SPECIAL OPERATING PRECAUTIONS 1 Helicopter Operations

Provide accurate cargo and weight manifests for all helicopter transportation.

GENERAL OPERATIONS

DRILLING OPERATIONS MANUAL - JACK-UP/PLATFORM/BARGE RIG DRILLING 14 of 15 First Edition - May, 2003

Lower and secure all crane booms before helicopter landing/departure. (Crane operator must step out of the crane cab until the pilot has stopped the rotation of the rotor blades.)

Make public announcement of helicopter landing/departure.

Provide safety orientation/ditching instructions for passengers.

Establish flight tracking procedures.

Helideck fire fighting system shall be manned during refuelling.

Rapid/hot refuelling is not authorized. See Safety Manual for exceptions.

2.7.2 Mooring Vessel Operations

Use a "Clear Deck of Personnel" policy on work boat when work wire is under tension.

2.7.3 Casing Pressure Monitoring

Casing annulus pressures shall be monitored weekly at all rigs with surface wellheads. If casing pressure is detected, it shall be reported on the Daily Drilling Report. The situation shall be reviewed with the Operations Superintendent to determine if any corrective actions, are warranted, e.g. bleed off, increased monitoring, etc.

2.7.4 Back Pressure Valves

Whenever a back pressure valve (BPV) is to be removed from a tubing hanger, a lubricator shall be installed and anchored. Prior to retrieving the plug, confirmation of pressure equalization shall be made, if possible. If working on a well with H2S gas, all workers in the area shall mask up while retrieving the plug.

2.7.5 Rotary Table Insert Bushing Locks

Rotary table insert bushings shall be kept locked at all times (or removed) except when procedures specifically require them to be temporarily unlocked. A means of visually determining locked status shall be provided.

2.7.6 Christmas Tree Equipment

Have an OEM (Original Equipment Manufacturer) service representative on location during installation and pressure testing of all christmas tree equipment.

All wellhead and christmas tree equipment has the potential to trap unexpectedly deadly pressure between seals, in gate valve cavities, under pipe plugs, lockdown screws, grease fittings and in small porting which has become plugged. Some models of gate valves are especially prone to trapping pressure in the gate valve cavities. Trapped pressure most commonly occurs in the split gate style valves and especially the WKM models. Any valve that has service fittings, which access the valve body, should have a permanent warning sign stating "WARNING: This valve has the potential to internally trap pressure!"

GENERAL OPERATIONS

DRILLING OPERATIONS MANUAL - JACK-UP/PLATFORM/BARGE RIG DRILLING 15 of 15 First Edition - May, 2003

2.7.7 Mud Logging Units

Where mud logging units have hydrogen gas feeding the Flame Ionization Detector (FID) post warning signs indicating the flammable/explosive characteristics of this gas. Inspect the hose (typically Polyflow) every 2-3 months, and replace if it has been pinched, is brittle, or is discolored from normal clear or white color.

Responsibility: Operations Supervisor

Approval Authority for exceptions: Operations Superintendent.

GENERAL INFORMATION

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First Edition - May, 2003

SECTION 2 - APPENDIX G-I

EMDC-DO RISK ASSESSMENT FORM REVISED 06/23/99 (EDO_RAF.DOC)

ROUTING & APPROVAL

GENERAL APPROVED DATE

WELL: FIELD: ENGR.

SUPV.

ENGR.

DEPTH: RIG: COUNTY: STATE: ^OPER. SUPT.

DRLG. ENGR.

q P&A q COMPLETION ^SECRETARY(COPY /DISTR.)

CATEGORY ASSESSMENT - KEY WELL CHARACTERISTICS CATEGORY 1+

q OFFSHORE DRILLING OPERATIONS CATEGORY II

FROM PLATFORM OR MODU

q REQUIRES AN ABNORMAL PRESSURE DETECTION

q LIVE/HORIZONTAL DRILLING TEAM TO DETERMINE TD

q EXTREMELY SENSITIVE ENVIRONMENT q SUSPECTED SHALLOW GAS OR CHARGED SANDS ABOVE THE SURFACE CASING SETTING DEPTH q 250 ppm ROE OF H2S THAT INCLUDES

OCCUPIED STRUCTURES, HEAVILY TRAVELED q MAY ENCOUNTER SEVERE LOST RETURNS, SLOUGHING ROAD, RAILROAD, BUSY WATERWAY OR AIRPORT SHALE, OR OTHER SEVERE HOLE PROBLEMS RESULTING

IN RELATIVELY HIGH COST

CATEGORY 1 q WELL IS LOCATED WITHIN 500' OF AN OCCUPIED RESIDENCE, LAKE, STREAM OR HEAVILY TRAVELED q REQUIRES AN ON-SITE PRESSURE DETECTION ROAD, RAILROAD, AIRPORT OR PLANT/TREATING

TEAM FOR SETTING PROTECTIVE CASING INTO FACILITY

ABNORMAL PRESSURE TRANSITION ZONE

q OVERBALANCED / HORIZONTAL DRILLING q REQUIRES > 13 PPG MUD TO DRILL FORMATIONS

SUSPECTED OF CONTAINING HYDROCARBONS q 250 ppm ROE OR H2S THAT IS LESS THAN 300 FEET q EXTREMELY REMOTE SITE THAT IS A CONSIDERABLE q EXCEPTION FOR OFFSITE AND/OR MULTIPLE

DISTANCE FROM SERVICE COMPANIES THAT WOULD RIG SUPERVISION REQUESTED BE REQUIRED DURING WELL CONTROL PROBLEMS

q WELL IS CAPABLE OF FLOWING HYDROCARBONS AND IS LOCATED WITHIN 2000' OF A DENSELY POPULATED AREA OR HEAVILY TRAVELED ROAD,

RAILROAD, WATERWAY, OR AIRPORT CATEGORY III

q AREA OF ANTICIPATED LOST RETURNS AND KNOWN q LOW RISK, FIELD DEVELOPMENT WELL WITH SHALLOW GAS SANDS CAPABLE OF FLOWING TO GOOD OFFSET DATA, MINIMAL PUBLIC AND SURFACE PRIOR TO SETTIN G SURFACE CASING ENVIRONMENTAL EXPOSURE, MODERATE COSTS,

AND NORMAL MUD WEIGHTS q 250 ppm ROE OF H2S THAT EXTENDS OUT GREATER

THAN 300 FEET OIMS RISK ASSESSMENT:

REQUIRED ON ALL 1+ WELLS AND ANY WELL WITH A BOLD ITALIC KEY WELL CHARACTERISTIC

OIMS RISK ASSESSMENT REQUIRED? q YES q NO OIMS DRILLING MANAGEMENT REVIEW MEETING HELD?

BASE CASE RISK ASSESSMENT REVIEWED? q YES q NO q YES q NO DATE HELD:

(IF YES, ATTACH OIMS RISK ASSESSMENT REPORT) MEETING ATTENDEES:

ADDITIONAL FAILURE EVENT SCENARIOS IDENTIFIED q YES q NO (IF YES, INCLUDE SCENARIOS IN REPORT) NUMBER OF ADDITIONAL SCENARIOS:

NAMES OF PERSON(S) INVOLVED IN BASE CASE REVIEW AND ADDITIONAL SCENARIO ASSESSMENTS :

LIST OF CONTINGENY PLANS REQUIRED:

SIMOP’S MEETING HELD?

q YES q NO q NA DATE HELD:

OTHER CONSIDERATIONS

TYPE WELL (CHECK ALL THAT APPLY) MAX ANTICIPATED SITP HYDROCARBON ZONES WILL FLOW IF q YES

q OIL q GAS q INJECTOR q CONDENSATE INSUFFICIENT HYDROSTATIC HEAD q NO

SHALLOWEST GAS OR OIL @: ppm H2S: 250 ppm ROE: HOUSE WITHIN 500': DRILL STEM TEST:

q YES q NO q YES q NO ANTICIPATED WATER BOARD RULING / EXCEPTION REQUIRED / APPLIED FOR: DIRECTIONAL PLAN: q STRAIGHT

q YES q NO q YES q NO q N/A q DIRECTIONAL:

MUD TYPE (CHECK ALL THAT APPLY) MAX MW LINE RESERVE PIT

q FW MUD q SW MUD q OIL (q ESCAID q DIESEL) q BRINE WTR q ________ q YES q NO q N/A ADDITIONAL INFORMATION (IF REQUIRED)

ATTACHMENTS

q WELL PLAN / POWER PT. DIAGRAM q BOPE & EXCEPTION(S) FORM* q DAYS/DEPTH CURVE

q MAP OF OFFSET WELLS q BOPE SKETCHES q RIG POSITION ON LOCATION

q DIRECTIONAL WELL PLATS q WELLBORE & WELLHEAD SKETCHES q FORM. TOPS/PRESSURES/CONTENT q SUMMARY OF DRILLING HAZARDS q OFFSET WELL PRESSURE CHECKLIST q GEOL. X SECTION & STICK CHARTS q MAP OF GENERAL WELL LOCATION q CIVIL ENGR. DRILL SITE REPORT q OIMS RISK ASSESSMENT REPORT

* REQUIRED FOR ALL WELLS. ORIGINAL: WELL FILE XC: OP. SUPT., DRLG. ENGR. & RIG SUPT.(s) OIMS RISK ASSESSMENT REPORT - XC: SYSTEM 2 CUSTODIAN.

XC: R.N. Mefford, C.W. Sandlin

DRILLING OPERATIONS MANUAL- JACK-UP/PLATRFORM/BARGE RIG DRILLING 1 of 9 First Edition - May, 2003

SECTION 2 - APPENDIX G-II

MEMORANDUM

EMDC DRILLING ORGANIZATION

TO: Clyde J. Baldwin

FROM: Grand Isle 16 OCSG 031 R-22 ST#1 "Sandberg" Drilling Team DATE: February 17, 2000

SUBJ: OIMS Risk Assessment for GI 16 OCSG 031 R-22 ST#1 "Sandberg" Drillwell

Consistent with Operations Integrity Management, the drilling team has completed a “Risk Assessment” for the upcoming GI 16 OCSG 031 R-22 ST#1 "Sandberg" drillwell. Enclosed please find the scenario worksheets for the four incidents identified as potential hazards by the team. Please note that these four scenarios addressed in the attached worksheets are unique to this location and are not covered by the existing EMDC Base Case Risk Assessment. The EMDC Base Case Failure Event Scenario List is included for your reference.

If you should have any questions regarding this assessment, please do not hesitate to contact any member of the team for clarification.

xc: H. J. Longwell, III

Ensco 99 Drilling Superintendents Element 2 Risk Assessment Custodian

DRILLING OPERATIONS MANUAL- JACK-UP/PLATRFORM/BARGE RIG DRILLING 2 of 9 First Edition - May, 2003