UNSPSC 71123003: Hydrocarbon reservoir development and production services

Services to predict hydrocarbon reservoir behavior to implementation of the method of recovery which may include: engineering and design, candidate identification, technology selection, rig contracting & management, wellsite supervision, project management

UNSPSC 71123003 Hydrocarbon reservoir development and production services (Commodity) encompasses orphan oil and gas well plugging, abandonment, and site restoration—work that state and local governments procure primarily through environmental remediation and energy infrastructure programs. State and local activity under this code centers on plugging abandoned wells funded through federal orphaned wells programs, with the Michigan Department of Environment, Great Lakes, and Energy (EGLE) and the Mississippi Oil and Gas Board (MSOGB) as standout repeat buyers. The Michigan EGLE issued four direct solicitations in July 2026 for comprehensive well abandonment and site restoration across Gratiot and Montcalm counties—covering 38 orphan gas storage wells total with scopes encompassing plugging, drilling, re-drilling, site preparation, mobilization/demobilization, wireline services, cementing, waste disposal, and infrastructure removal. All Michigan solicitations required prequalification through prior RFPs and Davis-Bacon prevailing wage compliance, with evaluation based on key personnel (25%), business-owned equipment (25%), technical experience and ability (25%), and vendor questions worksheet (25%), with an 80-point minimum threshold for award. The Mississippi Oil and Gas Board similarly solicited plugging and reclamation services for multiple cohorts of orphaned wells (seven wells in one IFB, three wells in another, seven additional wells in a third) across state counties, with Infrastructure Investment and Jobs Act funding and Davis-Bacon requirements.

The geographic center of recent activity is Michigan and Mississippi, with secondary activity in Texas (Railroad Commission of Texas statewide well plugging solicitation) and scattered single-well projects in Florida and other states. The Michigan solicitations dominate the recent pipeline with multiple direct awards to prequalified contractors in July 2026, all due July 21, 2026, following mandatory pre-bid meetings on July 9, 2026, at the New Haven Compressor Station. Pricing is unit-based across 68 line items per the Schedule B Pricing Matrix, with firm pricing for the project duration and no change-order authority without state approval. The Mississippi Board's work follows a similar structure with IFB-format procurements, prevailing wage compliance, turnkey pricing by individual well plus total package pricing, and evaluation favoring lowest responsive and responsible bid combined with trade reference scoring. Work is anticipated to commence in late fall or winter 2026 in Michigan and May 2026 in Mississippi, with contract terms running through mid-2027. This code shows sustained, well-structured procurement activity tied to federal orphaned wells remediation grants, with repeat engagement from prequalified contractor lists and Davis-Bacon compliance as consistent requirements across issuing bodies.