UNITED STATES GOVERNMENT MEMORANDUM

To: Public Information (MS 5030)

Plans Section, Office of Field Operations (MS 5231)

Public Information copy of Exploration Plan

Control # - N-09674

Type - Initial Exploration Plan

Lease(s) - OCS-G34019 Block - 697 Mississippi Canyon Area

Operator - Petrobras America Inc.

Drill, Complete, & Test - Subsea Well 1

%SJMMTIJQ

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 Description -

Rig Type - Subject: From: May 7, 2013

## P UBLIC INFORMATION COPY

December 2012



## INITIAL EXPLORATION PLAN

Lease Number: OCS

- G 34019

Area/Block: Mississippi Canyon Block 697

Prospect Name: Urca

Offshore: Louisiana

Submitted by: Petrobras America Inc.

10350 Richmond Avenue

Suite 1400 Houston, Texas 77042

Greg ory Roland (713 ) 808

- 2881 groland@petrobras.com

Estimated S tart

- up D ate: September 1, 2013

Authorized Representative: No. Copies Being Submitted:

Melissa Flack Proprietary: 1 Copy & CD J. Connor Consulting, Inc. Public Info: 1 Copy & CD
16225 Park Ten Place, Suite 700
Houston, Texas 77084 For BOEM : (281) 578

- 3388 Plan No. N

- 9674 Melissa.Flack@jccteam.com Assigned to: Mohammed AshfaqMississippi Canyon Block 697 (Control Number N

- 9674) Record of Changes

Date Section Page Revision

12/0 6 /12 All All Initial Plan Submitted

12/17/12 Appendix B 5 Removed referral of Attachment B

- 1 from page

Attachment C

- 4 All Replaced with Well Clearance Letters only

Attachment F

- 1 1 Showing NPDES Permit No. on Attachment

Appendix H 1 Added OSRP Control Number

01/07/13 Attachment L

- 2 Page 1 Added Shorebase , Port Fourchon, to Vicinity M ap Attachment A

- 1 Page 1 Updated Form BOEM

- 0137

04/25 /13 Record of Change 1 Record of Change Reflecting all Amendments and

Additions

Appendix H Page 1

- 2 Amended OSRP modification Submittal Date

, approval date, and Revised WCD Scenario Comparison ChartPETROBRAS AMERICA INC.

INITIAL EXPLORATION PLAN

LEASE OCS

- G 34019

MISSISSIPPI CANYON BLOCK 697

APPENDIX A Plan Contents

APPENDIX B General Information

APPENDIX C Geological, Geophysical Information

APPENDIX D H2S Information

APPENDIX E Biological

, Physical and Socioeconomic Information

APPENDIX F Wastes and Discharge Information

APPENDIX G Air Emissions Information

APPENDIX H Oil Spill s Inf ormation

APPENDIX I Environmental Monitoring Information

APPENDIX J Lease Stipulations Information

APPENDIX K Environmental Mitigation Measures Information

APPENDIX L Support Vessels and Aircraft Information

APPENDIX M Onshore Support Facilities Information

APPENDIX N Coastal Zone Management Act (CZMA) Information

APPENDIX O Environmental Impact Analysis

APPENDIX P Administrative InformationLIST OF ATTACHMENTS

A

- 1 OCS Plan Information Form

A

- 2 Well Location Plat

A

- 3 Bathymetry Map

A

- 4 Pay.Gov Receipt

B

- 1 Nodal Analysis

C

- 1 Structure Contour Maps

C

- 2 3

- D Seismic Lines

C

- 3 Geological Structure Cross Sections

C

- 4 Shallow Hazard Assessment

C

- 5 Stratigraphic Column

C

- 6 Time vs. Depth Tables

E

- 1 Bathymetry and Seafloor Features Map

F

- 1 Pro jected Generated Wastes

L

- 1 Solid and Liquid Waste Transportation

L

- 2 Vicinity Map

N

- 1 Louisiana Coastal Zone Management Consistency Certification

N

- 2 Alabama Coastal Zone Management Consistency CertificationPetrobras America Inc. Page A

- 1 Initial Exploration Plan December 2012 Mississippi Canyon Block 697 (OCS

- G 34019) 

### APPENDIX A

PLAN CONTENTS

( A ) P LAN INFORMATION FORM Petrobras America Inc. (PAI ) acquired the lease for Mississippi Canyon Block 697 in April 2006

under lease number OCS G

- 28021. T he block became segregated and P AI became operator of

lease OCS G

- 34019 in March 2011

. Under this Explo ration Plan, PAI proposes to drill and complete one well on lease OCS

- G34019 . Th is well will be drilled with a drillship MODU , and

is located in approximately 7150 feet of water.

See attached OCS Plan I nformation Form

– Form BOEM

- 0 137 , included as Attachment A

- 1

.

( B ) L OCATION

Included as Attachment A

- 2 is a Well Location Map depicting the proposed surface and bottom

location of the proposed well

. Included as Attachment A

- 3 is a bathymetry map showing the water depths across the lease block.

( C ) S AFETY AND POLLUTION PREVENTION FEATURES There are no proposed new or existing facilities that will be utilized for these operations. A description of the drilling unit is included on the OCS Plan Information Form. Rig specifications will be made part o f the Application for Permit to Drill.

Petrobras America Inc. will drill this well with a drillship which is equipp ed with a Subsea BOP

. Once a rig is contracted, BOP information and schematics will be included as a part of the Application for Permit to Drill.

Safety features on the drilling unit will include well control, pollution prevention, and blowout prevention equipment as described in BSEE regulations 30 CFR 250 C, D, E and O; and as further clarified by BSEE Notices to Lessees, and current polic y making invoked by the BSEE, Environmental Protection Agency and the U.S. Coast Guard. Appropriate life rafts, life jackets, 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

) S TORAGE TANKS AND/OR PRODUCTION VESSELS All facility tanks of 25 barrels or more.

Type of Storage Tank Type of Facility Tank Capacity (bbls) Number

of Tanks Total Capacity

(bbls) Fluid Gravity (API)

Fuel Oil (Marine Diesel) Drillship 478 2 956 50°

Fuel Oil (Marine Diesel) Drillship 11,982 2 23,964 50°Petrobras America Inc. Page A

- 2 Initial Exploration Plan December 2012 Mississippi Canyon Block 697 (OCS

- G 34019)

Fuel Oil (Marine Diesel) Drillship 6,434 2 12,868 50°

Fuel Oil (Marine Diesel) Drillship 259 1 259 50°

Base Oil Drillship 1 1 5032 45°

( E

) A DDITIONAL MEASURES

PAI does not propose additional safety, pollution prevention, or early spill detection measures beyond those required by 30 CFR Part 250 and Part 550

.

(F ) COST RECOVERY FEE

Included as Attachment A

- 4 is a pay.gov receipt in the amount of $ 3,442.00 to cover operations proposed in this plan.U.S. Department of the Interior OMB Control Number: 1010-0151 Bureau of Ocean Energy Management OMB Approval Expires: 12/31/2014
OCS PLAN INFORMATION FORM

General Information

Type of OCS Plan: Exploration Plan (EP) Development Operations Coor dination Document (DOCD)

Company Name: BOEM Operator Number:

Address: Contact Person:

Phone Number:

E-Mail Address:

Lease(s): Area: Block(s): Project Name (If Applicable):

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

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 platfo rm 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 Conser vation Information Document to accompany this plan? Yes No

Do you propose to use new or unusual t echnology to conduct your activities? Yes No

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

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

Have all of the surface locations of your proposed activ ities been previously reviewed and approved by BOEM? Yes No

Tentative Schedule of Proposed Activities

Proposed Activity Start Date End Date No. of Days

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 (December 2011 - Supersedes all previous editions of fo rm BOEM-0137 which may not be used.) Page 1 of 2Proposed Well/Structure Location

Well or Structure Name/Number (If rena ming well or structure, reference previous name): Subsea Completion

Anchor Radius (if applicable) in feet: Yes No

Surface Location Bottom-Hole Location (For Wells)

Lease No. OCS OCS

Area Name

Block No.

Blockline
Departures
(in feet) N/S Departure: F L N/S Departure: F L

E/W Departure: F L E/W Departure: F L

Lambert X-Y

coordinates X: X:

Y: Y:

Latitude/ Longitude Latitude Latitude

Longitude Longitude

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

Anchor Locations for Drilling Rig or Construction Barge ( If anchor radius supplied 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 Act 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 Pl an 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 proprietar y data according to the Freedom of Info rmation 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 valid 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 and Development Operations

Coordination Documents. We estimate th at burden to average 600 hours per re sponse, 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, gathering and maintaining data, and co mpleting 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 Officer, Bureau of Ocean Energy Manageme nt, 381 Elden Street , Herndon, VA 20170. 2

OCS PLAN INFORMATION FORM ( CONTINUED ) Include one copy of this page for each proposed well/structure

FORM BOEM-0137 (December 2011 - Supersedes all previous editions of fo rm BOEM-0137 which may not be used.) Page 2 of 2OCS-G-34020PETROBRASOCS-G-32343NOBLEOCS-G-28018PETROBRASOCS-G-28019PETROBRASOCS-G-34019PETROBRASOCS-G-28022NOBLEOCS-G-31524NOBLEMC697MC741MC654MC698MC742MC653OCS-G-28021NOBLECOLOR SHADED BATHYMETRY MAP"URCA"PROSPECTBLOCK 697 (OCS-G-34019) and VicinityMISSISSIPPI CANYON AREA-6910-6920-6930-6940-6950-6960-6970-6980-6990-7000-7010-7020-7030-7040-7050-7060-7070-7080-7090-7100-7110-7120-7130-7140-7150-7160-7170-7180-7190-7200-7210-7220-7230-7240-7250-7260-7270-7280-7290Depth in feetNOTE: All AUV field data acquired Dec. 18-20, 2008.Survey vessels:M/VMiss Ginger, C-Surveyor IIINADCON version 2.1 utilized for WGS84-NAD27 conversions.Navigation trackline with name and direction run, fix and fix numberContour interval = 10 feetZero datum = Mean Sea LevelNote: Line spacing resulted in ~75 meter (246 feet) gap between tracklines.Multibeam Processing SequenceBin size = 6 meters (20 feet) within swath coverageMedian filter appliedWater column velocity corrections appliedTide corrections applied using Goddard Ocean Tide Model GOT99.2Produced 20 feet x 20 feet triangulated-gridded dataset to fill in gapsColor shaded imageSun azimuth = 0°Sun elevation = 30°Bathymetric contours (in feet)OCS-G-32343NOBLEMC697MC698MC741MC742OCS-G-34020PETROBRASOCS-G-31524NOBLEOCS-G-34019PETROBRASOCS-G-28021NOBLEOCS-G-28022NOBLEBathymetric contours (in feet)AUV navigation tracklines with name and direction run, fix and fix numberNOTE: All AUV field data acquired Dec. 18-20, 2008.Survey vessels:M/VMiss Ginger, C-Surveyor IIINADCON version 2.1 utilized for WGS84-NAD27 conversions.Depth in feetContour interval = 10 feetZero datum = Mean Sea LevelNote: Line spacing resulted in ~75 meter (246-foot) gap between tracklines.Multibeam Processing SequenceBin size = 6 meters (20 feet) within swath coverageMedian filter appliedWater column velocity corrections appliedTide corrections applied using Goddard Ocean Tide Model GOT99.2Produced 20 feet x 20 feet triangulated-gridded dataset to fill in gapsColor shaded imageSun azimuth = 0°Sun elevation = 30°-6950-6960-6970-6980-6990-7000-7010-7020-7030-7040-7050-7060-7070-7080-7090-7100-7110-7120-7130-7140-7150-7160-7170-7180-7190-7200-7210-7220-7230-7240-7250-7260-7270-7280SITE CLEARANCECOLOR SHADED BATHYMETRY MAPPROPOSED WELL No. 1BLOCK 697 (OCS-G-34019)MISSISSIPPI CANYON AREAPetrobras America Inc. Page B

- 1 Initial Exploration Plan December 2012 Mississippi Canyon Block 697 (OCS

- G 34019) 

### APPENDIX B

GENERAL INFORMATION

( A) A PPLICATIONS AND PERMITS

Listed in the table below are additional permits/applications to be filed before operations can

commence under this EP:

Application/Permit Issuing Agency Status Application for Permit to Drill B SEE Not yet submitted

( B ) DRILLING FLUIDS

Type of Drilling Fluid Estimated Volume of Drilling Fluid to be Used per Well

Water

- based

– Barite, Sodium Chloride Brine, Salt, Xantham Gum, Poly Plus, Lime, Poly Pac UL, Caustic Soda, Defoam X,

Greencide 25g 82,000 bbls water base mud

Oil

- based (diesel, minerals

, oil) 0 bbls Synthetic

- based (internal olefin, ester) Barite, Suremul, Surewet, Rheflat, Rhethik, Ecotrol RD, Rheduce, Rhebuild , Lime, Calcium Chloride, Vg Plus, Vg Supreme, Calcium Carbonate, G

- Seal, Nut Plug, Vinseal 3,200 Synthetic

– based mud

( C ) N EW OR UNUSUAL TECHNOLOGY

PAI does not propose to use any new or unusual technology to carry out the proposed exploration activities.

( D) B ONDING STATEMENT The bond requirements for the activities and facilities proposed in this EP are satisfied by a $3, 000,000.00 areawide development bond, furnished and maintained according to 30 CFR 5 56, subpart I; NTL No. 2000

- G16, "Guidelines for General Lease Surety Bonds;" and additional security under 30 CFR 5 56.53(d) and National NTL No. 2008

- N07 , “Supplemental Bond

Procedures.”

( E

) O IL SPILL FINANCIAL RESPONSIBILITY (OSFR)

Petrobras America Inc.

, BOEM company number 01207 has demonstrated oil spill financial responsibility for the facilities proposed in th is EP according to 30 CFR Part 5 53; and NTL No.

2008

- N05 , "Guidelines for Oil Spill Financial Responsibility for Covered Facilities".Petrobras America Inc. Page B

- 2 Initial Exploration Plan December 2012 Mississippi Canyon Block 697 (OCS

- G 34019) ( F

) D EEPWATER WELL CONTROL STATEMENT

Petrobras America Inc.

, BOEM company number 01207 has the financial capability to drill a relief well and conduct other emergency well control operations.

( G ) B LOWOUT SCENARIO

Estimated flow rate

– The calculated Worst Case Discharge estimate for Mississippi Canyon Block 697 is 132,975 bbls of oil.

Potential for the Well to Bridge over: The Late Miocene (Serravallian) reservoirs expected to be encountered in the Urca prospect are deepwater turbidite channel and lobe san ds with assumed water drive mechanism. Although the flow rate is likely to decline over the duration of a blowout, for WCD purposes we have used a constant flow rate of 132,975 barrels per day with no decline. Using this conservative approach

to the WCD ca lculations, the reservoirs also are considered very unlikely to bridge over due to the high compressive strength of the rocks.

Likelihood of Surface Intervention: In the unlikely event of a “kick” or loss of well control event, surface intervention, defin ed as the

normal well control methods which include wellbore fluid control or overbalance, diverter and BOP operations to shut

‐ in the well from the surface will be the primary response. The present well design is based on predicted pore pressure and fractu re gradient estimates derived from the best available data. The well design in conjunction with actual pore pressure, actual fluids and actual fracture gradients encountered will dictate the use of either the Cap and Stack or Cap and

Flow method to regain control of the well. The assumption that the well can be shut

‐ in with the present well design and selected BOP is based on predicted measurements of the pore pressure,

fluids and fracture gradients. Relief well planning will commence in conjunction with th e subsea capping efforts.

Arrangements for Drilling Relief Wells / Estimated Blowout Duration: Should surface intervention prove unsuccessful, PAI has evaluated two additional potential

scenarios to kill a blowout, seafloor intervention and a relief well. This would involve subsea

intervention in the form of ROV control of the BOP stack via hot stabs, a shut off device mounted on the BOP stack or LMRP, or diverting flow to a surface vessel. Seafloor intervention

wou ld take an estimated 10 days to kill the well, which would result in a total discharge volume of 2.65MM barrels of oil. In parallel with this operation, a rig will be mobilized (approximately 20 deepwater rigs capable of this water depth and hook loads cur rently work in the GOM) to drill a relief well, estimated to be 14 days to contract, 14 days to mobilize and 69 days to kill the well

as Shown in Table 1

, which would result in a total discharge volume of 12.89MM barrels of oil.Petrobras America Inc. Page B

- 3 Initial Exploration Plan December 2012 Mississippi Canyon Block 697 (OCS

- G 34019) Table 1: Timeline for drilling a relief well

Operation Minimum Time Required Maximum Time Required

Contract a rig 0 14

MOB 7 14 Riserless Operations 7 14 Drilling Operations 30 45

Kill Operations 3 10

Total Days 47 97

Rig Type Capable of Drilling a Relief Well / Rig Package Constraints: Should a relief well be required, a deepwater rig currently located in the GOM would be

contracted to drill the relief well. As of November 2010, there are approximately 20 rigs in the GOM capable of drilling an Urca relief well. T he rig must be capable of drilling to a depth of

1 8,000 feet in a water depth of 7,150 feet. This rig will be a rig of no constraints. There are no

p latforms or other structures in the vicinity for drilling a relief well. PAI expects to have a 2

‐ rig operation by the end of 2012, with a rig operating in the Cascade/Chinook Field while the other is operating at the Urca Prospect

.

The requirements for dynamically positioned rigs include both a deadman system to shut

‐ in the

well in the event of compl ete loss of communication to the subsea Blowout Prevention Equipment (BOPE) and an autoshear system to shut

‐ in the well in the event of an accidental disconnect. ROV hot stabs will be in place and function tested to ensure that they are capable of closing one pipe ram, clos ing the blind shear ram, and unlatch ing the LMRP.

In the event of a blowout, the 97

‐ day window may be necessary to secure a rig, mobilize to the location, drill the relief well and kill the blowout well as shown on Table 1 . PAI will work with specific partners and industry to develop rig

‐ sharing agreements to allow faster mobilization in the event of an emergency.

Measures to Enhance the Ability to Prevent a Blowout: Well Control Training PAI requires certified well control training for drilling supervisors, operations superintendents, drilling engineers, and the drilling contractor requires training for tool pushers, drillers & assistant drillers, floor hands, and other appropriate personnel through an operations training program with a professional organization and in accordance with BSEE/BOEM requirements. The curriculum consists of training in blowout prevention technology and well control. Successful completion results in participant certification.Petrobras America Inc. Page B

- 4 Initial Exploration Plan December 2012 Mississippi Canyon Block 697 (OCS

- G 34019) Inspection of Well Control Equipment The rig and its equipment will have undergone a comprehensive inspection and testing program

pursuant to 30 CFR 250 “Increased Safety Measures for Energy Development in the OCS”;

Final Rule October 14, 2010. Routine functional and pressure testin g during future drilling and completion operations will be conducted in compliance with PAI and BSEE/BOEM requirements.

Measures to reduce the likelihood of a Blowout: Well Control during Drilling Operations Effective well control during drilling and comp letion reduces the likelihood of a blowout and

relies on a number of interrelated processes and procedures. The drilling or completion fluid provide Primary Well Control during operations with the fluid density providing hydrostatic pressure on the wellbor e which exceeds the pore pressures within the drilled or open hole formations. This overbalance prevents fluid flow from the pore space in the formation to flow

into the wellbore. Subsea

‐ mounted BOPE will provide Secondary Well Control during drilling or

c ompletion operations. In the event that primary well control is lost, the BOPE will contain the

influx out of the wellbore.

Well Control drills/exercises are an integral part of the rig teams training and will be performed

on a frequent basis to ensure th e human element is prepared, and the well can be shut in quickly

and properly. Certified training of Gulf of Mexico personnel will include hands

‐ on simulator practice at recognizing kicks, well shut

‐ in, and circulating the kicks out of the wellbore. Well

s pecific shut

‐ in procedures will be posted on the rig.

Well Control Monitoring and Procedures Automatic and manual monitoring equipment will be installed to detect abnormal variation in the

mud system volumes and drilling parameters. If an influx of formation fluid into the wellbore
occurs, the BOPE will be used to immediately shut

‐ in the well. The well will be drilled

a ccording to a location specific pore pressure profile and detailed safe mud weight envelope. Too low of a mud weight could result in an under

‐ balance in the well, and an influx of formation fluids. Conversely, too high of a mud weight may result in lost circulation to a weak formation, which could lead to a drop in fluid level (total hydrostatic column) resulting in an underbalanced

con dition. The mud weight envelope is designed to provide the proper balance for well control for the formation and pore pressure encountered.

Measures to Enhance Ability to Conduct Effective and Early Intervention in the Event of a

Blowout:

In case an uncon trolled influx of formation fluid (water or hydrocarbon), or “Kick” does occur, Secondary Well Control methods will be employed, i.e., the kick is quickly detected, the pumps

a re turned off, the annulus will be shut in using the annular, the drill pipe pos itioned relative to the annular, and the annulus isolated. The internal barrier in the Drill Pipe is a downhole check

valve near the bit and a surface

‐ mounted valve. These barriers will contain the influx and any

associated build

‐ up of surface pressure. It will also prevent further influx of formation fluid into

the wellbore.Petrobras America Inc. Page B

- 5 Initial Exploration Plan December 2012 Mississippi Canyon Block 697 (OCS

- G 34019) To kill an influx, surface pressures will be allowed to stabilize and then the SIDP (Shut In Drill Pipe) and SICP (Shut In Casing Pressure) are measured. These pressures will enable t he

c alculation of the new killweight mud density needed to regain primary well control. A standard

well

‐ kill procedure will be implemented to circulate the kill

‐ weight mud and safely remove

formation fluids from the hole. Mud gas separators and degassers w ill be used to safely remove gas from the mud as it is circulated out of the hole. After this procedure is completed, the kill

effectiveness will be confirmed and the well will be circulated around, the BOPE opened up and the fluid levels monitored. Drilling operations will resume when the well has been brought under

control a nd a static condition exists.Petrobras America Inc. Page C

- 1 Initial Exploration Plan December 2012 Mississippi Canyon Block 697 (OCS

- G 34019) 

### APPENDIX C

G EOLOGICAL AND GEOPHYSICAL INFORMATION

( A ) G EOLOGICAL DESCRIPTION Proprietary Information.

( B ) S TRUCTURE CONTOUR MAP S Proprietary Information.

( C ) I NTERPRETED 3

- D S EISMIC LINE (S) Proprietary Information.

( D

) G EOLOGICAL STRUCTURE CROSS

- SECTIONS Proprietary Information.

( E

) S HALLOW HAZARDS REPORT A shallow hazards survey was conducted over Mississippi Canyon Block 697 by C&C

T echnology on behalf of PAI in December 2008.

One hard copy and one CD of the Shallow Hazard Report and Archaeological Survey, along w ith the Site Clearance Report are being submitted to the BOEM under separate cover.

( F

) S HALLOW HAZARDS ASSESSMENT Utilizing the 3D seismic exploration data, a shallow hazards assessm ent was prepared for the proposed surface locations, and is included as Attachment C

- 4

.

( G ) H IGH

- RESOLUTION SEISMIC LINES Proprietary Information.

( H

) S TRATIGRAPHIC COLUMN Proprietary Information.

( I

) TIME VS DEPTH TABLES Proprietary Information.MC697 Well No. 1 Site Clearance Letter 10615 Shadow Wood Drive, Houston, TX 77043 Job No. 120932 1 November 14, 2012

Petrobras America, Inc. 10350 Richmond Ave., Suite 1400
Houston, TX 77042

713-808-2770

Attn: Mr. David Huff

Site Clearance Letter Proposed Well No. 1 Surface Location Block 697 (OCS-G-34019), Mississippi Canyon Area

Petrobras America Inc. (Petrobras) contracted C & C Tech nologies, Inc. (C&C) to prepare a well site clearance

letter for the drilling location of the proposed Well No. 1 in Block 697 (OCS-G-34019), Mississippi Canyon (MC)

Area. The data used for the site cl earance letter include a high-resolution ge ophysical dataset acquired with C&C’s

C-Surveyor III TM Autonomous Underwater Vehicle (AUV) in December 2008 and an exploratio n-quality 3D seismic

volume, collected by TGS-NOPEC in March of 2003, provided by Petrobras. C&C completed the geohazard report

titled “Archaeological and Shallow Hazar d Report, “Urca” Prospect, Block 697 and Vicinity, Mississippi Canyon

Area” This site clearance letter is based on findings provided within that report.

This letter provides a tophole drilling prognosis and addresse s seafloor conditions to meet current regulations. The

reporting and mapping presented in this letter comply w ith the Bureau of Ocean Energy Management (BOEM) and

the Bureau of Safety and Environmen tal Enforcement (BSEE) guidelines pr ovided in NTL No. 2008-G05 (Shallow

Hazards Program), NTL No. 2009-G40 (Deepwater Benthi c Communities), NTL No. 2 005-G07 (Archaeological

Resource Surveys and Reports), and NTL No. 2011-Joint-G01 (Revisions to the List of OCS Lease Blocks

Requiring Archaeological Resource Surveys and Reports). The depth limit of the investigation is approximately two

seconds of two-way traveltime below the seafloor. Seafloor conditions are addr essed to assess the impact of drilling

activities on potential deepwater benthic communities within a 2,000-foot radius of the proposed surface location.

WELL LOCATION

The geodetic datum is the North American Datum of 1927 (NAD 27) on the Clarke 1866 Ellipsoid. The projection

is the Universal Transverse Mercator (UTM), Zone 16 North (16N) with a cen tral meridian at 87° 00' W, a false

easting of 1,640,416.67 feet at the central meridian, and a false northing of 0.00 feet at 00° 00' N. Units are in US

survey feet. The surface location of th e proposed MC697 Well No. 1 is displa yed on the enclosed maps (Sheets 1

through 6). Figure 1 consists of a wavelet and an amplitude spectrum showing the frequency content versus the

amplitudes of the data collected at the proposed drill center.MC697 Well No. 1 Site Clearance Letter 10615 Shadow Wood Drive, Houston, TX 77043 Job No. 120932 2 The coordinates of the proposed surface location and bottom hole locations for proposed Well No. 1 and calls from

Block MC697 are tabulated below:

Well No. 1 Block Coordinates Latitude Longitude Calls From Block 697 Mississippi Canyon Easting Northing

Surface 697 1,277,877 ′ 10,271,889 ′ 28° 18' 03.253" N 88° 07' 37.056" W 7,569 ′ FSL 5,163 ′ FEL

Bottom 697 1,278,890 ′ 10,272,755 ′ 28° 18' 11.923" N 88° 07' 25.812" W 7,405 ′ FNL 4,150 ′ FEL

BATHYMETRY AND SEAFLOOR GRADIENTS

The water depth at the proposed Well No. 1 surface location is 7,161 feet below sea le vel (BSL) (Sheet 1, Color

Shaded Bathymetry Map). Water depths within the 2,000-foot radius range from 7,128 feet BSL in the northwest to

7,176 feet BSL in the southeast. The seafloor is generally undulating in the vicinity of the proposed well location.

The seafloor at the proposed well site slopes southeast at a gradient of less than 1° (Sheet 2, Seafloor Gradient Map).

SEAFLOOR HAZARDS

Seafloor amplitudes from 3D seismic data (Sheet 3, S eafloor Amplitude Map) and sonar imagery from AUV data

(Sheet 4, Side Scan Sonar Mosaic Map) exhibit a seafloor of relatively low-amplitude reflection within the

2,000-foot radius, suggesting the seafloor consists mostly of fine-grained sediments.

Eleven unidentified sonar contacts were recorded within the archaeological and hazard assessment area but only one

occurs within the 2000-foot drilling radius of the proposed Well No. 1 (Sheet 5, Seafloor Features and Hazard Map).

Sonar Contact No. 6 occurs 1,104 feet west of the proposed surface location and measures 12.9 feet long, 5.3 feet wide,

with no measurable height (Sheet 5, Seafloor Features and Hazard Map). This contac t should be avoided by all

development activities by a minimum of 100 feet. Sona r Contact No. 6 is not recommended for avoidance based on

archaeological potential. No other sonar contacts occur within 2,000 feet of the proposed Well No. 1 surface location.

There are no fault scarps within 2,000 feet of the proposed Well No. 1 surface location.

No sonar contacts or areas are recommended for investigation or avoidance on the basis of archaeological potential.

POTENTIAL DEEPWATER BENTHIC COMMUNITIES

Examination of side scan sonar imagery (Sheet 4, Side Scan Sonar Mosaic Map) and the 3D seafloor amplitudes

(Sheet 3, Seafloor Amplitude Map) sh ows no evidence of hydrocar bon seepage or surficial high-amplitude areas that

might support high-density deepwater benthic communities within 2,000 feet of the proposed Well No. 1 location.MC697 Well No. 1 Site Clearance Letter 10615 Shadow Wood Drive, Houston, TX 77043 Job No. 120932 3 MAN-MADE HAZARDS

A review of the C&C and BOEM databases shows no existi ng wells, pipelines, cables, or any other man-made

infrastructure occur within the 2,000-foot drilling radius (Sheet 5, Seafloor Features and Hazard Map).

SUBSURFACE FEATURES

The approximately 185 feet of the uppermost AUV subbottom profile consist of continuous, stratified reflectors of

varying amplitudes, representing hemipela gic clays interlaced with fine-grained turbidites (Figure 2). Below the

stratified layer, a series of mass transport deposits is eviden t to the limit of the subbottom profiler penetration. 3D

seismic data were used to assess subsurface geol ogy deeper than the AUV penetration depth.

Using the 3D seismic data, seven stratigraphic units of distin ct seismic character were assessed (Figures 3 and 4). A

detailed description of the sequence units can be found in the Archaeological and Shallow Hazard Report. Petrobras

provided C&C with a check shot survey data elevation used to derive the total vertical depth (TVD) in feet from the

corresponding two-way traveltime in seconds from an analog well. An equation derived from the check shot survey

data was used to calculate structure depth below sea level:

Y = 185.5T 2 + 1990T

where Y = depth below sea level in feet, and T = two-way traveltime in seconds.

One buried fault crosses the wellbore around 3,233 feet BSF (3.845 seconds TWT) (Sheet 6, Subsurface Features

and Hazard Map). Proper precautions should be taken when drilling through this unit.

The upper 525 feet (2.928 to 3.015 seconds TWT BSL) of th e proposed wellbore (Unit A) consists of parallel, low

amplitude reflectors that are suggestive of hemipelagic clay interbedded with fine-grained turbidites (Figures 3 to 5).

Unit B occurs between 525 and 612 feet BML (3.015 to 3.043 seconds TWT BSL) and consists of parallel, moderate

amplitude reflectors. The sediments are interpreted as sand sheets. Unit C occurs approximately 612 to 904 feet

BML (3.043 to 3.136 seconds TWT BSL) and consists of pa rallel, low amplitude reflectors interpreted as mud-rich

turbidite deposits. Unit D occurs between 904 and 1,407 feet BML (3.136 to 3.294 seconds TWT BSL) and exhibits

parallel, low to moderate amplitude reflectors. This unit is interpreted as channel fills with some sands. Unit E

occurs between 1,407 and 2,467 feet BML (3.294 to 3.618 seconds TWT BSL) and consists of parallel to

sub-parallel, moderate to high amplitude reflectors interprete d as mass transport deposits and channel fills with some

sands. Unit F occurs 2,467 to 3,288 feet BML (3.618 to 3.861 seconds TWT BSL) and consists mostly of low

amplitude, subparallel reflectors interpreted as channel f ills and clay-prone mass transport deposits. Unit G occurs

between 3,288 and 4,883 feet BML (3.861 and 4.316 seconds TWT) and is comprised of variable amplitude,

subparallel to chaotic reflectors interpreted as cha nnel fills and clay-prone mass transport deposits.MC697 Well No. 1 Site Clearance Letter 10615 Shadow Wood Drive, Houston, TX 77043 Job No. 120932 4 No amplitude anomalies occur within 246 feet (75 mete rs) of the proposed Well No. 1 surface location (Sheet 6,

Subsurface Features and Hazard Map).

SHALLOW GAS

Anomalies of very high amplitude are interpreted as potential intervals of fluid/gas saturation usually associated

with porous sands. Interval amplitude anomalies were produced utilizing a Vatmin SMT function with envelopes

ranging from 10 milliseconds below each picked horizon (including seafloor) to 10 milliseconds above the next

horizon. Seismic amplitude anomalies in Units A thr ough G are exhibited on the Su bsurface Features and Hazard

Map (Sheet 6).

Shallow gas potential is represented in the Tophole Prognosis Diagram in Figure 4. Units A, B, C, and D are

assessed as having a low risk of gas hazards. Units E, F, and G are assessed as having a moderate risk of gas.

SHALLOW WATER FLOWS (SWF)

Shallow water flows (SWF) are overpressu red, unconsolidated sands that are en countered in the tophole sections of

some wells drilled in the deepwater areas of the Gulf of Mexico. Sands with SWF potential often lie below a seal

that prevents dewatering and compaction after deposition and form in unconsolidated and overpressured sands. The

pressure rises with overburden causing a potentially hazardous condition for drilling operations. Some SWF

intervals have proven difficult or impossible to detect on seismic profiles.

Two SWFs are recorded approximately 4.5 miles west-northwest and 9.5 miles northwest of the study area at depths

of 1,971 feet and 1,246 feet BML in MC696 and MC607, respectively. Both events resulted in a low severity SWF,

and the well integrity was maintained.

Unit A is assessed as having a negligible risk of SWF (Fi gure 5). Units C and G indicate a low risk of shallow water

flow. Possible sheet sands with high amplitudes in Unit B (525–612 feet BML or 3.015–3.043 seconds TWT BSL),

Unit D (904–1,407 feet BML or 3.136–3.294 seconds TWT BSL), Unit E (1,407–2,467 feet BML or 3.294–3.618

seconds TWT BSL), and Unit F (2,467–3,288 feet BML or 3.618–3.861 seconds TWT BSL) are assessed as having

a moderate risk of SWF.

CONCLUSIONS

The water depth at the proposed Well No. 1 surface locati on is 7,161 feet below MSL. The seafloor is generally

undulating in the vicinity of the proposed well location. The seafloor at the proposed well site slopes southeast at a

gradient of less than 1°.MC697 Well No. 1 Site Clearance Letter 10615 Shadow Wood Drive, Houston, TX 77043 Job No. 120932 5 One sonar contact, Sonar Contact No. 6, occurs 1,104 feet west of the prop osed Well No. 1 surface location. No

wells, pipelines, cables, or any other man-made infrast ructure occur within the 2,000-foot drilling radius.

No fault scarps occur within 2,000 feet of the proposed Well No. 1 location.

There are no areas of high backscatter or high seafloor amplitudes within the 2,000-foot drilling radius. Potential

impacts to deepwater benthic communities are considered very low.

One buried fault intersects the proposed well bore at approximately 3,233 feet BSF (3.845 seconds TWT). Proper

precautions should be taken when drilling through this unit.

No seismic amplitude anomalies occur within 246 feet of the proposed well location.

Units A, B, C, and D are assessed as having a low risk of gas, and Units E, F, and G are assessed as having a

moderate risk of gas.

Unit A has a negligible risk of shallow water flow. Units C and G have a low risk of SWF. Units B, D, E, and F show

possible sand sheets with high-amplitude reflectivity that suggests a moderate risk of SWF.

No sonar contacts or areas are recommended for investigation or avoidance on the basis of archaeological potential.

Thank you for this opportunity to be of service. Please contact us if you have any questions concerning this

assessment.

Sincerely,

Mary Brookshire Dan Warren Marine Geologist Senior Marine Archaeologist

C&C Technologies, Inc.

Office: 713-468-1536

Direct: 832-468-4729

Fax: 713-468-1115

Enclosures

Figure 1. Wavelet and amplitude spectrum from Cr ossline 10101, 2.81 8–4.317 seconds, traces 9810–10360.MC697 Well No. 1 Site Clearance Letter 10615 Shadow Wood Drive, Houston, TX 77043 Job No. 120932 6 Figure 2. Subbottom profiler line 114 showing parallel reflectors and mass transport deposits along the well path.

Figure 3. Seismic Inline 11080 th rough the Well No. 1 surface location.

Figure 4. Seismic Crossline 10101 through the Well No. 1 surface location.

Figure 5. Tophole Prognosis chart for proposed Well No. 1 in Block 697, Mississippi Canyon Area.

Sheet 1 Color Shaded Bathymetry Map

Sheet 2 Seafloor Gradient Map

Sheet 3 Seafloor Amplitude Map

Sheet 4 Side Scan Sonar Mosaic Map

Sheet 5 Seafloor Features and Hazard Map

Sheet 6 Subsurface Features and Hazard Map

Reference No. 120932MC697 Well No. 1 Site Clearance Letter10615 Shadow Wood Drive, Houston, TX 77043Job No. 1209327Figure 1. Wavelet and amplitudespectrum from Crossline10101, 2.818–4.317 seconds, traces 9810–10360.MC697 Well No. 1 Site Clearance Letter10615 Shadow Wood Drive, Houston, TX 77043Job No. 1209328Figure 2. Subbottom profiler line 114 showing parallel reflectors and mass transport deposits along the well path.MC697 Well No. 1 Site Clearance Letter10615 Shadow Wood Drive, Houston, TX 77043Job No. 1209329Figure 3. Seismic Inline 11080 through the Well No.1 surface location.MC697 Well No. 1 Site Clearance Letter10615 Shadow Wood Drive, Houston, TX 77043Job No. 12093210Figure 4. Seismic Crossline 10101through the Well No. 1 surface location.MC697 Well No. 1 Site Clearance Letter10615 Shadow Wood Drive, Houston, TX 77043Job No. 12093211Figure 5. Tophole Prognosis chart for proposed Well No. 1 in Block 697, Mississippi Canyon Area.Petrobras America Inc. Page D

- 1 Initial Exploration Plan December 2012 Mississippi Canyon Block 697 (OCS

- G 34019) 

### APPENDIX D

HYDROGEN SULFIDE INFORMATION

( A ) C ONCENTRATION

PAI does not anticipate encountering any H 2 S during the proposed operations.

( B ) C LASSIFICATION

In accordan ce with Title 30 CFR 250.490(c)

, PAI requests that Mississippi Canyon Block 697 be classified by the B SEE as H 2 S absent

.Petrobras America Inc. Page E

- 1

Initial Exploration Plan December 2012 Mississippi Canyon Block 697 (OCS

- G 34019) APPENDIX E

BIOLOGICAL

, PHYSICAL AND SOCIOECONOMIC INFORMATION

(A ) DEEPWATER BENTHIC COMMUNITIES Activities proposed in this EP will disturb seafloor areas in water depths of 300 m eters (984 feet) or greater; therefore, information as outlined in Attachment A o f NTL No. 2009

- G40, “Deepwater B enthic Communities”, is provided below. PAI will avoid all high

- density deepwater benthic communities by 2,000 feet from the proposed mud and cuttings discharge

location and 250 feet from the location of all other seafloor disturbances.

MAPS

Attached to this EP is a map ( s ) prepared using 3

- D seism ic data depicting seafloor and shallow geological features and areas, and the surface location ( s ) of the proposed well ( s ) with a radius

circle of 2000 feet around the well. The map is included as Attachment E

- 1.

ANALYSIS Mississippi Canyon Block 697 well location No.1 Using 3

- D seismic information, all seafloor features and areas that could be disturbed by the activities proposed in this plan have been identified. The likelihood of these proposed activities disturbing these seafloor and shallow geologic f eatures is discussed in the following summary:

Well Location 1 : Features or areas that could support high

- density deepwater benthic

communities are not located within 2000 feet of any proposed muds and cuttings discharge

location. The statement letter f or the proposed well is included on page 2 of the Site Clearance

Letter included in Attachment C

- 4.

( B ) T OPOGRAPHIC FEATURES MAP

Activities proposed in this EP do not fall within 305 meters (1000 feet) of a topographic “no activity zone” , therefore no map is required

.

(C) TOPOGRAPHIC FEATURES STATEMENT (SHUNTING) All activities proposed under this EP will be conducted outside all Topographic Feature

Protective Zones; therefore

, shunting of drill cuttings and drilling fluids is not required

.

(D) LIVE BOTTOMS (PINNACLE TREND) MAP Mississippi Canyon Block 697 is not located within 61 meters (200 feet) of any pinnacle trend feature; therefore

, a live bottom bathymetric map is not required.

(E) LIVE BOTTOMS (LOW RELIEF) STIPULATION Mississippi Can yon Block 697 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.Petrobras America Inc. Page E

- 2

Initial Exploration Plan December 2012 Mississippi Canyon Block 697 (OCS

- G 34019) (F) POTENTIALLY SENSITIVE BIOLOGICAL FEATURES Mississippi Canyon Block 697 is not located within 30 meters (100 feet) of potentially sensitive biological features; therefore, biologically sensitive area maps are not required.

(G) REMOTELY OPERATED VEHICLE (ROV) SURVEYS Mississippi Canyon Block 697 falls within Grid No. 17, an area which BOEM classifies as having inadequate ROV coverage.

Pursuant to NTL No. 2008

- G06, operators may be required to conduct remote ly operated vehicle (ROV) surveys during pre

- spudding and post

- drilling operations for the purpose of biolog ical and physical observations.

If required, surveys will be conducted immediately prior and upon completion of drilling operations

.

A rig based ROV equipped with video imaging capabilities will be used. The survey pattern will

consist of six transects centered on the well location with tracks extending approximately 100 meters away from the well on bearings of 30 degrees, 90 degrees, 150 degrees, 210 degrees, 270 degrees and 330 degrees. The seafloor will be videotaped continuously along each track.

Biological and physical observations as described in the subject NTL and Form BOEM

- 0 141 will be made prior to commencing drilling operations and also following the completion of drilling operations, but prior to moving the rig off location. The o bservations will be documented using Form BOEM

- 0 141 or a facsimile and submitted to the BOEM within 60 days after the second survey is completed.

(H)THREATENED AND ENDANGERED SPECIES , CRITICAL HABITAT, AND MARINE

MAMMAL INFORMATION

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

In accordance with 30 CFR 5 50, Subpart B, effective May 14, 2007, and further outlined in NTL

2008

- G04, lessees/operators are required to address site

- specific information on the presence of federally listed threatened or endangered species and critical habi tat designated under the ESA and marine mammals protected under the Marine Mammal Protection Act (MMPA) in the area of proposes activities under this plan.

There are five species of sea turtles that may be found in the Gulf of Mexic o (see table below),

NO AA fisheries currently lists all five of these turtles as endangered (E) or threatened (T).Petrobras America Inc. Page E

- 3

Initial Exploration Plan December 2012 Mississippi Canyon Block 697 (OCS

- G 34019) Species Scientific Name Status Potential Presence

Critical Habitat Designated

in the Gulf of Mexico Lease Area Coastal

Sea Turtles Loggerhead Turtle Carettsa Caretta T x x None

Green Turtle Chelonia mydas T,E x x None

Leatherback Turtle Dermochelys corlacea E x x None

Hawksbill Turtle Eretmochelys imbricata E x x None Kemp’s ridley turtle Lepidochelys kempli E x x None

Currently there are no designated critical habitats for the listed species in the Gulf of Mexico Outer Continental Shelf; however, it is possible that one or more of these species could be seen in the area of our operations.

( I

) A RCHAEOLOGICAL REPORT Mississippi Canyon 697 has been determined to have a high potential for contai ning archaeological properties; t herefore, an Archaeological Survey Report has been prepared in

accordance with NTL 2005

- G07 "Archaeological Surveys and Reports" and is being submitted

unde r separate cover.

( J

) A IR AND WATER QUALITY INFORMATION Air and water quality information is not required by BOEM to be included in this plan.

( K

) S OCIOECONOMIC INFORMATION Not applicable to this plan.OCS-G-32343NOBLEMC697MC698MC741MC742OCS-G-34020PETROBRASOCS-G-31524NOBLEOCS-G-34019PETROBRASOCS-G-28021NOBLEOCS-G-28022NOBLETGS survey inline numberInline spacing = 41.01' (12.5m)TGS survey crossline numberCrossline spacing = 41.01' (12.5m)Sonar contact & reference numberMud volcanoApex of linear mound on seafloorSuggested sonar contact avoidance areaNavigation trackline with name and direction run, fix and fix numberNOTE: 3D Seismic data acquired by TGS in March 2003.All AUV field data acquired Dec. 18-20, 2008.Survey vessels:M/VMiss Ginger, C-Surveyor IIINADCON version 2.1 utilized for WGS84-NAD27 conversions.SITE CLEARANCESEAFLOOR FEATURES & HAZARD MAPPROPOSED WELL No. 1BLOCK 697 (OCS-G-34019)MISSISSIPPI CANYON AREAFault scarp with seafloor displacement (Hachures on downthrown side)Petrobras America Inc. Page F

- 1 Initial Exploration Plan December 2012 Mississippi Canyon Block 697 (OCS

- G 34019) 

### APPENDIX F

WASTES AND DISCHARGES INFORMATION

(A) PROJECTED GENERATED WASTES Table 1, “ Wastes You Will Generate, Treat and Downhole Dispose or Discharge to the GOM ”

is included in this section as Attachment F

- 1

.ProjectedDownholeDisposalType of Waste CompositionProjectedAmountDischarge rate Discharge MethodAnswer yes ornoWater-based drilling fluidContinuous phase and suspending medium for solids iswater miscible fluid82,000 bbls perwell2,000 bbls perhour per wellDischarged at seabed (prior to marine riserinstallation); no free oilNoCuttings wetted with water-basedfluidParticles generated by drilling into geologic formationsadhering to water based drilling fluids3,200 bbls per well35 bbls per hourper wellDischarged at seabed (prior to marine riserinstallation); no free oilNoCuttings wetted with syntheticbased fluidParticles generated by drilling into geologic formationsadhering to synthetic based drilling fluids (internalolefin)3,200 bbls per well45 bbls per hourper wellDischarged overboard line from cuttings dryer; nofree oilNoDomestic wasteDischarge from galleys, sinks, and showers255,000 gallonsper month50 gallons perday per personPOB 170Discharge overboard; no floating solidsNoSanitary wasteHuman body waste from toilets and urinals153,000 gallonsper month30 gallons perday per personPOB 170Discharge overboard via treatment unit, no floatingsolidsNoDeck Drainage Deck washing and rain water3,000 bbls permonth (dependenton rainfall)100 bbls perday (dependenton rainfall)Discharge overboard; no free oilNoWell treatment fluids XL Boraite 7500 bbls per well400 bbls perwellDischarge overboard; no free oil NoWell completion fluidsSalt solutions, weighted brines, polymers, and variousadditives9,000 bbls per well200 bbls perhour per wellGravity oil/water separation then water dischargeoverboard with no free oilNoWorkover fluids included in well completion fluids NA NA NA NADesalinization unit dischargeSeawater associated with making fresh water fromseawater vis Osmosis15,000 blls permonth500 BBls perday (dependenton use)Discharge overboard; no free oilNoBlowout preventer fluid Stack Magic at 3% (95% water and 2% glycol) 300 bbls per well55 bbls permonthSubsea discharge NABallast waterBallast water returned to sea without addition ofchemicals45,000 bbls permonth1,500 bbls perdayDischarge overboard; no free oilNoBilge waterBilge water returned to sea without addition ofchemicals600 bbls permonth20bbls/dayGravity oil/water separation then water dischargeoverboard with no free oilNoExcess cement at seafloorDischarges that occur at seabed prior to installation ofmarine riser1000 bbls per well400 bbls perhour per wellDischarged at seabed (prior to marine riserinstallation); no free oilNoSeawaterUncontaminated Seawater90,000 bbls permonthNo limit.Discharge overboard; no free oilNoFire water included in seawater above NA NA NA NACooling water included in seawater above NA NA NA NAProduced water NA NA NA NA NATable . WASTES GENERATED, TREATED AND DISPOSED OR DISCHARGED TO THE GOM BY DRILLING RIGProjected ocean dischargesProjected generated wastePetrobras America Inc. Page G

- 1 Initial Exploration Plan December 2012 Mississippi Canyon Block 697 (OCS

- G 34019) 

### APPENDIX G

AI R EMISSIONS INFORMATION

( A ) E MISSIONS WORKSHEETS AND SCREENING QUESTIONS

Screen Procedures for EP’s Yes No Is any calculated Complex Total (CT) Emission amount (tons) associated with your proposed exploration 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

Are your proposed exploration activities located east of 87.5° W longitude? 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 for more than 48 continuous hours from an y proposed well? X

Do you propose to burn produced hydrocarbon liquids? X

There are no existing facilities or activities co

- located with the currently proposed activities, therefore the Complex Total Emissions are the same as the Plan Emissions and are provided in

the table below.

Air Pollutant Plan

Emission

Amounts 1

(tons) Calculated Exemption

Amounts 2

(tons) Calculated Complex Total

Emission

Amounts 3
(tons) Carbon Monoxide (CO) 483.81 61,537.44 483.81

Particular M atter (PM) 64.51 2,564.10 64.51 Sulphur D ioxide (SO 2 ) 295.93 2,564.10 295.93 Nitrogen O xides (NO

x ) 2,217.45 2,564.10 2,217.45 Volatile Organic C ompounds (VOC) 66.52 2,564.10 66.52

1 For activities proposed in your EP, list the projected emissions calculated from the worksheets.

2 List the exemption amounts for your proposed activities calculated b y using the formulas in 30 CFR 5 50.303(d).

3 List the complex total emissions associated with your proposed activities calculated from the worksheets.

This information was calculated by: Meli ssa Flack (281) 578

- 3388

melissa.flack @jccteam.comPetrobras America Inc. Page H

- 1 Initial Exploration Plan December 2012 Mississippi Canyon Block 697 (OCS

- G 34019) 

### APPENDIX H

OIL SPILL S INFORMATION

(A) OIL SPILL RESPONSE PLANNING All the proposed activities and facilities in the Exploration Plan will be covered by the Oil Spill Response Plan (OSRP) in accordance with 30 CFR 254 and approved on April 16, 2013. PAI (BOEM Operator No. 0120 7) submitted the last modifi cation to the Plan filed on January 14, 2013 and March 1, 2013, and was approved April 16, 2013

.

( B ) SPILL RESPONSE SITES Primary Response Equipment Location Preplanned Staging Location
Houma , LA Harvey, LA Venice, LA Houma , LA Harvey, LA Venice, LA

( C ) OSRO I NFORMATION

PAI ’s primary equipment provider is Clean Gulf Associates (CGA). The Marine Spill Response Corporation’s (MSRC) STARS network will provide closest available personnel, as well as an MSRC supe rvisor to operate the equipment

.

( D

) W ORST

- CASE SCENARIO COMPARISON

Category Regional OSRP

WCD EP

WCD

Type of Activity >10 Mile Drilling Exploratory Drilling

Facility Location (Area/Block) MC 697 MC 697

Facility Designation 1 1

Distance to Nearest Shoreline (miles) 77 77

Volume

Storage Tanks (Total)

Uncontrolled blowout

Total Volume 132,975 132,975

Type of Oil(s) (crude, condensate, diesel) Crude Crude

API Gravity 29° 29°

Since PAI has the capability to respond to the appropriate worst

- case spill scenario included in its regional OSRP approved on April 16, 2013 , and since the worst

- case scenario determined for our EP does not replace the appropriate worst

- case scenario in our region al or subregional OSRP, I hereby certify that PAI has the capability to respond, to the maximum extentPetrobras America Inc. Page H

- 2 Initial Exploration Plan December 2012 Mississippi Canyon Block 697 (OCS

- G 34019) practicable, to a worst

- case discharge, or a substantial threat of such a discharge, resulting from

the a ctivities proposed in our EP

.

PAI submi t ted the new worst

- case scenario to the BSEE GOMR for inclusion in our Regional

OSRP (Control No. O

- 262) on January 14, 2013 and March 1, 2013. That OSRP was approved on April 16, 2013

.

( E

) SPILL RESPONSE DISCUSSION FOR NEPA ANALYSIS

SPILL RESPONSE DISCUSSION

F or the purpose of NEPA and Coastal Zone Management Act analysis, the largest spill volume originating from the proposed activity would be a well blowout during drilling operations

, estimated to be 132,975 barrels of crude oil with an API gravity of 29 °.

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 BSEE Oil Spill Risk Analysis Model (OSRAM) for the Central and

Western Gulf of Mexico avai lable on the BSEE website. The results are shown in Figure 1. The

BSEE OSRAM identifies a n 11 % probability of impact to the shorelines of Plaquemines Parish,

Louisiana within 30 days

. Plaquemines Parish includes Barataria Bay, the Mississippi River Delta, Breton Sound and the affiliated islands and bays. This region is an extremely sensitive habitat and serves as a migratory, breeding, feeding and nursery habitat for numerous species of wildlife. Beaches in this area vary in grain particle size and can b e classified as fine sand, shell or perched shell beaches. Sandy and muddy tidal flats are also abundant.

Response

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

Using the estimated chemical and physical characteristics of crude oil, an ADIOS weathering model was run on a similar product from the ADIOS oil database. The results in dicate 12 % or approximately 15,957 barrels of crude oil would be evaporated/dispersed within 24 hours, with approximately 117,018 barrels remaining.

Spill Response MC 697 A Barrels of Oil

WCD Volume 132,975

Less 12 % natural evaporation/dispersion 15,957

Remaining volume 117,018

Daily dispersant capability 7,540

Figure 2 outlines equipment, personnel, materials and support vessels as well as temporary storage equipment available to respond to a spill of approximately 117,018 barrels. The volumePetrobras America Inc. Page H

- 3 Initial Exploration Plan December 2012 Mississippi Canyon Block 697 (OCS

- G 34019) accounts for the amount remaining after evaporation/dispersion at 24 hours. The list estimates individual times needed for procurement, load out, travel time to the site and deployment

. Figure

2 also indicates how operations will be supported.

PAI ’s Oil Spill Response Plan includes alternative response technologies such as dispersants and

in

- situ burn. Strategies will be decided by Unified Command based on the size of the spill, weather and potential impacts. If aerial dispersants are utilized , 8 sorties (9,600 gallons) from

two of the DC

- 3 aircrafts and 4 sorties (8,000 gallons) from the Basler aircraft would provide a daily dispersant capability of 7,540 barrels . If the conditions are favorable for in

- situ burning, the proper approvals have b een obtained and the proper planning is in place, in

- situ burning of oil may be attempted . Slick containment boom would be immediately called out and on

- scene as soon as possible. Offshore response strategies may include attempting to skim utilizing the

HO SS Barge, nine Fast Response Units (FRUs), and nine sets of Koseq skimming arms , with a total derated skimming capacity of 241,720 barrels. Temporary storage associated with skimming equipment equals 23,700 barrels. If additional storage is needed, a 25,00 0 barrel storage barge , two 23,000 barrel storage barge s, a 47,000 barrel storage barge , and a 107,285 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

. Safety is first

p riority. Air monitoring will be accomplished and operations deemed safe prior to any containment/skimming attempts.

If the spill went unabated, shoreline impact in Plaquemines Parish, Louisiana would depend upon existing e nvironmental conditions. Shoreline protection would include the use of CGA’s near shore and shallow water skimmers with a totaled derated skimming capacity of 74,126 barrels. Temporary storage associated with skimming equipment equals 725 barrels. If addit ional storage is needed, a 23,000 barrel storage barge and three 20,000 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. Onshore response may include the deployment of shoreline boom on beach areas, or protection and sorbent boom on vegetated areas. Letters of

Intent from OMI Environmental and AMPOL ensure access to 14 7,000 feet of 18” shoreline protection boom

. Figure 2 outlines individual times needed for procurement, load out, travel time to the site and deployment. Strategies would be based upon surveillance and real time trajectories that depict areas of potential impact given actual sea and weather conditions. The State of Louisiana Initial Oil Spill Response Plan for Plaquemines Parish and Unified Command would be consulted to ensure that environmental and special economic resources would be correctly identified and prioritized to ensure optimal protection. Shoreli ne protection strategies depict the protection response modes applicable for oil spill clean

- up operations. The State of Louisiana Initial Oil Spill Response Plan provides detailed shoreline protection strategies for this area, and it describes necessary a ction to keep the oil spill from entering Louisiana’s coastal wetlands, based on the assumption that removal of the released oil will be much easier and less damaging to fragile coastal ecosystems if done in the open waters of the Gulf of Mexico. Superviso ry personnel have the option to modify the deployment and operation of equipment allowing a more effective response to site

- specific circumstances. PAI ’s contract Spill Management Team holds a copy of the State of Louisiana Initial Oil Spill Response Plan.Petrobras America Inc. Page H

- 4 Initial Exploration Plan December 2012 Mississippi Canyon Block 697 (OCS

- G 34019) Based on the anticipated worst case discharge scenario

, PAI 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

89 hours (based on the equipment’s Effective 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:

• Weat her

• 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

PAI will take action t o provide a safe, aggressive response to contain 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 reco ver as much oil as possible as far from environmentally sensitive areas as possible. Safety will take precedence over all other considerations during these operations.

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 agencies 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 situation and coordinated objectives

o Areas of responsibility established for Source Control and each surface operational

site

o On

- site command and control established

Offshore Response Actions

Equipment De ployment

Surveillance

• Surveillance Aircraft will be deployed within two hours of Q ualified I ndividual (QI) notification, or at first lightPetrobras America Inc. Page H

- 5 Initial Exploration Plan December 2012 Mississippi Canyon Block 697 (OCS

- G 34019) • Provide trained observer to provide on site status reports

• Provide command and control platform 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 A irborne S upport I nc. (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

• Co ordinate movement of dispersants, aircraft, and support equipment and personnel

• Confirm dispersant availability for current and long range operations

• Start ordering dispersant stocks required for expected operations

Containment boom

• Call out early and e xpedite 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 Opportun ity (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 and in

- situ burn operations

CGA 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

T&T Koseq Skimming Systems

• To the area of the thickest oil

• Use as far off

- shore as allowed

• VOOs with a minimum of 2,000 bbls storage capacity

• VOOs at least 200’ in lengthPetrobras America Inc. Page H

- 6 Initial Exploration Plan December 2012 Mississippi Canyon Block 697 (OCS

- G 34019) • VOOs with deck space o f 100’ x 40’ to provide space for arms, tanks, and crane

Storage Vessels

• Establish availability of CGA contracted assets

• Early call out (to allow for tug boat 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 skimming assets to minimize offloading time

Vessels of Opportunity (VOO)

• Use PAI ’s contracted resources as applicable

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

• Acquire additional resources as needed

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

• Expect mission specific and safety training to be required

• Plan with the US Coast Guard for vessel inspections

In

- situ Burn assets

• Determine appropriateness of in

- situ burn operation in coordination with the FOSC and

affected State On

- Scene Coordinator (SOSC)

• Determine availability of fire boom and selected ignition systems

• Start ordering fire boom stocks required for expected operations

• Contact boom manufacturer to provide training if required

• Determine assets to perform on water operation

• Build operations into safety plan

• Conduct operations in accordance with an approved plan

Near Shore Response Actions

Timing

• P lace near sh ore assets on standby and deploy in accordance with planning based on the actual situation, actual trajectories and oil budgets

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

• Outfitting of VOOs for specific missions

• Deplo yment of assets based on actual movement of oil

Considerations

• Water depth, vessel draft

• Shoreline gradient

• State of the oil

• Use of VOOsPetrobras America Inc. Page H

- 7 Initial Exploration Plan December 2012 Mississippi Canyon Block 697 (OCS

- G 34019) • 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 met ers of water depth

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

Vessel Deployment Dedicated Near Shore skimming systems

• F ast R esponse V essel s (FRV)

• Egmopol and Marco S hallow Water Skimmer (SWS)

• Operate with aerial spotter directing syste ms to observed oil slicks

VOO

• Use PAI ’s contracted resources 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 safety training to be required

• Plan with the US Coast Guard for vessel inspections

• Operate with aerial spotter directing systems to oil patches

Shoreline Protection Operations

Response Planning Considerations

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

• Time to acquire personnel and equipment and their availability

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

Actions

Placement of boomPetrobras America Inc. Page H

- 8 Initial Exploration Plan December 2012 Mississippi Canyon Block 697 (OCS

- G 34019) • Position boom in accordance with the ERA based on the actual situation or the appropriate ACP

• Assess timing of booming o perations 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, anc hors, 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 sites 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 ti d e lines to minimize waste

• Staging of equipment and housing of response personnel as close to the job site as possible to maximize on

- site work time

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

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

• In

- situ burn may be considered when marshes have bee n impacted

• Passive clean up of marshes should be considered and appropriate stocks of sorbent boom and/or sweep obtained

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

inland areasPetrobras America Inc. Page H

- 9 Initial Exploration Plan December 2012 Mississippi Canyon Block 697 (OCS

- G 34019) Decanting Strategy

Recovered oil a nd water mixtures will typically separate into distinct phases when left in a quiescent state. When separation occurs, the relatively clean water phase can be siphoned or decanted back to the recovery point with minimal, if any, impact. Decanting therefore increases

the effective on

- site oil storage capacity and 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 an y spill response equipment, whether a dedicated or portable system, to operate in differing weather conditions will be directly in relation 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 and/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 see n in the Deepwater Horizon (DWH) oil spill response, vessel skimming operations ceased when seas reached 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 seasPetrobras America Inc. Page H

- 10 Initial Exploration Plan December 2012 Mississippi Canyon Block 697 (OCS

- G 34019) Environmental Conditions in the GOM Louisiana is situated between the easterly and westerly wind belts, and therefore, experiences westerly winds during the winter and easterly winds in the summer. Average wind speed is generally 14

- 15 mph along the coast. Wave heights 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 b etween 70 and 80  ̊ F during the summer months. During the winter, the average temperature will range from 50 and 60  ̊ F.

The Atlantic and Gulf of Mexico hurricane season is officially from 1 June to 30 November. 97% of all tropical activity occurs within this window. The Atlantic 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 occurring then. Maximum activity is in early to mid September. Once in a few years there may be a hurricane occurring "out of season"

- primarily in May or December. Globally, September is the most active month and May is the least activ e month.Petrobras America Inc. Page H

- 11 Initial Exploration Plan December 2012 Mississippi Canyon Block 697 (OCS

- G 34019) FIGURE 1

TRAJECTORY BY LAND SEGMENT

Trajectory of a spill and the probability of it impacting a land segment have been projected utilizing PAI ’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 30 day impact. The results are tabulated below.

Area/Block OCS

- G Launch

Area Land Segment and/or

Resource Conditional Probability (%)

wi thin 30 days

Drill, complete and

test one well

MC 697 Well 1

77 miles from shore G34019 C59 Cameron, LA Vermilion, LA Terrebonne, LA Lafourche, LA Jefferson, LA Plaquemines, LA

St. Bernard, LA Walton, FL

Bay, FL 1

1

2

2

1

11

2

1

1Petrobras America Inc. Page H

- 12 Initial Exploration Plan December 2012 Mississippi Canyon Block 697(OCS

- G 34019) WCD Scenario

– BASED ON WELL BLOWOUT DURING DRILLING OPERATIONS ( 77 miles from shore) 117,018 bbls of crude oil (Volume considering natural weathering) API Gravity 29 °

FIGURE 2

– Equipment Response Time to MC 697 Well 1 Dispersants/Surveillance

Dispersant/Surveillance Dispersant Capacity (gal) Storage Capacity Persons Req. From Hrs to

Procure Hrs to

Loadout Trave l to

site Total Hrs

CGA

Basler 67T 2000 NA 2 Houma 1 1 0.9 2.9

ASI

DC 3 1200 NA 2 Houma 1 1 1.2 3.2

DC 3 1200 NA 2 Houma 1 1 1.2 3.2

Aero Commander NA NA 2 Houma 1 1 0.9 2.9

Offshore Response

Offshore Equipment No Staging EDRC Storage Capacity VOO Persons Required From Hrs to

Procure Hrs to

Loadout Hrs to

GOM Travel to Spill Site Hrs to Deploy Total

Hrs

CGA

HOSS Barge 43000 4000 3 Tugs 5 Harvey 7 0 5 11.3 1 24.3

Koseq Skimming Arms (3) 53487 6000 3 Utility 18 Galveston 24 24 4 34.2 2 88.2

Koseq Skimming Arms (3) 53487 6000 3 Utility 18 Leeville 24 24 10 11.3 2 71.3

Koseq Skimming Arms (1) 17829 2000 1 Utility 6 Fourchon 24 24 9.5 11.3 2 70.8

Koseq Skimming Arms (2) 35658 4000 2 Utility 12 Venice 24 24 11 7.5 2 68.5

Recovered Oil Storage No Staging EDRC Storage Capacity VOO Persons Required From Hrs to

Procure Hrs to

Loadout Hrs to

GOM Travel to Spill Site Hrs to Deploy Total

Hrs

K

- Sea Operating (available through contract with CGA)

DBL 101 1119760 NA 107285 1 Tug 6 Venice 4 12 2 11.25 1 30.25

Enterprise Marine Services LLC (available through contract with CGA)

CTCo 2603 NA 25000 1 Tug 6 Amelia 4 12 4 26.25 1 47.25

CTCo 2608 NA 23000 1 Tug 6 Amelia 4 12 4 26.25 1 47.25

CTCo 2609 NA 23000 1 Tug 6 Amelia 4 12 4 26.25 1 47.25

CTCo 5001 NA 47000 1 Tug 6 Amelia 4 12 4 26.25 1 47.25Petrobras America Inc. Page H

- 13 Initial Exploration Plan December 2012 Mississippi Canyon Block 697(OCS

- G 34019) Staging Area: Venice

Offshore Equipment With Staging EDRC Storage Capacity VOO Persons Req. From Hrs to

Procure Hrs to

Loadout Travel to Staging Travel to

Site Hrs to Deploy Total

Hrs

CGA

FRU (1) + 100 bbl Tank (2) 4251 200 1 Utility 6 Galveston 1 2 8 7.5 1 19.5

FRU (1) + 100 bbl Tank (1) 4251 100 1 Utility 6 Harvey 1 2 1.75 7.5 1 13.3

FRU (1) + 100 bbl Tank (2) 4251 200 1 Utility 6 Ingleside 1 2 11 7.5 1 22.5

FRU (1) + 100 bbl Tank (2) 4251 200 1 Utility 6 Lake Charles 1 2 5.5 7.5 1 17.0

FRU (2) + 100 bbl Tank (2) 8502 400 2 Utility 12 Leeville 1 2 3.5 7.5 1 15.0

FRU (1) + 100 bbl Tank (2) 4251 200 1 Utility 6 Morgan City 1 2 3.25 7.5 1 14.8

FRU (2) + 100 bbl Tank (4) 8502 400 2 Utility 12 Venice 1 2 0 7.5 1 11.5

Offshore Equipment With Staging EDRC Storage Capacity VOO Persons Req. From Hrs to

Procure Hrs to

Loadout Travel to Staging Travel to

Site Hrs to Deploy Total

Hrs

CGA

42” Auto Boom (5000’) NA NA 10 Crew 20 Galveston 1 2 8 7.5 1 19.5

42” Auto Boom (10000’) NA NA 20 Crew 40 Harvey 1 2 1.75 7.5 1 13.3

42” Auto Boom (2500’) NA NA 6 Crew 12 Ingleside 1 2 11 7.5 1 22.5

42” Auto Boom (5000’) NA NA 10 Crew 20 Lake Charles 1 2 5.5 7.5 1 17.0

42” Auto Boom (2500’) NA NA 6 Crew 12 Pascagoula 1 2 4 7.5 1 15.5

Hydro

- Fire Boom NA NA 8 Utility 40 Harvey (HFB) 1 4 1.75 7.5 6 20.3Petrobras America Inc. Page H

- 14 Initial Exploration Plan December 2012 Mississippi Canyon Block 697(OCS

- G 34019) Nearshore Response

Nearshore Equipment No Staging EDRC Storage Capacity VOO Persons Required From Hrs to

Procure Hrs to

Loadout Hrs to

GOM Travel to Spill Site Hrs to Deploy Total

Hrs

CGA

46’ FRV 5000 65 NA 4 Leeville 1 0 2 2.0 0 5.0

46’ FRV 5000 65 NA 4 Venice 1 0 1 2.0 0 4.0

Trinity SWS 21500 249 NA 4 Leeville 1 2 2 2.0 0 7.0

Trinity SWS 21500 249 NA 4 Venice 1 2 2 2.0 0 7.0

Enterprise Marine Services LLC (available through contract with CGA)

CTCo 2604 NA 20000 1 Tug 6 Amelia 4 12 4 15 1 36

CTCo 2605 NA 20000 1 Tug 6 Amelia 4 12 4 15 1 36

CTCo 2606 NA 20000 1 Tug 6 Amelia 4 12 4 15 1 36

CTCo 2607 NA 23000 1 Tug 6 Amelia 4 12 4 15 1 36

Staging Area: Venice

Nearshore and Inland Skimmers With Staging EDRC Storage Capacity VOO Persons Req. From Hrs to

Procure Hrs to

Loadout Travel to Staging Travel to Deployment Hrs to Deploy Total Hrs

CGA

SWS Egmopol 3000 100 NA 3 Galveston 1 2 8 2 0 13

SWS Egmopol 3000 100 NA 3 Morgan City 1 2 3.25 2 0 8.25

SWS Marco 3588 20 NA 3 Lake Charles 1 2 5.5 2 0 10.5

SWS Marco 3588 34 NA 3 Leeville 1 2 3.5 2 0 8.5

SWS Marco 3588 34 NA 3 Venice 1 2 0 2 0 5

Rope Mop 77 2 0 3 Harvey 1 2 8 2 0 13

Foilex Skim Package (TDS 150) 891 45 NA 3 Lake Charles 1 2 5.5 2 0 8

Foilex Skim Package (TDS 150) 891 45 NA 3 Galveston 1 2 8 2 0 8

Foilex Skim Package (TDS 150) 891 45 NA 3 Harvey 1 2 1.75 2 0 11

4 Drum Skimmer (Magnum 100) 686 100 1 Crew 3 Lake Charles 1 2 5.5 2 0 8

4 Drum Skimmer (Magnum 100) 686 100 1 Crew 3 Harvey 1 2 1.75 2 0 11

2 Drum Skimmer (TDS 118) 240 100 1 Crew 3 Lake Charles 1 2 5.5 2 0 8Petrobras America Inc. Page H

- 15 Initial Exploration Plan December 2012 Mississippi Canyon Block 697(OCS

- G 34019) Shoreline Protection Staging Area: Venice

Shoreline Protection

Boom VOO Persons Req. Storage/Warehouse

Location Hrs to

Procure Hrs to

Loadout Travel to Staging Travel to Deployment Site Hrs to Deploy Total Hrs

AMPOL (available through Letter of Intent)

42,000’ 18” Boom 16 Crew 40 New Iberia, LA 2 2 4 2 12 22

20,000’ 18” Boom 8 Crew 20 New Orleans, LA 2 2 2 2 6 14

OMI Environmental (available through Letter of Intent)

10,000’ 18” Boom 4 Crew 10 New Iberia, LA 1 1 4 2 3 11

10,000’ 18” Boom 4 Crew 10 Houston, TX 1 1 7.5 2 3 14.5

10,000’ 18” Boom 4 Crew 10 Port Arthur, TX 1 1 6.25 2 3 13.25

20,000’ 18” Boom 8 Crew 20 Belle Chasse, LA 1 1 1.75 2 6 11.75

10,000’ 18” Boom 4 Crew 10 Port Allen, LA 1 1 3.5 2 3 10.5

10,000’ 18” Boom 4 Crew 10 Houma, LA 1 1 3.5 2 3 10.5

15,000’ 18” Boom 6 Crew 14 Gretna, LA (Warehouse) 2 2 2 2 4 12

Beach Boom EDRC Storage Capacity VOO Persons Req. From Hrs to

Procure Hrs to

Loadout Travel to Staging Travel to Deployment Hrs to Deploy Total Hrs

CGA

Beach Boom (2000’) NA NA NA 6 Galveston 1 2 8 1 2 14

Beach Boom (1000’) NA NA NA 4 Ingleside 1 2 11 1 2 17

Beach Boom (2000’) NA NA NA 6 Pascagoula 1 2 4 1 2 10Petrobras America Inc. Page H

- 16 Initial Exploration Plan December 2012 Mississippi Canyon Block 697(OCS

- G 34019) Wildlife Response EDRC Storage Capacity VOO Persons Req. From Hrs to

Procure Hrs to

Loadout Travel to Staging Travel to Deployment Hrs to Deploy Total Hrs

CGA

Wildlife Support Trailer NA NA NA 2 Houma 1 2 3 1 2 9

Bird Scare Guns (24) NA NA NA 2 Belle Chasse 1 2 1.5 1 2 7.5

Bird Scare Guns (12) NA NA NA 2 Galveston 1 2 8 1 2 14

Bird Scare Guns (24) NA NA NA 2 Houma 1 2 3 1 2 9

Bird Scare Guns (12) NA NA NA 2 Ingleside 1 2 11 1 2 17

Bird Scare Guns (24) NA NA NA 2 Lake Charles 1 2 5.5 1 2 11.5

Bird Scare Guns (24) NA NA NA 2 Pascagoula 1 2 4 1 2 10

Response Asset Total

Offshore EDRC 241,720

Offshore Recovered Oil Storage 248,985

Nearshore / Shallow Water EDRC 74,126

Nearshore / Shallow Water Recovered Oil Storage 83,725Petrobras America Inc. Page I

- 1 Initial Exploration Plan December 2012 Mississippi Canyon Block 697 (OCS

- G 34019) 

### APPENDIX I

ENVIRONMENTAL MONITORING INFORMATION

( A ) MONITORING SYSTEMS

Petrobras America Inc. will operate in accordance with NTL 2009

- G02, to gather ocean current data for all floating MODU’s in water depths greater than 1,312 feet.

Monitoring and testing per Region 6 NPDES General Permit requirements will be completed.

Monitoring and reporting applicable statistics to the BOEM and BSEE Gulf of Mexico Region (GOMR) regarding evacuation.

( 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.

To date, it has been documented that the use of explosives and/or seismic devices can affect

marine life. Operations proposed in this plan will not be utilizing either of these devices.

( C ) F LOWER GARDEN BANKS NATIONAL MARINE SANCTUARY Mississippi Canyon Block 697 is not located in the Flower Garden Banks National Marine Sanctuary; therefore, the requested information is not required in this EP.Petrobras America Inc. Pag e J

- 1 Initial Exploration Plan December 2012 Mississippi Canyon Block 697 (OCS

- G 34019) 

### APPENDIX J

LEASE STIPULATIONS INFORMATION

Exploration activities are subject to the following stipulation attached to Lease OCS

- G 34019 Mississippi Canyon Block 697

.

Military Warning Area (MWA)

OCS

- G 34019 is not located in a MWA, however, vessels and helicopters associated with exploration activities may traverse MWA Eglin Water Test Area (EWTA)

- 1

. The Air Armament

Center will be contacted in order to coordinate and control the electromagnetic emissions during the proposed operat ions.

Marine Protected Species

L ease Stipulation No. 6 is meant to reduce the potential taking of marine protected species. PAI will operate in accordance with NTL 2012

- G 0 1

- JOINT

, to minimize the risk of vessel strikes to protected species and report observations of injured or dead protected species, and the prevention

of intentional and/or accidental introduction of debris into the marine environment.P etrobras America Inc. Page K

- 1 Initial Exploration Plan December 2012 Mississippi Canyon Block 697 (OCS

- G 34019) APPENDIX K

ENVIRONMENTAL MITIGATION MEASURES INFORMATION

( A ) MEASURES TAKEN TO AVOID, MINIMIZE, AND MITIGATE IMPACTS Not applicable to this plan.

( B ) INCIDENTAL TAKES

PAI 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:

• NTL 2012

- G01

- JOINT , “Vessel Strike Avoidance and Injured/Dead Protected Species Reporting ”

• NTL BSEE 2012

- G01 , “Marine Trash and Debris Awareness and Elimination”

• NTL 2012

- G02

- JOINT , “Implementation of Seismic Survey Mitigation Measures and

Protecte d Species Observer Program”P etrobras America Inc. Page L

- 1 Initial Exploration Plan December 2012 Mississippi Canyon Block 697 (OCS

- G 34019) APPENDIX L

SUPPORT VESSELS AND AIRCRAFT INFORMATION

( A ) G ENERAL The most practical, direct route from the shorebase as permitted by weather and traffic

conditions will be utilized.

Type Maximum Fuel Tank Capacity Maximum

Number in Area at Any Time Trip Frequency

or Duration

Offshore Service Vessel (PSV) 8,900 bbls 3 2 roundtrips /week

Fast Supply Vessel (FSV) / Crew Boat 800 bbls 2 3 roundtrips /week

Helicopters 674 gals 1 1 roundtrips /day

( B ) D IESEL OIL SUPPLY VESSELS

Size of Fuel Supply

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

Vessel Will Take

2 80’ 8,900 bbls 2 roundtrips /week Shortest route from Port Fourchon, LA to

Mississippi Canyon

Block 697 and return to Port Fourchon, LA

. *Please note the actual vessels have not yet been contracted.

Table 2, “ Wastes You Will Transport and/or Dispose of Onshore” is included in this section as

Attachment L

- 1.

( E

) V ICINITY MAP

Enclosed as Attachment L

- 2 is a vicinity map showing the location of the activities proposed herein relative to the shoreline with the distance of the proposed activities from the shoreline and the primary route(s) of the support vessels and aircraft that will be used when travelin g between the onshore support facilities and the drilling unit.Solid and Liquid WastestransportationType of Waste Composition Transport MethodName/Location ofFacilityAmount Disposal MethodOil-based drilling fluid or mud NA NA NA NA NASynthetic-based drilling fluid or mudContinuous phase of thedrilling fluid is a syntheticmaterialTanks or drums on offshore supportvesselsUS Liquids (PortFourchon, LA) orNewpark Services (PortFourchon, LA)750 bbls perwellRecycledCuttings wetted with Water-based fluid NA NA NA NA NACuttings wetted with Synthetic-based fluid NA NA NA NA NACuttings wetted with oil-based fluids NA NA NA NA NAProduced sand NA NA NA NA NATrash and debrisNon-hazardous garbage,trash, and debris that can notbe recycledContainers on offshore support vesselsWaste Management(Raceland, LA)Two standard(25 m3)containers perweekLandfillUsed oilLube oils (maintenance)Tote Tanks on offshore vessels Martin (Port Fourchon, LA10 totes perweekRecycledWash water NA NA NA NA NAChemical product wastes NA NA NA NA NAWaste DisposalTable . WASTES TRANSPORTED AND /OR DISPOSED OF ONSHORE FROM DRILLING RIGProjected generated waste! ! ! ! ! !

! ! ! ! ! !

! !

! !

! ! ! ! ! ! ! ! ! !

! !

! ! ! !

! ! ! ! ! ! ! !

M i s s i s s i p p i C a n y o n M a i n P a s s

W e s t D e l t a

G r a n d I s l e V i o s c a K n o l l M a i n P a s s S o u t h & E a s t B r e t o n S o u n d

W e s t D e l t a S o u t h

G r a n d I s l e S o u t h

E w i n g B a n k V e n i c e L a f i t t e

F o u r c h o n G r a n d I s l e R i v e r R i d g e F o r t J a c k s o n L a f o u r c h e P l a q u e m i n e s J

e f

f e r

s o n 

# P e t r o b r a s A m e r i c a I n c

. V i c i n i t y M a p
M i s s i s s i p p i C a n y o n 6 9 7

M C 6 9 7 ~ 7 7

M

i l e s

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s t

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u

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o

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, L

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a

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ePetrobras America Inc. Page M

- 1 Initial Exploration Plan December 2012 Mississippi Canyon Block 697 (OCS

- G 34019) APPENDIX M

ONSHORE SUPPORT FACILITIES INFORMA TION

( A ) G ENERAL

Name of Shorebase Location Existing/New/Modified

Fourchon Service Base Port Fourchon, L ouisiana Existing MI Drilling Fluids Port Fourchon, L ouisiana Existing

( B ) S UPPORT BASE CONSTRUCTION OR EXPANSION There will be no new construction of an onshore support base, nor will we expand the existing shorebase as a result of the operations proposed in this Exploration Plan.

( C ) W ASTE DISPOSAL Table 2, “Wastes You Will Transport and/or Dispose of Onshore” is included in Appendix L as

Attachment L

- 1.Petrobras America Inc. Page N

- 1 Initial Exploration Plan December 2012 Mississippi Canyon Block 697 (OCS

- G 34019) APPENDIX N

CO ASTAL ZONE MANAGEMENT (CZMA) INFORMATION

Mississippi Canyon Block 697 is located offshore Louisiana and Alabama. Relevant enforceable policies were considered in certify ing consistency for Louisiana.

A certificate of Coastal Zone Management Consistency for the state of Louisiana is enclosed as

Attachment N

- 1

.Petrobras America Inc. Page N

- 2 Initial Exploration Plan December 2012 Mississippi Canyon Block 697 (OCS

- G 34019) ALABAMA COASTAL ZONE MANAGEMENT

CONSISTENCY CERTIFICATION

INITIAL EXPLORATION PLAN

– MISSISSIPPI CANYON BLOCK 697

A certificate of Coastal Zone Management Consistency for the state of Alabama is enclosed as

Attachment N

- 2

. The OCS related oil and gas development activities having potential impact on the Alabama Coastal Zone are based on the location of the proposed facilities, access to those sites, best practical techniques for operations and production equipment, guidelines for the prevention of adverse environmental effects, effective environmental protection, emergency plans and contingency plans. Alabama policies have been addre ssed below or are cross referenced to the appropriate sections of the plan:

Topic Cross

Reference Comments

Coastal Resource Use Policies Coastal Development Dock and port facilities in LA will be used. There will be no new construction, dredging, or filling in Alabama state waters. There will be no new commercial development or capital improvements in Alabama’s coastal zone, nor will there be any employment ef fects. Mineral Resource Exploration

and Extraction Proposed exploratory operations will take place 132 miles from Alabama’s

coastline. Commercial Fishing Appendix O There will be little or no impact on commercial fishing under normal operations.

Hazard Management Appendix C A Shallow Hazards Report has been prepared and submitted to BOEM in order to identify and assess the seafloor and shallow geol ogic conditions in this block

. No significant geological hazards are reported.

Shoreline Erosion Proposed exploration operations will take place 132 miles from Alabama’s

coastline. Dock and port facili ties will be located in LA and v essels will follow the shortest direct route to the project area. There will be no new construction, dredging, or filling in Ala bama state waters and this project will have no impact

on Alabama coastal erosion.

Recreation Appendix O There are no known recreational uses of the lease area. Transportation Appendix L This lease is not located in within the USCG

- designated fairway or shipping lane.

Natural Resource Protection

Policies Biological Productivity Appendix O There will be no impacts to the coastal waters or shorelines of Alabama under normal operations during this project. Water Quality Appendix O There would be no impacts to water quality within Alabama coastal waters under normal operating conditions.

Water Resources Appendix O Air Quality Appendix G The Air Quality Emissions Report (AQR) prepared in accordance with BOEM requirements shows that the projected emissions are below the exemption levels; therefore. According to 30 CFR 550. 303, the emissions will not s ignificantly affect the air quality. Wetlands and Submerged

Grassbeds Appendix O There will be no freshwater, nearshore or estuarine operations ass ociated with this project and there will be no impacts to Alabama wetlands or submerged grassbeds under normal operations.

Beach and Dune Protection Appendix O There will be no impacts to Alabama beaches and dunes under normal operations.

Wildlife Habitat Protection Appendix O Endangered Species Appendix O

Cultural Resources Protection Appendix E This block is not located in an area determined to have historic or prehistoric

cultural resources. However, a n Archaeological Report was previously submitted under separate cover to BOEM. It was determined that no man

- made facilities or

seafloor obstructions were located in this block.Petrobras America Inc. Page O

- 1 Initial Exploration Plan December 2012 Mississippi Canyon Block 697 (OCS

- G 34019) APPENDIX O ENVIRONMENTAL IMPACT ANALYSIS (EIA)



## Petrobras America Inc. (PAI)

Initial Exploration Plan

Miss issippi Canyon Block 697

OCS

- G 34019

(A) IMPACT PRODUCING FAC TORS

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 X(8) X

Sea Turtles X(8) X X(8) X

Air quality X(9)

Shipwreck sites (known or potential) (7)

Prehistoric archaeological sites X(7)

Vicinity of Offshore Location

Essential fish habitat X X(6)

Marine and pelagic birds X X

Public health and safety (5)

Coastal and Onshore

Beaches X(6) X

Wetlands X(6)

Shore birds and coastal nesting

birds X6)

Coastal wildlife refuges

Wilderness areasPetrobras America Inc. Page O

- 2 Initial Exploration Plan December 2012 Mississippi Canyon Block 697 (OCS

- G 34019) Footnotes for Environmental Impact Analysis Matrix

1) Activities that may affect a marine sanctuary or topographic feature. Specifically, if the well or platform site or any anchors will be on the seafloor within the:

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 Essen tial 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 that is not protected by the Topographic Features Stipulation attached to an OCS lease.

2) Activi ties 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 block where seafloor habitats are protected 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 concentrations greater than 500 ppm might be encountered. 6) All acti vities that could result in an accidental spill of produced liquid hydrocarbons or diesel fuel that you determine would impact these environmental resources. If the proposed action is loc ated 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 occurrence of shipwrecks or prehistoric sites, includ ing 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 impact would occur, the EIA c an note that in

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

turtles or their critical habitats. 9) Production activities that involve transportation of produced fluids to shore using shuttle tankers or barges.Petrobras America Inc. Page O

- 3 Initial Exploration Plan December 2012 Mississippi Canyon Block 697 (OCS

- G 34019) (B) Analysis

Site

- Specific at Mississippi Canyon Block 697

Proposed operations consist of the drilling, completion, and potential testing of one well location.

The operations will be conducted with a drillship.

**1. Designated Topographic Features** 
Potential IPFs on topographic features include effluents, and accidents.

Effluents: Mississippi Canyon Block 697 is 90 miles from the closest designated Topographic Features Stipulation Block (Sackett Bank); therefore, no adverse impacts are expected.

Accidents: It is unlikely that an accidental surface or subsurface spill would occur from the proposed activities (refer to statistics in Item 5 , Water Quality). Oil spills cause damage to benthic

org anisms only if the oil contacts the 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 l ower than the amount shown to have an effect on corals. Because the crests of topographic features in the Northern Gulf of Mexico are found below 10 m, no oil from a surface spill could reach their sessile biota. Oil from a subsurface spill is not applicab le due to the distance of these blocks from a topographic area. The activities proposed in this plan will be covered by PAI’s Regional OSRP (refer to information submitted in Appendix H ).

There are no other IPFs (including emissions , physical disturbance s to the seafloor 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 include effluents and accidents.

Effluents: Mississippi Canyon Block 697 is 62 miles from the closest live bottom (pinnacle trend)

area; therefore

, no adverse impacts are expected.

Accidents: It is unlikely that an accidental surface or subsurface spill would occur from the proposed activities (refer to statistics in Item 5 , Water Quality). Oil spills have the potential to foul benthic communities and cause lethal and sublethal effects on live bottom organisms. Oil from a surface spill can be driven into the water column; measurable a mounts 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 th e distance of these blocks from a live bottom (pinnacle trend) area. The activitiesPetrobras America Inc. Page O

- 4 Initial Exploration Plan December 2012 Mississippi Canyon Block 697 (OCS

- G 34019) proposed in this plan will be covered by PAI’s Regional OSRP (refer to information submitted in Appendix H ).

There are no other IPFs (including emissions, physical distur bances to the seafloor and wastes sent to shore for disposal) from the proposed activities which could impact a live bottom (pinnacle trend) area.

**3. Eastern Gulf Live Bottoms**

Potential IPFs on Eastern Gulf live bottoms include effluents and accidents.

Effluents: Mississippi Canyon Block 697 is not located in an area characterized by the existence of live bottoms; therefore, no adverse impacts are expected.

Accidents: It is unlikely that an accidental surface or subsurface spill would occur from the

p roposed activities (refer to statistics in Item 5 , Water Quality). Oil spills cause damage to live bottom organisms only if the oil contacts the organisms. Oil from a surface spill can be driven into the water column; measurable amounts have been document ed 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 invertebrates. Oil from a subsurface spill is not applicable due to the distance of these

b locks from a live bottom area. The activities proposed in this plan will be covered by PAI’s Regional OSRP (refer to information submitted in Appendix H ).

There are no other IPFs (including emissions, physical disturbances to the seafloor 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 emissions, physical disturbances to the seafloor, wastes sent to shore for disposal, or acciden ts) from the proposed activities that could cause impacts to benthic communities.

A drillship is being used for the proposed activities; therefore, only an insignificant amount of seafloor will be disturbed. Because physical disturbances to the seafloor will be minimized by the use of a drillship, PAI’s proposed operations in Mississippi Canyon Block 697 would not cause impacts to

benthic communities.

**5. Water Quality**
IPFs that could result in water quality degradation from the proposed operations in Mis sissippi Canyon

Block 697 include effluents and accidents.

Effluents: Levels of contaminants in drilling muds and cuttings and produced water discharges, discharge

- rate restrictions and monitoring and toxicity testing are regulated by the EPA NPDES

perm it, thereby eliminating many significant biological or ecological effects. Operational discharges are not expected to cause significant adverse impacts to water quality.Petrobras America Inc. Page O

- 5 Initial Exploration Plan December 2012 Mississippi Canyon Block 697 (OCS

- G 34019) Accidents: Oil spills have the potential to alter offshore water quality; however, i t 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 percent of this oil, or 1 bbl for every 81,000 bbl prod uced. The spill risk related to a diesel spill from drilling operations is even less. Between 1976 and 1985, (years for which data were collected), there were 80 reported diesel spills greater than one barrel associated with drilling activities. Consider ing that there were 11,944 wells drilled, this is a 0.7 percent probability of an occurrence. If a spill were to occur, the water quality of marine waters would be temporarily affected by the dissolved components and small oil droplets. Dispersion by curre nts and microbial degradation would remove the oil from the water column and dilute the constituents to background levels. Historically, changes in offshore water quality from oil spills have only been detected during the life of the spill and up to severa l months afterwards. Most of the components of oil are insoluble in water and therefore float. The activities proposed in this plan will be covered by PAI’s Regional Oil Spill Response Plan (refer to information submitted in Appendix H ).

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

**6. Fisheries**
IPFs that could cause impacts to fisheries as a result of the proposed operations in Mississippi Canyon

Block 697 include effluents and accidents.

Effluents: Effluents such as drilling fluids and cuttings discharges contain components and properties which are detrimental to fishery resources. Mode rate petroleum and metal contamination of

sediments and the water column can occur out to several hundred meters down

- current from the discharge point. Offshore discharges are expected to disperse and dilute to very near background

levels in the water col umn or on the seafloor within 3,000 m of the discharge point, and are expected to have negligible effect on fisheries.

Accidents: An accidental oil spill has the potential to cause some detrimen tal effects on fisheries; however, it i s unlikely that such an event would occur from the proposed activities (refer to Item 5

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

There are no IPFs from emissions , physical disturbances to the seafloor or wastes sent to shore for disposal from the proposed activities which could cause impacts to fisheries.Petrobras America Inc. Page O

- 6 Initial Exploration Plan December 2012 Mississippi Canyon Block 697 (OCS

- G 34019) **7. Marine Mammals**

GulfCet II studies revealed that cetaceans of the continental shelf and shelf

- edge were alm ost exclusively bottlenose dolphin and Atlantic spotted dolphin. Squid eaters, including dwarf and pygmy killer whale, Risso’s dolphin, rough

- toothed dolphin, and Cuvier’s beaked whale, occurred most frequently along the upper slope in areas outside of ant icyclones. IPFs that could cause impacts to marine mammals as a result of the proposed operations in Mississippi Canyon Block 697 include emissions, effluents, discarded trash and debris, and accidents.

Emissions: Noises from drilling activities, supp ort vessels and helicopters 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, environmental contaminants, and/or predat ion (Majors and Myrick, 1990). There is little conclusive evidence for long

- term displacements and population trends for marine mammals relative to noise.

Effluents: Drilling fluids and cuttings discharges contain components which may be detrimental to marine mammals. Most operational discharges are diluted and dispersed upon release. Any potential impact from drilling fluids would be indirect, either as a result of impacts on prey items or possibly through ingestion in the food chain (API, 1989).

Discarded trash and debris: Both en tanglement in, and ingestion 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 expected to substantially harm marine mammals. Operators are prohibited from deliberately discharging debris as mandated by MARPOL

- Annex V and

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

PAI will operate in accordance with the regulations and also avoid accidental loss of solid was te 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 s mall items and packaging materials, particularly those

made of non

- biodegradable, environmentally persistent materials such as plastic or glass.

Informational placards will be posted on all vessels and facilities having sleeping or food preparation capab ilities. All offshore personnel, including contractors and other support services

- related personnel (e.g. helicopter pilots, vessel captains and boat crews) will be indoctrinated on waste procedures, and

will view the video (or Microsoft PowerPoint presen tation), “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 will also receive an explanation from PAI management or the desig nated lease operator management that emphasizes their commitment to waste management in

accordance with NTL No. 2012

- G01.Petrobras America Inc. Page O

- 7 Initial Exploration Plan December 2012 Mississippi Canyon Block 697 (OCS

- G 34019) Accidents: Collisions between support vessels and cetaceans would be unusual events, however should one occur, death or injury to ma rine mammals is possible. Contract vessel operators can avoid marine mammals and reduce potential deaths by maintaining 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 dolphins, and the single species of manatee that may be encountered in the Gulf of Mexico OCS. Vessel crews must report sightings of any injured or dead protected marine mammal species immediately, reg ardless of whether the 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 a ddition, 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 required to remain available t o assist the respective salvage and stranding

network as needed.

Oil spills have the potential to cause sublethal oil

- related injuries and spill

- related deaths to marine mammals. However, it is unlikely that an accidental oil spill would occur from the p roposed activities (refer to Item 5 , Water Quality). Oil spill response activities 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 PAI’s OSRP is considered to be low when compared with the constituents and fractions of crude oils and diesel products. The activities proposed in th is plan will be covered by PAI’s OSRP (refer to information submitted in accordance with Appendix H ).

There are no other IPFs (including physical disturbances to the seafloor) 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 proposed operations include emissions, effluents, discarded trash and debris, and accidents. GulfCet II studies sighted most loggerhead, Kemp’s ridley and leatherback sea turtles over shelf w aters. Historically these species have been sighted up to the shelf’s edge. They appear to be more abundant east of the Mississippi River than they are west of the river (Fritts et al., 1983b; Lohoefener et al., 1990). Deep waters may be used by all

spec ies as a transitory habitat.

Emissions: Noise from drilling activities, support vessels, and helicopters may elicit a startle reaction from sea turtles, but th is is a temporary disturbance.

Effluents: Drilling fluids and cuttings discharges are not kno wn to be lethal to sea turtles. Most operational discharges are diluted and dispersed upon release. Any potential impact from drilling fluids would be indirect, either as a result of impacts on prey items or possibly through ingestion in the food chain (A PI, 1989).Petrobras America Inc. Page O

- 8 Initial Exploration Plan December 2012 Mississippi Canyon Block 697 (OCS

- G 34019) Discarded trash and debris: Both entanglement in, and ingestion of, debris have caused the death or serious injury of sea turtles (Balazs, 1985). The limited amount of marine debris, if any, resulting from the proposed activities is not expec ted to substantially harm sea turtles. Operators 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 including the United S tates Coast Guard (USCG) and the Environmental Protection Agency (EPA). PAI will operate in accordance with the regulations and also avoid accidental loss of solid waste items by maintaining waste management plans, manifesting trash sent to shore, and usi ng special precautions such as covering outside trash bins to prevent ac cidental loss of solid waste. Special caution will be exercised when handling and disposing of small items and packaging materials, particularly those made of non

biodegradable, enviro nmentally persistent mater ials 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 services

- relate d personnel (e.g. helicopter pilots, vessel captains 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” ) . Thereaf ter, all personnel will view the marine trash and debris training video annually. Offshore personnel will also receive an explanation from PAI management or the designated lease operator management that emphasizes their commitment to waste management in

a ccordance with NTL No. 2012

- G01.

Accidents: Collisions between support vessels and sea turtles would be unusual events, however should one occur, death or injury to sea turtles is possible. Contract vessel operators can avoid sea turtles and reduce poten tial deaths by maintaining a vigilant watch for sea turtles and maintaining a safe distance when they are sighted. Vessel crews should use a reference 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 their vessel, to the Marine Mammal and Sea Turtle Stranding Hotline at (888) 404

- 3922, the NMFS Sou theast 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

p rotectedspecies@boemre.gov . If the vessel is the responsible party, it is required to remain available to assist the respective salvage and stranding network as needed.

All sea turtle species and their life stages are vulnerable to the harmful effects of oil through direct contact or by fouling of their food. Exposure to oil can be fatal, particularly to juveniles and hatchlings. However, it is unlikely that an accidental oil spill would occur from the proposed activities (refer to
Item 5 , Water Quality). Oil spill response activities may increase vessel traffic in the area, which could add to the possibility of collisions with sea turtles. The activities proposed in this plan will be covered by PAI’s Regional Oil Spill Response Plan (refer to information submitted in accordance with Appendix H ).Petrobras America Inc. Page O

- 9 Initial Exploration Plan December 2012 Mississippi Canyon Block 697 (OCS

- G 34019) There are no other IPFs (including physical disturbances to the seafloor) from the proposed activities which could impact sea tu rtles.

**9. Air Quality**
Mississippi Canyon Block 697 is located 102 miles from the Breton Wilderness Area and 77 miles from shore. Applicable emissions data is included in Appendix G of the Plan.

There would be a limited degree of air quality degradation in the immediate vicinity of the proposed activities. Plan Emissions for the proposed activities do not exceed the annual exemption levels as set forth by BOEM

. Accidents and blowouts can release 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 rates, and the distance of Mississippi Canyon Block 697 from the coastline. There are no other IPF s (including effluents, physical disturbances to the seafloor, wastes sent to s hore for treatment or disposal ) from the proposed

activities which would impact air quality.

**10. Shipwreck Sites (known or potential)**

Potential IPFs that could impact known or unknown shipwreck sites as a result of the proposed operations in Mississippi Canyon Block 697 include disturbances to the seafloor.

Physical disturbances to the seafloor: A drillship is being used for the proposed activities; therefore, only an insignificant amount of seafloor will be disturbed. Because physical disturbances to the seafloor will be minimized by the use of a drillship, PAI’s proposed operations in Mississ ippi Canyon Block 697 would not cause impacts to shipwreck sites.

Additionally, Mississippi Canyon Block 697 is not located in or adjacent to an OCS block designated by BOEM as having a high probability for occurrence of shipwrecks, therefore, no adverse impacts are expected.

PAI will perform an AUV/ROV survey imaging 100% of the seafloor with sector scanning sonar within a minimum 500’ radius of the proposed well location(s) prior to or upon commencement of operations. These locations will be certified by an authorized marine archaeologist and by PAI to be clear of seafloor archaeological resources, including historic shipwrecks. Copies of the certifications and a circle radius plat of the survey area will be submitted to the BOEM. Should a resource be encountered, PAI will contact the BOEM immediately and make every reasonable effort to preserve and protect that cultural resource.

There are no other IPFs (including emissions, effluents, wastes sent to shore for treatment or disposal, or accidents) fro m the proposed activities that could cause impacts to shipwreck sites.Petrobras America Inc. Page O

- 10 Initial Exploration Plan December 2012 Mississippi Canyon Block 697 (OCS

- G 34019) **11. Prehistoric Archaeological Sites** IPFs that could cause impacts to prehistoric archaeological sites as a result of the proposed operations in Mississippi Canyon Block 697 are physic al disturbances to the seafloor and accidents (oil spills).

Physical Disturbances to the seafloor: Although the operations proposed will be conducted by utilizing a drillship, which would cause only an insignificant amount of seafloor to be disturbed, Mississippi Canyon Block 697 is located inside the Archaeological Prehistoric high probability lines. PAI will report to BOEM the discovery of any object of prehistoric archaeological significance and make every reasonable effort to preserve and protect th at cultural resource.

PAI will perform an AUV/ROV survey imaging 100% of the seafloor with sector scanning sonar within a minimum 500’ radius of the proposed well location(s) prior to or upon commencement of operations. These locations will be certified by an authorized marine archaeologist and by PAI to be clear of seafloor archaeological resources. Copies of the certifications and a circle radius plat of the survey area will be submitted to the BOEM. Should a resource be encountered, PAI will contact the BOEM immediately and make every reasonable effort to preserve and protect that cultural resource. .

Accidents: An accidental oil spill has the potential to cause some detrimental effects to prehistoric archaeological sites if the release were to occu r subsea. However, it is unlikely 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 PAI’s Regional Oil Spill Response Plan (refer to information submitted

in accordance with Appendix H ).

There are no other IPFs (including emissions, effluents or wastes sent to shore for treatment or disposal) from the proposed activities which could impact prehistoric archeological sites.

Vicinity of Offshore Loc ation

**1. Essential Fish Habitat (EFH)**
IPFs that could cause impacts to EFH as a result of the proposed operations in Mississippi Canyon

Block 697 include effluents and accidents. EFH includes all estuarine and marine waters and substrates

in the Gulf of M exico.

Effluents: The Live Bottom Low Relief Stipulation, the Live Bottom (Pinnacle Trend) Stipulation, and the Eastern Gulf Pinnacle Trend Stipulation would prevent most of the potential impacts on live

bottom communities and EFH from operational wast e discharges. Levels of contaminants in drilling muds and cuttings and produced

- water discharges, discharge

- rate restrictions, and monitoring and toxicity testing are regulated by the EPA NPDES permit, thereby eliminating many significant biological or eco logical effects. Operational discharges are not expected to cause significant adverse impacts to EFH.Petrobras America Inc. Page O

- 11 Initial Exploration Plan December 2012 Mississippi Canyon Block 697 (OCS

- G 34019) Accidents: An accidental oil spill has the potential to cause some detrimental effects on EFH . Oil spills that contact coastal bays and estuaries, as well 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 (refe r to Item 5 , Water Quality). The activities proposed in this plan will be covered by PAI’s Regional OSRP (refer to information submitted in Appendix H ).

There are no other IPFs (including emissions, physical disturbances to the seafloor and 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 result of the proposed activities include air emissions, accidental oil spills, and discarded trash and debris from vessels and the facilities.

Emissions: Emissions of pollutants into the atmosphere from these activities are far below

concentrations which could harm coastal and marine birds.

Accidents: An oil spill would cause lo calized, low

- 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 pelagic birds feeding at the spill location may experience chronic,

no nfatal, 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 PAI’s Regional OSRP (refer to information submitted in Appendix H ).

Discarded trash and debris : Marine and pelagic birds could become entangled and snared in discarded trash and debris, or ingest small plastic debris, which can cause permanent injuries and death. Operators 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 including the United States Coast Guard (USCG) and the Environmental Protection Agency (EPA). PAI will operate in accordance with the regulation s and also avoid accidental 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 loss of solid waste. Special

caution will be exercised when 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 posted on all vessels and faciliti es having sleeping or food preparation capabilities. All offshore personnel, including contractors and other support services

related personnel (e.g. helicopter pilots, vessel captains and boat crews) will be indoctrinated on waste procedures, and will vie w 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 will also receive an e xplanation from PAI management or the designated lease operator management that emphasizes their commitment to waste management in accordance with NTL No. 2012

- G01. Debris, if any, from thesePetrobras America Inc. Page O

- 12 Initial Exploration Plan December 2012 Mississippi Canyon Block 697 (OCS

- G 34019) proposed activities will seldom interact with marine and pelagi c birds; therefore, the effects will be negligible.

There are no other IPFs (including effluents, 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, effluents, physical disturbances to the seafloor, wastes sent to shore for treatment or disposal or accidents, including an accidental H 2 S release) from the proposed activi ties 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 ab sent.

Coastal and Onshore

**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 recre ational beaches and associated resources. Due to the distance from shore (77 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 PAI’s Region al OSRP (refer to information submitted in Appendix H ).

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 amount of marine debris, if any, resulting from the proposed activities. Operators 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 including the United States Coast Guar d (USCG) and the Environmental Protection Agency (EPA). PAI will operate in accordance with the regulations and also avoid accidental loss of solid waste items by maintaining waste management plans, manifesting trash sent to shore, and using special precau tions 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 those made of non

- biodegradable, environmentally persist ent 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 services

- related personnel (e.g. helicopter pilots, vessel captains and boat crews) will be indoctrinated on waste procedures, and will view the video (or Microsoft PowerPoint presentation), “Think About It” ( previously “All WashedPetrobras America Inc. Page O

- 13 Initial Exploration Plan December 2012 Mississippi Canyon Block 697 (OCS

- G 34019) Up: The Beach Litter Problem” ). Thereafter, all per sonnel will view the marine trash and debris training video annually. Offshore personnel will also receive an explanation from PAI management or the designated lease operator management that emphasizes their commitment to waste management in

accordance wi th NTL No. 2012

- G01.

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

**2. Wetlands**
IPFs from the proposed acti vities that could cause impacts to wetlands include accidents (oil spills) and

discarded trash and debris.

Accidents: It is unlikely that an oil spill would occur from the proposed activities (refer to Item 5

, Water Quality). Due to the distance from sh ore (77 miles) and the response capabilities that would be implemented, no impacts are expected. The activities proposed in this plan will be covered by PAI’s Regional OSRP (refer to information submitted in Appendix H ).

Discarded trash and debris: Ther e will only be a limited amount of marine debris, if any, resulting from the proposed activities. Operators are prohibited from deliberately discharging debris as mandated by MARPOL

- Annex V and the Marine Plastic Pollution Research and Control Act, and

re gulations imposed by various agencies including the United States Coast Guard (USCG) and the Environmental Protection Agency (EPA). PAI will operate in accordance with the regulations and also avoid accidental 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 loss of solid waste. Special caution will be exercised when handling and disposing of small items and packaging mate rials, particularly those made of non

- biodegradable, 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 perso nnel, including contractors and other support services

- related personnel (e.g. helicopter pilots, vessel captains and boat crews) will be indoctrinated on waste procedures, and will view the video (or Microsoft PowerPoint presentation), “Think About It” ( p reviously “All Washed Up: The Beach Litter Problem” ). Thereafter, all personnel will view the marine trash and debris training video annually. Offshore personnel will also receive an explanation from PAI management or the designated lease operator managem ent that emphasizes their commitment to waste management in

accordance with NTL No. 2012

- G01.

There are no other IPFs (emissions, effluents, physical disturbances to the seafloor, or wastes sent to shore for treatment or disposal) from the proposed activi ties which could impact wetlands.Petrobras America Inc. Page O

- 14 Initial Exploration Plan December 2012 Mississippi Canyon Block 697 (OCS

- G 34019) **3. Shore Birds and Coastal Nesting Birds**

Accidents: Oil spills could cause impacts to shore birds and coastal nesting birds. However, it is unlikely that an oil spill would occur from the proposed activities (refer to It em 5 , Water Quality). Given the distance from shore (77 miles) and the response capabilities that would be implemented, no impacts are expected. The activities proposed in this plan will be covered by PAI’s Regional OSRP (refer to information submitted in Appendix H ).

Discarded trash and debris: Coastal and marine birds are highly susceptible to entanglement in floating, submerged, and beached marine debris: specifically plastics. Operators are prohibited from deliberately discharging debris as mandat ed 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). PAI will operate in

accordance with t he regulations and also avoid accidental 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 loss of solid waste. Specia l caution will be exercised when 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 posted on vessels and every facility that has sleeping or food preparation capabilities. All offshore personnel, including contractors and other support services

related personnel (e.g. helicopter pilots, vessel captains and boat crews) will be indoctrinated on waste

proce dures, 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 wil l also receive an explanation from PAI 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, effluents, 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 activities could cause impacts to coastal wildlife refuges. However, it is unlikely that an oil spill would occur from the proposed activities (refer to Item 5, Water Quality). Due to the distance from shore (77 miles) and the response capabilities that would be imp lemented, no impacts are expected. The activities proposed in this plan will be covered by PAI’s Regional OSRP (refer to information submitted in Appendix H ).

Discarded trash and debris: Operators are prohibited from deliberately discharging debris as mandated by MARPOL

- Annex V, the Marine Plastic Pollution Research and Control Act and regulations imposed by various agencies including the United States Coast Guard (USCG) and the

Environm ental Protection Agency (EPA). PAI will operate in accordance with the regulations and also avoid accidental loss of solid waste items by maintaining waste management plans, manifesting trashPetrobras America Inc. Page O

- 15 Initial Exploration Plan December 2012 Mississippi Canyon Block 697 (OCS

- G 34019) sent to shore, and using special precautions such as covering o utside 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 those 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 services

related personnel (e.g. helicopter pilots, vessel captains 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

mar ine trash and debris training video annually. Offshore personnel will also receive an explanation from PAI management or the designated lease operator management that emphasizes their commitment to waste management in accordance with NTL No. 2012

- G01.

Th ere are no other IPFs (emissions, effluents, 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.

**5. Wilderness Areas**

Accidents: An acc idental oil spill from the proposed activities could cause impacts to wilderness areas. However, it is unlikely that an oil spill would occur from the proposed activities (refer to Item

5 , Water Quality). Due to the distance from the nearest designated Wil derness Area (102 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 PAI’s Regional OSRP (refer to information

submitted in Appendix H).

Dis carded trash and debris: Operators are prohibited from deliberately discharging debris as mandated by MARPOL

- Annex V, 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). PAI will operate in accordance with the regulations and also avoid accidental loss of solid waste items by maintaining waste management plans, manifesting trash sent to shore, and using special precau tions 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 those made of non

- biodegradable, environmentally persi stent 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 services

related personnel (e.g. helicopter pilots, vessel captains 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 per sonnel will view the marine trash and debris training video annually. Offshore personnel will also receive an explanationPetrobras America Inc. Page O

- 16 Initial Exploration Plan December 2012 Mississippi Canyon Block 697 (OCS

- G 34019) from PAI management or the designated lease operator management that emphasizes their commitment to waste management in accordance wi th NTL No. 2012

- G01.

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

areas.

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

(C) IMPACTS ON PROPOSED ACTIVITIES

The site

– specific environmental conditions have been taken into account for the proposed activities. No impacts are expected on the proposed activities from site

- specific environmental conditions.

(D) ENVIRONMENTAL HAZARD S During the hurricane season, June through November, the Gulf of Mexico is impacted by an average of ten tropical storms (39

- 73 mph winds), of wh ich six become hurricanes ( > 74 mph winds) . Due to its location in the gulf, Mississippi Canyon Block 697 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 present physical hazards to operators and vessels, damage exploration or production equipment, or result in the release of hazardous materials (including hydrocarbons). Additionally, the displacement of equipm ent 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. Drilling & completion

a. Secure well

b. Secure rig / platform

c. Evacuate personnel

Drilling activities will be conducted in accordance with NTL No.’s 2008

- G09, 2009

- G10, and 2010

- N10.

2. Structure Installation Operator will not conduct structure installation operations during Tropical Storm or

Hurricane threat.

(E) ALTERNATIV ES

No alternatives to the proposed activities were considered to reduce environmental impacts.Petrobras America Inc. Page O

- 17 Initial Exploration Plan December 2012 Mississippi Canyon Block 697 (OCS

- G 34019) (F) MITIGATION MEASURES

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

(G) CONSULTATION

No agencies or persons were consulted regarding potential impacts associated with the proposed activities. Therefore, a list of such entities has not been provided.

(H) PREPARER(S)

Jami Christley

J. Connor Consulting, Inc. 16225 Park Ten Place, Suite 700
Houston, TX 77084 (281) 578

- 3388 jami.christley@jccteam.com

(I) REFERENCES

Authors:

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

marine mammals: a lit erature review. Washington, DC: American Petroleum Institute. 385 pp.

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 Marin e Debris, 26

- 29 November 1984, Honolulu, HI. U.S. Dept. of Commerce. NOAA Tech. Memo. NOAA

- TM

NMFS

- 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, Argonne National Laboratory, ANL/EAD/TM

- 43.

Daly, J.M. 1997. Controlling the discharge of synthetic

- based drilling fluid contaminated cuttings in waters of the United States. U.S. Environmental Protection Agency, Office of Water. Work Plan,

Jun e 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, Anchorage. BLM

- YK

- ES

- 81

- 006

- 1792.

Laist, D.W. 1997. Impacts of marine d ebris: entanglement of marine life in marine debris including a comprehensive list of species with entanglement and ingestion records. In: Coe, J.M. and D.B.Petrobras America Inc. Page O

- 18 Initial Exploration Plan December 2012 Mississippi Canyon Block 697 (OCS

- G 34019) Rogers, eds. Marine debris: sources, impacts, and solutions. New York, NY: Springer

- Verlag. Pp

. 99

- 139.

Majors, A.P. and A.C. Myrick, Jr. 1990. Effects of noise 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 Mam mal Commission. 1999. Annual report to Congress

– 1998.

Piatt, J.F., C.J. Lensink, W. Butler, M. Kendziorek, and D.R. Nysewander. 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 birds on the Canadian west c oast. The Canadian

Field

- Naturalist. 89:278

- 298.

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

• Hazard Surveys

• BOEM EIS’s:

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

- 001

o GOM Central and Western Pl anning Areas Sales 166 and 168 Final Environmental I mpact
Statement. BOEM 96

- 0058

.P etrobras America Inc. Page P

- 1 Initial Exploration Plan December 2012 Mississippi Canyon Block 697 (OCS

- G 34019) APPENDIX P

ADMINISTRATIVE INFORMATION

( A) E XEMPTED INFORMATION DESCRIPTION The proposed bottom

- hole locations of the planned well have been removed from the public information copy of the EP as well as any discussions of the target objectives, geologic or geophysical data, and any interpreted geology.

(B) B IBLIOGRAPHY Not applicable.