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Despite these problems, by April 14, the Deepwater Horizon crew
                   successfully drilled to the M “56” sand, one of the hydrocarbon‐bearing zones
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                   that BP geologists and engineers had targeted for the well.   Although the
                   original well plan was to drill approximately 1,800 additional feet, the BP drilling
                   team in Houston opted to stop drilling the well at a total depth of 18,360 feet
                   because BP believed the well had reached the base of the target reservoir and that
                   it had run out of drilling margin.   In other words, BP concluded that it could no
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                   longer safely drill into the formation without creating an underbalanced well (if
                   the mud was too light) or risking fracturing the formation and threatening well
                   integrity (if the mud was too heavy).  BP planned to run production casing and
                   temporarily abandon Macondo by sealing it with a surface cement plug so that
                   another rig could return to the well later and take the steps necessary to complete
                   the well for production.

                          On April 19, the Deepwater Horizon crew ran the production casing string
                   into the well.   BP’s engineering team had engaged in significant debate over the
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                   appropriate design of the casing to run in the final well section.  There was
                   additional debate among BP personnel about the number of centralizers, which
                   are pieces of equipment used to keep the casing centered in the well, to use on
                   the final casing string.  The crew pumped cement into the annulus and into the
                   shoe track, the section of the casing between the bottom of the well and the float
                   valve installed in the well (a large valve designed to allow fluids to flow down
                   the well while preventing fluids from flowing back up the wellbore during
                   cementing operations).

                          The purpose of the cement job was to establish an isolation barrier across
                   the hydrocarbon zone at the bottom of the well so that hydrocarbons could not

                   enter the well.  In the late hours of April 19and into the morning of April 20, the
                   rig crew and BP’s cement contractor, Halliburton, pumped cement into the
                   Macondo well to isolate the hydrocarbon zones.   Based on data provided by BP,
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                   Halliburton designed the cement slurry, which is a mixture of cement, water and






                   29  BP‐HZN‐MBI‐00126338.
                   30  Id.  As discussed in detail later in this Report, drilling margin is the difference between the
                   weight of the mud used to drill relative to the pore pressures and the fracture gradient of the
                   formation.  Common industry practice is to use a drilling margin of 0.5 ppg mud weight under
                   the fracture gradient.
                   31  IADC Report 4/19/10.
                   32  Halliburton Post Job Cement Report, BP‐HZN‐CEC011406.


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