Gas Reserve Estimation of Offshore Producible Shut-in Leases in the Gulf of Mexico: A Report (1976)

Below is the uncorrected machine-read text of this chapter, intended to provide our own search engines and external engines with highly rich, chapter-representative searchable text of each book. Because it is UNCORRECTED material, please consider the following text as a useful but insufficient proxy for the authoritative book pages.

38 APPENDIX A: FPC Staff Reports FEDERAL POWER COMMISSION OFFSHORE INVESTIGATION: PRODUCIBLE SHUT-IN LEASES ( First Phase ) January 1974 BUREAU OF NATURAL GAS OFFICE OF ECONOMICS STAFF REPORT Washington, D. C. March 1974

39 TABLE OF CONTENTS Page No. INTRODUCTION AND SUMMARY 1 DATA UTILIZED 3 CLASSIFICATION OF NON-PRODUCING 5 OCS LEASES PRODUCIBLE SHUT-IN LEASES AS 6 OF JANUARY 1974 COMPARISON OF PRODUCIBLE SHUT-IN 14 LEASES, JANUARY 1973 - JANUARY 1974 OFFSHORE OPERATIONAL PROCEDURES 19 INDEX OF TABLES AND APPENDICES Table No. Title Page No. 1 Louisiana and Texas Outer 21 Continental Shelf Federal Oil and Gas Leases Classified as Producible Shut-in as of January 22, 1974 1-A Louisiana and Texas Outer 28 Continental Shelf Federal Oil and Gas Leases Classified as Producible Shut-in as of January 22, 1974 - Lease Ownership

40 Table No, Title Offshore Federal Leases Classified Producible Shut-in as of January 1973 Texas and Louisiana Offshore Federal Domain Leases Classified Producible Shut-in as of January 1973 and as of January 1974 Ten Companies With the Largest Acreage in Texas and Louisiana Offshore Federal Domain Leases Classified Producible Shut-in as of January 1973 Ten Companies With the Largest Acreage in Texas and Louisiana Offshore Federal Domain Leases Classified Producible Shut-in as of January 1974 Page No. 33 38 39 40 Appendix No. A B C Description Correspondence Between Chairman, FPC and Director^USGS Page No. I OCS Order No. 4, August 28, 1969 IV VI OCS Order No. 12, October 13, 1971 USGS Forms for Lease or Well Reports X ii

41 INVESTIGATION OF LOUISIANA AND TEXAS OUTER CONTINENTAL SHELF FEDERAL OIL AND GAS LEASES CLASSIFIED AS PRODUCIBLE SHUT-IN AS OF JANUARY 22, 1974 Introduction and Summary Introduction At the direction of Chairman Nassikas an investigation was conducted by FPC staff members to gather information concerning Federal oil and gas leases in the offshore Louisiana and Texas areas classified by the USGS, of the Department of the Interior, as "Producible Shut-in". The investigation was carried out with the cooperation of officials and staff personnel of the USGS, primarily at the Metairie, Louisiana offices. I/ The main purposes of the investigation were to (1) identify and determine the number of producible shut-in leases, (2) determine the reasons the leases were so classified, and (3) ascertain the availability of the basic reservoir data necessary to estimate the proved reserves attributable to the leases. Summary A producible shut-in lease is a lease upon which one well has been drilled and is determined to be capable of being produced in paying quantities and for which a suspension of production or operations has been approved by the USGS supervisor. The staff investigation indicates that a total of 168 leases are classified as producible shut-in as of January, 1974. Included in this total are 60 leases in their primary 5-year terms, 96 leases in extended terms and 12 leases in exploration or production units. (Table 1) The hydrocarbon production thought to be available from these leases is as follows: T/See Appendix A, Correspondence Between Chairman, FPC and Director, USGS.

42 - 2 - Producible Shut-in Leases Type of Hydrocarbon Total Primary Term Extended Term Units Gas 128 42 77 9 Oil 30 11 16 3 Oil & Gas 5 3 2 Undefined 5 _4 JL _1 Total 168 60 96 12 All unit leases are in extended terms. Additionally, it appears that 8 other non-producing leases not classified as "producible shut-in" may be held by being unitized with leases held by the producible shut-in classification. (Table 1) Of the total 168 leases in primary and extended terms and in units, 40 ±/ are, according to FPC files, dedicated to interstate pipeline companies by gas purchase contracts, and 32 are committed by reason of advance payment agreements made between FPC regulated pipeline companies and the lessees. The 168 leases total 787,972 acres with bid bonuses totaling $1,490,716,000. !/ Numerous reasons were given by the lease operators to justify the extension of leases held beyond their primary term. Principal among these were the need for development plans, and the lack of production, pipeline, or marketing facilities. Other reasons included the need to evaluate drilling data, lack of FPC certificates, lack of drilling rigs for lease development and the need to economically evaluate the leases in light of present wellhead prices. 77Includes 14 leases also covered by advance payment agreements. 3/ Includes 31,250 acres of "Section 6" (former state) leases for which no bonus information is available.

43 - 3 - ' ~~ "" "~ The USGS staff informed the FPC staff that the USGS maintains a large file of logs, test data, maps, and other information necessary to estimate gas reserves on the leases classified as producible shut-in. Minimal data are available on the "Section 6 Leases" (former state leases) but more complete and sophisticated data appears to be available for the remainder of the leases. These files are located in the USGS Metairie, Louisiana offices. It is estimated that it would require approximately 60 days for one 3-man evaluation team to estimate the gas reserves underlying the uncommitted producible shut-in leases. The utilization of additional teams would propor- tionately reduce the overall time required. Data Utilized Three main sources of data were utilized in this investi- gation. One source was the "Serial Register Pages" maintained by the BLM in its New Orleans, Louisiana office. This source provides data as to status of leases, ownership, lease bonuses and lease acreage. A second principal source of basic lease data was the USGS files at Metairie, Louisiana. These files contained items from well files, lease correspondence files and contract files (e.g. producible shut-in classification data, well tests, number of wells, current condition of wells, lease operator and other pertinent items.) The other major data source was the FPC files which supplied information regarding commitment or dedication of leases. All of the data obtained from the BLM and FPC are available to the public with no restriction as to use. Certain of the data available at the USGS however, are considered to be confidential, or proprietary, by both the lease operator and the USGS. The guidelines established by the USGS in its determination of the confidential or proprietary character of information and records in their files are the *ubject of OCS Order No. 12 (August 13. 1971); Public Inspection of Records. (See Appendix C).

44 - 4 - The geological and geophysical interpretations, maps, logs and data required to be submitted under 30 CFR 250.95 and 250.97 are not available for public inspection without the consent of the lessee as long as the lease remains in effect or until such time as the USGS supervisor determines that release of such information is required and necessary for the proper development of the field or area. OCS Order No. 12 specifies that 2 sets of lease or well record forms would be filed on or after December 1, 1970. One set of forms is completed in full. These forms, with attachments, are not available for public inspection. The second set is completed containing only that information available to the public. The words "Public Information" are stamped on this set of forms. Copies of the following forms are included in Appendix D: 9-152 Monthly Report of Operations 9-330 Well Completion or Recompletion Report and Log 9-331 Sundry Notices and Report on Wells 9-331C Application for Permit to Drill, Deepen or Plug Back (Items to be omitted from the "Public Information" set of forms are so indicated by shading.) Upon the commencement of production, additional well completion information becomes available to the public, except that on Form 9-330 Item 37. "Summary of Porous Zones", and Item 38, "Geologic Markers , remain confidential. In the event production has not commenced after five years from the date of filing of the Form 9-330, all information on the form becomes available except Item 37, "Summary of Porous Zones" and Item 38, "Geologic Markers". However, within 90 days prior to the end of the five-year period the lessee or operator may submit objections to the release of other items of informa- tion. The supervisor, taking into consideration the objections of the lessee and the "best interests of the United States", may determine that such information shall not be released. Information reported on the.one confidential set of records filed prior to December 1, 1970 z/, is not readily available for public inspection. Public requests for information must 4/Effective date for filing both public and non-public forms as required in OCS Order No. 12.

45 be submitted in writing and the information is made available in accordance with 43 CFR Part 2. The non-confidential infor- mation must be extracted from the records by USGS personnel responding to such requests from the public. Classification of Non-Producing PCS Leases Lease Term and Lease Term Extensions The successful bidding company for an OCS tract is issued a lease on the standard form Oil and Gas Lease of Submerged Lands Under the Outer Continental Shelf Lands Act 5/ which at Section 4 states: ~— ~ — - — "Term. This lease shall continue for a period of 5 years from the effective date of this lease and so long thereafter as oil or gas may be produced from the leased area in paying quantities or drilling or well reworking operations, as approved by the Secretary, are conducted thereon." In the absence or cessation of production, the lease term may be extended by drilling or reworking operations. (30 CFR 250.35). These extensions are valid for 90 days after the conclusion of drilling or reworking operations. The lease extensions that are important within the scope of this investigation result from and are in accord with 30 CFR 250.12(d) (1) which states as follows: " (d) Other suspensions. (1) In addition to the pro- visions of section 12 (c) and (d) of the act providing for suspension of operations and production, in the interest of conservation the supervisor may direct or, at the request of a lessee, may approve the suspension of operations or production, or both, including the approval of suspension of production for (i) leases on which a well has been drilled and determined by the supervisor to be capable of being produced in paying quantities and thereafter temporarily abandoned or permanently plugged and abandoned to facilitate proper development of the lease, and (ii) leases on which a 57Form 3300-1, February 1971 (Formerly 3380-1).

46 - 6 - well has been drilled and determined by the supervisor to be capable of being produced in paying quantities, but which cannot be produced because of the lack of transportation facilities. Suspensions of operations or production, or both, may be approved for an initial period, not exceeding 2 years, and for succeeding periods, not exceeding 1 year each." Producible Shut-in Leases Whether a lease is in its primary 5-year term or in an extended term beyond the primary term it may be classified as "Producible Shut-in" when it is established that ". . . . at least one well has been drilled on the lease and (is) determined to be capable of being produced in paying quantities. The temporary or permanent abandonment of a well does not pre- clude approval of a suspension of production . . ." 6/ The procedures for determining the capability of producing in paying quantities are set forth in OCS Order No. 4, Suspensions and Determination of Well Producibility. (Appendix B). USGS District Engineers are responsible for the determination that a well is capable of producing in paying quantities. However, the supervisor must approve a suspension of operations or production, in the absence of actual production, to extend a lease beyond its primary 5-year'term. T_l Producible Shut-in Leases As of January 1974 For the purpose of this report, producible shut-in leases have been grouped into those leases in their primary 5-year terms, those leases in extended terms and those leases included in units. Included in the group of leases in extended terms are 7 leases referred to as "Section 6 Leases" (OCS 0044 through OCS 0317). These leases were former State of Louisiana leases that are now in the Federal Domain. 8/ All remaining leases are "Section 8 Leases" which were inTtially issued by the Federal Government. 9/ b/OCS Order No. 4, p. 4-1. 7f Ibid, p. 4-1. 5/ Outer Continental Shelf Lands Act, (67 Stat. 462) Section 6. Approved August 7, 1953. £/ Ibid, Section 8.

47 - 7 - A total of 168 leases were identified as producible shut-in during January, 1974; 60 in primary terms, 96 in extended terms and 12 in units (Table 1). The 12 unit leases are also in extended terms. A search of FPC files indicates that a minimum of 72 of these leases have either been partially or totally committed to pipeline companies by advance payment agreements or have been dedicated by an executed gas purchase contract. Contractural Arrangements "Advance payments" are monies advanced by pipeline com- panies to producers to be used in the exploration and development of prospective gas leases. 10/ In return, the producers commit gas found to the pipeline companies. The producers may reserve a portion of the gas for company use, but may also give the pipelines "first call" on the company reserved gas. The price to be paid for gas is generally not a provision of advance payment agreements although in a few instances gas purchase contracts with pricing provisions are executed at the same time as the advance payment agreement. The agreements generally provide for repayment of the advance in gas or money. Gas purchase contracts dedicating gas and setting pricing provisions may be executed between producers and pipeline com- panies to provide for 180-day emergency sales (Orders No. 491, 491-A, 491-B, and 491-C), 10-A/ limited-term sales for up to 3 years (Order No. 431) or long-term sales for periods of up to generally 20 years. Long-term contracts may be certificated at the applicable Texas Gulf Coast and Louisiana area rates (Opinion Nos. 595 and 598) or at rates under the Optional Pricing Procedures (Order No. 455). TUTOrder No. 410, 44 FPC 1142 (1970). See also Order No. 465 December 29, 1972, and Order No. 499 December 28, 1973. 10-A/ Order No. 491-D, issued March 1, 1974, terminates 180-day term sales on March 15, 1974, and reinstates 60-day emergency term.

48 - 8 - Certain provisions in long-term contracts are particularly germane to this investigation. Most contracts contain a pro- vision permitting termination if the FPC authorization granted is not deemed acceptable by either party to the contract, ll/ Further, these contracts may provide for termination if botn" seller and buyer have not received authorization acceptable to them within a specified period of time. 12/ In some leases designated herein as dedicated, not all of the several lease interest owners have as yet executed contracts and therefore not all of the gas underlying the lease is dedicated. 13/ Additionally, some sellers have not contracted for the sale of 100% of their interests but have reserved portions of their interest for company use. 14/ Provisions in the contract may provide for the transportation of the seller's reserved gas to specific points. Similar reservations of gas may prevail when a lease interest owner dedicates only that gas which is found from the surface to a certain depth or in specific reservoirs under the.lease. 15/ Leases in Primary Terms Leases in the primary term are those leases which have been in force for a period of up to 5 years. During this initial 5-year period there appears to be no requirement that the lease be on production or classified as producible TT7OCS G-2109 Eugene Island Block 306. Hunt Oil Co. Docket No. CI73-740. Producer rejected temporary FPC certificate because of unacceptable price conditions and terminated contract with Michigan Wisconsin Pipe Line Co. 12_/ OCS G-2071, Vermilion Block 147. OCS G-2075, Vermilion Block 201. Texas Eastern Transmission Corp. Docket No. CP74-121. August 24, 1973 contract with affiliated Texas Eastern Exploration Co., permits terminated of the contract if both parties have not received FPC authorization within 150 days. The 150-day period has expired but Exploration has not filed for FPC authorization. 13/ OCS G-2087, Vermilion Block 320. Stingray Pipeline Co. Docket No. CP73-27 et al. FPC records indicate that 5 of the 6 lessees have executed contracts and filed for FPC authorization but lessee Northern Michigan Exploration Co. has not. 14/ OCS G-2127, East Cameron Block 33 (portion). Cities Service Oil Co. Docket No. CI73-728. Section 5(a) of contract dated November 14, 1972 with Tennessee Gas Pipeline Co. Seller commits one-half of gas production. I5_f Ibid. Contract of November 14, 1972 Exhibit "B", Section II. Seller commits only that gas under the lease down to the base of the MJ Sand.

49 - 9 - shut-in. Lease operators may file for the classification prior to the end of the primary term in order to allow time to drill additional wells if the well which is the subject of the initial filing fails to qualify for classification as producible shut-in. Classification as a producible shut-in lease also allows the operator to pay minimum royalty at the end of the lease year instead of annual rentals at the beginning of the year. Since the annual rental and the annual minimum royalty are the same ($3.00 per acre), there is a minor financial advantage to obtaining the producible shut-in classification. Sixty of the 168 producible shut-in leases were in their primary 5-year term in January 1974. These leases total 278,982 acres and required $1,081,126,000 in bonuses to acquire. The number of lessees with an interest in each lease varied from 1 to 12 (Table 1-A). Forty-two of these leases have been classified as gas, 11 as oil, 3 as oil and gas, and 4 as unclassified hydro- carbons . As stated above, leases in primary terms need only to qualify under OCS Order No. 4 in order to qualify as producible shut-in leases. There appears to be no require- ment to put the leases on production (absent drainage from state lease production) or to seek a suspension of production or operations to obtain an extension prior to the end of the primary term. Therefore, the lease operators apparently are not required to give reasons for seeking the producible shut- in classification. The operators of only 8 of the 60 leases gave reasons why the leases were not producing and 6 of these 8 leases are at, or near, the end of their primary terms when extensions would shortly be required.

50 The reasons for the requested suspension of production are as follows : No. of Leases Reason 4 Waiting on platform, production or pipeline facilities. 3 Waiting on market or marketing facilities. 1 Preparing development plan or economic evaluation after physical damage to production facilities (hurricane, fire, or other damage), Of the wells that originally qualified these 60 leases as producible shut-in, 3 appear to be in a producible condition, 2 appear to be shut-in but not abandoned, 21 are temporarily abandoned and 34 are plugged and abandoned with all equipment shot off below the mud line. In order to establish the capability to produce in paying quantities and qualify for the producible shut-in classification, 28 of the qualifying wells had flowing tests or wire line formation tests which proved the presence of oil or gas. Thirty-two of the wells qualified on the basis of core and log analyses. FPC files indicate that a minimum of 33 of the primary - term leases are committed or dedicated to interstate pipelines; 19 committed by advance payment agreements only and 14 by gas purchase contracts. Nine of the leases dedicated by purchase contracts are also committed by advance payment agreements . In general, the primary-term leases are farther from existing pipelines than the older extended-term leases. Of the 60 primary-term leases , 9 are within 1 mile of an existing pipeline; 12 are within 1 to 5 miles; 8 are within 5 to 10 miles; 16 are within 10 to 20 miles; and 15 are 20 or more miles from an existing pipeline, with the maximum being 40 miles. Therefore, 29, or 48%, are within 10 miles and only 21, or 35%, are within 5 miles of an existing line as compared to 66% within 5 miles for the extended-term leases. A total of 35, or 58%, of the primary -term leases are nearer to proposed pipelines than to existing pipelines, as compared to only 9% of the extended-term leases. This is quite understandable when considering that the newer, primary- term leases were generally offered in later lease sales and have

51 - 11 - tended to be farther offshore, more distant from existing pipelines, and in areas just recently being entered by the pipeline companies, (e.g. Stingray Pipeline Co. Docket No. CP73-27 and Texas Eastern Transmission Corporation Docket No. CP74-102,et al.). Leases in Extended Terms All leases in the extended term have been continued beyond the 5-year primary term, with the approval of the supervisor, by establishing the existence of a well which is considered capable of producing gas or oil in paying quantities as explained above. In addition to the well pro- ducing-capability requirement, the operators must also con- vince the supervisor that there is a valid reason why the lease has not been developed and put on production. Of the 168 leases classified producible shut-in, 96 have been extended beyond the primary 5-year term. These leases total 449,005 acres and were obtained by the ex- penditure of $394,685,000 in bonuses. 16/ The number of leasees with an interest in each lease varied from 1 to 10 (Tables 1 and 1-A). Seventy-seven of these leases have been classified as gas, 16 as oil, 2 as oil and gas, and 1 as unclassified hy- drocarbons . There appear to be nine basic reasons for requests for extensions beyond the primary term. The reasons and the number of leases in each category are as follows: (See Table 1). No. of Leases Reason 24 Preparing development plan. 21 Waiting on platform, production or pipeline facilities. 15 Waiting on market or marketing faciliti 11 Waiting on completion of drilling program and or evaluating geological and geo- physical data in order to prepare development plan. 8 Preparing economic evaluation; leases considered marginal by operator at present established wellhead prices. IS?Included are 31,250 acres of Section 6 leases for which no bonus information is available.

52 - 12 -—_ 8 Waiting on, or preparing evaluation of, drilling results on adjacent leases. 4 Waiting on rig (drilling equipment). 2 Preparing development plan or economic evaluation after physical damage to production facilities (hurricane, fire etc. damage). 2 No reason reported. 1 Waiting on FPC certificates. Forty-three of the extended-term leases (excluding the 7 "Section 6" leases) have been extended for periods of from 7 to 15 years. 17/ Apparently only 6 of the wells that originally qualified the above 96 leases as producible shut-in, are currently in producible condition. Twenty-six are temporarily abandoned with underwater casing stubs extending above the mud line; some possibility exists for re-entry and completion of these wells. Fifty-eight of the wells are plugged and abandoned with all casing shot off at least 15 feet below the mud line; little or no possibility exists for re-entry and completion in these holes. Staff was unable to determine the present condition of the qualifying wells in 6 of the older leases. As previously stated, a well must be proved capable of producing under OCS Order No. 4 in order to qualify a lease as producible shut-in. Of the 96 extended-term leases, 70 had producing or flowing tests, or wire line formation tests to prove the presence of oil or gas, 20 were considered proved by core and log analyses and 6 of the older leases had no reported tests or qualifying core and log analyses. FPC files indicate that a minimum of 33 of the extended - term leases are committed or dedicated to interstate pipelines; 13 committed by advance payment agreements only and 20 dedicated by gas purchase contracts. Two of the leases dedicated by pur- chase contracts are also committed by advance payment agreements. A number of existing or proposed pipelines are in the areas in which the extended-term leases are located. Twenty- eight of the 96 extended-term leases are within one mile of an existing pipeline; 35 are within 1 to 5 miles; 19 are within 5 to 10 miles; 13 are at distances of 10 to 20 miles; and only one lease is more than 20 miles (40) from an existing line. Thus 82, or 8570, of these extended-term leases are within 10 miles of an existing line and 63, or 66%, are within 5 miles of an existing pipeline. Excluding 8 leases in units that have been extended- 7 years or more.

53 - 13 - A total of 9 leases are closer to a proposed pipeline than to an existing line. Leases in Units The USGS records indicate that 12 leases which are classified as producible shut-in are included in units. Regulations governing the conduct of mineral operations and development in the Outer Continental Shelf provide for unit agreements. "A unit agreement is defined as an agreement or plan of development and operation for the recovery of oil and gas made thereto as a single consolidated unit without regard to separate ownerships and for the allocation of costs and benefits on a basis as defined in the agreement or plan." 18/ Applicable references are as follows: 30 CFR 266 Unit or cooperating agreements 30 CFR 250.50 Unit Plans, Pooling and Drilling Agreements 30 CFR 250.51 Application for Approval of Unit Plan 30 CFR 250.52 Pooling or Drilling Agreements As of January 22, 1974, the USGS reported 109 units offshore in the Gulf of Mexico, with 105 being offshore Louisiana and 4 being offshore Texas. Of these units, 70 were classified as "Reservoir Units" in 15 separate fields. The remaining 39 are classified as exploratory or develop- mental units. The units vary in size from a few hundred acres (depending on the size of the reservoir) to as large as 74,659 acres (Main Pass Block 112 Unit). These units may contain parts of only one or two leases (reservoir units) or as many as 15 leases for other units. 197 The 12 producible shut-in leases in units total 59,985 acres and cost $14,905,000 in bonuses to acquire. Lessees vary from 1 to 4 per lease. Of the 12 producible shut-in leases in units, 9 are classified as gas and 3 as oil. In order to qualify under 187USGS - Conservation Division, Outer Continental Shelf Statistics: 1953-1972; pg. 26. 19/ USGS Gulf of Mexico Area Engineering Report Calendar Year 1972 (updated) and USGS Oil and Gas Development Map of the I Gulf Coast-State of Louisiana - Outer Continental Shelf (1-31-73)

54 _- - - 14 - OCS Order No. 4, 9 of the leases had wells which proved the presence of oil or gas by flowing tests or wire line formation tests. One lease qualified under the core and log analyses requirements. No data were available to determine qualifying methods for the remaining 2 leases. No reasons for extension of leases or suspension of pro- duction were noted for any of the producible shut-in leases included in units. These leases would, however, be extended by any action on the unit as a whole. One of the producible shut-in unit leases does not appear to have been drilled. On the eleven other leases, 2 of the qualifying wells are temporarily abandoned and 9 are plugged and abandoned. One effect of the forming of units with a producible shut-in lease is that a number of other non-producing leases may also be extended beyond the primary term by the extension of producible shut-in leases. The Ship Shoal Block 271 Unit is a good example of this (Table 1); the unit consists of 5 leases totaling 25,000 acres, but only one of the leases hasi been qualified as producible shut-in. None of the producible shut-in leases is within 1 mile of an existing pipeline; 6 are'within 1 to 5 miles; 3 are within 5 to 10 miles; 1 is within 10 to 15 miles; and 2 are more than 20 miles away with the maximum being 40 miles. None of the leases are nearer a proposed pipeline than to an existing pipeline. FPC records indicate that a minimum of 6 producible shut-in unit leases are dedicated by gas purchase contracts. Three of these leases are also committed by advance payment agreements. Comparison of Producible Shut-in Leases January 1973-Januarv 1974 A review of Louisiana and Texas OCS producible shut-in leases was made previously by FPC staff based on Bureau of Land Management (BLM) serial register pages obtained in January 1973. 20/ At that time, according to BLM records, there were 185 leases (excluding Section 6 leases) classified producible shut-in (Table 2). These leases, constituting 838,477 acres, were acquired for a total of $971,763,000. In addition to the acreage and bonuses paid, Table 2 shows the date of lease sale, the date each lease was classified producible shut-in by BLM, and the lease owners of record as of January 1973. This information was taken directly from the serial register pages. _20/See testimony of George L. Donkin given October 18, 1973, before the U.S. Senate Subcommittee on Antitrust and Monopoly- and the Subcommittee on Administrative Practice and Procedure.

55 - 15 - Serial register pages are maintained by BLM primarily for the purpose of recording the current lease ownership and owner interests. Before such changes in ownership or assign- ments of interest are made they must first be approved by BLM. All approved changes are recorded on the serial register pages which are available for public inspection in BLM's OCS Office in New Orleans. In addition to listing the current owners, the serial register pages also indicate the lease status as reported to BLM by USGS. Leases are classified producing, producible shut-in, off-production, etc., by USGS which subsequently notifies BLM. Usually BLM receives such notification from USGS within a month or two after a change in lease status. Changes in lease status are noted on the serial register pages along with the date the information was received from USGS. The date leases were classified producible shut-in by BLM, as shown in Table 2, is, therefore, the date that BLM re- ceived notification from USGS. In Table 1 the lease classi- fication dates are the actual dates USGS classified the leases as producible shut-in. In this report, Table 2 shows the current status (January 1974) of the 185 producible shut-in leases as of January 1973. Table 3 compares the producible shut-in leases as of January 1973, based on BLM records, with the producible shut-in leases as of January 1974, according to USGS records. Tables 4 and 5 identify the ten companies holding the most producible shut-in acreage as of January 1973 and January 1974, respectively. Bonus, acreage, and lease owner information used in all .tables was obtained from BLM. As part of the recent staff investigation, the current status of the 185 leases that were classified producible shut-in as of January 1973 was determined along with the type of producible hydrocarbon found on each lease (Table 2). A summary of the status of these leases as of January 1974 is shown below: Lease Oil and Status 211 Oil Gas Gas _H U_ Total P 9 24 13 PSI 20 91 2 5 OP 1 U ... 7 E _1 12 _^ - _^_ Total 30 128 15 57 185 217P = Producing, PSI = Producible Shut-in, OP - Off-production, U = Unit Lease—not classified producible shut-in, E - Expire or Terminated, H - Unidentified Hydrocarbon.

56 -- - 16 - , ~~~ The foregoing table shows that 46 (25 percent) of the leases classified producible shut-in as of January 1973 have gone on production while 118 (64 percent) of the leases still retain their producible shut-in classification. Of the re- maining 21 leases (11 percent), one has gone off-production, 13 have expired or been terminated and 7 are in units held by producible shut-in leases although none of these 7 leases has been classified producible shut-in. In addition to the changes in lease status, there were 18 leases with changes in ownership or owner interests from January 1973 to January 1974. Table 3 shows a comparison of the leases classified pro- ducible shut-in by BLM as of January 1973 and the producible shut-in leases listed by USGS as of January 1974. For pur- poses of this comparison, the leases for both periods have been divided into two categories, those leases still in their primary term and those in extended terms. Additionally, each lease category has been subdivided by the type of producible hydro- carbon found on each lease. In Table 3, Section 6 leases (former state leases) are excluded from the 1973 lease acreage but included in the 1974 acreage. Seven Section 6 gas leases in extended terms containing 31,250 acres are included in the 1974 lease and acreage data as shown in Table 3. However, no related bonus data are available for these leases. Primary-Term Leases There were 68 producible shut-in leases in their primary term in January 1973 and 60 in 1974. Primary-term lease acreage dropped slightly from 308,252 acres to 278,982 during the period while lease bonuses rose from $707,751,000 to $1,081,126,000, representing an increase of 53 percent. The average bonus paid per acre jumped from $2,296 to $3,875, an increase of nearly 70 percent. This reflects the addition of more expensive leases which were purchased in more recent Federal offshore lease sales. Producible shut-in gas leases in their primary term numbered 47 at the beginning of 1973 and 42 in January 1974. Acreage related to these leases was reduced from 212,522 to 192,883. Total bonuses paid for this type of lease rose from $436,985,000 to $700,787,000 in the 12-month period. From 1973 to 1974 the average bonus paid per acre for gas leases increased 77 percent, from $2,056 to $3,633. Gas leases and acreage con- stitute about 70 percent of the primary-term leases and acreage for both 1973 and 1974. Gas lease bonuses amounted to 62 percent of the primary-term lease bonuses in 1973 and 65 percent in 1974.

57 - 17 - Extended-Term Leases Examination of the extended-term leases on Table 3 shows that in 1973 there were 117 leases (including 7 unit leases held by producible shut-in leases) containing 530,225 acres. In 1974 there were 108 leases (including 7 Section 6 and 12 producible shut-in leases in units) with related acreage of 508,990. Excluding the 7 Section 6 leases, the extended-term acreage for January 1974 would be 477,740 acres. The bonuses paid for extended-term leases amounted to $264,012,000 in 1973 and $409,590,000 in 1974. Again, the increase in lease bonuses, which were up 55 percent over the 12-month period shows that the leases which went into extended terms during that period cost more to acquire. The total number of extended-term leases and acreage in January 1974 was lower than a year earlier; however, the average bonuses paid per acre in 1973 and 1974 were $498 and $805 ($857 excluding Section 6 leases) respectively. There were 81 producible shut-in gas leases in extended terms in 1973 and 86 (79 excluding Section 6 leases) in 1974. Related gas lease acreage increased from 365,611 to 409,456 (378,206 excluding Section 6 leases). This is in contrast to the reduction in total extended-term leases and acreage previously mentioned. However, bonuses paid for extended-term gas leases were responsible for a significant part of the increase in total bonuses. In 1973 the bonuses paid for gas leases were $116,912,000 or 44 percent of the total extended-term lease bonuses . In 1974 the gas bonuses were $282,968,000 or 69 percent of the total. At the beginning of 1973 the average bonus paid per acre for gas leases was $457; in January 1974 it was $691 ($748 excluding Section 6 leases). Extended-term leases have been further examined to deter- mine the weighted average number of years the average lease has been extended beyond its primary term. The following table shows the number of extended-term leases (excluding Section 6 leases) grouped in four different extension periods as of January 1973 and January 1974. As of January 1973 As of January 1974 Years Beyond Bonus Bonus Primary Term Leases Acres ($000) 166,401 Leases Acres ($000) 349,533 0-3 41 192,456 50 244,289 4-7 57 264,644 58,020 43 200,994 43,245 8-10 8 40,000 22,607 4 20,000 11,046 11-15 11 33,125 16,984 4 12,457 5,766 Total 117 530,225 264,012 101 477,740 409,590 Weighted Average Beyond_ Term 4.83 L_ M^ YT-c Primary Yrs. 4.45 Yrs.

58 - 18 - The foregoing table shows that there were 117 extended-term leases as of 1973 and 101 leases as of 1974. Most of these leases have been extended beyond their primary terms less than eight years in both 1973 and 1974. In addition, the bonuses paid for these leases are significantly higher in the zero to 3 year category ($166,401,000 in 1973 and $349,533,000 in 1974) than for the remaining three categories. Except for the first extended-period category, in which leases and acreage increased from 166,401 in 1973 to 244,289 in 1974, the number of leases and acres declined in every extension category and over all. The weighted average number of years beyond their primary lease terms for all extended leases was 4.83 years as of 1973 and 4.45 years as of 1974. Total All Leases (Including Section 6 Leases as of 1974) Total primary and extended-term producible shut-in leases and acreage in January 1973 were!85 and 838,477, respectively; in January, a year later, there were 168 leases and 787,972 acres. Total bonuses paid for these leases as of 1973 were $971,763,000 and $1,490,716,000 as of 1974. Total primary-term leases and acreage constituted a little over a third of total producible shut-in leases and acreage for 1973 and 1974 while primary-term lease bonuses represented almost three quarters of the total lease bonuses paid for both periods. Extended-term leases and acreage for both 1973 and 1974 represent almost two-thirds of total producible shut-in leases and acreage but account for only about a quarter of the total bonuses paid, Ten Companies With the Largest Producible Shut-in Acreage Table 4 shows the ten companies having the largest pro- ducible shut-in acreage as of January 1973. Similar data for ten companies as of January 1974 are shown on Table 5. The ten companies are the same, in varying order, for both 1973 and 1974 with the exception of Atlantic Richfield which was included in the ten companies listed for 1973 but replaced by Gulf in 1974. Three companies with the largest producible shut-in acreage in 1973 were Texaco, with 111,508 acres (34 leases), Chevron with 91,980 (24 leases), and Exxon with 53,544 (13 leases). In 1974, the three companies having the most acreage were Chevron with 109,337 acres (27 leases), Texaco with 107,955 (30 leases), and Union Oil with 51,514 (13 leases).

59 . 19 . Total producible shut-in acreage owned by ten companies in 1973 amounted to 486,311 acres on 166 leases, or 58 percent of the total offshore producible shut-in acreage (Table 4). In 1974, ten companies owned 498,089 acres contained in 151 leases classified producible shut-in or 63 percent of the total offshore producible shut-in acreage (Table 5). In addition, Tables 4 and 5 show the number of producible shut-in leases that are owned 100 percent by each company and those leases they own jointly with other companies for 1973 and 1974. In 1973 there were 74 100 percent company-owned leases of which 63 were owned by ten companies. As of January 1974 ten companies owned 72 of the 75 100 percent company-owned leases. For company leases owned jointly with others in 1973, the ownership interest of ten companies amounted to 197,199 acres or 39 percent of the total jointly owned lease acreage. In 1974 the jointly owned acreage of ten companies was 156,287 acres or 36 percent of the total acreage owned jointly. Offshore Operational Procedures It is obvious from the staff investigation that very few of the wells on producible shut-in leases are capable of being produced. Almost all the wells were temporarily abandoned or plugged and abandoned after qualifying as "a well capable of producing in paying quantities." These wells were initially temporarily abandoned by having cement plugs spotted in accordance with USGS regulation and were left with underwater casing stubs extending above the sea floor with marking buoys extending to the sea surface. If the operator does not plan to re-enter and actually complete the well within a reasonable period of time, the USGS requires the removal of the underwater casing stub because it is a hazard to the shipping, fishing and shrimping industries. When the underwater casing stub is removed, additional cement plugs are spotted and' all pipe is shot off a minimum of 15 feet below the mud line. The well is then considered plugged and aban- doned. There is little or no possibility of re-entry into the well. Indeed, it may even be difficult to locate the well again. It can generally be stated that the lease operator normally never intended that all the wells drilled on producible shut-in leases would be completed as actual producing wells. Many of these exploratory wells are classified as "expendable holes" which are drilled solely to develop geological data from which to plan the location of drilling and production platforms and to formulate development programs. On occasion, one of the temporarily abandoned wells is situated at the planned location of a platform. Great difficulty can be encountered in positioning the platform in exactly the correct spot over the well, so it is rare when an .expendable hole can be utilized in this manner.

60 - 20 - After a platform is set, the operator will often drill all the wells in his program without completing any of them as a producer. After the drilling program is finished, the operator will then selectively complete the wells capable of production. Bureau of Natural Gas Office of Economic Victor H. Zabel / Ralph' A. ' Johns on/ &J-lrir *•'i•'' &>"* John W. Borror ^O i^W ^L jeanne M. Zanel

61 ll —oo- 111? M M M M M M M M Sin nil i""* . 0*' 1! -i i m 2 I 2 2 2 a 2 2 2 2 2 a « 2 2 2 2 2 * 2 s - - II- tfl ^___^^_^ — ---a----- s a §^tfMftfiMAttflfl4flr*'^4VVB«fflBB s s s 2 s 3 s S 8 s s 8 a s s a s s 8 a s 2 8 " I i 2 § I § I § § § 1 I I I I § § I i § I § S I § I § Pi n ^ o •*l ^ « r* M i i Bi * i i i i i i ii i i i i i i i I i i 1 1 11 1 111 f 1 iiilifliliiiiiiiiiiiiiiiilil! • iliSIiBiilflfffifllgfiiiltlttE sBflfiiSiillllllllllliillllllll -21-

62 MI *4 ll w : i-lJ K K M M M MM M MM MM M M M M M llf, : is Us- 33 LI 2 1 2 a s s ^ j a a a a a a 2 z j =s a H H H H C R C s s SI fl -. c: s *n^inM^lnR «n*oninnninnnnnn = SSSSSSSSSSSr- c o *n . . . . an f 1 ? 1 1 1 i s tiij<«ii !,iiii!! J**B§»ll Jlllill UUUUC9UUUUUUUOUUUU ! i s s t a a s a s i 1 I 1 1 u u u -12'

63 - Hi »l sn ir M M M o o O O 8 J L| fl e > s ; K K i i i i i i i « i ! i i i i i 2 1 « < III « H H I 3 - S ! 3. 5 1S8 1 ?1* ill 5^ * s - ~ s ssssssgsssssss lilltli -««-«4.*-«-« s s s a s SS3 33 SSSSSSSSSJSSSSS^ -»->n,-irti^o'-il"i'-ii"^ir-ir-ii-ir:ii-ir-,«ii S * S 5 = 5 * 2* 2 S S » S s g s s E e s s s § § § § | § £ § § § S ; § § I I 88 | § I § § § § § § s § S § § E 2 S & III U £ !!1 i1111 .I. 5 « M K ! liiiiil i i lllillllftittH lilttitiiiiiiii 8 ' = S | S 3£f:^SS35 I I I I I I IIIIIIIII

64 a O O 0 •n o « 0 O *N O • I! 3 a ° » K M I- 3 S - S S ? ? i 3 ,12 2 a 2 « 2 2 2 2 2 2 *i * 2 « « a a 2 Isi M *-, -a in .j £l f < * * * * a - - a a a 3 a r*j)«r*^r^r^l^4>^«^pM*>4r4pOr*O«>O*l4r*M tSiliilliililiiiliiiiilaiMMcii SSSSSSSS ccecccSS s s 5 s s s a i i 8 8 S S S S R 3 i 5 3 5 5 i S 33S323SS2SS S3S38333S 2 2S22SS2222S 22S222iss S S a S a n a 5323233 *i4«ciw**n0i Is i i I I 1 Hn* iAv4H0MO 3as -•"•"SEs i s • a a a J B I I I 1 I I I t a a a a a | „ S, • • • • s s g « s z • i niij1!!11!!!!!!M ,itlittj Mi 2 2 S I 2 s § 1 I 3 5 S -24-

65 Il I 2 2 S ll w * c i* o ifl a sz • - s - a : - 2 111 j-ss Is s i fi1 lj rs ll s s 22222222222222222222222 3 - i! s s a 2 RSC8CCCS SnSXplXN SS2S55SS CCCCCSSSSSR .«??????????55SSSSSSSS3S ill ?3?»»I?I??? ||| a S s a a a a s s a a a s a a a | a sis ais s si a S ^ s s s sis ir~f-l-r^'~r,r,~l-s*'-*r-r.mi-~'--r~&-G^na-4-~r*VCl?*' |j**gaMBK3a|iMMeg)nBMi9««%-**^'*ti-Me**)Xon *mOi*r99(«kM*HV*ifM««l|^V*J•*MMM•*i(e*kMW .ft m g »«*«.« *; P* « M M « M ^ 5*n»n2S.^ M • Q ^ M M llllllllll1lilllllllllllllllllll K 3 C & & H j I111 n 1 11 1 11 1 11} 11 j 1i1i111! 1!Ii i i i i111i!!!131i 131 f i <*;*§2:53;

66 l]: ii" • • i 3 1 * n j - - i - -- : fill j M j- * . . i11! M |i| ill I ] 4*8; i! j i a " s ? s I pi K -. 1 'it1 * 2 * * * 3 - 2 1 2 ^ S " e AJI fli 1 L i }jj! e : s 2 s s s s s 2 1 •? 5 S3?i5s • I " "as---i i • j, Si 3335 55555 55 5555 E £ € E! J!1 S S 8 8 Is i i 1 i I 1 § 5 S S S i 3EJ •till J3SSSS 33 I 1 f f i j 1 t 1 1 •i s 3 s | i 1 1 1 1 1 3 3 5 ? ? 5 5 ? I 1 1 1 ' S S S 3 1 S Si J 2S2i5 |25sas aa Isgag { ii | 1 1 1 1] l|1 i 1 i I " 3 a j Is j I § sij 1 1 ll |l 1 i 1 1 ll ! ll 1 1 S ! 1 8 § § 1 J i 1 i j • I Li t 7 7| ' j ^ | i * |« — "|llllfill|lll«] S S S s s 1 • ' 1 i s J • 1 s) 'a a 5 j i a -'iaiS- sa k. 44 b- 3 1 3 3 i -* i Sid d f • • 1 f- ! S 5 3 S ill * 1 i i 1 < 1 i 1 1 ; ill .•U*1!f!JJiMi'!H"i a 3 2 1 a III) * J 1 J J 1 1 I 1 i 1 sefi :££jj 3 a • o o J Si | s s s 1 p u tt O - -2.-

67 si ""I ' 00 Mi i i i a 1 III. i ]«ri 1 . . i i !i j llj i '0 -* Mm ! ; . i'! a 1 I vH] li- i .. .. .| i li !, I1 8 2^ i- !J! n n r* M 3 * '* i i 1 i . 1 ^ 11 1 S J | j j ! " I IB *' s : n « j 3 1 •i CC •f|ll l|| ? ! - ii ? ^ c § i i", i 1 1 = V * * B 1 3 L 1 J I f J SI BOB IjS E 1*1 J 1 see 1*1 1 1 :- 3 s * - I« I I lii 1 r- r- • ft ft | 1 I ™* ' fc "* - ! J 0 i 1 J - - S ifj ^ S .?t itiiiiij 1 * f r S S 1 s £ a cl Si j []lli| |i|]p j j ' n *M ir,|lh |jfni j i '- !.-' ' j i * ^" § i • ** B i 1 3 ^y^lipliljp . li 31*11 11 2^''!-l-!--Js» al ! ii i i i 3 a 1 3ttl*t!!5.55J!55 1 , 3 - - flilfjlfiiilliii J * 8, 1 1 i "* •* M^^nn »^*^-^ • • • • 1 J -a • N

68 Table 1-A Sheet 1 of 5 LOUISIANA AND TEXAS OUTER CONTINENTAL SHELF FEDERAL OIL AND GAS LEASES CLASSIFIED AS PRODUCIBLE SHUT-IN AS OF JANUAtY 22, 1974 LEASE OWNERSHIP OCS No. Location , Lessees Block * - Lease Operator ( *) - Lease Operator Without Lease Interest I - Leases In Prlmerv Term G1900 Grand Isle por. 62 Chevron* G1974 Eaat Cemeron por. 118 (CNG Prod.*), ODECO, Burmeh, Altec, Ocean 0 & G Gian!, West Cameron 504 Oil & Gas Futures*. Amsr. Nat. Gas Prod., Gen. Amer. Oil, H. W. Basa, SAG Ven. Penna. G2010 Watt Cameron 543 Kerr-McGee*, Cabot, Felmont Oil, Case-Pomeroy G2011 West Cameron 544 Phillips*, Skelly, Texas Gulf, Allied Chem. G2015 Ueat Cameron 565 Shell* G2019 West Cameron 576 Tenneco*, Texaco G2021 West Cameron M7. Pennzoll United*, Pennsoll Offshore, Mobil, Cities Serv. Oil. Pinto G2026 West Cameron 638 Tenneco*, Texaco G2027 Wsst Cameron 639 Sun*, Clark Oil, No. Mich. Expl., Anadarko Prod., Diamond Shamrock G2028 West Cameron 648 Tenneco*, Texaco G2038 East Cameron 231 SONAT*. The offshore Co., Midwest Oil, Samadan Offsh. , Southland Roy.. Neicmont Oil G2M6 East Cameron 271 Tenneco*, Texaco G205O East Cameron 281 Tenneco*, Texaco G2056 Eaat Cameron 294 Signal*, Amerada Hess, LL&E, Marathon G2057 Eaat Cameron 312 Sun*, Diamond Shamrock, No. Mich. Expl., Anadarko Prod., Clark Oil G2061 East Cameron 321 Signal*, Marathon , ix&E, Amerada Hess G2062 East Cameron 334 Pennzol 1 Offsh.*, Exxon G2063 Eaat Cameron 338 Sun*, Clark Oil, Aradarko Prod., No. Mich. Expl., Diamond Shamrock G2071 Vermilion 147 Union*, Amoco, Tex. Eastern Expl. G2075 Vermilion 201 Union*, Amoco, Tex. Eastern Expl. G2076 Vermilion 214 Chevron* G2079 Vermilion 236 Tenneco*, Texaco G2080 Vermilion 247 Shell* G2084 Vermilion 282 Texaco* G2087 Vermilion 320 Sun*, Aqultaine, Clark Oil, Anadarko Prod., No. Mich Expl., Diamond Shamrock G2089 Vermilion 325 ODECO*, Burmeh, Gen. Amer. Oil, Altec, Ocean O & G G2090 Vermilion 339 Shell* G2091 Vermilion MO Shell* G2097 South Marsh la. 121 TransOcean*, Superior, Placid, Keuanee, Hunt Oil, Highland Res., Hamilton Bros. Oil, Hamilton Bros. Peer., Gen. Crude, Canadian Superior, Hunt Petr. G2099 Eugene Island 74 Chevron* G2102 Eugene I a land 256 Pennzoll Offsh.*, Mesa Offsh. , Burmah, Sun G2109 Eugene la land 306 Placid*, TransOcean, Superior, Kewanee, Hunt Oil, Highland Res., Hamilton Bros. Oil, Hamilton Bros. Petr., Gen. Crude, Canad. Sup., Ashland, Runt Petr. G2110 Eugene Island por. 307 Continental*, Getty, Cities Ser. Oil, ARCO G2111 Eugene Island por. 314 Exxon* G2125 West Cameron por. 28 Chevron* G2127 East Cameron por. 33 Continental*, Getty, Cities Service G2132 Eugene Island 159 Exxon* G2163 Grand Isle 94 Mobil*, Gulf G21M Grand Isle 95 Mobil*, Gulf -28-

69 OCS Location Table 1-A (Continued) Sheet 2 of 5 Leaaeea No. Block * - Leaaa Operator ( *) - Leaee Operator without Leaae Interea j G2193 Main Pasa 140 Gulf*, Mobil, POGO, Pemuoll La. & Tex. Offshore G2200 Main Pasa 221 Chevron* G2227 Mat Cameron 533 Continental*, Gatty, Citiea Service G2234 Heat Cameron *20 Marathon*, LL Off.Exp., Tex. Eastem Expl. (Amoco op. of 2nd Hell) G2241 Heat Cameron M3 Tenneco*, Texaco G2254 Bast Cameron 322 Burmah*, Maaa Petr. , Halnoco G2260 East Cameron 3U Continental*, Getty, Citiea Service, Atlantic Richfield G2264 East Cameron 333 Sun*, Diamond Shamrock, Anadarko Prod., Penh. Extern Expl., Tex. Pacific Oil G2292 South Marah la. 17* Continental*, Getty, Citiea Service, Atlantic Richfield G2301 South Marah la. 249 Chevron*. Superior, Caned. Sup., Murphy, ODECO, Ocean 0 & G, Aztec, Gen. Amer., Dalco Oil G2306 South Marah la. 261 Continental*, Gatty, Citiea Service, Atlantic Richfield G2309 South Harah la. U7 Forest*, Colun. Cas Dev., Energy Ventures. Tenneco Expl., Texaco G2310 South Marah la. 2*8 Placid*, TranaOcean, Highland Rea., Hunt Oil, Aahland, Hamilton Broa. Oil, Hunt Induat.. Hunt Petr., Hamilton Broa. Petr. G2311 South Marsh la. 2*9 Placid*. TranaOcean, Highland Rea., Hunt Oil, Aahland, Hamilton Broa. Oil, Kewamee, Hunt Induat., Hunt Petr., Hamilton Broa. Petr. G2317 Eugene laland 333 Mobil*, Peimaoll La. a Tex. Off., POGO, Burmah, Maaa Petr. G2319 Eugene laland 342 Texaco*, Tenneco Expl. f.2320 Eugene laland 343 Texaco*, Tenneco Expl. G2322 Eugene laland 14* Marathon*, LL Off. Exp., Tax. Eastern Rxpl. G2324 Eugene laland 3*1 Continental*, Getty, Citiea Ser. Oil, ARCO G2393 High laland A-573 Mobil*, Union Oil, Amoco, N.W. Mutual Life, Texas Caa Tnna. II - Leeses in ^tended Term 0044 Eugene laland 89 ODECO*, Consolidated Gaa Sup. 0045 Eugene laland 94 ODECO*, Chevron 0048 Eugene laland 111 ODECO*, Exchange 0 & G, Ocean jO & G 0224 What Cameron 40 (CMC Offshore*), Chevron, Tenneco, Phlllipa 0229 Eugene Is land por. 90 ODECO* 0312 Eugene .la lend 27 Texaco*, ODECO 0317 Eugene laland 47 Texaco*, Union Oil, Marathon, Sun 0431 Eugene Island 192 Amoco, (Shell*) OV,1 Vermilion por. 57 Texaco* 0588 Ship Shoal por. 139 Shell* 0605 So. Tiabalier por. 86 r&K Offshore, El Paso, ODECO*, Ocean 0 & G 0818 Ship Shoal 1*7 Tenneco* 0821 Ship Shoal U3 Texaco, (Tenneco*) G09 09 Weat Cemeron IN Texaco*. (ODECO operatea 1 vail) G0938 East Cameron por. 118 por. 119 Conaolidated Gaa Sup.*, Columbia Gas Dev., CNG Prod., C & K Petr., Florida Gas Ex.. U. G. Paavy, Herbert Conat., H. C. Plral, Klrby Petr. G0963 East Cameron 219 Tenneco* G0965 East Cameron 224 Texaco* G0976 Eugene laland 10* Forest*. Taxas Gas Ex. G1019 Ship Shoal por. 112 Tenneco* G1027 Ship Shoal •U Amoco (Conaolidated* + 1 mil by Amer. Pertoflna Expl.*) G1035 Ship Shoal 2*1 Chevron* G1040 Ship Shoal 273 ODECO*, Sun, Murphy, Burmah, Pelto, Aquitalne

70 Table 1-A (Continued) Sheet 3 of 5 OCS Location Leaaaea No. Are* Block * - Leaae Operator ( *) - Leeae Operator Without Lease Interest _G1042 Ship Shod 292 Amoco*, Texaco* - 1 well only. G1057 Grand Isle 72 Continental*, AtOO, Cities Service Gas, CettY G1058 Grand Isle 73 •Continental*, Getty, Offshor* Co., TreneOcean. Acaea Invest., So. Hat., Superior, Haima G1077 West Delta 64 telco* G1099 Heat Dalta por. 106 Amoco*, Texaco. (Chevron* - 1 tract) G1100 West Delta 116 Gulf* G1108 Ueat Delta 140 ODECO*, Sun, Murphy, Burmah, Aquitalne, Pelto Gil 30 Verml lion 171 C & K Fetr.*, Florida Gas Ex., H. G. Peavy, Herbert Constr., H. C. Price, Statea Marine. Jenny Oil, Klrby Petr. G1131 Vermllion 172 C & K Petr.*, Florida Gea Ex., W. G. Peevy, Herbert Constr., Jenny Oil. rirby Pet., H. C. Price, States Marine G1132 Vermilion por. 189 por. 194 Continental*, ARCO, Citiea Service, Getty G1147 Vet mi lion 246 Tenneco Expl. Ltd.* G115 7 Vermilion 271 Texaco* G1160 Vermilion 288 Texaco*, Amoco G1161 Vermilion 289 Texaco* G1172 Vermilion 313 Foreat*, Consol. Gea Sup., Tex. Gee Expl., Columbia Oas Dav. G1180 South Marsh la. 9 Chevron* G1202 South Marah la. 70 Texaco* G1212 South Marah la. 80 (Tenneco*), Phillips G1216 South Marah la. 142 Foreat*, Consol. Gaa Sup., Tex. Gaa Expl., Columbia Gaa Dev. G1217 South Marah la. 143 Forest*, Kerr-McGee, Fairmont, Columbia Gea Dav., Cabot, Sun, Conaol. Gaa Sup., Texas Gas Expl. G1221 Eugene Island 179 Union* G1234 South Felto 16 Chevron* G1240 So. Timbal i,-r por. 51 Chevron* G1241 So. Tlmbalier 52 Chevron*, Continental, ARCO, Getty, Citiea Service Oil G1247 So. Tlmbalier 160 Shell* G1256 So. Tlmbalier 172 Gulf* G1261 So. Tlmbalier 190 Chevron* G1269 So. Tlmbalier 203 (C & K*) Chevron G1471 Ueat Cameron 177 Continental*, ARCO, Getty, Citiea Service Oil G1473 East Cameron 65 Continental* G1477 East Cameron 81 Mobil* G1 512 Ship Shoal 134 Exxon W/2*. Continental E/2* G1534 Ship Shoal m Signal*, LL & E, Marathon, Amerada Hess G1535 Ship Shoal 296 Chevron* G1541 Ship Shoal 316 (Chevron*), ARCO, Continental G1542 Ship Shoal 317 Chevron* G1555 So. Tlmablier por . 86 Continental*, Citiea Ser. Oil G1562 So. Tlmbalier 140 ODECO*, Oil & Gas Future*, Aquitalne, Murphy G1564 So. Timbalier in SOHAT*, Midwest Oil, Samaden Offsh., Southland Royalty, Newannt , Offahore Co., Continent.:, ARCO, Getty, Citlea Serv. Oil. G1582 Grand Isle 45 Continental*, ARCO, Getty, Citiea Sar. Oil G1585 Grand I a la 89 Chevron* G1586 Grand I ale 90 Chevron* G1594 Meet Delta 112 Chevron* -30-

71 Table 1-A (Continued) shMt 5 of * OCS Location Leaaeea _^__^__^____, No. Area Block * - L«ase Operator ( *) - Leaae Operator Without Leaae Intereat Ship Shoal Block 299 Unit: Operator - Union. (Non-Producing Unit) G1044 Ship Shoal 299 Union Oil* G1045 Ship Sho«l 300 Union Oil* South Ttabalter Block 172 Unit: Operator - Exxon. (Producing Unit) G125O So. Tlaballar 164 Exxon* "G1251 So. TlBbalUr 16i Exxon* G12}2 So. TiHb.Ii.-r 166 Exxon* G1255 So. Timbalicr 171 Exxon* South Tlmbllier Block 185 Unit: Oper.tor - C & K. (Non-Producing Unit) **G1566 So. Timbalier ISO C & K Petr.*, Conaol. Ga* Sup. MG1567 So. TiBballcr 111 C & X Petr. •, Con.ol. Gai Sup. **G1568 So. TlmbalicT 1M C & X Peer. (Continental*) G1569 So. Tlmbaliar 185 C & X Petr.*. Conaol. Gai Sup. mtn Paaa Block 253 Unit: Operator - Chevron. (Non-Producing Unit) G16H Main Pasa 253 Chevron*, Shell 01655 Main Pasa 134 Chavron, Shall* Main Paa» Block 264 Unit: Operator - Chevron. (Non-Producing Unit) G1656 Main Pa» 264 Chevron* **G1657 Main Pass 265 Chavron* ** Unit leaaea not claatified produclbla ahut-in.

72 ocs Location Table 1-A (Continued) Sheet 4 of 5 Lessees No. Area Block * - Lease Operator ( *) - Lease Operator Without Leae* Interest G1597 Ha*t Delta 137 Chevron* C1598 West Delta 138 Tenneco Oil* G1609 South Pass 61 Gulf* G1611 South Pass por. 66 (Texaco*), ARCO G1*12 South Pass 67 (Atlantic.), Chevron G1614 South Paaa 70 Shell* G1618 South Pasa 89 Signal*, LL & E, Marathon, Aawrada Hess G1619 South Pasa 93 Exxon* G1620 South Pasa 94 Gulf* G1635 Main Pasa 143 Continental*, Tenneco Oil G1649 Main Paaa 237 Chevron* G165S Main Paaa 266 (Atlantic*), Exxon G1662 Haln Pasa 273 . Signal*, LL & E, Marathon, Aaerada Heaa G1*65 Main Paaa 288 Continental*, Tenneco Oil, Cities Ser. Oil G1725 Brazos 506 Texaco* G1 7 31 Brazoa 539 Forest*, Superior, Pannzoll, Hamilton Broa., Tex. Eastern Trans. G1736 Braxoa 544 Union* G1 745 Brazos A-43 Union* G1748 Brazoa A-47 Union* 8175* Brazos A-102 Union* G1756 Brazoa A-104 Exxon* G1757 Brazos A-105 Union* G1772 Galveston por. 241 (Coastal States*), Highland Resources, TransOcean, Juniper, Canadian Superior, Tex. Eastern Trans., Kerr-McGee , Superior, Ashland, Gen. Crude G1773 Galveston por. 241 (Coastal States*), Cabot Corp., Occidental, Tex. Gas Expl., Crown Petr., Anadarko Prod. G1777 Galveston 253 Coastal States*, Aoter. Petroflna Expl., Samadan Offshore G1807 Galveston A-84 Union* G1817 High Island 86 Texaco* G1831 High I a land 206 Texaco* HUM High Island 119 Texaco* G1851 High Island A-228 Texaco* G1865 Eugene Island por. 64 Chevron* South Marsh Is. Bik. 38 Unit: Operator - ABOCO. (Producing Unit) III - Leaaes In Units 0779 SO. Harsh Is. 32 Amoco*. Texaco "0780 So. Marsh la. 33 Amoco*, Texaco* **07B4 So. Marsh la. 38 Amoco*, Texaco 0785 So. Marah la. 39 Amoco*, Texaco Ship Shoal Block 271 Unit: Operator - Consolidated, (Non-Producing Unit) **G1028 Ship Shoal 247 Columbia Gaa Dev., Conaol. Gas Sup., Tax. Gaa Bxpl., Forest, ODECO* **G1029 Ship Shoal 248 Columbia Gas Dev., Conaol. Gas Sup., Tex. Gas Expl., Forest, ODECO **G1030 Ship Shoal 249 Pelto, Exchange 0 & G, Conaol. Gas Sup., Dlxilyn Corp. **G1037 Ship Shoal 270 Columbia Gas Dev., Foreat, Tex. Gas Expl., Conaol. Gaa Sup.* G1038 Ship Shoal 271 Columbia Gas Dev., Foreat, Tex. Gas Expl., Conaol. Gas Sup. -31-

73 •M o f I CO a o -H S « " 2 a J q p>,l H a i 53 S II I t4 J3 O -H € 3 . 3 . §5 -Jf5 I] . ** i l! i i ff 5 6 '* i« • it 33 .S S.f s? si* as? • • ft. 0. CUU O -3 o o o- o i in 3 H ssi •! Ill S £ . 222 1^8 oo - " 5 S *c1 US X 3 -8 lii fill ?-S Hi.S: S, .5 C T3 Hi Ul fi kl -o^ Ma.ua.uu*nc.4*a-v.^v)ftiviMii. 4. i. :- t: «%uiB.uJwa.w m *n ^l u-i IA u « * tl « W v — ___ ,_£!o««£«S«««A !o!oS«««« !oS223«£« 3^8 S--n <. acco r-< --i. i<rio~ 11 15-1 — C — C -4 — — — •Jt'l I- 1! -I mi J-Si..«.it. BC ^ JJ ?"1 s:l 2 I! §3§§§|8§§§§§l§l§§l§§§ §§§§§§§ li • .1 p«nr^^«^<fiiin**n««Ain«r -* ol ««*f*Hi«*i*p*PQr*.4oo* — L. z 4«^^tf%iAtfN^inin«r^r^r^« i Z*Mr5Mnri4*Nn3.7 OOOOOOOOOO -33-

74 1 1 i ! 1 | 3 in i . i * • O s| |JT. s 3 5 CM »i is! I ^ ? 1 ?» I'M 3 l{ J > t J li 2! 123- 5 . :l 5 2 : : w 51 *ls« S 3 11 5 38 H H-*S ass ', I si Ij^a.l 1 3 3.- 3 f* 3 .» 2 ^ ' 2 - KjS55s "" 1 2 1 i 3 If fsi^:5 ] i 1 1, 1 ''SS J 3 a --S3 | ||*.j5a j i J ^.33 5. 1 '^^ ggiss|8~s>;5>'o-=^3S8i:~>i=io2::B|t=§g~t IlillliJ ;r> liiii]!l!:i:2iiiliilliiiililliiiiiliil 0 J* IS asccic-ECies e ie--2£ci«i2»^ciic ciclici C"B2^«- S I Sfr I*"* 852$*"-$$ .- :f is.- ~22-*".22 *i ^ 9 SM 3 "^ S 2" j :s 3 § 3' I $ • *3 *s M 2i £ II r4•*fir-^*»Xr*c> o •n^gS^^^So'^RRK^S^KS^^giKer* ^«Km«o — M I ii r 1] ° ,; - «•-« « r: - --« — « •• --" * e£ O *4 iM '. O £ 4 1 - • M.I...1 1 || 1 IS j 1 «.r 1- -• - - - ? - ,,,,,a,,»,,,,,,,a**•,,,,,- I i I I « •-• » • 5 «l 3 S f] J ? ? ' -,,,,,,,. ............ 4iAr^«or*«9iO«p -' Mr^•*tfl^OMMf*OMg4r*M*ii*4Q,rtr^Qmi(M 3,*iA*rlr-.».»OO<-* «-l ^^^^SfiSfi^^S^^fi SSKKBS^S -34-

75 in «M O IS !! J 2 Et£ 3 • • 1 W M 2 tn >. IS - I 2233 ssl „. frt* I 533 9 I I JJ3J II 1111 " « .... 5* 5533 ill hub iiii 2 5". "!H.°. .11°° IJ 3 3 2311 1331 * J **| j|| |JjJ! II!."" :s n I] 2§ 1 if * I "« 5 S" a! j 3 |l I 1" *•"'•"'««*« i I.. ..... |.. ..'.. i.. ...*...... - j| J| g. . S 5 S S S * S&S*SS -I s . s ss -W 2 . .j, J|i. . . . a| - - s-1 KOin88oo8no8oXCK*S*St«kX«««OMn^8« g I«] 2S2S S a.S S S2IS HS JjSSSSsSSs 225SSSS522S !§ s £ s SI s -35-

76 o •* 4J « 5 CO , -^ u "• s 5 ^ s li a i: Is" | j KM f1.! -3' ,2 8 1 I i 1 i -S3 !-?as I II " V ii f] 1! Ii 8e83-SS5g- -isms -. H.'Jl I rliEiili! ,j J'lil si Ml*! iX • • J Eli Ji Jil 21 j 4J V S.' A] O O i if : s a:* •Is • fi 3 * • ***"*H*.HI-.Sj«J-T a . f a oc£ Hj -' ii is sl I oo oo^ooo oooo ooooooo ooooooboo o ooooob j **22^'-^22'ANin**"*2l"*'-^M22'-2 ^2^2*2^"*^ 22 M«^*^22 I I ^"S"*'lmS2I20' vc.2SSSm"iA'*MMS '' "rN2i0i'! ^ *R "2*22** £ j! ! • j 3 III '|j||....................... .............. _ -36-

77 m <H O H 1 i: l IS S !u t !J 2 ai i| si 1; • ^.

78 0) • 00 0) Src <T o r-. 0) 9 0) <5^S DO 60 B° 59 CO so r^ r~- cg OO m CM oo cg sO rH CO ON CO rH « u 3 0 R C 4J • • . f r- so m U i 00 CM rH CO O I rH CM VO SO C I CO in «3 o m m i 10 s 0) O rH f^ m I VO st in in i V0 rH rH O + + + 2 +H I si o pa co rH O m o + + + 25 rl r- 0) B ON P-l •H rH 1- + + S= ill 73 ^ • X CO X • CO N_/ stl •tfl 0) 4I 3 0 O O) CO §0) M m O CO O OO I •* « n « ea u VO CO ON OO I m • in rH CM VO I m • r-MI iH rH . •< rH CO CO P"* I r* CN m ON r* CM i O CO ^^ CO CO OO I ON|| O -H m so oo <r 00 O oo so st m 00 st CN sO ON st HI in u B « r- ~ * .. - rH M A f* M tO H st CO p~ rH ro + m rH I CM r-l VO rH rH CM B i-l > 4) I > 0) rH 73 4J ^^ < PH • CO -H 3 CN| 00 E .C 3 ^ 0) 60S 0 ^•J m 00 VO rH I so r^ in oo i •4- oo O oo I ON sO O CM I o mm O m in so i m m so st i VO CO B ON CM rH in rH CO -H II 01 0) 4J ' rH MH H CD o o r- r- in r* ON CM NO 00 r^ ON rH r-. rH 3 X .0 14 I 30 .... r. • n r, A M • ft R o rH o en in o «H m o o CM rH CM co CM m r- r- oo st OCM st CO 00 CO CM 00 St CO CO ON rH 0 ON VD •H . CJ 4-l 00 3 B 00 CO 73 U "i^ Pa •— 1 CM r^ rH co." CM 3 5 r-l rH 0 B 0 0 •HO rl l~> CM co r** O I CM st so O o i 0 VO ON r— O I CM •u o i a 8 00 ON OO CO r^ I oo st f. m so o i ONVO sO CO ON !"•* I p** o ; 01 en m 0I m oo CM CM ON • CM St CM O ON • 00 CO St CM ON 4) CO U CO I & I-l • m oo co CO 0) 00 CO rH JO rH CO in CM co r^. VO ON 00 in 00 O 00 VO 0 rH CM rH CM St O <N CM r- B < in ON rH rH rH CN •4i m rH VO M oo 0) 0) -H 73 rH O 73 3 rH •r. §•* rH VO 1 0) • r- CO t~ CO U f I B ON 0) . x c o | B rH 00 CO rH CM Mst I o m so ro ON VO CM rH I rH 00 I 00 <t OsO o oo m m i 00 H B «1 . m fc 3 CO CM I sO i-l •• -r4 0) rH rH rH rH 4J St B rl •• o r- 3 o CO O CO 3 0) 4) ON «j CO rl 4J CO rH 09 0) co B 0) 73 CO CO 1 r- >N B 0) rH 0) *~> q rl T< O. (Q ft! CO CO i •H IH ^i% ^^ ^^^ • 0) 3 4J 73 H 0) I O H W 0^ stl •.! CO 73 B 3 •H r-. 3 cg XI cg o 3 co s rH rH ON rH r-j o. J «9 B 0) in so m oo i VO • l-I r- r^ so rH 1 oo • rOin OO 00 rH ONl 1 rH O B a r- m co r-. i ON OO O in co CM oo ON r^i cost ON 00 OO ml 1 B M-t *H co i^ 73 pa u O O_o st CM ON VO st 00 in rH <*• m rH O VO St rH rHl| >N M O I 3 O^g . "* CM" + HI rl 4J B •Q ^^ 00 rl CM CM m rH rH , rH rH CM rH rH ro 09 3 O 3 " CO X! JO iy ^ro 4rS • B W 00 CO 4J CO rH S 1 r^ a "I o at cu co *r 73 ON Z 00 rH U 0 O rH 73 nj.no •p 14 0) 0) iH 4J J (iy >. st m in r^ i rH r- CM co CD CM CM I-H r* oo m CM CO B • rH O ,5 00 s~* r* OO r- rH I 3O ON CTN CM in m oo St rH OO CM st OO ON CM sO CO rHCM 0 • CM ON m st st VO •H st 34) 3 S 00 OO m rH CO r— «9 r* c 73 oo 1 O o st so o m " ^' CO VC ON r~- sO ID rH CM 3™ oo co ON co so m o so co rH & rH ° S O 73 a 0) « <M O CO st CM 0 0 n N-H rH st rH rH CM rH VO rH ON 00 rl 3 73 CO r-. C > a IH 0) OJ O 4) a 0 00 3 IH -rl 0) 1 < CO 0) 00 CM CM O I ON CM VO r^ I CM VO rH OO O O CN rH OO O O St PO ^5 ^3 C5 CM co m r^ o 09 s iH x: a «9 c ft u !1 5 CD E m oo sO sO ON O O CM CM CMrH 00 CM O f- rl 41 00 C m m oo CM CM • CM • 4) M-* Ll Ctl Cd 3 o CM r-Tr- * sO ON m <j- in m OsO Oao CM CM m *^ r^ \o CM co -U O 09 rH f 00 CO 00 CO in rH CM rH o OO VO CO CO « u o u «N co CO ID rH m oo •H a o 60 0) M 4J CO CO oo c^ S73 O oo « >N B 4I 0) • in 1 rH rl I 73 JC rH CO o r- i — * i 00 sO O r-l OO rH r^ r^co O<B in ifi r~ 0 rH <fr I VO CO CM 00 rHIO COCM rH 00 I 09 O 0) I P 1 rH rH rHll -H 0 rH O rl rl 4) JO 4I 0) M 1-1 00 rl S3 CO 1? 3 00 U CO 0) "s^. DB D h 4J H cnl B 1 rH Q--H DO § SrH P rH CO 0) rH | 1 S ••. ••.«H B j j | H 3 O H rH 0) 73 1 O 0) 0) O B t H O 0 1 Ol MH 4J CO 4J B 7 4J O CO 1 rll rl 0) U °3 0) 73 OH 73 > OOQ33D H 0) o o u as D H > 1 i-a i iH w i 5OUUXD 73 3|3|O.DV4 9 <£ B O| Ol >N 4> j o CO CO| CO| H Pi M 5 i IH 73 CO CO JO jQ O B 3 0) M t-5 4J O -Q O 01 4 &** 1 3 £ W fi 3 O rH"| CNl C0| stl -38-

79 s~- in m _ 3 M S tM-d-ON i m in CM r- oo rH oo (*?o co _. rH m S t i i— * CM CM io S t 00 so » oo \o a-* co rH in in en ao sO No o **"* 00 Ij * * * «*. f <3t _? > 0) i-H rH -tf- CMCMrH r-I + rH CO < PH 01 e o p rH in in i i-! CM -* in o "-*| -3- co so X 3 O C 0 4J o £§ -^ --*. No CM co mr^co p4 1 M oN *J CO V.O •d 0 0) 6C -3" O O I ^ O"i i"*~l ^ O ol ON ""•* i eg 2 « < T— i S t iJ3 *^ O "J" O ^H CMI f*i* *^ c^ 0) ^fr rH CM CO CM CM W rHl C^ O 1 r-i in m ai CO 3 0 ) • m O CO rH IrHrH rHrHrHOCMlrH *,, •H rH 11 OB '.— 0I CO §2 CO O oOOrHoOCOoOOCMinCOr^'cJ <N rH "3 In - 9 * C 60 U rH rH p 1-I 1 ? jj Sr5 4!2 "° "° "« c-mor~eooo r~ ^ a a p «p 2§ is ^ C tj co ** oo co a> rH S t so c*i as m rN o i/> P3 -v p in co co in r- -H 0) PL, ol rH CM CM 0 H-° 1 c e»~, O g> •o o 61 •H -r4H[ eg VOOCOOOt5pOOrH rH CM ** !X m co « tl iH r- Ol 0) oo 01 a> eo IJ O 01 rH tl o asr^p^cor*-inOOin-^- a* oo in ,— •<f 0) OJ OJ < O r- <t --t i-i rHrH 00 CO cd 1-i rH ;., 4 0) O CJ (l CM CO rH < eg A co 3 M 0) rH 01 i2 h CD u 0) B • n H co co eg O eg rHrHrH sO m r~ "I -a S 13 « «g •-> *3 60 <U rH S. 0) oj a 5 eo ^ O ^| 5 1 io ^ £ * ej X B 0 ) CMCMr-.m mcMsoo<^inml <^ "S V W rH cooooosooorHinmoo ON ""! «n ^JO. .J m U « * * « » *Q* Era P8 r-l rH rH CM rH i-H } r- I * 3 O i". 0) 0) < dl u o c ll B * eg a) O. H CO Bo ol O co eg 52 OCMaNCOrHoOOOr~CMJrH in rH IHj! ss a 4-J 0) rH in Oi « 0 H > B 0) CM co i r- I * • 61 a eg 0) ^ (J H u ,H < rH ' S t 00 0) rH U u 01 .° 01 0I 4J eg eg co u 5 (0 Ol o 0) to • m r"* 11 rH 'H O (0 rH r-! Q. 0 2 Z5 : i U s ^ iH 4J O jj .3 -H B«« si a « 1! eg-oegrHO) u 13 a! . rH 4J rH (X rH 00 0} OT 0) t^ •H B0alg<o) et) P M Company OO O B4JI«4CJl4-*rJrH (9 4J 4-| ,J B o o 0)i-iiHooiqj a>cg OHBrHOlrHCO-H B X O i-4 TJ B c 3 • »grHB•HOU4JtjOO C rH C 30lfjj M«M4IB^iHQBrHiHrH4J-r4<ir4 H U U 0I.C_MrC0).QBBO4JOc; B' ! OMu ail HOi2c/JH333<cj< rHOitJrH4J jSKei) o 0l030l3 H C £ a 0 OCUUOOT -~v — ,^- o rHCMCO^-insOf^oOCTVrH HO. H rHlCMlrO| M| jj ^ i3 4j X r] -39-

80 a •* $£ o r~ om s •* in 0 so 0 O 4) Z iJ 60-H ON 0) 10 ID rH 01 o £ m u 60 rl •3: !2 ITlO4U-lsO Oi-^ioS t rH CM rH -i oo ON CM O co rHl <N CO CM •* CM it> co in m so ON CM NO r-l !•* co ON r- ON CO 0 00 ON CO m o oN •* CM CM !» • ON CO •* sO r~ 00 CO NO S O o o U C 0I c « TO rH 0) Q* rH at J< a 0} >H rJ H 8i « " ? o H |j -C W a) w o l-4 U •) 9 rS S. I oi in a >j B >, at U rH 17 J rH U 0l B A n oi a <o oi ia i-> H oo a rl 0) "H O J O inOCM 0D oo in oi 60 o> « 0) 4-i •3 § r-l U ^ £ rH ^ • & & • •0 •rl M 0! rl rH • •H ,1 n & 5 w pa B I rt OI 0I U PL. IH col -40-

APPENDIX A (1) JP-.f! " Dear Dr. McKelveyt As you know, the subject of shut-in leases and shut-in gas completion* in the Outer Continental Shelf areas of Louisiana and Texaa has received widespread attention in the Congress and in the media. This matter was of particular interest in recent Joint hearings before the Senate Subcommittee on Antitrust and Monopoly and the Subcommittee on Administrative Practice and'Procedure of "the Committee on the Judiciary. Allegations have been made that DCS shut-in properties represent a significant, but now unavailable, supply of natural gas which is being deliberately withheld from the market. If there is any credence to this allegation, it is neceasary to determine the volume of gas involved and the resultant impact on available natural gas supply to meet a deepening .natural gaa shortage. If, on the other hand, these allegations are spurious, it ia equally essen- tial that the public be informed so that the dimensions of the natural gas shortage will not be obfuscated by unsup- portable charges. Therefore, it is imperative, that the staff of the Federal Power Commission undertake an intensive, thorough and comprehen*ive, analysis of'the data and informa- tion concerning these shut-in leases and well* and 1 reapect- fully solicit your cooperation and assiatance in this matter. At a time when this Nation ia confronted *ith a national energy emergency, an objective inveatigation by the profes- sional staff of this Commission.with the ^cooperation of the Dr. Vincent E. HcKelvey Director, U.S. Geological Survey National Center Reston, Virginia 22092

82 Dr. Vincent S. McKelyey - 2 - U. S. Geological Survey will serve the important public purpoae of identifying any immediately deliverable gas supplies which may be available to meet our vital energy requirements. Several informal contacts between the Commiasion's staff and the Division of Conservation have already been 'made in regard to, thi* subject and your staff has been most cooperative and courteous. However, I envision that an in-depth evaluation and analysia of the basic data underlying this inquiry will require even closer coopera- tion between our respective staffs and will undoubtedly involve .spine visits by our personnel to your regional offices in Metairie, Louisiana, and elsewhere, if necessary.. Mr. Gordon K. Zareski, Chief of the Planning and Development Division of the Bureau of Natural Gas will be in further contact with your repreaentatives to make auch arrangements as nay be required. I will appreciate your cooperation and am sure that the results of this analysis will be mutually beneficial. Sincerely, JOHN N. NASSIKAS John N. Hassikaa Chairman BNG Zareski,G:1/4/7* CHM Nassikas,J.N.:nbs:1/4/74 cc: CHM 2, BNG, ED - II -

83 APPENDIX A (2) United States Department of the Interior GEOLOGICAL SURVEY WASHINGTON, B.C. 20242 JAN 2 51974 Mr. John N. Naaaikaa Chairman, Federal Power Cooniaaion Waahington, D.C. 20426 Dear Mr. Naaaikaai Thank you for your recant lattar regarding ahut-in leaaea and abut-in gaa coopletions in tha Gulf of Mexico OCS. Aa diacuaaed with Mr. Zaraaki, our personnel axe to gat together in Hatalrie on Tuesday, January 22, 1974, and gat to tha source of tha data on abut-in laaaaa and abut-in gaa completiona. Sincerely your a, 0 Diractor - Ill -

84 APPENDIX B DCS Order No. 4 August 28, 1969 UNITED STATES DEPARTMENT OF THE INTERIOR GEOLOGICAL SURVEY CONSERVATION DIVISION BRANCH OF OIL AND GAS OPERATIONS GULF OF MEXICO AREA NOTICE TO LESSEES AND OPERATORS OF FEDERAL OIL AND GAS LEASES IN THE OUTER CONTINENTAL SHELF, GULF OF MEXICO AREA SUSPENSIONS AND DETERMINATION OF WELL PRODUCIBILITY This Order is established pursuant to the authority prescribed in 30 CFR 250.11 and in accordance with 30 CFR 250.12(d)(1). An OCS lease provides for extension beyond its primary term for as long as oil or gas may be produced from the lease in paying quantities. An OCS lease may be main- tained beyond the primary term, in the absence of actual production, when a suspension of operations or production, or both, has been approved. An application for suspension of production for an initial period should be submitted prior to the expiration of the term of a lease. The supervisor may approve a suspension of production provided at least one well has been drilled on the lease and determined to be capable of being produced in paying quantities. The temporary or permanent abandonment of a well will not preclude approval of a suspension of production as provided in 30 CFR 250.12(d)(1). Any departures from the requirements specified in this Order must be approved pursuant to 30 CFR 250.12(b). A well may be determined to be capable of producing in paying quantities when the requirements of either 1 or 2 below have been met. 1. Production Tests. A. Oil Wells. A production test of at least two hours duration, following stabilization, is required. B. Gas Hells. A deliverability test of at least two hours duration, following stabilization, or a four-point back-pressure test, is required. C. Witnessing and Results. All tests must be witnessed by an authorized representative of the Geological Survey. Test data accompanied by operator's affidavit, or third-party test data, may be accepted in lieu of a witnessed test provided prior approval is obtained from the appropriate district office. The results of the witnessed or accepted test must justify a deter- mination that the well is capable of producing in paying quantities. 4-1 - IV -

85 Production Capability. Information for determining producibility should be submitted in time to permit one week for evaluation and determination. In cases of urgency, determinations may be conveyed orally. The following may be considered as acceptable evidence that a veil is capable of producing in paying quantities: A. An induction-electric log of the veil, clearly showing a minimum of 15 feet of producible sand in one section which does not include any interval which appears to be water saturated. AH of the section counted as producible must exhibit the following properties: (1) Electrical spontaneous potential exceeding 20 negative millivolts beyond the shale base line. If mud conditions prevent a 20 negative millivolt reading beyond the shale base line, a gamma ray log deflection of at least 70 percent of the maximum gamma ray deflection in the nearest clean water bearing sand may be substituted. (2) A minimum true resistivity ratio of the producible section to the nearest clean water sand of at least 5:1, provided the producible section exhibits a minimum resistivity of 2.0 ohm-meters. (3) A porosity log indicating porosity in the producible section. B. Sidewall cores and core analysis which indicates that the section is producible. C. A wire line formation test or evidence that an attempt was made to obtain such test. The test results must indicate that the section is producible. D. All logs run must support other evidence that the section is producible. Robert F. Evans Supervisor \ ^ 'roved: August 28, 1969 RusseJl Chief JIG. tiayland f~ , Conservation Divisi ivision 4-2 - V -

86 APPENDIX C OCS Order No. 12 August 13, 1971 UNITED STATES DEPARTMENT OF THE INTERIOR GEOLOGICAL SURVEY CONSERVATION DIVISION BRANCH OF OIL AND GAS OPERATIONS GULF OF MEXICO AREA NOTICE TO LESSEES AND OPERATORS OF FEDERAL LEASES IN THE OUTER CONTINENTAL SHELF, GULF OF MEXICO AREA PUBLIC INSPECTION OF RECORDS This Interim Order is established pursuant to the authority prescribed in 30 CFR 250.11 and in accordance with 30 CFR 250.97 and 43 CFR 2.2. Section 250.97 of 30 CFR provides as follows: Public Inspection of Records. Geological and geophysical interpretations, maps, and data required to be submitted under this part shall not be available for public inspection without the consent of the lessee so long as the lease remains in effect or until such time as the supervisor determines that release of such information is required and necessary for the proper development of the field or area. Section 2.2 of 43 CFR provides in part as follows: Determinations as to Availability of Records. (a) Section 552 of Title 5, U.S. Code, as amended by Public Law 90-23 (the act codifying the "Public Information Act") requires that identifiable agency records be made available for inspection. Subsection (b) of section 552 exempts several categories of records from the general requirement but does not require the withholding from inspection of all records which may fall within the categories exempted. Accordingly, no request made of a field office to inspect a record shall be denied unless the head of the office or such higher field authority as the head of the bureau may designate shall determine (1) that the record falls within one or more of Subsection (b) of section 552 provides that: (b) This section does not apply to matters that are— *** (4) Trade secrets and commercial or financial information obtained from a person and privileged or confidential; *** (9) Geological and geophysical information and data, including maps, concerning wells. .- VI -. 12-1

87 the categories exempted and (2) either that disclosure is prohibited by statute or Executive Order or that sound grounds exist which require the invocation of the exemption. A request to inspect a record located in the headquarters office or a bureau shall not be denied except on the basis of a similar determination made by the head of the bureau or his designee, and a request made to inspect a record located in a major organizational unit of the Office of the Secretary shall not be denied except on the basis of a similar determination by the head of that unit. Officers and employees of the Department shall be guided by the "Attorney General's Memorandum on the Public Information Section of the Administrative Procedure Act" of June 1967. (b) An applicant may appeal from a determination that a record is not available for inspection to the Solicitor of the Department of the Interior, who may exercise all of the authority of the Secretary of the Interior in this regard. The Deputy Solicitor may decide such appeals and may exer- cise all of the authority of the Secretary in this regard. The operator shall comply with the requirements of this Order. Any depar- tures from the requirements specified in this Order shall be subject to approval pursuant to 30 CFR 250.12(b). 1. Availability of Records Filed on or after December 1, 1970. It has been determined that certain records pertaining to leases and wells in the Outer Continental Shelf and submitted under 30 CFR 250 shall be made available for public inspection, as specified below, in the Area office, Metairie, Louisiana. A. Form 9-152 - Monthly Report of Operations. All information contained on this form shall be available except the information required in the Remarks column. B. Form 9-330 - Well Completion or Recompletion Report and Log. (1) Prior to commencement of production all information contained on'this form shall be available except Item la, Type of Well; Item 4, Location of Well, At top prod, interval reported below; Item 22, if Multiple Compl., How many; Item 24, Producing Interval; Item 26, Type Electric and Other Logs Run; Item 28, Casing Record; Item 29, Liner Record; Item 30, Tubing Record; Item 31, Perforation Record; Item 32, Acid, Shot, Fracture, Cement Squeeze, etc.; Item 33, Production; Item 37, Summary of Porous Zones; and Item 38, Geologic Markers. (2) After commencement of production all information shall be available except Item 37, Summary of Porous Zones; and Item 38, Geologic Markers. 12-2 - VTT -

88 APPENDIX C (3) If production has not commenced after an elapsed time of five years from the date of filing Form 9-330 as required in 30 CFR 250.38(b), all information contained on this form shall be available except Item 37, Summary of Porous Zones; and Item 38, Geologic Markers, ffithin 90 days prior to the end of the five-year period the lessee or operator may submit objections to the release of such information. The supervisor, taking into consideration the objections of the lessee, proximity to unleased lands, and the best interests of the United States, may determine that such information shall not be released. C. Form 9-331 - Sundry Notices and Report on Wells. (1) When used as a "Notice of Intention to" conduct operations, all information contained on this form shall be available except Item 4, Location of Well, At top prod, interval; and Item 17, Describe Proposed or Completed Operations. (2) When used as a "Subsequent Report of" operations, and after commencement of production, all information contained on this form shall be available except information under Item 17 as to subsurface locations and measured and true vertical depths for all markers and zones not placed on production. D. Form 9-331C - Application for Permit to Drill, Deepen or Plug Back. All information contained on this form, and location plat attached thereto, shall be available except Item 4, Location of Well, At proposed prod, zone; and Item 23, Proposed Casing and Cementing Program. E. Sales of Lease Production. Information contained on monthly Geological Survey computer printout showing sales of production of oil, condensate, gas and liquid products, by lease, shall be made available. 2. Filing of Reports. All reports on Forms 9-152, 9-330, 9-331, and 9-331C shall be filed in accordance with the following: A. All reports submitted on these forms after the effective date of this Order shall be filed in two separate sets. All items on the forms in one set shall be completed in full and such forms, and all attachments thereto, shall not be available for public inspection. The additional set shall be completed in full, except that the items described in l.(A), (B), (C), and (D) above, and the attachments relating to such items, may be excluded. The words "Public Information" shall be shown on the lower right-hand corner of this set. This additional set shall be made available for public inspection. B. Copies of reports on these forms which were filed between December 1, 1970, and the effective date of this Order, shall be resubmitted (in duplicate or triplicate, as provided by -_ VTTT 12-3

89 3. the regulations) within 30 days after the effective date of this Order. These reports may exclude the items described in 1. (A), (B), (C), and (D) above, and shall show the words "Public Informationl' on the lower right-hand corner and shall be made available for public Inspection. Availability of Records Filed Prior to December 1, 1970. Information filed prior to December 1, 1970, on the forms referred to in (1) above, is not in a form which can be readily made avail- able for public inspection. Requests for information on these forms shall be submitted to the supervisor in writing and shall be made available in accordance with 43 CFR Part 2. Robert F. Evans Supervisor Approved: August 13, 1971 Russell G. Wayland Chief, Conservation Division 12-4 - IX -

90 APPENDIX D- USGS FORMS FOR LEASE OR WELL REPORTS (1) Form 9-152 Monthly Report of Operations (2) Form 9-330 Well Completion of Recompletion Report and Log (3) Form 9-331 Sundry Notices and Report on Wells (4) Form 9-331C Application for Permit to Drill, Deepen or Plug Bac Items of confidential status and not to be reported on "Public Information" set of forms are designated in OCS Order 12 (August 13, 1971) and are indicated on the forms in this appendix by shading. - X -

91 FORM 9-I5:1 l1. r. 10.-, I HlllHIlll OHIOINAI. < i»l»y only. Rud(K Burau No. 42-Rl2MJ. Approval eipir,« l2-3l-73. UNITED STATES DEPARTMENT OF THE INTERIOR GEOLOGICAL' SURVEY MONTHLY REPORT OF OPERATIONS OUTER CONTINENTAL SHELF Lease No Unit Are*. Area Block FimlH Adiacent State The month oj Jdlowing is a correct report of operations and production (inci iding drilling and producing wells) Jor the f WELL No. LOCATION Dm OUT- CU. FT. or Ou BUBUJ or WATEE REMARKS (H driittn*. d^ith; Uthut<k»n,<H».;<te.) (By sutxJivulon) PKO- B AHIUI or OIL DULT ATUAOE ITT (In ihoimnds) (If DOM, W *Ute) Compan Addre y „ PUC«D is By . Title Date Ther s were ... _ runs or sales of oil; .. .. M cu. ft. of gas sold: .. rum or sales of g>aoliae during the month. (Write "no" where applicable.) Refer to Outer Continental Shelf Regulations, 30 CFR Part 250.93, when preparing this form. The United States Criminal Code, 18 V. S. C. 1001, makes it a criminal pffen.se to make a willfully false statement or represen- tation to any Department or Agency of the United States as to any matter within its jurisdiction. 18—7l3I»-« U.t. «OVI*««NT MIVTIM O

92 APPENDIX 0 «-'«-« UNITED STATES •OTHTT m DOKJCATB- DEPARTMENT OF THE INTERIOR ;5H£ GEOLOGICAL SURVEY Fora aBBrmai B>at«tiwM No. 41 UUI WELL COMPLETION OR RECOMPLETION REPORT AND LOG * 6. LBABB BBBIOMATIOB ABB BBKIAI. BO. V TYPE OF COMPLETION: MBW (— 1 WOBK I— I DBBP- |— 1 PLCS f~l DWP. f— I WBLL 1 1 OVBB 1 — 1 BH BACK L BBBTB. 1 1 Other _ ssuin 5*s>.n . ««~ •' T. I' MIT AOBBBMBXT BAMB I. HAKB Or OPBKATOB 8. FABU OB LBABB MAMB 8. ADDBBBB Or OrBBATOB • WBLL BO. 4. LOCATION or WBLL (Report location dearly »n4 ta accordance w<(» any Stale refiilrmmlt)* At rarfaea 10. rIBLD AID POOL. OB WILDCAT At to* BMC laur»»l r»porud B*fo* At total deptk 11. BEC.. T.. B., ».. OB BLOCK ABB BUBTET OB ABBA 14. PBBUIT MO. DATB IBBIBD 1 It. COOMTT OB 18. BTATB PABIBH 18. DATE BPUDDBD 18 DATB T.D. BBACHBD IT. DATB COMPL. (*•«<» It Sra*.) lg BLBTATWKB (W. BKB. BT, OB, BTC.)* *•• "•*»• CABINBHBAB J». TOTAL DEPTH, ED A TT > 11. PLUO. BACK T.D.. KD » TYD STT» ItfLIWUI CO¥rL., 28. IKTBBTALB BOTABT TOOLB CABLB TOOLB HOW M»»t' DBILLBD BT M. PBOOoente »M»K«TA«,{S), or rm«B COXPUSTIOM— TOP, BOTTOM. XAHB (•» AXD TTB>* za. WAB DIBBCTTOSAL BuBTBT MABfJ ««, ttw A«B IT. WAB WBLL rOBKD CABIMO BOB CABHTO MtCOKD <*«><»r< ^tttntfi Ml BE IB>U) '»•»«*«»» !»>r M. tnnut TTBPIG JtlXXMtD <>•»» •OTTOK (MB) SACKC <MBPTW ••» (ITB> P*C««B •»* («B) ACID, SHOT. UtACTOTt*. CBWENT MMMUDUt BtO. Mrm i»T«i»iL IMD) AMOtJt* OP X»TB»Ut PB»» PRODWTIOH B*«B roan noMrcno*'' J »»HIE»I» «fx mi BU . CKO«B ta* MOB**. *OB T««T ncwoD «A8—SJCr. WATBB—«»L. «A»-0«L «*»«> e*anto rtBMtru M-B3XJE aATB WA«LB-»*tnk. on. ««A»JT»-A« (co«»'> 34 DIBPOBITIOM Or OAB (Sold, iU»t /Or /Ml, fXmtad, ««.) TEBT WITXBBEBD BT 89. LIET Or ATTACBMBHTB 88. I kanby certify that tl» (orefolDf and attached Information U compleU and correct «• detcrmloed from all aTallable ncorda SIGNED TITLE DATE STORM CHOKS •Ttt* *(See Initructioni and Spacet for'Additional Data on Reverw Sid*) - XII - LOG. _^__

93 II! * i!!d ii 8! ii . a« s*s. 83 Ii* i" !?i :^ f-' II M sS; f s bO Z O ^ \J * m i ipi] lili.il ! IJMJ1 llgfgfi 8£l«-£a i Backvid* of Torn 9-330 APPENDIX D - xin —

APPENDIX 0 (3) fS" "iiJJ, UNITED STATES SUBMIT n» TRIPLICATE* DEPARTMENT OF THE INTERIOR ISSUf""" " * Form approved. Bndfet Bnrean No. 4S-R14M GEOLOGICAL SURVEY B. LBABB DBBI0NATIOH AMD BBBIAL BO. SUNDRY NOTICES AND REPORTS ON WELLS 6. ir INDIAN. ALLOTTBB OB TB1BB HAME (Do not nae thla form for propoaale to drill or to deepen or plug back to a different nwrTolr. U*a "APPLICATION FOR PERMIT—" for each propoaala.) i. T. UNIT AOBBBMBBT NAMB OIL I — I OAB 1— 1 WBLL 1 1 WBLL 1 1 OTHBB 2. MAKB Or OPBBATOa 8. VABM OB LBABB NAMB 8. ADDBBBB Or OPBIATOl 9. WBU, NO. 4. LOCATION or « ILL (Report location clearly and ID accordance with anj State reqalrementa.* See alao apace 17 below.) At aarface 10. riBLD AND POOL, OB WILDCAT if At top prod, interval * At* total depth 11. BBC., I, B, M.. OB BU. AMD BOBTBT Ol ABBA 14. PiaUIT NO. 16. EUTATIONB (Show whether or. BT. oa, eta.) 12. COONTT OB PABIBB 18. Wt ATE 18 Check Appropriate Box To Indicate N ature of Notice, Report, or Other Data NOTICB Or INTENTION TO! BOBBBO.DBNT BBTOBT Of. ^^_^ TUT WATEE BHOT-Orr PCLL Ol ALTEB CABIXO WATBB BHOT-Orr BBrAIBINO WBLL rBACTUBB TBBAT MULTIPLB COMPLETB rBACTUBB TBIATMtNT ALTHING CABINO SHOOT OB ACIDISB ABANDON* BHOOTINO OB ACIDISING ABANDONMBNT* REPAIR WBLL CHANOB PLANE (Other) . . (Other) (NOTB : Report reealta of moltlple completion on Well Completion or Recoupletlon Report and Lot form.) IT. MMCMB* rawo»*o 0« co»fL*T»<> 6**»AT»*e <Cl«a rly state all pertinent details, aatf ft** perttntat 4«t«. (BclitdiB* eittmated tet* at at* prop***! work. « wefl l* dU»cOoo»nr 4rlU«J. «i« xibaorf aoe kntluna and meaaored Swd Imt TWtlcaJ depth* for all ovrkera Mt to nnt (a thto work.) • rttat •» mm pert 18. I herehy certify that the forerotajf Is true and correct SIGNED TITLE . DAT! ' (ThU apace for Federal or State office Dae) APPROVED BT CONDITIONS OF APPROVAL, IT ANT: TITLE . DATE 'See Instruction* on Reverie Sid*

95 Fo APPKNDTX D l&^ •2«v,S 3§|f 13ls i'.i; m ?-s: fiisl

96 Form»-8SlC (May 1083) UNITED STATES DEPARTMENT OF THE INTERIOR GEOLOGICAL SURVEY Appwor* D (4) SUBMIT IN TRIPUCATi:* on Form approved. Budiet Bureau No. 42-R1415. I 0. LBASB DBSIGNATION AMD BBB1AL »O. APPLICATION FOR PERMIT TO DRILL, DEEPEN, OR PLUG BACK 0. IT INDIAN, ALLOTTU O» TUBE HAME IB. TTPB Or WORK DRILL D DEEPEN D b. Tin or WELL [— i 1 _ 1 OIL WELL OAS WELL BINOLB (OME PLUG BACK D r— ! MULTIPLB f~~| 1 - 1 ZOKB 1 - 1 7. CHIT AORBBMBNT HIM* 8. rARM OB LBABB NAMB 2. NAMB 0* OPBRATOR B. WBLL MO. 3. iDDRHS Or OPBRATOR 10. rIBLD AND POOL, OB WILDCAT 4. LOCATION or WELL (Report location clearly and In accordance with any State requirement!.* ) At aurfaee At piovmrt prod, watt 11. BBC., T., B., M., OB BLX. AND BUBVBT O> ABBA 14. DIBTANCB IN MILBS AND DIRBCTION rROM NIAaMT TOWN OK PORT OmCB* 1 12. COUNTT OB PABIBH 18. BTATB 15. DIBTANCB raOM PBOPOBBD* LOCATION TO NBABEBT PBOrBBTI OB LEABB LINB, FT. 16. NO. Or ACBBB IN LBABB IT. NO. Or ACBBB ABBIONBD TO THIS WBLL (Alao to Dearat drl(. unit line. If a oy) 18. DIBTANCB raOM PaOPOBED LOCATION* 19. PaOPOBBD DBPTH 20. BOTABI Oa CABLB TOOL* 01 APPUB roa, OH rma LBABB, rT. SI. IIBVATIONB (Show whether D7. ET. GB. etc.) 22 APPEOI' DATB wou WILL BTABT* SIT PSOPOBBD CASING ANO CJMBmTIMO FKOOEAM SHB Of HOLB •as op CASINO WBMBT J-0 «»T BTWTINS oapra <JOA»TITI 0» CBVBir* \J ^» . IN ABOVB BPACB DBSCRIBE PBOPOBBD PBOOBAM : It prnponal IB to deepen or plug back, (ITe data on preaent prodoctlTe aone and propoted new produetlTe •one. If propoBal IB to drill or deepen dlrectlonally, give pertinent data on aubaurface locations and meaaured and true vertical deptba. Qlve blowout preventer program. If any. — (Thta apace for Federal or State office uae) PBBHIT NO.. APPBOTAL DATB .. APPROVBD BY CONDITIONS Or APPBOVAL, IF ANX : *See Instruction* On RevencSid* - XVI -

97 r appropriate action by either ncerning the use of this form T or will be issued by, or may propriate notations. Ckmsalt requirements. Consult local j or on this reverse side, show- • State agency offices. • o BacksId* of Porn 9-33LC APPIN0IX D (4-) 1 <u p S £8 = a 3 g 1 2 5 I 31* S? a° a a* i 73 i of lands and le: special inBtructI either are show * ;eordance with I S3 K 1 g 1* *I *j £ £ DO i 3 1 - ™ § i - « UN III c • «S 5 a 1 ~3 a f 5s! I I a* « 3 5-a a a a II X •u °>,T3 a a 6 *"S3 I i Si 2 i a Li a ^ •§5 I 8 • •o a 3 55| a « X i i all o __ • "3 a i (-. S o si « I ? 0 Oi •s £ P BO 1 ' S'ff- § s •o « I" s-o i a a d 0 I 1 o 03 S g 00 fl H O |9f j> o> 3 a «i *- 8 § a 1 &• E S ii 1 e a distances oT » 0 * i. 55° subsurfac a M I4 ii -' S^s 5ls b b O O •OTJ 0 t £ £ s ! perform cert) leral and/or ;ard to local, t a different i work propose 1 § be found by i y other requ; 8 t S « 1 s 1 1 §• « g •a 2|£ • it M 8 ^3 ^ a IJSfl "o a I 5 •O T3 P | fl i?1 It^S 2 a 1?" K B E § agSe P I a* E »*3 o I||I j O0 3 &c a L S| s 1 4I s |*i a§S«2 £ 1 s§ V o y « 3 .» •I'? -5 %H r3 O 3 3 8 1! al k fc O.^'fl ? S »i> O 03 O & *- . g * S2 I! 11 i a 1 &•" w 0) 3 1 gf p £ £ g _ji fill GO OS d> « c* s 2 !i • J^5 i M 8* « S sIP 2 Cc §, & 0I 0 11 VI B • S ™ O 4l sr )— 4J £S83 i : Needed s to, and 00 1P4 i 33^"- fiooN| iD 8 1 i £ S:l« *4 J 2 *- £ " £ — i ^2 •* "O IA a g 0 Sr) 00 M 00 i^"! i 0l 3 E* H JOB w PI ad Is «3 ;S III _o N* a> "3. a S m M 0) 3 YVTT - —

98 FEDERAL POWER COMMISSION OFFSHORE INVESTIGATION: PRODUCIBLE SHUT-IN LEASES As of January 1974 (Second Phase) BUREAU OF NATURAL GAS STAFF REPORT Washington, D. C. July 1974

99 TABLE OF CONTENTS TOPIC Page No. INTRODUCTION AND SUMMARY 1 PROCEDURES 3 RECENT CHANGES IN PRODUCIBLE SHUT-IN LEASES .... 6 INDEX OF TABLES AND MAPS Table No. Title Page No. 1 Summary of Proved and Probable 8 gas Reserves 2 Gas Reserves - Leases Dedicated 9 by Gas Purchase Contracts 2-A Ranking by Volume of Proved Gas Reserves, Leases Dedicated by Gas Purchase Contracts 11 3 Gas Reserves - Leases Committed by Advance Payment Agreements 12 3-A Ranking by Volume of Proved Gas 14 Reserves, Leases Committed by Advance Payment Agreements

100 Table No. Title Page No, 4 Gas Reserves - Leases Not 15 Dedicated or Committed 4-A Ranking by Volume of Proved 19 Gas Reserves, Leases not Dedicated or Committed 5 Gas Reserves - Distances from 21 Existing Pipeline Map No. Title Page No. 1 Leases Classified as Producible 22 Shut-in, State of Louisiana, Outer Continental Shelf 2 Leases Classified as Producible 2k Shut-in, State of Texas, Outer Continental Shelf * Bureau of Natural Gas Frank C. Allen, Chief Planning and Development Division Gordon K. Zareski, Chief ii

101 INVESTIGATION OF LOUISIANA AND TEXAS OUTER CONTINENTAL SHELF FEDERAL OIL AND GAS LEASES CLASSIFIED AS PRODUCIBLE SHUT-IN AS OF JANUARY 22, 1974 (Second Phase) ESTIMATION OF PROVED AND PROBABLE RESERVES Introduction and Summary Introduction Bureau of Natural Gas staff members have completed the Second Phase of an investigation, undertaken at the direction of Chairman Nassikas, of Louisiana and Texas Outer Conti- nental Shelf Federal oil and gas leases which were classified, as of January 22, 1974, as "Producible Shut-in" by the Geo- logical Survey (USGS) of the Department of the Interior. The report of the First Phase of the investigation was issued in March 1974. A producible shut-in lease is a lease upon which at least one well has been drilled and which is determined by USGS to be capable of being produced in paying quantities and for which a suspension of production or operations has been approved by the USGS supervisor. For purposes of this report all such determinations by USGS were accepted without, an independent FPC evaluation thereof. The Second Phase of the investigation involved the esti- mation of the proved and probable gas reserves underlying the producible shut-in leases previously identified in the First Phase report. I/ The reserve estimations were made T7This Second Phase report is intended to be used in conjunction with the FPC staff report, Offshore Investigation: Producible Shut-in Leases (First Phase) January 1974. issued March 1974. The First Phase report should be referred to for definitions and other related subject matter.

102 - 2 - primarily in the Metairie, Louisiana offices of the USGS using basic reservoir data available in the USGS files. Expert advice, assistance and cooperation were given by USGS staff geologists and engineers. Summary Reserve estimates were made for each of the 168 leases classified by the USGS as producible shut-in as of January 22, 1974. Data available in the USGS files were utilized for esti- mating the gas reserves of 142 of the leases while reserve estimates for the remaining 26 leases were available in the records of the FPC. The results of these reserve estimates may be summarized as follows: 2J Proved Probable Lease Status No. Leases Reserves * Reserves * Dedicated by Gas - 45 1,666,257 1,108,522 Purchased Contracts Committed by Advance 32 1,185,653 985,483 Payment Agreement Not Dedicated or 91 1.867.901 1.179.088 Committed Totals 168 4,719,811 3.273,093 * (All volumes in MMcf @ 14.73 Psia and 60°F) 27 See also Table No. 1. _3_/ All of the gas reserves underlying dedicated leases may not be dedicated due to various contract provisions. See discussion in First Phase Report, Page 8.

103 - 3 - The gas reserve estimates have also been determined by lease term as follows: 3A/ Proved Probable Lease Term No. Leases Reserves * Reserves * Primary 60 2,969,066 2,761,927 (First 5 yrs.) Extended 108 1.750,745 511.166 (Over 5 yrs.) Totals 168 4.719.811 3.273,093 * (All volumes in MMcf @ 14.73 Psia and 60°F) Procedures Gas reserves for 142 of the 168 producible shut-in leases were calculated in the USGS Metairie, Louisiana offices using basic data available in the USGS files. The data utilized consisted of electric and other types of well logs, seismo- graph maps, core analyses, well production tests, formation tests, well completion reports, and other information. All reserves were estimated using the standard volumetric method of gas reserve calculation. The basic data utilized from the USGS files were of a confidential or proprietary nature as detailed in OCS Order No. 12. 4_/ In order to protect the confidentiality of the data it was necessary to assign a code number to each of the 168 leases for use in place of the OCS lease number, offshore area name and block number. This method of identification enables the reserve estimates to be presented here on a lease, rather than a composite basis, without relating the estimates to identifiable leases. 3A/See First Phase Report, Page 5,for discussion of lease terms. 4/ First Phase Report, Appendix C.

104 - 4 - For the purpose of this report, the producible shut-in leases have been grouped into (a) leases which are dedicated by gas purchase contracts, (b) leases committed by advance payment agreements, (c) leases not dedicated or committed. 2/ Gas reserves were estimated in both the proved and probable categories. Proved reserves were defined as follows: "Proved reserves of natural gas are the estimated quantities of natural gas which geological and engi- neering data demonstrate with reasonable certainty to be recoverable in the future from known natural oil and gas reservoirs under existing economic £>/ and operating conditions. "Reservoirs are considered proved if economic producibility 6/ is supported by either actual produc- tion or conclusive formation tests. The area of a reservoir considered proved includes: (1) that portion delineated by drilling and defined by gas-oil, gas-water, or oil-water contacts, and (2) the adjoining portions not yet drilled but which can be reasonably judged as economically productive 6/ on the basis of available geological and engineering data. In the absence of information on fluid contacts, the lowest known struc- tural occurrence of hydrocarbons controls the lower proved limit of the reservoir." Tj For the purpose of this report, probable reserves were de- fined as follows: Probable reserves of natural gas are the estimated quantities of natural gas which geological and engineering data demonstrate with reasonable probability to be re- coverable in the future from indicated natural oil and gas reservoirs under existing economic 6/ and operating conditions. 5/ First Phase Report, Page 7. bj For purposes of this report all volumes physically recoverable are considered to be economically producible. Tj American Petroleum Institute, Technical Report No. 1 Standard Definitions for Petroleum Statistics, July 1, 1969.

105 _ . 5 - Reservoirs are considered probable if economic — producibility is supported by core analyses and electric log evaluations indicating the probability of the presence of hydrocarbons. The area of a reservoir considered probable includes: (1) that portion deline- ated by drilling and defined by gas-oil, gas-water, or oil-water contacts, and (2) the adjoining portions not yet drilled but which can be reasonably judged as economically productive 6/ on the basis of available geological and engineering data. In the absence of information on fluid contacts, the lowest known struc- tural occurrence of hydrocarbons controls the lower probable limit of the reservoir. Data concerning the gas reserves estimated for the 168 leases classified producible shut-in, as of January 22, 1974, are tabulated in a series of tables attached to this report, which are briefly described as follows: Table No. 1, Summary of Proved and Probable Gas Reserves. Reserve totals are shown for leases dedicated by gas purchase contracts, leases committed by advance payment agreements, leases neither dedicated nor committed and total leases. Further, reserve totals are shown for type of gas (non-associated or associated and solution), lease term, and proved or probable categories. Average proved and probable reserves per lease are also shown. Table No. 2, Gas Reserves-Leases Dedicated by Gas Purchase Contracts. Dedicated-lease gas reserves are listed by lease, by lease term, as proved or probable, and by type of gas. Table No. 2-A, Ranking by Volume of Proved Gas Reserves- Leases Dedicated by Gas Purchase Contracts. Leases are listed by volume of proved reserves from largest to smallest volumes and by lease term. Table No. 3, Gas Reserves-Leases Committed by Advance Payment Agreements. Committed-lease gas reserves are listed by lease, by lease term, as proved or probable and by type of gas.

106 ~ 6 - Table No. 3-A, Ranking by Volume of Proved Gas Reserves- Leases Committed by Advance Payment Agreements. Leases are listed by volume of proved reserves from largest to smallest volumes and by lease term. Table No. 4, Gas Reserves-Leases not Dedicated or Com- mitted. Gas Reserves underlying leases neither dedicated by gas purchase contract nor committed by advance payment agree- ments are listed by lease, by lease term, as proved or probable and by type of gas. Table No. 4-A, Ranking by Volume of Proved Gas Reserves- Leases not Dedicated or Committed. Leases are listed by volume of proved reserves from largest to smallest volumes and by lease term. Table No. 5, Gas Reserves-Pistances from Existing Pipelines, The number of leases, by commitment status, with proved and probable reserve volumes are listed in mileage increments of distances from existing pipelines and by lease term. Recent changes in Producible Shut-in Leases The First Phase of the producible shut-in lease investi- gation was conducted in January 1974. Since that time various changes in lease status have occurred. A comparison of the January 1974 data with the USGS listing in Outer Continental Shelf Mineral Leases. May 31, 1974. shows the following: January 1974 Producible Shut-in Leases Producing 1. G1077 West Delta Block 64 2. G1612 South Pass Block 67 3. G2109 Eugene Island Block 306 4. G2111 Eugene Island Block 314 portion 5. G2127 East Cameron Block 33 portion 6. G2306 South Marsh Island Block 261 January 1974 Producing Shut-in Leases Expired 1. G1725 Brazos Block 506 2. G1807 Galveston Block A-84

107 -- 7 - Leases Classified Producible Shut-in since January 1974 1. 0781 South Marsh Island Block 35 2. G1494 West Delta Portion Block 33 3. G1565 South Timbalier Block 179 4. G2161 Grand Isle Block 76 5. G2354 High Island Block 111 6. G2437 West Cameron Block 595 7. G2358 High Island Block A-442 8. G2368 High Island Block A-480 The deletion of 8 leases from the producible shut-in classification and the classification of 8 additional leases as producible shut-in results in the total number of producible shut-in leases remaining at 168 as of May 31, 1974. BUREAU OF NATURAL GAS Victor H. Zabel, Acting Head Reserves Evaluation Section Planning and Development Division John S. Bassett, Field-Team Leader

108 tl i_i en so CO sO so 0 !r~ co coloo O CM Os 00 ol CM ,-J in O rHs*ll id • "-i- J3 m co *. •*.". 'X so"<r1ol| 5 _ ^x: •jV - , CM* o r-so en -^T T-> • DU CM ** en en I I en ,-i r~ 00 so so IT in oo !so CM oSSfell s O CM •^ CM lol 1 a r* en O oo en "1 . V . O^ ^ [00 1 1 M S •^•s,o CM in r» •-i in r- ° S 0 4£ b ^ 00 so CM en in r-l en CM flu -•— ' II CM Os -tf en CM so 00 sV CM CM in 00 CM sO cr O .C in •tf O O O o • . so en oN m eg y— ', l4_I en in 00 CM en in r-J r-l r- ! B X + sf so O o oo 00 sO — i w 0 ^^ V 0l -J F-* Os ON as CM .^ r^»n i-i £ i-4 l-4 CM en flO 0 1 •* co o en en o so *n o in o in m l-i m in -*t 0 r^ 00 ii l-i i-i r-j so •3- -» *"^fl - • • A * r^ Os O CT' O' r— so m o in •<t en IH o OCl r^ ao sO OOO 00 sO so in OH oo ".-- so s7lCM - 00 C •H CM r-N §b] Fb U •> O 4 M r-* \ U I 1 So M ii •O 0) W so u b tl 10 -" 01 c ^ r-i CM M O CM CM 4J -7 so -in w -o ^s O IM U en 5 so en Os U CM sO so -3* O> f O 0 en l-i •st Si * S CO CM O «N -» so 0 -i . . » U - • • V Z U H 01 < O enlen c m |m « in -4 CM I CM *» r- 3 -i -0 so CM r^ OK e o CM ON CM M U O) C- ^ CO 1 1 •-i O rJ -i i O o> i-l pa en jc u OH 0I 1 •) 9 U •o CO c ^ Z H z § s~ * "-" OH 3 in in in en 0 eg IT CM so CM oi 4) 00 O ON O 00 ^j CM r~ CM in •I 0 8 5| Q ® CM O CM T3 Os S t co u en so °1 £ sO_0 SO 3 jM I i • • in" 4* « en ocT CM en rJ « en CM in m CM in >• so -J 00 U so n CTs 00 CM r* O * ^ T3 ON so 0 « ,-i -O r- oo m -H 1 00 CM 0 « H •< Q b > C 06 M O O -H '- - IJ i o 00 •-i 0I u 00 - •-< — i U 1 P H M £ -rl 41 Z O (i. 01 Ou « -o < U M < U U [*4 01 a* E a ti < 01 o jj 01 S u ix > <H OO o- -» n <J en CM ICM eg en r-lo l-l .j en oo X in en O O 00 4) r~ CM O n 00 .* 0 to < in ^"* 4 CM in 00 tl rJ ?1 r^ -- 00 U CM -*t 4 S 3 -V - Ii en'r-' fi" « . . . o so •-i r- H r^ en 1 < 00 <U I so CM IT CM OOIO r-t i a IT 00 H CM| £ m o> en *-i pa In 53 00 IT CM •-l CM 0 O I CM O •-" r- en so -4- oo en 00 sO en ^ f** CM » H - . « -/ O i-i r~ r- so S CM CM r- CM p~ 00 en a /_s 00 £ CM r- O O so SO oo in ^ <; u in Os r-C r-- « B H CM -H ,3 I?5 ! ss „ S3 CM r- *t O oolooll 3 01 Hffll p h £ en CM so sT sO 0 sD 11 el •-i P% E u el H C w < o 1 ti H a Primary Te Extended T eg u Primary Te Extended T •I H 0 H B • •O OB1 H u & u 73 0 >s I) H I eg 1 u E 0) O 3 U T3 l 1 S B -° 1 125 ta •HUH -8 -

109 Table 2 Sheet 1 of 2 LOUISIANA AND TEXAS OUTER CONTINENTAL SHELF CLASSIFIED AS PRODUCIBLE SHUT-IN FEDERAL OIL AND GAS LEASES GAS RESERVES-LEASES DEDICATED BY GAS PURCHASE CONTRACTS AS OF JANUARY 22, 1974 (All Volumes in MMcf @ 14.73 Psla at 60°F) Lease Code No Proved Probable Lease Totals NA I/ TbT A&S 2/ NA A&S 10 ~ (d) (el Proved Probable («) I - Leases in Primary Term -W (g) 122 41,006 2,738 41,006 2,738 123 5,178 40,358 5,178 40,358 124 245,496 13,907 245,496 13,907 133 1,438 44,149 1,438 44,149 134 22,774 663 70,848 871 23,437 71,719 147 104,379 129,385 104,379 129,385 151 52,238 96,838 52,238 96,838 156 13,398 38,439 13,398 38,439 157 5,522 32,932 2,135 5,522 35,067 158 124,421 6,382 124,421 6,382 164 38,663 22,838 38,663 22,838 165 21,960 21,960 166 201,978 349,740 201,978 349,740 167 85,059 6,857 91.916 943,476 Primary Totals Term 871,835 7,279 893,255 50,221 879,114 099 21,307 II - Leases in Extended Term 21,307 121 56,071 56,071 125 59,913 39,295 59,913 39,295 126 81,357 3,025 81,357 3,025 127 60,714 36,667 60,714 36,667 128 34,112 22,746 34,112 22,746 129 22,056 30,562 22,056 30,562 130 30,588 8,241 30,588 8,241 131 13,975 12,303 13,975 12,303 -9-

110 Table 2 (Continued) Sheet 2 of 2 Lease Proved Probable Lease Totals Code No. NA If A&S 2/ NA A&S Proved Probable (a) (b) (c) TdT (e) "TFT (g) II - Leases in Extended Term (cont.) 132 12,686 1,966 12,686 1,966 135 301 301 136 1,564 1,564 137 6,251 10,167 16,418 138 55,873 3,011 55,873 3,011 139 6,214 6,214 140 43,301 7,230 43,301 7,230 141 2,387 2,387 142 582 582 148 19,032 19,032 149 20,259 20,259 150 49,000 49,000 152 4,929 4,929 153 18,669 18,669 154 2,280 2,280 155 49,000 49,000 159 5,186 5,186 160 46,955 46,955 161 11,552 11,552 162 19,030 19,030 163 5,477 5,477 168 Extended 16,355 16,355 Term Totals 712,619 74,524 162,035 3,011 787,143 165,046 Total Leases 1,584,454 81^803 1,055,290 53,232 1,666,257 1^108,522 17 Non-Associated Gas. 2/ Associated and Solution Gas. -10-

Ill Table No. 3 Sheet 1 of 2 LOUISIANA AND TEXAS OUTER CONTINENTAL SHELF FEDERAL OIL AND GAS LEASES CLASSIFIED AS PRODUCIBLE SHUT-IN AS OF JANUARY 22, 1974 GAS RESERVES-LEASES COMMITTED BY ADVANCE PAYMENT AGREEMENT (All volumes in MMcf (3 14.73 Psia and 60°F) Lease Proved Probable Lease Totals Code No NA I/ A&S 2/ NA A&S Proved Probable fa) ~7b7 -TO (37 W (f) (R) I - Leases in Primary Term 093 50,686 44,132 94,818 094 34,548 13,003 34,548 13,003 095 1,479 1,479 096 91,183 290,162 91,183 290,162 097 31,205 4,146 35,351 098 16,930 16,930 100 37,643 28,517 37,643 28,517 108 41,313 2,594 41,313 2,594 109 26,296 26,296 110 27,975 65,156 27,975 65,156 112 5,624 6,810 5,624 6,810 115 3,205 72,643 6,172 3,205 78,815 117 159,527 1,962 8,620 161,489 8,620 118 17,920 362 17,920 362 120 26,374 26,184 26,374 26,184 143 319,941 157,653 319,941 157,653 144 4,114 24,250 12,478 4,114 36,728 145 67,072 67,072 146 160,050 160.050 Primary Term Totals 922,317 63,183 876,969 25,460 985,500 902,429 - 12 -

112 LOUISIANA AND TEXAS OUTER CONTINENTAL SHELF FEDERAL OIL AND GAS LEASES CLASSIFIED AS PRODUCIBLE SHUT-IN AS OF JANUARY 22, 1974 Table No. 2-A RANKING BY VOLUME OF PROVED GAS RESERVES LEASES DEDICATED BY GAS PURCHASE CONTRACTS (All volu •e* In MMcf (? 14.73 Psla and 60DF) Lease Leaae Total Reserve* Laaae Code No. Lease Total Reserves Code No. Proved I-Leases In Primary Term Probable 13,907 II-L«aae» Proved In Extended Probabl Term (Cone.) 124 245,496 137 tb,418 166 201,978 349,740 16* 16,355 158 124,421 6,382 131 13,975 12,30 147 104,379 129,385 132 12,686 1.96i 151 52,238 96,838 161 11,552 122 41,006 2,738 139 6,214 164 38,663 22,838 163 5,477 134 23,437 71,719 13* 5,186 165 21,960 132 4,929 156 13,398 38,439 141 2,387 157 5,522 35,067 154 2,280 123 5,178 40,358 136 1.564 133 1,438 44,149 142 . 582 167 0 91.916 943,476 133 301 787,143 Primary Term Total! 879.114 Extended Term Total* 165,046 Avg/Leases 62,793 67,391 Avg' Lease* 25,391 5,324 II-Leases in Extended Term Total Leases Jj 666^257 1,108,522 126 81,357 3,025 Avg /Lease 37,027 24,633 127 60,714 36,667 125 59,913 39,295 121 56,071 138 55,873 3,011 150 49,000 155 49,000 160 46,955 140 43,301 7,230 128 34,112 22,746 130 30,588 8,241 129 22,056 30,562 099 21,307 149 20,259 148 19,032 162 19,030 153 18,669 - 11-

113 ~ TSBTe 3 TContinued) Sheet 2 of 2 Lease Proved Probable Lease Totals Code No. NA I/ A&S 2/ NA A&S Proved Probable II - Leases In Extended Term 092 19,230 5,272 24,502 101 7,453 7,453 102 33,139 33,139 103 3,124 3,124 104 28,756 28,756 105 12,139 12,139 106 11,244 11,244 107 18,652 18,652 111 5,905 5,905 113 57,313 57,313 114 22,470 1,632 22,470 1,632 116 21,864 6,927 21,864 6,927 119 10,905 17,182 10.905 200,153 17.182 83,054 Extended Term Totals 172,411 27,742 81,422 1,632 Total Leases 1,094,728 90^925 958,391 27,092 1,185,653 985^483 IT Non-Associated Gas. 2/ Associated and Solution Gas. — 13

114 _ _ _ — xaDie wo. J-A LOUISIANA AND TEXAS OUTER CONTINENTAL SHELF FEDERAL OIL AND GAS LEASES CLASSIFIED AS PRODUCIBLE SHUT-IN AS OF JANUARY 22, 1974 RANKING BY VOLUME OF PROVED GAS RESERVES LEASES COmiTTED BY ADVANCE PAYMENT AGREEMENTS Lease Lease Totals (All volumes In MMcf @ 14.73 Psla and 60°F) Lease Lease Totals Code No. Proved Probable Code No. Proved Probable I-Leases In Primary Term II-Leases In Extended Term 143 319,941 157,653 102 33,139 117 161,489 8,620 104 28,756 093 94,818 092 24,502 096 91,183 290,162 114 22,470 1.632 145 67,072 116 21,864 6,927 108 41,313 2,594 107 18,652 100 37,643 28,517 105 12,139 097 35,351 106 11,244 094 34,548 13,003 119 10,905 17,182 110 27,975 65,156 101 7,453 120 26,374 26,184 111 5,905 1U 17,920 362 103 3,124 098 16,930 113 0 57.313 112 5,624 6,810 Extended Term 144 4,114 36,728 Totals 200,153 83,054 115 3,205 78,815 Aw. 'Lease 15,396 6,388 146 0 160,050 Total Leases 1 .185.653 985^483 109 0 26,296 Avg/Lease 37,051 30,796 095 0 1.479 Primary T«r« Totals 985,500 902,429 Avg/Lease 51,868 47,496 -14-

115 Table No. 4 LOUISIANA AND TEXAS OUTER CONTINENTAL SHELF Sheet 1 of 4 FEDERAL OIL AND GAS LEASES CLASSIFIED AS PRODUCIBLE SHUT-IN AS OF JANUARY 22, 1974 GAS RESERVES -LEASES NOT DEDICATED OR COMMITTED (All volumes in MMcf fl 14.73 Psia and 60 F) Lease "roved Probable Lease Totals Corlp No. NA l/ A6.3 21 NA A&S Proved Probable fa) fb) fc) fd) (e) ( f) (g) I - Leases in Primary Term 001 21,317 21 ,317 010 130,260 44,987 175,247 017 31,924 31,924 018 108,531 108,531 021 4,415 1,261 3,009 5 ,676 3,009 022 40,637 40,637 023 8,860 7,711 8 ,860 7,711 025 78,934 72,461 78 ,934 72,461 026 27,024 27,024 035 8,029 8 ,029 042 250,823 35,799 250 ,823 35,799 043 211,163 211 .163 062 0,565 12,115 4,931 3,907 21 ,680 8.838 063 8,739 8 ,739 064 7,616 7 ,616 065 2.2,065 22 ,065 066 2,252 2 ,252 067 46,231 46 ,231 070 23,247 23,247 071 22,271 22 ,271 072 123,310 26,810 123 ,310 26.810 073 184,259 131,884 184 ,259 131,884 076 182 182 -li-

116 Table No. 4 (Continued) Sheet 2 of 4 Lease Code No Proved Probable Lease Totals ._ NA I/ A&S 21 NA A&S Proved Probable (a) (b) (c) - (d) re) (f) fil I - Leases In Primary Term (Cont . ) 080 102,576 102,576 081 82,948 9,995 92,943 082 67,860 12,114 16,893 10,488 79,974 27,381 089 1,071 1,071 Primary Totals Term 1,077,709 26,743 823,398 92,624 1,104,452 916,022 II - Leases in Extended Term 002 3,675 3,675 003 1,477 1,477 004 1,580 1,328 1,580 1,328 005 12,395 12,395 006 24,218 4,519 28,737 007 39,760 39,760 008 44,763 44,763 009 41,235 41,235 Oil 4,048 4,048 012 4,403 4,403 013 1,221 1,221 014 3.124 3,124 015 27,498 2,560 27,498 2,560 016 11,078 11,078 019 244 60,121 244 60,121 020 1,555 1,547 1,555 1,547 024 3,486 5,182 3,486 5,182 027 52,538 52,538 - 16 -

117 Table No. 4 (Continued) Sheet 3 of 4 Lease Proved Probable Lease Totals Code No. NA I/ A6.S 21 NA A&S Proved Probable II - Leases In Extended Term CCont.) 028 5,549 2,132 5,549 2,132 029 1,288 1,288 030 12,938 6,734 13,464 19,672 13,464 031 9,360 9,360 032 14,293 14,293 033 8,249 8,249 034 6,743 6,743 036 18,009 583 18,009 583 037 1,100 1,100 038 10,539 10,539 039 22,068 22,068 040 9,627 9,627 041 68,670 2,703 71,373 044 11,601 11,601 045 11,549 11,549 046 27,834 27,117 27,834 27,117 047 18,172 3,829 18,172 3,829 04 fi 24,908 24,908 049 8,583 8,583 050 45,064 45,064 051 1,577 1,577 052 13,917 13,917 053 26,667 26,667 054 9,773 9,773 055 2,395 2,395 -17 -

118 Table No. 4 (Continued) Sheet '+ of '4 Lease Proved Probable Lease Totals Code No. NA I/ A&S 2/ NA A&S Proved Probable 11,449 1,1 - Leases in Extended Term (Cont . ) 056 11,449 057 1,105 1,105 058 17,702 17,702 059 55,958 55,958 060 6,151 6,151 061 2,135 2,135 068 780 780 060 881 4,370 881 '..370 074 4,520 4,520 075 364 364 077 2.824 21,038 7,874 21,038 078 260 260 079 071 071 083 3,768 3,768 084 2,355 2,355 085 21,488 21,488 086 31,655 31,655 087 2,010 5,736 7,746 088 3t4Q8 1,714 3,408 1,704 090 2,500 5,823 8,373 091 3,706 11,894 15,600 Extended Term Totals 682,312 81,137 238,600 24,466 763/440 263,066 Total Lease-! 1,760,021 107,880 1,061,998 117,090 1,867,901 1,1/79, 088 I/ Non Associated Gas 2_l Associated and Solution Gas -18 -

119 LOUISIANA AND TEXAS OUTER CONTINENTAL SHELF FEDERAL OIL AND GAS LEASES CLASSIFIED AS PRODUCIBLE SHUT-IN AS OF JANUARY 22, 1974 Table No. 4-A Sheet 1 o ( 2 (All volumes In MMcf (? 14.73 Psia and 60°F) RANK IMG BY VOLUME OF PROVED GAS RESERVES LEASES NOT DEDICATED OR COmiTTED Lease Code No. Lease Totals Leas* Lease Totals I-Leases In Primary Term Proved Probable Code No. II-Leases In Extended Term Proved Probable 042 250,823 35 ,799 041 71,373 043 211,163 059 55,958 073 184,259 131 ,884 027 52,538 072 123,310 26 ,810 008 44,763 082 79,974 27 ,381 009 41,235 025 78,934 72 ,461 007 39,760 067 46,231 086 31,655 071 22,271 006 28,737 065 22,065 044 27,834 27,117 062 21,680 1 ,838 015 27,498 2,560 001 21,317 04» 24,908 023 8,860 7 .711 039 22,068 063 8.739 030 19,672 13,464 035 8,029 0*7 18,172 3,829 064 7,616 036 18,009 583 021 5.676 3 ,009 058 17,702 066 2,252 091 15,690 089 1,071 0)2 14,293 076 182 052 13,917 010 0 175 ,247 005 12,395 017 0 11 ,924 044 11,601 018 0 108 ,531 045 11,549 022 0 40 ,637 016 11,078 026 0 27 ,024 038 10,539 070 0 23 ,247 054 9,773 080 0 102 ,576 040 9,627 081 0 92 .943 031 9,360 8.323 8,249 Primary Term Totals 090 ,022 033 ,926 1,104,452 40,905 916 Avg /Leases 33 -19-

120 Table No. 4-A (continued) Sheet 2 of 2 Lease Lease Totals LM ie Leue Total* Coii e No. Proved Probable Code No. Proved II - Leases In Extended Term Probable II - Leases in Extended Term (Cont.) (Cont . ) 08 03 06 021 07' 01 01 08. 00 081 02' 1 7.74.« k 6.743 ) 6,151 » 5.549 2.132 k 4.520 I 4,403 L 4,048 » 3,768 1 3,675 1 3,498 1,794 i 3,486 5,182 \ 3,124 F 2,824 21,038 I 2.135 t 1,580 1.328 L 1,577 ) 1,555 1,547 » 1,477 » 1,288 I 1,221 057 1.105 037 1,100 069 881 068 780 075 364 078 260 019 244 079 071 049 0 050 0 053 0 055 0 056 0 084 0 085 0 4,370 60.121 01 07 06 00- 05 02 00 02 OL Extended Tern Totals 763,449 8,583 45,064 26,667 2,395 11,449 2,355 21.488 263,066 4,110 1,179,088 Avg/Lease 11,928 Total Leaies 1,867,901 Avg/Lease 20,526 12,957 - 20 -

121 Jj ~ £ 1 £ s 2 5 § 2 g £ £ S 11] c Xftft £g 1 IssSS ? n! III ~s § § S $ £ $ ? it le 8 2 £ -I ol ^ 1 ^ i I: < a * g s I S Ss S §S g j c s » | s g 3 s s s » - S Is x-v 8Jr£itrti * S^SipiS 3 r-4Ql/NCOO ry iT, f j f- " ' O* "1 R » $ 5 * S S it » s 2 s 1. * a I * fcJt ° ' -" fe Ug • • i . E 5a fe S " 1 * LOUISIANA AND ."XO OU.• COS'' ,EDERAL OIL ASL 3A3 1 CLAS_IFIED O P-ODOCIblJ O _ _____ -, - GO -EO•O.-DI'5C. FRO, "l- Ldvincc Parment Agreaaenta S 1 I«bl« »o. ' - ** 9s*P S ' H M rf "" ^ 'i . - . * .-*... 1 3 O^^OOJ ff* C*fVIlr\WO tf ! j ] !R*rli^ S (S(O§r-4 L 1 *j • oiAiAtfiri ON iArr\*cIryol"^ I * ' 1 IN-* 4^ ryp^rf X3 \o 1 iA Rl 9* M iH l * I2 ini t iiir i 1 i I ! . - 5 < i 3 Q . Distance Proa Existing Pipeline K ry J 2 H 1 " SB £ S i *"* - O *^ O « 4• OnihK O n. ti • Hv^ O*T--* • •• C lf\ i~l ti -c *) l -•* O ** §,_* ^ O ** B« J30O4J« U o r - . .i ,r •« ** ** *> 0 .** ** ****** V *J *J 'ri 9 M fm H O t- M o $11