UNSPSC 71121658: Directional drilling lost circulation

Lost circulation is defined as the total or partial loss of drilling fluids or cement to high-permeability zones, cavernous formations and natural or induced fractures during the drilling or completion of a well. Prevalent drilling problems include pipe sticking, lost circulation, hole deviation, pipe failures, borehole instability, mud contamination, formation damage, hole cleaning, H2S-bearing formation and shallow gas, and equipment and personnel-related problems.

UNSPSC 71121658 Directional drilling lost circulation, a Commodity code, encompasses well plugging, abandonment, and site restoration services for orphaned oil and gas wells, including specialized drilling fluid management, lost circulation treatment, and associated wellhead removal—work that state and local governments procure primarily through state environmental and natural resources agencies managing legacy well remediation programs. The Michigan Department of Environment, Great Lakes, and Energy has dominated recent activity under this code, issuing four direct solicitations in July 2026 (DS7612600000000321, DS7612600000000331, DS7612600000000341, and DS7612600000000352) for plugging and site restoration of 38 orphaned gas storage wells across Gratiot and Montcalm counties, each requiring prequalification through prior RFPs, mandatory pre-proposal attendance, unit pricing across 68 line items including drilling equipment, cementing, wireline, and mud engineering services, and Davis-Bacon prevailing wage compliance with rates ranging from $39.57 to $41.32 per hour plus $25.25 to $40.00 in fringe benefits. The Mississippi Oil and Gas Board has also posted multiple orphan well plugging procurements (IFB RFx Nos. 3160007881, 3160007966, and 3160007967) spanning March through May 2026 across state oil and gas districts, funded through the Infrastructure Investment and Jobs Act with similar scope requirements for well plugging, equipment removal, site remediation, and compliance with the Davis-Bacon Act and Build America, Buy America provisions.

Michigan and Mississippi account for all recent documented activity under this code at the state level; the procurements are concentrated among state-level environmental or natural resources agencies managing federally or state-funded orphan well remediation programs. Representative opportunities include the Michigan Department of Environment, Great Lakes, and Energy's direct solicitation for three wells in Gratiot County (DS7612600000000322, due July 21, 2026) and fourteen wells in the same county (DS7612600000000332, due July 21, 2026), both IFB-style competitive procurements with responses due within five days of posting and technical evaluation weighted equally across key personnel, business-owned equipment, technical experience, and vendor questionnaire responses; the Mississippi Oil and Gas Board's invitation for bids on seven orphaned wells (IFB RFx No. 3160007881, due April 13, 2026) with optional pre-bid site visit on March 20, 2026, and an estimated contract period from May 1, 2026, through April 30, 2027. Eligibility is heavily restricted in Michigan procurements to vendors prequalified through five specified prior RFPs, creating a bottleneck for new market entry; Mississippi procurements remain open to qualified contractors meeting experience, bonding, and insurance thresholds but similarly emphasize past performance and trade references. All current activity is concentrated in Michigan and Mississippi, with federal funding through IIJA programs driving procurement volume and compliance requirements that favor established contractors with demonstrated well-plugging capabilities and adequate bonding capacity.