04_SOW_PVU_2nd_Well_Eng_Design.pdf

U.S. Department of the Interior Bureau of Reclamation

Paradox Valley Unit 2nd Well Design

Solicitation No. 140R4018R0010

Attachment A - Statement of Work

Acquisitions Management Division Salt Lake City Regional Office

Paradox Valley Unit – 2nd Injection Well Engineering Design Statement of Work

1. OBJECTIVE

The objective of this contract is to acquire contractor services to develop a 30% engineering design of a deep brine injection well and associated surface facilities which can be utilized for analysis in the Paradox Valley Unit (PVU) Environmental Impact Statement (EIS).

1.1 BACKGROUND

The PVU was constructed to assist in meeting the objectives and standards of the Federal Water Pollution Control Act of 1948 (P.L. 80-845) and the Colorado River Basin Salinity Control Act of 1974, as amended and supplemented (P.L. 93-320). The Salinity Control Act authorizes the construction, operation, and maintenance of works in the Colorado River Basin to control the salinity of water delivered to users in the United States and Mexico. Because the existing brine injection well may be nearing the end of its useful life, Reclamation is considering multiple alternatives for addressing long-term, sustainable management of the brine. One of the long-term alternatives being considered is a new deep injection well to replace the existing well.

The PVU is located along the Dolores River in the Paradox Valley of Montrose County, Colorado, about ten miles east of the Colorado-Utah state line. The Dolores River is a major tributary to the Colorado River. The Paradox Valley was formed from the collapse of a salt anticline (dome). Groundwater flowing across the top of this salt dome creates a highly saturated brine. The PVU is designed to prevent this natural salt load from entering the river and degrading the water quality of the main stem of the Colorado River. Using a field of shallow brine extraction wells, the PVU currently intercepts 176 gpm of 260,000 mg/l brine and diverts it to a 16,000’ deep injection well for disposal. PVU brine also contains hydrogen sulfide (H2S) which is dangerous to human and wildlife health and is corrosive to processing equipment. Typical dissolved H2S concentrations average 80 mg/L and has resulted in elemental sulfur deposition in the existing well. The injection rate has been curtailed during the 20 year life of the well due to induced seismic activity associated with the injection process. The unit is one of the most effective salinity control projects in the Colorado River Basin and provides about ten percent of the total salinity control in the Colorado River.

The PVU injection rate is currently about 6,000 barrels of brine per day, resulting in the disposal of about 90,000 tons of salt per year. Because of the relatively low permeability of the target injection formation, brine injection at these rates results in surface pressures of approximately 5,000 psi, and down-hole pressures of approximately 12,000 psi, which is above the fracture closure pressure of the injection formation. The target injection formation is a Mississippian-age limestone. Additional information about the geology and background of the project may be found in the following reference: King, V.M., et al., Geological structure of the Paradox Valley Region, Colorado, and relationship to seismicity induced by deep well injection. Journal of Geophysical Research: Solid Earth, 2014. 119(6): p. 4955-4978.

Reclamation is conducting technical studies to appraise drilling and completing a second deep disposal well in the vicinity of Paradox Valley, including the drilling and completing of one or more exploratory wells, and the testing and logging of those wells. Reclamation will focus on specific sites that are likely to have suitable reservoir and operational properties. These sites have been identified by Reclamation, based on results from separate studies, such as interpretation of seismic reflection data, well data, formation properties, aeromagnetic data, geologic structure, induced seismicity, environmental impacts, and the feasibility of constructing and operating surface infrastructure.

2.0 REFERENCES

The following list of documents are required in the performance of this contract:

Number

Title and Edition

Date

Source

1 Geological structure of the Paradox Valley Region, Colorado, and relationship to seismicity induced by deep well injection

2014 Journal of Geophysical Research: Solid Earth, 119(6): p.

4955-4978

2 Deep Well Appraisal and Feasibility Study June 15, 2017 Bureau of Reclamation – Prepared by Petrotek Engineering Corporation

3 Integrated Subsurface Geologic Model, Paradox Valley, Colorado, Technical Memorandum 85-833000-2017-15

July, 2017 Bureau of Reclamation

4 Case History of an Ultradeep Disposal Well in Western Colorado

March, 1990 SPE Drilling Engineering, 5(1): p.

39-44

5 PVU #1 Drilling Logs and Reports DVD July, 2017 Bureau of Reclamation

* Documents listed above will be provided to all vendors at the site visit or upon receipt of Attachment C – Federal Non-Disclosure Agreement form 7-2577. Potential vendors must submit the non-disclosure agreement form and pre-register for the site visit at least 24 hours prior to the visit.

3.0 TASKS

Guidance for completing tasks:

1. The information compiled in the final report will be utilized in analysis of the replacement injection well alternative of the PVU EIS.

2. The contractor shall have a kick-off meeting with Reclamation to cover the contract details before beginning work.

3. The contractor shall have biweekly progress meetings with Reclamation during the period of performance. The meetings shall be 1 hour duration, and shall be conducted via WebEx or equivalent online service provided by Reclamation.

4. The contractor shall sign a conflict of interest disclosure statement as provided by Reclamation before beginning work.

5. The design flow rate of the injection well shall be 200 gpm.

6. Design life of the injection well shall be 50 years. The injection well shall be designed such that standard sized tools can be utilized during future logging and maintenance operations.

7. All potential sites will be identified to the contractor by Reclamation, based on separate studies, such as interpretation of seismic reflection data, well data, formation properties, aeromagnetic data, geologic structure, induced seismicity, environmental impacts, and the feasibility of constructing and operating surface infrastructure. This will include an assumed lithology for each site, including depth to the target injection formation, salt thickness, and other properties determined from seismic reflection data, logs from existing wells in the area, etc. This data will be provided by Reclamation.

8. Surface facilities include at a minimum: a building to house the infrastructure, all equipment and supporting features necessary to accept the brine from a pipeline at 10 psi, perform freshwater mixing, pressurization of the injection tubing, pressurization of the wellbore annulus, and delivery of the high-pressure brine to the injection well connection. This should include all electrical and motor control panels. The contractor will not be responsible for identifying costs of providing electrical service or the brine conveyance system to the injection facility. However, the contractor shall identify assumptions including injection site utility requirements.

9. COST ESTIMATING GUIDANCE: For the purposes of the PVU EIS, the cost estimate should be based on information and data obtained during investigations for each alternative. These investigations shall provide sufficient information to permit the preparation of preliminary layouts and designs from which approximate quantities for each kind, type, or class of material, equipment, or labor may be obtained. These estimates are used to assist in the selection of a preferred plan, to determine the economic feasibility of a project, and to support seeking construction funding from Congress. The cost estimate should show a 10 percent allowance for Unlisted Items and 25 percent for Contingencies. All estimates should be for the construction costs for the alternatives.

Allowance for design and contract management costs should be included in separate line items.

10. The contractor’s analysis shall use a consistent methodology for all sites so that the results can be compared.

11. The analysis shall be documented in a first draft, a second draft, and a final written report.

For the Monogram Mesa No.1 site the contractor shall perform the following tasks:

Approximate vertical depth to target – 14,500 feet Approximate horizontal offset to target – 4,000 feet

Task MM-1: Evaluate the wellsite selected by Reclamation and comment on the suitability of the proposed site.

1. Identify potential problems and risks of the proposed wellsite from an engineering standpoint.

2. Provide judgement on likelihood of obtaining an operational well which will function for the design life.

Task MM-2: Develop a 30% engineering design of an exploratory well that will be used to test formation properties.

1. Design a well plan for the exploratory well.

2. Identify data to be collected.

3. Identify well monitoring technologies which should be incorporated during the well development stage for monitoring operations such as a fiber-optic sensor string behind the well casing.

4. Evaluate the feasibility of completing the exploratory well for use as a long term observation well.

5. Develop exploration well cost estimate and as separate line items, the cost of converting the exploratory well to a long term observation well and the cost to plug and cap the exploratory well.

Task MM-3: Develop a 30% design of a class V injection well.

1. Design a well plan for the injection well.

2. Identify data to be collected and what will be determined as a result.

3. Identify well monitoring technologies which should be incorporated during the well development stage for monitoring operations.

4. Considering the brine characteristics, downhole pressure and temperature, provide engineering and metallurgy services to design the injection tubing string required to inject the brine into the disposal formation.

5. Develop an injection well cost estimate.

Task MM-4: Develop a 30% design of the injection pumping plant and appurtenant surface facilities.

1. Develop a cost estimate for the injection pumping plant and appurtenant surface facilities.

i. Assume the injection pumping plant will not have on-site operators. Automation should permit emergency shutdown but does not need the ability to restart without an operator.

2. Develop annual operating and maintenance cost estimates and identify life of major facility components.

3. Identify major tasks and costs if the well must be plugged and abandoned for any reason.

Task MM-5: Schedule

1. Develop a theoretical schedule which includes all major tasks to be completed in the injection facilities and well construction.

For the Brine Injection Facility No. 2 site the contractor shall perform the following tasks:

Approximate vertical depth to target – 13,700 feet Approximate horizontal offset to target – 11,000 feet

Task BIF2-1: Evaluate the wellsite selected by Reclamation and comment on the suitability of the proposed site.

1. Identify potential problems and risks of the proposed wellsite from an engineering standpoint.

2. Provide judgement on likelihood of obtaining an operational well that will function for the design life.

Task BIF2-2: Develop a 30% engineering design of an exploratory well.

1. Design a well plan for the exploratory well.

2. Identify data to be collected.

3. Evaluate the feasibility of completing the exploratory well for use as a long term observation well.

4. Develop exploration well cost estimate and as separate line items, the cost of converting the exploratory well to a long term observation well and the cost to plug and cap the exploratory well.

Task BIF2-3: Develop a 30% design of the injection well

1. Design a well plan for the injection well.

2. Identify data to be collected.

3. Identify well monitoring technologies which should be incorporated during the well development stage for monitoring operations.

4. Considering the brine characteristics, downhole pressure and temperature, provide engineering and metallurgy services to design the injection tubing string required to inject the brine into the disposal formation.

5. Develop an injection well cost estimate.

Task BIF2-4: Develop a 30% design of the injection pumping plant and appurtenant surface facilities.

The existing surface facilities for PVU #1 are near this proposed well location and the ability to reuse existing facilities to the greatest extent practicable should be investigated and reported.

1. Develop a cost estimate for the injection pumping plant and appurtenant surface facilities.

i. Assume the injection pumping plant will not have on-site operators. Automation should permit emergency shutdown but does not need the ability to restart without an operator.

ii. Evaluate the existing injection facility components for re-use in the well location.

2. Develop annual operating and maintenance cost estimates and identify life of major facility components.

3. Identify major tasks and costs if the drilled well must be plugged and abandoned for any reason.

Task BIF2-5: Schedule

1. Develop a theoretical schedule which includes all major tasks to be completed in the injection facilities and well construction.

For the Brine Injection Facility No. 3 site the contractor shall perform the following tasks:

Approximate vertical depth to target – 13,700 feet Approximate horizontal offset to target – 6,300 feet

Task BIF3-1: Evaluate the wellsite selected by Reclamation and comment on the suitability of the proposed site.

1. Identify potential problems and risks of the proposed wellsite from an engineering standpoint.

2. Provide judgement on likelihood of obtaining an operational well that will function for the design life.

Task BIF3-2: Develop a 30% engineering design of an exploratory well

1. This exploratory well is the same as identified for Task BIF2-2.

Task BIF3-3: Develop a 30% design of the injection well.

6. Design a well plan for the injection well.

7. Identify data to be collected.

8. Identify well monitoring technologies which should be incorporated during the well development stage for monitoring operations.

9. Considering the brine characteristics, downhole pressure and temperature, provide engineering and metallurgy services to design the injection tubing string required to inject the brine into the disposal formation.

10. Develop an injection well cost estimate.

Task BIF3-4: Develop a 30% design of the injection pumping plant and appurtenant surface facilities.

The existing surface facilities for PVU #1 are near this proposed well location and the ability to reuse existing facilities to the greatest extent practicable should be investigated and reported.

4. Develop a cost estimate for the injection pumping plant and appurtenant surface facilities.

i. Assume the injection pumping plant will not have on-site operators. Automation should permit emergency shutdown but does not need the ability to restart without an operator.

ii. Evaluate the existing injection facility components for re-use in the well location.

5. Develop annual operating and maintenance cost estimates and identify life of major facility components.

6. Identify major tasks and costs if the drilled well must be plugged and abandoned for any reason.

Task BIF3-5: Schedule

2. Develop a theoretical schedule which includes all major tasks to be completed in the injection facilities and well construction.

4.0 DATA, REPORTS and SCHEDULE

The contractor shall provide the following data and reports as follows:

Item No.

Description

Medium

Delivery

Item 1 Kick-0ff meeting On-site at PVU Within 2 weeks after award

Item 2 Conflict of interest disclosure PDF 7 calendar days after award to COR

Item 3

Provide a signed non-disclosure agreement to the Contracting Officer.

PDF 7 calendar days after award to COR

Item 4 Schedule of deliverables. 7 calendar days after award to COR

Item 5 Preliminary well design and cost estimate for both injection well sites.

MS Word, MS Excel, or PDF As proposed by contractor and agreed to by Reclamation

Item 6 First draft report in electronic format, including attachments. PDF and/or MS Word

Item 7 Second draft report in electronic format, including attachments.

PDF and/or MS Word

Item 8 Final report, including attachments.

3 paper copies, PDF and MS Word. Data attachments in compressed ZIP format.

120 calendar days after award to COR

5.0 DELIVERABLES

The contractor shall submit the following reports in accordance with paragraph 5.0, “DATA AND REPORTS”:

1. Signed conflict of interest disclosure statement must be provided to the COR. The conflict of interest form will be provided by Reclamation at the time of award.

2. Executed non-disclosure agreement (NDA) must be provided to the Contracting Officer. The NDA will be provided by Reclamation at the time of award.

3. Executed conflict of interest disclosure must be provided to the Contracting Officer. The conflict of interest disclosure will be provided by Reclamation at the time of award.

4. Preliminary well design and cost estimate for both injection well sites. Shall be provided in MS Word, MS Excel, or PDF format, as applicable. All electronic files shall be delivered in an unlocked format.

5. First draft report in electronic format, including attachments. The report shall be in PDF or MS Word format.

6. Second draft report in electronic format, including attachments. The report shall be in PDF or MS Word format. All electronic files shall be delivered in an unlocked format.

7. Final report, including 3 paper copies in addition to the electronic copy and attachments. Data attachments shall be provided in compressed ZIP format. All electronic files shall be delivered in an unlocked format.

NOTE:

1. The information provided in this contract may be utilized in the Paradox Valley Unit EIS. The contractor shall mark trade secret or confidential commercial or financial information contained in the proposal with the restrictive legends specified. The contractor shall also clearly and separately mark all proprietary information contained in the proposal with the restrictive legend “Proprietary Information”.

2. PERSONNEL QUALIFICATIONS: Contractor personnel shall provide resumes detailing education and employment history for the personnel who will perform the analysis. The resumes shall demonstrate at least 10 years of industry experience in the design, implementation and running of deep wells. It is expected that expertise in the fields of petroleum engineering, reservoir engineering, geo-mechanical and flow modeling, geophysics, or related fields will be needed. Documented past professional experience on deep injection well projects would be highly beneficial. It is preferred if the key personnel developing the well design have a Professional Engineer license.

3. GOVERNMENT FURNISHED MATERIALS OR SERVICES: The potential injection well sites will be identified to the contractor by Reclamation. Other data to be provided will include: interpreted 2D seismic sections, well logs, interpreted aeromagnetic data, interpreted gravity data, interpreted faults, interpreted formation horizons, and initial formation properties.

4. TRAVEL AND GOVERNMENT VEHICLE REQUIREMENTS: The contractor is encouraged to visit the existing PVU Brine Injection Facility to evaluate existing infrastructure. Government vehicles will not be provided for contractor use.

5. SECURITY: The contractor shall sign a non-disclosure agreement agreeing to the terms of Reclamation’s license to use proprietary seismic reflection data and interpretations. Any location site visits shall be coordinated with Reclamation personnel and occur during normal business hours.

6. ACCEPTANCE AND QUALITY ASSURANCE: The contractor shall notify Reclamation within 7 days of receipt of the identified sites and data, and shall report any issues with reading that information. The contractor shall prepare a draft report for Reclamation’s review, which will be completed on a date as proposed by the contractor and agreed to by Reclamation. The contractor shall remedy any deficiencies in the report identified by Reclamation, and shall submit a second draft for review. The contractor shall remedy any deficiencies identified and the final report shall be delivered to Reclamation within 120 calendar days after award.