8:00 p.m. DNR Field Update

Office of Conservation
Bayou Corne Field Update
Dec. 27, 2012 Activities

Texas Brine Operations

Oxy 3-A Cavern Well –
Snubbing unit rigged down following removal of 4-inch tubing in preparation for installation of equipment for vertical seismic profile

Texas Brine Facility Vent Well to Top of Aquifer (TB Vent Well #1) –
Flaring gas at 25.3 mcf/day

Texas Brine Facility Vent Well to Top of Cap Rock (Vent Well #2) –
Shut in pending plug and abandon

Texas Brine Facility Geophone Well –
Ongoing monitoring for seismic activity, data available at http://folkworm.ceri.memphis.edu/heli_temp/

Texas Brine Facility Shallow Pressure Monitoring ( TBC 1-3)

TBC 1
Shut in, flaring equipment installed, to be tested as potential vent well
TBC 2
Flaring gas at 21.4 mcf/day
TBC 3
Shut in, to be tested as potential vent well

Sinkhole Site –
Skimming and removing vegetation/debris from sinkhole surface

Conservation/Shaw Operations

Observation/Vent Well #1 –
Flaring gas at 15.1 mcf/day

Observation/Vent Well #2 –
Flaring gas at 15.1 mcf/day

Observation/Vent Well #3 –
Remains in monitoring status, set up to vent/flare natural gas if concentrations are observed around wellbore

Observation/Vent Well #4 –
Continuing work to clear perforations that have sanded in in order to restore natural gas flow for flaring

Bayou Corne Community

Bayou Corne Community Aquifer Monitoring Wells (BC 1-2)
BC 1
Texas Brine reports awaiting landowner access

BC 2
Installed and completed

Bayou Corne Community
Participating in ongoing in-home monitoring effort with DEQ
Oversight of ongoing operation of Office of Conservation-directed Texas Brine geoprobe monitoring wells in Bayou Corne community

11:05 a.m. DNR Field Update

Office of Conservation

Bayou Corne Field Update

Dec. 21, 2012 Activities

Texas Brine Operations

Oxy 3-A Cavern Well –

∙ Rigging up snubbing unit to pull 4-inch tubing in preparation for installation of equipment for vertical seismic profile

Texas Brine Facility Vent Well to Top of Aquifer (TB Vent Well #1) –

∙ Flaring gas at 42 mcf/day

Texas Brine Facility Vent Well to Top of Cap Rock (Vent Well #2) –

∙ Shut in pending plug and abandon

Texas Brine Facility Geophone Well –

∙ Ongoing monitoring for seismic activity

Texas Brine Facility Shallow Pressure Monitoring ( TBC 1-3)

TBC 1

∙ Shut in, flaring equipment installed, to be tested as potential vent wellTBC 2

∙ Flaring gas at 11 mcf/dayTBC 3

∙ Shut in, to be tested as potential vent well

Sinkhole Site –

∙ Removing vegetation from sinkhole surface

Conservation/Shaw Operations

Observation/Vent Well #1 –

∙ Flaring gas at 17.5 mcf/day

Observation/Vent Well #2 –∙ Flaring gas at 15.4 mcf/day

Observation/Vent Well #3 –

∙ Remains in monitoring status, set up to vent/flare natural gas if concentrations are observed around wellbore

Observation/Vent Well #4 –

∙ Continuing work to clear perforations that have sanded in in order to restore natural gas flow for flaring

Bayou Corne Community

Bayou Corne Community Aquifer Monitoring Wells (BC 1-2)

BC 1

∙ Texas Brine reports awaiting landowner access

BC 2

∙ Installed and completed on Dec. 21

Bayou Corne Community

∙ Participating in ongoing in-home monitoring effort with DEQ∙ Oversight of ongoing operation of Office of Conservation-directed Texas Brine geoprobe monitoring wells in Bayou Corne community

5:15 p.m. Office of Conservation Fines Texas Brine Additional $160,000

Office of Conservation Fines Texas Brine Additional $160,000 for Continued Failure to Comply With Directives

Fines levied on Company to date total $260,000, with further penalties possible for noncompliance with Conservation orders

BATON ROUGE – Louisiana Commissioner of Conservation James Welsh announced today that his Office has issued Texas Brine LLC $160,000 in new fines for continued failure to comply with provisions of his November 12 directive to the company. These fines follow $100,000 in penalties already issued to the company for noncompliance earlier this month.

Welsh on Nov. 12 gave Texas Brine new orders, amending the already existing Declaration of Emergency and Directive. The new orders intended to further the ongoing efforts to protect public safety and the environment in the area, abate the impacts of natural gas that migrated to the aquifer due to the failure of Texas Brine’s cavern, and prevent the release of crude oil from the sinkhole created when the company’s cavern wall collapsed.

Combined with the fines assessed as of Dec. 1, the penalties assessed today bring the total amount Conservation has fined Texas Brine to $260,000.

Texas Brine has been assessed new civil penalties of:

* $80,000 for continued failure to initiate installation of a containment system around the sinkhole to further prevent release of contaminants into nearby waterway

* $80,000 for continued failure to install in-home monitors to detect possible natural gas accumulations and upgraded home ventilation for all slab-foundation

“The goals and mission of the state and the Office of Conservation in this situation are to take all necessary actions and measures within our legal authority to protect the safety of the public and the environment, and to get the lives of Bayou Corne residents back to normal as soon as possible,” Welsh said. “If monetary penalties are what is required to provide Texas Brine with the same sense of urgency Conservation feels in addressing the problems caused by the failure of the company’s cavern, then we’ll continue to make clear to the company the cost of its inaction.”

Welsh said, since the issuance of the Dec. 1 fines, Texas Brine has been unable to comply with Conservation’s order to begin installation of two new observation/vent wells in the area near its facility. Texas Brine reports that it has not been granted access by property owners to begin the work.

Welsh’s notice to Texas Brine on the fines requires immediate payment of the civil penalties and compliance with all provisions of the Nov. 12 directive, and includes the warning that additional actions, including further fines, can still be taken if the company continues its failure to comply with the Office of Conservation’s directions.

8:10 p.m. DNR Field Update

Office of Conservation
Bayou Corne Field Update
Dec. 16, 2012 Activities

Texas Brine Operations

Oxy 3-A Cavern Well –

· Well shut in pending planned inspection Monday of system installed to safely contain/flare hydrogen sulfide

Texas Brine Facility Vent Well to Top of Aquifer –

· Flaring gas at 52.5 mcf/day

Texas Brine Facility Vent Well to Top of Cap Rock –

· Shut in pending plug and abandon evaluation

Texas Brine Facility Geophone Well –

· Initial geophone equipment installed and monitoring, pending final installation of permanent geophone equipment

Texas Brine Facility Shallow Pressure Monitoring –

· Two shallow wells to monitor pressure and quality of water in aquifer installed, third to begin installation Monday

Sinkhole Site –

· Skimming operations suspended through weekend

Conservation/Shaw Operations

Observation/Vent Well #1 –

· Flaring gas at 20.8 mcf/day

Observation/Vent Well #2 –

· Flaring gas at 15.4 mcf/day

Observation/Vent Well #3 –

· Remains in monitoring status, set up to vent/flare natural gas if concentrations are observed around wellbore

Observation/Vent Well #4 –

· Work will continue this week to clear perforations that have sanded in in order to restore natural gas flow for flaring

Bayou Corne Community

· Participating in ongoing in-home monitoring effort with DEQ

· Oversight of monitoring of Office of Conservation-directed Texas Brine geoprobe shallow pressure wells in Bayou Corne community

· Initial Office of Conservation-directed Texas Brine aquifer monitoring well in community to be installed this week