POO PNRA Nuna Exploration Program 20110919 (1)

PIONEER NATURAL RESOURCES ALASKA

Pioneer Natural Resources Alaska, Inc. 700 G Street, Suite 700 Anchorage, Alaska 99501

2011-12 North Slope Exploration Program North Slope, Alaska

Plan of Operations

August 2011

Submitted to:

State of Alaska Department of Natural Resources Division of Oil and Gas

2011-12 North Slope Exploration Program P' " of Operations

Table of Contents Page 1 Introduction and Project Description 1 2 Lease Description 1 3 Schedule 1 4 Ddllsite Access 2 5 Wellsite and Locations 3 6 Water Requirements and Sources 3 7 Drillings Fracturing, and Testing 4

7.1 Non-Drilling Wastes 4 7.2 Disposal of Drilling Wastes 5 7.3 Produced Fluids 5

8 Air Emission 6 9 Ancillary Facilities 6 10 Historic, Archaeological, and Cultural Resources 6 11 Well Abandonment and Site Closure 6 12 Contingency Plans 7

12.1 Oil Discharge Prevention and Contingency Plan 7 12.2 SpiU Prevention Control and Countermeasures Plans 7 12.3 Other Plans 7

13 Wildlife 7 13.1 Interaction Plans 7 13.2 Fish Habitat 8 13-3 Wildlife Habitat 8

14 Contact List 9 15 training 9 16 public Involvement 10 17 Native and Local Hire Policy 10 18 Potential Permits and Authorizations List 10

List of Figures Figure 1 Project Location Map Figure 2 Typical Onshore and Sea Ice Pads and Ice Road Cross Sections Figure 3 Typical Drilling Operation Layout Figure 4 Typical Well Test Operation Layout

Appendix A North Slope Exploration Project - Lease Mitigation Measures

Pioneer Natural Resources Alaska, Inc. Page il August 2011

2011-12 North Slope Exploration Program Plan of Operations

1 Introduction and Project Description

Pioneer Natural Resources Alaska, Inc. (Pioneer) is proposing to drill and test two exploration wells from ice pads on State of Alaska oil and gas leases during the 2011-2012 winter season (Figure 1, Project Location Map). These wellsites are located near the eastern edge of the Colville River delta on the south side of Harrison Bay. One well (Nuna No. 1) will be drilled at the proposed onshore Nuna Drillsite 1 (NDSl) location which is located 2.5 mile northwest of Kuparuk River Unit (KRU) drillsite 3-S (DS-3S). This well will be preserved as a development well as part of the Nima project (Nuna). The other well (Sikumi No.l) will be drilled approximately 2 miles west of the Oooguruk Drillsite (ODS), immediately offshore of the Colville River, and plugged and abandoned after completion of activities.

The wellsites will be approximately 600 ft by 600 ft (8 acres), providing room for the drilling rig and camp, a temporary services camp, materials storage, and related activities. A 5-acre ice pad will be constructed adjacent and east of DS-3S which will be used for storage of materials and equipment.

After completion of drilling each well, a geophysical survey (checkshot survey) will be performed. At Nuna #1, the checkshot survey will require a packed snow road northwest of the pad for the vibrator truck.

Hydraulic fracture stimulation and flow testing is planned for each well. Produced fluids will be transported to production facilities. After completion of drilling and testing, all equipment will be removed from the pads and tt\e well sites will be cleaned.

2 Lease Description

The Exploration program surface activities will be located on Alaska Oil and Gas leases ADL 355037 and 25528. 2010 North Slope Areawide Mitigation Measures apply to this project. An analysis of the mitigation measure compliance is included as Appendix A.

3 Schedule

Ice road and ice pad construction will begin as soon as the necessary permits/approvals are available and weather conditions allow. Pioneer will begin pre-packing snow on the tundra portions of the ice road, staging pad, and Nuna No. 1 wellsite using state approved all terrain vehicles as early as November. Thermistors will be installed at the Nuna No. 1 wellsite and along the ice road route to monitor soil temperatures to support early access of the tundra. Drilling will begin in early January for the Nuna No. 1 and in mid February 2012 for tiie Sikumi No. 1 well.

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Well fracturing and testing will be performed at both well locations. Current plans are to plug and abandon the Sikumi No.l well and suspend the Nuna No. 1 well until final plans are made for development.

Activity

Permit Review and Approvals

Ice Road and Pad Construction

DriU Nuna No, 1 Well

Drill Sikumi No.l Well

Fracture Stimulation Operations

Testing Operations

Plug & Abandon Sikumi No. 1 Well

Suspend Nuna No. 1 Well

Demobilizatiori of Rig and Equipment

Cleanup Ice Pads

Schedule

Fall 2011

November 20n-January 2012

January 2012

February 2012

January- Mid April 2012

March- AprU 2012

AprU- May 2012

April 2012

Late April-Early May 2012

Late April-Early May 2012

4 Drillsite Access

Access routes to the Nuna No. 1 wellsite will be via ice roads coimecting to the existing gravel KRU road system at DS-3S. Access to the Sikumi No. 1 wellsite will be via an extension of the annual Oooguruk ice road route from the Oooguruk Tie-in Pad (OTP) to the Oooguruk Drillsite (ODS) and a connection to the Nuna No. 1 ice road. Figure 1 shows the proposed ice road routes.

Ice roads are expected to be 55 ft wide. Typical onshore and sea ice pads and ice road cross sections are shown on Figure 2. 5-acre ice pads will be constructed adjacent and east of DS-3S and southwest of DS-3H, which will be used for storage of materials and equipment.

Using permitted freshwater sources and existing packed snow as the road base, the road and wellsites will be built up until sufficient strength and thickness are obtained to support project equipment loads. Ice chips may be used as needed if weather or construction conditions warrant their use (See Figure 1 for location of potential water sources). Rig mats or similar material may be used on or in the construction of ice roads at selected locations as required by field conditions. Such equipment will be removed prior to the end of the operating season. Ice roads and ice pads may be scarified with equipment to reduce slickness for safety purposes. Approximately 18 miles of ice roads will be constructed.

Access to the existing operating fields via the Dalton Highway is controlled at existing security checkpoints. BP Security will stop any general public visitor from accessing Pioneer's location at the Prudhoe Bay/Deadhorse Security access point unless granted by Pioneer. The wellsites

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will be closed to ti\e general public for purposes of safety. Exceptions may include aid in the event of an emergency situation.

5 Wellsite and Locations

Each wellsite will be constructed of ice and be approximately 8 acres. See Figures 4 and 5 for typical wellsite layouts for drilling and fracturing and well testing operations.

The exploration drilling locations are:

Nuna No. 1 Umiat T12N, R7E, Sec 2 ADL 25528

Sikumi No. 1 Umiat, T13H R7E, Sec 16 ADL 355037

6 Water Requirements and Sources

This section describes water requirements for construction and operations at each wellsite and the connecting ice roads. Permitted sources along the ice road system would be used as water and ice Aggregate sources for ice road and ice pad construction under existing temporary water use permits.

All ice roads and wellsites will be built using a combination of existing snow along the route, freshwater pumped from lakes along the ice roads, and freshwater ice chips off lakes along the ice roads. The offshore ice roads and pads will be thickened by successive flooding and freezing of seawater prior to application of a fresh water cap. Offshore roads could use a combination of water from onshore sources or from discharge channels of the Colville River. Fresh water is also needed for ice road and pad maintenance, drilling operations, and camp use.

Approximately 78 million gallons of water will be required to support ice road and pad construction. An additional 1,000,000 gallons of water will be required to support drilling operations and the camps will need about 1,000,000 gallons of fresh water. A maximum of approximately 80 million gallons (246 acre ft) of water will be required to support the project with approximately 150 days of drilling operations including ice road and pad construction and maintenance.

The drilling rig camp is equipped to convert freshwater from lakes to potable water for camp use. The camp is permitted as a certified public water system with the Alaska Department of Environmental Conservation (ADEC), which is maintained by the camp contractor.

The temporary service camp will have a water storage system to hold fresh water provided from a commercial source in Kuparuk or Prudhoe Bay.

Pioneer will consult with the Alaska Department of Natural Resources (ADNR) water division and the Alaska Department of Fish & Game (ADF&G) regarding using Colville River water or Pioneer Natural Resources Alaska, Inc. Page 3

August 2011


ice to support ice road and ice pad construction and maintenance and secure any needed permits.

7 Drilling, Fracturing, and Testing

The Nuna No. 1 well will use extended reach drilling to access the reservoir from the proposed location of Nuna Drillsite 1 (NDSl). The Sikumi No. 1 well be a more typical vertical well bore design be similar to previous North Slope exploration wells. The actual well bore design is part of the Drilling Permit issued by the Alaska Oil and Gas Conservation Commission (AOGCC). Due to the exploratory nature of the well, nearly all information regarding the downhole aspects of the well is confidential.

After completion of drilling each well, a geophysical survey (checkshot survey) will be performed. The survey, consisting of borehole seismic measurements, will be used to calibrate existing seismic date and enable Pioneer to construct more accurate depth maps to the reservoir for future drilling. Measurements will be made in the pilot wellbore using geophones inside the wellbore and an energy source (vibrator) on the surface. The geophone is lowered in the well via wireline similar to any other geophysical log. The vibrator unit is based on a rolligon vehicle. Because the Nuna well is a high-departure well, this source will be used at discrete positions along the surface trace of the borehole, up to % mile into the Colville River Delta. The vibrator will be located on or near the ice pad for the Sikumi No. 1 well.

Prior to flow testing, each well may be fracture-stimulated. The frac equipment will include: chemical storage for liquid and dry materials (Frac Cat); blender; frac pumps; frac tanks for seawater; fluids and gel mixers; manifold; hot oiler; diesel truck, boom truck; sand silos; and sand transport and conveyor systems.

Chemicals staged on the ice pads prior to injection will include: proppant (sand); crosslinker; slurry gel; scale inhibitor; seawater, diesel truck, surfactant; breakers; microbiocide; and 5% caustic soda. These materials will remain on the ice only as long as operationally necessary. The frac tanks and blender will be placed in secondary contairunent. The containment will be constructed of a herculite liner, timbers and/or ice berms. Spill contairunent (duck ponds) will be placed beneath tiie trucks.

Production tests will be performed as needed after production casing is set. It is plaimed for tills activity to occur once the drilling rig has moved on to its next location. Testing may include extended flow periods to determine the productivity of the well.

7.1 Non-Drilling Wastes

Solid, non-bumable waste, including scrap metal, banding material, eto., will be deposited in large containers located at each site as needed for each waste classification. These containers will be hauled appropriately to the North Slope Borough (NSB) landfill at Prudhoe Bay. Food waste will eitlier be stored in a wildlife resistance containers awaiting periodic hauling or such



wastes will be hauled each day to an approved waste treatment center (KRU, for example), where it will be incinerated and the ash taken to the NSB landfill.

The drilling camp will be equipped with a comprehensive sewage treatment plant. All camp wastewater would be treated to sufficientiy meet the discharge requirements of the Alaska Pollution Discharge Elimination System General Permit maintained by the camp contractor. The treated effluent will be discharged to frozen tundra or ice, monitored and reported by the camp contractor or hauled offsite for disposal to a permitted faciUty.

The temporary services camp will have a wastewater storage system and wastewater will be hauled and disposed of at a permitted facility.

7.2 Disposal of Drilling Wastes

Drilling fluids, a combination of fresh water, seawater or synethic oil-based, will be used to maintain desired drilling fluid properties and density. Excess drilling mud that can not be reused will be transported to an approved Class I or II injection well at ODS, Prudhoe Bay, or Kuparuk. An average of 20,000 gallons per day (gpd) of waste liquid from each well may require disposal, although efforts to minimize this amount will be undertaken.

All drill cuttings will be transported to a certified processing and disposal facility at ODS, Prudhoe Bay, or Kuparuk, via vacuum or super sucker truck or diposed in an approved well annulus. Cuttings may be temporarily stored in an ADEC-approved temporary drilling waste storage area. In an emergency situation, cuttings will be contained witiiin cells of the temporary waste storage area.

Upon completion of activities at each wellsite, material collected from the removal of the temporary drilling waste storage areas will be broken up and processed for Class I or II disposal at a certified disposal faciUty, or transported to the NSB landfill at Prudhoe Bay for disposal.

If drilliiig wastes are temporarily stored. Pioneer will apply to the ADEC, Division of Environmental Health for Temporary Storage of Drilling Waste and Solid Waste Treatment Plans approval, as required in 18 AAC 60.430. The drill cuttings storage area would be approximately 50 ft by 100 ft by 4 ft deep. With a working depth of 2 ft, the volume of the storage area will have a capacity of 1,800 barrels. The temporary storage area will be constructed of ice berms and compacted snow. The botton\ of the storage areas will be increased in ice thickness over the base of the pads by approximately 1 ft. The storage area will be trimmed and cleaned up after use.

7.3 Produced Fluids

Produced fluids will pass through an adequately sized test separator system to separate the gas and stored in tanks. After testing, the fluids will be hauled to OTP/ODS, Prudhoe, or Kuparuk and for processing.

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8 Air Emission

Sources of air emissions from the operation are rig engines, camp generator engines, steam generators, engine-driven pumps, hot-air heaters, light plants, and well test flaring equipment. All major equipment will be fired with ultra low-sulfur diesel fuel. Pioneer will be submitting an ADEC Minor General Permit (MGPl) for Drilling Rigs and Associated Equipment (18 AAC 50.390).

9 Ancillary Facilities

While drillingr the drilling camp will house up to 80 people. The temporary services camp will have tile capacity to accommodate up to 30 people. Up to approximately 20,000 gallons of diesel fuel in multiple containers will be stored at each wellsite. Up to 8,000 gallons of synethic base oil for drilling will be stored during drilling operations if needed. Appropriate secondary containment will be in place for the type and size of fuel or base oil container.

Communications antennas and satellite dishes will be portable and attached either directiy to the camp structures or freestanding on the ground.

10 Historic, Archaeological, and Cultural Resources

A cultural resources study for site clearance was conducted to assess any known sites, and to locate currently unknown sites (summer 2011). The study had two components: records review and in-field survey. The records review included the Alaska Heritage Resources Survey (AHRS) database, maintained by the Office of History and Archaeology within ADNR; and the Traditional Land Use Inventory (TLUI) database, maintained by the NSB. No previously-recorded AHRS sites will be affected by any of the proposed exploration activities, since the nearest site is approximately 1/2 mile from any portion of the proposed project.

The field survey used both helicopter support and on-the-ground investigation. A report of these findings will be submitted to the ADNR Office of History and Archeology.

11 Well Abandonment and Site Closure

upon completion of drilling and evaluation operations, any remaining debris will be hauled to an approved disposal site. Any discovered spills or ice/snow contamination occurring on the ice pads or roads will be chipped or scraped back for pick up and either disposed of at a certified disposal facility, or, as toxicity levels allow, hauled to the NSB landfill at Prudhoe Bay. Spill reports will be filed with ADEC and ADNR. Sikumi No. 1 well will be plugged and abandoned. The Nuna No. 1 well will likely be suspended in accordance with Alaska Oil and Gas Conservation Commission (AOGCC) requirements until final plans are made for


2011 -12 North Slope Exploration Program Plan of Operations

development. Following the seasonal thaw in the spring the route and wellsites will be inspected. Any debris wUl be collected and back hauled for disposal.

12 Cont ingency Plans

12.1 Oil Discharge Prevention and Contingency Plan

An approved spill control package and an approved Oil Discharge Prevention and Contingency Plan will he kept on site at all times for use in controlling and cleaning up any accidental discharges of fuel, lubricants, or produced fluids. Information related to immediate response actions, receiving environments, spill cleanup mobilization, response times, and well control c£U\ be found in that plan.

Pioneer is a current member of the Alaska Clean Seas oil spill response cooperative.

12.2 Spill Prevention Control and Countermeasures Plans

The drilling contractor holds a Spill Prevention Countermeasure Control (SPCC) plan for their fuel storage facilities associated with drilling operations. The well testing company holds a SPCC plan for their testing tanks.

12.3 Other Plans

Pioneer maintains a Master Service Agreement with the O'Brien's Group to provide Incident Command System services for both spill response and emergency response situations for the upcoming exploration season.

13 Wildlife

13.1 Interaction Plans

Wildlife that could be in {he area during the winter include: owls, ravens, foxes, and polar bears. Grizzly bears also inhabit the coastal region, but it is unlikely they would still be active during the winter season.

Project personnel will be instructed not to feed wildlife of any type or in any other way attempt to attract them either at die wellsite or on the ice roads. Pioneer and its contractors will exercise caution while establishing the ice road route and watch for bear signs. If a polar bear den is identified, tiie U.S. Fish and Wildlife Service (USF&WS) and ADF&G will be notified and the ice road route altered to avoid any disturbance, if required. Food and food waste will be kept inside buildings or containers that minimize odors. Hazardous materials will be kept in drums or other secure containers. Well pad layouts will be designed to maximize visibility and minimize potential areas that a bear could crawl into or otherwise be hidden from view. Any Pioneer Natural Resources Alaska, Inc. Page 7

August 2011


sightings will be immediately reported to the site supervisor and the persoimel in the area warned of the location of the bear.

A comprehensive Bear Avoidance Encounter/Interaction Plan, filed with the USF&WS and ADF&G provides operational, monitoring and reporting guidance for field operations. Pioneer will contact USF&WS and ADF&G for known identification of known den locations prior to ice road and well pad construction.

Pioneer will consider the use of a local subsistence representative to avoid and minimize interactions with subsistence resources and their use, if appropriate for this area of the North Slope.

13.2 Fish Habitat

Streams witiiin and adjacent to the on-shore project area are tundra drainages that freeze to the bottom by late winter. The shallow lakes and ponds in this area also freeze to the bottom by late winter. As a result, these water bodies are not considered fish overwintering habitats. Development of grounded landfast ice in shallow water (less than 5 ft) is expected to preclude substantial fish occupancy of the immediate project area from mid-winter until breakup.

The Colville River and Delta and adjacent nearshore brackish and marine waters support a variety of fish species with differing life history strategies and salinity tolerances. Subsistence fisheries for arctic cisco, least cisco, and lesser numbers of other species, including broad whitefish, occur in or near the Colville River Delta. A bathymetry survey will be conducted this summer to guide the sea ice route location and minimize potential impacts to fish.

13.3 Wildlife Habitat

The general setting for the project area includes two predominant hydrological systems bordering the Colville River Delta: Harrison Bay and the wetiand tundra of the Arctic Coastal Plain. The area is characterized by Harrison Bay's nearshore marine waters, low relief river delta, meandering stream charmels, and emergent wetiands.

Polar bears are a USF&WS trust species protected by the Marine Mammals Protection Act (MMPA) (16 u s e 1361-1407). In May 2008, the polar bear was hsted as a threatened species under the Endangered Species Act (73 FR 28212) because of continuing declines in arctic sea ice. Polar bears range over sea ice, barrier islands, and terrestrial coasts in winter. Potential denning habitat exists in the Nuna No. 1 wellsite area. Pioneer will conduct a Ground-based Forward Looking Infrared (FLIR) survey to detect potential maternal dens along the Beaufort Sea coastiine within a one mile buffer of proposed ice roads and ice pads.



14 Contact List

pioneer designated representatives will be on site at all times during operations. Twenty-four hour phone service will be available at the drilling camp. The following personnel are designated project contacts:

• Manager - Land, Commercial, and Regulatory Affairs

J. Patrick Foley (907) 343-2110 (office) (907) 830-0999 (cell)

• Drilling Manager

Vem Johnson (907) 343-2111 (office) (907) 575-9430 (cell)

• Permitting Coordinator

John Hellen (907) 343-2102 (office) (907) 575-9955 (cell)

• Environmental, Health, and Safety Manager

Bonnie Smiti\ (907) 343-2174 (office) (907) 230-0272 (cell)

15 Training

pioneer requires that all North Slope contractors complete an 8-hour "unescorted" training program provided by the North Slope Training Cooperative. All trainees receive a Field Environmental Handbook, an Alaska Safety Handbook, and a site specific orientation. The unescorted training includes review of the Alaska Safety Handbook, personal protective equipment, camps and safety orientation, hazard communications, HAZWOPER Level 1, Environmental Excellence, and cultural awareness.

The program includes an explanation of the applicable laws protecting cultural and historic resources, and stresses the importance of not disturbing archeological, cultural and historic resources while providing guidance on how to avoid disturbance.

Federal Occupational Safety and Health Admirustration regulations and guidance provide training standards for individual positions. Training for individual positions vary with the activities performed. Individual training may include an electrical safety program; emergency preparedness and action plans; hazards communication program; HAZWOPER (levels 3-5); lockout/tagout procedures for control of hazardous energy; emergency shut down systems; cranes, chain hose, and sling/rope inspection program; drilling and workover operations; machinery guarding; tank/vessel cleaning procedures; confined space entry program; first aid

pioneer Natural Resources Alaska. Inc. — — page 9 August 2011


material and training; eye and face protection; hearing conservation program; personnel protective equipment; respiratory protection program; safety and environmental meetings.

16 Public Involvement

Pioneer conducted pre-application meetings with the ADNR and ADF&G on June 20, and July 12, 2011. Pioneer initiated consultation with the USF&WS and NSB representatives and provided presentation materials for the winter Exploration Program on July 6 and July 12, 2011. Activities regarding the Exploration Project were discussed with Kuukpik Corporation on June 14, 2011. A public meeting is planned for Nuiqsut in August or September, 2011.

17 Native and Local Hire Policy

Pioneer strives to hire qualified local and Native individuals to support this project. Pioneer is committed to continuing its relationships with local and Native contractors and businesses in the execution of tiiis exploration program.

18 Potential Permits and Authorizations List

The following permits and authorizations have been identified as necessary tiie North Slope Exploration Program:

U.S. Environmental Protection Agency (USEPA): • National Pollution Discharge and Elimination System Discharge General Permit.

U.S. Fish and Wildlife Service (USF&WS): • Marine Mammal Protection Act (MMPA) (Letter of Authorization), (polar bears). • Endangered Species Act (ESA), Section 7 Consultation (polar bears).

ADNR: • Lease/Unit Plan of Operations (DOG). • Temporary Water Use Permit Division of Mining, Lands, and Water (DMLW). • Miscellaneous Land Use Permit (DMLW). • Alaska Heritage Resource Survey (AHRS) and Section 106 Cultural Site Clearance

(ADNR, Office of History and Archeology, State Historic Preservation Office). Alaska Department of Environmental Conservation (ADEC):

• Oil Discharge Prevention Contingency Plan, Division of Spill Prevention and Response. • Oil Spill Financial Responsibility. • Alaska Pollution Discharge Elimination System (APDES) • Air Quality Construction Minor Source General Permit 1 (Division of Air Quality). • Drilling Waste Temporary Storage Plan Approval (Division of Environmental Health).

Alaska Pepartment of Fish & Game (ADF&G): • Tide 16 (Fish Habitat).

Alaska Oil and Gas Conservation Commission (AOGCC): • Permits to Drill.

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• Annular Disposal. NSB:

• Inupiat History, Language & Culture (IHLC) historic, archaeological, and cultural sites including TLUI sites clearance.

• Development Permit.


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SCALE: I 1 1 1 1 0 50 100 200 Feet

FIGURE:

Appendix A North Slope Exploration Project - Lease Mitigation Measures

This table presents mitigation measures contained in the Beaufort Sea Area Wide Oil and Gas Lease Sale 2009 and notes how each measure is addressed by Pioneer Natural Resources Alaska, Inc. for the 2011-2012 North Slope Exploration Project.

Lease Mitigation Measure

1. Facilities and Operations

a. A plan of operations must be submitted and approved before conducting exploration, development or production activities, and must describe the lessee's efforts to minimize impacts on residentiaL commerciaL and recreational areas. Native allotments and subsistence use areas. At the time of application, lessee must submit a copy of the proposed plan of operations to all surface owners whose property will be entered.

b. Facilities must be designed and operated to minimize sight and sound impacts in areas of high residential, commerciaL recreational, and subsistence use and important wildlife habitat. Methods may include providing natural buffers and screening to conceal facilities, sound insulation of facilities, or by using alternative means approved by the Director, in consultation with ADF&G and the NSB.

c. To the extent practicable, the siting of facilities will be prohibited within 500 feet of all fish-bearing streams and waterbodies and 1,500 feet from all current surface drinking water sources. Additionally, to the extent practicable, the siting of facilities will be prohibited within one-half mile of the banks of the main channel of the Colville, Canning, Sagavanirklok, Kavik, Shaviovik, Kadleroshilik, Echooka, Ivishak, Kuparuk, Toolik, Anaktuvuk and Chandler Rivers, Facilities may be sited within these buffers if the lessee demonstrates to the satisfaction of the Director, in consultation with ADF&G, that site locations outside these buffers are not practicable or that a location inside the buffer is environmentally preferred, Road, utility, and pipeline crossings must be coiisolidated and aligned perpendicular or near perpendicular to watercourses.

d. Impacts to important wetlands must be minimized to the satisfaction of the Director, in consultation with ADF&G and ADEC, The Director will consider whether facilities are sited in the least sensitive areas. Further, all activities within wetlands require permission from the US Army Corps of Engineers (see Lessee Advisories).

e. Exploration facilities must be temporary and must be constructed of ice unless the Director determines that no practicable alternative exists. Use of gravel structures may be permitted on a case-by-case basis by the Director, after consultation with DMLW, and ADF&G.

Where and How It Is Addressed

The Plan of Operations has been submitted to ADNR, The state is the only surface owner whose property will be entered.

Pioneer is proposing a winter Exploration Program, with temporary facilities supported by snow and ice structures to minimize impacts to wetlands.

No permanent facilities are proposed. Pioneer is proposing to use a temporary snow and ice road system to support the winter 2011-2012 Exploration Program. Consultation with ADF&G on drillsite locations was conducted on July 28, July 12, February 23, 2011 and December 16, 2010. Based on feedback during from ADF&G and others. Pioneer has proposed doubling the distance of NDSl from the Colville River,

Pioneer is proposing a winter Exploration Program, with temporary facilities supported by snow and ice structures to minimize impacts to wetlands. Consultation with ADF&G on drillsite locations was conducted on July 28, July 12, February 23, 2011 and December 16, 2010. Pioneer also met with the ADEC spill plan group on proposed Nuna exploration activities. U.S. Army Corps of Engineers approval is not required for temporary winter exploration activities.

The proposed activities wiU be conducted on temporary ice roads and pads.

Pioneer Natural Resources Alaska, Inc. page! September 2011

2011-2012 North Slope Exploration Program Lease Mitigation Measures


Approval for use of existing structures will depend on the extent and method of restoration needed to return these structures to a usable condition.

f. Pipelines must utilize existing transportation corridors where conditions permit. Pipelines and gravel pads must be designed to facilitate the containment and cleanup of spilled fluids. Where practicable, onshpre pipelines must be located on the upslope side of roadways and construction pads, unless DMLW, determines that an alternative site iS environmentally acceptable. Wherever possible, onshore pipelines must be buried where soil and geophysical conditions permit. AU pipelines, including flow and gathering lines, must be designed, constructed and maintained to assure integrity against climatic conditions, geophysical hazards, corrosion and other hazards as tietermined on a case-by-case basis.

g. Onshore pipelines shall be designed and constructed to minimize alteration of caribou and other large ungulate movement and migration patterns. At a minimum, above-ground pipelines shall be elevated 7 feet, as measured from the ground to ttie bottom of the pipe, except where the pipeline intersects a road, pad, or a ramp installed to facilitate wildlife passage. Lessees shall consider increased snow depth in the sale area in relation to pipe elevation to ensure adequate clearance for wildlife. ADNR may, after consultation with ADF&G, require additional measures to mitigate impacts to wildlite movement and migration.

h. All pipelines, including flow and gathering lines, must be designed and constructed to provide adequate protection from water currents, storm and ice scouring, subfreezing conditions, coastal erosion, permafrost thawing, and olher hazards as determined on a case-by-case basis.

i. Offshore oil and gas transportation pipelines will be encouraged if the Director determines that they faying of such pipelines is technically feasible and environmentally preferable to transport by oil tanker or othef means.

j . Following the installation of a pipeline of sufficient capacity, no crude oil will be transported by surface vessel from offshore production sites, except in an emergency. The Director will evaluate the emergency . nd determine an appropriate respovse to the condition.

k. Causeways

i. Continuous-fill causeways are prohibited. Envirorunentally preferred alternatives for field development include use of buried pipelines, onshore directional drilling, or elevated structures. Non-continuous-fill causeways must be designed, sited, and constructed to prevent sigJiificant changes to nearshore oceanographic circulation patterns and water quality characteristics (e,g., salinity, temperature, suspended sediments) that exceed water quality criteria, and must maintain free passage of marine and anadromous fish,

ii. Causeways and docks shall not be located in river mouths or


Not applicable, no pipelines are proposed for the winter Exploration Program.

Not applicable, no pipelmes are proposed for the wmter Exploration Program.

Not applicable, no pipelines are proposed for the winter exploration program.



Not applicable, no continuous-fill causeways, docks, or other permanent structures are proposed for the winter Exploration Program.

Pioneer Natural Resources Alaska, Inc. page 2 September 2011


Lease Mitigation Measure Where and How It Is Addressed

deltas. Artificial gravel islands and bottom founded structures shall not be located in river mouftis or active stream chaimels on river deltas, except as provided for in measure iii below.

iii. Each proposed structure will be reviewed on a case-by-case basis. Causeways, docks, artificial gravel islands and bottom founded structures may be permitted if the Director, in consultation with ADF&G, ADEC, and the NSB determines that a causeway or other structures are necessary for field development and that no practicable alternatives exist, A monitoring program may be required to address the objectives of water quality and free passage of fish, and mitigation shall be required where significant deviation from objectives occurs. (See also Lessee Advisories regarding U.S. Army Corps of Engineers requirements,)

1. Dismantlement, Removal and Rehabilitation (DR&R): Upon abandorunent of material sites, drilling sites, roads, buildings or other facilities, such facihties must be removed and the site rehabHitaled to the satisfaction of the Director, unless the Director, in consultation with DMLW, ADF&G, ADEC, NSB, and any non-state surface owner, determines that such removal and rehabilitation is not in the state's interest.

Upon completion of drilling and evaluation operations, any remaining debris will be hauled to an approved disposal site. Any discovered spills or ice/snow contamination occurring on the ice pads or roads will be chipped or scraped back for pick up and either, disposed of at a certified disposal facility, or, as toxicity levels allow, hauled to the NSB landfill at Prudhoe Bay. Following the seasonal thaw in the spring the route and wellsites will be inspected. Any debris wiU be collected and back hauled for disposal.

If development of the NDSl location is not continued. Pioneer will abandon the well in accordance with AOGCC requirements.

Rehabilitation of the sites would then include: 1) Monitoring for 1-3 summers to

determine site thermal stability and increasing vegetation coverage.

2) If needed, add fertilizer and indigenous seed treatments to disturbed areas to promote natural colonization by indigenous plants. No invasive plants.

3) Limited mounding or ponding around the well cellar are acceptable if it fits with the surrounding area.

4) Monitoring will include observations regarding the condition of the disturbed area and an area undisturbed as a reference site.

m. Gravel mining sites required for exploration and development activities wiU be restricted to the minimum necessary to develop the field efficiently and with minimal environmental damage. Where practicable, gravel sites must be designed and constructed to function as water reservoirs for future use. Gravel mine sites required for exploration activities must not be located within an active floodplain of a watercourse unless the director, DMLW, after consultation with ADF&G, determines that there is no practicable

No gravel use or mining of gravel is proposed for the winter Exploration Program.

Pioneer Natural Resources Alaska, Inc. pages September 2011


Lease Mitigation Measure alternative, or that a floodplain site would enhance fish and wildlife habitat after mining operations are completed and the site is closed.

Mine site development and rehabilitation within floodplains must follow the procedures outlined in McLean, R. F, 1993, North Slope Gravel Pit Performance Guidelines, ADF&G Habitat and Restoration Division Technical Report 93-9, available from ADF&G.

2, Habitat, Fish, and WUdlife

a. Defoliation of explosives will be prohibited in open water areas of fish-bearing streams and lakes. Explosives must not be detonated beneath, or in proximity to fish-bearing streams and lakes if the detonation of the explosive produces a pressure rise in the water body greater than 2,7 pounds per square inch, or unless the water body, including the substrate, is solidly frozen. Detonation of explosives within or in close proximity to a fish spawning bed during the early stages of egg incubation must not produce a peak particle velocity greater than 0.5 inches per second. Blasting criteria have been developed by ADF&G and are available upon request from ADF&G. The location of known fish-bearing waters within the project area can also be obtamed from ADF&G.

The lessee wiU consult with the NSB prior to proposing the use of explosives for seismic surveys. The Director may approve the use of explosives for seismic surveys after consultation with the NSB.

b. Removal of water from fish-bearing rivers, streams, and natural lakes shall be subject to prior written approval by DMLW and ADF&G. Water intake pipes used to remove water from fish-bearing water bodies must be surrounded by a screened enclosure to prevent fish entrainment and impingement. Screen mesh size shall be no greater tiran 1 mm (0.04 inches), unless another size has been approved by ADF&G, The maximum water velocity at the surface of the screen enclosure may be no greater than 0.1 foot per second/ unless an alternative velocity has been approved by ADF&G.

c. Removal of snow from fish-bearing rivers, streams and natural lakes shall be subject to prior written approval by ADF&G. Compaction of snow cover overlying fish-bearing waterbodies is prohibited except for approved crossings. If ice thickness is not sufficient to facilitate a crossing, ice or snow bridges may be required.

d. Bears:

i. Lessees are required to prepare and implement a human-bear interaction plan designed to minimize conflicts between bears and humans. The plan should include measures to:

A. minimize attraction of bears to facility sites, including garbage and food waste;

B. organize layout of buildings and work areas to minimize interactions between humans and bears such as including the use of electric fencing;

C. warn personnel of bears near or on facilities and the proper


Pioneer is not proposing the use of explosives.

Water will be withdrawn from permitted sources using ADF&G-certified screens when in fish-bearing waters.

A bathymetry survey will be conducted this summer to guide the sea ice route location and minimize potential impacts to fish. Pioneer will apply for a Fish Habitat Permit to authorize the sea ice route if required.

Pioneer has prepared an addendum to the Oooguruk Unit Plan, approved bear interaction plan, which includes checking with ADF&G and USF&WS for derming sites, FLIR den surveys, and procedures to minimize attractants and safely respond to bear encounters,




actions to take;

D. if authorised, deter bears from the drillsite;

E. provide contingencies in the event bears do not leave the site;

F. provide for proper storage and disposal of materials that may be toxic to bears; and

G. document and communicate the sighting of bears onsite or in the immediate area to all shift employees.

ii. Before commencement of any activities, lessees shall consult with ADF&G to identify the locations of known brown bear den sites that are occupied in the season of proposed activities. Exploration and development activities started between September 20 and May 15 may not be conducted within one-half mile of known occupied brown bear dens, unless alternative mitigation measures are approved by ADF&G. A lessee who encounters an occupied brown bear den not previously identified by ADF&G must report it to the Division of Wildlife Conservation, ADF&G, within 24 hours. Mobile activities shall avoid such discovered occupied dens by one-half mile unless alternative mitigation measures are approved by DO&G with concurrence from ADF&G. Non-mobile facilities will not be required to relocate.

iii. Before commencement of any activities, lessees shall consult with the USFWS to identify the locations of known polar bear den sites. Operations must avoid known polar bear dens by 1 mile, A lessee who encounters an occupied polar bear den not previously identified b>' USFWS must report it to the USFWS within 24 hours and subsequently avoid the new den by 1 mile. If a polar bear should den within an existing development, off-site activities shall be restiicted to minimize disturbance.

e. Permanent, staffed facilities must be sited to the extent practicable outside identified brant, white-fronted goose, snow goose, timdra swan, king eider, common eider, Steller's eider, spectacled eider, and yellow-billed loon nesting and brood rearing areas.

f. Due to high concentrations of staging and molting brant and other waterbirds within the coastal habitats along the Teshekpuk Lake Special Area (TLSA) and other areas, operations that create high levels of disturbance, including but not limited to dredging, gravel washing, and boat and barge traffic along the coast, will be prohibited ffom June 20 to September 15 within one-half mile of coastal salt marshes, specifically Tracts 187, 209, 320, 483-485, 493, 494, 496, 497, 500-514, 517-519, 524, and 530. In addition. Tracts 228 and 231 are subject to the same restrictions between May 15 and July 30 to protect large concentrations of breeding snow geese. The construction and siting of facilities within one mile of ttiese areas may be allowed on a case-by-case basis if the Director and ADF&G determine that no other feasible and prudent location exists.

g. To pTotecV hauled-out spotted seals, boat and barge traffic will be prohibited between July 15 and October 1 within one-half mile of the Piasuk River delta and Oarlock Island.

3. Subsistence, Commercial and Sport Harvest Activities.


Pioneer is proposing to use a temporary snow and ice road system to support the winter 2011-2012 Exploration Program.

Not applicable. Pioneer is proposing a temporary winter Exploration Program. No activities will occur ft-om May 15 to September 15.

Not applicable. Pioneer is proposing a temporary winter Exploration Program. The project is not located near the Piasuk River delta or Oarlock Island.



Lease Mitigation Measure Where and How It Is Addressed

a. i. Before submitting a plan of operations for either onshore or offshore activities that the potential to disrupt subsistence activities, the lessee shall consult with the potentially affected subsistence communities, the AEWC, and the NSB (collectively "parties") to discuss the siting, timing, and methods of proposed operations and safeguards or mitigating measures that could be implemented by the operator to prevent unreasonable conflicts. The parties shall also discuss the reasonably foreseeable effect on subsistence activities of any other operations in tlie area that they know will occur during the lessee's proposed operations. Through this consultation, the lessee shall make reasonable efforts to assure that exploration, development, and production activities are compatible with subsistence hunting and fishing activities and will not result in. unreasonable interfere with subsistence harvests. In order to avoid conflicts with subsistence, commercial, and sport harvest activities, restrictions may include alternative site selection, requiring directional drilling, seasonal drilling restrictions, and other technologies deemed appropriate by DO&G,

ii. A discussion of resolutions reached or not reached during the consultation process and any plans for continued consultation shall be included in the plan of operations. The lessee shall identity who participated in the consultation and send copies of the plan to participating communities and the NSB when it is submitted to the division.

iii. If the parties cannot agree, then any of them may request the Commissioner of ADNR or his/her designee to intercede. The commissioner may assemble the parties or take other measures to resolve conflicts among the parties,

iv. The lessee shall notify the Director of all concerns expressed by subsistence hunters during operations and of steps taken to address such concerns.

Pioneer met or spoke with Nuiqsut stakeholders (Kuupik Corporation, City of Nuiqsut, Native Village of Nuiqsut, and Kuukpik Subsistence Oversight Panel) on March 1, June 14, and August 17 to discuss the Nuna development and ongoing environmental and engineering studies. Community meetings were held in the Nuiqsut Community Center on the evenings of March 1 and August 17, 2011. The August 2011 meeting specifically addressed the proposed exploration activities.

Pioneer met with the NSB on July 6, June 16, and January 28 and with AEWC on January 28 regarduig the Nuna project.

No subsistence conflicts were identified during the discussion of the proposed Exploration Program activities.

Although subsistence hunters may transit the area, the 2011-2012 Exploration Program is generally located in an area that supports limited subsistence activities in winter.

Pioneer maintains a liaison position in Nuiqsut and, when needed, subsistence representatives to minimize conflicts with subsistence activities. Typical tasks for the liaison includes coordinating with the local stakeholders, preparing project updates, fact sheets, and posters for distribution to Nuiqsut and the villages,

As part of the Oooguruk project. Pioneer established the Nuiqsut Mitigation Fund, which provides aimual funding to the community as compensation for potential increased subsistence efforts associated with the project

Pioneer also establishes a Conflict Avoidance Agreement with the AEWC annually.

b. Traditional and customary access to subsistence areas shall be maintained unless reasonable alternative access is provided to subsistence users. "Reasonable access" is access using means generally available to subsistence users. Lessees will consult the NSB, nearby communities, and native organizations for assistance in identifying and contacting local subsistence users.

Neither the project design nor Pioneer policy will restrict access to subsistence areas.

c. Whale Harvest Protection:

i. Permanent facility siting on Cross Island will be prohibited unless the lessee demonstrates to the satisfaction of the NSB, in consultation with the AEWC, that the development will not preclude reasonable access to whales as defined in Section AS and as may be determined in a conflict avoidance agreement, if required by the NSB, With the approval of the NSB, the Director may authorize

Not applicable. Pioneer is proposing no activities at Cross Island,




permanent facihties.

ii. Permanent facility siting in state waters within 3 miles of Cross Island will be prohibited unless the lessee demonstrates to the satisfaction of the Director, in consultation with the NSB and the AEWC, that the development will not preclude reasonable access to whales as defined in Section 8A and as may be determined in a conflict avoidance agreement if required by the NSB.

iii. Permanent facility siting in state waters between the west end of Arey Island and the east end of Barter Island (Tracts 40 through 45) will be prohibited unless the lessee demonstrates to the satisfaction of tiie Du-ector, in consultation with the NSB and the AEWC, that the development will not preclude reasonable access to whales as defined in M and as may be determined in a conflict avoidance agreement if required by fhe NSB.

d. Any tract or portion thereof in the Beaufort Sea Areawide sale area may be subject seasonal drilling restrictions in conjunction with the submission of a plan of operations permit application by the lessee.

i. Exploratory Drilling From Bottom-founded Drilling Structures and Natural and Gravel Islands: Subject to measure iii below, exploratory drilling operations and other downhole operations from bottom-founded drilling structures and natural and gravel islands are allowed year-round in the Central Subsistence Whaling Zone (SWZ). 1 In the Eastern SWZ, driUing is prohibited upon commencement of the fall bowhead whale migration until whaling quotas have been met

ii, Exploratofy Drilling Operations from Floating Drilling Structures: Subject to measure iii below, exploratory drilling below a predetermined threshold depth and other downhole operations from floating drUhng structures is prohibited throughout the Beaufort Sei» upon commencement of the fall bowhead whale migration ui^til the whale migration mid~point,2

In addition to the above restriction, exploratory drilling above and below a predetermined threshold depth in the Eastern SWA from floating drilling structures is prohibited upon commencement of the fall bowhead whale migration until the whaling quotas have been met.

In the Central and Western SWZ, exploratory drilling above and


Not applicable. Pioneer is proposing no activities within 3 miles of Cross Island.

Not applicable. Pioneer is proposing a temporary winter exploration program which is not located in the vicinity of Tracts 40 through 45,

Pioneer is proposing a temporary winter exploration program. The proposed activities will not occur during the subsistence whaling season. The project is located in the Central SWZ. Drilling activities will not occur during the fall whale migration and therefore, seasonal drilling activities do not apply.

Pioneer is proposing a temporary winter exploration program. The proposed activities will not occur during the subsistence whaling season. The project is located in the Central SWZ, Drilling activities will not occur during the fall whale migration and therefore, seasonal drilling activities or restrictions of non-essential activities do not apply.

1 Subsistence Whaling Zones: Eastern SWZ is that area within 20 nautical miles of the shoreline between 141° and 144° W longitude. Central SWZ is that area within 20 nautical miles of the shoreline between 144° and 151° W longitude. Western SWZ is that area within 20 nautical miles of the shoreline between 154° and 157° W longitude.

^ Migration Dates: Eastern SWZ - September 1 - October 10 with the midpoint of the migration on September 20. Central SWZ and Westem SWZ - September 10 - October 20 with the midpoint of the migration on Central SWZ and Western SWZ -September 10 - October 20 with the midpoint of the migration on September 28. Outside SWZ - Seaward of the Eastern SWZ - September 1 - October 10 with the midpoint of the migration on September 20; Seaward and west of the Central SWZ - September 10 - October 20 with the midpoint of migration on September 28. The midpoint of the migration is when 50 percent of the whales have been deemed to have passed the drill site.

Pioneer Natural Resources Alaska, Inc. page? September 2011



below a predetermined threshold depth may be prohibited on a case-by-case basis until the whaling quotas have been met.3 The following criteria will be used to evaluate these operations: 1) proxunity of drilling operations to active or whaling areas, 2) drilling operation ^ p e and feasible drilluig alternatives, 3) number of drilling operations in the same area, 4) mmiber of whaling crews in the area, and 5) the operator's plan to coordinate activities with the whaling crews in accordance with Mitigation Measure A3a.

All non-essential activities associated with drilling are prohibited in the Central SWZ during the whale migration until whaling quotas have been met. Essential support activity associated with drilling structures occurring within active whaling areas shall be coordinated with local whaling crews in accordance with the Mitigation Measure A3a.

"Essential activities" include those necessary to maintain well control, maintain physical integrity of the drilling structure, and scheduled crew changes. Support craft include aircraft, boats, and barges. "Non-essential activity," by exclusion, are those activities that do not fit the definition of essential activities. Both types of activities must be described by the operators in their exploration plans submitted for state review. To the extent feasible, mobilization or demobilization of the drilling structures should not occur during the whale migration. If operators propose to mobilize or demobilize during tlie whale migration, they must describe the activity in their exploration plan and must demonstiate why the activity must occur during the migration period.

iii. Exploratory Drilling in Broken Ice: Lessees conducting drilling operations during periods of broken ice must:

(A) be tiained and qualified in accordance with Minerals Management Service standards pertaining to well-control equipment and techniques; and

(B) have an oil spill contingency plan approved by the slate that includes requirements for in situ igniters, fire resistant boom, relief well plans, and decision process for igniting an uncontiolled release of oil;

(C) participate in an oil spill research program.

e. Exploration, development and production activities located on lease tracts 1 through 26 shall be conducted in a manner that prevents unreasonable conflicts between oil and gas activities and subsistence whale hunting.

i. Before submitting a plan of operations for activities on lease tracts 1 through 26, the lessee shall consult with the NSB, the AEWC, and the community of Kaktovik to discuss how the siting, liming, and metiiods of proposed operations can be planned and carried out to avoid potential conflicts with subsistence whale hunting. Through this consultation, which may include the negotiation of a conflict avoidance agreement, the lessee shall make every reasonable


Not applicable. Pioneer is proposing a temporary winter exploration program, with no activities during broken ice.

Not applicable. Pioneer is proposing a temporary winter Exploration Program. The proposed activities will not occur during the subsistence whaling season or on lease tiacts 1 through 26.

^ If upon review of the proposed operation using the above described criteria, the state determines that conflict with subsistence whaling activities may occur, additional drilling restrictions, similar to those imposed for the Eastern SWZ, may be imposed in the Central and Western SWZ's. In the Eastern SWZ, drilling is prohibited upon commencement of the fall bowhead migration until whaling quotas have been met.




effort to ensure that their activities will not result in unreasonable interference with subsistence whale hunting.

ii. A plan of operations for activities on lease tracts 1 through 26 shall include a discussion of the consultation process and any resulting conflict avoidance agreements. In the event that no agreement is reached, the lessee, the NSB, the AEWC, or the community of Kaktovik may request that ADNR call a meeting of representatives of the NSB, the AEWC, the community of Kaktovik, and the lessee to discuss the potential conflict caused by the proposed activities, and attempt to resolve the issues. If the parties are still unable to reach an agreement, then ADNR will make a final determination of the measures proposed to be taken to prevent unreasonable interference with subsistence whale hunting.

4. Fuel, Hazardous Substances, and Waste

a. Secondary contairunent shall be provided for the storage of fuel or hazardous substances.

b, Containers with an aggregate storage capacity of greater than 55 gallons which contain fuel or hazardous substances shall not be stored within 100 feet of a waterbody, or within 1,500 feet of a current surface drinking water source.

c. During equipment storage or maintenance, the site shall be protected from leaking or dripping fuel and hazardous substances by the placement of drip pans or other surface liners designed to catch and hold fluids under the equipment, or by creating an area for storage or maintenance using an impermeable liner or other suitable containment mechanism.

d. During fuel or hazardous substance transfer, secondary containment or a surface liner must be placed under all contamer or vehicle fuel tank inlet and outlet points, hose connections, and hose ends. Appropriate spill response equipment, sufficient to respond to a spUl of up to 5 gallons, must be on hand during any transfer or handling of fuel or hazardous substances. Trained personnel shall attend tiansfer operations at all times.

e. Vehicle refueling shall not occur within the annual floodplain, except as addressed and approved in the plan of operations. This measure does not apply to water-borne vessels.

f. All independent fuel and hazardous substance containers shall be marked with the contents and the lessee's or contractor's name using paint or a permanent label.


Impermeable lining and diking will be used for all oil storage facilities.

A waiver wiU be required to store fuel and hazardous substances within 100 feet from the Colville River/ Harrison Bay for the Sikumi Well No ,1 wellsite. Fuel and hazardous substances shall not be stored within 1,500 feet from any surface drinking water source.

Storage or maintenance of equipment containing fuel or hazardous substances will be on drip pads or within lined secondary containment.

Pioneer will follow standards in the Alaska Safety Handbook and North Slope Environmental Field Handbook for fuel and hazardous substance transfers to portable tanks and equipment, including the use of secondary containment, monitoring, and the availability of spill response materials.

In general, vehicles wiU not be fueled within the annual floodplain. There may be some equipment that requires fueling on the floodplain during operations of the sea ice pad and ice road constiuction and maintenance. Refueling will take place on the Sikumi #1 well pad, located immediately offshore of the Colville River Delta. Specific approval for this equipment and a waiver will be requested from DNR if needed.

Containers will be appropriately labeled.




g. A fresh water aquifer monitoring well, and quarterly water quality monitoring, is required down gradient of a permanent above-ground liquid hydrocarbon storage facility.

h. Waste from operations must be reduced, reused, or recycled to the maximum extent practicable. Garbage and domestic combustibles must be incinerated whenever possible or disposed of at an approved site in accordance with 18 AAC 60. (See also Section B2 below.)

i. New solid waste disposal sites will not be approved or located on state property during the exploration phase. Exceptions may be providing for drilling waste if the facility complies with the applicable provisions of 18 AAC 60.

j . Whenever practicable, the preferred method for disposal of muds and cuttings from oil and gas activities is undergroimd injection. Other methods of disposal shall be allowed only upon approval by the Director, in consultation with ADEC and ADF&G.

k. Proper disposal of garbage and pufrescible waste is essential to minimize attraction of wildlife. Tl\e lessee must use the most appropriate and efficient method to achieve this goal. The primary method of garbage and pufrescible waste is prompt, on-site incineration in compliance with state of Alaska air quality regulations (18 AAC 50). The secondary method of disposal is on-site frozen storage in animal-proof containers with backhaul to an approved waste disposal facility. The tertiary method of disposal is on-site noii-frozen storage in animal proof containers with backhaul to an approved waste disposal facility. Daily backhauling of non-frozen waste must be achieved unless safety considerations prevent it.

5. Access

a. Except for approved off-road fravel, exploration activities must be supported only by ice roads, winter frails, existing road systems or air service- Wintertime off-road fravel across tundra and wetiands may be approved in areas where snow and frost depths are sufficient to protect the ground surface. Surrmiertime off-road fravel across tundra and wetiands may be authorized subject to time periods and vehicle types approved by DMLW. Exceptions may be granted by the director of the DMLW. Exceptions may be granted by D M L W / and the Director, if an emergency condition exists; or, if it is determined after consulting with ADF&G that travel can be accomplished without damaging vegetation or the ground surface.

b. Public access to, or use of, the lease area may not be restricted except within the immediate vicinity of drill sites, buildings, and other related facilities. Areas of restricted access must be identified in the plan of operations. Lease facilities and operations shall not be located so as to block access to or along navigable or public waters as defined in AS 38.05.965.


Not applicable, there are no permanent storage facilities for this project.

Pioneer wiU reduce, reuse, or recycle solid wastes generated from development as practicable. Garbage and domestic refuse will be disposed of at NSB Service Area 10 facilities. Waste disposal is discussed in Section 7 of the Plan of Operations.

No surface disposal sites are proposed.

Drilling mud and cuttings will be disposed of by tiansporting to a certified processing and disposal facility at an approved injection well in Oooguruk, Prudhoe Bay or Kuparuk infrasfructure. No surface disposal of muds Of cuttings will occur.

Garbage and pufrescible wastes wUl be collected in animal-resistant containers and then disposed of at NSB Service Area 10 facilities.

Pioneer is proposing to use a temporary snow and ice road system to support the winter 2011-2012 Exploration Program.

Only the immediate vicinity of the wellsites will be closed to the general public for purposes of safety.




6. Prehistoric, Historic, and Archeological Sites

a. Prior to the construction or placement of any sfructure, road, or facility resulting from exploration, development, or production activities, the lessee must conduct an inventory of prehistoric, historic, and archeological sites within the area affected by an activity. The inventory must include consideration of literature provided by the NSB, nearby communities. Native organizations, and local residents; documentation of oral history regarding prehistoric and historic uses of such sites; evidence of consultation with the Alaska Heritage Resources Survey and the National Register of Historic Places; and site surveys. The inventory must also include a detailed analysis of the effects that might result from the activity.

b. The uiventory of prehistoric, historic, and archeological sites must be submitted to the Director, and to DPOR Office of History and Archaeology who will coordinate with the NSB for review and comment. If a prehistoric, historic, or archeological site or area could be adversely affected by a lease activity, the Director, after consultation with DPOR Office of History and Archaeology and the NSB, will direct the lessee as to the course of action to take to avoid or minimize adverse effects.

c. If a site, structure, or object of prehistoric, historic, or archaeological significance is discovered during lease operations, the lessee must report the discovery to the Dfrector as soon as possible. The lessee must make reasonable efforts to preserve and protect the discovered site, sfructure, or object from damage until the Director, after consultation with DPOR Office of History and Archaeology and tiie NSB, has directed the lessee as to the course of action to take for its preservation.

7. Local Hire, Communication, and Training

a. Lessees are encouraged to employ local and Alaska residents and contractors, to the extent they are available and qualified, for work performed in the lease area. Lessees shall submit, as part of the plan of operations, a proposal detaUtng the means by which the lessee will comply with the measure. The proposal must include a description of the operator's plans for partnering with local communities to recruit, hire and train local and Alaska residents and confractors. The lessee is encouraged, in formulating this proposal, to coordinate with employment and training services offered by the State of Alaska and local communities to train and recruit employees from local communities.

b. A plan of operations application must describe the lessee's past and prospective efforts to communicate with local communities and interested local community groups.

c. A plan of operations appUcation must include a fraining program for aU personnel including contractors and subconfractors. The program must be designed to inform each person working on the project of environmental, social, and cultural concerns that relate to that person's job. The program must use methods to ensure that personnel understand and use techniques necessary to preserve


A cultural resource survey was conducted. The proposed project wiU have no effects on the sites identified.

The cultural resource survey will be submitted to SHPO and the NSB.

Any discovered sites will be protected until consultation witii SHPO and NSB.

Pioneer places hiring preference on Alaskans. Local hire will be encouraged, as discussed in tite Plan of Operations.

Community oufreach and public involvement are discussed in the Plan of Operations.

Pioneer has a fraining program for aU onsite employees and confractors addressing environmental, cultural, and social issues, as discussed in the Plan of Operations.



Lease Mitigation Measure geological, archeological, and biological resources. In addition, the program must be designed to help personnel increase their sensitivity and understanding of community values, customs, and lifestyles in areas where they will be operating.



Documents

POO PNRA Nuna Exploration Program 20110919 (1)