Waste Management Procedures

Produced Water

Before you begin

Description Water brought up from the hydrocarbon-bearing strata during the extraction process. This may include formation water, injected water, and additive chemicals.

Category E&P exempt wastewater

Analysis To dispose of at a state permitted facility, no tesingt is needed

To discharge produced water subject to the water discharge permit, the following tests are required:  Monthly – Oil and Grease - Cannot exceed 29 mg/l, or must increase sampling frequency.  Daily – Oil and Grease - Cannot exceed 42 mg/l,  Monthly – Toxicity Testing. Frequency may be reduced to annual testing if site passes for one year, or if daily discharge rate decreases below a set threshold.

Accumulation  Produced water that passes all the tests listed above may be discharged  Produced water may be injected for enhanced oil recovery without testing  Produced water that cannot be treated to pass the tests must be tanked in cargo tanks and sent to a disposal facility

Waste  Carefully planned well completions Red  Optimize production rate to minimize the influx of water uctio  Reinject for enhanced recovery n

Continued on next page

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Produced Water

Before you begin, (continued)

Disposal  May be disposed of through the produced water discharge under the NPDES Permit  It also may be disposed of at a state permitted E&P waste facility

Recordkeeping  Complete entry in General Cargo Section [Section II] of the Fieldwood Energy Shipping Manifest prior to transportation  Complete Parts I and II of E&P Waste Shipping Control Ticket, UIC-28, at offshore facility and Part III at commercial facility for exempt waste.  Maintain records of estimated monthly flow rate and analytical test results for discharged water.  Maintain a copy of Manifests at offshore and shorebase facilities while shipping papers are still active.  Send original manifest with shipment  Retain records for three years

Shipping Instructions: Produced Water

1. Call or FAX Dock/Base to schedule shipment

2. Package Fluid as follows: a. Non-Bulk Packaging: 1. Drum 1A1 or 1A2, 2. DOT Salvage Drum b. Bulk Packaging: 1. Marine Portable Tanks 2. Cutting Boxes

3. Markings: a. Stencil Container-“Fieldwood Energy” and the generator's location (i.e. Eugene Island 158)

4. Label Package: a. No labels required by DOT

5. Prepare shipping papers: a. Prepare Non-hazardous Oilfield Waste Shipping Control Ticket Form UIC-28 in Louisiana (See Example). DO NOT SIGN THIS CONTROL TICKET. It is required to be signed in the presence of the truck driver. Dock personnel must sign. c. Complete entry in General Cargo Section [Section II] of the Fieldwood Energy Shipping Manifest. (See example) d. For shipments to shorebases in Alabama, Prepare State Oil and Gas Board of Alabama Waste Liquids Manifest. e. For shipments to shorebases in Texas, or Mississippi, no state documents are required.

6. Placard Vehicle/Vessel: a. No placard required

7. Load cargo in accordance with the following shipping limitations:

AIR RESTRICTIONS (49 CFR 172.101)

Passenger Aircraft No Restrictions

Cargo Aircraft No Restrictions

WATER RESTRICTIONS (49 CFR 172.101)

Cargo and passenger vessels No Restrictions

Other Requirements None

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NONHAZARDOUS OILFIELD WASTE SHIPPING CONTROL TICKET

STATE OF LOUISIANA OFFICE OF CONSERVATION Manifest No. 1567899 UIC - 28 P.O. BOX 94275 BATON ROUGE, LA 70804-9275 CONSERVATION COPY 1726545 ORIGINAL 1 END PART I TO BE COMPLETED BY GENERATOR CODES F151 ↔ Generator Fieldwood Energy LLC Address 2014 W. Pinhook Road, Suite 800 (337) 735-8210 City/State/Zip Lafayette, LA, 70510 Telephone No. ORIGINATION OF WASTE (see instructions on back) 999997 ↔ Well Name & No. / Description OCS-G-1220 5 ↔ LUW Type Field Eugene Island 175

WASTE IDENTIFICATION AND AMOUNT (IN 42 GALLON BARRELS)

01 Salt Water 30 07 Prod. Sands/Solids 13 BS &W Waste 02 Oil Base Mud 08 Fresh Water 14 Pipeline Test Water 03 Water Base Mud 09 Rainwater 15 Com. Facility Waste 04 Completion Fluids 10 Washout Water 16 Oil Spill Waste 05 Prod. Pit Sludges 11 Washout Pit Water 50 Salvage Crude Oil 06 Prod Tank Sludges 12 Gas Plant Waste 99 Other

SITE CODE DESTINATION OF WASTE Commercial Facility (Company) Name US Liquids 5101 ↔ Site Name Batemen Island 1200 Young’s Road Morgan City, La. 70380 (985) 384-0550 NOTE: MUST BE SIGNED IN THE PRESENCE OF THE TRANSPORTER! CERTIFICATION: The waste described above was consigned to the carrier named below. I certify that the foregoing is true and correct to the best of my am knowledge pm Signature of Generator’s Authorized Agent Date and Time of Shipment

PART II: TO BE COMPLETED BY TRANSPORTER IN PRESENCE OF GENERATOR PSC PERMIT

9997 ↔ Transporter Graham Gulf, Inc. (985) 385-3475 Address P.O. Box 2291 Telephone No. City/State/Zip Morgan City, LA, 70380 Truck License No.

Trailer License No. If transported by barge, barge and tug identification Barge and Tug Id. CERTIFICATION: I certify that the waste in quantity above was received by me for shipment to the above destination. am pm Signature of Transporter’s Authorized Agent Date and Time Received PART III TO BE COMPLETED BY COMMERICAL FACILITY SITE CODE Facility (Company) Name US Liquids- 5101 ↔ Site Name Batemen Island 1200 Young’s Road Morgan City, La. 70380

CHEMICAL ANALYSIS Chloride (mg/l) Conductivity (mmhos/cm) pH

CERTIFICATION: I certify that the waste described in Part I was received by me via the transporter described in Part II

Signature of Facility Agent Date and Time Received

FORM OGB-26STATE OIL AND GAS BOARD OF ALABAMA 420 Hackberry Lane P. O. Box 869999 To be filled in by Operator 5 / 00 Tuscaloosa, Alabama 35486-6999 (205) 349-2852 Fax (205) 349-2861 FWE-2013 OCSG 5058 #00 1 www.ogb.state.al.us Operator Code Manifest Number WASTES MANIFEST

PART I: TO BE COMPLETED BY THE OPERATOR Operator Name: Fieldwood Energy LLC (Mobile 821) Address: 7778 Dauphin Island Parkway, Theodore, AL 36582 (251) 449-7244 Origination of Waste Liquids Operator Name: FWE-2013 (337) 735-8220 Operator Type NATURAL GAS Field MOBILE 821 FIELD County FEDERAL WATERS Description of Waste PRODUCED WATER, CONDENSATE AND SLOP OIL Quantity of Waste 30 BARRELS Destination: Disposer’s Name US Liquids Business Address Disposal Site Address Batemen Island 1200 Young’s Road Morgan City, La. 70380 Disposal Method SEPARATION AND DEWATERING Certification: The waste described above was consigned to the carrier named below. I certify that the foregoing is true and correct to the best of my knowledge Sam Bourque 07 / 01 / 11 2:30 p.m. Signature of Operator’s Agent Date and Time Shipped

PART II: TO BE COMPLETED BY TRANSPORTER(Note: To be completed in presence of Operator) Transporter’s Name Gulf Glory Code No. ALR000011247 Business Address Graham Gulf Inc. P.O.Box 309, Bayou La Batre, AL 36509 (251) 824-1834 License Plate of Truck License of Trailer If Transported by Barge, Barge and Tug Identification Certification: I certify that the waste in the quantity above was received by me for shipment to the above destination Bill Jones 07 / 01 / 00 2:30 p.m. Signature of Transporter’s Agent Date and Time Received

PART III: TO BE COMPLETED BY DISPOSER Disposer’s Name US Liquids Disposal Site Address Batemen Island 1200 Young’s Road Morgan City, La. 70380 Certification: I certify that the waste in the quantity and description above was received by me for proper disposal.

Dennis Smith 06/1/2011 1:30 p.m. Signature of Disposer’s Agent Date and Time Received

INSTRUCTIONS Read Carefully and Comply Fully 1. Every shipment of waste liquids shall be accompanied by this form. 2. At the time of transport, the operator shall initiate the manifest by completing and signing Part I. The operator shall assign a sequential manifest number in the upper right corner. The number should be preceded by the operator code number provided by the State Oil and Gas Board. 3. The transporter shall complete and sign Part II. 4. The operator shall copy form and mail to the Board within ten (10) days. 5. The original shall accompany the wastes shipment. 6. Upon receipt of the wastes, the disposer shall complete and sign Part III. 7. The transporter shall retain a copy. 8. The disposer shall retain a copy and mail a copy to the operator and the original to the Board within ten (10) days.

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