ATT_1_SOO_ORPHAN_WELL_PLUGGING_AND_ABANDONMENT_1.pdf

140L0622R0034 Department of the Interior

Orphaned Well Federal Program

Plugging & Abandonment (P&A) Statement of Objectives

Background President Biden signed the Infrastructure Investment and Jobs Act (IIJA)/Bipartisan Infrastructure Law (BIL) on November 15, 2021. This landmark investment will rebuild America’s critical infrastructure, tackle the climate crisis, advance environmental justice, and drive the creation of good-paying union jobs. By addressing long overdue improvements and strengthening our resilience to the changing climate, this investment in our communities across the country will grow the economy sustainably and equitably so everyone gets ahead for decades to come.

The Department of the Interior (DOI) is establishing a Federal Program and Grants Program to address orphaned wells. The Federal program will include the Department of the Interior, its bureaus and offices that have responsibility for orphaned wells, and the Department of Agriculture, U.S. Forest Service (USFS). The IIJA/BIL appropriated $250 million to the DOI for the Federal Program. The Bureau of Land Management (BLM) has primary responsibility for administration of the Federal Program.

Purpose This special notice is being advertised to inform the industry community that the BLM intends to hold an Industry Day for the purpose of interactively exploring capabilities available within the industry for a full range of services relating to the need for the plugging, reclamation and abandonment of orphaned oil and gas wells on Federal lands. BLM seeks to gain information that will be conducive to facilitating an effective and efficient acquisition process for the required services, foster business partnerships, and incorporate the best practices of the industry community beneficial to meeting the goals of this project.

General Scope BLM is contemplating issuing a solicitation for a multiple-award indefinite award vehicle for the work associated with plugging and abandonment of orphaned oil and gas wells on Federal lands.

The term ‘orphaned well’ with respect to Federal land means a well that is not used for an authorized purpose, such as production, injection or monitoring; for which no operator can be located; for which the operator of which is unable to plug the well; remediate and reclaim the well site. Required tasks may include, but are not limited to, the following:

• Site examination and inventory;

• Contaminant sampling and testing;

• Site cleanup plan development;

• Well bore and well schematics;

• Well plugging design;

• Completion of all precondition items (e.g. permitting, approvals, agreements, etc.);

• Mobilization and demobilization of equipment, resources and infrastructure;

• Removal of solid waste and remediation of contaminants;

• Well plugging and abandonment implementation;

• Required reclamation activities (e.g. reseed, recontour, control noxious weeds, etc.); and

• Reports and analysis.

Period of Performance If a solicitation(s) is posted, the resultant award(s) are anticipated to include a one-year base period with four subsequent one-year option periods.

Place of Performance Well sites will be located across the continental United States and Alaska and under the jurisdiction of various Federal Land Management Agencies. The BLM is contemplating awarding different indefinite vehicle pools by oil and gas basins as follows:

Required Procedures Generally, contractors shall properly plug and abandon the orphan wells in a manner that will prevent environmental damage. The contractor may be required to analyze the existing well data, investigate, and provide plans for plugging the wells at the site. The BLM’s minimum requirements for plugging of wells are contained in Onshore Oil & Gas Order 2; these requirements will apply to all Federal orphaned wells plugged and abandoned under the resultant contract vehicle. There may be field specific or other local requirements that are in addition to this order and are not contained in these minimums. These field specific conditions could include additional additives for hydrogen sulfide operations, cave and karst operations or circulating water to displace hydrocarbons that may be present downhole. Plugging and abandonment procedures will generally include the following procedure:

1. All formations bearing usable-quality water, oil, gas, or geothermal resources, and/or a prospectively valuable deposit of minerals shall be protected.

2. The hole shall be in static condition at the time any plugs are placed (this does not pertain to plugging lost circulation zones).

3. All downhole equipment shall be removed.

4. A bit and scraper should be run to the deepest plug setting depth.

5. All plugs shall consist of cement mixed at API standards with no additives other than silica flour or sand, calcium chloride, pozlin, and additives to control hydrogen sulfide.

The ratio of pozlin to cement shall not exceed fifty (50) percent.

6. All cement mix water must be fresh water and not degrade the setting properties of the cement.

7. Open Hole Plugs

a. A cement plug shall be placed to extend at least 50 feet below the bottom (except as limited by total depth (TD) or plugged back total depth (PBTD)), to 50 feet above the top of:

i. Any zone encountered during which contains fluid or gas with a potential to migrate;

ii. Any prospectively valuable deposit of minerals.

b. All cement plugs, except the surface plug, shall have sufficient slurry volume to fill 100 feet of the hole, plus an additional 10 percent of slurry for each 1,000 feet of depth.

c. Long sections of open hole shall be plugged at least every 3,000 feet.

8. Cased Hole Plugs

a. 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.

iv. In place of a bridge plug the following is acceptable:

1. Set a cement retainer 50 to 100 feet above the perforations;

https://www.blm.gov/programs/energy-and-minerals/oil-and-gas/operations-and-production/onshore-orders

2. Establish an injection rate with water;

3. Squeeze the perforations with a minimum of 25 sacks of cement;

4. Place 50 feet of cement on top of the cement retainer.

5. If unable to establish an injection rate, sting out of the cement retainer and place 50 feet on top.

b. Where the annular space for the casing(s) was not cemented during primary cementing, the cement plug shall be placed to cover both inside and outside of the casing for the plug interval(s).

9. If any casing is cut and recovered, a cement plug shall be placed to extend at least 50 feet above and below the stub.

10. An additional cement plug placed to extend a minimum of 50 feet above and below the shoe of the surface casing (and for intermediate string, as appropriate).

11. No annular space that extends to the surface shall be left open to the drilled hole below. If this condition exists, a minimum of the top 50 feet of annulus shall be plugged with cement.

12. Any cement plug which is the only isolating medium for a usable water interval or a zone containing a prospectively valuable deposit of minerals shall be tested by tagging the plug with the working pipe string. Any plugs placed where the fluid level will not remain static also shall be tested by either tagging the plug with the working pipe string, or pressuring to a minimum pump (surface) pressure of 1,000 psi, with no more than a 10 percent drop during a 15-minute period (cased hole only). If the integrity of any other plug is questionable, or if the authorized officer has specific concerns for which he/she orders a plug to be tested, it shall be tested in the same manner.

13. Silica sand or silica flour shall be added to cement exposed to bottom hole static temperatures above 230F to prevent heat degradation of the cement.

14. A cement plug of at least 50 feet shall be placed across all annuluses. The top of this plug shall be placed as near the eventual casing cutoff point as possible.

15. Each of the intervals between plugs shall be filled with fluid 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 fluid weight of 9 pounds per gallon shall be specified.

16. 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 with a weep hole. The well location and identity shall be permanently inscribed.

The contractor shall also be responsible for reclamation and remediation requirements in accordance with the specific plugging and abandonment plan for the well site.

Equipment Requirements Equipment needs will vary due to specific site requirements. Typical equipment requirements are as follows:

• Completion/Work Over Rig: The rig shall have the appropriate capacity to operate to the vertical depth of the well. The rig shall be furnished with crew and supervision. The following is the typical required accessory equipment:

o Tubing tools for 2-7/8” or 2-3/8” work string, including any necessary bits, scrapers, cast iron bridge plugs or cast-iron cement retainers appropriately sized for the casing string involved.

o Power swivel for any rotational work necessary to clean out the existing wellbore to set the plugs at the required depth.

o Any equipment necessary for fishing items out of the well.

• Well Control Equipment: The well control equipment shall consist of a blowout preventer sized appropriately for the pressure conditions of the well.

• 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 individual wells. Enough mud tanks shall be furnished to contain the drilling mud required for plugging operations.

• Cementing Equipment: The cementing equipment shall be capable of batch mixing of cement slurry. A mud/multi-purpose pump that can pump the cement slurry to the plug depths as specified shall be provided.

• Storage Tanks - Well Fluids: Enough storage tanks shall be furnished to contain all well fluids circulated from the well during plugging operations. Hazardous materials or hydrocarbons shall be disposed of in an approved State facility.

• Plug and Abandonment Marker: The marker shall be a metal plate at least 1/4" thick and welded in place. A weep hole shall be in the plate. The following shall be permanently inscribed on the plate:

o Operator Name o Well name and number o Federal lease number o Location: 1/4, 1/4 Sec., Township, Range

• Well Logging Equipment: Equipment needed to run different logging tools into the well.

Operating Constraints

Plugging and abandonment work may be limited due to findings in various compliance documents, which may require limitations in when work can be performed due to various site conditions or other restrictions. Specific site information will be provided in resultant task order award(s).