w i n g as a lega l ad no l a te r than March 24, 1988-

P u b l i c Notice o f Federal Consistency review of a Proposed Explorat ion Plan by the Coastal Management Sect ion/Louis iana Department of Natural Resources fo r the p lan 's consistency w i t h the Louisiana Coastal Resources. Program.

A p p l i c a n t : Agip Petroleum Company, Inc . •. 2950 North Loop West, Sui te 300 Houston, Texas 77092

L o c a t i o n : East Cameron 364 OCS-G 8420 Of fshore. Louis iana

D e s c r i p t i o n : Proposed exp lo ra t i on plans f o r the above area provide fo r the e x p l o r a t i o n f o r o i l and gas. Explorat ion A c t i v i t i e s w i l l inc lude d r i l l i n g from a jack-up r i g and t ranspor t of d r i l l i n g crews and equipment by he l i cop te r and/or cargo vessel from an onshore base located at Morgan C i ty , Louisiana. No eco log i ­c a l l y s e n s i t i v e species or hab i ta ts are expected to be located near or a f f e c t e d by these a c t i v i t i e s .

A copy of the plan descr ibed above i s ava i lab le fo r inspect ion at the Coastal Management D iv is ion O f f i c e located on the 10th Floor of the State Lands and Na tu ra l Resources B u i l d i n g , 625 North 4th St ree t , Baton Rouge, Louisiana. O f f i c e hours: 8 AM to 4:30 PM, Monday through Fr iday. The publ ic is requested to submit comments to the Louisiana Department of Natural Resources Coasta l Management D i v i s i o n , A t t en t i on PCS Plans, P.O. Box 44487, Baton Rouge, Louisiana 70804-4487. Comments must be received w i t h i n 15 days of the da te o f th i s no t ice or 15 days a f t e r the Coastal Management Section obtains a copy o f the plan and i t i s ava i lab le f o r publ ic inspect ion. This publ ic n o t i c e is provided to meet the requirements of the NOAA Regulations on Federal Consistency w i t h approved Coastal Management Programs.

S i n c e r e l y ,

Sharon Perez Permi t Coordinator

SP:bna

ENVIRONMENTAL REPORT,

FEDERAL LEASE OCS-G 8420 EAST CAMERON, BLOCK 364

OFFSHORE LOUISIANA

THE FOLLOWING ENVIRONMENTAL REPORT WAS PREPARED BY J . CONNOR CONSULTING FOR AGIP PETROLEUM COMPANY, INC. FOR COASTAL ZONE CONSISTENCY DETERMINATION BY THE STATE OF LOUISIANA ON OPERATIONS PROPOSED TO BE CONDUCTED IN THE PLAN OF EXPLORATION FOR LEASE OCS-G 8420. FOR INQUIRIES REGARDING THIS REPORT PLEASE CONTACT:

AGIP PETROLEUM COMPANY, INC.

2950 NORTH LOOP WEST, SUITE 300

HOUSTON, TEXAS 77092

ATTENTION: MS. SHARON PEREZ

MARCH, 1988

TABLE OF CONTENTS

• \

TITLE PAGE i

TABLE OF CONTENTS i i

I. DESCRIPTION OF PROPOSED ACTION 1

-\ DE' OPTION OF PROPOSED TRAVEL MODES, ROUTES AND 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 CF AFFECTED ENVIRONMENT 2

A. COMMErr KL FISHING 2 B. SHIPPING 2 C. PLEASURE BO-"TING, SPORT FISHING AND RECREATION 3 D. POTENTIAL OR KNOWN CULTURAL RESOURCES 3 E. ECOLOGICALLY SENSITIVE FEATURES 4 F. PIPELINES AND CABLES 4 G. OTHER MINERAL USES 4 H. OCEAN DUMPING 4 I . ENDANGERED OR THREATENED SPECIES AND CRITICAL 4

HABITAT

I I I . UNAVOIDABLE'*-' '""°ONMENTAL EFFECTS 6

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

H. RECREATION AND AESTHETIC VALUES 7

IV. SUMMARY 8

REFERENCES 9 LIST OF ATTACHMENTS

NO. 1 - VICINITY MAP

- i i -

DESCRIPTION OF PROPOSED ACTION

Agip Petroleum Company, Inc. (Agip) plans to conduct exploration activities on East Cameron Area Block 364, OCS-G 8420. 3 ^

As proposed, the Initial Plan of Exploration for cast Cameron 264 includes drilling six (6) wells from 3 surface locations. At this time, planned commencement date for drilling the first well is on or about April 15, 1988.

A. DESCRIPTION OF PROPOSED TRAVEL MODES, ROUTES AND FREQUENCY

Boats and helicopters will be dispatched from support bases located in Morgan City, Louisiana. The boats will normally move to Block 364 v a the most direct route from Morgan-City, Louisiana. Following is an estimate of boat and helicopter trips to the pro­pose j operations.

Drilling Operations

Supply Boats 4 trips per week Helicopters 10 trips per week

B. ONSHORE SUPPORT BASE

The proposed activities will utilize a supp base located at Morgan City, Louisiana. This base provides «_-t-hour service, a radio tower with'phon° r'tch, dock space, office space, parking lot, equipment jnd sippiy storage space, dtinkinq and d r i l l water, etc. Trit proposed exploration activities will help to maintain this base at its present level of activity. No expansion of the physical facilities or the creation of new jobs is expected to result frcm the work planned in conjunction with Block 364.

C. NEW OR UNUSUAL TECHNOLOGY

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

D. VICINITY MAP

East Cameron 364 is located ap, roximately 115 miles offshore, Louisiana. See Attachment I .

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

lf producible hydrocarbons are found they are likely to be transported to shore through connections with pipelines already in place in or near East Cameron 364.

I I ! DESCRIPTION OF AFFECTED ENVIRONMENT

A. COMMERCIAL FJSHING

LoLisiaria isifche most product ive State in the Gulf in terms of commercial f i s h e r i e s . This has been a t t r i bu ted to extensive coastal marshes and n u t r i e n t input from the Miss iss ipp i and Atchafalaya Rivers. Louis iana contains 64% of the t i d a l marshes along the Gulf .

In Lou is iana , shrimp ( p r i m a r i l y brown and whi te) cons t i tu tes the most impor tan t f i s h e r y . P r H u c t i o n of shrimp in any p a r t i c u l a r year depends l a r g e l y on environr Lai condit ions in the estuar ies during pos t l a rva l rec ru i tmen t . Product ion is good when there i s a warm, dry s p r i n g .

Menhaden are the basis of the Sta te 's largest f i she ry and rank second in va lue . Unl ike the shrimp f i she ry , t h i s f i she ry r ^ates exc l us i ve l y o f f sho re .

Oysters c o n s t i t u t e the t h i r d most valuable f i she ry i n Leuisiana. The mos+ important areas f o r oyster production are Terrebonne Par ish, Ba ra ta r i a Bay, and the Lake Borgne-Breton Sound system. Oyster seed ground reservat ions are located in Ca i l l ou Lake (9,772 a c e s ) in Terrebonne Par ish , Hackberry Bay (4,015 acres) in Jef ferson and Lafourche Par ishes, Bay Gardene (2,666 acres) in Plaquemines Par ish , and Bay Junop (2,448 acres) Terrebonne Parish (Bcudreaux 1981). These areas are managed by the State f o r the tak ing o f seed oys ters . There are about 234,000 acres of p r iva te oyster leases in Louisiana tha t are concentrated in Plaquemines, St Bernard, TerrGbonne, Je f f e r son , and Lafourche Parishes. Public oyster grounds occupy approximately 690,000 acres, most of which are east o f the M iss iss ipp i River (Groat, 1981).

The blue crab i s the S ta te ' s f ou r t h most valuable commerc•.• f i shery species. Blue crabs spend the ma jo r i t y of t h e i r l i v e s in astaurine waters which produce over 90% o f the catch. Other impor t in t f i s h e r i e s inc lude the food f i n f i s h and those f o r I n d u s t r i e purposes, such as pet food.

Although se rv i ce vessels w i l l be passing through nigh densi ty o f fshore s h e l l f i s h areas, they should not i n t e r f e r e wi th Louisiana's commercial f i s h e r i e s .

B. SHIPPING

A shipp ing fa i rway crosses the western por t ion o f Block 364. Surface l o c a t i o n s f o r the s i x proposed exploratory wel ls are not located w i t h i n the fa i rway. Support vessels se rv ic ing Block 364 w i l l probably u t i l i z e the fa i rway to gain access to the exploratory opera t ions ; however there should be l i t t l e or no impact on shipping r e s u l t i n g from these opera t ions . The d r i l l i n g r i g and each of the marine vessels w i l l be equipped wi th a l l U.S. Coast Guard required nav igat iona l sa fe ty a ids .

C. PLEASURE BOATING, SPORT FISHING AND RECREATION

Spdrt f i sh ing ; in Louisiana is a very popular form of recreation. Louisiana's caastal marshland with few roads reaching the shoreline has] l im i ted flfening access and precludes fu l l u t i l i za t ion of the saltwater f ishery resources. Nevertheless, a high percentage of Louisiana residents own or have access to boats. Spor:. f isning around offshore o i l anc yai r igs is popular. Results of recreational f isheries surveys by Pitton and Graefe (1978) in the northwestern Gulf of Mexico's Hour.:on-Galveston area indicated that only one- th i rd of the boating popu'. .tion was saltwater fishermen and only 5% f ished offshore. However, o i l and gas structures attracted more f i sh ing than any other structure, natural or a r t i f i c i a l (87% of the boats and 50% of a l l offshore recreational f ishing e f fo r t were d i rec t l y associated with o i l and gas platforms). Offshore fishermen were estimated to have contributed over f ive milli-on dollars to the local economy. [The Ecology of Petroleum Platforms in the Northwestern Gulf of Mexico; A Community P ro f i l e ) .

Boating in Louisiana's coastal arens is most often related to recreational f ish ing. Water ik.inc, and sai l ing are growing in popular i ty , especially in estuarine lakes near South Louisiana's major urban centers.

Hunting is a popular recreational ac t iv i ty in Louisiana. A ' a r i e t y of water fowl are taken throughout the coastal marshes. There are three state w i l d l i f e refuges and numerous state and federal b io log ica l l y sensitive land areas onshore from the area of operation.

With the exception of Grand Is le and ' i c i n i t y and a stretch of beach area in Cameron Parish, (Peveto/Const«.nce/Ocear. View Beaches, Holly Beach, Hackberry Beach) Louisiana has v*ry l imi ted beach area suitable fo r recreation. Most of i t is very narrow, of poor recreational qual i ty and generally inaccessible by automobile, some of the highest quali ty beach areas in coastal Louisiana are found along the barr ier islands chain o f f Terrebonne Parish.

Several addit ional s ign i f icant recreational resources are found along the Gulf Coast. Louisiana has ornamental gardens, scenic roads, r i v e r s , and t r a i l s . No adverse impacts are anticipated since the referenced ac t i v i t y w i l l consist of boat and helicopter travel only.

D. POTENTIAL OR KNOWN CULTURAL RESOURCES

East Cameron 364 l ies outside the Cultural Resources Sensit iv i ty Demarcation Line (USDI, 1983, Visual 11), and therefore, does not f a l l in an area where cultura" 1 resources are l i ke l y to be found. An archaeological survey was not required for East Cameron 364. Aqip agrees that i f any s i te , s t ructure, or object of h istor ical or archaeelogical significance should be discovered during any operation, the findings w i l l immediately be reported to the Regional

D r.actor and every reasonable e*iu*-t will be made to preserve and Dvotect th? cultural resource rrom Manage until the Regional firfector gives 2?rectior*s A> to ies preservation.

ECOLOGICALLY SVliPIVE FEATURES

There are no areas of particular c incern within, East Cameron 36*. However, there ara several areas 01 envi ror.mente 1 concern that lie onshore from tht lease site These include (1) Sabine Pass Lighthouse State Commemorative Area, (2) Paul J. Rainey Wildlife Refuge, (3) to-kefelIer State Wildlife Refuge, (4) Louisiana State Wildlife Refugt, and (5) Rutherford Beach State Park and other recreational beaches.

Clean Gulf Associates has prepared and distributed to members, maps of the coastline cf the Gulf of Mexico listing environmentally sensitive areas onshore and near-shore which mtght be affected by an accidental hydrocarbon release.

Since the entire coastline of the state of Louisiana can be considered environmentally sensitive in varying degrees, there is no benefit seen in listing all the major bays and wildlife refuges along the coast. No adverse impacts are anticipated by vessel traffic passing through the coastal waters of Louisiana.

F. PIPELINES AND CABLES

East Cameron 364 is clear of pipelines and cables.

G. OTHER MINERAL USES

The activities proposed for East Cameron 364 will nave no direct cr indirect impact on other mineral uses.

H. OCEAN DUMPING

Ocean dumping is prohibited in this area.

I . ENDANGERED OR THREATENED SPECIES AND CRITICAL HABITAT

Five federally listed endangered whale species occur within the Central Gulf. These include fin, humpback, right, sei, 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 -ouisiana Delta and of:"shore Brownsville (Fritts et al., 1983). Four federally listed endangered turtle species (Kemp's ridley, qreen, hawksbill, and l3atherback turtles) and one threatened

(T ;cce*-head turtle} occur in the Gulf cf Mexico.

The American alligator occurs generally throughout the Central Gulf coastal areas. The alligator is listed as endangered throughout its rahge except,in tne coastal areas of Florida and Texas-where i t is listed as threatened and in Louisiana where i t is listed as "threatened ukj similarity of appearance".

Th'e red-cockaded woodpecker occurs primarily i,n mature open pine forest th roughs u; ih. i izizrn 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 endangered eskimo curlew's northward migration corridor crosses the Louisiana and Texas coastal areas.

Brown Pelican's occur along the coast of Cameron Parish, Louisiana. Bald eagles inhabit several Gulf coastal counties.

These species may be affected by the development of coastal lands and/or the occurrence of oii spills which may affect the species directly or through their food sources. Since the proposed activities include no plans for the development of the coastal 1 ar s, the impact on endangered or threatened species is primarily based on the occurrence of oil spills.

On pages 111-5 through 111 -72 of the Final Environmental Impact Statement for OCS Sale No. 47 there is a discussion of the factors for estimating the significance of oil spills and their impacts. The impacts on various endangered and threatened species will depend on the nature of the sp i l l , weather conditions, proximity of spill to species, tolerance for oil of species, and the response time and effectiveness f the oil Si i l l cleanup and containment services. Givei these variables, the impact on the various endangered or thre^,ened species will vary from l i t t l e or no effect to serious. The experience of oi; and gas exploration in the Gulf of Mexico indicate th^.t there is a small probability of an occurrence of an oil s p i l l . The Draft Environmental Impact Statement (DEIS) for OCS Sale A-62 and 62 indicates or. page 71 that "the aggregate 15 year spill rate is .0009 percent of tne total volume producea". Table 7, page 73, of tne DEIS indicates that there have been only 30 incidents of oil spills for this 15 year period. The probability remains low because of the level of technology used by the oil and gas industry to injure safe and responsible operations.

Agip as a prudent operator, will take the necessary measures to reduce the probability of oil spills. Agip's proposed exploration operations on Block 364 should not pose a threat to any endangered or threatened species.

'. UNAVOIDABLE ADVERSf ENVIRONMENT EFFECTS

A. WATER QJALITY>

Drilling ac:iVities .vii"! temporarily reduce water quality adjacent to/the location. This will increase turbidity in a plume down-cur­rent from the work sites. Released waters and<a minor oil so'l1

ecu.... else cciitribut*} to Wu-er . . - i i i , . - 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 wil be both mechanical nd toxicological. Discharge of hole cuttings will damage plankton within the plume and bury some of tli»? less mob e benthic fauna. These impacts are considered to be ""ocalized, short term and reversible at tf population lev .

An oil spill cou>o aTfe-.t a broad spectrum of marine organisms. However, most effect; .'juld be localized and short term. Any effects on nanimals and turtles would be significant.

C. WETLANDS AND ctACr!

In th? unlikely event of a spill occurring and reaching shore, organisms in wetland and beach habitats could be killed or functionally imptired. Human community disruption could also occur. Although a l 1 such effects would be localized, any effects on endangered species nd/or critical habitats would be significant.

D. AIR QUALITY

The air qiality at tho lease site will be degraded temporarily during operations, bi x should return to normal once operations are measurably completed. Offshore activities probably will not affect onshore air quality. Air quality at the onshore base will be only insignificantly redt -A by enshore activities. Any such effect will be temporary.

E. COMMERCIAL FISHING

Of the various tyoes 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 snacqed on underwater stubs causing damage or loss of the nets. In add'tion. . r is conceivable that snags could damage underwater production equipment or pipelines causing a spill of oil or gas.

icause safety equipment is ins ta l led, which shuts in production when .a loss of pressure occurs, the l ikel ihood of a major sp i l l

r result ing! thereby is consider id :.-y small. La:-: frequently, large objects which were Ic&i ovsrbe*#*>£ from petroleum Industry boats,

p:-Tine Jfey b< and platfonrs ara caught b fishing gear result ing in damage to the gear and/or i ts catch of f i sh ; however, occurrence of th is tyoe cf incident is low, Also, commercial risheriiiei: auld probably rc i t / ish in irea of an o i l s p i l l , as sp i l l ed o i l could coat or contaminate commercial f ish species rendering them unmarketable. Other unavoidable adverse impacts include loss of f i sh space caused by insta l la t ion of unburied pipel ines, r igs , platforms, or by other OCS-related structures. There may be some localized competition for shore f a c i l i t i e s . These effects and any effect that the exploratory 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 iq and marine vessels u t i l i z e d during d r i l l i n g operations and ships that use established fairways. However, at night and during rough weather, foq, and heavy seas, ships not using established fairways could col l ide wi th the r i g .

G. CULTURAL RESOURCES

There is only a small probabi l i ty that an unknown cultural resource exists in the lease area.

H. RECREATION AND AESTHETIC VALUES

The r i g and marine vessels may represent an obstacle to some sport fisherman, but such an ef fect is expected to be negligible and not permanent.

Even though exist ing regulations and orders prohibi t indiscriminate l i t t e r i n g of the marine environment with trash, offshore o i l and gas operations involving men, machines, equipment, and supplies is bound to resul t in some l i t t e r i n g of the ocpan. 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 ef fects that normal operations or a minor o i l sp i l l would have on any f i s h stocks imoortant to sport fishermen are also considered to be neg l ig ib ie .

A minor o i l s p i l l and/or non-petroleum f loat ing debris could foul beaches inshore of the lease area. The fouling : r the beaches would be an aesthetic detriment that could adversely affect recreation.

Any e f fec ts on beacH ro^ - ^Mon could adversely affect tourism and, consequently, the local economy.

' \ SUMMARY V

The'proposed a c t i v i t y ' rr- ny* and cpmoleted with ths guarantee of tf.e following .

A. The best available and safest technologies w i l l be u t i l i zed throughout the project. This includes meeting a l l applicable requirements for equipment types, general project layout, safety systems, and equipment and monitoring systems.

B. Al l operations are covered by a Minerals Management Service approved Oil S p i l l Contingency Plan.

C. Al l appl icable Federal, State and Local requirements regarding a i r emission and water qual i ty and discharge for the proposed a c t i v i ­t i es , as wel l as any other permit conditions, w i l l be complied wi th.

D. The proposed ac t iv i t ies described in detai l in the Plan of Exploration w i l l comply with Louisiana's Coastal Management Program and w i l l be conducted in a manner consistent with such Program.

REFERENCES

I . Final Environmental Jmpact Statement, Prooosed Oil and Gas Lease Sales 54, 93 anjd 102, Gulf of Mexico OCS Region, OCS EIS, MMS 84-0057.

2- Final Environment?"1 Imoact Statement. proposed Oil ar>d Gas Lease Sales S4, 98 and 102, Eu*Jl iii r:.¥xiCO <5C3 ikes. uCS £ IS, MMS 84-GC57, visuu,^.

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 File Report 82-03, 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 62.

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.

I I . 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.

Agip Petroleum Co.., Inc

c0» East Cameron 364

VICINITT MAF

•3

PROJECTED AIR EMISSION SCHEDULE FOR EXPLORATION PROJECT

GENERAL INFORMATION

Location of F a c i l i t y :

Distance Offshore: Name of Rig: Operator:

Contact Person: Well Footage to be Dr i l led Well Footage to be Dr i l led Date D r i l l i ng Wil l Begin:

in in

1988: 1989:

East Cameron 364 OCS-G 8420 115 miles Jack-up , Agip Petroleum Company, Inc. 2950 North Loop West, Suite 300 Houston, Texas 77092 Ms. Sharon Perez 33,853' 36,888' April 15, 1988

MAJOR SOURCE (OFFSHORE)

Power used aboard d r i l l i n g vessel; approximate footage d r i l l ed 70,741' .*

Projected Emissions Projected Emissions Emitted (lbs/day)**tons/year (lbs/day)**tons/year Substance T9&T

CO (149) 6.703 (162) 7.304 SO (47) 2.133 (52) 2.324

2 NOx (699) 31.483 (762) 34.306 VOC (56 2.539 (61 2.767 TSP 5 ^ 2.234 54 2.435

Based on 60 hphr / f t . from i , 'Atmospheric Emissions from Offshore Oil and Gas Develop id Production", EPA No. 450/3-77-026, June, 1977.

Emission factors from Table 3.3.o J , "Compilation of Air Pollutant Emission Factors", Third Edi t ion, EPA Report AP-42, August, 1977.

i

' Projected Air Emissions Agip Petroleum Company, Inc. Esst Caitjeron Area,: Block 354 Pane 2 *

MINOR SOURCES (OFFSHORE)*

including hel icopter landing and take-off (10 tr ips/week); supply boat (4 trips/week); loading and unloading operations; and incineration of waste paper (average 750 pounds of waste per month).

Projected Emissions Projected Emissions (tons/j

Emitted Substance Ib8l (tons/year) (tons/year)

}8 — ~ ~ r589

CO .687 .687 SO .022 .022

2 NOx .039 .089 VOC .063 .063 TSP .030 .030

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

TOJrJ AU SOURCES ( to . r ' 'e_arj

CO SO NOx VOC TSP

1988 Rajor o.703 2.133 31.483 2.539 2.234 Minor _ 687 .022 .089 .063 .030

TOTAL 7.390 2.155 31.572 2.602 2.264

1989 FTajor 7.304 1.324 34.306 2.767 2.435 Minor .687 _J322 .089 .063 .030

TOTAL 991 2.346 24.395 2.830 2.465

Projected Air Emissions Agip Petroleum Company, Inc. East Caileron Area^i Block J5*

ONSHORE fSOURCES ,

inese should be about the same as minor sources unless new faciiities 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 = 3400 = 3400(115) = 80,410 tons/year For NOx, VOC, TSP & SO . E = 33.3D = 33.3(115) = 3830 tons/year

As per DOI/MMS regulations, this f a c i l i t y 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.