### 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-09728
Type - Initial Exploration Plan
Lease(s) - OCS-G33706 Block - 833 Ewing Bank Area

Operator - Walter Oil & Gas Corporation

Wells A & B

Semisubmersible

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.

Ronald O'Connor Plan Coordinator Description -

Rig Type - Subject: From: October 22, 2013

# PUBLIC INFORMATION May, 2013



# INITIAL EXPLORATION PLAN

Lease Number: OCS-G 33706

Area/Block: Ewing Bank Block 833

Prospect Name: NA

Offshore: Louisiana

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

Paul Rodriguez (713) 659-1221 prodriguez@walteroil.com

Estimated start-up date: November 1, 2013

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

## WALTER OIL & GAS CORPORATION

INITIAL EXPLORATION PLAN

LEASE OCS-G 33706

EWING BANK BLOCK 833

APPENDIX A Plan Contents

APPENDIX B General Information

APPENDIX C Geological, Geophysical Information

APPENDIX D H2S Information

APPENDIX E Biological, Physical and Socioeconomic Information

APPENDIX F Wastes and Discharge Information

APPENDIX G Air Emissions Information

APPENDIX H Oil Spills Information

APPENDIX I Environmental Monitoring Information

APPENDIX J Lease Stipulations Information

APPENDIX K Environmental Mitigation Measures Information

APPENDIX L Support Vessels and Aircraft Information

APPENDIX M Onshore Support Facilities Information

APPENDIX N Coastal Zone Management Act (CZMA) Information

APPENDIX O Environmental Impact Analysis

APPENDIX P Administrative Information

## LIST OF ATTACHMENTS

A-1 OCS Plan Information Form
A-2 Well Location Plat A-3 Bathymetry Map A-4 Pay.Gov Receipt B-1 Blowout Scenario and WCD Calculations C-1 Structure Contour Maps C-2 3-D Seismic Lines C-3 Geological Structure Cross Sections C-4 Shallow Hazard Assessment C-5 Archaeology Survey C-6 Stratigraphic Column C-7 Time vs. Depth Table
E-1 Bathymetry and Seafloor Features Map
F-1 Projected Generated Wastes G-1 Air Emission Spreadsheets
L-1 Solid and Liquid Waste Transportation L-2 Vicinity Map N-1 Coastal Zone Management Consistency Certification

## Ewing Bank Block 833 Initial Exploration Record of Changes

Date Section/Page Remarks 07/02/13 A-1 Added rig will be equipped with a subsea BOP
Attachment
A-1 Amended OCS Plan Information Form to include E,W,N,S and + and - for lat. and long. Prov ided anchor radius. Changed archaeological area to yes.
Attachment C-4, Pages 3
and 29 Amended pages 3 and 29 of Geohazard assessment to show area in high archaeological potential.

Page C-2 Amended Attachment Num bers from C-5 to C-6 and C-6 to
C-7. Pages E-1

and E-2 Amended Page Numbers from F-1 and F-2 to E-1 and E-2

Page F-3 Amended Page Number from F-3 to F-1
Attachment
F-1 Amended Projected amount to indi cate total or per well. for

WBM Page H-1 Corrected OSRP approval date, added Plan control number
for OSRP WCD.
Attachment
L-1 Amended Onshore Waste Disposal Table to indicate total or per well, and transport method for 5 gallon drum. Page O-10 Added EW 833 is an Ar ch Block under Shipwreck Sites.
07-31-13 Attachment A-1 Page 1 Revised Activity Schedule

Attachment
B-1 Public Information Copy of Blowout Scenario

Attachment
G-1 Revised Air Quality Review due to activity schedule change.

08-01-13 Attachment
F-1 Revised Waste Discharge Table

Attachment
L-1 Revised Waste Onshore Disposal Table

08-22-13 Attachment
A-1 Revised activity schedule. Public and Proprietary

Page B-1 Added WCD daily volume, duration and total volume
Attachment
G-1 Revised Air Emissions Spreadshee ts to reflect new activity
schedule.
09-11-13 All Public and Prop rietary Information Copies

## Walter Oil & Gas Corporation Page A-1 Initial Exploration Plan May, 2013 Ewing Bank Block 833 (OCS-G 33706) 

# APPENDIX A PLAN CONTENTS

(A) PLAN INFORMATION FORM Under this Exploration Plan, Walter proposes to dr ill and complete two we lls. The wells will be drilled with an anchored semi-submersible MODU and are located in approximately 1200 to 1310 feet of water.

See attached OCS Plan Information Form – Form BOEM-137, included as Attachment A-1

.

(B) LOCATION: Included as Attachment A-2 is a Well Location Map depicting the proposed surface and bottom location of the proposed wells. Included as Attachment A-3 is a Bathymetry Map showing the water depths across the lease block.

(C) SAFETY AND POLLUTION PREVENTION FEATURES A description of the drilling unit is includ ed on the OCS Plan Information Form. Rig specifications will be made part of each Application for Permit to Drill.

Walter will drill these wells with a semi-submersib le drilling rig which is equipped with subsea BOPs. BOP information and schematics will be included as a part of the Application for Permits to Drill.

Safety features on the drilling unit will includ e well control, pollution prevention, and blowout prevention equipment as described in Title 30 CFR Part 250, Subparts C, D, E, and F; and as further clarified by BOEM Notices to Lessees, and current policy making invoked by the BOEM, Environmental Protection Agency a nd the U.S. Coast Guard. Appropriate life rafts, life jackets, ring buoys, etc., will be maintained on the facility at all times.

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

(D) STORAGE TANKS AND/OR PRODUCTION VESSELS

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

(bbls) Fluid Gravity (API) Fuel Oil (Marine Diesel) Semi-Submersible Drilling Rig 2,999 2 5,998 32.5 0



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

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

## Walter Oil & Gas Corporation Page A-2 Initial Exploration Plan May, 2013 Ewing Bank Block 833 (OCS-G 33706) (G) COST RECOVERY FEE Included as Attachment A-4 is a pay.gov receipt in the amount of $7,346.00 to cover operations proposed in this plan.

### U.S. Department of the Interior OMB Control Number: 1010-0151 Minerals Management Service OMB Approval Expires: July 31, 2008 

# OCS PLAN INFO RMATION FORM

GENERAL INFORMATION
Type of OCS Plan: x Exploration Plan (EP) Deve lopment Operations Coordination Document (DOCD) Company Name: Walter Oil & Gas Corporation BOEM Operator Number:
Address: 1100 Louisiana, Suite 200 Houston, Texas 77002 Contact Person: Judy Davidson

Phone Number: 281-578-3388
Email Address: judy.davidson@jccteam.com

Lease(s): G-33706 Area: EW Block(s): 833 Project Name (If Applicable): NA

Objective(s): Oil Gas Sulphur Salt Onshore Base: Fourchon, LA Dist ance to Closest Land (Miles): 64.9


### Description of Proposed Activities (Mark all that apply) Exploration drilling Development drilling Well completion Installation of production platform Well test flaring (for more than 48 hours) Installation of production facilities Installation of caisson or platform as well protection structure Installation of satellite structure

Installation of subsea wellheads and/or manifolds Commence production Installation of lease term pipelines Other (Specify and describe) Have you submitted or do you plan to submit a Conservation Information Document to accompany this plan? Yes x No 

### Do you propose to use new or unusual technology to conduct your activities? Yes 

### x No 

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

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

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

### Tentative Schedule of Proposed Activities

Proposed Activity Start Date End Date No. of Days

Drill Well A 11-01-13 01-19-14 80 Complete and Test A 01-19-14 03-01-14 41

Install subsea wellhead 03-01-14 03-03-14 2

Drill Well B 03-03-14 05-22-14 80 Complete and Test B 05-22-14 07-02-14 41

Install subsea wellhead 07-02-14 07-04-14 2 Description of Drilling Rig Description of Production Platform Jackup Drillship Caisson Tension leg platform Gorilla Jackup Platform rig Well protector Compliant tower

Semisubmersible Submersible Fixed platform Guyed tower

DP Semisubmersible Other (Attach Description) Subsea manifold Floating production system Drilling Rig Name (If Known): Spar Other (Attach description) Description of Lease Term Pipelines
From (Facility/Area/Block) To (Facility/Area /Block) Diameter (inches) Length (Feet)



## BOEM Form BOEM-137 (July 2005 – Supersedes all previous editions of form BOEM-137, which may not be used.) 

## ATTACHMENT A-1

## PLAN INFORMATION FORM (CONTINUED) 

## Include one copy of this page for each proposed well/structure



# BOEM Form BOEM-137 (July 2005 – Supersedes all previous editions of form BOEM-137, which may not be used.) Proposed Well/Structure Location

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

Anchor Radius (if applicable) in feet: 4900' Yes No

Surface Location Bottom-Hole Location (For Wells)

Lease No. OCS-G 33706

Area Name Ewing Bank

Block No. 833

Blockline Departures (in feet) N/S Departure: 4340' FSL

E/W Departure: 3069' FEL

Lambert X-Y coordinates X: 2,610,531.00

Y: 10,221,140.00

Latitude/ Longitude Latitude: 28 0 

### 07' 59.08" N

Longitude: 89 0 

### 59' 23.58" W

TVD (Feet): MD (Feet): Water Depth (Feet): 1310'
Anchor Locations for Drilling Rig or Construction Barg e (If anchor radius supp lied above, not necessary)
Anchor Name or No. Area Block X Coordinate Y Coordinate Length of Anchor Chain on Seafloor

X = Y =

X = Y =

X = Y =

X = Y =

X = Y =

X = Y =

X = Y =

X = Y =



### Paperwork Reduction Act of 1995 Statement: The Paperwork Reduction Act of 1995 (44 U.S.C. Chapter 35) requires us to inform you that BOEM collects this information as part of an Walter Oil & Gas Corporation’s Exploration Plan or Development Operations Coordination Document submitted for BOEM approval. We use the information to facilitate our review and data entry for OCS plans. We will protect proprieta ry data according to the Freedom of Information Act and 30 CFR 250.196. An agency may not conduct or sponsor, and a pers on is not required to respond to , a collection of information unless it displays a currently valid Office of Management and Budget Control Number. The use of this form is voluntary. The public reporting burden for this form is included in the burden for preparing Exploration Plans and Development Operations Coordination Documents. We estimate that burde n to average 580 hours per response, including the time for reviewing instructions, gathering and ma intaining data, and completing and review ing the form. Direct comments regarding the burden estimate or any other aspect of this form to the Information Collection Clearance Officer, Mail Stop 4230, Minerals Management Service, 1849 C Street, N.W., Washington, DC 20240.

## PLAN INFORMATION FORM (CONTINUED) 

## Include one copy of this page for each proposed well/structure



# BOEM Form BOEM-137 (July 2005 – Supersedes all previous editions of form BOEM-137, which may not be used.) Proposed Well/Structure Location

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

Anchor Radius (if applicable) in feet: 4100' Yes No

Surface Location Bottom-Hole Location (For Wells)

Lease No. OCS-G 33706

Area Name Ewing Bank

Block No. 833

Blockline Departures (in feet) N/S Departure: 3200' FSL

E/W Departure: 5940' FEL

Lambert X-Y coordinates X: 2,607,660.00

Y: 10,220,000.00

Latitude/ Longitude Latitude: 28 0 

### 07' 48.51" N

Longitude: 89 0 

### 59' 55.88"W

TVD (Feet): MD (Feet): Water Depth (Feet): 1200'
Anchor Locations for Drilling Rig or Construction Barg e (If anchor radius supp lied above, not necessary)
Anchor Name or No. Area Block X Coordinate Y Coordinate Length of Anchor Chain on Seafloor

X = Y =

X = Y =

X = Y =

X = Y =

X = Y =

X = Y =

X = Y =

X = Y =



### Paperwork Reduction Act of 1995 Statement: The Paperwork Reduction Act of 1995 (44 U.S.C. Chapter 35) requires us to inform you that BOEM collects this information as part of an Walter Oil & Gas Corporation’s Exploration Plan or Development Operations Coordination Document submitted for BOEM approval. We use the information to facilitate our review and data entry for OCS plans. We will protect proprieta ry data according to the Freedom of Information Act and 30 CFR 250.196. An agency may not conduct or sponsor, and a pers on is not required to respond to , a collection of information unless it displays a currently valid Office of Management and Budget Control Number. The use of this form is voluntary. The public reporting burden for this form is included in the burden for preparing Exploration Plans and Development Operations Coordination Documents. We estimate that burde n to average 580 hours per response, including the time for reviewing instructions, gathering and ma intaining data, and completing and review ing the form. Direct comments regarding the burden estimate or any other aspect of this form to the Information Collection Clearance Officer, Mail Stop 4230, Minerals Management Service, 1849 C Street, N.W., Washington, DC 20240.

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## Walter Oil & Gas Corporation Page B-1 Initial Exploration Plan May, 2013 Ewing Bank Block 833 (OCS-G 33706) 

# APPENDIX B GENERAL INFORMATION

(A) APPLICATIONS AND PERMITS Listed in the table below are additional permits/a pplications to be filed before operations can commence under this EP:

Application/Permit Issuing Agency Status Application for Permit to Drill BSEE To be submitted

(B) DRILLING FLUIDS Type of Drilling Fluid Estimated Volume of Drilling Fluid to be Used per Well Water-based Drilling Fluid 7,500 bbls/well Oil-based (diesel, minerals, oil) NA Synthetic-based (internal olefin, ester) 4,000 bbls/well

(C) NEW OR UNUSUAL TECHNOLOGY Walter does not propose to use any new or unusual technology to ca rry out the proposed exploration activities.

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

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

(F) DEEPWATER WELL CONTROL STATEMENT Walter Oil & Gas Corporation (BOEM Company Numb er 0730) has, or will have the financial capability to drill a relief well and conduc t other emergency well control operations.

(G) BLOWOUT SCENARIO Included as Attachment B-1 is the Blowout scenario and Worst- Case Discharge Calculation Data for operations proposed in this plan. The WCD is estimated to be 109,474 bbls/day with a total duration of 121 days and total volume of 13,246,354 barrels.

# Attachment B-1 Blowout Scenario and WCD Calculations

There are currently three moored semi-submersi ble drilling rigs with 15,000 psi subsea blowout preventers with derrick c apacity and horsepower available for relief well drilling in case the semisubmersible rig has blow out. It is estimated that a contract could be administered and additional equipment procured to drill the relief well in one hundred and twenty one days. Available and safety record will be predominant factor for selecting the relief well rig (2 days to acquire rig, 14 days to move on location and set anchors and 105 days to drill relief well).

Measure to prevent Blowout: Ewing Banks 833 Well A is the deepest well to be drilled in the area. Walter O&G was successfully drilling EW 834 #1 uisng Esies seismic based pore pressure before the well was suspended due to the Macondo incident. Additional seismic pore pressure detection (i e Eseis) will be used to mitigate risk for drilling of the subject well. MWD/PWD will provide down hole pressure informati on to mitigate risk of blowout. The use of MWD will also provide accurate loca tion of the zone if an incident occurs.

Additional precautions and safety procedures: 1. Complete detailed well design program for drilling operations including mud program and cement program. Safety meeting will be conducted every to ur to communicate importance of operations.

2. Maintain mud properties consistent with offset wells.

3. Flow monitoring equipment for the rigs mud re turn system with real time data provided to supervisory personnel.

4. Real-time gas monitoring for the purpose of me asuring gas units contained in the mud system for supervisory personnel.

5. Drilling breaks monitored and check for flow. In the event of flow, mud weight will be increased to control the well.

6. Monitoring of trip volumes both pulling in and out of the hole. Proper fill up volumes will be measured.

7. Control surge and swab pressures.

8. Circulate bottoms up before trips to insure the well is stable and free of gas.

9. Testing of BOP’s at a minimum of every tw o weeks when rams are changed or BOP’s repaired.

Measures to reduce the likelihood of a blowout: 1. Contractor personnel (driller and tool pusher) have t he authority to shut well(s) in should a well flow be encountered. Company personnel will be informed of the situation.

2. Company personnel will go to the floor immediately to assist Contractor personnel in industry-best practices kill procedure.

3. Proper API casing design and cementing prac tices using centralizers as recommended by simulation to insure centralized casing and 360 degree annular fill up of cement.

4. Production casing will have two barriers (float collar and float shoe).

5. Upon bumping the plug in cement operations, float s will be checked. In t he event the floats do not hold, pressure will be maintained for 6-8 hours, an d then shoe tract will be rechecked. Remedial cementing or setting of bridge plug will be taken if necessary to isol ate the shoe tract.

### 6. Run cement bond log to verify cement quality before displacing well with completion fluid.

Arrangements for drilling relief wells:

1. Review shallow hazards survey to determine positioning of relief well.

2. Contract and mobilize relief well rig.

3 Contract relief well directional drilling company and relief well drilling experts. Incorporate relief well trajectory and well plan

4. Prepare drilling program based on optimum rig position relative to targeted wellbore to optimize intervention. Incorporate relief well trajectory in well plan.

5. Well control experts may attempt to board the vessel and contain the blowout from the surface provided sufficient safety. HFRS equipment may be required to remove debris and provide fire fighting boats for access.

Note: Walter O&G is a member of Clean Gulf and the Helix Well Containment Group and will employ the HFPS (Helix Fast Response System ) in the event the is a spill.

Potential for well to bridge over Walter does not have sufficient information to anticipat e that this well would likely bridge over; therefore, discussion of the likelihood of the well to bridge over is not included in this plan. Walter does not have any empirical data.

Likelihood for surface intervention to stop blowout

. An ongoing operation for surface intervention will wo rk in parallel to the relief well operations. “Well Control” experts will board the rig, provide there is sufficient safety, to review the possibility of surface containment; or coordinate with relief well operations to contain the blowout. Firefighting boats and derrick barges will be employed to control the heat/fi re and strip away surfac e equipment that prohibit successful surface intervention. A capping stack/diverter arrangement could potentially be used provided wellbore/casing integrity is verified during the operation.

Rig package constraints (if none, a statement to that affect). No constraints.

Estimated time to drill relief well, including: Estimated 121 days Time to acquire a rig (days) : 2 days Time to move rig onsite (days) : 14 days Drilling time (days) : 105 days to drill relief well

Statement whether the possibility of using a near by platform was considered, if feasible. No nearby platform.

Measure to enhance ability to conduct effective a nd early intervention in the event of a blowout. Walter Oil & Gas Corporation is a member of He lix Well Control Group and the equipment is on standby in case of an incident.

## Walter Oil & Gas Corporation Page C-1 Initial Exploration Plan May, 2013 Ewing Bank Block 833 (OCS-G 33706) 

# APPENDIX C GEOLOGICAL AND GEOPHYSICAL INFORMATION

(A) GEOLOGICAL DESCRIPTION Proprietary Information



## (B) STRUCTURE CONTOUR MAP Proprietary Information

(C) INTERPRETED 2-D And/ Or 3-D SEISMIC LINE(S) Proprietary Information

(D) GEOLOGICAL STRUCTURE CROSS-SECTIONS Proprietary Information

(E) SHALLOW HAZARDS REPORT A shallow hazards survey was conducted over Ewing Bank Block 833. One hard copy and one CD of the shallow hazards report are being s ubmitted to the BOEM under separate cover.

(F) SHALLOW HAZARDS ASSESSMENT Utilizing the 3D seismic exploration data, a sh allow hazards assessment was prepared for the proposed surface locations, and is included as Attachment C-4. An archaeological assessment is included as Attachment C-5

.

(G) HIGH-RESOLUTION SEISMIC LINES High resolution seismic lines are included in the Shallow Hazards Assessment.

(H) STRATIGRAPHIC COLUMN Proprietary Information

(I) TIME VS DEPTH TABLES Proprietary Information

### Gardline Project Ref. 7071 Report Status Final

Issue Date November 28

, 20 1 2

Gardline Surveys Inc 1500 Bingle Road , Houston, TX 770 55 . USA Telephone 713 481 4630 Fax 713 464 8275 www.gardline.com 

# WALTER OIL & GAS COR PORATION

3D GEOHAZARD ASSESSM ENT

EWING BANK

BLOCK 83 3

PROPOSED A & B WELL LOCATION S

WELL CLEARANCE LETTE R S

OCTOBER 20 12

### Walter Oil & Gas Corporation Gardline Report 7071
Well Clearance Letter

- Ewing Bank, Block 833

- Proposed A & B Well Locations

1 

## WELL CLEARANCE LETTER

– PROPOSED EW83 3

- A WELL LOCATION

November 28, 2012 Walter Oil & Gas Corporation
1100 Louisiana Suite 200 Houston, TX 77002

Attention: Mr. Pete Hetherington

Well Clearance Letter Proposed EW833

- A Location Ewing Bank, Block 83 3
, OCS

- G 33706

Gardline Surveys Inc was contracted by Walter Oil & Gas Corporation to prepare a Well Clearance Letter for the proposed Ewi ng Bank, Block 8 33

- A location (OCS

- G 33706 ). This letter addresses seafloor and shallow geologic conditions that may impact exploratory drilling operations within 2,0 00ft of the proposed wellsite. The depth limit of this site clearance asse ssment is Hori zon H50 (

- 5

, 081 ft below sea surface, 3

, 771 ft below seabed). We understand that Walter Oil and Gas Corporation plans to drill the proposed exploration well from an anchored semi

- submersible rig; therefore

, an anchoring
assessment is included at the end of this volume. Relevant l etter

- size chart extracts, data examples,

and a Top Hole Prognosis are presented with this Well Clearance Letter. This geohazard assessment is based on the interpretation of 3D seismic data. This site clearance letter is issued as a supplement to Gardline Report No. 7071 entitled 3D Geohazard Assessment, G ulf of Mexico

– Ewing Bank Block s 833(E) & 834, Volume 1

- Geohazard Study.

3D Geophysical Survey. Walter Oil & Gas Corporation provided the 3D dataset to Gardline Surveys

Inc. on tape media in SEG

- Y format for loading onto a Seismic Micro

- Technology (SMT) workstation. The 3D data cube contains a survey with 4 millisecond sample rate data to a record length of 6.0
seconds TWT below sea surface. Inlines are oriented south to nor th, have a numerical increment of one, and exhibit a line spacing of 65.6 ft (20m). Crosslines are oriented west to east, have a numerical increment of one, and exhibit a line spacing of 41 ft (12.5m).

Acquisition Parameters (Streamer)
TGS

– Deep Resolve 3D

- Pre

- stack Time Migration (PSTM)

- 22 September

- 8 October 2005
Dual Source Clustered Air guns arrays

- 3040 cubic inches or 3222 cubic in
Source Interval 62.5m per sub

- surface line Streamer Length 9000m X 6

- a c quired in half streamer lengths 4500m X 6

Numbe r of Channels 350 per streamer/2160 per shot (Streame r length 4500m) Group Interval 12.5 Record Length 13000 s

### Walter Oil & Gas Corporation Gardline Report 7071
Well Clearance Letter

- Ewing Bank, Block 833

- Proposed A & B Well Locations

2 

### Sample Interval 2ms Multiplicity 72 fold at 6.25m bin interval, 144 fold at 12.5m bin interval
Recorded Bin Size 6.25m X 40m Primary Navigation DGPS for the Vessel, RGPS for front and tail buoys, and extensive in

- sea acoustic system Recording Instrument Sercel Seal 408 XL Cable Type Sercel

- Liquid filled RDP Cable Depth 9 meters +/

- 1meter
Filters 3 Hz (12dB/Octave)

- 200Hz (370 dB/Octave) Gun Depth 6 meters +/

- 1meter Shooting Direction North/South Acquired By: M/V Polar Search

- Source/Recording Boat, M/V Akademik Shatskiy

- Source

bo at, t wo boat o perations

Processing Parameters : Streamer Pre

- Processing Input SEGD Data Merge navigation with seismic tra ce headers Apply start data ( SOD) correction Resample from 2ms to 4ms Apply differential NMO, 2 to 1 trace sum, output group interval 25m Output navigation merge shot ordered tapes (SEGY)

Noise attenuation Velocity analysis Output 3D bin sorted tapes (SEGY ) 12.5m CDP Interval

- 2 by 72 fold Spherical divergence and gain correction

Deconvolution

Processing Parameters: Migration and Post Stack Processing Grid data to 25m by 40m bin (all data input into migration) Kirchhoff pre

- stack curved ray migration veloci ty analysis Output migration velocities Kirchhoff pre

- stack curved ray migration (25m by 40m) Output 3D bin sorted tapes (SEGY)

- 60 fold for streamer/58 fold for OBC Velocity analysis Automatic velocity picking update at every CDP location Output ETA velo city correction trace volumes

- SEGY (25m by 40m by 48msec and 12.5 by 20m by

4msec Radon demultiple Output migrated gathers with NMO/Radon (SEGY)

- 60 fold

Mute and stack Output raw migration

- 25m by 40m SEGY Output for corridor stacks

- 12.5m X 20m (SEGY)

### Walter Oil & Gas Corporation Gardline Report 7071
Well Clearance Letter

- Ewing Bank, Block 833

- Proposed A & B Well Locations

3 

### Apply filter and wrap scale Output processed migration tape

- 12.5m X 20m (SEGY) Data exhibits a good frequency response across the upper second below seabed, with an effective frequency range of 10

- 70Hz ( Figure 9 ). The data exhibits a dominant frequency in th e upper one second of approximately 53Hz, resulting in a mean vertical resolvability of typically 25ft and a layer detectability of 5ft. The data is considered good to excellent quality.

With respect to NTL 2008 G04:

a. The 3

- D data provides an image of suf ficient resolution of the shallow section to allow a clear analysis of the shallow conditions.

b. The data are loaded to a workstation at no less than 16

- bit (preferably 32

- bit) data resolution

and are un

- scaled.

c. There is no form of trace and/or sample decima tion of the original processed volume.

d. The original processed sample interval and bin size are maintained throughout the area.

e. Half of the percentage power spectrum analyses curve at the proposed well location possesses a frequency content of 50 Hz or high er across the first second of section below the seafloor.

f. Seafloor reflection is free of gaps and is defined by a wavelet of stable shape and phase to

allow auto

- tracking of the seafloor event with minimum user intervention and guidance.

g. Acquisition arte fa cts such as cross

- line statics and/or amplitude striping, though possibly identifiable in shallow section, do not detract from the overall interpretation of the picked event when mapped in time or amplitude. Similarly, time slices or windowed attribute ex tractions are devoid of, o r show minimal, acquisition arte facts to the detriment of their interpretation.

h. Merge points between datasets of differing origin or vintage that cross the area are marked by minimal, preferably no, time shifts or amplitude change s across the join that might otherwise be to the detriment of the interpretation.

i. Processed bin sizes are less than 40 meters in both the inline and crossline dimension. j. The processed output sample interval is 4 milliseconds or less.

k. Attention to definitio n of an accurate velocity model in the shallow section in processing allows optimum structural and stratigraphic resolution to have been achieved in the 3

- D migrated

volume. The shallow section shows no indication of under or over migration arte facts.

l. Mul tiple energy is unidentifiable or at a level that does not interfere with the analysis of the

shallow section.

m. The proposed activities are not in an area of high archaeological potential (see NTL No. 2005

- G07).

### Walter Oil & Gas Corporation Gardline Report 7071
Well Clearance Letter

- Ewing Bank, Block 833

- Proposed A & B Well Locations

4 

## 1. LOCATION COORDINATES

**1.1 Proposed EW833** 

**- A**  **Well Location**

Proposed EW833

- A Location (Surface)

Location Coordinates

NAD 27 Datum

- Clarke 1866 Ellipsoid UTM Zone 15N

- CM 93° West

Latitude 28° 0 7' 59 .08 ” North Easting 2,610,531 ft E
Longitude 89° 59’ 23 .58 ” West Northing 10,221,140 ft N

FEL of Ewing Bank 833 3,069 ft Inline 40 65 FSL of Ewing Bank 833 4,340 ft Crossline 6800
Water Depth:

- 1,31 0 ft Slope: 1.4° ENE

Nearest Shoreline 66 miles @ 349 °
Port of Operation Fourchon 68 miles @ 350  ̊

Nearest Manned Platform ENI A

- Morpeth 7 miles @ 197 °

### Walter Oil & Gas Corporation Gardline Report 7071
Well Clearance Letter

- Ewing Bank, Block 833

- Proposed A & B Well Locations

5 

## 2

. VELOCITY DATA

**2 .1**  **Velocity Data**

Time

- to

- depth conversion for the water column was derived using the Advocate and Hood (1993) po lynomial:

Water Depth (ft)=

0.1105

– 5066.9193X + 468.6693X 2



### – 554.7107X 3 

### + 340.7019X 4



### – 116.991X 5 

### + 20.728X 6



### – 1.4658X 7



### Where X = o ne way time to s eabed (in s econds)

Sub

- s eabed t ime

- to

- depth conversion was performed using a second order polynomial
derived from checkshot data at well EW790

- 1 from library records:

D epth below seabed (ft) = 176.51 X 2 

### +2628.7 X

Where X = two way time in seconds below seabed

### Walter Oil & Gas Corporation Gardline Report 7071
Well Clearance Letter

- Ewing Bank, Block 833

- Proposed A & B Well Locations

6 

## 3. SEABED CONDITIONS

**3.1 Bathymetry** 

Seabed depth at the proposed EW833

- A l ocation is

- 1, 3 10 ft below sea

- surface. The seafloor deepens to the ENE at 1.4 °.

**3.2 Sea**  **floor Morphology and Man Made Features**

The proposed EW83 3

- A well location is located in the southeast quadrant of B lock EW833

. T he seabed is slightly rugose at the proposed well location ( Figure 2 ) . The seabed within

2

, 0 00ft appears to be slightly rugose with minor faults to the south

, of which the closest is
~880ft from the proposed well location. Additional faults are located outside the 2,000ft radius of the well in all directions; none of these faults are expected to affect drilling of the proposed

we ll . There is no evidence to support any catastrophic soil failure in the vicinit y of the proposed well location; the seabed is predicted to be sta ble. Seabed sediments are clay

- prone. Shallow sediments appear conducive for jetting of seabed casing with n o hard layers predicted.

There are no anomalous seabed amplitudes indicative of hydrocarbon macroseep observed

within a 2,0 00ft radius of the proposed location ( Figure 3 )

.

There are two existing and one proposed pipeline plus two umbilicals oriented appr oximately

north to south located to the east of the proposed wellsite as tabulated below:

**Pipeline Installations**

Operator Segment Area Block

- Origin/Termination Outside Diameter (in) Product Status

Walter Oil &
Gas 14154 GI115 / MC837 1 inch Umbilical ( Hydraulic) O ut of Service

Walter Oil &
Gas 13133 EW878 / GI115 4 inch Bulk Gas Combined

Walter Oil &
Gas 1 3134 EW878 / GI115 4 inch Bulk Oil Combined

Walter Oil &
Gas 17411 GI115 / EW878 2 .5 inch Umbilical ( Elec / Hyd ) Out of Service

Walter Oil &
Gas 1 8613 EW878 / GI115 4 inch Bulk Oil Proposed



### The closest approach to the proposed site is 390 ft ENE of the proposed well location.

### Walter Oil & Gas Corporation Gardline Report 7071
Well Clearance Letter

- Ewing Bank, Block 833

- Proposed A & B Well Locations

7 

## 4. SUBSEABED GEOLOGY

**4.1 Geology and Lithology** 

The sub

- seabed geology has been divided into five units separated by five h orizons: Units A, B, C, D and E, and Horizons H10, H20, H30

, H40 and H50 ( Figures 4 through 7 ).

**4.2 Unit A** 

Lithology in this upper unit is interpreted as well

- layered

, clay

- prone and silt sediments. Generally, seabed sediments and shallow soils are expected to be good for jetting of the seabed casing with no hard

- grounds predicted

.

No shallow gas hazards or shallow water flow risks are predicted in Unit A.

Horiz on H10 marks the base of Unit A at

- 1, 7 16 ft below sea

- surface ( 406 ft below seabed).

**4.3 Unit**  **B**

This unit is interpreted to be a well

- layered

, clay

- prone and silt sequence with isolated coarser

grained interbeds and len ses in its upper interval from

- 1, 7 16 ft to

- 2, 230 f t below sea surface ( 406 ft to 920 ft below seabed).

The lower interval of Unit B is in terpreted to consist of mass transport clays and silts with possible fine sands. Minor fine sands with in this interval could be the source of minor shallow
water flow. Low volume shallow water flow has been recorded within this depth range to the

sout hea st of the present study area ( Ewing Bank B locks 1005 & 1006). As such, a Slight
Shallow Water Flow Risk is assigned to Unit B throughout the lower interval , from

- 2

, 230 ft to

- 2, 6 26 ft below sea surface ( 920 ft to 1,3 16 ft below seabed) at the proposed well

l ocation.

The base of this unit is marked by an erosional surface and a predicted lithology change. Horizon H20 represent s this interface at

- 2, 6 2 6 ft below sea surface ( 1,3 16 ft below seabed).

**4.4 Unit C** 

Lithology within this unit is expected to comprise o f clays and silts with localized sandy interbeds and lenses passing into clay rich sediments toward the base. Slightly coarser

interbeds within this unit may induce minor drilling fluid circulation and wellbore stability problems.

### Walter Oil & Gas Corporation Gardline Report 7071
Well Clearance Letter

- Ewing Bank, Block 833

- Proposed A & B Well Locations

8 

### No shallow gas hazards or shallow water flow risks are predicted in Unit C. A minor anomaly is observed in Unit C 725ft to the southwest, but is not connected to the proposed well

location.

The base of this unit is marked by Horizon H30, which represents a boundary between low amplitude reflectors at the base of Unit C and h igher

- amplitude and higher

- energy deposits at the top of the underlying Unit D. Horizon H30 occurs at

- 3

, 2 19 ft below sea surface (1, 9 09 ft below seabed).

**4.5 Unit D** 

This u nit is interpreted to comprise of cla y and silt sediments with numerous coarser

- grained interbeds and lenses deposited in a higher energy environment. Throughout this unit there
are a number of well

- defined somewhat high er

- amplitude reflectors, especially within the upper interval . These hi gh

- amplitude reflectors are interpreted as sand interbeds or lenses that could potentially be prone to shallow water flow. Also, these sands may induce minor drilling fluid circulation and wellbore stability problems.

A vertical well will intersect a nor mal fault within Unit D at

- 3, 314 ft below sea surface (2, 004 ft below seabed). Minor drilling fluid circulation problems may occur if pressures over hydrostatic are exerted by the drilling fluid column.

Given the probability o f sandy sediments within Unit D deposited rapidly with inadequate

de

- watering time and encapsulated by impermeable clays and silts, this unit is considered

a Moderate Shallow Water Flow Risk , especially in the upper interval

. F aulting has offset much of the connectivity that these sa nds once possessed, consequently no high amplitudes are identified ; however

, there is still the possibility that small pockets of trapped gas may be present through out this unit . As such, Unit D is also assigned a Sight Risk of

Gas

.

The base of this unit is marked by an erosional surface and a predicted lithology change. Horizon H40 represen ts this boundary at

- 3, 857 ft below sea surface (2, 547 ft below seabed).

**4.6 Unit E** 

This u nit is interpreted to be composed of clay s and silt s with occasional sandy int erbeds

.

The possibility of minor sandy interbeds in combination with areas of clay

- prone sediments

leads to a Slight Shallow Water Flow Risk throughout Unit E. Minor drilling fluid circulation and wellbore stability problems possible throughout this unit.

### Walter Oil & Gas Corporation Gardline Report 7071
Well Clearance Letter

- Ewing Bank, Block 833

- Proposed A & B Well Locations

9 

### Hor izon H50 marks the base of Unit E and the base of this shallow hazards assessment, occurring at

- 5,081ft below sea surface (3,771ft below seabed).

**4.7 Shallow Gas Assessment** 

Sandy interbeds through out Unit D, between

- 3

, 2 19 ft and

- 3, 857 ft below sea s urface ( 2

, 004 ft
to 2, 547 ft below seabed), are considered a Slight Gas Risk

.

**4.8 Shallow Water Flow Assessment** 

A Slight Shallow Water Flow Risk is predicted in th e lower interval of Unit B between

- 2

, 230 ft

an d

- 2, 6 2 6 ft below sea surface ( 920 ft to 1,3 16 ft be low seabed).

A Moderate Shallow Water Flow Risk is assigned to Unit D between

- 3

, 2 19 ft and

- 3, 857 ft below sea surface (1, 9 09 ft to 2, 547 ft below seabed).

A Slight Shallow Water Flow Risk is assigned to Unit E at the proposed well location

between

- 3, 857 ft and

- 5

, 081 ft below sea surface (2, 547 ft to 3

, 771 ft below seabed).

### Walter Oil & Gas Corporation Gardline Report 7071
Well Clearance Letter

- Ewing Bank, Block 833

- Proposed A & B Well Locations

10 

## 5. CONCLUSIONS AND RECOMMENDATIONS

**•** Seabed

No significant problems are anticipated at seabed.

**•** Unit A

No hazards or problems predicted. Shallow soils are expected to be conducive to jettin g of seabed casing with no hardgrounds predicted.

**•** Unit B

Slight Shallow Water Flow Risk is predicted in th e lower interval of Unit B between

- 2

, 230f t
and

- 2, 6 2 6 ft below sea surface ( 920 ft to 1,3 16 ft below seabed). Drilling Caution is advised. Appropriat e drilling methodology is recommended to deal with a minor non

- persistent shallow water flow event throughout this interval.

**•** Unit C

Occasional coarser interbeds may be experienced between

- 2,626ft and

- 3,219ft below sea surface (1,316ft to 1,909 ft below s eabed) . Minor drilling fluid circulation and wellbore stability problems are possible through this inter val

.

**•** Unit D

A Slight Risk of Gas is predicted throughout Unit D at the proposed well location between

- 3

, 2 19 ft and

- 3, 857 ft below sea surface (1, 9 09 ft to 2, 547 ft below seabed). Drilling C aution is advised through Unit D.

Minor drilling fluid circulation problems are possible if pressures over hydrostatic are exerted by the drilling fluid column at the level of a normal fault at

- 3,314ft below sea surfac e (2,004ft below seabed). Casing seats should avoid this level as formation integrity could be compromised.

A Moderate Shallow Water Flow Risk is assigned to Unit D between

- 3

, 2 19 ft and

- 3, 857 ft below sea surface (1,9 09 ft to 2, 547 ft below seabed). Drill ing Caution is advised. Appropriate drilling methodology is recommended to deal with a minor non

- persistent shallow water flow event throughout this interval.

**•** Unit E

A Slight Shallow Water Flow Risk is assigned to Unit E at the proposed well location bet ween

- 3, 857 ft and

- 5

, 081 ft below sea surface (2, 547 ft to 3

, 771 ft below seabed). Drilling Caution is

### Walter Oil & Gas Corporation Gardline Report 7071
Well Clearance Letter

- Ewing Bank, Block 833

- Proposed A & B Well Locations

11 

### advised. Appropriate drilling methodology is recommended to deal with a minor non

- persistent shallow water flow event through this interval.

### Walter Oil & Gas Corporation Gardline Report 7071
Well Clearance Letter

- Ewing Bank, Block 833

- Proposed A & B Well Locations

12 

### We apprecia te the opportunity to work with you on this project and look forward to continuing as your geohazards consultants. Please contact us if you have any questions or if we can be of further

assistance.

Sincerely,

Andrew Haigh Matilde DeLeon Geophy sical Manager Quality Assurance

Copies Submitted: 6 copies to Mr. Pete Hetherington at Walter Oil & Gas Company

Attachments:

Proposed EW833

- A Well Location

Seabed Depth Extract

Seabed Morphology Extract

Seabed Amplitude Extract

Geohazard Summar y Extract

Inline Data Example

Crossline Data Example

Top Hole Prognosis

ROV Plat

Power Spectrum

Bathymetry Plat

Public Information Plat

Proprietary Information Plat

Vicinity Map

10

- Mile Radius Plat®33 3

3 ®33 3

3
P r o p o s e d E W 8 3 3

- A W e l l89°59'0"W89°59'30"W90°0'0"W 2 8 ° 8 ' 3 0 " N

2 8 ° 8 ' 0 " N

2 8 ° 7 ' 3 0 " N2,608,0002,610,0002,612,0002,614,000

1 0

, 2 1 8

, 0 0 0 1 0

, 2 2 0

, 0 0 0 1 0

, 2 2 2

, 0 0 0 1 0

, 2 2 4

, 0 0 0



### C h a r t S c a l e 1 ' ' = 1

, 0 0 0 f t 

# S e a b e d D e p t h E x t r a c t

F i g u r e 1 ( E W 8 3 3

- A ) 

# ±

P r o p o s e d E W 8 3 3

- A W e l l L o c a t i o n 2

, 6 1 0

, 5 3 1 f t E / 1 0

, 2 2 1

, 1 4 0 f t N ®33 3

3

0 8 0 0 1

, 6 0 0 4 0 0 F e e t

0 2 5 0 5 0 0 1 2 5 M e t e r s 2

, 0

0

0 f t R

a d

i u s

D e p t h i n f e e t b e l o w s e a s u r f a c e
t o s e a b e d

, c o n t o u r e d a t 2 5 f t i n t e r v a l s

. - 1 3 1 0

S e a b e d D e p t h ( F e e t ) P r o p o s e d E W 8 3 3

- B W e l l L o c a t i o n 2

, 6 0 7

, 6 6 0 f t E / 1 0

, 2 2 0

, 0 0 0 f t N ®33 3

3

B l o c k L i n e 

## E w i n g B a n k B l o c k 8 3 3 ( O C S

- G 3 3 7 0 6 )

W

a l t e r O & G 1 " U m b i l i c a l ( 1 7 3 1 0 )

W a l t e r O & G 2 " L i f t ( 1 7 3 1 3 ) W

a l t e r O & G 2 " U m b i l i c a l ( 1 7 4 1 1 )

P r o p o s e d W a l t e r 4 " B U L K O I L ( 1 8 6 1 3 )

P i p e l i n e s®33 3

3 ®33 3

3
P r o p o s e d E W 8 3 3

- A W e l l89°59'0"W89°59'30"W90°0'0"W 2 8 ° 8 ' 3 0 " N

2 8 ° 8 ' 0 " N

2 8 ° 7 ' 3 0 " N2,608,0002,610,0002,612,0002,614,000

1 0

, 2 1 8

, 0 0 0 1 0

, 2 2 0

, 0 0 0 1 0

, 2 2 2

, 0 0 0 1 0

, 2 2 4

, 0 0 0



### C h a r t S c a l e 1 ' ' = 1

, 0 0 0 f t 

# S e a b e d M o r p h o l g y E x t r a c t

F i g u r e 2 ( E W 8 3 3

- A ) 

# ±

P r o p o s e d E W 8 3 3

- A W e l l L o c a t i o n 2

, 6 1 0

, 5 3 1 f t E / 1 0

, 2 2 1

, 1 4 0 f t N ®33 3

3

0 8 0 0 1

, 6 0 0 4 0 0 F e e t

0 2 5 0 5 0 0 1 2 5 M e t e r s 2

, 0

0

0 f t R

a d

i u s

P r o p o s e d E W 8 3 3

- B W e l l L o c a t i o n 2

, 6 0 7

, 6 6 0 f t E / 1 0

, 2 2 0

, 0 0 0 f t N ®33 3

3

B l o c k L i n e 

## E w i n g B a n k B l o c k 8 3 3 ( O C S

- G 3 3 7 0 6 )

2 5 0 f t e x c l u s i o n z o n e

a r o u n d s e n s i t i v e s e s s i l e b e n t h i c c o m m u n i t i e s S e a b e d f a u l t s , t i c k s d e n o t e d o w n t h r o w s i d e W

a l t e r O & G 1 " U m b i l i c a l ( 1 7 3 1 0 )

W a l t e r O & G 2 " L i f t ( 1 7 3 1 3 ) W

a l t e r O & G 2 " U m b i l i c a l ( 1 7 4 1 1 )

P r o p o s e d W a l t e r 4 " B U L K O I L ( 1 8 6 1 3 )

P i p e l i n e s®33 3

3 ®33 3

3
P r o p o s e d E W 8 3 3

- A W e l l89°59'0"W89°59'30"W90°0'0"W 2 8 ° 8 ' 3 0 " N

2 8 ° 8 ' 0 " N

2 8 ° 7 ' 3 0 " N2,608,0002,610,0002,612,0002,614,000

1 0

, 2 1 8

, 0 0 0 1 0

, 2 2 0

, 0 0 0 1 0

, 2 2 2

, 0 0 0 1 0

, 2 2 4

, 0 0 0



### C h a r t S c a l e 1 ' ' = 1

, 0 0 0 f t 

# S e a b e d A m p l i t u d e E x t r a c t

F i g u r e 3 ( E W 8 3 3

- A ) 

# ±

P r o p o s e d E W 8 3 3

- A W e l l L o c a t i o n 2

, 6 1 0

, 5 3 1 f t E / 1 0

, 2 2 1

, 1 4 0 f t N ®33 3

3

0 8 0 0 1

, 6 0 0 4 0 0 F e e t

0 2 5 0 5 0 0 1 2 5 M e t e r s 2

, 0

0

0 f t R

a d

i u s

R e l a t i v e S e a b e d A m p l i t u d e P r o p o s e d E W 8 3 3

- B W e l l L o c a t i o n 2

, 6 0 7

, 6 6 0 f t E / 1 0

, 2 2 0

, 0 0 0 f t N ®33 3

3

B l o c k L i n e 

## E w i n g B a n k B l o c k 8 3 3 ( O C S

- G 3 3 7 0 6 )

P i p e l i n e s W a l t e r O & G 1 " U m b i l i c a l ( 1 7 3 1 0 )

W a l t e r O & G 2 " L i f t ( 1 7 3 1 3 ) W

a l t e r O & G 2 " U m b i l i c a l ( 1 7 4 1 1 )

P r o p o s e d W a l t e r 4 " B U L K O I L ( 1 8 6 1 3 )®33 3

3 ®33 3

3
P r o p o s e d E W 8 3 3

- A W e l l89°59'0"W89°59'30"W90°0'0"W 2 8 ° 8 ' 3 0 " N

2 8 ° 8 ' 0 " N

2 8 ° 7 ' 3 0 " N2,608,0002,610,0002,612,0002,614,000

1 0

, 2 1 8

, 0 0 0 1 0

, 2 2 0

, 0 0 0 1 0

, 2 2 2

, 0 0 0 1 0

, 2 2 4

, 0 0 0



### C h a r t S c a l e 1 ' ' = 1

, 0 0 0 f t 

# G e o h a z a r d S u m m a r y E x t r a c t

F i g u r e 4 ( E W 8 3 3

- A ) 

# ±

P r o p o s e d E W 8 3 3

- A W e l l L o c a t i o n 2

, 6 1 0

, 5 3 1 f t E / 1 0

, 2 2 1

, 1 4 0 f t N ®33 3

3

0 8 0 0 1

, 6 0 0 4 0 0 F e e t

0 2 5 0 5 0 0 1 2 5 M e t e r s 2

, 0

0

0 f t R

a d

i u s

P r o p o s e d E W 8 3 3

- B W e l l L o c a t i o n 2

, 6 0 7

, 6 6 0 f t E / 1 0

, 2 2 0

, 0 0 0 f t N ®33 3

3

B l o c k L i n e 

## E w i n g B a n k B l o c k 8 3 3 ( O C S

- G 3 3 7 0 6 )

2 5 0 f t e x c l u s i o n z o n e a r o u n d s e n s i t i v e

s e s s i l e b e n t h i c c o m m u n i t i e s S e a b e d f a u l t s , t i c k s d e n o t e d o w n t h r o w s i d e

S l i g h t t o l o c a l l y M o d e r a t e R i s k

o f G a s w i t h i n U n i t A

S l i g h t R i s k o f G a s

w i t h i n U n i t B

M o d e r a t e R i s k o f G a s

w i t h i n U n i t C

M o d e r a t e t o H i g h R i s k o f G a s w i t h i n U n i t D

H i g h R i s k o f G a s

w i t h i n U n i t E W

a l t e r O & G 1 " U m b i l i c a l ( 1 7 3 1 0 )

W a l t e r O & G 2 " L i f t ( 1 7 3 1 3 ) W

a l t e r O & G 2 " U m b i l i c a l ( 1 7 4 1 1 )

P r o p o s e d W a l t e r 4 " B U L K O I L ( 1 8 6 1 3 )

P i p e l i n e s

### Walter Oil & Gas Corporation Gardline Report 7071
Well Clearance Letter

- Ewing Bank, Block 833

- Proposed A & B Well Locations

27 

## WELL CLEARANCE LETTER

– PROP OSED EW833

- B WELL LOCATION

November 28, 2012 Walter Oil & Gas Corporation
1100 Louisiana Suite 200 Houston, TX 77002

Attention: Mr. Pete Hetherington

Well Clearance Letter Proposed EW833

- B Location Block 833, Ewing Bank Area
OCS

- G 33706

Gardline Sur veys Inc was contracted by Walter Oil & Gas Corporation to prepare a Well Clearance Letter for the proposed EW833

- B location in Ewing Bank, Block 833 (OCS

- G 33706). This letter addresses seafloor and shallow geologic conditions that may impact exploratory drilling operations within 2,000ft of the proposed wellsite. The depth limit of this site clearance assessment is Horizon H50 (

- 4,3 17 ft below sea surface, 3

, 117 ft below seabed). We understand that Walter Oil and Gas Corporation plans to drill the propos ed exploration well from an anchored semi

- submersible rig; therefore, an anchoring assessment is included at the end of this volume. Relevant l etter

- size chart extracts, data examples, and a Top Hole Prognosis are presented with this Well Clearance Letter . This geohazard assessment is based on the interpretation of 3D seismic data. This site clearance letter is issued as a supplement to Gardline Report No. 7071 entitled 3D Geohazard Assessment, Gulf of

Mexico

– Ewing Bank Blocks 833(E) & 834, Volume 1

- Geohazard Study.

3D Geophysical Survey. Walter Oil & Gas Corporation provided the 3D dataset to Gardline Surveys Inc. on tape media in SEG

- Y format for loading onto a Seismic Micro

- Technology (SMT) workstation. The 3D data cube contains a survey with 4 millisecond sample rate data to a record length of 6.0 seconds TWT below sea surface. Inlines are oriented south to north, have a numerical increment of one, and exhibit a line spacing of 65.6 ft (20m). Crosslines are oriented west to east, have a n numeri cal increment of one, and exhibit a line spacing of 41.0 ft (12.5m).

Acquisition Parameters (Streamer)
TGS

– Deep Resolve 3D

- Pre

- stack Time Migration (PSTM)

- 22 September

- 8 October 2005
Dual Source Clustered Air guns arrays

- 3040 cubic inches or 3222 cubic in
Source Interval 62.5 m per sub

- surface line Streamer Length 9000 m X 6

- adquired in half

- streamer lengths 4500m X 6
Number of Channels 350 per streamer/2160 per shot (Streamer length 4500m) Group Interval 12.5 Record Length 13000s

### Walter Oil & Gas Corporation Gardline Report 7071
Well Clearance Letter

- Ewing Bank, Block 833

- Proposed A & B Well Locations

28 

### Sample Interval 2ms Multiplicity 72 fold at 6.25m bin interval, 144 fold at 12.5m bin interval
Recorded Bin Size 6.25m X 40m Primary Navigation DGPS for the Vessel, RGPS for front and tail buoys, and Extensive in sea acoustic system Recording Instrument Sercel Seal 408 XL
C able Type Sercel

- Liquid filled RDP Cable Depth 9 meters +/

- 1meter
Filters 3 Hz (12dB/Octave)

- 200Hz (370 dB/Octave) Gun Depth 6 meters +/

- 1meter Shooting Direction North/South Acquired By: M/V Polar Search

- Source/Recording Boat, M/V Akademik Shatskiy

- Sour ce boat, and Two boat perations

Processing Parameters: Streamer Pre Processing Input SEGD Data Merge navigation with seismic trace headers Apply start data (SOD) correction Resample from 2ms to 4ms Apply differential NMO, 2 to 1 trace sum, output group in terval 25m Output navigation merge shot ordered tapes (SEGY)

Noise attenuation Velocity analysis Output 3D bin sorted tapes (SEGY) 12.5m CDP Interval

- 2 by 72 fold Spherical divergence and gain correction

Deconvolution

Processing Parameters: Migration and Post Stack Processing Grid data to 25m by 40m bin (all data input into migration) Kirchhoff pre

- stack curved ray migration velocity analysis Output migration velocities Kirchhoff pre

- stack curved ray migration (25m by 40m) Output 3D bin sorted tapes (SEGY)

- 60 fold for streamer/58 fold for OBC Velocity analysis Automatic velocity picking update at every CDP location Output ETA velocity correction trace volumes

- SEGY (25m by 40m by 48msec and 12.5 by 20m by

4msec Radon demultiple Output migrated gathers with NMO/Radon (SEGY)

- 60 fold

Mute and stack Output raw migration

- 25m by 40m SEGY Output for corridor stacks

- 12.5m X 20m (SEGY)

### Walter Oil & Gas Corporation Gardline Report 7071
Well Clearance Letter

- Ewing Bank, Block 833

- Proposed A & B Well Locations

29 

### Apply filter and wrap scale Output processed migration tape

- 12.5m X 20m (SEGY)

Data exhibits a good frequency response across the u pper second below seabed, with an effective frequency range of 10

- 70Hz ( Figure 9 ). The data exhibits a dominant frequency in the upper one second of approximately 53Hz, resulting in a mean vertical resolvability of typically 25ft and a layer

detectabili ty of 5ft. The data is considered good to excellent quality.

With respect to NTL 2008 G04:

n. The 3

- D data provides a n image of sufficient resolution of the shallow section to allow a clear analysis of the shallow conditions.

o. The data are loaded to a workst ation at no less than 16

- bit (preferably 32

- bit) data resolution

and are un

- scaled.

p. There is no form of trace and/or sample decimation of the original processed volume.

q. The original processed sample interval and bin size are maintained throughout the area.

r. Half of the percentage power spectrum analyses curve at the proposed well location possesses a frequency content of 50 Hz or higher across the first second of section below the seafloor.

s. Seafloor reflection is free of gaps and is defined by a wavelet of s table shape and phase to

allow auto

- tracking of the seafloor event with minimum user intervention and guidance.

t. Acquisition arte facts such as cross

- line statics and/or amplitude striping, though possibly identifiable in shallow section, do not detract from the overall interpretation of the picked event when mapped in time or amplitude. Similarly, time slices or windowed attribute extractions are devoid of, o r show minimal, acquisition arte facts to the detriment of their interpretation.

u. Merge points between datasets of differing origin or vintage that cross the area are marked by minimal, preferably no, time shifts or amplitude changes across the join that might otherwise be to the detriment of the interpretation.

v. Processed bin sizes are less than 40 meters in both the inline and crossline dimension.

w. The processed output sample interval is 4 milliseconds or less.

x. Attention to definition of an accurate velocity model in the shallow section in processing allows optimum structural and stratigraphic resolution to have been achieved in the 3

- D migrated

volume. The shallow section shows no indication of under or over migration arte facts.

y. Multiple energy is unidentifiable or at a level that does not interfere with the analysis of the

shallow section.

z. The proposed ac tivities are not in an area of high archaeological potential (see NTL No. 2005

- G07).

### Walter Oil & Gas Corporation Gardline Report 7071
Well Clearance Letter

- Ewing Bank, Block 833

- Proposed A & B Well Locations

30 

## 1. LOCATION COORDINATES

**1.1 Proposed EW833** 

**- B**  **Well Location**

Proposed EW833

- B Location (Surface)

Location Coordinates

NAD 27 Datum

- Clarke 1866 Ellipsoid UTM Zone 15N

- CM 93° West

Latitude 28° 0 7' 48.51 ” North Easting 2,607,660 ft E
Longitude 89° 59’ 55.88 ” West Northing 10,220,000 ft N
FEL of Ewing Bank 833 5,940 ft Inline 4021 FSL of Ewing Bank 833 3,200 ft Crossline 6774
Water Depth:

- 1,20 0 ft Slope: 1.9° E NE

Nearest Shoreline 66 miles @ 349 °
Port of Operation Fourchon 68 miles @ 350  ̊

Nearest Manned Platform ENI A

- Morpeth 7 miles @ 192 °

### Walter Oil & Gas Corporation Gardline Report 7071
Well Clearance Letter

- Ewing Bank, Block 833

- Proposed A & B Well Locations

31 

## 2. VELOCITY DATA

**2.1 Velocity Data** 

Time

- to

- depth conversion for the water column was derived using the Advo cate an d Hood (1993) polynomial:

Water Depth (ft)=

0.1105

– 5066.9193X + 468.6693X 2



### – 554.7107X 3 

### + 340.7019X 4



### – 116.991X 5 

### + 20.728X 6



### – 1.4658X 7



### Where X = o ne way time to seabed (in seconds)

Sub

- s eabed time

- to

- depth conversion was performed using a second or der polynomial
derived from checkshot data at well EW790

- 1 from library records:

D epth below seabed (ft) = 176.51 X 2 

### +2628.7 X

Where X = two way time in seconds below seabed

.

### Walter Oil & Gas Corporation Gardline Report 7071
Well Clearance Letter

- Ewing Bank, Block 833

- Proposed A & B Well Locations

32 

## 3. SEABED CONDITIONS

**3.1 Bathymetry** 

Seabed depth at the proposed EW833

- B locati on is

- 1, 200 ft below sea

- surface ( Figure 1 )

. The seafloor deepens to the ENE at 1

. 9 °.

**3.2 Seafloor Morphology and Man Made Features** 

The proposed EW833

- B well location is located in the southeast quadrant of B lock EW833.

T he seabed is slightly rugose at t he proposed well location ( Figure 2 ) . The seabed within 2,000ft appears to be slightly rugose with minor fa ults to the south and southeast. T he nearest
fault is ~1,200ft from the prop osed well location to the south ; none of these faults are expected

to a ffect drilling of the proposed well at the seabed. There is no evidence to support any catastrophic soil failure in the vicinity of the proposed well location, and the seabed is predicted

to be sta ble. Seabed sediments are clay

- prone. Shallow sediments a ppear conducive for jetting of seabed casing with no hard layers predicted.

There are no anomalous seabed amplitudes indicative of hydrocarbon macroseep observed within a 2,000ft radius of the proposed location ( Figure 3 )

.

There are two existing and one proposed pipeline plus two umbilica ls oriented approximately

north to south

, located to the east of the proposed wellsite as tabulated below:

**Pipeline Installations**

Operator Segment Area Block

- Origin/Termination Outside Diameter (in) Product Status

Wal ter Oil &
Gas 14154 GI115 / MC837 1 inch Umbilical (Hydraulic) Out of Service

Walter Oil &
Gas 13133 EW878 / GI115 4 inch Bulk Gas Combined

Walter Oil &
Gas 1 3134 EW878 / GI115 4 inch Bulk Oil Combined

Walter Oil &
Gas 17411 GI115 / EW878 2.5 inch Umbil ical (Elec / Hyd) Out of Service

Walter Oil &
Gas 18613 EW878 / GI115 4 inch Bulk Oil Proposed



### The closest approach to the proposed site is 3,467ft ENE of the proposed well location.

### Walter Oil & Gas Corporation Gardline Report 7071
Well Clearance Letter

- Ewing Bank, Block 833

- Proposed A & B Well Locations

33 

## 4. SUBSEABED GEOLOGY

**4.1 Geology and Lithology** 

The sub

- seabed geolog y has been divided into five units separated by five horizons: Units A, B, C, D and E, and Horizons H10, H20, H30 H40 and H50 ( Figures 4 through 7 ).

**4.2 Unit A** 

Lithology in this upper unit is interpreted as well

- layered clay

- prone and silt sediments.
Gener ally, seabed sediments and shallow soils are expected to be good for jetting of the seabed casing with no hard

- grounds predicted.

No shallow gas hazards or shallow water flow risks are predicted in Unit A.

Horiz on H10 marks the base of Unit A at

- 1, 558 ft below sea

- surface (3 58 ft below seabed).

**4.3 Unit B** 

This unit is interpreted to be a well

- layered

, clay

- prone sequence with isolated coarser

- grained

interbeds and lenses in the upper interval from

- 1, 558 ft to

- 2, 070 ft below sea surface (3 58 ft to

870 ft belo w seabed). A sand interbed interpreted to be bet ween 15ft and 40ft thick is located

at

- 2,032ft below sea surface (832ft below seabed). Minor drilling fluid circulation and wellbore instability may be experienced at the interbed. This sand is possibly c onnected to an amplitude anomaly considered a slight risk of gas located ~40ft southeast of the wellbore.
Therefore

, a Slight Risk of Gas is assigned to this sand interbed.

The lower interval of Unit B is interpreted to consist of mass transport clays an d silts with possible fine sands. Minor fine sands with in this interval could be the source of minor shallow water flow. Low volume shallow water flow has been recorded in this depth range to the

southeast

, in Ewing Bank

, Blocks 1005 & 1006

. Therefore

, a Slight Shallow Water Flow

Risk is assigned to Unit B throughout the lower interval from

- 2,070ft to

- 2,313ft below sea surface (870ft to 1,113ft below seabed) at the proposed well location.

The base of this unit is marked by an erosional surface and a p redicted lithology change. Horizon H20 represents this interface at

- 2, 313 ft below sea surface (1, 113 ft below seabed).

**4.4 Unit C** 

Lithology within this unit is expected to comprise of clays and silts from

- 2

, 313ft to

- 2

, 671ft below sea surface (1

, 113ft to 1

, 471ft seabed)

### Walter Oil & Gas Corporation Gardline Report 7071
Well Clearance Letter

- Ewing Bank, Block 833

- Proposed A & B Well Locations

34 

### A vertical well will intersect a normal fault within Unit C at

- 2

, 536 ft below sea surface (1, 336 ft below seabed). Minor drilling fluid circulation problems may occur if pressures over hydrostatic are exerted by the drilling fluid column.

No shallow gas hazards or shallow water flow risks are predicted in Unit C at the proposed well

location

. Occasional minor anomalies occur within the 2000ft radius, but none are connected to the proposed well location.

The base of this unit is marked b y Horizon H30, which re presents a boundary between low

amplitude reflectors at the base of Unit C , and higher

- amplitude reflectors at the top of underlying Unit D. Horizon H30 is located at

- 2

, 671 ft below sea surface (1, 471 ft below seabed).

**4.5 Unit D** 

Thi s unit is interpreted to comprise of clay and silt sediments with frequent sandy interbeds that could potentially be prone to shallow water flow from

- 2,671ft to

- 3,495ft below sea surface (1,471ft to 2,295ft below seabed).

A vertical well will intersect a normal fault within Unit D at

- 3, 147 ft below sea surface ( 1

, 947 ft below seabed). Minor drilling fluid circulation problems may occur if pressures over hydrostatic are exerted by the drilling fluid column.

This unit was deposited rapidly with inadequate de

- watering time and is encapsulated by impermeable clays and silts ; therefore

, it is considered a Moderate Shallow Water Flow

Risk

. F aulting at the location of the well has offset much of the connectivity that these sands once possessed, and there are n o high amplitudes present; however

, there is still the possibility that small pockets of trapped gas may be present through out this unit . As such, Unit D is also assigned a Sight Risk of Gas

.

The base of this unit is marked by an erosional surface a nd a predicted lithology change at
Horizon H40 at

- 3, 495 f t below sea surface ( 2,295ft below seabed).

**4.6 Unit E** 

This u nit is interpreted to be composed of clay and silt sediments with occasional coarser

grained interbeds and lenses. The possibility of minor sa ndy interbeds and lenses leads to

a Slight Shallow Water Flow Risk throughout Unit E from

- 3,495ft to

- 4,317ft below sea surface (2,295ft to 3,117ft below seabed)

.

Hori zon H50 marks the base of Unit D . At the well location Horizon H50 is also the locatio n of a normal fault, and the base of this shallow hazards study. Horizon H50 and the fault both

### Walter Oil & Gas Corporation Gardline Report 7071
Well Clearance Letter

- Ewing Bank, Block 833

- Proposed A & B Well Locations

35 

### occur at

- 4,31 7 ft below sea surface ( 3

, 117 ft below seabed). Minor drilling fluid circulation problems may occur if pressures over hydrostatic are exerted by t he drilling fluid column.

**4.7 Shallow Gas Assessment** 

A 15ft to 40ft thick sand interbed in Unit B at

- 2,032ft below sea surface (832ft below seabed) is assigned a Slight Risk of Gas

.

Sandy interbeds throughout Unit D, between

- 2

, 671 ft and

- 3, 495 ft below s ea surface (1, 471 ft
to 2, 295 ft below seabed), are considered a Slight Gas Risk

.

**4.8 Shallow Water Flow Assessment** 

A Slight Shallow Water Flow Risk is predicted in the lower interval of Unit B between

- 2, 070 ft

and

- 2, 313 ft below sea surface ( 870 ft to 1, 113 f t below seabed).

A Moderate Shallow Water Flow Risk is assigned to Unit D between

- 2

, 671 ft and

- 3, 495 ft below sea surface (1, 471 ft to 2, 295 ft below seabed).

A Slight Shallow Water Flow Risk is assigned to Unit E at the proposed well location from

- 3,495f t to

- 4,317ft below sea surface (2,295ft to 3,117ft below seabed)

.

### Walter Oil & Gas Corporation Gardline Report 7071
Well Clearance Letter

- Ewing Bank, Block 833

- Proposed A & B Well Locations

36 

## 5. CONCLUSIONS AND RECOMMENDATIONS

**•** Seabed

No significant problems are anticipated at seabed.

**•** Unit A

No hazards or problems predicted. Shallow soils are expected to be conducive to jetting of seabed casing with no hardgrounds predicted.

**•** Unit B

A sand interbed between 15ft and 40ft thick is predicted to occur at

- 2,032ft below sea surface (832ft below seabed). Minor drilling fluid circulation and wellbore stability problems are possible

th rough this interbed. This sand is also assigned a Slight Risk of Gas

, Drilling C aution is advised through this sand.

Slight Shallow Water Flow Risk is predicted in the lower interval of Unit B between

- 2,070ft

and

- 2,313ft below sea surface (870ft to 1,1 13 ft below seabed). Drilling Caution is advised. Appropriate drilling methodology is recommended to deal with a minor non

- persistent shallow water flow event throughout this interval.

**•** Unit C

Minor drilling fluid circulation problems are possible if pres sures over hydrostatic are exerted by the drilling fluid column at the level of a normal fault at

- 2

, 536 ft below sea surface (1, 336 ft below seabed). Casing seats should avoid this level as formation integrity could be compromised.

**•** Unit D

Minor drilling f luid circulation problems are possible if pressures over hydrostatic are exerted by the drilling fluid column at the level of a normal fault at

- 3, 147 ft below sea surface ( 1

, 947 ft below seabed). Casing seats should avoid this level as formation integrity could be compromised.

A Slight Risk of Gas is predicted throughout Unit D at the proposed well location between

- 2

, 671 ft and

- 3, 495 ft below sea surface (1, 471 ft to 2, 295 ft below seabed). Drilling Caution is advised through Unit D.

A Moderate Shallow Water Flow Risk is assigned to Unit D between

- 2

, 671 ft and

- 3, 495 ft below sea surface (1, 471 ft to 2, 295 ft below seabed). Drilling Caution is advised. Appropriate drilling methodology is recommended to deal with a minor non

- persistent shallow water flow

event throughout this interval.

### Walter Oil & Gas Corporation Gardline Report 7071
Well Clearance Letter

- Ewing Bank, Block 833

- Proposed A & B Well Locations

37 

### Unit E

A Slight Shallow Water Flow Risk is assigned to Unit E at the proposed well location between

- 3, 495 ft and

- 4,3 17 ft below sea surface (2, 295 ft to 3

, 117 ft below seabed). Drilling Caution is advised. Appropriate drilling met hodology is recommended to deal with a minor non

- persistent shallow water flow event through this interval.

Minor drilling fluid circulation problems are possible if pressures over hydrostatic are exerted by the drilling fluid column at the level of a nor mal fault at

- 4,3 17 ft below sea surface ( 3

, 117 ft below seabed) which is also the location of Horizon H50 . Casing seats should avoid this level as formation integrity could be compromised.

### Walter Oil & Gas Corporation Gardline Report 7071
Well Clearance Letter

- Ewing Bank, Block 833

- Proposed A & B Well Locations

38 

### We appreciate the opportunity to work with you on this project and look forward to continuing as your geohazards consultants. Please contact us if you have any questions or if we can be of further

assistance.

Sincerely,

Andrew Haigh Matilde DeLeon Geophysical Manager Quality Assurance

Copies Submitted: 6 copies to Mr. Pete Hetherington at Walter Oil & Gas Company

Attachments:

Proposed EW833

- B Well Location

Seabed Depth Extract

Seabed Morphology Extract

Seabed Amplitude Extract

Geohazard Summary Extract

Inline Data Example

Crossline Data Example

Top Hole Prognosis

ROV Plat

Power Spectrum

Bathymetry Plat

Public Information Plat

Proprietary Information Plat

Vicinity Map

10

- Mile Radius Plat®33 3

3 ®33 3

3

P r o p o s e d E W 8 3 3

- B W e l l89°59'30"W90°0'0"W90°0'30"W

2 8 ° 8 ' 0 " N

2 8 ° 7 ' 3 0 " N2,604,0002,606,0002,608,0002,610,000 1 0

, 2 1 8

, 0 0 0 1 0

, 2 2 0

, 0 0 0 1 0

, 2 2 2

, 0 0 0



### C h a r t S c a l e 1 ' ' = 1

, 0 0 0 f t 

# S e a b e d D e p t h E x t r a c t

F i g u r e 1 ( E W 8 3 3

- B ) 

# ±

P r o p o s e d E W 8 3 3

- A W e l l L o c a t i o n 2

, 6 1 0

, 5 3 1 f t E / 1 0

, 2 2 1

, 1 4 0 f t N ®33 3

3

0 8 0 0 1

, 6 0 0 4 0 0 F e e t

0 2 5 0 5 0 0 1 2 5 M e t e r s 2

, 0

0

0 f t R

a d

i u s

D e p t h i n f e e t b e l o w s e a s u r f a c e
t o s e a b e d

, c o n t o u r e d a t 2 5 f t i n t e r v a l s

. - 1 2 0 0

S e a b e d D e p t h ( F e e t ) P r o p o s e d E W 8 3 3

- B W e l l L o c a t i o n 2

, 6 0 7

, 6 6 0 f t E / 1 0

, 2 2 0

, 0 0 0 f t N

®33 3

3

B l o c k L i n e 

## E w i n g B a n k B l o c k 8 3 3 ( O C S

- G 3 3 7 0 6 ) W

a l t e r O & G 1 " U m b i l i c a l ( 1 7 3 1 0 )

W

a l t e r O & G 2 " L i f t ( 1 7 3 1 3 ) W

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P r o p o s e d W a l t e r 4 " B U L K O I L ( 1 8 6 1 3 )

P i p e l i n e s®33 3

3 ®33 3

3

P r o p o s e d E W 8 3 3

- B W e l l89°59'30"W90°0'0"W90°0'30"W

2 8 ° 8 ' 0 " N

2 8 ° 7 ' 3 0 " N2,604,0002,606,0002,608,0002,610,000 1 0

, 2 1 8

, 0 0 0 1 0

, 2 2 0

, 0 0 0 1 0

, 2 2 2

, 0 0 0



### C h a r t S c a l e 1 ' ' = 1

, 0 0 0 f t 

# S e a b e d M o r p h o l g y E x t r a c t

F i g u r e 2 ( E W 8 3 3

- B ) 

# ±

0 8 0 0 1

, 6 0 0 4 0 0 F e e t

0 2 5 0 5 0 0 1 2 5 M e t e r s 2

, 0

0

0 f t R

a d

i u s 

## E w i n g B a n k B l o c k 8 3 3 ( O C S

- G 3 3 7 0 6 )

P o s s i b l e f l u i d m a c r o s e e p

a t s e a b e d f a v o r a b l e f o r
p o t e n t i a l d e v e l o p m e n t o f

s e n s i t i v e s e s s i l e b e n t h i c

c o m m u n i t i e s S e a b e d f a u l t s , t i c k s d e n o t e d o w n t h r o w s i d e

P r o p o s e d E W 8 3 3

- A W e l l L o c a t i o n 2

, 6 1 0

, 5 3 1 f t E / 1 0

, 2 2 1

, 1 4 0 f t N ®33 3

3 P r o p o s e d E W 8 3 3

- B W e l l L o c a t i o n 2

, 6 0 7

, 6 6 0 f t E / 1 0

, 2 2 0

, 0 0 0 f t N

®33 3

3

B l o c k L i n e

2 5 0 f t e x c l u s i o n z o n e

a r o u n d s e n s i t i v e s e s s i l e b e n t h i c c o m m u n i t i e s W

a l t e r O & G 1 " U m b i l i c a l ( 1 7 3 1 0 )

W

a l t e r O & G 2 " L i f t ( 1 7 3 1 3 ) W

a l t e r O & G 2 " U m b i l i c a l ( 1 7 4 1 1 )

P r o p o s e d W a l t e r 4 " B U L K O I L ( 1 8 6 1 3 )

P i p e l i n e s®33 3

3 ®33 3

3

P r o p o s e d E W 8 3 3

- B W e l l89°59'30"W90°0'0"W90°0'30"W

2 8 ° 8 ' 0 " N

2 8 ° 7 ' 3 0 " N2,604,0002,606,0002,608,0002,610,000 1 0

, 2 1 8

, 0 0 0 1 0

, 2 2 0

, 0 0 0 1 0

, 2 2 2

, 0 0 0



### C h a r t S c a l e 1 ' ' = 1

, 0 0 0 f t 

# S e a b e d A m p l i t u d e E x t r a c t

F i g u r e 3 ( E W 8 3 3

- B ) 

# ±

0 8 0 0 1

, 6 0 0 4 0 0 F e e t

0 2 5 0 5 0 0 1 2 5 M e t e r s 2

, 0

0

0 f t R

a d

i u s

R e l a t i v e S e a b e d A m p l i t u d e 

## E w i n g B a n k B l o c k 8 3 3 ( O C S

- G 3 3 7 0 6 )

P r o p o s e d E W 8 3 3

- A W e l l L o c a t i o n 2

, 6 1 0

, 5 3 1 f t E / 1 0

, 2 2 1

, 1 4 0 f t N ®33 3

3 P r o p o s e d E W 8 3 3

- B W e l l L o c a t i o n 2

, 6 0 7

, 6 6 0 f t E / 1 0

, 2 2 0

, 0 0 0 f t N

®33 3

3

B l o c k L i n e W a l t e r O & G 1 " U m b i l i c a l ( 1 7 3 1 0 )

W

a l t e r O & G 2 " L i f t ( 1 7 3 1 3 ) W

a l t e r O & G 2 " U m b i l i c a l ( 1 7 4 1 1 )

P r o p o s e d W a l t e r 4 " B U L K O I L ( 1 8 6 1 3 )

P i p e l i n e s®33 3

3 ®33 3

3

P r o p o s e d E W 8 3 3

- B W e l l89°59'30"W90°0'0"W90°0'30"W

2 8 ° 8 ' 0 " N

2 8 ° 7 ' 3 0 " N2,604,0002,606,0002,608,0002,610,000 1 0

, 2 1 8

, 0 0 0 1 0

, 2 2 0

, 0 0 0 1 0

, 2 2 2

, 0 0 0



### C h a r t S c a l e 1 ' ' = 1

, 0 0 0 f t 

# G e o h a z a r d S u m m a r y E x t r a c t

F i g u r e 4 ( E W 8 3 3

- B ) 

# ±

0 8 0 0 1

, 6 0 0 4 0 0 F e e t

0 2 5 0 5 0 0 1 2 5 M e t e r s 2

, 0

0

0 f t R

a d

i u s 

## E w i n g B a n k B l o c k 8 3 3 ( O C S

- G 3 3 7 0 6 )

P o s s i b l e f l u i d m a c r o s e e p

a t s e a b e d f a v o r a b l e f o r
p o t e n t i a l d e v e l o p m e n t o f

s e n s i t i v e s e s s i l e b e n t h i c

c o m m u n i t i e s S e a b e d f a u l t s , t i c k s d e n o t e d o w n t h r o w s i d e

2 5 0 f t e x c l u s i o n z o n e a r o u n d

s e n s i t i v e s e s s i l e b e n t h i c

c o m m u n i t i e s

S l i g h t R i s k o f G a s

w i t h i n U n i t B M o d e r a t e R i s k o f G a s

w i t h i n U n i t C

M o d e r a t e t o H i g h R i s k

o f G a s w i t h i n U n i t D

H i g h R i s k o f G a s

w i t h i n U n i t E P r o p o s e d E W 8 3 3

- A W e l l L o c a t i o n 2

, 6 1 0

, 5 3 1 f t E / 1 0

, 2 2 1

, 1 4 0 f t N ®33 3

3 P r o p o s e d E W 8 3 3

- B W e l l L o c a t i o n 2

, 6 0 7

, 6 6 0 f t E / 1 0

, 2 2 0

, 0 0 0 f t N

®33 3

3

B l o c k L i n e

S l i g h t t o l o c a l l y M o d e r a t e R i s k o f G a s w i t h i n U n i t A P i p e l i n e s W a l t e r O & G 1 " U m b i l i c a l ( 1 7 3 1 0 )

W

a l t e r O & G 2 " L i f t ( 1 7 3 1 3 ) W

a l t e r O & G 2 " U m b i l i c a l ( 1 7 4 1 1 )

P r o p o s e d W a l t e r 4 " B U L K O I L ( 1 8 6 1 3 )

## Walter Oil & Gas Corporation Page D-1 Initial Exploration Plan May, 2013 Ewing Bank Block 833 (OCS-G 33706) 

# APPENDIX D HYDROGEN SULFID E INFORMATION

(A) CONCENTRATION Walter does not anticipate encountering any H 2 

## S during the proposed operations.

(B) CLASSIFICATION In accordance with Title 30 CFR 250.490(c), Walter requests that Ewing Bank Block 833 be classified by the BOEM as H 2 

## S absent.

## Walter Oil & Gas Corporation Page E-1 Initial Exploration Plan May, 2013 Ewing Bank Block 833 (OCS-G 33706) APPENDIX E BIOLOGICAL, PHYSICAL AND SO CIOECONOMIC INFORMATION

(A) DEEPWATER BENTHIC COMMUNITIES Included as Attachment E-1 are maps prepared using 3-D seis mic data depicting seafloor and shallow geological features and areas, and the surface locations of the proposed wells with a radius circle of 2,000 feet around each well. Al so included on the map is the maximum anchor radius for each well, plus the additional 1,000 foot buffer area beyond the proposed maximum anchor radius.

ANALYSIS Features or sites that could support high density sensitive sessile benthic communities are not located within 2,000 feet of any mud and cuttings discharge locations.

Features or sites that could support high density sensitive sessile benthic communities are not located within 250 feet of any proposed anchors and associated equipment.

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

(C) TOPOGRAPHIC FEATURES STATEMENT (SHUNTING) All activities proposed under this EP will be conducted outside all Topographic Feature Protective Zones, therefore s hunting of drill cuttings and dr illing fluids is not required

(D) LIVE BOTTOMS (PINNACLE TREND) MAP Ewing Bank Block 833 is not located within 61 me ters (200 feet) of any pinnacle trend feature; therefore a separate bathym etric map is not required.

(E) LIVE BOTTOMS (LOW RELIEF) STIPULATION Ewing Bank Block 833 is not located within 100 feet of any pinnacl e trend feature with vertical relief equal to or greater than 8 feet; therefore, live bottom (low relief) maps are not required.

(F) POTENTIALLY SENSIT IVE BIOLOGICAL FEATURES Ewing Bank Block 833 is not located within 30 meters (100 feet) of potentially sensitive biological features; therefor e, biologically sensitive area maps are not required.

(G) REMOTELY OPERATED VEHICLE (ROV) SURVEYS BOEM has determined that there is enough ROV data gathered in Grid Area 12, therefore, we will not be conducting any ROV surveys either pre-spudding or post-drilling operations.

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

## Walter Oil & Gas Corporation Page E-2 Initial Exploration Plan May, 2013 Ewing Bank Block 833 (OCS-G 33706) In accordance with 30 CFR 250, Subpart B, effec tive May 14, 2007, and further outlined in NTL 2008-G04, lessees/operators are required to addre ss site-specific information on the presence of federally listed threatened or endangered speci es and critical habitat designated under the ESA and marine mammals protected under the Marine Mammal Protection Act (MMPA) in the area of proposes activitie s under this plan.

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

Species Scientific Name Status Potential Presence

Critical Habitat Designated in the Gulf of Mexico Lease Area Coastal
Sea Turtles Loggerhead Turtle Carettsa Caretta T x x None Green Turtle Chelonia mydas T,E x x None
Leatherback Turtle Dermochelys corlacea E x x None Hawksbill Turtle Eretmochelys imbricata E x x None Kemp’s ridley turtle Lepidochelys kempli E x x None



## (I) ARCHAEOLOGICAL REPORT An Archaeological Survey Report has been prepared in accordance with NTL 2005-G07 "Archaeological Surveys and Reports" and is being submitted under separate cover.

(J) AIR AND WATER QUALITY INFORMATION Air and water quality informati on is not required by BOEM to be included in this plan.

(K) SOCIOECONOMIC INFORMATION



# Socioeconomic information is not required by BOEM to be included in this plan.

# 6 6

EWING BANK BLOCK 834 (OCS-G27982) Ewing Bank Block 833 (OCS-G33706)

W a l t e r O

&

G

2

" U M

B ( 1 7 4 1 1 ) S

o u t h

w

e s t P

a s s S

a f e t y F

a i r w

a y

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&

G

2

" L

i f t (

1 7 3

1 3 ) W

a l t e r 1 " U

M

B

(

1 4

1 5

4 ) 

### Walter 4" BULK GAS (13133)

P r o p

o s e d W

a l t e r 4

" B U L K O I L ( 1 8 6 1 3 ) E n i P e t U S

1 2

" a k

( 1 1 4 5 8 ) W

i l l i a m

s E N 8

" G a s ( 1 1 4 5 7 ) Proposed EW833-A Well

Proposed EW833-B Well EW834-2

EW834-12,600,0002,605,0002,610,0002,615,0002,620,000 

### 10,215,000 10,220,000 10,225,000 10,230,00089°57'0"W89°58'0"W89°59'0"W90°0'0"W90°1'0"W90°2'0"W



### 28°9'0"N

28°8'0"N

28°7'0"N

Lund Lloyd Ridge Green Canyon Atwater Valley Garden Banks De Soto Canyon

Henderson Destin Dome

Mississippi Canyon

Walker Ridge East Breaks

Keathley Canyon L o u i s i a n a T e x a s F l o r i d a

Study Area LEGEND

Chart scale 1" = 1,000'

3D GEOHAZARD ASSESSMENT GULF OF MEXICO

EWING BANK

BLOCK 833 PROPOSED EW833-A LOCATION GEODETIC INFORMATION

Data Parameters

Datum Name Ellipsoid Semi-major Axis Reciprocal Flattening NAD27
NAD27
6378206.40
294.98 Projection Method False Northing False Easting Latitude of Origin Longitude of Origin
Standard Parallel
Scale Factor Transverse Mercator
0.00
1640416.67
0 North
-93.0
15 North
-0.9996

SEABED DEPTH - ANCHOR RADIUS (PROPOSED EW833-A) CHART 13 0 1,000 2,000 3,000 500 Feet

0 300 600 900 150 Meters Proposed EW 833- A well location 2,610,531ft E/10,221,140ft N ®33 3

3

Seabed Depth (Feet)

REV DATE REMARKS AUTHOR DRAWN CHECKED

SURVEY DATE N/A REPORT REF 7071 CHART NO 7071.13 0 FEBRUARY 13, 2013 FINAL JR KB ARH Not to scale Block boundaries 

# ±

Prepared by: Gardline Surveys, Inc. 1500 Bingle Road, Houston, Texas, 77055. Telephone: 713.481.4630 Notes

Map Projection Parameters Depth in feet below sea surface to seabed, contoured at 25ft intervals. -1310



# 6 Existing Well

Pipelines

Pipelines

Pipelines

Study area boundary Proposed EW 833- B well location 2,607,660ft E/10,220,000ft N ®33 3

3

Safety fairways

2 0

0

0

f t R a d i u s

4

, 9

0

0

f t M a x

i m

u

m A n

c h

o r R a d i u s

1

, 0

0

0

f t B u

f f e r Z o n e Buffer zone

# 6 6

EWING BANK BLOCK 834 (OCS-G27982)

2

,

0

0 0 f t R

a d i u s 

# Ewing Bank Block 833 (OCS-G33706)

W a l t e r O

&

G

2

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B ( 1 7 4 1 1 ) S

o u t h

w

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a s s S

a f e t y F

a i r w

a y

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&

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2

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i f t (

1 7 3

1 3 ) W

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B

(

1 4

1 5

4 ) 

### Walter 4" BULK GAS (13133)

P r o p

o s e d W

a l t e r 4

" B U L K O I L ( 1 8 6 1 3 ) E n i P e t U S

1 2

" a k

( 1 1 4 5 8 ) W

i l l i a m

s E N 8

" G a s ( 1 1 4 5 7 ) Proposed EW833-A Well

Proposed EW833-B Well EW834-2

EW834-12,600,0002,605,0002,610,0002,615,0002,620,000 

### 10,215,000 10,220,000 10,225,000 10,230,00089°57'0"W89°58'0"W89°59'0"W90°0'0"W90°1'0"W90°2'0"W



### 28°9'0"N

28°8'0"N

28°7'0"N

Lund Lloyd Ridge Green Canyon Atwater Valley Garden Banks De Soto Canyon

Henderson Destin Dome

Mississippi Canyon

Walker Ridge East Breaks

Keathley Canyon L o u i s i a n a T e x a s F l o r i d a

Study Area LEGEND

Chart scale 1" = 1,000'

3D GEOHAZARD ASSESSMENT GULF OF MEXICO

EWING BANK

BLOCK 833 PROPOSED EW833-A LOCATION GEODETIC INFORMATION

Data Parameters

Datum Name Ellipsoid Semi-major Axis Reciprocal Flattening NAD27
NAD27
6378206.40
294.98 Projection Method False Northing False Easting Latitude of Origin Longitude of Origin
Standard Parallel
Scale Factor Transverse Mercator
0.00
1640416.67
0 North
-93.0
15 North
-0.9996

SEABED MORPHOLOGY - ANCHOR RADIUS (PROPOSED EW833-A) CHART 14 0 1,000 2,000 3,000 500 Feet

0 300 600 900 150 Meters

REV DATE REMARKS AUTHOR DRAWN CHECKED

SURVEY DATE N/A REPORT REF 7071 CHART NO 7071.14 0 FEBRUARY 13, 2013 FINAL JR KB ARH Not to scale 

# ±

Prepared by: Gardline Surveys, Inc. 1500 Bingle Road, Houston, Texas, 77055. Telephone: 713.481.4630 Notes

Map Projection Parameters Possible fluid macro seep at seabed favorable for potential development
of sensitive sessile benthic communities Seabed faults, ticks denote down throw side



### Illuminated from the northwest at 45° above horizontal 250ft exclusion zone around sensitive sessile benthic communities

4

, 9

0

0

f t M a x

i m

u

m A n

c h

o r R a d i u s

1

, 0

0

0

f t B u

f f e r Z o n e Proposed EW 833- A well location 2,610,531ft E/10,221,140ft N ®33 3

3

Block boundaries 

# 6 Existing Well

Pipelines

Pipelines

Pipelines

Study area boundary Proposed EW 833- B well location 2,607,660ft E/10,220,000ft N ®33 3

3

Safety fairways

Buffer zone

# 6 6

EWING BANK BLOCK 834 (OCS-G27982)

2

,

0

0 0 f t R

a d i u s 

# Ewing Bank Block 833 (OCS-G33706)

W a l t e r O

&

G

2

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B ( 1 7 4 1 1 ) S

o u t h

w

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a s s S

a f e t y F

a i r w

a y

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O

&

G

2

" L

i f t (

1 7 3

1 3 ) W

a l t e r 1 " U

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(

1 4

1 5

4 ) 

### Walter 4" BULK GAS (13133)

P r o p

o s e d W

a l t e r 4

" B U L K O I L ( 1 8 6 1 3 ) E n i P e t U S

1 2

" a k

( 1 1 4 5 8 ) W

i l l i a m

s E N 8

" G a s ( 1 1 4 5 7 ) Proposed EW833-A Well

Proposed EW833-B Well EW834-2

EW834-12,600,0002,605,0002,610,0002,615,0002,620,000 

### 10,215,000 10,220,000 10,225,000 10,230,00089°57'0"W89°58'0"W89°59'0"W90°0'0"W90°1'0"W90°2'0"W



### 28°9'0"N

28°8'0"N

28°7'0"N

Lund Lloyd Ridge Green Canyon Atwater Valley Garden Banks De Soto Canyon

Henderson Destin Dome

Mississippi Canyon

Walker Ridge East Breaks

Keathley Canyon L o u i s i a n a T e x a s F l o r i d a

Study Area 

### LEGEND

Chart scale 1" = 1,000'

3D GEOHAZARD ASSESSMENT GULF OF MEXICO

EWING BANK

BLOCK 833 PROPOSED EW833-A LOCATION GEODETIC INFORMATION

Data Parameters

Datum Name Ellipsoid Semi-major Axis Reciprocal Flattening NAD27
NAD27
6378206.40
294.98 Projection Method False Northing False Easting Latitude of Origin Longitude of Origin
Standard Parallel
Scale Factor Transverse Mercator
0.00
1640416.67
0 North
-93.0
15 North
-0.9996

SEABED AMPLITUDE - ANCHOR RADIUS (PROPOSED EW833-A) CHART 15 0 1,000 2,000 3,000 500 Feet

0 300 600 900 150 Meters Relative Seabed Amplitude

REV DATE REMARKS AUTHOR DRAWN CHECKED

SURVEY DATE N/A REPORT REF 7071 CHART NO 7071.15 0 FEBRUARY 13, 2013 FINAL JR KB ARH Not to scale 

# ±

Prepared by: Gardline Surveys, Inc. 1500 Bingle Road, Houston, Texas, 77055. Telephone: 713.481.4630 Notes

Map Projection Parameters 

### Seabed amplitude derived from positive value of seabed pick Proposed EW 833- A well location 2,610,531ft E/10,221,140ft N ®33 3

3

Block boundaries 

# 6 Existing Well

Pipelines

Pipelines

Pipelines

Study area boundary Proposed EW 833- B well location 2,607,660ft E/10,220,000ft N ®33 3

3

Safety fairways

Buffer zone

4

, 9

0

0

f t M a x

i m

u

m A n

c h

o r R a d i u s

1

, 0

0

0

f t B u

f f e r Z o n e

# 6 6

EWING BANK BLOCK 834 (OCS-G27982) Ewing Bank Block 833 (OCS-G33706)

W a l t e r O

&

G

2

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B ( 1 7 4 1 1 ) S

o u t h

w

e s t P

a s s S

a f e t y F

a i r w

a y

W a l t e r

O

&

G

2

" L

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1 7 3

1 3 ) W

a l t e r 1 " U

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(

1 4

1 5

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### Walter 4" BULK GAS (13133)

P r o p

o s e d W

a l t e r 4

" B U L K O I L ( 1 8 6 1 3 ) E n i P e t U S

1 2

" a k

( 1 1 4 5 8 ) W

i l l i a m

s E N 8

" G a s ( 1 1 4 5 7 ) Proposed EW833-A Well

Proposed EW833-B Well EW834-2

EW834-12,600,0002,605,0002,610,0002,615,0002,620,000 

### 10,215,000 10,220,000 10,225,000 10,230,00089°57'0"W89°58'0"W89°59'0"W90°0'0"W90°1'0"W90°2'0"W



### 28°9'0"N

28°8'0"N

28°7'0"N

Lund Lloyd Ridge Green Canyon Atwater Valley Garden Banks De Soto Canyon

Henderson Destin Dome

Mississippi Canyon

Walker Ridge East Breaks

Keathley Canyon L o u i s i a n a T e x a s F l o r i d a

Study Area LEGEND

Chart scale 1" = 1,000'

3D GEOHAZARD ASSESSMENT GULF OF MEXICO

EWING BANK

BLOCK 833 PROPOSED EW833-B LOCATION GEODETIC INFORMATION

Data Parameters

Datum Name Ellipsoid Semi-major Axis Reciprocal Flattening NAD27
NAD27
6378206.40
294.98 Projection Method False Northing False Easting Latitude of Origin Longitude of Origin
Standard Parallel
Scale Factor Transverse Mercator
0.00
1640416.67
0 North
-93.0
15 North
-0.9996

SEABED DEPTH - ANCHOR RADIUS (PROPOSED EW833-B) CHART 16 0 1,000 2,000 3,000 500 Feet

0 300 600 900 150 Meters Seabed Depth (Feet)

REV DATE REMARKS AUTHOR DRAWN CHECKED

SURVEY DATE N/A REPORT REF 7071 CHART NO 7071.16 0 FEBRUARY 13, 2013 FINAL JR VC ARH Not to scale 

# ±

Prepared by: Gardline Surveys, Inc. 1500 Bingle Road, Houston, Texas, 77055. Telephone: 713.481.4630 Notes

Map Projection Parameters -1200

2

, 0 0 0 f t R a d i u s 2 0

0

0

f t R a d i u s Proposed EW 833- A well location 2,610,531ft E/10,221,140ft N ®33 3

3

Block boundaries 

# 6 Existing Well

Pipelines

Pipelines

Pipelines

Study area boundary Proposed EW 833- B well location 2,607,660ft E/10,220,000ft N ®33 3

3

Safety fairways

Buffer zone Depth in feet below sea surface to seabed, contoured at 25ft intervals.

4

, 1

0

0

f t M a x i

m

u m A n c h o r R a d

i u s

1

, 0

0

0

f t B u

f f e r Z o n e

# 6 6

EWING BANK BLOCK 834 (OCS-G27982) Ewing Bank Block 833 (OCS-G33706)

W a l t e r O

&

G

2

" U M

B ( 1 7 4 1 1 ) S

o u t h

w

e s t P

a s s S

a f e t y F

a i r w

a y

W a l t e r

O

&

G

2

" L

i f t (

1 7 3

1 3 ) W

a l t e r 1 " U

M

B

(

1 4

1 5

4 ) 

### Walter 4" BULK GAS (13133)

P r o p

o s e d W

a l t e r 4

" B U L K O I L ( 1 8 6 1 3 ) E n i P e t U S

1 2

" a k

( 1 1 4 5 8 ) W

i l l i a m

s E N 8

" G a s ( 1 1 4 5 7 ) Proposed EW833-A Well

Proposed EW833-B Well EW834-2

EW834-12,600,0002,605,0002,610,0002,615,0002,620,000 

### 10,215,000 10,220,000 10,225,000 10,230,00089°57'0"W89°58'0"W89°59'0"W90°0'0"W90°1'0"W90°2'0"W



### 28°9'0"N

28°8'0"N

28°7'0"N

Lund Lloyd Ridge Green Canyon Atwater Valley Garden Banks De Soto Canyon

Henderson Destin Dome

Mississippi Canyon

Walker Ridge East Breaks

Keathley Canyon L o u i s i a n a T e x a s F l o r i d a

Study Area LEGEND

Chart scale 1" = 1,000'

3D GEOHAZARD ASSESSMENT GULF OF MEXICO

EWING BANK

BLOCK 833 PROPOSED EW833-B LOCATION GEODETIC INFORMATION

Data Parameters

Datum Name Ellipsoid Semi-major Axis Reciprocal Flattening NAD27
NAD27
6378206.40
294.98 Projection Method False Northing False Easting Latitude of Origin Longitude of Origin
Standard Parallel
Scale Factor Transverse Mercator
0.00
1640416.67
0 North
-93.0
15 North
-0.9996

SEABED MORPHOLOGY - ANCHOR RADIUS (PROPOSED EW833-B) CHART 17 0 1,000 2,000 3,000 500 Feet

0 300 600 900 150 Meters

REV DATE REMARKS AUTHOR DRAWN CHECKED

SURVEY DATE N/A REPORT REF 7071 CHART NO 7071.17 0 FEBRUARY 13, 2013 FINAL JR KB ARH Not to scale 

# ±

Prepared by: Gardline Surveys, Inc. 1500 Bingle Road, Houston, Texas, 77055. Telephone: 713.481.4630 Notes

Map Projection Parameters Possible fluid macro seep at seabed favorable for potential development
of sensitive sessile benthic communities Seabed faults, ticks denote down throw side



### Illuminated from the northwest at 45° above horizontal 250ft exclusion zone around sensitive sessile benthic communities

2 0

0

0

f t R a d i u s

4

, 1

0

0

f t M a x i

m

u m A n c h o r R a d

i u s

1

, 0

0

0

f t B u

f f e r Z o n e Proposed EW 833- A well location 2,610,531ft E/10,221,140ft N ®33 3

3

Block boundaries 

# 6 Existing Well

Pipelines

Pipelines

Pipelines

Study area boundary Proposed EW 833- B well location 2,607,660ft E/10,220,000ft N ®33 3

3

Safety fairways

Buffer zone

# 6 6

EWING BANK BLOCK 834 (OCS-G27982) Ewing Bank Block 833 (OCS-G33706)

W a l t e r O

&

G

2

" U M

B ( 1 7 4 1 1 ) S

o u t h

w

e s t P

a s s S

a f e t y F

a i r w

a y

W a l t e r

O

&

G

2

" L

i f t (

1 7 3

1 3 ) W

a l t e r 1 " U

M

B

(

1 4

1 5

4 ) 

### Walter 4" BULK GAS (13133)

P r o p

o s e d W

a l t e r 4

" B U L K O I L ( 1 8 6 1 3 ) E n i P e t U S

1 2

" a k

( 1 1 4 5 8 ) W

i l l i a m

s E N 8

" G a s ( 1 1 4 5 7 ) Proposed EW833-A Well

Proposed EW833-B Well EW834-2

EW834-12,600,0002,605,0002,610,0002,615,0002,620,000 

### 10,215,000 10,220,000 10,225,000 10,230,00089°57'0"W89°58'0"W89°59'0"W90°0'0"W90°1'0"W90°2'0"W



### 28°9'0"N

28°8'0"N

28°7'0"N

Lund Lloyd Ridge Green Canyon Atwater Valley Garden Banks De Soto Canyon

Henderson Destin Dome

Mississippi Canyon

Walker Ridge East Breaks

Keathley Canyon L o u i s i a n a T e x a s F l o r i d a

Study Area 

### LEGEND

Chart scale 1" = 1,000'

3D GEOHAZARD ASSESSMENT GULF OF MEXICO

EWING BANK

BLOCK 833 PROPOSED EW833-B LOCATION GEODETIC INFORMATION

Data Parameters

Datum Name Ellipsoid Semi-major Axis Reciprocal Flattening NAD27
NAD27
6378206.40
294.98 Projection Method False Northing False Easting Latitude of Origin Longitude of Origin
Standard Parallel
Scale Factor Transverse Mercator
0.00
1640416.67
0 North
-93.0
15 North
-0.9996

SEABED AMPLITUDE - ANCHOR RADIUS (PROPOSED EW833-B) CHART 18 0 1,000 2,000 3,000 500 Feet

0 300 600 900 150 Meters Relative Seabed Amplitude

REV DATE REMARKS AUTHOR DRAWN CHECKED

SURVEY DATE N/A REPORT REF 7071 CHART NO 7071.18 0 FEBRUARY 13, 2013 FINAL JR KB ARH Not to scale 

# ±

Prepared by: Gardline Surveys, Inc. 1500 Bingle Road, Houston, Texas, 77055. Telephone: 713.481.4630 Notes

Map Projection Parameters 

### Seabed amplitude derived from positive value of seabed pick

2 0

0

0

f t R a d i u s

4

, 1

0

0

f t M a x i

m

u m A n c h o r R a d

i u s

1

, 0

0

0

f t B u

f f e r Z o n e Proposed EW 833- A well location 2,610,531ft E/10,221,140ft N ®33 3

3

Block boundaries 

# 6 Existing Well

Pipelines

Pipelines

Pipelines

Study area boundary Proposed EW 833- B well location 2,607,660ft E/10,220,000ft N ®33 3

3

Safety fairways

Buffer zone

## Walter Oil & Gas Corporation Page F-1 Initial Exploration Plan May, 2013 Ewing Bank Block 833 (OCS-G 33706) 

# APPENDIX F WASTES AND DISCHA RGES INFORMATION

(A) PROJECTED GENERATED WASTES
“ Wastes You Will Generate, Treat and Downhole Dispose or Discharge to the GOM” is included in this section as Attachment F-1please specify: Per well amountProjected generated waste Projected ocean dischargesType of Waste Composition Projected Amount Discharge rate Discharge Method Answeryes or noWill drilling occur ? Ifyes, you should list muds and cuttingsEXAMPLE:Cuttings wettedwithsyntheticbased fluidCuttings generatedwhileusing synthetic based X bbl/well X bbl/day/well discharge overboard NoWater-based drilling fluidWater based drillingfluids 7,500 bbls/well 250 bbls /day/well Seafloor before installation of marine riser NoCuttings wetted with water-based fluidCuttings generatedwhile using waterbased drilling fluids 3,400 bbls/well 160 bbls/day/well Seafloor before installation of marine riser NoSynthetic based drilling fluidsNANA NANANoDrill cuttings generated while usingsynthetic based drilling fluidsCuttings generatedwhile using syntheticbased drilling fluids4300 bbls/well33 bbls/day/well (assume131 days to drill based on150' per day)Treated cuttings will be discharged overoardwhile drilling SBM interval. Cuttings will passthrough cuttings dryer to reduce ROCpercentage in compliance with EPA and thenshunt through downpipe below water line.NoWill humans be there? Ifyes, expect conventional wasteSanitary waste fromATTACHMENT F-1WASTES YOU WILL GENERATE, TREAT AND DOWNHOLE DISPOSE OR DISCHARGE TO THE GOMProjectedDownholeDisposalEXAMPLE: Sanitary waste water living quartersX bbl/wellX bbl/hr/wellchlorinate and discharge overboard NoDomestic waste Gray Water 13,000 bbls/total 100 bbls/well/day Treated and discharged overboard NoSanitary wasteHuman body treatwaste discharged fromtoilets 6,500 bbls total 50 bbls/well/dayUSCG approved DNV Class approvedtreatment tank and discharged NoIs there a deck? If yes, there will be Deck DrainageDeck DrainageRain water and rigwash 46,800 bbls total15 bbls/hr /dependent onrainfallOily water is treated in one of four (4)separators and discharged through Portside caisson (cuttings chute) below sea level NoWill you conduct well treatment, completion, or workover?Well treatment fluidsViscous and csg washspacers using HEC andsmall amounts sodium200 bbls/well 50 bbls/well/day discharge overboardNoWell completion fluids Calcium Chloride 500 bbls/well 50 bbls/well/day discharge overboardNoWorkover fluids NA NA NA NA NoMiscellaneous discharges. If yes, only fill in thoseassociated with your activity.Desalinization unit dischargeNA NA NA NANoBlowout prevent fluidNA NA NA NANoBallast waterNA NA NA NANoBilge waterNA NA NA NANoExcess cement at seafloor NA NA NA NANoFire waterNA NA NA NANoCooling water NA NANA NANoWill you produce hydrocarbons? Ifyes fill in for produced water.Produced water NA NANANANAWill you be covered by an individual or general NPDES permit ? GeneralNOTE: If you will not have a typeof waste, enter NA in the row.

## Walter Oil & Gas Corporation Page G-1 Initial Exploration Plan May, 2013 Ewing Bank Block 833 (OCS-G 33706) 

# APPENDIX G AIR EMISSIONS INFORMATION

(A) EMISSIONS WORKSHEETS AND SCREENING QUESTIONS
Screen Procedures for EP’s Yes No Is any calculated Complex Total (CT) Emis sion amount (tons) associated with your proposed exploration activities more than 90% of the amounts calculated using the following formulas: CT = 3400D 2/3 

### for CO, and CT = 33.3D for the other air pollutants (where D = distance to shore in miles)? x

Do your emission calculations include any emission reduction measures or modified emission factors? x

Are your proposed exploration activities located east of 87.5° W longitude? x Do you expect to encounter H 2 

### S at concentrations greater than 20 parts per million (ppm)? x Do you propose to flare or vent natural gas for more than 48 continuous hours from any proposed well? x

Do you propose to burn produced hydrocarbon liquids? x



## Enclosed as Attachment G-1 are the emissions worksheets prep ared in accordance with 30 CFR 250.303(d).

This information was calculated by: Judy.Davidson (281) 578-3388 judy.davidson@jccteam.comEXPLORATION PLAN (EP)AIR QUALITY SCREENING CHECKLISTOMB Control No. 1010-0151OMB Approval Expires: 12/31/14COMPANYWalter Oil & Gas CorporationAREAEwing BankBLOCK833LEASEG-33706PLATFORMWELLA,BCOMPANY CONTACTJudy DavidsonTELEPHONE NO.281-578-3388REMARKSDrill and complete 2 wellsFORM BOEM-0138(December 2011 - Supersedes all previous versions of this form which may not be used).Page 1 of 8EMISSIONS FACTORSFuel Usage Conversion FactorsNatural Gas Turbines Natural Gas Engines Diesel Recip. Engine REF. DATESCF/hp-hr 9.524 SCF/hp-hr 7.143 GAL/hp-hr 0.0483AP42 3.2-1 4/76 & 8/84Equipment/Emission Factorsunits PM SOx NOx VOC CO REF. DATENG Turbines gms/hp-hr 0.00247 1.3 0.01 0.83AP42 3.2-1& 3.1-1 10/96NG 2-cycle leangms/hp-hr 0.00185 10.9 0.43 1.5AP42 3.2-1 10/96NG 4-cycle leangms/hp-hr 0.00185 11.8 0.72 1.6AP42 3.2-1 10/96NG 4-cycle rich gms/hp-hr 0.00185 10 0.14 8.6AP42 3.2-1 10/96Diesel Recip. < 600 hp. gms/hp-hr 1 1.468 14 1.12 3.03AP42 3.3-1 10/96Diesel Recip. > 600 hp. gms/hp-hr 0.32 1.468 11 0.33 2.4AP42 3.4-1 10/96Diesel Boiler lbs/bbl 0.084 2.42 0.84 0.008 0.21AP42 1.3-12,14 9/98NG Heaters/Boilers/Burners lbs/mmscf 7.6 0.593 100 5.5 84P42 1.4-1, 14-2, & 14 7/98NG Flares lbs/mmscf 0.593 71.4 60.3 388.5AP42 11.5-1 9/91Liquid Flaring lbs/bbl 0.42 6.83 2 0.01 0.21AP42 1.3-1 & 1.3-3 9/98Tank Vapors lbs/bbl 0.03E&P Forum 1/93Fugitives lbs/hr/comp. 0.0005API Study 12/93Glycol Dehydrator Vent lbs/mmscf 6.6La. DEQ 1991Gas Venting lbs/scf 0.0034Sulphur Content Source Value UnitsFuel Gas 3.33 ppmDiesel Fuel 0.4 % weightProduced Gas( Flares) 3.33 ppmProduced Oil (Liquid Flaring) 1 % weightFORM BOEM-0138(December 2011 - Supersedes all previous versions of this form which may not be used).Page 2 of 8EMISSIONS CALCULATIONS 1ST YEARCOMPANY AREA BLOCK LEASE PLATFORM WELL CONTACT PHONE REMARKSWalter Oil & Gas CorporaEwing Bank 833 G-33706 0 A,B Judy Davidson 281-578-3388OPERATIONS EQUIPMENT RATING MAX. FUEL ACT. FUEL RUN TIME MAXIMUM POUNDS PER HOUR ESTIMATED TONSDiesel Engines HP GAL/HR GAL/DNat. Gas Engines HP SCF/HR SCF/DBurners MMBTU/HR SCF/HR SCF/D HR/D DAYS PM SOx NOx VOC CO PM SOx NOx VOC CODRILLING PRIME MOVER>600hp diesel 26400 1275.12 30602.88 24 61 18.61 85.36 639.65 19.19 139.56 13.62 62.49 468.22 14.05 102.16PRIME MOVER>600hp diesel 0 0 0.00 0 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00PRIME MOVER>600hp diesel 0 0 0.00 0 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00PRIME MOVER>600hp diesel 0 0 0.00 0 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00BURNER diesel 0 0 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00AUXILIARY EQUIP<600hp diesel 0 0 0.00 0 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.004 trips/week VESSELS>600hp diesel(crew) 2500 120.75 2898.00 6 35 1.76 8.08 60.57 1.82 13.22 0.19 0.85 6.36 0.19 1.392 trips/week VESSELS>600hp diesel(supply) 3000 144.9 3477.60 8 17 2.11 9.70 72.69 2.18 15.86 0.14 0.66 4.94 0.15 1.08VESSELS>600hp diesel(tugs) 4000 193.2 4636.80 24 2 2.82 12.93 96.92 2.91 21.15 0.07 0.31 2.33 0.07 0.51VESSELS>600hp diesel(tugs) 4000 193.2 4636.80 24 2 2.82 12.93 96.92 2.91 21.15 0.07 0.31 2.33 0.07 0.51FACILITY DERRICK BARGE diesel 0 0 0.00 0 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00INSTALLATION MATERIAL TUG diesel 0 0 0.00 0 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00VESSELS>600hp diesel(crew) 0 0 0.00 0 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00VESSELS>600hp diesel(supply) 0 0 0.00 0 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00MISC. BPD SCF/HR COUNTTANK- 0 0 0 0.00 0.00DRILLING OIL BURN 0 0 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00WELL TEST GAS FLARE 0 0 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.002013 YEAR TOTAL28.12 129.02 966.74 29.00 210.93 14.09 64.62 484.18 14.53 105.64EXEMPTIONCALCULATIONDISTANCE FROM LAND INMILES2161.17 2161.17 2161.17 2161.17 54908.8164.9FORM BOEM-0138(December 2011 - Supersedes all previous versions of this form which may not be used).Page 3 of 8EMISSIONS CALCULATIONS 2ND YEARCOMPANY AREA BLOCK LEASE PLATFORM WELL CONTACT PHONE REMARKSWalter Oil & Gas CorporaEwing Bank 833 G-33706 0 A,B Judy Davidson 281-578-3388OPERATIONS EQUIPMENT RATING MAX. FUEL ACT. FUEL RUN TIME MAXIMUM POUNDS PER HOUR ESTIMATED TONSDiesel Engines HP GAL/HR GAL/DNat. Gas Engines HP SCF/HR SCF/DBurners MMBTU/HR SCF/HR SCF/D HR/D DAYS PM SOx NOx VOC CO PM SOx NOx VOC CODRILLING PRIME MOVER>600hp diesel 26400 1275.12 30602.88 24.00 185.00 18.61 85.36 639.65 19.19 139.56 41.31 189.51 1420.02 42.60 309.82PRIME MOVER>600hp diesel 0 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00PRIME MOVER>600hp diesel 0 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00PRIME MOVER>600hp diesel 0 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00BURNER diesel 0 0 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00AUXILIARY EQUIP<600hp diesel 0 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.004 trips/week VESSELS>600hp diesel(crew) 6 123 2952.00 6.00 106.00 0.00 0.02 0.15 0.00 0.03 0.00 0.01 0.05 0.00 0.012 trips/week VESSELS>600hp diesel(supply) 8 61 1464.00 8.00 53.00 0.01 0.03 0.19 0.01 0.04 0.00 0.01 0.04 0.00 0.01VESSELS>600hp diesel(tugs) 24 2 48.00 24.00 2.00 0.02 0.08 0.58 0.02 0.13 0.00 0.00 0.01 0.00 0.00VESSELS>600hp diesel(tugs) 24 2 48.00 24.00 2.00 0.02 0.08 0.58 0.02 0.13 0.00 0.00 0.01 0.00 0.00FACILITY DERRICK BARGE diesel 0 0 0.00 0 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00INSTALLATION MATERIAL TUG diesel 0 0 0.00 0 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00VESSELS>600hp diesel(crew) 0 0 0.000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00VESSELS>600hp diesel(supply) 0 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00MISC. BPD SCF/HR COUNTTANK- 0 0 0 0.00 0.00DRILLING OIL BURN 0 0 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00WELL TEST GAS FLARE 0 0 0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.002014 YEAR TOTAL18.65 85.56 641.15 19.23 139.89 41.31 189.52 1420.13 42.60 309.85EXEMPTIONCALCULATIONDISTANCE FROM LAND INMILES2161.17 2161.17 2161.17 2161.17 54908.8164.9FORM BOEM-0138(December 2011 - Supersedes all previous versions of this form which may not be used).Page 4 of 8SUMMARYCOMPANY AREA BLOCK LEASE PLATFORM WELLWalter Oil & GasEwing Bank 833 G-33706 0 A,BEmitted SubstanceYearPM SOx NOx VOC CO2013 14.09 64.62 484.18 14.53 105.642014 41.31 189.52 1420.13 42.60 309.85Allowable2161.17 2161.17 2161.17 2161.17 54908.81FORM BOEM-0138(December 2011 - Supersedes all previous versions of this form which may not be used).Page 8 of 8

# APPENDIX H OIL SPILLS INFORMATION

(A) OIL SPILL RESPONSE PLANNING All the proposed activities and facilities in th e Exploration Plan will be covered by Walter Oil & Gas Corporation's (Company Number 0730) last approved Oil Spill Response Plan (OSRP) dated July, 2011 and last approved on A ugust 3, 2012 (OSRP Control Number 0-370) and modification to that plan approved April 19, 2013. The WCD was accepted and approved in Plan Control Number S-7359.

(B) SPILL RESPONSE SITES

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

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

(D) WORST-CASE SCENARIO COMPARISON

Category Regional OSRP WCD EP WCD

Type of Activity Drilling Drilling
Facility Location (Area/Block) EW 834 EW 833

Facility Designation A A

Distance to Nearest Shoreline (miles) 64 64.9

Volume Storage Tanks (Total) Uncontrolled blowout Total Volume 169,488 bbls 169,488 bbls 109,474 bbls 109,474 bbls Type of Oil(s) (crude, condensate, diesel) Crude Oil Oil

API Gravity 24 0 

## 23 0



## Walter has determined that the worst-case scenario from the activities proposed in this EP do not supersede the worst-case scenario from our approved Regional OSRP.

Walter Oil & Gas Corporation Page H-1 Initial Exploration Plan May, 2013 Ewing Bank Block 833 (OCS-G 33706)

## Walter Oil & Gas Corporation Page H-2 Initial Exploration Plan May, 2013 Ewing Bank Block 833 (OCS-G 33706) Since Walter has the capability to respond to the worst-case spill scen ario included in our Regional OSRP approved on August 3, 2012, and since the worst-case scenario determined for our EP does not replace the worst-case scenario in our Regional OSRP, Walter hereby certifies that Walter has the capability to respond, to th e maximum extent practi cable, to a worst-case discharge, or a substantial threat of such a discha rge, resulting from the ac tivities proposed in our
EP.

(E) SPILL RESPONSE DISCUSSION FOR NEPA ANALYSIS Included as Attachment H-1 is a Spill Response Discussion prepared for Ewing Bank Block 833.

## Attachment H-1 SPILL RESPONSE DISCUSSION

For the purpose of NEPA and Coastal Zone Mana gement Act analysis, the largest spill volume originating from the proposed activity would be a well bl owout during drilling operations, estimated to be 109,474 barrels of crude oil with an API gravity of 23°.

Land Segment and Resource Identification

Trajectories of a spill and the probability of it impacting a land segment have been projected utilizing information in the BS EE Oil Spill Risk Analysis Model (OSRAM) for the Central and Western Gulf of Mexico available on the BSEE website. The results are shown in Figure 1. The BSEE OSRAM identifies a 7% proba bility of impact to the s horelines of Cameron Parish, Louisiana within 30 days. Cameron Parish includes the east side of Sabine Lake, Sabine National Wildlife Refuge, Calcasieu Lake, Lacassine Nationa l Wildlife Refuge (inland) and Grand Lake. Cameron Parish also includes the area along the coastline from Sabine Pass to Big Constance Lake in Rockefeller Wildlife Refuge. This region is composed of open public beaches, marshlands and swamps. It serves as a habita t for numerous birds, finf ish and other animals, including several rare, threat ened and endangered species.

Response

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

Using the estimated chemical and physical charact eristics of crude oil, an ADIOS weathering model was run on a similar product from the ADIOS oil database. The results indicate 5% or approximately 5,474 barrels of crude oil would be evaporated/dispersed within 24 hours, with approximately 104,000 barrels remaining.

Spill Response EW 833, Well A Barrels of Oil

WCD Volume 109,474

Less 5% natural evaporation/dispersion 5,474 Remaining volume 104,000



## Figure 2 outlines equipment, personnel, materials and support vessels as well as temporary storage equipment available to respond to a sp ill of approximately 104,000 barrels. The volume accounts for the amount remaining after evaporatio n/dispersion at 24 hours. The list estimates individual times needed for proc urement, load out, travel time to the site and deployment. Figure 2 also indicates how operations will be supported.

Walter’s Oil Spill Response Plan includes alternative response technologies such as dispersants and in-situ burn. Strategies will be decided by Unified Command based on the size of the spill,

## weather and potential impacts. If aerial dispersants are utili zed, 8 sorties (9,600 gallons) from two of the DC-3 aircrafts and 4 sorties (8,000 gall ons) from the Basler ai rcraft would provide a daily dispersant capability of 7,540 barrels. If th e conditions are favorable for in-situ burning, the proper approvals have been obtained and the prope r planning is in place, in-situ burning of oil may be attempted. Slick containment boom woul d be immediately calle d out and on-scene as soon as possible. Offshore response strategies may include attempting to skim utilizing the HOSS Barge, nine Fast Response Units (FRUs), two Aqua Guard Triton RBS skimmers, and eleven sets of Koseq Skimming Arms, with a to tal derated skimming capac ity of 277,378 barrels. Temporary storage associated with skimming equipment equals 27,700 barrels. If additional storage is needed, three 23,000 ba rrel storage barges, one 25,000 barrel storage barge, one 47,000 barrel storage barge, and one 115,183 barr el storage barge may be mobilized and centrally located to provide temporary storage allowing the skimmers to stay in the area of operations as much as possible. Safety is first priority. Air monitoring will be accomplished and operations deemed safe prior to an y containment/skimming attempts.

If the spill went unabated, s horeline impact in Cameron Pa rish, Louisiana would depend upon existing environmental conditions. Shoreline prot ection would include the use of CGA’s near shore and shallow water skimmers with a tota led derated skimming cap acity of 54,753 barrels. Temporary storage associated with skimming equi pment equals 765 barrels. If additional storage is needed, three 20,000 barrel storage barges may be mobilized and centrally located to provide temporary storage allowing the skimmers to stay in the area of operations as much as possible. Onshore response may include the deployment of shoreline boom on beach areas, or protection and sorbent boom on vegetated areas. A Master Service Agreement with OMI Environmental will ensure access to 30,000 feet of 18” shoreline protection boom. Figure 2 outlines individual times needed for procurement, load out, travel time to the site and deployment. Strategies would be based upon surveillance and real time trajectorie s that depict areas of potential impact given actual sea and weather conditions. The State of Louisiana Initial Oil Spill Response Plan for Cameron Parish and Unified Command would be consulted to ensure that environmental and special economic resources would be correctly identified and prioritized to ensure optimal protection. Shoreline protect ion strategies depict the protecti on response modes applicable for oil spill clean-up operations. The State of Louisiana Initial Oil Spill Response Plan provides detailed shoreline protection strategies fo r this area, and it describes nece ssary action to ke ep the oil spill from entering Louisiana’s coastal wetlands, based on the assumption that re moval of the released oil will be much easier and less damaging to fragile coastal ecosystem s if done in the open waters of the Gulf of Mexico. Supervisory pers onnel have the option to modify the deployment and operation of equipment allowing a more eff ective response to site-specific circumstances. Walter Oil & Gas Corporation’s co ntract Spill Management Team holds a copy of the State of Louisiana Initial Oil Spill Response Plan.

Based on the anticipated worst case discharge scen ario, Walter can be onsite with contracted oil spill recovery equipment with adequate response capacity to contain and recover surface hydrocarbons, and prevent land impact, to the maximum extent practicable, within an estimated 76 hours (based on the equipment’s Effectiv e Daily Recovery Capacity (EDRC)).

## Initial Response Considerations Actual actions taken during an oil spill response will be based on many factors which include but are not limited to:

• Weather

• Equipment and materials availability

• Ocean currents and tides

• Location of the spill

• Product spilled

• Amount spilled

• Environmental risk assessments

• Trajectory and product analysis

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

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

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

• Information will be confirmed

• An assessment will be made and initial objectives set

• OSROs and appropriate agen cies will be notified

• ICS 201, Initial Report Form will be completed

• Initial Safety plan will be written and published

• Unified Command will be established

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

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

o On-site command and control established

Offshore Response Actions

Equipment Deployment Surveillance

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

• Provide trained observer to pr ovide on site status reports

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

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

• Continual monitoring of vessel assets using vessel monitoring systems

## Dispersant application assets

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

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

• Gain FOSC approval for use of dispersants on the surface

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

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

• Confirm dispersant availability fo r current and long range operations

• Start ordering dispersa nt stocks required for expected operations

Containment boom

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

• Ensure boom handling and mooring equipment is deployed with boom

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

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

Dedicated off-shore skimming systems General

• Deployed to the highest concentration of oil

• Assets deployed at safe distance from aer ial dispersant and in-situ burn operations

CGA HOSS Barge

• Use in areas with heaviest oil concentrations

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

CGA FRUs

• To the area of the thickest oil

• Use as far off-shore as allowed

• VOOs 140’ – 180’ in length

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

T&T Koseq Skimming Systems

• To the area of the thickest oil

• Use as far off-shore as allowed

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

• VOOs at least 200’ in length

• VOOs with deck space of 100’ x 40’ to provide space for arms, tanks, and crane

## Storage Vessels

• Establish availability of CGA contracted assets

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

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

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

Vessels of Opportunity (VOO)

• Use Walter’s contracted re sources as applicable

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

• Acquire additional resources as needed

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

• Expect mission specific and sa fety training to be required

• Plan with the US Coast Guard for vessel inspections

In-situ Burn assets

• Determine appropriateness of in-situ burn ope ration in coordination with the FOSC and affected State On-Scene Coordinator (SOSC)

• Determine availability of fire boom and selected ignition systems

• Start ordering fire boom stocks required for expected operations

• Contact boom manufacturer to provide training if required

• Determine assets to perform on water operation

• Build operations into safety plan

• Conduct operations in accordance with an approved plan

## Near Shore Response Actions

Timing

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

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

• Outfitting of VOOs for specific missions

• Deployment of assets based on actual movement of oil

Considerations

• Water depth, vessel draft

• Shoreline gradient

• State of the oil

• Use of VOOs

• Distance of surf zone from shoreline

Equipment Deployment Surveillance

• Provide trained observer to direct skimming operations

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

• Continual monitoring of vessel assets

Dispersant Use

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

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

Vessel Deployment Dedicated Near Shore skimming systems

• Fast Response Vessels (FRV)

• Egmopol and Marco Shallow Water Skimmer (SWS)

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

VOO

• Use Walter’s contracted re sources as applicable

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

• Acquire additional resources as needed

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

• Expect mission specific and sa fety training to be required

• Plan with the US Coast Guard for vessel inspections

• Operate with aerial spotter directing systems to oil patches

## Shoreline Protection Operations

Response Planning Considerations

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

• Time to acquire personnel and eq uipment and their availability

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

Actions

Placement of boom

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

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

o Trajectories

o Weather forecast

o Oil Impact forecast

o Verified spill movement

o Boom, manpower and vessel (shallow draft) availability

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

Beach Preparation

Considerations and Actions

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

• Shoreline Cleanup and Assessment Team Reports and recommendations

• Determination of Archeological site s and gaining authority to enter

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

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

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

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

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

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

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

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

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

recovery.

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

Boom 3 foot seas, 20 knot winds Dispersants Winds more than 25 knots Visibility less than 3 nautical miles Ceiling less than 1,000 feet.
FRU 8 foot seas HOSS Barge/OSRB 8 foot seas Koseq Arms 8 foot seas
OSRV 4 foot seas

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

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

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

## FIGURE 1 TRAJECTORY BY LAND SEGMENT

Trajectory of a spill and the probability of it impacting a land segment have been projected utilizing Walter’s WCD and information in the BSEE Oil Spill Risk Analysis Model (OSRAM) for the Central and Western Gulf of Mexico available on the BSEE website using 30 day impact. The results are tabulated below.

Area/Block OCS-G Launch
Area Land Segment and/or
Resource Conditional Probability (%) within 30 days

Drill and complete 2 wells

EW 833, Well A

64.7 miles from shore G33706 C42 Matagorda County, TX Galveston County, TX Jefferson County, TX Cameron Parish, LA Vermilion Parish, LA Iberia Parish, LA Terrebonne Parish, LA Lafourche Parish, LA Jefferson Parish, LA Plaquemines Parish, LA 1
2
2
7 3
1 3
2
1 5WCD Scenario–BASED ON WELL BLOWOUT DURING DRILLING OPERATIONS(64.7 miles from shore)104,000 bbls of crude oil (Volume considering natural weathering)API Gravity 23°FIGURE 2 – Equipment Response Time to EW 833, Well ADispersants/SurveillanceDispersant/SurveillanceDispersantCapacity (gal)StorageCapacityPersons Req.FromHrs toProcureHrs toLoadoutTravel tositeTotal HrsCGABasler 67T2000NA2Houma110.62.6ASIDC 31200NA2Houma110.82.8DC 31200NA2Houma110.82.8Aero CommanderNANA2Houma110.62.6Offshore ResponseOffshore Equipment No StagingEDRCStorageCapacityVOOPersonsRequiredFromHrs toProcureHrs toLoadoutHrs toGOMTravel toSpill SiteHrs toDeployTotalHrsCGAHOSS Barge4300040003 Tugs5Harvey70515.0128.0T&T Marine (available through contract with CGA)Koseq Skimming Arms (5)89145100005 Utility30Galveston2424124.2275.2Koseq Skimming Arms (3)5348760003 Utility18Leeville2424210262Koseq Skimming Arms (1)1782920001 Utility6Fourchon2424110261Koseq Skimming Arms (2)3565840002 Utility12Venice242425257Recovered Oil Storage NoStagingEDRCStorageCapacityVOOPersonsRequiredFromHrs toProcureHrs toLoadoutHrs toGOMTravel toSpill SiteHrs toDeployTotalHrsK-Sea Operating (available through contract with CGA)DBL 105 653463NA1151831 Tug6Venice41227.75126.75Enterprise Marine Services LLC (available through contract with CGA)CTCo 2603NA250001 Tug6Amelia412415136CTCo 2607NA230001 Tug6Amelia412415136CTCo 2608NA230001 Tug6Amelia412415136CTCo 2609NA230001 Tug6Amelia412415136CTCo 5001NA470001 Tug6Amelia412415136Staging Area: VeniceOffshore Equipment WithStagingEDRCStorageCapacityVOOPersonsReq.FromHrs toProcureHrs toLoadoutTravel toStagingTravel toSiteHrs toDeployTotalHrsCGAFRU (1) + 100 bbl Tank (2)42512001 Utility6Galveston1285117FRU (1) + 100 bbl Tank (1)42511001 Utility6Harvey121.755110.8FRU (1) + 100 bbl Tank (2)42512001 Utility6Ingleside12115120FRU (1) + 100 bbl Tank (2)42512001 Utility6Lake Charles125.55114.5FRU (2) + 100 bbl Tank (2)85024002 Utility12Leeville123.55112.5FRU (1) + 100 bbl Tank (2)42512001 Utility6Morgan City123.255112.3FRU (2) + 100 bbl Tank (4)85024002 Utility12Venice120519Offshore Equipment WithStagingEDRCStorageCapacityVOOPersonsReq.FromHrs toProcureHrs toLoadoutTravel toStagingTravel toSiteHrs toDeployTotalHrsCGA42” Auto Boom (5000’)NANA10 Crew20Galveston128511742” Auto Boom (10000’)NANA20 Crew40Harvey121.755110.842” Auto Boom (2500’)NANA6 Crew12Ingleside1211512042” Auto Boom (5000’)NANA10 Crew20Lake Charles125.55114.542” Auto Boom (2500’)NANA6 Crew12Pascagoula1245113Hydro-Fire BoomNANA8 Utility40Harvey (HFB)141.755617.8Nearshore ResponseNearshore Equipment NoStagingEDRCStorageCapacityVOOPersonsRequiredFromHrs toProcureHrs toLoadoutHrs toGOMTravel toSpill SiteHrs toDeployTotalHrsCGA46’ FRV500065NA4Galveston1003.604.646’ FRV500065NA4Leeville1027.4010.446’ FRV500065NA4Lake Charles10120446’ FRV500065NA4Venice1019.2011.2Trinity SWS21500249NA4Morgan City1224.409.4Enterprise Marine Services LLC (available through contract with CGA)CTCo 2604NA200001 Tug6Amelia412415136CTCo 2605NA200001 Tug6Amelia412415136CTCo 2606NA200001 Tug6Amelia412415136Staging Area: CameronNearshore and InlandSkimmers With StagingEDRCStorageCapacityVOOPersonsReq.FromHrs toProcureHrs toLoadoutTravel toStagingTravel toDeploymentHrs toDeployTotal HrsCGASWS Egmopol3000100NA3Galveston123.5208.5SWS Egmopol3000100NA3Morgan City123208SWS Marco358820NA3Lake Charles121206SWS Marco358834NA3Leeville124.75209.75Rope Mop77203Harvey123.5208.5Shoreline ProtectionStaging Area: CameronShoreline ProtectionBoomVOOPersonsReq.Storage/WarehouseLocationHrs toProcureHrs toLoadoutTravel toStagingTravel toDeployment SiteHrs toDeployTotal HrsOMI Environmental (available through MSA)10,000’ 18” Boom4 Crew10New Iberia, LA112.5239.510,000’ 18” Boom4 Crew10Houston, TX112.5239.510,000’ 18” Boom4 Crew10Port Arthur, TX111.25238.25Beach BoomEDRCStorageCapacityVOOPersonsReq.FromHrs toProcureHrs toLoadoutTravel toStagingTravel toDeploymentHrs toDeployTotal HrsCGABeach Boom (2000’)NANANA6Galveston123.5129.5Beach Boom (1000’)NANANA4Ingleside1261212Beach Boom (2000’)NANANA6Pascagoula125.51211.5Wildlife ResponseEDRCStorageCapacityVOOPersonsReq.FromHrs toProcureHrs toLoadoutTravel toStagingTravel toDeploymentHrs toDeployTotal HrsCGAWildlife Support TrailerNANANA2Houma123.75129.75Bird Scare Guns (24)NANANA2Belle Chasse124.51210.5Bird Scare Guns (12)NANANA2Galveston123.5129.5Bird Scare Guns (24)NANANA2Houma123.75129.75Bird Scare Guns (12)NANANA2Ingleside1261212Bird Scare Guns (24)NANANA2Lake Charles121127Bird Scare Guns (24)NANANA2Pascagoula125.51211.5Response AssetTotalOffshore EDRC277,378Offshore Recovered Oil Storage283,883Nearshore / Shallow Water EDRC54,753Nearshore / Shallow Water Recovered Oil Storage60,765

## Walter Oil & Gas Corporation Page I-1 Initial Exploration Plan May, 2013 Ewing Bank Block 833 (OCS-G 33706) 

# APPENDIX I ENVIRONMENTAL MONITORING INFORMATION

(A) MONITORING SYSTEMS Daily and special updates from Wilken's Weathe r Service and Horizon Marine Eddie Watch for loop current information.

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

To date, it has been documented that the use of explosives and/or seis mic devices can affect marine life. Operations proposed in this plan will not be utilizing either of these devices.

(C) FLOWER GARDEN BANKS NATIONAL MARINE SANCTUARY Ewing Bank Block 833 is not locate d in the Flower Garden Banks National Marine Sanctuary; therefore, the requested informati on is not required in this EP.

## Walter Oil & Gas Corporation Page J-1 Initial Exploration Plan May, 2013 Ewing Bank Block 833 (OCS-G 33706) 

# APPENDIX J LEASE STIPULATIONS INFORMATION

Marine Protected Species The Marine Protected Species St ipulation is meant to reduce th e potential taking of marine protected species. Walter will operate in acco rdance with NTL 2012-JOINT-G01, to minimize the risk of vessel strikes to protected species a nd report observations of injured or dead protected species, and the prevention of inte ntional and/or accidental introducti on of debris into the marine environment.

## Walter Oil & Gas Corporation Page K-1 Initial Exploration Plan May, 2013 Ewing Bank Block 833 (OCS-G 33706) APPENDIX K ENVIRONMENTAL MITIGATION MEASURES INFORMATION

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

• NTL 2012-JOINT-G01, “Vessel Strike Avoidance and Injured/Dead Protected Species Reporting

• NTL 2012-G01, “Marine Trash and Debris Awareness and Elimination”

• NTL 2012-JOINT-G02, “Implementation of Se ismic Survey Mitigation Measures and Protected Species Observer Program”

## Walter Oil & Gas Corporation Page L-1 Initial Exploration Plan May, 2013 Ewing Bank Block 833 (OCS-G 33706) APPENDIX L SUPPORT VESSELS AND AI RCRAFT INFORMATION

(A) GENERAL The most practical, direct route from the s horebase as permitted by weather and traffic conditions will be utilized.

Type Maximum Fuel Tank Capacity Maximum Number in Area at Any Time Trip Frequency or Duration
Tug Boats 3000 bbls 2 2

Anchor Handling Boat 1500 bbls 2 2

Crew Boat 500 bbls 1 4/week
Supply Boat 500 bbls 2 2/week

Helicopters 560 gals. 1 As needed

(B) DIESEL OIL SUPPLY VESSELS Size of Fuel Supply Vessel Capacity of Fuel Supply Vessel Frequency of Fuel Transfers Route Fuel Supply Vessel Will Take
180’ 1500 bbls 1 per week Shortest route from Shorebase to block.
*Please note the actual vessels have not yet been contracted.

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

(D) SOLID AND LIQUID WASTE TRANSPORTATION

“ Wastes You Will Transport and/or Dispose of Onshore” is included in this section as Attachment L-1.

(E) VICINITY MAP Enclosed as Attachment L-2 is a vicinity map showing the location of the activities proposed herein relative to the shoreline w ith the distance of th e proposed activities from the shoreline and the primary route(s) of the support vessels and aircraft that will be used when traveling between the onshore support facilities and the dr illing unit.please specify:Per wellProjected generatedwasteSolid and LiquidWastes transportationType of Waste Composition Transport MethodName/Location ofFacility Amount Disposal MethodWill drilling occur ? If yes, fill in the muds and cuttings.EXAMPLE: Synthetic-based drilling fluid ormudinternal olefin, esterBelow deck storage tanks onoffshore support vesselsNewpark, Fourchon,LouisianaX bbl/well RecycledOil-based drilling fluid or mud NA NA NA NA NASpent synthetic based drilling fluids andcuttingsSyntheticbaseddrillingfluids adheringto drill cutting from synthetic based holeintervalsCutting boxes on supply boatNewpark, Fourchon,Louisiana 4,000 bbl/wellReconditionedCuttings wetted with Water-based fluidNANA NA NANACuttings wetted with Synthetic-based fluidNANA NA NANACuttings wetted with oil-based fluids NA NA NA NA NACompletion Fluids NA NA NA NA NACompletion Wash fluids from tank cleaning. NA NA NA NA NAWill you produce hydrocarbons? If yes fill in for produced sand.Produced sandNA NA NA NA NAWaste DisposalATTACHMENT L-1WASTES YOU WILL TRANSPORT AND /OR DISPOSE OF ONSHOREEXAMPLE: trash anddebris (recylables) Plastic, paper, aluminum barged in a storage binARC, New Iberia, LAXlb/well RecycledTrash and debrisWhile drilling Paper & PlasticGarbage bags on Supply or CrewBoatEPS Dock, Fourchon,LA57 Bags at 40 cuft perbagLandfillUsed oilOily rags/absorbent pads,used oil filters 19 DOT Drums on Supply boatUS Liquids , Fourchon, LA7 drums/wellIncinerationWash waterNA NA NA NA NAChemical product wastesWhile Drilling-Paint, solvents,light bulbsStorage Bins on Supply or CrewBoatNewparkEnvironmental,Cameron, LA 200 lb/well Hazardous WasteTrash and debrisBatteriesSupply or Crew Boat5 gallon DrumNewparkEnvironmental,Cameron, LA2-5 gallon drums perwellRecycledNOTE: If you will not have a type of waste, enter NA in the row.Will you have additional wastes that are not permitted for discharge? If yes,fill in the appropriate rows.

## Walter Oil & Gas Corporation Page M-1 Initial Exploration Plan May, 2013 Ewing Bank Block 833 (OCS-G 33706) APPENDIX M ONSHORE SUPPORT FACILITIES INFORMATION

(A) GENERAL Name of Shorebase Location Existing/New/Modified EPS Logistics Fourchon, LA Existing Newpark Fourchon, LA Existing

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

(C) WASTE DISPOSAL “Wastes You Will Transport and/or Dispose of Onshore” is included in Appendix L as Attachment L-1.

## Walter Oil & Gas Corporation Attachment N

- 1 Initial Exploration Plan May, 2013 Ewing Bank Block 833 (OCS-G 33706) APPENDIX N COASTAL ZONE MANAGEMEN T (CZMA) INFORMATION

Relevant enforceable policies were considered in certifying consistency for Louisiana. A certificate of Coastal Zone Management Consistency for the state of Louisiana is enclosed as Attachment N-1

.

## Walter Oil & Gas Corporation Page O

- 1 Initial Exploration Plan May, 2013 Ewing Bank Block 833 (OCS-G 33706) APPENDIX O ENVIRONMENTAL IMPACT ANALYSIS (EIA)



# Initial Exploration Plan Ewing Bank Block 833 OCS-G 33706

(A) IMPACT PRODUCING FACTORS

ENVIRONMENTAL IMPACT ANALYSIS WORKSHEET

Environment

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

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

the water column or seafloor) Physical disturbances to the

seafloor (rig or anchor emplacements, etc.) Wastes sent to shore for
treatment or disposal Accidents (e.g., oil spills, chemical spills, H 2 S releases) Discarded Trash & Debris

Site-specific at Offshore Location
Designated topographic features (1) (1) (1)

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

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

Benthic communities (4)
Water quality X X X

Fisheries X X X

Marine Mammals X(8) X X(8) X

Sea Turtles X(8) X X(8) X
Air quality X(9)
Shipwreck sites (known or potential) (7)

Prehistoric archaeological sites X(7)

Vicinity of Offshore Location

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

Coastal and Onshore

Beaches X(6) X

Wetlands X(6)
Shore birds and coastal nesting birds X(6) X

Coastal wildlife refuges X

Wilderness areas X

## Walter Oil & Gas Corporation Page O

- 2 Initial Exploration Plan May, 2013 Ewing Bank Block 833 (OCS-G 33706) Footnotes for Environmental Impact Analysis Matrix

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

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

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

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

o Proximity of any submarine bank (500 ft. buffer zone) with relief greater than 2 meters th at is not protected by the Topographic Features Stipulation attached to an OCS lease.
2) Activities with any bottom disturbance within an OCS lease block protected through the Live Bottom (Pinnacle Trend) Stipulation attached to an OCS lease. 3) Activities within any Eastern Gulf OCS bl ock where seafloor habitats are protect ed by the Live Bottom (Low-Relief) Stipulation attached to an OCS lease. 4) Activities on blocks designated by the BOEM as being in water depths 300 meters or greater. 5) Exploration or production activities where H2S concentr ations greater than 500 ppm might be encountered. 6) All activities that could result in an accide ntal spill of produced liquid hydrocarbons or diesel fuel that you determine would impact these environmental resources. If the proposed action is located a sufficient distance from a resource that no impact would occur, the EIA can note that in a sentence or two. 7) All activities that involve seafloor disturbances, including anchor emplacements, in any OCS block designated by the BOEM as having high-probability for the o ccurrence of shipwrecks or prehistoric sites, including such blocks that will be affected that are adjacent to the lease block in which your planned activity will occur. If the proposed activities are located a sufficient distance from a shipwreck or a prehistoric site that no im pact would occur, the EIA can note that in

a sentence or two. 8) All activities that you determine might have an adverse eff ect on endangered or threatened marine mammals or sea turtles or their critical habitats. 9) Production activities that involve trans portation of produced fluids to shor e using shuttle tankers or barges.

## Walter Oil & Gas Corporation Page O

- 3 Initial Exploration Plan May, 2013 Ewing Bank Block 833 (OCS-G 33706) (B) ANALYSIS

Site-Specific at Ew ing Bank Block 833 Proposed operations consist of the drilling and comp letion of two wells. Operations will be conducted with a anchored semi-submersible.

1. Designated Topographic Features 

## Potential IPFs on topographic featur es include physical disturbances to the seafloor, effluents, and accidents.

Physical disturbances to the seafloor: Ewing Bank Block 833 is 41 miles from the closest designated Topographic Features St ipulation Block (Diaphus Bank); th erefore, no adverse impacts are expected.

Effluents: Ewing Bank Block 833 is 41 miles from th e closest designated Topographic Features Stipulation Block (Diaphus Bank); therefore, no adverse impacts are expected.

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

There are no other IPFs (including emissions and wastes sent to shor e for disposal) from the proposed activities, which could imp act topographic features.

2. Pinnacle Trend Area Live Bottoms 

## Potential IPFs on pinnacle trend area live bottoms include physical disturba nces to the seafloor, effluents, and accidents.

Physical disturbances to the seafloor: Ewing Bank Block 833 is 118 miles from the closest live bottom (pinnacle trend) area; therefore, no adverse impacts are expected.

Effluents: Ewing Bank Block 833 is 118 miles from th e closest live bottom (pinnacle trend) area; therefore, no adverse impacts are expected.

## Walter Oil & Gas Corporation Page O

- 4 Initial Exploration Plan May, 2013 Ewing Bank Block 833 (OCS-G 33706) Accidents: It is unlikely that an accidental surf ace or subsurface spill would occur from the proposed activities (refer to statistics in Item 5 , Water Quality). Oil spills ha ve the potential to foul benthic communities and cause lethal and sublethal effects on live bottom organisms. Oil from a surface spill can be driven into the water column; measurable amounts have been documented down to a 10 m depth. At this depth, the oil is found only at concentrations several or ders of magnitude lower than the amount shown to have an effect on mari ne organisms. Oil from a subsurface spill is not applicable due to the distance of these blocks fro m a live bottom (pinnacle trend) area. The activities proposed in this plan will be covered by Walter’s Regional OSRP (refer to information submitted in Appendix H ).

There are no other IPFs (including emissions and wastes sent to shor e for disposal) from the proposed activities which could impact a liv e bottom (pinnacle trend) area.

3. Eastern Gulf Live Bottoms 

## Potential IPFs on Eastern Gulf live bottoms include phys ical disturbances to the seafloor, effluents, and accidents.

Physical disturban ces to the seafloor: Ewing Bank Block 833 is not located in an area characterized by the existence of live bottoms, a nd this lease does not contain a Live-Bottom Stipulation requiring a photo documen tation survey and survey report.

Effluents: Ewing Bank Block 833 is not located in an area characterized by th e existence of live bottoms; therefore, no adverse impacts are expected.

Accidents: It is unlikely that an accidental surf ace or subsurface spill would occur from the proposed activities (re fer to statistics in Item 5 , Water Quality). Oil spills cause damage to live bottom organisms only if the oil contacts the organisms. O il from a surface spill can be driven into the water column; measurable amounts have been documented dow n to a 10 m depth. At this depth, the oil is found only at concentrations severa l orders of magnitude lower than the amount shown to have an effect on marine invertebrates. Oil from a subsurface spill is not applicable due to the distance of these blocks from a live bottom area. The activities pr oposed in this plan will be covered by Walter’s Regional OSRP (refer to information submitted in Appendix H ).

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

## Walter Oil & Gas Corporation Page O

- 5 Initial Exploration Plan May, 2013 Ewing Bank Block 833 (OCS-G 33706) 4. Benthic Communities 

## Ewing Bank Block 833 is located in water depths 984 feet (300 meters) or greater. IPFs that could result in impacts to benthic communities from the proposed activities include physical disturbances to the seafloor.

Physical disturbances to the seafloor: Ewing Bank Block 833 is approximately 9 miles from a known benthic community site (Benthic Ewing Bank Block 1010), listed in NTL 2009-G40. This Initial Exploration Plan submittal includes the requir ed maps, analyses, and statement(s). The proposed activities will be conducted in accordance with NTL 2009-G40, which will ensure that features or areas that could support high-density be nthic communities will not be impacted.

There are no other IPFs (including em issions, effluents, wastes sent to shore for disposal , or accidents) from the proposed activities which could impact benthic communities.

5. Water Quality



## IPFs that could result in water quality degradation from the proposed operations in Ewing Bank Block 833 include disturbances to the s eafloor, effluents and accidents.

Physical disturbances to the seafloor: Bottom area disturbances resulting from the emplacement of drill rigs, the drilling of wells a nd the installation of plat forms and pipelines would increase water-column turbidity and re-suspension of any accumulated pollutants, such as trace metals and excess nutrients. This would cause short-li ved impacts on water quality conditions in the immediate vicinity of the emplacement operations.

Effluents: Levels of contaminants in drilling muds and cuttings and produced water discharges, discharge-rate restrictions a nd monitoring and toxicity testi ng are regulated by the EPA NPDES permit, thereby eliminating many significant biologica l or ecological effects. Operational discharges are not expected to cause significant adverse im pacts to water quality.

Accidents: Oil spills have the potential to alter offshor e water quality; however, it is unlikely that an accidental surface or subsurface spill would occur from the proposed activities. Between 1980 and 2000, OCS operations produced 4.7 billion barrels of oil and spilled only 0.001 percen t of this oil, or 1 bbl for every 81,000 bbl produced. The spill risk related to a diesel spill from drilling operations is even less. Between 1976 and 1985, (years for which data were collected), there were 80 reported diesel spills greater than one barr el associated with drilling activit ies. Considering that there were 11,944 wells drilled, this is a 0.7 percent probability of an occurrence. If a spill were to occur, the water quality of marine waters w ould be temporarily affected by the dissolved components and small oil droplets. Dispersion by currents and microbial degradation would remove the oil from the water column and dilute the constituents to background leve ls. Historically, changes in offshore water quality from oil spills have only been detected during the lif e of the spill and up to several months afterwards. Most of the components of oil are in soluble in water and therefore floa t. The activities proposed in this

## Walter Oil & Gas Corporation Page O

- 6 Initial Exploration Plan May, 2013 Ewing Bank Block 833 (OCS-G 33706) plan will be covered by Walter’s Regional Oil Spill Response Plan (refer to information submitted in Appendix H ).

There are no other IPFs (including em issions, physical disturbances to th e seafloor, and wastes sent to shore for disposal) from the proposed activitie s which could cause impacts to water quality.

6. Fisheries 

## IPFs that could cause impacts to fi sheries as a result of the proposed operations in Ewing Bank Block 833 include physical disturbances to th e seafloor, effluents and accidents.

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

Effluents: Effluents such as drilling fluids and cuttings discharges contain components and properties which are detrimental to fishery resources. Moderate petroleum and metal contamination of sediments and the water column can occur out to several hundred meters down-current from the discharge point. Offshore discharges are expected to disperse and dilute to very near background levels in the water column or on the seafloor with in 3,000 m of the discharge poi nt, and are expected to have negligible effect on fisheries.

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

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

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

7. Marine Mammals



## GulfCet II studies revealed that cetaceans of the continental shelf and shelf-edge were almost exclusively bottlenose dolphin and Atlantic spotted dolphin. Squid ea ters, including dwarf and pygmy killer whale, Risso’s dolphin, rough-toothed dolphi n, and Cuvier’s beaked whale, occurred most frequently along the upper slope in areas outside of anticyclones. I PFs that could cause impacts to

## Walter Oil & Gas Corporation Page O

- 7 Initial Exploration Plan May, 2013 Ewing Bank Block 833 (OCS-G 33706) marine mammals as a result of the proposed opera tions in Ewing Bank Block 833 include emissions, effluents, discarded trash a nd debris, and accidents.

Emissions: Noises from drilling activities, support ve ssels and helicopters may elicit a startle reaction from marine mammals. Th is reaction may lead to disrup tion of marine mammals’ normal activities. Stress may make them more vulnerable to parasites, disease, environmental contaminants, and/or predation (Majors and My rick, 1990). There is little conc lusive evidence for long-term displacements and population trends for marine mammals relative to noise.

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

Discarded trash and debris: Both entanglement in, and ingesti on of debris have caused the death or serious injury of marine mammals (Laist, 1997; MMC, 1999). The limited amount of marine debris, if any, resulting from the proposed activities is not expected to s ubstantially harm marine mammals. Operators are prohibited from de liberately discharging debris as mandated by MARPOL-Annex V and the Marine Plastic Pollution Research and Control Act, and regulations imposed by various agencies including the United States Coast Guard (USCG) and the Environmental Protection Agency (EPA).

Walter will operate in accordance with the regulations and also avoid accidental loss of solid waste items by maintaining waste management plans, mani festing trash sent to s hore, and using special precautions such as covering outside trash bins to prevent accidental loss of solid waste. Special caution will be exercised when ha ndling and disposing of small it ems and packaging materials, particularly those made of non-biod egradable, environmentally persiste nt materials such as plastic or glass.

Informational placards will be post ed on all vessels and f acilities having sleeping or food preparation capabilities. All offshore personne l, including contractor s and other support se rvices-related personnel (e.g. helicopter pilots, vessel captai ns and boat crews) will be indoctrinated on waste procedures, and will view the video (or Mi crosoft PowerPoint presentation), “Think About It” ( previously “All Washed Up: The Beach Litter Problem” ). Thereafter, all personnel will view the marine trash and debris training video annually. Of fshore personnel will also receive an explanation from Walter management or the designated lease operator management that emphasizes their commitment to waste management in accordance with NTL No. 2012-G01.

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

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- 8 Initial Exploration Plan May, 2013 Ewing Bank Block 833 (OCS-G 33706) encountered in the Gulf of Mexico OCS. Vessel crews must report si ghtings of any injured or dead protected marine mammal species immediately, regardless of whether the injury or death is caused by their vessel, to the Marine Mammal and Sea Tu rtle Stranding Hotline at (888) 404-3922, the NMFS Southeast Regional Office at (727 ) 824-5312, or the Marine Mammal Stranding Network at (305) 862- 2850. In addition, if the injury or death was cause d by a collision with a cont ract vessel, the BOEM must be notified within 24 hours of the strike by email to protectedspecies@boemre.gov . If the vessel is the responsible party, it is required to remain available to assist the respective salvage and stranding network as needed.

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

There are no other IPFs (including physical disturbances to the seafloor) from the proposed activities which could impact marine mammals.

8. Sea Turtles 

## IPFs that could cause impacts to sea turtles as a result of the proposed opera tions include emissions, effluents, discarded trash and debris, and accidents. GulfCet II studies sighted most loggerhead, Kemp’s ridley and leatherback sea turtles over shel f waters. Historically these species have been sighted up to the shelf’s e dge. They appear to be more abundant east of the Mississippi River than they are west of the river (Fritts et al., 1983b; Lo hoefener et al., 1990). Deep wa ters may be used by all species as a transitory habitat.

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

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

Discarded trash and debris: Both entanglement in, and ingestion of , debris have caused the death or serious injury of sea turt les (Balazs, 1985). The limited amount of marine debris, if any, resulting from the proposed activities is not expected to substantia lly harm sea turtles. Oper ators are prohibited from deliberately discharging debris as mandated by MARPOL-Annex V and the Marine Plastic Pollution

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- 9 Initial Exploration Plan May, 2013 Ewing Bank Block 833 (OCS-G 33706) Research and Control Act, and regulations impose d by various agencies including the United States Coast Guard (USCG) and the Environmental Prot ection Agency (EPA). Walter will operate in accordance with the regulations and also avoid acci dental loss of solid waste items by maintaining waste management plans, manifesting trash sent to shore, and using special precautions such as covering outside trash bins to prevent accidental lo ss of solid waste. Special caution will be exercised when handling and disposing of small items and pack aging materials, particularly those made of nonbiodegradable, environmentally persistent materials such as plastic or glass.

Informational placards will be post ed on all vessels and f acilities having sleeping or food preparation capabilities. All offshore personne l, including contractor s and other support se rvices-related personnel (e.g. helicopter pilots, vessel captai ns and boat crews) will be indoctrinated on waste procedures, and will view the video (or Mi crosoft PowerPoint presentation), “Think About It” ( previously “All Washed Up: The Beach Litter Problem” ). Thereafter, all personnel will view the marine trash and debris training video annually. Of fshore personnel will also receive an explanation from Walter management or the designated lease operator management that emphasizes their commitment to waste management in accordance with NTL No. 2012-G01.

Accidents: Collisions between support vessels and sea turt les would be unusual events, however should one occur, death or injury to sea turtles is possible. Contract vessel operators can avoid sea turtles and reduce potential deaths by maintaining a vigilant watch for sea turtles and maintaining a safe distance when they are sighted. Vessel crew s should use a reference guide to help identify the five species of sea turtles that may be encountere d in the Gulf of Mexico OCS. Vessel crews must report sightings of any injured or dead protected s ea turtle species immediately, regardless of whether the injury or death is caused by their vessel, to the Marine Mammal and Sea Turtle Stranding Hotline at (888) 404-3922, the NMFS Southeast Regional Office at (727) 824-5312, or the Marine Mammal Stranding Network at (305) 862-2850. In addition, if th e injury or death was caused by a collision with a contract vessel, the BOEM must be notified within 24 hour s of the strike by email to protectedspecies@boemre.gov . If the vessel is the res ponsible party, it is requi red to remain available to assist the respective salvage a nd stranding network as needed.

All sea turtle species and their life stages are vulnerable to the harmful effects of oil through direct contact or by fouling of th eir food. Exposure to oil can be fatal, pa rticularly to juveniles and hatchlings. However, it is unlikely that an accidental oil spill would occur from the proposed activities (refer to Item 5 , Water Quality). Oil spill response activities ma y increase vessel traffic in the area, which could add to the possibility of collisions with sea tu rtles. The activities proposed in this plan will be covered by Walter’s Regional Oil Sp ill Response Plan (refer to inform ation submitted in accordance with Appendix H ).

There are no other IPFs (including physical disturbances to the seafloor) from the proposed activities which could impact sea turtles.

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- 10 Initial Exploration Plan May, 2013 Ewing Bank Block 833 (OCS-G 33706) 9. Air Quality 

## Ewing Bank Block 833 is located 104 miles from the Breton Wilderness Area and 64.9 miles from shore. Applicable emissions data is included in Appendix G of the Plan.

There would be a limited degree of air quality degrad ation in the immediate vicinity of the proposed activities. Plan Emissions for the proposed activiti es do not exceed the annual exemption levels as set forth by BOEM. Accidents and blowouts can releas e hydrocarbons or chemicals, which could cause the emission of air pollutants. However, these re leases would not impact onshore air quality because of the prevailing atmospheric conditions, emission he ight, emission rates, and the distance of Ewing Bank Block 833 from the coastline. There are no other IPFs (including effluents, physical disturbances to the seafloor, wastes sent to shore for treatment or dispos al) from the proposed activities which would impact air quality.

10. Shipwreck Sites (known or potential) 

## IPFs that could impact known or unknown shipwreck sites as a result of the proposed operations in Ewing Bank Block 833 include distur bances to the seafloor and accid ents (oil spill). Ewing Bank Block 833 is located in or adjacent to an OCS block designated by BOEM as having a high probability for occurrence of shipwrecks. Walter will report to BOEM the discovery of any evidence of a shipwreck and make every reasonable effort to pres erve and protect that cultural resource. There are no other IPFs (including emissi ons, effluents, wastes sent to shore for treatment or disposal, or accidents) from the proposed activities which could impact shipwreck sites.

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

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

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

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- 11 Initial Exploration Plan May, 2013 Ewing Bank Block 833 (OCS-G 33706) 11. Prehistoric Archaeological Sites 

## IPFs that could cause impacts to pr ehistoric archaeological sites as a result of the proposed operations in Ewing Bank Block 833 are physical disturbances to the seafloor and accide nts (oil spills).

Physical Disturbances to the seafloor: Ewing Bank Block 833 is located inside the Archaeological Prehistoric high probability lines. Walter will report to BOEM the discovery of any object of prehistoric archaeological significance and make ever y reasonable effort to pr eserve and protect that cultural resource.

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

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

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

Vicinity of Offshore Location

1. Essential Fish Habitat (EFH) 

## IPFs that could cause impacts to EFH as a result of the proposed operations in Ewing Bank Block 833 include physical disturbances to the seafloor, effluents and accident s. EFH includes all estuarine and marine waters and substrates in the Gulf of Mexico.

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

Effluents: The Live Bottom Low Relief Stipulation, th e Live Bottom (Pinnacle Trend) Stipulation, and the Eastern Gulf Pinnacle Tren d Stipulation would prevent most of the potential impacts on livebottom communities and EFH from operational waste di scharges. Levels of contaminants in drilling muds and cuttings and produced-water discharges, discharge-rate restrictions, and monitoring and toxicity testing are regulated by the EPA NPDES permit, there by eliminating many significant

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- 12 Initial Exploration Plan May, 2013 Ewing Bank Block 833 (OCS-G 33706) biological or ecological effects. Operational discha rges are not expected to cause significant adverse impacts to EFH.

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

There are no other IPFs (including emissions, or wastes sent to shor e for treatment or disposal) from the proposed activities which could impact essential fish habitat.

2. Marine and Pelagic Birds 

## IPFs that could impact marine birds as a resu lt of the proposed activities include air emissions, accidental oil spills, and discarded trash a nd debris from vessel s and the facilities.

Emissions: Emissions of pollutants into the atmos phere from these activities are far below concentrations which could harm coastal and marine birds.

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

, Water Quality). Marine and pelagic birds feedi ng at the spill location ma y experience chronic, nonfatal, physiological stress. It is expected that few, if any, coas tal and marine birds would actually be affected to that extent. The activities proposed in this plan will be covered by Walter’s Regional OSRP (refer to information submitted in Appendix H ).

Discarded trash and debris : Marine and pelagic birds could become entangled and snared in discarded trash and debris, or ingest small plastic debris, which can cause permanent injuries and death. Operators are prohibited from deliberatel y discharging debris as mandated by MARPOL-Annex V and the Marine Plastic Pollution Research and Control Act, and regulat ions imposed by various agencies including the United States Coast Guard (USCG) and the Environm ental Protection Agency (EPA). Walter will operate in accordance with the regulations and also avoid accidental loss of solid waste items by maintaining waste mana gement plans, manifesting trash sent to shore, and using special precautions such as covering outside trash bins to prevent accidental loss of solid waste. Special caution will be exercised when ha ndling and disposing of small it ems and packaging materials, particularly those made of non-biod egradable, environmentally persiste nt materials such as plastic or glass. Informational placards will be posted on all vessels and facilities having sleeping or food preparation capabilities. All offshore personnel, including c ontractors and other support servicesrelated personnel (e.g. helicopter pilots, vessel captain s and boat crews) will be indoctrinated on waste procedures, and will view the video (or Microsoft PowerPoint presentation), “Think About It” ( previously “All Washed Up: The Beach Litter Problem” ). Thereafter, all personnel will view the

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- 13 Initial Exploration Plan May, 2013 Ewing Bank Block 833 (OCS-G 33706) marine trash and debris training video annually. Offshore personnel wi ll also receive an explanation from Walter management or the designated leas e operator management that emphasizes their commitment to waste management in accordance w ith NTL No. 2012-G01. Debris, if any, from these proposed activities will seldom interact with marine and pelagic bi rds; therefore, the effects will be negligible.

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

3. Public Health and Safety Due to Accidents. 

## There are no IPFs (emissions, effluent s, physical disturbances to the seafloor, wastes sent to shore for treatment or disposal or accidents, including an a ccidental H2S releases) from the proposed activities which could cause impacts to public health and safety. In accordance with NTL No.’s 2008-G04, 2009-G27, and 2009-G31, sufficient information is included in Appendix D to justify our request that our proposed activities be classified by BSEE as H 2 

## S absent.

Coastal and Onshore

1. Beaches 

## IPFs from the proposed activities th at could cause impacts to beaches include accidents (oil spills) and discarded trash and debris.

Accidents: Oil spills contacting beaches would have impacts on the use of recreational beaches and associated resources. Due to the distance from s hore (64.9 miles) and the re sponse capabilities that would be implemented, no significan t adverse impacts are expected. The activities proposed in this plan will be covered by Walter’s Regional OSRP (refer to information submitted in Appendix H ).

Discarded trash and debris: Trash on the beach is recognized as a major threat to the enjoyment and use of beaches. There will only be a limited am ount of marine debris, if any, resulting from the proposed activities. Operators ar e prohibited from deliberately di scharging debris as mandated by MARPOL-Annex V and the Marine Plastic Pollution Research and Control Act, and regulations imposed by various agencies including the United States Coast Guard (USCG) and the Environmental Protection Agency (EPA). Walter will operate in accordance with the regulations and also avoid accidental loss of solid waste items by maintaining waste management pl ans, manifesting trash sent to shore, and using special precautions such as covering outside trash bins to prevent accidental loss of solid waste. Special caution will be exercised when handling a nd disposing of small items and packaging materials, particularly those made of non-biodegradable, envi ronmentally persistent materials such as plastic or glass.

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- 14 Initial Exploration Plan May, 2013 Ewing Bank Block 833 (OCS-G 33706) Informational placards will be post ed on all vessels and f acilities having sleeping or food preparation capabilities. All offshore personne l, including contractor s and other support se rvices-related personnel (e.g. helicopter pilots, vessel captai ns and boat crews) will be indoctrinated on waste procedures, and will view the video (or Mi crosoft PowerPoint presentation), “Think About It” ( previously “All Washed Up: The Beach Litter Problem” ). Thereafter, all personnel will view the marine trash and debris training video annually. Of fshore personnel will also receive an explanation from Walter management or the designated lease operator management that emphasizes their commitment to waste management in accordance with NTL No. 2012-G01.

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

2. Wetlands 

## IPFs from the proposed activities th at could cause impacts to wetlands include accidents (oil spills) and discarded trash and debris.

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

, Water Quality). Due to the distance from shore (64.9 m iles) and the response capa bilities that would be implemented, no impacts are expected. The activities proposed in this plan will be covered by Walter’s Regional OSRP (refer to information submitted in Appendix H ).

Discarded trash and debris: There will only be a limited amo unt of marine debris, if any, resulting from the proposed activitie s. Operators are prohibited from deliberately discharging debris as mandated by MARPOL-Annex V and the Marine Plas tic Pollution Research and Control Act, and regulations imposed by various ag encies including the United States Coast Guard (USCG) and the Environmental Protection Agency (EPA). Walter will oper ate in accordance with the regulations and also avoid accidental loss of so lid waste items by maintaining waste management plans, manifesting trash sent to shore, and using special precautions such as covering outside trash bins to prevent accidental loss of solid waste. Special caution will be exercised when handling and disposing of small items and packaging materials, particularly t hose made of non-biodegradable, environmentally persistent materials such as plastic or glass.

Informational placards will be post ed on all vessels and f acilities having sleeping or food preparation capabilities. All offshore personne l, including contractor s and other support se rvices-related personnel (e.g. helicopter pilots, vessel captai ns and boat crews) will be indoctrinated on waste procedures, and will view the video (or Mi crosoft PowerPoint presentation), “Think About It” ( previously “All Washed Up: The Beach Litter Problem” ). Thereafter, all personnel will view the marine trash and debris training video annually. Of fshore personnel will also receive an explanation from Walter management or the designated lease operator management that emphasizes their commitment to waste management in accordance with NTL No. 2012-G01.

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- 15 Initial Exploration Plan May, 2013 Ewing Bank Block 833 (OCS-G 33706) There are no other IPFs (emissions, e ffluents, physical disturbances to the seafloor, or wastes sent to shore for treatment or disposal) from the pr oposed activities which could impact wetlands.

3. Shore Birds and Coastal Nesting Birds



## Accidents: Oil spills could cause impacts to shore birds and coastal nesting birds. However, it is unlikely that an oil spill would occur fr om the proposed activities (refer to Item 5 , Water Quality). Given the distance from shore (64.9 miles) and the response capabilities that would be implemented, no impacts are expected. The activities proposed in this plan will be covered by Walter’s Regional OSRP (refer to information submitted in Appendix H ).

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

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

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

4. Coastal Wildlife Refuges



## Accidents: An accidental oil spill from the proposed act ivities could cause impacts to coastal wildlife refuges. However, it is unlikely th at an oil spill would occur from th e proposed activities (refer to Item 5, Water Quality). Due to the distance from shore (64.9 miles) and the respons e capabilities that would be implemented, no impacts are expected. The activ ities proposed in this plan will be covered by Walter’s Regional OSRP (refer to information submitted in Appendix H ).

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- 16 Initial Exploration Plan May, 2013 Ewing Bank Block 833 (OCS-G 33706) Discarded trash and debris: Operators are prohibited from de liberately discharging debris as mandated by MARPOL-Annex V, the Marine Plas tic Pollution Research and Control Act and regulations imposed by various ag encies including the United States Coast Guard (USCG) and the Environmental Protection Agency (EPA). Walter w ill operate in accordance with the regulations and also avoid accidental loss of so lid waste items by maintaining waste management plans, manifesting trash sent to shore, and using special precautions such as covering outside trash bins to prevent accidental loss of solid waste. Special caution will be exercised when handli ng and disposing of small items and packaging materials, particularly t hose made of non-biodegradable, environmentally persistent materials such as plastic or glass.

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

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

5. Wilderness Areas



## Accidents: An accidental oil spill from the proposed ac tivities could cause impacts to wilderness areas. However, it is unlikely that an oil spill would occur from th e proposed activities (refer to Item 5 , Water Quality). Due to the distance from the n earest designated Wilderne ss Area (104 miles) and the response capabilities th at would be implemented, no significant adverse impacts are expected. The activities proposed in this plan will be covere d by Walter’s Regional OSRP (refer to information submitted in Appendix H).

Discarded trash and debris: Operators are prohibited from de liberately discharging debris as mandated by MARPOL-Annex V, the Marine Plas tic Pollution Research and Control Act and regulations imposed by various ag encies including the United States Coast Guard (USCG) and the Environmental Protection Agency (EPA). Walter w ill operate in accordance with the regulations and also avoid accidental loss of so lid waste items by maintaining waste management plans, manifesting trash sent to shore, and using special precautions such as covering outside trash bins to prevent accidental loss of solid waste. Special caution will be exercised when handli ng and disposing of small items and packaging materials, particularly t hose made of non-biodegradable, environmentally persistent materials such as plastic or glass.

Informational placards will be posted on vessels and every facility that has sleeping or food preparation capabilities. All offshore personnel, including contractors and other support services-

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- 17 Initial Exploration Plan May, 2013 Ewing Bank Block 833 (OCS-G 33706) related personnel (e.g. helicopter pilots, vessel captain s and boat crews) will be indoctrinated on waste procedures, and will view the video (or Microsoft PowerPoint presentation), “Think About It” ( previously “All Washed Up: The Beach Litter Problem” ). Thereafter, all personnel will view the marine trash and debris training video annually. Offshore personnel wi ll also receive an explanation from Walter management or the designated leas e operator management that emphasizes their commitment to waste management in accordance with NTL No. 2012-G01.

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

areas.

6. Other Environmental Resources Identified 

## There are no other environmental resources identified for this impact assessment.

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

(D) ENVIRONMENTAL HAZARDS During the hurricane season, June through November, the Gulf of Mexico is imp acted by an average of ten tropical storms (39-73 mph wind s), of which six become hurricanes ( > 74 mph winds). Due to its location in the gulf, Ewing Bank Block 833 may expe rience hurricane and trop ical storm force winds, and related sea currents. These factors can adversel y impact the integrity of the operations covered by this plan. A significant storm may present physical hazards to operators and vessels, damage exploration or production equipment, or result in the release of hazardous materials (including hydrocarbons). Additionally, the displacement of equi pment may disrupt the local benthic habitat and pose a threat to local species.

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

1. Drilling & completion

a. Secure well b. Secure rig / platform

c. Evacuate personnel

Drilling activities will be conducted in acco rdance with NTL No.’s 2008-G09, 2009-G10, and 2010- N10 .

2. Structure Installation Operator will not conduct structure instal lation operations duri ng Tropical Storm or Hurricane threat.

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- 18 Initial Exploration Plan May, 2013 Ewing Bank Block 833 (OCS-G 33706) (E) ALTERNATIVES
No alternatives to the proposed activities were cons idered to reduce environmental impacts.

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

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

(H) PREPARER(S)

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

(I) REFERENCES

Authors:

American Petroleum Institute (API). 1989. Effects of offshore petroleum ope rations on cold water marine mammals: a literature re view. Washington, DC: American Petroleum Institute. 385 pp.

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

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

Daly, J.M. 1997. Controlling the discharge of syntheti c-based drilling fluid contaminated cuttings in waters of the United States. U.S. Environmental Protection Agency, Office of Water. Work Plan, June 24, 1997.

Hansen, D.J. 198l. The relative sensitivity of seabird populations in Alaska to oil pollution. U.S. Dept. of the Interior, Bureau of Land Management, Alaska OCS Region, Anc horage. BLM-YK-ES-81- 006-1792.

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- 19 Initial Exploration Plan May, 2013 Ewing Bank Block 833 (OCS-G 33706) Laist, D.W. 1997. Impacts of marine debris: entanglem ent of marine life in marine debris including a comprehensive list of species with entanglement a nd ingestion records. In : Coe, J.M. and D.B. Rogers, eds. Marine debris: sources, impacts, and solutions. New Yor k, NY: Springer-Verlag. Pp. 99-139.

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

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

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

Vauk , G., E. Hartwig, B. Reineking, and E. Vauk- Hentzelt. 1989. Losses of seabirds by oil pollution at the German North Sea coast. Topics in Marine Biology. Ros, J.D, ed. Scient. Mar. 53 (2-3): 749- 754.

Vermeer, K. and R. Vermeer, 1975 Oil threat to bi rds on the Canadian west coast. The Canadian Field-Naturalist. 89:278-298.

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

• Hazard Surveys

• BOEM EIS’s:

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

o GOM Central and Western Planning Areas Sa les 166 and 168 Final Environmental Impact Statement. MMS 96-0058.

## Walter Oil & Gas Corporation Page P

- 1 Initial Exploration Plan May, 2013 Ewing Bank Block 833 (OCS-G 33706) APPENDIX P ADMINISTRATIVE INFORMATION

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

(B) BIBLIOGRAPHY 1. Gardline Geohazard Assessment and Well Clearance Letters.