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<div class="ocr">sy Dynamic Offshore

February 3, 2011

United States Department of the Interior
Bureau of Ocean Energy, Management,
Regulation and Enforcement

1849 C Street, N. W.

Washington, D.C. 20240

Attn: Director Michael R. Bromwich
Re: Interim Final Safety Rule
Gentlemen:

Dynamic Offshore Resources, LLC is the parent company of a few small privately owned oil and gas
companies operating several fields in the Gulf of Mexico. We are writing this letter to let you know that we
are concerned about the requirements under 30 CFR 250.198(a)(3) for mandatory use of recommended
practices from documents incorporated by reference by replacing the word “should” in these documents
with the word “must”. In some cases this requirement may actually be detrimental to improving safety. For
example, in API RP 65 — Part 2, First Edition May 2010, Section 4.8.2.3 states as follows:

“Before cementing casing or liner, lost-circulation should be eliminated or significantly reduced.
This is best done prior to cementing. If this is not possible, or if losses are anticipated during the
primary cementing job, there are several options. The first is fo maintain the downhole circulating
pressures below the pressure at which losses occur by reducing the density of the cement slurry,
minimizing the height of the cement column and limiting friction pressure during the cementing
operation. Other options are to pump a plugging material as a spacer in front of the cement slurry
and add lost circulation materials fo the cement slurry itself. These techniques are usually used in
combination.”

By replacing the word “should” in this section with “must” precludes the use of sound engineering
judgment that would indicate an alternative for an intermediate casing string, for example, that
experiences lost circulation while circulating and conditioning the drilling fluid prior to cementing. If the lost
circulation zone can be determined or reasonably assumed to be at the previous casing shoe, the
alternative would be not to eliminate or significantly reduce the lost circulation, but instead pump the
cement as designed, to ensure that maximum cement displacement efficiency is achieved below the point
of lost circulation, especially when potential flow zones exist deeper in the well. In this case, the use of
any the options related to reducing cement density, column height, or friction pressure would enhance the
potential for flow after cementing instead of minimizing that potential which is the intent of this document.

There are probably several other examples like this throughout the long list of documents incorporated by
reference which would seriously question whether or not the new requirements serve to improve safety.

The Special Notes section of API RP 65 — Part 2, First Edition, May 2010, states:

“API publications are published to facilitate the broad availability of proven, sound engineering
and operating practices. These publications are not intended to obviate the need for applying
sound engineering judgment regarding when and where these publications should be utilized.
The formulation and publication of API publications is not intended in any way to inhibit anyone
from using any other practices.”

Dynamic Offshore Resources, LLC
1301 McKinney Street, Suite 900 ° Houston, TX 77010 © Tel 713.728.7840 © Fax 713.423.8106
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<div class="ocr">With this purpose, we think it would be prudent to more carefully examine consequences of changing the
intent of these publications by making their use mandatory as opposed to discretionary.

We also understand that AP! RP 65 — Part 2, First Edition, May 2010, has been withdrawn from
circulation as opposed to being revised sine the publication of API Standard 65 - Part 2, Second Edition,
December 2010. We interpret this to mean that this publication which was incorporated by reference
under 30 CFR 250.198 no longer exists and cannot be incorporated by reference.

We recognize that the industry and federal government needs to restore public confidence that we can
safely operate in the Gulf of Mexico as a result of the BP incident. However, the approach the federal
government has taken to date has been more reactive instead of making sure that regulatory changes
can be effective. Very similar to the moratorium, some of the new regulations published in the CFR can
be considered to be “arbitrary and capricious”. We think it would be better for the industry and
government to engage in effective dialogue to determine what regulatory changes are really needed to
restore public confidence.

A short term solution to the apparent problem discussed above could be to require operators to explain or
document their practices and/or plans to ensure safe operations as part of the permitting process specific
to each well. A long term solution could be to review each of the documents incorporated by reference
and determine which portions can be written as effective prescriptive reguiations.

We would appreciate your careful consideration of this letter.

Sincerely,

Dynamic Offshore Resources, LLC

face Mage

Carey aquin
Vice President — Well Operations

Dynamic Offshore Resources, LLC
1301 McKinney Street, Suite $900 « Houston, TX 77010 « Tel 713.728.7840 « Fax 713.423.8106
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