Michigan.gov/MiProcurement Department of Environment, Great Lakes, and Energy (EGLE) PREQUALIFICATION for the Services of Plugging, Drilling, Re-drilling and Site Restoration of Oil and Gas Wells in Michigan

Request for Proposal No. 260000002522 Solicitation Manager Name: Lisa VanOstran Direct Phone: 517-599-7680 Email: vanostranl@michigan.gov

This is a Request for Proposal (RFP) for:

PREQUALIFICATION of Contractors to participate in and submit quotations competing for individual project awards, when requested by EGLE’s Oil, Gas, and Minerals Division (EGLE-OGMD) to deliver immediate and/or emergency services to plug, drill, re-drill, and complete site restoration for various oil and gas wells, remediate well sites, and perform other services related to the restoration of abandoned well sites, as needed, and as may be directed by the State, as described in Schedule A, Contract Activities.

RFP Timeline

RFP issue date

Tuesday, October 13, 2026

*A bidder’s proposal received at 3:00:01 p.m. Eastern is late and subject to disqualification.

This RFP is subject to change. Check www.michigan.gov/SIGMAVSS for current information.

1. PROPOSAL PREPARATION. The State recommends reading all RFP materials prior to preparing a proposal, particularly these Proposal Instructions and the Vendor Questions Worksheet. Bidders must follow these Proposal Instructions and provide a complete response to the items indicated in the table below. References and links to websites or external sources may not be used in lieu of providing the information requested in the RFP within the proposal. Include the bidder’s company name in the header of all documents submitted with your proposal.

RFP Structure and Documentation

2. CONTACT INFORMATION FOR THE STATE. The sole point of contact for the State concerning this RFP is listed on the Cover Page. Contacting any other State personnel, agent, consultant, or representative about this RFP may result in bidder disqualification.

3. OPTIONAL PRE-PROPOSAL MEETING. An optional pre-proposal meeting will be held on Thursday, September 3, 2026, at 10:30 a.m. Eastern via Microsoft Teams conference call:

Join: https://teams.microsoft.com/meet/229287840318223?p=EHbpwM02w58dee4JFq Meeting ID: 229 287 840 318 223 Passcode: Yu3vc3vy The purpose of the pre-proposal meeting is to discuss the RFP and the work to be performed. Statements made by the Solicitation Manager or designee at a pre-proposal meeting are not considered modifications to the RFP. If, however, the Solicitation Manager determines modifications to the RFP are warranted after the meeting, modifications will be posted in writing on www.michigan.gov/SIGMAVSS as explained in the Modifications section of this document.

4. MODIFICATIONS. The State may modify this RFP at any time. Modifications will be posted on www.michigan.gov/SIGMAVSS. This is the only method by which the RFP may be modified.

5. QUESTIONS. Bidder questions about this RFP must be emailed to the Solicitation Manager or posted on www.michigan.gov/SIGMAVSS no later than the time and date specified on the Cover Page. In the interest of transparency, only written questions are accepted. Answers to questions will be posted on www.michigan.gov/SIGMAVSS. Submit questions using the format below; a Microsoft Excel format or similar is suggested.

6. DELIVERY OF PROPOSAL.

Electronic – The bidder must submit its proposal, all attachments, and any modifications or withdrawals electronically through www.michigan.gov/SIGMAVSS. The bidder should submit all documents in a modifiable (native) format (examples include but are not limited to Microsoft Word or Excel and Google Docs or Sheets). In addition to submitting documents in a modifiable format, the bidder may also submit copies of documents in PDF. Attachment file size is limited to 6 MB per document. Bidder’s failure to submit a proposal as required may result in disqualification. The proposal and attachments must be fully uploaded and submitted prior to the proposal deadline. Do not wait until the last minute to submit a proposal, as the SIGMA VSS system requires the creation of an account and entry of certain information, in addition to uploading and submitting the materials. The SIGMA VSS system will not allow a proposal to be submitted after the proposal deadline identified in the solicitation Closing On/Closing Date fields (Summary view/Detail view), even if a portion of the proposal has been uploaded.

Questions on how to submit information or how to navigate in the SIGMA VSS system can be answered by calling (517) 284-0540 or (888) 734-9749. The Solicitation Manager will not provide assistance related to the submittal of the proposal and all attachments on the day of the proposal deadline. Responsibility for a complete submission lies with the bidder.

7. EVALUATION PROCESS. The State will evaluate each proposal based on the following factors:

Only those proposals receiving 80 or more technical evaluation points will be considered for award.

The State may utilize all bidder information, without regard to a proposal’s technical score, to determine fair market value for goods or services sought. The State is not obligated to accept the lowest price proposal. If applicable, the State’s evaluation will include consideration of a bidder’s qualified disabled veterans/service-disabled veteran owned business (QDV/SDVOB) status under MCL 18.1261(8). Additional information on the SDVOB preference is available at: Michigan.gov/SDVOB.

The State strongly encourages strict adherence to the Contract Terms. The State reserves the right to deem a bid non-responsive for failure to accept the Contract Terms. Nevertheless, the bidder may submit proposed changes to the Contract Terms in track changes (i.e., visible edits) with an explanation of the bidder’s need for each proposed change. Failure to include track changes with an explanation of the bidder’s need for the proposed change constitutes the bidder’s acceptance of the Contract Terms. General statements, such as that the bidder reserves the right to negotiate the terms and conditions, may be considered non-responsive.

The State may but is not required to conduct an on-site visit to tour and inspect the bidder’s facilities; require an oral presentation of the bidder's proposal; conduct interviews, research, reference checks, and background checks; and request additional price concessions at any point during the evaluation process.

8. NOTICE OF DEFICIENCY. The State reserves the right to issue a Notice of Deficiency to bidders if the State determines after the proposal deadline that a portion of the RFP was deficient, unclear, or ambiguous. Failure to respond to a Notice of Deficiency timely may be cause for disqualification.

9. CLARIFICATION REQUEST. The State reserves the right to issue a Clarification Request to a bidder to clarify its proposal if the State determines the proposal is not clear. Failure to respond to a Clarification Request timely may be cause for disqualification.

10. RESERVATIONS. The State reserves the right to:

a. Disqualify a bidder for failure to follow these instructions.

b. Discontinue the RFP process at any time for any or no reason. The issuance of an RFP, your preparation and submission of a proposal, and the State’s subsequent receipt and evaluation of your proposal does not commit the State to award a contract to you or anyone, even if all the requirements in the RFP are met.

c. Consider late proposals if: (i) no other proposals are received; (ii) no complete proposals are received; (iii) the State received complete proposals, but the proposals did not meet mandatory minimum requirements or technical criteria; or (iv) the award process fails to result in an award.

d. Consider an otherwise disqualified proposal if no other proposals are received.

e. Disqualify a proposal based on: (i) information provided by the bidder in response to this RFP; (2) the bidder’s failure to complete registration on www.michigan.gov/SIGMAVSS ; or (3) if it is determined that a bidder purposely or willfully submitted false or misleading information in response to the RFP.

f. Consider prior performance with the State in making its award decision.

g. Consider overall economic impact to the State when evaluating proposal pricing and in the final award recommendation. This includes but is not limited to: considering principal place of performance, number of Michigan citizens employed or potentially employed, dollars paid to Michigan residents, Michigan capital investments, job creation, tax revenue implications, and economically disadvantaged businesses.

h. Consider total cost-of-ownership factors (e.g., transition and training costs) when evaluating proposal pricing and in the final award recommendation.

i. Refuse to award a contract to any bidder that has failed to pay State taxes or has outstanding debt with the State.

j. Enter into negotiations with one or more bidders on price, terms, technical requirements, or other deliverables.

k. Award multiple, optional-use contracts, or award by Contract Activity.

l. Evaluate the proposal outside the scope identified in the Evaluation Process section of this document if the State receives only one proposal.

11. AWARD RECOMMENDATION. The contract will be awarded to the responsive and responsible bidder who offers the best value to the State, as determined by the State. Best value will be determined by the bidder meeting the minimum point threshold and offering the best combination of the factors stated in the Evaluation Process section of this document. The State will post an Award Recommendation and Evaluation Synopsis on www.michigan.gov/SIGMAVSS.

12. DEBRIEF MEETING AND BID PROTEST. The State will post an Award Recommendation and Evaluation Synopsis which will provide instructions on how to request a debrief meeting.

If you wish to initiate a protest of the award, you must submit your written protest to the Solicitation Manager no later than 5:00 p.m., 5 calendar days after posting the Award Recommendation and Evaluation Synopsis or by 5:00 p.m. the next business day if that date falls on a state holiday or weekend. The State reserves the right to adjust this timing and will publish any change on the SIGMA VSS system.

Additional information about the protest process is available at www.michigan.gov/micontractconnect under the “Programs and Policies” link.

13. STATE ADMINISTRATIVE BOARD. Contracts equal to $250,000 or greater than require approval by the State Administrative Board. The State Administrative Board’s decision is final; however, its approval does not constitute a contract. The award process is not complete until the awarded contractor receives a contract fully executed by all parties.

14. GENERAL CONDITIONS. The State will not be liable for any costs, expenses, or damages incurred by a bidder participating in this solicitation. The bidder agrees that its proposal will be considered an offer to do business with the State in accordance with its proposal, including the Contract Terms, and that its proposal will be irrevocable and binding for a period of 180 calendar days from date of submission. If a contract is awarded to the bidder, the State may, at its option, incorporate any part of the bidder’s proposal into a contract. This RFP is not an offer to enter into a contract. This RFP may not provide a complete statement of the State’s environment or contain all matters upon which agreement must be reached. Other than verified trade secrets, proposals submitted via www.michigan.gov/SIGMAVSS are the State’s property.

15. CONFIDENTIAL TREATMENT FORM AND THE FREEDOM OF INFORMATION ACT. All portions of the bidder’s proposal and resulting contract are subject to disclosure as required under Michigan’s Freedom of Information Act (FOIA), MCL 15.231, et seq. However, some information may be exempt from disclosure. Under MCL 18.1261(13)(b), records containing “a trade secret as defined under section 2 of the uniform trade secrets act, 1998 PA 448, MCL 445.1902,” are exempt from disclosure under FOIA. In addition, “financial or proprietary information” submitted with a bidder’s proposal is exempt from disclosure under FOIA. A bidder’s failure to comply with this Section is grounds for rejecting a bidder’s proposal as non-responsive. As a part of its proposal, each bidder must follow the procedure below.

SUBMIT A COMPLETED “CONFIDENTIAL TREATMENT FORM” (CT FORM) WITH YOUR BID. Completion and submission of the CT Form is required regardless of whether the bidder seeks confidential treatment of information. Failure to submit a completed CT Form may be cause for disqualification from the solicitation process.

Complete and sign Section 1 of the CT Form if the bidder does NOT request confidential treatment of information contained in its proposal; or

i. Complete and sign Section 2 of the CT Form if the bidder requests confidential treatment of certain information. Bidder must also submit a “Public Copy” of the proposal with the trade secret, financial, and proprietary information redacted and clearly labeled as the “Public Copy.”

b. FOIA REQUESTS. If a FOIA request is made for a bidder’s proposal, the Public Copy may be distributed to the public along with the bidder’s CT Form. The CT Form is a public document and serves as an explanation for the redactions to the Public Copy. Do not put any trade secret, financial, or proprietary information in the CT Form. Do not redact the CT Form itself.

c. NO ADVICE. The State will not advise a bidder as to the nature or content of documents entitled to protection from disclosure under FOIA or other laws, as to the interpretation of such laws, or as to the definition of trade secret or financial or proprietary information. Nothing contained in this provision will modify or amend requirements and obligations imposed on the State by FOIA or other applicable law.

d. FAILURE TO REQUEST CONFIDENTIAL TREATMENT. Failure to request material be treated as confidential as specified herein relieves the State, its agencies, and personnel from any responsibility for maintaining material in confidence.

e. Bids containing a request to maintain an entire proposal as confidential may be rejected as non-responsive. Bidders may not request confidential treatment with respect to resumes, pricing, and marketing materials. The State reserves the right to determine whether material designated as exempt by a bidder falls under MCL 18.1261 or other applicable FOIA exemptions. If a FOIA request is made for materials that the bidder has identified as trade secret, financial, or proprietary information, the State has the final authority to determine whether the materials are exempt from disclosure under FOIA.

f. Bidder forever releases the State, its departments, subdivisions, officers, and employees from all claims, rights, actions, demands, damages, liabilities, expenses and fees, which arise out of or relate to the disclosure of all or a portion of bidder’s proposal submitted under this RFP. Bidder must defend, indemnify and hold the State, its departments, subdivisions, officers, and employees harmless, without limitation, from and against all actions, claims, losses, liabilities, damages, costs, attorney fees, and expenses (including those required to establish the right to indemnification), arising out of or relating to any FOIA request, including potential litigation and appeals, related to the portion of bidder’s proposal submitted under this RFP that bidder has identified as a trade secret, or financial or proprietary information. The State will notify bidder in writing if indemnification is sought. The State is entitled to: (i) regular updates on proceeding status; (ii) participate in the defense of the proceeding; (iii) employ its own counsel; and to (iv) retain control of the defense, or any portion thereof, if the State deems necessary. Bidder will not, without the State’s written consent (not to be unreasonably withheld), settle, compromise, or consent to the entry of any judgment in or otherwise seek to terminate any claim, action, or proceeding. If a State employee, official, or law is involved or challenged, the State may control the defense of that portion of the claim. Any litigation activity on behalf of the State, or any of its subdivisions under this Section, must be coordinated with the Department of Attorney General. An attorney designated to represent the State may not do so until approved by the Michigan Attorney General and appointed as a Special Assistant Attorney General.

Schedule A – statement of work contract activities proposal instructions

Version 11(5/2020)

Version 12 (10/2020) 2 INSTRUCTIONS. Complete either Section 1 or Section 2 of this CT Form and sign where indicated. This CT Form must be signed by the individual who signed the bidder’s proposal. A completed CT Form must be submitted with your proposal, regardless of whether your proposal contains confidential information.

Failure to submit a completed CT Form with your bid is grounds for rejecting the proposal as non-responsive. See the Confidential Treatment Form and The Freedom of Information Act (FOIA) sections of the Proposal Instructions for additional information.

Section 1. CONFIDENTIAL TREATMENT IS NOT REQUESTED This section must be completed, signed, and submitted with the proposal if the bidder does not request confidential treatment of any material contained in the proposal.

By signing below, the bidder affirms that confidential treatment of material contained in their proposal is not requested.

RFP Number

RFP Title

Signature

Date

Printed Name, Title, Company confidential treatment form

Section 2. CONFIDENTIAL TREATMENT IS REQUESTED This section must be completed, signed, and submitted with the proposal if bidder requests confidential treatment of any material contained in the proposal. Submission of a completed CT Form is required to request confidential treatment.

Provide the information in the table below. Bidder may add rows or additional pages using the same format shown in the table. Bidder must specifically identify the information to be protected as confidential and state the reasons why protection is necessary.

The CT Form will not be considered fully complete unless, for each confidentiality request, the bidder: (1) Identifies the Proposal Page #, Section #, and Paragraph #, (2) Identifies whether the material is a Trade Secret (TS), Proprietary Financial Information (FI), or Proprietary Information (PI), (3) Explains the specific legal grounds that support treatment of the material as TS, FI, or PI. Bidders must provide a complete justification as to how the material falls within the scope of an applicable FOIA Exemption or relevant case law. Bidders must not simply cite to an applicable exemption or case name, and (4) Provides the contact information for the person at Bidder’s organization authorized to respond to inquiries by the State concerning the material.

(1) Proposal Page #, Section #, Paragraph # (2) Material is Trade Secret (TS), Proprietary Financial Information (FI), Proprietary Information (PI) (3) Applicable FOIA Exemption with Written Justification (4) Bidder Contact Information

By signing below, the bidder affirms that confidential treatment of material contained in their proposal is requested and has attached to this form a redacted “Public Copy” of the bidder’s proposal.

RFP Number

RFP Title

Signature

Date

Printed Name, Title, Company confidential treatment form

Provide a detailed response to each question. “You” and “company” refers to the bidder.

1. Contact Information

Bidder’s sole contact person during the RFP process. Include name, title, address, email, and phone number.

Person authorized to receive and sign a resulting contract. Include name, title, address, email, phone number and vendor customer code in SIGMA VSS.

2. Company Background Information

Legal business name and address. Include business entity designation, e.g., sole proprietor, Inc., LLC, or LLP.

What state was the company formed in?

Phone number.

Website address.

Number of years in business and number of employees.

Legal business name and address of parent company, if any.

Has there been a recent change in organizational structure (e.g., management team) or control (e.g., merger or acquisition) of your company? If the answer is yes: (a) explain why the change occurred and (b) how this change has affected your company.

Discuss your company’s history. Has growth been organic, through mergers and acquisitions, or both?

Has bidder ever been debarred, suspended, or disqualified from bidding or contracting with any entity, including the State of Michigan? If yes, provide the date, the entity, and details about the situation.

Has your company been a party to litigation against the State of Michigan or action that resulted in the State of Michigan expending funds or delaying actions? (Reference Standard Contract Terms and Conditions #23 et al) If the answer is yes, then state the date of initial filing, case name and court number, and jurisdiction.

Within the last 5 years, has your company or any of its related business entities defaulted on a contract or had a contract terminated for cause? If yes, provide the date, contracting entity, type of contract, and details about the termination or default.

State your gross annual sales for each of the last 5 years.

If receiving a contract under this RFP will increase your gross revenue by more than 25% from last year’s sales, explain how the company will scale-up to manage this increase.

Describe partnerships and strategic relationships you think will bring significant value to the State.

State the physical address of the place of business that would have primary responsibility for this account if bidder is awarded a contract under this RFP.

3. Qualified Disabled Veteran/Service-Disabled Veteran-Owned Business Program

To demonstrate qualification as a qualified disabled veteran, you must provide:

(a) Proof of service and conditions of discharge (DD214 or equivalent);

(b) Proof of service-connected disability (DD214 if the disability was documented at discharge or Veterans Administration Rating Decision Letter or equivalent if the disability was documented after discharge); and

(c) Legal documents setting forth the ownership of the business entity.

In lieu of the documentation identified above, you may provide proof of certification by the National Veterans Business Development Council.

Enter the names of documents submitted with your proposal to demonstrate status as a qualified disabled veteran.

4. Participation in RFP Development or Evaluation

If you enter “YES”, you are not eligible for contract award or to work as a subcontractor for the awarded vendor.

If you enter “YES,” you are not eligible for contract award. An awarded vendor may not partner or subcontract with anyone to provide goods and services required under a resulting contract if that subcontractor or partner assisted in the development of this solicitation.

If you enter “YES”, you are not eligible for contract award or to work as a subcontractor for the awarded vendor.

5. State of Michigan Experience and Prior Experience

Does your company have experience working with the State of Michigan? If so, please provide a list (including the contract number) of the contracts you hold or have held with the State for the last 10 years.

Describe at least 3 relevant experiences from the last 5 years supporting your ability to successfully manage a contract of similar size and scope for the work described in this RFP.

Experience 1

Company name.

Contact name.

Contact role at time of project.

Contact phone.

Contact email.

City.

State.

Zip.

1. Project name and description of the scope of the project.

2. What role did your company play?

3. How is this project experience relevant to the subject of this RFP?

Dollar value.

Start and end date (mm/yy – mm/yy)

Status (completed, live, other – specify phase)

Results obtained.

Experience 2

Company name.

Contact role at time of project.

City.

1. Project name and description of the scope of the project.

Dollar value.

Start and end date (mm/yy – mm/yy)

Status (completed, live, other – specify phase)

Results obtained.

Experience 3

Company name.

Contact role at time of project.

City.

1. Project name and description of the scope of the project.

Dollar value.

Start and end date (mm/yy – mm/yy)

Status (completed, live, other – specify phase)

Results obtained.

6. Standard Contract Terms

Bidder must affirm agreement with the attached Contract Terms. If not in agreement, written exceptions in accordance with the Evaluation Process section of the Proposal Instructions must be provided with Bidder’s proposal.

7. Michigan Economic Impact

Number of employees currently employed at locations within the State of Michigan.

Number of additional employees to be employed at locations within the State of Michigan if awarded this Contract (if any)

Minimum wage paid to employees employed at locations within the State of Michigan.

Average wage paid to employees employed at locations within the State of Michigan.

Percentage of employees employed at locations within the State of Michigan that are covered by employer-provided health insurance.

8. Other

vendor questions worksheet

Contractor must enter company name here.

Request for Proposal (RFP) No. 260000002522 Prequalification for the Services of Plugging, Drilling, Re-drilling, and Site Restoration of Oil and Gas Wells in Michigan This schedule identifies the anticipated requirements of any Contract resulting from this RFP. The term “Contractor” in this document refers to a bidder responding to this RFP, as well as the Contractor who is awarded the contract. The term “bidder” is used to identify where specific responses to the RFP are required.

The Contractor must respond to each requirement or question and explain how it will fulfill each requirement. Attach any supplemental information and appropriately reference within your response.

IMPORTANT NOTE TO CONTRACTORS/BIDDERS: There are specific requirements for which acceptance must be simply acknowledged through a checkbox(es), and others that require further explanation. Click one checkbox and complete the entries as identified.

BACKGROUND

Michigan law requires the Supervisor of Wells (Supervisor) to administer and enforce all regulations pertaining to oil and gas wells and also requires the Supervisor to expend funds for the repair and site restoration of wells when appropriated. Specifically:

Public Acts 451 and 325 (as amended), the Natural Resources and Environmental Protection Act (NREPA), Part 615, MCL 324.61506, Supervisor of Wells, Powers and Duties, states, in part, that the Well Supervisor has:

“jurisdiction and authority over administration and enforcement of all matters relating to the conservation of oil and gas, which shall include the authority to ... (c) require the locating, drilling, deepening, re-drilling, or reopening, casing, sealing, operating, and plugging of wells drilled for oil and gas ...; (f) to prevent fires or explosions; (g) prevent blow-outs, seepage, and caving-in, ... (h) regulate the mechanical, physical, and chemical treatment of wells...; (o) issue orders for the classifications of wells ...(and) for secondary recovery projects...”

Public Acts 451 and 325 (as amended), Part 616, MCL 324.61603, Orphan Well Fund, Expenditures from fund, states, in part, that the Supervisor:

“shall expend money ... upon appropriation for: (a) (the) plugging of abandoned or improperly closed oil or gas wells, or response activity, or site restoration at oil or gas wells for which no operator is known, for which all operators are insolvent, or ... (when) there exists an imminent threat to the public health and safety."

There are numerous gas and oil wells throughout the Lower Peninsula of Michigan that are “orphan” wells. Some of these wells were drilled before 1930, and some were not plugged or were plugged ineffectively or incorrectly by owners, or well contaminant materials finally degrade, leak or erupt. These wells may leak, or are likely to start leaking gas, oil, brine or other field wastes or contaminants, and then pose an environmental threat or pollution hazard, thus creating a threat to public health and safety, which must be addressed.

The service need (volume) and the risk to public health and safety require that Request for Quotations (RFQs) be issued immediately and draw upon a pool of Contractors who can immediately submit a quotation and work plan to provide all services as needed. A Contractor who is awarded a Contract must provide all labor, materials, and equipment needed to successfully complete or advance the compliance status of the designated well(s) or well site(s), subject to the direction and priorities set by the EGLE On Site Coordinator (OSC).

PERIOD OF PERFORMANCE

The prequalification period for any Contract awarded as a result of this RFP will be five (5) years with two (2) one-year options available. Contractors will be required to submit verification of staff, equipment, etc. to EGLE on an annual basis. A prequalification RFP will be posted quarterly (or more frequently at the State’s discretion) to allow vendors to be added to the prequalified list on a regular basis.

SCOPE

Program goals and objectives for services include bringing any designated well and site into compliance by:

· Immediate plugging or re-drilling of any orphan or unknown operator wells which become damaged or erupt or leak, or where a current operator fails to repair the well or restore the site.

· Scheduled plugging /re-drilling of any designated orphan well.

· Site cleanup or restoration after plugging or re-drilling.

The State is unable to predict the exact volume of needed well plugging or re-drilling in any given year and unable to predict the exact level of need or restoration for any given project. Prior to 1927, no permit or registration system existed in Michigan, and there could be hundreds of wells that are “unregistered” or “orphaned” which date from the late 1800’s through the 1920’s, where the well containment materials finally degrade, leak or erupt.

There are multiple wells currently listed on Michigan’s Orphan Well List (and this does not include any active, operator wells that could become damaged and leak or erupt, which may also require immediate repair, plugging, re-drilling or site restoration).

The Orphan Well List includes (3) three risk categories:

· Critical (leaking)

· Non-leaking, registered wells

· Plugged, but with possible environmental contaminants

The following will be considered out of scope activities for the contract:

· Specialized Environmental Remediation, to include (but not limited to):

· Bioremediation

· Soil Washing/Burning

· Ground Water Investigation and Remediation

· Gas and Oil Gathering Lines (regulated by the Public Service Commission)

ENVIRONMENT

Services required under this Contract will be performed within the boundaries of the State of Michigan. Individual project conditions and environment will vary. The environment and nature of the work to be completed under this Contract is inherently dangerous and hazardous. It is critical that any Contractor who accepts a well project assignment have the ability, staffing, equipment and all other resources as may be needed to bring the well and/or site into the level of compliance as directed by the State. The time involved in properly plugging a well and removing any danger will vary depending on the well and site condition.

Well-project priorities are determined by the designated EGLE OSC and are based on the relative danger or risk to the public, damage to the environment, and projected cost to complete an assignment. A “well-project assignment” may not require immediate plugging (or may have been previously plugged successfully), and it will therefore require the further, or the total, completion of the well abandonment or site restoration. Cleanup and restoration of the site after plugging may also be necessary. This may include, but is not limited to, production equipment and flow line removal and salvage, including the clean-out of tanks and disposal of wastes, including naturally occurring radioactive material (NORM), debris and fill removal, leveling and re-contouring of the well site and access road, water well plugging, drilling pit retirement, including proper fluid disposal, solidification, as necessary, and encapsulation, and the cleanup of spills, including possible removal of contaminated soils.

Some wells have problems such as collapsed casing or caved holes. Debris of various sorts may have been put down the holes over the years. Some sites may require that the Contractor bring in the equipment and the fill necessary to construct access to a well site and a platform from which to work.

The Contractor must take every precaution to avoid damage to life and property during the period of time required to execute and complete the work required to bring a well and/or site into compliance. Every precaution must be taken to avoid spillage of oil or brine or other environmental contaminants onto the surface at each location. Should gas in explosive or dangerous quantities be encountered, special precautions must be taken to eliminate the hazard of fire or explosion and eliminate the hazard of any harmful effect it could have on life and/or property. (Avoidable damage, of any nature, incurred as a result of work done on any off these projects, regardless of whether by the Contractor, or any of its Subcontractors, shall be repaired or replaced at the expense of the Contractor, as determined by the EGLE OSC. This shall include, but is not limited to, growing crops or other damage by project activities.

1. Requirements

1.1. General Requirements

The Contractor shall provide deliverables, services and staff, and otherwise do all things necessary for or incidental to the performance of work, as set forth below. The following description of services and tasks are the minimum requirements for this Contract, and the well or site conditions could require other or additional specific actions or even render some of the listed tasks unnecessary. The following is not all-inclusive. The Contractor may supplement these with additional steps, subtasks, or elements, as necessary, to permit the development of alternative approaches or the application of proprietary analytical techniques, in its final work plan for a given project assignment.

Final determination of the site-priorities for any given project shall be made by the EGLE OSC to achieve the State’s program goals and objectives. Successful completion of these tasks will be determined and verified by the assigned EGLE OSC.

The Contractor shall, at a minimum, satisfy all federal, state, and local statutes, regulations, ordinances, policies, etc. regarding health and safety while providing the services. The Contractor must also utilize all American Petroleum Industry (API) Recommended Practices (RP’s) and Standards while providing services as precautions to prevent any avoidable contaminant release to the environment. Any such contaminant release(s) shall be cleaned up, with the site restored, pursuant to the direction and final approval of the EGLE OSC.

A. Successfully complete the plugging of the designated well(s) according to instructions provided by the EGLE OSC. Plugging operations include site preparation as necessary before plugging commences. The Contractor shall assure that appropriate equipment is installed on the wellhead so that well control is maintained at all times. Minimum well plugging standards employed by the Oil Gas and Minerals Division are:

· The radiation level of well casings, tubulars, and down-hole equipment from the well-bore and miscellaneous substances, soils, or equipment generated on-site during the plugging operations shall be determined immediately prior to plugging the well or during the well plugging operation. The testing protocol and instruments to be used shall be according to Supervisor of Wells Instruction 1-92.

· Casing, tubing and foreign material shall be removed from the well sufficiently to conform to the requirements of Part 615, of the Natural Resources and Environmental Protection Act (NREPA) and all rules promulgated from this.

· Annular space behind casing should be avoided where possible and uncovered strings should be perforated, and cement squeezed at required intervals.

· Plugging material shall be neat cement, conditioned with or without additives, mechanical or electric plugs, mud-laden fluid, a combination thereof, or other materials as approved by the EGLE OSC.

· Water used in mixing cement must be from a source approved by the EGLE OSC.

· Plugging fluid or mud-laden fluid shall be placed in all portions of the well not filled with cement unless otherwise approved by the EGLE OSC. Specific mud weight requirements, if necessary, will be identified in the plugging instructions furnished by the EGLE OSC.

· Plugging material (cement or mud) shall be placed by the balanced in method through small diameter pipe or tubing except where otherwise approved by the EGLE OSC. Wherever possible, the well will be circulated at least once prior to placing plugs in the hole to establish static mud conditions.

· The well shall be plugged under static hole conditions at all times unless otherwise approved by the EGLE OSC.

· Each cement plug, except the bottom hole plug, the plug to be set at the base of the surface casing, and the surface plug shall be a minimum of 200 feet in length or contain 50 sacks of cement, whichever is the greater volume of cement, unless otherwise approved by the EGLE OSC.

· Each cement plug, except the bottom hole plug, and the plug to be set at the base of the surface casing shall be allowed to set undisturbed for a minimum of one (1) hour and shall have the fluid level in the casing continuously observed. If the observed fluid level in the casing drops during the hour, the cement plug shall be tagged to ensure the plug is still in place before setting the next plug up hole. If the plug is found not to be in place, the plug shall be reset.

· The bottom hole cement plug shall be a minimum of 200 feet in length, shall be allowed to set undisturbed for a minimum of four (4) hours, shall have reached a compressive strength of 100 psi or greater, and shall be tagged to ensure it is still in place before setting the next plug up hole or the Contractor shall set a mechanical bridge plug or other approved bridge and place a minimum of 50 feet of cement on the bridge before setting the next plug up hole.

· The plug to be set at the base of the surface casing shall be set under one of the following methods as approved by the EGLE OSC:

· In static-hole conditions, a cement plug shall be set at a minimum of 100 feet below the surface casing and shall extend a minimum of 100 feet into the surface casing. The cement plug shall be allowed to set undisturbed a minimum of four (4) hours, shall have reached a compressive strength of 100 psi or greater, and shall be tagged to ensure it is still in place before setting the next plug up hole. If the plug is not found to be in place the plug shall be reset.

· A mechanical open hole bridge plug or other approved bridge shall be set a minimum of 100 feet below the surface casing. A cement plug shall then be placed on the mechanical open hole bridge plug or other approved bridge. This cement plug shall extend a minimum of 100 feet into the surface casing, unless otherwise approved by the EGLE OSC.

· A cement surface plug shall be set a minimum of 30 feet below the surface and within five (5) feet of the surface unless otherwise approved by the EGLE OSC.

· If surface casing is not present, a mechanical open hole bridge plug or other approved bridge shall be set a minimum of 100 feet below the base of the glacial drift or 100 feet below the deepest freshwater stratum, whichever is the greatest depth and cement circulated to within five (5) feet of the surface.

· The surface pipe or drive pipe abandoned with the hold shall be cut off at a point not less than four (4) feet below grade unless otherwise authorized by the EGLE OSC. A half-inch (1/2”) steel welded plate or other type of seal approved by the EGLE OSC shall be placed across the top of the pipe or pipes. The permit number of the well or other identifications designated by the EGLE OSC shall be permanently affixed to the plate or approved seal at the top of the well.

· At the opinion of the EGLE OSC, the well bore may be plugged from bottom to top with a material approved by the Supervisor of Wells, providing that at no time the hydrostatic pressure of the material used exceeds the fracturing pressure of the strata.

· All other holes (e.g., rat and mouse holes) shall be solidly filled from bottom to top with cement or other suitable material, as approved by the EGLE OSC so that they will not cave or slump in.

· Equipment used must be maintained so that it fulfills the intended purpose for the project. For example, it must be safe, clean and function well, relative to the project conditions and must keep minimum noise levels, etc.

· The Contractor shall file, within 60 days, after plugging the final plugging forms and certified copies of the service company records which shall include, but are not limited to, the following:

· Type of cement and number of sacks used, including the percentages of additives for each cement bridge plug.

· Type and volume of plugging material used, if not cement.

· Number of bridge plugs set in the hole and depth.

· Other materials left in the hole.

· Service companies records of cementing operations.

· All available graphics showing pumping, placement of cement, weights, times, pump rates and other pertinent data dealing with the plugging operations.

· Amounts and type of mix water used per sack of cement, if requested by the EGLE OSC.

· Volume and types of spacers and flushes used.

· Contractor’s daily plugging records.

B. Successfully complete the retirement and leveling of the drilling pit(s) as necessary. Possible measures to be taken are summarized below:

· Test the fluids and cuttings remaining in the pit, prior to encapsulation, to determine the concentrations of chloride, benzene, ethylbenzene, toluene and xylene, and provide certification to the EGLE OSC of the test results. Exception: The Contractor shall not be required to test the fluids and cuttings remaining in a pit for benzene, ethylbenzene, toluene and xylene if the well was drilled with fresh water and during the drilling operation did not encounter liquid hydrocarbons.

· Solidify the pit contents for all pits, where the fluids and cuttings remaining in the pit for encapsulation have a chloride concentration of at least 5,000 ppm and not more than 15,000 ppm, using a solidification method approved by the EGLE OSC. Pits having a chloride concentration of over 15,000 ppm will be treated as directed by the EGLE OSC.

· Stiffen the pit contents for all pits, where the fluids and cuttings remaining in the pit for encapsulation have a chloride concentration of less than 5,000 ppm, using pit-stiffening methods approved by the EGLE OSC.

· Close the mud pit and meet the following minimum requirements:

· All free liquids above the solids in the pit(s) shall be removed to the maximum extent practical and disposed in an approved disposal well or used in a manner approved by the Supervisor of Wells.

· All drilling mud pits shall be stiffened prior to encapsulation except where solidification of the drilling mud pit is required. Earthen materials shall be mixed with the pit contents to stiffen it sufficiently to provide physical stability and support for the pit cover. An alternative pit stiffening process approved by the Supervisor of Wells may be required by the EGLE OSC.

· Apron edges of the liner shall be folded over the pit proper.

· Mud pit(s) shall be totally covered with a separate piece of material meeting or exceeding the specifications of a 20-mil virgin polyvinyl chloride cover as approved by the EGLE OSC. The cover shall extend beyond the outer edges of the pit(s) to cover and entirely encapsulate the pit(s) and shall be sloped to provide surface drainage away from the pit.

· The mud pit shall be buried not less than four (4) feet below original ground grade level.

C. 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.