RFP_5158-PZ_Drilling.pdf

May 15, 2014

REQUEST FOR PROPOSAL

RFP-5158-PZ

Project Description: Monitor Well Installation – Drilling Services at the Project Shoal Area in

Churchill County, Nevada

To: PROSPECTIVE OFFEROR

S. M. Stoller Corporation, Legacy Management Support Contractor to the Department of Energy Office of Legacy Management, invites your firm to submit a proposal for the work described in this Request for Proposal (RFP).

GENERAL PROPOSAL INSTRUCTIONS

Proposals for performing the work described in this RFP will be received as indicated below until 4:30 p.m. on Thursday, June 12, 2014. Proposals shall be based on a subcontract that will include all the provisions in the solicitation.

Proposals and modifications thereof shall be enclosed in sealed envelopes and addressed to the office specified in the solicitation. The Offeror shall show the hour and date specified in the RFP for receipt, the RFP number, and the name and address of the Offeror on the face of the envelope.

REQUEST FOR PROPOSAL RFP- 5158-PZ Due by 4:30 p.m. on June 12, 2014

Email or facsimile (fax) proposals may be submitted as responses to this solicitation. It is the Offeror’s responsibility to ensure that the proposal is transmitted to the appropriate fax machine or email address, and that the documents contain all required information and signatures. The responses must arrive at the appropriate place and time designated in the solicitation.

The Contract Administrator reserves the right to reject the email or fax proposal, award solely on the email or fax proposal, or request an original copy of the proposal prior to award. The Contractor is not responsible for any failure attributable to the transmission or receipt of the proposal, or for the security of the proposal.

The proposal shall list the names and telephone numbers of persons authorized to conduct negotiations.

RFP-5158-PZ Page 2 of 6

Submit proposals via facsimile to (970) 248-6684; electronically to contracts@lm.doe.gov; or mail to:

S. M. Stoller Corporation A public opening of the Attention: Julie Hendricks proposals will not occur!! 2597 Legacy Way Grand Junction, CO 81503

LATE PROPOSALS, MODIFICATION OF PROPOSALS, OR WITHDRAWAL OF

PROPOSALS

Any proposal received at the office designated in the RFP after the exact time specified for receipt will not be considered unless it is received before award is made and either:

• It is determined by Stoller that the late receipt was due solely to mishandling by Stoller after receipt at the designated installation.

• A proposal that is the only proposal received.

Proposals may be modified or withdrawn by fax or email notice received prior to award. A proposal may also be withdrawn in person by an Offeror or his authorized representative provided his identity is made known and he signs a receipt for the proposal if the withdrawal is made prior to award.

Notwithstanding the above provisions, a late modification of an otherwise successful proposal that makes its terms more favorable to Stoller will be considered at any time it is received and may be accepted.

DAVIS-BACON WAGES

Davis-Bacon wages shall be paid for this work. See Department of Labor (DOL) General Decision No. NV140024 dated 05/09/2014 for Davis Bacon Wages, which is included herein.

SCHEDULES

Notice of Award is anticipated by June 23, 2014 with a Notice to Proceed (Purchase Order) anticipated on July 9, 2014. The work is scheduled to begin on August 1, 2014 and be completed by September 30, 2014.

AWARD

Award will be made to the company offering the “Best Value” to S. M. Stoller Corporation for the work described, based on the technical factors and cost. Stoller reserves the right to reject any or all proposals and to waive informalities and minor irregularities to proposals received. Technical considerations are more important than cost for this solicitation and evaluation.

Stoller reserves the right to request a best and final offer; however, offerors should be advised mailto:contracts@lm.doe.gov

RFP-5158-PZ Page 3 of 6 that, although further discussions may follow receipt of proposals, the award may be made without a request for best and final offer or negotiations, and thus proposals should be submitted initially on the best quality of service, most favorable terms, price, completeness and other pertinent criteria. Stoller reserves the right to reject a proposal as non-responsive if it is materially unbalanced.

SUBMITTALS

Your proposal MUST include any submittal noted on the table below with a submittal due of “with proposal”:

Submittal

No. Authority Submittal Requirement No. of Copies Submittal Due

1. Solicitation Cover Letter Representations and Certifications, executed by an official authorized to bind the Offeror, is made a part of the proposal

1 With proposal

2. T&C Certificate of Insurance and Workman’s Compensation Insurance 1

General copy with proposal, copy naming Stoller & DOE 10 days after Notice of Award

3. T&C Performance & Payment Bonds 1 10 days after Notice of Award

4. Section 01020 OSHA 300 Form; for the last 3 years 1 With proposal

5. Section 01020 OSHA 300A Form; for the last 3 years 1 With proposal

6. Section 01020 Experience Modification Rate (EMR); for the last 3 years 1 With proposal

7. Section 01020 Lower-Tier Subcontractor OSHA 300 Form;

for the last 3 years 1 With proposal

8. Section 01020 Lower-Tier Subcontractor OSHA 300A Form; for the last 3 years 1 With proposal

9. Section 01020 Lower-Tier Subcontractor Experience Modification Rate (EMR); for the last 3 years 1 With proposal

10. Section 01020 List of Employees 1 With proposal and/or with Fit-for-Duty forms

11. Section 01020 Health and Safety Worksheet -GJ2079e 1 With proposal

12. Solicitation Technical Proposal Required Submittals * varies With proposal

13. Solicitation Signed Unit Price Schedule 1 With proposal

14. Solicitation Cover Letter or Section 01020

Subcontractor Hour Tracking Monthly Report LMS2146e 1 Monthly or with invoice, whichever is sooner

15. Solicitation Cover Letter or Section 01020 Fit for Duty Form (delete if in SOW/01020) 1 5 days prior to start of work

16. T&C Clause 26 Reporting

EPP Exemption Justification (if not purchasing EPP designated products) 1 Prior to purchasing non EPP designated products

17. T&C Clause 26 Reporting

Recycled/Biobased Content of designated Product Purchases 1 Quarterly or at Project

Completion, whichever is sooner

** Note: See section 7.5, Table 5 in the Statement of Work for additional submittal requirements.

SUBCONTRACTOR RESPONSIBILITY DETERMINATION

Stoller will determine subcontractor responsibility to successfully and safely perform this project through various means. Factors to be considered include, but are not limited to safety, past performance, references, and qualifications. Solicitations that require special standards of responsibility will include qualification requirements in the statement of work and/or technical evaluation criteria.

RFP-5158-PZ Page 4 of 6

Safety performance shall be evaluated based on information provided on the OSHA 300 and 300A forms, the Worker’s Compensation Experience Modification Rate (EMR) and performance reviews for previous projects. The evaluation shall take into consideration the OSHA total recordable case rate, the number of cases, rate and number of lost workday cases, number of lost workdays, severity of injuries, repetitive nature of injuries, and workers compensation factor based on the EMR. As a standard, the subcontractor should have a recordable case rate not exceeding 2.0 and an EMR not exceeding 1.0 (averaged over the past three complete years).

Companies with higher rates will require review and approval of Stoller Management.

Responsibility determinations shall be solely at the discretion of S. M. Stoller and shall not be subject to dispute. Stoller reserves the right to deny award to any company that is deemed non-responsible.

EXPLANATION TO OFFERORS

Any explanation desired by an Offeror regarding the meaning or interpretation of information contained in the Request for Proposal (RFP) must be requested in writing and with sufficient time allowed for a reply to return to the Offerors before the submission of the proposals. Oral explanation or instructions given before the award of the subcontract will not be binding. Any information given to a prospective Offeror concerning this RFP will be furnished to all prospective Offerors as an amendment of the RFP if such information is necessary to Offerors submitting proposals or if the lack of such information would be prejudicial to uninformed Offerors.

ACKNOWLEDGMENT OF ADDENDA TO RFP'S

Receipt of an addendum to a RFP must be acknowledged by an Offeror by returning the acknowledgement form before or with the proposal.

PERFORMANCE AND PAYMENT BONDS

(See Section 33.15 "Performance and Payment Bonds – Construction" FAR52.228-15 in the Terms and Conditions)

52.228-15 Performance and Payment Bonds—Construction.

Performance and Payment Bonds—Construction (Nov 2006)

(a) Definitions. As used in this clause— “Original contract price” means the award price of the contract; or, for requirements contracts, the price payable for the estimated total quantity; or, for indefinite-quantity contracts, the price payable for the specified minimum quantity. Original contract price does not include the price of any options, except those options exercised at the time of contract award.

(b) Amount of required bonds. Unless the resulting contract price is $100,000 or less, the successful offeror shall furnish performance and payment bonds to the Contracting Officer as follows:

(1) Performance bonds (Standard Form 25). The penal amount of performance bonds at the time of contract award shall be 100 percent of the original contract price.

(2) Payment Bonds (Standard Form 25A). The penal amount of payment bonds at the time of contract award shall be 100 percent of the original contract price.

http://www.acquisition.gov/far/current/html/FormsStandard4.html#wp1176615 http://www.acquisition.gov/far/current/html/FormsStandard5.html#wp1176623

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(3) Additional bond protection.

(i) The Government may require additional performance and payment bond protection if the contract price is increased. The increase in protection generally will equal 100 percent of the increase in contract price.

(ii) The Government may secure the additional protection by directing the Contractor to increase the penal amount of the existing bond or to obtain an additional bond.

(c) Furnishing executed bonds. The Contractor shall furnish all executed bonds, including any necessary reinsurance agreements, to the Contracting Officer, within the time period specified in the Bid Guarantee provision of the solicitation, or otherwise specified by the Contracting Officer, but in any event, before starting work.

(d) Surety or other security for bonds. The bonds shall be in the form of firm commitment, supported by corporate sureties whose names appear on the list contained in Treasury Department Circular 570, individual sureties, or by other acceptable security such as postal money order, certified check, cashier's check, irrevocable letter of credit, or, in accordance with Treasury Department regulations, certain bonds or notes of the United States. Treasury Circular 570 is published in the Federal Register or may be obtained from the:

U.S. Department of the Treasury

Financial Management Service Surety Bond Branch 3700 East West Highway, Room 6F01 Hyattsville, MD 20782.

Or via the internet at http://www.fms.treas.gov/c570/.

(e) Notice of subcontractor waiver of protection (40 U.S.C. 3133(c)). Any waiver of the right to sue on the payment bond is void unless it is in writing, signed by the person whose right is waived, and executed after such person has first furnished labor or material for use in the performance of the contract. (End of clause)

DISCRIMINATION

This subcontractor shall abide by the requirements of 41 CFR$$ 60-1.4(a), 60-300.5(a) and 60-741.5(a). These regulations prohibit discrimination against qualified individuals based on their status as protected veterans or individuals with disabilities, and prohibit discrimination against all individuals based on their race, color, religion, sex, or national origin. Moreover, these regulations require that covered prime contractors and subcontractors take affirmative action to employ and advance in employment individuals without regard to race, color, religion, sex, national origin, protected veteran status or disability.

http://www.fms.treas.gov/c570/

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DOCUMENTATION

This RFP consists of the following documents.

• RFP Cover Letter

• Statement of Work Specifications Doc. No. S11664, dated April 2014

• Unit Price Schedule

• Representations & Certifications - LM 2117e

• Health and Safety Worksheet -GJ2079e

• Performance and Payment Bond Forms

• Terms and Conditions – Construction and Drilling LMS 2126

• DOL General Decision No. NV140024, dated 05/09/2014

(These wage rates shall be paid to all applicable employees)

• Technical Proposal Instructions/Criteria

• EPP Exemption Justification Form

Questions concerning this RFP should be referred to the undersigned by calling (970) 248-6684 or emailing contracts@lm.doe.gov .

Sincerely, Julie Hendricks Contract Administrator rfpltr:5158-PZ mailto:contracts@lm.doe.gov

LMS/SHL/S11664

Statement of Work Monitor Well Installation – Drilling Services

Project Shoal Area

Corrective Action Unit 447

Churchill County, Nevada

April 2014

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U.S. Department of Energy SOW—Monitor Well Installation–Drilling Services, CAU 447, Shoal April 2014 Doc. No. S11664 Page i

Contents

1.0 Introduction

1.1 Site Location and Background

1.2 Subsurface Conditions

2.0 Objective and Scope

2.1 General Conditions and Requirements

2.2 Drill and Install Monitoring Wells

2.3 Optional Work

3.0 Requirements and Specifications

3.1 Subcontractor Equipment Requirements

3.2 Contractor-Furnished Items/Support

3.3 Acceptable Well Deviation and Additives

3.4 Source of Water and Other Utilities or Facilities

3.5 Equipment Cleaning

3.6 Drill Cuttings and Fluid Disposal

3.7 Maintenance

3.8 Intrusive Work

3.9 Working Near Energized or Pressurized Lines

4.0 Site Procedures

4.1 Site Access

4.2 Site Conditions

4.3 Loss of Drilling Equipment

4.4 Daily Drilling Report

4.5 Utilities Clearance and Considerations

4.6 Quality Assurance

4.7 Permits and Licenses

4.8 Material Storage Facility

4.9 Inventory

5.0 Health and Safety

6.0 Environmental Compliance

6.1 Environmental Management System

6.2 Specifications for Environmentally Preferable Purchasing Under Contractor

Purchase Orders/Subcontracts for Non-Construction Services

6.3 Waste Management

6.4 Spills

6.5 Inadvertent Cultural Resource Discoveries

7.0 Subcontractor Qualifications, Performance, and Other Requirements

7.1 Subcontractor Qualifications (may include site visit)

7.2 Workday and Rotation Schedule

7.3 Weather Days

7.4 Standby Time

7.5 Submittals

8.0 Schedule and Duration

SOW—Monitor Well Installation–Drilling Services, CAU 447, Shoal U.S. Department of Energy Doc. No. S11664 April 2014 Page ii

Figures

Figure 1. Site Location Map Figure 2. Directions to Site Map Figure 3. Proposed Well Locations Map Figure 4. Plan and Profile View of the HC-2 Well Head Figure 5. HC-2 Well Construction Diagram Figure 6. Monitoring Well Schematics Figure 7. Contractor Drilling Report

Tables

Table 1. Required Geophysical Logs for Wells MV-4,MV-5, and HC-2d Table 2. Summary of Borehole, Casing, and Stemming Materials Table 3. Summary of Pump Installation Specifications Table 4. Examples of Readily Available Biodegradable and Environmentally Friendly

Drilling Products Table 5. Project Submittal List

Attachments

Attachment 1 Standard 4.1 “Fire Prevention and Protection” (LMS/POL/S04321) Standard 5.1 “Safe Work Permits” (LMS/POL/S04321) Attachment 2 Emergency Contact Information with Route to the Hospital Attachment 3 Section 01020: Construction Health and Safety

Exhibit 1: Standard 3.2, “Hoisting and Rigging” Exhibit 2: Standard 3.5 “Fall Protection” Exhibit 3: Standard 10.2, “Lockout/Tagout for Energy Control”

Attachment 4 Drilling Health and Safety Requirements (LMS/POL/S04331)

1.0 Introduction

The U.S. Department of Energy (DOE) is managing the Legacy Management Program including the Project Shoal Area (PSA) in Churchill County, Nevada (Figure 1). This Statement of Work (SOW) describes the scope of services to be performed at PSA. The current primary contractor for the Office of Legacy Management will hereafter be referred to as the Contractor. Work will be administered from the Contractor’s Grand Junction, Colorado, office location. A detailed summary of the work scope is provided in Section 2.0.

1.1 Site Location and Background

The PSA can be accessed from Fallon by driving east on U.S. Highway 50 approximately 32 miles to the intersection of State Highway 839 (Figure 2). At the intersection, turn south (right) on State Highway 839 and proceed approximately 5 miles to the intersection of an unimproved dirt road. At this intersection, turn west (right) and proceed on the dirt road for approximately 4 miles and you will be at the site and/or near surface ground zero (SGZ).

The Project Shoal underground nuclear test was part of the Vela-Uniform program and was conducted on October 26, 1963. The test consisted of detonating a 12-kiloton nuclear device in granitic rock at a depth of approximately 1,211 feet (ft) below ground surface (bgs). A cavity created by the test collapsed shortly after the detonation and formed a rubble chimney. The radius of the cavity is reported to be 85 ft (26 meters). Site deactivation and post-shot drilling activities began on October 28, 1963. Re-entry drilling indicated that the Shoal rubble chimney extended approximately 356 ft above the shot point. A radioactive materials survey conducted at the site in 1970 indicated that there were no radiological levels on the surface that exceeded background levels for the area. The decontamination and restoration activities were minimal, because no large areas of contamination were found during or following the test. During this effort the emplacement shaft was covered with a concrete slab and the boreholes on the site were plugged and abandoned.

Radiological contamination at the Shoal site is restricted to the subsurface portions of the site, specifically within the bedrock and the groundwater in the vicinity of the detonation cavity and related collapse chimney. Proposed drilling and well completion activities described herein will not intersect the cavity or any potential zones of contamination, and no radioactive contamination is expected in the course of drilling. However, groundwater is the most likely transport medium for contaminant migration and the Contractor will monitor groundwater during the drilling process to ensure any contamination is identified immediately.

Figure 1. Site Location Map

Figure 2. Directions to Site Map

1.2 Subsurface Conditions

The PSA is in the northern portion of the Sand Springs Range in west-central Nevada’s Churchill County. The Sand Springs Range is the southern extension of the Stillwater Range, a north-northeast-trending fault block range that traverses Churchill County. The Sand Springs Range rises to an elevation of approximately 7,467 ft above mean sea level (amsl) and is flanked by Fourmile Flat to the west and Fairview Valley to the east (Figure 1). The Shoal Site is in Gote Flat at an elevation of approximately 5,250 ft amsl and is within an area that is part of the Cretaceous-age Sand Springs granitic pluton.

The Sand Springs pluton is composed of granodiorite and granite, aplite and pegmatite dikes, andesite dikes, rhyolite dikes, and rhyolitic intrusive breccia. Internal deformation of the Sand Springs granite is largely by high-angle normal faults that strike northeast and northwest, joints that parallel the northwest-trending faults, and fracture cleavages in minerals such as feldspar that generally parallel the northeast-trending faults. These faults, joints, and fractures are distributed between two dominant structural trends that generally strike N 50o W and N 30o E and are vertical to steeply dipping. Several dikes of varying composition predominantly follow the same two orientations and intrude along these lines of preexisting weakness. These orthogonal-type sets of faults and fractures appeared early in the history of the Sand Springs granite and affected much of the subsequent structural and chemical evolution of this large intrusion.

The water table is present beneath the site at depths ranging from approximately 975 to 1,090 ft bgs and groundwater moves primarily through fractures in the granite. Recharge occurs by infiltration of precipitation on the Sand Springs Range and regional discharge occurs in the adjacent valleys. A groundwater divide along the upland area of the range west of the site separates flow to the east and west. A shear zone, located about 1,500 ft east of the site (Figure 3), is interpreted as a barrier to flow due to disparate head levels in wells on either side of the shear zone. Groundwater in Fairview Valley to the east has been used for ranching, seasonal residence, and military purposes in the last 5 years.

2.0 Objective and Scope

Work under this subcontract shall be performed in accordance with all subcontract documents.

The work shall consist of performing all operations shown on specifications and other applicable subcontract documents, unless otherwise noted. Additionally, the subcontractor shall provide all labor, tools, equipment, materials, transportation, services, and incidentals as shown on specifications and all applicable subcontract documents, unless otherwise noted.

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Figure 3. Proposed Well Locations Map

2.1 General Conditions and Requirements

The requirements of the drilling program are as follows:

Drill and install two monitoring wells (MV-4 and MV-5) to a maximum depth of 2,100 ft bgs (Section 2.2.2). The monitoring wells shall be completed with electric submersible pumps and PVC water access tubes to allow collection of hydraulic head data.

Drill/deepen the existing well HC-2 to a maximum depth of 2,100 ft bgs (Section 2.2.3). The borehole is currently completed to a depth of 1,303 ft bgs and the well casing is hung (not cemented) to a depth of 955 ft bgs. The monitoring well shall be completed with an electric submersible pump and PVC water access tube to allow collection of hydraulic head data.

This well shall be relabeled as HC-2d upon completion of this work.

Optional Work:

Install a PVC water access tube in the water supply well HS-1 (Section 2.4). This will allow collection of hydraulic head data. The Contractor will decide if and when this work is conducted.

2.2 Drill and Install Monitoring Wells

The subcontractor shall install the wells using a rotary drilling method and an appropriately sized trailer- or truck-mounted drilling rig with suitable capacity to conduct drilling of the specified borehole sizes and depths. The drill rig shall be equipped with the necessary support equipment, including appropriately sized air compressors, boosters, and downhole tools required to complete drilling and construction of the monitoring wells to a maximum depth of approximately 2,100 ft bgs. Borehole deviation surveys shall be conducted every 300 ft as the borehole is advanced, and a geolograph shall record drilling parameters and penetration rates during drilling. The target deviation of the boreholes from vertical shall not exceed 3 degrees per 300 ft of vertical depth during advancement of the borehole. The maximum overall deviation of the borehole shall not exceed 5 degrees from ground surface to the total depth. Borehole deviation surveys, penetration rate, and all other pertinent information shall be recorded and provided as part of the daily drilling report (Section 4.4). The proposed well locations are shown in Figure 3.

Submittal: The subcontractor shall provide a detailed approach on the drilling method.

Submittal: The subcontractor shall specify the year, model, capacity, and rating of the drill rig and the number and type of the associated support equipment, including air compressor(s) and booster(s), as expected to be necessary to complete drilling to the planned depths.

Submittal: The subcontractor shall provide specifications for the drill pipe, bottom-hole tool assemblies, and deviation survey tool to be used to complete the drilling program.

2.2.1 Drilling Fluids

The preferred drilling fluids are air and water with foam or polymer(s) as additives. Additional additives, such as bentonite-based drilling fluids and lost circulation materials, may be used with the approval of the Contractor if borehole conditions deteriorate to the point of possible loss of the borehole. The subcontractor shall not use contaminating additives (e.g., diesel fuel, oil, barite), hydrocarbon-based lubricants (e.g., grease or oil), or biocides (e.g., formaldehyde) in the borehole or well. All drilling additives shall be approved for use in the State of Nevada and pre-approved by the Contractor prior to mobilizing to the site.

Water for the drilling activities shall be obtained from well HS-1 approximately 4 miles east of the proposed drilling locations (Figure 2). Only water from an approved source shall be used during the drilling process. All water used during drilling and well-completion activities shall be mixed with a dilute chemical tracer (sodium bromide) provided by the on-site Contractor personnel. The drilling subcontractor shall be responsible for providing hoses, pumps, and generator to transfer water from the temporary storage tank at the HS-1 well (Photo 1), a water truck for transporting water from the storage tank to the drill pad, and adequate on-site storage for water. Tanks, hoses, pumps, and any other equipment used to transport or store the water shall be clean and free from contamination.

Photo 1: Showing Well HS-1 Water Storage and Loading Area

Submittal: The drilling subcontractor shall provide a drilling approach with respect to drilling fluids and additives.

Submittal: The drilling subcontractor shall also provide a list of additives that may be used if borehole conditions deteriorate.

Well HS-1 is inside the Shed

Temporary Storage Tank

Overhead Fill Pipe Tank

2.2.2 MV-4 and MV-5 Surface Casing and Boreholes

Surface casing is required for the MV-4 and MV-5 boreholes. The drilling subcontractor shall drill an adequately sized borehole to allow installation of 14-inch surface casing to a depth of approximately 100 ft bgs. If casing joints need to be welded they shall be welded using an acceptable arc-welding process. The welder shall be qualified in accordance with American Society of Mechanical Engineers Boiler Construction Code, or the American Welding Society Standard Qualifications Procedure, or an equivalent as approved by the Contractor. The cement seal for the surface casing shall be installed from the total depth of the casing (approximately 100 ft bgs) to ground surface. The remaining borehole shall be drilled using a 12¼-inch hammer bit from approximately 100 ft bgs to the total depth of approximately 2,100 ft bgs. Table 2 in Section 2.2.5 provides the surface casing and borehole specifications.

2.2.3 HC-2 Surface Casing and Borehole

Well HC-2 is an existing well with 8.625-inch surface casing to a depth of approximately 100 ft bgs. The remaining borehole was drilled using an 8-inch bit to the completion depth of 1,303 ft bgs. The borehole is currently completed with 5.5 inch diameter intermediate casing that is threaded and coupled, and hung from the surface on a clamp/landing plate (Figure 4). The 5.5-inch intermediate casing extends to a depth of 955 ft bgs and is not cemented in place or completed with an electric submersible pump (Figure 5). The subcontractor shall provide the equipment necessary (e.g. casing jacks) to remove the intermediate casing. After the intermediate casing is removed the subcontractor shall drill the remaining borehole using an 8-inch hammer bit to the total depth of approximately 2,100 feet bgs.

2.2.4 Geophysical Well Logging

The drilling subcontractor shall procure the services of a geophysical well logging company and include these costs in their proposal. The wire-line logging truck shall be equipped with, at a minimum, the necessary safety equipment, calibrated weight indicators, and depth-control devices.

Well logging shall be conducted from below the surface casing to the total depth of the borehole, which is assumed to be 2,100 ft bgs for cost estimation purposes. The desired borehole geophysical techniques and approximate log interval is provided in Table 1.

Table 1. Required Geophysical Logs for Wells MV-4,MV-5, and HC-2d

Logs Required Log Interval (ft)

Caliper 100 to 2,100

Sonic Velocity 100 to 2,100

Spontaneous Potential 100 to 2,100

Natural Gamma Ray 100 to 2,100

Resistivity (Dual Laterolog & Dual Induction) 100 to 2,100

Temperature and Differential Temperature 100 to 2,100

Formation MicroImager or combination Optical/Acoustic TeleViewer 100 to 2,100

Borehole Deviation Survey 100 to 2,100

Figure 4. Plan and Profile View of the HC-2 Well Head

Figure 5. HC-2 Well Construction Diagram

The geophysical logging company shall obtain all necessary permits and approvals related to the logging operation; pay all required fees for the work; and comply with all applicable laws, rules, and regulations of all Federal, State of Nevada, and local government agencies affecting this work. For cost estimation purposes it shall be assumed that standby time for the drill rig and site personnel waiting for the geophysical logging company to arrive on site will not exceed 4 hours.

2.2.4.1 Documentation

The drilling subcontractor shall work with the Contractor’s Site Supervisor to maintain a log of activities in which wire-line operations are performed. Information recorded in the job log will include the date, the well name, the total depth of the hole, the footage logged, the logs run, a breakdown by task of time spent on location, the names of the logging engineer and technician, and any unusual or exceptional conditions encountered during wire-line operations. The logging engineer will also note on the job log the serial number of the logging instrument, the date of last calibration, and that a pre- and post-logging calibration was performed. The results of the calibration and/or instrument response may be included with the field copy of the log. Two field copies of each log will be delivered to the field supervisor upon completing the logging and prior to departing. The prints shall be scaled 5 inches per 100 ft. Deliverables shall include copies of the geophysical logs and electronic data files as stipulated below:

Submittal: Two (2) copies of all field prints and two (2) copies of electronic data provided on compact discs (CDs) in LAS format shall be provided to the on-site Contractor representative following the logging activities.

Submittal: Two (2) copies of the final logs and two (2) copies of the final electronic data shall be provided on CDs in LAS format within 15 days of completing the logging. A final logging report shall be provided 30 days after completing the last logging run. The final report shall document the logs completed with dates and intervals and provide interpretations from the Formation MicroImager and/or Optical/Acoustic TeleViewer logs that include fracture identification with dip angle, rose diagrams, and stereonets.

The drilling subcontractor will provide evidence of calibrations (pre-job/post-job) in accordance with API guidance and manufacturer specifications, industry standards, and bench calibrations.

Documentation of on-site and operational calibrations will include “repeat logging” and any testing done to demonstrate the electrical response of the tools is consistent before and after logging (resistance tests). The drilling subcontractor shall provide all logging data set to a ground surface datum, and not the drill floor. The drilling subcontractor shall obtain approval from the Contractor’s Radiation Services Manager via fax or e-mail before bringing well logging source(s) on site.

2.2.5 Well Installation and Completion

Monitoring wells MV-4, MV-5, and HC-2d shall be completed with 5.5-inch flush threaded internal epoxy/ceramic coated carbon steel J-55 or K-55 API-grade casing with manufactured 0.078-inch slotted screen (Table 2). In addition to the well casing, MV-4 and MV-5 shall be dually completed with a piezometer constructed with 2.375-inch flush threaded carbon steel casing (Figure 6). The drilling subcontractor shall furnish and install all well casing and well filter pack materials (gravel, sand, and cement). For wells MV-4 and MV-5, a gravel filter pack shall be installed around the well and piezometer screen, extending from approximately 10 feet below the slotted screen interval to approximately 50 ft above the slotted intervals. The gravel intervals shall be topped with an approximate 20-ft of 6/12 silica sand. All filter pack material shall be pump-tremied into place with a suitably sized tremie pipe with backup tremie in place, or as approved by the Contractor. Tremie pipes shall have adequate internal diameter to prevent bridging and plugging during the filter pack emplacement process. The well casing for HC-2d shall be installed and set into place without filter pack material (Figure 6).

The graded filter pack is necessary to prevent cement invasion into the underlying gravel pack.

Prior to sealing the filter pack with bentonite or cement (with 2 percent CaCl), the well shall be surged using an appropriately sized surge block, plunger, or swab for a minimum of 4 hours.

This process will help remove or pull into the well remnant drilling fluid and materials, thus reducing voids or bridges in the filter pack. Gravel, sand, and grout levels shall be tagged using a wire line and measured upon completing the surging process. The remaining cement seal will be placed from the top of the filter pack to land surface or as approved by the on-site Contractor representative. Table 2 summarizes the well specifications with respect to the expected borehole, casing, and stemming material type, size, and depth intervals for the monitoring wells and piezometers. Figure 6 is the proposed well completion diagram for MV-4, MV-5, and HC-2d.

Table 2. Summary of Borehole, Casing, and Stemming Materials

Well ID Item Diameter Estimated Depths Material Description

MV-4 & MV-5

Borehole 19-inch 0–100 ft bgs Borehole for surface casing

12.25-inch 100–2,100 ft bgs Borehole completion

Surface Casing 14-inch 0–100 ft bgs Carbon-steel, flush threaded or coupled J-55 or K-55 API-grade casing

Piezometer 2.375-inch 0-1,200 ft bgs Carbon-steel flush joint tubing with 200 ft of manufactured slotted screen (0.078-inch) and10-ft sump

Well 5.5-inch 0–2,100 ft bgs

Carbon-steel, flush joint J-55 or K-55 API-grade casing, with 20-ft sump a bull nose end cap and 600 ft of manufactured slotted screen (0.078-inch). Centralizers at 80-ft intervals.

Stemming Materials for well and piezometer

Portland Type II cement

See Figure 6for generalized placement depths

Portland Type II cement, to be used for seal and isolate casing strings; bentonite or 2 percent CaCl additives for seal will be acceptable

6/12 silica sand

See Figure 6 for generalized placement depths

Silica sand, 98 percent silica

>⅛ <¼-inch gravel

See Figure 6 for generalized placement depths

Trona gravel or equivalent (as approved by Contractor), round, clean, and free of shale and carbonate (98 percent silica)

HC-2d

Borehole 8-inch 1,303 -2,100 ft bgs Borehole currently completed to 1,303 ft bgs

Well 5.5-inch 0–2,100 ft bgs

Carbon-steel, flush joint J-55 or K-55 API-grade casing, with 20-ft sump a bull nose end cap and 1,100 ft of manufactured slotted screen (0.078-inch). Centralizers at 80-ft intervals.

Stemming Materials

NA NA NA

NA NA NA

NA NA NA

Note: All dimensions are nominal API = American Petroleum Institute CaCl = calcium chloride NA = not applicable

Figure 6. Monitoring Well Schematics

Submittal: Submit any proposed changes to the borehole diameter, surface casing size, and/or well completion materials.

Submittal: The drilling subcontractor shall furnish copies of all certifications and specifications of casing used in the construction. Such information shall include the supplier, manufacturer and type, and grade of casing.

2.2.6 Well and Piezometer Development

The wells and piezometers shall be developed upon completion and prior to installation of the dedicated electric submersible pumps (Section 2.2.8). The preferred development method shall use air and a dual pipe system allowing the airline/pipe to be contained in a larger diameter pipe that brings the purge water to the surface. The dual pipe system will allow air to be used in the screen interval without damage to the formation. Well development may include surging, bailing, and airlift pumping methods to remove sediment/drilling fluids and restore the natural hydraulic properties of the hydrostratigraphic unit. Airlift development shall be conducted to produce the maximum water discharge rate possible and may include cycling of air to surge the well.

A diverter should be attached to the top of the well casing to allow containment and management of fluids produced during development pumping. Groundwater samples will be collected and analyzed by the Contractor during the development. Chemicals shall not be used to enhance the well development process, unless approved by the Contractor. Water from well HS-1 may be used with the approved tracer additive (sodium bromide) to flush the well, as necessary. The results of the groundwater samples will be used to determine effectiveness/progress of the well development. Airlift pumping will continue until the discharge water is visually free of suspended sediment and concentrations of the chemical tracer (sodium bromide) are at acceptable concentrations as determined by the Contractor. For cost estimation purposes, the drilling contractor should assume 24 hours for well development and 12 hours for piezometer development.

2.2.7 Well Head Surface Completion

The well shall be protected at the surface by a locking steel well box. The drilling subcontractor shall furnish and install a protective wellhead box approved by the Contractor. Each protective cover will have an affixed embossed steel plate (or identification tag) identifying the well, total depth, location coordinates, and date of completion. A 6-ft × 6-ft × 8-inch concrete apron shall surround each wellhead and wellhead protection cover. The top surface of the apron must be tapered away from the well (slope not to exceed 5 degrees) to facilitate surface water drainage.

2.2.8 Pump Installation

The drilling subcontractor shall provide the support equipment necessary to install pumps in monitoring wells MV-4, MV-5, and HC-2d. The drilling subcontractor shall provide specifications for the new pumps. The pumps shall be equipped with a shroud to allow the pumps to be set in the well screen interval. As part of the pump installation, the (submersible) power supply cable shall be attached to the pump riser pipe and water access tubing at approximate 20-ft intervals with stainless-steel metal bands. Chafe pads shall be used to protect the power cable. The pump installation specifications are provided in Table 3.

Submittal: The drilling subcontractor shall provide the pump curve(s) and specifications for the expected range of the new pump for approval prior to mobilization.

Table 3. Summary of Pump Installation Specifications

Well ID Pump Riser Material Diameter Estimated

Depths Material Description

MV-4,

MV-5, &

HC-2d

Carbon Steel Riser Pipe 1-inch 0–1,800 ft bgs Approximate 32-ft lengths of API J-55 riser pipe with external upset ends

PVC Water Access Tube 1.5-inch 0–1,800 ft bgs Flush joint schedule 80 PVC with 40 ft of 0.02-inch screen

Electric Supply Cable N/A 0–1,800 ft bgs Kalas 8 AWG #10 600-volt flat submersible pump cable

Electric Pump <5-inch 1,800 ft bgs Grundfos pump, model 10S50-58DS, with MS4000 5-horsepower, 480-volt, three-phase Grundfos motor bgs = below ground surface N/A = not applicable PVC = polyvinyl chloride API = American Petroleum Institute

2.3 Optional Work

The optional work scope is work that may not be performed, but a cost estimate for the work scope is required in the event that the Contractor obtains permission to inspect and modify the HS-1 wellhead. The optional work scope is provided below.

2.3.1 Install Water Access Tube in Well HS-1

The subcontractor shall install a 1.5-inch outside diameter (OD) schedule-80 PVC water access tube in water supply well HS-1 (Photos 2 and 3). The Contractor plans to lower a camera into the well in late May 2014 to identify potential obstructions. If no obstructions are identified then the subcontractor shall install the PVC water access tube. The subcontractor shall cut a hole to allow the 1.5-inch OD PVC access tube to be installed to a depth of 400 ft bgs. The subcontractor shall construct a hanger for the water access tube and shall provide the support equipment necessary to install the water access tube.

Photo 2: Well HS-1 Pump Motor inside Shed

Water Discharge Pipe

Photo 3: Well HS-1 Possible Water Access Tube Location

3.0 Requirements and Specifications

Requirements and specifications for the drilling project are provided in the following sections.

3.1 Subcontractor Equipment Requirements

The drill rig shall have adequate drilling pipe, drilling collars, roller/reamer assemblies, bits, stabilizers, compressors, and boosters to complete the well to the specifications. The pump rig shall be capable of removing and installing pumps as specified. Additional requirements are provided below:

Portable mud pit/tank equipped with shaker screens and de-sanding cones to ensure solids control in the drilling fluid. The compartment layout shall provide maximum removal of fine sand and cuttings by settling from the circulating fluid as dictated by the drilling method

Water Discharge Pipe

Possible Location for Water Access Tube employed. Similar discharge pipe and a cyclone shall also be provided for air reverse-circulation drilling for the same purpose.

Geolograph or similar device shall be provided to accurately record rate of penetration, pump pressure, weight on bit, and rotary torque during drilling.

Transportation of all drilling subcontractor furnished personnel/equipment/materials to the drilling site.

Water loading supplies (pump, generator, and hoses), transportation, and onsite storage for all water required for the project and obtained from the water supply well HS-1.

Light plants adequate for nighttime operations.

Plastic liner material (e.g., high-density polyethylene [HDPE] – 20 mil) as under liners for drill rig, fuel storage, and support equipment with potential for leaks or spills of hydrocarbons (e.g., diesel, engine oil, hydraulic fluid).

Modified Level D safety wear, emergency equipment, and portable fire extinguishers.

Drinking water for crew.

Welding services for fabrication and/or repair of the drilling subcontractor’s equipment or casing installation.

A wire-line sounder and/or an electric tape/e-line for measurement of fluid/water levels. (The units shall be capable of measurements to the maximum depth of the deepest borehole [not to exceed 2,100 ft bgs], well, and piezometer.)

Equipment for decontamination at the site including pressure/steam washers, brushes, steel pipe racks (wooden racks are not permitted), fluid transfer pumps.

Due to the remoteness of the site, the drilling subcontractor shall maintain specific on-site stock of most common used parts and preventive maintenance supplies.

Waste containers (30-cubic-yard dumpster).

Casing jacks, in case there is trouble pulling the intermediate casing from well HC-2.

3.2 Contractor-Furnished Items/Support

The following requirements shall be supplied by the Contractor and delivered to the project site prior to the commencement of work. All other materials required to complete the project shall be furnished by the subcontractor.

A Technical Monitor, assigned as the Contractor’s representative to provide drilling coordination, to observe and assist the drilling subcontractor, to coordinate activities, and to provide technical guidance to the drilling subcontractor.

Information regarding buried utilities that may affect drilling conditions.

Access roads, drill pads, and associated fluid storage infiltration basins. A drill pad with infiltration basins will be provided for the each well and will measure approximately 150 × 200 ft.

Radiological Control and Health and Safety support personnel during the drilling program and as appropriate.

Technical field support personnel to conduct monitoring and analysis of drilling fluids for chemical and radiological parameters.

Field Site Supervisor/Senior Geologist to coordinate and supervise site operations during each work shift.

Office and lab trailer with communications (internet and telephone).

Portable toilets with hand washing facilities.

3.3 Acceptable Well Deviation and Additives

Refer to Section 2.2 for the borehole deviation requirements and Section 2.2.1 for the drilling fluid and additives requirement.

3.4 Source of Water and Other Utilities or Facilities

Refer to Section 2.2.1 for drilling fluid and source water requirements. The Contractor will provide toilet facilities for the duration of the project.

3.5 Equipment Cleaning

The subcontractor shall provide equipment that has been decontaminated and is free of weeds and debris prior to arrival on the site. The subcontractor may be required upon completion of the work or as directed by the Contractor to remove debris and any contamination from equipment using a high-pressure hot water washer before leaving the project site. Water from the approved water source shall be used for all cleaning operations. The Contractor representative will direct equipment cleaning and verify it clean when it is visibly free of all soil, oil, grease, and previous fluids.

3.6 Drill Cuttings and Fluid Disposal

The drilling subcontractor shall properly manage all non-hazardous and hazardous waste that it generates. The drilling subcontractor shall maintain the site in a clean and orderly manner at all times and clean up debris and waste material from the site daily. Construction debris and non-hazardous waste material shall be disposed of in a waste container provided by the drilling subcontractor. The drilling subcontractor, at the drilling subcontractor’s expense and in compliance with applicable federal, state, and local regulations, shall manage hazardous waste generated by or resulting from drilling subcontractor equipment and/or materials, including storage, transport, and off-site disposal.

The largest volume of waste anticipated at the site will be drilling fluids and cuttings. The Fluid Management Plan (FMP) for PSA provides the requirements for managing these drilling fluids and cuttings. The operational aspect of the FMP includes the use of constructed infiltration basins to contain discharge fluids and cuttings. Drill cuttings and discharge fluids shall be directed to the infiltration basins during drilling. At the conclusion of the drilling, or as necessary, the drilling subcontractor’s mud tanks shall be drained to the infiltration basins, as long as no hazardous materials or additives are present. Per the FMP, the Contractor, will screen samples onsite to determine whether the fluids and/or cuttings have tritium contamination.

3.7 Maintenance

The subcontractor may perform equipment maintenance and repairs on location with the prior approval of the Contractor. All maintenance shall be performed over plastic sheeting a minimum of 20 mils thick, unless approved by the Contractor. If, during this maintenance operation(s), the subcontractor spills any hydrocarbon-based fluid, antifreeze, or any other similar material, it shall immediately clean up and remove all material associated with the spill at its own time and expense. If, at any time, fluid leaks from any piece of the subcontractor’s equipment, the subcontractor shall “diaper” the ground surface with plastic sheeting until the leak is fixed. If regulated, spilled material shall be recovered, along with contaminated soil, and managed for proper off-site disposal by the subcontractor in accordance with all applicable regulations.

Disposal shall be at the subcontractor’s expense (Refer to Section 6.4).

On-site equipment fueling shall comply with Title 29 Code of Federal Regulations (CFR) Part 1926.152 and Part 1910.106 “Flammable and Combustible Liquids,” to include an electrical interconnection (bonded) between the fuel truck and the equipment/vehicle/tank being fueled and a correct type of fire extinguisher, charged and inspected. The fuel truck operator is bound by all requirements of this subcontract and will require an Initial Site Briefing and orientation the first time the equipment requires fueling. If on-site fueling of any kind is required, to include heavy equipment, generators, gas powered tools, etc., the subcontractor shall comply with the attached Contractor’s Fueling Plan (form LMS 2623CON). Equipment fueling shall be conducted at the Contractor’s direction and will take place during the work hours specified in this SOW. If equipment fueling is conducted with individual fuel cans, the cans shall comply with 29 CFR 1926.152 and 1910.106, and shall be steel cans with pour spouts, spark/flame-arresting devices, and snap-close lids that cannot be locked back.

Submittal: The subcontractor shall submit a copy of the attached Contractor’s Fueling Plan to the Contractor Administrator with proposal, signed and checked to indicate concurrence with the plan if on-site fueling is required or signed and checked that the subcontractor elects to conduct all fueling off site or no fueling will be required.

Any lockout/tagout (LO/TO) of equipment for maintenance issues will comply with the…