20210429_Final_KFO_Orphaned_Fossil_1_SOW.docx

2021 Statement of Work for Kemmerer Field Office Fossil #1 Well Plugging and Site Reclamation

The Bureau of Land Management (BLM), Kemmerer Field Office, Kemmerer, WY has a requirement to plug a historical gas well and reclaim the well site in accordance with the attached procedure. The well is in Lincoln County, Wyoming.

A. Contract Requirements

1. The Contractor shall furnish all labor, materials, tools, and equipment required to execute and complete the work as specified in the government bid schedule.

2. The work shall include all steps necessary to improve/construct the access road, plug and abandon the well described in section C below, and reclaim the wellsite and constructed/improved areas of the access road.

3. Contractor must improve existing two-track (approx. one mile) so that plugging equipment may access the well site. This may include grading and culvert installation at washes. Width of bladed road shall not exceed 12 feet. Wash crossings will not exceed 16-ft of disturbance. Access road route is provided in Attachment 1, map Fossil #1 Access Road. Any deviation from the approved route will require prior approval from the BLM Contract Officer.

4. Contractor must construct two-track access (approx. 0.8 mile) from the end of the existing two-track to the well site. New two-track must be constructed to allow necessary plugging equipment to access the well. Width of road shall not exceed 12 feet. Access road route is provided in Attachment 1, map Fossil #1 Access Road. Any deviation from the approved route will require prior approval from the BLM Contract Officer.

5. If borrow or fill areas are required, sites must be identified and approved by BLM Contract Officer prior to disturbance. Areas approved for fill or borrow must be reclaimed per reclamation requirements.

6. Contractor must mobilize the appropriate equipment to the site and plug the well in accordance with the attached procedure.

7. The Contractor shall keep the premises in a sanitary condition and free from waste material or rubbish.

8. The Contractor is responsible for all hazardous fluid spills on the site, including any petroleum products, and shall immediately clean up and remove such contaminates from the site in accordance with Federal, State, and local regulations.

9. The Contractor is responsible for the prevention and suppression of fires on public lands caused by its employees, contractors, or subcontractors. During conditions of extreme fire danger, surface use operations may be limited or suspended in specific areas at the discretion of the BLM Contract Officer.

10. The well casing and all access ports shall be secured and sealed at all times of no activity in order to prevent contamination, vandalism, and safety mishaps. Emergency pit shall be fenced to prevent safety mishaps and keep wildlife from entering pit area.

11. All debris and equipment removed from the well shall be temporarily placed on plastic tarps or sheeting in order to prevent staining or discoloring of the native soil.

12. The Contractor shall cut off and properly dispose of that portion of the existing well casing at 3 feet below the surface. Plug and abandonment marker will be welded to remaining casing, 3-feet below surface, as specified in item D.5.F of this statement of work.

13. Upon completion of well plugging operations to the satisfaction of the BLM Contract Officer, the Contractor shall remove all trash, equipment, casings, pipe, and pumps. If there are any hydrocarbon spills, the spill must be removed, and the soil must be disposed of properly. The Contractor shall also dispose of all fluids produced during the cementing operations in an approved disposal facility.

14. The constructed portion of the access road (approx. 0.8 miles) must be fully reclaimed back to its original state by the Contractor. The Contractor must return the improved portion of the access road (approx. one mile) to its condition prior to improvement (two-track). This includes culvert and any added material removal, recontouring and seeding of any portions graded during access road improvement. Reclamation must be done to the satisfaction of the BLM Contract Officer.

B. General Information

1. This well is located in Sage Grouse Core Habitat (Core) and Sagebrush Focal Area (SFA), and is subject to the following timing limitations:

a. No surface use is allowed during March 15 – June 30

C. Well Information:

1. Location: The well is located in Lincoln County, Wyoming approximately 6.2 miles West of Kemmerer, Wyoming at the following location:

Access Road: From intersection of HWY 189 and HWY 30 near Best Western in Kemmerer, take HWY 30 West 8.3 miles to County Road 328. Turn left onto County Road 328 and drive South 0.1 miles to County Road 341. Turn left onto County Road 341 and continue straight for 0.8 miles. There will be a turn-off on the left-hand side of the road. Take the turn-off and proceed through the gate. If gate is closed, proceed through and close gate after entering. Well site is approximately 1.8 miles from gate. An existing two track extends about one mile and will need to be improved for equipment access; and the remaining 0.8 miles of access road will need to be constructed. See Attachment 1 for access road route.

2. Existing Surface Conditions:

The well site location is slightly inclined with a riparian area on the downhill side of the exposed casing. The ground elevation is roughly 6871 feet. Vegetation is mostly reeds in riparian area and sage brush uphill of the exposed casing. There is debris around the exposed casing, including an old water trough, wood, and rusted out 55-gallon drums. See Attachment 4 for pictures of wellsite.

3. Site Investigation Results:

Fossil #1 has three casing strings exposed at surface. There is no production equipment associated with the exposed casing. The original wellsite has been re-vegetated, and the original dimensions are unknown. The area surrounding the casing is sloped slightly. The exposed casing is leaking water, which has created a riparian area directly downslope of the casing. The fluid level in the innermost casing also shows some bubbling, indicating gas release. It is unknown if this is hydrocarbon-based or another gas. No H2S was detected onsite and is not expected; although it is recommended that a multimeter be used to assess site conditions before plugging operations begin and during operations. See Attachment 4 for pictures of wellsite.

4. Drilling History and Down Hole Conditions:

Fossil #1 records indicate that drilling commenced in 1902 and reached a measured depth of 750 feet. The plug back depth is unknown, although there is an obstruction near the top of the production casing. It is assumed this obstruction was placed with the intent to plug the well, however the material used is unknown and its placement was ineffective. The surface casing is approximately 12 inches. Weight, grade, and set depth are unknown. The intermediate casing is approximately 11.5 inches. Weight, grade, and set depth are unknown. The production casing is approximately 6 inches. Weight, grade, and set depth are unknown. Because of the age of the well, it is assumed that the casing is not API-standard. Records contain no information about cement and/or other isolating material used during drilling or plugback operations. Records do not indicate if any perforations exist within the wellbore and it is unknown if this is an open hole or cased completion.

All casing strings are currently open to atmosphere. The surface casing was cut at one point in the well’s history to allow water to flow into a nearby trough for livestock. However, the trough has fallen into disrepair and the leaking well no longer provides drinking water for livestock. Casing has also corroded over the years and has many visible holes at surface.

D. Product Specifications

1. Drilling mud: Bentonite, water, and weighting agent must be maintained on location should a well control issue arise after or while drilling out obstructions in wellbore. A minimum of 300 barrels of fresh water shall be maintained on-site. Adequate mud materials must be maintained on-site in order to achieve a minimum density of 9.0 pounds per gallon. The mud does not have to be premixed. Additives shall be environmentally safe, containing no heavy metals, and provided in sufficient quantities on the well site to contain wellbore pressure.

2. Cement: Cement used for plugs shall be API Class G, as specified in the task order. Dry weight of cement shall be 94 pounds per sack (sk). Dry bulk cement shall be delivered by truck. Cement shall conform to the following:

3. Cement Additives: Calcium Chloride (CaCl2) may be used to reduce wait-on-cement (WOC) time for the cement plugs. The BLM Contract Officer will determine, based on site conditions, when CaCl2 will be added to the cement. The amount of CaCl2 added to the cement slurry will be determined at the well site based on current conditions. A minimum of 500 lb of CaCl2 should be provided on location during plugging operations.

4. Water: Water used for drilling and cementing operations shall be potable water. The water shall be tested to ensure compatibility with cement. The Contractor shall submit a copy of the compatibility test to the BLM Contract Officer. Approximately 300 barrels of water are planned to be used during plug and abandonment operations.

5. Plugging Equipment:

A. Completion/Work Over Rig: The rig shall have the capacity to operate to a depth of at least 2500 feet. The rig shall be furnished with a crew and supervision. Provide the manufacturer’s name, size, and capacity for the rig and the following required accessory equipment:

1. Tubing tools for 2-7/8-inch tubing.

B. Well Control Equipment: Well control equipment must be used in the event the flow from the well increases during routine operations. Equipment must be rated to minimum of 2000 psi. Casing should be inspected to determine what type of well control equipment can be used with non-standard casing.

C. Circulating Equipment: The circulating equipment shall consist of the mud pump and mud tanks. The mud pump shall be capable of discharge volumes and discharge pressures required for the subject well.

D. Cementing Equipment: The cementing equipment shall be capable of either batch mixing or ‘on the fly’ mixing the cement slurry. Cementing equipment must be outfitted with a continuous reading densitometer, and appropriate density must be maintained throughout pumping operations. A mud/multi-purpose pump shall be provided that is capable of pumping the cement slurry to the plug depths as specified.

E. Storage Tanks – Well Fluids: A sufficient number of storage tanks shall be furnished to contain all well fluids circulated from the well during plugging operations.

F. Plug and Abandonment Marker: Shall be a metal plate at least ¼’’ thick and welded in place. A weep hole shall be left in the plate. The following shall be permanently inscribed on the plate:

1. BLM

2. Lease UNKNOWN

3. Fossil #1

4. SE¼NE¼ sec 23, T.21N., R.117W.

E. Pending Project Components There are various project components that must be completed before construction and/or plugging operations may commence. The following table details those components, who will complete the work, and when the work is estimated to be completed. Please note that many of these components are dependent on conducting on-site investigations, which may only be conducted when weather allows.

F. Attachments:

1) Maps showing the location of the well in this solicitation. More site-specific maps may be obtained by contacting the Contract Officer.

2) Proposed access road construction conditions

3) Proposed plugging procedure

4) Pictures of Fossil #1

5) Proposed reclamation procedure

Attachment 1: Maps showing Fossil #1 location.

Legend

Fossil #1

Legend

Fossil #1

Attachment 2: Proposed Access Road Construction Conditions

1. Access road design, improvement, and construction shall be done in accordance with BLM Handbook H-9115-1: Primitive Road Design.

2. In order for all necessary equipment to access the well pad, improvement and construction may be required including, but not limited to, culvert installation, blading, erosion control, etc. Interested bidders should visit the site to determine what improvements and construction will be necessary. Interested bidders are responsible to contact the BLM to schedule any onsite visits to ensure route is properly identified. Members of our staff may be invited to attend any on-sites in the initiation or planning phases of the project. Care should be taken to minimize impact to the environment.

3. Prior to construction, access road centerline must be flagged. Contractor must conduct on-stie with the BLM Contract Officer and appropriate specialists after access road is flagged and before any construction activities begin.

4. Newly constructed and improved access road may not exceed 12 feet in width. Any changes to the access road route shown in Attachment 1, map Fossil #1 Access Road, will require prior approval from the BLM Contract Officer.

5. If borrow or fill areas are required, sites must be identified and approved by BLM Contract Officer prior to disturbance. Areas approved for fill or borrow must be reclaimed per reclamation requirements.

6. The portion of the access road that is currently a two-track (approx. 1 miles) shall be returned to its current condition through appropriate reclamation. Recontouring and reclamation, including seeding must be done to the satisfaction of the BLM Contract Officer.

7. The portion of the access road that will be constructed for plugging operations (0.8 miles) must be fully reclaimed back to its original condition. Barriers or signs may need to be placed to inform public of in-process reclamation. Reclamation must be done to the satisfaction of the BLM Contract Officer.

Attachment 3: Proposed Plugging Procedure Fossil #1 SE¼NE¼ section 23, T.21N., R.117W.

Procedure:

NOTE: Procedure is subject to change based on situations that may arise during plugging operations. BLM Contract Officer will be onsite during operations should a procedure change need to be approved. Casing holes at surface may be indicative of parted casing or additional casing holes downhole at an unknown depth. Procedure will rely heavily on results from caliper log and CBL/VDL.

1. Before well pad construction may begin, operator is required to stake all four corners of the well pad and conduct an onsite with the BLM Contract Officer and appropriate specialists. Well pad may not exceed a total area of 250’ x 250’, and the maximum distance from the exposed casing to the edge of the pad may not exceed 125’. Any material brought in during well pad construction must be approved prior to use, and all materials must be removed after well plugging operations conclude.

2. Remove and properly dispose of debris around exposed casing.

3. Dig and line 10’ x 10’ x 8’ pit. Pit should be used in case of emergency only. Flowback should be directed to open-top tank unless otherwise approved by BLM Contract Officer.

4. Test rig anchors.

5. Install and test well control equipment.

6. RIH with 4-3/4’’ bit and scraper to 750’. Carefully monitor returns and fluid level throughout.

7. POOH and monitor fluid level. Top off with fresh water if necessary and monitor fluid level while rigging up logging equipment.

8. Run caliper log and CBL/VDL. Determine if cased or OH completion and depth of casing shoes, if possible. Adjust cement volumes and procedure if necessary, based on log interpretation. First plug should be squeezed if cased hole completion and balanced if openhole completion.

9. RIH with work string and tag bottom +/- 750’

10. Pull up off bottom and circulate bottoms up with fresh water.

11. Mix and pump approx. 50 sacks of cement for plug from 750’ to 400’ using Class G neat at 15.8 ppg. NOTE: cement volume subject to change depending on results of caliper log, at discretion of BLM Contract Officer.

12. POOH above calculated TOC, reverse circulate work string.

13. WOC at least 4-8 hours depending on CaCl2 use and associated cement thickening time to ensure the cement is properly set before the next plug is pumped.

14. POOH with work string, RIH with perforating equipment. Perforate production casing at 390’ with four holes at 90-degree phasing.

15. POOH with perforating equipment, RIH with packer. Set packer at +/- 340’ and establish an injection rate (do not exceed 100 psi pump pressure).

16. Mix and pump approximately 36 sacks of cement to squeeze casing annulus. Leave 100 ft cement plug in production casing.

17. POOH above calculated TOC, reverse circulate work string.

18. WOC at least 4-8 hours depending on CaCl2 used and associated cement thickening time to ensure the cement is properly set before the surface plug is pumped.

19. POOH with work string, RIH with perforating equipment. Perforate casing at 90’ with four holes at 90-degree phasing.

20. POOH with perforating equipment, RIH with packer. Set packer at +/- 40’ and establish an injection rate (do not exceed 100 psi pump pressure).

21. Mix and pump approximately 30 sacks of cement to squeeze.

22. Once good cement to surface through annulus, release packer and pump cement to fill production casing to surface, approx. 10 additional sacks of cement.

23. Cut off casing 3’ below ground level and top off all annuli as needed.

24. Weld in-place 1/4-inch-thick steel plate. Leave weephole. The following information will be permanently inscribed on the metal plate:

a. BLM

b. Lease UNKNOWN

c. Fossil #1

d. SE¼NE¼ sec 23, T.21N., R.117W.

Attachment 4: Pictures of Fossil #1

Attachment 5: Proposed Reclamation Procedure:

The final reclamation for the location and access road will be approximately 2.5 acres in total and will need to be conducted as follows:

1. Well bore will need to be cut off and capped approximately three feet below the final re-contoured surface elevation. The plugging location should not require recontouring but may require ripping if hand broadcast seeding (application rate should be minimum 1.5 times that of drill seeding as listed in seed application rate in table below) is to be used in the event drill seeding is not possible.

2. Level and re-contour all disturbed areas and reseed all disturbed areas, including wash banks with the seed mix listed below.

3. All culverts and road base, used to access the well bore, will need to be removed and wash banks stabilized with natural waddles or natural rip rap.

4. Well site and access road must be reclaimed to the satisfaction of the BLM Contract Officer.

Contractor-Furnished Seed: The seed will consist of the following seed mixture:

Fossil #1 Plugging-recommended seed mix

*Can Substitute any above with these two or also include in mix*

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