Attachment B-Well Plugging Specs Final~2.docx

PRF-__-__-EMERGENCY PLUGGING

_______ County, Illinois

SPECIFICATIONS JOB FORM

FOR

STATEWIDE LEAKING WELL PLUGGING AND RESTORATION WORK

ATTACHMENT A

PRF-20-001-EMERGENCY PLUGGING

Crawford County, Illinois

ATTACHMENT B-SPECS JOB FORM

1. SCOPE OF PROJECT

A. General Description and Location of the Project (For Bidding Purposes Only) – The Plugging Contractor will properly plug the leaking well and restore the well site of the “sample job” located Section 36, Township 07N, Range 13W “any” County IL. There is a large depression (15ft by 20ft) at the well location. The depression is full of contaminated fluids, enlarging and overflowing onto the land surface.

Well is leaking oil and salt water onto the land surface. The well is located on the banks of the North Fork Saline River and the leaking fluids are migrating to the river. If well continues to leak there is a great possibility of contamination to blue line stream

B. Issuing Entity

This Contract is issued by the Illinois Department of Natural Resources (hereinafter DEPARTMENT), the Office of Oil and Gas Resource Management (hereinafter OFFICE).

2. QUALIFICATION OF BIDDERS

A. On Attachment C, Vendor should provide the location of the vendor's home office, from which all applicable mileage is to be calculated on.

B. If vendor is in a current, unresolved violation of any law or regulation according to 225 ILCS 725/8a and 62 Ill. Admin. Code 240.150(a) administered by the Department, such violations shall be remedied before an award will be made.

C. On Attachment C, Vendor should provide all plugging and restoration equipment the vendor owns. If the vendor does not own all the equipment that may be generally needed on a plugging and restoration project the vendor should state from whom and under what arrangement, e.g. by lease, the vendor shall obtain the necessary equipment.

D. On Attachment C, Vendor should provide plugging and restoration experience, including a description of the three most recent plugging and restoration projects the vendor has performed and the names and addresses of the persons or entities for whom the vendor performed such work.

3. RESPONSIBILITIES OF THE CONTRACTOR

The CONTRACTOR for the project shall be responsible for the following:

A. Remedial and/or Spill Cleanup Services:

Remedial work to repair, contain and cleanup leaks and spills of crude oil and/or saltwater from production equipment, pits, or other containment structures of oil or saltwater, which are contaminating the surface of the land or water. The CONTRACTOR is required to provide sufficient personnel and equipment to perform these services.

B. Pre-Plugging Services:

Transportation and rig-up (including all travel to and from the site for all equipment, labor and materials through the length of the Contract); site preparation (including locating the wells to be plugged, if not visible, using a backhoe or other necessary earth-moving equipment to excavate any buried wells and preparing the wells for plugging operations); and digging pits. The CONTRACTOR is also required to provide sufficient personnel to perform these services. Additional site preparation costs due to adverse weather, topographic or cultural features may be authorized in writing by the OFFICE and executed through a CHANGE ORDER. See #8 SUPPLEMENTAL PROVISIONS, Agency Specific Terms and Conditions, Change Order.

C. Plugging Services:

(1) Permanent plugging of wells in accordance with the requirements of 62 Ill. Adm. Code Subpart K to include, as required, shooting and/or ripping and pulling casings encountered in the wells, drilling out obstructed, bridged or previously plugged well bores, setting cement and mechanical plugs, cutting off the casing below plow depth and placing a plug in all flowlines disconnected from the well, the temporary plugging of wells by setting a mechanical bridge plug. Drilling out obstructed, bridged or previously plugged well bores shall be accomplished by using either a power swivel or rotary drilling rig; however, the piece of equipment used must complete this task for the lowest per well cost. All cement plugs shall be set using only the circulation method described in 62 Ill. Adm. Code Subpart K. All cement used for cement plugs shall be in compliance with the cement specification in 62 Ill. Adm. Code, Subpart K. If multiple cement jobs are required over the course of a plugging operation, the CONTRACTOR must receive approval from the OFFICE prior to conducting multiple cement jobs.

(2) Providing through equipment owned by him, or through subcontract with others, a rotary drilling rig or a rotary table or a power swivel with sufficient capacity capable of efficiently drilling out obstructed, bridged or previously plugged well bores, including the use of fishing and milling tools. The OFFICE shall have the sole authority to determine if the equipment is acceptable for performing the required work. If the OFFICE determines the equipment is not acceptable for performing the required work, the CONTRACTOR is required to provide equipment that is acceptable for performing the work. Use of specialized fishing and milling tools must be authorized by the OFFICE. The OFFICE shall have the authority to require the use of specialized fishing and milling tools. Payment for rental of specialized tools shall be at cost to the CONTRACTOR.

(3) Providing, through equipment owned, leased or rented by him, the following equipment, if needed to complete the plugging services:

a. A rig sufficient to set cement and bridge plugs, and to shoot and pull casings.

b. A power swivel.

c. A pump truck or pumping equipment with sufficient minimum rate and pressure to pump the required cement used during plugging operations.

d. Sufficient length of tubing to set all required cement plugs including a bottom hole plug. Tubing must have been pressure tested within 6 months.

e. A truck which is capable of hauling oil stock tanks.

(4) Providing necessary plugging and restoration materials including cement, mechanical bridge plugs, fertilizer, lime, and all other necessary materials.

(5) Providing sufficient personnel to operate the foregoing equipment and perform the necessary work.

D. Liquid Oilfield Waste Disposal Services:

Providing necessary equipment and sufficient personnel to remove, transport and dispose all accumulated liquid oilfield wastes from tanks and pits in accordance with OFFICE Oil and Gas Rules, 62 Ill. Admin Code Part 240.1865. This service shall include the provision of a Liquid Oilfield Waste Transportation Vehicle permitted by the DEPARTMENT.

E. Restoration Services:

Providing sufficient equipment and personnel to perform the following work:

(1) Removing from any well site, as directed by the OFFICE, all surface production equipment, all equipment encountered in the wells and all other associated equipment in the immediate vicinity of the well.

(2) Restoring all well sites by: removing all rock and concrete pads and oil field debris; and by filling and leveling to original grade all excavations and pits, as directed by the OFFICE.

(3) Restoring oil or saltwater damaged areas at the well site, as directed by the OFFICE's Representative, by: applying 5 pounds of 12-12-12 fertilizer and 50 lbs of agricultural grade lime per 100 square feet of affected area and tilling the well site to a depth of at least four (4) inches but no greater than twelve (12) inches. Additional restoration work beyond that specified above due to excessive land damage, may be authorized in writing by the OFFICE and executed through a CHANGE ORDER. See #8 SUPPLEMENTAL PROVISIONS, Agency Specific Terms and Conditions, Change Order.

F. If the use of explosives is required for the performance of this contract the CONTRACTOR, or an individual in his employ, shall have a valid and effective individual license issued under the Illinois Explosives Act together with any necessary storage certificate, authorizing the CONTRACTOR, or CONTRACTOR's employee, to possess and use explosive materials for shooting casings. Subcontractors are allowed for Explosives work.

G. The CONTRACTOR shall be responsible for identifying all utility lines and pipes and other utility property along utility easements that may be affected by the work on the project and for taking reasonable measures to avoid damaging any such lines, pipes or other utility property.

H. When using any heavy equipment as herein may be required the CONTRACTOR shall place signs along the county road adjacent to the well site of sufficient distance from the site and with sufficient size and legibility of lettering to reasonably warn traffic coming from either direction of the work being done alongside the road and of the possibility of heavy equipment entering the road.

and keep the OFFICE fully informed as to the salvage value of any oil or gas production-related equipment removed from the site. All consultation and notices from the CONTRACTOR under this Contract shall be made to the Plugging and Restoration Program Manager.

J. THE CONTRACTOR SHALL BE LIABLE FOR ALL DAMAGES TO GROWING CROPS AND TO IMPROVEMENTS RESULTING FROM OPERATIONS REASONABLY NECESSARY OR PROPER TO PLUG, REPLUG OR REPAIR THE WELLS COVERED BY THIS CONTRACT OR FROM OPERATIONS REASONABLY NECESSARY TO UNDERTAKE THE REMEDIAL WORK COVERED BY THIS CONTRACT. Any compensation to the Affected Landowner shall be set forth in the estimate and based on the following documentation:

(1) a certified per acre crop productivity estimate from the local USDA/SCS office;

(2) a certified copy of the Board of Trade price quote establishing the value of the crop damaged as of the date the contractor's rig moved on site.

K. The CONTRACTOR is required to keep daily records of all work activity and equipment used for this Contract showing the dates and hours of what type of equipment was used, what type of work was performed, mileage driven, and the type and amount of materials used for the project. These records are required to be submitted along with the CONTRACTOR’S invoice to the OFFICE at the completion of the project. The OFFICE may request additional supporting information to be submitted by the CONTRACTOR if deemed necessary.

4. RESPONSIBILITIES OF THE DEPARTMENT

A. The OFFICE shall determine if any salvageable surface production equipment associated with the well(s) to be plugged, such as pumping units or tanks exist on the project site. If such equipment exists, the OFFICE shall provide an assignment to such equipment to the CONTRACTOR. The Contract shall require the CONTRACTOR to remove the equipment from the site.

B. The DEPARTMENT shall deduct from the per project payment, the value of any recovered construction grade tubular salvage and any salvageable surface production equipment, as determined by an OFFICE representative. Cost of removal of unsalvageable equipment and junk (including transportation) as determined by an OFFICE representative shall be included in CONTRACTOR’S estimate at time of bid.

5. COMMENCEMENT DATE OF WORK ON CONTRACT

Work shall commence within three (3) calendar days of an authorization to proceed provided by the OFFICE. If the work is not commenced within three (3) days of authorization, the OFFICE shall have the sole right and authority to terminate this Contract. The OFFICE shall give the CONTRACTOR forty-eight (48) hours written notice prior to such termination. The OFFICE may decide not to enforce the three (3) day response deadline based upon the CONTRACTOR'S inability to perform because of weather, right of entry or other unforeseen events. The OFFICE’S decision not to enforce the response deadline shall not be a waiver of the response deadline and the OFFICE may enforce the response deadline requirement thereafter at its sole discretion. The CONTRACTOR shall contact the OFFICE District Office in which the project is located, at least twenty-four (24) hours prior to beginning work on any project covered by this Contract.

6. COMPLETION DATE OF WORK ON CONTRACT

All work is required to be completed within forty-five (45) calendar days of commencement of the work. If the work on a project is not completed within forty-five (45) days of commencement, the OFFICE shall have the sole right and authority to terminate this Contract. The OFFICE shall give the CONTRACTOR forty-eight (48) hours written notice prior to such termination. The OFFICE may decide not to enforce the completion deadline because of weather, the scope of work required to complete the project, or other unforeseen circumstances. The OFFICE’S decision not to enforce the completion deadline shall not be a waiver of the completion deadline and the OFFICE may enforce the completion deadline requirement thereafter at its sole discretion. If the OFFICE terminates this Contract, the State shall be liable and responsible only for payment of work authorized and performed prior to notification of termination of this Contract. Any work performed by the CONTRACTOR after notification of termination of this Contract shall be at the sole expense and liability of the CONTRACTOR. In all events of work authorized and covered by this Contract while this Contract is in effect, all work is required to be completed on XXXX or before and all invoices submitted by XXXX

7. METHOD OF PAYMENT

The CONTRACTOR may bill the DEPARTMENT for the total costs of services performed under this Contract upon the satisfactory completion the project. The DEPARTMENT may then pay the CONTRACTOR, less any recovered construction grade tubular salvage and any salvageable surface production equipment, as determined by an OFFICE representative, based on the unit prices specified in the following table:

The estimated value of all salvageable surface production equipment and the sale value of any hydrocarbons (crude oil) stored on the site or recovered during plugging operations, as determined by an OFFICE representative, shall be deducted from the project payment. At a minimum, the estimated equipment salvage and hydrocarbons value shall not be less than shown in the following table:

The DEPARTMENT shall pay for the removal (including transportation costs), of all junk, trash and unsalvageable equipment, as determined by an OFFICE representative. Cost of removal shall be included in CONTRACTOR’S estimate at time of bid.

Bills for damages to growing crops and improvements shall be submitted to the DEPARTMENT with the appropriate documentation from the affected landowner as specified in paragraph 2.J. above.

8. SUPPLEMENTAL PROVISIONS

Public Works Requirements (construction and maintenance of a public work) 820 ILCS 130/4.

This contract calls for the construction of a “public work” within the meaning of the Illinois Prevailing Wage Act,” 820 ILCS 130/.01 et seq. (“the Act”). The Act requires contractors and subcontractors to pay labors, workers and mechanics performing services on public works projects no less than the current “prevailing rate of wages” (hourly cash wages plus amount for fringe benefits) in the county where the work is performed. The Illinois Department of Labor publishes the prevailing wage rates on its website at http://labor.illinois.gov. The Illinois Department of Labor revises the prevailing wage rates and the contractor/subcontractor has an obligation to check the Illinois Department of Labor’s web site for revisions to prevailing wage rates. For information regarding current prevailing wage rates, please refer to the Illinois Department of Labor’s website. All contractors and subcontractors rendering services under this contract must comply with all requirements of the Act, including but not limited to, all wage requirements and notice of record keeping duties.

Certified Payroll, The Vendor and each subcontractor who participate in public works shall in accordance with 820 ILCS 130/5.

No later than the 15th day of each calendar month file a certified payroll for the immediately preceding month with the public body in charge of the project and the Department of Labor database.

Agency Specific Terms and Conditions

Change Order Change order shall be defined as a change in a contract term, other than as specifically provided for in the contract which authorizes or necessitates any increase or decrease in the cost of the contract or the time for completion. A change order shall be executed by the State agency and vendor evidencing the change. All changes shall be approved by the CPO, or designee, and be accompanied by a written determination that the circumstances said to necessitate the change in performance were not reasonably foreseeable at the time the contract was signed and the change is germane to the original contract as signed. Change orders that increase or decrease the cost of a contract or an estimated contract by a total of $25,000 or more or the time of completion by more than 180 days shall be published on the Illinois Procurement Bulletin, pursuant to Section 15-25 of the Code and documented pursuant to Section 33E-9 of the Criminal Code of 2012, in advance of the execution of the change order.