Io Reply Refer To: FO-2-1 Ootober 13f 1963

Hall-Houston O i i Coiupyny Attention: tio. Kathy Casp 700 Louisiana, Suite 2390 Houston, Texaa 77002

Reference i s made to your Supplemental Flan of Exploration anU accosBL-uaying information received October 6, 1988, for Leaae OCS-G 6164. Block 170, Eigh Island Area. This plan Includes tbe ac t iv i t i es proposed for Wells B, C, and D.

In sccordance v i t h 30 CFP 250.33(e), th la plan ia hereby deeced subeitted and is now beinc consicerea for approval.

Tour plan SPBtro1 g f i f e t f - 3 5*2137 and ahould be referenced i n your cocmainl-cation and c or respond ero e concerning th i s plan.

Sincerely your3,

0 . J . Bourgeois Regional Supervisor Field Operations

bcc: Lease OCS-G 6161 (OPS-3-2) (FILE ROOM)

(0PS-3-1* w/ Public I n f o . Copy of the plan and acronp. i n f o . (PUBLIC RECORDS)

MDJoseph:ock:10/13/83:poecon

HALL-HOUSTON OIL COMPANY RepublicBanlt Center

700 Lggfajjjg, Suite 2390

Houston. Te«»» 77002 (713)22S-0711

FEDERAL EXPRESS

O c t o b e r 5, 1988

M r . D a n i e l J . Bourgeo i s R e g i o n a l Superv isor , F i e l d Operat ions U . S . Department o f t h e I n t e r i o r M i n e r a l s Management S e r v i c e 1 2 0 1 Elmwood Park B o u l e v a r d Kew Or leans , L o u i s i a n a 70123-2394

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

RE: Supplemental E x p l o r a t i o n Plan OCS-G 6164, B l o c k 176 H i g h I s l a n d Area

• O f f s h o r e Texas

Gen t l emen :

E n c l o s e d please f i n d n i n e (9>) cop ie s o f t he Supplemental E x p l o r a t i o n Plan w i t h a s s o c i a t e d A i r O u a l i t y Review f o r Lease OCS-G 6164, High I s l a n d Area . F i v e (5) copies o f t h e s u b j e c t r e p o r t are f o r " P r o p r i e t a r y " i n f o r m a t i o n purposes and f o u r (4) c o p i e s con ta in " P u b l i c I n f o r m a t i o n " ; a l l copies b e i n g marked a c c o r d i n g l y .

E x c l u d e d f rom the P u b l i c I n f o r m a t i o n cop ie s are c e r t a i n g e o l o g i c d i s c u s s i o n s , depth o f w e l l s and s t r u c t u r e map.

Lease OCS-G 6164 i s h e l d by o p e r a t i o n s t h r o u g h November 6, 1988; t h e r e f o r e , H a l l - H o u s t o n O i l Company proposes d r i l l i n g o p e r a t i o n s t o commence on t h e " B " l o c a t i o n by October 2 1 , 1988. Should f u r t h e r i n f o r m a t i o n be r e q u i r e d , p lease c o n t a c t t he unde r s igned .

S i n c e r e l y ,

K a t h y Camp u

Manager , Regulatory A f f a i r s

KC e n c l o s u r e s

Public Infom̂ on'

HALL-HOUSTON OIL COMPANY

SUPPLEMENTAL EXPLORATION PLAN

OCS-G 6164

HIGH ISLAND AREA, BLOCK 176

H a l l - H o u s t o n O i l Company ( H a l l - H o u s t o n ) , as Operator o f t he s u b j e c t b lock , submi t s t h i s proposed Supplemental E x p l o r a t i o n P l a n i n accoraance w i t h t h e r e g u l a t i o n s c o n t a i n e d w i t h i n T i t l e 30 CFR 2 5 0 . 3 3 , as f o i l iws :

1 . H i s t o r y of Lease

Exxon Co., U . S . A . , d r i l l e d We l l N o . l under an I n i t i a l P lan o f E x p l o r a t i o n and subsequen t ly plugged and abandoned s a i d w e l l on August 8, 1988. Lease OCS-G 6164 i s h e l d by o p e r a t i o n s t h r o u g h November 6, 1988.

H a l l - H o u s t o n i s he r eby proposing t o supplement the E x p l o r a ­t i o n Plan to d r i l l t h r e e (3) a d d i t i o n a l w e l l s . L o c a t i o n s B , C and D, adjacent t o Exxon ' s We l l No. 1 .

2 . Schedule of O p e r a t i o n s

The f i r s t w e l l . L o c a t i o n B w i l l be spudded on o r about October 2 1 , 1988, s u b j e c t t o the a p p r o v a l o f t h i s Supple ­m e n t a l E x p l o r a t i o n P l a n and issuance o f the r e q u i r e d Pe rmi t t o D r i l l . Each w e l l should take a p p r o x i m a t e l y 40 days t o d r i l l . Subsequent w e l l s w i l l be d r i l l e d immedia te ly t h e r e ­a f t e r .

A d d i t i o n a l e x p l o r a t o r y d r i l l i n g must be p r e d i c a t e d upon t h e need t o f u r t h e r d e f i n e s t r u c t u r e s and /o r r e s e r v o i r l i m i t a ­t i o n s . I n a d d i t i o n t o the d r i l l i n g o f the w e l l s , o t h e r a c t i v i t i e s which may be conducted under t h i s Plan would be t h e s e t t i n g o f a w e l l p r o t e c t o r s t r u c t u r e , a s e a f l o o r t em­p l a t e , a v e l o c i t y s u r v e y i n a w e l l b o r e , and s o i l b o r i n g s .

T r a n s p o r t a t i o n f r o m t h e e x i s t i n g onshore f a c i l i t i e s i n Sabine Pass , Texas, t o t h e b l o c k w i l l i n v o l v e t h e use o f one s u p p l y b o a t making seven ( 7 ) t r i p s per week, one crew boat making t e n (10) t r i p s per week and one h e l i c o p t e r making one (1 ) t r i p per week.

Supplemental Explora t ion Plan High Island Block 176 Ha 11-Houston O i l Company

Page 2

3. D r i l l i n q Equipment

The proposed w e l l s w i l l be d r i l l e d w i t h a jackup d r i l l i n g r i g . When a r i g i s selected, the r i g specs w i l l be made a part of the A p p l i c a t i o n for Permit t o D r i l l . Typical diver­t e r and BOP schematics are enclosed herewith as Attachment I .

Safety features w i l l include well c o n t r o l and blowout preven­t i o n equipment as described i n 30 CFR 250.50. T»ie appro­pr i a t e l i f e r a f t s , l i f e jackets, r i n g buoys, etc., as pre­scribed by the U.S. Coast Guard, w i l l be maintained on the f a c i l i t y at a l l times.

4. Location of Wells

The approximate locations of the three (3) wells proposed i n t h i s Supplemental Plan are shown on the accompanying Loca-t i c n Plat, enclosed herewith as Attachment I I , and are described as f o l l o w s :

B Surface: 8840' FEL/8400' rSL of Blk 176 PBHL:

C Surface: 8845' FEL/8400' FSL of Blk 176 PBHL:

D Surface: 8850' FEL/8400' FSL of Blk 176 PBHL:

High Island Block 176 is located approximately 30 miles east-southeast from Galveston, Texas. The water depth i n Block 176 ranges from 50 to 53 fee t .

5. Geological/Geophysical Information

A structure map which i l l u s t r a t e s Hall-Houston's current interpretation of High Island Area, Block 176 i s enclosed herewith as Attachment I I I .

ii Public Information •

Supplemental Exploration Plan High I s land Block 176 Hall-Houston Oi l Company

Page 3

A Shallow D r i l l i n g Hazards Report was reviewed under the I n i t i a l Plan of Explorat ion submitted by Exxon Co. The surface location of the wells proposed i n t h i s Plan i s adjacent to the Well No. 1 d r i l l e d by Exxon, Hall-Houston has enclosed herewith A Shallow D r i l l i n g Hazards Statement as Attachment IV.

6. Archaeological In fo rmat ion

An Archaeological Survey was requi red w i t h the Shallow Hazards Survey Report f o r High I s l and Block 176. Results of t he Hazards Survey Report indicate there are no magnetic anomalies wi th in 500 f e e t of the proposed surface l oca t ion .

7. Onshore F a c i l i t i e s

The service base f o r t h i s area w i l l be Sabine Pass, Texas. Th i s w i l l be an established f a c i l i t y tha t w i l l require no modi f ica t ions .

8. P o l l u t i o n Prevention Information

P o l l u t i o n prevention con t ro l measures w i l l be i n accordance w i t h 30 CFR 250.40. Hall-Houston has on f i l e wi th the MMS an approved O i l S p i l l Contingency Plan f o r the Gulf of Mexico. I n the event of a s p i l l , t h i s Plan w i l l be actuated. H a l l -Houston i s a member of Clean Gulf Associates which provides s p i l l containment equipment and clean-up equipment at s i x Ha l l i bu r ton Service Bases on the Gulf Coast: Galveston and Rockport i n Texas; Grand I s l e , Venice, Cameron and In t racoas ta l C i ty i n Louisiana. I f a s p i l l should occur from the proposed loca t ions , the equipment located at Galveston, Louisiana, would be u t i l i z e d f i r s t , w i t h add i t iona l equipment moved i n from other bases, i f necessary. Fast boat response w i t h o i l boom, skimmers, pump and storaqe tanks would require approximately 4-6 hours, including preparat ion t ime. A heavy equipment system would require approximately 20-28 hours.

Supplemental Explorat ion Plan High I s l and BlocJc 176 Hall-Houston O i l Company

Page 4

inc lud ing six hours preparation t ime . D r i l l cu t t ings and excess d r i l l i n g f l u i d s w i l l be disposed of i n accordance w i t h applicable environmental regula t ions . The d r i l l i n g f l u i d components and add i t i ve s to be used are enclosed herewith as Attachment V.

Enclosed are copies of the f o l l o w i n g in fo rmat ion :

ATTACHMENT NO.

I I I

I I I IV v

Rig Information Location Plats (Well & V i c i n i t y ) Structure Map Shallow D r i l l i n g Hazard Statement L i s t of Mud Components and Additives

Also enclosed i s the A i r Ouality Review.

DIVERTER STACK

EQUIPMENT LIST

I HYOR ILL AWrtJLAR 29-1/2". FLANGEO. SOO PSI

2 ADAPTOR SPOOL 29 -1 /2 " UITH 2 - 12" OUTLETS FLANGE X FLANGE 2 - 12- RO-VALVES ISO PSI U/ KYOMULTC OPERATORS - NO HOSE: NO OIVERTOR

ATTACHMENT I

BOP STACK

EQUIPMENT LIST

•OTTQN C3«.; U Ut'. IO.OOO* U-I5t OM9 mm

55 BASEST u'°°°' «w» «.

55 cSZ.ffS.gr ,0-000' "* lO.MO* *.». awv tx-ist J.S. LIMB caoovc

ATTACHMENT I

/

/

4

/

/

B (PSL) - 8840' FEL/8400' FSL

C (PSL) - 8845' FEL/8400" FSL

D (FSL) - 3850' FEL/8400* FSL

"Public Information

176 196

/

f /

/

/

/

I!

ATTACHMENT I I

HALL-HOU8T ON OIL COMPANY

HIGH ISLAND BLOCK 176

PLAN OF EXPLORATION 10tOOO'SAND

2000' 40CO"

DRILLING MUD COMPONENTS

COMMON CHEMICAL OR CHEMICAL TRADE NAME

Aluminum Stearate "AXTAFLO-S" Barite Calcium Carbonate Calcium Chlordle Calcium Oxid? Cal.ium Sulfite Carboxymethyl Cellulose Caustic Potash Caustic Soda Chrome Lignite Chrome Lignosulfonate Drilling Detergent "E-Pal" Ferrochrome Lignosulfonate Gel

Gypsum Lignite Lignosulfonate "Mud Sweep" "MOR-REX" "Shale-Trol" Sapp Sodi Ash Sodium Bicarbonate Sodium Carboxymethyl Cellulose Sodium Chloride Sodium Chromate Starch "TX-9010" "TORQ-Trim" "Black Magic" "Black Magic Supermix" Diesel

"Jelflake" MICA -P1pe-Lax" "Wall-Nut" Wood Fibers

DESCRIPTION OF MATERIAL

Aluminum Stearate Nonionic Surfactant Barium Sulfate (BaSo4) Aragonite (CaCo3) Hydrophilite (Catl2) Lime (Quick) Anhydrite (CaS04) Carboxymethyl Cellulose Potassium Hydrate Sodium Hydroxide (NaOH) Cnrome Lignite Chrome Lignosulfonate Soap Non-toxic, biodegradable defoamer Derived from wood pulp Sodium mor*,norillonite, bentonite, attapulgite CaSo4.2H20 Lignite Lignosulfonate Cement Pr .-flush Hydroloyzed Cereal sol id Organo-aluminum complex Soilium Acid Pyrophosphate Sodium Carbonate NaHC03 Sodium Carboxymethyl Cellulose NaCI NaCr04.10H20 Corn Starch Biodegradable drilling lubricant Biodegradable drilling lubricant Oil base mud core. Sacked concentrated oil base mud Used to mix certain loss-circula­tion pills Plastic f o i l , shredded cellophane Loss-circulation material Surfactant mixed with diesel Ground walnut shells Loss-circulation material

ATTACHMENT V

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: Commence D r i l l i n g : Footage to be D r i l l e d i n 1988: Footage to be D r i l l e d i n 1989:

High Island Block 176 OCS-G 6164 30 miles Jackup Ha11-Houston O i l Corapany TOO Louisiana, Suite 2390 Houston, Texas 77002 Kathy Camp October 21, 1988 28598' 13098'

MAJOR SOURCE (OFFSHORE)

Power used aboard d r i l l i n g vessel; approximate t o t a l footage to be d r i l l e d 41696'.*

Emitted Substance

CO S02 NOX VOC TSP

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

1988 1989 (142) 5.662 (13C) 2.593 (45) 1.801 (41) .825

(665) 26.596 (609) 12.181 (54) 2.144 (49) .982 (47) 1.887 (43) .864

Based on 6C h p h r / f t . from Table 4-3, "Atmospheric Emissions from Offshore O i l and Gas Development and Production", EPA No. 450/3-77-026, June, 1977.

** Emission factors from Table 3.3.3-1, "Compilation of A i r Pollutant Emission Factors", Th i r d E d i t i o n , EPA Report AP-42, August, 1977.

P r o j e c t e d A i r Emissions H a l l - H o u s t o n O i l Company H i g h I s l a n d Block 176 Page /.

MINOR SOURCES (OFFSHORE)*

I n c l u d i n g h e l i c o p t e r l a n d i n g and take—off ( 1 t r i p / w e e k ) ; supp ly b o a t (7 t r i p s / w e e k ) ; crew boat (10 t r i p s / w e e k ) ; l o a d i n g and u n l o a d i n g ope ra t ions , and i n c i n e r a t i o n o f waste paper (average 750 pounds of waste per mon th ) .

E m i t t e d Subs tance

CO S02 NOX VOC TSP

P r o j e c t e d Emissions ( tons /year : )

1988 1989

076 002 085 010 003

.038

.001

.042

.005

.002

T a b l e s 3 .2 .1-3 , 3 . 2 . 3 - 1 and 2 . 1 - 1 , " C o m p i l a t i o n o f A i t P o l l u t a n t Emission F a c t o r s " , T h i r d E d i t i o n , EPA Report AP-42, A u g u s t , 1977.

TOTAL ALL SOURCES ( t o n s / y e a r )

1988 CO S02 NOX VOC TSP

M a j o r 5 .662 1.801 26.596 2.144 1.887 M i n o r .076 .002 .085 .010 .003

TOTAL 5.738 1.803 26 .681 2.154 1.890

1988 CO S02 NOX VOC TSP

M a j o r 2.593 .825 12 .181 .982 .864 M i n o r .038 .001 .042 .005 .002

TOTAL 2 . 6 3 1 .826 12.223 .987 .866

P r o j e c t e d A i r Emissions H a l l - H o u s ton O i l Compan" H i g h I s l a n d Block 176 Page 3

ONSHORE SOURCES

These should be about t h e same as mino r sources u n l e s s new f a c i l i t i e s are i n s t a l l e d a t the onshore base. No a d d i t i o n a l f a c i l i t i e s are r e q u i r e d o r planned a t t h i s t i m e .

EMISSION EXEMPTION DETERMINATION 2/3 2/3

F o r CO: E = 3400 = 3400(30) = 32,827 t o n s / y e a r F o r NOx, VOC, TSP & S02: E = 33.3D = 33 .3 (30 ) = 999 t o n s / y e a r

As p e r DOI/MMS r e g u l a t i o n s , t h i s f a c i l i t y i s exempt f r o m f u r t h e r a i r q u a l i t y review as i t has been de t e rmined t h a t i t s o p e r a t i o n s w i l l n e t have a s i g n i f i c a n t adverse e n v i r o n m e n t a l impact on a i r q u a l i t y .