RFP 230000000442 Q_

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Attached to
RFP Northstar Facility Project
Solicitation number
RFP - 761 - 230000000442
Issued by
Charlevoix County, Chesaning Village, Michigan

About this file

This document is a question and answer excerpt from a Request for Proposal (RFP) issued by the Michigan Department of Environment, Great Lakes, and Energy (EGLE) for the Northstar Energy Project. The RFP details the requirements for selling and scrapping equipment related to the project, which is located in Charlevoix County and Chesaning Village, Michigan.

The key requirements include conducting a Naturally Occurring Radioactive Material (NORM) survey, cleaning out oil tanks and vessels, properly disposing of liquid and non-liquid wastes, and inventorying all equipment to be sold or disposed of. The contractor must solicit at least three bids for the salvaged equipment on an "as is, where is" basis and sell to the highest bidder, with payment going to the State of Michigan. The contractor is not allowed to bid on the salvaged equipment or collect any commission or fees related to the salvage sale.

Text of this file

RFP 230000000442

Northstar Energy Project Q & A

Question 1: What are the requirements for selling and scrapping equipment?

Answer: Remove and if possible, salvage any production equipment. This may include any of the following tasks:

•NORM: If required by applicable State or federal law, conduct a Naturally Occurring Radioactive Material (NORM) survey of the well site. Any NORM (material) found as a result of the Contractor’s survey will be handled, stored, transported, used or recycled according to applicable law.
•Tank and vessel cleanout: All oil contained in tanks or other vessels is to be sold for fair market value along with any oil collected during the well plugging phase of the project. The proceeds from the sale of oil will be deposited in escrow accounts by the purchaser or as directed by the EGLE OSC. Liquid wastes shall be handled and disposed of according to law. Sludge, tank bottoms, and other non-liquid wastes remaining in the vessels shall be removed. The Contractor shall estimate the volume of liquid and non-liquid wastes attributable to each well or battery and include these estimates in the project records. Wastes may be safely hauled to a temporary containment area as directed by the EGLE OSC. Steam cleaning of the tanks may be required.
•Contaminated waste containment: If not immediately transported to an approved landfill, sludge, tank bottoms, and all other non-liquid wastes from the cleanout of equipment are to be placed into diked areas lined with 20 mil PVC plastic and covered so that rainwater will not accumulate in the diked areas.
•Equipment set aside: Equipment need not be gathered to a central location unless, in the judgement of the EGLE OSC, greater efficiency in the subsequent sale of the equipment may be gained.
•Disposition of flowlines: Unless otherwise directed by the EGLS OSC, any piping less than three (3) feet below grade is to be properly purged and removed for salvage or proper disposal. Any piping three (3) feet below grade or deeper is to be properly purged, cut off at least three (3) feet below grade with the ends properly sealed. Wastes are to be handled the same as tank wastes. By “flowline” the State means a pipe for the transmission of fluids from/to a well to/from a tank, tank battery, or common pipeline (sales line) manifold. “Flowline” does not include a purchaser’s gathering lines, manifolds, etc.
•Inventory: Unless otherwise directed by the EGLE OSC, the Contractor shall make two distinct inventories of all equipment to be sold or disposed of. One inventory must be well by well and tank battery by tank battery, listing separately all of the equipment at a particular well site or tank battery. The second inventory must be by equipment category, i.e., tanks, casing, pumpjacks, etc. The inventories shall include item descriptions, amount, condition, and identification numbers.
•Bid and sale of equipment/salvage:
oThe Contractor shall make all arrangements for the sale of the salvaged equipment and shall oversee the removal of same from the project area.
oUnless otherwise directed by the EGLE OSC, the sale shall be under the following conditions: sale shall include all equipment such as pumpjacks, pumps, rods, tubing, wellheads, casing, tanks, separators, flowlines, etc.
oThe Contractor shall solicit at least three (3) bids on an “as is, where is” basis for all items, including reusable, scrap metal, and junk for disposal, and sell to the highest bidder with payment to the State of Michigan.
oBids must be reviewed and approved by the EGLE OSC.
oBids may be taken separately for each category of equipment, such as pumpjacks.
oThe high bidder must submit, to the Contractor, full payment and a detailed inventory of the equipment purchased, within five (5) days after bid acceptance and must remove all equipment under the surveillance of the Contractor no later than five (5) days after payment is made.
oReimbursement for any salvage must be made by check payable to the State of Michigan.
oThe project Contractor may not bid on salvage equipment.
oThe Contractor agrees that it shall not collect any commission for the salvage sale, nor any compensation related to any lien on the premises or salvage equipment, nor charge any storage, handling, or transportation fees.

•Salvage removal and disposal: Any equipment not salvaged and all debris resulting from the plugging activities are to be removed from the well site and disposed of in the most economical EGLE approved landfill.

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