Addendum No Two.pdf

COMMONWEALTH OF KENTUCKY

DEPARTMENT FOR FACILITIES AND SUPPORT SERVICES

DIVISION OF ENGINEERING AND CONTRACT ADMINISTRATION

INVITATION TO BID NO: RFP-58-27

FOR: Kentucky Abandoned Storage Tank and Orphan Well Reclamation Program (KASTOW) Ohio 005

DATE: September 10, 2026

RFP-785-2700000051

ADDENDUM NO. Two (2)

BIDDER SHALL CONFORM TO THE FOLLOWING CHANGES AS SAME SHALL BECOME BINDING

UPON THE CONTRACT TO BE ISSUED IN RESPONSE TO THIS INVITATION TO BID.

Item 1: See attached question/answer.

Item 2: Refer to attachment I and use the attached in lieu of previously issued.

END OF ADDENDUM

Invitation to Bid No. RFP-58-27 For: Kentucky Abandoned Storage Tank and Orphan Well Reclamation Program (KASTOW) Ohio 005

Kristi Sharp, Statewide Procurement Manager Division of Engineering and Contract Administration

KASTOW Orphan Well Package Ohio County #005

RFP-58-27

Kentucky Energy and Environment Cabinet Addendum No. 2

QUESTION: RESPONSE:

1. We have noticed that a couple of the packages especially the one referenced above has both well plugging activities and tank removal activities. The scope of work doesn’t really address the tanks like a scope of work for a tank package. In the past tank removal packages, it states that we need to address tank bottoms, secondary examination for oil contamination, soil contamination to be removed, surfaced flow lines and tanks to be removed from site, if disposal of TNORM material the state will reimburse invoice plus 15%, etc. Should those items be dd d?

Yes, please see the revised Attachment I Scope of Work for details.

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KASTOW Orphan Well Package Ohio County #005

RFP-58-27

Kentucky Energy and Environment Cabinet Addendum No. 2

QUESTION: RESPONSE:

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ATTACHMENT I

Kentucky Abandoned Storage Tank & Orphan Well (KASTOW) Reclamation Program Package

Revised Scope of Work Project Name: Ohio #005 Orphan Well Package Location: Ohio County, Kentucky

The Kentucky Division of Oil and Gas (Division) is soliciting bids under the Kentucky Abandoned Storage Tank and Orphan Well Reclamation Program (KASTOW) to plug and reclaim orphan well sites referenced below as ORPHAN WELL PACKAGE and described further in Attachment J:

Permit No. API Well No County Lease Well No. Depth (ft.) Latitude Longitude

(See Attachment J)

Contractor shall properly plug, site remediate, and reclaim the orphan wells identified above in compliance with KRS Chapter 353.562-564 and 805 KAR 1:060. Each well shall be plugged in accordance with attached plugging plan (Attachment K) under the direction of Division inspectors. Contractor shall remove associated aboveground flowlines and production infrastructure at the wellsite. Any flowlines extending underground and not removed shall be properly plugged and cut off below grade as required in 805 KAR 1:190 (Section 13). Disturbed areas shall be reclaimed by implementing best management practices to achieve approved vegetative cover and proper site drainage with erosion control. Sites must exhibit a permanent vegetative cover with effective drainage for one year before sites will receive final acceptance and payment. (See Attachment L)

The Division has prepared a PowerPoint Site Review of the orphan wells in this project, which is included as Attachment M. Contractors are HIGHLY ENCOURAGED to visit ALL sites to assess wellsite and plugging procedures, site remediation requirements, reclamation criteria, and available access to the wellsite. A list of DOG inspectors contact information may be found on the Division webpage at Contact Oil and Gas - Kentucky Energy and Environment Cabinet. Contractors are further directed to other resources at the Kentucky Geological Survey website with publicly available well records and geological information.

General Requirements

• Any trees to be cut down during this project shall be less than 3 inches diameter at breast height (DBH). Plugging may be completed at any time during the year, however, if trees greater than 3 inches DBH are to be cut/trimmed, they must be approved by the division.

https://eec.ky.gov/Natural-Resources/Oil-and-Gas/Pages/Contact-Oil-and-Gas.aspx https://eec.ky.gov/Natural-Resources/Oil-and-Gas/Pages/Contact-Oil-and-Gas.aspx

Attachment I

• The contractor shall plug and abandon all wells within 180 days of the contract award date and shall complete all required work in a diligent and skillful manner, under the coordination of the Division inspector. The Division, under exceptional circumstances, may grant contract extensions;

but such shall only be valid if in writing and signed by the Director. Failure to fulfill the scope of work within the allotted time may result in cancellation of contract and disqualification from the KASTOW Reclamation Program.

• Contracts will be awarded based upon:

o plugging/ well workover personnel experience (provide years with summary);

o corporate group qualifications (provide listing of wells plugged for oil & gas industry

(with references and contact information);

o committed project equipment list (list all equipment to be committed to the projects and staged strategically nearby);

o past well plugging experience with the Division’s State Plugging Program, or a similar program outside the Commonwealth (provide details); and o completeness of contractor bid proposal;

o total project costs. (SEE RFP FOR ALL REQUIREMENTS.)

Safety and Regulatory Compliance:

Contractor agrees to perform this work as directed, in the manner described, using approved materials and meeting all Division requirements for safe work practices and regulatory compliance. Contractor agrees to maintain at all times a safe working environment, with adequate absorbent pads and booms on site for spill control. All temporary pits constructed shall be lined with a six-mil liner and all discarded trash shall be removed at completion of plugging operations. Contractor shall contain leaks, spills and discharges promptly and prevent surface water degradation. Best management practices shall be implemented to prevent erosion and sedimentation away from disturbed areas. Contractor shall perform contractual duties in a safe and responsible manner, complying with all applicable local, state, and federal regulations appropriate to the scope of work for this project, or any addendum to such project. The contractor bears the responsibility of exploring, identifying, and addressing all potential safety hazards through the course of their work.

Department of Interior Standard Terms and Conditions:

As this project is undertaken under provisions of the Bipartisan Infrastructure Law administered by the US Department of Interior (DOI), the DOI Standard Award Terms and Conditions are hereby incorporated into the requirements of this project scope.

Compliance with Davis-Bacon Prevailing Wage Act:

Plugging contractors must comply with the Davis-Bacon Wage Act (DBA) as a requirement of this project scope and the Bipartisan Infrastructure Law. The Act requires funds to compensate employees at rates not less than those prevailing on similar projects in the locality of the work being performed, as determined by the Secretary of Labor in accordance with subchapter IV of chapter 31 of title 40, United States Code.

Applicants shall provide written assurance acknowledging the DBA requirements for the award or project and confirming that all laborers and mechanics performing construction, alteration, or repair work on projects in excess of $2,000 funded directly by or assisted in whole or in part by and through funding under the award are paid or will be paid wages at rates not less than those prevailing on projects of a character similar in the locality as determined by the Secretary of Labor in accordance with Subchapter IV of Chapter 31 of Title 40, United States Code (Davis-Bacon Act).

Recipients of funding will also be required to undergo DBA compliance training and to maintain competency in DBA compliance. The U.S. Department of Labor offers free Prevailing Wage Seminars several times a year that meet this requirement, at https://www.dol.gov/agencies/whd/government-contracts/construction/seminars/events.

Compliance with Build American, Buy America:

Award recipients will be expected to comply with Build America, Buy America (BABA) which requires that all iron, steel, manufactured goods, and construction materials used in a Federally-funded “infrastructure project” are manufactured domestically. Recipients can apply for project-specific waivers of the Buy America requirement under certain circumstances. For more information, see the OMB Memorandum M-22-11 “Initial Implementation Guidance on Application of Buy America Preference in Federal Financial Assistance Programs for Infrastructure” at https://www.whitehouse.gov/omb/information-for-agencies/memoranda/#memoranda-2022.

Actual Field Conditions Notice:

Please be advised that: 1. Unexpected Downhole conditions may be encountered that alter proposed plugging procedures, if deemed necessary by the Division inspector; and 2. Wellsite remediation and reclamation of disturbed areas must achieve the final site standards of KRS 353.562 (6)(c), meeting all statutory requirements and working in reasonable cooperation and consideration of site specific landowner concerns.

SCOPE OF WORK

1. Prior to commencing site preparation or working access road to wellsite, contractor must contact inspector and landowner, as identified by the Division, to discuss the work plan and address any areas of owner concern regarding ingress/egress of equipment or other impacts. (If any orphan well site is in a cropland area, contractor site work must plan to work around their crop planting and harvest schedules to avoid damage.)

2. Contractor is encouraged to make reasonable accommodations to the landowner during site work/access road construction.

3. Measurement of wellhead methane emissions may be performed by an authorized representative of the Division prior to plugging operations.

4. If tanks are present onsite, laboratory testing for TENORM (Technologically Enhanced Naturally Occurring Radioactive Material) is a requirement for tank bottom sludge materials, based upon historical Kentucky landfill disposal requirements. Testing requires a typical 30-day turnaround for analysis results. Site materials must be segregated to avoid cross-contamination until material analysis is complete. Please schedule site pre-testing accordingly so any material re-handle is minimized. All sampling required for site material classification and disposal shall be the responsibility of the Contractor. Copies of all sample analysis results shall be provided to the Division. No sampling shall occur prior to execution of contract.

5. Attachment L provides project requirements for site preparation, revegetation, reclamation, and Best Management Practices for stable site drainage with erosion prevention and sedimentation controls.

6. Construction of access road should include water bars, ditches or culverts (as necessary) and any other best management practice deemed necessary by the Inspector. (Any cleared brush shall be windrowed, legally burned, or hauled away for proper disposal – depending upon landowner preference.)

https://www.dol.gov/agencies/whd/government-contracts/construction/seminars/events https://www.dol.gov/agencies/whd/government-contracts/construction/seminars/events https://www.whitehouse.gov/omb/information-for-agencies/memoranda/#memoranda-2022

7. Site preparation shall include identifying surface waterways and potential conduits to groundwater (i.e. sinkholes) and then implementing best management practices to prevent groundwater degradation.

8. Contractor shall construct a temporary pit, and install a minimum 6-mil liner for fluids containment.

9. Contractor shall disconnect all wellhead connections to flowlines, meters, separators or tanks

(without creating leakage or spillage) and permanently secure all buried lines 24 inches below ground level by placement of bull plugs.

10. If the wellhead is equipped with a pump jack and connected to tubing/rods assembly downhole, the extracted tubing and rods from the wellbore shall be scanned with a Ludlum Model 19 Micro R meter (or equivalent) for TENORM which typically is deposited as scale. Same procedure applies to any flow lines, loose pipe or metal about the wellsite, or metal from associated structures being reclaimed. If the meter scan detects a measurement in microroentgen per hour (μR/hr) equal to or exceeding double the background radiation, a disposal procedure compliant with KRS Chapter 211 and 902 KAR 100.180 shall be required.

11. All metal tanks, separators, valving, and structures shall be scanned with Ludlum Model 19 Micro R meter (or equivalent) for TENORM which typically is deposited as scale. Same procedure applies to any flow lines, loose pipe or metal about the tank site, or metal from associated structures being reclaimed. If the meter scan detects a measurement in microroentgen per hour (μR/hr) equal to or exceeding double the background radiation, a disposal procedure compliant with KRS Chapter 211 and 902 KAR 100.180 shall be required.

12. Approved disposal of TENORM material will require material chain-of-custody, an approved disposal site and full documentation submitted to the Division. Contractor shall submit invoice for cost of TENORM disposal plus 10% for administration costs, which shall be approved upon presentation of required shipment manifests, full cost documentation and proof of proper disposal.

13. An estimated amount of oil/brine contaminated soil plus any tank bottom sludge material will need to be removed for proper disposal at an approved landfill location. All material leaving this site must be properly documented, and a complete manifest for each load shall be provided to the Division before completion of the project. Remediation Cleanup is to meet the compliance standards of KRS 353.562 (6).

14. Contractor shall rig up on the wellhead and run tools downhole to confirm total depth or establish total depth (Inspector must approve alternative downhole measures such as perforating, setting of plugs or cutting casing if required variant from Attachment K)

15. Should an obstruction in the wellbore be encountered at a depth less than total depth, the plugging contractor shall notify the Division inspector of the obstruction depth to determine if the depth is sufficient to properly isolate and protect fresh water zones and coal seams by the emplacement of cement slurry circulated to surface. It shall be the contractors obligation to pursue clearing the downhole obstruction encountered to a depth acceptable to the on site inspector to assure full protection of freshwater and coal seams. Contractor should be prepared to fish, spear, mill out, or take any other corrective measures necessary to achieve an acceptable depth for plugging.

16. Contractor shall run tubing in the wellbore and Class A Cement slurry mixed at a minimum weight of 14 lb/gal shall be displaced using balance method at pre-determined depths as described further in Attachment K. Zones or intervals that require isolation by cement plugs under state statute include:

a. Fresh Water Zones:

b. Coal Seams:

c. Producing Intervals:

d. Potential Future Production Zones:

e. Casing shoes (specifically intermediate and surface casing strings)

17. After properly plugging the well to surface, all casing shall be cut off three (3) feet below surface.

18. Contractor shall remove from the site all aboveground wellhead equipment, flowlines, meters and separators and permanently secure all buried lines 24 inches below ground level by installing bull plugs.

19. Contractor shall remove and properly dispose of all fluids from pit, then back-fill and reclaim in accordance with Attachment L.

20. Contractor is responsible to properly handle and dispose of oil or brine contaminated soil removed in accordance with KRS 353.562(6) (c) and site reclamation procedures described in Attachment L. All material leaving the site must be properly documented, and a complete manifest of transport and final disposal actions shall be provided to the Division prior to project completion.

21. Access roadways adjacent to the site, if they are dirt/farm roads degraded by the work activity should be graded, straw covered, and seeded. If access roads used were prior gravel surface roads, contractor shall gravel to restore original condition. Site shall be seeded with seed mixture to the extent practical as requested by landowner

22. Following site closure, Contractor shall submit for each well a PLUGGING AFFIDAVIT FORM (OG-38), properly completed front and back, signed by the Contractor and the on-site Division Inspector (Attachment N).

23. If tanks were removed, Contractor shall submit for each tank an ABANDONED TANK FACILITY SITE CLOSURE AFFIDAVIT FORM, properly completed, signed by the Contractor and the on-site Division Inspector (Attachment W). Manifests must also be included with form and invoice.

24. Measurement of wellhead methane emissions may be performed by an authorized representative of the Division at the completion of plugging operations.

25. Contractor will be required to use specific invoice format as per Attachment O billing associated with this project, submitting it to the Division of Oil & Gas.

26. Contractor shall provide a weekly report to the Division that includes daily notes of the work performed on the project. Information should include dates, permit numbers, details of the work performed at the site and issues that arose throughout the process. The report should be emailed to the Project Manager on a weekly basis each Monday.

Attachments:

• Attachment J – Orphan Well Package List

• Attachment K – Plugging Plan

• Attachment L – Site Reclamation and BMPs

• Attachment M – Orphan Well Site Review

• Attachment N – Plugging Affidavit Form (OG-38)

• Attachment O – KASTOW Invoice Template

• Attachment P – Bidders Experience

• Attachment Q – Project History Summary

• Attachment R – Contractors Committed Equipment List

• Attachment S – Proposed Work Plan

• Attachment T – Past Performance with the Division

• Attachment U – Davis-Bacon Act Requirements

• Attachment V – Subcontractor Identification Form

• Attachment W – Abandoned Tank Facility Site Closure Affidavit

KASTOW Revised Scope of Work Ohio #005.pdf