43 88
TRADE NAME REPORT FOR LIMITED LIABILITY COMPANY
TO THE SECRETARY OF STATE, STATE OF OKLAHOMA:
FEB B 3 1999
OF STATE
The undersigned limited liability company hereby submits the following report of the adoption of a Corporate Trade Name Report used in connection with its business in the State of Oklahoma. limited liability company is BEIRUTE i. The name of the ENTERPRISES, L.L.C. 2. The company was organized under the laws of the State of OKLAHOMA. 3. The name and address of its registered agent in the State of Oklahoma is Robert M. Beirute, 10104 S. Urbana, City of Tulsa, County of Tulsa, State of Oklahoma, 74137. 4. It is doing business in Oklahoma under the following trade name: BEIRUTE CONSULTING, L.L.C. 5. The kind of business being transacted under such name may be briefly described as follows: consulting regarding cementing in the oil and gas industry. 6. The company is carrying on such business under such name at the fol!owing address within the State of Oklahoma: 101014 S. Urbana Ave., City of Tulsa, County of Tulsa, State of Oklahoma, 74137. BEI] By:
rute, attorney
COUNTY OF TL(uS R )
SS.
Before me, the undersigned, a Notmy Public, in and for said County and State, on this ~..~ ~-D day of~9,~5~&) .... 1999, personally appeared ~k~Jg~)ltt ~:q\ ![~-t_, Imown to me to be the identica! persofi who subscribed his/her nmr~e to the foregoing instrument and ach~owledged to me that he/she executed the same as a free and voluntmy act and deed of such organization, for the purposes herein set forth. My Commission Expires:j~- 12-"-ZA%(51 Notary Public
CONFI DENT IAL
Beirute 30(b)(6) 07959
OTX~O3-O2-95.OK OKLAHOMA TAX COMMISSION,
2501 LIneN ~ulev~d
99996~338 LLC l RUTE ENTERPRIS~S~
~O~
S ORB ANA : AVE
O~fioma City, Ok7319~10 ,KB~ TUL~.~o~eompIetmB ~ie~ ~e re.on(a) for Bling ~Is form: ~ (~) N~w B~siaess ~ (b) Additional licenses/~r~ts ~ (c) Change in business loca~on ~ (d) Ch~ge in business ownership ~ (el Change of Name ~ (0 Initial Fr=chis return I, How is business owned? ~ (a) Individual ~i (d) Oktahoma Corp. Q (el Foreign Corp.
Page 1 OFFICE USE
~f) Limited Liability Co (LICO) (g) other(explain).__.
Business Phone (Area Code & No.)
General Partnership
~ (c) Limited Partnership Approva! Dealed STATUS
Federal Employers Identification Number (FEIN)
OWNERSFIIP .II~I]iORMATI(~N
4. Name of Individual, l~ar~tnership or Corporation
Social Security Number (If lndividual)
City
State
ZIP Code
.................
Title
FR WH
Nameg of Partners. C, orpgrate Officers, and Managing Officer Name (Last,/~irs(, ,M~dIe Initial) Social Security Number
_~~address (Street and number, P.O. Box, or rural route box numbe State ZIP Code Name (Last, First, Middle Initial) Social Security Number
cgh
County Title
Mailing address (Street and nurnbe); P.O. Box, or rural route and box number) City Name (Last, First, M~ddle tni~ial) State ZIP Code County Title
Social S~eurL~, Number
Mailing address (S~reet mvl number, P.O. Box, or rural route and box numbe~) City State (If you need more space, attach additionalpages.) ZiP Cod~ County
WITHHOLDING TAX 6, Do you now or do you intend to withhold Oklahoma Income Tax from employees? ........ "~ Yes a. Do you expect to withhold more than $500.00 per quarter? ..................... ,Zi Yes 2cv" A.//A~ ~2~/No No 7. Date you began/will begin withholding Oklahoma Income Tax? .i.....~i..ii ........ (month/dry/year) -~-/~/[__~__L /_ 8. What FEI number will you use to report withholding tax?(if different than item 2). ~_~__~__ ~___~L__~_ ~ ~L_~ ~_~ 9, Name of officer or employee responsible for remitting Oklahoma Income Tax withheld from employees:
Name (Last, First, Middle Initial) Social SecurL~y Number Title
Mailing address (Street and number, P.O. Box, or rural route and box number)
Cir State ZIP Code., County 10. A sole owner; genera!partner; corporate officer; or authorized representative must sign this application. .~. orm ~e ~ue ann cor~ct, ano that the requirements hereunder wilt ~ c~ried oat in ~cord~ wi~ ~e law* of t~ State o Okia~ma and the rules and rtgulation~ of ~e OklaEoma Tax Commission. I fu~er acknowledge and agree ~at sales, wi~hol~ng ~d motor ~el taxes we trust ~nds f~r ~e S~te of Oki~oma and ~at m~y u~ of these ~ust funds ot~r ~an timely re~tl~ce to ~ Sm~ of Okl~oma is em~zzlement ~d c~ result in cdnfina[prosecutJor,. hem ~ / ] ~pe or print name and litle Signature Date Man~a~o~ inclusion of Social Security and/or Federal Employers Identification humors is required on forms filed wiLh ~ Ok!~ama Tg~ Co~xsion pursuant to Title 68 of Se Oklahoma Smtum~ and regula~ons thereunder, for iden~fication pu~oss, and ~e deemed p~ of Se confidea~al fil~ ~d records of r.he Okl~oma Tax Commission. The Okl~oma Tax Commission is not requircd to give actual noti~ of changes in any state tax law.
CONFI DENT IAL
Beirute 30(b)(6) 07960
[] OTX0005-02-95-OK OKLAHOMA TAX COMMISSION (OTC) SALE,/USE TAX
BUS ESS REGISTRATION
Complete one copy of this page for each location. Page 2 _~ OFNCE USE
MANUFACTURERS LIMITED EXEMPTION (Please read instractions befor~ completing and print or tyt~e informalion)
I. Name of o~er (S~e as item 4 page I) LOCATION INFOI~dVIATION 3. Trade name of business - DBA
2. Store Number
Physical lo.cation of Busjne, ss (Street ~ number or flirection~ - ~o NOT ~e P,O. Box or Rural .Route number) State ZIP Code 4. Is this business located inside the city limits of city ~sted above? COPO ... ~ Yes" ~ No
6. Co e ........................................
FORM ~Sho~ ~lLong
7. ~incipal type of business location: ~ (a)RetNl ~ (b) Wholesale ~Se~ice ~ (d)Mfg ~ Other 8. List your princip~ t~able product(s) or sen, ice(s) for this location: ~ ~ ~ 9, Do you ~ (a) 3.2 Beer ~ (b) Cig.ffobacco ~ (c) Mixed Drinks Ud (d) Motor Fue! (e)Tires ~ 10. Is this a home bas~ business or a new business without a previous owner? .............................. Yes ~ No ~ lOa. If you answer YES, did you pay sates/use tax on tangible items~urchased ~ tor use (fixmres/~mpment, not resme inventor).. ...........................................Yes ~t~o 10b. If you answer NO, please m~k the t~es of items you purchas~ from the previous owner and give namffaddress of the previous business ow~ ~ Fixtures/Equipment ~ InCenmu, ~ O~er " ~ ~ ........... ~ 11. Are you rentingtleasing this business location ............................................................................ Yeso~lNo 11 a. If you answer YES, please give name/address of the lessor, and name of previous business, if known. i n this location. (~ of ~or. ~aam~)
P~vious Owner Name ~
TOURISM YES Cl NO
SIC CODE
SALES/USE TAX STATUS
Prior Owner [:lCurrent t:lDelinquent
! 2, If you have previously held an Oklahoma Saies Tax Permit, please list the number. L__[__[~ SALES/USE TAX 13 Yes ~No 13. Do you make purchases from outside Oklahoma which are not for resale? 14. (a) Are you an out-of-state business with no physical location or inventory within Oklahoma? ~1 Yes (b) If yes, indicate how deliveries are made: ~(I) Common Carrier el(2) Own Vehicles ~1(3) Both C..] Yes ,,~No 15. Do you lease goods/e~luipmemt to other companies/individuals for use in Oklahoma? 16. If you have more. than one location, check the following to show how you plan to file reports: ~ (a) Separate reports will be filed for each location for ead~ filing period. (A different permit number will be assigned for each location.) <l (b) Total sales for a!l locations will be report.ed on a singie report using one permit number. (Consolidated reporting: only one permit nufiSl~Yi{iflII6git~signed.) 17. Date of first sales subject to sales/use tax in Oklahoma//~O ..T,5~,~x~N- (MontA/Day/Year) --/ MANUFACTURERS LIMITED EXEMPTION C~ERT1TICATE 18. Date you began your manufacturing business in Oklahoma ..................(Month!Day/Tear) 19. What do you manufacture? 20. Describe your manufacturing operation:
ElConsumer i::lVendor Consolidated i~lYes [21No New Owner ~Current ~DeIinquentl MLEC STATVS
CONFI DENT IAL
Beirute 30(b)(6) 07961
- T0005-02-95-OK
~HOMA TAX CO~ISSION (OTC) ~Pl~e read ins~cfions ~fore completing and print or ~ ~formafio~ 7~ Name ofb~ne~;bBA ~qme ~ Item 3 on Page 2) 2. ~ or QSSN
BUSINESS REGISTRATIO
Page 3 OFFICE USE
3. CIGA~~ TOBACCO ]PRODUCTS Date of first sales_~/~/~ (Mont~Day~ear) Check ~(s) of license(s) ne~ed: , ~ar~h list of via for ~aeh ~cle) ~e~l (Over-~-Counter) Cigare~e G(d) Dis~butor s Vehicle Cigm~t~ (attach U~t of via for ~h ~(e) Whol~e Vehicle Cigarette ~b)Unsmm~d Tob~co Pmduc~ ~(~ Ciga~tte Distdbutin~ents ~(e)Wh~a~la Ci~re~ Date of first sales ~L 3.2 BEER - Chec~ ~(s) of license(s) n~: (M~nt~a~ear) Q (a)Dmu~t,~tle, ~d cmn (on.pramise) ~ ~)Bo~l~Cm ONLY (on-premise) ~ (c)B~ & Can ONLY (off-premise) /~/__ . ~rough ~/~/ ~te(s) of the event: ~ (d~eci~ Events ~ (~M~ufac~re(*) ~ (g)Ret~l M~ufacm~r Q Brow ~b (*) O~Wholesale(*) ~ (h)Enter your County License Eff~five Date~ L / ~ AVfiILABLE~ ATTAC~ A COPY OF YOUR NEW COUNTY PERM~. Date of first s~es / _/ 5. M~ED BE~GES(*) Check the ~(s) of license(s) 6ceded: (Mont~ay~ear) ~(a)~ Dri~s ~(c)Sp~i~ Events Date(s) of the event: / / through / aterer / / ~(d)Enter your ABLE Com. Lie. No. [ ~ I ~ [ [ J Effective Date ~(e)Beer and W~ne
6b. 6c. 7, 8. 9. CIG./TOB, STATUS
COIN DEVICE DECAL Check the type(s) of mac~he(s) operated:
3.2 BEER STATUS MIXED BEVERAGE STATUS
Date of first sale, s._.~
.L ( Month/Day/Year)
Q(a) TYPE A - Music,/~musement, or vending device requiring 25 cents or more. II J Indicate numberflf devices operated ......................................................... Q(b)TYPE/B- Ve/ffding devices requiring less laban 25 cents. Indic~e nu,~dger of devices Operated ......................................................... ~()TYPE~,~ Bulk vending devices requiting 25 cents or more with two (2) to fiv~5) mechanisms. Indicate number of devices operated ................... ~I(d)T~E D - Bulk vending devices requiring 25 cents or more with one (1). /(nechanism. Indicate number of devices operated .................................... ~(e)TYPE E - Bulk vending device requMng less than 25 cents. il J // Indicate number of devices operated ..................................... Q(f)SPECIAL - Music, amusement, verxting or bulk vending device operated for oneor more thirty (30) day periods, Exact dates tobe operated: .................. _ ~ 1__ / __ through__ / Number of Special Type A devices operated ........................................................ Number of Special Type B devices operated ........................................................ Number of Special Type C devices operated ........................................................ Number of Specia! Type D devices operated ........................................................ Number of Special Type E devices operated ........................................................ L-!-KI (g)Do you make sales other than those through vending machines? Yes ~ No Yes ~ No (h)If yes, do y, gu anticipate your monthly sales tax liabiIity to be less than $50.00?
COIN DEVICE STATUS
REPORTING STATUS
[~vlontb.ly
lllJ
~Semi-Annually
FIREWORKS STATUS
" 7. FIREWORKS Date of first sales I~/ (Month/Day/Fear) /L~heck the type(s) of license(s) needed: .~ ~(a) Manufacturer License ~2(c) W,holesaler License ~l(b) Distributor License ~(d) Retail License (Books)(whotesalers and i ~/ t
I
/. i 8. JUNK DEALER (~O,][~PER & ALUMIMUM DEALER) Date of first sales__ L (a) Dealer/// ! ~ Yes Cl No (b) Do you o~r~ a yard? [ I ! J (complete page 2 for each yard) :, (c) If yes hg.Wmany yards d;,~5~operate~. " I
di.triht4tor
SALVAGE STATUS
CONFI DENT IAL
Beirute 30(b)(6) 07962
REGISTIL&.TION AND LICENSE FEE SCHEDULE (Please read instructions before completing and print or type information) OKLAHOMA TAX COMMISSION (OTC) I. Owner (same as item 4, page 1) 2. ~ FEIN or Q SSN
D OTX0005-02-95-OK
BUS NESS GIST TtON
Page 4
NOTICE: All registration and license fees must be paid with the Businexs Registration Application, FaiIure to include the fees will delay processing of your application. Refer to your Instraction and Definitions sheet for further information concerning fees. Please check (V) the appropriate space(s) for the ~icense(s) and permit(s) that you are applying for and enter the applicable fee, amount in the TOTAL cotumn at the far right.
BASIC FEE LICENSE OR pERMIT ,TYPE: $ 20.00 33, Sales Tax Permit $ i0,00 # of locations (.____._) Additional locations ................................................ El4. Decal to operate coin-operated vending, music and amusement devices. 50.00 number of decals (~) QDecal A: ............................................................................ 10.00 number $ ~Decal B: ............................................................................ of decals (___) 15.00 number of decals (__) $ ~Decal C: ............................................................................ $ 5.00 number ~Decal D: ............................................................................ of decals (__) $ 2.00 number of decals ( ~Decal E: ............................................................................ ~lSpecial Decal: Fee is !/10 of the above annual rate for each thirty (30) day period. (30 day periods) ............... ElNumber of type A decals @ $5.00 X @ $1.00 X (30 day periods) ............... ElNumber of type B decals ElNumber of type C decals @ $1.50 X (30 day periods) ............... (30 day periods) ............... ~Number of ~ype D decals @ $0.50 X
OFFICE USE ONLY STP 3,a b
STC 4a. b.
e,
,00
,00 .00
f,
.00
h,
j.
.00
5. $ 200.00 ~ 5. Coin Device Distributor Permit ............................................................................................ ATL 6. El 6. Unstamped tobacco Products License ................................................................................... 5.00 $ ACL 7. $ El 7. Wholesale Cigarette License ................................................................................................ 25.00 8. El 8. Retail Cigarette license ......................................................................................................... 30,00 $ 25.00 9. $ ~ 9, Distributors Vehicle Cigarette License ............................................................. 10.00 10. I~t0. Wholesalers Vehicle Cigarette License ............................ number of licenses (__.) @ $ 100.00 11. Ot 1. Cigarette Distributing Agents License ............................ number of licenses ( /@$ 250.00 ABL I2. 1~112. Wholesale Non-Intoicating Beverage (3.2 Beer) License .................................................. $ $ 13. ~t3. Retail Manufacturer Non-intoxicating Beverage (Brew Pub) License ................................ 450.00 14. $ 500.00 Ell4. Manufacturer Non-intoxicating Beverage (3.2 Beer) License .............................................. ~15, Retail Dealer for Non-Intoxicating Beverage (3.2 Beer) License Fees: 15, a. $ iSIDraught, Bottle, and Can License (on-premise cor~sumption) ........................................ 300.00 b. ElBottled and Canned ONLY License (on-premise consumption) .................................... 150,00 $ 30.00 c. $ ClOff Premise ..................................................................................................................... d. through / ) $ 5,00 ElSpecial Event Fee (per day: _ / 1 / ~16. Fireworks: STF 16.a. $ I000.00 ~Distributor b. $ 500.00 r21Wholesaler c, $ 500,00 ElManufacmrer ) @ ....... $ 200.00 d. # of ~Retail Books (20 licenses per book) ............................... books ( $ MVS I7.a. ~!7. Jurtk Dealer License ..............................................................................................................35.00 ,#of 15.00 b. ~Additional yards ....................................................................... yards (___) @ $ CSF 18, tax ~118. Cash Bond for FRX 19. :2119, Franchise Tax Registered Agents Fee (foreign corporations) .............................................. !00,00 TOTAL AMOUNT DUE $ Make Check payable to the Oklahoma Tax Commission ....................................................................
.00 .00 .00 .00 .90 .00 .00 .00 .00 .00 .00 .00 .00 .00 .00
CONFI DENT IAL
Beirute 30(b)(6) 07963
Beirute Consulting, L.L.C. (BCLC) 10104 S, Urbana Ave., Ttflsa, OK 74137 Phone: 918-299-4259, Fax:918-298-5100 rmbconstfl@aol.com Federal ID:73-t558758
Bill To BP America Production Company Attention: Scanning Department P.O. Box 22024, Room $646 Tulsa, OK. 74121-2024 Date 7/30/2009
nvoice
Invoice # 1245
P.O. No. 4540065198 Quantity Description Project Information: Consulting services by Robert Beirute to help with cementing jobs for the D&C organization. Attached are Time Sheet and Record of Expenses both approved by Charles Taylor. Original receipts of expenses are attached in 4 separate envelopes. Billing Period: July 2009
PO Number: 4540065198
Terms 30 - 12% annual Rate
Project
Amount
Work Ordered by: Charles Taylor Our Billing Contact: Robert M. Beirute. Phon Please mail payment to: Beirute Consulting, L.L.C. 10104 S. Urbana Ave. Tulsa, OK 74137 16 On location consulting days Traveling expenses from 7/6 - 7/30/09 - See attached sheet of expenses and original receipts
1,550.00 3,152.444 24,800.00 3,152.44
Detailed charges and expenses are attached
Total
$27,952.44
CONFI DENT IAL
Beirute 30(b)(6) 07964
Beirute Consulting, L.L.C. (BCLC) 10104 S, Urbana Ave., Tulsa, OK 74137 Phone: 918-299-4259, Fax:918-298-5100 rmbconsul@aol.com Federal ID:73-1558758
Bill To BP America Production Company Attention: Scanning Department P.O. Box 22024, Room S646 Tulsa, OK. 74121-2024 Date ?/2/2009
nvoice
Invoice # 1240
P.O. No. 4540065198 Quantity Description Project Information: Consulting services by Robert Beirute to help with cementing jobs for the D&C organization. Attache~l are Time Sheet and Record of Expenses both approved by Charles Taylor. Original receipts of expenses are attached in 5 separate envelopes. Billing Period: June 2009 PO Number: 4540065198 Work Ordered by: Charles Taylor Our Billing Contact: Robert M Beirute. Phon Please mail payment to: Beirute Consulting, L.L.C. 10104 S. Urbana Ave. Tulsa, OK 74137 20 On location consulting days 57
Terms 30 - 12% annual Rate
Project
Amount
~,,,~
~,]( 1,550.00 6,514.59 31,000.00 6,514.59
Trav.el in gexpenses from 6/1 - 7/2/09 - See attachedsh get of expenses and original rec ~ lps t
Detailed charges and expenses are attached $37,514.59
CONFI DENT IAL
Beirute 30(b)(6) 07965
Beirute Consulting, L.L.C. (BCLC) 10104 S, Urbana Ave., Tulsa, OK 74137 Phone: 918-299-4259, Fax:918-298-5100 rmbconsut@ao!.com Federal ID:73-1558758
Bill To BP America Production Company Attention: Scanning Department P.O. Box 22024, Room $646 Tuls~ OK. 74121-2024 Date 5/29/2009
nvoice
Invoice # 1238
P.O. No. 4540065198 Quantity Description
Terms 30 - !2% annual Rate 0.00
Project
Amount 0.00
P?0ject Information: Consulting services by Robert Beirute to help with cementing j0bs for the D&C organization. Attached are Time Sheet and Record of Expenses both approved by Charles Taylor. Original receipts of expenses are attached in 4 separate envelopes. Billing Period: May 2009 PO Number: 4540065198 Work Ordered by: Charles Taylor
Beirute Consulting, L.L.C. 10104 S. Urbana Ave. Tulsa, OK 74137
15 On Location consulting days Traveling expenses tbr 5/4 -5/28 2009 - See attached sheet of expenses and original receipts.
1,550.00 ! 4,707.54
23,250.00 4,707.54
Detailed charges and expenses are attached
Total
$27,957.54
CONFI DENT IAL
Beirute 30(b)(6) 07966
Beirute Consulting, L.L.C. (BCLC) 10104 S, Urbana Ave., Tulsa, OK 74137 Phone: 918-299-4259, Fax:918-298-5100 1Tnbconsul@aol.com Federal ID:73-1558758
Bill To BP America Production Company Attention: Scanning Department P.O. Box 22024, Room $646 Tulsa, OK. 7412t-2024 Date 5/1/2009
nvoice
Invoice # 1236
P.O. No. 4540065198 Quantity Description Project Information: Consulting services by Robert Beirute to help with cementing jobs for the D&C organization. Attached are Time Sheet and Record of Expenses both approved by Charles Taylor. Original receipts of expenses are attached in 4 separate envelopes. Billing Period: April 2009 PO Number: 4540065198 Work Ordered by: Charles Taylor Our Billing Contact: Robert M. Beirute. Phon Please mail payment to: Beirute Consulting, L.L.C. 10104 S. Urbana Ave. Tulsa, OK 74137 16 On Location consulting days Traveling expenses for 4/6 - 4/30 2009 - See attached sheet of expenses and original receipts. 7
Terms 30 - 12% annual Rate
Project
Amount
1,550.00 4,021.08
24,800.00 4,021.08
Detailed charges and expenses are attached
Tota
$28,821.08
CONFI DENT IAL
Beirute 30(b)(6) 07967
Beirute Consulting, L.L.C. (BCLC)
10104 S, Urbana Ave., Ttdsa, OK 74137 Phone: 918-299-4259, Fax:918-298-5100 rmbconsul@aol.com Federal ID:73-1558758
Bill To BP America Production Company Attention: Scanning Department P.O. Box 22024, Room $646 Tulsa, OK. 74121-2024 Date 4/3/2009
nvoice
Invoice # 1232
P.O. No. 4540065198 Quantity Description Project Information: Consulting services by Robert Beirute to help with cementing jobs for the D&C organization. Attached are Time Sheet and Record of Expenses both approved by Charles Taylor. Original receipts of expenses are attached in 5 separate envelopes. Billing Period: March - April 2009 PO Number: 4540065198 Work Ordered by: Charles Taylor Our Billing Contact: Robert M. Beirute. Phon Please mail payment to: Beirute Consulting, L.L.C. 10104 S. Urbana Ave. Tulsa, OK 74137 20 On Location Consulting days Traveling expenses for 2/25 - 4/2 2009 - See attached sheet of expenses and original receipts.
Terms 30 - 12% annual Rate
Project
Amount
1,550.00
31,000.00 7,026.09
7,026.09
Detailed charges and expenses are attached $38,026.09
CONFI DENT IAL
Beirute 30(b)(6) 07968
Beirute Consulting, L.L.C. (BCLC) 10104 S, Urbana Ave., Tulsa, OK 74137 Phone: 918-299-4259, Fax:918-298-5100 rmbconsul@aol.com Federal ID:73-1558758
Bill To BP America Production Company Attention: Scanning Department P.O. Box 22024, Room S646 Tulsa, OK. 74121-2024 Date 2/26/2009
nvoice
Invoice # 1229
P.O. No. 4540065198 Quantity Description Project Information: Consulting services by Robert Beirute to help with cementing jobs for the D&C organization. Attached are Time Sheet and Record of Expenses both approved by Charles Taylor. Original receipts of expenses are attached in 4 separate envelopes. Billing Period: February 2009 PO Number: 4540065198 Work Ordered by: Charles Taylor Our Billing Contact: Robert M. Beirute. Phon : Please mail payment to: Beirute Consulting, L.L.C. 10104 S. Urbana Ave. Tulsa, OK 74137 16 On Location, US consulting days Traveling expenses for February 2009 - See attached sheet of expenses and original receipts. 57
Terms 30 - 12% annual Rate
Project
Amount
1,550,00 5,936.62
24,800.00 5,936.62
Detailed charges and expenses are attached $30,736.62
CONFI DENT IAL
Beirute 30(b)(6) 07969
From: McKay, Jim Sent: Wednesday, July 21, 2010 15:24 To: Beirute, Robert M (Unknown Business Partner); McPherson, Ian (FEE); Ashley Hibbert Co: Winters, Warren J; Corser, Kent Subject: Cementing Evaluation questions
Evaluate Halliburton o Slurry design effectiveness for well conditions o Halliburton testing protocol Evaluate CSI lab testing o Additives are representative of actual products o CSI testing protocol are sound and were correctly followed o Testing variables thoroughly evaluate sensitivities Evaluate that CSI conclusions are accurate and robust Recommendation of future testing Evaluate if engineering technical practices were sound and adhered to Verbal feedback Written report within 5 business days
Regards, Jim McKay BP EPT ERA - Drilling Process Optimization Houston - 13.110C West Lake 1 Cell: 832.865.2216 jim.mckay@bp.com
CONFI DENT IAL
Beirute 30(b)(6) 07970
MC 252 #1 Macondo, BP Peer Review of CSl Cementing Analysis Houston, 22"a July 2010
Reviewers:
Dr. Robert Beirute
Dr. Ashley Hibbert Mr. Ian McPherson Review Objectives
1. Evaluate Halliburton a. Slurry design effectiveness for well conditions b. Halliburton testing protocol 2. Evaluate CSl lab testing a. Additives are representative of actual products b. CSl testing protocol are sound and were correctly followed c. Testing variables thoroughly evaluate sensitivities 3. Evaluate that CSl conclusions are accurate and robust 4. Recommendation of future testing
Review Conclusions and Recommendations
1. Slurry design effectiveness for well conditions and Halliburton testing protocol Very limited test data is available - what is available does not indicate that minimum industry practices were met for the well conditions - ie. string across a hydrocarbon zone. For example - no free fluid, no fluid loss, no Transition Time (Static Gel Strength for cap and tail), no compatibility (spacer or mud), spacer wettability, The base slurry for the foam (which is the same as the cap and shoe track slurry) was too thin (YP 2) and was not tested for static or dynamic settling. Slurry type and composition o There was no Basis of Design document or Well Cement Program presented to us that defines the job objectives and risks. o Alternatives to foam were apparently not assessed e.g. High strength microspheres, light weight cements (TXI), etc o Fluid loss was not controlled to industry accepted levels for cementing across pay zone. o Foam Slurry included dispersing additives (KCI, retarder, EZ FIo) and defoamer- all against industry practices that advise against dispersing chemicals and defoamers. o Use of foam cement for deep strings is not a common practice, and requires enhanced engineering and operational considerations, which we have not seen evidence of. o Lack of friction pressure drop hierarchy (for displacement efficiency) between slurry and spacer.
Potential risks with foam o SOBM and base oil are both very effective foam breakers. Surfactants used in spacers can also be foam breakers. o Very small slurry volume coupled with long (large volume) displacement results in increased probability of severe contamination, and consequent foam destabilization. o Increased complexity of operation.
Page ! of 3
CONFI DENT IAL
Beirute 30(b)(6) 07971
2.a.
Evaluate CSI lab testing - Additives are representative of actual products
Under the circumstances, where samples of actual materials have not been made available from the rig or from Halliburton, CSI appear to have taken a sound approach to sourcing products analogous to the Halliburton products. However, definitive results can only be obtained by testing with rig and Halliburton product samples. 2.b. Evaluate CSl lab testing - CSl testing protocol are sound and were correctly followed o CSI have followed API recommended practices, and in addition have evaluated foam generation and stability across a range of different foam qualities and temperatures. With respect to investigating this incident, definitive results can only be obtained by testing with Halliburton products and representative (rig) samples of cement blend and water. However the CSI testing was performed in a professional manner, and highlights the critical and sometimes unpredictable stability of foam and the associated risks, particularly in deep conditions. o CSI used a single blade foam generating cup, however it is not known for certain whether Halliburton used a single or a five bladed cup (both of which are acceptable under API RP 10B-4). 2.c. Evaluate CSl lab testing - Testing variables thoroughly evaluate sensitivities
o The procedure followed to systematically identify the effect of each slurry component on foam stability was good, demonstrating the sensitivity of the foam to precise composition and temperature. The effect of contamination of foam by SOBM, base oil or spacer was not tested. These are known to potentially result in foam instability and breakdown. Considering the well conditions, the small volume of slurry and the long/large displacement, this should be evaluated. 3. Evaluate that CSI conclusions are accurate and robust
Conclusions evaluated are as per Item 13 of the BP/CSI Macondo Investigation Peer Review Meeting presentation, dated July 21,2010 1) Neat cement with foamer is stable at all foam quafities
Qualify this to state "at all qualities and conditions tested" 2) Almost all additives used in the slurry affect the foam stability
Agreed
3) Stability issues are very real
Agreed
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4) Shear can affect the generation of the foam at the surface (60% to 50% quality) Slurries at 18.5% quality are unstable at 140F
o o
Qualify this to state "Slurries tested at 18.5% at the conditions tested are unstable at 140F" It is agreed that the tests demonstrate that many factors may affect foam stability, which are not all adequately understood or quantified within the industry. The current test procedures within the industry are inadequate, particularly for deep, hot or high pressure applications.
Temperature greatly affects foam stability
5)
It is agreed that the tests demonstrate that many factors may affect foam stability, which are not all adequately understood or quantified within the industry. The current test procedures within the industry are inadequate, particularly for deep, hot or high pressure applications.
Recommendation of future testing
o o 0 o
Foam compatibility and stability with SOBM, base oil and spacer contamination. Spot check a limited number of tests to compare the effects of using the single blade versus the five blade foaming cup. All tests must be eventually run using the actual Halliburton chemical products, slurry composition and representative cement blend and water samples. There is value for BP and the industry as a whole in developing the capability to test and understand the stability and properties of foam cement cured under downhole pressure and temperature conditions.
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