BLM_-_RFI.docx

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Operators for the BLM Helium Plant
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DOILFBO210044
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Request for Information (RFI) Bureau of Land Management (BLM) Plant Operators

I. Introduction:

The Bureau of Land Management (BLM) is conducting acquisition planning for the potential operation of the BLM helium plant. This RFI is intended as a means of conducting market research which will help determine the best method for the anticipated Request for Quote (RFQ) and subsequent procurement.

THERE IS NO RFQ/RFP AT THIS TIME. This RFI does not constitute an RFQ/RFP. Submission of any information in response to this market survey is purely voluntary. The government assumes no financial responsibility for any costs incurred in your firm’s response to this RFI.

The U.S. Department of the Interior, Bureau of Land Management (BLM), Amarillo Field Office (AMFO), currently operates a gas storage reservoir that contains approximately 6.9 BCSF of injected Government and privately-owned helium in a partially depleted natural gas field. The gas field contains 29 wells, which include 18 withdrawal wells, 6 injection wells, and 5 observation wells. The storage reservoir is located approximately 15 miles northwest of Amarillo, Texas at the Cliffside site. A 425-mile crude helium gas transmission pipeline connects private grade-A and crude helium production plants to the storage reservoir.

The mission of the organization changed to start delivering and selling helium to private companies in about 1998. A privately-owned Crude Helium Enrichment Unit (CHEU) was designed and built to process up to 40 MMSCFD of feed gas from the Government helium storage field. The plant could extract natural gas with helium and reject nitrogen to produce crude helium product and a salable residue hydrocarbon gas.

A government-owned compressor has been added before the CHEU feed to increase pressure from the Bush Dome Reservoir to the pressure needed to process the gas in the CHEU.

Privately owned compression (three (3) Waukesha Compressors) has also been added after the helium product stream to bring pressure up to 1,600 PSIG for the crude helium transmission pipeline.

A government-owned natural gas chiller and natural gas liquids tank has been added after the residue product stream to decrease the hydrocarbon dew point to allow sale of reside gas to natural gas transmission pipeline customers. The chiller produces refrigeration, which enables the condensation of various hydrocarbon liquids that are sold and transported by truck.

A government-owned natural gas liquids storage and offloading skid has been added after the chiller unit to accept the produced liquids and store and offload to a third-party contractor purchasing these produced liquids. Trucks typically accept delivery two-three times a week.

Acronyms/Definitions

Term/Acronym
Definition
°F
Degrees Fahrenheit
BLM
Bureau of Land Management
BSCF
Billion standard cubic feet, measured at 14.65 psi and 60 °F
Consumables
Items generally used up within the year, however, items that are normally replaced only

during a scheduled plant turnaround are not considered consumables in this definition.

COR
Contracting Officers Representative
Crude Helium
Gas containing greater than 50% helium
gr
Grain
HAZOP
Hazard and Operability study
MMSCF
Million standard cubic feet, measured at 14.65 psi and 60 °F
MMSCFD
Million standard cubic feet per day, measured at 14.65 psi and 60 °F
MMSCFY
Million standard cubic feet per year, measured at 14.65 psi and 60 °F
MOC
Management of Change
mol %
Mole percent
MSCF
Thousand standard cubic feet, measured at 14.65 psi and 60 °F
MSCFD
Thousand standard cubic feet per day, measured at 14.65 psi and 60 °F
OSHA
Occupational Safety and Health Administration
P&ID
Piping & Instrumentation Diagram
PFD
Process Flow Diagram
PHA
Process Hazard Analysis
ppm
Parts per Million
psig
Pounds per square inch gauge
REGAGEP
Recognized and Generally Accepted Good Engineering Practices
SCF
Standard cubic feet, measured at 14.65 psi and 60 °F
SOP
Standard Operating Procedure
v/v%
Volume/volume %

Location Performance of this contract shall be at the Cliffside Gas Field in Potter County, Texas.

Specifications The Contractor shall provide operators for the contractor owned CHEU and Government furnished equipment in accordance with OSHA regulations, other applicable safety regulations, Recognized and Generally Accepted Good Engineering Practices, and CHEU Operations Checklist (SWIMs Manuals). Standard practice is a minimum of 1 operator per 12hr shift preferred would be 2 operators per 12hr shift. The plant performs to the following specifications:

Feed (in accordance with section 4.1.3) Flow Rate: 10 to 25 MSCFD Processing from gas containing 2% to 20% helium Over time, the percentage of helium in the feed will decrease, and the percentage of hydrocarbons will increase.

Below is the current composition by mol%:

C1
51.29
C2
2.8
C3
1.5
NC4
0.51
IC4
0.25
NC5
0.14
IC5
0.11
C6+
0.16
H2
0.16
N2
24.8
CO2
0.78
He
17.5 (Specific Gravity 0.64)

Below is the expected/projected composition by mol%:

C1
55.6000
C2
2.7724
C3
1.4852
NC4
0.5050
IC4
0.2475
NC5
0.1386
IC5
0.1089
C6+
0.1584
H2
0.1584
N2
24.5559
CO2
0.7723
He
13.5000 (Specific Gravity 0.654)

Water Content: 50-70 LB/MMSCF (free of gross amounts of liquid water.

Specific Gravity: 0.64 (Gravity will change with composition).

Inlet Pressure (K100 Compressor): 160 to 260 psig Temperature: 0 to 110 °F

Helium Product Stream:

Flow Rate: 500 to 800 MMSCFY Pressure: 650 to 1600 psig Temperature: less than 110 °F Composition

He
> 50 mol%
H2
< 2.3 mol%
C1
< 2.5 mol%
C2+
< 30 ppm
Ne
< 30 ppm
CO2
< 200 ppm

Water Vapor: < 7 LB/MMSCF

Residue Product Stream Pressure: > 600 psig < 800 psig (K600 limitation) Temperature: 50 to 120 °F Composition

O2
< 0.2 v/v%
CO2
< 2 v/v%
Diluents
< 3 v/v% (combined CO2, N2, O2, He, and other diluents)
Total Sulfur
< 5 gr/100 SCF
Hydrogen Sulfide
< 0.25 gr/100 SCF
Mercaptan Sulfur
< 0.75 gr/100 SCF
Organic Sulfur
< 1.25 gr/100 SCF

Water Vapor: < 7 LB/MMSCF Heating Value: > 967 BTU/SCF and < 1100 BTU/SCF Hydrocarbon Dew Point: < 20 °F at normal pipeline operating pressure (600 psig minimum) Free of Solids and liquids (water and hydrocarbon)

Helium Output The daily rates are listed below:

Year
Daily MMcf
Annual MMcf
2020
2.5
872
2021
2.3
750
2022
2.0
530
2023
1.8
495

Saleable products include crude helium 2.1-2.5 million cubic feet per day, 235,700 Mcf natural gas per month, and natural gas liquids at 89,400 gallons per month. These are full year averages for FY 2019. Prices adjust annually for helium, Monthly for natural gas liquids and daily for natural gas. Contractor will interact with the gas company for daily nominations as directed by the BLM engineering staff. Assumes no additional volumes added

Contractor/Government Responsibilities

Contractor Responsibility
Government Responsibility
Maintain helium production through operations of the CHEU
Determining the production and delivery rate to meet customer needs, BLM will provide production rates to the Contractor as needed
Assume all responsibilities for Process Safety Management
All pipeline and the Bush Dome helium storage reservoir related activities and contracts
Supply Fire Resistant (FR) Clothing and Personal Protective Equipment for contractor employees
Provide security services for the facility
Remove and dispose of used amine and oil filters. Remove and dispose of oil-soaked material. Remove, analyze, and dispose of used coalescing filters. Replace 55-gallon drums removed during disposal. Vacuum waste liquids from two (2) 55-gallon tanks. Analyze and vacuum waste liquid from DGA solution containment system.
Provide utility services (electricity) to the facility. BLM will provide the Contractor historical usage information at time of exercising option for contractor run facility.
Service and notify the BLM contractor when natural gas liquids are ready to be picked up.
Provide services for saltwater disposal for well produced water and residual hydrocarbons
Follows BLM plant safety protocols for safety permits, lock out tag out, and process safety management inspections.
Provide FLOWCAL software subscription
Flare as necessary/Inject helium product or natural gas product into the field as needed.
All Air Quality Permit related activities and contracts
Inspect on rounds all cable trays and associated cable and heat trace system.
Leak Detection and Repair (LDAR) services (plant wide)
Hand off of operation information between shift changes. Use of whiteboard to convey plant status. Entries into operator log to capture pertinent plant information during their shift.
Mechanical integrity services and general process safety management.
Notification to BLM plant manager/ BLM management if an operational situation occurs.
General support and mechanical repairs would be done by BLM on site staff, helium helpers, electricians, and mechanics.

The gas field and the 425-mile pipeline will be operated and maintained by the BLM.

Shutdowns In consideration of both planned and unplanned shutdowns, the plant shall be operational at least 340 days a year. The performance specifications identified in section 4 of this PWS do not apply during shutdown days.

General Safety

The Contractor shall maintain all company provided equipment in a safe and reliable manner and in accordance with all applicable health, safety and environmental statutes, ordinances, and regulations.

Security

All contract employees shall have a valid security clearance. Refer to FAR 52.204-9 Personal Identity Verification of Contractor Personnel.

Submission Instructions:

Interested parties who consider themselves qualified to perform the above-listed services are invited to submit a response to this RFI. Responses must be emailed to Contracting Officer Emmett Larson (elarson@blm.gov). Please include in your response your firm’s name, contact information, and responses to the questions outlined below.

Questions:

1. What is your firm’s size status and type of ownership [i.e., large business, small business, small disadvantage business, 8(a) firm, etc.]?

2. Is your firm able to provide operators for the plant? Please submit a capabilities statement that outline your capabilities as it relates to this requirement.

3. Where and how would you find staff to operate the plant?

4. How much time would it take once awarded a contract to be able to have your operators on site?

5. What would be your recruitment and retention strategy?

6. The Government believes operators with natural gas background or air separation would be suitable staff to fill operator positions. Would you be able to find staff with this background? What other backgrounds do you believe would be able to meet this requirement?

7. What questions or issues do you have with the above information?

8. Do you have any alternative ideas?

File details come from the government source that posted it. Updated .