In Reply Refer To: MS 5231 November 10, 1992

Enron Oil & Gas Company Attention: Ms. Cheryl P. Murphy Post Office Box 1188 Houston, Texas 77 1-1188

Gentlenen:

Reference is made to the following plan received October 27, 1992:

Type Plan - I n i t i a l Plan of Exploration Lease - OCS-G 12392 Block - 970 Area - North Padre Island Act iv i t ies Proposed - Wells A and B

In accordance with 30 CFR 250.33, th is plan 1s hereby deemed submitted and is now being considered for approval.

Your control number Is N-4372 and should be referenced In your communication and correspondence concerning th is plan.

Sincerely,

(Orig. Sgd ) A DnmM Hirnir

3* D. J . Bourgeois Regional Supervisot Field Operations

DTrocquet: c i c: 10/29/92: POECOM

bcc: , Lease OCS-G 12392 POD Fi le (MS 5032) [MS 5034 w/public In fo , copy of the plan V _jnd_ accomp. In fo .

NOTED

ENRON O I L & GAS COMPANY

P.O. 8ox 1188 Houston. I i u i 77251-1188 (713)85: 6161

Department of the Interior Minerals Management Service 1?01 Elmwood Park Boulevard

October 22, 1992

Orleans, LA 70123-2394 ""^

At tn : Mr. 0. J . Bourgeois Regional Supervisor O f f i c e of Field Operations

RE: OCS G 12392 North Padre Island Block 970 I n i t i a l Plan of Exploration

Gentlemen:

In accordance with 30 CFR 250.33, Enron Oil & Gas Company herein respec t f u l l y submits for approval an I n i t i a l Plan of Exploration for Uell No.'s A, and fi for lease OCS-G 12392, Block 970, North Padre Island.

Enron O i l & Gas Company (Enron) submits nine \9) copies of the I n i t i a l Plan of Exploration • f ive (5) copies are considered "Proprietary In format ion" an are exempt from di closures as allowed for in subsections (b ) , paragraph (9) of the Freedom Information Act (81 Stat 54; 5 U.S.C. 552) as amended by Public Law 93-502. Four (4) copies are considered Public Information and are marked as such. The information bel ieved t o be exempt is geological and/or geophysical. As Operator of th is lease, Enron requests that t h i s information and data be considered exempt and be dispensed for use only by the U.S. Government.

Enron w i l l have a Jack-up r i g on th is lease approximately Apr i l 1, 1993.

Sincere ly ,

PUBLIC INFORMATION

Regulatory Coordinator

9033ct» Part of the Enron Group of Energy Companies

ENRON OIL AND liAS CCMPANY INITIAL PLAN OF EXPLORATION

OCS-G 12392

SECTION ITEM

1 Proposed Type and Sequence of Exploration

Activities and Timetable

2 Description of Drilling Vessel

3 Safety and Environmental Safeguards, Including

Oil Spill Contingency Plan

« Approximate Location of Proposed Wells and Plat

5 Structural Interpretation and Shallow Drilling

Hazards Report

6 Onshore Support Base Facilities 7 Lease Stipulations

8 Estimated Discharge

9 OH Spill Trajectory Analysis

10 Request for H2S Determination

U Mud Components

12 Air Quality Review

3033cp» -1-

INITIAL PLAN OF EXPLORATION

OCS-G 12392

PROPOSED TYPE AND SEQUENCE OF EXPLORATION ACTIVITIES AND TIMFTARIF

Enron Oi l & Gas Company proposes to d r i l l two (2) wel ls on OCS-G 12392, North Padre Island Block 970 to evaluate the subject lease to detrmlne the potential for fu tu re development.

Exploratory d r i l l i ng of the f i r s t well Is scheduled to begin approximately Apr i l 1, 1993, subject to the approval of th is Plan of Exploration and Issuance of the required Permit to D r i l l .

No unusual technology w i l l be used In the d r i l l i n g of these wel ls.

Exploratory act iv i ty should be completed by June 1, 1993.

I t should be emphasized that t h i s schedule 1s tentat ive In the meaning of 30 CFR 250.34-1 (a ) . Additional exploratory d r i l l i n g must be predicated upon the need to def ine structures and/or reservo i r l i m i t s . The fabr icat ion and Ins ta l la t ion of p la t forms, producing f a c i l i t i e s and pipelines are contingent upon the success of these wel ls . In addition to the d r i l l i n g of wel ls , other ac t i v i t i es which may be conducted under this plan would be the sett ing of caissons or a template over temporar i ly abandoned we l ls , a ve loc i ty survey in a wellbore and soi l boring.

ACTIVITY APPROXIMATE PATE

D r i l l Well A D r i l l Uell B

Apri l 1, 1993 May 1, 1993

9033cpm -2-

INITIAL PLAN OF EXPLORATION

OCS-G 12392

DESCRIPTION OF DRILLING VFSSF1

The water depth in North Padre Island Block 970 ranges from approximately 154' to 1 7 9 '

A jack-up similar to the one shown In the l i t e ra tu re attached w i l l be u t i l i zed to d r i l l the wells In th is block. A schematic of the d iver te r system 1s attached along w i th a description of the blowout preventor system.

The jack-up r i g discussed above w i l l be equipped with well control and blowou* prevention equipment as described In 30 CFR 250.56. Appropriate l i f e r a f t s , l i f e j acke ts , r ing buoys, e t c . , as prescribed by the United States Coast Guard w i l l be provided. Pollution prevention and control features w i l l Include a l l necessary coaming drains and holding tanks to prevent contamination of the sea in accordance w i th 30 CFR 250.40 -- POLLUTION PREVENTION.

9033cp«i - 3 -

I 3 5

e " 5000

MARINE 18 BLOW OUT PREVENTERS

DIVERTER SCHEMATIC

TOP VIEW

1

• AS REQUIRED BY OPERATOR

i l f iM DESCRIPTION

1 Diverter spool 2000 psi wp with 8" outlets 2 21-1/4' Shaffer spherical 2000 psi wp 3 8' flanged WKM remote hydraulically operated 1440 psl wp gate valves 4 10' x 8" concentric reducer 5 10' diverter line 10" 3ch 40 10.02' ID x .365 wall 6 Bell nipple

INITIAL PLAN OF EXPLORATION

OCS-G 12392

SAFETY AND ENVIRONMENTAL SAFEGUARDS

Section 4

Safety features during d r i l l i n g operations w i l l include well control a.id blowout prevent ion equipment that meets or exceeds the requirements of 30 CFR 250.56.

011 In any forn shall not be disposed of into waters of the Gulf.

L iqu id waste materials containing substances which may be harmful to aquatic l i f e or w i l d l i f e , or Injurious in any manner to l i f e or property shall be treated to avoid disposal of harmful substances into the waters of the Gulf.

D r i l l i n g muds containing o i l are not disposed of into the Gulf. This type material Is loaded and barged to shore for proper disposal. D r i l l i ng mud containing toxic substances are neutralized pr io r to disposal.

D r i l l cutt ings, sand, and solids containing o i l are not disposed of into the Gulf, unless the o i l has been removed. A table of Estimated Discharges for the proposed wel l locations Is attached as Exhibit "A". North Padre Island Block 970 is covered by NPDES Permit Number GMG 288049.

The subject offshore mobile d r i l l i n g unit is equipped with drip pans under the r i g f l o o r . Al l o i l from Diesel engines is pumped to a sump and then pumped into ba r re l s for return to an onshore s i te .

Operator personnel are instructed In the techniques and methods necessary to prevent pollut ion Non-operator personnel are instructed and supervised to insure tha t non-pollution practices are adhered to .

The f a c i l i t i e s are inspected da i ly .

OIL SPILL CONTINGENCY PLAN

Enron Oil & Gas Company has an approved Oil Sp i l l Contingency Plan on f i l e with the M.M.S. dated December, 1982. The updated plan was submittted to the M.M.S. o f f i ce on June 8, 1992. This plan designates an Oil Spi l l Team consisting of Enron Oil & Gas Company personnel and contract personnel.

This team's duties are to eliminate the source of the o i l s p i l l , removf a l l sources of possible ign i t ion, deploy the most viable means of available transportation to monitor the movement of the s l i ck , and contain and remove the s l ick i f possible.

9033cpm -4

OIL SPILL CONTINGENCY PLAN Page 2

Enron Oil & Gas Company is a member of Clean Gulf Associates (CGA). The CGA has four permanent bases in Louisiana: at Venice, Grand I s le , Intracoastal City and Cameron, and two bases in Texas; caTv on and Port Aransas. Each base 1s equipped with fast response ski. .jnti v re is a barge mounted high volume open sea skimmer based at Grand Is le , m iu£> ion to providing equipment, the CGA also supplies advisors for clean up operations. Enron's Primary Oil Sp i l l Equipment Deployment Base w i l l be Port Aransas. Texas. In the event of an Oil Sp i l l V-.e response time from the Clean Gulf Base at Port Aransas to North Padre Island Block 970 w i l l be H hours. The response time to North Padre Island Block 970 from the CCA base in Port Aransas is the sum of the fol lowing estimated times:

A. Procurement Time: 1. Assemble the equipment and equipment

transportation vessel 4 hrs.

2. Equipment load out and operating personnel 2 hrs.

B. TntYgl Time to employment Si te; 70 miles water t rave l 0 10.0 mph 7 hrs.

C. Equipment Deployment: 1 hrs.

T - *a l Response Time ]4 hrs.

A S i te -s r w i f k 011 S p i l l Contingency plan as described in 30 CFR 250.42 was prepared for North Padre Island Block 970. Please attached Exhibit "B".

9033cpm -5-

INITIAL PLAN OF EXPLORA!* JW

OCS-G 12392

LOCATION QF PROPOSES m i * AND PLAT

WELL

A

B

2400' FWL & 1650' FSL Blr^k 970

2400' FWL & 1650' FSL ' . i B i o - '0

HP?In M A

154'

154'

9033cv< -e

I N ! ' .ML.

PLAN OF EXHORATION OCS-G 12392

STRUCTURAL INTERPRETATIONS AND SHALLOW DRILLING HA7ARDS REPORT

Enron 011 & Gas COMD . > *ss reviewed a l l available H - t a over and proximal to the surface locu 'on cf the proposed wells 1n Nort > fa.1re Island Bl«?cV 970. This dat? 'r.olcates no shallow hazards are expect.d p - n r to sett ing surface casing. See attached geophysical well s i te analysis.

In accordance Wfirli dTL-*2-3 paragraph I I , #A.5, a copy c f the hign-resolutlon survey data f ror ttie two l ines closest to the proposed *e l l w i l l be forwarded t r the regional of f ice when the POE Is subaitted.

<P33cp» -8-

INITIAL PLAN OF EXPLORATION

OCS-C 1239.!

6EQPHYSICALcd/ivsrs :*F HAN OF EXPLORATION

The proposed surf are lccai. 4«*i fo r Wells A \nd 6 i i aa fol lows:

2*00' PrfL & IMO' FSL of North Padi» Island Block 970

A shal' io f hazard/ archaees « ica l survey was perfonned over the block by - u l f Ocean S vices, Inc. during November 10 ami 11, 1991. Oata was co l l ec t * * with the fe'. i wing instruments: 1) sida-scan sonar, 2) magnetometer, 3> echo sounder, 4) subbotton p r o f i l e r , and 5) Sparker system. A report was submitted by the contractor and sent to the NHS on December 19. 1991.

The proposed surface loc i t i o n re la te- to t h i fo l lowing Hnes:

Line 35 shotpoint 14+ Line 5 hotpoint 17.5 Line 6 »i:oi?oint 17.5 Line 7 shoipoim, 17.5

.1 the referenced data for the •,2o:.iiysica! l ines indicated have been review-.d ror any hazards or anomalies.

Enron surfaca location for tha A and B walls is located wi th in a zone of provable gas accu mil a t ion . t u t Is at leasa 1500' to the edge of th is zone. Thin Is non-pressured gassy araa, and should not ca a hazard to d r i l l i n g . No locat ions are closer that 1100' to fau l t 1....a&ents, therefore these fau l ts ara not a hazard to the locat ions. Tha shipping fairway Is 500' west of the surface l o c a t i o n , and Is not ; dazard.

A f t e r reviewing the dav: and reports, i ' . is believe that thc referenced surfaca loca t ion can be safely c r i l i e d using rormal precaution.

Respectful ly submitted,

Marvin H. Goyer I D iv is ion Ge physicist

9033c;*: -9-

INITIAL PLAN OT EXPLORATION

OCS-G 12392

ONSHORE SUPPORT W$l FACILITIES

Enron O i l & Gas Company w i l l use ex is t ing onshore support base f i d T i t i e s of :;«rbor I s l and .Texas. This w i l l serve as port of debarkation fo- •loplles and crews. No onshore expansion or construction 1s ant ic ipated wii» rv;pcct to -i. is a c t i v i t y .

This bare 1 ; c:.p«Dl i of providing the services necessary for th ' ; oroposed act W i t i e r . i t has 24 hour serv ice , a radio tower wi th phone natch, dock space, eqi<->nent «r*d supply storage spare, drinking and d r i l l water, etc.

?'JUcpn -10-

INITIAL PLAN OF EXPLORATION

OCS-G 12392

LEASE STIPULATIONS

In accorciance with Lease St ipu la t ions No. 1, attached to lease North Padre Is land Block 970 the surface locat ion for the wells to be d r i l l e d under th is INITIAL POE, a Cultural Resource Report accessing the potent ial existence of any cu l t u ra l resource for the proposed surface location was addressed in the Shallow Hazards Report prepared by Gulf OCean Offshore Surveys for Enron Oil and Gas in November, 1991 and submitted to the MMS on December 19, 1991.

Lease st ipulat ion No. 3 Is also attached to th is lease, and In accordance with the s t i pu la t i on , Enron Oil & Gas Company w i l l comply wi th Instructions froa the Naval A i r Training Command, Corpus C h r i s t i , Texas concerning boat and/or a i r t r a f f i c .

9033cp» -11-

INITIAL PLAN OF EXPLORATION

OCS-G 12392

EXHIBIT "6"

OIL SPILL TRAJECTORY ANALYSIS

In the event a sp i l l occurs from North Padre Island Block 970, our company has projected trajectory of a s p i l l u t i l i z i n g Information In the Environmental Impact Statement (EIS) for OCS Lease Sales 139 and 141.

The EIS contains o i l s p i l l t ra jec to ry simulations using seasonal surface currents coupled with wind data, adjusted every 3 hours for 30 days or un t i l a ta rge t Is contacted.

Hypothetical sp i l l t ra jec to r ies ware simulated for each of the potential launch s i t es across the entire Gulf. These simulations presume 500 sp i l l s occurring In each of the four seasons of the year. The resul ts In the EIS were presented as probabi l i t ies that an o i l spi ' . l ' eginning from a par t i cu la r launch s i te would contact a certain land segnent within 3, 10, or 30 days, ln revl em* of the summary of the trajectory analysis ( for 10 days) as presented on page IV-112, the probable projected land f a l l of an o i l s p i l l from North Padre Island 970 is as fo l lows. Also l i s ted is the CGA Hap Number corresponding to the land segment which w i l l be u t i l i z e d to determine environmentally sensitive areas t ha t may be affected by a s p i l l .

AREA LANO SEGMENT CONTACT JL CGA MAP NQ,

North Padre Island Aransas County, TX 2% TX Map No. 2 Willacy County, TX 2% TX Map No. 1 Kenedy County, TX 17% TX Map No. 1 Kleberg County, TX 12% TX Map No. 1 Nueces County, TX 5% TX Map No. 2 Cameron County, TX 2% TX Map No. 1

Section V, Volume I I of the CGA Manual containing ips as l i s ted above, also Includes equipment containment/cleanup protection response modes for the sensi t ive areas. Pol lut ion response equipment avai lable from CGA and i ts s tockpi le base is l i s ted in the CGA Manual Volume I , Section I I I .

Section VI , Volume I I of the CGA Operations Manual depicts the protection response modes that are applicable for o i l s p i l l clean-up 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 e f fec t i ve use of the equipment and w i l l result in reduced adverse impact of o i l s p i l l s on the environment. Supervisory personnel have the option to modify the deployment and operation of equipment to more e f fec t i ve ly respond to s i te -spec i f i c circumstances.

9033cpm -13-

INITIAL PLAN OF EXPLORATION OCS-G 12392

HW COMPONENTS

COMPARABLE MUD PRODUCTS

I. ITEMS USFDON A ROUT TNF ^ m

M I MUD

Imco Bar

Imco Gel

Imco Llg

RD-111

Caustic Soda

Aluminum Stearate

Lime

Imco Thin

Soda Ash Bicarb

Poly Rx

Imco MD

Foamban

JULPARK

Barite/Milbar

Mil gel

Ligco

Uni Cal

Ali..'(itnum Ste.rate

HAGCOBAR

Line

Ligcon

Soda Ash Bicarb

Chemtrol-X

M.D.

LD-8

Barite/Magcobar

Magcogel

Tannathin

Spercene

Hydroxide

Aluminum Stearate

Lime

XP-20

Soda Ash Bicarb

Resinex

D-D

Magconol

DESCRIPTION

Barite

Bentonite

Lignite

Blended Lignosulfonate

Aluminum Stearate

Calcium Hydroxide

Modified Lignite

Sodium Carbonate Bicarbonate of Soda

Selected Polymer Blend

Detergent

Defoamer (Usually alcohol based)

9033cp- -15-

MUD COMPONENTS (Cont'd)

I I . ITEMS USED LESS FREOUFNTLY

M I MUD MILPARK MAGCOBAR DESCRIPTION

DNS DMS DMS NonIonic Mud Surfactant

Iaco Loid Mil starch My Lo Gel Pregelantinlzed Starch

CMC CMC CMC Sodium Carboxy Methyl cel lulose

Cypan Cypan Cypan Sod 1um Polyacrylate

Permaloid Perma-Lose Poly Sal Organic Polymer

Drispac Drispac Drispac Polyanionin Cellulose

Gyp Gyp Gyp Gypsum (Plaster of Paris)

HME/Superdril HME/Superdril HME/Superdril Gi lsonite (Treated) Natural Hydro- carbons • Wetting Agent

Black Magic Supermix

Black Magic Black Magic Supermix

Mud Concentrate for spotting f l u i d

Lubrikleen Lubrisal Magolube Orjanlc Lubricant

Imco Myca Mil-Mica Mago-Mica Mica-Flakes

Imco Plug Mil Plug Nut Plug Ground Walnut or other nut hu l ls

I r o n l t e I ron i te

Mil Card

I roni te Synthetic Iron Oxide, H2S Scavenger

Scavenger (Zinc Carbonate)

9033cpn -16-

MUD COMPONENTS (Cont'd)

I I . ITEMS USED LESS FRFQiiENTLY (rnMT )

H I MUD.

Separan

Salt

SAPP

KCL

Kenol-S

Ken-Gel

K^n-Cal-L

VR

MILPARK

Separan

Salt

SAPP

Shale Trol

KCL

III , OTI pacp ffi'P

Imco Spot Mil-Free

Carbo-Tec

Carbo-Gel

Carbo-Mul

Carbo-Trol

MAGCORflR

Separan

Salt

SAPP

KCL

Pipe Lax

Oilfaze & Vertol l

VG-69

DV-33

DV-22

_££SCRj£riON_

Polyacrylamide Polymer

Sodium Chloride

Sodium Acid Pryophosphate

Ograno/Alumlnum Compound

Potassium Chloride

Emulsifiers for spotting fluid

Emulsifiers, gelling agents and fluid loss agents for oil muds

Organiphilic clays for viscosifying

Asphaltic Viscosifier

Organic wetting agents

Fluid loss agents

9033cpm -1/-

i i C J a c I I M i • -4c J . v U i m w i \ W V I U J U L i wtvi I l l l l . . . . I I J J ^ U U J U W

P.O. Box 218753 Houston. Texas 772 ' I (713) 558-0607 Fax:(713)558-8369

10/23/92

PROJECTED AIR EMISSION SCHEDULE FOR EXPLORATION PROJECT

GENERAL INFORMATION

Location of Facility:

Name of Rig: Operator:

Contact Person: Oate Drilling Will Begin:

North Padre Island Block 970 OCS-G 12392 Jack-Up Fnron Oil & Gas Company 1400 Smith Street, Suite 1919 Houston, Texas 77002 Cheryl Murphy April 1,1993

Distance Offshore: Number of Oays to Drill/Complete: Well Footage to be Drilled:

70 miles 60 days

18,560 feet

MAJOR SOURCES (OFFSHORE)

Power used aboard drilling vessel; approximate footage to be drilled 18,560'.*

Emitted Projected Emissions Substance lbs/day* tons/yr

CO 122 3.673 S02 39 1.169 NOx 575 17.252 VOC 46 1.391 TSP 41 1.224

• Based on 60 hphr/tt. from Tabel 4-3, 'Atmoshperlc Emissions from Offshore Oil and Gas Development and Production'. EPA No. 450/3-077-026, June, 1977

** Emission factors from Table 3.3.3-1, •Compilation of Air Pollutant Emission Factors", Third Edition, EPA Report AP-42, August, 1977

PAQE 1

J« OUIUIUR v/unouLiinu

Projected Air Emissions Enron Oil & Qas Company North Padre Island Block 970

MINOR SOURCES (OFFSHORE)*

Crew boats: 5 trips/week Supply Boats: 3 trips/week Helicopters: 7 trips/week

Emitted Projected Emissions Substance Ibs/davMons/yr

1992

CO 0.346 S02 0.011 NOx 0.062 VOC 0.033 TSP 0.015

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

TOTAL ALL SOURCES (tons/vear)

1992 CO SO NOx VOC TSP

Minor 3.673 1.169 17.252 1.391 1.224 Major 0.346 0.011 0.062 0-033 0.015 Total 4.019 1.179 17.313 1.424 1.239

ONSHORE SOURCES

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

EMISSION EXEMPTION DETERMINATION

For CO: E - 3400(0)2/3 = 3400(70)2/3 * 57,749 tons/year For NOx. VOC, TSP & S02: E - 33.3D - 33.3(70) » 2,331 tons/year

FINDINGS OF AIR QUALITY REVIEW

As per DOI/MMS regulations, this facility is exempt form further air quality review as it has -v.i iottrrnined that its operations will not have a significant adverse impac-' air quality.

PAGE 2