UNITED STATES GOVERNMENT MEMORANDUM

To: Public Information (MS 5030)

Plans Section, Office of Field 

Operations (MS 5231)

Public Information copy of DOCD

Control # - S-07518

Type - Supplemental Development Operations Coordinations Document

Lease(s) - OCS-G16965 Block - 206 Walker Ridge Area

Operator - Petrobras America Inc.

Wells No. 6 and 7

DRILLSHIP

Attached is a copy of the subject plan for public comments on issues that 

should be addressed in an Environmental Assessment.

It has been deemed submitted as of this date and is under review for approval.

Michelle Griffitt

Plan Coordinator

G16965/WR/206

G16965/WR/206

526 FSL, 3782 FWL

533 FSL, 3718 FWL

G16965/WR/206

G16965/WR/206

WELL/6

WELL/7

Site Type/Name Botm Lse/Area/Blk Surface Location Surf Lse/Area/Blk

Description -

Rig Type -

Subject:

From:

January 3, 2012

7 December, 2011

Supplemental Development Operations

Coordination Document for the

Cascade / Chinook Development Project

for Cascade East Development Wells 

S-7518 WR Block 206 No. 6 and 7

Public Version


Public Version

Submitted by:

Supplemental Development Operations

Coordination Document

for the

Cascade / Chinook Development Project

for Cascade East Development Wells 

S-7518 WR Block 206 No. 6 and 7

7 December, 2011
Petrobras America Inc. Page iii

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Table of Contents

Section/Chapter Page

Cover Letter

List of Tables ......................................................................................................... ix

List of Figures........................................................................................................ xi

Acronyms and Abbreviations .............................................................................. .xii

1 Introduction and Plan Contents............................................. 1-1

Introduction.......................................................................................................... 1-1

1(a) Plan Information Form (MMS-137) ........................................................ 1-7

1(b) Location ................................................................................................. 1-12

1(c) Safety and Pollution Prevention Features.............................................. 1-18

1(d) Storage Tanks and Production Vessels.................................................. 1-19

1(e) Pollution Prevention Measures .............................................................. 1-20

1(f) Additional Measures Safety and Pollution Prevention Measures.......... 1-20

2 General Information........................................................... 2-1

2(a) Application and Permits........................................................................... 2-1

2(b) Drilling Fluids.......................................................................................... 2-1

2(c) Production................................................................................................ 2-1

2(d) Oils Characteristics.................................................................................. 2-1

2(e) New or Unusual Technology ................................................................... 2-2

2(f) Bonding Statement................................................................................... 2-3

2(g) Oil Spill Financial Responsibility............................................................ 2-3

2(h) Deepwater Well Control Statement ......................................................... 2-3

2(i) Suspension of Production ........................................................................ 2-3

2(j) Blowout Scenario..................................................................................... 2-3

2(k) Chemical Products ................................................................................... 2-7

3 Geological and Geophysical (G&G) Information.......................... 3-1

3(a) Geological Description ............................................................................ 3-1

3(b) Structure Maps......................................................................................... 3-1

3(c) Interpreted 2-Dimensional and or 3-Dimensional Seismic Lines............ 3-1

3(d) Geologic Structural Cross-Sections......................................................... 3-1

3(e) Shallow Hazards Report .......................................................................... 3-1

3(f) Shallow Hazards Assessment .................................................................. 3-1

3(g) High-Resolution Seismic Lines ............................................................... 3-1

3(h) Stratigraphic Column............................................................................... 3-1
Table of Contents, continued

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3(i) Time vs. Depth Tables ............................................................................. 3-1

3(j) Geochemical Information ........................................................................ 3-1

3(k) Future G&G Activities............................................................................. 3-1

4 Hydrogen Sulfide (H2S) Information........................................ 4-1

4(a) Concentration........................................................................................... 4-1

4(b) Classification ........................................................................................... 4-1

4(c) H2S Contingency Plan ............................................................................. 4-1

4(d) Modeling Report ...................................................................................... 4-1

5 Mineral Resource Conservation Information ............................. 5-1

5(a) Technology and Reservoir Engineering Practices / Procedures .............. 5-1

5(b) Technology and Recovery Practices / Procedures and Reservoir

Information .............................................................................................. 5-1

6 Biological, Physical, and Socioeconomic Information .................. 6-1

6(a) High Density Deepwater Benthic Communities Information.................. 6-1

6(b) Topographic Features Map ...................................................................... 6-4

6(c) Topographic Features Statement (Shunting) ........................................... 6-4

6(d) Live Bottoms (Pinnacle Trend) Map ....................................................... 6-4

6(e) Live Bottoms (Low Relief) Map.............................................................. 6-5

6(f) Potentially Sensitive Biological Features ................................................ 6-5

6(g) Remotely Operated Vehicle (ROV) Monitoring Survey Plan ................. 6-5

6(h) Threatened and Endangered Species Information ................................... 6-5

6(i) Archeological Report............................................................................... 6-5

6(j) Air and Water Quality Information.......................................................... 6-6

6(k) Socioeconomic Information..................................................................... 6-6

7 Waste and Discharge Information........................................... 7-1

7(a) Projected Generated Wastes .................................................................... 7-1

7(b) Projected Ocean Discharges .................................................................... 7-1

7(c) Modeling Report ...................................................................................... 7-2

7(d) NPDES Permits........................................................................................ 7-2

7(e) Cooling Water Intakes ............................................................................. 7-2

8 Air Emissions Information .................................................... 8-1

8(a) Complex and Plan Emissions................................................................... 8-1

8(b) Screening Questions ................................................................................ 8-1

8(c) Worksheets............................................................................................... 8-1

8(d) Contact Information................................................................................. 8-2

8(e) Emissions Reduction Measures ............................................................... 8-2

8(f) Verification of Non-Default Emissions Factors ...................................... 8-2

8(g) Non-Exempt Activities ............................................................................ 8-2
Table of Contents, continued

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8(h) Modeling Report ...................................................................................... 8-2

9 Oil Spill Information ........................................................... 9-1

9(a) Oil Spill Response Planning .................................................................... 9-1

9(b) Oil Spill Response Discussion - BSEE Areas of Interest ........................ 9-5

9(b).1 Land Segment and Resource Identification ........................... 9-5

9(b).2 Response ................................................................................ 9-6

9(b).3 Decanting Strategy............................................................... 9-13

9(b).4 CGA Equipment Limitations ............................................... 9-13

9(b).5 Environmental Conditions in the GOM............................... 9-13

9(c) Oil Spill Response Discussion - USCG Areas of Interest ..................... 9-14

9(d) Modeling Report .................................................................................... 9-16

10 Environmental Monitoring Information...................................10-1

10(a) Monitoring Systems............................................................................... 10-1

10(b) Flower Garden Banks National Marine Sanctuary................................ 10-4

11 Lease Stipulations Information.............................................11-1

11(a) Topographic Features Stipulation.......................................................... 11-1

11(b) Live Bottoms (Pinnacle Trend) Stipulation........................................... 11-1

11(c) Military Warning Area Stipulation........................................................ 11-1

12 Environmental Mitigation Measures Information .......................12-1

13 Decomissioning Information ................................................13-1

14 Related Facilities and Operations Information .........................14-1

14(a) Related OCS Facilities and Operations ................................................. 14-1

14(b) Transportation System ........................................................................... 14-6

14(c) Produced Liquid Hydrocarbons Transportation Vessels ....................... 14-7

15 Support Vessels and Aircraft Information................................15-1

15(a) General................................................................................................... 15-1

15(b) Diesel Oil Supply Vessels...................................................................... 15-1

15(c) Drilling Fluids Transportation ............................................................... 15-2

15(d) Solid and Liquid Wastes Transportation ............................................... 15-2

15(e) Vicinity Map .......................................................................................... 15-2

16 Onshore Support Facilities Information ..................................16-1

16(a) General................................................................................................... 16-1

16(b) Support Base Construction or Expansion .............................................. 16-1

16(c) Support Base Construction or Expansion Timetable............................. 16-1

16(d) Waste Disposal....................................................................................... 16-1
Table of Contents, continued

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16(e) Air Emissions......................................................................................... 16-2

16(f) Unusual Solid and Liquid Wastes.......................................................... 16-2

17 Sulfur Operations Information .............................................17-1

18 Coastal Zone Management Act (CZMA) Information....................18-1

19 Environmental Impact Analysis (EIA)......................................19-1

19(a) Impact Producing Factors (IPFs) from the Proposed Activities............ 19-2

19(b) Existing Resource Conditions................................................................ 19-3

19(b).1 Air Quality ........................................................................... 19-3

19(b).2 Water and Sediment Quality.............................................. 19-10

19(b).3 Coastal Environments ........................................................ 19-12

19(b).4 Offshore Environments...................................................... 19-23

19(b).5 Marine Mammals............................................................... 19-24

19(b).6 Sea Turtles ......................................................................... 19-30

19(b).7 Pelagic Birds ...................................................................... 19-31

19(b).8 Marine Fisheries ................................................................ 19-32

19(b).9 Commercial and Recreational Fisheries ............................ 19-34

19(b).10 Protected Fish Species ....................................................... 19-37

19(b).11 Essential Fish Habitat ........................................................ 19-38

19(b).12 Social and Economic Conditions....................................... 19-39

19(b).13 Infrastructure...................................................................... 19-48

19(b).14 Onshore Infrastructure ....................................................... 19-49

19(b).15 Archeological Resources ................................................... 19-50

19(b).16 Other Uses of the Marine Environment............................. 19-51

19(c) Project Impacts .................................................................................... 19-54

19(c).1 Air Emissions..................................................................... 19-55

19(c).2 Noise Emissions................................................................. 19-56

19(c).3 Effluents and Discharges ................................................... 19-56

19(c).4 Physical Disturbances to the Seafloor ............................... 19-57

19(c).5 Impacts from Wastes Sent to Shore................................... 19-58

19(c).6 Marine and Coastal Resources........................................... 19-59

19(c).7 Accidents and Spills........................................................... 19-61

19(c).8 Other Impacts Identified .................................................... 19-62

19(d) Environmental Hazards........................................................................ 19-62

19(d).1 Geological Hazards............................................................ 19-62

19(d).2 Hydrogen Sulfide Determination....................................... 19-62

19(d).3 Loop Current and Deep Ocean Currents............................ 19-62

19(d).4 Hurricanes and Named Storms .......................................... 19-63

19(d).5 Operating Environmental Criteria for Product

Offloading.......................................................................... 19-64

19(e) Alternatives.......................................................................................... 19-64
Table of Contents, continued

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19(f) Mitigation Measures ............................................................................ 19-65

19(g) Consultation and Coordination ............................................................ 19-65

19(h) List of Preparers................................................................................... 19-69

19(i) References............................................................................................ 19-70

20 Administrative Information .................................................20-1

20(a) Exempted Information Description........................................................ 20-1

20(b) Bibliography .......................................................................................... 20-1

Appendices

1 Cascade Chinook SOP Approvals

1a Approved DWOP

2a GEMS Summary of Environmental Conditions for Cascade and Chinook

2b GEMS Shallow Hazards Report for Facilities

3 Air Emissions Worksheets

4 Oil Spill Response Equipment Response Times

5 Oil Spill Risk Analysis (OSRA) Report

6 NTL-06 Worst Case Discharge Evaluation

7-A Rig Waste Generated and Discharged

7-B FPSO Waste Generated and Discharged

7-C Rig Waste to Shore

7-D FPSO Waste to Shore

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List of Tables

Table Page

1-1 Storage Tanks and Production Vessels.............................................................. 1-19

2-2 Oils Characteristics ............................................................................................. 2-2

2-3 Worst Case Discharge Scenario........................................................................... 2-6

9-1 CGA Oil Spill Response Equipment and Staging Areas ..................................... 9-2

9-2 CCA Oil Spill Response Equipment and Staging Areas ..................................... 9-2

9-3 OSRO Mechanical Recovery and Storage Capabilities....................................... 9-2

9-4 Dispersant Inventories ......................................................................................... 9-3

9-5 Worst Case Discharge Scenario........................................................................... 9-4

9-6 Trajectory by Land Segment................................................................................ 9-5

9-7 Oil Spill Response Results................................................................................... 9-6

9-8 Oil Spill Response Equipment Limitations ....................................................... 9-13

9-9 FPSO Discharge Scenarios (USCG Areas of Interest) ...................................... 9-15

9-10 Shuttle Vessel Discharge Scenarios (USCG Areas of Interest)......................... 9-16

14-1 FPSO Topsides Design Parameters ................................................................... 14-6

14-2 Shuttle Vessel Transportation Information........................................................ 14-7

15-1 Support Equipment (Drilling and Completions Operations) ............................. 15-1

15-2 Support Equipment (FPSO Production Operations).......................................... 15-1

15-3 Diesel Oil Supply Vessels.................................................................................. 15-2

16-1 Onshore Support Facilities................................................................................. 16-1

18-1 Consistency Review Summary (Louisiana)....................................................... 18-5

18-2 Consistency Review Summary (Texas)........................................................... 18-15

18-3 Consistency Review Summary (Mississippi) .................................................. 18-22

19-1 National Ambient Air Quality Standards........................................................... 19-5

19-2 Coastal Ambient Air Quality ............................................................................. 19-7

19-3 Marine Mammals in GoM ............................................................................... 19-25

19-4 Sea Turtles in GoM.......................................................................................... 19-30
List of Tables, continued

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19-5 Fish Species Associated with Sargassum ........................................................ 19-32

19-6 Commercial Landings of Oceanic Pelagic Species ......................................... 19-35

19-7 Pelagic Species and Known Habitat Requirements and Spawning Areas....... 19-37

19-8 Protected Fish and Marine Mammal Species .................................................. 19-38

19-9 Population in Texas Counties Where Onshore Support Facilities may be

Located............................................................................................................. 19-40

19-10 Top Three Industries by Number of Paid Employees in Texas Counties Where

Onshore Support Facilities may be Located .................................................... 19-41

19-11 Population Numbers in Louisiana Parishes Where Onshore Support Facilities may

be Located........................................................................................................ 19-42

19-12 Top Three Industries by Number of Paid Employees in Louisiana Parishes Where

Onshore Support Facilities may be Located .................................................... 19-42

19-13 Race and Ethnicity Characteristics of the State of Texas and Texas Counties

Where Onshore Support Facilities may be Located ........................................ 19-44

19-14 Economic Characteristics of the State of Texas and Texas Counties Where

Onshore Support Facilities may be Located .................................................... 19-45

19-15 Race and Ethnicity Characteristics of the State of Louisiana and Louisiana

Parishes Where Onshore Support Facilities may be Located .......................... 19-46

19-16 Economic Characteristics of the State of Louisiana and Louisiana Parishes

Where Onshore Support Facilities may be Located ........................................ 19-47

19-17 Race and Ethnicity Characteristics of the State of Mississippi and Mississippi

Counties Where Onshore Support Facilities may be Located ......................... 19-48

19-18 Economic Characteristics of the State of Mississippi and Mississippi

Counties Where Onshore Support Facilities may be Located ......................... 19-48

19-19 Potential Impacts to Marine and Coastal Resources........................................ 19-54

19-20 E&E Contributors to EIA ................................................................................ 19-70

20-1 Proprietary Information ..................................................................................... 20-1
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List of Figures

Figure Page

1-1 Location Map....................................................................................................... 1-1

1-2 Phase II Development Plan.................................................................................. 1-6

1-3 Overall Development Plan................................................................................. 1-15

1-4 FPSO Detail ....................................................................................................... 1-16

1-5 Cascade East Drill Center .................................................................................. 1-17

5-1 Casing Program.................................................................................................... 5-3

5-2 Completion Schematic......................................................................................... 5-5

6-1 Bathymetry Map .................................................................................................. 6-7

14-1 Deep Ocean “Mendocino” ................................................................................. 14-2

14-2 Vantage “Dragon Quest” ................................................................................... 14-3

14-3 Illustration of Subsea Facilities Layout ............................................................. 14-4

14-4 Cascade Drill Center.......................................................................................... 14-5

14-5 Potential Terminals Under Consideration.......................................................... 14-9

15-1 Vicinity Map ...................................................................................................... 15-3

19-1 National Park Lands........................................................................................... 19-8

19-2 Coastal Wetlands ............................................................................................. 19-14

19-3 Protected Areas ................................................................................................ 19-17

19-4 Biological Resources ....................................................................................... 19-19

19-6 Gulfmex No 2 Lightering Areas ...................................................................... 19-53
Acronyms and Abbreviations, continued

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Acronyms and Abbreviations

2-D two dimensional

3-D three dimensional

ABS American Bureau of Shipping

ACAMP Alabama Coastal Area Management Program

ACP Area Contingency Plan

ADCP acoustic doppler current profiler

APD Application to Drill

API American Petroleum Institute

ATB articulated tug barge

BHP BHP Billiton

BLS bow loading system

BNWA Breton National Wilderness Area

BOEM Bureau of Ocean Energy Management

BOEMRE Bureau of Ocean Energy Management, Regulation and Enforcement

BOP blowout preventer

CCA Clean Air Act

CCA Clean Caribbean & Americas

CCTV closed circuit television

CFR Code of Federal Regulations

CGA Clean Gulf Associates

CID Confirmation Information Document

CITES Convention on International Trade in Endangered Species

CMD Coastal Management Division

CMI Coastal Marine Institute

COC Certificate of Compliance

COE Core of Engineers

COI Certificate of Inspection

CPP controllable pitch propeller

CS classification society

CSA Continental Shelf Associates

CVA certified verification agent

CWA Clean Water Act

CZMA Coastal Zone Management Act of 1972
Acronyms and Abbreviations, continued

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DC drilling center

Devon Devon Energy Production Company, L.P.

DGPS digital geographic positioning system

DO dissolved oxygen

DOCD Development Operations Coordination Document

DoD Department of Defense

DP dynamically positioned

DWOP Deepwater Operations Plan

EA environmental assessment

EEZ Exclusive Economic Zone

EFH essential fish habitat

EIA environmental impact analysis

EIS environmental impact statement

EP Exploration Plan

EPA Environmental Protection Agency

ESA Endangered Species Act of 1973

ESP electrical submersible pump

FAA Federal Aviation Administration

FMP Fishery Management Plan

FPSO floating, production, storage and offloading (vessel)

FPU floating production unit

FRU fast response unit

FSHR free standing hybrid riser

FSO floating, storage, and offloading (vessel)

G&G geological and geophysical

GEMS Geoscience Earth and Marine Services, Inc.

GIWW Gulf Intercoastal Waterway

GLPC Greater Lafourche Port Commission

GMFMC Gulf of Mexico Fishery Management Council

GoM Gulf of Mexico

Gulf Gulf of Mexico

GULL gulf lower layer

H2S hydrogen sulfide

HAPC Habitat Area of Particular Concern

HGB Houston-Galveston-Brazoria

HMS highly migratory species

HPU hydraulic power unit

IBT internal bow thruster
Acronyms and Abbreviations, continued

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IC intelligent completion

IMRR Inspection, Maintenance, Repair, and Replace (Plan)

IP individual permit

IPF impact producing factor

ISO International Standards Organization

ITOPF International Tankers Owners Pollution Federation Limited

IWOC Intervention and Workover Control

LCRP Louisiana Coastal Resources Program

LOOP Louisiana Offshore Oil Port

MARPOL International Convention for the Prevention of Pollution from Ships

MMPA Marine Mammal Protection Act of 1972

MMS Minerals Management Service

MODU mobile offshore drilling unit

MSA Metropolitan Statistical Area

MSFCMA Magnuson-Stevens Fishery Conservation and Management Act

MWA Military Warning Areas

NAAQS National Ambient Air Quality Standards

NEP National Estuary Program

NEPA National Environmental Policy Act

NERR National Estuarine Research Reserve

NMFS National Marine Fisheries Service

NOAA National Oceanic and Atmospheric Administration

NORM naturally occurring radioactive materials

NOW nonhazardous oilfield waste

NOx nitrous oxides

NPDES GP National Pollutant Discharge Elimination System General Permit

NTL Notice to Lessees and Operators

NVIC Navigation and Vessel Inspection Circular

NWR National Wildlife Refuge

OBF oil-based (drilling) fluid

OCS Outer Continental Shelf

OESD Offloading Emergency Shutdown

OIM offshore installation manager

OPA 90 Oil Pollution Act of 1990

OSRA Oil Spill Risk Analysis

OSRO Oil Spill Response Organization

OTC Offshore Technology Conference
Acronyms and Abbreviations, continued

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PAH polynuclear aromatic hydrocarbons

PAI Petrobras America Inc.

PCBs polychlorinated biphenyls

PCPT piezo-cone penetrometer tests

Petrobras Petróleo Brasileiro S. A.

PLET pipeline end termination

POM Princeton Ocean Model

ppmv parts per million by volume

PSD Prevention of Significant Deterioration

RCRA Resource Conservation and Recovery Act

RMST Reservoir Management Side Track

ROC retention on cuttings

R-OSRP Regional Oil Spill Response Plan

ROV remotely operated vehicle

ROW right of way

SBF synthetic-based (drilling) fluid

SDS stern loading system

SOLAS Safety of Life at Sea

SOP Suspension of Production

SOPEP Shipboard Oil Pollution Emergency Plan

SOx sulfur oxides

SPM single point mooring

TCMP Texas Coastal Management Program

TCW well treatment, completion, and/or workover fluids

TLP tension leg platform

Total TOTAL Exploration and Production USA, Inc.

TRW topography Rossby waves

TSP total suspended particulates

ULCC ultra large crude carrier

USCG United States Coast Guard

USFWS United States Fish and Wildlife Service

VIV vortex induced vibration

VLCC very large crude carrier

VOC volatile organic compounds

WBF water-based (drilling) fluid

WCD Worst Case Discharge

WR Walker Ridge

WTA water test area
Acronyms and Abbreviations, continued

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1 Introduction and Plan Contents

Introduction

On 12 June 2007, Petrobras America Inc. (PAI) proposed a phased development plan to

develop the Cascade and Chinook Units located in the Walker Ridge lease protraction

area of the Central Gulf of Mexico Outer Continental Shelf (OCS) Planning Area as

shown in Figure 1-1. The office of the Bureau of Ocean Energy Management (BOEM),

formerly the Minerals Management Service (MMS) approved the initial DOCD on 30

April 2008.

Figure 1-1 – Location Map
1 Introduction and Plan Contents

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PAI developed this Supplemental DOCD in alignment with 30 CFR 250.241 et seq. and

associated NTLs per 30 CFR 250.103, including but not limited to:

 NTL 2008 G 04 (Information Requirements for Exploration Plans and

Development Operations Coordination Documents) This NTL supersedes NTL

2006 G 14 and provides additional guidance on information requirements

regarding compliance with the provisions of the Endangered Species Act (ESA)

and the Marine Mammal Protection Act (MMPA), provides guidance on replacing

high-resolution survey lines with 3-D survey data and information for shallow

hazards analyses. It also makes minor technical amendments.

 NTL 2009 G 27 (Submitting Exploration Plans and Development Operations

Coordination Documents) This NTL supersedes NTL 2007 G 11 and clarifies the

policy regarding revising OCS plans when you propose to change approved

anchor patterns or anchor areas, provides guidance for wells planned for

sidetrack, makes minor administrative changes and includes a guidance document

statement.

 NTL 2010 N 06 (Information Requirements for Exploration Plans, Development

and Production Plans and Development Operations Coordination Documents on

the OCS) This NTL rescinds the limitations set forth in NTL 2008 G 04 regarding

a blowout scenario and worst case discharge scenario and provides national

guidance to Lessees and Operators regarding the content of the information

BOEM requires in blowout scenario and worst case discharge scenario

descriptions. See Section 9 for detailed information.

Lease Background

On July 31, 2006, the BOEM approved both the Cascade Unit Agreement and the

Chinook Unit Agreement and assigned Unit Agreement Numbers 754306012 and

754306013 respectively.

The Walker Ridge Block 206 Unit (Cascade) is located approximately 165 miles from the

Louisiana coastline and approximately 285 miles from the Texas coastline in ultra

deepwater (approximately 8,200 feet). Cascade is a 23,000 acre unit consisting of the

following blocks and leases:
1 Introduction and Plan Contents

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 Walker Ridge Block 205, Lease OCS-G 16964

 Walker Ridge Block 206, Lease OCS-G 16965

 Walker Ridge Block 249, Lease OCS-G 16969

 Walker Ridge Block 250, Lease OCS-G 16970

The Walker Ridge Block 425 Unit (Chinook) is located approximately 15 miles south of

Cascade. Chinook is a 23,000 acre unit consisting of the following blocks and leases:

 Walker Ridge Block 425, Lease OCS-G 16987

 Walker Ridge Block 426, Lease OCS-G 16988

 Walker Ridge Block 469, Lease OSC-G 16997

 Walker Ridge Block 470, Lease OCS-G 16998

Information regarding ownership and Operatorship of the Cascade and Chinook Units is

described below.

Cascade Unit :

Petrobras America Inc. (Operator)* 100%

Chinook Unit :

Petrobras America Inc. (Operator) 66.67%

TOTAL Exploration and Production USA, Inc. 33.33%

* Devon Energy Inc. (i.e. Devon) and PAI each had 50% ownership at the time of the

initial DOCD

BOEM approved an initial Suspension of Production (SOP) for the Cascade and Chinook

Units from August 1, 2006 through November 30, 2007. Subsequent to the original SOP,

there have been various extensions / revisions as the work progressed. At present, the

Cascade Unit is held by an SOP through the end of October 2011 as PAI expects to

initiate lease hold operations with the Pride “Deep Ocean Mendocino” to drill and

complete for production, the Cascade East Development Well No. 5, (additional details to

follow in this section). The Chinook Unit is currently held under an SOP through

December 2011 as repairs are facilitated on one of the dual Chinook pipeline risers. The

most current SOP and approved activity schedule is included in Appendix 1.
1 Introduction and Plan Contents

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Field Development Strategy

Based upon experience and the unknowns associated with the tertiary area of the GoM,

PAI has implemented a phased development plan for the Cascade / Chinook

Development Project and this strategy remains consistent with previously submitted

information.

The Conceptual Plan for the Cascade / Chinook Development Project was submitted to

the BOEM on September 25, 2006, and was approved by BOEM on November 29, 2006.

The Deep Water Operations Plan (DWOP) was submitted to BOEM on 15 May 2007

with subsequent revisions provided on 24 March 2009. The approval by BOEM provided

to PAI via letter dated 18 August 2009 is provided in Appendix 1a and authorizes the

utilization of a Floating Production, Storage, and Offloading (FPSO) facility and six other

new technologies proposed. See Section 1(f) for a listing of those new technologies.

The FPSO, B.W. Pioneer is the first FPSO to be utilized in the U.S. GoM. The vessel

arrived on location and attached to the buoy in October 2010. Efforts are ongoing to

complete all final installation and commissioning activities to provide for first oil

production from the Cascade Unit- by end of fourth quarter 2011.

Phase I of the development strategy proposed three wells to be drilled and completed for

production to the FPSO in the initial DOCD. One well would provide production from

the Chinook Unit and two wells would feed production to the FPSO from the Cascade

Unit. Phase II would be supported with supplemental DOCD(s) for additional wells as

needed to properly conserve and produce the resources of the two fields and Phase III

would then follow for additional infrastructure and additional wells if / or as needed.

A supplemental DOCD initiating Phase II was submitted to BOEM under separate cover

on 19 July 2011, proposing three additional wells in the Chinook Unit.

Supplemental DOCD Scope

The scope of this Supplemental DOCD is the continuation of Phase II operations and the

information provided herein is for two additional wells (Cascade East Development

Wells No. 6 and No. 7) to be drilled, completed and produced to the FPSO. Once

completed, two (2) well jumpers, one from each well head to the existing manifold will

be installed. As future phases of the development plan continue to mature, PAI will

submit supplements as appropriate to cover activities and applicable changes.

The topsides and subsea facilities designed and installed to accommodate production

from both units are sufficiently described in the initial DOCD, Conceptual Plan and

DWOP and will not be addressed in detail within this Supplemental DOCD.
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Phase 1 – Executive Summary

As anticipated in the Initial DOCD, PAI temporarily transferred operatorship of aliquot

portions of the Cascade Unit to Devon to drill and complete the Cascade wells. PAI

drilled and completed the initial Chinook well.

Under the Initial DOCD Devon drilled and temporarily abandoned Cascade West

Development Well No. 3 in WR 249 as non-productive.

Devon then drilled Cascade East Development Well No. 4 and completed successfully.

Following BOEM naming nomenclature this well became WR 250, Well CA 003 in

BOEM records. This replacement well was drilled and completed from a surface location

being approximately 2123 feet south and 397 feet east from the surface location proposed

initially since the surface location was provided for in a previously approved exploration

plan (by the original operator, BHP Billiton). PAI submitted a revised plan (R5131)

which has subsequently been approved by BOEM to commence production from WR 250

Well CA 003 under the approved Initial DOCD.

Rig availability and contract timing allowed Devon to initiate the drilling of a

replacement well for the unsuccessful Cascade West Development Well No. 3 (WR 249,

Well No. 1, OCS G 16969). The Cascade East Development Well No. 5 (permitted as

the Walker Ridge 206 No. 004) location is within 100’ of the successful CA003 and

utilizes a surface location cleared under the previously approved Exploration Plan

obtained by BHP Billiton. Devon initiated this well by drilling and setting surface casing

to approximately 12,000 feet and PAI is currently completing the drilling and completion

operations on this well which essentially completes the operations planned for Phase I of

the development plan.

Operatorship of the Cascade unit was transferred back to PAI in July 2010. Additionally,

Devon divested operations in the GoM in 2010 and PAI exercised option of first right of

refusal retaining Devon’s 50% share of ownership. PAI currently maintains 100%

ownership of the Cascade Unit and operates both Cascade and Chinook Units as earlier

referenced.

This Supplemental DOCD is consistent with Phase II of the development plan in that PAI

intends to utilize the proposed Cascade East Development Wells No. 6 and 7 to enhance

to capacity, production from the Cascade east drill center. Any additional wells in the

Cascade Unit will require an additional drill center.
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See Figure 1-2 below for a conceptual representation of the Phase II development plan.

Figure 1-2 – Phase II Development Plan

The produced fluids from all wells in the Cascade and Chinook Units will be transported

to a common FPSO, the B.W. Pioneer, in WR Block 249 through infield flowlines and

four production Free Standing Hybrid Risers (FSHRs). The subsea architecture

(including trees, manifolds, booster pumps, PLETs, umbilicals, flying leads, jumpers,

etc.) is consistent with existing subsea facilities in the GoM with the exception of the

subsea booster pumps which will be used to enhance production when reservoir pressures

decrease over time. To date, all installation of the subsea architecture is complete with the

exception of the subsea booster pumps and the Chinook No.1 riser. PAI does not

anticipate needing the booster pumps for initial production but expects the need for

boosting to occur as early as six to nine months after initial production thus, the pump

bases are installed as part of the initial installation package with the actual pump

cartridges planned to be installed early in 2012.

Produced oil will be separated, treated, measured, and temporarily stored on the FPSO

prior to transportation to market. The usable capacity of the cargo tanks on the FPSO is

approximately 600,000 barrels. The FPSO is connected to a disconnectable mooring

system which will allow it to disconnect and motor away from named storms and
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hurricanes under her own power, returning for re-connection when it is safe to do so.

Oil transportation to market will be achieved through the use of two dedicated Shuttle

Vessels (Tankers) that PAI has under charter. After production ramp-up, it is anticipated

that the FPSO will offload oil to a Shuttle Vessel approximately once a week and the

Shuttle Vessel will transport the product to the terminals of choice along the GoM,

potentially including terminals in Texas, Louisiana and Mississippi.

Gas which is not used to power equipment on the FPSO will be exported to market via a

gas export FSHR and a gas export pipeline, Segment No. 16130, which is tied into an

existing facility (Discovery Pipeline) via subsea-tie-in located in Green Canyon Area,

Block 598.

It is anticipated that FPSO production operations associated with Phase II wells shall

cover 6-8 year duration. Production from these wells is expected to continue in

subsequent phases, although such production is not described in this DOCD.

During the first two phases of production operations, PAI will assess the productivity of

the Cascade and Chinook reservoirs and will further define the development plans for

future phases. As previously mentioned, PAI will supplement the DOCD and other

pertinent regulatory deliverables (e.g. DWOP) as appropriate to cover activities

associated with future development phases when more information becomes available.

The background on the Use of FPSOs in the GoM is covered extensively in the Initial

DOCD and is not the subject of this supplement however; PAI confirms that all

applicable regulations and requirements have been complied with or shall be met prior to

first production

1(a) Plan Information Form (MMS-137) (PROPRIETARY)

See completed Form MMS-137(s) on following pages.
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