Joint Appendix — Marathon Oil Co. v. United States, 120 S. Ct. 494 (1999) (No. 99-253)

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Supreme Court

t, US.

FILED

In THE FAN 5 onan

Supreme Court of the United ote

ee J

= i ee

Mosit O1L EXPLORATION & aan

SOUTHEAST, INC.,

7 Petitioner,

UNITED STATES OF AMERICA,

Respondent.

MARATHON O1L COMPANY,

- Petitioner,

UNITED STATES OF AMERICA,

Respondent.

On Writ of Certiorari to the United States

Court of Appeals for the Federal Circuit

JOINT APPENDIX

CARTER G. PHILLIPS * SetH P. WAXMAN *

RICHARD D. BERNSTEIN Solicitor General

GRIFFITH L. GREEN Department of Justice

MICHAEL S. LEE Washington, D.C. 20530-0001

Sm.iry & AUSTIN (202) 514-2217

1722 Eye Street, NW Counsel for Respondent

Washington, DC 20006

(202) 736-8000

Counsel for Petitioner

Marathon Oil Co.

E. EDWARD BRUCE *

STEVEN J. ROSENBAUM

KEVIN C. NEWSOM

COVINGTON & BURLING

1201 Pennsylvania Ave., N.W.

P.O. Box 7566

Washington, D.C. 20044

(202) 662-6000

Counsel for Petitioner °

Mobil Oil Exploration & Counsel of Record

Producing Southeast, Inc. December 30, 1999

RTD se eon A ET RL A TE

PETITIONS FOR CERTIORARI FILED: AUGUST 10, 1999 (99-244)

AND AUGUST 11, 1999 (99-253)

CERTIORARI GRANTED: NOVEMBER 15, 1999

TABLE OF CONTENTS

District Court Docket Entries ...............2..........ccccceseesece

Court of Appeals Docket Entries ..200.0.000...0...cccceccceeeeeee

U.S. Dep’t of the Interior, Final Secretarial Issue Doc-

qmnemt (PGR. 1661) (GRBGEIE) q...~...cccccccccccccccccssceccosccccesee

Letter from James A. Summers, N.C. Dep’t of Natural

Resources & Community Dev., to Bruce E. Wamsley,

MMS (Aug. 17, 1982) (CZMA concurrence for

| LE as NE eRe! AR Oe Be Cem ee Ae

Letter from James B. Hunt, Jr., Governor of N.C., to

Larry Ake, MMS (Oct. 15, 1982) (CZMA concurrence

I hice aia dieeedietitbaltidiacalcidilicinaninsiss

Letter from James G. Martin, Governor of N.C., to

Ralph Ainger, MMS (Oct. 6, 1982) ........0002eeecece eee eee

Letter from Donna D. Moffitt, N.C. Dep’t of Admin., to

Ralph V. Ainger, MMS (Oct. 20, 1988) -....0000000000000000...

Letter from Donna D. Moffitt, N.C. Dep’t of Admin., to

William Whittemore, Esq., Mobil Exploration & Prod.

oF ERE Se Se ea Re ee.

Document F16NC1, Final (Apr. 1, 1989) ....0020000000..

Memorandum Of Understanding By And Between The

State Of North Carolina, Mobil Oil Corporation, And

The Minerals Management Service (July 12, 1989)......

Memorandum from Donna Moffitt, N.C. Dep’t of

Admin., to N.C. Officials (Nov. 20, 1989) (official State

comment on MMS Draft Report) ............00..000.ccccceecceeeeee

Letter from William C. Whittemore, Esq., Mobil Ex-

ploration & Producing U.S. Inc., to Hon. William W.

Cobey, Jr., N.C. Dep’t of Env’t, Health, and Natural

Resources (Apr. 17, 1990) (certification for NPDES

OTD cisdiccdicdsiesnbivieandigiaiidlincsthiibiinnlidebansilinapssanbiiteamdisitihdaimends

White House Press Release (June 26, 1990) ................

Letter from Rep. Walter B. Jones to the President

SIE Ti, Meret chichctsinhiacedscicienntrsscmutnaieneniematinnditinmsein

Letter from James G. Martin, Governor of N.C., to

the President (June 27, 1990) ........222.........ccccccccsesssesoseess

57

5Y

61

65

69

76

79

86

ii

TABLE OF CONTENTS—Continued

Letter from Roger N. Schecter, N.C. Dept’ of Env’t,

Health, and Natural Resources, to William C. Whitte-

more, Mobil Exploration & Producing U.S., Inc. (July

16, 1990) (objection to NPDES Permit) .......................

Letter from Manuel Lujan, Jr., Secretary of the In-

terior, to Rep. Ralph Regula (Aug. 1, 1990) .................

Mobil Oil Exploration & Producing Southeast Inc.,

Exploration Plan (Aug. 20, 1990) (excerpt) .................

Letter from Lawrence H. Ake, MMS, to William C.

Whittemore, Mobil Exploration & Producing U.S. Inc.

(Sept. 21, 1990) (notice of suspension of leases) ..........

Letter from Lawrence H. Ake, MMS, to Amerada Hess

Corp. (Sept. 21, 1990) (notice of suspension of leases) ..

U.S. Dept’ of the Interior, MMS, Environmental As-

sessment of Exploration Plan for Manteo Area Block

467 (Sept. 28, 1990) (excerpt) ......................ccccccesesseceseees

Letter from Roger N. Schecter, N.C. Dep’t of Env’t,

Health, and Natural Resources, to Bruce G. Weetman,

MMS (Nov. 19, 1990) (objection to Manteo Unit

SRL GR NR ORES RS Oe

N.C. Envtl. Sciences Review Panel, Report to the Sec-

retary of the Interior (Jan. 22, 1992) (Executive

a a ee

Letter from Bruce G. Weetman, MMS, to Leslie J. Bur-

ton, Mobil Exploration & Producing U.S. Inc. (date

illegible) (notice lifting lease suspensions) ...................

Letter from Leslie J. Burton, Mobil Exploration &

Producing U.S. Inc., to Bruce Weetman, MMS (Sept.

15, 1992) (request to reinstate lease suspensions) ........

Letter from Leslie J. Burton, Mobil Exploration &

Producing U.S. Inc., to Bruce Weetman, MMS (Sept.

23, 1992) (request to reinstate lease suspensions) ........

Letter from Bruce G. Weetman, MMS, to Leslie J. Bur-

ton, Mobil Exploration & Producing U.S. Ine. (Oct.

9, 1992) (notice reinstating lease suspensions) .............

118

115

129

132

138

141

149

165

168

iii

TABLE OF CONTENTS—Continued

Defendant's Response to Third Party Plaintiffs’ Third

Set of Requests to Admit Interrogatories, Conoco Inc.

v. United States, No. 92-331C (Fed. Cl.) (excerpt)...

Deposition of David Courtland O’Neal, Conoco Ine. v.

United States, No. 92-331-C (Fed. Cl. Aug. 31, 1993)

EES a Te OE SOS OE ce

Deposition of Bruce G. Weetman, Conoco Ine. v.

United States, No. 92-331-C (Fed. Cl. Feb. 15, 1994)

EEE LE ee eee

Decl. of Margo E. Jackson, Conoco Inc. v. United

States, No. 92-331-C (Fed. Cl. Apr. 6, 1994) .................

Decl. of Paul Martin, Conoco Inc. v. United States,

No. 92-331-C (Fed. Cl. Apr. 8, 1994) 0000000.

Letter from Thomas Gernhoffer, MMS, to Dianna

Josephson, U.S. Dep’t of Commerce (July 22, 1994)

(notice of completion of studies) 0.

Secretary of Commerce, Decision and Findings In The

Plan Of Exploration Consistency Appeal Of Mobil Oil

Exploration & Producing Southeast, Inc. From An Ob-

jection By The State Of North Carolina (Sept. 2,

SEES selieeihdeiiaseaieaiteitteetn tiles itil aaaninins

Secretary of Commerce, Decision and Findings In The

Drilling Discharge Consistency Appeal Of Mobil Oil

Exploration & Producing Southeast, Inc. From An Ob-

jection By The State Of North Carolina (Sept. 2,

Ee ae ee ea

Letter from Chris C. Oynes, MMS, to Leslie J. Burton,

Mobil Exploration & Prod. U.S. Inc. (Nov. 9, 1994)

(notice of termination of suspension of leases) ............

Judgment [Pursuant to Rule 54(b)] (Fed. Cl. July 24,

ED crsssneneceutnntinatinnecntmacmensatingemsttinincianermatingmtmenmnenamnes

Page

175

191

194

196

261

UNITED STATES DISTRICT COURT

UNITED STATES COURT OF FEDERAL CLAIMS

Civil Case No. 92-CV-331

MARATHON [CONOCO}]

v.

UNITED STATES OF AMERICA

———s

a

DATE NO. PROCEEDINGS

5/7/92

5/7/92

1

COMPLAINT FILED FILING FEE $ 120

RECEIPT # 30332 Answer due on 7/6/92.

(mm) [Entry date 11/22/93]

MOTION by CONOCO, INC. (Service : 5/

7/92 ) for Notice to Third Parties [Chevron

USA Inc.; Murphy Oil USA, Inc.; Odeco I

& Gas Co.; OXY USA Inc.; Pennzoil Explo-

ration & Production Co.; Shell Offshore Inc. ;

Union Oil Co. of California; Amerada Hess

Corp.; Marathon Oil Co.; Mobil Exploration

& Producing U.S. Inc.] Copies (4) served on

defendant. Response due: 5/24/92 (mm)

{Entry date 11/22/93]

Notice of assignment to Judge Wilkes C.

Robinson. Copy to parties. (mm) [Entry

date 11/22/93]

ORDER entered directing the issuance of

Rule 14 notices as specified in [] [2-1] motion

for Notice to Third Parties submitted

(signed by Judge Wilkes C. Robinson) .

Copy to parties. Notices issued this day and

delivered to plaintiff’s attorney for service.

(mm) [Entry date 11/22/93]

2

DATE NO.

PROCEEDINGS

10/28/92

12/10/92

2/22/93

11/2/93

11/10/93

11/12/93

THIRD-PARTY COMPLAINT (7 separate)

by OXY USA INC., AMERADA HESS

CORP., PENNZOIL EXPLORATION,

UNION OIL COMPANY, CHEVRON USA

INC., MARATHON OIL COMPANY, MUR-

PHY EXPLORATION, MURPHY OIL USA,

INC. Service: 10/28/92 FILING FEE $ 120

for each RECEIPT # 32218-32224. Answer

due 12/27/92 (mm) [Entry date 11/22/93]

[Edit date 11/23/93]

THIRD-PARTY COMPLAINT (4 separate)

FILED by AMOCO PRODUCTION, MOBIL

EXPLORATION, SHELL FRONTIER OIL,

and TEXACO EXPLORATION. Service:

10/28/92 FILING FEE $ 120 for each com-

plaint. RECEIPT # 32728-32731. Answer

due 12/27/92 (mm) [Entry date 11/23/93]

ORDER entered directing the Dismissing of

third party plaintiff Mobil Exploration and

Producing U.S., Inc. complaint without prej-

udice (signed by Judge Wilkes C. Robinson) .

Copy to parties. (mm) [Entry date 11/23/

93)

CORRECTED MOTION by USA (Service:

11/1/98 ) to Extend Time to complete dis-

covery (to May 30, 1994) . Response due:

11/18/93 (mm) [Entry date 11/23/93]

MOTION by third party plaintiffs’ AME-

RADA HESS CORP. et al (Service : 11/10/

93) for Protective Order precluding certain

depositions. Response due: 11/29/93 (mm)

[Entry date 11/23/93]

Status Conference held (Transcript due 12/

18/93) . (mm) [Entry date 12/06/93]

DATE NO.

PROCEEDINGS

11/15/93

11/19/93

12/1/93

12/1/93

12/3/93

12/3/93

10

13

14

15

ORDER mooting [9-1] motion for Protective

Order precluding certain depositions, grant-

ing in part, denying in part [8-1] motion to

Extend Time to complete discovery reset Dis-

covery deadline to 2/15/94, reset Dispositive

Motion Filing deadline to 4/1/94 (signed by

Judge Wilkes C. Robinson) . Copy to parties.

(mm) [Entry date 11/23/93]

[Stipulated] MOTION by CONOCO, INC.

and USA to Extend Time within which to

respond to discovery requests, (until Decem-

ber 3, 1993) and reset Discovery deadline.

Response due: 12/6/93. (hw) [Entry date

11/26/93]

ORDER granting [11-1] motion to Extend

Time within which to respond to discovery

requests, granting [11-2] motion to reset

Discovery deadline. (signed by Judge Wilkes

C. Robinson) Copy to parties. (ds) [Entry

date 12/03/93]

TRANSCRIPT of proceedings re: 1 volume,

at Washington, D.C., for date of November

12, 1993 . Notice to parties. (mm) [Entry

date 12/06/93]

MOTION by CONOCO, INC., USA and

AMERADA HESS CORP., ET AL. to Ex-

tend Time to respond to discovery requests

(to December 22, 1993, for all parties). (bh)

{Entry date 12/06/93]

MOTION by AMERADA HESS CORP.

(Service: 12/3/98) for Protective Order.

Response due: 12/20/93 (bh) [Entry date

12/06/93)

4

DATE NO.

PROCEEDINGS

12/7/98

12/7/93

12/7/93

12/8/93

12/17/93

12/17/93

12/21/93

16

17

20

21

ORDER granting [15-1] motion for Protec-

tive Order and expanding the protective

order of 9/3/93, to include attachment A to

order. (signed by Judge Wilkes C. Robin-

son) Copy to parties. (ds) [Entry date 12/

08/93]

SUPPLEMENTAL STIPULATED PRO-

TECTIVE ORDER (signed by Judge Wilkes

C. Robinson). Copy to parties. (ds) [Entry

date 12/08/93] [Edit date 12/08/93]

ORDER granting [14-1] motion to Extend

Time to respond to discovery requests

( signed by Judge Wilkes C. Robinson )

Copy to parties. (ds) [Entry date 12/98/93]

MOTION by AMERADA HESS CORP.

(Service : 12/8/93 ) for Confidentiality

Order, and to Expedite decision thereon. Re-

sponse due: 12/27/93 (bh) [Entry date

12/09/93]

NOTICE of change of address by CONOCO,

INC. Service: 12/17/93 (ds) [Entry date

12/20/93]

RESPONSE by USA to [19-1] motion for

Confidentiality Order, [19-2] motion to Ex-

pedite decision thereon. Service: 12/17/93.

Reply due: 1/3/94 (bh) [Entry date 12/20/

93]

ORDER granting [19-1] motion for Con-

fidentiality Order, granting [19-2] motion to

Expedite decision thereon, with the Protec-

tive Order of 9/3/93 expanded to include

Attachment A to [this] order. ( Signed by

Judge Wilkes C. Robinson) Copy to par-

ties. (bh) [Entry date 12/23/93]

5

DATE NO. PROCEEDINGS

12/22/93 23 JOINT MOTION to Extend Time to respond

1/3/94

1/14/94

1/14/94

1/21/94

1/26/94

1/31/94

2/14/94

26

to discovery requests (to January 15, 1994).

(bh) [Entry date 12/30/93]

ORDER granting [23-1] joint motion to Ex-

tend Time to respond to discovery requests

( signed by Judge Wilkes C. Robinson )

oa” to parties. (hw) [Entry date 01/04/

MOTION by USA (Service : 1/14/94 ) to

Amend answers to assert offset claims. Re-

sponse due: 1/31/94 (bh) [Entry date 01/

24/94]

JOINT MOTION to Extend Time for all par-

ties to respond to one anothers’ discovery

requests (to January 31, 1994). (bh) [Entry

date 01/24/94]

ORDER granting [26-1] joint motion to Ex-

tend Time for all parties to respond to one

anothers’ discovery requests. ( signed by

Judge Wilkes C. Robinson ) Copy to parties.

(bh) [Entry date 01/25/94]

MOTION by USA (Service : 1/26/94 ) to

Compel production of documents. Response

due: 2/14/94 (bh) [Entry date 02/01/94]

RESPONSE by CONOCO, INC., AMERADA

HESS CORP. ET AL. to [25-1] motion to

Amend answers to assert offset claims. Serv-

ice: 1/31/94 [Reply date: 2/14/94] (bh)

{Entry date 02/02/94]

RESPONSE by CHEVRON USA INC. to

[28-1] motion tr Compel production of docu-

ments. Service: 2/14/94 Reply due: 2/28/

94 (bh) [Entry date 02/15/94]

6

DATE NO. PROCEEDINGS

2/14/94 $81 MOTION by AMERADA HESS CORP., ET

2/14/94

2/14/94

2/14/94

2/16/94

2/16/94

2/16/94

32

35

36

37

AL. (Service : 2/14/94 ) for Second Supple-

mental Protective Order. Response due: 3/

8/94 (bh). [Entry date 02/15/94]

MOTION by USA (Service : 2/14/94 ) to

Extend Time to reply to third-party plain-

tiff’s discovery requests (to February 16,

1994). (bh) [Entry date 02/16/94]

MOTION by USA (Service : 2/14/94 ) to

Extend Time to reply to plaintiff’s discovery

requests (to February 16, 1994). (bh) [En-

try date 02/16/94]

MOTION by USA (Service : 2/14/94 ) to

Extend Time to reply to the opposition to

motion to amend answers (to February 16,

1994). (bh) [Entry date 02/16/94]

REPLY by USA to response to [25-1] mo-

tion to Amend answers to assert offset

claims. Service: 2/16/94 (ds) [Entry date

02/17/94]

ORDER granting [34-1] motion to Extend

Time to reply to the opposition to motion to

amend answers set Notice of Compliance

deadline to 2/16/94 ( signed by Judge Wilkes

C. Robinson ) Copy to parties. (hw) [Entry

date 02/22/94)

ORDER granting [82-1] motion to Extend

Time to reply to third-party plaintiff's dis-

covery requests. Deadline reset until Febru-

ary 16, 1994 ( signed by Judge Wilkes C.

Robinson ). Copy to parties. (hw) [Entry

date 02/22/94]

7

NT ——————————————————————————ee——____

DATE NO. PROCEEDINGS

2/16/94 88 ORDER granting [33-1] motion to Extend

2/16/94

2/16/94

2/23/94

2/28/94

8/1/94

8/3/94

40

41

44

Time to reply to plaintiff’s discovery re-

quests. Deadline reset until February 16,

1994 (signed by Judge Wilkes C. Robin-

son). Copy to parties. (hw) [Entry date

02/22/94]

ORDER granting [31-1] motion for Second

Supplemental Protective Order ( signed by

Judge Wilkes C. Robinson ). Copy to parties.

(hw) [Entry date 02/22/94]

MOTION by USA (Service : 2/15/94 ) to

Compel production of documents. Response

due: 3/4/94. (hw) [Entry date 02/22/94]

MOTION by CONOCO, INC., AMERADA

HESS CORP., ET AL. (Service by hand:

2/23/94) for Leave to File surreply memo-

randum in response to defendant’s reply to

opposition to motion for leave to amend an-

swers to assert offset claims. Response due:

8/9/94 (bh) [Entry date 02/28/94]

MOTION by USA (Service : 2/28/94 ) to

Extend Time to reply to CHEVRON’S op-

position to motion to compel (to March 2,

1994). (bh) [Entry date 03/04/94]

REPLY by USA to response [by third party

plaintiff, Chevron U.S.A.] to [28-1] motion

to Compel production of documents. Serv-

ice: 3/1/94. (hw) [Entry date 03/07/94]

ORDER scheduling oral argument for March

17, 1994 at 10:00 a.m. ( signed by Judge

Wilkes C. Robinson ). Copy to all parties.

(ds) [Entry date 03/08/94]

DATE

NO.

:

PROCEEDINGS

3/3/94

3/3/94

3/4/94

3/14/94

3/16/94

45

46

47

48

49

ORDER granting [41-1] motion for Leave

to File surreply memorandum in response to

defendant’s reply to opposition to motion for

leave to amend answers to assert offset

claims. ( signed by Judge Wilkes C. Robin-

son ) Copy to parties. (ds) [Entry date

03/08/94]

SUR-REPLY MEMORANDUM by CON-

OCO, INC., OXY USA INC., ET AL. in re-

sponse to USA’s reply to opposition to mo-

tion for leave to amend answers to assert

counterclaims. (ds) [Entry date 03/08/94]

MOTION by USA (Service : 3/4/94 ) to

Withdraw [40-1] motion to Compel by USA.

Response due: 3/21/94 (bh) [Entry date

03/09/94]

MOTION by USA (Service : 3/14/94 ) for

modification of the order of briefing so that

plaintiff’s and third-party plaintiffs’ disposi-

tive motions be filed first, or in the alterna-

tive, to Extend Time to file dispositive mo-

tion (to April 15, 1994). Response due: 3/

31/94 (bh) [Entry date 03/16/94]

MOTION by CONOCO, INC., OXY USA

INC., AMERADA HESS CORP., PENNZ-

OIL EXPLORATION, UNION OIL COM-

PANY, CHEVRON USA INC., MARA-

THON OIL COMPANY, MURPHY EXPLO-

RATION, MURPHY OIL USA, INC.,

AMOCO PRODUCTION (Service: 3/16/

94 ) for Leave to File stipulations and stip-

ulation exhibits Response due: 4/2/93 (mm)

{Entry date 03/21/94]

9

DATE NO.

PROCEEDINGS

8/16/94 50 RESPONSE by CONOCO, INC., OXY USA

3/17/94 -——

3/18/94 51

8/22/94 54

INC., AMERADA HESS CORP., PENNZ-

OIL EXPLORATION, UNION OIL COM-

PANY, CHEVRON USA INC., MARA-

THON OIL COMPANY, MURPHY EXPLO-

RATION, MURPHY OIL USA, INC.,

AMOCO PRODUCTION to [48-1] motion

for modification of the order of briefing, or

in the alternative [48-2] motion to Extend

Time to file dispositive motion Service: 3/

16/94 Reply due: 3/28/94 (mm) [Entry

date 03/22/94]

Oral Argument re: [41-1] motion for Leave

to File surreply memorandum in response to

defendant’s reply to opposition to motion for

leave to amend answers to assert offset

claims. Response due: 3/9/94 by AME-

RADA HESS CORP., CONOCO, INC.

( Transcript due 4/18/94 ) (mm) [Entry

date 03/18/94]

ORDER granting in part, denying in part

[48-1] motion for modification of the order

of briefing; resetting Simultaneous Motions

for Summary Judgment Filing deadline to

4/8/94; setting Joint Status Report dead-

line for 3/25/94; setting Supplemental Brief

deadline to 4/1/94 for plaintiffs and third-

party plaintiffs [defendant to respond 4/8/

94]; and setting Notice of Compliance dead-

line to 3/21/94 for CHEVRON to submit IN

CAMERA documents to the court for in-

spection. ( signed by Judge Wilkes C. Rob-

inson ) Copy to parties. (bh) [Entry date

03/23/94]

TRANSCRIPT of proceedings re: 1 volume,

at Washington, D.C., for date of March 17,

1994 exhibits: . Notice to parties. (mm)

[Entry date 04/01/94]

10

DATE NO. PROCEEDINGS

8/25/94

3/25/94

4/1/94

4/4/94

4/7/94

4/8/94

52

53

55

56

57

58

MOTION by USA (Service : 3/25/94 ) For

leave to exceed the page limitation of its

brief in support of its motion for summary

judgment [totaling 100 pages]. (bh) [Entry

date 03/29/94]

STATUS REPORT by CONOCO, INC., USA,

OXY USA INC., AMERADA HESS CORP.,

PENNZOIL EXPLORATION, UNION OIL

COMPANY, CHEVRON USA INC., MARA-

THON OIL COMPANY, MURPHY EXPLO-

RATION, MURPHY OIL USA, INC.,

AMOCO PRODUCTION, TEXACO INC.,

MOBIL OIL CORP., MOBIL OIL EXPLOR,

SHELL WESTERN E & P, SHELL OFF-

SHORE INC., TEXACO EXPLORATION,

SHELL FRONTIER OIL, MOBIL EXPL &

PRODUC, MOBIL EXPLORATION Service:

3/25/94 (mm) [Entry date 03/29/94]

SUPPLEMENTAL BRIEF by CONOCO,

INC., AMERADA HESS CORP., et al. re:

AMERICOLD case. Service by hand: 4/1/94

(ds) [Entry date 04/02/94]

ORDER granting [52-1] motion For Leave

to exceed the page limitation; and allowing

all parties to expand their briefs up to 100

pages ( signed by Judge Wilkes C. Robin-

son ). Copy to parties. (ds) [Entry date

04/05/94]

MOTION by USA (Service : 4/7/94 ) to Ex-

tend Time for parties to file dispositive mo-

tions until April 12, 1994. Response due:

4/25/94 (rs) [Entry date 04/08/94]

Not'ce of filing proposed order by CONOCO,

INC., OXY USA INC., AMERADA HESS

CORP., PENNZOIL EXPLORATION,

UNION OIL COMPANY, CHEVRON USA

INC., MARATHON OIL COMPANY, MUR-

PHY EXPLORATION, MURPHY OIL

DATE

NO.

11

PROCEEDINGS

4/8/94

4/11/94

4/12/94

4/12/94

4/12/94

4/12/94

4/12/94

59

62

65

USA, INC., AMOCO PRODUCTION filed by

leave of the judge. Service : 4/7/94 (mm)

[Entry date 04/11/94] [Edit date 04/11/94]

RESPONSE by USA to [55-1] memorandum

by AMERADA HESS CORP., CONOCO,

INC., Service: 4/8/94 (mm) [Entry date

04/12/94]

ORDER granting [57-1] motion to Extend

Time for parties to file dispositive motions

set Motion Filing deadline to 4/12/94

(signed by Judge Wilkes C. Robinson). Copy

to parties. (mm) [Entry date 04/12/94]

ORDER filed by leave of the judge. (mm)

[Entry date 04/13/94]

MOTION by USA (Service: 4/12/94) for

Summary Judgment, together with seven

volumes of appendix. [Volume VII of Ap-

pendix placed INCAMERA.] Response due:

5/13/94 (ds) [Entry date 04/14/94]

PROPOSED FINDINGS of Uncontroverted

Fact by USA. Service: 4/12/94 [Volume

II of Proposed Findings placed IN CAM-

ERA.] (ds) [Entry date 04/14/94]

MOTION by CONOCO, INC. (Service: 4/

12/94) for Summary Judgment, together

with four separately bound volumes of ex-

hibits [2 volumes of “Lease Sale” Exhibits;

2 volumes of “Post-Lease” “Moratoria” Ex-

hibits]. Response due: 5/13/94 (ds) [En-

try date 04/14/94]

PROPOSED FINDINGS of Uncontroverted

Fact by CONOCO, INC. Service: 4/12/94

(ds) [Entry date 04/14/94]

12

DATE NO. PROCEEDINGS

4/12/94

4/12/94

4/12/94

4/12/94

4/21/94

4/26/94

5/3/94

5/6/94

66 MOTION by AMERADA HESS CORP. et al.

67

69

70

71

(Service : 4/12/94 ) for Partial Summary

Judgment. Response due: 5/13/94 (rs)

[Entry date 04/14/94]

PROPOSED FINDINGS of Uncontroverted

Fact by AMERADA HESS CORP., et al.

Service: 4/12/94 (rs) [Entry date 04/14/

94]

ORDER granting [49-1] motion for Leave

to File stipulations and stipulation exhibits.

( signed by Judge Wilkes C. Robinson ) Copy

to parties. (rs) [Entry date 04/14/94]

Stipulation of leases together with (FOUR

(4) volumes of exhibits. [five parts total].

(rs) [Entry date 04/14/94]

ORDER entered scheduling a Status Con-

ference for 10:00 a.m. on 4/26/94 ( signed

by Judge Wilkes C. Robinson ) Copy to par-

ties. (mm) [Entry date 04/28/94]

Status Conference held (Transcript due 5/

26/94) (mm) [Entry date 04/29/94]

TRANSCRIPT of proceedings re: 1 volume,

at Washington, D.C., for date of April 26,

1994. Notice to parties. (mm)

ORDER granting [28-1] motion to Compel

production of documents; granting in part,

denying in part [25-1] motion to Amend

answers to assert offset claims; Responses

to [66-1] [64-1] [62-1] motions for Sum-

mary Judgment reset to 5/24/94; Replies to

responses [66-1] [64-1] [62-1] motions for

Summary Judgment, reset to 6/17/94; de-

fendant, plaintiff and 3rd party plaintiff al-

lowed 65 pages for response briefs and 45

pages for reply briefs with plaintiff and 3rd

13

DATE NO. PROCEEDINGS

5/24/94

5/27/94

5/27/94

5/27/94

6/1/94

74

75

76

78

party plaintiff given 100 pages total for both

responses if they file them separately; and

setting Answers and to assert offset claims

deadline to 6/6/94 with plaintiff and 3rd

party plaintiff to respond within 30 days

from FILING. signed by Judge Wilkes C.

Robinson) Copy to parties. (rs) [Entry date

05/16/94]

MOTION by USA (Service: 5/24/94) to

Extend Time within which all parties may

file their responses to dispositive motions,

(until May 27, 1994) and to Extend Time

within which all parties may file any replies

to responses to their motions, (until June 20,

1994). Response due: 6/10/94 (hw) [Entry

date 06/02/94]

RESPONSE by USA to [66-1] motion for

Partial Summary Judgment, [64-1] motion

for Summary Judgment; together with a

separate volume of appendix. Service: 5/

27/94; Reply due: 6/17/94 (per order of

5/6/94) (ds) [Entry date 06/02/94]

STATEMENT OF GENUINE ISSUES in

response to Conoco’s proposed findings of

uncontroverted fact by USA. Service: 5/

27/94 (ds) [Entry date 06/02/94]

STATEMENT OF GENUINE ISSUES in

response to third party plaintiffs’ proposed

findings of uncontroverted fact by USA

Service: 5/27/94 (ds) [Entry date 06/02/

94]

STATEMENT OF GENUINE ISSUES by

CONOCO, INC., OXY USA INC., AMER-

ADA HESS CORP., PENNZOIL EXPLO-

RATION, UNION OIL COMPANY, CHEV-

RON USA INC., MARATHON OIL COM-

DATE NO. PROCEEDINGS

i4

-_—_—_

6/1/94

6/1/94

79

PANY, MURPHY EXPLORATION, MUR-

PHY OIL USA, INC., AMOCO PRODUC-

TION, TEXACO INC., MOBIL OIL CORP.,

MOBIL OIL EXPLOR, SHELL WESTERN

E & P, SHELL OFFSHORE INC., TEX-

ACO EXPLORATION, SHELL FRONTIER

OIL, MOBIL EXPL & PRODUC. and MO-

BIL EXPLORATION filed by leave of

Judge. Service BY HAND: 5/27/94. (as)

[Entry date 06/08/94]

STATEMENT OF GENUINE ISSUES

[FILED UNDER SEAL] by CONOCO,

INC., OXY USA INC., AMERADA HESS

CORP., PENNZOIL EXPLORATION,

UNION OIL CHEVRON USA INC., MARA-

THON OIL COMPANY, MURPHY EXPLO-

RATION, MURPHY OIL USA, INC.,

AMOCO PRODUCTION, TEXACO INC.,

MOBIL OIL CORP., MOBIL OIL EXPLOR,

SHELL WESTERN E & P, SHELL OFF-

SHORE INC., TEXACO EXPLORATION,

SHELL FRONTIER OIL, EXPL &

PRODUC. and MOBIL EXPLORATION

filed by leave of Judge. Service BY HAND:

5/27/94. (as) [Entry date 06/08/94]

RESPONSE by CONOCO, INC., OXY USA

INC., AMERADA HESS CORP., PENNZ-

OIL EXPLORATION, UNION OIL COM-

PANY, CHEVRON USA INC., MARA-

THON OIL COMPANY, MURPHY EXPLO-

RATION, MURPHY OIL USA, INC,

AMOCO PRODUCTION, TEXACO INC.,

MOBIL OIL CORP., MOBIL OIL, EXPLOR,

SHELL WESTERN E & P, SHELL OFF-

SHORE INC., TEXACO EXPLORATION,

SHELL FRONTIER OIL, MOBIL EXPL &

PRODUC. and MOBIL EXPLORATION to

15

PROCEEDINGS

DATE NO.

6/2/94 81

6/2/94 a

6/3/94 82

6/9/94 83

6/17/94 84

6/21/94 85

[62-1] motion for Summary Judgment filed

by leave of Judge. Service BY HAND: 5/

27/94. Reply due: 6/7/94. (as) [Entry date

06/08/94] [Edit date 06/08/94]

ORDER granting [77-1] motion to Extend

Time within which all parties may file their

responses to dispositive motions, granting

[77-2] motion to Extend Time within which

all parties may file any replies to responses

to their motions (signed by Judge Wilkes C.

Robinson) Copy to parties. (tw) [Entry

date 06/08/94]

Deadline updated ; Reply to Response to Mo-

tion reset to 6/20/94 for [66-1] motion for

Partial Summary Judgment, reset to 6/20/

94 for [64-1] motion for Summary Judg-

ment, reset to 6/20/94 for [62-1] motion for

Summary Judgment (tw) [Entry date 06/

08/94]

MOTION by USA (Service: 6/3/94) to Ex-

tend Time to file amended answers [to June

30, 1994]. (as) [Entry date 06/09/94]

ORDER granting [82-1] motion to Extend

Time to file amended answers resetting An-

swers deadline to 6/30/94 (signed by Judge

Marian B. Horn for Judge Robinson) Copy

to parties. (rs) [Entry date 06/14/94]

MOTION by USA (Service: 6/17/94) to

_Extend Time to reply to oppositions to dis-

positive motions [to June 24, 1994]. (as)

{Entry date 06/20/94]

ORDER granting [84-1] motion to Extend

Time to reply to oppositions to dispositive

motions Reply to Response to Motion reset

to 6/24/94 for [66-1] motion for Partial

DATE

NO.

16

PROCEEDINGS

6/24/94

6/27/94

6/27/94

6/27/94

6/27/94

6/30/94

91

Summary Judgment, reset to 6/24/94 for

[64-1] motion for Summary Judgment, re-

set to 6/24/94 for [62-1] motion for Sum-

mary Judgment (signed by Judge Wilkes C.

Robinson) Copy to parties. (ds) [Entry date

06/23/94]

REPLY by USA to response to [62-1] mo-

tion for Summary Judgment. Service: 6/

24/94. (hw) [Entry date 06/27/94]

REPLY by CONOCO, INC. to response to

[62-1] motion for Summary Judgment filed

by leave of Judge. Service: 6/24/94. (as)

[Entry date 06/29/94]

MOTION by USA (Service: 6/27/94) for

Leave to File a corrected brief Response

due: 7/14/94 (rs) [Entry date 06/29/94]

REPLY by CONOCO, INC. to response to

[62-1] motion for Summary Judgment filed

by leave of the judge. Service: 6/24/94

(mm) [Entry date 06/30/94]

REPLY by OXY USA INC., AMERADA

HESS CORP., PENNZOIL EXPLORATION,

UNION OIL COMPANY, CHEVRON USA

INC., MARATHON OIL COMPANY, MUR-

PHY EXPLORATION, MURPHY OIL USA,

INC., AMOCO PRODUCTION to response

to [62-1] motion for Summary Judgment

filed by leave of the judge. Service: 6/24/

94 (mm) [Entry date 06/30/94]

ARTENDED ANSWER to Complaint by USA

asserting offset claims: Service: 6/30/94

(rs) [Entry date 07/05/94]

17

——— OOS

DATE

NO. PROCEEDINGS

7/5/94

7/5/94

7/8/94

7/29/94

8/1/94

8/1/94

8/1/94

8/1/94

8/1/94

12/2/94

100

95

101

ORDER granting [88-1] motion for Leave

to File a corrected brief (signed by Judge

Wilkes C. Robinson) Copy to parties. (rs)

[Entry date 07/08/94]

CORRECTED REPLY BRIEF by USA to

response to [62-1] motion for Summary

Judgment. Service: 7/5/94 (rs) [Entry

date 07/08/94]

SECOND AMENDED ANSWER to Com-

plaint by USA: amends [91-1] answer by

USA. Service: 7/8/94 (as) [Entry date

07/14/94]

RESPONSE by CONOCO, INC. to [91-1]

answer by USA Service: 7/29/94 (rs)

{Entry date 08/05/94]

RESPONSE by SHELL OFFSHORE, INC.

to [94-1] answer by USA. Service: 8/1/94

(as) [Entry date 08/05/94]

RESPONSE by SHELL WESTERN E & P

and SHELL FRONTIER OIL to [94-1]

ansfer by USA. Service: 8/1/94 (as)

[Entry date 08/05/94]

RESPONSE by OXY USA INC. to [94-1]

answer by USA. Service: 8/1/94 (as)

[Entry date 08/05/94]

RESPONSE by AMOCO PRODUCTION to

[94-1] answer by USA. Service: 8/1/94

(as) [Entry date 08/05/94]

RESPONSE by MARATHON OIL COM-

PANY to [94-1] answer by USA. Service:

8/1/94 (as) [Entry date 08/05/94)

ORDER oral argument set for 10:00 1/31/95

for [66-1] motion for Partial Summary

Judgment, [64-1] motion for Summary Judg-

‘18

SSS CLOEEOOOOOE

DATE NO. PROCEEDINGS

ment, [62-1] motion for Summary Judg-

ment (signed by Judge Wilkes C. Robinson)

Copy to parties. (rs) [Entry date 12/07/94]

12/23/94 102 MOTION by USA (Service: 12/23/94) for

Leave to File a supplementary brief, etc.

Response due: 1/9/95 (Supplemental brief

included in motion for leave) (mp) [Entry

date 12/30/94] [Edit date 01/23/95]

1/20/95 103 MOTION by OXY USA INC., AMERADA

HESS CORP., PENNZOIL EXPLORATION,

UNION OIL COMPANY, CHEVRON USA

INC., MARATHON OIL COMPANY, MUR-

PHY EXPLORATION, MURPHY OIL USA,

INC., AMOCO PRODUCTION (Service:

1/20/95) for Leave to File a reply to defend-

ant’s supplemental brief Response due: 2/

6/95 (mp) [Entry date 01/24/95]

1/20/95 104 ORDER granting [102-1] motion for Leave

to File a supplementary brief, etc. (signed

by Judge Wilkes C. Robinson) Copy to par-

ties. (hw) [Entry date 01/25/95}

1/20/95 109 SUPPLEMENTAL PROPOSED FINDINGS

of Uncontroverted Fact by USA. Service:

12/23/94 (mp) [Entry date 02/09/95]

1/26/95 105 MOTION by CONOCO, INC. and OXY USA

INC., et al. (Service BY HAND: 1/26/95)

for Leave to File notice of recent appellate

opinions. Response due: 2/9/95 (as) [Entry

date 01/31/95]

1/27/95 106 ORDER entered granting [103-1] motion for

Leave to File a reply to defendant’s supple-

mental brief (signed by Judge Wilkes C.

Robinson) Copy to parties. (mp) [Entry

date 02/01/95]

‘19

———————— eee

DATE NO. PROCEEDINGS

107 REPLY OXY USA INC., AMERADA

sa a HESS none. PENNZOIL EXPLORATION,

UNION OIL COMPANY, CHEVRON USA

INC., MARATHON OIL COMPANY, MUR-

PHY EXPLORATION, MURPHY OIL USA,

INC., AMOCO PRODUCTION to response

to [102-1] motion for Leave to File a supple-

mentary brief, etc. Service: copy to defend-

aut and plaintiff (mp) [Entry date 02/01/

95]

1/30/95 108 MOTION by CONOCO, INC. (Service by

hand: 1/30/95) for Leave to File a reply

to defendant’s supplementary brief and

CONOCO’s reply. Response due: 2/13/95

(hw) [Entry date 02/02/95]

1/31/95 — Oral Argument held re: [66-1] motion for

Partial Summary Judgment by AMERADA

HESS CORP. (Transcript due 3/2/95), [64-

1] motion for Summary Judgment by CON-

OCO, INC. (Transcript 3/2/95), [62-1] mo-

tion for Summary Judgment by USA (Tran-

script due 3/2/95) (mp) [Entry date 02/01/

95]

2/9/95 110 TRANSCRIPT of proceedings re:, 1 volume,

at Washington, D.C., for date of January 31,

1995. Notice to parties. (mp) [Entry date

02/10/95]

2/18/95 111 ORDER entered granting [105-1] motion

for Leave to File notice of recent appellate

opinions (signed by Judge Wilkes C. Robin-

son) Copy to parties. (mp) [Entry date

02/17/95]

2/18/95 112 NOTICE of recent applelate opinions by

CONOCO, INC., OXY USA INC., AMER-

ADA HESS CORP., PENNZOIL EXPLO-

RATION, UNION OIL COMPANY, CHEV-

20

DATE NO. PROCEEDINGS

8/8/95

3/21/95

3/21/95

3/21/95

8/27/95

4/3/95

113

114

11E

116

117

118

RON USA INC., MARATHON OIL COM-

PANY, MURPHY EXPLORATION, MUR-

PHY OIL USA, INC., AMOCO PRODUC-

TION Service: 1/26/95 (mp) {| ‘ntry date

02/17/95]

MOTION by CONOCO, INC., AMERADA

HESS CORP. (Service: 3/8/95) for Leave

to File notice of recent Appellate Opinion.

Response due: 3/27/95 (hw) [Entry date

03/13/95]

RESPONSE by USA (Service: 3/21/95) to

[113-1] motion for Leave to File notice of

recent Appellate Opinion, [108-1] motion for

Leave to File a reply to defendant’s supple-

mentary brief and CONOCO’s reply, [105-1]

motion for Leave to File notice of recent

appellate opinions Reply due: 4/3/95 (mp)

[Entry date 03/23/95]

ORDER entered granting [113-1] motion

for Leave to File notice of recent Appellate

Opinion (signed by Judge Wilkes C. Robin-

son) Copy to parties. (mp) [Entry date 03/

23/95]

NOTICE of recent Appellate Opinion by

CONOCO, INC. Service: to plaintiff coun-

sel. (mp) [Entry date 03/23/95]

ORDER entred [sic] granting [114-1] mo-

tion response (signed by Judge Wilkes C.

Robinson). Copy to parties. (mp) [Entry

date 03/30/95]

MOTION by CONOCO, INC., OXY USA

INC., et al. (Service BY HAND: 4/3/95)

for Leave to File reply to Defendant’s post

argument submission. Response due: 4/17/

95 (as) [Entry date 04/05/95}

i . a

21

DATE

NO. PROCEEDINGS

4/6/95

4/11/95

4/17/95

4/17/95

4/18/95

4/18/95

119

120

121

122

128

124

ORDER granting [118-1] motion for Leave

to File reply to Defendant’s post argument

submission (signed by Judge Wilkes C.

Robinson). Copy to parties. (ss) [Entry

date 04/10/95]

MOTION by USA (Service: 4/11/95) to

Suspend the issuance of a decision by the

court on the parties motions for summary

judgment Response due: 4/28/95 (mp)

{Entry date 04/13/95]

RESPONSE by OXY USA INC., AMER-

ADA HESS CORP., et al. (Service: 4/17/

95) to [120-1] motion to Suspend the issu-

ance of a decision by the court on the parties

motions for summary judgment. Reply due:

5/1/95 (as) [Entry date 04/19/95]

RESPONSE by CONOCO, INC. (Service BY

HAND: 4/17/95) to [120-1] motion to Sus-

pend the issuance of a decision by the court

the parties motions for summary judgment.

Reply due: 4/26/95 (as) [Entry date 04/

19/95)

MOTION by SHELL WESTERN E & P,

SHELL OFFSHORE INC., SHELL FRON-

TIER OIL (Service: 4/18/95) to substitute

attorney (consented) Terminated attorney

E. Edward Bruce for SHELL FRONTIER

OIL, attorney E. Edward Bruce for SHELL

OFFSHORE INC., attorney E. Edward

Bruce for SHELL WESTERN E & P Added

Michael E. Coney. (mp) [Entry date 04/

20/95]

JOINT MOTION by SHELL WESTERN FE

& P, SHELL OFFSHORE INC., SHELL

FRONTIER OIL to Dismiss (mp) [Entry

date 04/20/95)

22

DATE

NO.

PROCEEDINGS

4/21/95

4/26/95

5/1/95

5/1/95

5/4/95

5/4/95

125

126

127

128

129

130

UNPUBLISHED DECISION granting [124-

1] joint motion to Dismiss (signed by

Judge Wilkes C. Robinson). Copy to par-

ties. (as)

REPLY by USA to response to [120-1] mo-

tion to Suspend the issuance of a decision by

the court on the parties motions for sum-

mary judgment. Service: 4/26/95 (as) [En-

try date 05/01/95]

ORDER denying [120-1] motion to Suspend

the issuance of a decision by the court on the

parties motions for summary judgment

(signed by Judge Wilkes C. Robinson). Copy

to parties. (as) [Entry date 05/03/95]

MOTION by AMERADA HESS CORP.,

PENNZOIL EXPLORATION, UNION OIL

COMPANY, CHEVRON USA INC., MARA-

THON OIL COMPANY, MURPHY EX-

PLORATION, MURPHY OIL USA, INC.,

AMOCO PRODUCTION, TEXACO INC.,

MOBIL OIL CORP., MOBIL OIL EXPLOR,

SHELL WESTERN E & P, SHELL OFF-

SHORE INC., TEXACO EXPLORATION,

SHELL FRONTIER OIL, MOBIL EXPL &

PRODUC, MOBIL EXPLORATION (Serv-

ice: 5/1/95) for Leave to File surreply mem-

orandum. Response due: 5/18/95. (as)

[Entry date 05/03/95]

ORDER granting [128-1] motion for Leave

to File surreply memorandum (signed by

Judge Wilkes C. Robinson) Copy to parties.

(hw) [Entry date 05/08/95]

SURREPLY MEMORANDUM by CONOCO,

INC., AMERADA HESS CORP., PENNZ-

OIL EXPLORATION, UNION OIL COM-

DATE

NO.

23

PROCEEDINGS

6/20/95

6/20/95

6/23/95

6/23/95

7/7/95

181

132

133

134

135

PANY, CHEVRON USA INC., MARA-

THON OIL COMPANY, MURPHY ExX-

PLORATION, MURPHY OIL USA, INC.,

AMOCO PRODUCTION re: [126-1] motion

reply by USA Service: 5/4/95 (hw) [Entry

date 05/08/95]

MOTION by OXY USA INC. (Service:

6/19/95) to substitute attorney (consented)

Terminated attorney E. Edward Bruce for

OXY USA INC. Added Thomas Lee Byers.

(mp) [Entry date 06/22/95]

JOINT MOTION by USA, OXY USA INC.

to Dismiss (mp) [Entry date 06/22/95]

ORDER granting [132-1] joint motion to

Dismiss (signed by Judge Wilkes C. Robin-

son) Copy to parties. (ds) [Entry date 06/

26/95]

JUDGMENT entered pursuant to Rule 54 (b)

dismissing, with prejudice, all the claims and

complaints of OXY USA, Inc., related to the

North Carolina and Florida leases, and also

dismissing, without prejudice, the offset

claim of the United States (signed by Clerk).

Copy to parties. (tw) [Entry date 07/05/95]

MOTION by SHELL WESTERN E & P,

SHELL OFFSHORE INC., SHELL FRON-

TIER OIL (Service: 7/7/95) to substitute

attorney (consented) Terminated attorney

Michael E. Coney for SHELL FRONTIER

OIL, SHELL OFFSHORE INC., and SHELL

WESTERN E & P Added E. Edward Bruce.

(ds) [Entry date 07/17/95]

24

—_—

———————$$—$——L—_—_— LL ——=[===—

DATE

NO.

a

7/14/95

7/19/95

7/19/95

7/21/95

7/28/95

7/28/95

7/31/95

136

137

138

139

140

141

142

MOTION by USA (Service: 7/14/95) for

Leave to File joint notification of settlement

discussions, and notice. Response due: 7/

31/95. (hw) [Entry date 07/18/95]

MOTION by USA (Service: 7/19/95) for

Leave to File additional joint notification of

progress of settlement discussions. (as) [En-

try date 07/21/95]

ORDER granting [136-1] motion for Leave

to File joint notification of settlement dis-

cussions, and notice (signed by Judge Wilkes

C. Robinson). Copy to parties. (mp) [Entry

date 07/24/95]

ORDER granting [137-1] motion for Leave

to File additional joint notification of prog-

ress of settlement discussions (signed by

Judge Wilkes C. Robinson) Copy to parties.

(hw) [Entry date 07/25/95]

Stipulation by PENNZOIL EXPLORATION,

UNION OIL COMPANY, CHEVRON USA

INC., MURPHY EXPLORATION, MUR-

PHY OIL USA, INC., AMOCO PRODUC-

TION, TEXACO INC., MOBIL OIL CORP.,

MOBIL OIL EXPLOR, TEXACO EXPLO-

RATION and USA of agreement for judg-

ment entry. (as) [Entry date 08/01/95]

JOINT MOTION by USA and SHELL OFF-

SHORE INC. to Dismiss. (as) [Entry date

08/01/95]

MOTION by AMERADA HESS CORP.

(Service BY HAND: 7/31/95) for Leave to

File memorandum re: litigation status. Re-

sponse due: 8/14/95 (as) [Entry date 08/

04/95]

a rn o

25

— ooo eo

DATE NO. PROCEEDINGS

7/31/95

8/1/95

8/7/95

8/7/95

8/7/95

8/7/95

8/8/95

8/8/95

143

144

145

146

147

148

149

150

MOTION by AMERADA HESS CORP.

(Service: 7/31/95) for Leave to File pro-

posed order. (ss) [Entry date 08/04/95]

Stipulation by CONOCO, INC. and USA of

agreement for judgment’s entry. (as) [En-

try date 08/04/95]

UNPUBLISHED DECISION granting [144-

1] stipulation and directing Clerk to enter

judgment accordingly (signed by Judge

Wilkes C. Robinson). Copy to parties. (as)

[Entry date 08/08/95]

ORDER granting [141-1] joint motion to

Dismiss (signed by Judge Wilkes C. Robin-

son). The Clerk is directed to dismiss with

prejudice the claims specifically listed on the

7/28/95 joint motion to dismiss. Copy to

parties. (ss) [Entry date 08/09/95]

ORDER granting [140-1] stipulation. The

Clerk is directed to enter judgment accord-

ing to the 7/28/95 stipulation (signed by

Judge Wilkes C. Robinson). Copy to parties.

(ss) [Entry date 08/09/95]

ORDER granting [142-1] motion for Leave

to File memorandum re: litigation status

(signed by Judge Wilkes C. Robinson).

Copy to parties. (ss) [Entry date 08/09/

95]

ORDER granting [143-1] motion for Leave

to File proposed order (signed by Judge

Wilkes C. Robinson). Copy to parties. (ss)

[Entry date 08/09/95]

JUDGMENT entered pursuant to Rule 54 (b)

awarding third-party plaintiffs the sums as

set forth in the July 28, 1995, stipulation for

26

DATE NO.

PROCEEDINGS

8/8/95

8/9/95

8/10/95

153

151

152

compromise settlement and entry of final

judgment under RUSCFC 54(b). (See stip-

ulation in file) (signed by Clerk). Copy to

parties. (tw) [Entry date 08/10/95}

CERTIFIED TRANSCRIPT OF JUDG-

MENT awarding the third-party plaintiffs

picked up by John Stephan this date. (See

letter of authorization from attorney of rec-

ord in file.) (tw) [Entry date 08/15/95]

JUDGMENT entered pursuant te Rule 54 (b)

dismissing, with prejudice, all the remaining

claims related to the interest of Shell Off-

shore Inc. (“SOI”), which were excluded

from the Court’s order of April 21, 1995,

specifically those which relate to SOI’s in-

terests in the leases as listed in the July 28,

1995, joint motion to dismiss. (See stipula-

tion in file.) (signed by Clerk). Copy to

parties. (tw) [Entry date 08/10/95]

JUDGMENT entered pursuant to Rule 58

awarding plaintiff, Conoco Inc., the sum of

$16,917,413.34 in complete adjudication of

all the claims of Conoco Inc. that are the sub-

ject of this case. If said amount is not paid

within forty (40) days after the date hereof,

it shall bear interest dating from the date

hereof until payment under the rate specified

in 41 U.S.C. ss 611. Payment of said Judg-

ment shall be made to Conoco by wire trans-

fer of immediately available funds to: Mor-

gan Guaranty Trust Company, 60 Wall

Street, New York, New York, ABA No.

023100238, Account No. 7341-00-006 (Conoco

Inc.). The offset claims of the United States

as made in its Amended Answer dated Jan-

DATE NO.

27

PROCEEDINGS

8/10/95

9/7/95

9/11/95

9/14/95

9/18/95

9/18/95

9/29/95

154

155

156

157

158

159

160

uary 14, 1994, are hereby dismissed without

prejudice (signed by Clerk). Copy to par-

ties. (tw)

CERTIFIED TRANSCRIPT OF JUDG-

MENT forwarded to attorney of record. See

letter in file. (tw) [Entry date 09/05/95)

MOTION by AMERADA HESS CORP.

(Service BY HAND: 9/7/95) for Leave to

File appellate opinion. Response cue: 9/21/

9) (as) [Entry date 09/11/95]

MOTION by USA (Service: 9/11/95) for

Leave to File response (by September 29,

1995) regarding recent appellate opinion

(WINSTAR). Response due: 9/28/95. (hw)

[Entry date 09/14/95]

RESPONSE by CONOCO, INC. (Service:

9/14/95 by hand) to [156-1] motion for

Leave to File response (by September 29,

1995) regarding recent appellate opinion

(WINSTAR). Reply due: 9/25/95 (ss) [En-

try date 09/19/95]

ORDER granting [155-1] motion for Leave

to File appellate opinion (signed by Judge

Wilkes C. Robinson). Copy to parties. (as)

[Entry date 09/20/95]

ORDER granting [156-1] motion for Leave

to File response (by September 29, 1995)

regarding recent appellate opinion (WIN-

STAR) (signed by Judge Wilkes C. Robin-

son). Copy to parties. (as) [Entry date 09/

20/95)

MEMORANDUM by USA re: [159-1] order

feffects of Appeals decision in Winstar].

Service: 9/29/95 (as) [Entry date 10/04/

95]

DATE NO. PROCEEDINGS

10/5/95

11/3/95

11/3/95

11/3/95

11/3/95

11/3/95

11/3/95

161

162

163

164

165

166

167

RESPONSE by CONOCO, INC. to [160-1]

memorandum by USA [filed by leave of the

Judge]. Service: 10/2/95. (hw) [Entry date

10/11/95]

G.A.0. Certificate of Settlement Number:

Z-2897391, Dated: August 23, 1995 in the

Amount: $2,249,818.00 was Paid by Treas-

ury Dept.: August 25, 1995. (as) [Entry

date 11/09/95]

G.A.O. Certificate of Settlement Number:

Z-2897391, Dated: August 23, 1995 in the

Amount: $20,038,839.00 was Paid by Treas-

ury Dept.: August 25, 1995 (as) [Entry date

11/09/95]

G.A.O. Certificate of Settlement Number:

Z-2897391, Dated: August 23, 1995 in the

Amount: $65,085,621.00 was Paid by Treas-

ury Dept.: August 25, 1995. (as) [Entry

date 11/09/95]

G.A.O. Certificate of Settlement Number:

Z-2897391, Dated: August 23, 1995 in the

Amount: $37,924,432.00 was Paid by Treas-

ury Dept.: August 25, 1995. (as) [Entry

date 11/09/95]

G.A.O. Certificate of Settlement Number:

Z-2897391, Dated: August 23, 1995 in the

Amount: $2,844,123.00 was paid by Treas-

ury Dept.: August 25, 1995. (as) [Entry

date 11/09/95]

G.A.O. Certificate of Settlement Number:

Z-2897391, Dated: August 23, 1995 in the

Amount: $4,085,402.00 was Paid by Treas-

ury Dept.: August 25, 1995. (as) [Entry

date 11/09/95]

29

i

NO. PROCEEDINGS

11/3/95

11/3/95

11/3/95

12/12/95

1/2/96

1/24/96

1/29/96

168

170

171

172

174

G.A.O. Certificate of Settlement Number:

Z-2897391, Dated: August 23, 1995 in the

Amount: $8,681,909.00 was Paid by Treas-

ury Dept.: August 25, 1995. (as) [Entry

date 11/09/95]

G.AO. Certificate of Settlement Number:

Z-2897391, Dated: August 23, 1995 in the

Amount: $34,089, 856.00 was Paid by Treas-

ury Dept.: August 25, 1995. (as) [Entry

date 11/09/95]

G.A.O. Certificate of Settlement Number:

Z-2897391, Dated: August 23, 1995 in the

Amount: $16,917,413.34 was Paid by Treas-

ury Dept.: August 25, 1995. (as) [Entry

date 11/09/95]

MOTION by USA (Service: 12/12/95) for

Leave to File additional commentary on Win-

star. Response due: 12/29/95 (as) [Entry

date 12/14/95]

RESPONSE by CONOCO, INC. (Service:

12/20/95) to [171-1] motion for Leave to

File additional commentary on Winstar.

(Filed by leave of the Judge), Reply due:

1/5/96 (st) [Entry date 01/05/96]

MOTION by USA (Service : 1/24/96 ) for

Leave to File joint notification of progress

of settlement discussions, and notices. Re-

sponse due: 2/12/96. (hw) [Entry date 01/

31/96)

MOTION by USA (Service : 1/29/96 ) for

Leave to File reply to response to its supple-

mental report, (by leave of the Judge). Re-

sponse due: 2/12/96. (hw) [Entry date 02/

05/96]

DATE

1/31/96

2/8/96

3/6/96

8/14/96

3/26/96

4/1/96

4/1/96

NO

. PROCEEDINGS

30

175 ORDER granting [173-1] motion for Leave

176

177

179

180

181

to File joint notification of progress of set-

tlement discussions and notices (signed by

Judge Wilkes C. Robinson). Copy to parties.

(as) [Entry date 02/07/96]

RESPONSE by AMERADA HESS CORP.,

MARATHON OIL COMPANY, MOBIL OIL

CORP. and MOBIL EXPL & PRODUC

(Service: 1/31/96) to [173-1] motion for

Leave to File joint notification of progress

of settlement discussions and notices by leave

of the Judge. (as) [Entry date 02/13/96]

MOTION by USA (Service : 3/6/96 ) for

Leave to File joint notification of progress

of settlement discussions, and notice, (hw)

[Entry date 03/11/96]

PUBLISHED DECISION granting [66-1]

motion for Partial Summary Judgment,

granting [64-1] motion for Summary Judg-

ment and denying [62-1] motion for Sum-

mary Judgment (signed by Judge Wilkes C.

Robinson). Copy to parties. (as) [Entry

date 03/21/96)

MOTION by USA (Service : 3/26/96 ) for

Reconsideration/Rehearing Pursuant to Rule

59 re: [178-1] order. (ss) [Entry date 04/

01/96)

ORDER Response to [179-1] motion for Re-

consideration/Rehearing Pursuant to Rule

59 re: [178-1] order reset to 4/15/96

(signed by Judge Wilkes C. Robinson). Copy

to parties. (as) [Entry date 04/04/96]

PUBLISHED DECISION granting [66-1]

motion for Partial Summary Judgment on

breach of contract claims, denying [62-1]

31

—_—

DATE NO.

4/15/96 182

4/19/96 183

4/26/96 184

5/1/96 185

5/3/96 186

PROCEEDINGS

motion for Summary Judgment and for sum-

mary judgment on the Fifth Amendment

taking issue and Withdrawing and substitut-

ing [178-1] order with said decision (signed

by Wilkes C. Robinson). Copy to parties.

(as) [Entry date 04/04/96]

RESPONSE by AMERADA HESS CORP.

(Service: 4/15/96 ) to [179-1] motion for

Reconsideration /Rehearing Pursuant to Rule

59 re: [178-1] order. (ss) [Entry date 04/

18/96]

MOTION by AMERADA HESS CORP.

(Service : 4/19/96) for entry of final judg-

ment. Response due: 5/6/96 (ss) [Entry

date 04/24/96]

ORDER denying [179-1] motion for Recon-

sideration/Rehearing Pursuant to Rule 59

re: [178-1] order (signed by Judge Wilkes

C. Robinson). Copy to parties. (as) [Entry

date 05/01/96]

MOTION by USA (Service: 5/1/96) to

Strike [183-1] motion for entry of final judg-

ment by AMERADA HESS CORP., or in the

alternative to Stay consideration of that mv-

tion until after the status conference speci-

fied by the court in its 3/14/96 decision is

held, or in the alternative to Extend Time to

respond to motion requests extension of 28

days from the date of the order. Response

date: 5/20/96. (st) [Entry date 05/06/96)

[Edit date 05/06/96]

RESPONSE by CONOCO, INC. (Service:

5/3/96 ) to [185-1] motion to Strike [183-1]

motion for entry of final judgment by AME-

RADA HESS CORP. Reply due: 5/15/96

(ss) [Entry date 05/08/96)

32

————— ——

DATE NO. PROCEEDINGS

5/7/86 187 ORDER returning defendant’s motion for

5/9/96

5/9/96

5/16/96

5/16/96

5/23/96

6/14/96

188

189

192

leave to file a reply to plaintiff's response to

defendant’s motion for reconsideration

[moot] (signed by Judge Wilkes C. Robin-

son). Copy to parties. (as) [Entry date

05/10/96]

ORDER scheduling Status Conference for

10:00am, 5/16/96 ( signed by Judge Wilkes

C. Robinson ) Copy to parties. (hw) [Entry

date 05/14/96]

ORDER denying [183-1] motion for entry

of final judgment. The court shall proceed

with a formal status conference, to be sched-

uled ( signed by Judge Wilkes C. Robinson ).

Copy to parties. (ss) [Entry date 05/14/96]

ORDER set joint Status Report deadline to

6/17/96 and set third party plaintiff’s Mo-

tion Filing deadline to 6/24/96 (signed by

Judge C. Robinson). Copy to parties. (as)

[Entry date 05/20/96]

Status Conference held. ( Transcript due

6/17/96 ) (ss) [Entry date 05/21/96]

TRANSCRIPT of proceedings re: 1 volume,

at Washington, D.C., for date of May 16,

1996. Notice to parties. (ss) [Entry date

05/29/96]

MOTION by OXY USA INC., AMERADA

HESS CORP., PENNZOIL EXPLORATION,

UNION OIL COMPANY, CHEVRON USA

INC., MARATHON OIL COMPANY, MUR-

PHY EXPLORATION, MURPHY OIL USA,

INC., AMOCO PRODUCTION, SHELL

OFFSHORE INC, TEXACO EXPLORA-

TION, SHELL FONTIER OIL, MOBIL

EXPL & PRODUC, MOBIL EXPLORA-

33

OOOO lS

DATE

NO. PROCEEDINGS

6/18/96

6/27/96

6/28/96

6/28/96

7/2/96

7/5/96

7/10/96

193

197

194

195

196

198

199

TION (Service: 6/14/96) to Extend Time

to file a motion of reconsideration until 7/

8/96. Response due: 7/1/96 (st) [Entry

date 06/18/96]

ORDER granting [192-1] motion to Extend

Time to file a motion of reconsideration, re-

set Status Report deadline to 7/1/96 and

reset Motion Filing deadline to 7/8/96

(signed by Judge Wilkes C. Robinson). Copy

to parties. (as) [Entry date 06/20/96]

NOTICE of change of address by Mark Ar-

nold Melnick [] (rs) [Entry date 07/11/96]

MOTION by CONOCO, INC. (Service : 6/

28/96 ) to Extend Time Response due: 7/

15/96 (hw) [Entry date 07/03/96]

MOTION by CONOCO, INC. and AME-

RADA HESS CORP., et al. (Service: 6/28/

96) to Extend Time within which to file a

joint status report and proposal for further

proceedings [until 7/15/96]. (tw) [Entry

date 07/03/96]

ORDER granting [195-1] motion to Extend

Time within which to file a joint status re-

port and proposal for further proceedings,

reset Status Report deadline to 7/8/96 and

reset Motion Filing deadline to 7/15/96

(signed by Judge Wilkes C. Robinson). Copy

to parties. (as) [Entry date 07/10/96]

MOTION by USA (Service: 7/5/96) to Ex-

tend Time to file proposed schedules for fur-

ther proceedings until 7/10/96. Response

due: 7/22/96 (st) [Entry date 07/11/96]

Joint STATUS REPORT by USA, AME-

RADA HESS CORP., PENNZOIL EXPLO-

RATION, UNION OIL COMPANY, CHEV.

34

—eoaaeaeaeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee

DATE NO. PROCEEDINGS

7/10/96

7/17/96

7/30/96

8/1/96

200

201

202

RON USA INC., MARATHON OIL COM-

PANY, MURPHY EXPLORATION, MUR-

PHY OIL USA, INC., AMOCO PRODUC-

TION, TEXACO INC., MOBIL OIL CORP.,

MOBIL OIL EXPLOR, SHELL WESTERN

E & P, SHELL OFFSHORE INC., TEXACO

EXPLORATION, SHELL FRONTIER OIL,

MOBIL EXPL & PRODUC and MOBIL EX-

PLORATION. Service: 7/10/96. (hw) [En-

try date 07/15/96]

MOTION by AMERADA HESS CORP.,

UNION OIL COMPANY, CHEVRON USA

INC., MARATHON OIL COMPANY, MUR-

PHY EXPLORATION, AMOCO PRODUC-

TION, MOBIL EXPL & PRODUC (Service:

7/10/96) For reconsideration of [189-1]

order under Rule 83.2. (as) [Entry date 07/

15/96]

ORDER Response to [200-1] motion For

reconsideration of [189-1] order under Rule

83.2 set to 7/31/96 (signed by Judge Wilkes

C. Robinson). Copy to parties. (as) [Entry

date 07/19/96]

MOTION by USA (Service : 7/30/96 ) to

Extend Time within which to respond to

motion for reconsideration, (until August 6,

1996). Response due: 8/16/96. (hw) [En-

try date 08/05/96]

ORDER granting [202-1] motion to Extend

Time within which to respond to motion for

reconsideration and Response to [200-1] mo-

tion For reconsideration of [189-1] order

under Rule 83.2 reset to 8/6/96 (signed by

Judge Wilkes C. Robinson). Copy to parties.

(as) [Entry date 08/07/96]

35

DATE NO.

PROCEEDINGS

8/6/96 204 RESPONSE by USA (Service: 8/6/96 ) to

8/20/96 205

9/6/96 206

9/24/96 207

10/2/96 208

10/3/96 209

[200-1] motion For reconsideration of

[189-1] order under Rule 83.2. Reply due:

8/19/96 (ss) [Entry date 08/12/96]

REPLY by OXY USA INC., et al. to re-

sponse to [200-1] motion For reconsidera-

tion of [189-1] order under Rule 83.2 by

leave of the Judge. Service: 8/15/96 (as)

[Entry date 08/26/96]

ORDER denying [200-1] motion For recon-

sideration of [189-1] order under Rule 83.2.

The parties shall file a joint proposed sched-

ule for further proceedings within thirty

days ( signed by Judge Wilkes C. Robinson ).

Copy to parties. (hw) [Entry date 09/14/96]

Stipulation by USA, UNION OIL COM-

PANY, CHEVRON USA INC., MURPHY

EXPLORATION, MURPHY OIL USA, INC.,

AMOCO PRODUCTION of settlement and

compromise. (as) [Entry date 09/30/96]

UNPUBLISHED DECISION (signed by

Judge Wilkes C. Robinson). Copy to parties.

(as) [Entry date 10/04/96]

PARTIAL JUDGMENT entered pursuant to

Rule 58, that third party plaintiff, Amoco

Production Company shall recover of and

from the United States the sum of $3,603,-

874.00 payable by wire to Chase Manhattan

Bank, New York, NY, ABA #021000021,

for credit to Amoco Production Company,

Account +#9102499747; that third party

plaintiff, Chevron U.S.A. Inc., shall recover

of and from the United States the sum of

$23,496,100.00 payable by wire to First Na-

tional Bank of Chicago, Ilinois, ABA +071-

000013, for credit to Chevron U.S.A. Oil &

Gas, Account # 59-51704; that third party

36

|

DATE NO. PROCEEDINGS

10/4/96

10/7/96

10/8/96

10/28/96

11/8/96

210

211

212

213

214

plaintiff, Murphy Exploration Production

Company shall recover of and from the

United States the sum of $2,656,584.00 pay-

able by wire to First National Bank of FE!

Dorado, Arkansas, ABA +082900911, for

credit to Murphy Exploration & Production

Company, Account #472884 and third party

plaintiff, Union Oil Company of California

shall recover of and from the United States

the sum of $11,865,803.00 payable by wire

to Northern Trust Co., Chicago, Illinois,

ABA +#071000152, for credit to Union Oil

Company of California, Account #247731.

The judgment entered herein shall bear in-

terest, dating from sixty (60) days from

the date that is is submitted by subject third

party plaintiffs for payment until payment,

under the rate specified in 41 U.S.C. Subsec-

tion 611 (signed by Clerk). Copy to parties.

(as) [Entry date 10/07/96] [Edit date 10/

07/96]

CERTIFIED TRANSCRIPT OF JUDG-

MENT picked up in person by attorney of

record. See letter in file. (as) [Entry date

10/07/96]

Joint Additional Documentation [proposed

schedule for further proceedings]. (as)

[Entry date 10/09/96]

ORDER set Joint Proposed Discovery dead-

line to 10/28/96 (signed by Judge Wilkes

C. Robinson). Copy to parties. (as) [Entry

date 10/09/96]

Additional Documentation [joint proposal

for scheduling]. (as) [Entry date 11/05/96]

Stipulation of agreement pursuant to

RUSCFC 54(b). (as) [Entry date 11/13/96]

37

DATE NO.

PROCEEDINGS

11/13/96 215

11/14/96 216

11/15/96 217

11/18/96 218

12/16/96 219

UNPUBLISHED DECISION (signed by

Judge Wilkes C. Robinson). Copy to par-

ties. (as) [Entry date 11/15/96]

SCHEDULING ORDER setting Pretrial

Conference for 10:00 a.m. on 4/18/97; Third

Party Plaintiff’s Appendix G deadline on on

2/28/97 and 3/14/97, and expert witnesses

list no later than 2/14/97; Defendant’s Ap-

pendix G deadline on 4/11/97; Brief dead-

line set on 12/13/96 and Trial deadline set

on 9:00 a.m. on 5/5/97 (by Judge Wilkes

C. Robinson). Copy to parties. (as) [Entry

date 11/19/96]

PARTIAL JUDGMENT entered pursuant to

Rule 58 that third party plaintiff, Amerada

Hess Corporation, recover of and from the

United States the amount of $39,259,703.40.

The judgment entered herein shall bear in-

terest, dating from fifty (50) days from the

date that it is submitted by subject third

party plaintiff for payment until payment is

made in full, under the rate specified in 41

U.S.C. subsection 611. Payment shall be

made by wire to Chase Manhattan Bank,

New York, New York, ABA #021000021,

for credit to Amerada Hess Corporation

Account #910-2-475200 (signed by Clerk).

Copy to parties. (as) [Entry date 11/20/96]

CERTIFIED TRANSCRIPT OF JUDG-

MENT forwarded to attorney of record. See

letter in file. (as) [Entry date 11/21/96]

MOTION by USA (Service : 12/16/96 ) to

Amend [216-1] Scheduling order, re: en-

large time to depose witness to 1/31/97. Re-

sponse due: 1/2/97. (hw) [Entry date 12/

19/96]

38

—

—— ——

PROCEEDINGS

DATE NO.

12/23/96 220

1/3/97 221

2/5/97 222

2/10/97 223

2/13/97 224

2/18/97 225

ORDER granting [219-1] motion to Amend

[216-1] Scheduling order (signed by Judge

Wilkes C. Robinson). Copy to parties. (as)

[Entry date 12/30/96]

MOTION by MOBIL EXPLORATION,

MARATHON OIL COMPANY (Service BY

HAND: 1/3/97) to Compel discovery, to

Amend [216-1] Scheduling and for an im-

mediate discovery conference. [Exhibit B

PLACED IN CAMERA]. Response due:

1/17/97 (as) [Entry date 01/07/97] [Edit

date 01/07/97]

MOTION by OXY USA INC., et al. (Serv-

ice BY HAND: 2/5/97) for an immediate

status conference. Response due: 2/19/97

(as) [Entry date 02/10/97]

MOTION by USA (Service : 2/10/97 By

hand) to Amend [216-1] Scheduling order.

Response due: 2/24/97 (ss) [Entry date

02/12/97]

ORDER reset Defendant’s Appendix G dead-

line on 6/6/97, Plaintiff’s Appendix G dead-

line on 4/4/97, reset Expert Report due:

3/28/97 for MOBIL EXPLORATION, reset

Pretrial Conference for 6/13/97 and reset

Trial for 6/23/97 (signed by Judge Wilkes

C. Robinson). Copy to parties. (as) [Entry

date 02/18/97]

ORDER mooting [221-1] motion to Compel

discovery, mooting [221-2] motion to Amend

[216-1] Scheduling and, mooting [221-3]

motion (signed by Judge Wilkes C. Robin-

son). Copy to parties. (as) [Entry date

02/19/97]

39

DATE NO. PROCEEDINGS

2/19/97 227

2/26/97 226

3/12/97

3/13/97

3/31/97

228

229

230

Notice of reassignment to Judge James T.

Turner. Copy to parties. (as) [Entry date

03/13/97]

ORDER granting [223-1] motion to Amend

[216-1] Scheduling order amending cap-

tioned style, reset Trial for 10:00 a.m. on

7/21/97 and reset Pretrial Conference for

10:30 a.m. on 7/9/97 (signed by Judge

Wilkes C. Robinson). Copy to parties. (as)

{Entry date 03/04/97]

JOINT MOTION by USA, MARATHON

OIL COMPANY to revise scheduling order,

re: (1) Depositions of defendant’s expert

witnesses shall be taken on or before March

20, 1997; (2) Plaintiffs shall provide the

expert report by April 3, 1997; (3) Plain-

tiffs shall file their final exhibit lists, witness

list and memoranda of contentions of law

and fact, etc., by April 10, 1997; (4) Dep-

ositions of plaintiffs’ expert witnesses shall

be taken on or before May 22, 1997; and (5)

Defendant shall file its final exhibit lists,

final witness list, and memoranda of con-

tentions of law and fact with the court by

June 12, 1997 (hw) [Entry date 03/17/97]

ORDER granting [228-1] joint motion to

revise scheduling order, reset Expert Report

due: 4/3/97 for MARATHON OIL COM-

PANY, reset Defendant’s Appendix G dead-

line on 6/12/97, Plaintiff’s Appendix G dead-

line on 4/10/97 (signed by Judge James T.

Turner). Copy to parties. (as) [Entry date

03/18/97]

MOTION by USA (Service : 3/28/97) to

waive certain requirements of RCFC Ap-

pendix G. (ss) [Entry date 04/10/97]

DATE

NO.

40

PROCEEDINGS

4/2/97

4/10/97

4/10/97

4/10/97

4/10/97

4/16/97

4/21/97

4/22/97

4/23/97

231

232

233

234

235

236

237

239

ORDER denying [230-1] motion to waive

certain requirements of RCFC Appendix G

( signed by Judge James T. Turner ) Copy

to parties. (hw) [Entry date 04/14/97]

Witness list by MARATHON OIL COM-

PANY and MOBIL OIL EXPLOR. Service:

4/10/97. (hw) [Entry date 04/21/97]

Exhibit list by MARATHON OIL COM-

PANY and MOBIL OIL EXPLOR Service:

4/10/97. (hw) [Entry date 04/21/97]

PRETRIAL MEMORANDUM by MARA-

THON OIL COMPANY. Service: 4/10/97.

C (hw) [Entry date 04/24/97]

MOTION by MARATHON OIL COMPANY,

MOBIL OIL EXPLOR (Service : 4/10/97 )

to Correct caption. Response due: 4/28/97

(hw) [Entry date 04/25/97]

ORDER granting [235-1] motion to Correct

caption. (signed by Judge James T. Tur-

ner). Copy to parties. (ds) [Entry date

04/30/97]

MOTION by MARATHON OIL COMPANY,

MOBIL OIL EXPLOR (Service: 4/16/97

By Hand) for In-Person Status Conference

and Response to Court’s Letter 4/16/97. Re-

sponse due: 5/5/97 (ss) [Entry date 05/

02/97]

ORDER withdrawing [237-1] motion for In-

Person Status Conference; and directing

parties to file reports of experts on damages

issues. ( signed by Judge James T. Turner )

Copy to parties. (ds) [Entry date 05/03/97)

Additional Documentation pursuant to Rule

16 and App G [appendicies prepared by

plaintiffs’ expert witnesses (exhibits A, B,

41

a!

DATE

NO.

PROCEEDINGS

6/6/97

6/6/97

6/17/97

6/17/97

6/17/97

6/17/97

6/20/97

7/1/97

1/2/97

240

241

250

and C three separate IN CAMERA EXHIB-

ITS plus public notice)] filed by MARA-

THON OIL COMPANY, MOBIL OIL EX-

PLORATION and PLACED IN CAMERA

this day. Service: 4/23/97 (rs) [Entry

date 05/06/97]

MOTION by USA (Service : 6/6/97 ) to

Extend Time to June 17, 1997, to file its ex-

hibit list, witness list, and contentions of law

and fact. Response due: 6/23/97 (cde)

ORDER granting [240-1] motion to Extend

Time to June 17, 1997, to file its exhibit list,

witness list, and contentions of law and fact.

( signed by Judge James T. Turner ) Copy

to parties. (cdc) [Entry date 06/16/97]

Witness list by USA. Service 6/17/97 (ab)

[Entry date 06/23/97]

JOINT STATEMENT OF ISSUES OF

FACT AND LAW (st) [Entry date 06/27/

97)

PRETRIAL MEMORANDUM by USA Serv-

ice: 6/17/97 (1 (st) [Entry date 06/27/97)

Exhibit list by USA Service: 6/17/97 (st)

[Entry date 06/27/97]

MOTION by USA (Service : 6/19/97 ) for

Leave to File amended exhibit list. Response

due: 7/7/97. (hw) [Entry date 06/23/97]

MOTION by MARATHON OIL COMPANY

(Service by hand: 7/1/97 ) for Leave to

File a response to defendant’s memorandum

of contentions of fact and law. Response

due: 7/15/97 (ds) [Entry date 07/18/97]

MOTION by MARATHON OIL COMPANY,

MOBIL OIL EXPLOR (Service : 7/2/97 )

in Limine to exclude certain testimony and

evidence at trial. Response due: 7/21/97

(cde) [Entry date 07/16/97]

42

—<————————_— SS CF FO ee _--— — _-— SS ———————s

DATE

NO. PROCEEDINGS

7/3/97

7/7/97

7/7/97

7/7/97

7/7/97

1/7/97

7/7/97

1/7/97

256

251

252

253

257

259

MOTION by USA (Service : 7/3/97 ) for

Leave to File transcripts of deposition testi-

mony as substantive evidence. Response due:

7/21/97. (hw) [Entry date 07/21/97]

RESPONSE by USA, MARATHON OIL

COMPANY to [245-1] memorandum by USA

Service: 7/1/97 (ede) [Entry date 07/17/

97]

ORDER granting [242-1] motion for Leave

to File amended exhibit list ( signed by

Judge James T. Turner ) Copy to parties.

(ede) [Entry date 07/17/97]

Amended Exhibit list by USA Service: 6/

20/97 (cde) [Entry date 07/17/97]

ORDER granting [256-1] motion for Leave

to File transcripts of deposition testimony

as substantive evidence ( signed by Judge

James T. Turner ) Copy to parties. (ds)

[Entry date 07/22/97]

Deposition transcripts of James Martin, Paul

H. Benson and Paul J. Hoenmans filed by

defendant. (ds) [Entry date 07/22/97]

MOTION by USA (Service : 7/7/97 ) for

Leave to File reply to response to mem»-

randum of contentions of fact and law. Re-

sponse due: 7/24/97 (ds) [Entry date 07/

22/97]

RESPONSE by MARATHON OIL COM-

PANY, MOBIL OIL EXPLOR (Service by

hand: 7/9/97 ) to [259-1] motion for Leave

to File reply to response to memorandum of

contentions of fact and law Reply due: 7/

18/97. (ds) [Entry date 07/22/97]

43

—-——

DATE NO. PROCEEDINGS

7/8/97

7/8/97

7/8/97

7/10/97

7/14/97

7/17/97

7/18/97

7/18/97

247

249

261

RESPONSE by USA (SUPPLEMENT TO

SUBMISSIONS FILED PURSUANT TO

RCFC 16 AND APPENDIX G) Service: 7/

7/97 Filed by leave of the Judge. (cdc)

[Entry date 07/09/97]

RESPONSE by USA (Service: 7/8/97 ) to

[250-1] motion in Limine to exclude certain

testimony and evidence at trial. Reply due:

7/21/97 (ds) [Entry date 07/24/97]

ORDER granting [259-1] motion for Leave

to File reply to response to memorandum of

contentions of fact and law ( signed by Judge

James T. Turner ) Copy to parties. (Reply

was incorporated in motion for leave) (ds)

[Entry date 07/24/97]

SUPPLEMENT TO MOTION in limine with

attached Exh. A by MARATHON OIL COM-

PANY, MOBIL OIL EXPLOR (Service 7/

8/97 ) Filed by leave of the Judge. FILED

UNDER SEAL AND SUBJECT TO PRO-

TECTIVE ORDER. in Limine Response

due: 7/22/97 (cde)

TRANSCRIPT of proceedings re: pretrial

conference, 1 volume, at Washington D.C.,

for date of July 9, 1997. Notice to parties.

(st) [Entry date 07/15/97]

STATUS REPORT by USA Service: 7/16/

97 (ede) [Entry date 07/18/97]

STATUS REPORT by USA, MARATHON

OIL COMPANY, MOBIL OIL EXPLOR

Service: 7/18/97 (ede) [Entry date 07/22/

97]

TRANSCRIPT of proceedings re: Pretrial

Conference (continued), 1 volume, at Wash-

ington, D.C., for date of July 14, 1997.

Notice to parties. (st) [Entry date 07/23/

97)

44

DATE NO. PROCEEDINGS

7/18/97

7/18/97

7/24/97

7/24/97

7/24/97

7/25/97

7/25/97

8/10/97

265

267

266

268

269

270

271

UNPUBLISHED ORDER entered directing

entry of partial judgment pursuant to Rule

54(b) stating that there is no just reason

for delay, together with memorandum con-

cerning final pre-trial conference, ( signed

by Judge James T. Turner). Copy to par-

ties. (tw) [Entry date 07/25/97]

UNPUBLISHED ORDER directing entry of

final judgment (signed by Judge James T.

Turner). Copy to parties. (tw) [Entry date

07/25/97]

Case closed (tw) [Entry date 07/25/97]

Partial judgment entered on July 25, 1997,

pursuant to Rule 58 in favor of plaintiff,

MOBIL OIL EXPLORATION & PRODUC-

ING SOUTHEAST, INC., in the amount of

$78,257,565 VACATED PURSUANT TO

THE ORDER OF MAY 28, 1989. (ds) [En-

try date 06/01/99]

Judgment entered on July 25, 1997, pursuant

to Rule 54 in favor of plaintiff, MARATHON

OIL COMPANY, in the amount of $78,242,-

868.59 VACATED PURSUANT TO THE

ORDER OF MAY 28, 1999. (ds) [Entry date

06/01/99]

CERTIFIED TRANSCRIPT OF JUDG-

MENT forwarded to attorney of record. See

letter in file. (tw) [Entry date 07/28/97]

CERTIFIED TRANSCRIPT OF JUDG-

MENT forwarded to attorney of record. See

letter in file. (tw) [Entry date 07/28/97]

Bill of costs by MARATHON OIL COM-

PANY, MOBIL OIL EXPLOR Service: 8/

20/97 ( Objection to Bill of Costs due by

9/8/97 ) (ede)

45

‘DATE

NO.

PROCEEDINGS

9/11/97

9/12/97

9/12/97

9/19/97

9/19/97

9/25/97

5/20/99

5/28/99

272

273

275

276

278

279

MOTION by USA (Service: 9/11/97) for

Leave to File response to Cost Petition Re-

sponse due: 9/29/97. (st) [Entry date 09/

15/97)

ORDER granting [272-1] motion for Leave

to File response to Cost Petition (signed by

Judge James T. Turner ) Copy to parties.

(ede) [Entry date 09/16/97]

OBPECTION ( Reply due 9/25/97 ) by

USA to [271-1] bill of costs by MOBIL OIL

EXPLOR, MARATHON OIL COMPANY.

Service: 9/11/97 (ds) [Entry date 09/

25/97]

NOTICE OF APPEAL by USA. Copy to

MARATHON OIL, etc., Judge Turner and to

CAFC. Fee not required. (hw) [Entry date

09/22/97]

REPLY by MARATHON OIL COMPANY,

MOBIL OIL EXPLOR to [275-1] objection

to bill of costs by USA. Service: 9/18/97

(ds) [Entry date 09/25/97]

CAFC Case Number Re: [276-1] appeal by

USA. CAFC NUMBER: 97-5146. (hw)

{Entry date 09/29/97]

MANDATE (certified copy) from the CAFC,

dated May 20, 1999, reversing the (_] [266-1)

and [268-1] judgments. (ds) [Entry date

06/01/99]

ORDER vacating [266-1] and [268-1] judg-

ments and directing the entry of a new judg-

ment in favor of defendant; and directing

plaintiffs to return the certified transcripts

of judgment forwarded on July 25, 1997.

( signed by Judge James T. Turner ) Copy

to parties. (ds) [Entry date 06/01/99]

DATE

46

NO.

PROCEEDINGS

6/1/99

6/1/99

6/7/99

6/8/99

6/22/99

7/9/99

280

282

JUDGMENT entered pursuant to Rule 58,

dismissing the complaints. Each party shall

bear its own costs. [Vacated to the limited

extent that is applies to Count III (alleging

a Fifth Amendment taking) of Marathon’s

complaint filed on October 29, 1992. per

Order dated Aug. 25, 1999.] (signed by

Clerk). Copy to parties. (ds) [Edit date

08/26/99]

Case closed (ds)

CERTIFIED TRANSCRIPTS OF JUDG-

MENT dated July 24, 1997 returned to

Clerk’s Office by E. Edward Bruce, and de-

— this date. (ld) [Entry date 06/08/

MOTION by MARATHON OIL COMPANY

(Service: 6/8/99) for Reconsideration/Re-

hearing Pursuant to Rule 59 re: [280-1]

judgment order, and/or to alter or to Amend

[280-1] judgment order. Response due:

6/21/99. (dw) [Entry date 06/11/99]

ORDER Defendant’s response to [282-1]

motion for Reconsideration/Rehearing Pur-

suant to Rule 59 re: [280-1] judgment order

set to 7/9/99, [282-2] motion to Amend

[280-1] judgment order se* to 7/9/99.

(signed by Judge James T. xurner) Copy

to parties. (jt) [Entry date 06/23/99]

RESPONSE by USA (Service: 7/9/99) to

[282-1] motion for Reconsideration/Rehear-

ing Pursuant to Rule 59 re: [280-1] judg-

ment order, [282-2] motion to Amend [280-

1] judgment order. (jt) [Entry date 07/

12/99)

47

PROCEEDINGS

DATE’ NO.

7/22/99 285

8/2/99 286

8/4/99 287

8/9/99 288

8/18/99 —

8/25/99 289

REPLY by MARATHON OIL COMPANY

to response to [282-1] motion for Reconsid-

eration/Rehearing Pursuant to Rule 59 re:

[280-1] judgment order, [282-2] motion to

Amend [280-1] judgment order. Filed by

leave of the Judge. Service: 7/16/99 (jt)

{Entry date 07/23/99]

SURREPLY by USA to [282-1] motion for

Reconsideration/Rehearing Pursuant to Rule

59 re: [280-1] judgment order by MARA-

THON OIL COMPANY, [282-2] motion to

Amend [280-1] judgment order by MARA-

THON OIL COMPANY. Filed by leave of

the Judge. Service: 7/29/99 (jt) [Entry

date 08/03/99]

RESPONSE by MARATHON OIL COM-

PANY to [286-1] response by USA, by leave

of the Judge. Service: 8/3/99. (dw)

ORDER oral argument set for 10:30 a.m.

8/18/99 for [282-1] motion for Reconsidera-

tion/Rehearing Pursuant to Rule 59 re:

[280-1] judgment order, set for 10:30 a.m.

8/18/99 for [282-2] motion to Amend

[280-1] judgment order (signed by Judge

James T. Turner). Copy to parties. (dw)

[Entry date 08/10/99]

Oral Argument re: [282-1] motion for Re-

consideration/Rehearing Pursuant to Rule

59 re: [280-1] judgment order by MARA-

THON OIL COMPANY ( Transcript due

9/17/99 ), [282-2] motion to Amend [280-1]

judgment order by MARATHON OIL COM-

PANY ( Transcript due 9/17/99 ) [1 (ds)

Entry date 08/20/99]

ORDER granting [282-1] motion for Recon-

sideration/Rehearing Pursuant to Rule 59

48

—— ——

— ——————eo

DATE NO.

PROCEEDINGS

8/26/99 290

8/26/99 —

9/17/99 291

re: [280-1] judgment order, granting

[282-2] motion to Amend [280-1] judgment

order. Accordingly, it is ordered that the

judgment entered on June 1, 1999 in favor

of the defendant and against both plaintiffs

shall be vacated to the limited extent that it

applied to Count III (alleging a fifth amend-

ment taking) of Marathon’s complaint filed

on October 28, 1992. Inasmuch as the result-

ing judgment iu favor of defendant and

against Marathon constitutes a partial judg-

ment, it is expressly determined, pursuant

to RCFC 54(b), that there is no just reason

to delay the partial judgment in favor of the

government with respect to Counts I and II

of Marathon’s complaint. Further it is or-

dered that all proceedings in this matter are

hereby suspended generally and shal] remain

suspended Staying until final action by the

United States Supreme Court in response to

any petition for writ of certiorari submitted

by plaintiff Marathon in connection with the

revised opinion of the Federal Circuit dated

May 13, 1999 and its subsequent mandate

issued on May 20, 1999. ( signed by Judge

James T. Turner ) Copy to parties. (Id)

JUDGMENT entered, as provided for in

Rule 54(b), in favor of the government with

respect to Counts I and II of Marathon’s

complaint. Counts I and II of Marathon’s

complaint are dismissed. (signed by Clerk).

Copy to parties. (Id)

Case reopened (ld)

TRANSCRIPT of proceedings 1 volume, at

Washington, D.C., for date of August 18,

1999. Notice to parties. (st) [Entry date

09/21/99)

49

ooo

DATE NO.

PROCEEDINGS

11/15/99 292

NOTICE of the Grant of Petition for Writ

of Certiorari by MARATHON OIL COM-

PANY. Service: 11/15/99 (jt) [Entry date

11/17/99]

50

UNITED STATES COURT OF FEDERAL CLAIMS

No. 97-5146

MARATHON Ol Co.

v.

UNITED STATES OF AMERICA

DOCKET ENTRIES

—— eee ee

$$ — > ee ———

PROCEEDING

— ===_=-|_- = ee

= ——

11/18/97

12/8/97

1/20/98

1/30/98

CERTIFICATE OF INTEREST FOR THE AP-

PELLEE(S), MARATHON OIL CO, MOBIL OIL

EXPLO., PRODT. (MS-10/03/97) FILED: 10/

03/97. (EOD 10/03/97 BY KKC) 97-5146

Appellant—MOTION FOR ENLARGEMENT OF

TIME. (MS-11/13/97) FILED: 11/13/97. ON

CONSENT. ACTION ON MOTION (3):

GRANTED. BY CLERK. FILED: 11/21/97.

(EOD 11/21/97 BY JB) THE BRIEF IS DUE

ON 12/08/97. 97-5146

THE UNITED STATES [Appellant] - BRIEF

FOR DEFENDANT-APPELLANT, THE

UNITED STATES (MS-12/08/97). FILED: 12/

i [985354] (EOD 12/12/97 BY JLA) 97-

MARATHON OIL COMPANY, ET AL. [AP-

PELLEES - BRIEF FOR PLAINTIFFS-AP-

PELLEES (MS-01/20/98). FILED: 01/20/98.

[985700] (EOD 01/22/98 BY JLA) 97-5146

Appellant - MOTION FOR 18 CALENDAR DAY

ENLARGEMENT OF TIME TO FILE REPLY

BRIEF. [NPF] (MS-01/30/98) FILED: 01/30/

98. ACTION ON MOTION (5): MOTION

GRANTED. BY CLERK. FILED: 02/27/98.

(EOD 02/27/98 BY ETW) 97-5146

St

eee ees

DATE

PROCEEDINGS

2/19/98

3/2/98

3/23/98

4/1/98

5/4/98

5/8/98

10/15/98

11/25/98

THE UNITED STATES [APPELLANT] - RE-

PLY BRIEF FOR DEFENDANT-APPELLANT,

THE UNITED STATES (MS-02/19/98). FILED:

02/27/98. [986032] (EOD 03/06/98 BY JLA)

97-5146

THE UNITED STATES [APPELLANT] - JOINT

APPENDIX - TWO VOLUMES (MS-03/02/98).

FILED: 03/02/98. ENTRY OF APPEARANCE

NOTICE ISSUED. [986054] (EOD 03/09/98 BY

JLA) 97-5146

NOTICE OF CALENDARING issued. Panel 980-

5B on May 4, 1998

REVISED NOTICE OF CALENDARING IS-

SUED PANEL 05B ON MAY 4, 1998

Submitted after ORAL ARGUMENT by E. Ed-

ward Bruce and Mark A. Melnick. (NEWMAN,

PLAGER and SCHALL)

Appellees - MOTION FOR LEAVE TO FILE A

LETTER CORRECTING A MISSTATEMENT

MADE BY COUNSEL FOR APPELLANT DUR-

ING THE REBUTTAL ARGUMENT. (LETTER

ATTACHED) [NPF] (MS-05/08/98) RE-

CEIVED: 05/08/98. REPLY 1 (9) FILED: 05/

18/98. ACTION ON MOTION (10): LEAVE TO

FILE IS GRANTED. BY MERITS PANEL.

FILED: 05/20/98. (EOD 05/20/98 BY JB) 97-

5146

REVERSED. PRECEDENTAL OPINION BY:

J. PLAGER. DISSENTING OPINION BY: J.

NEWMAN. JUDGMENT ENTERED: 10/15/98.

COSTS AGAINST APPELLEE. (EOD 10/15/98

BY KSH) 97-5146

APPELLEE - COMBINED PETITION FOR RE-

HEARING AND SUGGESTION FOR REHEAR-

ING IN BANC (MS-11/25/98) FILED: 11/25/98

— as

DATE

PROCEEDINGS

11/25/88

12/8/98

2/18/99

5/13/99

PETITION CIRCULATED: 11/25/98 RE-

SPONSE REQUESTED FROM: APPELLANT

(U.S.) RESPONSE DUE: 01/12/99 RESPONSE

FILED: 01/11/99 RESPONSE CIRCULATED:

01/11/99 PETITION: GRANTED ON 05/13/99.

SUGGESTION CIRCULATED: 04/30/99 SUG-

GESTION: DECLINED ON 05/13/99. (EOD

05/13/99 BY AV) 97-5146 (Petition granted for

the Itd. purpose of clarifying the opinion)

A.P.I. & I.P.A.A. - MOTION FOR LEAVE TO

FILE AMICI CURIAE BRIEF. (MS-11/25/98)

FILED: 11/27/98. ON CONSENT. ACTION

ON MOTION (14): GRANTED. BY MERITS

PANEL. FILED: 01/29/99. (EOD 01/29/99 BY

AV) 97-5146

Appellant - MOTION FOR A 28-DAY EXTEN-

SION OF TIME TO FILE THE OPPOSITION

TO THE REHEARING. (MS-12/08/98) FILED:

12/08/98. ON CONSENT. ACTION ON MO-

TION (13): GRANTED. THE OPPOSITION IS

DUE 1/12/99. BY MERITS PANEL. FILED:

12/11/98. (EOD 12/11/98 BY AV) 97-5146

Appellant - MOTION FOR LEAVE TO FILE A

RESPONSE TO THE AMICUS BRIEF. (THE

RESPONSE IS SUBMITTED W/THIS MOTION)

[NPF] (MS-02/18/99) FILED: 02/18/99. ON

CONSENT. ACTION ON MOTION (15):

LEAVE TO FILE IS GRANTED. BY MERITS

PANEL. FILED: 03/05/99. (EOD 03/05/99 BY

AV) 97-5146

REVERSED. PRECEDENTIAL OPINION BY:

J. PLAGER. DISSENTING OPINION BY: J.

NEWMAN. JUDGMENT ENTERED: 05/13/99.

COSTS AGAINST APPELLEE. (EOD 05/13/99

BY KSH) 97-5146

DATE

53

PROCEEDINGS

5/20/99

8/10/99

MANDATE ISSUED TO THE CFC: 05/20/99.

(EOD 05/20/99 BY JCW) 97-5146

PETITION FOR WRIT OF CERTIORARI FILED

08/10/99, SUPREME COURT #: 99-244. (EOD

08/13/99 BY JW) 97-5146

$4 53

—Successful exploratory wells in this frontier area

will have to be followed by a greater number of

delineation wells than normal in order to assure

an adequate resource to justify the extremely high

development costs (platforms, guyed towers, ten-

sion leg platforms, deep pipelines, etc.) in these

water depths. Preliminary information suggests

FINAL that an average of seven to eight delineation wells

may be needed in this area as opposed to the

SECRETARIAL ISSUE DOCUMENT normal four to five. Each well takes 4 to 5 months

SOUTH ATLANTIC to drill once a ship is on site.

OCS SALE 56 —Because there is no existing infrastructure, facili-

ties, such as pipelines, and production techniques

would have to be developed. These time-consum-

ing projects would take much longer than a 5-year

lease term provides. Suspensions of operation or

production (SOP’s), pursuant to USGS regula-

tions (30 CFR 250.!2), which extend the lease

term, are discretionary and are not easily applied

to these situations. Also, since they would be

applied on a case-by-case basis, consistency of

February 1981 treatment is not assured. From a policy stand-

U.S. Department of the Interior point, it would be better to grant longer lease

tems for a problem known to exist at the time

of lease issuance. The lease term should be de-

signed to include time to begin production and not

just to conduct exploratory and delineation drill-

ing. In the shallower water depths of the Gulf of

Mexico, experience indicates that the standard

lease term is usually enough to begin production

and thus it was conceived of as normally encom-

passing the time necessary to begin that phase.

The predictability of a longer lease term can do

much to assure industry that they will be allowed

56

enough time to do the job right instead of depend-

ing on discretionary administrative action to cor-

rect a situation later when hundred million dollar

invesiments are involved.

Existing Departmental ieg.lations contain mechanisms to

encourage early activity on all leases. Such mechanisms

are particularly beneficial in countering perceived specu-

lative aspects of leases issued for primary terms longer

than the normal 5-year period. USGS regulations (30

CRF 250.34-1(a)(3)) provide that for leases issued with

an initial period of more than 5 years, the lessee must

submit either an exploration pian or a general statement

of exploration intentions within a period of time specified

at the time of offering the tracts for sale. The USGS has

indicated that 3 years would be a proper time and this is

proposed as part of this option.

Due to all these factors, an option has been developed to

select a 10-year lease term of 137 tracts (Tract Nos.

1-39, 46-130, 162-174). While the Secretary could select

a lesser time for the primary lease term (for example,

8 years) based on his judgment and consideration of the

numerous factors involved, a uniform 10-year term was

constructed as an option because (1) it is difficult to

determine with precision, that 8 years or any other num-

ber, is adequate and 10 years excessive, (2) the shortage

of drill rigs for the unusually deep water involved, (3) the

desire to avoid adjacency and structure splitting problems

should a shorter lease term tract be chosen next to a

longer lease term tract, (4) the near certainty that pro-

duction might not begin even within the maximum 10

years allowed by statute, (5) the judgment that a longer

lease term is a more appropriate policy response than

relying on cumbersome and discretionary SOP’s on a

case-by-case basis.

57

{Logo]

NORTH CAROLINA DEPARTMENT OF NATURAL

RESOURCES & COMMUNITY DEVELOPMENT

James B. Hunt, Jr., Governor

Joseph W. Grimsley, Secretary

James A. Summers, Deputy Secretary

Telephone 919 733-4818

August 17, 1982

Mr. Bruce E. Wams!ey

Mid-Atlantic District Supervisor

Minerals Management Service

515 Tilton Road

Northfield, New Jersey 08225

Dear Mr. Wamsley:

The State of North Carolina has completed its review

of Chevron’s exploration plan, environmental report, and

consistency certification for block 510, OCS lease sale

#56. The review also included the July 21st Appendix

to the exploration plan which was prepared at the state’s

request. We concur in Chevron’s consistency certification.

We are satisfied for the appropriate federal agencies to

issue the permits and approvals described in the explora-

tion plan. Each federal agency should notify the State

of North Carolina as permits are issued.

The State of North Carolina will continue its efforts

with Chevron, the Coast Guard, and MMS to reduce the

response times for oil spills.

Chevron, their consultants, and MMS have been most

cooperative throughout this consistency review. The state

58

is grateful and looks forward to a continued good rela-

tionship.

If you have any questions on this matter, please let me

know.

Sincerely,

/s/ James A. Summers

James A. SUMMERS

JAS:ap

cc: Governor James B. Hunt, Jr.

Mr. Bill Matuszeski

Acting Asst. Administrator, OCZM, NOAA

Mr. Harold Nasse

Chevron U.S.A.., Inc.

Dr. Harold D. Palmer

Interstate Electronics Corp.

DCS Task Force

59

[State Logo]

STATE OF NORTH CAROLINA

OFFICE OF THE GOVERNOR

Raleigh 27611

James B. Hunt, Jr. October 15, 1982

Governor

Dear Mr. Ake:

This letter is my response to Atlantic Richfield Oil and

Gas Company’s Exploration Plan and Environmental Re-

port. The information included in this letter should help

you prepare your Environmental Assessment.

The State of North Carolina has no objections with the

proposed project as described in the Exploration Plan.

There are three contingencies, however, that are of critical

importance to the acceptability of this plan.

They are:

(1) Satisfactory revision of the ARCO Oil Spill Con-

tingency Plan;

(2) Adequate information from the Currents Study

being conducted by ARCO and the subsequent

determination of the availability of and the intent

to use appropriate technology, and;

(3) The implementation of an acceptable photo-docu-

mentation survey of biological resources in the

exploration area.

I recommend that these documents be submitted to the

State for review and comment. They represent factors

which are important to our determination of the adequacy

of the Exploration Plan.

60

Enclosed are comments and questions raised by my staff

which require attention.

Please call me or my staff if I can be of assistance to you

in the preparation of the Environmental Assessment.

My warmest personal regards.

Sincerely,

/s/ James B. Hunt, Jr.

Mr. Larry Ake

Mid-Atlantic Acting District Supervisor

Minerals Management Service

515 Tilton Road

Northfield, New Jersey 08225

Enclosure

61

(State Logo}

STATE OF NORTH CAROLINA

OFFICE OF THE GOVERNOR

Raleigh 27611

James G. Martin

Governor

6 October 1988

Mr. Ralph Ainger

Acting Regional Manager

Minerals Management Service

1951 Kidwell Drive

Vienna, Virginia 22180

RE: Mobil Plan of Exploration Off North Carolina

Dear Mr. Ainger:

In recent discussions with Mobil and your office, my

staff and I expressed our grave concerns about the impacts

development of any hydrocarbon resources would have on

the State’s valuable estuarine system and other important

coastal resources. In my direct discussions with repre-

sentatives from Mobil, I stressed the necessity of providing

quality and substantive information to our citizens and

State government to allow us to plan how to best protect

our fragile coastal resources. The purpose of this letter is

to reaffirm that request to the responsible federal agency.

The first issue I wish to address regards the environ-

mental impact analyses. The State has consistently main-

tained that the earlier environmental impact statements

(EIS), completed before and after the leases were issued

are unsound for some topics. The level of scientific in-

formation for these ocean areas has increased dramatically

since 1981. It shows unquestionably that the prior analy-

ses were based on flawed data and assumptions. Direct

62

and indirect onshore impacts from a discovery the size

Mobil is projecting were never sufficiently analyzed. Con-

sequently, the State demands that a full environmental

impact statement be prepared on the Mobil proposal.

Otherwise, the plan will be incomplete and the State will

challenge any contrary decision.

My staff and I are aware of the practical importance of

giving early and specific statements of information needs.

We have strived to do so in each of our respective meet-

ings. I am especially pleased by the recent decision of

Mobil to provide complete data on each of the seven

proposed exploratory wells rather than dividing the infor-

mation into two submissions. However, I remain con-

cerned whether the analysis accompanying this informa-

tion will be developed through the interactive procedures

embodied in the standards established by the President’s

Council on Environmental Quality for implementation of

the National Environmental Policy Act. I am equally

concerned that the analysis include a discussion of reason-

able alternatives to the various decisions your agency will

make. Consequently, the State considers it essential that

the environmental report accompanying the plan of ex-

ploration be a full EIS, including alternative actions and

developed after the opportunity for notice and comment

by the public and government agencies. I consider our

citizens’ continuing demand for that level of scrutiny ap-

propriate and proper.

The second significant issue that I raise is of equal

importance to our citizens and the State. From my con-

sultations with the Attorney General’s staff and my own

staff, I understand that the Outer Continental Shelf Lands

Act (OCSLA) separates the exploration and develop-

ment phases of lease activity for regulatory purposes.

However, I am also informed the Act vests in your agency

the authority to require that Mobile accompany the plan

63

of exploration with “a general statement of development

and production intention which shall be for planning

purposes only and which shall not be binding on any

party.” Our citizens are deeply concerned about the direct,

indirect and cumulative onshore and offshore impacts of

the proposed action.

For these reasons, I request you exercise your authority

under the OCSLA and your regulations to require that

Mobil submit such a statement with its plan of explora-

tion. It is North Carolina’s position that the statement is

within the range of information and date which may be

required under § 250.33(b)(21) of your regulation en-

titled “Exploration Plan” and is necessary to a full and

fair evaluation of the plan of exploration.

By copy of this letter, I have relayed these concerns

to Mobil. I look forward to your reply and our continued

cooperation to bring forward all the information needed

to decide the critical issues raised by exploration in this

frontier area. I urge you to employ your authority so

that examination of the critical issues precedes any action

by your agency. By separate letter Donna Moffitt will

forward a more specific statement of minimal information

needs the State has identified. Should similar critical

information needs be identified, I shall forward them to

you immediately.

Sincerely,

/s/ Jim Martin

JAMES G. MARTIN

65

64

State

JGM/DFM/dw {State Logo]

ee: Senator Jesse Helms NORTH CAROLINA

"Senator Terry Sanford DEPARTMENT OF ADMINISTRATION

400 Oberlin Rd., Suite 300

Representative Walter B. Jones

Raleigh, North Carolina 27605

Attorney General Lacy H. Thornburg

Donald Hodel, Secretary of the Interior Telephone 919-733-2290

illi berg, Director of

Oe Sa Service James G. Martin, Governor Office of Marine Affairs

William C. Whittemore, Mobil Oil James S. Lofton, W. Neal Conoley, Jr.,

Robert W. Haines, Mobil Oil Secretary Director

October 20, 1988

Mr. Ralph V. Ainger

Minerals Management Service

Atlantic OCS Region

1951 Kidwell Drive, Suite 601

Vienna, Virginia 22180

Dear Ralph:

In Governor Martin’s letter of October 6, he stated that

I would be sending you more details of our information

requirements for Mobil’s offshore drilling proposal. We

have identified the following concerns that we believe

must be addressed by Mobil and/or MMS in the POE

or other accompanying documentation:

1. Correct and update information in the old EIS

for fisheries data, oceanographic conditions, and

N.C. population figures that account for seasonal

variations and community infrastructure needs

and are based on a discovery the size Mobil is

projecting. This can be accomplished through a

new EIS or a supplemental EIS or an environ-

mental report developed under procedures allow-

ing for notice and opportunity to be heard by

66

the public and state and federal agencies. Mobil

would have to specifically answer how concerns

raised at public hearings and through written

comments were addressed in the POE.

2. Work with N.C. to

a. identify an optional drilling window which

we believe should be slightly different than

Mobil’s proposed window;

b. develop an oil spill contingency plan that pro-

vides a prioritized scheme for environmental

and resource protection from oil spills if

computer modelling of trajectories proves

infeasible.

. Comply with the Ocean Discharge Criteria of the

Clean Water Act for its NPDES discharge permit.

. Provide seismic data, bottom surveys, and spill

trajectories (or an alternative acceptable to N.C.

with respect to oil spill planning) for each well

site identified in the POE. Be prepared to shift

well head locations to avoid biologica! activity

or geohazards if photo surveys or bottom profiles

warrant such action.

. Provide alternatives on timing of drilling, types

of drilling muds and alternative ways of disposal,

alternative staging sites and work force require-

ments. Compare Mobil’s proposed drilling site to

North Sea or Surinam drilling conditions.

. Provide details on a potential hydrogen sulfide

plant including size, location, work force, impacts

on air or water quality, surface or ground water

requirements, solid or hazardous waste treatment

or disposal concerns, safety issues, leak detection

and warning systems.

67

7. Provide preliminary planning data on how gas

and/or oil will be brought to shore and where,

alternative locations for processing or distribu-

tion plants, size of work crews for developing

the field and laying pipelines, anticipated fabri-

cation facilities, population rises and falls of

work crews and their families during explora-

tion, development and production phases.

8. Provide data in sufficient detail to allow our

State agencies to conduct an adequate consist-

ency review.

9. Consider establishing a formal panel of state,

federal, industry and local interests to work out

the details of how Mobil can best address our

concerns.

Addressing these issues may require Mobil to delay

exploratory drilling until spring 1990.

In summary, we are prepared to oppose Mobil’s pro-

posal unless Mobil provides enough information to show

that the anticipated and proposed offshore and onshore

activities can be conducted safely and with the least harm

to our valuable coastal resources. We believe that we can

best deal with fiscal, environmental, and other effects of

OCS development if we anticipate, plan for, and attempt

to mitigate potential negative impacts. The ultimate im-

pact of OCS generated activities, development, new popu-

lation and increased service demands will be significantly

reduced by the planning and prevention measures under-

taken now at the federal, state, regional, and local levels.

Thank you for your attention to this matter.

68

Sincerely Yours,

/s/ Donna

Donna D. MoFFITT

Governor’s Working Group on

Mobil Offshore Drilling

DDM/k!

cc: Mr. Robert Haines

Mr. William Whittemore

Mr. Edmund Welch

Dr. David Gettleson

(State Logo]

NORTH CAROLINA

DEPARTMENT OF ADMINISTRATION

19 W. Hargett, St., 9th Floor

Raleigh, North Carolina 27601

Telephone 919-733-4656

James G. Martin, Governor Outer Continental Shelf Office

James S. Lofton, Secretary Donna D. Moffitt, Director

January 9, 1989

Mr. William Whittemore, Esq.

Senior Counsel

Mobil Exploration and Production U.S., Inc.

1250 Poydras Building—Suite 2021

New Orleans, Louisiana 70113

Dear Bill:

As I have mentioned to you, we have begun to identify

our informational needs for the wildcat drilling activities

at the Manteo Unit. Because we are inexperienced, we

may be asking these questions prematurely, or they may

be overly simplistic, or you may feel some of the responses

would involve proprietary data. However, we are trying

to learn as much as we can about the level of data we

will be allowed to review, the relevance of the data, and

when and in what form we will be allowed to review it.

We think this approach will help us get through the Gov-

ernor’s review phase and our consistency review more

effectively and efficiently and perhaps prevent needless

delays due to our shortcomings or misunderstandings. We

also need to assure a worried public that we are doing

all that we can to protect their best interests and the

State’s natural resources. We can best accomplish that by

70

asking direct questions and receiving reassuring and in-

formative answers. Simply relying on MMS regulations

to answer all our questions or taking your word that

Mobil knows what it is doing just isn’t good enough for

our first offshore exploration well. Perhaps after we have

more experience, we will feel comfortable enough with

the process that we no longer ask for this type or level of

information at this stage of the process. That is why

Mobil’s response to our informational requests is so

important.

How can the following information be provided to us—

in the POE, in separate documents, during informal tech-

nical meetings, or by other means? Your prompt re-

sponse as to the level of disclosure your company can

accommodate and as to the earliest point at which

such information will be made available will be greatly

appreciated.

PRESENTLY IDENTIFIED AREAS OF CONCERN

REGARDING EXISTING PHYSICAL CONSTRAINTS:

1) Slope—The bottom in the drill site area is highly

dissected by canyons and the continental slope averages

about fifteen degrees. The canyons are regions of slope

instability, and there are several known large slope fail-

ures to the north and south of this area. Please provide

data which characterizes the slope conditions at the drill

site. Emphasis should be placed on slope stability, the

possibility of slope failure, and proposed engineering solu-

tions to prevent foundation failure or to handle a massive

foundation failure if such were to occur. Information on

slope failure could be provided as part of a Shallow Haz-

ards Survey and through photo documentation.

2) Frozen Gas Hydrates—The drill site is in a known

area of frozen gas hydrates (clathrates) in the shallow

71

sub-bottom. Discuss isi :

Syd a tne aecerorision fr dealing with thee gn

drilling operations. a ae

Cause extreme currents and extreme changes

time spans at both the surface and Fam ed ynos ar

‘olumn. Discuss the capabilities of a dynamically posi-

tioned drillship (or a moored system if that is ultimately

at {ne expected peak load should be included. Equipment

pe ndancy and worst case scenarios for catastrophic

i ures will need to be clearly defined. The accom

ing specific items should be discussed fully: egl

oan Discuss the power requirements of the dynamic posi-

ning system to be able to remain on drilling location

ae — weather conditions and the effects of ad-

wea on drilling Operations requirements. Under

worst case conditions, will drilling operations be reduced

or shut down due to lack of generating capacity for

thruster power demands? Please describe in detail how

an emergency shutdown will be accomplished.

OVERALL WELL PLANNING CONCERNS:

1) Well and Pore Pressure Concerns f anteo

; . or the M Uni

(including but not limited to the following) : 4

72

a) On which detection method(s) are the seismic pres

sure estimates based?

b) Describe the pressure gradients generated or antici-

pated pressures to be encountered.

c) Describe specific transitional zones identified based

on geophysical methods, data correlation from ome

Hatteras well logs, and regional trends observed on

eastern continental shelf drilling program. What proce-

dures are planned for the possibility that extremely a

zones may be encountered, resulting in potential mu

system failures?

d) Discuss the estimated probability of an underground

blow-out and the potential for resulting problems at the

sea bottom or for marine resources.

e) Describe the general well prognosis including =

kind of rock above the producing formation and the roc

contained in the producing formation.

f) Describe the riser specifications ( including whether

or not a fairing will be used) and provide an analysis of

expected collapse loads due to pressure differentials >

case of a gas kick in the spudding or early stages of t

drilling program.

g) Casing size, weight, and piping schedule in addition

to the installation program should be made available.

h) Describe the process and technology that will be

used in connection with any directional drilling or devia-

tions from straight line drilling. Describe ee

to be implemented if stuck pipe is encountered and t

decision is made to cut and drill around it.

2) Pressure detection and control methods to be utilized

while drilling operations are underway:

73

a) drilling mud parameters;

b) lithological observations (shale showings, etc.);

¢) rate of penetration, rotary speed, weight on bit,

flow-shows, shale density, gas detection-hot wire

method, flowline temperature;.

d) kick tolerance estimations;

€) muds disposal systems.

3) Well completion techniques.

a) Describe how Mobil plans to permanently seal the

Manteo well if no producing quantities of oil or gas are

found.

b) What are Mobil’s proposed well completion tech-

niques if production were to occur?

SEISMIC/GEOLOGICAL DATA NEEDS:

1) Maps indicating the shape of the structure and surface

conditions over the structure.

a) Sea bottom contour maps for all blocks with pro-

posed well sites.

b) Structural depth contour map at top of objective

horizon.

¢) Two additional structural contour maps above ob-

jective horizon (preferably at about 2,000’ intervals above

the objective horizon).

d) Structural depth contour map at base of objective

horizon or deeper.

2) Six seismic sections (in two forms—one uninterpreted

cross section and the remainder in annotated or inter-

preted cross sections, including faults and mapped hori-

zons, in both recorded time and corrected depth) :

74

a) Three sections running parallel to one another.

b) Three sections running parallel to one another and

perpendicular to “a)” above.

c) Middle section of each set should intersect at or

near the primary well locations.

3) Depth estimate to the top of the structures.

4) A shallow hazards survey.

PHOTO AND SONAR DOCUMENTATION:

We would also like to request that a series of benthic

photographs and sonar transects be completed as soon

as possible at the Manteo Exploration Block wildcat well

site. This preliminary survey could be completed during

the cruise of the Manteo Block Water Current Study. The

sonar transects should depict a three dimensional picture

of the well site out to a distance of 3,000 feet and provide

a depth profile for each photograph. The benthic photo-

graphs should be 35mm color slides and of sufficient reso-

lution to allow identification of biological material. The

photographic transects should extend from the well site

the same distance as the sonar tracks. The information

obtained from this initial survey will help to develop a

characterization of the physical habitat within the 21

block unit. Such a characterization would be essential,

especially if production is ever proposed for the Manteo

Unit.

Thank you very much for working with us and we look

forward to your response at your earliest convenience.

ec: Secretary Lofton

Secretary Cobey

Bruce Weetman, MMS

76

F16NC1.

FINAL

April 1, 1989

10:02am

Question: Is it the policy of MMS to turn down an

exploration plan if significant environmental impacts are

shown, rather than do an environmental impact state-

ment?

—Do you feel it is impossible to do an environmental

impact statement under the 30-day DOI review process?

— Do you see any conflict in this policy and complying

with the National Environmental Policy Act’s require-

ments to prepare an EIS, if an environmental assessment

shows significant impact?

Answer: If significant environmental impacts were to

be shown, we would not approve an exploration plan

since the OCS Lands Act specifically provides that a

plan must be disapproved if it is determined that any

proposed activity under such a plan would cause serious

harm or damage to life (including fish and other aquatic

life), to property, to any mineral (in areas leased or not

leased), to the national security or defense, or to the

marine, coastal, or human environment; and, the activity

cannot be modified to avoid the harm or damage (43

U.S.C. 1340 and 43 U.S.C. 1334). MMS reviews each

exploration plan on a case-by-case basis to determine

whether exploratory drilling activity will have significant

environmental effects. This is in accordance with the

National Environmental Policv Act and the Outer Conti-

nental Shelf Lands Act as well as regulations formulated

specifically for OCS oil and gas leasine. Based unon

accumulated information on approximatelv 8.000 exnlor-

atory wells, including approximately 50 in the Atlantic,

77

no demonstrated signific i

resulted from cuplasinny define adie. a reo

vironmental assessments which have been prepared for

exploration plans have applied the accumulated informa-

tion on environmenial effects of previous explorato

wells, as well as pertinent site specific information, va

have concluded that igni

no significant enviro

would occur. nvironmental effects

It is not feasible to com

i plete the EIS process during th

oe deadline of 30 days for review of an Proven doen

plan. It is important to note that the 30-day period

is not discretionary, but is specifically di

(40 U.S.C. 1340). pecifically dictated by statute

We see no conflict with our poli i

with the National Environmental Policy or oe

ance with the Council on Environment Quality (CEQ)

regulations for implementing NEPA, environmental assess-

ments are prepared not only to determine if an EIS is

required but also to assist the agency in planning and

decision making (1501.3). Based on past experience, we

have no reason to expect that an EA will indicate the

need for an EIS in this instance. We nevertheless prepare

EA’s on exploration plans becau

se th

our decision process. ey are valuable to

F17NC2.

Question: How many explorati

Pheccionss y exploration plans has MMS ever

—What are the consequences to MMS for di

or disa i

an exploration plan or cancelling a lease? oe

——Has MMS ever taken more than 30 d

ays t vi

an exploration plan, and if so, what ats. i ee

quences to either MMS or the lesses?

78

Answer: The Minerals Management Service (MMS)

does not ordinarily disapprove exploration plans. If the

plan is deficient in some manner, the operator is contacted

to correct the deficiency. However, since the 1978 Amend-

ments of the Outer Continental Shelf Lands Act (OCSLA)

were enacted, there have been 15 disapprovals of explor-

ation plans. These disapprovals were caused by incom-

plete or inappropriate plans (6) on conflicts with mili-

tary uses (9). The MMS has never needed to cancel

an OCS oil and gas lease under the OCS Lands Act

Amendments of 1978, since no activities on leases have

caused undue harm to the environment. The ultimate

consequence of being unable to reconcile difficulties with

an exploration plan due to conflicting uses or unmitigat-

able environmental damage would be cancellation of the

lease. The OCSLA provides that the lessee is entitled to

compensation if the Secretary cancels a lease.

The MMS has taken final action on all exploration

plans within the 30-day period required by the OCSLA.

79

MEMORANDUM OF UNDERSTANDING

BY AND BETWEEN

THE STATE OF NORTH CAROLINA, MOBIL OIL

CORPORATION, AND THE MINERALS MANAGEMENT

SERVICE REGARDING EXPLORATION OF

OUTER CONTINENTAL SHELF LEASES

OFFSHORE NORTH CAROLINA

This memorandum of understanding is entered into on

July 12, 1989, by the State of North Carolina (the State),

Mobil Oil Corporation (Mobil), and the United States

Department of the Interior’s Minerals Management Serv-

ice (MMS), in order to satisfy the statutory requirements

of the Outer Continental Shelf Lands Act (OCSLA), 43

U.S.C. 1331 et seq., and the Coastal Zone Management

Act (CZMA), 16 U.S.C. 1451 et seq., and to Satisfy the

State’s needs for information and analysis concerning the

environmental impacts of exploration activities conducted

by Mobil on leases held by Mobil and others located on

the federal Outer Continental Shelf offshore the State,

including leases on block numbers 204, 246, 247, 290,

291, 334, 335, 378, 379, 422, 423, 466, 467, 510, 511,

553, 554, 555, 597, 598, 599, 640, 641, or 642.

The following agreement provisions are graphically pre-

sented in the Environmental Action Plan Timeline at-

tached hereto and made a part of this memorandum as

Attachment A. The timeline is intended to illustrate the

text of the agreement; if there is an inconsistency between

the timeline and the text, the text controls.

I

WHEREAS Mobil is a lessee in whole or in part of cer-

tain Outer Continental Shelf oil and gas leases offshore

the State of North Carolina including blocks 423, 467,

511, and 554 on protraction diagram NI 18-2; and,

80

WHEREAS, Mobil intends to explore these leases pursu-

ant to section 11 of the OCSLA, as amended, 43 U.S.C.

1340; and,

WHEREAS, Mobil has negotiated with and may unitize

its lease interests with the interests of some or all of the

following lessees including Amerada Hess, Marathon,

Chevron, Conoco, Occidental, Shell, and Union for lease

blocks in the same general area as Mobil’s leases, thereby

becoming the unit operator; and

WHEREAS, Mobil must submit to the MMS for review

and approval an Exploration Plan (EP) pursuant to sec-

tion 11(c)(1) of the OCSLA, 43 U.S.C. 1340(c)(1)

prior to conducting its exploration activities; and,

WHEREAS, the MMS must review the environmental

impacts of Mobil’s EP pursuant to section 11(c)(1) of

the OCSLA, 43 U.S.C. 1340(c)(1), and the National

Environmental Policy Act (NEPA), prior to approving,

disapproving, or requiring modification of the EP; and,

WHEREAS, pursuant to section 11(c) ( 1) of the OCSLA,

43 US.C. 1340(c)(1), the MMS must approve, dis-

approve, or require modification of Mobil’s EP within

thirty days of the date on which Mobil’s EP is deemed

submitted; and,

WHEREAS, Mobil must submit its certification that the

activities described in detail in its EP are consistent with

the State’s coastal management program (CMP) pursuant

to section 307(c)(3)(B) of the Coastal Zone Manage-

ment Act (CZMA), 16 U.S.C. 1456(c)(3)(B); and,

WHEREAS. the State must review the activities described

in detail in Mobil’s EP for consistency with the State’s

CMP pursuant to section 307 (c)(3)(B) of the CZMA,

16 U.S.C. 1456(c) (3) (B); and,

81

WHEREAS, the MMS may not issue permits for any

exploration activities contained in Mobil’s EP prior to

1eceiving the State’s concurrence with Mobil’s consistency

certification or until such concurrence may be conclusively

presumed, or until the Secretary of Commerce makes the

findings set forth in section 307(c)(3)(B) of the CIMA

16 U.S.C. 1456(c) (3) (B); and,

WHEREAS, the Environmental Report which MMS will

prepare under this agreement will address a broader range

of State concerns than MMS could consider in an en-

vironmental impact statement prepared under NEPA;

THEREFORE, the State, Mobil, and

5) - th

agree to the following: ier waned

II

THE MMS agrees to:

1. Use the draft outline of the Environm

(ER), which is attached hereto and made pu ~ ye

memorandum as Attachment B, as the starting point for

the consultation process in which the State and MMS will

participate and by which the contents of the ER will be

Cotermined to meet the specific needs of the State or

2. Prepare an ER which will assess, as a minimum

the environmental impacts of Mobil’s EP and the poten-

tial 2 1-block unit as described in Part I, the report from

the oil spill risk analysis modeling for mid-Atlantic Lease

Sale 121, the potentially affected coastal environment. the

effects associated with exploratory drilling for the initial

well and all reasonably foreseeable delineation wells, the

potential impacts of spills of oil or gas during drilling

operations on the North Carolina coastal environment,

and such additional issues as m

State and MMS; oF Ee te Re

82

3. Submit to the State on July 17, 1989, the report

from the oil spill risk analysis modeling for mid-Atlantic

Lease Sale 121, a description of the potentially affected

coastal environment, and a generic description of the

effects associated with exploratory drilling;

4. Participate in at least three public meetings con-

cerning the information submitted to the State in August

1989 at a location or locations to be determined by

agreement of MMS and the State;

5. According to the outline submitted to the State,

prepare a draft ER for publication and review and com-

ment by the State and the public on November 1, 1989;

6. Participate in at least three public hearings con-

cerning the draft ER during the week of December 4,

1989, at a location or locations to be determined by

agreement of MMS and the State;

7. After consideration of comments on the draft ER,

prepare a final ER for submission to the State by Feb-

ruary 1, 1990;

8. Determine pursuant to 30 C.F.R. 250.33(e) whether

Mobil’s final EP should be deemed submitted, transmit

the EP to the State on the date the EP is deemed sub-

mitted, and begin preparation of the Environmental

Assessment (EA);

9. Review comments on the EP submitted by the

Governor after his 20-day review;

10. Complete the EA, and approve, disapprove, or

require modification of Mobil’s EP within 30 days of the

date the EP is deemed submitted, if no other NEPA

document is required;

11. Prepare an ER with the scope and process de-

scribed on the first EP to be submitted on any of the

83

lease blocks listed in the opening paragraph of this mem-

orandum of understanding if the Mobil EP is not the

first EP, for the listed lease blocks, to be reviewed by

MMS. However, if the lessee submitting the EP does not

agree to the process set forth in Article IV of this agree-

ment, then MMS and the State will consult immediately

to identify a mutually agreeable alternative process;

12. Issue a suspension of operations for any of those

nineteen leases due to expire on August 31, 1991, which

are included in the draft EP. The suspension will not

prevent the conduct of preliminary activities as defined in

30 C.F.R. 250.31 (1988). The suspension will be di-

rected by the Regional Supervisor under 30 C.F.R. 250.10

(b)(4). It will be effective on the date Mobil submits

the draft EP under this agreement and will expire on Feb-

ruary 1, 1990, or on the date MMS submits the final ER

to the State, whichever is later;

13. If the State objects to Mobil’s certification of con-

sistency, or if any other administrative or judicial chal-

lenges or appeals arise, or if the issuance of the permits

for Mobil’s exploration activities is delayed due to any

of the other circumstances contemplated by 30 C.F.R.

§ 250.10, upon Mobil’s application, issue additional sus-

pensions of operations, pursuant to 30 C.F.R. § 250.10.

to allow for the resolution of such matters and to allow

Mobil two drilling seasons under the EP thereafter. For

the purpose of this paragraph, a drilling season is the

period of May 1 through October 31.

Il

THE STATE agrees to:

1. Provide data agreed to in a timely manner;

2. Participate in public meetin i i

gs concerning the infor-

mation submitted to the State in August 1989 at a loca-

84

tion or locations to be determined by agreement of MMS

and the State;

3. Participate in public hearings concerning the draft

ER and draft EP during the week of December 4, 1989,

at a location or locations to be determined by agreement

of MMS and the State;

4. Begin its CZMA consistency review of Mobil’s

final EP on the date of receipt of the final EP from the

MMS; and,

5. Complete its CZMA consistency review within

seventy-five (75) days of receipt of the EP, and on that

day issue its concurrence with or objection to Mobil’s

consistency certification.

IV

MOBIL agrees:

1. To submit a non-binding draft EP on September 1,

1989, including all documentation required by law and

such additional supporting information and documenta-

tion as shall be hereafter agreed to by the parties to this

agreement; and,

2. Not to submit a final EP to the MMS before Janu-

ary 18, 1990.

Vv

GENERAL AGREEMENT OF THE PARTIES:

1. Time being of the essence, all dates contained in

the foregoing sections II-IV are subject to change only

pursuant to subsequent written agreement of the parties,

provided, however, that the time between each step de-

picted in Attachment A shall remain constant.

2. By entering into this agreement, the State of North

Carolina has not waived any legal remedies it may have

85

to challenge the approval of Mobil’s EP or related permits

and approvals for activities described in the plan. The

Department of the Interior has not waived any defenses

or remedies it may have if the State files such a ‘

Mobil Oil Corporation and the co-lessees of the leases in-

cluded in the EP or unit have not waived any rights, de-

enses, or remedies they may have with respect to their

exploration of their leases.

APPROVED:

Minerals Management State of North Carolina

Service

/s/ (Ilegible] /s/ James G. Martin

Acting Director Governor

Date: 7-11-89 Date: 7-12-89

Mobil Oil /s/ [Illegible]

Corporation Secretary,

Department of Administration

Date: 7-12-89

/s/ (Ilegible)

Date: 7-11-87

/s/ [Mlegible}

Attorney General

Date: 7-12-89

NORTH CAROLINA

DEPARTMENT OF ADMINISTRATION

James G. Martin, Governor Outer Continental Shelf Office

James S. Lofton, Secretary Donna D. Moffitt, Director

November 20, 1989

MEMORANDUM

TO: Secretary Jim Lofton

_ Secretary Bill Cobey

~ Phil Kirk/Nancy Temple

Tim Pittman

Donna Moffitt /s/ Donna

SUBJECT: Opportunity for Official State Comment on

MMS’ Draft Environmental Report

ACTION ITEM: The Minerals Management Service

(MMS) will be holding its public hearings December 4-7

on the draft Environmental Report (ER) that was pre-

pared pursuant to the MMS/N.C. /Mobil Memorandum

of Understanding. The State has not had a major public

statement since the announcement of the signing of the

MOU. Our next opportunity for a public statement is

during MMS’ public hearings. The purpose of this memo-

randum is to alert you to the fact that the opportunity

exists for the State to make a strong statement—even

going so far as asking for the timeline to be suspended

while MMS tries to do a better job on the next version

of the ER—and to ask that you consider who the appro-

priate spokesperson should be to deliver the State’s com-

ments.

BACKGROUND: Several major events are causing more

and more focus to be placed on North Carolina and the

87

Mobil project. Examples are Rep. Barbara Boxer’s bill

to be introduced in Congress today in which oil and gas

activities would be banned out to 175 miles off the N.C.

coast (we have no idea where this figure came from), and

the 21 lease blocks in the Manteo exploration unit are

specifically identified for possible buy back; the brand

new National Research Council (NRC) of the Academies

of Sciences and Engineering report which is very damaging

to the offshore oil and gas program and very critical of

(1) the inherent conflict of interest created as a result of

the agency that is responsible for opening up the OCS

for oil and gas development (i.e., MMS) also preparing

the environmental baseline data, and (2) MMS’ lack of

adequate environmental and socio-economic data to con-

duct leases off the California and Florida coasts (The

NRC report focused only on Calif. and Fla. but there

has already been national press coverage about how this

report has obvious implications for the Mobil exploration

off our coast. I have attached for you [sic] review an ex-

cellent analysis by Clark Wright of the Ocean Unit for

the NRC’s major findings as they relate to Mobil’s pro-

posal and MMS’ environmental report.); and Rep. George

Miller of California’s call for public hearings (Congress-

man Rose is asking him to consider holding one in N.C.

in 1990) on significantly amending the Outer Continental

Shelf Lands Act to give coastal states more authority in

the oil and gas program. So far we have declined to com-

ment on any of the above items, nor have we commented

publicly on Mobil’s draft Exploration Plan or MMS’ draft

Environmental Report, and the pressure is mounting for

the State to say something! :

ANALYSIS: Our review of MMS environmental report

is that it violates the MOU in its adequacy of analvsis

and scope of the alternatives presented, i.e., it impermis-

sibly breaks down the environmental review into a one-

well scenario and a seven-well scenario which is contrary

to the requirements of the MOU; it is a very poorly pre-

pared document with many errors, omissions, and dated

material; the data and analysis presented on many topics

is not focused on the resources or conditions existing off

our coast but instead is a generic presentation of informa-

tion; it arbitrarily dismisses or ignores significant data

that the State provided about our own resources onshore

and offshore; and it arbitrarily selects data that is favor-

able to the MMS point of view that neither Mobil’s test

well nor the 6 delineation wells will have significant or

long term impacts while ignoring data that is unfavorable

to this predetermined point of view of MMS’.

As you might expect, the public is going to have severe

and justified criticism of the draft ER and of the State

for believing that MMS could produce an adequate and

objective “custom made” environmental analysis of Mobil’s

proposal and potential future development. The NRC

report certainly lends credence to this view. It seems ap-

parent that there was insufficient time to prepare such

a document adequately and we ought to ask for a suspen-

sion of the timeline while MMS prepares another draft,

or takes significantly longer to complete the final ER, or

contracts with an independent consultant to finish the

environmental review and analysis. A suspension of the

timeline will not harm Mobil, and may in fact be bene-

ficial to Mobil, because its leases are suspended during

the time that the ER is being prepared. From what we

gather from Mobil’s comments to us, Mobil is looking for

an excuse not to drill next year anyway, and this could

take some of the pressure off them. It’s a near certainty

that, regardless of what happens on the draft ER and

MOU timeline, Mobil will not be drilling before Spring

1991 at the earliest.

It seems clear that whoever has the strongest statement

at the first public hearing in Manteo will get the publicity.

We ought to consider the appropriateness of the State

leading off the first public hearing at 3:00 p.m. on De-

cember 4 in Manteo with a strong statement.

I look forward to your thoughts on this matter.

Attachment

90

APPENDIX A

UNIQUE FACTS REGARDING MOBIL’S

PROP SED EXPLORATION

The factors supporting the State’s unique factual situation

allowing us to argue that in this one situation, an EIS

should be prepared for exploration activities:

The age of the existing lease sale EIS

The inadequate discussion of material issues in the

existing lease sale EIS and subsequent lease sale

EISs for the same geographic area

The express language in the lease sale EIS providing for

the possibility of an EIS at the exploration stage

The “frontier” nature of offshore drilling

off the North Carolina coast

Unique drill site conditions including the depth of the

water, the steepness of the sea floor, known

geohazards existing in the general area, the

unpredictability and severity of the weather,

the swiftness and unpredictability of the

ocean currents, the proximity of a prime

recreational fishing area, and the

proximity of spawning grounds for

commercially significant fishing

species such as menhaden

The unknown character (oil, gas, or sour gas) and

potential huge size of the hydrocarbon deposit

91

APPENDIX B

STATE’S MAJOR CONCERNS

The major concerns of the State with respect to the ex-

ploratory drilling proposal can be grouped into four cate-

gories. These are: (1) site-specific or project-specific

concerns either inadequately addressed or not addressed

in prior environmental documents; (2) flawed analysis

based either on erroneous or incomplete information con-

tained in existing environmental documents; (3) new in-

formation or changed circumstances which are material

to a proper analysis of impacts; and (4) unreviewed im-

pacts. The following is a detailed discussion of the State’s

concerns under each category.

SITE SPECIFIC CONCERNS

The oceanographic conditions where Mobil wants to drill

are extremely dynamic. The unusual current regime

could result in operational problems during drilling and

unpredictable dispersion patterns and water column sus-

pension of drilling muds and spilled oil. Gulf Stream cur-

rents fluctuate between 2 and 5 knots, spin-off eddies

sweep across the site on the average of every 2 to 10

days, and waves approach 25 feet during Nor’easters.

Thus, the State believes a slightly different drilling win-

dow whereby Mobil begins drilling in May instead of

March is better. The sea bottom at the drill site is char-

acterized by extremely rugged conditions, canyons, a

continental slope of 15 degrees, and known slope failures

nearby. The area is known to contain frozen gas hydrates

in the shallow subbottom which, if encountered during

drilling, can affect the well casing integrity and therefore

Mobil’s ability to prevent a loss of well control. None of

the existing lease sale documents have adequately ana-

lyzed the effects of all these adverse conditions, taken to-

92

gether, upon an oil company’s ability to maintain safe

drilling and well control.

The site is also biologically rich and diverse because of

the upwelling currents and other unique conditions set

up by the separation of the Gulf Stream from the con-

tinental shelf. It is locally known as “The Point” and is

one of the most intensely used recreational fishing sites

on the whole East Coast. Significant commercial fishing

activities also occur in the Point area. Whale, porpoise,

and sea turtle migration routes pass through this area

which is also an important site of concentrated sea bird

activity. Again, no previous lease sale EIS has identified

the concentration of diverse biological resources located

in the Point area. The potential impacts to these bio-

logically important resources from drilling in that area

will have to be properly addressed in Mobil’s environ-

mental report.

FLAWED ANALYSIS

Oil spill risk analysis conducted for past lease sale EISs

was inaccurate because it failed to account for Gulf

Stream spin-off eddies. If a spill were to occur during

drilling and the oil became entrained in a spin-off eddy,

the oil could be brought to North Carolina’s coast faster

and in a different trajectory than predicted in the EIS

documents. Because of this erroneous analysis, MMS has

been sponsoring research pursuant to a 1983 memoran-

dum of understanding between MMS and North Carolina

to improve its ocean circulation model, adiust its oil spill

risk analysis model, and gather better field data on the

eddies. Until those studies are completed and the results

verified by independent experts, the State will be unable

to respond favorably to the Mobil oil spill contingency

plan, which is an essential component of the overall ex-

93

ploration plan. In addition, the oil spill plan must pro-

vide for the fullest measure of protection possible for our

fragile near-shore and estuarine resources.

Another area of erroneous analysis involves cumulative

impact analysis. All previous environmental documents

discuss impacts in a retrospective manner rather than pre-

dicting potential impacts from past, current, and foresee-

able future oil and gas activities. Impacts from other

ocean uses are not analyzed in a cumulative manner nor

are impacts analyzed from and through all Atlantic OCS

regions. Such spatially cumulative impacts are especially

important in analyzing total impacts upon migratory spe-

cies. This concern was specifically upheld in a recent

federal court decision involving the latest 5-year leasing

program.

Current and projected populations for coastal counties

have been erroneously estimated in previous EISs. Total

population was significantly underestimated and seasonal

variations in population were not considered. The coastal

counties are the most rapidly growing areas of the State

and development pressures are already adversely impact-

ing the State’s coastal environments. These existing

stresses must be taken as a given in analyzing the addi-

tional impacts that will, or potentially may, occur as a

result of offshore oil and gas drilling.

NEW INFORMATION

OF CHANGED CIRCUMSTANCES

One of the most important changes in the informational

baseline used in the previous lease sale EISs involves the

present prediction that gas is the most likely discovery

rather than oil, and that the discovery may be as large

as 5 trillion cubic feet. Previous environmental docu-

ments focused on an oil discovery, not a gas strike as

94

Mobil is now predicting, and certainly not of that size.

The total gas reserves estimated in both the Lease Sale

56 EIS and the newest 5-year OCS leasing program for

our entire OCS planning region are roughly equivalent to

what Mobil now estimates for this one project offshore

North Carolina alone. If the 21 blocks are formed into

one unit it will be the largest unit ever approved on the

U.S. OCS and if a discovery were made of the size pre-

dicted, it would be one of the world’s largest gas reser-

voirs.

Additionally, the Lease Sale 56 EIS states that oil and

gas activities will not adversely impact local community

infrastructure because existing community services can

meet current demand. This original assumption is clearly

invalid as shown by the Morehead City example where a

moratorium exists on additional waste water treatment

plant hook-ups. The original impact analysis failed to

accurately reflect the growing development pressures cur-

rently being experienced by North Carolina coastal com-

munities. According to the original Lease Sale 56 EIS,

CEIP (Coastal Energy Impact Program) planning monies

could be used to help mitigate any anticipated community

infrastructure impacts. Unfortunately, CEIP money has

not been available from the federal government since late

1982.

UNREVIEWED IMPACTS

There is a complete lack of analysis of potential impacts

to public health and safety in any of the previous environ-

mental documents, particularly related to development

and production of natural gas resources. Because the

focus of past environmental documents was on oil instead

of gas, there has been no analysis of impacts from a po-

tential sour gas, or hydrogen sulfide, discovery. Hydrogen

sulfide gas is highly poisonous and requires extensive

95

safety precautions. The Mobil drilling site is in an area

considered by MMS regulation to be an area of unknown

hydrogen sulfide potential and thus this concern must be

addressed.

Another area involving unreviewed impacts concerns

threatened or endangered species. Both the U.S. Fish and

Wildlife Service and the National Marine Fisheries Serv-

ice consulted with Interior during the preparation of the

Lease Sale 56 document under authority provided in Sec-

tion 7 of the Endangered Species Act of 1973. Both

agencies indicated at that time that if new species which

may be affected should be listed, or additional pertinent

information becomes available, or if there are significant

modifications to the described action, the Section 7 con-

sultation must be reinitiated. The State is concerned

newly listed species may be present in the drilling area

and that potential impacts of exploratory activities are

not adequately addressed in the Lease Sale 56 EIS bio-

logical opinions.

There are other unreviewed impacts that the State is cur-

rently investigating to determine the potential for impact.

These include noise, radioactive disposal of drilling pipe

and other material, and shore-based impacts of onshore

disposal of any drilling muds that may be contaminated

with substances unauthorized for ocean disposal.

Additionally, the State desires the higher level for prep-

aration, review, and comment provided by an EIS such

as disclosure, dissemination and analysis of impact infor-

mation, as well as a discussion of alternatives and mitiga-

tion measures.

96

MOBIL EXPLORATION & PRODUCING U.S. INC.

April 17, 1990

HAND DELIVERED

Hon. William W. Cobey, Jr.

Secretary—Department of Environment,

Health and Natural Resources

State of North Carolina

512 North Salisbury Street

Raleigh, North Carolina 27611

Re: NPDES Number NC0052523

Mobil Oil Exploration & Producing

Southeast Inc. (MOEPSIT)

Manteo Area Block 467, Lease OCS-A-0236

Dear Secretary Cobey:

On August 18, 1989, Mobil Exploration & Producing

U.S. Inc. (MEPUS), on behalf of its affiliate Mobil

Oil Exploration & Producing Southeast Inc. (MOEPST),

submitted an NPDES Permit Application for proposed

exploratory drilling activities in Manteo Area Block 467,

Lease OCS A-0236. On October 11, 1989, the United

States Department of Commerce’s Office of Ocean and

Coastal Resource Management (OCRM), at the request

of the State of North Carolina, granted North Carolina

permission to review the proposed discharges addressed

in Mobil’s NPDES Permit Application as an unlisted

activity for purposes of coastal zone consistency review.

Accordingly, pursuant to the federal Coastal Zone

Management Act’s regulations, specifically 15 CFR

§ 930.54(e), MEPUS has submitted to the EPA and the

OCRM its Statement of Coastal Zone Consistency Certifi-

97

cation with supporting information and documentation.

In accordance with the regulatory provisions cited,

MEPUS also submits to the State of North Carolina with

this correspondence a copy of the Coastal Zone Consist-

ency Certification and necessary supporting data and in-

formation required under the Federal and State regula-

tions.

It is Mobil’s understanding that, pursuant to 15 CFR

§ 930.54(e) and OCRM’s February 9, 1990 letter/ruling,

North Caorlina shall have three months from today, or

until July 17, 1990, to perform its consistency review.

If you have any questions on the materials attached

hereto, please do not hesitate to contact me.

Very truly yours,

/s/ William C. Whittemore

WILLIAM C. WHITTEMORE

WCW /rt

cc: Mr. Donald E. Critchfield

U.S. Department of Commerce

National Oceanic & Atmospheric Administration

Office of Ocean & Coastal Resource Management

1825 Connecticut Ave. N.W.—Rm. 706

Washington, DC 20235

Ms. Donna D. Moffitt, Director

OCS Office

State of North Carolina

19 W. Hargett St.—9th Floor

Raleigh, NC 27601

James R. Patrick, Jr.

Chief Permit Section

Facilities Performance Branch

Water Management Division

U.S. Environmental Protection Agency—Region IV

345 Courtland St. N.E.

Atlanta, GA 30365

Dr. Paul Stam

Federal Program Coordinator

Department of Environment, Health &

Natural Resources

512 N. Salisbury St.

Raleigh, NC 27611

Mr. Bruce Weetman, Regional Director

Atlantic OCS Region

Minerals Management Service

381 Elden St., Suite 1109

Herndon, VA 22070-4817

I. Clark Wright, Jr., Esq.

Associate Attorney General

State of North Carolina

Department of Justice

19 W. Hargett St.

Raleigh, NC 27601

; 99

THE WHITE HOUSE

Office of the Press Secretary

For Immediate Release June 26, 1990

FACT SHEET

PRESIDENTIAL DECISIONS CONCERNING

OIL AND GAS DEVELOPMENT ON THE

OUTER CONTINENTAL SHELF

The President today announced a series of decisions re-

lated to oil and gas development on the outer continental

shelf (OCS). The President believes that these decisions

strike a needed balance between development of the Na-

tion’s important domestic energy resources and protection

of the environment in sensitive areas.

Decisions by the President on Three Pending Sales.

Decision for California Sales

* Cancel all sales scheduled for 1990, 1991 and 1992

offshore California, including Sale 91 off the coast

of northern California and Sale 95 off the coast of

southern California.

* Conduct additional oceanographic and socioeco-

nomic studies as recommended by the National Acad-

emy of Sciences in a review conducted for the inter-

agency Task Force on Leasing and Development of

the OCS (the Task Force). These studies should

take 3 to 4 years.

* Exclude more than 99 percent of the tracts (including

all of the Sale 91 area and all of the Sale 95 area

south of the Santa Barbara Channel) off California

100

from consideration for any lease until after the year

2000. The Interior Department has identified 87

tracts off the coast of southern California within the

Sale 95 area that have high resource potential. These

tracts are located in the Santa Maria Basin and Santa

Barbara Channel, where oil and gas production is

currently underway. They comprise approximately

0.7 percent of all of the tracts off California, or

0.67 percent of the 74 million total acres off Cali-

fornia that could be leased and 1.63 percent of the

30.5 million acres in the Southern California Plan-

ning Area. These tracts will not be available for

leasing consideration until after January 1, 1996 and

completion of the additional studies. They will then

be available only if development appears viable

based on the guiding principles outlined below and

the results of the studies.

Decision for Florida

* Cancel Sale 116, Part II, and exclude the area from

consideration for any lease sale until after the year

2000. Any development after the year 2000 would

be pursued only if it appears viable based on the

guiding principles outlined below and the results of

additional studies.

* Conduct additional oceanographic, ecological and

socioeconomic studies as recommended by the Na-

tional Academy of Sciences in its review. These

studies should be completed within 5 to 6 years.

* Begin cancellation of existing leases off Florida and

initiate discussions with the State of Florida for its

participation in a joint federal-state buy-back of the

leases.

101

Guiding Principles

The President's decisions were based on the following

principles:

(1) Adequate Information and Analysis—Adequate

scientific and technical information regarding the re-

source potential of each area considered for leasing

and the environmental, social and economic effects

of oil and gas activity must be available and sub-

jected to rigorous scrutiny before decisions are made.

No new leasing should take place without such infor-

mation and analysis.

(2) Environmental Sensitivity—Certain areas off our

coasts represent unique natural resources. In those

areas even the small risks posed by oil and gas de-

velopment may be too great. In other areas where

science and experience and new recovery technolo-

- show ee may be safe, development will

(3) Resource Potential—Priority for development

Should be given to those areas with the greatest re-

source potential. Given the inexact nature of re-

source estimation, particularly offshore, priori

should be given to those areas Man earlier Psd

ment has proven the existence of economically re-

coverable reserves.

( 4) Energy Requirements—The requirements of our

ay $ economy for energy and the overall costs

102

U.S. HOUSE OF REPRESENTATIVES

COMMITTEE ON

MERCHANT MARINE AND FISHERIES

Room 1334, Longworth House Office Building

Washington, DC 20515-6230

June 26, 1990

The President

The White House

Washington, D.C. 20500

Dear Mr. President:

The Citizens of Florida and California have been wait-

ing for many months for the announcement you made this

afternoon imposing an offshore oil and gas leasing mora-

torium off their coastlines that will last throughout the

remainder of this decade. I am sure they were pleased by

your announcement, as were the citizens of Oregon,

Washington, and New England who, unexpectedly, were

also included in the moratorium.

Given the inclusion of areas that we had believed were

beyond the scope of the Task Force’s recommendations,

I am equally sure that the citizens of the Atlantic sea-

board were disheartened to find that leasing is still a

possibility adjacent to their shores.

Therefore, I urgently request that you revise your an-

nouncement to include North Carolina and the other

states of the Mid- and South Atlantic planning areas in

this leasing moratorium. This makes sense for the very

same reasons the other areas of the country were included.

In addition, offshore North Carolina and the surrounding

waters are frontier areas which have never been subjected

to the kind of environmental studies which—though now

proven inadequate—have already taken place off Cali-

fornia and Florida.

103

Your announcement today was based on the n

protect the special environmental attributes of the ——-

torlum areas. Mr. President, North Carolina’s Outer

Banks are home to Cape Hatteras National Seashore

Cape Lookout National Seashore, the U.S.S. MONITOR

National Marine Sanctuary, numerous National Wildlife

Refuges, and the Albemarle-Pamlico estuary which has

tour te ab estuary of national significance. Indi-

» an i

ers | y combined, these areas also deserve

At your earliest possible convenience I would like to

personally show you the Outer Banks and introduce you

‘o the thousands of North Carolinians who, with me,

share your concern for our nation’s fragile coastal areas.

Sincerely,

/s/ Walter B. Jones

WALTER B. Jones

Chairman

104

[State Logo]

STATE OF NORTH CAROLINA

OFFICE OF THE GOVERNOR

Raleigh 27603-8001

James C. Martin

Governor

June 27, 1990

The Honorable George Bush

The White House

Washington, D.C. 20500

Dear Mr. President:

Yesterday, I spoke by phone with Mr. Andrew Card,

your director of Intergovernmental Relations, requesting

that North Carolina be included in the moratorium on oil

and gas leasing and development that you announced

earlier in the day. Again today, Robert Grady of OMU

phoned me for further information to present to you.

I am writing you to underscore that request. Clearly, the

guiding principles employed in your decision apply to

North Carolina as well.

I would also suggest, Mr. President, that the most mean-

ingful—and pleasurable—way we can show you how vital

our coast and the maritime economy it produces are to

our citizens is for you to see for yourself.

With that in mind, I would like to invite you to go

deep-sea fishing with me at the site Mobil Oil Corp. is

considering for exploratory test drilling. If this meets with

your approval, we will arrange it to fit your schedule.

This matter is of great importance to North Carolina.

I have been wrestling with the issue of offshore drilling

for many months, trying to balance our nation’s fuel needs

105

with my unwavering conviction that we must preserve and

protect our state’s coast.

Your decision that our nation’s oil and gas reserves are

such that we can await a ten year moratorium on off-

shore exploration in non-producing areas convinces me

that there is no need for North Carolina to be excluded

from your moratorium. Since our state has the only oil

or gas drilling site on the entire East Coast that wasn’t

included in your announcement, I respectfully request that

the moratorium order be amended to include North

Carolina.

I believe you will be able to get a strong grasp of the

situation—as well as a marlin or king mackerel or two—

if you can find time to join me. My fellow North Caro

linians and I would be honored to show you personally

the Atlantic waters we are committed to protecting.

Thank you very much, Mr. President, for your consider-

ation.

Sincerely,

/s/ Jim Martin

JAMES C. MARTIN

106

{State Logo]

STATE OF NORTH CAROLINA

DEPARTMENT OF ENVIRONMENT, HEALTH,

AND NATURAL RESOURCES

DIVISION OF COASTAL MANAGEMENT

225 North McDowell Street

Raleigh, North Carolina 27602

James C. Martin, Governor Roger N. Schecter

William W. Cobey, Jr., Secretary Director

DRAFT

July 16, 1990

Mr. William C. Whittemore, Senior Counsel

Mobil Exploration & Producing U.S., Inc.

1250 Poydras Plaza

New Orleans, LA 70113-1892

Dear Mr. Whittemore:

This letter provides the State of North Carolina’s offi-

cial response to Mobil’s April 17, 1990 consistency cer-

tification in which Mobil deemed its proposed discharge

activities consistent with North Carolina’s federally ap-

proved Coastal Management Program. Mobil’s certifica-

tion is for NPDES Permit Application Number NC

UU52523, which describes proposed exploratory drilling

discharge activities in Manteo Area Block 467, Lease

OCS A-0236. The consistency certification was received

by the State on 4/17/90 and assigned the number CD90-

10 for review purposes.

Based upon our review of the certification and other

information sources available (see Attachment 1), the

State objects to Mobil’s certification that the proposed

activity is consistent with the North Carolina Coastal

107

Management Program. Our objection is based on Mobil’s

failure to provide data and information necessary to allow

the State to conduct a proper consistency review of the

— on hy merits. The State’s informational objec-

are made pursuant to 15 CFA Sections 930.54

930.58, 930.60(a) and 930.64(d). mean

Since the Fall of 1988, North Carolina has expressed

concerns to Mobil about informational deficiencies related

a ’ Proposed drilling activities in Manteo Area Block

; Lease OCS A-0326. In December of 1989, Mobil

was provided with a written list of fisheries studies viewed

as essential by the Division of Marine Fisheries in order

to address informational concerns related to assessment of

parts which were more directly relevant to a

ec ; n assessment

of potential drilling discharge impacts. The four part

study was also set out in North Carolina’s January 31,

After discussions between Mobil and the State, the four

part study was focused on discharge impacts and clarified

once again (see Attachment 3) in Governor Martin’s

comments to EPA on 6/1/90 and supplemented by the

Governor’s letter of 7/13/90 to EPA (see Attachment

4). As of the date of this letter, the state has not received

any of the site-specific fisheries data required by the four

part study described above.

The State had previously determined that the NP

permit activity may have potentially significant ~ -

North Carolina's coastal resources. This Position was

Pre een np by the U.S. Department of Commerce in

their 10/ 11/89 letter granting permission to the State for

@ consistency review of Mobil’s NPDES permit with a

108

finding that the activity “can be reasonably expected to

affect the State’s coastal resources” (see Attachment 5).

The State specified four North Carolina Coastal Man-

agement Program enforceable policies and standards par-

ticularly relevant to the NPDES permit consistency cer-

tification review process in our 4/12/90 letter to Mobil.

These are extracted from the eight criteria listed in our

federally approved 1979 Program Amendments which

states that the criteria “will be used to judge the consist-

ency of OCS development with the CM program.” The

four particularly relevant criteria are:

—Risks of environmental harm to fish spawning areas are

assessed and minimized.

—Potential damage or interference with traditional fishing

grounds or areas with high biological/recreational value

(reefs, rock outcrops) is avoided.

—Placement of structures in geologically hazardous or

biologically sensitive areas is avoided.

—Potential wildlife destruction or relocation is assessed

and minimized.

The potential impacts of Mobil’s proposed discharge

activities upon the land and water uses of our coastal

zone cannot presently be assessed against these four cri-

teria because of the company’s failure to provide the

requested information. The requested information is neces-

sary to allow proper determinations to be made regarding

the biological importance of the proposed drill site area

to the State’s fisheries, the importance of the area to birds

and marine mammals, and the economic importance of

the proposed drill site area (which is located in or near

the area locally known as “The Point”) to the State’s

fishermen. Detailed review comments and analysis of the

significance of the proposed drill site to biological re-

109

sources by the Division of Marine Fisheries are attached

(see Attachment 6).

Comments received from other State Resource Manage-

ment Agencies during our current review of Mobil’s con-

sistency certification support our 4/12/90 conclusion that

the information provided is insufficient. Our reviewers

have also identified the following informational deficien-

cies and additional informational needs. Again, these in-

formational needs are essential to our ability to success-

fully apply the four criteria listed above for judging the

consistency of OCS development.

Mobil has used computer models to address the risks

of environmental harm to fish spawning areas. The State

has consistently maintained that the resources impacts

cannot be documented or projected without adequate

site specific baseline data. The four part fisheries studies

are designed to provide the minimal site specific data

which can reasonably be used to project probable impacts

on fisheries resources from Mobil’s proposed exploratory

drilling discharges. Further, the State has maintained that

Mobil has met fully documented assumptions used in their

models and that the applicability of the models therefore

cannot be judged (see comments provided by the Division

of Environmental Management in Attachment 7 and the re-

port prepared by Dr. Gerald S. Janowitz for the NC Outer

Continental Shelf Office May 8, 1989 in Attachment 8).

The NC Division of Parks and Recreation pointed out

that the use of Fundulus heteroclitus, a salt marsh, estua-

rine, and tidal creek species is unsuitable for determining

toxicity of drilling muds to oceanic fish or invertebrates

since, unlike oceanic species, Fundulus eggs, larvae, and

adults are normally associated with high turbidities and

sedimentation rates. Toxicity information must be pro-

vided for species adapted to the oceanic environmental

conditions found at the proposed drill site.

110

The North Carolina Wildlife Resources Commission has

determined that the following information is necessary to

determine that potential wildlife destruction or relocation

is assessed and minimized:

1. Utilization of the project site by pelagic birds, sea

turtles and marine mammals. This should include in-

formation regarding numbers of individuals, numbers

of species, and activities by species at the project site.

2. Past or ongoing research regarding impacts of oil and

gas exploration discharges on wildlife resources.

3. Plans for remedial action if adverse impacts are de-

tected once drilling activities are initiated.

Finally, EPA Region IV has informally indicated to

Mobil and the State its intert to provide a “Response to

Comments” document in which the agency will propose

final discharge permit conditions, limitations, and prohibi-

tions. As of this date, EPA Region IV has not issued this

response. Therefore, in addition to the informational de-

ficiencies outlined above, the State does not at this time

know what EPA proposes for final discharge permit con-

ditions, or whether EPA will impose the study require-

ments and other conditions itemized in the Governor's

June 1, 1990 comments.

Because the State’s objection is based upon Mobil’s

failure to provide necessary data and information, the only

alternative available is for Mobil to provide the informa-

tion needs identified. Should Mobil subsequently provide

the required information, the State will then be in a posi-

tion to review the proposed activity to determine whether

it may be conducted in a manner consistent with North

Carolina’s Coastal Management Program.

This letter serves as our formal notice that we have

found the proposed activity inconsistent with the North

111

Carolina Coastal Management Program. A copy will be

sent to EPA Region IV as notification that pursuant to

Section 307 of the Federal Coastal Zone Management Act

of 1972, NPDES Permit Number NC0052523 cannot be

issued. This letter also serves as notice to Mobil that our

finding may be appealed to the Secretary, U.S. Depart-

ment of Commerce, Washington, DC. The appeal must

be filed within 30 days of receipt of this letter and must

specifically address the applicant's belief that either (1)

the activity is consistent with the objectives or purposes

of the Federal Coastal Zone Management Act, or (2) the

activity is necessary in the interest of national security.

Should you have questions regarding our finding or the

appeal procedure, please contact me at (919)733-2293.

Sincerely,

/s/ Original signed by:

RoGer N. SCHECTER

Attachments

cc: Governor James G. Martin

Secretary William W. Cobey, Jr.

Secretary James S. Lofton

NC Outer Continental Shelf Office

NC Department of Justice

NC Division of Coastal Management,

Morehead Field Office

NC Division of Coastal Management,

Elizabeth City Field Office

NC Division of Environmental Management

NC Division of Marine Fisheries

NC Wildlife Resources Commission

NC Division of Parks and Recreation

112

Mr. Ray Cunningham

Water Management Division

EPA Region IV

346 Courtland Street

Atlanta, GA 30365

Mr. Timothy R.E. Keeney

U.S. Department of Commerce, OCRM

Washington, DC 20235

113

(DOI Logo]

THE SECRETARY OF THE INTERIOR

Washington

August 1, 1990

Honorable Ralph-Regula

House of Representatives

Washington, D.C. 20515

Dear Ralph,

The House Rules Committee will soon consider a rule for

House consideration of the Conference Report to accom-

pany H.R. 1465, the Oil Pollution Liability and Compen-

sation Act of 1990.

I am informed an amendment (Sec. 6003), proposed by

Representative Walter B. Jones of North Carolina, was

added during the conference which would effectively delay

any exploratory activity off the coast of North Carolina

until late 1991. The Administration strongly opposes the

inclusion of this amendment on the oil spill legislation

since it is a de facto moratorium on any exploratory

activity in this area, without regard to the relatively be-

nign environmental effects of that activity.

The President has announced his comprehensive policy

regarding Outer Continental Shelf (OCS) development

and has placed a number of areas of the OCS off limits

to further leasing, exploration, and development until the

next century. The President’s decision will restructure the

OCS program by more carefully targeting areas with truly

promising resource potential, obtaining information ade-

quate to ensure that oil and gas development proceeds in

an environmentally sound manner, and being sensitive to

the concerns and needs of local areas affected by offshore

114

development. The Administration’s actions are definitive

efforts to resolve the near- and mid-ierm issues associated

with offshore leasing. This amendment undermines this

effort.

The Administration opposes the imposition of any addi-

tional legislative moratoria regardless of the legislative

vehicle. I understand the amendment was not considered

by the House or the Senate during debate on the oil spill

legislation. The amendment is clearly outside the scope

of the conference, and it should be deleted from the con-

ference report.

I believe a rule should be granted which would allow for

the removal of this amendment during consideration of

the conference report by the House of Representatives.

Sincerely,

/s/ Manuel Lujan Jr.

Celebrating the United States Constitution

115

EXPLORATION PLAN

ATLANTIC: OFFSHORE NORTH CAROLINA

MANTEO AREA BLOCK 467

OCS-A 0236

LESSEE/OPERATOR

MOBIL OIL EXPLORATION & PRODUCING

SOUTHEAST INC. (MOEPSI)

20 Aucust 1990

VOLUME | oF 3

EXPLORATION PLAN

EXECUTIVE SUMMARY

INTRODUCTION

In 1981, the Minerals Management Service (MMS) of

the U. S. Department of the Interior conducted a Mid-

Atlantic Region lease sale off the coast of the Carolinas.

In this sale, Mobil and its partners bid on and successfully

acquired 5 tracts for a total lease-bonus of $234.8 million.

Four of these five blocks were situated about 45 miles

northeast of Cape Hatteras, North Carolina, and included

Block 467, which received the highest bonus bid of the

sale, $103.8 million.

In the fall of 1988, Mobil and partners informed the

MMS and the State of North Carolina of their intent to

drill a single exploratory well in Block 467. Considerable

discussion ensued regarding regulatory procedures and en-

vironmental concerns. In lieu of requests by North Caro-

lina for an unprecedented exploration stage Environmen-

tal Impact Statement (EIS), the State, MMS, and Mobil,

in July 1989, entered into a Memorandum of Understand-

116

ing (MOU) which provided that the MMS would prepare

an environmental report outlining potential impacts at

both the exploration and »roduction stages. Mobil and

its partners also agreed t. ibmit in advance a Draft Ex-

ploration Plan (EP), and the State agreed to conduct

public hearings on this Draft Plan and to shorten the

consistency review period for the Final EP.

On 1 September 1989, Mobil submitted its Draft EP to

the MMS. Copies of the Draft EP were also provided

to North Carolina state officials who placed copies in nu-

merous public locations, so that citizens of North Caro-

lina would have the opportunity to review and offer com-

ments to Mobil on the proposed plan. After nearly a year

of public review and comments and subsequent plan revi-

sion, Mobil, in accordance with Federal law and the spe-

cial MOU, is now submitting the Final EP.

This document is organized in accordance with the format

specified by federal regulations. The Final EP includes

additional information made available since the submis-

sion of the original Draft EP Plan and effectively responds

to various state and public concerns through expanded

discussion and/or clarification of material presented in

the Draft EP Plan. This executive summary is a con-

densed discussion of the EP’s key components in layman's

language.

PROJECT DESCRIPTION

Mobil proposes to drill a single exploratory well for natu-

ral gas at a site in Block 467 about 45 miles northeast

of Cape Hatteras, North Carolina. The selection of this

site is based on years of geological, geophysical, and en-

vironmental investigation, including efforts during the past

18 months on which Mobil and partners have spent more

than $7 million. This well, which is planned to a total

117

depth of 14,000 feet, will be drilled by a state-of-the-art

equipped drilling vessel, and will require about 3-4 months

to complete. The wellsite, situated on the continental

slope, is in 2,690 feet of water. The cost to complete this

single well is estimated to be about $25 million.

pated traffic. Marine vessel support will include two

vessels (215-ft), one crew boat (125-ft), one utility vied

( 120-ft), and one spill-response vessel (180-ft). The

spill-response vessel will be stationed round-the-

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