L15PS00024-25_-_Industry_Days_Statement_of_Objectives_-_1_Dec_14.pdf

United States Department of the Interior

BUREAU OF LAND MANAGEMENT

National Operations Center

Denver Federal Center, Building 50 (OC-660)

P.O. Box 25047

Denver, Colorado 80225.0047

Bureau of Land Management

Alaska State Office – Division of Resources

National Petroleum Reserve – Alaska

Legacy Well Remediation 2015-2019

Industry Day – 7 January 2015

Statement of Objectives

National Operations Center

Denver Federal Center, Building 50 (OC-660)

P.O. Box 25047

Denver, Colorado 80225.0047

Reference No: L15PS00024 and L15PS00025 National Petroleum Reserve - Alaska Legacy Well Remediation 2015-2019 Industry Day – 7 January 2015 – Statement of Objectives

Table of Contents

Background

Purpose

General Scope

Period of Performance

Place of Performance

Performance Objectives – Phase I

Surface Element Components

1. Review Existing Site Records

2. Inventory of Site Debris

3. Stage I – Initial Contaminant Sampling and Testing

4. (Option) Stage II – Secondary Contaminant Sampling and Testing

5. Final Stage – Develop a Site Cleanup Plan

Performance Objectives – Phase II

General Components

1. Review Existing Site Records and Well Plugging Designs

2. Precondition Items - Permitting, Approvals, Agreements, Authorizations, Notices, Etc

3. Contingency Management

4. Implement Community Outreach Plan

5. Mobilization and Demobilization of Equipment, Resources and Infrastructure

Surface Element Components

1. Removal of Solid Waste and Remediation of Contaminants

Subsurface Element Components

1. Well Plugging and Abandonment Implementation

2. Closeout

Required Results

Phase I

Phase II

Constraints

National Operations Center

Denver Federal Center, Building 50 (OC-660)

P.O. Box 25047

Denver, Colorado 80225.0047

Reference No: L15PS00024 and L15PS00025 National Petroleum Reserve - Alaska Legacy Well Remediation 2015-2019 Industry Day – 7 January 2015 – Statement of Objectives

Background Between 1944 and 1982, the U.S. Navy and the U.S. Geological Survey (USGS) conducted a program of exploratory and scientific drilling on Alaska’s North Slope in the Naval Petroleum Reserve No. 4 – now called the National Petroleum Reserve in Alaska (NPR-A). In 1976, the Bureau of Land Management (BLM) was given responsibility for managing the NPR-A, and in 1982 the BLM inherited the responsibility to assess, plug, and clean up wells the U.S. Navy and USGS left behind.

Since 1982, the BLM has spent tens of millions of dollars cataloging and remediating these “legacy wells.” Some wells are still being used for scientific research, so at this point only 50 wells – fewer than half of the original number – currently require additional remediation work.

In order to take the next step toward full remediation of the remaining wells, the BLM has recently completed the 2013 Legacy Wells Summary Report, which is a comprehensive site-by-site assessment of the condition of remaining inherited wells, and this 2013 Legacy Wells Strategic Plan, which lays out a dynamic and flexible near-term strategy for addressing some of the highest priority wells, while reemphasizing BLM’s commitment to achieving full remediation of all inherited wells (collectively referred to as Plans) (Link: NPR-A Legacy Wells Program). For purposes of this project, remediation is defined as the completion of plugging the well bore to regulatory standards and surface cleanup activities at a legacy well site.

Purpose This special notice is being advertised to inform the industry community that the BLM Alaska State Office, Division of Resources intends to hold an Industry Day for the purpose of interactively exploring capabilities available within the industry for a full range of services relating to the need for the remediation of 50 NPR-A legacy wells. BLM is looking to gain information that will be conducive to facilitating both an effective and efficient acquisition process for the required services, as well as the potential for creating business partnerships, significantly incorporating best practices of the industry community beneficial to meeting the goals of this project.

General Scope BLM is considering issuing a solicitation for services to support the remediation of the NPR-A legacy wells. Services include:

1. Phase I

a. Surface Elements

i. Review Existing Site Records

ii. Inventory of Site Debris

iii. Stage I – Initial Contaminant Sampling and Testing (Soil, Air, Water)

iv. (Option) Stage II – Secondary Sampling and Testing (only required if contaminants are found in Stage I)

v. Final Stage - Develop a Site Cleanup Work Plan

2. Phase II

a. Surface Elements

i. Removal of Solid Waste

ii. Remediation of any contamination per testing and approved Site Work Plan

iii. Finalize removal of debris in summer and leave the surface in an ‘agreed upon’ state

b. Subsurface Elements http://www.blm.gov/ak/st/en/prog/energy/oil_gas/npra/legacywell.html

National Operations Center

Denver Federal Center, Building 50 (OC-660)

P.O. Box 25047

Denver, Colorado 80225.0047

Reference No: L15PS00024 and L15PS00025 National Petroleum Reserve - Alaska Legacy Well Remediation 2015-2019 Industry Day – 7 January 2015 – Statement of Objectives

i. Well plugging and abandonment (P&A)

ii. Contingency management for unexpected items

This Statement of Objectives describes the desired future state for this program.

Period of Performance If a solicitation(s) is posted, the following periods of performance are contemplated:

1. Phase I

a. It is anticipated that the period of performance would begin in summer of 2015 for a possible three (3) year base term. Two (2) one (1) year option periods may be elected for a total of five (5) years.

2. Phase II

a. It is anticipated that the period of performance would begin in the winter of 2016 for a possible two (2) year base term. Three (3) one (1) year option periods may be elected for a total of five (5) years.

Place of Performance Refer to the NPR-A Legacy Wells Program identifying the location of the well sites.

Performance Objectives – Phase I Surface Element Components

1. Review Existing Site Records

a. Contractor will be responsible for reviewing existing site records with BLM and various regulatory entities to familiarize themselves with current information.

2. Inventory of Site Debris

a. Provide qualified expertise to inventory each site to identify surface debris inclusive of location, type, size and possible issues and risks that may affect any potential removal of debris. This may also include a recommendation of any types of equipment that might be required to accomplish the removal.

i. Anticipated Deliverable: To-scale, geo-referenced site map with indexed photos showing itemized surface debris keyed to any possible issues and risks that may affect the potential removal of certain debris.

3. Stage I – Initial Contaminant Sampling and Testing

a. Provide qualified expertise for determining the presence or absence of release of contaminants in the site soil, air and water through sampling. Suggested locations for sampling includes, but are not limited to, drums or contaminant specific debris found at the site, around vegetation that appears to be stressed, areas where the ground is bare and not supporting vegetation and areas of known storage or dumping locations.

b. Provide qualified expertise for testing samples to determine any types of contaminants that may exist at each site.

i. Anticipated Deliverable: Provide Initial Sampling and Testing Report

ii. If contaminants are not found, no further sampling and testing will be necessary.

http://www.blm.gov/ak/st/en/prog/energy/oil_gas/npra/legacywell.html

National Operations Center

Denver Federal Center, Building 50 (OC-660)

P.O. Box 25047

Denver, Colorado 80225.0047

Reference No: L15PS00024 and L15PS00025 National Petroleum Reserve - Alaska Legacy Well Remediation 2015-2019 Industry Day – 7 January 2015 – Statement of Objectives

4. (Option) Stage II – Secondary Contaminant Sampling and Testing

a. This stage will only be performed if contaminants are found at a site in Stage I.

b. Utilizing results from the Initial Sampling and Testing Report under Stage II and focusing on known locations of contaminants provide qualified expertise for expanding the extent of sampling to determine the extent and scope of the contaminant(s) release.

c. Provide qualified expertise for testing the samples similar to Stage I.

i. Anticipated Deliverable: Site Characterization

5. Final Stage – Develop a Site Cleanup Plan

a. Depending upon the stages necessary per site, compile all information under this effort to create a Site Cleanup Plan.

i. Anticipated Deliverable:

a) Simple Site Cleanup Plan – This plan would reflect the efforts required through Stage I – Contaminant Sampling and Testing where no contaminants are identified. This would be considered the baseline effort and deliverable requirement for all sites.

b) Complex Site Cleanup Plan – This plan would only be created if contaminants are found and Stage II occurs.

b. Present the Site Cleanup Plan to the Alaska State Department of Environmental Conservation (ADEC).

Performance Objectives – Phase II General Components

1. Review Existing Site Records and Well Plugging Designs

a. Contractor will be responsible for reviewing existing site records with BLM and various regulatory entities to familiarize themselves with current information.

b. Utilizing existing information provided, the Contractor will be responsible for creating a Final P&A Design.

i. Anticipated Deliverables: Final P&A Design per well.

c. Present the Final P&A Design to the Alaska Oil and Gas Conservation Commission (AOGCC).

2. Precondition Items - Permitting, Approvals, Agreements, Authorizations, Notices, Etc.

a. Contractor will be responsible for obtaining all state, federal and local (borough) permits and regulatory concurrences, or approvals.

b. Contractor will be responsible for obtaining all agreements, and authorizations to access all non-Federal lands.

c. Contractor may be required to consult and comply with other regulatory entities such as the Fish and Wildlife Service regarding special status species (inclusive of candidate species) that may be affected by remediation efforts.

d. In some cases, surface debris has actually become navigational landmarks for surrounding communities. In these cases, as in other similar instances, the Contractor will need to determine the type and amount of public notices that may be applicable.

e. Anticipated Deliverables: Copies of all precondition items.

National Operations Center

Denver Federal Center, Building 50 (OC-660)

P.O. Box 25047

Denver, Colorado 80225.0047

Reference No: L15PS00024 and L15PS00025 National Petroleum Reserve - Alaska Legacy Well Remediation 2015-2019 Industry Day – 7 January 2015 – Statement of Objectives

3. Contingency Management

a. Provide a contingency management plan that is easily, efficiently and effectively implemented for purposes of mitigating risks and delays to project successes.

i. Anticipated Deliverables: Contingency Management Plan

4. Implement Community Outreach Plan

a. Provide community outreach services and informational programs in order to keep surrounding communities informed of efforts and anticipated outcomes.

i. Anticipated Deliverables: Summarization of outcome of community outreach efforts inclusive of benefits and ineffective aspects to be honed.

5. Mobilization and Demobilization of Equipment, Resources and Infrastructure

a. Provide all equipment and resources necessary for remediation of all surface and subsurface requirements.

b. Provide all necessary infrastructure for mobilization and demobilization efforts, as well as any infrastructure required to support efforts at sites inclusive of those required to house personnel for the duration of the remediation efforts.

Surface Element Components

1. Removal of Solid Waste and Remediation of Contaminants

a. Utilizing Site Cleanup Plans developed under Phase I, perform services applicable to comply with outlined goals per site. This will include the need for the Contractors to revisit each site after the snow melts to finalize removal of debris previously buried in the snow.

i. Anticipated Deliverables: Final Site Inspection Report certifying work has been completed per Site Cleanup Plans.

Subsurface Element Components

1. Well Plugging and Abandonment Implementation

a. Provide services to comply with well P&A designs per site.

i. Anticipated Deliverables:

a) Professional Engineer stamped letter certifying the P&A was fulfilled per the design plans.

b) Provide a copy of Form 10-407 filed with AOGCC identifying completion of the P&A effort.

2. Closeout

a. This will occur in either one of two ways; in the instance where a case file was opened with BLM through the filing of the Land Use Authorization Form, the case file is formally closed out when this form is completed and accepted via visual verification by BLM signifying the completion of the activity. In the case where a case file does not exist and where the work is not located on BLM land, the Contractor will submit a Final Request for Acceptance.

i. Anticipated Deliverables:

a) Copy of the finalized Land Use Authorization Form

b) Final Request for Acceptance

National Operations Center

Denver Federal Center, Building 50 (OC-660)

P.O. Box 25047

Denver, Colorado 80225.0047

Reference No: L15PS00024 and L15PS00025 National Petroleum Reserve - Alaska Legacy Well Remediation 2015-2019 Industry Day – 7 January 2015 – Statement of Objectives

Required Results Phase I A. Employing consistent methodologies and processes.

B. Mitigating the variation of possible complexities.

C. Implementing appropriate protocol for accurate sampling and testing to ensure samples reflect true results.

D. Providing consistent Final Site Cleanup Plans.

E. Building a good working relationship with legacy well stakeholders, including other federal and state agencies.

F. Completing requirements sufficiently ahead of the time before they’re needed since final deliverables for these efforts are central to the overall success of follow-on activities to be undertaken in Phase II.

G. Addressing these desired objectives in quality assurance measures and plans.

H. Implementing requisite safety protocol.

Phase II A. Efficiently and effectively working to revise required P&A designs in order to meet seasonal constraints for beginning the well plugging activities upon ground freezing.

B. Building a good working relationship with AOGCC.

C. Meeting all precondition requirements for regulatory compliance and shareholder alliance.

D. Creating efficient and effective community outreach plans and information programs to keep surrounding communities informed of efforts and anticipated outcomes. Providing the ability to change in response to benefits gained and aspects that were found ineffective.

E. Implementing requisite safety protocol, especially as it pertains to working in high pressure environments.

F. Creating effective contingency plans to allow those in the field to respond efficiently in order to mitigate risks and delays.

G. Securing required equipment, resources and infrastructure effectively and efficiently to enable availability at the times outlined to meet requirements.

H. Mobilizing and demobilizing required equipment, resources and infrastructure effectively and efficiently including the building/dismantling of any infrastructure to assure that sites/surrounding areas are returned to an agreed upon state.

I. Satisfying needs of the P&A design plans and leaving the site in an agreed upon state constituting full closeout of remediation requirements.

Constraints A. Individual Site Access

1) Sites are generally remote so the challenges of the distance to the sites, the modes of transportation and the staging of equipment and need to be considered. Most sites are not close to airstrips so flying equipment is generally limited to only those that can be transported via helicopter. Equipment staging may be coordinated at areas accessible by barge; it is then either placed on barges or trucked in from the industrial center of Deadhorse.

Few sites are accessible by roads. The majorities are accessible during the winter only once tundra travel is approved; typically, heavy equipment must be mobilized over snow trails or ice roads.

National Operations Center

Denver Federal Center, Building 50 (OC-660)

P.O. Box 25047

Denver, Colorado 80225.0047

Reference No: L15PS00024 and L15PS00025 National Petroleum Reserve - Alaska Legacy Well Remediation 2015-2019 Industry Day – 7 January 2015 – Statement of Objectives

2) Several geographical constraints exist, such as marshy tundra, adjacency to water (ocean, other), that can affect access.

3) Private land, predominately in the form of Native Allotments, Village or Corporation lands may constrain access.

Coordination with affected parties is recommended.

B. Seasonal Issues

1) **The most important issue is that if there are any delays within the acquisition or actual work process it can cause a moratorium on work progression for an entire year due to the seasonal constraints for when much of the work can actually occur.**

2) Limited industry resources exist due to constraints including, but not limited to, overall demand, and overall industry capacity exacerbated by the seasonality of this type of work.

3) Due to the fragile tundra environment, overland movement of equipment is restricted to the winter months to alleviate surface impacts.

C. Phase II surface work is dependent upon deliverables under Phase I.

D. Unknown conditions within the well itself, such as debris in the hole, unknown pressures, collapsed or damaged casings, etc. may complicate subsurface procedures.