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