June 16, 2006

To Whom it may Concern

RE: Seep Gas Line

Dear Sir.

In 1982. Area installed a 6" gas line to two seep gas collection structures located on the sea floor in over 200' of water. This gas is seeping up through natural fractures from a known accumulation of Monterey gas. The Monterey gas generally contains up to 1.3% hydrogen sulfide and 13% carbon dioxide. In view of the expected corrosive producing conditions, Arco decided to run a steel line with a concentric string of fiberglass tubing. This was assembled in sections on the beach and towed out to the seep tent location approximately 4 miles offshore.

The seep tents and pipeline has been in continuous operation since 1985 and have produced over 7 BCF of gas since that date. Venoco took over operation of the tents in 1997 and we are confident that we can continue to operate the tents for another 20 years if necessary.

Should you require any additional data on this pipeline. please feel free to contact me.

Sincerely,

Steve Horner
DOE Project Manager