P03 CCUS Statement of Work Final 01 22 2024.pdf

PERFORMANCE WORK STATEMENT

FOR

Carbon Capture, Utilization, and Storage

Forecasting of Site Use January 22, 2024

Table of Contents

1 INTRODUCTION

1.1 Mission

1.2 Background

1.3 Scope

2 GENERAL REQUIREMENTS

2.1 Non-Personal Services

2.2 Contractor Personnel Qualifications

2.3 Key Personnel

2.4 Location and Hours of Work

2.5 Travel

2.6 Invoicing

2.7 Identification of Contractor Personnel

3 CONTRACTOR PERFORMANCE

3.1 Performance Objectives/Tasks

3.2 Deliverables/Schedule

3.3 Performance Requirements Summary

4. SPECIAL REQUIREMENTS

4.1 Security

4.2 Government Furnished Property (GFP), Equipment (GFE), Information (GFI), and/or Services.

4.3 Applicable Documents

No Applicable Documents

4.4 Restrictions Against Disclosure

4.5 Organizational Conflicts of Interest

4.6 Insurance

1 INTRODUCTION

The United States Department of Agriculture (USDA) – Natural Resources Conservation Service (NRCS)

– Alabama State Office requires environmental consulting services about the potential use of a site for Carbon Capture, Utilization, and Storage (CCUS) by an entity who holds outstanding carbon sequestration rights and a surface use agreement.

1.1 Mission

The NRCS Alabama State Office makes decisions with respect to whether the Agency should purchase a conservation easement under the Healthy Forest Restoration Program (HFRP) based in part on whether the property that will be subject to the conservation easement has any outstanding rights in third parties that are not compatible with the use of the site for HFRP purposes.

1.2 Background

Through HFRP, the NRCS Alabama State office helps Alabama landowners restore, enhance and protect forestland resources on private and tribal lands through the purchase of an HFRP easement. Under the terms of an HFRP easement, NRCS ensures the long-term viability of the forestland resources to promote the recovery of endangered or threatened species, improve plant and animal biodiversity, and enhance carbon sequestration.

In return for receiving payment for the easement, the landowner must convey title to the easement that is acceptable to the NRCS. In particular, the landowner must warrant that the easement granted to the United States is superior to the rights of all others, except for encumbrances to the title that are deemed acceptable by the NRCS. NRCS uses the Department of Justice (DOJ) title standards to ensure clear title and will only proceed to pursue an easement transaction if an outstanding right, such as CCUS rights that are held by third parties must be evaluated by NRCS and a determination made as to the acceptability of each existing recorded exception to the title.

NRCS determines acceptability based on the impact the exception on NRCS’s ability to achieve the purposes of the program and the potential of these exceptions to undermine or interfere with the rights the United States is acquiring under the terms of the HFRP easement.

1.3 Scope

The purpose of this effort is to obtain consulting services to the NRCS Alabama State office regarding the scale, scope, and intensity of the potential use of two tracts of land in Baldwin County, Alabama for carbon capture, utilization, and storage, and the estimated impacts that could occur to the surface estate.

The two tracts are subject to carbon sequestration rights and a surface use agreement that provide to a third-party the the right to use the surface and subsurface of the tracts for the injection, disposal, and permanent sequestration of CO2 and associated gases, substances and vapors in the Sequestration Formation, including numerous identified rights for developing, maintaining, and operating a gas injection, disposal, and sequestration project in the Sequestration Formation.

The NRCS Alabama State Office does not have subject matter expertise in CCUS, and therefore is unable to ascertain the potential scale, scope, and intensity of the development of the two tracts for CCUS purposes may be. Additionally, the NRCS Alabama State Office requires consulting services to understand potential direct and indirect impacts to the surface estate if used for CCUS generally and the extent to which HFRP purposes could be compromised specifically.

HFRP purposes are outlined at 16 U.S.C. 6571 et seq. and 7 CFR Part 625. The purposes of the proposed HFRP easement in Baldwin County, Alabama is to further the habitat needs of the Gopher Tortoise and other at-risk species in proximity to the easement area. The location of the proposed

HFRP easement, of approximately 3750 acres in size, more or less, is in §§19, 20, 21, 22, 27, 28, 29, 30, and 31 of Township 3 South, Range 5 East, Baldwin County, Alabama (see Attachment 1).

The responsibilities the NRCS Alabama State Office have for evaluating the outstanding rights is outlined in Section 2.2.1 of the Department of Justice (DOJ) title standards (see appendix).

The scope of the work required is to generate a report that includes but renarrative and associated maps of what the potential use of the tracts for CCUS are anticipated to be given the location and physical attributes of the site with the outstanding carbon sequestration rights and surface use agreement held by a third party. The report must address the direct and indirect impacts to the surface estate and also a risk assessment of the potential for compromising the HFRP purposes were there an HFRP conservation easement placed on the tracts. In particular, at a minimum, the report should identify the scope, scale, and intensity of potential development maintenance and operation of a CCUS project on the subject tracts, including–

1) The potential number of wells per acre that could be drilled.

2) The type, scale, and scope of facilities, utilities, roads, fixtures, structures, equipment and appurtenances that would be necessary to utilize the site as a CCUS project.

3) The anticipated acres of forest that would be removed or impacted by such activities.

4) The likelihood of leaks and spills occurring during the drilling, injection, or sequestration at a

CCUS site and potential long term impacts to the surrounding plant and animal habitats.

The final report must communicate clearly the findings and risk assessment of the impact on HFRP purposes if a CCUS project was developed to the full extent possible with the rights, regulatory framework, and site potential on the two tracts. NRCS will use the report to support its determination whether the outstanding CCUS rights will interfere or not with the purposes for which NRCS is purchasing an HFRP easement on the two tracts. NRCS will provide to the contractor any documents in NRCS Alabama’s possession that relate to the outstanding carbon sequestration rights, surface use agreement, and program purposes for which an HFRP conservation easement is being considered.

2 GENERAL REQUIREMENTS

This section describes the general requirements for this effort.

2.1 Non-Personal Services

The Government shall neither supervise Contractor employees nor control the method by which the Contractor performs the required tasks. Under no circumstances shall the Government assign tasks to, or prepare work schedules for, individual Contractor employees, we will ask for a schedule from the site lead, for better coordination with government personnel. It shall be the responsibility of the Contractor to manage its employees and to guard against any actions that are of the nature of personal services, or give the perception of personal services. If the Contractor believes that any actions constitute, or are perceived to constitute personal services, it shall be the Contractor’s responsibility to notify the Contracting Officer, in writing, immediately.

2.2 Contractor Personnel Qualifications

The Consultant must have a minimum of one year prior experience working on Carbon Capture, Utilization, and Storage (CCUS) projects, either working on commercial development of projects and/or regulation of CCUS project activities.

The Contractor shall accomplish the assigned work by employing and utilizing personnel who meet the following qualifications:

1. Understanding of potential direct and indirect surface impacts of a CCUS project on forestry resources

2. Experience developing feasibility studies and modeling of CCUS projects

3. Ability to forecast the development potential and make associated risk assessments of CCUS projects in Alabama

2.3 Key Personnel

No Key Personnel are required.

2.4 Location and Hours of Work

Contractor shall conduct work from contractor’s facilities, no access to government facilities is required for this performance.

The Contractor shall be responsible for establishing their work hours under this contract, except when access to a Federal facility is required, in which case the Government may limit the Contractors access-based availability of agency employees. However, Contractor employees in possession of a valid HPDS-12 PIV-II Compliant Credential (e.g., LincPass) can work unaccompanied at government locations upon Government approval. See Section PWS 4.1 for additional information.

Weather and security closures by their nature usually arise without advance notice. As such, the Government will notify the Contractor as soon as possible once any closures have been announced.

2.5 Travel

Travel under this contract, including all 50 states, possessions and/or territories, may be required when the need arises. The Government will provide the Contractor with a minimum of two weeks’ notice for any travel required. The Contractor is responsible for making their own travel reservations and paying the associated costs. All travel requirements (e.g., plans, agenda, itinerary, or dates) shall be pre-approved by the Government and is on a strictly cost reimbursable basis. Costs for travel shall be billed in accordance with the cost principles at Federal Acquisition Regulation section 31.205-46 “Travel Costs” and the Federal Travel Regulation.

The Contractor shall provide a trip report and supporting documentation with the invoice for reimbursement. Travel costs must be broken down by the individual traveler and documentation supporting the costs being invoiced must be attached and clearly indicate the traveler it is associated with.

All travel costs shall be billed within 30 calendar days after travel is complete unless an approval for later billing is approved by the Contracting Officer. Failure to provide adequate documentation may result in denial of reimbursement. Local commuting costs are the responsibility of the Contractor. Travel is considered an other direct cost.

2.6 Invoicing

Invoices are to be submitted IAW the successful completion of the deliverables/schedule in section 3.2 SOW. Upon successful completion (which includes submittal of required deliverables) of each item in 3.2, submit an invoice within 30 calender days of the completion of tasks.

Invoices must be submitted electronically through the Invoice Processing Platform (IPP) system and in accordance with the payment clause(s) in the contract.

2.7 Identification of Contractor Personnel

Contractor employees, including subcontractors, who attend meetings, send emails, answer Government telephones or place calls, or work in situations where their actions could be construed as acts of Government officials, must clearly identify themselves as Contractor employees.

3 CONTRACTOR PERFORMANCE

This section describes the work that must be performed to achieve the required objectives, performance/delivery timing, and the associated performance standards (e.g., acceptable quality levels) that must be met in order for the service to be acceptable.

3.1 Performance Objectives/Tasks

3.1.1 Compile Location Documentation and Information

3.1.1.1 Title, Geophysical, and related land use information

3.1.1.2 Statutory, regulatory, and related restrictions related to CCUS

3.1.1.3 Site visit if necessary to collect field data

3.1.2 Analysis

3.1.2.1 Forecast of potential scope, scale, and intensity if tracts become CCUS project

3.1.2.2 Map depiction of potential scope, scale, and intensity if tracts become CCUS project

3.1.3 Preliminary Report

3.1.3.1 Preliminary assessment of forestry impacts, including acres of trees projected to be removed to facilitate CCUS project

3.1.3.2 Preliminary assessment of impacts to forest biodiversity, at-risk species habitat, and surface carbon sequestration if project becomes CCUS project

3.1.3.3 Preliminary Summary of Findings of Potential Direct and Indirect impacts of potential CCUS project to Surface Estate

3.1.3.4 Maps and appendices of source documents

3.1.4 Final Report

3.1.4.1 Address Agency questions to Preliminary Report

3.1.4.2 Submit Final Report to Agency POC

3.2 Deliverables/Schedule

Timely completion of deliverables is essential to a successful outcome. Below are the required due dates for each performance objective. The deliverables are to be sent to Jason Gardner, in a cross-platform data suite such as Microsoft Excel. Any questions regarding due dates, issues, or clarifications of samples will also be directed to Mr. Gardner.

Jason Gardner Assistant State Conservationist - Programs

USDA/NRCS

Auburn State Office 3381 Skyway Drive Auburn, Al 36830 334-887-4541 Office 334-321-1685 Cell

Item No.

Deliverable Performance Objective/Task Due

1 Compile Location Documentation and Related Land Use Information

PWS Section 3.1.1. Within 30 days of contract

2 Analysis PWS Section 3.1.2. Within 15 days of completion of PWS 3.1.1.

3 Preliminary Report PWS Section 3.1.3. Within 10 days of completion of PWS 3.1.2.

4 Final Report PWS Section 3.1.4. Within 10 days of receiving agency comment to completion of PWS 3.1.3.

3.3 Performance Requirements Summary

The Performance Requirements Summary (PRS) establishes a minimum performance standard for each performance objective/task that must be met for the work to be considered acceptable. Contractor performance not meeting these standards is considered nonconforming. At its discretion, the Government may require reperformance of nonconforming services at no increase in contract price. If reperformance will not correct the defects or is not possible, the Government is entitled to an equitable price reduction or adequate consideration for acceptance of nonconforming services and/or supplies. The absence of any contract requirement from this PRS shall not detract from its enforceability nor limit the rights or remedies of the Government under any other provision of the contract for noncompliance.

PWS

Section

Performance Objectives/Tasks Performance Standards and Acceptable Quality Levels

3.1.1 Compile Location Documentation and

Related Land Use Information

Must compile documentation sufficient to make a credible determination of the potential impact to forestry and related surface resources by the potential use of the site for a CCUS project

3.1.2 Analysis Analysis of potential impact must be

sufficient upon which to make a determination of whether the CCUS project will interfere with HFRP purposes

3.1.3 Preliminary Report The preliminary report must have clear and concise phraseology sufficient to communicate preliminary findings to reviewers that have little technical background in CCUS projects. Maps must be legible, have clear key for features depicted, and be oxf a scale that is readily duplicated with report.

3.1.4 Final Report The final report must be of professional

quality with few or no typographical errors. The report should be on 8x11 paper, single spaced, with Times New Roman 12 font. The final report must communicate clearly the findings and risk assessment of the impact on HFRP purposes if a CCUS project was developed to the full extent possible with the rights, regulatory framework, and site potential on the two tracts.

4. SPECIAL REQUIREMENTS

This section describes the special requirements that apply to this contract. The following sub-sections provide additional detail for each requirement.

4.1 Security

Non-Applicable, the government is not using government facilities or government furnished equipment.

4.2 Government Furnished Property (GFP), Equipment (GFE), Information (GFI), and/or Services.

Not Applicable, not GFP or GFE or GFI will be issued or given to contractor.

4.3 Applicable Documents

No Applicable Documents

4.4 Restrictions Against Disclosure

The Contractor agrees, in the performance of this contract, to keep all information contained in source documents or other media furnished by the Government in the strictest confidence. The Contractor also agrees not to publish or otherwise divulge such information in whole or in part, in any manner or form, nor to authorize or permit others to do so, taking such reasonable measures as are necessary to restrict access to such information while in the Contractor’s possession, to those employees needing such information to perform the work provided herein (e.g., on a "need to know" basis). The Contractor shall to immediately notify the Contracting Officer, in writing, in the event that the Contractor determines or has reason to suspect a breach of this requirement.

The Contractor agrees not to disclose any information concerning work under this contract to any persons or individual unless prior written approval is obtained from the Contracting Officer. The Contractor agrees to insert the substance of this clause in any consultant agreement or subcontract hereunder.

Performance of work may involve access to potentially sensitive information about governmental and landowner issues. All Contractor personnel shall comply with the terms of AGAR clause 452.224-70 (Confidentiality of Information), as well as provisions of the Privacy Act of 1974 (5 U.S.C. 552a) Additionally, the Contractor’s personnel shall comply with privacy of personal information relating to agency programs in accordance with Section 1244 of Title II of the Farm Security and Rural Investment Act of 2002 (P.L. 107-171) and Section 1619 of Title I of the Food, Conservation, and Energy Act of 2008. The Contractor’s employees shall not disclose contents of agency case files and/or records to anyone other than authorized United States Department of Agriculture employees without the express written consent of the Freedom of Information Act and Privacy Act Officer, through the Contracting Officer.

4.5 Organizational Conflicts of Interest

The Contractor acknowledges that it is familiar with Federal Acquisition Regulation (FAR) Subpart 9.5, Organizational and Consultant Conflicts of Interest, and agrees to avoid, neutralize or mitigate such conflicts of interest in accordance with the principles set forth in the FAR. If the performance would require the Contractor, including subcontractors, to provide services related to systems or projects with which the Contractor is already directly concerned, either by prime or subcontract, that would cause an organizational conflict of interest, the Contractor shall immediately notify the Contracting Officer, in writing, and not perform the work until direction is provided by the Contacting Officer.

4.6 Insurance

Non-applicable to this contract, contractor will be utilizing own facilities

Attachment 1 – Location of Proposed HFRP Easement