SOW_-_Coastal.docx

L14PS00523, Attachment 1 Statement of Work and Clauses/Provisions for Ridgecrest Facility Hay Solicitation

DRAFT SUBJECT TO CHANGE

Attachment 1: Performance Work Statement Page 8 of 13

Solicitation 140L0621R0006 Attachment 1 – Performance Work Statement (PWS) Coastal Orphan Well Plugging and Abandoned Well Remediation

Table of Contents

6.0 PHOTOS AND DIAGRAMS ……………………………………………………………………………………………..… 16

6.1 Federal 1-19 Wellhead …………………………………………………………………………………………………….. 16

6.2 Wellpad Location - Google Earth …………………………………………………………………………………………. 17

6.3 Directions ……………………………………………………………………………………………………………………. 18

6.4 Wellbore Diagram ……………………………………………………………………………………………………………. 19

1.0 INTRODUCTION

1.1 Bureau Mission

The Bureau of Land Management’s (BLM) mission is: To sustain the health, diversity, and productivity of America's public lands for the use and enjoyment of present and future generations. It administers more public land over 245 million surface acres than any other Federal agency in the United States. Most of this land is located in the 12 Western states.

1.2 Project Background

Coastal was the operator who drilled the wells but did not place them on first production prior to the expiration of their lease. Coastal’s lease expired due to lack of production. Coastal appealed the expiration of their lease to the Interior Board of Land Appeals (IBLA) and the IBLA upheld the BLM’s decision that the lease expired. The Field Office followed up with Coastal regarding the plugging and abandonment of the wells. Coastal was non-responsive to these efforts.

Work under this Contract is in Valley County, MT. One well pad contains the completed Federal 1-19A and the plugged Federal 1-19. It is approximately 45 miles Northeast of Hinsdale, MT via Rock Creek Rd, Theony Rd, and a two-track access road. The two-track access road and well pad are overgrown, but passable by pickup truck. Fencing surrounding the two-well pad covers approximately 1.3 acres. A picture of the well pad is attached. The work location and directions are shown on the attached images.

The Federal 1-19 well is on the same well pad as the Federal 1-19A well.

The access road to the location was approved at approximately 2.44 miles from the county road to the well pad location. There is one gate along the access road that is to be left in-tact. The well pad is approximately 200x200 feet with no cut or fill. No material has been brought in for the access road or well pad. The original pad was stripped 4” deep of topsoil. The topsoil stockpile remains on the well pad and has been revegetated. All pits have been filled since completion of the well, and the wellpad has been revegetated.

There are two natural gas wells in this project. The well names, numbers, and legal locations listed below:

Wells:

Federal 1-19A (US Well No: 25-105-21570) Shut-In Gas Well T36N R38E Section 19 SESE Valley County, MT Lat/Long: 48° 51' 41.10" North 106° 47' 41.18" West

The Federal 1-19A well has 8.875 inch (in) diameter, 24 pound per foot steel surface casing set from 485 feet (ft) to surface and cemented to surface. The 4.5 inch diameter, 11.6 pound per foot steel production casing is set from 2,400 feet to surface and is not cemented to surface. A BLM Engineer estimates the top of cement is at approximately 1,700 feet of depth. The well has two sets of open perforations. One from 2,154 feet to 2,164 feet in the Carlile Shale and the other from 2,208 feet to 2,218 feet in the Greenhorn formation. Both zones were hydraulically fractured with 194.5 barrels (bbls) of slurry containing 6,205 gallons of water, 118,620 standard cubic feet of Nitrogen gas, and 43,433 pounds (lbs) of 20/40 mesh white sand proppant. The Montana Board of Oil and Gas typically grants commingling approvals for these two and other similar depths formations and does not require each formation be isolated from each other. Considering that both zones are likely joined by hydraulic fractures and have been commingled since completion, BLM will not require isolation between the two sets of perforations. Plugged back total depth of the well is unknown.

Federal 1-19 (US Well No: 25-105-21499) Plugged and Abandoned Wellbore and Wellhead T36N R38E Section 19 SESE Valley County, MT Lat/Long: 48° 51' 40.91" North 106° 47' 41.18" West

The Federal 1-19 well has 9.625 in diameter, 36 pound per foot steel surface casing set from 164 feet to surface and is cemented to surface. The 7 in diameter, 20 pound per foot steel intermediate casing is set from 828 feet to surface and is cemented to surface. 4.5 in diameter production casing is set from 1,080 feet to surface and is cemented to surface. Stimulated perforations from 562 feet to 574 feet and 1,072 feet to 1,084’ (wireline depth) were isolated with a cast iron bridge plug and 3 sx of dump bailed cement at 1,050’ and a balanced cement plug to surface. No further down hole plugging activities are required to satisfy BLM or state requirements.

The BLM is seeking industry partners that will bring innovative, scientifically supported best practices to meet the goals of this project.

1.3 Project Scope

The scope of this contract is to complete the plugging of the well bore to regulatory standards and perform surface cleanup activities for a well site.

Any changes from the approved plugging procedure will need the approval of the Contracting Officer and Great Falls Field Office BLM Petroleum Engineer, Peter Davis, with Montana State Office BLM Petroleum Engineer, Rachel Knell, as an alternative.

A site tour will be held. Please contact Rachel Knell to schedule a date and time at (406) 896-5065

The well site location is under a Timing Limitation, which will limit plugging and abandonment operations to between July 16th and November 30th due to the location being in Sage Grouse habitat, as well as to protect big game winter range and Sprague’s pipit.

General Reclamation Plan Requirements Specific to the Coastal 1-19A Well Plugging

1. Timing Stipulation: There shall be no surface disturbance from December 1 through July 15 to protect big game winter range, greater sage-grouse and Sprague’s pipit.

2. All roads will be left open from the county road to the well pad location, approximately 2.44 miles.

3. Surface disturbance activities shall be confined to the footprint of the rig and associated plugging procedures and requirements. The objective is to preserve as much of the mature vegetation on the well pad as possible.

4. Topsoil associated with plugging procedures shall be stripped to a depth of 4 in prior to any surface disturbing activities.

5. All remaining areas which are not scraped and leveled to accommodate the rig shall be left otherwise undisturbed.

6. In addition to the wellhead, remove all well production infrastructure from the well sites to no less than 3 feet below ground surface. This includes, but not limited to water and gas piping and electrical conduits, deadmen, and any building footers.

7. All disturbed areas shall be re-contoured back to the original contour or to a contour that blends with the surrounding landform.

8. Topsoil shall be redistributed to a depth of no less than 4 inches.

9. After topsoil has been redistributed across the disturbed areas the location shall be seeded. Seed shall be broadcast and harrowed on the contour. Seeding depth will be maintained between ¼-inch to ½ inch deep. Seeding between 10/01 and 11/15 is preferred. If moisture conditions are favorable in late summer, seeding may be completed between 08/15 and 09/15.

10. Seed shall be from a weed free certified source. When broadcast seeding, double the rate of application.

11. No depressions may be left where water could pond, with the following exceptions: areas adjoining the reclaimed sites that have depressions not created by the contractor’s actions and/or micro-depressions created to support reclamation success. The intent is to promote positive drainage in the area and restore positive drainage in the disturbed areas.

12. The existing fence on the location will be removed. The location does not need to be fenced after plugging and reclamation procedures are complete.

13. Remove and dispose all trash and debris from the well pad each day.

Seed Mix

Species

% in Mix

Lbs PLS*

Thickspike Wheatgrass Elymus macrourus

Green Needlegrass Nassella viridula

Western Wheatgrass Psascopyrum smithii

Winterfat Ceratoides gagnebin

*PLS = pure live seed *Northern Plains adapted species *Double this rate is broadcast spreading.

2.0 GENERAL REQUIREMENTS

This section describes the general requirements of the Indefinite Delivery Indefinite Quantity (IDIQ) Contract.

2.1 Definitions

Unless Noted Otherwise (UNO) herein, the following definitions will apply within this contract:

Acceptable Quality Level (AQL) - The minimal level of performance accepted by the Government.

Bureau of Land Management (BLM) -The BLM is responsible for managing the land and issuing use authorizations for all activities that occur on Federal lands and minerals. The Contractor will be responsible for providing the BLM Montana State Office a Work Plan and other relevant plans necessary to obtain a use authorization for access to the well site location (e.g., Waste Management Plan, etc.) as a part of their Precondition Items compliance. Based on the proposed activities, the Contractor will be required to comply with the applicable tailored stipulation package in order to minimize the potential impacts that are identified and are consistent with BLM regulations.

Day – means, unless otherwise specified, a 24-hour calendar day.

Onshore Order #2 (OO#2)– The minimum requirements the BLM holds to sufficiently plug and abandon a well.

Plugging and Abandonment (P&A) - To place cement plugs into wellbore and abandon it. A well is abandoned when it reaches the end of its useful life or is a dry hole. The casing and other equipment is removed and salvaged. Cement plugs are placed in the borehole to prevent migration of fluids between the different formations. The surface is reclaimed.

Remediation – The completion of plugging the well bore to regulatory standards and surface cleanup activities at a well site.

Timing Limitation – Time of the year in which operations are prohibited from occurring due to certain migratory and big game winter range patterns.

2.2 Contract Management

The Contractor shall manage the overall timeliness and completeness of work and timely provide quality, pertinent information when identifying problems that arise. The Contractor shall seek to ensure customer satisfaction and professional and ethical behavior of all Contractor personnel.

The Contractor shall establish clear organizational lines of authority and responsibility to ensure effective management and successful integration and coordination among all activities, resources and Subcontractors needed to fulfill the requirements. The Contractor shall have a single point of contact between the Government and Contractor personnel assigned to support the IDIQ and related Contract.

The Contractor shall be responsible for any subcontract management necessary to integrate work performed under this contract and shall be responsible and accountable for subcontractor performance on this requirement. The prime Contractor will manage work distribution to ensure there are no Organizational Conflict of Interest (OCI) considerations.

2.3 Key Personnel

The Contractor shall provide personnel who are qualified and competent to perform the work to be accomplished under this contract. At a minimum, the contractor shall have on staff and/or obtain by subcontracting key personnel to fulfill the functions listed below during the performance of the project.

Project Manager: One (1) senior level staff with experience in plugging and abandonment operations.

Petroleum Engineer: One (1) petroleum engineer with experience in plugging and abandonment operations Site Superintendent: One (1) site superintendent with experience specifically related to well plugging and abandonment operations.

Additionally, the Contractor shall identify the position(s) responsible for the following:

· Position with full authority to act for the contractor on all contract matters.

· Position responsible for overall management of the contract including quality assurance and quality control of all deliverables.

· Position responsible for day-to-day operations on the project site to include controlling the schedule and ensuring coordination with subcontractors.

· Position present onsite for the duration of the major phases of work, (mobilization/demobilization, well plugging and abandonment and surface clean up).

2.4 Place of Performance

All activities performed will be on the well locations in Valley County, Montana, see above for specific locations. At a minimum, government personnel will be on site to witness the plugging and abandonment of the wells.

2.5 Transportation

The Contractor shall be responsible for transporting all personnel, equipment and supplies to each well site.

2.6 Hours of Work

The Contractor shall be responsible for establishing the hours of work requirements for their employees and Subcontractors. The hours of work shall be limited to day light hours. No work shall be performed on weekends or holidays.

2.7 Reporting

The Contractor shall prepare and submit reports per this Statement and Work and related Contract. The Contractor shall prepare other reports as needed and as required by the BLM or any regulatory agency that has issued a permit for the site work or has other authority over the work activities or the site. Examples of such reports may include, but are not limited to, Spill Reports and Accident Reports.

2.8.1 Daily Quality Control Reports (DQCRs)

For all mobilization efforts, the contractor shall maintain current DQCRs providing factual evidence that required quality control activities and/or tests have been performed. These records shall include descriptions of both conforming and deficient work of subcontractors and suppliers and shall include, at a minimum, the following information:

· Contract number;

· Date or dates covered by the report;

· Weather conditions encountered;

· Contractor;

· Test and/or control activities performed, control phase (preparatory, initial, follow-up), results, and deficiencies, if any, along with corrective action taken;

· Health and safety summary, including daily safety meeting, worker protection levels, accidents, and corrective actions;

· Work performed including location, description, and by whom;

· Summary of instructions received from the government and any conflicts with plans or contracts;

· Any potential or encountered delays, with explanation;

· Contractor's verification statement that equipment and materials incorporated in the work and workmanship comply with the contract; and

· Photographs of field activities labeled with the Contract Number, Location, Contractor/Photographer, Photograph Number, Date, Time, Description, and Direction of View.

2.8 Post Award and Status Meetings

2.9.1 Contract Award Post Award Conference

Upon award, a Post-Award Conference will be held and will include all pertinent Contractor Personnel from IDIQ contract holders and BLM Contracting Personnel. The date, time and location of the conference will be arranged by the government upon award.

2.9.2 Post Award / Pre-Work Meeting for Contract

Upon being awarded the Contract, the contractor shall organize and lead a post-award meeting as soon as possible of the Notice to Proceed (NTP) at a time and location acceptable to the Government. The contractor will include the Government project team and contractor personnel responsible for project execution and quality control. Meeting objectives shall include identification of anticipated project milestones and key issues related to the project.

2.9.3 Project Status Meetings

The Contractor shall schedule and participate in 3 project status meetings during critical project activities (work plan comment resolution, field work, and report comment resolution). These meetings may be conducted via teleconference. The contractor shall provide an agenda to all team members prior to each meeting and complete the meeting minutes at the end of each meeting.

3.0 PERFORMANCE REQUIREMENTS

Unless otherwise specified in the Contract, all deliverables shall be provided in the format per Section 5.0 Deliverable Requirements and Schedules.

3.1 Precondition Items

The Contractor shall identify and obtain all requisite precondition items applicable for each place of performance under the Contract. Precondition items include all local (borough), state, and federal permits, agreements, authorizations, notices, and stipulations from any entity having jurisdiction/ownership of the land/property to be affected, inclusive of land that must be traversed to access each well site. The Contractor shall be compliant with applicable laws and regulations per the applicable jurisdiction/ownership of the land/property to be affected. Depending upon the applicable precondition items required and based upon the Contractor proposed activity (work) per the contract, the Contractor shall comply with onsite inspections, other stipulations and any subsequent correction items that may result.

The Government may undertake or award other contracts for additional work at or near the site of the work under this contract. The Contractor shall fully cooperate with the other contractors and with Government employees and shall carefully adapt scheduling and performing the work under this contract to accommodate the additional work, heeding any direction that may be provided by the Contracting Officer. The Contractor shall not commit or permit any act that will interfere with the performance of work by any other contractor or by Government employees.

3.2 Planning Documents

The Contractor shall prepare and submit draft and final versions of the planning documents per the Contract. The following planning documents provide the basis to fulfill all tasks required by the contract. Plans may be developed generally for the orphan well program and then supplemented or customized for each Orphan Well site in accordance with Precondition Item requirements. All planning documents shall be combined into a single document with the Work Plan being the primary document and other plans listed in appendices.

3.2.1 Work Plan

The Contractor shall prepare a detailed and comprehensive plan for work to be performed. No work at the site shall be performed until the Final Work Plan is accepted. The Work Plan shall be prepared in a systematic and logical format so that performance requirements may be readily referenced and understood by all personnel performing the work and by all persons reviewing the plan.

The Work Plan shall include, but is not limited to:

· Introduction: The goals of the project, and the expected results.

· Site Background and Physical Setting: Current understanding of the physical setting of the site, the site history, and existing information on the condition of the site.

· Work Plan Rationale: The Work Plan approach illustrating how the activities will satisfy contract requirements.

· Contract Tasks: All tasks to be performed during the contract, including applicable laws and regulations for each task. Task descriptions shall include the technical approach and details of the plug and abandonment of test wells, applicable plans/drawings, removal and containerization of fluids from test wells, transportation, disposal activities, and sampling and analysis plans.

· A list of all applicable permits and/or authorizations required to be obtained to perform the proposed tasks, including the name of regulatory agency responsible for issuing the authorization.

· Key Personnel: Key personnel to be used on the project and their responsibilities.

3.2.2 Project Schedule

The Contractor shall submit a detailed schedule showing the periods in which work will be performed and milestone dates to complete the planning, mobilization/demobilization, fieldwork, and reporting tasks. The project schedule shall be provided in Gantt chart format and shall include dates for starting and completing critical features of the work.

3.2.3 Site Safety and Health Plan

The Contractor shall develop and follow a Site Safety and Health Plan (SSHP) for all field activities associated with this contract and for all persons performing work under this contract. The SSHP shall be developed and maintained in compliance with the most recent requirements OSHA standard 29 Code of Federal Regulations (CFR) 1910 and all applicable Federal, State, and local safety and occupational health laws and regulations. Where the requirements of applicable laws, criteria, ordinances, regulations, and referenced documents vary, the most stringent requirements shall apply.

All abandonment procedures must meet Federal requirements as identified under the Bureau of Land Management’s Onshore Oil and Gas Order #2.

Well control equipment such as Blowout preventer equipment (BOPE) will be required in accordance with Onshore Oil and Gas Order #2 as if we were drilling due to unknown pressures and nature of some wells.

Mishap Notification and Investigation: In the instance where Government personnel are injured and become incapacitated to the point where they can’t report a mishap themselves, the Contractor shall initially respond to the life and safety needs of such an incapacitated individual and then shall promptly report pertinent facts regarding mishaps by notifying the CO, COR and/or other applicable individuals as soon as feasibly possible. The Contractor and its Subcontractors (as applicable) shall cooperate fully in any resulting safety investigation.

General Public: Where the instances exist, the Contractor shall be diligent in providing safety measures for keeping the general public from access to the work site and protecting them from harm in the general vicinity.

Weather: The Contractor shall remain vigilant regarding weather conditions that can be harmful to life and safety of the employees and shall take the appropriate precautionary actions to assure that life and safety are preserved. The Contractor shall also assure that equipment failure due to weather conditions is mitigated; equipment vital to the success of the requirements is of special concern.

When weather conditions are forecasted that will cause harm to life, safety, and equipment which will affect work operations, the Contractor shall communicate such issues to the COR and CO at the earliest possibility.

3.2.4 Environmental Protection Plan

The Contractor shall prepare a comprehensive Environmental Protection Plan. The Contractor has responsibility for adequate and continuing control of pollutants and other environmental protection measures. The Environmental Protection Plan shall include, but shall not be limited to, the following (as applicable):

The Contractor shall prepare a plan detailing the way wastes will be managed both onsite and offsite. As appropriate and as applicable, this plan shall include any wastewater generated, pumped, or collected as part of any field activities. The plan shall propose facilities to be used for treatment, storage, and/or disposal or recycling; shall identify whether transfer facilities are to be used; and how the wastes will be tracked to ultimate disposal or recycling.

3.2.6 Quality Control Plan

The Contractor shall provide a Quality Control Plan (QCP) describing the Contractor’s systematic methods to maintain an effective quality control program ensuring services are performed in accordance with the IDIQ contract. At a minimum, the QCP shall include a description of the quality control organization with a chart showing lines of authority, and acknowledgment that the QCP staff shall implement preparatory, initial, and follow-up control phases for definable features of work.

3.3 Mobilization

The Contractor shall transport all equipment, supplies, materials, temporary facilities, and personnel to perform the plug and abandonment field work at each well site. At a minimum, government personnel will be on site to witness the plugging and abandonment of the well.

3.4 Demobilization

The Contractor shall demobilize all personnel, equipment, excess materials, and waste well materials brought to the site or generated at the site during the work described in this PWS and Contract.

3.5 Field Sampling Plan and Surface Cleanup Plan

The Contractor shall develop a plan to conduct a site investigation to determine if there was a release of contaminants in the soil and/or water that may warrant further investigation, as well as locate surface debris to be removed. Draft plans shall be submitted to BLM for review and coordination with Montana Board of Oil and Gas Conservation (MBOGC) as appropriate. BLM will provide comments to the Contractor to incorporate into the Final plan(s).

3.6.1 Field Sampling Plan

The Contractor shall provide a Field Sampling Plan for contaminants for each well site designed to identify likely source areas, chemicals of concern, and the method of investigation to determine the presence or absence of contaminants.

The Field Sampling Plan shall incorporate all known historical information and the most current understanding of the exploration activities that took place, site use, and include individual site-plan figures of the historical layout if known, identifying specific areas to investigate, areas of potentially similar use to investigate and proposed soil sample locations.

If limited historical information exists, the Field Sampling Plan shall include a methodical sampling strategy designed to investigate the site and area surrounding the well head, likely to have supported the field operations, including where releases were most likely although not evident. The sampling strategy will include identifying areas based on field observations (i.e., disturbed ground, odors, staining, or stressed vegetation), proximity to the well head, and reasonable expectations of site used based on similarities to sites where activities were known.

3.6.2 Surface Clean Up Plan

The Contractor shall provide a Surface Cleanup Plan that includes a site inventory of all surface debris to be removed at each well site. The site inventory shall include indexed photos of the site and a fully scaled, geo-referenced site map inclusive of a keyed itemization of surface debris defining the location, type of debris, and size.

A Surface Cleanup Plan shall be developed identifying how the debris will be removed, any possible issues and risks that may affect the potential removal of certain debris, and any types of equipment that might be required to accomplish the removals.

3.6 Field Sampling and Surface Cleanup

The Contractor shall implement the Final Sampling and Surface Cleanup Plans for the Orphan Well site.

3.7.1 Field Sampling and Clean Up Plan Documentation

The Contractor shall provide a Sampling Report to document the results of the field sampling. Draft reports shall be submitted to BLM for review and coordination with MBOGC as appropriate. BLM will provide comments to the Contractor to incorporate into the Final report.

The Contractor shall provide a Final Site Inspection Report certifying work has been completed in accordance with the Site Cleanup Plan. This report shall include photos of soil removal and surface debris removal and proof of disposal of both as applicable.

3.7 Plugging and Abandonment of the Well Bore

The Contractor shall determine and implement the requirements needed for successfully plugging each well bore to meet the requirements depicted in the individual wellbore diagrams provided by BLM by performing the following:

3.7.1 P&A Design

The Contractor shall develop an approach and method of execution for Plugging and Abandonment (P&A) of the orphan well site in accordance with the wellbore diagrams provided by BLM. The Contractor shall submit a P&A Design (Sundry Notice 3160-5) to BLM. BLM will coordinate with MBOGC and provide comments to the Contractor. The Contractor shall incorporate comments and produce the final P&A Design.

Design shall incorporate the following products and procedures as appropriate for each well:

Drilling Muds: Drilling mud used for plugging operations shall be water (fresh or brine) and weighing agent slurry. Additives shall be environmentally safe, containing no heavy metals, and be provided in sufficient quantities on the well site to contain the well bore pressure.

Cement: Cement used for plugs shall be Class A or Class B cement (mixed to 15.6 pounds per gallon (ppg)) or Class G cement (mixed to 15.8 ppg).

Water: Water used for drilling and cementing operations shall be potable water. If the water is from a non-potable source the water shall be tested to ensure compatibility with the cement. The Contractor shall submit a copy of the compatibility test to the Contracting Officer.

3.7.2 P&A Equipment and Goods

At a minimum, the Contractor shall provide the following:

Completion/Work Over Rig: A rig is required. Specifications for rigs will be outlined in the contract and are based on the depth of the deepest proposed plug. A rig capable of drilling to 2500+ feet may be required for some operations. The rig shall be furnished with crew and supervision. Provide the manufacturer's name, size and capacity for the rig and the following required accessory equipment:

· Workstrings included shall be adequate for circulation of drilling mud/fluids and cement. Based on the requirements of the specific well additional types of workstrings may be required. This includes but is not limited to any necessary bits, scrapers or overshots depending on the scope of work identified in the Contract.

· Downhole tools include any cast iron bridge plugs or cast-iron cement retainers, annulus casing packers (cement platform) appropriately sized for the casing string involved, junk baskets sized for the plugs/platforms and tubing punches (or similar) as needed.

Well Control Equipment: The well control equipment shall consist of a full opening valve capable of providing full closure of the wellbore during non-operational periods and a minimum of 2 rams.

Circulating Equipment: The circulating equipment shall consist of the mud pump and mud tanks. The mud pump shall be capable of discharge volumes and discharge pressures required for the individual wells. A sufficient number of mud tanks shall be furnished to contain the drilling mud required for plugging operations.

Cementing Equipment: The cementing equipment shall be capable of batch mixing cement slurry. A mud/multi-purpose pump shall be provided that is capable of pumping the cement slurry to the plug depths as specified.

Storage Tanks - Well Fluids: A sufficient number of storage tanks shall be furnished to contain all well fluids circulated from the well during plugging operations.

Support Equipment: Support equipment necessary to sustain a safe operating environment for summer conditions shall be included in equipment descriptions.

Plug and Abandonment Marker: Shall be a metal plate at least 1/4" thick and welded in place. A weep hole shall be in the plate. The following shall be inscribed on the plate:

3.7.3 P&A Effort

Utilizing the Final P&A Design, the Contractor shall meet the objectives depicted in the wellbore diagram for each individual well.

· The wellhead and/or casing shall be removed to a minimum of 5-feet below ground level.

· A mound of imported fill material shall be placed above the wellhead location to prevent accumulation of surface water that could potentially infiltrate into the plugged wellhole location. Enough fill material should be used to assure a mound of fill will remain after the winter “fluff” subsides during the summer thaw.

· The Contractor shall notify the COR immediately of changes to the P&A Design and/or issues that could prevent meeting objectives within the Contract parameters.

3.7.4 Polychlorinated Biphenyl (PCB) Contamination Sampling and Analysis Wells that have fluid in the wellbore shall have a sample taken of the liquid. A field test will be performed on-site for PCB contamination. All samples, whether positive or negative for PCBs based on the field test will then be analyzed in an MBOGC and Environmental Laboratory Accreditation Program (ELAP) certified fluid testing lab for detailed PCB levels. If PCB contaminants are found, procedures for removal and disposal will occur in accordance with MBOGC regulations.

3.7.5 Final P&A Certification

The Contractor shall execute the Final P&A Design at the well site and provide a letter from the Petroleum Engineer certifying the P&A was fulfilled per the Final P&A Design plan.

3.8 Final Closeout for each Orphan Well Site

The Contractor shall submit a project close out report for each legacy well site, as well as a summarization of the specific outreach efforts conducted, the outcomes, and the impacts to the affected communities. The project closeout report shall consist of: Sundry Notice 3160-5, Well Completion or Recompletion Report and Log, and P&A Technical memorandum.

3.9 Performance Requirements Summary

Performance Requirements and Acceptable Quality Levels (AQL) are summarized in the table below. The Government will monitor and assess the contractor's performance in accordance with the surveillance methods outlined. Additionally, the Government may elect to monitor performance by observations in the field. When an observation indicates defective performance, the Contracting Officer or COR will request the Project Manager to acknowledge defective work and take corrective action.

3.10 Performance Assessments

Performance monitoring will result in performance assessment ratings annually in accordance with the “Contractor Performance Assessment Reporting System (July 2010) (DIAPR 2010-14, Amendment 3)” clause. Documented contract performance will inform the assessment ratings as follows:

Exceptional (5). Performance meets contract requirements and significantly exceeds contract requirements to the Government's benefit. For example, the contractor implemented innovative or business process reengineering techniques, which resulted in added value to the Government. The contractual performance of the element or sub-element being assessed was accomplished with few minor problems for which corrective actions taken by the contractor were highly effective.

Very Good (4). Performance meets contractual requirements and exceeds some to the Government's benefit. The contractual performance of the element or sub-element being assessed was accomplished with some minor problems for which corrective actions taken by the contractor were effective.

Satisfactory (3). Performance meets contractual requirements. The contractual performance of the element or sub-element contains some minor problems for which proposed corrective actions taken by the contractor appear satisfactory, or completed corrective actions were satisfactory.

Marginal (2). Performance does not meet some contractual requirements. The contractual performance of the element or sub-element being assessed reflects a serious problem for which the contractor has submitted minimal corrective actions, if any. The contractor’s proposed actions appear only marginally effective or were not fully implemented.

Unsatisfactory (1). Performance does not meet contractual requirements and recovery is not likely in a timely or cost effective manner. The contractual performance of the element or sub-element contains serious problem(s) for which the contractor's corrective actions appear or were ineffective.

4.0 GOVERNMENT FURNISHED INFORMATION

General information is available on-line on the BLM-home webpage and through the following hyperlinks:

Onshore Order #2: https://www.blm.gov/programs/energy-and-minerals/oil-and-gas/operations-and-production/onshore-orders

43 CFR §3162.3-4: https://www.ecfr.gov/cgi-bin/text-idx?SID=b575d0fbcf3b6a6aa5c508e918decd5d&mc=true&node=pt43.2.3160&rgn=div5#se43.2.3162_13_64

5.0 DELIVERABLE REQUIREMENTS and SCHEDULES

5.1 General

The Contractor shall provide deliverables as specified herein, in addition to any requested within the Contract. All documentation, records and schedules as described in this contract that are the responsibility of the contractor to produce, will become the property of the Government and shall be turned over to the Government as indicated herein but no later than completion or termination of the contract. The contractor shall not release any project information to the public. If approached by the news media, the contractor shall refer them to the Contracting Officer for response. Electronic copies of document deliverables shall be delivered, at a minimum, to the Contracting Officer (CO), the Contract Specialist (CS) and Contracting Officer’s Representative (COR) outlined in clause 1452.201-70(ADDENDUM)(h) Marking: All communication and deliverables hereunder will identify both the IDIQ Contract number.

Version Control: The Contractor shall provide version control for information and documents in order to identify delivery of the most current information. The Contractor shall ensure that their staff is consistent in this version control.

Draft documents shall be submitted for review and comment by BLM. Partial submissions will not be accepted without prior approval from the CO/COR. It is anticipated that a single round of BLM comments will be provided to the Contractor for each document; however, if clarifications of comments are required, Contractor responses to comments are not acceptable, or other circumstances warrant additional comments by BLM, additional comments may be provided to the Contractor in writing or via email or telephone. The Contractor shall respond to all comments in writing. Comment resolution meetings may be required for the Work Plan and other planning documents. Agreement between BLM and the Contractor shall be reached on all comments prior to finalizing the documents. No field work shall begin until the comments are resolved, the planning documents are accepted by BLM, and the CO/COR gives the Contractor permission to proceed with field work. Final documents shall be signed by a Professional Engineer or Scientist.

All documents shall be submitted to the address below unless otherwise indicated:

U.S. Department of the Interior Bureau of Land Management ATTN: Rachel Knell 5001 Southgate Drive, Billings, Montana 59101 The Contractor shall send a letter of transmittal listing the material being submitted with each submission. The letter shall reference the project by title, number, and location. One electronic copy of each submittal shall be transmitted in native and .pdf formats. All electronic and information technology (EIT) procured through this effort must meet the applicable accessibility standards of 36 CFR 1194. 36 CFR 1194 implements Section 508 of the Rehabilitation Act of 1973, as amended (29 U.S.C. 794d), and viewable at http://www.section508.gov.

Required submittals include:

· Draft Project Schedule

· Final Project Schedule

· Responses to Comments on Draft Planning Documents and Draft Reports

· Draft Planning Documents

· Final Planning Documents

· Draft Final Report

· Final Report

5.2 Schedule

The Contractor shall submit a detailed schedule in accordance with Section 3.2.2 of this document. Schedules shall incorporate performance milestones as follows:

Where the scheduled performance milestone falls on weekend or federal holiday, the due date or activity date shall become the first business day following the weekend or holiday.

6.0 Photos and Diagrams

6.1 Federal 1-19 Wellhead

6.2 Well Pad Location

6.3 Directions to location

6.3(a) – Directions from Hinsdale

6.3(b) - Directions from Rock Creek Road and Theony Road

6.4 Wellbore Diagram

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