DQ-PHAA-2015-1098 - Redwine PA-Final.doc

Colorado Department of Natural Resources

DOCUMENTED QUOTATION

Special Conditions and Bid Information Redwine Resources, Inc. Bond Claim South Nucla Unit #1-32 Plugging and Abandonment Project

PHAA-2015-1098

1.0 GENERAL CONDITIONS

The Colorado Oil and Gas Conservation Commission (COGCC) is bidding this project using an informal Documented Quotation procedure in coordination with the Colorado Department of Natural Resources Purchasing Office. This request for Documented Quotation incorporates the Special Conditions described herein. The attached Wellbore Diagram Drawings, Bid Schedule, General Conditions for Purchase Orders (attached), Purchase Order Terms and Conditions, List of Equipment Offered Form, Special Provisions, and other Contract Documents described in the General Conditions for Purchase Orders are hereby incorporated by reference.

1.1 PROJECT WORK SUMMARY AND LOCATION

The work will include plugging and abandonment of the South Nucla Unit #1-32 well, located in the SW/4 of the NE/4 of Section 1, Township 46 North, Range 14 West, NM P.M., Montrose County, Colorado. The wellbore configuration and plugging procedure are described in Section 2.0 Project Work Description. A $30,000.00 plugging bond was claimed by COGCC on (Commission Order No. 1V-470). Any costs to plug and abandon the South Nucla Unit #1-32 well in excess of the $30,000.00 bond will be paid from the Plugging and Well Reclamation portion of COGCC’s Oil and Gas Conservation and Environmental Response Fund. Closure of an existing reserve pit and reclamation of the well pad and associated access roads will be performed by others under a separate contract.

1.2 PRE‑BID MEETING AND SITE SHOWING

Bidders shall visit the site and take such other steps as may be reasonably necessary to ascertain the nature and location of the work, including average climatic conditions and the general and local conditions which can affect the work or the cost thereof. Failure to do so will not relieve bidders from responsibility for estimating properly the difficulty or cost of successfully performing the work.

A mandatory pre-bid meeting and site showing will be held on Wednesday, April 1, 2015 at 1:00 PM. All contractors must register for the pre-bid meeting and site showing with Dave Andrews, COGCC Supervising Engineer, @ 970-625-2497 x 1 (or david.andrews@state.co.us) prior to Tuesday, March 31, 2015 at 1:00 PM. The location is not signed. COGCC staff will meet bidders at the intersection of Highway 90 and the access road to the well. The site is located approximately 14 miles (about a 30 to 40 minute drive) east of Naturita, CO on Highway 90.

Bids will not be considered from any contractor that does not attend the pre-bid meeting and site showing. A sign-in sheet will be available at the pre-bid meeting for firms to register their attendance. It is the bidder's responsibility to make certain their attendance is recorded on the sign-in sheet. Failure to sign-in as directed by the PROJECT MANAGER will be cause for rejection of a bid. Bidders are cautioned that, notwithstanding any remarks or clarifications given at this meeting and site showing, all terms and conditions of the contract documents remain unchanged unless they are changed by written amendment issued by the OWNER. If the answers to questions or any amendment to the Contract Documents create ambiguities, it is the responsibility of the bidder to seek clarification prior to submitting a bid.

1.3 BID SUBMITTAL

The bid due date for this project is Thursday, April 9, 2015 at 4:00 PM. Bids will be accepted by mail, facsimile, hand carried or via e-mail as a Word or Portable Document Format (PDF) file attachment and must be sent to the Department of Natural Resources Purchasing Agent:

Allan Smith, Purchasing Agent

Department of Natural Resources Purchasing Office

1313 Sherman Street #423

Denver, CO. 80203

Phone: (303) 866-3292 X8631

Fax: (303) 866-5575

Email: allan.smith@state.co.us

A responsive bid must include the following:

BID SCHEDULE, properly completed CONTRACTOR’S Equipment, Personnel and Materials Rate Schedule

List of Equipment Offered Form

Bids will not be accepted directly by the COGCC. Bids must be submitted to the Department of Natural Resources Purchasing Office, as indicated above.

1.4 LIST OF EQUIPMENT OFFERED

The List of Equipment Offered Form must be returned with each bid. All equipment to be used on the project must be listed on the form or attached to the form. The CONTRACTOR must own, have a current lease for the equipment intended to be used to perform the work, or must furnish a statement of arrangements to rent, or otherwise procure, adequate equipment to perform the work. Inclusion of a piece of equipment on the List of Equipment Offered represents a commitment to devote that piece of equipment to the project work for the entire duration of the project. If several contractors propose to join together to perform the work under this contract, equipment owned or controlled by each should be listed and the PRINCIPAL REPRESENTATIVE identified. A contract will not be awarded to a bidder who in the opinion of the PROJECT MANAGER (a) does not have adequate equipment, or (b) does not have firm and satisfactory arrangements to obtain adequate equipment to perform the work described in this Documented Quotation.

1.5 BID AWARD

Award will be made with reasonable promptness, by written notice to the low responsive and responsible bidder whose bid meets the requirements and criteria set forth in this Documented Quotation. These criteria will include, but not be limited to the lowest GRAND TOTAL PRICE, corrected if necessary for errors in price extension and/or addition, and capability to meet the performance time requirements. In the case of mathematical discrepancies, the unit price shall govern. The GRAND TOTAL PRICE will be used for comparing bids only.

1.6 RESIDENCE BIDDER PREFERENCE

When a contract for commodities or services is to be awarded to a bidder, a resident bidder shall be allowed a preference against a nonresident bidder equal to the preference given or required by the state in which the nonresident bidder is a resident.

1.7 SERVICE DISABLED VETERAN OWNED SMALL BUSINESSES (SDVOSBs) PREFERENCE

SDVOSBs, who are incorporated or organized in Colorado or maintain a place of business or have an office in Colorado and who are officially registered and verified as a SDVOSB by the Center for Veteran Enterprise within the U.S. Department of Veterans Affairs. (www.vip.vetbiz.gov) , may receive a 5% preference on their bid. This preference applies only to the price, and the SDVOSBs must still meet all other qualifications required in the bid.

SDVOSBs claiming this preference shall submit documentation of SDVOSB certification issued through the U.S. Department of Veterans Affairs in their response to the solicitation. Bid submissions without this documentation will not be given a preference.

1.8 PURCHASE ORDER CONTRACT

A Purchase order contract will be issued to the awarded bidder. The Purchase Order Contract will include all documents defined in Section 1 of DEFINITIONS of the GENERAL CONDITIONS FOR PURCHASE ORDERS.

1.9 PERFORMANCE TIME REQUIREMENTS

The project shall be started and completed between April 20, 2014 and June 5, 2015. CONTRACTOR shall prosecute the work diligently and complete the work and have equipment removed from the project location, as described in this Documented Quotation, no later than June 5, 2015 at 5:00 PM. The time stated for completion shall include cleanup, as defined in Section 27 of the GENERAL CONDITIONS FOR PURCHASE ORDERS, and final inspection by the PROJECT MANAGER.

1.10 PROJECT OBSERVATION

The PROJECT MANAGER will be at the project site to supervise plugging activities and ensure that each work item is completed and constructed to design specifications. The PROJECT MANAGER will be available during regular business hours (8:00 A.M. to 5:00 P.M.) on weekdays. Any additional inspections will not be scheduled on weekend days or holidays without prior approval of the PROJECT MANAGER. It is the CONTRACTOR’S responsibility to schedule inspections with the PROJECT MANAGER so as not to delay the work. 2.0

PROJECT WORK DESCRIPTION

The following work description applies to the plugging and abandonment of the South Nucla nit 1-32 well in Montrose County, formerly operated by Redwine Resources, Inc.

The work assumes use of steel pits for circulation and cement returns. If CONTRACTOR intends to use earthen pits for plugging and abandonment, then pits must be lined, and CONTRACTOR will be responsible for permitting, constructing, maintaining, and closing the plugging pits in accordance with COGCC’s 900-series and 1000-series rules. The existing reserve pit on location shall not be used as a plugging pit.

Global Positioning System well location data will be measured by COGCC staff. CONTRACTOR will not be responsible for obtaining this data.

2.1

SOUTH NUCLA UNIT 1-32 WELL

2.1.1

DESCRIPTION

PAD:

South Nucla Unit – N46N14W1SWNE, Facility ID 313641

LOCATION:

SWNE 1 T46N R14W, N.M. P.M.

WELL:

South Nucla Unit 1-32, API No. 05-085-06047

STATUS:

Well drilled, cased, cemented, completed, and plugged back (temporarily abandoned downhole)

WELL SUMMARY:

· Directional well

· Spud on March 7, 2008

· 12-1/4” hole with 9-5/8” surface casing to 1502’, cemented w/ 618 sx

· 8-3/4” hole to 9199’ with 4-1/2” production casing to 8563’, cemented w/1802 sx

· 2-3/8” tubing set at 7578’

· Reported Hermosa Group log tops:

· 2620’ – Honaker Trail (potential oil/gas zone)

· 4600’ – Ismay (potential oil/gas zone)

· 6450’ – Akah

· 7000’ – Pinkerton Trail

· Reported Leadville Formation top at 7650’ (objective formation)

· Top of Cement: reported at surface, but COGCC called the log top at 1930’ on the Drilling Completion Report; may be difficult to get a rate for a squeeze

· Total Measured Depth (TMD) = 9199’ (casing set shallow at 8563’ because of hole soughing at depth).

OTHER NOTES:

· Existing plugs are above four different Leadville completions. Uppermost plug (a CICR) expected at 7765’ with 2 sx cement on top.

2.1.2

MATERIALS

Refer to Section 3.0 – Measurement and Payment.

2.1.3

EXECUTION

1. Contact Dave Andrews, PROJECT MANAGER, to schedule a start date and to coordinate any schedule changes.

2. Bradenhead Access.

a. Dig up bradenhead valve (existing valve is partially exposed at surface).

b. Record bradenhead pressure and blow down pressure.

c. Record blow-down characteristics.

d. If shut-in pressure prior to blowdown exceeds ((0.6 psi/ft - 0.433 psi/ft) * 1502 feet) = 251 psi), then discuss procedural changes with COGCC Project Manager. Any additional work related to additional cement squeezes at depths other than those identified herein, would require a Change Order.

e. If no pressure on bradenhead valve when opened, then discuss possible hot-tap procedure with COGCC Project Manager. Any additional work related to hot tapping a new valve would require a Change Order.

3. MIRU.

4. Circulate well one bottoms-up with water using existing tubing. Circulated fluid shal be directed to a tank for subsequent off-site disposal by CONTRACTOR. Assume 105 bbls well fluids plus 20 bbls wash-up and cement returns, for a total of 125 bbls to dispose (assume a single 130 bbl load). Wellbore fluid volume assumes capacity of 4-1/2”, 11.6 ppf production casing, less displacement from the 2-3/8” tubing (assume 4.6 ppf) (7578 ft * (0.0155 bbl/ft - 0.0016 bbl/ft) = 105.3 bbls.

5. Tag cement above existing CICR using tubing (CONTRACTOR may use existing tubing in well with additional tubing as necessary brought on-site by CONTRACTOR) or wireline tag.

6. Run 4-1/2” gauge ring to 4550’. If gauge ring cannot be run to 4550’, then discuss procedural changes with COGCC Project Manager. Any procedural changes would require a Change Order.

7. Load casing with water and pressure test casing above the existing CICR at 7765’ to 300 psi for 15 minutes. If pressure gains or loses 10% or more, then discuss re-testing or procedural changes with COGCC Project Manager. Any additional work related to re-testing, locating casing leaks, or additional cement squeezes at depths other than those identified herein, would require a Change Order.

8. Plug #1 (above Ismay Member top (4600’)):

a. Set 4-1/2” CIBP at approximately 4500’.

b. Dump 2 sx cement on top of CIBP.

9. Plug #2 (above Honaker Trail Member top (2620’)):

a. Set 4-1/2” CIBP at approximately 2505’.

b. Dump 2 sx cement on top of CIBP.

10. Plug #3 (Below Surface Casing Shoe (1502’)):

a. Perforate four (4) holes at 1552’ and monitor pressure and flow up the surface casing. Use of mud or kill procedures in the event of a gas kick would require a Change Order. Well must be static prior to proceeding with next step.

b. Set a 4-1/2” CICR approximately 50’ above the surface casing shoe or at approximately 1452’.

c. Sting into the CICR. Pump water into perfs to establish rates and pressures for cement. Check for circulation out of the bradenhead valve. Mix & pump 85 sx of cement leaving approximately 72 sx in the annulus, 8 sx in the casing, and 5 sx spotted on top of the CICR. Volume assumes 12-1/4” rathole below surface casing shoe, 36 ppf surface casing, 11.6 ppf production casing, and Class G neat cement ((100 ft /11.459 lf/cf / 1.15 cf/sk) + (50 ft / 1.4124 lf/cf / 1.15 cf/sk) + (50 ft / 3.090 lf/cf / 1.15 cf/sk)) * 150% = (7.6 sx + 30.8 sx + 14.1 sx) * 150% = 79 sx (round up to 80 sx).

11. Wait on Cement 8 hrs, and check bradenhead pressure. If significant pressure is observed, then discuss procedural changes with COGCC Project Manager. Any additional work related to additional cement squeezes at depths other than those identified herein, would require a Change Order.

12. Cut Casing.

a. Cut casing in preparation for running 1” tubing to place the surface plugs.

13. Plug #4 (50’ to Surface):

a. Run in casing with 1” tubing to 50’.

b. Mix 20 sx cement. Use water to establish circulation up the casing. Pump 5 sx cement, and circulate cement to surface. TOOH with tubing and run in bradenhead annulus to 50’. Use water to establish circulation up the annulus. Pump 15 sx cement, and circulate cement to surface. TOOH with tubing. Volume assumes 36 ppf surface casing, 11.6 ppf production casing, and Class G neat cement ((50 ft /11.459 lf/cf / 1.15 cf/sk) + (50 ft / 3.090 lf/cf / 1.15 cf/sk)) = (3.8 sx + 14.1 sx) = 17.9 sx.

c. Wait on cement 8 hours. Check cement tops in casing and annulus. Top off if cement tops fall below a depth of four feet below final grade.

14. Cut all casing strings off at 4’ below final grade, weld plate with weep hole, and backfill well cellar.

15. RDMO drill rig and CONTRACTOR equipment. Cut off and bury all anchors.

16. Pad reclamation and re-seeding will be performed by others.

3.0 MEASUREMENT AND PAYMENT

CONTRACTOR shall furnish all labor, materials, tools, equipment, appurtenances, incidentals and all services necessary to perform all work required at the lump sum or unit prices for the items listed below beginning in Section 3.1. These items refer to and are the same items as listed in the Bid Schedule. They constitute all of the pay items for the completion of the work. Each lump sum and unit price bid will be deemed to include an amount considered by CONTRACTOR to be adequate to cover CONTRACTOR’S overhead and profit for each separately identified item.

Quantities of work shall be measured in the field by the CONTRACTOR and verified by the PROJECT MANAGER. CONTRACTOR’S original daily job logs, field notes, computations, and other records for the purpose of measuring quantities shall be furnished to the PROJECT MANAGER within two (2) working days of completion and may be used by the PROJECT MANAGER to the extent necessary in determining the proper amount of payments due to the CONTRACTOR. The CONTRACTOR shall retain a copy of the daily job logs, original notes, computations, and records furnished to the PROJECT MANAGER.

CONTRACTOR’S daily job logs shall include accurate records of the daily progress of the work and shall record the progress on a format acceptable to PROJECT MANAGER. Daily job logs shall include at a minimum the following information:

1. CONTRACTOR name, project name, date of field work

2. Identify by individual, all CONTRACTOR and SUBCONTRACTOR personnel on-Site for the day.

3. Summarize the work completed, including plugging procedures, and the materials used.

4. List the major equipment used to complete the work.

5. Provide an hourly tally for time on-location, including a separate hourly tally for any standby time.

6. Identify all standby time including but not limited to; repairs or maintenance, breakdown, accidents, time spent waiting-on-cement and work stoppage directed by PROJECT MANAGER or OWNER.

7. CONTRACTOR’S superintendent shall sign the completed daily job log upon completion.

Applications for Payment shall be submitted to the PROJECT MANAGER for review and approval at least five (5) working days prior to final submission to OWNER.

Payment will be made for actual quantities at the unit prices listed on the Bid Schedule only when approved and verified by the PROJECT MANAGER. If a change order is approved, which includes work for items not listed in this section, then unit costs listed on CONTRACTOR’S Rate Schedule will be considered by the PROJECT MANAGER when authorizing payment.

3.1

MOBILIZATION/DEMOBILIZATION

3.1.1 DESCRIPTION

This specification covers the CONTRACTOR'S operations for:

1. Payment of premiums for bonds and insurance acquired specifically for this project, including premiums for performance and payment bonds, if any.

2. Obtaining and acquiring any permits necessary to complete this project.

3. Movement of CONTRACTOR'S personnel, equipment, operation supplies, and incidentals to the project site.

4. Establishment of necessary temporary facilities, including sanitation facilities, and any required temporary utilities, at the project site.

5. Preparatory work at the project sites, including excavation of the bradenhead access.

6. Demobilization of CONTRACTOR'S equipment and all other facilities, final project clean‑up.

7. Any travel time and per diem for CONTRACTOR’S crew or SUBCONTRACTOR’S crew.

3.1.2 EXECUTION

Upon receipt of Notice to Proceed, the CONTRACTOR shall furnish, mobilize, move in and install such temporary works and equipment necessary for the successful completion of the work. CONTRACTOR shall operate and maintain such temporary works and equipment for the duration of work at each project location. CONTRACTOR shall provide for movement of CONTRACTOR’S personnel and supplies to and from each project location on a daily basis, and CONTRACTOR shall consider daily crew lodging and meals per diem with this bid item. A Change Order for additional crew per diem may be considered by the PROJECT MANAGER if the actual Plug and Abandon hourly quantity (Section 3.2) exceeds the estimated Plug and Abandon quantity shown on the Bid Schedule by more than twenty (20) percent. Any preparatory work at each project location necessary to move in and position CONTRACTOR’S equipment shall be included as mobilization.

Upon completion of the work under this contract, the CONTRACTOR shall remove all temporary facilities and equipment. The CONTRACTOR shall remove from the vicinity of the work and haul all rubbish, trash, garbage, and debris to a county-approved disposal site. Additionally, the CONTRACTOR shall remove from the vicinity all unused materials, and the like, belonging to the CONTRACTOR or used under the CONTRACTOR'S direction during construction. The contractor shall fill and dress all holes and disturbances made for convenience, and leave all areas in good order and condition, subject to final inspection and approval by the PROJECT MANAGER.

3.1.3 MEASUREMENT AND PAYMENT

Measurement shall be made based on mobilization to and demobilization from the project location or this bid item. Payment at the bid price shall constitute full compensation for all of the CONTRACTOR’S costs of whatever nature to mobilize to and demobilize from the project location.

3.2 PLUG AND ABANDON

3.2.1 DESCRIPTION

This specification covers the CONTRACTOR’S time on-location for labor and equipment required to complete the work specified in Section 2.0 – Project Work Description. Hourly unit costs shall include all costs that the CONTRACTOR deems necessary to complete the work for which payment is not otherwise specifically itemized on the Bid Schedule. Materials used to complete the work are described in subsequent sections of this Documented Quotation, and therefore are not itemized in this section.

The CONTRACTOR shall provide the following minimum personnel, equipment, and services:

1. Provide a Superintendent with whom the PROJECT MANAGER and OWNER can communicate and who will supervise the work and be fully responsible for the performance thereof. The Superintendent shall be present at the project site whenever work is being performed at the project site.

2. Provide an experienced crew sufficient to operate CONTRACTOR’S equipment in a safe and diligent manner.

3. Provide mast truck with tubing handling tools. Provide any additional tubing necesary for the work (7,578 feet of 2-3/8 inch tubing is reportedly in the hole). Provide pumps, a power swivel and drill bit(s).

4. Provide a steel pit for circulated fluid and wash up fluid. Separate payment will not approved for the installation, monitoring, maintenance, closure, and reclamation of earthen pits. If CONTRACTOR chooses to use a plugging pit, rather than a steel pit, then all associated costs for the plugging pit shall be incorporated into the unit cost for this bid item.

5. Provide welder services and materials necessary to cut casing strings and weld plates.

Any additional equipment or services that the contractor deems necessary to complete the work specified in Section 2.0 – Project Work Description shall be included in the CONTRACTOR’S List of Equipment Offered, and if these equipment or services are used to complete the work, then the cost for these services shall be incidental to the hourly unit cost for the Plug and Abandon line item on the Bid Schedule.

Daily travel time to and from the location to a lodging location chosen by the CONTRACTOR and any associated per diem for lodging and meals during the work for CONTRACTOR’S crew or SUBCONTRACTOR’S crew is not considered hourly time under this bid item. Crew per diem costs should be considered with the Mobilization/Demobilization bid item (Section 3.1).

3.2.2 EXECUTION

Refer to Section 2.0 – Project Work Description.

3.2.3 MEASUREMENT AND PAYMENT

The CONTRACTOR shall submit daily job logs to the PROJECT MANAGER to verify hourly quantities for plug and abandon labor, equipment and services for time on location. Payment will be based on the total number of hours listed on the daily job logs and verified by the PROJECT MANAGER at the bid price, except as noted below. Standby time will be paid at a unit rate equal to seventy-five (75) percent of the bid price for hourly time. Daily travel time and per diem will not be considered as hourly time with this bid item. Payment shall constitute full compensation for all of the CONTRACTOR’S costs of whatever nature to plug and abandon the well.

3.3 PERFORATION SERVICES

3.3.1 DESCRIPTION

The CONTRACTOR shall perforate one (1) set of squeeze holes, as described in Section 2.0 – Project Work Description. Perforations shall be four (4) shots per set, with one (1) foot perforated per set, and a 0.38-inch shot diameter.

3.3.2 EXECUTION

3.3.3 MEASUREMENT AND PAYMENT

The CONTRACTOR shall submit daily job logs to the PROJECT MANAGER to verify quantities for perforation sets. Payment will be based on the total number of sets perforated, as listed on the daily job logs and verified by the PROJECT MANAGER at the bid price. Payment shall constitute full compensation for all of the CONTRACTOR’S costs of whatever nature to perforate squeeze holes.

3.4 CEMENT RETAINERS

3.4.1 DESCRIPTION

The CONTRACTOR shall provide and install one (1) Weatherford or Bolt 10,000 psi differential CICR’s, or equivalent, as approved by the PROJECT MANAGER, at the depths specified in Section 2.0 – Project Work Description. The CONTRACTOR shall place cement on top of the CICR’s as specified in Section 2.0 – Project Work Description.

3.4.2 EXECUTION

3.4.3 MEASUREMENT AND PAYMENT

The CONTRACTOR shall submit daily job logs to the PROJECT MANAGER to verify quantities for cement retainers. Payment will be based on the total number of cement retainers installed, as listed on the daily job logs and verified by the PROJECT MANAGER at the bid price. Payment shall constitute full compensation for all of the CONTRACTOR’S costs of whatever nature for cement retainers. Measurement and payment for cement placed on top of CICR’s shall be in accordance with Section 3.6 – Cement Services.

3.5 CAST IRON BRIDGE PLUGS

3.5.1 DESCRIPTION

The CONTRACTOR shall provide and install two (2) Alpha Midget #2 CIBP’s, or equivalent, as approved by the PROJECT MANAGER, at various depths, as described in Section 2.0 – Project Work Description. The CONTRACTOR shall place cement on top of the CIBP’s as specified in Section 2.0 – Project Work Description.

3.5.2 EXECUTION

3.5.3 MEASUREMENT AND PAYMENT

The CONTRACTOR shall submit daily job logs to the PROJECT MANAGER to verify quantities for CIBP’s. Payment will be based on the total number of CIBP’s installed, as listed on the daily job logs and verified by the PROJECT MANAGER at the bid price. Payment shall constitute full compensation for all of the CONTRACTOR’S costs of whatever nature for CIBP’s. Measurement and payment for cement placed on top of CIBP’s shall be in accordance with Section 3.6 – Cement Services.

3.6 CEMENT SERVICES

3.6.1 DESCRIPTION

The CONTRACTOR shall provide cement services, including circulating, and one hundred nine (109) sacks of cement mixed with sufficient water to achieve a density of 15.8 ppg and a yield of 1.15 cu ft yield per sack. The CONTRACTOR shall provide water on location in sufficient quantities to circulate the wellbore and mix the cement. The CONTRACTOR shall also provide a means to transport water to and store water on location.

Cement plugs shall be installed by the CONTRACTOR at various depths, as described in Section 2.0 – Project Work Description. Cement shall be Southwest Portland G common cement without additives. Any changes in the type of cement must be approved by the PROJECT MANAGER. Cement shall be mixed to American Petroleum Institute standards, such that the slurry design will achieve a minimum compressive strength of three hundred (300) psi after twenty-four (24) hours and eight hundred (800) psi after seventy-two (72) hours measured at ninety-five (95) degrees Fahrenheit and at eight hundred (800) psi.

3.6.2 EXECUTION

3.6.3 MEASUREMENT AND PAYMENT

The CONTRACTOR shall submit daily job logs to the PROJECT MANAGER to verify cement quantities. Cement shall be measured by 94-pound sacks. Payment will be based on the total sacks of cement installed, as listed on the daily job logs and verified by the PROJECT MANAGER at the bid price. Payment shall constitute full compensation for all of the CONTRACTOR’S costs of whatever nature for cement services, including water. Water used for circulating and mixing cement shall be considered incidental to the unit cost for cement services.

3.7 SOLID WASTE MANAGEMENT

3.7.1 DESCRIPTION

All solid materials, including materials that solidify from circulated wellbore fluids, or solids that come in contact with wellbore fluids shall be considered oil and gas exploration and production (E&P) solid waste. The CONTRACTOR shall provide a means to temporarily store E&P solid waste on site, and the storage process shall be designed such that the E&P waste shall not come in contact with native soils, surface water, or well pad fill. The CONTRACTOR shall provide a means to handle and transport E&P solid waste to a licensed off-site disposal facility.

3.7.2 EXECUTION

3.7.3 MEASUREMENT AND PAYMENT

Measurement will be based upon 100% completion of solids storage, handling, transportation, and disposal. CONTRACTOR shall provide a disposal certificate from a county-approved disposal facility to the PROJECT MANAGER for solids disposal. Lump sum payment at the bid price shall constitute full compensation for all of the CONTRACTOR’S costs of whatever nature to complete solid waste management.

3.8 LIQUID WASTE MANAGEMENT

3.8.1 DESCRIPTION

All liquids that are circulated from the wellbore shall be considered oil and gas E&P liquid waste. The CONTRACTOR shall provide a means to temporarily store E&P liquid waste on site, and the storage process shall be designed such that the E&P waste shall not come in contact with native soils, surface water, or well pad fill. The CONTRACTOR shall provide a means to handle and transport E&P liquid waste to a licensed off-site disposal facility. Disposal of any unused circulation fluid is also covered under this item.

3.8.2 EXECUTION

3.8.3 MEASUREMENT AND PAYMENT

Measurement will be per load (up to 130 barrels for each load) of liquids disposal. CONTRACTOR shall provide a disposal certificate from an approved E&P disposal facility to the PROJECT MANAGER for solids disposal. Payment will be based on the total loads of liquid disposed, as listed on the daily job logs and verified by the PROJECT MANAGER at the bid price. Payment shall constitute full compensation for all of the CONTRACTOR’S costs of whatever nature for E&P liquid disposal.

4.0

LIST OF ATTACHMENTS

DNR General Conditions for Purchase Order

Special Provisions

PO Terms and Conditions

Bid Schedule List of Equipment Offered Drawings Map-Redwine PA