AK_Legacy_Wells_-_Industry_Day_Presentation-_7_Jan_15.pdf

I N F O R M A T I O N E X C H A N G E / I N D U S T R Y D A Y

NPR-A LEGACY WELL

REMEDIATION

PROGRAM

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B U D C R I B L E Y , S T A T E D I R E C T O R

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WELCOME!

• Housekeeping

• Facility Orientation

• Meeting Purpose and Structure

• Present overarching goals and Program direction

• Receive feedback from industry about capabilities

• Questions and Answers

• All questions must be submitted in writing on the form provided

• Questions must be within scope of material covered

• Today’s presentation and all pertinent questions and answers will be made available publicly

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AGENDA

Topic Presenter Schedule Orientation to Alaska BLM Bud Cribley 1:05 – 1:10 Legacy Wells Overview Rob Brumbaugh 1:10 – 1:40 The Role of ADEC John Carnahan 1:40 – 1:50 The Role of AOGCC Cathy Foerster 1:50 – 2:00 Statement of Objectives Performance Components

Rob Brumbaugh 2:10 – 2:30

Contracting Strategy Jennifer / Laura 2:30 – 3:00 Break 3:00 – 3:30 One-on-One Meetings

Kodiak A Meeting Room 3:30 – 5:00

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A B R I E F H I S T O R Y

LEGACY WELL PROGRAM

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R O B B R U M B A U G H B L M G E O L O G I S T

LEGACY WELL HISTORY

• Between 1943 and 1952, the U.S. Navy drilled 91 exploratory wells and geologic test holes.

• 28 of the remaining 45 wells were drilled by the U.S. Geological Survey between 1977 and 1982.

• During these periods 136 wells and core tests were drilled.

• The National Petroleum Reserves Production Act of 1976 (NPRPA) changed the name of the Reserve from NPR4 to the NPR-A and transferred administration to the U.S. Department of the Interior (USDOI).

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N P R - A L E G A C Y W E L L S I T E S

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BLM prepared a comprehensive report of the well conditions and risks associated with the Legacy Wells

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RECENT ACTIONS

• In 2004, BLM plugged 4 wells in the Umiat Area (Umiat 3, 4, 8 and 10).

• Wells ranged from a depth of 572-1,573 feet

• Surface Plugs were set

• Site Conditions limited plugging options due to equipment stuck in well

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RECENT ISSUES

• Starting in 2005, dramatic changes in Arctic coastal conditions prompted BLM to seek emergency funding and initiate a Multiyear accelerated Legacy well Plugging, Remediation and monitoring program.

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LESSONS LEARNED

• BLM plugged and remediated 4 high priority wells threatened by accelerated erosion at a cost of $52 Million

• Wells Plugged and Abandoned

• Remediated Reserve Pits

• Sites Affected:

• JW Dalton

• East Teshekpuk

• Atigaru

• Drew Point

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SUMMARY TO-DATE

• 18 wells Plugged by BLM since 2002

• Cost Approximately $80 Million to Federal Government

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T H E F U T U R E

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• MAY 2013

2013 Legacy Wells Summary Report

• September 2013 2013 Legacy Wells Strategic Plan

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• Priority Sites

• Understanding Site Conditions

• Geographic Locations (clusters)

• Mobilization for P&A

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FACTORS

Barrow Cluster - 1

• Iko Bay #1

• South Barrow #3

• Avak #1

• Barrow Core Rig Test #2

GEOGRAPHIC

CLUSTERS

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Barrow Cluster - 2

• Arcon #1

• South Barrow #1

• South Barrow #2 Final Barrow Cluster

• Any Remaining Wells

• 19 Wells within the Barrow

Gas Transfer Act of 1984

GEOGRAPHIC

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Simpson Cluster

• Core Test 13

• Core Test 14

• Core Test 14A

• Core Test 15

• Core Test 26

• Core Test 28

• Core Test 29

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GEOGRAPHIC

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K E E P I N M I N D …

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…QUESTIONS…

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J O H N C A R N A H A N

ALASKA DEPARTMENT

OF ENVIRONMENTAL

CONSERVATION (ADEC)

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C O N T A M I N A T E D S I T E S P R O G R A M D I V I S I O N O F S P I L L P R E V E N T I O N A N D R E S P O N S E

Phase I – Environmental Perspective

Assumption that historical site use has led to a contaminant release – Goal is to determine whether the release is significant enough to warrant action.

• Environmental Objective – Reduce and limit risk of exposure to human health and environment.

• General Process (Individual requirements may vary with each site)

• Review and understand history of use at each site (to the degree possible).

• Verify site conditions through collection of sufficient data.

• Determine the magnitude and extent of identified contamination (through Site Characterization) and solid waste requiring disposal.

• Propose cleanup techniques on which to design a Cleanup Plan for future implementation.

All plans should be coordinated with the DEC Project Manager.

Step 1 ‐ Preliminary Assessment

• Collect historical information and review records.

• Determine likely source areas and chemicals of concern.

• Develop a plan to investigate, verify, and document site conditions that will satisfy DEC and meet the needs of

BLM.

• Implement investigation strategy.

• Summarize conclusions.

The Preliminary Assessment will be the basis for designing a limited sampling effort to determine if contamination is present.

Step 2 ‐ Site Inspection/Initial Sampling

• The Site Inspection consists generally of the implementation of the sampling plan to determine absence or presence of contamination, to determine what warrants further investigation.

• Site Inspection would also likely include inventorying all general solid waste debris for removal – not a DEC regulated action.

• Sampling is limited and not intended to delineate the extent of contamination (however, it may be possible to expand sampling when appropriate to delineate some areas, if prepared to do so).

• The extent of the sampling may vary at each site and will be dependent on the site history, the current condition of the site, and observable areas of interest.

Step 3 ‐ Secondary Sampling/Testing

• Where contamination is confirmed and removal likely, it will be necessary to delineate the extent of contamination – Especially since cleanup will likely be completed in winter and ‘chasing’ contamination may prove difficult.

• A Site Characterization Workplan must be developed in accordance with regulations (18 AAC 75).

• A workplan strategy can likely be developed that can be employed at multiple sites, to document sampling objectives/methods, staffing, safety, quality assurance, etc., to reduce duplication. Site‐ specific criteria, when appropriate, must be provided.

• The Site Characterization report will include proposed cleanup techniques.

All cleanup will take place in Phase II.

Workplan Strategies

• Consider the use of a dynamic workplan strategy that includes a decision matrix to guide sampling strategy and location selection.

• The number of samples will be dependent on the number of potential source areas or areas of interest.

• Consider the use of complimentary sampling/screening methods to help answer specific questions when quantifying the level is less important (i.e., composite sampling may determine if contamination is present, but may not be a suitable technique to quantify contaminant levels).

• Every sample should help to answer a question, so it is important to know the questions to be answered to ensure that only the necessary samples are collected.

• Communication is key, streamlines the process, and helps avoid confusion.

Alaska Department of Environmental Conservation

John Carnahan, Project Manager Division of Spill Prevention and Response

Contaminated Sites Program 601 University Ave., Fairbanks, AK 99709

(907) 451‐2166 – john.carnahan@alaska.gov

C A T H Y F O E R S T E R , C O M M I S S I O N E R

ALASKA OIL AND GAS

CONSERVATION

COMMISSION (AOGCC)

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P E R F O R M A N C E C O M P O N E N T S

STATEMENT

OF

OBJECTIVES

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R O B B R U M B A U G H B L M G E O L O G I S T

• Phase I

• L15PS00025 – Site

Sampling and Testing

• NAICS - 541620 -

Environmental Consulting Services

• Includes Surface Elements Only

• Phase II

• L15PS00024 – Well

Plugging and Abandonment

• NAICS - 562910 -

Remediation Services

• Includes both Surface and

Subsurface Elements

Two-phase strategy

LESSONS

LEARNED

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• Phase I – Site Sampling and Testing

• Consists only of Surface Element Components

• Review of Existing Site Records

• Inventory of Site Debris

• Contaminant Sampling and Testing

• Stage I – Initial

• (Option) Stage II – Secondary

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L15PS00025 – PHASE I

PERFORMANCE GOALS

• Phase I – Site Sampling and Testing

• Final Stage – Develop a Site Cleanup Plan

• Simple Site Cleanup Plan

• (Option) Complex Site Cleanup Plan

• Present BLM Approved Cleanup Plan to the Alaska

Department of Environmental Conservation (ADEC)

• Phase I – Final Deliverable

• Guideline under Phase II for Cleanup of Surface

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L15PS00025 – PHASE I

• Phase II – Well Plugging and Abandonment

• General Components

• Review Existing Site Records Plugging Designs

• Precondition Items

• Contingency Management

• Implement Community Outreach Plan

• Mobilization and Demobilization of Equipment, Resources and Infrastructure

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L15PS00024 – PHASE II

• Phase II – Well Plugging and Abandonment

• Surface Element Components

• Removal of Solid Waste

• Remediation of any contamination per Site Work Plan

• Finalize removal of debris in summer

• Subsurface Element Components

• Well Plugging and Abandonment Implementation

• Closeout

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L15PS00024 – PHASE II

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S T R A T E G Y

ACQUISITION

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L A U R A / J E N N I F E R C O N T R A C T S P E C I A L I S T

Question Answer 1 Is this a follow-on requirement?

No

2 Who is the incumbent?

None

3 What is the contract number?

N/A

4 Is only one firm to be selected for the work for each of the opportunities?

Refer to Acquisition &

Contract Section

5 What is the estimated value of work that you are advertising in 2015?

Refer to Budget Section L15PS00024

L15PS00025

QUESTIONS

RECEIVED

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Should requirements be advertised, those solicitations will take precedence.

Socioeconomic Goals

Stimulate Local Economy

Cost Effective Approach

Performance Based

ACQUISITION

CONSIDERATIONS

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SOCIOECONOMIC GOALS

TO STIMULATE THE ECONOMY

• Small Business Goals

• FAR 19.201(a) - Provide maximum practicable opportunities in its acquisitions to small businesses

• Phase I

• NAICS - 541620 - Environmental Consulting Services

• Set Aside – Size Standard

• $15 Million

• FAR 19.202-1– Encouraging Small Business Participation in

Acquisitions

• (a) Division of Requirement Encouraging Small Businesses

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SOCIOECONOMIC GOALS

TO STIMULATE THE ECONOMY

• Small Business Goals

• FAR 19.201(a) - Provide maximum practicable opportunities in its acquisitions to small businesses

• Phase II

• FAR 19.502-4(a) – Multiple Award Contracts

• May set-aside one contract for Small Business

• Small Business Participation Goals

• Allows fair comparison between large and small businesses

• 20% Minimum

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L15PS00025 - Phase I

• Anticipated Budget

• $5 Million

• Minimum Task Order Value

• $100,000.00

L15PS00024 - Phase II

• Anticipated Budget

• $45 Million

• Minimum Task Order Value

• $1 Million

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COST EFFECTIVE APPROACH

BUDGET

Acquisition

• NAICS - 541620 - Environmental Consulting Services

• Competitive Request for Proposal (RFP)

• Proposal Evaluation – Best Value – Anticipated

Criteria

• Technical approach

• Quality Assurance Plan

• Past Experience

• Past Performance

• Price

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L15PS00025 - PHASE I

ACQUISITION & CONTRACT

Contract Formulation

• Single Award IDIQ

• Potential Incentives

• Term- 3 year base +2 one-year options

• Firm-Fixed Price Line Items

• Base Firm-Fixed Price – Simple Cleanup Plan

• Optional Line Items

• Secondary Sampling and Testing

• Complex Site Cleanup Plan

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L15PS00025 - PHASE I

• Initial Startup

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L15PS00025 – PHASE I

ACQUISITION SCHEDULE

Task J a n

F e b

M a r

A p r

M a y

J u n

J u l

A u g

S e p

O c t

N o v

D e c

Phase I Publish Solicitation Proposals Due Award 1ST Task Order Performance Period 1st Task Order Plans for Phase II Delivered

• Subsequent Performance

• Phase I Deliverables Important for Phase II

Acquisition

• NAICS - 562910 - Remediation Services

• Full and Open Competition

• Conflict of Interest between Phase I and Phase II

• FAR 22.10 - Service Contract Labor Standards

• Mock Task Orders

• Proposal Evaluation – Best Value – anticipated criteria

• Technical approach

• Quality Assurance Plan

• Small Business Participation Plan

• Past Experience

• Past Performance

• Price

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L15PS00024 - PHASE II

Contract Formulation

• Multiple Award IDIQ

• Potential Incentives

• Term - 2 Year Base +3 One-Year Options

• Pricing in Task Orders by Site

• Surface Elements - Deliverables from Phase I

• Subsurface Incorporates – BLM Summary Report

Findings

• Primarily Firm-Fixed Price Line Items

• Time and Material Line Items based on Site Variation Complexity

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L15PS00024 - PHASE II

• Initial Startup

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L15PS00024 – PHASE II

ACQUISITION SCHEDULE

Task J a n

F e b

M a r

A p r

M a y

J u n

J u l

A u g

S e p

O c t

N o v

D e c

Phase II Publish Solicitation Proposals Due Award 1ST Task Order – Notice to Place Order

• Relies upon Phase I Deliverables 1st Task Order Awarded

• 1st Task Order Performance Starts

• Winter of 2016

• Notice to Place Orders

• FAR 16.505(b) Orders under Multiple-Award Contracts

• Fair Opportunity

• Over the Simplified Acquisition Threshold

• Orders Exceeding $5 million Anticipated Task Order

Placements

L15PS00024

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Questions & Answers Target Publication:

20 January 2015 www.BLM.gov www.FedConnect.net www.FBO.gov

FUTURE

COMMUNICATIONS

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THANK YOU!

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