Leasing Activities Information

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Leasing Activities Information U.S. Department of the Interior Minerals Management Service Gulf of Mexico OCS Region Information To Lessees Eastern Gulf Of Mexico Sale 189 (Proposed Notice of Sale) This document contains Information to Lessees (ITL) paragraphs designed to inform potential bidders of notable applicable requirements of federal agencies other than the U.S. Minerals Management Service (MMS) as well as emerging MMS requirements that may apply to this sale. Table of Contents (a) Navigation Safety (b) Offshore Pipelines (c) Unexploded Ordnance (d) Lightering Zones (e) Information about Indicated Hydrocarbons (f) Military Areas (g) Lease Stipulation for Protected Species (Sea Turtles, Marine Mammals, Gulf Sturgeon, Brown Pelican, Whooping Cranes, and Other Federally Protected Species) (h) MMS Inspection and Enforcement of Certain Coast Guard Regulations [Page 1 of 6]

(a) Navigation Safety. Operations on some of the blocks offered for lease may be restricted by designation of fairways, precautionary zones, anchorages, safety zones, or traffic separation schemes established by the U.S. Coast Guard pursuant to the Ports and Waterways Safety Act (33 U.S.C. 1221 et seq.), as amended, and the Deepwater Port Act (33 U.S.C. 1501-1524). Bidders are advised to review U.S. Coast Guard regulations. U.S. Army Corps of Engineers (COE) permits are required for construction of any artificial islands, installations, and other devices permanently or temporarily attached to the seabed located on the OCS in accordance with section 4(e) of the OCS Lands Act, as amended. For additional information, prospective bidders should contact Lieutenant Commander Rob Holzman, Assistant Marine Port Safety Officer, 8th Coast Guard District, Hale Boggs Federal Building, New Orleans, Louisiana 70130, (504) 589-4257. For COE information, prospective bidders should contact: Mobile District (for offshore Alabama) Mr. Ronald Krizman (CESAM-OP-S) U.S. Army Corps of Engineers P.O. Box 2288 Mobile, Alabama 36628 (334) 690-2658 Jacksonville District (for offshore Florida) Mr. John Hall (CESAJ-RD) U.S. Army Corps of Engineers P.O. Box 4970 Jacksonville, Florida 32232-0019 (904) 232-1177 (b) Offshore Pipelines. Bidders are advised that the Department of the Interior and the Department of Transportation have entered into a Memorandum of Understanding (MOU), dated December 10, 1996, concerning the design, installation, operations, inspection, and maintenance of offshore pipelines. See also 30 CFR 250.1000(c)(1). Bidders should consult both Departments for regulations applicable to offshore pipelines; at the MMS Gulf of Mexico Regional Office, the appropriate contact is Mr. Alex Alvarado at (504) 736-2547; at DOT, please contact: [Page 2 of 6]

Southwest Region Mr. Rodrick M. Seeley Regional Director Office of Pipeline Safety 2320 LaBranch Street, Room 2100 Houston, Texas 77004 (713) 718-3748 Southern Region Mr. Mohammed Shoaib Acting Regional Director Office of Pipeline Safety 61 Forsyth Street, Suite 16T15 Atlanta, Georgia 30303 (404) 562-3530 Copies of the MOU are available from the MMS Internet site and the MMS Gulf of Mexico Region Public Information Unit at the address at the end of this document. (c) Unexploded Ordnance. The U.S. Air Force has released an indeterminable amount of unexploded ordnance throughout Eglin Water Test Areas. The exact location of the unexploded ordnance is unknown, and lessees are advised that all lease blocks included in this sale within these water test areas should be considered potentially hazardous to drilling and platform and pipeline placement. (d) Lightering Zones. Bidders are advised that the U.S. Coast Guard has designated certain areas of the Gulf of Mexico as lightering zones for the purpose of permitting single hull vessels to off-load oil within the U.S. Exclusive Economic Zone. Such designation may have implications for oil and gas operations in the areas. See 33 CFR 156.300 for the regulations concerning lightering zones; additional information may be obtained from Lieutenant Commander Russ Proctor of the Coast Guard s Ports and Facilities Compliance Staff (G-MOC-3) at (202) 267-0499. (e) Information about Indicated Hydrocarbons. Bidders are advised that MMS makes available, approximately 3 months prior to a lease sale, a list of unleased tracts having well bores with indicated hydrocarbons, which includes Eastern Gulf data as well as Central and Western Gulf data. Basic information relating to production, well bores, and pay range for each tract is included in the list. The list is available from the MMS [Page 3 of 6]

Gulf of Mexico Region Public Information Unit at the address at the end of this document. (f) Military Areas. Military Warning Areas are established in the Flight Information Publication Area Planning - Special Use Airspace - North and South America published by the National Imagery and Mapping Agency (NIMA), 3200 South Second Street, St. Louis, Missouri 63118-3399; NIMA reference number PLANXAP1A. The most recent version of this document was published on January 23, 2003; the next issue is expected to be published on July 10, 2003. This document may be downloaded from the NIMA website: https://164.214.2.62/products/digitalaero/index.cfm [scroll down to Planning Document and click on: AP1 North and South America (4.43 MB)] The NIMA home page may be found at: http://www.nima.mil. The Military Areas Stipulation (Stipulation No. 1 in the document Lease Stipulations for Oil and Gas Lease Sale 189 included in the PNOS 189) will be applied to leases in any new areas that may be established by that publication in addition to blocks in those Warning Areas which have had the stipulation in past sales. Certain restrictions on flights and radio communications in the Warning Areas will require close coordination between lessees (and their operators and agents) and the appropriate military commander using the specific Warning Area. It is the responsibility of lessees to establish and maintain contact and coordination with the military commander(s) in any Warning Area in which operations or flights would be expected in the course of occupying and developing any leases; this could include flights through a Warning Area traveling to a leased block which is not in a Warning Area. Lessees should establish and maintain contact and coordination with the appropriate military commander(s) whether or not there is a military stipulation in their lease(s). The contact for administrative questions about the warning areas is: Federal Aviation Administration Houston Air Route Traffic Control (ARTC) Center 16600 John F. Kennedy Boulevard [Page 4 of 6]

Houston, Texas 77032 Telephone: (281) 230-5560/5563/5600 (g) Lease Stipulation for Protected Species (Sea Turtles, Marine Mammals, Gulf Sturgeon, Brown Pelican, Whooping Cranes, and Other Federally Protected Species). Included in this PNOS 189 is a recently revised Protected Species Stipulation that was applicable to the last sale: Central GOM Sale 185. However, bidders should be aware that this stipulation is subject to change due to ongoing consultations with the National Oceanic and Atmospheric Administration and the U.S. Fish and Wildlife Service. Three NTLs are currently in force to implement the Protected Species Stipulation that applied to Sale 185. NTL No. 2003-G08, entitled Implementation of Seismic Survey Mitigation Measures and Protected Species Observer Program, became effective on June 5, 2003, and supersedes and replaces NTL No. 2002-G07 (which was effective on August 22, 2002), and NTL No. 2002-G07 (Addendum 1, which was effective on October 15, 2002). The NTL, issued pursuant to 30 CFR 250.103, explains procedures for ramp-up, protected species observer training, and visual monitoring and reporting. This NTL applies to all seismic operations throughout the Gulf of Mexico OCS in waters greater than 200 m (656 ft) in depth. These measures apply to all seismic operations conducted under 30 CFR 250.201 and all offlease seismic surveys conducted under 30 CFR 251. NTL No. 2002-G07 may be obtained from our Public Information Unit at the address at the end of this document or online at: www.gomr.mms.gov/homepg/regulate/regs/ntls/ntl03-g08.html NTL No. 2003-G06, entitled Marine Trash and Debris Awareness and Elimination became effective on February 15, 2003, and is issued pursuant to 30 CFR 250.103. This NTL supersedes NTL No. 98-27 and NTL No. 2002-G13 on this subject. The NTL supplements information from NTL 98-27 with additional guidance to prevent intentional and/or accidental introduction of debris into the marine environment, and revises NTL 2002-G13 to extend the deadlines for compliance and to limit the persons to whom and the facilities to which these requirements apply. This NTL applies to all existing [Page 5 of 6]

and future oil and gas operations in the Gulf of Mexico OCS. The NTL requires careful handling of all trash and debris, specifies certain training, and directs the placement of certain placards warning about improper disposal of trash and debris. This NTL may be obtained from our Public Information Unit at the address at the end of this document or online at: www.gomr.mms.gov/homepg/regulate/regs/ntls/ntl03-g06.html NTL No. 2003-G07, entitled Vessel Strike Avoidance and Injured/Dead Protected Species Reporting, became effective on February 15, 2003, is issued pursuant to 30 CFR 250.103, 30 CFR 250.203(o) and 30 CFR 250.204(s) to explain how to implement measures to minimize the risk of vessel strikes to protected species and report observations of injured or dead protected species. This NTL supersedes NTL 2002-G14 on this subject and revises the protected species reporting procedures and contact information. This NTL applies to all existing and future oil and gas operations in the Gulf of Mexico OCS. This NTL may be obtained from our Public Information Unit at the address at the end of this document or online at: www.gomr.mms.gov/homepg/regulate/regs/ntls/ntl03-g07.html (h) MMS Inspection and Enforcement of Certain Coast Guard Regulations. On February 7, 2002, the Coast Guard published a final rule (67 FR 5912) authorizing the Minerals Management Service (MMS) to perform inspections on fixed Outer Continental Shelf (OCS) facilities engaged in OCS activities and to enforce Coast Guard regulations applicable to those facilities in 33 CFR chapter I, subchapter N. Questions regarding this authorization may be directed to the Coast Guard as indicated in the final rule. Gulf of Mexico Region Public Information Unit Minerals Management Service 1201 Elmwood Park Boulevard New Orleans, Louisiana 70123-2394 Telephone: (504) 736-2519 or (800) 200-GULF MMS Homepage Address on the Internet: www.mms.gov [Page 6 of 6]