-6

reperforating, and then testing to determine if the work was successful.

Cities estimated the work required would delay
A-76 production coming back on until approximately
February 1, 1975. In view of the uncertainties
of work and weather, Gas Supply recommended that
Transco not count on production resuming beforė
February 15, 1975.

Bob Green and Jim Coventon met in Cities' Houston
office with Messrs. Bob Murphy and Don Oliver
to determine if Cities could reasonably stop its
work (which was a 2nd re-work of Well #5 to
stop excessive water production), produce the
5 completed wells for the remainder of the
winter period and return to finish Well #5 during
the summer of 1975.

Cities furnished Transco a schedule for completing
the work, which, if it could be maintained, would
result in all wells being ready to produce by
January 20, 1975. Cities indicated this was
their most "optimistic" schedule, and did not
allow for any weather or other delays. Cities
said a more practical estimate for resumption
of deliveries was February 1, 1975.

26. 1-1 to 1-20-75

Bob Green talked by telephone to Cities' Don
Oliver several times each week to follow the

work progress. The work progressed on schedule
and good weather (with exception of January 10,
1975) allowed removal of the drilling rig on
schedule and deliveries commenced on January 20,
1975.

JEC: RHG: gah 1-24-75

Mr. RAABE. We ask that Mr. Vernon be called.

Mr. Moss. Mr. Smethurst, will you stand aside. Mr. Vernon, will you come forward and be sworn.

Do you solemnly swear the testimony you are about to give this subcommittee shall be the truth, the whole truth, and nothing but the truth, so help you God?

Mr. VERNON. I do.

Mr. Moss. Will you identify yourself and give your occupation and address for the purpose of the reporter and take a seat at the microphone directly in front of the chair.

TESTIMONY OF PAUL VERNON, OPERATIONS MANAGER, PROGRESS MARINE, INC., LAFAYETTE, LA.

Mr. VERNON. My name is Paul Vernon. I live in Lafayette, La. My office is Heymann Boulevard. I am the operations manager for Progress Marine.

Mr. Moss. Mr. Raabe.

Mr. RAABE. Mr. Vernon, do the operations of your company include the working over of gas and oil wells in the Gulf of Mexico?

Mr. VERNON. Yes, that is right. We are a service company and a drilling company.

Mr. RAABE. Prior to July 1, 1974, did you hold a similar position with Dresser Offshore Services?

Mr. VERNON. That is right.

Mr. RAABE. Was your change in employers due to the fact that Progress Marine acquired Dresser Offshore Services along about July 1, 1974?

Mr. VERNON. Would you repeat that?

Mr. RAABE. Your change in employers from Dresser Offshore Services to Progress Marine was brought about by the fact that Progress Marine acquired Dresser Offshore Services; is that correct?

Mr. VERNON. That is right.

Mr. RAABE. Mr. Vernon, as a part of an effort on your part to obtain business for Progress Marine in the latter part of June 1974, did you contact John Heck of Cities Service and inquire whether Cities would be in need of a workover rig?

Mr. VERNON. That is correct.

Mr. RAABE. What did Mr. Heck respond?

Mr. VERNON. He said he was looking for a rig to work a platform over in the Brazos area.

Mr. RAABE. Did you call Mr. Heck because you had known him previously from prior work associations?

Mr. VERNON. That is right.

Mr. RAABE. Within a day or two after you contacted Mr. Heck, did you charter an airplane and fly to Houston for the purpose of going to the platform?

Mr. VERNON. Within a matter of a few days. I would not say it was a day or two. I talked to John several times before this.

Mr. RAABE. Did you thereafter accompany Mr. Heck on board a helicopter and go to the platform A-76?

Mr. VERNON. That is correct.

Mr. RAABE. I would ask at this point for the clerk to hand you two documents. The first document that I would have you look at is a flight log of Petroleum Helicopters, Inc., for June 25, 1974. It shows that indeed you and Mr. Vernon departed from Port O'Connor at 10 a.m. in the morning and arrived at A-76 at 10:40 a.m., and the log shows you were there until about 2:15 in the afternoon and then arrived back at Port O'Connor at 3 o'clock in the afternoon.

Mr. Chairman, I would ask that this be included in the record as exhibit N.

Mr. Moss. Is there objection? Hearing none, it is so ordered. [Exhibit N follows:]

1

PETROLEUM HELICOPTERS, INC.

PO. BOX T

SHIP

#N81305

LAFAYETTE, LA. 70501

DAILY FLIGHT MANIFEST

JOB Cities Service Oil-PILOT. PRoffitt, R 5936 DATE?5 JUNITY

Pilot shall initial each flight # block to certify his compliance with weight & center of gravity limits.