B08_ATT_1_CACA41637_Sevier_14-1_-_SOW.pdf

STATEMENT OF WORK

Orphan Well Plugging and Abandonment Sevier 14-1 (US Well Number 0407921097)

Federal Lease CACA41637

T31S, R21E, Section 14 San Luis Obispo County, CA

Bureau of Land Management, Bakersfield Field Office

1.0 GENERAL INFORMATION

1.1. Introduction

This requirement is for plugging and abandonment services for the Bureau of Land Management

– Bakersfield, CA Field Office’s Idle and Orphan Well Program. The requirement is for the abandonment and reclamation of one federal orphan well.

1.2. Background

The IIJA (Infrastructure Investment and Jobs Act) was signed into law on November 15, 2021. To help achieve its goals, Section 40601 of the IIJA established the Orphaned Well Program, which includes a federal program for addressing orphaned wells on federal land. It is the goal of the BLM Bakersfield Field Office to reduce its orphan well inventory, prevent environmental damage, and reclaim land to restore natural assets. Well Sevier 14-1 on lease CACA41637 is a federal orphan oil and gas well that requires abandonment and reclamation work.

1.3. Scope

The Contractor shall submit relevant forms regarding notice of abandonment to the local county, state, and federal regulatory bodies, follow the designed BLM abandonment program, and plug and abandon well Sevier 14-1. The contractor will be responsible for the proper management of any fluids and solids from this abandonment project. Any solid waste generated from this project will be removed and disposed of at an appropriate waste management facility.

1.4. Attached Applicable Documents

a. APPENDIX 1 (Specific Conditions of Approval – Well Abandonment)

2.0 WORK REQUIREMENTS

2.1. Technical Requirements

a. Planning

1. Immediately following award of the contract and prior to initiating abandonment operations, a pre-work conference shall be held between the Contractor and COR for the purpose of familiarizing the Contractor with the project area, BLM facilities, means for accessing the area locations, and specific responsibilities of each party. The Contractor and the COR in consultation shall determine the date, time, and location of the meeting. The Contractor shall ensure that all persons responsible for supervision, as well as field crew leaders for the contract work are present at this meeting.

2. The Contractor shall prepare a report outlining the abandonment procedures.

3. The Contractor shall fill out and submit abandonment notices to state and federal regulatory bodies. A Notice of Intention to Abandon/Re-Abandon Well form (Form 3160-5) shall be completed and submitted to BLM and California Geologic Energy Management Division (CalGem) by the Contractor.

b. Conduct Abandonment Operations

1. All applicable federal, state, county, and city safety regulations and practices shall be strictly adhered to at all times.

2. A 24-hour notification shall be given to the BLM prior to commencing operations (See

APPENDIX 1).

3. Abandonment tasks shall conform to the requirements outlined in 43 CFR, Part 3160, Onshore Order 2, and state regulations. Additionally, the abandonment procedures shall comply with all conditions of approval outlined by the BLM Petroleum Engineer.

4. A BLM Oil & Gas Inspector (PET) will be onsite to witness each cement plug tag as outlined in APPENDIX 1. If a BLM inspector is not available to witness this phase of the abandonment operation, CalGEM will be notified, and an Oil & Gas Inspector will be requested to witness the tag. The BLM inspector and COR will determine if the contractor is following the abandonment program.

5. If any downhole issues are encountered, the onsite Contractor will notify the BLM Petroleum Engineer (PE) and will document any changes to the abandonment program. Any variance with the abandonment program must be approved by the BLM Petroleum Engineer.

6. A workover rig may be required to pull the rods and tubing from the well (if any).

7. The Contractor shall adhere to the Conditions of Approval as outlined in APPENDIX 1 for the reclamation and cleanup of the wellsite.

c. Surface Reclamation and Solid Waste Removal

1. Remove all concrete, cut casing/pipe, rods, tubing, scrap metal, solid/liquid waste, oily soil, and trash from the well pad for proper disposal at an approved disposal location.

2. Grade and compact well site (see Surface Reclamation Requirements in APPENDIX 1).

2.2. Deliverables

a. Final report

1. The Contractor shall submit a Well Abandonment History to the BLM within 30 days of completion of plugging operations.

2. The Contractor shall submit a History of Oil or Gas Well – form OG103 to California Geologic Energy Management Division (CalGem) within 30 days of completion of plugging operations.

3. The Contractor shall provide a Final Project Summary document to BLM within 30 days of completion of work. This report will contain a summary description of all materials removed from the lease including the following: the weights, volumes, and final disposal or recycling locations of all recyclable steel, scrap metal, oily soil, fluids, concrete, treated wood waste, pipelines, flowlines, plastic, wire, conduits, demolition debris, junk, and trash removed from BLM lands.

3.0 SUPPORTING INFORMATION

3.1. Place of Performance

a. Land Ownership

1. CACA41637 is a 360-acre lease located southwest of McKittrick, CA. The surface and mineral rights are publicly held and managed by the Federal Government – Bureau of Land Management.

b. Road Access

1. The project site lies directly west of U.S. Highway 33. Local accommodation and commercial services are available within 10 to 15 miles from the project area in the city of Taft. The wellsite is readily accessible by heading south on HWY 33 from McKittrick. Turn right on to Bill Kirby Road for 1.5 miles. Turn left on to Mocal Road and right onto Crocker Springs Road for 5.5 miles.

c. Hazards

1. The lease has been inactive for many years, therefore parts of the road leading to the wellsite contain overgrown weeds and plants that cover the road. Some parts of the road are also narrow.

2. Worksite hazards may include snakes, spiders, trip, and fall hazards.

3. H2S may also be present.

3.2. Period of Performance

a. The period of performance for this contract shall be from the date of the award for a period of twelve (12) months.

3.3. Special Considerations

a. The Contractor shall furnish all permits, labor, supervision, vehicles, equipment, materials, supplies, and incidentals necessary to perform the well abandonment.

b. The performance of work hereunder shall be subject to the technical direction of the COR appointed in writing by the Contracting Office. The COR and the Contractor shall work together closely to ensure that all contractual requirements are being met.

APPENDIX 1:

United States Department of the Interior Bureau of Land Management

Bakersfield Field Office, Region 8/10 35126 McMurtrey Ave

Bakersfield, California 93308-6837 www.ca.blm.gov/bakersfield

3100 (P)

CACA 41637

LLCA060.96

35126 McMurtrey Ave Bakersfield, California 93308 Attn: Contractor

Re: Plug and Abandonment of Well Sevier 14-1 on Lease CACA 41637, Sec. 14, T31S, R21E, MDB&M, Crocker Canyon Field, San Luis Obispo County, California

Dear Contractor, Enclosed is an approved copy of your Sundry Notice to plug and abandon the orphan well “Sevier” 14-1 (drilled in 2006 by Venoco). This approval is subject to the CONDITIONS OF APPROVAL attached to the Sundry Notice and is valid for a period of one (1) year from the day of approval.

Any questions concerning this approval should be directed to the BLM Petroleum Engineer - Silvet Holcomb at (661) 391-6137 (office), (661) 619-0113 (cell), or email at sholcomb@blm.gov.

Sincerely, Kevin Coodey Assistant Field Manager-Minerals

Enclosures

SHolcomb:ssh 03-23-22 mailto:sholcomb@blm.gov

OPERATOR: Contractor

LEASE NO.: CACA 41637

WELL NO.: “Sevier” 14-1

API NO.: 04-079-21097

SEC.: 14 T31S, R21E

FIELD/AREA: Crocker Canyon COUNTY: San Luis Obispo County STATE: California

GOVERNMENT CONTACTS

OFFICE: Bakersfield Field Office

ADDRESS: 35126 McMurtrey Ave Bakersfield, California 93308-6837

OFFICE PHONE: (661) 391-6000

FAX NUMBER: (661) 391-6156

OFFICE HOURS: 7:30 A.M. to 4:15 P.M.

Monday through Friday

AFTER OFFICE HOURS, WEEKENDS, HOLIDAYS call (661) 391-6130

AUTHORIZED OFFICER'S DESIGNATED REPRESENTATIVES

Kevin Coodey Assistant Field Manager Work Phone: (661) 391-6051

Authorized Officer Cell Phone: (661) 369-0200

Silvet Holcomb Petroleum Engineer Work Phone: (661) 391-6137

Cell Phone: (661) 619-0113

Dave Faires Natural Resource Specialist Work Phone: (661) 391-6018 Cell Phone: (310) 529-5598

Stephen Stith Supervisor- Petroleum Engineering Work Phone: (661) 391-6135

Technician Cell Phone: (661) 747-3024

A COPY OF THESE CONDITIONS OF APPROVAL MUST BE FURNISHED TO

YOUR FIELD REPRESENTATIVE AND BE AVAILABLE AT THE WELL SITE

SPECIFIC REQUIREMENTS

WELL ABANDONMENT

Lease: CAS 41637 Well: “Sevier” 14-1

1. A 24-hour notification shall be given to the BLM at (661) 391-6151 (24-hour message line) during all hours (office hours, after hours, weekends, and holidays) prior to commencing completion/recompletion/abandonment operations. Please make sure to have the following information handy before you call.

Contractor name, field name, federal lease number, well name and number, API Number, type of well (oil well, temperature observation well, injection/water disposal well, monitor well), Section, Township, Range; Rig number, Type of operation (such plug and abandonment of well, workover, or recompletion), your name and phone number.

2. Please Note: While reviewing the approved plug and abandonment permits from the BLM and CalGem, operators on federal oil and gas leases shall use the most stringent requirements of the two agencies for all downhole operations.

3. A 2M BOP system with hydraulic controls shall be installed on the surface casing and a 2M lubricator shall be used for wireline operations.

4. Hole fluid of a quality and in sufficient quantity shall be used to control all sub surface conditions in order to prevent blowouts.

5. Hydrogen Sulfide (H2S) may be present in this area. Adequate safety precautions shall be taken prior to and during well operations.

6. Prior to commencing operations, the contractor shall instruct all rig personnel on the potential hazard and control of wells which operate in active steam zones.

7. All portions of the hole not plugged with cement shall be filled with inert mud fluid having a minimum gel-shear strength of 26 lb/100 sq. ft.

8. If plan requires to perforate/cavity shot for Bradenhead squeeze, pressure test the surface casing to ensure casing integrity. If this test fails, a retainer/packer shall be used for cement squeeze job.

9. Remove the removable bridge plug set at 4115’. A diligent effort shall be made to clean out to 5895’ (ED) so the well can be plugged with cement from that depth. If unable to clean out to 5895', notify the BLM Petroleum Engineer, Silvet Holcomb (661-619-0113) for a revised abandonment program.

10. Cement Plug 1:

Lay a cement plug from 5895’ 4095’ (to isolate perfs from 4397’ to 4195’). This plug shall be tagged.

11. Cement Plug 2:

Perforate a 5’ interval in the 5½" casing from 2150’- 2145’, squeeze sufficient cement to bring top of cement to 130’ inside and outside the casing or until an adequate pressure is reached. This plug shall be tagged.

Surface Plug:

Mix and pump cement from 50’ to surface, down squeeze until an adequate pressure is obtained. Leave pressure on well overnight. Ensure minimum of 50’ cement in all un-cemented annuli at surface.

12. Call our office to witness:

a. The clean-out depth,

b. The location and hardness of plug(s),

c. The completed Surface plug including all annular spaces, and

d. The restored well site prior to filing Final Abandonment Notice (FAN).

GENERAL REQUIREMENTS

WELL ABANDONMENT

Lease: CAS 41637 Well: “Sevier” 14-1

1. All lease operations are subject to the lease terms and stipulations, the regulations of 43 CFR Part 3100, Onshore Oil and Gas Orders, Notices to Lessees (NTLs), and any written instructions or orders of the Authorized Officer. Lessees and operators have the responsibility to see that their exploration, development, production, and construction operations are conducted in manner which also conforms with the State and local laws.

Lessees and operators are held fully accountable for their contractors and subcontractors’ compliance with the requirements of the approved permit.

2. No change shall be made in the approved program and/or BLM requirements without receiving prior approval from the BLM Petroleum Engineer.

3. Cement used for abandonment plugs may be either API grade "neat" cement or 1:1 pozzolan cement. Extenders, such as bentonite may be added to the cement but shall not exceed 3%.

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

4. No cement plug, except the surface plug, shall be less than 25 sacks without the approval of the BLM. All cement plugs, except the surface plug, will have sufficient slurry volume to fill a minimum of 100' of hole/casing, plus an additional 10% of slurry for each 1000' of depth.

5. All intervals between cement plugs shall be filled with drilling mud having a density of 9.0 pounds per gallon (68 pounds per cubic foot) or heavier.

6. Long sections of open hole shall be plugged with cement every 3000 ft.

7. A cement plug, a minimum of 50' in length, shall be placed in all casing annuli which extends to the surface. Surface pours may be used to place annuli plugs provided the annuli contain only water. A 2:1 sand cement mixture is acceptable for annuli plugs.

8. All casing shall be cut off at the base of the cellar or 5' below the final restored ground level, whichever is deeper. The wellbore shall be covered with a steel plate, a minimum of 1/4" thick, and welded in place. A weep hole shall be left in the plate. Engrave plate with the legible well name, well number, and last five digits of the API number.

9. Fluids circulated from the well will be placed in portable tank(s) and properly disposed of upon completion of the plugging operations. Any significant volume of oil recovered from the portable tanks shall be reported to the BLM for evaluation.

10. SUBSEQUENT REPORT OF ABANDONMENT (Form 3160-5) of the downhole plugging operations must be filed as a paper copy at (35126 McMurtrey Ave. Bakersfield, CA 93308) or electronically via email to Diana Cruz at dcruz@blm.gov, within thirty (30) days of completion of the downhole operations.

11. HOT WORK:

The following precautions are to be observed while conducting any hot work:

● When possible, restrict all hot work activities (welding, grinding, buffing, cutting, etc.) to cooler hours of the day when the fire hazard is the lowest.

● Observe adverse weather conditions that will heighten the chance of fire.

● Have fire extinguisher, water, and/or shovels on location, and be prepared to extinguish all fires and call 911 for help, if needed.

12. HISTORIC, CULTURAL, and PALEONTOLOGICAL RESOURCES:

The operator shall be responsible for informing all persons associated with this project that they shall be subject to prosecution for damaging, altering, excavating or removing any archaeological, historical (see below), or vertebrate fossil objects or site (ARPA 1979. (as amended) Sec. 6, Sec. 7). If archaeological, historical, or vertebrate fossil materials are discovered, the operator shall suspend all operations that further disturb such materials and immediately contact the Authorized Officer.

This area may contain historic items related to the development of the Kern County oil industry. All historic artifacts, features, and historic trash piles are to be avoided during the drilling/plugging operations, including items that are often deemed “junk” by non-cultural resource personnel. If ground disturbing activities unearth any of the above mentioned items, all work at the location must cease and the Bakersfield Field Office

BLM archaeologist must be contacted in order to determine the age and significance and to identify proper mitigation procedures.

Within five (5) business days, the Authorized Officer will evaluate the discovery and inform the operator of actions that will be necessary to prevent loss of significant cultural or scientific values.

The operator shall be responsible for the cost of any mitigation required by the Authorized Officer. The Authorized Officer will provide technical and procedural guidelines for the conduct of mitigation. Upon verification from the Authorized Officer that the required mitigation has been completed, the operator shall be allowed to resume operations. Any questions regarding this COA, contact the BLM Archaeologist.

13. PALEONTOLOGY:

In the event of inadvertent discovery of paleontological resources during project implementation, the BLM Field Office Paleontological Staff and the BLM Field Manager (661-391-6000) shall be immediately notified by personnel responsible for the project. All work at the site of discovery, and in any other locations where damage to the discovery could occur, shall cease until written approval by the BLM.

CONDITIONS OF APPROVAL for SURFACE RECLAMATION:

1. Clean well site and remove all cut casing, concrete, scrap metal, treated wood waste, solid/fluid waste and dispose of off-lease at an appropriate disposal facility.

2. Take care to minimize impacts to any existing saltbush. Remove only enough vegetation to access the well head and provide a safe work site. Avoid adjacent vegetation/habitat/burrows (if any).

3. No off-road vehicle travel outside the approved project area unless authorized by

BLM Natural Resource Specialist or the BLM COR.

4. All vehicles, equipment, and materials shall be restricted to roads previously cleared/disturbed areas unless authorized by BLM Natural Resource Specialist or

BLM COR.

5. All above ground flowlines, valves, well cellar, gravel base, and treated wood waste associated with the well shall be removed and disposed of at an appropriate disposal facility. The remaining buried flowlines shall be purged of oil, filled with an inert fluid, and the ends capped. The method for abandonment of associated flowlines shall be documented in the well abandonment history and any reports to the BLM.

6. Any hazardous materials/waste shall be removed and disposed of in accordance with the

Department of Toxic Substances Control (DTSC) requirements.

7. The well pad will be graded and leveled as much as feasible.

8. If you have any questions concerning rehabilitation of the well site, please contact Danny Ojeda at (661) 336-8460 or Dave Faires at (310) 529-5598 (cell).