MMS reviewing Destin Dome project

U.S. Minerals Management Service has begun formal review of a Chevron U.S.A. Inc. development plan covering leases in the Destin Dome area off Florida's panhandle.

It would be industry's first field development off Florida, where there is heavy opposition to offshore drilling.

The Chevron Corp. unit and partners Murphy Exploration & Production Co. and Conoco Inc. filed the development plan last November.

MMS conducted an initial completeness review before moving to the next step, formal review of proposed Destin Dome 56 Unit (OGJ, Dec. 9, 1996, Newsletter).

The Chevron plan covers Destin Dome Blocks 12, 13, 14, 15, 16, 54, 55, 56, 57, 99, and 100 about 25 miles off the coast of northwestern Florida, south of Pensacola Beach. The blocks were purchased in eastern gulf sales 79 in 1984, 94 in 1985, and 116 (part one) in 1988 for a total outlay of $13.1 million.

MMS process

MMS will now begin a technical review and engineering and environmental analysis to determine if the plan can be approved.

Officials said the process may take as long as 2 years.

It will include structural specifications, safety systems, installation verification, drilling procedures, pipeline specifications, and environmental protection.

MMS soon plans to publish in the Federal Register a notice of intent to prepare a draft environmental impact statement (EIS).

MMS said it will take about 1 year to prepare the draft EIS, which will examine the potential effects of the project on the marine, coastal, and human environments.

As part of the process, MMS will hold scoping meetings in Pascagoula, Miss.; Theodore, Ala.; and Pensacola, Panama City, and Tallahassee, Fla. Dates and times of the meetings have yet to be announced.

Also, MMS has information copies of the proposed development plan available for public review at its Pensacola office and at certain public libraries and universities in Alabama, Mississippi, and Florida.

What's planned

Chevron and partners have drilled four wells on the acreage in 1987, 1989, and 1995 targeting Jurassic Norphlet pay.

Three wells resulted in gas finds.

In 1987, Chevron drilled two successful gas wells on Block 56, and a third well was drilled on Block 97 in March 1994 to delineate the discovery. That well was unsuccessful.

A fourth well was subsequently drilled on Block 57. The 57-1 well flowed on test 41 MMcfd of gas (OGJ, Apr. 25, 1994, p. 74).

Chevron group's development plan calls for drilling 12-21 wells, and it estimates eventual production at 300-450 MMcfd.

Plans call for moving output from the project site via a 30-in. export pipeline to a complex located on Mobile Block 917 and then to a gas processing complex in Mobile County, Ala.

Projected start-up is planned for March 1999.

Other hurdles

The MMS cannot issue a permit for the proposed activities unless the state of Florida concurs that Chevron's plan is consistent with the state's coastal zone management program.

In addition to MMS requirements, Chevron and partners must obtain permits and approvals from other federal and state agencies prior to production start.

Permits include air emissions and water quality from U.S. Environmental Protection Agency.