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-09697

Type - Initial Exploration Plan

Lease(s) - OCS-G34455 Block - 692 Mississippi Canyon Area

Operator - Murphy Exploration & Production Company - USA

Drilling Wells Locations A, B, and C

Not Found

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.

Ulunma Nwokeafor

Plan Coordinator Description -

Rig Type - Subject: From: June 25, 2013

## 16290 Katy Freeway, Suite 110 Houston, Texas 77094

Robert Lanza Robert_Lanza@murphyoilcorp.com

INITIAL EXPLORATION PLAN

LEASE OCS-G 34455

MISSISSIPPI CANYON BLOCK 692 (SEA EAGLE PROSPECT)

PREPARED BY:

R.E.M. Solutions, Inc. 15021 Katy Freeway, Suite 620 Houston, Texas 77094 281.492.8562 (Phone)

281.492.6117 (Fax) christine@remsolutionsinc.com

DATED: February 14, 2013

Date of

Submittals &

Amendments Description

2/14/2013 Initial submittal of Initial Exploration Plan 2/25/2013 BOEM’s email request for additional information 3/1/2013 Submittal of BOEM requested information (Complete copies with CD’s)
3/21/2013 Submittal of revised acti vity dates (Plans Form and AQR) 3/26/2013 Submittal of revised Waste and Discharge Tables 4/5/2013 Submittal of revised Waste and Discharge Tables 4/26/2013 Submittal of revised Waste & Discharge Tables 5/2/2013 Final Submittal of Initial Exploration Plan 6/10/2013 Revised Oil Spill Information Section

# Plan Contents
(30 CFR Part 550.211 and 550.241)

Mississippi Canyon Block 692 (Lease OCS-G 34455) 2/14/2013 Initial Exploration Plan Page 1 

## A. Plan Contents

Lease OCS-G 34455, Mississippi Canyon Block 69 2 was acquired by Murphy Exploration & Production Company and Ecopetrol Am erican Inc. at the Central Gulf of Mexico Lease Sale No. 222 held on June 20, 2012. The lease was issued wi th an effective date of November 1, 2012 and a primary term ending date of October 30, 2022.

The current lease operator and ownership are as follows:

Area/Block

Lease No. Operator Ownership

Mississippi Canyon Block 692

Lease OCS-G 34455 Murphy Exploration & Production Company Ecopetrol America Inc. Murphy Exploration & Production Company

Murphy Exploration & Production Company proposes for the drilling of three subsea well locations in Mississippi Canyon Block 692. The wells will be drilled with the Discoverer Deep Seas drillship (utilizing subsea BOP’s).



## B. Location

Included are the following attachments:

Attachment A: Form BOEM 137 “OCS Plan Information Form”

Attachment B: Well Location Plat

Attachment C: Bathymetry Map (proposed surface location disturbance areas)



## C. Safety and Pollution Prevention Features

Safety of personnel and protection of the environmen t during the proposed operations is of primary concern with Murphy, and mandates regulatory compliance with the contractors and vendors associated with the proposed operations as follows:

Bureau of Ocean Energy Management (BOE M) and the Bureau of Safety and Environmental Enforcement (BSEE) mandates that the operations in this Plan comply with well control, pollution prevention, construction and pers onnel safety as described in Title 30 CFR Part 250, Subparts C, D, E, O and S; and as further clarified by Notices to Lessees.

The agencies cited above conducts periodic announced and unannounced onsite inspections of offshore facilities to confirm operators are complyin g with lease stipulations, operating regulations, approved plans, and other conditions; as well as to assure safety and pollution prevention requirements are being met. The National Potential Incident of Noncompliance (PINC) List serves as the baseline for these inspections.

# Plan Contents
(30 CFR Part 550.211 and 550.241)

Mississippi Canyon Block 692 (Lease OCS-G 34455) 2/14/2013 Initial Exploration Plan Page 2 U. S. Coast Guard regulations contained in Title 33 CFR mandate the appropriate life rafts, life jackets, ring buoys, etc., be maintained on the facility at all times.

U. S. Environmental Protection Agency regulations contained in the NPDES General Permit GMG290000 mandate that supervisory and certain designated personnel on-board the facility be familiar with the effluent limitations and guidelin es for overboard discharges into the receiving

waters.



## D. Storage Tanks and Vessels

The following table details the storage tanks and/or production vessels that will store oil (capacity greater than 25 bbls. or more) and be used to support the proposed activities (MODU, barges, platform, etc.):

T ype of Storage Tank T ype of Facilit y T ank Capacit y (bbls) Number of

Tanks T otal Capacity (bbls) Fluid Gravity (API)
Fuel Oil Drillship 25,000 1 25,000 No. 2 (Diesel)



## E. Pollution Prevention Measures

Murphy does not propose any additional safety, pollution prevention, or early spill detection measures beyond those required by 30 CFR Part 550.



## F. Additional Measures

Murphy does not propose any additional safety, pollution prevention, or early spill detection measures beyond those required by 30 CFR Part 550.

# General Information
(30 CFR Part 550.213 and 550.243)

Mississippi Canyon Block 692 (Lease OCS-G 34455) 2/14/2013 Initial Exploration Plan Page 3 

## A. Application and Permits

The following Federal/State applications will be submi tted for the activities provided for in this Plan (exclusive of BOEM/BSEE permit applications an d general permits issued by the EPA and COE).

Application/Permit Issuing Agency Status

CZM Consistency Certification CMD Pending Rig Move Reports USCG, MWA and NGA Pending



## B. Drilling Fluids

Murphy plans to use the following drilling flui ds for the operations proposed under this Plan:

Proposed

Well Location Type of Drilling Fluid Estimated volume of Drilling Fluid to be

used Per Well A – C Water-based (seawater, freshwater, barite) Synthetic-based (internal, olefin, ester) 15,000 bbls 12,000 bbls



## C. New or Unusual Technology

Murphy does not propose using any new and/or unusual technology for the operations proposed in

this Plan.



## D. Bonding Statement

The bond requirements for the activities and facilities proposed in this EP are satisfied by an Areawide Development bond, furnished and maintain ed according to 30 CFR Part 556, Subpart I; NTL No. 2000-G16, “Guidelines for General Leas e Surety Bonds;” and a current BOEM-approved deferment from providing additional security un der 30 CFR 556.53(d) and National NTL No. 2008- N07 “Supplemental Bonding Procedures.” If, any point, Murphy Exploration & Production Company no longer qualifies for a supplemen tal bonding deferment, Murphy Exploration & Production Company will either provide the required additional security or a third party guarantee within 60 days after such disqualification.



## E. Oil Spill Financial Responsibility (OSFR)

Murphy Exploration & Production Company (B OEM Operator No. 02647) will demonstrate oil spill financial responsibility for the facilities proposed in this EP according to 30 CFR Part 553, and NTL 2008-N05, “Guidelines for Oil Spill Financ ial Responsibility for Covered Facilities.”

# General Information
(30 CFR Part 550.213 and 550.243)

Mississippi Canyon Block 692 (Lease OCS-G 34455) 2/14/2013 Initial Exploration Plan Page 4 

## F. Deepwater Well Control Statement

Murphy Exploration & Production Company (B OEM Operator No. 02647) has the financial capability to drill a relief well and condu ct other emergency well control operations.



## G. Blowout Scenario

Murphy will drill to the objective sands outlined in Geological and Geophysical Section of this Plan utilizing a typical structural, conductor, surface an d production casing progra m. If mandated by wellbore conditions, an intermediate casing string will be set prior to drilling through the objective sand. In the event of a blowout during the co urse of drilling open hole in the objective sands, Murphy anticipates a rate of 296,918 STBO/D with an anticipated gravity of 37°. The wellbore would most likely not bridge over. Murphy wo uld immediately activate its Regional Oil Spill Response Plan and Spill Management Team to initia te potential recovery of liquid hydrocarbons on the receiving water and review potential well intervention options. In the event a relief well is initiated, Murphy does not anticipate any delays in acquiring a rig to conduct the proposed operations. Dependent upon the interval the well wa s drilled to, and potential interval for bridging over and surface intervention; if required, it coul d take at least 76 days to mobilize a equipment and/or a rig to the field and drill the relief well. Ba sed on well intervention outlined in the potential worse-case discharge scenarios (See Attachment O ) , the potential for drilling a relief well and a rig not being immediately available would be a total of 76 days and a potenti al total of 22,565,768 barrels during that time span.

# Geological and Geophysical Information
(30 CFR Part 550.214 and 550.244)

Mississippi Canyon Block 692 (Lease OCS-G 34455) 2/14/2013 Initial Exploration Plan Page 5 

## A. Geological Description

Included as Attachment D are the geological targets and a narra tive of trapping features proposed

in this Plan.



## B. Structure Contour Maps

Included as Attachment E are current structure maps (depth base and expressed in feet subsea) depicting the entire lease coverage area; drawn on top of the prospective hydrocarbon sands. The maps depict each proposed bottom hole locati on and applicable geological cross section.



## C. Interpreted Seismic Lines

Included as Attachment F is a copy of the migrated and annotated (shot points, time lines, well paths) deep seismic line within 500 feet of the surface locations being proposed in the Plan.



## D. Geological Structure Cross-Sections

An interpreted geological cross section depicting the proposed well locations and depth of the proposed wells is included as Attachment G

. Such cross section corresponds to each seismic line being submitted.



## E. Shallow Hazards Report

Geoscience Earth & Marine Services conducte d a geologic and stratigraphic assessment of Mississippi Canyon Block 692 on be half of Murphy Exploration & Production Company - USA. The purpose of the survey was to evaluate geologic conditions and inspect for potential hazards or constraints to lease development.

Four (4) copies of these reports are being submi tted to the Bureau of Ocean Energy Management under separate cover.



## F. Shallow Hazards Assessment

Utilizing the 3D deep seismic exploration data a shallow hazards analysis was prepared for the proposed surface locations, evaluating seafloor and subsurface geologic and manmade features and conditions, and is included as Attachment H

.



## G. High Resolution Seismic Lines

Utilizing the 3D deep seismic exploration data the survey data lines for each surface location disturbance proposed in this Plan is included with Attachment H.

# Geological and Geophysical Information
(30 CFR Part 550.214 and 550.244)

Mississippi Canyon Block 692 (Lease OCS-G 34455) 2/14/2013 Initial Exploration Plan Page 6 

## H. Stratigraphic Column

A generalized biostratigraphic/lithostratigraphic column from the seafloor to the total depth of the proposed wells is included as Attachment I

.



## I. Time vs. Depth Tables

A time versus depth table is included as Attachment J

.

# Hydrogen Sulfide (H2S) Information
(30 CFR Part 550.215 and 550.245)

Mississippi Canyon Block 692 (Lease OCS-G 34455) 2/14/2013 Initial Exploration Plan Page 7 

## A. Concentration

Murphy does not anticipate encountering H2S while conducting the proposed exploratory operations provided for under this Plan.



## B. Classification

In accordance with Title 30 CFR 250.490(c), Mu rphy requests that Mississi ppi Canyon Block 692 be classified by the Bureau of Safety and Environmenta l Enforcement Regional Supervisor as an area where the absence of hydrogen sulfide has been confirmed based on the following correlative well which was drilled to the stratigraphic equivale nt of the wells proposed in this Plan:

Lease Area/Block Well No. H2S Concentration

OCS-G 16645 MC 737 001 0%



## C. H2S Contingency Plan

According to NTL 2008-G04, this section of the Plan is not applicable to the proposed operations.



## D. Modeling Report

According to NTL 2008-G04, this section of the Plan is not applicable to the proposed operations.

# Biological, Physical and Socioeconomic Information
(30 CFR Part 550.216 and 550.247)

Mississippi Canyon Block 692 (Lease OCS-G 34455) 2/14/2013 Initial Exploration Plan Page 8 

## A. Chemosynthetic Communities Report

The proposed seafloor disturbing activities vary in water depths from 5718 feet to 6193 feet.

MAPS

Submitted under separate cover are the maps prep ared using high resolution seismic information and/or 3-D seismic data to depict bathymetry, seaf loor and shallow geological features, surface location of each proposed well and platform, posi tions of anchors and chains relative to the proposed operations, and a radius circle of 500 feet around each such location.

ANALYSIS

Submitted under separate cover is the analysis of se afloor features and areas that could be disturbed by the activities proposed in this Plan.

Features or areas that could support high-den sity chemosynthetic commun ities are not located within 2000 feet of each proposed mu ds and cuttings discharge location.

Murphy will be utilizing a dynamically positioned drillship; therefore; no features or areas that could support high-density chemosynthetic communities would be affected by seafloor disturbances resulting from the use of anchors.



## B. Topographic Features Map

BOEM and the National Marine Fisheries Serv ice (NMFS) have entered into a programmatic consultation agreement for Essential Fish Habitat th at requires that no bottom disturbing activities (including rig placement, and rig or construction base use of anchors, chains, cables, and wire ropes) within 305 meters (1000 feet) of a “No-A ctivity Zone” of a topographic feature.

If such proposed bottom disturbing activities are within 1000 feet of a no activity zone, the BOEM is required to consult with the NMFS.

The activities proposed in this Plan ar e not affected by a topographic feature.



## C. Topographic Features Statement (Shunting)

The activities proposed in this Plan are not affected by a topographic feature; therefore, Murphy is not required to shunt drill cuttings and drill fluids.

# Biological, Physical and Socioeconomic Information
(30 CFR Part 550.216 and 550.247)

Mississippi Canyon Block 692 (Lease OCS-G 34455) 2/14/2013 Initial Exploration Plan Page 9 

## D. Live Bottoms (Pinnacle Trend) Map

Certain leases are located in areas characterized by the existence of live bottoms. Live bottom (Pinnacle trend features) are small, isolated, lo w to moderate relief carbonate reefal features or outcrops of unknown origin or hard substrates exposed by erosion that provide surface area for the growth of sessile invertebrates and attract large numb er of fish. Known features occur in an area of topographic relief in the northeastern portion of the western Gulf of Mexico. These leases contain a Live Bottom Stipulation to ensure that impacts fr om nearby oil and gas activities on these live bottom areas are mitigated to the greatest extent possible.

For each affected lease, the Live Bottom Stipul ation requires that you prepare a live bottom survey report containing a bathymetry map prepared by us ing remote sensing techniques. This report must be submitted to the BOEM OCS Region before you may conduct any drilling activities or install any structure, including lease term pipelines in accordance with NTL 2009-G39.

Mississippi Canyon Block 692 is not located within the vicinity of a proposed live bottom (Pinnacle trend) area.



## E. Live Bottoms (Low Relief) Map

Certain leases are located in areas characterized by the existence of live bo ttoms. Live bottom (Low relief features) are seagrass communities; those areas that contain biological assemblages consisting of sessile invertebrates living upon and attached to naturally occurring hard or rocky formations with rough, broken, or smooth topography; and areas where a hard substrate and vertical relief may favor the accumulation of turtles, fishes or other fauna. These features occur in the Eastern Planning

Area of the Gulf of Mexico.

Mississippi Canyon Block 692 is not located within the vicinity of a proposed live bottom (Low Relief) area.



## F. Potentially Sensitive Biological Features

Oil and gas operations and transportation activities in the vicinity of potentially sensitive biological features may cause deleterious impacts to the sessile and pelagic communities associated with those habitats. Adverse impacts to th e communities could be caused by mechanical damage from drilling rigs, platforms, pipelines and anchor employment.

Mississippi Canyon Block 692 is not located within the vicinity of a proposed sensitive biological

feature area.

# Biological, Physical and Socioeconomic Information
(30 CFR Part 550.216 and 550.247)

Mississippi Canyon Block 692 (Lease OCS-G 34455) 2/14/2013 Initial Exploration Plan Page 10 

## G. Remotely Operated Vehicle (ROV) Monitoring Survey Plan

Pursuant to NTL No. 2008-G06, ope rators may be required to conduct remote operated vehicle (ROV) surveys during pre-spudding and post-drilling operations for the purpose of biological and physical observations.

As indicated on BOEM’s website, Mississippi Canyon Block 692 are located within Grid No. 16 and

indicates sufficient ROV data is available.



## H. Threatened or Endangered Species, Critical Habitat, and

Marine Mammal Information

The Bureau of Ocean Energy Management revised Title 30 CFR Part 550, Subpart B to require lessees/operators to address the federally listed species with designated critical habitat as well as marine mammals which may be impacted by the pr oposed activities addressed under this Plan.

Attachment K outlines the listed species under the jurisdiction of NOAA fisheries are known to occur in the Gulf of Mexico which may be affected by the proposed action.

Murphy does not anticipate that the proposed activiti es will occur in the presence of federally listed threatened or endangered species and critical habitat designated under the ESA and marine mammals protected under the MMPA based on the information is the referenced Attachment.

The proposed activities in Mississippi Canyon Block 692 are not located in the presence of federally listed threatened or endangered species and critic al habitat designated under the ESA and marine mammals protected under the MMPA.



## I. Archaeological Report

In accordance with NTL’s 2011-JOINT-G01 an d 2005-G07, Mississippi Canyon Block 692 is located within an area requiring a 300-meter spacing survey.

This requirement provides protection of prehisto ric and historic archaeological resources by requiring remote sensing surveys in areas designated to have a high probability for archaeological

resources.

As per NTL’s 2011-JOINT-G01 and 2005-G07, this survey was conducted and is being submitted under separate cover to the Bureau of Ocean Energy Management.



## J. Air and Water Quality Information

According to NTL 2008-G04, this section of the Plan is not applicable to the proposed operations.

# Biological, Physical and Socioeconomic Information
(30 CFR Part 550.216 and 550.247)

Mississippi Canyon Block 692 (Lease OCS-G 34455) 2/14/2013 Initial Exploration Plan Page 11 

## K. Socioeconomic Information

According to NTL 2008-G04, this section of the Plan is not applicable to the proposed operations.

# Waste and Discharge Information
(30 CFR Part 550.217 and 550.248)

Mississippi Canyon Block 692 (Lease OCS-G 34455) 2/14/2013 Initial Exploration Plan Page 12 

## A. Projected Generated Wastes

Included as Attachment L is a listing of the projected generated wa stes associated wi th the activities provided for in this Plan, detailing the type of waste, composition and projected amount.

Murphy does not propose any treating, storing, or downhole disposal of these wastes at the proposed wells/MODU.



## B. Projected Ocean Discharges

Included as Attachment L is a listing of the projected ocean disc harges associated with the activities provided for in this Plan, detailing the type of was te, total amount to be discharged, discharge rate

and method.



## C. Modeling Report

According to NTL 2008-G04, this section of the Plan is not applicable to the proposed operations.

# Air Emissions Information
(30 CFR Part 550.218 and 550.249)

Mississippi Canyon Block 692 (Lease OCS-G 34455) 2/14/2013 Initial Exploration Plan Page 13 The primary air pollutants associated with OCS exploration activities are:

 Carbon Monoxide

 Particulate Matter

 Sulphur Oxides

 Nitrogen Oxides

 Volatile Organic Compounds

These offshore air emissions result mainly from the drilling rig operations, helicopters, and support vessels. These emissions occur mainly from combustion or burning of fuels and natural gas and from venting or evaporation of hydrocarbons. The combustion of fuels occurs primarily on dieselpowered generators, pumps or motors and from lighter fuel motors. Other air emissions can result from catastrophic events such as oil spills or blowouts.



## A. Emissions Worksheets and Screening Questions

The Projected Air Quality Emissions Report (For m BOEM-138) addresses the proposed drilling operations utilizing a typical dynamically positioned dr illship with related support vessel information.

As evidenced by Attachment M were completed based on the operations being more than 90% if the calculated complex total.



## B. Emissions Reduction Measures

The projected air emissions are within the ex emption level; therefore, no emission reduction measures are being proposed.



## C. Verification of Nondefault Emissions Factors

Murphy has elected to use the defaul t emission factors as provided in Attachment M

.



## D. Non-Exempt Activities

The proposed activities are within th e exemption amount as provided in Attachment M

.



## E. Modeling Report

According to NTL 2008-G04, this section of the Plan is not applicable to the proposed operations.

# Oil Spill Information
(30 CFR Part 550.219 and 550.250)

Mississippi Canyon Block 692 (Lease OCS-G 34455) 2/14/2013 Initial Exploration Plan Page 14 

## A. Oil Spill Response Planning

All the proposed activities in this Joint Initial Ex ploration Plan will be covered by the Regional Oil Spill Response Plan (OSRP) filed by Murphy Exploration & Production Company - USA’s (Operator No. 02647) in accordance with Titl e 30 CFR Part 254 submitted in April 2013 and approved June 4, 2013. Murphy has determined th at the proposed worst-case discharge from the well location does not supersede our existing Mi ssissippi Canyon Block 600 listed in the Regional OSRP. The calculations and assumptions for our Regional OSRP were verified in Plan Control No.

N- 9687.



## B. Spill Response Sites

The following locations will be used in the event and oil spill occurs as a result of the proposed

activities.

Primary Response Equipment Location Pre-Planned Staging Location(s) Lake Charles, LA Houma, LA Houma, LA



## C. OSRO Information

Murphy utilizes Clean Gulf Associates (CGA) as it s primary provider for e quipment, which is an industry cooperative owning an inventory of oil spill clean-up equipment. CGA is supported by the Marine Spill Response Corporation’s (MSRC), wh ich is responsible for storing, inspecting, maintaining and dispatching CGA’s equipment. The MSRC STARS network provides for the closest available personnel, as well as an MSRC supervisor to operate the equipment.



## D. Worst-Case Scenario Determination

Category Regional OSRP Exploration Plan Type of Activity Exploratory / MODU Exploratory / MODU Facility Surface Location Mississippi Canyon Block 600 Mississippi Canyon Block 692 Facility Description Location A Location A

Distance to Nearest Shoreline (Miles) 53 miles 63 miles

Volume: Storage Tanks (total) Flowline (On Facility) Lease Term Pipeline Uncontrolled Blowout (day)

Potential 24 Hour Volume (Bbls.) 335,032 bbls 296,918 bbls

Type of Liquid Hydrocarbon Oil Oil API Gravity 30° 34.7°

# Oil Spill Information
(30 CFR Part 550.219 and 550.250)

Mississippi Canyon Block 692 (Lease OCS-G 34455) 2/14/2013 Initial Exploration Plan Page 15 Since Murphy has the capability to respond to the appropriate worst-case spill scenario included in its Regional OSRP approved on June 4, 2013, and since the worst-case scenario determined for our EP does not replace the worst-case scenario in ou r Regional OSRP, I hereby certify that Murphy has the capability to respond, to the maximum extent pr acticable, to a worst- case discharge, or a substantial threat of such a discharge, resulti ng from the activities proposed in our EP.

Included is NTL 2010-N06 data pertaining to th e assumptions and calculations for the potential worse case discharge associated with the proposed drilling activities in the Plan; in addition to preventative and intervention measures, and response planning and strategies.



## E. Oil Spill Response Discussion

Included as Attachment N is the Oil Spill Response Discussion/OSRAM for the proposed exploratory operations.



## F. Modeling Report

According to NTL 2008-G04, this section of the Plan is not applicable to the proposed operations.



## G. NTL 2010-N06

Included as Attachment O , is data pertaining to the assumpti ons and calculations for the potential worse-case discharge associated with the proposed a ctivities in the Plan; in addition to preventative and intervention measures, and response planning and strategies.

# Environmental Monitoring Information
(30 CFR Part 550.221 and 550.252)

Mississippi Canyon Block 692 (Lease OCS-G 34455) 2/14/2013 Initial Exploration Plan Page 16 

## A. Monitoring Systems

Murphy subscribes to Impact Weather Service which provides access to real-time weather conditions, and provides periodic updates on impending inclement weather conditions such as tropical depressions, storms and/or hurricanes entering the Gulf of Mexico.

Murphy also relies on the National Weather Se rvice to support the aforementioned subscribed service. During impending inclement weather co nditions, Murphy closely coordinates the activity with our contractors and field personnel to ensure the safety of people for evacuation; measures to prepare the facility for evacuation to ensur e protection of the environment and the facility/equipment.

Mississippi Canyon Block 692 is in water depths greater than 300 meters (984 feet); therefore, Murphy will follow the guidelines of the applicable Notice to Lessees NTL 2009-G02 by monitoring and gathering ocean current data using Acoustic Doppler Current Profile (ADCP) while the MODU

is on location.



## B. Incidental Takes

The Bureau of Ocean Energy Management revised re gulations in Title 30 CFR Part 550, Subpart B to require lessees/operators to provide for monitoring systems if the activities provided for in this Plan have the potential to result in an incidental take of any federally listed species and/or marine

mammals.

Murphy does not anticipate the incidental taking of any species as a result of the proposed activities based on the implementation of, and adherence to, the BSEE NTL 2012-G01 “Marine Trash and Debris Awareness Training and Elimination” an d JOINT NTL 2012-G01 “Ve ssel Strike Avoidance and Injured/Dead Protected Species Reporting”.



## C. Flower Garden Banks National Marine Sanctuary

According to NTL 2008-G04, this section of the Plan is not applicable to the proposed operations.

# Lease Stipulations/Special Conditions Information

(30 CFR Part 550.222 and 550.253)

Mississippi Canyon Block 692 (Lease OCS-G 34455) 2/14/2013 Initial Exploration Plan Page 17 

## A. Lease Stipulations

Under the Outer Continental Shelf Lands Act, the Bureau of Ocean Energy Management is charged with the responsibility of managing and regulating the exploration and development on the OCS.

As part of the regulatory process, an Environmental Impact Statement (EIS) is prepared for each lease sale, at which time mitigation measures are a ddressed in the form of lease stipulations, which then become part of the oil and gas lease terms and are therefore enforceable as part of that lease.

As part of this process, the designated opera tor proposing to conduct related exploratory and development activities, must review the applicab le lease stipulations, as well as other special conditions, which may be imposed by the Bur eau of Ocean Energy Management, and other governing agencies.

Bureau of Ocean Energy Management did not in voke any stipulations for Lease OCS-G 34455, Mississippi Canyon Block 692 and includes the following special conditions:

 Marine Protected Species

Lease Stipulation No. 8 is to reference measures to minimize or avoid potential adverse impacts to protected species (sea turtles, marine mammals, gulf sturgeon, and other federally protected species). BOEM/BSEE has issued Notice to Lessees NTL 2012-JOINT-G02 “Implementation of Seismic Mitigation Measures and Protected Species Observ er Program”, NTL 2012-G01 “Marine Trash and Debris Awareness Training and Elimination” and NTL 2012-G01 “Vessel Strike Avoidance and Injured/Dead Protected Species Reporting”.



## B. Special Conditions

 Subsea Completions

Murphy may potentially complete the proposed well locations as a subsea completion. Therefore, Murphy will follow the regulations in Title 30 CFR Parts 250.286 through 250.295 and 550.296 through 550.299, which mandates the submittal and a pproval of separate regulatory filings entitled as a “Deepwater Operations Plan” and a “Conservation Information Document”, respectively.

 Breton Sound Area

Mississippi Canyon Block 692 is located within th e 200 km zone of the Breton National Wildlife Refuge, and will consider the use of best availa ble control technology as required as Notice to Lessees 98-10 if the projected air emissions are determ ined to significantly affect the air quality of an

onshore area.

# Lease Stipulations/Special Conditions Information

(30 CFR Part 550.222 and 550.253)

Mississippi Canyon Block 692 (Lease OCS-G 34455) 2/14/2013 Initial Exploration Plan Page 18  Ocean Current Monitoring

The proposed operations under this Plan are in wa ter depths greater than 300 meters (984 feet); therefore, Murphy will follow the guidelines of the applicable regulations and NTL 2009-G02 by monitoring and gathering ocean current data using Acoustic Doppler Current Profile (ADCP) while

the MODU is on location.

 Significant OCS Sediment Resources

BOEM has issued Notice to Lessees NTL 2009-G04 “Significant OCS Sediment Resources in the Gulf of Mexico” which provides guidance for th e avoidance and protection of significant OCS

sediment resources essential to co astal restoration initiatives in th e OCS Gulf of Mexico Region. The intent of this guidance is to balance mineral development with the protection of human, marine,

and coastal environment.

The significant OCS sediment refers to deposits, including clay, silt , sand, and gravel size particles

and shell found on or below the surface of the seabed on the OCS.

The NTL requires that bottom-disturbing activiti es avoid, to the maximum extent practicable, significant OCS sediment resources; which include any activity that lasts more than 180 days and is located within 305 lateral meters (1,000 feet) an d 20 vertical meters (65 feet) below the natural seafloor of any designated sediment resour ces is considered bottom-disturbing.

The activities proposed in this Plan (emplacem ent of platforms, wells, drilling rigs, pipelines, umbilicals, and cable) will not impact an area define d by the BOEM Website link inclusive of maps, and GIS data for significant OCS sediment resources.

# Environmental Mitigation Measures Information
(30 CFR Part 550.223 and 550.254)

Mississippi Canyon Block 692 (Lease OCS-G 34455) 2/14/2013 Initial Exploration Plan Page 19 The Bureau of Ocean Energy Management revised re gulations in Title 30 CFR Part 550, Subpart B to require lessees/operators to provide for monitoring systems if the activities provided for in this Plan have the potential to result in an incidental take of any federally listed species and/or marine

mammals.

Murphy does not anticipate the incidental taking of any species as a result of the proposed activities based on the implementation of, and adherence to, the BSEE NTL 2012-G01 “Marine Trash and Debris Awareness Training and Elimination” an d NTL 2012-JOINT-G01 “Ve ssel Strike Avoidance and Injured/Dead Protected Species Reporting”.

# Related Facilities and Operations Information

(30 CFR Part 550.256)

Mississippi Canyon Block 692 (Lease OCS-G 34455) 2/14/2013 Initial Exploration Plan Page 20 

## A. Produced Liquid Hydrocarbons Transportation Vessels

According to NTL 2008-G04, this section of the Plan is not applicable to the proposed operations.

# Support Vessels and Aircraft Information
(30 CFR Part 550.224 and 550.257)

Mississippi Canyon Block 692 (Lease OCS-G 34455) 2/14/2013 Initial Exploration Plan Page 21 

## A. General

Personnel involved in the proposed operations will typically use their own vehicles as transportation

to and from the selected onshore base; whereas the selected vendors will transport the equipment by a combination of trucks, boats and/or helicop ters to the onshore base. The personnel and equipment will then be transported to the drilling rig via the transportation methods and frequencies shown below, taking the most direct route feasible as mandated by weather and traffic conditions:

Type Maximum Fuel Tank Storage Capacity Maximum No. in Area at Any Time Trip Frequency or

Duration

Supply Boats 3500 Gallons 2 Two times weekly Crew Boats 1500 Gallons 1 Weekly

Aircraft 280 Gallons 1 As needed



## B. Diesel Oil Supply Vessels

The following table details the vessels to be use d for purposes other than fuel (i.e., corrosion control):

Size of Fuel Supply Vessel Capacity of Fuel Supply Vessel Frequency of Fuel

Transfers Route Fuel Supply Vessel

Will Take

260’ feet 4500 bbls Weekly From the shorebase in Fourchon, LA to MC 692



## C. Drilling Fluids Transportation

According to NTL 2008-G04, this section of the Plan is not applicable to the proposed operations.



## D. Solid and Liquid Wastes Transportation

Included as Attachment L is a listing of the solid and liquid wastes associated with the proposed activities in this Plan, detailing the types of was te and approximate composition, total amount, name and location, rate and transport method.



## E. Vicinity Map

A Vicinity Plat showing the location of Mississipp i Canyon Block 692 relative to the shoreline and

onshore base is included as Attachment P

.

# Onshore Support Facilities Information
(30 CFR Part 550.225 and 550.258)

Mississippi Canyon Block 692 (Lease OCS-G 34455) 2/14/2013 Initial Exploration Plan Page 22 

## A. General

The proposed surface disturbances in Mississippi Canyon Block 692 will be located approximately 63 miles from the nearest Louisiana shoreline, and approximately 123 miles from the onshore support base.

Name Location Existing/New/Modified C Logistics Fourchon, LA Existing

Murphy will use an existing onshore base to accomplish the following routine operations:

 Loading/Offloading point for equipment supporting the offshore operations,

 Dispatching personnel and equipment, and does not anticipate the n eed for any expansion

of the selected facilities as a result of the activities proposed in this Plan,

 Temporary storage for materials and equipment

 24-Hour Dispatcher



## B. Support Base Construction or Expansion

The proposed operations are temporary in nature and do not require any immediate action to acquire additional land, expand existing base facilities.



## C. Support Base Construction or Expansion Timetable

According to NTL 2008-G04, this section of the Plan is not applicable to the proposed operations.



## D. Waste Disposal

Included as Attachment L is a listing of waste disposal fac ilities to be utilized as part of the associated activities in this Plan; detailing the type s of waste, amount, rate an d disposal method to be

sent to shore.

# Coastal Zone Management Act (CZMA) Information
(30 CFR Part 550.226 and 550.260)

Mississippi Canyon Block 692 (Lease OCS-G 34455) 2/14/2013 Initial Exploration Plan Page 23 Under direction of the Coastal Zone Management Act (CZMA), the States of Alabama, Florida, Louisiana, Mississippi and Texas developed Coastal Zone Management Programs (CZMP) to allow for the supervision of significant land and water use activities that take place within or that could significantly impact their respective coastal zones.



## A. Consistency Certification

A certificate of Coastal Zone Management Consisten cy for the States of Louisiana and Mississippi

are enclosed as Attachment Q

.



## B. Other Information

Included as Attachment R are the enforceable policies from the State of Mississippi that are related to OCS Plan Filings.

Murphy Exploration & Production Company has cons idered all of Louisiana’s enforceable policies and certifies the consistency for the proposed operations.

# Environmental Impact Analysis
(30 CFR Part 550.227 and 550.261)

Mississippi Canyon Block 692 (Lease OCS-G 34455) 2/14/2013 Initial Exploration Plan Page 24 

## A. Impact Producing Factors (IPF’s) From Proposed Activities

The following matrix is utilized to identify the a ffected environments that could be impacted by these

IPF’s. An “x” has been marked for each IPF category that Murphy has determined may impact a particular environment as a result of the proposed activities. For those cells which are footnoted, a statement is provided as to the applicability of the proposed activities, an d where there may be an effect, an analysis of the effect is provided.

Environmental

Resources Impact Producing Factors (IPFs)

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

to the water

column or seafloor) Physical

disturbances

to the seafloor (rig, anchor,

structure emplacement, etc.) Wastes

sent to
shore for

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

chemical spills, H 2 S

releases) Other

IPFs

you identify

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) Chemosynthetic

communities (4)

Water quality

Fisheries Marine mammals (8) (8) Sea turtles (8) (8) Air quality (9) Shipwreck sites (known or potential) (7)

Prehistoric archaeological

sites (7)

Vicinity of Offshore

Location

Essential fish habitat (6) Marine and pelagic birds Public health and safety (5)

Coastal and Onshore

Beaches (6)

Wetlands (6)

Shorebirds and coastal nesting birds (6)

Coastal wildlife refuges

Wilderness areas

# Environmental Impact Analysis
(30 CFR Part 550.227 and 550.261)

Mississippi Canyon Block 692 (Lease OCS-G 34455) 2/14/2013 Initial Exploration Plan Page 25 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: (a) 4-mile zone of the Flower Gardens Banks, or the 3-mile zone of Stetson Bank; (b) 1000-m, 1-mile or 3-mile zone of any topograph ic feature (submarine bank) protected by the Topographic Features Stipulation attached to an OCS lease; (c) Essential Fish Habitat (EFH) criteria of 500 ft from any no-activity zone; or (d) Proximity of any submarine bank (500 ft buffer zone ) with relief greater than 2 meters that is not protected by the Topographic Stipulation attached to an OCS lease.

2. Activities with any bottom disturbance within an OCS lease block protected through the Live Bottom (Pinnacle Trend) Stipulation attached to an OCS lease.

3. Activities within any Eastern Gulf OCS 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 H 2 S concentrations greater than 500 ppm might be

encountered.

6. All activities that could result in an accidental spill of produced liquid hydrocarb ons or diesel fuel that you determine would impact these environmental resources . If the proposed action is located a sufficient

distance from a resource that no impact would occur, the EIA can note that in a sentence or two.

7. All activities that involve seafloor disturbances, including anchor emplacements, in any OCS block designated by the BOEM as having high-probability for the o ccurrence of shipwrecks or prehistoric sites, including such blocks that will be affected that ar e adjacent to the lease bloc k in which your planned activity will occur. If the proposed activities are located a sufficient distan ce from a shipwreck or prehistoric site that no impact would occur, the EIA can 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 pr oduced fluids to shore using shuttle tankers or barges.

# Environmental Impact Analysis
(30 CFR Part 550.227 and 550.261)

Mississippi Canyon Block 692 (Lease OCS-G 34455) 2/14/2013 Initial Exploration Plan Page 26 

### B. Impact Analysis

Site Specific at Offshore Location

 Designation Topographic Features

There are no anticipated emissions, effluents, ph ysical disturbances to the seafloor, wastes transported to shore, and/or accidents from th e proposed activities that could cause impacts to topographic features. The proposed surface di sturbances within Mississippi Canyon Block 692 are located approximately 75 miles away fr om the closest designated topographic feature (Sackett Bank). The crests of designated t opographic features in the northern Gulf are

found below 10 m. In the event of an accide ntal oil spill from the proposed activities, the gravity of such oil (high grav ity condensate and/or diesel fuel) would rise to the surface, quickly dissipate, and/or be swept clear by the currents moving around the bank; thereby avoiding the sessile biota.

 Pinnacle Trend Area Live Bottoms

There are no anticipated emissions, effluents, ph ysical disturbances to the seafloor, wastes sent to shore, and/or accident s from the proposed activities that could cause impacts to a pinnacle trend area. The proposed surface dist urbances within Mississippi Canyon Block 692 are located approximately +/-70 miles from the closest pinnacle trend live bottom stipulated block. The crests of the pinnacle tr end area are much deeper than 20 m. In the event of an accidental oil sp ill from the proposed activities , the gravity of such oil (high gravity condensate and/or diesel fuel) would rise to the surface, quickly dissipate, and/or be swept clear by currents moving around the bank; and thus not impacting the pinnacles.

 Eastern Gulf Live Bottoms

There are no anticipated emissions, effluents, em issions physical disturbances to the seafloor, wastes sent to shore, and/or accidents from th e proposed activities that could cause impacts to Eastern Gulf live bottoms. The proposed surface disturbances within Mississippi Canyon Block 692 are located a significant distance (>1 00 miles) from the closest pinnacle Eastern Gulf live bottom stipulated block. In the even t of an accidental oil spill from the proposed activities, the gravity of such oil (high gravi ty condensate and/or diesel fuel) would rise to the surface, quickly dissipate, and/or be swept clear by currents moving around the bank; and would not be expected to cause adverse impacts to Eastern Gulf live bottoms because of the depth of the features and dilutions of spills.

 Chemosynthetic Communities

Water depths in Mississippi Canyon Block 692 rang e 5718 feet to 6193 feet. Therefore, the proposed activities are not located within the vicinity of any known chemosynthetic

# Environmental Impact Analysis
(30 CFR Part 550.227 and 550.261)

Mississippi Canyon Block 692 (Lease OCS-G 34455) 2/14/2013 Initial Exploration Plan Page 27 communities, which typically occur in water depths greater than 300 meters. Based on the water depth, there are no anticipated emissions, effluents, emissions physical disturbances to seafloor, wastes sent to shore, and/or accide nts from the proposed activities that could impact these types of communities.

 Water Quality

Routine operational discharges authorized by EPA’s Region VI NPDES General Permit GMG290000 are regulated based on volume disc harge rate limitations, and certain testing requirements for oil and grease and toxicity limitations. As such, it is not anticipated these discharges will cause significant ad verse impacts to water quality.

Accidental oil spill releases from the proposed activities, and cumulative similar discharge activity within the vicinity could potentially cause impacts to water quality. It is unlikely that an accidental oil spill release would occur from the proposed activities. In the event of such a release, the water quality would be temporarily affected by the dissolved components and small droplets. Currents and microbial degradation would remove the oil from the water column or dilute the constituents to background levels.

In the event of an unanticipated blowout resulting in an oil spill, it is unlikely to have an impact based on the industry wide standards for using proven equipment and technology for such responses, implementation of Murphy’s Regional Oil Spill Response Plan which addresses available equipment and personnel, techniques for containment and recovery, and removal of the oil spill.

 Fisheries

Accidental oil spill releases from the proposed activities, and cumulative similar discharge activity within the vicinity may potentially cause so me detrimental effects on fisheries. It is unlikely a spill would occur; however, such a rele ase in open waters closed to mobile adult finfish or shellfish would likely be sub-lethal and the extent of damage would be reduced to the capability of adult fish and shellfish to avoid a spill, to metabolize hydrocarbons, and to excrete both metabolites and parent compounds.

In the event of an unanticipated blowout resulting in an oil spill, it is unlikely to have an impact based on the industry wide standards for using proven equipment and technology for such responses, implementation of Murphy’s Regional Oil Spill Response Plan which addresses available equipment and personnel, techniques for containment and recovery, and removal of the oil spill.

Murphy will conduct the proposed activiti es under EPA’s Region VI NPDES General

Permit GMG290000 which authorizes the discha rge of certain effluents, subject to certain limitations, prohibitions and recordkeeping requireme nts. As such, it is not anticipated these discharges will cause significant ad verse impacts to water quality.

# Environmental Impact Analysis
(30 CFR Part 550.227 and 550.261)

Mississippi Canyon Block 692 (Lease OCS-G 34455) 2/14/2013 Initial Exploration Plan Page 28  Marine Mammals

As a result of the proposed activities, mari ne mammals may be adversely impacted by emissions, effluents, waste sent to shore, and/or accidents.

Chronic and sporadic sub-lethal effects co uld occur that may stress and/or weaken individuals of a local group or population and make them more susceptible to infection from natural or anthropogenic sources. Few lethal e ffects are expected from accidental oil spill,

chance collisions with service vessels an d ingestion of plastic material.

The net results of any disturbance would depend on the size and percentage of the population affected, ecological importance of the disturbed area, environmental and biological parameters that influence an animal’s sensitivity to disturbance and stress, and the accommodation time in response to prolonged disturbance (Geraci and St. Aubin, 1980). Collisions between cetaceans and ship could cause seri ous injury or death (Laist et al., 2001).

Sperm whales are one of 11 whale species that are hit commonly by ships (Laist et al., 2001).

Collisions between OCS vessels and cetaceans with in the project area are expected to be

unusual events.

In the event of an unanticipated blowout resulting in an oil spill, it is unlikely to have an impact based on the industry wide standards for using proven equipment and technology for such responses, implementation of Murphy’s Regional Oil Spill Response Plan which addresses available equipment and personnel, techniques for containment and recovery, and removal of the oil spill.

Murphy will conduct the proposed activiti es under EPA’s Region VI NPDES General

Permit GMG290000 which authorizes the discha rge of certain effluents, subject to certain limitations, prohibitions and recordkeeping requireme nts. As such, it is not anticipated these discharges will cause significant ad verse impacts to water quality.

Additionally, Murphy does not anticipate the inci dental taking of any marine mammals as the result of the proposed activities. The proposed activities will be conducted by our company and its contractors under the additional criteria addressed by based on the implementation of, and adherence to, the BSEE NTL 2012-G 01 “Marine Trash and Debris Awareness Training and Elimination” and NTL 2012- JOINT-G01 “Vessel Strike Avoidance and Injured/Dead Protected Species Reporting”.

 Sea Turtles

As a result of the proposed activities, sea tu rtles may be adversely impacted by emissions, effluents, waste sent to shore, and/or accidents.

# Environmental Impact Analysis
(30 CFR Part 550.227 and 550.261)

Mississippi Canyon Block 692 (Lease OCS-G 34455) 2/14/2013 Initial Exploration Plan Page 29 Small numbers of turtles could be killed or inju red by chance collision with service vessels or by eating indigestible trash, particularly pl astic items accidentally lost from drilling rigs, production facilities and service vessels. Drilling rigs and project vessels (construction barges) produce noise that could disrupt norma l behavior patterns and create some stress to sea turtles, making them more susceptible to diseas e. Accidental oil spill releases are potential threats which could have lethal effects on turtles. Contact and/or consumption of this released material could seriously affect indi vidual sea turtles. Most OCS related impacts on sea turtles are expected to be sub-lethal . Chronic and/or avoidance of effected areas could cause declines in survival or producti vity, resulting in gradual population declines.

In the event of an unanticipated blowout resulting in an oil spill, it is unlikely to have an impact based on the industry wide standards for using proven equipment and technology for such responses, implementation of Murphy’s Regional Oil Spill Response Plan which addresses available equipment and personnel, techniques for containment and recovery, and removal of the oil spill.

Murphy will conduct the proposed activiti es under EPA’s Region VI NPDES General

Permit GMG290000 which authorizes the discha rge of certain effluents, subject to certain limitations, prohibitions and recordkeeping requireme nts. As such, it is not anticipated these discharges will cause significant ad verse impacts to water quality.

Additionally, Murphy does not anticipate the incide ntal taking of any sea turtles as the result of the proposed activities. The proposed activi ties will be conducted by our company and its

contractors under the additional criteria addr essed by BSEE NTL 2012-G01 “Marine Trash and Debris Awareness Training and Eliminat ion” and NTL 2012-JOINT-G01 “Vessel Strike Avoidance and Injured/Dead Protected Species Reporting”.

 Air Quality

The proposed activities are located approximatel y 63 miles to the nearest shoreline. There would be a limited degree of air quality degradation in the immediate vicinity of the proposed activities. Air quality analyses of the proposed activities are below the BOEM exemption level. As such, Murphy does not anticipate any IPF’s as a result of the proposed

activities.

 Ship Wreck Sites (Known or Potential)

There are no physical disturbances to the se afloor which could impact known or potential shipwreck sites, as the review of high resoluti on shallow hazards data indicate there are no known or potential shipwreck sites located with in the surveyed area. As such, Murphy does not anticipate any IPF’s as a result of the proposed activities.

# Environmental Impact Analysis
(30 CFR Part 550.227 and 550.261)

Mississippi Canyon Block 692 (Lease OCS-G 34455) 2/14/2013 Initial Exploration Plan Page 30  Prehistoric Archaeological Sites

There are no physical disturbances to the seafloor which could cause impacts to prehistoric archaeological sites, as the review of high resolution shallow hazards data and supporting studies did not reflect the occurrence of prehistoric archaeological sites. As such, Murphy does not anticipate any IPF’s as a result of the proposed activities.



### Vicinity of Offshore Location

 Essential Fish Habitat

As a result of the proposed activities, essentia l fish habitat may be adversely impacted by effluents and/or accidents.

An accidental oil spill that may occur as a resul t of the proposed activities has potential to

cause some detrimental effects on essential fish ha bitat. It is unlikely that an accidental oil spill release would occur; however, if a spill were to occur in close proximity to finfish or shellfish, the effects would likely be sub-lethal and the extent of damage would be reduced to the capability of adult fish and shellfish to avoid a spill, to metabolize hydrocarbons, and to excrete both metabolites and parent compounds.

In the event of an unanticipated blowout resulting in an oil spill, it is unlikely to have an impact based on the industry wide standards for using proven equipment and technology for such responses, implementation of Murphy’s Regional Oil Spill Response Plan which addresses available equipment and personnel, techniques for containment and recovery, and removal of the oil spill.

 Marine and Pelagic Birds

As a result of the proposed activities, marine and pelagic birds may be adversely impacted by an accidental oil spill, by the birds coming into contact with the released oil. It is unlikely that an accidental oil spill release would occur.

In the event of an unanticipated blowout resulting in an oil spill, it is unlikely to have an impact based on the industry wide standards for using proven equipment and technology for such responses, implementation of Murphy’s Regional Oil Spill Response Plan which addresses available equipment and personnel, techniques for containment and recovery, and removal of the oil spill.

 Public Health and Safety

There are no anticipated emissions, effluents, wastes sent to shore, and/or accidents from the proposed activities that could cause impacts to the public health and safety. Murphy has

# Environmental Impact Analysis
(30 CFR Part 550.227 and 550.261)

Mississippi Canyon Block 692 (Lease OCS-G 34455) 2/14/2013 Initial Exploration Plan Page 31 requested BOEM approval to classify the pr oposed objective area as absent of hydrogen

sulfide.



### Coastal and Onshore

 Beaches

As a result of the proposed activities, beaches ma y be adversely impacted by an accidental oil spill. However, due to the distance from shor e (approximately 63 miles), and the response capabilities that would be implemented, no significant adverse impacts are expected. Both historical spill data and the combined trajectory/risk calculations referenced in the publication of OCS EIA /EA BOEM 2002-052 in dicate there is little risk of contact or impact to the coastline and associated environmental resources.

In the event of an unanticipated blowout resulting in an oil spill, it is unlikely to have an impact based on the industry wide standards for using proven equipment and technology for such responses, implementation of Murphy’s Regional Oil Spill Response Plan which addresses available equipment and personnel, techniques for containment and recovery, and removal of the oil spill.

 Wetlands

As a result of the proposed activities, wetlands may be adversely impacted by an accidental oil spill. However, due to the distance from shore (approximately 63 miles) and the response capabilities that would be implemented, no significant adverse impacts are expected. Both historical spill data and the combined trajectory/risk calculations referenced in the publication of OCS EIA /EA BOEM 2002-0 52 indicate there is little risk of contact or impact to the coastline and associ ated environmental resources.

In the event of an unanticipated blowout resulting in an oil spill, it is unlikely to have an impact based on the industry wide standards for using proven equipment and technology for such responses, implementation of Murphy’s Regional Oil Spill Response Plan which addresses available equipment and personnel, techniques for containment and recovery, and removal of the oil spill.

 Shore Birds and Coastal Nesting Birds

As a result of the proposed activities, shore bi rds and coastal nesting birds may be adversely impacted by an accidental oil spill. However , due to the distance fr om shore (approximately 63 miles) and the response capabilities that would be implemented, no significant adverse impacts are expected. Both historical spill data and the combined trajectory/risk calculations referenced in the publication of OCS EIA /EA BOEM 2002-052 indicate there is little risk of contact or impact to the coastline and associated environmental resources.

# Environmental Impact Analysis
(30 CFR Part 550.227 and 550.261)

Mississippi Canyon Block 692 (Lease OCS-G 34455) 2/14/2013 Initial Exploration Plan Page 32 In the event of an unanticipated blowout resulting in an oil spill, it is unlikely to have an impact based on the industry wide standards for using proven equipment and technology for such responses, implementation of Murphy’s Regional Oil Spill Response Plan which addresses available equipment and personnel, techniques for containment and recovery, and removal of the oil spill.

 Coastal Wildlife Refuges

As a result of the proposed activities, coastal wildlife refuges may be adversely impacted by an accidental oil spill. However, due to th e distance from shore (approximately 63 miles) and the response capabilities that would be im plemented, no significant adverse impacts are expected. Both historical spill data and the combined trajectory/risk calculations referenced in the publication of OCS EIA /EA BOEM 2002-0 52 indicate there is little risk of contact or impact to the coastline and associ ated environmental resources.

In the event of an unanticipated blowout resulting in an oil spill, it is unlikely to have an impact based on the industry wide standards for using proven equipment and technology for such responses, implementation of Murphy’s Regional Oil Spill Response Plan which addresses available equipment and personnel, techniques for containment and recovery, and removal of the oil spill.

 Wilderness Areas

As a result of the proposed activities, wilder ness areas may be adversely impacted by an accidental oil spill. However, due to the di stance to the nearest ar ea (approximately 63 miles) and the response capabilities that wo uld be implemented, no significant adverse impacts are expected. Both historical spill data and the combined trajectory/risk calculations referenced in the publication of OCS EIA /EA BOEM 2002-052 indicate there is little risk of contact or impact to the coastline and associated environmental resources.

In the event of an unanticipated blowout resulting in an oil spill, it is unlikely to have an impact based on the industry wide standards for using proven equipment and technology for such responses, implementation of Murphy’s Regional Oil Spill Response Plan which addresses available equipment and personnel, techniques for containment and recovery, and removal of the oil spill.



### Other Resources Identified

Murphy has not identified any other environmenta l resources other than those addressed above.



## C. Impacts on Proposed Activities

Murphy does not anticipate any impacts on the offs hore site specific locations, offshore vicinity, and/or coastal and onshore environmental conditions.

# Environmental Impact Analysis
(30 CFR Part 550.227 and 550.261)

Mississippi Canyon Block 692 (Lease OCS-G 34455) 2/14/2013 Initial Exploration Plan Page 33 

## D. Environmental Hazards

Mississippi Canyon Block 692 is not located wi thin a geographic area impacted by strong environmental phenomena, other than potential hurricanes in the Gulf of Mexico. Additionally, this block has the potential to be affected by the "Loop Current" which is a warm ocean current in the

Gulf of Mexico that flows northward between Cu ba and the Yucatan peninsula, moves northward into the Gulf of Mexico, then loops east and sout h before existing to the east through the Florida Straits. While the loop current is present approxim ately 95% of the time, it is most active in the

summer and fall seasons.

The subsea facilities have been designed to meet the current regulations and API RP 95J design criteria for these hurricane events. To mitiga te potential impacts to the well during impending hurricanes or loop currents, Murphy will take precauti onary measures to shutting in the well prior to

full evacuation.



## E. Alternatives

According to NTL 2008-G04 this secti on does not apply to Exploration Plan.



## F. Mitigation Measures

Murphy will not implement any mi tigation measures to avoid, di minish, or eliminate potential environmental risks, other than those required by regulation and policy.



## G. Consultation

Murphy has not contacted any agencies or pers ons for consultation regarding potential impacts associated with the proposed activities. Therefor e, a list of such entities is not being provided.



## H. Preparers

Questions or requests for additional informati on should be made to Murphy’s authorized representative/preparer of this Plan:

Christine Groth R.E.M. Solutions, Inc. 15021 Katy Freeway, Suite 620 Houston, Texas 77094 281.492.3240 (Phone) 281.492.6117 (Fax) christine@remsolutionsinc.com

# Environmental Impact Analysis
(30 CFR Part 550.227 and 550.261)

Mississippi Canyon Block 692 (Lease OCS-G 34455) 2/14/2013 Initial Exploration Plan Page 34 

## I. References

The following documents were utilized in prep aring the Environmental Impact Assessment:

Document Author Dated Shallow Hazards Survey Ge oscience Earth & Marine

Services 2013

BOEM Environmental Impact Statement Report No. 2007-

003 BOEM 2007 Title 30 CFR Part 550 Subpart B (550.241/550.247/ 550.252/550.254) BOEM 2012 NTL 2012-N04 “Flaring and Ve nting Requests” BSEE 2012 NTL 2009-G39 “Biologically Sens itive Underwater Features

and Areas BOEM 2009 NTL 2012-JOINT-G01 “Vessel Strike Avoidance and Injured/Dead Protective Species” BOEM & BSEE 2012

BSEE NTL 2012-G01 “Marine Trash & Debris Awareness

& Elimination” BSEE 2012 NTL 2005-G07 “Archaeological Resource Surveys and Reports” BOEM 2005 NTL 2011-JOINT-G01 “Revisions to the List of OCS Lease Blocks Requiring Archaeological Resource Surveys and Reports” BOEM & BSEE 2011 NTL 2009-G40 “Deepwater Bent hic Communities” BOEM 2009

NTL 2009-G26 “U.S. Air Force Communication Towers” BOEM 2009 NTL 2009-G27 “ Submitting Exploration Plans and Development Operations Coordination Documents BOEM 2009 NTL 2009-G29 “Implementation Plan for Transition from

North American Datum 27 to North American Datum 83 BOEM 2009 NTL 2009-G31 “Hydrogen Sulfide” BOEM 2009 NTL 2009-G34 “Ancillary Activities” BOEM 2009 NTL 2012-G01 “Drilling Windows, Eastern Gulf of

Mexico” BOEM 2012 NTL 2009-N11 “Air Quality Jurisdiction on the OCS” BOEM 2009 NPDES General Permit GMG290000 EPA – Region VI 2007 Regional Oil Spill Response Plan Murphy Exploration & Production Company 2012

# Administrative Information
(30 CFR Part 550.228 and 550.262)

Mississippi Canyon Block 692 (Lease OCS-G 34455) 2/14/2013 Initial Exploration Plan Page 35 

## A. Exempted Information Description (Public Information Copies Only)

Excluded from the Public Information copies are the following:

 Proposed bottomhole location information

 Proposed total well depths (measur ed and true vertical depth)

 New and Unusual Technology

 Geological and Geophysical Attachments



## B. Bibliography

The following documents were utilized in preparing the Plan:

Document Author Dated

Shallow Hazards Survey Geoscience Earth & Marine

Services 2013

BOEM Environmental Impact Statement Report

No. 2007-003 BOEM 2007

Regional Oil Spill Response Plan Murphy Exploration & Production Company 2012

# OCS Plan Information Form

Attachment A (Public Information)U.S. Department of the Interior OMB Control Number: 1010-0151 Bureau of Ocean Energy Management OMB Approval Expires: 12/31/14

OCS PLAN INFORMATION FORM

General Information

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

Company Name: BOEM Operator Number:

Address: Contact Person:

Phone Number:

E-Mail Address:

If a service fee is required under 30 CFR 550.125(a), provide the Amount paid Receipt No.

Project and Worst Case Discharge (WCD) Information

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

Objective(s) Oil Gas Sulphur Salt Onshore Support Base(s):

Platform/Well Name: Total Volume of WCD: API Gravity:

Distance to Closest Land (Miles): Volume from uncontrolled blowout:

Have you previously provided information to verify the calculations and assumptions for your WCD? Yes No

If so, provide the Control Number of the EP or DOCD with which this information was provided

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

Do you propose to use a vessel with anchors to install or modify a structure? Yes No

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

Description of Proposed Activities and Tentative Schedule (Mark all that apply)

Proposed Activity Start Date End Date No. of Days

Exploration drilling

Development drilling

Well completion

Well test flaring (for more than 48 hours)

Installation or modification of structure

Installation of production facilities

Installation of subsea wellheads and/or manifolds

Installation of lease term pipelines

Commence production

Other (Specify and attach description)

Description of Drilling Rig Description of Structure

Jackup Drillship Caisson Tension leg platform

Gorilla Jackup Platform rig Fixed platform Compliant tower

Semisubmersible Submersible Spar Guyed tower

DP Semisubmersible Other (Attach Description)

Drilling Rig Name (If Known): Floating production

system 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 this form which may not be used.) Page 1 of 4 X Initial

Murphy E & P Company 02647

Robert Lanza

16290 Katy Freeway, Suite 110 281-675-9135

Houston, Texas 77094 robert_lanza@murphyoilcorp.com

$11,019.00 

### 74410407887

OCS-G 34455 MC 692 Sea Eagle

X Port Fourchon, LA

A 296,918 STB/Day 34.7°

63 13.82 MMSTB (77 days)

X

X

X

X

7/1/2014 5/1/2016 120/Well

X

Discoverer Deep Seas

# Well Location Plat

Attachment B (Public Information)

## MURPHY EXPLORATION & PRODUCTION COMPANY Sea Eagle Prospect – Mississippi Canyon 692

Proposed Location Plat (Public)

Scale: 1" = 2000' 

## Loc B

SL

Loc C

SL Loc A

SLX = 1,188,000.00X = 1,203,840.00 

### Y = 10,280,160.00

Y = 10,264,320.00 Location Latitude Longitude X Y WD (ft.)

Loc A 8,130.0 FEL 1,682.0 FNL N 28 D 19 M 00.05228 S W 88 D 22 M 57.20343 S 1,195,710.00 10,278,478.00 5,901

Loc B 5,440.0 FEL 1,425.0 FNL N 28 D 19 M 02.90127 S W 88 D 22 M 27.13651 S 1,198,400.00 10,278,735.00 5,927

Loc C 7,603.0 FEL 4,908.0 FNL N 28 D 18 M 28.16640 S W 88 D 22 M 50.89393 S 1,196,237.00 10,275,252.00 5,917 Block Calls

# Bathymetry Map

Attachment C (Public Information)

## MURPHY EXPLORATION & PRODUCTION COMPANY Sea Eagle Prospect – Mississippi Canyon 692

Bathymetry Map (Public)

Scale: 1" = 2000' C.I. = 10'

Note: 2,000' radius circle shown

around each wellbore location LLOYD RIDGE 5



## Loc

A Loc

B



## Loc

C

NOTE: Bathymetric contours generated using Hi-Res AUV survey data 5,901' 5,927'

5,917'

# Geological Description

Attachment D (Proprietary Information)

# Structure Maps

Attachment E (Proprietary Information)

# Deep Seismic Lines

Attachment F (Proprietary Information)

# Cross Section Maps

Attachment G (Proprietary Information)

# Shallow Hazards Assessment

Attachment H (Public Information)**10615 Shadow Wood Drive, Suite 200 Houston, Texas 77043**  **713.468.1410[o] 713.468.1438 [f] www.gemsinc.com** 

**January 28, 2013 Project No. 1012-2152b** 

**Murphy Exploration & Production Co. 16290 Katy Frwy.** 

**Suite 600 Houston, Texas 77094** 

**Attention: Mr. Alan Hadfield**

Site Clearance Letter Proposed Wellsite MC692-A Block 692 (OCS-G-34455) Mississippi Canyon Area

Gulf of Mexico

**Murphy Exploration & Production Co. (Murphy) contra cted Geoscience Earth & Marine Services Inc.**  ®

**, (GEMS) to provide an assessment of the shallow geol**  **ogic conditions to determine the favorability of drilling operations for the proposed location MC692**  **-A in block 692 (OCS-G-34455), Mississippi Canyon Area, Gulf of Mexico. This letter addresses specif**  **ic seafloor and subsurface geologic conditions, to a**  **depth of about 4,917 ft below the mudline (bml), at the Proposed Wellsite MC692-A. The proposed**  **location appears suitable for exploration drilling operations; however, caution is recommended while**  **drilling through the potentially sand-prone sequenc es below 406 ft bml with respect to the potential f**  **or shallow water flow and shallow gas.** 

**The following sections provide details specific to the well location, including: available data, Notic**  **e to Lessees (NTL) requirements, man-made features, and**  **wellsite conditions.**

Proposed Well Location

**The surface location for Proposed Wellsite MC692-A is in the north-central portion of MC 692. Murphy**  **plans to drill this well using a dynamically positi oned drilling vessel. Our assessment addresses the**  **seafloor conditions within a 2,000 ft radius around the proposed wellsite location. Murphy provided t**  **he following coordinates for the proposed wellsite:** 

Proposed Wellsite MC692-A

Spheroid & Datum: Clarke 1866, NAD27 Projection: UTM Zone 16 North Line Reference Block Calls

MC 692

**X: 1,195,710 ft Latitude: 28o 19’ 00.05228” N Inlin e 1367 7,710 ft FWL** 

**Y: 10,278,478 ft Longitude: 88o 22’ 57.20343” W Cro ssline 5833 1,682 ft FNL** 

Available Data

**The following discussion is based on findings provi ded within the main body of the geohazard and**  **archaeological report for Block MC 692 (OCS-G-34455 ), GEMS Report No. 1012-2152b (GEMS, 2012).**  **The text, maps, and figures included in the report provide detail on the regional geology of the surve**  **y area. Data assessed for the report and site cleara**  **nce letters include a 3-D time volume and AUV (Autonomous Underwater Vehicle) data.** 

**The 3-D seismic time volume provided by Murphy for the geohazard analysis, covers a 25 square-mile**  **area that includes all and portions of Federal leas e Blocks 647-649, 691-693, and 735-737 in the** **Proposed Wellsite MC692-A Site Clearance Letter**

**Murphy Exploration & Production Co. //**  **January 28, 2013**

**Geoscience Earth & Marine Services, Inc. ®** // 2
FORUM ENERGY TECHNOLOGIES, INC. **Mississippi Canyon (MC) protraction area (Figure A- 1). An AUV survey was conducted in October 2012**  **by C & C Technologies, Inc. (C & C) over the blocks of interest (Figure A-1). GEMS used the C & C**  **survey data, to complete an archaeological and geoh azard assessment over MC 692 (GEMS, 2012). A**  **scanned copy of the gamma ray and resistivity logs in addition to the scout ticket for Murphy’s MC 737**  **#1 well were provided to GEMS by Murphy. The well log**  **s were used to identify potential sand layers withi n**  **the stratigraphic units in the survey area.**

Figure A-1. Seafloor Rendering of the Mississippi Canyon Survey Area. **The black lines represent existing pipelines and the black dot represents an existing**  **well (BOEM, 2013a). The red lines symbolize seaflo or faults, the**  **green dot represents the proposed well location, an d the green circle is a 2,000 ft radius around the**  **proposed wellsite.**

Attachments

**Wellsite maps are centered on the Proposed Explorat ion Wellsite MC692-A location and are displayed at**  **a 1 inch = 1,000 ft scale (1:12,000). The maps inc luded in this letter are as follows:** 

**Map No. MC692A-1: Bathymetry Map Map No. MC692A-2: Seafloor Features Map**  **Map No. MC692A-3: Side-Scan Sonar Mosaic Map No. MC692A-4: Geologic Features Map** 

**The illustrations accompanying this letter were ext racted from the available datasets and are listed b**  **elow:**

**Illustration MC692A-1: Side-Scan Sonar Mosaic and S ubbottom Profile Showing Seafloor and**  **Near-Surface Conditions Near Proposed Wellsite MC69 2-A**  3-D SURVEY AREA

AUV SURVEY AREA

MC692-A 2000 ft

Murphy

MC 737 #1**Proposed Wellsite MC692-A Site Clearance Letter**

**Murphy Exploration & Production Co. //**  **January 28, 2013**

**Geoscience Earth & Marine Services, Inc. ®** // 3
FORUM ENERGY TECHNOLOGIES, INC. **Illustration MC692A-2: Portions of Inline 1367 and Crossline 5833 Showing Conditions Beneath**  **Proposed Wellsite MC692-A Illustration MC692A-3: Tophole Prognosis Chart, Pro**  **posed Wellsite MC692-A, Mississippi Canyon Block 692**  **Illustration MC692A-4: Arbitrary Seismic Profile Il lustrating Geologic Conditions at the Murphy**  **MC 737 #1 Well Relative to Proposed Wellsite MC692- A** 

NTL Requirements

**The following letter complies with the Bureau of Oc ean Energy Management (BOEM) Notice to Lessees**  **(NTL’s) 2008-G04, 2008-G05, and 2009-G40, (MMS, 200 8a, b, and 2010). The Federal lease Block**  **MC 692 is located within a historically significant area (BOEM, 2011); therefore, requirements set for**  **th in NTL 2005-G07 are applicable (MMS, 2005). An archae**  **ological assessment was completed for MC 692 and included as Appendix A in the main report (GEMS**  **, 2012). The anticipated archaeological conditions within 2,000 ft of the proposed well are included i**  **n the Man-Made Features and Archaeological**

**Assessment section of this letter.**

**According to NTL 2008-G05 (MMS, 2008b), 3-D seismic reflection data may be used for shallow hazard**  **assessments with approval from the BOEM, Gulf of Me xico Region. A power spectrum analysis was**  **conducted from the 3-D seismic data cube provided b y Murphy to illustrate the data parameters**  **(Figure A-2). The power spectrum curve was generat ed within a 500-ft radius of the intersection of th**  **e inline and crossline at the proposed wellsite. We**  **converted the amplitude vs. frequency spectrum, generated by the SMT software, to power vs. frequen**  **cy by squaring the amplitude values as described by J. A. Coffeen, 1978.** 

Figure A-2. Power Spectrum Analysis Curve, Propose d Wellsite MC692-A

Man-Made Features and Archaeological Assessment

**The surface location is clear of any wells, pipelin es, or platforms within a 2,000 ft radius from the**  **proposed wellsite. The closest existing infrastruc ture to the proposed well is a 14 to16-inch gas pip**  **eline owned by WFS and a 14 to 16-inch oil pipeline owned**  **by Williams. These pipelines are about 2,400 ft northwest of the proposed location (Map No. MC692A-**  **1). Based on the available data, no archaeological avoidances and no known shipwrecks or objects exist**  **within the area of potential effect for the propos ed** 
**Well MC692-A. There are no unidentified side-scan sonar contacts located within 2,000 feet of the**  **proposed MC692-A well (Map No. MC692A-2). Uniden tified Side-Scan Sonar Contact No. 3 is located**  **about 2,500 ft northeast of the proposed wellsite. The contact measures 3.52 ft in length and 6.40 ft**  **in 0**  **0.1 0.2**  **0.3 0.4**  **0.5 0.6**  **0.7 0.8**  **0.9 1** 

**0 10 20 30 40 50 60 70 80 90 100**Power (Amp2)

Frequency (Hz) POWER SPECTRUM**Proposed Wellsite MC692-A Site Clearance Letter**

**Murphy Exploration & Production Co. //**  **January 28, 2013**

**Geoscience Earth & Marine Services, Inc. ®** // 4
FORUM ENERGY TECHNOLOGIES, INC. **width with no measureable height. Sonar Contact No . 2 lies about 4,700 ft southwest of the proposed**  **location (Illustration MC692A-1). Contact No. 2 me asures 6.80 ft long, 2.58 ft wide, and 2.07 ft in h**  **eight.**

**These sonar contacts are considered to be modern de bris from shipping, storms, fishing, and/or**  **exploration activities. An archaeological avoidanc e is not assigned for these targets; however, a 100**  **-foot geohazard avoidance is recommended for all side-sca**  **n sonar contacts. Unidentified Side-Scan Sonar Contact No. 8, located in the east-central portion**  **of MC 692, is interpreted as a potential shipwreck. A**  **1,500-foot archaeological avoidance for this contac t is recommended. Side-Scan Sonar Contact No. 8**  **lies about 1.7 miles southeast of Proposed Well MC6 92-A.** 

Wellsite Conditions

**The proposed location is clear of any constraining geologic conditions along the seafloor within a 2,0**  **00 ft radius of the proposed wellsite. The shallow strat**  **igraphy at the proposed well location reflects alte rnating**  **deposition of mass-transport, turbidity flow, and s lope-fan deposits interbedded with hemipelagic clay**  **s. Overpressured sands and minor amounts of shallow ga**  **s are possible within the sand-prone sequences. Precautions should be made when drilling through th**  **ese potentially overpressured intervals.**

Water Depth and Seafloor Conditions

**Seafloor conditions are favorable at the proposed w ellsite location. The water depth at the proposed**  **surface location is approximately -5,901 ft and the seafloor slopes southeast at about 0.3°**  **(Map No.MC692A-1). The proposed well location lies along a subtle, gently-dipping seafloor**  **(Map No. MC692A-2). Slightly irregular/hummocky se afloor conditions are evident at the proposed**  **location. The hummocky morphology is the seafloor expression of underlying mass-transport deposits.**  **A surficial drape (~10 ft thick) of high water conten**  **t silty clays covers the seafloor (Illustration MC6 92A-1).** 

Deepwater Benthic Communities

**Deepwater benthic communities are not expected at t he proposed wellsite. There are no features or**  **areas that could support significant, densely-popul ated benthic communities within 2,000 ft of the**  **proposed location. The Side-Scan Sonar Mosaic (Map No. MC692A-3) shows normal or ambient returns**  **along the seabed with no indication of any hard-bot tom or fluid expulsion events within 2,000 ft of th**  **e proposed well.** 

Stratigraphy

**Subbottom Profiler Line 115 is the closest AUV line to the proposed location (Illustration MC692A-1).** 

**Inline 1367 and Crossline 5833 are the closest 3-D lines to Proposed Wellsite MC692-A**  **(Illustration MC692A-2). The Tophole Prognosis Cha rt (Illustration MC692A-3) shows the crossline**  **annotated with calculated depths to the mapped hori zons, predicted unit lithologies, and potentials fo**  **r both shallow water flow and shallow gas.** 

**Stratigraphic conditions to the limit of investigat ion (4,917 ft bml) are shown on Illustrations MC692**  **A-1 through MC692A-4. The sedimentary section has been**  **subdivided into five seismic units or sequences.**

**The AUV subbottom profiler shows an acoustically tr ansparent drape approximately 10 ft thick at the to**  **p of Unit 1 beneath the proposed location (Illustrati**  **on MC692A-1). The drape likely consists of very so ft,**  **high water content pelagic clays. Shear strengths will gradually increase corresponding to a decrease**  **in water content throughout the remainder of Unit 1 (1**  **64 ft bml).**

**A mass-transport deposit, about 35 ft thick, occurs just beneath Horizon 10 at the top of Unit 2**  **(164 ft bml), Illustration MC 692A-1. The mass-tra nsport deposits likely have higher than normal shea**  **r strengths. The remainder of Unit 2 (Horizon 10 to**  **Horizon 20) will consist primarily of mud-rich turb idites**  **interlayered with thin mass-transport deposits. Th e Measurement While Drilling (MWD) logs for the**  **MC 737 #1 well show a sand layer less than 10 ft th ick at about 364 ft bml. This sand layer may corre**  **late to the base of Unit 2 at the Proposed Wellsite MC69**  **2-A.**

**Units 3 and 4 are slope fan-channel complexes (Illu strations MC692A-2 through MC692A-4). These**  **intervals are part of regional sequences known as t he Blue and Green units. The sequences will consis**  **t Proposed Wellsite MC692-A Site Clearance Letter** 

**Murphy Exploration & Production Co. //**  **January 28, 2013**

**Geoscience Earth & Marine Services, Inc. ®** // 5 FORUM ENERGY TECHNOLOGIES, INC. **of stratified and chaotic intervals from 406 ft to 2,579 ft bml. The stratified sediments include tur**  **bidites, levee, overbank, and sheet sand deposits. Chaotic**  **intervals include mass-transport deposits and channel fill. Thin, continuous sand layers and sea**  **ms are likely within the stratified intervals inter bedded**  **with clays and silty clays. The chaotic intervals will contain mud-rich sediments; however, scattered**  **sand pockets and layers are likely. The MWD logs for MC**  **737 #1 display sand layers throughout the Blue and Green units. Sand layers measuring up to 10 ft thi**  **ck within the Blue unit and up to 40 ft thick withi n the** 

**Green unit are evident at the MC 737 #1 well. Sedi ments within the Blue unit at the MC 737 #1 well** 

**consist of stratified turbidites while Blue unit se diments at the proposed location are predominantly**  **clay-rich, mass-transport deposits. Potential sand seams within the stratified slope-fan deposits at**  **the MC 737 #1 well may not correlate to the chaotic mas**  **s-transport deposits at the proposed location withi n**  **Unit 3 (Illustration MC692A-4). Various sand layer s within the Green unit at the MC 737 #1 well could**  **not be directly correlated to the proposed wellsite; ho**  **wever, thin sand seams are expected within the Gree n**  **unit slope-fan deposits at the Proposed Wellsite MC 692-A (Illustration MC692A-4).** 

**Unit 5 (2,597 ft to 4,917 ft bml) consists of strat ified reflectors to the limit of the investigation.**  **The section**

**will consist of turbidites interbedded with thin ma ss-transport deposits. The turbidites will be alte**  **rnating layers of clay, silt, and sand. The MWD logs show**  **interspersed sand layers up to 70 ft thick at the MC 737 #1 well. Similar stratigraphy is expected a**  **t the Proposed Wellsite MC692-A between 2,597 ft and 4,917 ft bml (Illustration MC692A-4).** 

Faults

**Proposed Wellsite MC692-A is not expected to inters ect any seafloor or buried faults in the shallow**  **section to the limit of investigation (Illustration MC692A-2). The closest seafloor fault lies approx**  **imately 4,750 ft northeast of the proposed location. This**  **fault trends northwest to southeast and is downthro wn to** 

**the northeast.**

**Several buried faults exist near the proposed well location within Units 4 and 5 (1,467 ft to 4,917 ft**  **bml), Map No. MC692A-4 and Illustrations MC692A-2 and MC6**  **92A-3. These faults are adjustment faults and generally trend northeast-southwest. These faults**  **do not appear to be intersected by the proposed wel l**  **and are not expected to impact drilling operations.**

Shallow Gas and Shallow Water Flow

**The potential for shallow gas at this well location is generally negligible to low, while the potentia**  **l for shallow water flow is negligible to moderate (Illus**  **tration MC692A-3).**

Shallow Gas. **There are no apparent subsurface high-amplitude ano malies directly beneath the**  **proposed wellsite (Map No. MC692A-4 and Illustratio n MC692A-3). A negligible potential for**  **encountering shallow gas exists within the clay-pro ne intervals within Units 1 and 2 (seafloor to**  **406 ft bml). There is a low potential for encounte ring shallow gas within Unit 3 (406 ft to 713 ft bm**  **l), Unit 4 (713 ft to 2,579), and Unit 5 (2,579 ft to 4**  **,917 ft bml). Low- to moderate-amplitude reflector s within**  **the channel, turbidite, mass-transport, and slope-f an deposits may indicate gas-filled, coarse grained**  **sediments of predominantly clay-rich intervals. Mi nor amounts of solution gas may be encountered with**  **in**

**isolated sands.**

Shallow Water Flow. **The Blue and Green units (Units 3 and 4) are slop e-fan complexes that contain** 

**sand-rich intervals and have sourced shallow water flow problems in the Mississippi Canyon region**  **(BOEM, 2013b). Nine incidents are reported from we lls in a 20-mile radius of the proposed MC 692-A**  **location within these sequences. Reported depths b elow the mudline to the flows vary from 924 ft to**  **2,374 ft. The severity of the flows varied from mo derate to low. Exploration and production wells in**  **MC 736 to the south do not appear on the BOEM listi ng of shallow water flow incidents; however, no**  **drilling reports are available from these offset we lls. MWD logs for Murphy’s MC 737 #1 well were**  **provided to assess potential sand layers within the stratigraphic units at the proposed well location.**  **Based on the seismic character, the regional histor y of Blue and Green units, and the MWD logs from th**  **e MC 737 #1 well, we consider the section from 406 ft**  **to 2,373 ft bml to have a moderate potential for overpressured sand layers. The MWD logs show inter**  **spersed sand layers throughout Units 3 and 4. Sand layers at the MC 737 #1 well measure up to 10**  **ft thick within Unit 3 and up to 40 ft thick within Proposed Wellsite MC692-A Site Clearance Letter** 

**Murphy Exploration & Production Co. //**  **January 28, 2013**

**Geoscience Earth & Marine Services, Inc. ®** // 6
FORUM ENERGY TECHNOLOGIES, INC. **Unit 4. Although these sand layers may not directl y correlate to the sediments in Units 3 and 4 at th**  **e proposed well location, interbedded sand layers are**  **expected.**

**Units 2 and 5 have a low potential for overpressure d sand layers. Any sands encountered within the**  **turbidite and mass-transport deposits within this u nit are expected to be thin seams and not likely to**  **produce sustained flows. The clay-rich surficial s equence (Unit 1) has a negligible potential for**  **overpressured sands.**

Results and Recommendations

**The Proposed Wellsite A, Mississippi Canyon Block 6 92, appears suitable for exploration drilling**  **operations; however, some constraints were observed . We advise using caution while drilling through t**  **he potential overpressured sands below 406 ft bml, som**  **e of which may contain minor amounts of biogenic gas. Particular concern should be given to Units 3**  **and 4 (406 ft to 2,373 ft bml) that correlate to t he**  **regional Blue and Green units. These units are ass ociated with numerous water flow events throughout**  **much of the Mississippi Canyon Area.**

Closing

**We appreciate the opportunity to be of service to M urphy Exploration & Production Co., and look forwar**  **d to working with Murphy on future projects.** 

**Sincerely,**

GEOSCIENCE EARTH & MARINE SERVICES, INC. ®

**Carla Cleveland Daniel Lanier** 

**Geoscientist Vice President-Geosciences** 

**Kendra Kennedy, M. A. Erin Williams Janes Marine Archaeologist Senior Geoscientist/Project Ma**  **nager**

**Attachments (4 Maps and 3 Illustrations)**

**Distribution: Mr. Alan Hadfield, Murphy Exploration & Production**  **Co. (6 Copies)**

REFERENCES

**Bureau of Ocean Energy Management, 2011, Notice to lessees and operators of federal oil and gas leases**  **and pipeline right-of-way holders on the outer continen**  **tal shelf, Revisions to the list of OCS lease block s requiring**  **archaeological resource surveys and reports: U. S. Department of the Interior, Bureau of Ocean Energy**  **Management, Bureau of Safety and Environmental Enfo rcement, Gulf of Mexico OCS Region (GOMR), NTL 2011** 

**- JOINT-G01. Effective Date December 29, 2011.** 

**Bureau of Ocean Energy Management, 2013a, ASCII Dat a Files, published on the BOEM Gulf of Mexico Regio**  **n Homepage, <http://www.data.boem.gov/homepg/data_cen**  **ter/mapping/geographic_mapping.asp>, Accessed January, 2013.** **Proposed Wellsite MC692-A Site Clearance Letter**

**Murphy Exploration & Production Co. //**  **January 28, 2013**

**Geoscience Earth & Marine Services, Inc. ®** // 7 FORUM ENERGY TECHNOLOGIES, INC. **Bureau of Ocean Energy Management, 2013b, Safety pe rformance review – shallow waterflows can pose sign**  **ificant hazards to deepwater drilling, published on the BOE**  **M Gulf of Mexico Region Homepage, <http://www.boem. gov/Oil**  **and-Gas-Energy-Program/Resource-Evaluation/Geologic al-and-Geophysical-Reviews/Reviews-Gulf-of**  **Mexico.aspx>, accessed January, 2013.**

**Coffeen, J. A., 1978, Seismic Exploration Fundament als: Tulsa, the Petroleum Publishing Co., p. 125.** 

**Geoscience Earth & Marine Services, Inc. (GEMS), 20 12, Geologic, stratigraphic, and archaeological ass**  **essment block 692 (OCS-G-34455), Mississippi Canyon Area, G**  **ulf of Mexico, Project No. 1012-2152b.**

**Minerals Management Service, 2005, Notice to lessee s and operators of federal oil, gas, and sulphur le**  **ases and pipeline right-of-way holders in the outer continen**  **tal shelf, Gulf of Mexico OCS region, Archaeologica l resource**  **surveys and reports: U. S. Department of the Inter ior, Minerals Management Service, Gulf of Mexico, N**  **TL 2005-G07. Effective Date July 1, 2005.** 

**Minerals Management Service, 2008a, Notice to lesse es and operators of federal oil, gas, and sulphur l**  **eases in the outer continental shelf, Gulf of Mexico OCS region,**  **information requirements for exploration plans and development**  **operations coordination documents: U. S. Department of the Interior, Minerals Management Service, Gulf**  **of Mexico, NTL 2008-G04. Effective Date May 1, 2008.** 

**Minerals Management Service, 2008b, Notice to lesse es and operators of federal oil, gas, and sulphur l**  **eases and pipeline right-of-way holders in the outer continen**  **tal shelf, Gulf of Mexico OCS region, shallow hazar ds program: U.**  **S. Department of the Interior, Minerals Management Service, Gulf of Mexico, NTL 2008-G05. Effective D**  **ate May 1,**

**2008.**

**Minerals Management Service, 2010, Notice to lessee s and operators of federal oil and gas leases in th**  **e outer continental shelf, Gulf of Mexico OCS region, Deepw**  **ater benthic communities: U. S. Department of the I nterior,**  **Minerals Management Service, Gulf of Mexico, NTL 20 09-G40. Effective Date January 27, 2010.**