After much research, it was determined to be caused by
Bug 6519700 ESC: CSE: R12SIP: 6513826 FRMWEB RUNAWAY PROCESS CONSUMING 100% CPU-MIDDLE TIER
The fix was to shutdown the apps middle tier server and configure the following forms environment variables:
1) First we had to update the context file on the application middle tier as follows:
2) Since the FORMS_RECORD_GROUP_MAX is not a default variable in the app tier context file, you need to create a custom template as follows.
cp $AD_TOP/admin/template/APPLSYS_ux.env $AD_TOP/template/custom/APPLSYS_ux.env
Edit the custom template file:
Set the environment variable FORMS_RECORD_GROUP_MAX to a high value such as 10000 or greater.
Save the file.
Run autoconfig utility for apps middle tier server.
Start app tier services and test.
Now we now longer have this issue.