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-09667

Type - Initial Exploration Plan

Lease(s) - OCS-G22367 Block - 736 Keathley Canyon Area

OCS-G25801 Block - 692 Keathley Canyon Area

Operator - Chevron U.S.A. Inc.

Subsea Wells A, B, C, D, E, and F

DRILLSHIP

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.

Michelle Griffitt

Plan Coordinator

Description -

Rig Type -

Subject:

From:

November 5, 2012


PUBLIC INFORMATION

INITIAL EXPLORATION PLAN

CHEVRON U.S.A. INC.

KEATHLEY CANYON BLOCK 692

OCS-G 25801

OFFSHORE LOUISIANA 

“MOCCASIN” PROSPECT

RECORD CHANGE LOG

Submission 

Type

Date Received Document Type Page Number(s)

Initial 9/18/2012 Initial Exploration Plan 1-194

Amended 9/27/2012 Oil Spills Information Section: Updated 

date of submittal of biannual Regional 

OSRP

Environmental Mitigation Measures

Section: Corrected NTL numbers 

referenced under Incidental Takes

88

114
September 14, 2012 PUBLIC INFORMATION

INITIAL EXPLORATION PLAN

CHEVRON U.S.A. INC.

KEATHLEY CANYON BLOCK 692

OCS-G 25801

OFFSHORE LOUISIANA 

“MOCCASIN” PROSPECT

SECTION A PLAN CONTENTS 

SECTION B GENERAL INFORMATION 

SECTION C GEOLOGICAL AND GEOPHYSICAL INFORMATION

SECTION D HYDROGEN SULFIDE (H2S) INFORMATION

SECTION E BIOLOGICAL, PHYSICAL, AND SOCIOECONOMIC INFORMATION

SECTION F WASTE AND DISCHARGE INFORMATION

SECTION G AIR EMISSIONS INFORMATION

SECTION H OIL SPILLS INFORMATION

SECTION I ENVIRONMENTAL MONITORING INFORMATION

SECTION J LEASE STIPULATIONS INFORMATION

SECTION K ENVIRONMENTAL MITIGATION MEASURES INFORMATION

SECTION L SUPPORT VESSELS AND AIRCRAFT INFORMATION

SECTION M ONSHORE SUPPORT FACILITIES INFORMATION

SECTION N COASTAL ZONE MANAGEMENT ACT (CZMA) INFORMATION

SECTION O ENVIRONMENTAL IMPACT ANALYSIS (EIA)

SECTION P ADMINISTRATIVE INFORMATION 

APPENDIX A ENVIRONMENTAL IMPACT ANALYSIS 

APPENDIX B SUPPLEMENTAL WORST CASE DISCHARGE INFORMATION

1
Chevron U.S.A. Inc. Initial Exploration Plan 

Keathley Canyon Block 692 Public Information

SECTION A PLAN CONTENTS

(a) PLAN INFORMATION FORM

Included as attachment A-1 at the end of this section is Form BOEM-0137 “OCS Plan Information Form”.

Chevron U.S.A. Inc (Chevron) is the designated operator of this lease. Chevron plans to use a Subsea BOP in the 

drilling of the wells proposed in this plan.

This Initial EP (EP) describes the proposed activities for Keathley Canyon Block 692. 

Proposed Schedule

Proposed Activity Estimated Start 

Date

Estimated End 

Date

Estimated 

No. of Days

Drill, complete, test and abandon well KC 692 A 04/01/2013 08/28/2013 150

Drill, complete, test and abandon well KC 692 B 08/29/2013 01/25/2014 150

Drill, complete, test and abandon well KC 692 C 01/26/2014 06/24/2014 150

Drill, complete, test and abandon well KC 692 D 06/25/2014 11/21/2014 150

Drill, complete, test and abandon well KC 692 E 11/22/2014 04/20/2015 150

Drill, complete, test and abandon well KC 692 F 04/21/2015 09/17/2015 150

(b) LOCATION / BATHYMETRY MAP

Included as attachment A-2 are location/bathymetry maps at a scale of 1”=2,000’, showing the surface locations for 

the proposed wells.

(c) SAFETY and POLLUTION PREVENTION FEATURES 

Chevron plans to use a dynamically positioned drillship to drill and complete the wells proposed in this plan. The 

wells will be drilled using a Subsea BOP system. Rig specifications will be provided with the Applications for Permit 

to Drill. If another rig type is used, any differences regarding air emissions, safety, drilling or pollution control 

equipment will be addressed in a revised Exploration Plan. 

In accordance with 30 CFR 250.406, safety features will include well control, pollution prevention, welding procedure, 

and blowout prevention equipment and as further clarified by Bureau of Ocean Energy Management (BOEM) Notices 

to Lessees (NTL’s) and current policy making invoked by the BOEM.

The rig will be monitored daily by a Chevron drilling representative and any waste or fuel resulting in pollution of the 

Gulf waters will be reported to the representative in charge for immediate isolation and correction of the problem. 

Any spill will be reported to governmental agencies. Chevron will comply with all BOEM Regulations during the 

course of the activities. 

The rig is equipped with safety, fire fighting, and lifesaving equipment required for compliance with USCG, ABS, 

SOLAS, and IMO code requirements. 

Chevron will comply with all pertinent regulations in 30 CFR 250.203, NTL’s, and all applicable federal and state 

requirements. Chevron will maintain compliance with the EPA NPDES Permit and lease agreement during these 

proposed activities.

2
Chevron U.S.A. Inc. Initial Exploration Plan 

Keathley Canyon Block 692 Public Information

(d) TABLE of STORAGE TANKS and PRODUCTION VESSELS

Information regarding the storage tanks that will be used to conduct the proposed activities in this plan that will store 

oil, as defined at 30 CFR 254.6, is provided in the table below. Only those tanks with a capacity of 25 barrels or 

more are included.

Storage Tank Facility Type Tank Capacity

(bbls)

Tanks

(no.)

Total Capacity

(bbls)

Fluid Gravity

(API)

Main Fuel Oil

Drillship

18,000 2 36,000

No. 2 diesel

Diesel Settling 837 2 1,674

Diesel Day 837 2 1,674

Emergency Diesel 100 1 100

Diesel Overflow 823 1 823

Diesel Oil Drain Aft 42 1 42

Engine Oil Storage 182 1 182 26.2

Gear Oil Aft 62 1 62 27

Gear Oil Fwd 176 1 176 27

Hydraulic Oil Aft 84 1 84 31

Hydraulic Oil Fwd 87 1 87 31

(f) MEASURES to PREVENT DISCHARGE of OILS and GREASES DURING RAINFALL and ROUTINE 

OPERATIONS

The drillship is equipped with a comprehensive network of piping, drains and scuppers to minimize the risk that no 

pollutants are discharged into the marine environment.

All drains and drain material are collected in various holding tanks and located in the ship and then processed by the 

oily water separator systems. Clean water, either from the hazardous or nonhazardous sources, may be directed 

overboard according to regulatory requirements if the effluent discharge is within the environmental limits. Any 

remaining sludge and oil are directed to the necessary holding tanks for proper disposal according to regulatory 

requirements.

(g) ADDITIONAL SAFETY, POLLUTION PREVENTION, and EARLY SPILL DETECTION MEASURES BEYOND 

THOSE REQUIRED IN 30 CFR 250

In addition to pollution prevention measures utilized by Chevron, the drill ship has a comprehensive, proactive plan to 

address emergency situations that could result in an unanticipated oil/chemical release. The “Shipboard Oil Pollution 

Emergency Plan” has specific checklists and procedures to address accidental releases due to fuel/oil transfer, tank 

overflow, hull leakage, fire, explosion, collision and grounding. This plan is reviewed annually and oil pollution 

prevention drills are conducted as specified by MARPOL regulations. There is a fully stocked environmental 

equipment locker located on the main deck, forward of the Moon-pool and numerous spill kits located throughout the 

main deck. The decks of the drillship are fully contained, a comprehensive scupper management plan in place, and 

any spills on the deck would be immediately cleaned up using absorbents or permitted solvents. 

ATTACHMENTS TO SECTION A

• A-1- Form BOEM-0137 “OCS Plan Information Form” 

• A-2- Location/Bathymetry Plats, Scale: 1”=2,000’

3
U.S. Department of the Interior OMB Control Number: 1010-0151

Bureau of Ocean Energy Management OMB Approval Expires: 12/31/14

OCS PLAN INFORMATION FORM 

General Information 

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

Company Name: BOEM Operator Number: 

Address: Contact Person:

Phone Number:

E-Mail Address: 

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

Project and Worst Case Discharge (WCD) Information

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

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

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

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

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

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

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

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

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

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

Proposed Activity Start Date End Date No. of Days 

Exploration drilling 

Development drilling 

Well completion 

Well test flaring (for more than 48 hours) 

Installation or modification of structure 

Installation of production facilities 

Installation of subsea wellheads and/or manifolds 

Installation of lease term pipelines 

Commence production 

Other (Specify and attach description) 

Description of Drilling Rig Description of Structure 

Jackup Drillship Caisson Tension leg platform

Gorilla Jackup Platform rig Fixed platform Compliant tower 

Semisubmersible Submersible Spar Guyed tower

DP Semisubmersible Other (Attach Description) 

Drilling Rig Name (If Known): 

Floating production 

system 

Other (Attach Description) 

Description of Lease Term Pipelines 

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

Form BOEM- 0137 (December 2011- Supersedes all previous editions of this form which may not be used.) Page 1 of 4

X

Chevron U.S.A. Inc. 00078

Philip Von Dullen

1500 Louisiana Street 832-854-3644

Houston, Texas 77002 pvondullen@chevron.com

$17,200 25UAB6K

OCS G-25801 KC 692 Moccasin

X X Leeville, LA

KC 692 A 20,790,700 bbls 32.4

209 127,083 bopd

X

X

X

X

04/01/2013 09/17/2015 900

X

4
OCS PLAN INFORMATION FORM (CONTINUED)

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

Proposed Well/Structure Location

Well or Structure Name/Number (If renaming well or 

structure, reference previous name): 

Previously reviewed under an approved EP or 

DOCD? 

Yes No 

Is this an existing well 

or structure? 

Yes No If this is an existing well or structure, list the 

Complex ID or API No. 

Do you plan to use a subsea BOP or a surface BOP on a floating facility to conduct your proposed activities? Yes No 

WCD info For wells, volume of uncontrolled 

blowout (Bbls/day): 

For structures, volume of all storage and 

pipelines (Bbls):

API Gravity of 

fluid

Surface Location Bottom-Hole Location (For Wells) Completion (For multiple completions, 

enter separate lines) 

Lease No. OCS OCS OCS

OCS

Area Name 

Block No. 

Blockline

Departures 

(in feet)

N/S Departure: F____ L N/S Departure: F____ L N/S Departure: F____ L

N/S Departure: F____ L 

N/S Departure: F____ L 

E/W Departure: F____ L E/W Departure: F____ L E/W Departure: F____ L 

E/W Departure: F____ L 

E/W Departure: F____ L 

Lambert XY

coordinates 

X: X: X: 

X:

X:

Y: Y: Y:

Y:

Y:

Latitude/

Longitude

Latitude Latitude Latitude 

Latitude

Latitude

Longitude Longitude Longitude 

Longitude

Longitude

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

Anchor Radius (if applicable) in feet: 

MD (Feet): 

MD (Feet): 

MD (Feet): 

TVD (Feet): 

TVD (Feet): 

TVD (Feet): 

Anchor Locations for Drilling Rig or Construction Barge (If anchor radius supplied above, not necessary) 

Anchor Name 

 or No. 

Area Block X Coordinate Y Coordinate Length of Anchor Chain on Seafloor 

X = Y = 

X = Y = 

X = Y = 

X = Y = 

X = Y = 

X = Y = 

X = Y = 

X = Y = 

Form BOEM- 0137 (December 2011- Supersedes all previous editions of this form which may not be used.) Page 2 of 4

KC 692 A (KC 736 A3) X

X

X

32.4

G-22367

KC

736

N

1242

E

7035

1846245

9534438

N 26 16' 29.1941"

W 92 22' 18.0157"

7044

NA

127,083

5
OCS PLAN INFORMATION FORM (CONTINUED)

Provide the following information for the well with the highest Worst Case Discharge volume: 

Worst Case Discharge (WCD) Well Information 

WCD Well 

Name

Surface Lease Surface 

Area/Block 

Bottom Lease Bottom 

Area/Block 

Product Type MD TVD

Analog Well(s) 

Area/Block OCS Lease Well No. API No. 

Geologic Data for WCD

Open Hole Interval for WCD 

Top (TVD in feet) Base (TVD in feet) 

Sand 1 Sand 2 Sand 3 Sand 4 Sand 5 

Formation Data 

Sand Name

Estimated Top TVD

Estimated Base TVD

Estimated Net Sand Height MD 

(Net Pay if hydrocarbon) 

Estimated Net Sand Height 

TVT (Net Pay if hydrocarbon) 

Fluid Type 

Used in WCD? (Yes/No) 

Seismic Survey Used 

Engineering Data for WCD

WCD Engineering Items 

WCD (STB/Day) 

WCD Calculated at Mudline Yes No Atmosphere Yes No

Flow Correlation 

Outlet Pressure (Psia) 

Gas Turbulence Factor 

Software Model Used 

Sand 1 Sand 2 Sand 3 Sand 4 Sand 5 

Formation Data 

Sand Name

Permeability (mD) 

Initial Pressure (PSIA)

Form BOEM- 0137 (December 2011- Supersedes all previous editions of this form which may not be used.) Page 3 of 4 

127,083

x x

6
OCS PLAN INFORMATION FORM (CONTINUED)

Sand 1 Sand 2 Sand 3 Sand 4 Sand 5 

Formation Data 

Reservoir Temperature (F)

Porosity (0.00)

Water Saturation (0.00)

Rock Compressibility 

(microsips)

Water Salinity (ppm) 

Drive Mechanism 

Drainage Area (acres) 

Oil Reservoir Data 

Bubble Point Pressure (PSIA) 

Initial Bo (RB/STB)

Bo (RB/STB) @ Bubble Point 

Rsi (SCF/STB)

Initial Oil Viscosity (Cp) 

Oil Viscosity (CP) @ Bubble 

Point

Oil Compressibility (1/PSIA)

Oil API Gravity (API) 

Specific Gas Gravity (0.00) 

Gas Reservoir Data 

Condensate API Gravity (API) 

Specific Gas Gravity (0.00) 

Yield (STB/MMCF)

Source of Permeability Used 

Permeability from MDT 

Permeability from Core Analysis Percussion core Rotary sidewall core Conventional core 

Pressure Transient Analysis 

Permeability from CMR or NMR log 

analysis 

Permeability from other source 

Provide Model Input Values for Relative Permeability: 

Residual Oil to Gas fraction (=1-Slc-Swc) 

Residual Oil to Water fraction (=Soc) 

Critical Gas fraction (Sgc, Gas/Oil-Water Systems) 

Residual Gas to Water fraction (Sgc, Gas/Gas-Water Systems) 

Kro Oil Curve Endpoint (fraction of absolute permeability) 

Krg Gas Curve Endpoint (fraction of absolute permeability) 

Krw Water Curve Endpoint (fraction of absolute permeability) 

Paperwork Reduction Act of 1995 Statement: The Paperwork Reduction Act of 1995 (44 U.S.C. 2501 et seq.) requires us to 

inform you that BOEM collects this information as part of an applicant’s Exploration Plan or Development Operations 

Coordination Document submitted for BOEM approval. We use the information to facilitate our review and data entry for OCS 

plans. We will protect proprietary data according to the Freedom of Information Act and 30 CFR 550.197. An agency may not 

conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently valid Office 

of Management and Budget Control Number. Responses are mandatory (43 U.S.C. 1334). The public reporting burden for this 

form is included in the burden for preparing Exploration Plans and Development Operations Coordination Documents. We 

estimate that burden to average 600 hours with an accompanying EP, or 700 hours with an accompanying DPP or DOCD, including 

the time for reviewing instructions, gathering and maintaining data, and completing and reviewing the forms associated with 

subpart B. Direct comments regarding the burden estimate or any other aspect of this form to the Information Collection Clearance

Officer, Bureau of Ocean Energy Management, 381 Elden Street, Herndon, VA 20170.

Form BOEM- 0137 (December 2011- Supersedes all previous editions of this form which may not be used.) Page 4 of 4

7
OCS PLAN INFORMATION FORM (CONTINUED)

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

Proposed Well/Structure Location

Well or Structure Name/Number (If renaming well or 

structure, reference previous name): 

Previously reviewed under an approved EP or 

DOCD? 

Yes No 

Is this an existing well 

or structure? 

Yes No If this is an existing well or structure, list the 

Complex ID or API No. 

Do you plan to use a subsea BOP or a surface BOP on a floating facility to conduct your proposed activities? Yes No 

WCD info For wells, volume of uncontrolled 

blowout (Bbls/day): 

For structures, volume of all storage and 

pipelines (Bbls):

API Gravity of 

fluid

Surface Location Bottom-Hole Location (For Wells) Completion (For multiple completions, 

enter separate lines) 

Lease No. OCS OCS OCS

OCS

Area Name 

Block No. 

Blockline

Departures 

(in feet)

N/S Departure: F____ L N/S Departure: F____ L N/S Departure: F____ L

N/S Departure: F____ L 

N/S Departure: F____ L 

E/W Departure: F____ L E/W Departure: F____ L E/W Departure: F____ L 

E/W Departure: F____ L 

E/W Departure: F____ L 

Lambert XY

coordinates 

X: X: X: 

X:

X:

Y: Y: Y:

Y:

Y:

Latitude/

Longitude

Latitude Latitude Latitude 

Latitude

Latitude

Longitude Longitude Longitude 

Longitude

Longitude

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

Anchor Radius (if applicable) in feet: 

MD (Feet): 

MD (Feet): 

MD (Feet): 

TVD (Feet): 

TVD (Feet): 

TVD (Feet): 

Anchor Locations for Drilling Rig or Construction Barge (If anchor radius supplied above, not necessary) 

Anchor Name 

 or No. 

Area Block X Coordinate Y Coordinate Length of Anchor Chain on Seafloor 

X = Y = 

X = Y = 

X = Y = 

X = Y = 

X = Y = 

X = Y = 

X = Y = 

X = Y = 

Form BOEM- 0137 (December 2011- Supersedes all previous editions of this form which may not be used.) Page 2 of 4

KC 692 B X

X

X

G-25801

KC

692

S

4825

E

3976

1849304

9540505

N 26 17' 29.1560"

W 92 21' 44.0713"

7125

NA

8
OCS PLAN INFORMATION FORM (CONTINUED)

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

Proposed Well/Structure Location

Well or Structure Name/Number (If renaming well or 

structure, reference previous name): 

Previously reviewed under an approved EP or 

DOCD? 

Yes No 

Is this an existing well 

or structure? 

Yes No If this is an existing well or structure, list the 

Complex ID or API No. 

Do you plan to use a subsea BOP or a surface BOP on a floating facility to conduct your proposed activities? Yes No 

WCD info For wells, volume of uncontrolled 

blowout (Bbls/day): 

For structures, volume of all storage and 

pipelines (Bbls):

API Gravity of 

fluid

Surface Location Bottom-Hole Location (For Wells) Completion (For multiple completions, 

enter separate lines) 

Lease No. OCS OCS OCS

OCS

Area Name 

Block No. 

Blockline

Departures 

(in feet)

N/S Departure: F____ L N/S Departure: F____ L N/S Departure: F____ L

N/S Departure: F____ L 

N/S Departure: F____ L 

E/W Departure: F____ L E/W Departure: F____ L E/W Departure: F____ L 

E/W Departure: F____ L 

E/W Departure: F____ L 

Lambert XY

coordinates 

X: X: X: 

X:

X:

Y: Y: Y:

Y:

Y:

Latitude/

Longitude

Latitude Latitude Latitude 

Latitude

Latitude

Longitude Longitude Longitude 

Longitude

Longitude

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

Anchor Radius (if applicable) in feet: 

MD (Feet): 

MD (Feet): 

MD (Feet): 

TVD (Feet): 

TVD (Feet): 

TVD (Feet): 

Anchor Locations for Drilling Rig or Construction Barge (If anchor radius supplied above, not necessary) 

Anchor Name 

 or No. 

Area Block X Coordinate Y Coordinate Length of Anchor Chain on Seafloor 

X = Y = 

X = Y = 

X = Y = 

X = Y = 

X = Y = 

X = Y = 

X = Y = 

X = Y = 

Form BOEM- 0137 (December 2011- Supersedes all previous editions of this form which may not be used.) Page 2 of 4

KC 692 C X

X

X

G-25801

KC

692

S

5976

E

7333

1845947

9541656

N 26 17' 40.7224"

W 92 22' 20.9057"

6710

NA

9
OCS PLAN INFORMATION FORM (CONTINUED)

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

Proposed Well/Structure Location

Well or Structure Name/Number (If renaming well or 

structure, reference previous name): 

Previously reviewed under an approved EP or 

DOCD? 

Yes No 

Is this an existing well 

or structure? 

Yes No If this is an existing well or structure, list the 

Complex ID or API No. 

Do you plan to use a subsea BOP or a surface BOP on a floating facility to conduct your proposed activities? Yes No 

WCD info For wells, volume of uncontrolled 

blowout (Bbls/day): 

For structures, volume of all storage and 

pipelines (Bbls):

API Gravity of 

fluid

Surface Location Bottom-Hole Location (For Wells) Completion (For multiple completions, 

enter separate lines) 

Lease No. OCS OCS OCS

OCS

Area Name 

Block No. 

Blockline

Departures 

(in feet)

N/S Departure: F____ L N/S Departure: F____ L N/S Departure: F____ L

N/S Departure: F____ L 

N/S Departure: F____ L 

E/W Departure: F____ L E/W Departure: F____ L E/W Departure: F____ L 

E/W Departure: F____ L 

E/W Departure: F____ L 

Lambert XY

coordinates 

X: X: X: 

X:

X:

Y: Y: Y:

Y:

Y:

Latitude/

Longitude

Latitude Latitude Latitude 

Latitude

Latitude

Longitude Longitude Longitude 

Longitude

Longitude

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

Anchor Radius (if applicable) in feet: 

MD (Feet): 

MD (Feet): 

MD (Feet): 

TVD (Feet): 

TVD (Feet): 

TVD (Feet): 

Anchor Locations for Drilling Rig or Construction Barge (If anchor radius supplied above, not necessary) 

Anchor Name 

 or No. 

Area Block X Coordinate Y Coordinate Length of Anchor Chain on Seafloor 

X = Y = 

X = Y = 

X = Y = 

X = Y = 

X = Y = 

X = Y = 

X = Y = 

X = Y = 

Form BOEM- 0137 (December 2011- Supersedes all previous editions of this form which may not be used.) Page 2 of 4

KC 692 D X

X

X

G-25801

KC

692

S

3896

E

5237

1848043

9539576

N 26 17' 20.0131"

W 92 21' 57.9806"

6848

NA

10
OCS PLAN INFORMATION FORM (CONTINUED)

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

Proposed Well/Structure Location

Well or Structure Name/Number (If renaming well or 

structure, reference previous name): 

Previously reviewed under an approved EP or 

DOCD? 

Yes No 

Is this an existing well 

or structure? 

Yes No If this is an existing well or structure, list the 

Complex ID or API No. 

Do you plan to use a subsea BOP or a surface BOP on a floating facility to conduct your proposed activities? Yes No 

WCD info For wells, volume of uncontrolled 

blowout (Bbls/day): 

For structures, volume of all storage and 

pipelines (Bbls):

API Gravity of 

fluid

Surface Location Bottom-Hole Location (For Wells) Completion (For multiple completions, 

enter separate lines) 

Lease No. OCS OCS OCS

OCS

Area Name 

Block No. 

Blockline

Departures 

(in feet)

N/S Departure: F____ L N/S Departure: F____ L N/S Departure: F____ L

N/S Departure: F____ L 

N/S Departure: F____ L 

E/W Departure: F____ L E/W Departure: F____ L E/W Departure: F____ L 

E/W Departure: F____ L 

E/W Departure: F____ L 

Lambert XY

coordinates 

X: X: X: 

X:

X:

Y: Y: Y:

Y:

Y:

Latitude/

Longitude

Latitude Latitude Latitude 

Latitude

Latitude

Longitude Longitude Longitude 

Longitude

Longitude

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

Anchor Radius (if applicable) in feet: 

MD (Feet): 

MD (Feet): 

MD (Feet): 

TVD (Feet): 

TVD (Feet): 

TVD (Feet): 

Anchor Locations for Drilling Rig or Construction Barge (If anchor radius supplied above, not necessary) 

Anchor Name 

 or No. 

Area Block X Coordinate Y Coordinate Length of Anchor Chain on Seafloor 

X = Y = 

X = Y = 

X = Y = 

X = Y = 

X = Y = 

X = Y = 

X = Y = 

X = Y = 

Form BOEM- 0137 (December 2011- Supersedes all previous editions of this form which may not be used.) Page 2 of 4

KC 692 E X

X

X

G-25801

KC

692

S

3475

E

2868

1850412

9539155

N 26 17' 15.7263"

W 92 21' 31.9672"

7251

NA

11
OCS PLAN INFORMATION FORM (CONTINUED)

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

Proposed Well/Structure Location

Well or Structure Name/Number (If renaming well or 

structure, reference previous name): 

Previously reviewed under an approved EP or 

DOCD? 

Yes No 

Is this an existing well 

or structure? 

Yes No If this is an existing well or structure, list the 

Complex ID or API No. 

Do you plan to use a subsea BOP or a surface BOP on a floating facility to conduct your proposed activities? Yes No 

WCD info For wells, volume of uncontrolled 

blowout (Bbls/day): 

For structures, volume of all storage and 

pipelines (Bbls):

API Gravity of 

fluid

Surface Location Bottom-Hole Location (For Wells) Completion (For multiple completions, 

enter separate lines) 

Lease No. OCS OCS OCS

OCS

Area Name 

Block No. 

Blockline

Departures 

(in feet)

N/S Departure: F____ L N/S Departure: F____ L N/S Departure: F____ L

N/S Departure: F____ L 

N/S Departure: F____ L 

E/W Departure: F____ L E/W Departure: F____ L E/W Departure: F____ L 

E/W Departure: F____ L 

E/W Departure: F____ L 

Lambert XY

coordinates 

X: X: X: 

X:

X:

Y: Y: Y:

Y:

Y:

Latitude/

Longitude

Latitude Latitude Latitude 

Latitude

Latitude

Longitude Longitude Longitude 

Longitude

Longitude

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

Anchor Radius (if applicable) in feet: 

MD (Feet): 

MD (Feet): 

MD (Feet): 

TVD (Feet): 

TVD (Feet): 

TVD (Feet): 

Anchor Locations for Drilling Rig or Construction Barge (If anchor radius supplied above, not necessary) 

Anchor Name 

 or No. 

Area Block X Coordinate Y Coordinate Length of Anchor Chain on Seafloor 

X = Y = 

X = Y = 

X = Y = 

X = Y = 

X = Y = 

X = Y = 

X = Y = 

X = Y = 

Form BOEM- 0137 (December 2011- Supersedes all previous editions of this form which may not be used.) Page 2 of 4

KC 692 F X

X

X

G-25801

KC

692

S

2400

E

1978

1851302

9538080

N 26 17' 05.0317"

W 92 21' 22.2446"

7386

NA

12
X Y Latitude Longitude

KC 736 A3 1838108 9529644 N 26° 15’ 42.0797” W 92° 23’ 47.6801” 6036 FNL 668 FWL

Well Block Calls (ft)

Designation 

and Block

Cartesian Coordinates 

UTM Zone 15 (ft)

Geographic Coordinates

C1866, NAD 1927

(deg., min., sec.)

13
X Y Latitude Longitude

KC 692 B 1849304 9540505 N 26° 17’ 29.1560” W 92° 21’ 44.0713” 4825 FSL 3976 FEL

KC 692 C 1845947 9541656 N 26° 17’ 40.7224” W 92° 22’ 20.9057” 5976 FSL 7333 FEL

KC 692 D 1848043 9539576 N 26° 17’ 20.0131” W 92° 21’ 57.9806” 3896 FSL 5237 FEL

KC 692 E 1850412 9539155 N 26° 17’ 15.7263” W 92° 21’ 31.9672” 3475 FSL 2868 FEL

KC 692 F 1851302 9538080 N 26° 17’ 05.0317” W 92° 21’ 22.2446” 2400 FSL 1978 FEL

Well Block Calls (ft)

Designation 

and Block

Cartesian Coordinates 

UTM Zone 15 (ft)

Geographic Coordinates

C1866, NAD 1927

(deg., min., sec.)

14
Chevron U.S.A. Inc. Initial Exploration Plan 

Keathley Canyon Block 692 Public Information

SECTION B GENERAL INFORMATION

(a) APPLICATIONS AND PERMITS

In the table below, information is provided on the filing or approval status of the Federal, State, and local application 

approvals or permits that must be obtained to conduct the proposed activities. Only those individual or site-specific 

application approvals that must be obtained are listed.

Application/Permit Issuing Agency Status

NPDES Permit EPA Approved

EEP U.S. Coast Guard To be submitted

APD BSEE To be submitted

 

(b) DRILLING FLUIDS

(1) Information on the types (including chemical constituents) and amounts of the drilling fluids planned for use in 

drilling the proposed wells:

Type of Drilling Fluid Est. Volume of Drilling Fluid

(bbls/well)

Water based (seawater, brine, freshwater) 101,697

Synthetic based (internal olefin, ester) 21,000

Oil based (diesel, mineral oil) 0

(2) Major Components of Synthetic-based drilling fluid listed above:

Product Name Amount to be Used Reference Number MSDS No.

Lime (Calcium Hydroxide) 2,700 50-lb bags CAS # 1302-78-9 10046

Calcium Chloride 26,200 50-lb bags CAS # 10043-52-4 10109

VG Plus 1,000 50-lb bags CAS # 68153-30-0 10128

VG Supreme 500 50-lb bags CAS # 14808-60-7 12207

Rheflat 7,000 gals CAS # 68855-60-7 12246

Rhethik 4,000 gals CAS # 111-46-6 12247

Rheduce 1,500 gals 12248

Suremul 32,000 gals CAS#111-76-2,112-34-5 12243

Surewet 11,000 gals CAS # 112-80-1 12245

M-I BAR 4,500 tons CAS # 7727-43-7 10617

Synthetic B 15,700 bbls 12269

G Seal Plus 2,000 50-lb bags CAS # 7782-42-5 10391

Safe Carb 8,000 50-lb bags CAS # 471-34-1 10337

(e) NEW OR UNUSUAL TECHNOLOGY

No new or unusual technology will be used to carry out the activities proposed in this plan.

15
Chevron U.S.A. Inc. Initial Exploration Plan 

Keathley Canyon Block 692 Public Information

(f) BONDING STATEMENT

The bond requirements for the activities and facilities proposed in this EP are satisfied by an area-wide bond, 

furnished and maintained according to 30 CFR part 256, subpart I; NTL No. 2000-G16, “Guidelines for General 

Lease Surety Bonds;” and a current BOEM-approved deferment from providing additional security under 30 CFR 

256.53(d) and National NTL No. 2003-N06, “Supplemental Bond Procedures. If, any point, Chevron no longer 

qualifies for a supplemental bonding deferment, Chevron will either provide the required additional security or a third 

party guarantee within 60 days after such disqualification. 

(g) OIL SPILL FINANCIAL RESPONSIBILITY (OSFR)

Chevron U.S.A. Inc., BOEM company number 00078, has demonstrated oil spill financial responsibility for the 

facilities proposed in this EP according to 30 CFR part 253, and NTL No. 99-N01, “Guidelines for Oil Spill Financial 

Responsibility for Covered Facilities.”

(h) DEEPWATER WELL CONTROL STATEMENT

Chevron U.S.A. Inc., BOEM company number 00078, has the financial capability to drill a relief well and conduct 

other emergency well control operations.

(j) BLOWOUT SCENARIO

The KC 692 “A” (KC 692 002ST01) proposed location was chosen as the representative well for the Worst Case 

Discharge (WCD) scenario. The initial Open Flow Potential Rate has been calculated with Systems Analysis using 

the Prosper nodal software package from Petroleum Experts, Ltd. Single layer, multi-layer and transient models have 

been investigated. With the assumptions described below, Systems Analysis indicates that an uncontrolled blowout 

in the 10-5/8” open hole section will lead to a maximum Worst Case Discharge scenario initial flow rate of 127,083 

Barrels Oil Per Day (BOPD). This rate is based on transient analysis and does not include the effects of heavy fluid 

unloading or filter cake cleanup. Assuming a 500 acre drainage volume, the production rate would gradually decline 

and stabilize in about 50 days at 110,500 BOPD

Chevron estimates that it would take ten (10) days to acquire and demobilize a rig, four (4) days to move the rig 

onsite, and 161 days to drill the relief well, intersect the blowout well, and conduct a kill operation for a total of 175 

days. 

Modeling indicates that the blowout well could sustain the stabilized rate until a relief well could be drilled. Production 

decline due to reservoir depletion and sand bridging are assumed not to occur. The reservoir rock would appear to 

have enough compressive strength to support a high draw down pressure, at least under initial pressure conditions. 

Using the rate profile resulting from these assumptions, the Total Potential Spill Volume is estimated at 20,790,700 

bbls. 

Discussion of Potential for Well to Bridge Over:

Although it is highly likely that some sand would be produced under a blowout scenario, Chevron expects that the 

amount of sand is small enough to be lifted to the seafloor without bridging. 

16
Chevron U.S.A. Inc. Initial Exploration Plan 

Keathley Canyon Block 692 Public Information

Relief Well 

Chevron plans to drill the wells proposed in this plan with a dynamically positioned drillship. Chevron also plans to 

have at least two other dynamically positioned drillships under contract that could drill the relief well, if needed. These 

drillships do not have any equipment constraints with respect to drilling a relief well for the Moccasin project. A point 

just below the 11-7/8” casing shoe is selected as the intervention point for the relief well. Chevron estimates that it 

would take ten (10) days to acquire and demobilize a rig, four (4) days to move the rig onsite, and 161 days to drill 

the relief well, intersect the blowout well, and conduct a kill operation for a total of 175 days. This estimate includes 

NPT time and a 30% contingency factor. 

There are no platforms or other infrastructure nearby that would hamper relief well operations. Site surveys have 

been conducted near the current drilling location to identify surface hazards that might impact the selection of a relief 

well location. Two locations have been selected for relief well within a 2,500’ radius – one on the southeast side and 

one on the east side. Selection of the actual location would be constrained by typical parameters such as planned 

inclination, benign water-bottom and salt entry/exit points, wind and current direction and subsurface hazard 

avoidance. Directional plans for the relief wells will be simple build and hold with less than an ~40 degree hole angle. 

Casing design for the selected relief well will be similar to that proposed for the Moccasin Appraisal well.

17
Chevron U.S.A. Inc. Initial Exploration Plan 

Keathley Canyon Block 692 Public Information

Relief Well Plan:

Proprietary Information 

18
Chevron U.S.A. Inc. Initial Exploration Plan 

Keathley Canyon Block 692 Public Information

Other

Blowout Contingency Planning

In order for Chevron to address its ability to prevent blowouts, reduce the likelihood of blowouts, and conduct 

effective/early intervention in the event of a blowout, Chevron has developed standards for well control, personnel 

safety, and emergency response plans. Chevron has also entered into agreements with industry Subject Matter 

Experts (SME).

At all times from planning through execution, Chevron takes the necessary steps to maintain primary well control to 

prevent the occurrence of blowouts as outlined in the Chevron Well Control Guide.

The drilling team works in conjunction with the geological and geophysical operations team and the exploration 

project team to use their knowledge and good judgment to create best possible well plans and program for any 

particular prospect. All relevant geological information is used to understand the risks and uncertainties that are 

unique to the location. Appropriate plans are then generated to eliminate or mitigate the identified risks. Special 

equipment for contingency plans is sourced and qualified personnel are identified for conducting the various tasks. 

Prior to the execution phase, all the well control equipment on the rig undergoes a rigorous inspection and 

acceptance process/procedure by the Chevron Global Well Intervention group.

To reduce the likelihood of a blowout, appropriate offset information is used to generate pore pressure models that 

predict localized area pore pressure. Maximum Anticipated Surface Pressure (MASP) is calculated to ensure that the 

working pressure of the BOP equipment is not exceeded at any time during well construction. Pressure While Drilling 

(PWD) and Log While Drilling (LWD) data, such as gamma ray, resistivity, sonic, are used during the drilling 

operation to monitor real time pore pressure variances. 

Adjustments can then be made to the mud system to maintain the appropriate overbalance on the pore pressure. 

Mud tank volumes and trip tank volumes are constantly monitored while drilling for early detection of changes in 

anticipated trends. Routine maintenance and testing of blowout prevention equipment helps to ensure the equipment 

is in good working condition during operations. Data sheets and critical wellbore information which are needed in 

well control situations are maintained at the well site.

There shall be two (2) barriers available during all normal well activities, operations, suspensions, and abandonments 

to prevent uncontrolled flow from the wellbore to the environment. Prior to removing the Blowout Preventer (BOP) 

from a well which has hydrocarbons, there will be two mechanical barriers in place.

Preliminary plans are developed for potential relief well locations(s) during the planning phase for the primary well(s). 

These preliminary plans can be used to develop detailed relief well drilling plans as needed in a timely manner. Two 

relief well locations have been identified for the primary well location.

In addition to Chevron’s contracted resources to assist in the event of a blowout, Chevron is a founding member of 

the Marine Well Containment Company (“MWCC”), currently has access to MWCC’s Interim Containment Response 

System (“ICRS”), and will have full access to MWCC’s Expanded Containment Response System when it is 

available. These resources, along with Chevron’s own well containment and emergency response planning, give 

Chevron a high probability of regaining control of a blown out well.

Chevron maintains the “Chevron Interim Well Containment Plan (0128-OFGN-RGL-PLN-DGM-0000-00001)” which 

guides Chevron’s procedures and plans for well containment until the expanded Marine Well Containment System is 

in place. Additional details for each component of well containment planning can be found in the Chevron Interim 

Well Containment Plan (“IWCP”), which is available upon request.

Supplemental Worst Case Discharge Information to comply with NTL No. 2010-N06 is included as Appendix 

B in the confidential copy of this Plan.

19
Chevron U.S.A. Inc. Initial Exploration Plan 

Keathley Canyon Block 692 Public Information

SECTION C GEOLOGICAL AND GEOPHYSICAL INFORMATION

(a) GEOLOGICAL DESCRIPTION

Proprietary Information

(b) STRUCTURE CONTOUR MAPS

Proprietary Information

(c) INTERPRETED 2-D AND/OR 3-D SEISMIC LINES

Proprietary Information

 

(d) GEOLOGICAL STRUCTURE CROSS-SECTION

Proprietary Information

 

(e) SHALLOW HAZARDS REPORT

Based on a review of CGG Veritas proprietary exploration 3-D seismic data, a Geologic and Stratigraphic 

Assessment over Keathley Canyon Blocks 692, 693, 735, 736, and 780 was prepared by Geoscience Earth & Marine 

Services, Inc. ®, (GEMS) for Chevron U.S.A. Inc. (Chevron) in April 2009 (GEMS Report No. 0109-1600). The 

proprietary report was submitted with the initial plan for KC 736, plan number N-9380.

(f) SHALLOW HAZARDS ASSESSMENT

Site specific shallow hazard clearance letters for the proposed wellsites were prepared by GEMS complying with 

Notice to Lessees (NTL’s) 2008-G05, and 2009-G40. NTL 2008-G06 is also pertinent with respect to pre- and postspud ROV visual inspection surveys. The site specific clearance letters are based on findings provided in the main 

body of the Geohazards report for Keathley Canyon Blocks 692, 693, 735, 736, and 780 (GEMS Report No. 0109-

1600). The site clearance letters supplement the above hazard report with details pertaining directly to the proposed 

drill locations. Two hard copies and two digital copies of the proprietary Site Clearance Letters for proposed Wellsites 

KC 692 A, B, C, D, E, and F are being submitted as an enclosure with this plan. The site clearance letters were 

prepared in July 2012, GEMS Project Number 0412-2080. 

A copy of the site specific shallow hazard site clearance letters from the GEMS reports for the proposed well 

locations is included below:

20
10615 Shadow Wood Drive 

Suite 200 

Houston, Texas 77043 

(713) 468-1410 (o) 

(713) 468-1438 (f) 

www.gemsinc.com

Geoscience Earth & Marine Services, Inc. ® // 1 

FORUM ENERGY TECHNOLOGIES, INC.

August 8, 2012 Project No. 0412-2080 

Chevron U.S.A. Inc. 

1500 Louisiana 

Room 5717F 

Houston, Texas 77002 

Attention: Mr. Philip Von Dullen III 

Site Clearance Letter 

Proposed Wellsite KC 736-A3 (KC 692-A) 

Block 692 (OCS G-22367) 

Keathley Canyon Area, Gulf of Mexico 

Chevron U.S.A. Inc., (Chevron) plans to drill an exploration well in Block 736 of the Keathley Canyon (KC) 

Area, Gulf of Mexico. This letter addresses specific seafloor and subsurface geologic conditions to the 

possible Top of Salt, approximately 1,157 ft below the mudline (bml), at the Proposed Exploration Wellsite 

KC 736-A3. The following discussion is based on findings provided within the main body of the geohazards 

report for Blocks KC 692, 693, 735, 736, and 780 (GEMS Report No. 0109-1600; GEMS, 2009) and within 

the archaeological investigation report for Well KC 736-A3 (GEMS Report No. 0311-1908; GEMS, 2011). 

The surface location of the proposed KC 736-A3 wellsite lies in the northern portion of KC 736. Chevron 

provided the following coordinates: 

Proposed Exploration Wellsite KC 736-A3

Spheroid & Datum: Clarke 1866, NAD27 

Projection: UTM Zone 15 North, U.S. ft 

Line 

Reference 

Block Calls 

KC 736 

X: 1,846,245 Latitude: 26o 16' 29.194089" N Inline: 13980 5,035 ft FEL 

Y: 9,534,438 Longitude: 92o 22' 18.015648" W Crossline: 5764 1,242 ft FNL 

Chevron will drill this well using a dynamically positioned drilling vessel. Our assessment addresses the 

seafloor conditions within a 2,000-ft radius around the proposed wellsite location. 

Attachments 

The page-size maps and figures accompanying this letter have been extracted from the main report’s 

original maps and 3-D data volume and centered on the proposed well location. 

Map KC736-A3-1: Bathymetry Map 

Map KC736-A3-2: Seafloor Rendering 

Map KC736-A3-3: Seafloor Amplitude Rendering 

Map KC736-A3-4: Geologic Features Map 

Figure KC736-A3-1: ROV Survey Benthic Area 

Figure KC736-A3-2: Portions of Inline 13980 and Crossline 5764 Showing Conditions Beneath 

 Proposed Wellsite KC 736-A3 

Figure KC736-A3-3: Tophole Prognosis Chart, Proposed Wellsite KC 736-A3, Keathley 

Canyon Area, Block 736 

21
Project No. 0412-2080 

Chevron U.S.A. Inc. // August 8, 2012

Geoscience Earth & Marine Services, Inc. ® // 2 

FORUM ENERGY TECHNOLOGIES, INC.

NTL Requirements

The following report complies with the Bureau of Ocean Energy Management (BOEM, formerly MMS) 

Notice to Lessees (NTLs) 2008-G05 and 2009-G40 (MMS, 2008a and 2010). The operator will be required 

to follow NTLs 2008-G04 and –G06 with respect to an ROV monitoring survey as well as pre- and postspud ROV visual inspection surveys (MMS, 2008b and 2008c). 

The Federal lease block KC 736 is not considered archaeologically significant (BOEM, 2011); however, 

pursuant to the “Pre-Seabed Disturbance Survey Mitigation” released by the BOEMRE in March 2011 

(BOEMRE, 2011), an archaeological assessment of the well location will be required before any bottom 

disturbing activities. See GEMS Report No. 0311-1908 (GEMS, 2011) for the archaeological assessment. 

Power Spectrum. According to NTL 2008-G05 (MMS, 2008a), 3-D seismic reflection data may be used 

for shallow hazard assessments with approval from the BOEM, Gulf of Mexico Region. A power spectrum 

analysis was conducted from the 3-D seismic data cube provided by Chevron to illustrate the data 

parameters. The power spectrum curve (below) was generated within a 500-ft radius of the intersection of 

the inline and crossline at the proposed wellsite. We converted the amplitude vs. frequency spectrum, 

generated by the SMT software, to power vs. frequency by squaring the amplitude values as described by 

J. A. Coffeen, 1978.

Power Spectrum Analysis Curve, KC 736, Proposed Wellsite KC 736-A3 

The section of data between the seafloor and the Top of Salt is highly fractured and deformed as a result of 

the shallow salt mass at the proposed wellsite. The close proximity of the salt has likely contributed to 

lower frequency content on the 3-D data.

Man-Made Features

The KC 736 #1 well was drilled by Chevron in 2010 in the southern portion of KC 736, approximately 

14,115 ft south-southwest of the proposed well location. There are no existing pipelines, cables, or 

platforms within KC 736 or in the immediate surrounding blocks (BOEM, 2012). 

22
Project No. 0412-2080 

Chevron U.S.A. Inc. // August 8, 2012

Geoscience Earth & Marine Services, Inc. ® // 3 

FORUM ENERGY TECHNOLOGIES, INC.

Wellsite Conditions 

The surface location is clear of any constraining conditions within a 2,000-radius circle from the proposed 

wellsite. 

Water Depth, Slope, and Seafloor Sediments. Seafloor conditions are favorable for exploration drilling at 

the proposed wellsite location. The water depth at the proposed surface location is approximately -6,616 ft 

(Map KC736-A3-1). The Proposed Wellsite KC 736-A3 lies along an expansive shallow salt ridge. The 

seafloor in this area is irregular as a result of the numerous fault scarps and the deformation of the shallow 

overburden by the underlying salt (Map KC736-A3-2). The seafloor at the proposed wellsite is generally 

smooth, dipping to the northeast at about 10.9°; however, video captured from the ROV investigation 

shows a smooth and gradually dipping seafloor. The near-surface sediments are expected to be normally 

consolidated clays forming a drape over the area. 

Deepwater Benthic Communities. There is no indication of fluids or gas venting from nearby faults at the 

seabed. Features or areas that could support high-density deepwater benthic communities are not located 

within 2,000 ft of the proposed location; however, scattered deepwater corals were noted in the ROV data 

near the KC 736-A3 survey location. These “branch-like” corals exist on soft substrate and are not 

considered to be high-density benthic communities that are generally associated with hardgrounds (Figure 

KC736-A3-1). The Seafloor Amplitude Rendering (Map KC736-A3-3) shows normal or ambient amplitudes 

along the seabed at, and near, the proposed wellsite. 

Stratigraphy. Stratigraphic conditions are shown on Figures KC736-A3-2 and KC736-A3-3. The seafloor 

and near-surface sediments at the Proposed Wellsite KC 736-A3 are expected to be hemipelagic and 

pelagic clays and silty clays. In general, the sediments between the seafloor and the possible Top of Salt 

(1,157 ft bml or -7,773 ft bsl, below sea level) consist of hemipelagic clays and clay-rich turbidite deposits 

interlayered in places with thin debris flow deposits. The sediments within the upper 1,157 ft bml (-7,773 ft 

bsl) likely consist primarily of clays and silts; however, thin sand seams may be interspersed within the 

stratigraphic sequence below 215 ft bml (-6,831 ft bsl). 

Faults. Several seafloor faults exist near the proposed location. A vertical borehole will intersect a 

seafloor fault at approximately 242 ft bml (-6,858 ft bsl), Figures KC736-A3-2 and KC736-A3-3. The fault 

trends northwest to southeast and is downthrown to the northeast. Any further movement along this fault 

will likely be slow, analogous to a soil creep. 

No other seafloor or buried faults are expected to be penetrated; however, the stratigraphic unit above the 

Top of Salt is likely to be highly fractured as a result of the motion of the shallow salt structure. Other faults 

are likely to exist that are beyond the resolution of the data.

Shallow Gas and Shallow Water Flow. Significant shallow gas is not expected at this wellsite within the 

upper 1,157 ft of sediment (Figures KC736-A3-2 and KC736-A3-3). The potential for shallow water flow at 

this well location is considered negligible (Figure KC736-A3-3). 

Shallow Gas. The potential for encountering shallow gas at the Proposed Wellsite KC 736-A3 ranges 

from negligible to low. The well path will not penetrate any high-amplitude events between the seafloor and 

the possible Top of Salt (1,157 ft bml), Map KC736-A3-4 and Figure KC736-A3-3. A low potential for 

encountering shallow gas exists from 215 ft bml to the possible Top of Salt (1,157 ft bml). An increase in 

amplitude character in places may indicate an increase in minor amounts of solution gas within possible 

thin sand layers within this interval. 

Shallow Water Flow. There is a negligible potential for shallow water flow within the sedimentary 

section from the seafloor to the possible Top of Salt (1,157 ft bml), Figure KC736-A3-3. Any thin sand or 

silty-sand layers encountered are not expected to be overpressured. Additionally, the potential for an 

overpressured environment is considerably reduced by faulting and the thin overburden above the shallow 

salt. 

23
Project No. 0412-2080 

Chevron U.S.A. Inc. // August 8, 2012

Geoscience Earth & Marine Services, Inc. ® // 4 

FORUM ENERGY TECHNOLOGIES, INC.

Closing 

The Proposed Wellsite KC 736-A3 in Keathley Canyon Block 736 appears suitable for exploration drilling 

operations. Thin sands may be encountered between 215 ft and 1,157 ft bml, but we do not anticipate any 

significant overpressures associated with this interval. We appreciate the opportunity to be of service to 

Chevron on this project and look forward to working closely with you on other projects. 

 Sincerely, 

 GEOSCIENCE EARTH & 

 MARINE SERVICES, INC. ®

Christopher J. Madere Daniel Lanier 

Senior Geoscientist Vice President - Geoscience 

Attachments: (4 Maps and 2 Figures) 

Distribution: Mr. Philip Von Dullen III, Chevron U.S.A. Inc., Houston, TX (2 Copies) 

References: 

Bureau of Ocean Energy Management, 2011, Notice to lessees and operators of federal oil and gas leases and 

pipeline right-of-way holders on the outer continental shelf, revisions to the list of OCS lease blocks requiring 

archaeological resource surveys and reports: U. S. Department of the Interior, Bureau of Ocean Energy Management, 

Bureau of Safety and Environmental Enforcement, Gulf of Mexico OCS Region, NTL 2011-JOINT-G01. 

Bureau of Ocean Energy Management, 2012, ASCII data files, published on the BOEM Gulf of Mexico Region 

homepage, <http://www.gomr.boem.gov/homepg/pubinfo/freeasci/freedesc.html>, accessed August, 2012. 

Bureau of Ocean Energy Management, Regulation, and Enforcement, 2011, Pre-seabed disturbance survey mitigation, 

released by BOEMRE in March 2011. 

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

GEMS, 2009, Geologic and stratigraphic assessment, blocks 692, 693, 735, 736, and 780, Keathley Canyon Area, Gulf 

of Mexico, Geoscience Earth & Marine Services, Inc.®

, Report No. 0109-1600. 

GEMS, 2011, Archaeological ROV Investigation, KC 736-A3 Well, Block 736, Keathley Canyon Area, Gulf of Mexico, 

Geoscience Earth & Marine Services, Inc.®, Report No. 0311-1908. 

Minerals Management Service, 2008a, Notice to lessees and operators of federal oil, gas, and sulphur leases and 

pipeline right-of-way holders in the outer continental shelf, Gulf of Mexico OCS region, Shallow hazards requirements: 

U. S. Department of the Interior, Minerals Management Service, Gulf of Mexico, NTL 2008-G05. 

Minerals Management Service, 2008b, Notice to lessees and operators of federal oil, gas, and sulphur leases in the 

outer continental shelf, Gulf of Mexico OCS region, Information Requirements for Exploration Plans and Development 

Operations Coordination Documents, U. S. Department of the Interior, Minerals Management Service, Gulf of Mexico, 

NTL 2008-G04. 

Minerals Management Service, 2008c, Notice to lessees and operators of federal oil, gas, and sulphur leases in the 

outer continental shelf, Gulf of Mexico OCS region, Remotely operated vehicle surveys in deepwater: U. S. Department 

of the Interior, Minerals Management Service, Gulf of Mexico, NTL 2008-G06. 

Minerals Management Service, 2010, Notice to lessees and operators of federal oil and gas leases in the outer 

continental shelf, Gulf of Mexico OCS region, Deepwater benthic communities: U. S. Department of the Interior, 

Minerals Management Service, Gulf of Mexico, NTL 2009-G40. Effective Date January 27, 2010. 

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