Attachment_1_-_SOW.pdf

SECTION C – DESCRIPTION AND SPECIFICATIONS

STATEMENT OF WORK (SOW)

PRODUCTION EQUIPMENT AND PIPELINE REMOVAL 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

1.0 BACKGROUND

1.1 LEASE HISTORY

1.2 WELL HISTORY

1.3 LOCATION

Work under this Contract is located within Rio Blanco County, Colorado. The project sites are located approximately 10 miles northwest of Rangely Colorado

1.4 EXISTING EQUIPMENT DETAILS

2.0 OBJECTIVE

3.0 PROCEDURE

3.1 REMOVAL AND DISPOSAL PLAN

3.1.1 GENERAL

3.1.2 EXECUTION

4.0 APPENDICES

4.1 SITE SPECIFIC WELL PLUGGING AND ABANDONMENT SPECIFICATIONS

4.1.1. MANHATTAN FED 1A

4.1.1.1. WELL SITE LOCATION MAP

4.1.2. WOLF FED 1

4.1.2.1. WELL SITE LOCATION MAP

4.1.3. PIPELINE OVERVIEW MAP

4.1.3.1. PIPELINE LOCATION MAP

1.0 BACKGROUND

1.1 LEASE HISTORY

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. The BLM has contracted to have the wells plugged in 2022 but the surface facilities and existing pipeline are being removed under a separate contract. Because of this, the BLM is now responsible for proper removal of the facilities and existing pipeline.

1.3 LOCATION

Work under this Contract is located within Rio Blanco County, Colorado. The project sites are located approximately 10 miles northwest of Rangely Colorado.

1.4 EXISTING EQUIPMENT DETAILS

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

Site contains two 300 bbl tanks in a battery, with a stairway and double landing.

Production tank contains an estimate 70 bbls of waxy crude and produced water in the bottom of the tank. Water tank contains an estimated 20 bbls of produced water basic sediment and water (BSW). The location also contains

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

Site contains two 240 bbl tanks in a battery with a stairway and double landing and a

300 bbl skidded tank. The production tank has approximately 100 bbls of waxy crude and water, water tank has approximately 20 bbls BSW and the skidded 300 bbls tank has approximately 80 bbls with waxy crude and water.

C. PIPELINE AND PIPELINE EQUIPMENT

The two well pads and a previously abandoned well location are connected with an existing approximately six miles of four-inch gas pipeline. In addition to the four-inch surface pipeline the well pads each contain a separator as well as pipeline connections between the wellhead, tanks and the other production equipment.

2.0 OBJECTIVE

The contractor shall properly remove and dispose of all the orphan well production equipment and surface pipeline in a manner, which prevents environmental damage.

This involves purging the pipeline and collecting and disposing of any materials gathered during this purging process. All above ground pipe connections will be removed from each of the two well site locations and any remaining buried pipes will purged and buried in place or pulled up and removed with other portions of the surface pipeline.

Work must be completed by September 30, 2023

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 removal of production equipment from 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 REMOVAL AND DISPOSAL PLAN

3.1.1 GENERAL

A. Description: The plan submitted by the Contractor shall provide for the removal of all of the equipment and pipeline from the two orphaned oil and gas well situated on land in a semi-arid environment.

B. Submittals: All submittals shall be signed and dated by the Contractor, furnished in sets of three, and be identified by the project number. Submittals requiring BLM approval will be returned (one set) to the Contractor within three days of receipt. Submittals by the contractor to the BLM shall include:

1. Records: A daily tour sheet shall be kept on the work site. This sheet must keep a current description of all activities conducted during each 24-hour period. All service company's reports must also be kept at the work site. All records shall be available for inspection during the job and shall be submitted to the Contacting Officer’s Representative (COR) at the conclusion of the job.

2. Operational Plan: The Contractor shall provide a work schedule with any updated changes daily. The BLM Project Inspector (PI) will be on the work site during the plugging operation to ensure that needed approvals for changed conditions can be expedited.

3. Changes in the Method: All changes the Contractor proposes to the removal of equipment shall require approval prior to implementation. If unexpected conditions occur at the time of operations shall be immediately shut down and the BLM COR and PI immediately notified.

The BLM PI may be on the work site during operations to provide the

COR information to provide prompt approval of the needed changes.

3.1.2 EXECUTION

A. TANKS

All of the tanks will need to be hot oiled and cleaned prior to dismantling and removing from the location. Materials will be hauled to a facility approve for the disposal of the materials collected. Contractor will need to provide documentation of the disposal location, facility disposal permits, and receipts of materials disposed.

B. PIPELINE

Pipeline and equipment will need to be flushed and materials will be hauled to a facility approve for the disposal of the materials collected. Contractor will need to provide documentation of the disposal location, facility disposal permits, and receipts of materials disposed.

Once the pipeline has been flushed the portion between the Wolf Federal #1 and the Manhattan Federal #1 will need to be slid from either location dismantled a hauled off the location. Pipeline and associated equipment may be sold or disposed of after it has been removed from the location.

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 SITE SPECIFIC WELL PLUGGING AND ABANDONMENT

SPECIFICATIONS

Well API Number Lease Twp Rng Sec. Aliquot

Manhattan Fed 1A 05-103-07875 COC0127962 2N 103W 4 NWSW

Wolf Fed 1 05-103-07462 COC0126735 2N 103W 6 NENE

4.1.1. MANHATTAN FED 1A

4.1.1.1. WELL SITE LOCATION MAP

4.1.2. WOLF FED 1

4.1.2.1. WELL SITE LOCATION MAP

4.1.3. PIPELINE OVERVIEW MAP

4.1.3.1. PIPELINE LOCATION MAP