UNITED STATES GOVERNMENT MEMORANDUM

To: Public Information (MS 5030)

Plans Section, Office of Field Operations (MS 5231)

Public Information copy of DOCD

Control # - N-09734

Type - Initial Development Operations Coordinations Document

Lease(s) - OCS-G33109 Block - 127 South Timbalier Area

Operator - Walter Oil & Gas Corporation

Commence Production - Platform 001

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.

Mohammad Ashfaq

Plan Coordinator

G33109/ST/127 6670 FNL, 1205 FWL G33109/ST/127 WELL/001 Botm Lse/Area/Blk Surface Location Surf Lse/Area/Blk Site Type/Name Description - Subject: From: August 20, 2013Walter Oil & Gas Corporation

South Timbalier Block 127 Initial DOCD

Control Number N-9734

Record of Changes

Date Page Remarks

07-18-2013 Cover Page Amend Startup date
Attachment A-1, Well

Information Form Amended Bottom-hole location for Well No.1. (Proprietary Copy) Page B-1 Amended Average Pr oduction Rate (Proprietary) Page H-1 Amended Screening Checklist

Attachment N-1 Vicinity Map, added miles to shorebase

## PUBLIC INFORMATION

July, 2013



## INITIAL DEVELOPMENT OPERATIONS COORDINATION

DOCUMENT

Lease Number: OCS-G 33109

Area/Block: South Timbalier Block 127

Prospect Name: NA

Offshore: Louisiana

Submitted by: Walter Oil & Gas Corporation 1100 Louisiana, Suite 200 Houston, Texas 77002-5299

Judy Archer (713) 659-1222 jarcher@walteroil.com

Estimated Start-up: September 1, 2013

Authorized Representative: No. Copies Being Submitted:
Judy Davidson Proprietary: 1 copy & 1 CD J. Connor Consulting, Inc. Public Info: 1 copy & 1 CD
16225 Park Ten Place, Suite 700 Houston, Texas 77084 For BOEM: (281) 578-3388 Plan No. Judy.Davidson@jccteam.com Assigned to:U.S. Department of the Interior Attachment A-1 OMB Control Number: 1010-0151 Bureau of Ocean Energy Management OMB Approval Expires: 12/31/2011* 

### OCS PLAN INFO RMATION FORM

GENERAL INFORMATION

Type of OCS Plan: Exploration Plan (EP) X Deve lopment Operations Coordination Document (DOCD)
Company Name: Walter Oil & Gas Corporation BOEM Operator Number: 730

Address: 1100 Louisiana, Suite 200
Houston, Texas 77002 Contact Person: Judy Archer

Phone Number: 713-659-1222

Email Address: jarcher@walteroil.com

Lease(s): 33109 Area: ST Block(s): 127 Project Name (If Applicable): NA

Objective(s): Oil Gas Sulphur Salt Onshore Base: Fourchon Distance to Closest Land (Miles): 25.25

Description of Proposed Activities (Mark all that apply)

Exploration drilling Development drilling
Well completion Installation of production platform
Well test flaring (for more than 48 hours) Installation of production facilities
Installation of caisson or platform as well protection structure Installation of satellite structure

Installation of subsea wellheads and/or manifolds Commence production
Installation of lease term pipelines Other (Specify and describe)

Have you submitted or do you plan to submit a Conservation Information Document to accompany this plan? Yes x No

Do you propose to use new or unusual technology to conduct your activities? Yes x No

Do you propose any facility that will serve as a host facility for deepwater subsea development? Yes x No

Do you propose any activities that may disturb an BOEM-designated high-probability archaeological area? Yes x No

Have all of the surface locations of your proposed activities been previously reviewed and approved by BOEM? x Yes No
Tentative Schedule of Proposed Activities

Proposed Activity Start Date End Date No. of Days
Install deck and heliport and braces. 09-01-2013 09-20-2013 20
Install production equipment 09-01-2013 09-20-2013 20
`Install right-of-way pipeline 09-20-2013 10-10-2013 21
Commence production 10-15-2013

Description of Drilling Rig Description of Production Platform

Jackup Drillship Caisson Tension leg platform
Gorilla Jackup Platform rig Well protector Compliant tower

Semisubmersible Submersible Fixed platform Guyed tower

DP Semisubmersible Other (Attach Description) Subsea manifold Floating production system
Drilling Rig Name (If Known): Spar Other (Attach description)
Description of Lease Term Pipelines

From (Facility/Area/Block) To (Facility/Area /Block) Diameter (inches) Length (Feet)

Form BOEM-0137 ( October 2011 - Supersedes all previous editions of form BOEM - 0137, which may not be used.

*Collection has been submitted to OMB and is automatically renewed each month until approval.)Walter Oil & Gas Corporation Page H-1

Initial DOCD July, 2013

South Timbalier Block 127 

### APPENDIX H

AIR EMISSIONS INFORMATION

(A) EMISSIONS WORKSHEETS AND SCREENING QUESTIONS

Screen Procedures for DOCD’s Yes No Is any calculated Complex Total (CT) Emis sion amount (tons) associated with your proposed development activities more than 90% of the amounts calculated using the following formulas: CT = 3400D 2/3 for CO, and CT = 33.3D for the other air pollutants (where D = distance to shore in miles)? x

Do your emission calculations include any emission reduction measures or modified

emission factors? x

Does or will the facility complex associat ed with your proposed development and production activities process production from eight or more wells? x

Do you expect to encounter H 2 S at concentrations greater than 20 parts per million (ppm)? x Do you propose to flare or vent natural gas in excess of the criteria set forth under 250.1105(a)(2) and (3)? x

Do you propose to burn produced hydrocarbon liquids? x Are your proposed development and produc tion activities located within 25 miles (40 kilometers) from shore? x

Are your proposed development and production activities located within 124 miles (200 kilometers) of the Breton Wilderness Area? x

Air Emission Spreadsheets are included as Attachment H-1.

This information was calculated by: Judy Davidson (281) 578-3388 judy.davidson@jccteam.com! ! ! ! ! ! ! !

! !

! !

! ! ! ! ! ! ! !

! ! ! !

! ! ! ! ! !

! ! ! !

! !

South Timbalier Ship Shoal Grand Isle

South Timbalier South South Pelto

Grand Isle South

Ship Shoal South Ewing Bank Bay Marchand Houma

Dulac

Fourchon Galliano

Cocodrie

Grand Isle River Ridge Houma

Terrebonne Lafourche Jefferson 

# Walter Oil & Gas Corporation Vicinity Map

South Timbalier 127

ST 12 7 ~25. 25 M iles to Sho re

~30. 4 M

iles to

Fo

urch

on, L

A Sh

oreb

ase

## PUBLIC INFORMATION

July, 2013



## INITIAL DEVELOPMENT OPERATIONS COORDINATION

DOCUMENT

Lease Number: OCS-G 33109

Area/Block: South Timbalier Block 127

Prospect Name: NA

Offshore: Louisiana

Submitted by: Walter Oil & Gas Corporation 1100 Louisiana, Suite 200 Houston, Texas 77002-5299

Judy Archer (713) 659-1222 jarcher@walteroil.com

Estimated Start-up: August, 2013

Authorized Representative: No. Copies Being Submitted:
Judy Davidson Proprietary: 1 copy & 1 CD J. Connor Consulting, Inc. Public Info: 1 copy & 1 CD
16225 Park Ten Place, Suite 700 Houston, Texas 77084 For BOEM: (281) 578-3388 Plan No. Judy.Davidson@jccteam.com Assigned to:WALTER OIL & GAS CORPORATION

INITIAL

DEVELOPMENT OPERATIONS COORDINATON DOCUMENT

LEASE OCS-G 33109

SOUTH TIMBALIER BLOCK 127

APPENDIX A Plan Contents

APPENDIX B General Information

APPENDIX C Geological, Geophysical Information

APPENDIX D H 2 S Information

APPENDIX E Mineral Resources Conservation Information

APPENDIX F Biological, Physical and Socioeconomic Information

APPENDIX G Wastes and Discharge Information

APPENDIX H Air Emissions Information

APPENDIX I Oil Spills Information

APPENDIX J Environmental Monitoring Information

APPENDIX K Lease Stipulations Information

APPENDIX L Environmental Mitigation Measures Information

APPENDIX M Related Facilities and Op erations Information

APPENDIX N Support Vessels and Aircraft Information

APPENDIX O Onshore Support Facilities Information

APPENDIX P Coastal Zone Management Act (CZMA) Information

APPENDIX Q Environmental Impact Analysis

APPENDIX R Administrative InformationLIST OF ATTACHMENTS

Attachment A-1 OCS Plan Information Form

Attachment A-2 Caisson Schematic

Attachment A-3 Well Location Plat Attachment A-4 Cost Recovery Fee

Attachment H-1 Air Emissions Calculations Attachment I-1 Spill Response Discussion Attachment N-1 Vicinity Map

Attachment P-1 Louisiana CZM CertificationWalter Oil & Gas Corporation Page A-1

Initial DOCD July, 2013

South Timbalier Block 127 

### APPENDIX A

PLAN CONTENTS

(A) PLAN INFORMATION FORM An Initial Exploration Plan (Control Number N- 09618) to drill and complete Well Location A in South Timbalier Block 127 was submitted by Wa lter Oil & Gas Corporation (Walter) and approved on February 1, 2012. In addition to dr illing and completion of the well, Walter also proposed to install a well protector. To date , Well Location A has been drilled and completed,

and renamed South Timbalier Block 127 Well 001ST00BP00. The well protector was also

installed.

Under this Initial DOCD, Walter proposes to inst all a deck and heliport with a lift boat on the existing well protector, install a right-of-way pipeline from Well 001ST00BP00 to the Discovery Pipeline system in South Timbalier 124 and commence production.

Please see attached OCS Plan Informa tion Form – Form BOEM-137, included as Attachment A1 . Included as Attachment A-2 are schematics of the proposed braced caisson and helideck.

(B) LOCATION

Included as Attachment A-3 is a location map depicting the surface and bottomhole location of

Well 001ST00BP00.

(C) SAFETY AND POLLUTI ON PREVENTION FEATURES Safety of personnel and protection of the enviro nment during the proposed operations is one of the primary concerns of Walter. Walter mandates regulatory compliance with the contractors and vendors associated with the proposed operations as follows:

The Bureau of Ocean Energy Management (BOEM) mandates that the operations described in this DOCD comply with well control, pollution prevention, constructio n, welding procedures, and training described in BSEE regulations 30 CFR 250 C, D, E, O a nd S; and as further clarified by BSEE Notices to Lessees.

The Bureau of Safety and Environmental Enfor cement (BSEE) conducts periodic announced and unannounced onsite inspections of offshore facilitie s to confirm operators are complying with lease stipulations, operating regulatory regulations, approved plans, and other conditions; as well as to assure safety and pollution prevention requirements are being met. The National Potential Incident of Noncompliance (PINC) List se rves as the baseline for these inspections.

U.S. Coast Guard regulations contained in Titl e 33 CFR Part 144 mandate the appropriate life rafts, life jackets, ring buoys, etc. be maintained on the facilities at all times.

U.S. Environmental Protection Agency regulati ons contained in the NPDES General Permit GMG290000 mandate that supervisory and certain designated personnel on-boa rd the facility be familiar with the effluent limitations and guidelines for overboard discharges into the receiving

waters.Walter Oil & Gas Corporation Page A-2

Initial DOCD July, 2013

South Timbalier Block 127 Safety features on the platform will include , pollution prevention as described in BSEE regulations 30 CFR 250 C, D, E, O and S; and as further clarifie d by BSEE Notices to Lessees, and current policy making invoked by the BSEE, Environmental Prot ection Agency and the U.S. Coast Guard. Appropriate life rafts, life jacket s, ring buoys, etc., will be maintained on the facility at all times.

Pollution prevention measures include installation of curbs, gutters, drip pans, and drains on drilling deck areas to collect all contaminants and debris.

(D) STORAGE TANKS AND PRODUCTION VESSELS There are no facility tanks with a capacity of 25 barre ls or more on the caisson.

(E) POLLUTION PREVENTION MEASURES (FLORIDA ONLY) Pollution prevention measures are not required to be submitted with this plan.

(F) ADDITIONAL MEASURES Walter does not propose additional sa fety, pollution prevention, or early spill detection measures beyond those required by 30 CFR Part 250.

(G) COST RECOVERY FEE

Included as Attachment A-4 is a pay.gov receipt in the amount of $4,238.00 to cover operations proposed in this plan.U.S. Department of the Interior Attachment A-1 OMB Control Number: 1010-0151 Bureau of Ocean Energy Management OMB Approval Expires: 12/31/2011* 

### OCS PLAN INFO RMATION FORM

Form BOEM-0137 ( October 2011 - Supersedes all previous editions of form BOEM - 0137, which may not be used.

*Collection has been submitted to OMB and is automatically renewed each month until approval.) GENERAL INFORMATION

Type of OCS Plan: Exploration Plan (EP) X Deve lopment Operations Coordination Document (DOCD)
Company Name: Walter Oil & Gas Corporation BOEM Operator Number: 730

Address: 1100 Louisiana, Suite 200
Houston, Texas 77002 Contact Person: Judy Archer

Phone Number: 713-659-1222

Email Address: jarcher@walteroil.com

Lease(s): 33109 Area: ST Block(s): 127 Project Name (If Applicable): NA

Objective(s): Oil Gas Sulphur Salt Onshore Base: Fourchon Distance to Closest Land (Miles): 25.25

Description of Proposed Activities (Mark all that apply)

Exploration drilling Development drilling
Well completion Installation of production platform
Well test flaring (for more than 48 hours) Installation of production facilities
Installation of caisson or platform as well protection structure Installation of satellite structure

Installation of subsea wellheads and/or manifolds Commence production
Installation of lease term pipelines Other (Specify and describe)

Have you submitted or do you plan to submit a Conservation Information Document to accompany this plan? Yes x No

Do you propose to use new or unusual technology to conduct your activities? Yes x No

Do you propose any facility that will serve as a host facility for deepwater subsea development? Yes x No

Do you propose any activities that may disturb an BOEM-designated high-probability archaeological area? Yes x No

Have all of the surface locations of your proposed activities been previously reviewed and approved by BOEM? x Yes No
Tentative Schedule of Proposed Activities

Proposed Activity Start Date End Date No. of Days
Install deck and heliport and braces. 08-01-2013 08-20-2013 20
Install production equipment 08-01-2013 08-20-2013 20
`Install right-of-way pipeline 08-20-2013 09-10-2013 21
Commence production 09-15-2013

Description of Drilling Rig Description of Production Platform

Jackup Drillship Caisson Tension leg platform
Gorilla Jackup Platform rig Well protector Compliant tower

Semisubmersible Submersible Fixed platform Guyed tower

DP Semisubmersible Other (Attach Description) Subsea manifold Floating production system
Drilling Rig Name (If Known): Spar Other (Attach description)
Description of Lease Term Pipelines

From (Facility/Area/Block) To (Facility/Area /Block) Diameter (inches) Length (Feet)Form BOEM-0137 ( October 2011 - Supersedes all previous editions of form BOEM - 0137, which may not be used.) Proposed Well/Structure Location

Well or Structure Name/Number (If renaming well or structure, reference previous name): Caisson 1 Subsea Completion

Anchor Radius (if applicable) in feet: NA Yes No

Surface Location Bottom-Hole Location (For Wells)

Lease No. OCS-G 33109 OCS

Area Name South Timbalier

Block No. 127

Blockline Departures (in feet) N/S Departure: 6669.89 FNL N/S Departure:

E/W Departure: 1205.13 FWL E/W Departure:

Lambert X-Y

coordinates X: 2,321,059.27' X:

Y: 9,595.79' Y:

Latitude/ Longitude Latitude: 28 0 41' 21.105N Latitude:

Longitude: 90 0 19' 55.900W Longitude:

TVD (Feet): MD (Feet): Water Depth (Feet): 84'

Anchor Locations for Drilling Rig or Construction Barg e (If anchor radius supp lied above, not necessary)

Anchor Name

or No. Area Block X Coordinate Y Coordinate Length of Anchor

Chain on Seafloor

X = Y =

X = Y =

X = Y =

X = Y =

X = Y =

X = Y =

X = Y =

X = Y =

Paperwork Reduction Ac t of 1995 Statement: The Paperwork Reduction Act of 1995 (44 U.S.C. Chapter 35) requires us to inform you that BOEM collects this information as part of an applicant’s Exploration Plan or Development Operations Coordination Document submitted for BOEM approval. We use the information to facilitate our review and data entry for OCS plans. We will protect proprietary data according to the Freedom of Information Act and 30 CFR 550.197. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently vali d Office of Management and Budget Control Number. The use of this form is voluntary. The public reporting burden for this form is included in the burden for preparing Exploration Plans a nd Development Operations Coordination Documents. We estimate that burden to average 600 hours per response, or 640 with an accompanying EP (1,000 hours in AKOCSR), or 690 (1,700 in AKOCSR) with an accompanying DPP or DOCD including the time for reviewing instructions, ga thering and maintaining data, and completing and reviewing the forms associated with subpart B. Direct comments regarding the burden estimate or any other aspect of this form to the Information Collection Clearance O fficer, Bureau of Ocean Energy Management, 381 Elden Street, Herndon, VA 20170.Form BOEM-0137 ( October 2011 - Supersedes all previous editions of form BOEM - 0137, which may not be used.) Well or Structure Name/Number (If renaming well or structure, reference previous name): Well 001 Subsea Completion

Anchor Radius (if applicable) in feet: NA Yes No

Surface Location Bottom-Hole Location (For Wells)

Lease No. OCS-G 33109

Area Name South Timbalier

Block No. 127

Blockline Departures (in feet) N/S Departure: 6669.89 FNL

E/W Departure: 1205.13 FWL

Lambert X-Y

coordinates X: 2,321,059.27'

Y: 9,595.79'

Latitude/ Longitude Latitude: 28 0 41' 21.105N

Longitude: 90 0 19' 55.900W

TVD (Feet): MD (Feet): Water Depth (Feet): 84'

Anchor Locations for Drilling Rig or Construction Barg e (If anchor radius supp lied above, not necessary)

Anchor Name

or No. Area Block X Coordinate Y Coordinate Length of Anchor

Chain on Seafloor

X = Y =

X = Y =

X = Y =

X = Y =

X = Y =

X = Y =

X = Y =

X = Y =

Paperwork Reduction Ac t of 1995 Statement: The Paperwork Reduction Act of 1995 (44 U.S.C. Chapter 35) requires us to inform you that BOEM collects this information as part of an applicant’s Exploration Plan or Development Operations Coordination Document submitted for BOEM approval. We use the information to facilitate our review and data entry for OCS plans. We will protect proprietary data according to the Freedom of Information Act and 30 CFR 550.197. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently vali d Office of Management and Budget Control Number. The use of this form is voluntary. The public reporting burden for this form is included in the burden for preparing Exploration Plans a nd Development Operations Coordination Documents. We estimate that burden to average 600 hours per response, or 640 with an accompanying EP (1,000 hours in AKOCSR), or 690 (1,700 in AKOCSR) with an accompanying DPP or DOCD including the time for reviewing instructions, ga thering and maintaining data, and completing and reviewing the forms associated with subpart B. Direct comments regarding the burden estimate or any other aspect of this form to the Information Collection Clearance O fficer, Bureau of Ocean Energy Management, 381 Elden Street, Herndon, VA 20170.Walter Oil & Gas Corporation Page B

- 1

Initial DOCD July, 2013

South Timbalier Block 127 

### APPENDIX B

GENERAL INFORMATION

(A) APPLICATIONS AND PERMITS Following is a table of the additional applications /permits which will require approval prior to conducting the operations as proposed in this plan.

Application/Permit Issuing Agency Status Structure Application BSEE To be submitted Surface Commingling Application BSEE To be submitted ROW Pipeline Application BSEE To be submitted

(B) DRILLING FLUIDS Well 001ST00BP00 has been drilled and completed. There will be no drilling fluids associated with this plan.

(C) PRODUCTION Anticipated Production:

Type Average Production Rate Peak Production Rate Life of Reservoir

Oil

Gas

(D) OIL CHARACTERISTICS

Characteristics Analytical Methodologie s Should Be Compatible

With:
1) Gravity (API) ASTM D4052 2) Flash Point (°C) ASTM D93/IP34 3) Pour Point (°C) ASTM D97 4) Viscosity (Centipoise @ 25° C) ASTM D445

5) Wax Content (wt %) Precipitate with 2-butanon/dichloromethane (1 to 1 volume) at -10° C 6) Asphaltene Content (wt %) IP Method 143/84 7) Resin Content (wt %) Jokuty et al. (1996) 8) Boiling point distribution including for each fraction, the percent volume or weight and the boiling point range in °C ASTM D2892 (TBP DISTILLATION), or

ASTM D2887/5307

9) Sulphur (wt %) ASTM D4294Walter Oil & Gas Corporation Page B

- 2

Initial DOCD July, 2013

South Timbalier Block 127 (E) NEW OR UNUSUAL TECHNOLOGY Walter does not propose to use any new or unusual technology to ca rry out the proposed development activities.

(F) BONDING STATEMENT The bond requirements for the activities and facili ties proposed in this DOCD are satisfied by $3,000,000.00 areawide development bond, furnished and maintained according to 30 CFR 556 Subpart I; NTL No. 2000-G16, "Guidelines for General Lease Surety Bonds”.

(G) OIL SPILL FINANCIAL RESPONSIBILITY (OSFR) Walter Oil & Gas Corporation, BOEM Comp any number 0730 has demonstrated or will demonstrate oil spill financial responsibility fo r the facilities proposed in this DOCD according to 30 CFR Part 553; and NTL N o. 2008-N05, "Guidelines for Oil Sp ill Financial Responsibility

for Covered Facilities".

(H) DEEPWATER WELL CONTROL STATEMENT South Timbalier Block 127 is not in deepwater, therefore, this information is not provided.

(I) SUSPENSION OF PRODUCTION Walter does not anticipate requesting a Su spension of Production for this lease.

(J) BLOWOUT SCENARIO

A blowout scenario is not included in th is plan as no drilling will take place.Walter Oil & Gas Corporation Page C

- 1

Initial DOCD July, 2013

South Timbalier Block 127 

### APPENDIX C

GEOLOGICAL AND GEOPHYSICAL INFORMATION

(A) GEOLOGICAL DESCRIPTION A geological description was submitted and approved in Plan Control Number N-9618.

(B) STRUCTURE CONTOUR MAPS Structure contour maps were submitted and approved in Plan Control Number N-9618.

(C) INTERPRETED 2-D AND/OR 3-D SEISMIC LINE(S) Interpreted 3-D seismic lines were su bmitted with Plan Control Number N-9618.

(D) GEOLOGICAL STRUCTURE CROSS-SECTIONS

Cross sections were submitted and a pproved in Plan Control Number N-9618.

(E) SHALLOW HAZARDS REPORT A shallow hazards survey was conducted over South Timbalier Block 127 and approved by

BOEM in Plan Control Number N-9618

(F) SHALLOW HAZARDS ASSESSMENT Well 001 is an existing surface location. A Shallow Hazards Assessment was submitted and approved in Plan C ontrol Number N-9618.

(G) HIGH-RESOLUTION SEISMIC LINES High resolution survey lines were included in Plan Control No. N-9618.

(H) STRATIGRAPHIC COLUMN A generalized biostratigraphic/lit hostratigraphic column depicting each well from the seafloor to the total depth is not required for th e operations provided for in this DOCD.

(I) TIME VS DEPTH TABLES Time versus depth tables are not requir ed to be submitted with this plan.Walter Oil & Gas Corporation Page D-1

Initial DOCD July, 2013

South Timbalier Block 127 

### APPENDIX D

HYDROGEN SULFID E INFORMATION

(A) CONCENTRATION Walter does not anticipate encountering any H 2 S during the proposed operations.

(B) CLASSIFICATION

BOEM classified South Timbalier Block 127 as "H 2 S absent" with the February 1, 2012 approval of the Initial Explora tion Plan (Control Number N-09618.)Walter Oil & Gas Corporation Page E-1

Initial DOCD July, 2013

South Timbalier Block 127 

### APPENDIX E

MINERAL RESOURCE CONS ERVATION INFORMATION

(A) TECHNOLOGY & RESERVOIR ENGI NEERING PRACTICES AND PROCEDURES Proprietary Information

(B) TECHNOLOGY AND RECOVERY PRACTICES AND PROCEDURES Proprietary Information

(C) RESERVOIR DEVELOPMENT Proprietary InformationWalter Oil & Gas Corporation Page F-1

Initial DOCD July, 2013

South Timbalier Block 127 APPENDIX F BIOLOGICAL, PHYSICAL AND SO CIOECONOMIC INFORMATION

(A) DEEPWATER BENTHIC COMMUNITIES Activities proposed in this DOCD will not disturb s eafloor areas in water depths greater than 300 meters (984 feet); therefore, information as outlined in A ttachment A of NTL No. 2009-G40, "Deepwater Benthic Communities" is not required.

(B) TOPOGRAPHIC FEATURES MAP Activities proposed in this DOCD do not fall with in 305 meters (1000 feet) of a topographic “no activity zone”.

(C) TOPOGRAPHIC FEATURES STATEMENT (SHUNTING) All activities proposed under th is DOCD will be conducted outsi de all Topographic Feature Protective Zones; therefore, shunting of drill cuttings and drilling fluids is not required

(D) LIVE BOTTOMS (PINNACLE TREND) MAP

South Timbalier Block 127 is not located within 61 meters (200 feet) of any pinnacle trend feature; therefore, a separate ba thymetric map is not required.

(E) LIVE BOTTOMS (LOW RELIEF) STIPULATION

South Timbalier Block 127 is not located within 100 feet of any pinnacle trend feature with vertical relief equal to or greater than 8 feet; therefore, live bottom (low relief) maps are not required.

(F) POTENTIALLY SENSITIV E BIOLOGICAL FEATURES

South Timbalier Block 127 is not located within 30 meters (100 feet) of potenti ally sensitive biological features; therefor e, biologically sensitive area maps are not required.

(G) REMOTELY OPERATED VEHICLE (ROV) SURVEYS ROV surveys are not required for South Timbalier Block 127.

(H) THREATENED AND ENDANGERED SP ECIES, CRITICAL HABITAT, AND

MARINE MAMMAL INFORMATION Under Section 7 of the Endangered Species Act (ESA) all federal ag encies must ensure that any actions they authorize, fund, or carry out are not li kely to jeopardize the continued existence of a listed species, or destroy or adversely modify its designated critical habitat.

In accordance with the 30 CFR 550, Subpart B, a nd further outlined in No tice to Lessees (NTL) 2012-JOINT-G01, lessees/operators are required to address site -specific information on the presence of federally listed threatened or e ndangered species and cri tical habitat designated under the ESA and marine mammals protected under the Marine Ma mmal Protection Act (MMPA) in the area of proposes activities under this plan.Walter Oil & Gas Corporation Page F-2

Initial DOCD July, 2013

South Timbalier Block 127 There are five species of sea turtles that may be found in the Gulf of Mexico (see table below). NOAA fisheries currently lists all five of these turtles as endangered (E) or threatened (T).

Species Scientific Name Status Potential Presence

Critical Habitat Designated

in the Gulf of Mexico Lease Area Coastal

Sea Turtles Loggerhead Turtle CarettsaCaretta T X X None

Green Turtle Cheloniamydas T,E X X None

Leatherback Turtle Dermochelyscorlacea E X X None

Hawksbill Turtle Eretmochelysimbricata E X X None Kemp’s Ridley Turtle Lepidochelyskempli E X X None

In addition, there are 28 species of marine mammals that may be found in the Gu lf of Mexico. The table provided below identifie s the seven (7) species of mari ne mammals that are listed as endangered or threatened. Curre ntly, there are no designated crit ical habitats for the listed species in the Gulf of Mexico Outer Continental Shelf; however, it is pos sible that one or more of these species could be seen in the area during operations.

Species Scientific Name Status Potential Presence

Critical Habitat Designated in the Gulf

of Mexico Lease

Area Coastal

Marine Mammals Sperm Whale Physetermacrocephalus E X

-- None

Florida Manatee Trichechusmanatuslatirostris E

-- X Florida (Peninsular)

Blue Whale Balaenopteramasculus E X

-- None

Fin Whale Balaenopteraphysalus E X

-- None Humpback Whale Megapteranovaeangliae E X

-- None North Atlantic Right Whale Eubalaenaglacialis E X

-- None

Sei Whale Balaenopiera borealis E X

-- None

There is one species of fish that NOAA fisheries currently lists as threat ened (T) that may be found in the Gulf of Mexico. The Gulf sturgeon, also known as the Gulf of Mexico sturgeon, is an anadromous (breeding in fres hwater after migrating up rive rs from marine and estuarine environments) fish overwintering in estuaries, bays, and in the Gulf of Mexi co (see table below). Species Scientific

Name Status Potential Presence Critical

Habitat Designated

in the Gulf of

Mexico Lease Area Coastal

Gulf sturgeon Acipenser oxyrinchus (=oxyrhynchus)

desotoi T X X NoneWalter Oil & Gas Corporation Page F-3

Initial DOCD July, 2013

South Timbalier Block 127 (I) ARCHAEOLOGICAL REPORT An archaeological report was submitted in conjunction with Plan Control Number N-9618.

(J) AIR AND WATER QUALITY INFORMATION Air and water quality informati on is not required by BOEM to be included in this plan.Walter Oil & Gas Corporation Page G-1

Initial DOCD July, 2013

South Timbalier Block 127 

### APPENDIX G

WASTES AND DISCHA RGES INFORMATION

(A) PROJECTED GENERATED WASTES No wastes will be generated in order to place the South Timbalier Block 127 Well 001ST00BP00 on production.Walter Oil & Gas Corporation Page H-1

Initial DOCD July, 2013

South Timbalier Block 127 

### APPENDIX H

AIR EMISSIONS INFORMATION

(A) EMISSIONS WORKSHEETS AND SCREENING QUESTIONS

Screen Procedures for DOCD’s Yes No Is any calculated Complex Total (CT) Emis sion amount (tons) associated with your proposed development activities more than 90% of the amounts calculated using the following formulas: CT = 3400D 2/3 for CO, and CT = 33.3D for the other air pollutants (where D = distance to shore in miles)? x

Do your emission calculations include any emission reduction measures or modified

emission factors? x

Does or will the facility complex associat ed with your proposed development and production activities process production from eight or more wells? x

Do you expect to encounter H 2 S at concentrations greater than 20 parts per million (ppm)? x Do you propose to flare or vent natural gas in excess of the criteria set forth under 250.1105(a)(2) and (3)? x

Do you propose to burn produced hydrocarbon liquids? x Are your proposed development and produc tion activities located within 25 miles (40 kilometers) from shore? x

Are your proposed development and production activities located within 124 miles (200 kilometers) of the Breton Wilderness Area? x

Air Emission Spreadsheets are included as Attachment H-1.

This information was calculated by: Judy Davidson (281) 578-3388 judy.davidson@jccteam.comDOCD AIR QUALITY SCREENING CHECKLISTOMB Control No. 1010-0151OMB Approval Expires: 12/31/14COMPANYWalter Oil & GasAREASouth TimbalierBLOCK127LEASE33109PLATFORMCaisson 1WELLWell 1COMPANY CONTACTJudy ArcherTELEPHONE NO.713-659-1221REMARKSCommence ProductionLEASE TERM PIPELINE CONSTRUCTION INFORMATION:YEAR NUMBER OFTOTAL NUMBER OF CONSTRUCTION DAYSPIPELINES20132014201520162017201820192020202120222023FORM BOEM-0139(December 2011- Supersedes all previous versions of this form which may not be used).Page 1 of 8AIR EMISSIONS CUMPUTATION FACTORSFuel Usage Conversion FactorsNatural Gas Turbines Natural Gas Engines Diesel Recip. Engine REF. DATESCF/hp-hr 9.524 SCF/hp-hr 7.143 GAL/hp-hr 0.0483AP42 3.2-1 4/76 & 8/84Equipment/Emission Factorsunits PM SOx NOx VOC CO REF. DATENG Turbines gms/hp-hr 0.00247 1.3 0.01 0.83AP42 3.2-1& 3.1-1 10/96NG 2-cycle leangms/hp-hr 0.00185 10.9 0.43 1.5AP42 3.2-1 10/96NG 4-cycle leangms/hp-hr 0.00185 11.8 0.72 1.6AP42 3.2-1 10/96NG 4-cycle richgms/hp-hr0.00185 10 0.14 8.6AP42 3.2-1 10/96Diesel Recip. < 600 hp. gms/hp-hr 1 1.468 14 1.12 3.03AP42 3.3-1 10/96Diesel Recip. > 600 hp.gms/hp-hr 0.32 1.468 11 0.33 2.4AP42 3.4-1 10/96Diesel Boilerlbs/bbl 0.084 2.42 0.84 0.008 0.21AP42 1.3-12,14 9/98NG Heaters/Boilers/Burners lbs/mmscf 7.6 0.593 100 5.5 84P42 1.4-1, 14-2, & 14 7/98NG Flareslbs/mmscf0.593 71.4 60.3 388.5AP42 11.5-1 9/91Liquid Flaringlbs/bbl 0.42 6.83 2 0.01 0.21AP42 1.3-1 & 1.3-3 9/98Tank Vaporslbs/bbl0.03E&P Forum 1/93Fugitiveslbs/hr/comp.0.0005API Study 12/93Glycol Dehydrator Ventlbs/mmscf6.6La. DEQ1991Gas Ventinglbs/scf0.0034Sulphur Content Source Value UnitsFuel Gas3.33 ppmDiesel Fuel0.4 % weightProduced Gas( Flares) 3.33 ppmProduced Oil (Liquid Flaring) 1 % weightFORM BOEM-0139(December 2011 - Supersedes all previous versions of this form which may not be used).Page 2 of 8AIR EMISSIONS CALCULATIONS - FIRST YEARCOMPANYAREABLOCK LEASE PLATFORM WELLCONTACTPHONE REMARKSWalter Oil & Gas South Timbalier127 33109Caisson 1 Well 1Judy Archer713-659-1221 #REF!OPERATIONSEQUIPMENTRATING MAX. FUEL ACT. FUEL RUN TIMEMAXIMUM POUNDS PER HOURESTIMATED TONSDiesel EnginesHP GAL/HR GAL/DNat. Gas EnginesHP SCF/HR SCF/DBurnersMMBTU/HR SCF/HR SCF/D HR/D DAYS PM SOx NOx VOC CO PM SOx NOx VOC CODRILLING PRIME MOVER>600hp diesel00 0.00 0 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00PRIME MOVER>600hp diesel00 0.00 0 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00PRIME MOVER>600hp diesel00 0.00 0 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00PRIME MOVER>600hp diesel00 0.00 0 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00BURNER diesel00 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00AUXILIARY EQUIP<600hp diesel 00 0.00 0 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00VESSELS>600hp diesel(crew) 00 0.00 0 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00VESSELS>600hp diesel(supply) 00 0.00 0 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00VESSELS>600hp diesel(tugs)00 0.00 0 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00PIPELINE PIPELINE LAY BARGE diesel00 0.00 0 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00INSTALLATION SUPPORT VESSEL diesel00 0.00 0 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00PIPELINE BURY BARGE diesel 00 0.00 0 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00SUPPORT VESSEL diesel00 0.00 0 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00VESSELS>600hp diesel(crew) 00 0.00 0 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00VESSELS>600hp diesel(supply) 00 0.00 0 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00FACILITY DERRICK BARGE diesel00 0.00 0 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00INSTALLATION MATERIAL TUG diesel00 0.00 0 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Lift BoatVESSELS>600hp diesel1000 48.3 1159.20 24 20 0.70 3.23 24.23 0.73 5.29 0.17 0.78 5.81 0.17 1.27VESSELS>600hp diesel(supply) 2500 120.75 2898.00 12 20 1.76 8.08 60.57 1.82 13.22 0.21 0.97 7.27 0.22 1.59PRODUCTION RECIP.<600hp diesel100 4.83 115.92 3 18 0.22 0.32 3.08 0.25 0.67 0.01 0.01 0.08 0.01 0.02Crane 5/month RECIP.>600hp diesel00 0.00 0 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00SUPPORT VESSEL diesel00 0.00 0 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00TURBINE nat gas00 0.00 0 00.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00RECIP.2 cycle lean nat gas00 0.00 0 00.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00RECIP.4 cycle lean nat gas00 0.00 0 00.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00RECIP.4 cycle rich nat gas00 0.00 0 00.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00BURNER nat gas0 0.00 0.00 0 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00MISC.BPD SCF/HR COUNTTANK-00 00.000.00FLARE-00 00.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00PROCESSVENT-00 00.000.00FUGITIVES-0.000.000.00GLYCOL STILL VENT-00 00.000.00DRILLING OIL BURN00 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00WELL TEST GAS FLARE00 00.00 0.00 0.00 0.00 0.00 0.00 0.00 0.002013 YEAR TOTAL2.69 11.64 87.89 2.79 19.17 0.39 1.75 13.17 0.40 2.87EXEMPTIONCALCULATIONDISTANCE FROM LAND INMILES840.83 840.83 840.83 840.83 29263.0725.3FORM BOEM-0139(December 2011 - Supersedes all previous versions of this form which may not be used).Page 3 of 8AIR EMISSIONS CALCULATIONS - SECOND YEARCOMPANYAREABLOCK LEASE PLATFORM WELLCONTACTPHONE REMARKSWalter Oil & Gas South Timbalier127 33109Caisson 1 Well 1Judy Archer713-659-1221 #REF!OPERATIONSEQUIPMENTRATING MAX. FUEL ACT. FUEL RUN TIMEMAXIMUM POUNDS PER HOURESTIMATED TONSDiesel EnginesHP GAL/HR GAL/DNat. Gas EnginesHP SCF/HR SCF/DBurnersMMBTU/HR SCF/HR SCF/D HR/D DAYS PM SOx NOx VOC CO PM SOx NOx VOC CODRILLING PRIME MOVER>600hp diesel 00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00PRIME MOVER>600hp diesel 00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00PRIME MOVER>600hp diesel 00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00PRIME MOVER>600hp diesel 00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00BURNER diesel000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00AUXILIARY EQUIP<600hp diesel 00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00VESSELS>600hp diesel(crew) 00 0.000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00VESSELS>600hp diesel(supply) 00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00VESSELS>600hp diesel(tugs) 00 0.000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00PIPELINE PIPELINE LAY BARGE diesel 00 0.00 00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00INSTALLATION SUPPORT VESSEL diesel00 0.00 00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00PIPELINE BURY BARGE diesel 00 0.00 00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00SUPPORT VESSEL diesel00 0.00 00 0.00 0.000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00VESSELS>600hp diesel(crew) 00 0.000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00VESSELS>600hp diesel(supply) 00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00FACILITY DERRICK BARGE diesel00 0.00 00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00INSTALLATION MATERIAL TUG diesel00 0.00 00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00VESSELS>600hp diesel(crew) 00 0.000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00VESSELS>600hp diesel(supply) 00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00PRODUCTION RECIP.<600hp diesel100 4.83 115.92 3 36 0.22 0.32 3.08 0.25 0.67 0.01 0.02 0.17 0.01 0.04Crane 5/month RECIP.>600hp diesel00 0.00 00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00SUPPORT VESSEL diesel00 0.00 00 0.00 0.000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00TURBINE nat gas00 0.00 000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00RECIP.2 cycle lean nat gas00 0.00 000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00RECIP.4 cycle lean nat gas00 0.00 000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00RECIP.4 cycle rich nat gas00 0.00 000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00BURNER nat gas0 0.00 0.00 00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00MISC.BPD SCF/HR COUNTTANK-0000.000.00FLARE-0000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00PROCESSVENT-0000.000.00FUGITIVES-0.000.000.00GLYCOL STILL VENT-0000.000.00DRILLING OIL BURN000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00WELL TEST GAS FLARE0000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.002014 YEAR TOTAL0.22 0.32 3.08 0.25 0.67 0.01 0.02 0.17 0.01 0.04EXEMPTIONCALCULATIONDISTANCE FROM LAND INMILES840.83 840.83 840.83 840.83 29263.0725.3FORM BOEM-0139(December 2011 - Supersedes all previous versions of this form which may not be used).Page 4 of 8AIR EMISSIONS CALCULATIONSCOMPANY AREABLOCKLEASEPLATFORM WELLWalter Oil & GasSouth Timbalier 12733109Caisson 1Well 1EmittedSubstanceYearPMSOxNOxVOCCO20130.391.7513.170.402.872014-2018 0.010.020.170.010.04Allowable840.83840.83840.83840.83 29263.07FORM BOEM-0139(December 2011 - Supersedes all previous versions of this form which may not be used).Page 8 of 8Walter Oil & Gas Corporation Page I-1

Initial DOCD July, 2013

South Timbalier Block 127 

### APPENDIX I

OIL SPILLS INFORMATION

(A) OIL SPILL RESPONSE PLANNING All the proposed activities and facilities in the DOCD will be cove red by Walter Oil & Gas Corporation's (BOEM Operator No.0730) last approved Oil Spill Response Plan (OSRP) approved July, 2011 and modification to that plan approved April 19, 2013.

(B) SPILL RESPONSE SITES

Primary Response Equipment Loca tion Preplanned Staging Location
Houma, LA. Houma, LA
Leeville, LA. Leeville, LA
Venice, LA Venice, LA

(C) OSRO INFORMATION Walter’s primary equipment provider is Clean Gu lf Associates (CGA), and CGA will provide the closest available personnel, as well as a supervisor to operate the equipment.

(D) WORST-CASE DISCHARGE SCENARIO DETERMINATION

Category Production

Regional

OSRP
WCD DOCD
WCD

Type of Activity Production Production

Facility Location (Area/Block) WD 107 ST 127

Facility Designation A-7 001

Distance to Nearest Shoreline (miles) 20 25.25

Volume Storage tanks & flowlines 850 10

Lease term pipelines 0 0

Uncontrolled blowout 26,029 200 Total Volume (bbls) 26,879 210
Type of Oil(s) (crude, condensate, diesel) Condensate Condensate

API Gravity 45 0 44,5 0Walter Oil & Gas Corporation Page I-2

Initial DOCD July, 2013

South Timbalier Block 127 Walter has determined that the worst-case scenario from the activities proposed in this DOCD do not supersede the worst-case scenario from our approved regional OSRP.

Since Walter has the capability to respond to the worst-case spill scen ario included in our regional OSRP, and since the worst-case scenario determined for this DOCD does not replace the worst-case scenario in our regional OSRP, Walter hereby certifies that Walter has the capability to respond, to the maximum extent pr acticable, to a worst-case discharge, or a

substantial threat of such a discharge, resulting from the activities proposed in our DOCD.

(E) OIL SPILL RESPONSE DISCUSSION

Included as Attachment I-1 is Walter's Spill Response Discussion.ATTACHMENT I-1

SPILL RESPONSE DISCUSSION

For the purpose of NEPA and Coastal Zone Mana gement Act analysis, the largest spill volume originating from the proposed activity would be a well bl owout during production operations,

estimated to be 210 barrels of conde nsate with an API gravity of 44.5°.

Land Segment and Resource Identification

Trajectories of a spill and the probability of it impacting a land segment have been projected utilizing information in the BS EE Oil Spill Risk Analysis Model (OSRAM) for the Central and

Western Gulf of Mexico available on the BSEE website. The results are shown in Figure 1. The BSEE OSRAM identifies a 8% probability of imp act to the shorelines of Terrebonne Parish, Louisiana within 10 days. This includes the eastern portion of Atchafalaya National Wildlife Refuge across to Timbalier Bay. The Terrebonne pa rish also includes the area along the Gulf Coast including Caillou Bay, Isles Dernieres and Te rrebonne Bay. The entire parish is classified as an EPA National Estuary. This area is primarily marshl and, broken up by numerous small bays and freshwater lakes.

Response

Walter will make every effort to respond to th e Worst Case Discharge as effectively as practicable. A description of the response equipment under contra ct to contain and recover the Worst Case Discharge is shown in Figure 2.

Using the estimated chemical and physical char acteristics of condensate, an ADIOS weathering model was run on a similar product from the ADIO S oil database. The results indicate 61% or approximately 128 barrels of condensate would be evaporated/dispersed within 24 hours, with approximately 82 barrels remaining.

Spill Response South Timbalier 127 Barrels of Oil

WCD Volume 210

Less 61% natural evaporation/dispersion 128

Remaining volume 82

Figure 2 outlines equipment, personnel, materials and support vessels as well as temporary storage equipment available to respond to a spill of approximately 82 barrels. The volume accounts for the amount remaining after evaporatio n/dispersion at 24 hours. The list estimates individual times needed for proc urement, load out, travel time to the site and deployment. Figure

2 also indicates how operations will be supported.

Walter’s Oil Spill Response Plan includes alternative response technologies such as dispersants. Strategies will be decided by Unified Command based on the size of the spill, weather andpotential impacts. If aerial dispersants are utilized, 8 sorties (9,600 gallo ns) from two of the DC3 aircrafts and 4 sorties (8,000 gallons) from the Ba sler aircraft would provi de a daily dispersant capability of 7,540 barrels. Slick containment boom along with sorbent boom would be immediately called out and on-scene as soon as possible. Offshore response strategies may

include collection of condensat e with sorbent boom (inside ha rd boom), attempting to skim utilizing the HOSS barge and the R/V Grand Bay, with a total derated skimming capacity of 48,000 barrels. Temporary storage associated with skimming equipment e quals 4,065 barrels. If additional storage is needed, one 25,000 barre l storage barge and two 20000 barrel storage barges may be mobilized and centrally located to provide temporary storage allowing the skimmers to stay in the area of operations as much as possible. Safety is first priority. Air monitoring will be accomplished and operations deemed safe prior to any containment/skimming attempts.

If the spill went unabated, shoreline impact in Terrebonne Parish, Louisiana would depend upon existing environmental conditions. Shoreline prot ection would include the use of CGA’s near

shore and shallow water skimmers with a tota led derated skimming capacity of 7,176 barrels. Temporary storage associated w ith skimming equipment equals 68 barrels. If additional storage is needed, one 20,000 barrel storage barge may be mobilized and centrally located to provide temporary storage allowing the skimmers to stay in the area of operations as much as possible. Onshore response may include the deployment of shoreline boom on beach areas, or protection and sorbent boom on vegetated areas. Master Service Agreements AMPOL, Miller, OMI

Environmental and USES will en sure access to 263,000 feet of 18” shoreline protection boom. Figure 2 outlines individual times needed for procurem ent, load out, travel time to the site and deployment. Strategies would be based upon survei llance and real time traj ectories that depict areas of potential impact given actual sea and w eather conditions. The Stat e of Louisiana Initial Oil Spill Response Plan for Terrebonne Parish, Louisiana and Unified Command would be

consulted to ensure that environmental and special economic resources would be correctly identified and prioritized to en sure optimal protection. Shoreline protection strategies depict the protection response modes applicable for oil sp ill clean-up operations. Th e State of Louisiana Initial Oil Spill Response Plan provides detailed shoreline protection strategies for this area, and it describes necessary action to keep the oil sp ill from entering Louisiana’s coastal wetlands, based on the assumption that removal of the releas ed oil will be much ea sier and less damaging to fragile coastal ecosystems if done in the open waters of the Gulf of Mexico. Supervisory personnel have the option to modify the deploym ent and operation of equipment allowing a more effective response to site-specific circumstan ces. Walter’s contract Spill Management Team holds a copy of the State of Louisiana Initial Oil Spill Response Plan.

Based on the anticipated worst case discharge scen ario, Walter can be onsite with contracted oil spill recovery equipment with adequate response capacity to contain and recover surface hydrocarbons, and prevent land impact, to the maximum extent practicable, within an estimated 31 hours (based on the equipment’s Effectiv e Daily Recovery Capacity (EDRC)).Initial Response Considerations Actual actions taken during an oil spill response will be based on many factors which include but

are not limited to:

• Weather

• Equipment and materials availability

• Ocean currents and tides

• Location of the spill

• Product spilled

• Amount spilled

• Environmental risk assessments

• Trajectory and product analysis

• Well status, i.e., shut in or continual release

Walter will take action to provide a safe, aggressive response to co ntain and recover as much of the spilled oil as quickly as it is safe to do so. In an effort to protect the environment, response actions will be designed to provide an “in-depth” protection strategy meant to recover as much oil as possible as far from environmentally se nsitive areas as possible. Safety will take precedence over all other considerations during these operations.

Coordination of response assets will be supe rvised by the designation of a SIMOPS group as necessary for close quarter vessel response activitie s. Most often, this gr oup will be used during source control events that require a significant nu mber of large vessels operating independently, but in coordination to complete a common objec tive, in a small area and in close coordination and support of each other. This group must also monitor the subsurface activ ities of each vessel (ROV, dispersant application, well control sup port, etc.). The SIMOPS group leader reports to

the Source Control Section Chief.

In addition, these activities will be monitored by the spill mana gement team (SMT) and Unified

Command via a structured Common Operating Picture (COP) esta blished to track resource and

slick movement in real time.

Upon notification of a spill, the following actions will be taken:

• Information will be confirmed

• An assessment will be made and initial objectives set

• OSROs and appropriate agen cies will be notified

• ICS 201, Initial Report Form will be completed

• Initial Safety plan will be written and published

• Unified Command will be established

o Overall safety plan developed to reflect the operational situa tion and coordinated objectives

o Areas of responsibility esta blished for Source Control a nd each surface operational

site

o On-site command and control establishedDecanting Strategy Recovered oil and water mixtures will typically se parate into distinct phases when left in a quiescent state. When separati on occurs, the relatively clean water phase can be siphoned or decanted back to the recovery point with minima l, if any, impact. Decan ting therefore increases the effective on-site oil storage capacity a nd equipment operating time. FOSC/SOSC approval will be requested prior to decanting operations. This practice is routinely used for oil spill

recovery.

Offshore Response Actions

Equipment Deployment

Surveillance

• Surveillance Aircraft will be deployed within two hours of Qu alified Individual (QI) notification, or at first light

• Provide trained observer to pr ovide on site status reports

• Provide command and control platfo rm at the site if needed

• Continual surveillance of oil movement by remote sensing systems, aerial photography

and visual confirmation

• Continual monitoring of vessel assets using vessel monitoring systems

Dispersant application assets

• Put Airborne Support In c. (ASI) on standby

• With the Federal On-Scene Coordinator (FOSC), conduct analysis to determine appropriateness of dispersant application

• Gain FOSC approval for use of dispersants on the surface

• Deploy aircraft in accordance with a plan developed for the actual situation

• Coordinate movement of dispersants, ai rcraft, and support equipment and personnel

• Confirm dispersant availability fo r current and long range operations

• Start ordering dispersa nt stocks required for expected operations

Containment boom & sorbent boom

• Call out early and expedite deployment to be on scene ASAP

• Ensure boom handling and mooring equipment is deployed with boom

• Provide continuing reports to vessels to expedite their arrival at sites that will provide for

their most effective containment

• Use Vessels of Opportunity (VOO) to deploy and maintain boom

Dedicated off-shore skimming systems

General

• Deployed to the highest concentration of oil

• Assets deployed at safe distance from aerial dispersant operationsCGA HOSS Barge

• Use in areas with heaviest oil concentrations

• Consider for use in areas of known debris (seaweed, and other floating materials)

CGA FRUs

• To the area of the thickest oil

• Use as far off-shore as allowed

• VOOs 140’ – 180’ in length

• VOOs with minimum of 18’ x 38’ or 23’ x 50’ of optimum deck space

• VOOs in shallow water should have a dr aft of <10 feet when fully loaded

Storage Vessels

• Establish availability of CGA contracted assets

• Early call out (to allow for tug boa t acquisition and deployment speeds)

• Phase mobilization to allow storage vessels to arrive at the same time as skimming

systems

• Position as closely as possible to ski mming assets to minimize offloading time

Vessels of Opportunity (VOO)

• Use Walter’s contracted re sources as applicable

• Industry vessels are usually best for deployment of Vessel of Opportunity Skimming Systems (VOSS)

• Acquire additional resources as needed

• Consider use of local assets, i.e. fishing and pleasure craft

• Expect mission specific and sa fety training to be required

• Plan with the US Coast Guard for vessel inspections

Adverse Weather Operations:

In adverse weather, when seas are > 3 feet, the use of larger recovery and storage vessels, oleophilic skimmers, and large offshore boom will be maximized. Safety will be the overriding factor in all operations and will cease at the order of the Unified Command, vessel captain, or in an emergency, ”stop work” may be directed by any crew member.Near Shore Response Actions

Timing

• Place near shore assets on standby and depl oy in accordance with planning based on the actual situation, actual traj ectories and oil budgets

• VOO identification and training in advance of spill nearing sh oreline if possible

• Outfitting of VOOs for specific missions

• Deployment of assets based on actual movement of oil

Considerations

• Water depth, vessel draft

• Shoreline gradient

• State of the oil

• Use of VOOs

• Distance of surf zone from shoreline

Equipment Deployment

Surveillance

• Provide trained observer to direct skimming operations

• Continual surveillance of oil movement by remote sensing systems, aerial photography

and visual confirmation

• Continual monitoring of vessel assets

Dispersant Use

• Generally will not be approved within 3 miles of shore or with less than 10 meters of water depth

• Approval would be at Regional Re sponse Team level (Region 6)

Vessel Deployment Dedicated Near Shore skimming systems

• Fast Response Vessels (FRV)

• Egmopol and Marco Shallow Water Skimmer (SWS)

• Operate with aerial spotter directi ng systems to observed oil slicks

VOO

• Use Walter’s contracted re sources as applicable

• Industry vessels are usually best for deployment of Vessel of Opportunity Skimming Systems (VOSS)

• Acquire additional resources as needed

• Consider use of local assets, i.e. fishing and pleasure craft

• Expect mission specific and sa fety training to be required

• Plan with the US Coast Guard for vessel inspections

• Operate with aerial spotter directing systems to oil patchesShoreline Protection Operations

Response Planning Considerations

• Environmental risk assessments (ERA) to determine priorities for area protection

• Time to acquire personnel and eq uipment and their availability

• Previous contingency planning contained in the appropriate Area Contingency Plan, and currently for Louisiana, The State of Loui siana Initial Oil Spill Response Plan, Deep Water Horizon, dated 2 May 2010

Actions

Placement of boom

• Position boom in accordance with the ERA based on the actual situation or the appropriate ACP

• Assess timing of booming operations to ensure it is where it needs to be at time of impact. Consider:

o Trajectories

o Weather forecast

o Oil Impact forecast

o Verified spill movement

o Boom, manpower and vessel (shallow draft) availability

o Near shore boom and support material, (stakes, anchors, line)

Beach Preparation

Considerations and Actions

• Use of a 10 mile go/no go line to determine timing of beach cleaning

• Shoreline Cleanup and Assessment Team Reports and recommendations

• Determination of Archeological site s and gaining authority to enter

• Monitoring of tide tables and weather to determine extent of high tides

• Pre cleaning of beaches by moving waste above high tide lines to minimize waste

• Staging of equipment and housing of respons e personnel as close to the job site as possible to maximize on-site work time

• Boom tending, repair, replacement and security (u se of local assets may be advantageous)

• Constant awareness of weather and oil moveme nt for resource redeployment as necessary

• In-situ burn may be considered when marshes have been impacted

• Passive clean up of marshes should be consider ed and appropriate stoc ks of sorbent boom and/or sweep obtained

• Earthen berms and shoreline protection boom may be considered to protect sensitive

inland areasDecanting Strategy Recovered oil and water mixtures will typically se parate into distinct phases when left in a quiescent state. When separati on occurs, the relatively clean water phase can be siphoned or decanted back to the recovery point with minima l, if any, impact. Decan ting therefore increases the effective on-site oil storage capacity a nd equipment operating time. FOSC/SOSC approval will be requested prior to decanting operations. This practice is routinely used for oil spill

recovery.

CGA Equipment Limitations The capability for any spill response equipment, whether a dedicated or portable system, to operate in differing weather conditions will be directly in rela tion to the capabilities of the vessel the system in placed on. Most importantly, however, the decision to operate will be based on the judgment of the Unified Command a nd/or the Captain of the vessel, who will ultimately have the final say in terminating operations. Skimming equipment listed below may have operational limits which exceed those safety thresholds. As was seen in the Deepwater Horizon (DWH) oil spill response, vessel skimming opera tions ceased when seas reache d 5-6 feet and vessels were often recalled to port when those conditions were exceeded. Systems below are some of the most up-to-date systems available and were employed during the DWH spill.

Boom 3 foot seas, 20 knot winds Dispersants Winds more than 25 knots Visibility less than 3 nautical miles Ceiling less than 1,000 feet.

FRU 8 foot seas HOSS Barge/OSRB 8 foot seas Koseq Arms 8 foot seas

OSRV 4 foot seasEnvironmental Conditions in the GOM Louisiana is situated between the easterly and westerly wind belts, and therefore, experiences westerly winds during the wint er and easterly winds in the summer. Average wind speed is generally 14-15 mph along the coast. Wave he ights average 4 and 5 feet. However, during hurricane season, Louisiana has recorded wave heights ranging from 40 to 50 feet high and winds reaching speeds of 100 mph. Because much of southern Louisiana lies below sea level, flooding is prominent.

Surface water temperature ranges between 70 and 80  ̊ F during the summer months. During the winter, the average temperatur e will range from 50 and 60  ̊ F.

The Atlantic and Gulf of Mexico hurricane seas on is officially from 1 June to 30 November. 97% of all tropical activity occurs within this window. The Atlant ic basin shows a very peaked season from August through October, with 78% of the tropical storm days, 87% of the minor (Saffir-Simpson Scale categories 1 and 2) hurricane days, and 96% of the major (Saffir-Simpson categories 3, 4 and 5) hurricane days occurri ng then. Maximum activity is in early to mid September. Once in a few years there may be a hurri cane occurring "out of season" - primarily in May or December. Globally, September is the mo st active month and May is the least active

month.FIGURE 1

TRAJECTORY BY LAND SEGMENT

Trajectory of a spill and the probability of it impacting a land segment have been projected utilizing Walter’s WCD and information in the BSEE Oil Spill Risk Analysis Model (OSRAM) for the Central and Western Gulf of Mexico available on the BSEE website using 10 day impact. The results are tabulated below.

Area/Block OCS-G Launch

Area Land Segment and/or

Resource Conditional Probability (%) within 10 days

Install helideck and

deck on caisson and place on production

ST 127

25.25 miles from shore G33109 C039 Cameron, LA Vermilion, LA Iberia, LA Terrebonne, LA

Lafourche, LA Jefferson, LA Plaquemines, LA 2

2

1

8

4

1

5WCD Scenario–BASED ON WELL BLOWOUT DURING PRODUCTION OPERATIONS(25.25 miles from shore)82 bbls of condensate (Volume considering natural weathering)API Gravity 44.5°FIGURE 2 – Equipment ResponseTime to South Timbalier 127Dispersants/SurveillanceDispersant/SurveillanceDispersantCapacity(gal)StorageCapacityPersons Req.FromHrs toProcureHrs toLoadoutTravel to siteTotalHrsCGABasler 67T2000NA2Houma110.22.2ASIDC 31200NA2Houma110.22.2DC 31200NA2Houma110.22.2Aero CommanderNANA2Houma110.22.2Offshore ResponseOffshore Equipment NoStagingEDRCStorageCapacityVOOPersonsRequiredFromHrs toProcureHrs toLoadoutHrs to GOMTravel toSpill SiteHrs toDeployTotalHrsCGAHOSS Barge4300040003 Tugs5Harvey7053.8116.846’ FRV500065NA4Venice1011.203.2Boom Barge (CGA-300)42” Auto Boom (25000’)NANA1 Tug50 Crew4 (Barge)2 (Per Crew)Leeville4065.71.517.2Recovered Oil Storage NoStagingEDRCStorageCapacity(bbl)VOOPersonsRequiredFromHrs toProcureHrs toLoadoutHrs to GOMTravel toSpill SiteHrs toDeployTotalHrsEnterprise Marine Services LLC (available through contract with CGA)CTCo 2603NA250001 Tug6Amelia412410.00131.00CTCo 2604NA200001 Tug6Amelia412410.00131.00CTCo 2605NA200001 Tug6Amelia412410.00131.00Nearshore ResponseNearshore Equipment NoStagingEDRCStorageCapacity(bbl)VOOPersonsRequiredFromHrs toProcureHrs toLoadoutHrs to GOMTravel toSpill SiteHrs toDeployTotalHrsCGACTCo 2606NA200001 Tug6Amelia412410.00131.00Staging Area: HoumaNearshore and InlandSkimmers With StagingEDRCStorageCapacityVOOPersonsReq.FromHrs toProcureHrs toLoadOutTravel toStagingTravel toDeploymentSiteHrs toDeployTotalHrsCGASWS Marco358834NA3Leeville121.25206.25SWS Marco358834NA3Venice123208Shoreline ProtectionShoreline ProtectionBoomVOOPersonsReq.Storage/WarehouseLocationHrs toProcureHrs toLoadOutTravel toStagingTravel toDeployment SiteHrs to DeployTotal HrsAMPOL (available through MSA)42,000’ 18” Boom16 Crew40New Iberia, LA223.521221.520,000’ 18” Boom8 Crew20New Orleans, LA222.752614.75Miller Environmental (available through MSA)14,000’ 18” Boom6 Crew12Sulphur, LA.5152210.514,000’ 18” Boom6 Crew12Beaumont, TX.515.752211.2560,000’ 18” Boom10 Crew20Corpus Christi, TX.5210.52823OMI Environmental (available through MSA)10,000’ 18” Boom4 Crew10New Iberia, LA113.52310.510,000’ 18” Boom4 Crew10Houston, TX117231410,000’ 18” Boom4 Crew10Port Arthur, TX115.752312.7520,000’ 18” Boom8 Crew20Belle Chasse, LA113261310,000’ 18” Boom4 Crew10Port Allen, LA113.52310.510,000’ 18” Boom4 Crew10Houma, LA11223915,000’ 18” Boom6 Crew14Gretna, LA (Warehouse)222.752412.75USES (available through MSA)6000’ 18” Boom5 Crew14Meraux, LA.5.532285000’ 18” Boom3 Crew8Mobile, AL.5.5522101000’ 18” Boom1 Crew3Geismar, LA.5.53.25217.254500’ 18” Boom3 Crew8Houston, TX.5.5722124000’ 18” Boom2 Crew6Venice, LA.5.54.5229.52000’ 18” Boom1 Crew3Jackson, MS.5.552192000’ 18” Boom1 Crew3Southaven, MS.5.58.252112.251000’ 18” Boom1 Crew3Nashville, TN.5.51121151500’ 18” Boom1 Crew3Birmingham, AL.5.5821121000’ 18” Boom1 Crew3Biloxi, MS.5.54.25218.25Staging Area: HoumaBeach BoomEDRCStorageCapacityVOOPersonsReq.FromHrs toProcureHrs toLoadOutTravel toStagingTravel toDeploymentSiteHrs toDeployTotal HrsCGABeach Boom (2000’)NANANA6Galveston1261212Beach Boom (1000’)NANANA4Ingleside1291215Beach Boom (2000’)NANANA6Pascagoula123129Wildlife ResponseEDRCStorageCapacityVOOPersonsReq.FromHrs toProcureHrs toLoadOutTravel toStagingTravel toDeploymentSiteHrs toDeployTotal HrsCGAWildlife Support TrailerNANANA2Houma120126Bird Scare Guns (24)NANANA2Belle Chasse121.25127.25Bird Scare Guns (12)NANANA2Galveston1261212Bird Scare Guns (24)NANANA2Houma120126Bird Scare Guns (12)NANANA2Ingleside1291215Bird Scare Guns (24)NANANA2Lake Charles123129Bird Scare Guns (24)NANANA2Pascagoula123129Response AssetTotalOffshore EDRC48,000Offshore Recovered Oil Storage69,065Nearshore / Shallow Water EDRC7,176Nearshore / Shallow Water Recovered Oil Storage20,068Walter Oil & Gas Corporation Page J-1

Initial DOCD July, 2013

South Timbalier Block 127 

### APPENDIX J

ENVIRONMENTAL MONITORING INFORMATION

(A) MONITORING SYSTEMS

Wilken's Weather Service.

(B) INCIDENTAL TAKES

There is no reason to believe that any of the endangered species or marine mammals as listed in the ESA will be “taken” as a result of the operations proposed under this plan.

It has been documented that the use of explosives and/or seismic devices ca n affect marine life. Operations proposed in this plan will not be utilizing either of these devices.

(C) FLOWER GARDEN BANKS NATIONAL MARINE SANCTUARY

South Timbalier Block 127 is not located in the Flower Garden Banks National Marine Sanctuary; therefore, relevant inform ation is not required in this DOCD.Walter Oil & Gas Corporation Page K-1

Initial DOCD July, 2013

South Timbalier Block 127 

### APPENDIX K

LEASE STIPULATIONS INFORMATION

Marine Protected Species The Marine Protected Species St ipulation is meant to reduce th e potential taking of marine protected species. Walter will operate in accordance with JOINT NTL No. 2012-G01 to

minimize the risk of vessel strike s to protected species and report ob servations of injured or dead protected species, and the prevention of intentional and/or accidental intr oduction of debris into

the marine environment.Walter Oil & Gas Corporation Page L-1

Initial DOCD July, 2013

South Timbalier Block 127 APPENDIX L

ENVIRONMENTAL MITIGATION MEASURES INFORMATION

(A) MITIGATION MEASURES TAKEN TO MINIMIZE IMPACT TO MARINE AND

COASTAL ENVIRONMENT Not required to be submitted with this DOCD.

(B) INCIDENTAL TAKES Walter will adhere to the requirements as set forth in the following documents, as applicable, to avoid or minimize impacts to any of the species listed in the ESA as a result of the operations

conducted herein:

• JOINT NTL No. 2012-G01, “Vessel Strike Avoidance and Injure d/Dead Protected Species Reporting”

• BSEE NTL No. 2012-G01, “Marine Trash and Debris Awareness and Elimination”

• JOINT NTL No. 2012-G02, “Implementation of Seismic Survey Mitigation Measures and Protected Species Observer Program”Walter Oil & Gas Corporation Page M-1

Initial DOCD July, 2013

South Timbalier Block 127 APPENDIX M

RELATED FACILITIES AND OPERATIONS INFORMATION

(A) RELATED OCS FACILITIES AND OPERATIONS Walter proposes to install a 6-5/8" right-of-way pipeline and tie-in to the existing Discovery Pipeline system in South Timbalier Block 124.

All hydrocarbon handling equipment installed fo r testing and production operations will be designed, installed and oper ated to prevent pollution.

(B) TRANSPORTATION SYSTEM Production will be transported via a new 6-5/8” pipeline from S outh Timbalier Block 127 to the Discovery Pipeline system in South Timbalier Block 124 and to a separation and gas processing plant in Larose, Louisiana. No new nearshore or onshore pipelines or facilities will be

constructed.

(C) PRODUCED LIQUID HYDROCARBONS TRANSPORTATION VESSELS There will not be any transfers of liq uid hydrocarbons other than via pipeline.Walter Oil & Gas Corporation Page N-1

Initial DOCD July, 2013

South Timbalier Block 127 APPENDIX N

SUPPORT VESSELS AND AI RCRAFT INFORMATION

(A) GENERAL Type Maximum Fuel Tank Capacity Maximum

Number in Area at Any Time Trip Frequency or

Duration

Supply Boat 200,000 gallons 1 Production 1 trip/month Supply Boat 200,000 gallons Installation 20 days

The most practical, direct route from the s horebase as permitted by weather and traffic

conditions will be utilized.

(B) DIESEL SUPPLY VESSEL Size of Fuel Supply

Vessel Capacity of Fuel Supply Vessel Frequency of Chemical Transfers Route Fuel Supply

Vessel Will Take

120 feet 16,000 gallons 1 per month Closest route from

shorebase to block.

(C) DRILLING FLUID TRANSPORTATION Drilling fluid transportation is not requi red to be submitted with this DOCD.

(D) SOLID AND LIQUID WASTE TRANSPORTATION No solid or liquid wastes will be transported to shore.

(E) VICINITY MAP

Enclosed as Attachment N-1 is a vicinity map showing the location of the activities proposed

herein relative to the shoreline w ith the distance of th e proposed activities from the shoreline and the primary route of the support ve ssels and aircraft that will be used when traveling between the onshore support facilitie s and Caisson No. 1

.Walter Oil & Gas Corporation Page O-1

Initial DOCD July, 2013

South Timbalier Block 127 APPENDIX O

ONSHORE SUPPORT FACILITIES INFORMATION

(A) GENERAL

Name Location Existing/New/Modified

HOS Port Fourchon, LA Existing

(B) SUPPORT BASE CONSTRUCTION OR EXPANSION

There will be no new construction of an onshor e support base, nor will we expand the existing shorebase as a result of the operations proposed in this DOCD.

(C) SUPPORT BASE CONSTRUC TION OR EXPANSION TIMETABLE Not applicable.

(D) WASTE DISPOSAL No wastes will be transported to shore for disposal.Walter Oil & Gas Corporation Page P-1

Initial DOCD July, 2013

South Timbalier Block 127 APPENDIX P

COASTAL ZONE MANAGEMEN T (CZMA) INFORMATION

Relevant enforceable policies were considered in certifying consistency for Louisiana. A certificate of Coastal Zone Management Consistenc y for the state of Louisiana is enclosed as

Attachment P-1

.Walter Oil & Gas Corporation Page Q

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Initial DOCD July, 2013

South Timbalier Block 127 APPENDIX Q ENVIRONMENTAL IMPACT ANALYSIS (EIA)

(A) IMPACT PROD UCING FACTORS

ENVIRONMENTAL IMPACT ANALYSIS WORKSHEET

Environment

Resources Impact Producing Factors (IPFs) Categories and Examples Refer to recent GOM OCS Lease Sale EIS for a more complete list of IPFs

Emissions (air, noise, light, etc.) Effluents (muds, cutting, other discharges to

the water

column or seafloor) Physical

disturbances to the

seafloor (rig or

anchor emplacements, etc.) Wastes sent

to shore for

treatment or disposal Accidents (e.g., oil spills,

chemical spills, H 2 S releases) Discarded

Trash &

Debris

Site-specific at Offshore

Location

Designated topographic features (1) (1) (1)

Pinnacle Trend area live bottoms (2) (2) (2)

Eastern Gulf live bottoms (3) (3) (3)

Benthic communities (4)

Water quality X X

Fisheries X X

Marine Mammals X(8) X(8) X

Sea Turtles X(8) X(8) X

Air quality X(9)

Shipwreck sites (known or potential) (7)

Prehistoric archaeological sites X(7) X

Vicinity of Offshore Location

Essential fish habitat X X(6)

Marine and pelagic birds X X X

Public health and safety (5)

Coastal and Onshore

Beaches X(6) X

Wetlands X(6)

Shore birds and coastal nesting

birds X(6) X

Coastal wildlife refuges X

Wilderness areas X

Footnotes for Environmental Impact Analysis Matrix

1) Activities that may affect a marine sanctuary or topographic f eature. Specifically, if the well or platform site or any

anchors will be on the seafloor within the:Walter Oil & Gas Corporation Page Q

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Initial DOCD July, 2013

South Timbalier Block 127 o 4-mile zone of the Flower Garden Banks, or the 3-mile zone of Stetson Bank;

o 1000-m, 1-mile or 3-mile zone of any topographic feature (submarine bank) protected by the Topographic Features Stipulation attached to an OCS lease;

o Essential Fish Habitat (EFH) criteria of 500 ft. from any no-activity zone; or

o Proximity of any submarine bank (500 ft. buffer zone) with relief greater than 2 meters th at is not protected by the Topographic Features Stipulation attached to an OCS lease.

2) Activities with any bottom disturbance within an OCS lease block protected through the Live Bottom (Pinnacle Trend) Stipulation attached to an OCS lease. 3) Activities within any Eastern Gulf OCS bl ock where seafloor habitats are protect ed by the Live Bottom (Low-Relief) Stipulation attached to an OCS lease. 4) Activities on blocks designated by the BOEM as being in water depths 300 meters or greater. 5) Exploration or production activities where H2S concentr ations greater than 500 ppm might be encountered. 6) All activities that could result in an accide ntal spill of produced liquid hydrocarbons or diesel fuel that you determine would impact these environmental resources. If the proposed action is located a sufficient distance from a resource that no impact would occur, the EIA can note that in a sentence or two. 7) All activities that involve seafloor disturbances, including anchor emplacements, in any OCS block designated by the BOEM as having high-probability for the o ccurrence of shipwrecks or prehistoric sites, including such blocks that will be affected that are adjacent to the lease block in which your planned activity will occur. If the proposed activities are

located a sufficient distance from a shipwreck or a prehistoric site that no im pact would occur, the EIA can note that in

a sentence or two. 8) All activities that you determine might have an adverse eff ect on endangered or threatened marine mammals or sea

turtles or their critical habitats. 9) Production activities that involve trans portation of produced fluids to shor e using shuttle tankers or barges.Walter Oil & Gas Corporation Page Q

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Initial DOCD July, 2013

South Timbalier Block 127 (B) ANALYSIS

Site-Specific at Sout h Timbalier Block 127 Proposed operations consist of the installation of a deck and helipor t with a lift boat on the existing Caisson, installation of a 6-58” ri ght-of-way pipeline from the pl atform to the Discovery Pipeline system in South Timbalier 124.

1. Designated Topographic Features Potential IPFs on topographic features include physic al disturbances to the seafloor and accidents.

Physical disturbances to the seafloor: South Timbalier Block 127 is 45 miles from the closest designated Topographic Features Stipulation Bl ock (Sackett Bank); therefore, no adverse impacts are expected.

Accidents: It is unlikely that an accidental surface or subsurf ace spill would occur from the proposed activities (re fer to statistics in Item 5 , Water Quality). Oil spills cause damage to benthic organisms only if the oil contacts the organisms. O il from a surface spill can be driven into the water column; measurable amounts have been documented down to a 10 m depth. At this depth, the oil is found only at concentrations severa l orders of magnitude lower than the amount shown to have an effect on corals. Because the crests of topographic f eatures in the Northern Gulf of Mexico are found below 10 m, no oil from a surface spill could reach thei r sessile biota. Oil from a subsurface spill is not applicable due to the distance of these blocks from a topographic area. The act ivities proposed in this plan will be covered by Walter’s Regional OSRP (refer to information submitted in Appendix I ).

There are no other IPFs (including emissions, effluents and wastes sent to shore for disposal) from the proposed activities, which could impact topographic features.

2. Pinnacle Trend Area Live Bottoms Potential IPFs on pinnacle trend area live bottoms in clude physical disturbanc es to the seafloor and

accidents.

Physical disturbances to the seafloor: South Timbalier Block 127 is 116 miles from the closest live bottom (pinnacle trend) area; therefor e, no adverse impacts are expected.

Accidents: It is unlikely that an accidental surface or subsurf ace spill would occur from the proposed activities (re fer to statistics in Item 5 , Water Quality). Oil spills have the potential to foul

benthic communities and cause lethal and subletha l effects on live bottom organisms. Oil from a surface spill can be driven into the water column; measurable amounts have been documented down to a 10 m depth. At this depth, the oil is found only at concentrations several orders of magnitude lower

than the amount shown to have an effect on marine organisms. Oil from a subsurface spill is not applicable due to the distance of these blocks from a live bottom (pinnacle trend) area. The activities proposed in this plan will be covered by Walter’ s Regional OSRP (refer to information submitted in Appendix I ).

There are no other IPFs (including emissions, effluents and wastes sent to shore for disposal) from the proposed activities which could impact a live bottom (pinnacle trend) area.Walter Oil & Gas Corporation Page Q

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Initial DOCD July, 2013

South Timbalier Block 127 3. Eastern Gulf Live Bottoms Potential IPFs on Eastern Gulf live bottoms include phys ical disturbances to th e seafloor and accidents.

Physical disturbances to the seafloor: South Timbalier Block 127 is not located in an area characterized by the existence of live bottoms, and this lease does not contain a Live-Bottom Stipulation requiring a photo documen tation survey and survey report.

Accidents: It is unlikely that an accidental surface or subsurf ace spill would occur from the proposed activities (re fer to statistics in Item 5 , Water Quality). Oil spills cause damage to live bottom organisms only if the oil contacts the organisms. O il from a surface spill can be driven into the water column; measurable amounts have been documented dow n to a 10 m depth. At this depth, the oil is found only at concentrations severa l orders of magnitude lower than the amount shown to have an

effect on marine invertebrates. Oil from a subsurface spill is not applicable due to the distance of these

blocks from a live bottom area. Th e activities proposed in this plan will be covered by Walter’s Regional OSRP (refer to information submitted in Appendix I ).

There are no other IPFs (including emissions, effluents and wastes sent to shore for disposal) from the proposed activities which could impact an Eastern Gulf live bottom area.

4. Benthic Communities There are no IPFs (including emissi ons, physical disturbances to the seafloor, wastes sent to shore for disposal, or accidents) from the proposed activities that could cause impacts to benthic communities.

Operations proposed in this plan are in water dept hs of 85 feet. High-dens ity benthic communities are found only in water depths greater than 984 feet (300 meters); therefore, Walter’s proposed operations

in South Timbalier Block 127 would not cause impacts to benthic communities.

5. Water Quality
IPFs that could result in water quality degradation from the proposed operations in South Timbalier Block 127 include disturbances to the seafloor, and accidents.

Physical disturbances to the seafloor: Bottom area disturbances resulting from the emplacement of drill rigs, the drill ing of wells and the installation of platforms and pipelines would increase water-column turbidity and re-suspension of any accumulated pollutants, such as trace metals

and excess nutrients. This would cause short- lived impacts on water quality conditions in the immediate vicinity of the emplacement operations.

Accidents: Oil spills have the potential to alter offshor e water quality; however, it is unlikely that an accidental surface or subsurface spill would occur from the proposed activities. Between 1980 and 2000, OCS operations produced 4.7 billion barrels of oil and spilled only 0.001 percen t of this oil, or 1 bbl for every 81,000 bbl produced. The spill risk relate d to a diesel spill fr om drilling operations is even less. Between 1976 and 1985, (years for which data were collected), there were 80 reported diesel spills greater than one barr el associated with drilling activiti es. Considering that there were 11,944 wells drilled, this is a 0.7 percent probability of an occurrence. If a sp ill were to occur, the water quality of marine waters w ould be temporarily affected by th e dissolved components and smallWalter Oil & Gas Corporation Page Q

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Initial DOCD July, 2013

South Timbalier Block 127 oil droplets. Dispersion by current s and microbial degradation woul d remove the oil from the water column and dilute the constituents to background leve ls. Historically, changes in offshore water quality from oil spills have only been detected during the life of the spill and up to several months afterwards. Most of the components of oil are in soluble in water and therefore floa t. The activities proposed in this plan will be covered by Walter’s Regional Oil Spill Re sponse Plan (refer to information submitted in Appendix I ).

There are no other IPFs (includi ng emissions, physical disturbances to the seafloor, effluents and wastes sent to shore for disposal) from the propo sed activities which could cause impacts to water quality.

6. Fisheries IPFs that could cause impacts to fisheries as a result of the propos ed operations in South Timbalier Block 127 include physical disturbances to the seafloor, and accidents.

Physical disturbances to the seafloor: The emplacement of a struct ure or drilling rig results in minimal loss of bottom trawling area to commercial fishermen. Pipelines cause gear conflicts which result in losses of trawls and shrimp catch, bus iness downtime, and vessel damage. Most financial losses from gear conflicts are covered by the Fi shermen’s Contingency Fund (FCF). The emplacement and removal of facilities are not expected to cau se significant adverse impacts to fisheries.

Accidents: An accidental oil spill has the potential to cause some detrimental effects on fisheries; however, it is unlikely that such an event woul d occur from the proposed activities (refer to Item 5

, Water Quality). The effects of oil on mobile adult fi nfish or shellfish would likely be sublethal and the extent of damage would be reduced to the capacity of adult fish and shellfish to avoid the spill, to metabolize hydrocarbons, and to excrete both metabolites and parent compounds. The activities proposed in this plan will be covered by Walter’ s Regional OSRP (refer to information submitted in Appendix I ).

There are no IPFs from emissions, effluents or wast es sent to shore for disposal from the proposed activities which could cause impacts to fisheries.

7. Marine Mammals
GulfCet II studies revealed that cetaceans of the continental shel f and shelf-edge were almost exclusively bottlenose dolphin and Atlantic spotted dolphi n. Squid eaters, incl uding dwarf and pygmy killer whale, Risso’s dolphin, r ough-toothed dolphin, and Cuvier’s beaked whale, occurred most frequently along the upper slope in areas outside of anticyclones. I PFs that could cause impacts to marine mammals as a result of the proposed ope rations in South Timbalier Block 127 include emissions, discarded trash and debris, and accidents.

Emissions: Noises from drilling activi ties, support vessels and helic opters may elicit a startle reaction from marine mammals. This reaction may lead to disruption of marine mammals’ normal activities. Stress may make them more vulnerable to parasites, disease, e nvironmental contaminants, and/or predation (Majors and Myrick, 1990). Ther e is little conclusive evidence for long-term displacements and population trends for marine mammals relative to noise.Walter Oil & Gas Corporation Page Q

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Initial DOCD July, 2013

South Timbalier Block 127 Discarded trash and debris: Both entanglement in, and ingest ion of debris have caused the death or serious injury of marine mammals (Laist, 1997 ; MMC, 1999). The limited amount of marine debris, if any, resulting from the proposed activities is not expect ed to substantially harm marine mammals. Operators are prohibited from de liberately discharging debris as mandated by MARPOL-Annex V and

the Marine Plastic Pollution Research and Control Act, and regulations imposed by various agencies including the United States Coast Guard (USCG) and the Environmental Protection Agency (EPA).

Walter will operate in accordance with the regulations and also a void accidental loss of solid waste items by maintaining waste management plans, mani festing trash sent to s hore, and using special precautions such as covering outside trash bins to prevent accidental loss of solid waste. Special caution will be exercised when handling and dispos ing of small items and packaging materials, particularly those made of non-biode gradable, environmentally persistent materials such as plastic or glass.

Informational placards will be pos ted on all vessels and facilities ha ving sleeping or food preparation capabilities. All offshore personne l, including contractors and other support services-r elated personnel (e.g. helicopter pilots, vessel captains and boat crew s) will be indoctrinated on waste procedures, and will view the video (or Microsoft PowerP oint presentation), “Think About It” ( previously “All Washed Up: The Beach Litter Problem” ). Thereafter, all personnel will vi ew the marine trash and debris training video annually. Of fshore personnel will also receive an explanation from Walter management or the designated lease operator management that emphasizes their commitment to waste management

in accordance with NTL No. 2012-G01.

Accidents: Collisions between support vessels and cetaceans would be unusual events, however should one occur, death or injury to marine mammals is possible. Contract vessel operators can avoid marine mammals and reduce potential deaths by mainta ining a vigilant watch for marine mammals and maintaining a safe distance when they are sighted. Vessel crews should use a reference guide to help identify the twenty-eight species of whales and dol phins and the single species of manatee that may be

encountered in the Gulf of Mexico OCS. Vessel cr ews must report sightings of any injured or dead protected marine mammal species imme diately, regardless of whether th e injury or death is caused by their vessel, to the Marine Mammal and Sea Turtle Stranding Hotline at (888) 404-3922, the NMFS Southeast Regional Office at (727) 824-5312, or the Marine Mammal Stranding Network at (305) 862- 2850. In addition, if the injury or death was caused by a collision with a contract vessel, the BOEM must be notified within 24 hours of the strike by email to protectedspecies@boemre.gov . If the vessel is the responsible party, it is requi red to remain available to assist the respective salvage and stranding

network as needed.

Oil spills have the potential to cause sublethal oil-related injuries a nd spill-related deaths to marine mammals. However, it is unlikely that an accidental oil spill would occur from the proposed activities (refer to Item 5 , Water Quality). Oil spill response activi ties may increase vessel traffic in the area, which could add to changes in cetacean behavior and/or distribution, thereby causing additional stress to the animals. The effect of oil dispersants on cetaceans is not known. The acute toxicity of oil dispersant chemicals included in Walter’s OSRP is considered to be low when compared with the constituents and fractions of crude oils and diesel pr oducts. The activities proposed in this plan will be covered by Walter’s OSRP (refer to in formation submitted in accordance with Appendix I ).Walter Oil & Gas Corporation Page Q

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South Timbalier Block 127 There are no other IPFs (including physical disturbances to the s eafloor and effluents) from the proposed activities which could impact marine mammals.

8. Sea Turtles IPFs that could cause impacts to sea turtles as a result of the propos ed operations include emissions, discarded trash and debris, and accidents. GulfCet II studies sighted most loggerhead, Kemp’s ridley

and leatherback sea turtles over shel f waters. Historically these speci es have been sighted up to the shelf’s edge. They appear to be more abundant east of the Mississippi River th an they are west of the river (Fritts et al., 1983b; Lohoefener et al., 1990). Deep waters may be used by all species as a transitory habitat.

Emissions: Noise from drilling activitie s, support vessels, and heli copters may elicit a startle reaction from sea turtles, but this is a temporary disturbance.

Discarded trash and debris: Both entanglement in, and ingestion of, debris have caused the death or serious injury of sea turtles (Balaz s, 1985). The limited amount of ma rine debris, if any, resulting from the proposed activities is not expected to substantia lly harm sea turtles. Oper ators are prohibited from deliberately discharging debris as mandated by MARPOL-Annex V and the Marine Plastic Pollution Research and Control Act, and regulations imposed by various agencies in cluding the United States Coast Guard (USCG) and the Environmental Protect ion Agency (EPA). Walter will operate in accordance with the regulations and also avoid accidental loss of solid waste items by maintaining waste management plans, manifes ting trash sent to shore, and us ing special precautions such as covering outside trash bins to prevent accidental loss of solid waste. Special caution will be exercised when handling and disposing of small items and pack aging materials, particularly those made of nonbiodegradable, environmentally persistent ma terials such as plastic or glass.

Informational placards will be pos ted on all vessels and facilities ha ving sleeping or food preparation capabilities. All offshore personne l, including contractors and other support services-r elated personnel (e.g. helicopter pilots, vessel captains and boat crew s) will be indoctrinated on waste procedures, and will view the video (or Microsoft PowerP oint presentation), “Think About It” ( previously “All Washed Up: The Beach Litter Problem” ). Thereafter, all personnel will vi ew the marine trash and debris training video annually. Of fshore personnel will also receive an explanation from Walter management or the designated lease operator management that emphasizes their commitment to waste management

in accordance with NTL No. 2012-G01.

Accidents: Collisions between support vessels and s ea turtles would be unusual events, however should one occur, death or injury to sea turtles is possible. Contra ct vessel operators can avoid sea turtles and reduce potential deaths by maintaining a vigilant watch for sea turtles and maintaining a safe distance when they are sigh ted. Vessel crews should use a refere nce guide to help identify the five species of sea turtles that may be encountered in the Gulf of Mexico OCS. Vessel crews must report sightings of any injured or dead protected sea turtle species immediately, regardless of whether the injury or death is caused by th eir vessel, to the Marine Mammal and Sea Turtle Stranding Hotline at (888) 404-3922, the NMFS Southeast Regional Of fice at (727) 824-5312, or the Marine Mammal Stranding Network at (305) 862-2850. In addition, if the injury or de ath was caused by a collision withWalter Oil & Gas Corporation Page Q

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South Timbalier Block 127 a contract vessel, the BOEM must be notified within 24 hours of the strike by email to protectedspecies@boemre.gov . If the vessel is the re sponsible party, it is requi red to remain available to assist the respective salvage a nd stranding network as needed.

All sea turtle species and their life stages are vulne rable to the harmful effects of oil through direct contact or by fouling of their food. Exposure to oil can be fatal, partic ularly to juveniles and hatchlings. However, it is unlikely that an ac cidental oil spill would occur from the proposed activities (refer to
Item 5 , Water Quality). Oil spill response activities ma y increase vessel traffic in the area, which could add to the possibility of collisions with sea turt les. The activities proposed in this plan will be covered by Walter’s Regional Oil Spill Response Plan (refer to information submitted in accordance

with Appendix I ).

There are no other IPFs (including physical disturbances to the s eafloor and effluents) from the proposed activities which c ould impact sea turtles.

9. Air Quality
South Timbalier Block 127 is located 85 miles fro m the Breton Wilderness Area and 25.25 miles from shore. Applicable emissions data is included in Appendix H of the Plan.

There would be a limited degree of air quality degrad ation in the immediate vi cinity of the proposed activities. Plan Emissions for the proposed activiti es do not exceed the annual exemption levels as set forth by BOEM. Accidents and blowouts can releas e hydrocarbons or chemicals, which could cause the emission of air pollutants. However, these releases would not impact onshore air quality because of the prevailing atmospheric conditions, emission height, emission ra tes, and the distance of South

Timbalier Block 127 from the coastline. There are no other IPFs (inclu ding effluents, physical disturbances to the seafloor, wastes sent to shore for treatment or di sposal) from the proposed activities which would impact air quality.

10. Shipwreck Sites (known or potential) IPFs that could impact known or unknown shipwreck si tes as a result of the proposed operations in

South Timbalier Block 127 include accidents and distur bances to the seafloor. South Timbalier Block 127 is not located in or adjacent to an OCS bloc k designated by BOEM as having a high probability for occurrence of shipwrecks. Walter will report to BOEM the discovery of any evidence of a shipwreck and make every reasonable effort to pres erve and protect that cultural resource. There are no other IPFs (including emissi ons, effluents, wastes sent to shore for treatment or disposal, or accidents) from the proposed activities which could impact shipwreck sites.

Accidents: An accidental oil spill has the potential to cause some detrimental effects to shipwreck sites if the release were to occur subsea. However, it is unlikely that an accide ntal oil spill would occur from the proposed act ivities (refer to Item 5 , Water Quality). The activities proposed in this plan will be covered by Walter’s Regional Oil Spill Response Plan (refer to information submitted in accordance

with Appendix I ).Walter Oil & Gas Corporation Page Q

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South Timbalier Block 127 There are no other IPFs (including emissions, effluents, or wastes sent to shore for treatment or disposal) from the proposed act ivities that could cause impacts to shipwreck sites.

11. Prehistoric Archaeological Sites IPFs that could cause impacts to pr ehistoric archaeological sites as a result of the proposed operations

in South Timbalier Block 127 are di sturbances to the seafloor a nd accidents (oil spills).

Disturbances to the seafloor: South Timbalier Block 127 is lo cated inside the Archaeological Prehistoric high probability lines. Walter will report to BOEM the discovery of any object of prehistoric archaeological significance and make ever y reasonable effort to pr eserve and protect that

cultural resource.

Accidents: An accidental oil spill has the potential to cau se some detrimental effects to prehistoric archaeological sites if the release were to occur subs ea. However, it is unlik ely that an accidental oil spill would occur from the proposed activities (refer to Item 5 , Water Quality). The activities proposed in this plan will be covered by Walter’s Regional Oil Spill Response Plan (refer to information

submitted in accordance with Appendix I ).

There are no other IPFs (including emissions, effluents, wastes sent to shore for treatment or disposal) from the proposed activities that could cause impacts to prehistoric archaeological sites.

Vicinity of Offshore Location

1. Essential Fish Habitat (EFH) IPFs that could cause impacts to EFH as a result of the proposed operations in South Timbalier Block 127 include physical disturbances to the seafloor and accidents. EFH includes all estuarine and marine

waters and substrates in the Gulf of Mexico.

Physical disturbances to the seafloor: The Live Bottom Low Reli ef Stipulation, the Live Bottom (Pinnacle Trend) Stipulation, and the East ern Gulf Pinnacle Trend S tipulation would prevent most of the potential impacts on live-bottom comm unities and EFH from bottom disturbing activities (e.g., anchoring, structure emplacement and removal).

Accidents: An accidental oil spill has the potential to cause some detrimental effects on EFH. Oil spills that contact coastal bays and estuaries, as we ll as OCS waters when pelagic eggs and larvae are present, have the greatest potential to affect fisheries. However, it is unlikely that an oil spill would occur from the proposed activities (refer to Item 5 , Water Quality). The activities proposed in this plan will be covered by Walter’s Regional OSRP (refer to information submitted in Appendix I ).

There are no other IPFs (includi ng emissions, effluents or wastes sent to shore for treatment or disposal) from the proposed activities which could impact essential fish habitat.

2. Marine and Pelagic Birds IPFs that could impact marine birds as a resu lt of the proposed activitie s include air emissions, accidental oil spills, and discarded trash and debris from vessels a nd the facilities.Walter Oil & Gas Corporation Page Q

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South Timbalier Block 127 Emissions: Emissions of pollutants into the atmosphere from the proposed activities are far below

concentrations which could harm coastal and marine birds.

Accidents: An oil spill would cause localized, lo w-level petroleum hydrocarbon contamination. However, it is unlikely that an oil spill would occur from the proposed activities (refer to Item 5

, Water Quality). Marine and pela gic birds feeding at the spill lo cation may experience chronic, nonfatal, physiological stress. It is expected that few, if any, coastal and marine birds would actually be affected to that extent. The activities proposed in this plan will be covered by Walter’s Regional OSRP (refer to information submitted in Appendix I ).

Discarded trash and debris : Marine and pelagic birds could become entangled and snared in discarded trash and debris, or ingest small plasti c debris, which can cause permanent injuries and death. Operators are prohibited from deliberatel y discharging debris as mandated by MARPOL-Annex

V and the Marine Plastic Pollution Research and Control Act, and regulations imposed by various agencies including the United States Coast Guard (USCG) and the Environmental Protection Agency (EPA). Walter will operate in acco rdance with the regulations and al so avoid accidental loss of solid waste items by maintaining waste management plans, ma nifesting trash sent to shore, and using special precautions such as covering outside trash bins to prevent accidental loss of solid waste. Special caution will be exercised when handling and dispos ing of small items and packaging materials, particularly those made of non-biode gradable, environmentally persistent materials such as plastic or glass. Informational placards will be posted on all vessels and facilities having sleeping or food preparation capabilities. All offshore personnel, including contractors and other support servicesrelated personnel (e.g. helicopter pilots, vessel captai ns and boat crews) will be indoctrinated on waste procedures, and will view the vi deo (or Microsoft PowerPoint presentation), “Think About It” ( previously “All Washed Up: The Beach Litter Problem” ). Thereafter, all pe rsonnel will view the

marine trash and debris training video annually. Of fshore personnel will also receive an explanation from Walter management or the designated leas e operator management that emphasizes their commitment to waste management in accordance w ith NTL No. 2012-G01. Debris, if any, from these proposed activities will seldom interact with marine and pelagic birds; theref ore, the effects will be negligible.

There are no other IPFs (including e ffluents, physical disturbances to the seafloor, or wastes sent to shore for treatment or disposal) from the proposed activities which could impact marine and pelagic

birds.

3. Public Health and Safety Due to Accidents. There are no IPFs (emissions, effluent s, physical disturbances to the s eafloor, wastes sent to shore for treatment or disposal or accidents, including an accidental H 2 S release) from the proposed activities which could cause impacts to public health and safety. In accordance with NTL No.’s 2008-G04, 2009-G27, and 2009-G31, sufficient information is included in Appendix D to justify our request that our proposed activities be classified by BSEE as H 2 S absent.

Coastal and OnshoreWalter Oil & Gas Corporation Page Q

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South Timbalier Block 127 1. Beaches IPFs from the proposed activities that could cause impacts to beaches include accidents (oil spills) and

discarded trash and debris.

Accidents: Oil spills contacting beaches would have impacts on the use of recreational beaches and associated resources. Due to the response capab ilities that would be implemented, no significant adverse impacts are expected. The activities pro posed in this plan will be covered by Walter’s Regional OSRP (refer to information submitted in Appendix I ).

Discarded trash and debris: Trash on the beach is recognized as a major threat to the enjoyment and use of beaches. There will only be a limited am ount of marine debris, if any, resulting from the proposed activities. Operators are prohibited from deliberately di scharging debris as mandated by

MARPOL-Annex V and the Marine Plastic Polluti on Research and Control Act, and regulations imposed by various agencies including the United States Coast Guard (USCG) and the Environmental Protection Agency (EPA). Walter will operate in accordance with the regulations and also avoid accidental loss of solid waste items by maintaining wa ste management plans, manifesting trash sent to shore, and using special precautions such as coveri ng outside trash bins to prevent accidental loss of solid waste. Special caution will be exercised wh en handling and disposing of small items and packaging materials, particularly those made of non-biodegradable, environmentally persistent materials such as plastic or glass.

Informational placards will be pos ted on all vessels and facilities ha ving sleeping or food preparation capabilities. All offshore personne l, including contractors and other support services-r elated personnel (e.g. helicopter pilots, vessel captains and boat crew s) will be indoctrinated on waste procedures, and will view the video (or Microsoft PowerP oint presentation), “Think About It” ( previously “All Washed Up: The Beach Litter Problem” ). Thereafter, all personnel will vi ew the marine trash and debris training video annually. Of fshore personnel will also receive an explanation from Walter management or the designated lease operator management that emphasizes their commitment to waste management

in accordance with NTL No. 2012-G01.

There are no other IPFs (emissions, e ffluents, physical disturbances to the seafloor, or wastes sent to shore for treatment or disposal) from the proposed activities which could impact beaches.

2. Wetlands Salt marshes and seagrass beds fringe the coastal areas of the Gulf of Mexico. Due to the distance from shore (25.25 miles), accidents (oil spills) and discar ded trash and debris repr esent a IPFs which could impact these resources.

Accidents: Level of impact from an oil spill will depe nd on oil concentrations contacting vegetation, kind of oil spilled, types of vege tation affected, season of the year , pre-existing stress level of the vegetation, soil types, and numerous ot her factors. Light-oiling impact s will cause plant die-back with recovery within two growing season s without artificial replanting. Howe ver, it is unlikely that an oil spill would occur from the proposed activities (refer to Item 5 , Water quality). If a spill were to occur, response capabilities as outlined in Walter’s Re gional OSRP (refer to information submitted in Appendix I ) would be implemented.Walter Oil & Gas Corporation Page Q

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South Timbalier Block 127 Discarded trash and debris: There will only be a limited amo unt of marine debris, if any, resulting from the proposed activitie s. Operators are prohibited from deliberately discharging debris as mandated by MARPOL-Annex V and the Marine Plas tic Pollution Research and Control Act, and regulations imposed by various ag encies including the United States Coast Guard (USCG) and the Environmental Protection Agency (EPA). Walter will oper ate in accordance with the regulations and

also avoid accidental loss of so lid waste items by maintaining waste management plans, manifesting trash sent to shore, and using special precautions such as covering outside trash bins to prevent accidental loss of solid waste. Special caution will be exercised when handling and disposing of small items and packaging materials, particularly t hose made of non-biodegradable, environmentally persistent materials such as plastic or glass.

Informational placards will be post ed on all vessels and f acilities having sleeping or food preparation capabilities. All offshore personne l, including contractor s and other support se rvices-related personnel (e.g. helicopter pilots, vessel captai ns and boat crews) will be indoctrinated on waste procedures, and will view the video (or Mi crosoft PowerPoint presentation), “Think About It” ( previously “All Washed Up: The Beach Litter Problem” ). Thereafter, all personnel will view the marine trash and debris training video annually. Of fshore personnel will also receive an explanation from Walter management or the designated lease operator management that emphasizes their commitment to waste management

in accordance with NTL No. 2012-G01.

There are no other IPFs (emissions, e ffluents, physical disturbances to the seafloor, or wastes sent to shore for treatment or disposal) from the pr oposed activities which could impact wetlands.

3. Shore Birds and Coastal Nesting Birds
Accidents: Oil spills could cause impact s to shore birds and coastal ne sting birds. However, it is unlikely that an oil spill would occur from the proposed activities (refer to Item 5 , Water Quality). Given the distance from shore (25.25 miles) and th e response capabilities that would be implemented, no impacts are expected. The activities proposed in this plan will be covered by Walter’s Regional OSRP (refer to information submitted in Appendix I ).

Discarded trash and debris: Coastal and marine birds are highl y susceptible to entanglement in floating, submerged, and beached marine debris: speci fically plastics. Operat ors are prohibited from deliberately discharging debris as mandated by MARPOL-Annex V and the Marine Plastic Pollution Research and Control Act, and regulations impose d by various agencies including the United States Coast Guard (USCG) and the Environmental Prot ection Agency (EPA). Walter will operate in accordance with the regulations and also avoid acci dental loss of solid waste items by maintaining waste management plans, manifesting trash sent to shore, and using special precautions such as covering outside trash bins to prevent accidental lo ss of solid waste. Special caution will be exercised when handling and disposing of small items and pack aging materials, particularly those made of nonbiodegradable, environmentally persistent materials such as plastic or glass.

Informational placards will be posted on vessels and every facility that has sleeping or food preparation capabilities. All offshore personnel, including contractors and other support servicesrelated personnel (e.g. helicopter pilots, vessel captain s and boat crews) will be indoctrinated on wasteWalter Oil & Gas Corporation Page Q

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South Timbalier Block 127 procedures, and will view the video (or Microsoft PowerPoint presentation), “Think About It” ( previously “All Washed Up: The Beach Litter Problem” ). Thereafter, all personnel will view the marine trash and debris training video annually. Offshore personnel wi ll also receive an explanation from Walter management or the designated leas e operator management that emphasizes their commitment to waste management in accordance with NTL No. 2012-G01.

There are no other IPFs (emissions, e ffluents, physical disturbances to the seafloor, or wastes sent to shore for treatment or disposal) from the proposed activities that could cause impacts to shore birds and coastal nesting birds.

4. Coastal Wildlife Refuges
Accidents: An accidental oil spill from the proposed activ ities could cause impacts to coastal wildlife refuges. However, it is unlikely th at an oil spill would occur from the proposed activities (refer to Item

5 , Water Quality). Due to the distance from s hore (25.25 miles) and the re sponse capabilities that would be implemented, no impacts are expected. Th e activities proposed in this plan will be covered by Walter’s Regional OSRP (refer to information submitted in Appendix I ).

Discarded trash and debris: Operators are prohibited from de liberately discharging debris as mandated by MARPOL-Annex V, the Marine Plas tic Pollution Research and Control Act and regulations imposed by various ag encies including the United States Coast Guard (USCG) and the Environmental Protection Agency (EPA). Walter w ill operate in accordance with the regulations and

also avoid accidental loss of so lid waste items by maintaining waste management plans, manifesting trash sent to shore, and using special precautions such as covering outside trash bins to prevent accidental loss of solid waste. Special caution will be exercised when handli ng and disposing of small items and packaging materials, particularly t hose made of non-biodegradable, environmentally persistent materials such as plastic or glass.

Informational placards will be posted on vessels and every facility that has sleeping or food preparation capabilities. All offshore personnel, including contractors and other support servicesrelated personnel (e.g. helicopter pilots, vessel captain s and boat crews) will be indoctrinated on waste procedures, and will view the video (or Microsoft PowerPoint presentation), “Think About It” ( previously “All Washed Up: The Beach Litter Problem” ). Thereafter, all personnel will view the marine trash and debris training video annually. Offshore personnel wi ll also receive an explanation from Walter management or the designated leas e operator management that emphasizes their commitment to waste management in accordance with NTL No. 2012-G01.

There are no other IPFs (emissions, e ffluents, physical disturbances to the seafloor, or wastes sent to shore for treatment or disposal) from the proposed activities that could cause impacts to coastal wildlife refuges.

There are no other IPFs (emissions, e ffluents, physical disturbances to the seafloor, or wastes sent to shore for treatment or disposal) from the proposed activities that could cause impacts to coastal wildlife refuges.Walter Oil & Gas Corporation Page Q

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South Timbalier Block 127 5. Wilderness Areas
Accidents: An accidental oil spill from the proposed activities could cause impacts to wilderness areas. However, it is unlikely that an oil spi ll would occur from the proposed activities (refer to Item

5 , Water Quality). Due to the distance from the n earest designated Wilderness Area (85 miles) and the response capabilities that would be implemented, no significant adverse impacts are expected. The activities proposed in this plan will be covered by Walter’s Regi onal OSRP (refer to information

submitted in Appendix I).

Discarded trash and debris: Operators are prohibited from de liberately discharging debris as mandated by MARPOL-Annex V, the Marine Plas tic Pollution Research and Control Act and regulations imposed by various ag encies including the United States Coast Guard (USCG) and the Environmental Protection Agency (EPA). Walter w ill operate in accordance with the regulations and

also avoid accidental loss of so lid waste items by maintaining waste management plans, manifesting trash sent to shore, and using special precautions such as covering outside trash bins to prevent accidental loss of solid waste. Special caution will be exercised when handli ng and disposing of small items and packaging materials, particularly t hose made of non-biodegradable, environmentally persistent materials such as plastic or glass.

Informational placards will be posted on vessels and every facility that has sleeping or food preparation capabilities. All offshore personnel, including contractors and other support servicesrelated personnel (e.g. helicopter pilots, vessel captain s and boat crews) will be indoctrinated on waste procedures, and will view the video (or Microsoft PowerPoint presentation), “Think About It” ( previously “All Washed Up: The Beach Litter Problem” ). Thereafter, all personnel will view the marine trash and debris training video annually. Offshore personnel wi ll also receive an explanation from Walter management or the designated leas e operator management that emphasizes their commitment to waste management in accordance with NTL No. 2012-G01.

There are no other IPFs (emissions, e ffluents, physical disturbances to the seafloor, or wastes sent to shore for treatment or disposal) fro m the proposed activities that could cause impacts to wilderness

areas.

6. Other Environmental Resources Identified
There are no other environmental resources identified for this impact assessment.

(C) IMPACTS ON PROPOSED ACTIVITIES The site–specific environmental conditions have b een taken into account for the proposed activities. No impacts are expected on the proposed activit ies from site-specific environmental conditions.

(D) ENVIRONMENTAL HAZARDS During the hurricane season, June through November, the Gulf of Mexico is imp acted by an average of ten tropical storms (39-73 mph wind s), of which six become hurricanes ( > 74 mph winds). Due to its location in the gulf, South Timb alier Block 127 may experience hurricane and tropical storm force winds, and related sea currents. These factors can adversely impact the integrity of the operations covered by this plan. A significant storm may presen t physical hazards to operators and vessels, damage exploration or production equi pment, or result in the releas e of hazardous mate rials (includingWalter Oil & Gas Corporation Page Q

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South Timbalier Block 127 hydrocarbons). Additionally, the displacement of equi pment may disrupt the local benthic habitat and pose a threat to local species.

The following preventative measures included in this plan may be implemented to mitigate these impacts:

1. Platform / structure Installation Operator will not conduct platform / stru cture installation opera tions during Tropical

Storm or Hurricane threat.

2. Pipeline Installation Operator will not conduct pipeline installation operations during Tropical Storm or

Hurricane threat.

(E) ALTERNATIVES

No alternatives to the proposed activities were cons idered to reduce environmental impacts.

(F) MITIGATION MEASURES

No mitigation measures other than those required by regulation will be employed to avoid, diminish, or eliminate potential impacts on environmental resources.

(G) CONSULTATION

No agencies or persons were co nsulted regarding potential impact s associated w ith the proposed activities. Therefore, a list of such entities has not been provided.

(H) PREPARER(S)

Evan Connolly J. Connor Consulting, Inc. 16225 Park Ten Place, Suite 700 Houston, TX 77084 (281) 578-3388 evan.connolly@jccteam.com

(I) References

Authors:

American Petroleum Institute (API). 1989. Effects of offshore petroleum ope rations on cold water

marine mammals: a literature re view. Washington, DC: American Petroleum Institute. 385 pp.Walter Oil & Gas Corporation Page Q

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South Timbalier Block 127 Balazs, G.H. 1985. Impact of ocean debris on marine turtles: entanglement and ingestion. In: Shomura, R.S. and H.O. Yoshida, eds. Proceedings, Workshop on the Fate and Impact of Marine Debris, 26- 29 November 1984, Honolulu, HI. U.S. Dept . of Commerce. NOAA Tech. Memo. NOAA-TMNMFS-SWFC-54. Pp 387-429.

Burke, C.J. and J.A. Veil. 1995. Potential benefits from regulatory consideration of synthetic drilling muds. Environmental Assessment Division, Ar gonne National Laboratory, ANL/EAD/TM-43.

Daly, J.M. 1997. Controlling the discharge of syntheti c-based drilling fluid contaminated cuttings in

waters of the United States. U.S. Environmental Protection Agency, Office of Water. Work Plan, June 24, 1997.

Hansen, D.J. 198l. The relative sensitivity of seabird populations in Alaska to oil pollution. U.S. Dept. of the Interior, Bureau of Land Management, Alaska OCS Region, Anc horage. BLM-YK-ES-81-

006-1792.

Laist, D.W. 1997. Impacts of marine debris: entanglem ent of marine life in marine debris including a comprehensive list of species with entanglement a nd ingestion records. In : Coe, J.M. and D.B. Rogers, eds. Marine debris: sources, impacts, and solutions. New Yor k, NY: Springer-Verlag. Pp.

99-139.

Majors, A.P. and A.C. Myrick, Jr. 1990. Effects of noi se on animals: implications for dolphins exposed to seal bombs in the eastern tropical Pacific purse-seine fishery–an annotated bibliography. NOAA Administrative Report LJ-90-06.

Marine Mammal Commission. 1999. A nnual report to Congress – 1998.

Piatt, J.F., C.J. Lensink, W. Butler, M. Ke ndziorek, and D.R. Nysewande r. 1990. Immediate impact of the Exxon Valdez oil spill on marine birds. The Auk. 107 (2): 387-397.

Vauk , G., E. Hartwig, B. Reineking, and E. Vauk- Hentzelt. 1989. Losses of seabirds by oil pollution at the German North Sea coast. Topics in Marine Biology. Ros, J.D, ed. Scient. Mar. 53 (2-3): 749-

754.

Vermeer, K. and R. Vermeer, 1975 Oil threat to bi rds on the Canadian west coast. The Canadian

Field-Naturalist. 89:278-298.

Although not cited, the following were utilized in prepar ing this EIA:

• Hazard Surveys

• BOEM EIS’s:

o GOM Deepwater Operations and Activities. Environmental Assessment. BOEM 2000-001

o GOM Central and Western Planning Areas Sa les 166 and 168 Final Environmental Impact

Statement. BOEM 96-0058.Walter Oil & Gas Corporation Page Q

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South Timbalier Block 127Walter Oil & Gas Corporation Page R -1

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South Timbalier Block 127 APPENDIX R

ADMINISTRATIVE INFORMATION

(A) EXEMPTED INFORMATION DESCRIPTION The proposed bottom-hole locations of the planned wells have been removed from the public information copy of the DOCD as well as any discussions of the ta rget objectives, geologic or geophysical data, and any interpreted geology.

(B) BIBLIOGRAPHY 1. Initial EP for South Timbalier Block 127, Control N-9618.