{erg. sgd.) b. shrestha · 224 aviation rd. houma, louisiana 70363 dear ms. sweeney: reference is...

Fp ^ 0 / 2 . 0 IS

In Reply Refer To: GE 1035A May 20, 2016

Ms. Diane Sweeney Dundee Kinetica Partners, LLC 224 Aviation Rd. Houma, Louisiana 70363

Dear Ms. Sweeney:

Reference is made to Kinetica Partners, LLC's (Kinetica) Right-of-way (ROW) relinquishment and decommissioning application dated August 17, 2015, and received by this office on September 1, 2015, for ROW No. 0CS-G29126, Pipeline segment number (PSN) 18599. Your application was further supplemented by additional information received on March 21, 2016.

Specifically, Kinetica requests to relinquish the pipeline ROW OCS-G29I40 in its entirety and decommission PSN 18599 in place. During decommissioning the pipeline will be cut, flushed and filled with uninhibited seawater, plugged, and the ends buried. The valves integral to the line will be removed. A 5-foot section of pipe will be removed upstream of the disconnected flange at the terminating subsea tie-in (SSTI), and the valves SSTI will be removed.

PSN 18599 associated with ROW OCS-G29140 is described as follows:

PSN Size, OD

(inches)

Length (feet)

Service Origin Termination

18599 20 49,118 Gas Flange 36-inch SSTI Vermilion Area Vermilion Area Block 241 Block 245

Pursuant to 30 CFR 250.1000(b), Kinetica's request to relinquish the ROW is hereby approved with an effective date of September 1, 2015. Additionally, pursuant to 30 CFR 250.1751, your request to decommission PSN 18599 in place is hereby approved, and in accordance with 30 CFR 250.1010(h), the requirement that the pipeline be removed is hereby waived. However, pursuant to 30 CFR 250.1754, please be reminded that you may be ordered to remove the pipeline, if the Regional Supervisor determines that the pipeline is an obstruction to navigation or any Outer Continental Shelf (OCS) activities.

You must cease transporting hydrocarbons through this pipeline immediately and complete the aforementioned decommissioning operations within 180 days of thc date of this letter.

Please be reminded that, pursuant to 30 CFR 250.1753, you must submit a decommissioning report to this office within 30 days of the completion of the project. Your report should contain a summary of the decommissioning operations including the date it was completed, a description of any mitigation measures taken, and an indication that the pipeline was decommissioned in accordance to the approved procedure.

If you have any questions conceming this approval letter, please contact Mr. Forna Diphicyl at (504) 736-2659 or by e-mail at forna.di [email protected] or Ms. Angie Gobert at (504) 736-2876 or by e-mail at an>zie.uobert(@,bsee.uov.

Sincerely,

{erg. sgd.) B. Shrestha

For: Bryan A. Domangue Acting Regional Supervisor Regional Field Operations

bc: 1502-01 Segment No. 18599, ROW OCS-G29140 (GE 1035A) 1502-01 ROW OCS-G29140 (Scanning-update) (GE 274E) DiphicyF:G\FO\Pipeline\Letters\ATyped\Forna\ROW_Decommissions\PSN 18599

/ u

P A R T N E R S L L C

August 17. 2015

Bureau of Safety and Environmental Enforcement (iulf of Mexico OCS Region 1201 Hlmwood Park Boulevard New Orleans. LA 70123-2394 Attention: Angie (iobert

MS 5232

Bureou olSokly snd Flliiiwjid U M M I E • ij

R E C E I V E D SEP 012015

Office of Field Operations Pipeline Section

Re: Decommission/Relinquish OCS-G 29140. Segment No. 18599, Vermilion Block 241A Line. 509A-1100

Dear Angie:

In accordance with Title 30 CFR Part 250, Subpart J, 250.1006 and 250.1019, Kinetica Partners. LLC hereby requests approval to decommission and permanently abandon approximately 9.30 miles of twenty inch (20") pipeline in the Vermilion Area, Gulf of Mexico, offshore Louisiana. Kinetica hereby requests approval to relinquish the pipeline right of way associated with this abandonment in its entirety. Kinetica is requesting this permanent abandonment and relinquishment based on the fact that there is no future use for this pipeline.

Enclosed please find the Pipeline Decommissioning & Abandonment Procedure, along with red-marked drawings depic.ing the proposed work to be performed.

Also, enclosed is Kinetica's Pay.gov receipt covering the fees associated with this decommissioning/relinquishmenl request.

Ifyou should require any addilional information regarding this matter, please call Kurt Cheramie al (985)209-2283.

Sincerely.

inelica Partners. LLC

Diane Sweeney Dund Vice Presideni

cc: File

224 Aviation Rd. - Houma, LA 70363 - 985.879.3516

Pipeline Flushing & Abandonment Procedure

Drafted: August 17, 2015

Segment No. 18599

Si2e 20"

Length 48,952 Feet

Origin: Vermilion 241 Subsea valve

Termination: Vermilion 245 SSTI

Service: Gas

MAOP: 1250

Line Type DOT

Line fill volume 17,509 barrels

Work Objective:

The work consists of flushing any hydrocarbons from the pipeline prior to the permanent abandonment.

This procedure is wri t ten to pump water from the originating subsea valve in VR. BLK. 241 towards

Kinetica's subsea assembly at Vermilion Blk. 245. The pipeline will be abandoned in place wi th untreated

seawater.

Reason for Abandonment:

The pipeline segment is no longer necessiary due to the end of economic life of the associated well(s)

and platforms(s).

1. Mobilize DSV to VR. BLK. 245 SSTI. Pin open check valve A, close valve E, and open valves FSiG.

2. Mobilize DSV to the subsea ball valve A in VR. BLK. 241. Install a temporary pig launcher wi th pig

inserted onto valve.

3. Hook up high pressure hoses and manifold to pig launcher.

4. Open ball valve A and begin running pig with high pressure water pumps. Monitor liquid

injection totals and pressure for pressure spike indicating the pig has reached the SSTI.

5. Upon pressure spike shut down pumps and close valves H, F, and G, at VR. 245 SSTI.

6. Slowdown 20" pipeline down thru temporary launcher to surface to zero.

7. Remove temporary launcher and reinstall blind flange to Valve A. Cover to a -3' of cover.

8. Set up at 12" SSSv'lBOl in VR. BLK. 241. Cut and remove complete SSTI. Install foremen plugs

into both side of 20" pipeline and zover to a -3' of cover.

9. Set up at 12" SSSV 1201 in VR. BLK. 242. Cut and remove complete SSTI. Install foremen plugs

into both side of 20" pipeline and cover to a -3' of cover.

10. Set up at 12" SSSV 11^1 in VR. BLK. 243. Cut and remove complete SSTI. Install foremen plugs

into both side of 20" pipeline and cover to a -3' of cover.

11 . Set up at 20" 509A-1101A SSTI VR BLK. 245. Disconnect flange A and cut and remove

approximately 5' of the 20" pipeline upstream of flange A and install a foremen's plug into 20'

line. Install a blind flange to flange A. Cover open ended 20" line to a -3' of cover.

12. Notify the BSEE that the pipeline abandonment work is completed and de-mob.

•c .r- :••

11 (41 £31 e ± 3 CM ace

JC-'M.-' W f.—/ And ^TJ tc-ttl ,i - Witrjm/i njnm

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1 T e n n e M M Gas Plp«<in« C o m f M n y

TtMCSsa a u w t u x co

TO-F2-5C9VI IOC1A

I

M C R I A L SUMMARY

• I * • ' • - . t o -

| Temporary Pig Launcher

BLUE WATER-VERMILION BLK 241A LN

UNE NO 509A-1100 SOB-SEA VALVE DETAILS

TO-F;-509A-IIOO-IB ^rfT t

Pay.gov - Receipt Page 1 of

Paygov Receipt Your payment is complete

Pay gov Tracking ID. 25N5IAV6 Agency Tracking ID: 74865793095 Form Name: Application to Decommission | pipeline - ROW Application Name. BSEE Application to Decommission a ROW Pipeline - BU

Payment Information Payment Type Debit or credit card Payment Amount: $2,170.00 Transaction Date 09/01/2015 03:29:42 PM EDT Payment Date: 09/01/2015 Region: Gulf of Mexico Contact: kurt cheramie 9852092283 Company Name/No: kinetica partners, llc, 03203 Pipeline Segment No: 18599 Originating Area/Block: Vermilion VR 241 Terminating Area/Block Vermilion VR, 245

Account Information Card Holder Name: kurt cheramie Billing Address 224 aviation road Billing Address 2: City: houma Country United States State/Province: LA ZIP/Postal Code: 70363 Card Type Master Card Card Number: • • ' • • " • • • "1095

Email Confirmation Receipt No confirmation email was provided during the creation of this transaction

https://www.pay.gov/public/colleetion/eonlirm/printy25N5IAV6 9/1/2015

Kinetica Partners, LLC

440 Louisiana Lyric Centre. Suite 425

Houston, Texas 77002

GOM COMPANY*: 3203

Texas limited liability company Modified: Approved: 02-Aug-11

AUTHORIZED TO CONDUCT THE FOLLOWING BUSINESS:

OIL & GAS RIGHTS-OF-WAY

ALTERNATIVE ENERGY

Yes Yes No

AREAWIDE BONDS:

3M DEVEL: No IM EXPL: No

300K * REAWIDE: No PIPELINE: No

Supplemt Exempt: No

EEO Plan: No

Debarment: No

Qualification documents received on 7/12/11, and approved on 8/2/11

NAME

Steven L. Cummings Diane Sweeney Dundee Troy Eckard Anne B. Keller Gary V. Woods

TITLE

Secretary Vice President Vice President Vice Preside nt President

EXPIR. DATE

NOW, THEREFORE, BE IT RESOLVED, that the Company be, and it hereby is authorized, empowered and directed to cause its duly elected officers to wit: Gary V. Woods, President, Troy Eckard, Vice President, Diane Sweeney Dundee, Vice President, Anne B. Keller, Vice President, and Steven L. Cummings, Secretary, and to be properly recorded and registered with the Bureau of Ocean Energy Management, Regulation and Enforecement as the duly authorized representatives ofthe Company, to be those persons authorized of record to enter into agreements and bind the Company with respect to all documents and instruments, including but not limited to any application, bid, lease, bond, assignment, relinquishment, other paper, and any instrument or agreement pertaining to oil and gas leases and pipeline rights of way, that may be filed with the office of the Bureau of Ocean Energy Management, Regulation and Enforcement: and ....

THIS LIMITED LIABILITY COMPANY IS COMPRISED OF THE FOLLOWING ENTITIES:

FSH Midstream, LLC McCombs Family Partners, Ltd. Midstream Development Partners, LLC Gary V. Woods

Term: Perpetual

Kinetica Partners, LLC GOM COMPANY*: 3203

Page 1 of 1 09-Sep-15

VR 241 A

•'- - o /x

VR 240

VR 243

VR 239

£R6 rev

VICINITY MAP SCALE IN UILES

THESE PLATS TO BE USED FOR REGULATORY PERMITTING PURPOSES ONLY

J Ml. 1.5 Ml. 0' 3 Ml. NO. OATE BY DESCRIPTION PROJ ID APPR.

R E V I S I O N S

DMslor: GC

LA

Section:

Op Area: Kinder

Co /Pa r . : Offshore

Township;

Oft: emc Dote

Chk: tdb Date

Appr: Dote

2 / 1 5 / 1 2

2 / 1 5 / 1 2

Range:

Project D: 151009

Scale: 1* » 3 Mies

F len ame: 2012.0099P01.d»>9

Re—aquire Right of Way for Existing 20" T.G.P. Pipeline No. 509A-1100

In Vermilion Area Blocks VR 241 throu9h VR 245

Offshore Louisiana

ep Tennessee Gas Pipeline an El Paso company

2012.0099P01 Sheet. 1 of 6

Type ocod 00

o cA

VERMILION AREA 12" Tap-Valvo No. 509A-1201 Lat= 28<'36,01.74" Lon= 92,35,18.49n

X= 1.597.134.76 ¥= -21.863.44

6' Newfield txptofatksn Company Segment No 954D

Existing 20" TGP Pipeline No. 509A-1100

Segment No. 5139 9.29 Miles (Total) \ / R 2 4 1

( N A D 27)

( N A D 2 7 )

EC 236 03 CD

C

o CD

E CD O •+—* C/) 03

LLJ

Lat= 28o36,06.93•' Lon= 92036,43.43" X= 1.589.568.22 Y= -21.255.03

(NAD 27)

(NAD 27) Q. p

STATION 0*00 Begin at Existing Bail Valve on T.G.P. Pipeline No. 509A-1100 Segment No. 5139 Lat= 28o36'06.66- , Lon= 92"37'00.47' 2 7 )

X = 1.588.048.00 Y= -21.265.00 (NAC' 27)

VR 242

ca CD

c o

0 >

Existing 20" T.G.P. No. 509A-1100

Point No. X: Y: Description

1 -21,265.00 1,588,048.00 P/L

2 -21,152.70 1,588,441.60 P/L

3 -21,221.00 1,SS8.994 60 P/L

4 21,25503 1,589,568.22 Tap No. 509A-1301 (Approx Location)

5 -21,249.80 1.590,139 20 P/L

6 -21,260.70 1,590,902.40 P/L

7 -21,347.70 1,591,926.60 P/L

8 -21,496 50 1,592,922.00 P/L

9 -21,630.50 1,594,433.90 P/L

10 -21,693.90 1,595,139.90 P/L

11 -21,740.20 1,595,861.30 P/L

12 -21,863.44 1,597.134.76 Tap No. 509A-1201 (Approx Location)

13 -21,849.70 1,598,014.90 P/L

NOTES: Coordinotes shown ore NAD 1927 Dotum La South Zone.


SCALE IN FEET

2000 200 1 NO DATE DESCRIPTION PROJ. ID APPR.

R E V I S I O N S

DMslon: GC

St.: I A

Section:

Dft: emc

Chk: tdb

Appr:

Op. Area; Kinder

Co/Par . : Offshore

Township:

Dale

Dote

Date

2 / 1 5 / 1 2

2 / 1 5 / 1 2

Range:

Project 10: 151009

Scole: 1 ' - 2000"

Filename: 2Q12.CQ99P02.dwg

Re- acquire Right of Way for Existin 20' T.G.P. Pipeline No. 509A-110

In Vermilion Area Blocks VR 241 through VR 245

Offshore Louisiana

A ep

Tennessee Gas Pipeline an Fl Paso company

2012.0099P02 Sheet: 2 of 6

Type: ocod 00

Existing 20" TGP Pipeline No. 509A-1100 Segment No. 5139 9.29 Miles (Total)

VR 242

VERMILION AREA VR 240

Pipeline Crossing Lat= as^s-se 5i n

Lon= 92 '33 '25 .72" ( N A D 2 7 ) X= 1,607.184,05 Y= -22,503.15

VR243

Gulf of Mexico



14 -21,974.40 1,598,982.70 P/L

15 -22,054.10 1,599,948.60 P/L

16 -22,056.10 1,600,980.10 P/L

17 -22,137.00 1,601,979.70 P/L

18 -22,200.60 1,603,014.60 P/L

19 -22,304.40 1,604,025.30 P/L

20 -22,349.10 1,604,928.00 P/L

21 -22,412.30 1,606,107.50 P/L

22 -22,460.20 1,606,92580 P/L

23 -22,503.15 1,607,184.05

Line Crossing 12" Triton Gathering L.L.C.

(Abandoned)

24 •22,649.37 1,608,063.10

P/L

25 -22,699.80 1,609,096.80 P/L

26 •22,743.38 1,610,102.98 P/L

NOTES:

C o o r d i n a t e s s h o w n a re NAD 1927 D a t u m Lo S o u t h Zone .

THESE PLATS IO BE USED FOR

REGULATORY PERMITf ING PURPOSES ONLY

SCALE IN FEET

2m mo ?00ff NO. DATI BY DESCRIPTION PROJ, ID APPR,

R E V I S I O N S

Division:

St,: 1 A

Section:

Oft: emc

Chk: tdb

Appr:

Op. Area: Kinder

Co./Par.: Offshore

Township:

Dote

Dote

Dote

2 / 1 5 / 1 2

2 / 1 5 / 1 2

Range:

Pfoject ID: 151009

Scole; 1 ' - 2000'

Fileiome: 2012.C099P03.dwg

Re-cqui re Right of Way for Existing 20" T.G.P. Pipeline No. 509A-1100


Offshore Louisiana

A


2012.0099P03 Sheet; J of 6

Type: ocod CC

VERMILION AREA

VR 240

27 30

32

-e-

Existing 20" TGP Pipeline No. 509A-1100 Segment No. 5139 9.29 Miles (Total)

VR 243

12" Side Va lve-No. 509A-1121 Lat= 28°35 ,49.46" Lon= 92 031 45.11" X= 1,616,143.43 Y= -23,307.30

(NAD 27)

(NAD 27)

VR 239

as •e e

VR 244

Gu/f of Mexico


Point No. X: Y; Description

27 -22,814.76 1,611,114.68 P/L

28 -22,905.60 1,612,116,49 P/L

29 -22,965.95 1,613,049.67 P/L

30 -23,020.03 1,614,035.69 P/L

31 -23,260.36 1,615,130.4'1 P/L

32 -23,307.30 1,616,146.43 Side Valve No. 509A-1121 (Approximate Location)

33 -23,386.35 1,617,095.50 P/L

34 -23,468.50 1,618,150.07 P/L

35 -23,520.88 1,619,155.91 P/L

36 -23,516.70 1,620,149.84 P/L

37 -23,500.30 1,621,157.41 P/L

38 -23,616.82 1,622,178,83 P/L

NOTES: Coordinotes shown ore NAD 1927 Dotum Lo South Zone.


SCALE IN FEET

2000 mo 200O

NO. DATE BY DESCRIPTION PROJ. ID APPR.

REV IS IONS

DMalon: GC

St.: I A

Section:

Dd: emc

Chk: tdb

Appr:

Op. Areo: Kinder

Co./Por.: Offshore

Township:

Dote

Dote

Dote

2/15/12

2/15/12

Range:

Project ID: 151009

Scale; 1" = 2000" Filename:

2012.0099P04.dwg

Re—aquire Right of Way for Existing 20" T.G.P. Pipeline No. 509A-11G0


Offshore Louisiana


2 0 1 2 . 0 0 9 9 P 0 4 Sheet, 4 of 6 Type: ocod

0 0

VERMILION AREA

VR 239 Gulf of Mexico

39

•e-43

-0"

VR244 Existing 20" TGP Pipeline No. 509A-1100 Segment No. 5139 9.29 Miles (Total)



39 -23,738.06 1,623,118.94 P/L

40 -23,809.40 1,624,113.54 P/L

41 -23,877.45 1,625,112.44 P/L

42 -23,973.72 1,626,077.10 P/L

43 -23,868.82 1,627,306.98 P/L

44 -24,053.72 1,628,128,27 P/L

NOTES: Coordinotes shown ore NAD 1927 Datum Lo South Zone.


SCALE IN FEET

200cr JOOff ff 200ff

Division: GC Op. Areo Kinder

St.: LA Co,/Por,; Offshore

Soction: Township; Range:

Dft: emc Dote; 2 / 1 5 / 1 2 Project ID; 151009

Chk: tdb Dote; 2 / 1 5 / 1 2 Scole; 1" =• 2000'

Appr: Dote: Filename:

2012.0099P05.dwg

NO, DATE BY DESCRIPTION PROJ. 10

REVIS IONS

APPR.

Re-aqui re Right of Way for Existing 20" T.G.P. Pipeline No.509A-1100

In Vermilion Area Blccks VR 241 through VR 245

Offshore Louisiana

ep Tennessee Gas Pipeline an El Par.o company

2 0 1 2 . 0 0 9 9 P 0 5 Sheet; 5 of 6

Type; ocod 00

Existing 20" T.G.P. No. 509A-1100 Point No. X: Y: Description

45 -24,127.95 1,629,208.14 P/L

46 -24,189.?)6 1,630,219.42 P/L

47 -24,181.42 1,631,212.54 P/L

48 -24,248.31 1,632,179.71 P/L

49 •24,292.78 1,633,268.51 P/L

50 -24,419.58 1,634,227.05 P/L

51 •24,568.71 1,634,952.19 P/L

52 •24,671.71 1,635,238.35 P/L

53 24,794.61 1,636,246.08 P/L

54 •24,740.51 1,636,859.52 P/L

NOTES: Coordinates shown are NAD 1927 Datum Lo South Zone.


SCALE IN FEET

2m mo 2000

NO. DATE BY DESCRIPTION PROJ. ID APPR

R E V I S I O N S

Dlvtafon: GC

St.: LA

Section:

Oft: emc

Chk: tdb

Appr:

Op. Areo: Kinder

Co./Por.: Terrebonne

Township:

Dote: 2 / 1 5 / 1 2

Date: 2 / 1 5 / 1 2

Dote:

Range:

Projecl ID: 151009

Scole: 1* - 2000"

Filename: 2O12.0099PO6.dwq

Re-aquire Right of Way for Existing 20" T.G.P. Pipeline No. 509A-1100


Offshore Louisiana

ep Tennessee Gas Pipeline an Fi Paso company

2012.0099P06 Sheet; 6 of 6

Type; ocod 00

l-

N

as

- Ja J3

< UJ < Z 0

LU

>

. .Ot-*T

7

\\ i l *V/

a5 Nl /

Existing 20" TGP Pipeline

No 509A-1100 y ^

Segment No 5139

9.29 Miles ( T o t a l ) ^ ^ / ' i4>

v

C II WM

R E V I S I O N S

Op Area

Co./Por.:

Ot EMC Dot* J/iS/ '2 Scot.

Chk TM Dot* 2/15/12

»j>pf Oal* n ^ o

Not lo Sci<«

2012 O O W S d ^ a l k

Schematic Showing Existing 20" T.G.P. 5 0 9 A - n 0 0 Pipelire in Vermilion Areo

Blocks VR 241 through VR245 Offshore Louisiana

Tennessee Gas Pipeline an Ei Paso compan,

2012 0099Schomatic ShMt

AC*D

Natural Bas Companq MEMORANDUM

TO: Jaqueta Crawford DATE: March 26, 1993

FROM: Thomas L . Wr igh t PLACE: O f f i c e o f Genera l Counsel

Re: Off-shore - East Cameron Block 237

In regard to your request for a copy ot the contract between United Gas Pipeline Company and El Paso, please f i n d enclosed a copy of a recent memo to Jimmy Stevens and a copy of the construction c o n t r a c t .

j l e : 6 6 7 : O P 0 2 0

FMI0CCO3A

MI I'L RND

S E I Paso I B Naturol fiat CampinM

TD:915 686 321b MRR '93 16:02 No.004 P.Ob

MEMORANDUM

TO Tom W r i g h t

mow Jaqutoa Crawford

, > A T t March 8, 1993

P i A t : ' Mid land O f f i c e

HEi Abandonment o f BPNO 8" P l p e l i n a East Cameron, o f f s h o r e Lou i s iana

I n r e f e r e n c e t o the a t tached correspondence, El Paso must i n v o i c e U n i t e d O i l & Gas f o r t h e i r p o r t i o n of the p l u g g i n g and abandonment cos t o f the above-referenced p i p e ) l n e .

I t i o our unders tanding t h a t Uni ted Is respormlb le f o r 3 3 1/3 p e r c e n t o f t h e p r o j e c t ootft from NERCO, the t o t a l cost be ing $106 ,9b7 .00 .

Does your o f f i c e handle t h i s matter i n the fo rm o f a l e t t e r , i n v o i c e , e t c . ? Please advise how t h i s matter should bo handled .

Thank you f o r your ass is tance and coopera t ion .

J A C / c l q

cc :

qpteft C r a w f o r d ^ ^

J. V. Willlame File

FM 10 0003

El Paso Natural Bas Compann MEMORANDUM

TO: Jimmy L. Stevens

FROM: Thomas L. Wright

DATE: December 28, 1992

PLACE: Office of General Counsel

Re: Offshore - East Cameron Block 237

Pursuant to our discussions, please f i n d enclosed a copy of the Construction and Ownership Agreement for the l i n e .

On page 13, the Agreemeit mentions an operating agreement t h a t I have been unable to locate. I have located a d r a f t of such an agreement. ( I t was perhaps never f i n a l i z e d . ) I w i l l continue to look f o r i t .

However, t h i s Construction Agreement provides EPNG an adequate basis to send United Gas Pipeline an invoice for 1/3 of the work performed on the Line by Nerco. On page 17 of the Agreement i s the address of United to which the invoice should be sent.

jle:56:OP006

cc: J . F . Nance H. H. Young, J r

-1 • ..7

F M 1 0 W U

MiJLHNU [D:915' 686-321! MOP J6'93 16:03 No.004 P.O?

pXuHVo n o t i f y Mr. n rnwfnr r t mJCV* t-h<r protinas o f I s s t t l l H I t h e ch^ok f o r $46,04 3 .00 w i n ho. i n i t i n t e d .

sincerely,

NERCO OIL & GAS, INC.

carter D. Crawi'ord C o n p t r u o t i o n E n g i n a e r i n g c p o c i a J i c t

cue far Attoch»«nt

CDC\KLPAS0_1.CDC

11:915 606 3215 :6:0? No.004 P.06

NERCO /5o 373

S/0 3

NERCO OR-« CAS. INC 103/5 MQ4M0NQ Afi SUITE

FU BOX 7/0»0 HOUSTON TX77£l>OtD

TELEPHONC-(n3J ? 0 f l . '

March h , 1993

VIA FAX TRANBMIBBIQr

E I Paso ifiittiire.1 Oto company OUO P O t r n l a t i T n c a n t e r ; B u i l d i n g 2 Baoo n o r t h A M i d l a n d , T e x a * 79705

A t t e n t i o n ?

Reference!

Centlamen:

Mr. Joaad Wiil iams

Plugging and Abandonment of EJ Paso N a t u r a l Gan Company H 5 / f i " Diameter Gaw Pip»*.Hnft East Camcaron Biock 237, Offshore l o u i s i a n a

I n accordanco w i t h the l e t t e r agreement of November 30, 1992, Werco o i l and Gas, I n o , ("NOG") hac completed t he p l u g g i n g arvl abandonment o f the E l Paso East C'umoron 237 p i p o l i n e . As d e f i n e d i n T t o m 5 o f t h a t a q r o o m e n t , MOC i n t e n d s t o r o n d o r a c r e d i t t o EJ. Paso since thc ac tua l cost f o r the de f ined worK wos less than the e3timQt» of 0183,000.00.

The attached eummQry d e t a i l s thc aofttr; f o r tho P & A work f o r your r«view. Most of the reduced cost i o duo t o not having t o shut i n due t o weather during t h t El Paso p o r t i o n of thc p i p o l i n o work.

The 13C-237 Platform end of thc 0" Bl Poeo l i n e wae c u t a t ar. e l e v a t i o n of 5 f t . above the mud l i n e and 15 f t . o ut from the pXotform. The. p i p e l i n e end wao plugged ond tha top o f pipe wao l e f t w i t h four (4) f e e t of cover. Natural bottom was a t -124 t e e t .

The s e c t i o n of p i p e l i n e pipe at Vermilion 241 was out 13 f t . 3 i n . from the t i e - i n flange face. T«jmc:s*©o Ga:» Pi p e l i n e reguirementa were f o r at l e a s t 10 f t . of pipe to be removed. The p i p e l i n e pipe end wo^ plugged and l e f t w ith thiee (3) feet of oover-

Should you have any gueutiuntj uonoerning t h i s suBuaary, please c a l l carter Crawford at (713) If you agrno with the summary,

ESTIMATED FimflM; EroMMTSaiOMTNG SPREAD COST FROM APP f R0f9S^

Boat

20 hrs. x $207/hr. 4- 4 hn. i $260/hr.

Crew -

Equipment 24 hrs. x $115/hr. =

Depth 10 dives x 5145/divc =

Rounded to

$5,180

S8»523

$2,760

$17,913

S1R,000

Boat ~

Crew =

Equip. •

Rounded io

$5,180

$7,896

tun $15,836

$16,000

0268.WDB Pagc2 of 2

ESTIMATE OF COST TO ABANDON EL PASQ 8 SIT GAS PH'JEI INE FROM EC 237 'V TO VR 241

Mobilization/Demobilization 0.25 x $22,000

Uncover, disconnect & recover tie-in 3.5 days x $18,000/day (sec page 2)

Cut & remove riser bend and plug & cover cut end 1 x $18,000

Pi^ line to flush & fill

Estimated Work Cost

Estimated Weather Cost A x $16,000 (iee page 2)

Total Estimated Cost

$5,500

$63,000

$iaooo ma $89,000

tSASSUL

$153,000

0268:WDB Pagel of ;

1 i g FRPM EC »7 'A' TP VR W

Mobile lion/DtmobiJization 0.25 x $22,000

Uncover, disconnect A recover tie-in 3.5 days x $18,000/day (sec page 2)

Cut & remove riser bend and plug & cover cut end 1 x $18,000

Pig line to flush & fill

Estimated Work Cost

Estimated Weather Cost A x $16,000 (see page 2)

Total Estimated Cost

$5,500

$63,000

$18,000

am.

$89,000

$153,000

Pagel of 1

. EXHIBIT "B"

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Tlic following is thc proposed procedure of NOG to ebondon the El Paso owned natural gat pipeline between E0237 "A and the subset tie-in at VR 241. The pipeline wiD be abandoned in accordance with the regulation! of tbc MMS and in accordance with the requirements of TGP.

1. Notify TGP. J. M. NunnaDy (504) 868-6785 at Houma, La. prior to moving four point moored dhing vessel to subsea tie-in site at VR 241.

2. Uncover subsea tie-in at VR 241.

3. Close thc 8" valves labeled "A" amd "B" on the attached sVcfch. Open the 8" line on the NOG EC 237 "A" platform to allow tbe hne to vent to atmospheric pressure.

4. Disconnect from TOP thc 8" ANSI # RT.J. swivel ring WN, BFW Flange labeled "C".

5. Move the El Paso line to side so a temporary pig launcher with 8" poly pig can bc placed ic thc E Paao 8" bne.

6. Connect hose trom the dive boat to the pig launcher, open vaKe TT and run the pig to thc EC 237 "A" platform with sea water

7. Cut El Paso 8" pipeline at elbow *DH. Close cut end with a phanbew* plug and flange "C* with an 8" 900 # ANSI R.TJ. flange and bury the ends with 3* of cover.

8. Twenty-five percent cf the mobilization and demobilization costs of the boats required to pertorm fhe Work listed above.

0268:WDB Page 1 of 2

\

8XHIBIT '•Aw

NERCO Oil & Gas, Inc. 10375 Richmond Av«M Suite 600 Houston, Teww 77012

Attn; Director/Construction Engineering Telepbone: 713/260.5534 Fax: 713/260-5605

El Paso Natural Oas Cumpany One Petroleum Center, Building 2 3300 North A Midland, Texss 79705

Attn: Mr. Jesse WiUiama Telephone: 915/686-3233 Fax: 915/686-3215

If the foregoing correctly jets forth your understanding of our agreement please signify concurrence by signing both originals of this Agreement and returning one original to NOG at the address listed above

Very truly your*,

NERCO OIL & GAS, INC.

By Name: Title:

ACrF.PTFO nnd AGRFED to this day of December 1992.

EL PASO NATURAL GAS COMPANY

By: £)<t-i v,('/Hfa rJ*-*- -Name: non^id N. BigMe v Ti t l e : V i c e P re s iden t

0268:WDB

remedied with all reasonable dispatch.

Thc teim "force majeure" shall include, but not bc limited to, acts of God strikes, lockouts or other industrial disturbances, acts of the public enemy, wars, blockades, insurrections, riots, epidemics, landslides, lightning, earthquakes, fires, stonns, floods, washouts, arrests and ristraints of governments and people, civil disturbances, explosions, breakage or accident to machinery or lines of pipc, the necessity for testing or maintenance ol or repairs or alterations to machinery, facilities, or lines of pipe, freezing of wells or lines of pipe, partial or entire failure of wells, and any other causes, whether of the land herein enumerated or otherwise, not within the cuntrul of the Party claiming smpension and which by the exercise of due diligence such Party is unable lo prevent or overcome; such term shall likewise include the inability of either Party to acqu re, or delay on the part of such Party In acquiring, at reasonable cost and by the exercise of reasonable diligence, servitudes, rights-of-way grants, permits, permissions, licenses, materials or supplies which arc required to enable such Party to fulfill its obligations hereunder,

16 Thit Agreement shall be binding upon snd inure tn the benefit of the Parties hereto and their respective successors and assigns. Any assignment of this Agreement by any Party shall be cffccuvc only upon at least seven (7) days written notice to the other Party hereto. El Paso shall remain responsible for the costs incurred by El Paso under this Agrccmc nl until it notifies NOG in writing ot the assignment of this Agreement and of thc assignee's acceptance in writing to NOG of the terms of this Agreement

17. The validity and interpretation of this Agreement shall be governed, whenever permissible, by General Maritime Law.

18. If any provision of this /vgreement is contrary to, prohibited by, or deemed invalid under applicable law such invalid provision shall be inapplicable and deemed omitted from this Agreement; prcvided, however, that promptly after learning ofthe Invalidity of such provision, the Parties shall amend this Agreement to replace such Invalid provision with a provision that is valid under applicable law and that has substantially the same economic effect as the invalid provision would have, had it been valid. The invalidity of a provuion shaH not invalidate the remaining provisions of this Agreement

19. Any notice, request, stat ement, invoice, payment or other communication provided for in this Agreement shall be deemed duly given if in writing and sent by facsimile tramniisMon or hy registf rftri or cArtifipd mail addrcwed tn the respective Party at the address stated below or such other address as either shall respectively hereinafter designate in writing from time to time:

employee* and for any low of or damage to the property of NOG or Its employees, which results from, arises out of or is in any way connected to thc Work, whether or not such Injury, death, damage or loss of property is caused by the sole, concurrent or joint negligence, fault or strict liability of El Paso Group. EI Paso shall indemnify, defend and hold NOG and its parent, affiliated and subsktiaiy companies and its and their respective employees, agents and represmtativea, contractors and subcontractors fNOG Group") harmless for any Injury to, or death of El Paso's employees and for any lo» uf ur damage lo the property of Cl Paso or its employees, or the TGP Pipeline or other third party property which results from, arises out of or is in any way connected to the Work, whether or not such ii\|uiy, death, damage or loss of property is caused by thc sole, concurrent or joint negligence, fault or strict liability of NOG Group.

11 El Paso agrees to protect, defend, release, indemnify and hold NOG Group harmless from and against ali claims related to or arising out of pollution or contamlnatiun resulting fromlea]c^or0 other uncontrolled flow of oil gas or water from the

^fo Pipeline or etBSjS M^nc^pmre4^PNOG or its contractors' and sub-contractors* ^ vewels, barge, anchors or other equipment or by NOG's performance of the1. Work that originaies at the site of the Work, whether or not caused by the joint and/or concurrent negligence, fault, or strict liability of NOO Group, the unseaworlhlacss of | any vessel Or any Cause Whatsoever but such indemnity shal l not extend Lo any other claims arising out of pollution or contamination caused by aci ions

13. Either Party hereto may procure such insurance (or self insure) as h deems necessary in discharging its obligations hereunder. AH policies of insurance which are intended to cover any liabilities, cxpcii>ck, k»ses, claims, costs (including attorney's fees), suits, and causes of action incurred by any Party hereunder shaH be properly endorsed to waive the insurer's rights of subrogation, under any such policies, against the other Parties hereto, or said Party's insurers, when said Party is released from liability fbr loss or damage pursuant to this Agreemenl.

o H i

14. This Agreement shall become effective on the datc of the execution, however, NOG and El Paso agree that an executed copy delivered to tbe other Party by facsimile transmission shall be binding and of thc same force and effect as delivery of an executed original. Either Party may terminate the Agreement by providing the other with written notice at least thirty (30) days before the eflfectrvr date of termination.

(0

15. In the event either Party hereto is rendered unable, wholly or In pan, by force majeure to carry out its obligations under thc Agreement, other lhan to make payments due hereunder, it is agreed that, upon such Party giving notice in full of the ^ particulars or such force majeure event in writing or by telephone (followed by written communication) to the olher Party as soon as possible after the occurrence of the event relied on, the obllgadons of the Party gMng such notice. Insofar as they are affected by »uch force majeure, shall be suspended during the continuance of any event so caused but for no longer period, and such cause shall as for as possible be

0268:WDB a

Paeo for tny different b«tw«»n the actual cost incurred hy NOG and thc prepayment described above; provided however, that EI Paso shall be obligated to pay NOO for the total actual cost gf the Work, whether tbc actual coat is more or less than the total estimated cost set forth above.

6. For the purpose of veri riog the conts incurred by NOG under this Agreement El Paso, at its sole cost and expense, shall be permitted to audit NOG's accounts relating to such costs during regular office hours, upon reasonable notice to NOG. Such audit must be initiated within one (1) year after the Work has been completed.

7. In the case of any explosion, fire, storm or any emergency which might threaten life, propeny, or thc environment or render damage to the Pipeline, Platform or third party property or any portion thereof, NOG moy take such steps and Incur tuch expenses as in its opinion are required and can be provided by NOG to deal with such emergency (the 'Emergency Services"). It is understood and agreed that El Paso shall be responsible for all cost and expense incurred by NOG in furnishing the Emergency Services perfonned hereunder and that upon receipt of invoice by El Paso, El Paso will pay NOG tbe amount incurred for fuch Emergency Services.

5. In the event El Paso elects to have a representative board the Plalform or construction vessels utiliicd by NOG, El Paso shall provide NOO with written notice of such election as soon as reasonably practicable.

9. In performance of their obligations hereunder, D Paso and NOG shall be iudepcodem conlraclors and noi employees or agents of tbc other party. El Pa o and NOG shall perform their respective services hereunder in accordance with all applicable, valid requirements of all governmental bodies having or asserting jurisdiction.

10. El Paso agrees that within thirty (30) days after receipt of any invoice aad the supporting documentation from NOG hereunder. El Paso will remit the amount specified in the invoice to NOG. In thc event El Paso tails to make timely payment of an invoice, NOG shaH be entitled to coDect from El Paso tbe amount of said invoice together with interest at a rate equal to two percent (2%) above the priroe'1

rate as then pubhebed from time to time is the Wall Street Journal, from the due date of any such unpaid invoice. If the amount of an invoice shall be disputed in good faith, El Paso shall notity NOO ta writing of tbe disputed portion and shall promptly pay the porton of the invoice not in dispute and provide NOG with a written statement that acceptance by NOG of such payment shaD not prejudice NOG'i claim as to the disputed portion of the invoice.

11. NOO shaH Indemnity, defend and hold El Paso and Its parent, afffliated and subsidiary companies and Its and their respective employees, agents and representatives fEl Ptiso Group") harmless for any injuiy to, or death of NOG's

Platform; (iii) Close the subsea vaKe at the subsea tie-in at thc

pipeline owned by TOP, (iv) Disconnect thc Pipeline from the TOP pipeline; (v) Plug both ends of the Pipeline with plugs

acceptable to the MMS; and (vi) Recover the disconnected ends of tbe Pipeline.

The activities listed above and the additional work required to perform the activities listed above are more particularly described on Exhibit "B" enritled The Scope of Work which is attached to this Agreement and incorporated herein fbr all purposes (the "Work").

2. El Paso agrees to obtain, or assist NOG in obtaining, any and all permits, licenses, rights-of-way, or other interests In property or authorizations ncccs&aiy foi performance of the Work. El Paso agrees to hold harmless and indemnify NOG for any penalties, fines, expenses, costs or iiabfljties caused by its failure to secure such pennits, licenses and rights-of-way as required in this Paragroph 2. El Pa o will notify NOG when all necessaiy authorizations, permits and licenses have been obtained such that NOO may wmraence pcrfunuanw: of die Work.

3. NOG hereby grants El Paso, the righl of ingress and egress to the Platform and consimchon ve«eU ntilfaed hy NOO for the purpose of inspecting the activities to be performed hereunder by NOG. El Paso agrees to reimburse NOG fbr any charge* incurred by NOG under this Section 3.

4. El Paso warrants and represents to NOO that it is the owner of the Pipeline and that title to thc Pipeline shall remain in EJ Paso at all times under this Agreement.

5. El Peao agrees to reimburse NOG for the total actual cost incurred by NOG for performing any services with regard to the Work, including, but not limited to, the cost of ail materials, equipment, supplies and services purchased, or paid to third party contractors, fbr engineering construction, construction support and inspection, all permits, fees and other charges paid to regulatory or governmental agencies, cost of performance bond, charges for NOG's equipment, storage, transportation, personnel compensation, and for taxes, if any, incurred by NOG as a result of thc activities performed by NOO. The estimated cost of the Work is $153,000.00 which is more particularly described on Exhibit "C which is attached hereto.

Upon execution of this Agreement, El Paso shall pay NOO thc sum of $153,000.00 CUKJ upon receipt uf aO necessaiy authorization, pennits and licenses by NOC, NOO will begin the Work. After completion of the Work, NOG shaD render a credit or invoice, including supporting documentation verilying the actual costs incurred, to El

0268:WDB

NERCD M r . I C,. 0 ITP AI IONS

NCAOO OIL k (US. MC. R f r i - l l / F n W l RICHMOND AVE. S Jflj 900 n , - w l v , : l ' HOUSTON, rx no*;

MOOSIOK W rrj^^oew

TRJCOMIH [7T3) MD-MBa

November 30, 1992

El Paso Natural Gas Company One Petroleum Center, Building 2 3300 North A Midland, TX 79705

Attn: Mr. Jesse Wflham;;

RE: Plugging and Abandonment cf El Paso Natural Gas Company 8 5/8' Diameter Gas Pipdine • East Cameron Block 237, Offshore Louisiana

Gentlemen:

El Paso Natural Gas Company ("El PasoM) currently owns the above referenced 8 5/8 inch diameter ga« pipeline which is connected to a platform owned by NERCO Oil A Gas, Inc. fNOG") at East Cameron Bloc< 237 (the "Platform") and extends through East Cameron Blocks 236, 235 and 242 and ends at a subsea tic-in lu a 2(r diameter gas pipeline owned by Tennessee Gas Pipeline ("TOF'). The 8 5/8 inch gas pipeline is more particularly described on the map attached hereto as Exhibit "A" and is hereafter referred to in this Agreement as the "Pipeline."

As you are aware, NOO Is In tbc pruco* uf salvaging and removing thc Platform. As Q result, thc MMS has required El Paso to properly phig and abandon the Pipebne. Because NOG will be performing similar activities al the Platform and in thc general vicinity of the Pipeline, El Paso ha« mitiestci that NOG perform the activities required to plug and abandon the Pipeline. NOG is agreeable to performing such activities under certain terms and conditions which arc set forth in this Agreement Therefore, in consideration of the foregoing and the mutual covenants set forth below, El Paso and NOG agree as follows:

1. NOG will perform, or ca rse to be performed, the following activities on behalf of El Paso:

(i) Flush the Pipeline; (ii) Cut the Pipeline outside tbe riser bend at the

0268: WDB

^7 <^ / ^ —

: J

EC 234 EC 235

EC 236

VR 241 VR 240 VR 239

VR 242 VR 243 VR 244

K i m

m 238

{erg. sgd.) b. shrestha · 224 aviation rd. houma, louisiana 70363 dear ms. sweeney: reference is...

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