JOFOC_REDACTED_1.pdf

United States Department of the Interior

BUREAU OF LAND MANAGEMENT

https://www.blm.gov

OLE OURCE ( NCLUD NG BRAND NAME) US IF CAT N AND APPROVA

O ACQUI I ON UNDE M D ACQUIS ON OCE U

This document sets forth the justification and approval as required by 13.106-1(b)(1) &(2).

1 on ra t ng ag ncy a d a iv y.

The Department of the Interior, Bureau of Land Management (BLM), Oklahoma Field Office requests the New Mexico State Office, 301 Dinosaur Trail, Santa Fe, NM 87508, to contract on a sole source (including brand name) basis.

2 N ure an /o d scrip ion o c i n being p rove

Oseberg is an oil and gas data information provider. They use publicly available information and transform it using proprietary methods. This allows oil and gas professionals to create automated processes increasing each professional’s efficiency.

De cr i n of u p ie o e v e .

Oseberg will mainly support the BLM through their drainage program (43 CFR 3162.2, 43 CFR 3100.2-1, MS-3160, PMDS). Other areas of support will include our idle well program (IM 2020- 006), our orphan well program (IM 2021-039) and our bond review program (IM 2019-014).

Purchasing an Oseberg subscription will be the first step in our process to automate many of our current manual processes. We will use the data Oseberg provides in conjunction with GIS functions that were written out of other Field Offices. This will allow us to have one-step document generation and drainage prioritization.

Our GIS team has been made aware of the potential purchase and has confirmed that we will be able to load data quickly and easily into our own systems.

From there it should take less than a month to start seeing preliminary results as GIS and Minerals work together to create automated processes.

im t d do ar v l e.

5 Statut ry uth r ty

_X__41 U.S.C. 1901 – Simplified acquisition procedures (use when the simplified procedures for purchases of property and services for amounts (1) not greater than the simplified acquisition threshold

____41 U.S.C 1903 – Special emergency procurement authority (applies when in support of a contingency operation as defined in section 101(a) of title 10 or to facilitate the defense against or recovery from nuclear, biological, chemical, or radiological attack against the United States).

6 Ra i n l s p o ng u o e a o i y sta e n ag ap 5

Diligence and drainage have produced an estimated multiple millions of dollars. This data would assist us with prioritization which would reduce our internal costs as well as accelerate the revenue gained from our D&D program.

This software will also increase our ability to process additional cases. This would include requests from the BIA, some of which are currently being outsourced to the IESC. Those IESC resources could be reallocated to higher priority projects within the BLM and BIA.

Currently, we have access to this data in files that have been uploaded to the OCC website.

These files are currently being combed through manually which can be very time consuming and inevitably lead to error. Oseberg provides a unique data set that can be combed through digitally and presented in a map format. No other company offers this data in a database format.

This procurement allows us access to additional information that can be distributed within the Oklahoma Field Office. Oseberg has a proprietary process to estimate production on a quicker timeframe than we currently have access to. This can lead to identifying value destructive activities more quickly and the government losing less revenue. Information such as Oklahoma Corporation Commission Increased Density Orders can be filed a year prior to the potential need for drainage production. This would allow the BLM to be PROACTIVE in identifying potential diligence and drainage issues.

Oseberg’s proprietary process provides data that can not be acquired elsewhere. The basis for the data provided is in the public realm available either digitally or as a hard copy from the State.

The data is then cleaned and fully made available digitally from Oseberg directly in multiple formats. No other contractor provides this service.

Currently a form data aggregator is being subscribed to for approximately $20,000/year. This product would replace and expand on that product which was recently bought by Enerdeq.

7 O h r in o ion

For Fiscal Year 2022 total estimated recoveries for drainage was $14,103,256. Approximately 988.75-man hours were used to identify and work potential drainage situations (PDS) in Fiscal year 2022. For the last quarter of 2022 there were 27 PDS reviewed. This has only generated approximately 2 active drainage cases by the 2nd quarter of 2023. Currently the estimated recoveries for 2023 are $0. Oseberg can allow for a more efficient and expedient use of man hours focusing drainage reviews on PDS that will yield greater estimated recoveries. Timing is important with drainage cases as the hydrocarbon ultimate recovery is dependent on completion efficiency. Completion efficiency is be defined as the ability to effectively deplete (produce all available hydrocarbons) a reservoir. A completion will be less successful after substantial production from offset wells. The offset production creates a pressure sink in which the completion will propagate instead of nearby rock containing untapped hydrocarbons. To explain in layman terms, water (the completion) run into a sink will move towards the drain (reduced pressure from the offset wellbore) and ignore the area away from the drain (BLM minerals). Thus, the increased speed of BLM recognition of drainage cases will likely increase the total hydrocarbon output and the royalty accumulated. Without Oseberg the workflow will continue to be a systematic approach to identifying PDS verses a strategic approach that will utilize manhours more efficiently while increasing the potential for drainage findings resulting in greater estimated recoveries.

8 he e fo ts i e i y ad i i na o ce in lu i g e ma ke e ea h o d e .

Market research was conducted by the program office prior to package submittal in an attempt to identify possible sources. The program office contacted commercial sources Enverus and S&P Global to determine if either company could provide the necessary data. Neither company could accommodate the Governments needs.

Upon receipt of the procurement package, the Contract Specialist issued a sources sought notice with a copy of the government’s Statement of Work via System for Award Management (SAM).

The sources sought notice requested capability statements from companies who could potentially address the requirements in the Statement of Work. The notice was issued from December 13, 2023 through December 19, 2023 which was adequate time for contractors to respond but no responses were received.

BLM has also posted a notice of intent to sole source per FAR 5.203.

9 Futur pl ns t p rm t comp tit n

The Bureau of Land Management makes every effort to remove or overcome barriers to competition before any subsequent acquisition for the supplies or services required.

Acquisitions personnel will continue utilizing bidding websites, Request for Information/Sources Sought, as well as other competitive procedures to promote full and open competition to the maximum extent practicable, when required. BLM acquisition personnel will continue researching the marketplace and communicating with other agencies, to determine if similar products and/or services can meet its needs in the future to remedy the restricted competition on future requirements of this technical nature.

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