Getting ora-01031 insufficient privileges when using clob in PL/SQL code.

We have all needed grants. The SQL used executes and returns rows. No views are used. We can execute all functions, procedures, and packages.  We have never seen this error before in other projects before this instance. We are for the first time using CLOB. We are using CLOB for dynamic SQL. If we use a VARCHAR2 the OPEN cursor executes and returns rows, 6 rows in out test case. We have one SQL statement that we are using now that is 7K characters including space long. We foresee long SQL stmts. 

Below is a test script we are using that returns the error.