A04_SOW_40534448_Glade_Plug_Abandoned_Wells_1.docx

SECTION C – DESCRIPTION AND SPECIFICATIONS

STATEMENT OF WORK (SOW)

PLUGGING AND ABANDONMENT OF ORPHAN WELLS

MANHATTAN FEDERAL 1A (API 05-103-07875), LEASE COC0127962

WOLF FEDERAL 1 (API 05-103-07462), LEASE COC0126735

DESCRIPTION/SPECIFICATIONS: PLUGGING AND ABANDONMENT

The involved oil and gas leases were issued under the Mineral Leasing Act of 1920, as amended, and have expired due to cessation of production. The BLM have both surface and mineral responsibilities for the involved wells.

1.2 WELL HISTORY

The involved wells were drilled on valid oil and gas leases. These wells did establish oil and gas production but have not been commercial in the recent years. The involved lessee/operator failed to properly plug and abandon the wells. Because of this, the BLM is now responsible for proper plugging.

1. Surface casing cemented to surface.

2. Intermediate casing, if present, cemented with a minimum amount of cement.

3. Production casing and partial liners, if present, cemented with a minimum amount of cement, typically only brought above the producing horizon.

4. Open hole portions of varying diameters. No casing was set in this portion of the hole.

5. Already have partial well isolation by means of subsurface tools, i.e. cast-iron bridge plugs.

The contractor shall properly plug and abandon the orphan wells in a manner, which will prevent environmental damage. This involves placing cement plugs at strategic depths in the well, circulation of spacer fluids, welding and placing a metal well identification plate.

The contractor shall also remove any leftover equipment left onsite.

Work shall be completed by December 31, 2021.

Surface reclamation is not part of these requirements.

3.0 PROCEDURE

The contractor shall analyze the existing well data, investigate, and visit the job site, and provide plans for plugging the wells at the site. The BLM will attend site visits as requested by the contractor. The contractor shall implement the plan per the Statement of Work.

All BLM or State of Colorado wildlife and seasonal restrictions will be adhered to by the contractor.

The BLM may restrict access to the sites during periods of inclement weather to minimize road damage.

3.1.3 PLUGGING EQUIPMENT

The Contractor shall provide the following equipment and goods:

· Operator Name

· Well name and number

· Federal lease number

· Location: 1/4, 1/4 Sec., Township, Range

In general, the orphan wells shall be plugged following the standards established in Onshore Oil and Gas Order No. 2 [54 FR 39528, Sept. 27, 1989], Section G. Drilling Abandonment Requirements:

“The following standards apply to the abandonment of newly drilled dry or non- productive wells … All formations bearing usable-quality water, oil, gas, or geothermal resources, and/or a prospectively valuable deposit of minerals shall be protected. …The hole shall be in static condition at the time any plugs are placed (this does not pertain to plugging lost circulation zones). … Plugging design for an abandonment hole shall include the following:

1. Open Hole.

2. Cased Hole. A cement plug shall be placed opposite all open perforation and extend to a minimum of 50 feet below (except as limited by TD or PBTD) to 50 feet above the perforated interval. All cement plugs, except the surface plug, shall have sufficient slurry volume to fill 100 feet of hole, plus an additional 10 percent of slurry for each 1,000 feet of depth. In lieu of the cement plug, a bridge plug is acceptable, provided:

i. The bridge plug is set within 50 feet to 100 feet above the open perforations;

ii. The perforations are isolated from any open hole below; and

iii. The bridge plug is capped with 50 feet of cement. If a bailer is used to cap this plug, 35 feet of cement shall be sufficient.

9. Mud. Each of the intervals between plugs shall be filled with mud of sufficient density to exert hydrostatic pressure exceeding the greatest formation pressure encountered while drilling such interval. In the absence of other information at the time plugging is approved, a minimum mud weight of 9 pounds per gallon shall be specified.

10. Surface Cap. All casing shall be cut-off at the base of the cellar or 3 feet below final restored ground level (whichever is deeper). The well bore shall then be covered with a metal plate at least 1/4 inch thick and welded in place, or a 4-inch pipe, 10-feet in length, 4 feet above ground and embedded in cement as specified by the authorized officer. The well location and identity shall be permanently inscribed. A weep hole shall be left if a metal plate is welded in place.

11. The cellar shall be filled with suitable material as specified by the authorized officer and the surface restored in accordance with the instructions of the authorized officer.”

4.0 APPENDICES

The wells to be plugged have a well bore diagram indicating the BLM’s knowledge of the status. Please note that the records may not be complete or correct.

4.1.1.2. CURRENT AND PROPOSED WELLBORE SCHEMATICS

4.1.1.3. WELL PLUGGING PROCEDURE

BLM WRFO Plugging Procedure for Manhattan Federal 1A

COC127962, API 05-103-07875

2N 103W/ 4 NWSW

Brine water or mud will always be on location to kill well as needed. Fluid between plugs will be minimum 9ppg.

1. MIRU, NU BOP and test BOP

2. Set a CIBP at 4822’ and cap with 12 sacks (a plug length of 100’) of cement with tubing.

3. Pressure test casing to 300 psi for 15 minutes.

4. If pressure test fails, run in with packer and attempt to locate holes (within 300’). Pump a 300’ length cement balance plug (90 sacks) to cover holes. Provide a minimum cement coverage of 50’ below and above the holes. Tag plug and pressure test casing again.

-- If there is indication of multiple sets of holes that span an interval greater than 500’, determine the location of the top hole. Run tubing 100’ below, then pump the 300’ length cement plug.

-- Reduce the volume of the cement plug if the estimated top of the plug will surpass the depth of 300’.

5. If the initial pressure test passes, perforate at 2500’ (stabilization plug) and 250’ (50’ below surface casing). If the initial test did not pass and cement plug(s) were placed to cover holes in casing, only perforate at 250’.

6. If perforate at 2500’, run tubing to 2550’ (50’ below perforations). Squeeze/ pump a 40 sacks cement plug. Tag plug, top of cement should be above 2450’.

7. Pull tubing to 300’ (50’ below perforations). Attempt to establish circulation.

-- If circulation is established, pump cement (with lost circulation material) until good cement comes to the surface (approximately 90 sacks).

-- If circulation cannot be established, still pump cement until good cement comes to the surface (approximately 45 sacks).

8. Cut off casing 4’ below ground level.

9. If there is no cement in the annulus, run in with 1” tubing to at least 50’ (or top of cement) and pump cement to the surface.

10. Top off 5 ½” casing as needed.

11. Weld on marker plate.

4.1.1.4. WELL COMPLETION REPORT

4.1.2.2. CURRENT AND PROPOSED WELLBORE SCHEMATICS

4.1.2.3. WELL PLUGGING PROCEDURE

BLM WRFO Plugging Procedure for Wolf Federal 1

COC126735, API 05-103-07462

2N 103W/ 6 NENE

Brine water or mud will always be on location to kill well as needed. Fluid between plugs will be minimum 9ppg.

1. MIRU, NU BOP and test BOP

2. Set a CIBP at 4584’ and cap with 8 sacks (a plug length of 100’) of cement with tubing.

3. Pressure test casing to 300 psi for 15 minutes.

4. If pressure test fails, run in with packer and attempt to locate holes (within 300’). Pump a 300’ length cement balance plug (90 sacks) to cover holes. Provide a minimum cement coverage of 50’ below and above the holes. Tag plug and pressure test casing again.

-- If there is indication of multiple sets of holes that span an interval greater than 500’, determine the location of the top hole. Run tubing 100’ below, then pump the 300’ length cement plug.

-- Reduce the volume of the cement plug if the estimated top of the plug will surpass the depth of 435’.

5. If the initial pressure test passes, perforate at 2325’ (stabilization plug) and 385’ (50’ below surface casing). If the initial test did not pass and cement plug(s) were placed to cover holes in casing, only perforate at 385’.

6. If perforate at 2325’, run tubing to 2375’ (50’ below perforations). Squeeze/ pump a 40 sacks cement plug. Tag plug, top of cement should be above 2275’.

7. Pull tubing up to 435’ (50’ below perforations). Attempt to establish circulation.

-- If circulation is established, pump cement (with lost circulation material) until good cement comes to the surface (approximately 130 sacks).

-- If circulation cannot be established, still pump cement until good cement comes to the surface (approximately 45 sacks).

8. Cut off casing 4’ below ground level.

9. If there is no cement in the annulus, run in with 1” tubing to at least 50’ (or top of cement) and pump cement to the surface.

10. Top off 4 1/2” casing as needed.

11. Weld on marker plate.

4.1.2.4. WELL COMPLETION REPORT

The work described shall be measured and paid for on a lump sum basis for when the plugging is completed and accepted. Mobilization shall be included in the unit cost. The payment shall be based on the quantities of materials as required and described in the applicable plugging procedures. If additional time or materials are required to complete the plugging procedure, from those items stated within the well plugging procedures, additional payment will be made according to the unit price in the Negotiated Equipment or Services Schedule.

Well Plugging and Abandonment Services*

Contractor’s Total Bid Amount

*There is no well plugging priority.

Negotiated Equipment or Services/Contingency Items

Technical Proposal Evaluation Committee (TPEC) Evaluation Criteria

Basis of Award: Lowest Price Technically Acceptable image3.png image4.png image5.png image6.png image7.png image8.png image9.png image1.png image2.png