TECHNICAL SPECIFICATIONS ARFQ DEP23-28 FED WELL REGION 7 VII.pdf

WEST VIRGINIA

DEPARTMENT OF ENVIRONMENTAL PROTECTION

OFFICE OF OIL AND GAS

MULTI-WELL PLUGGING CONTRACT FOR ORPHANED, ABANDONED WELLS

REGION 7

TECHNICAL SPECIFICATIONS

Table of Contents

1.0 Project Scope

1.1 Project narrative

1.2 Project area

1.3 Project plugging requirements

2.0 Technical Specifications

2.1 Davis-Bacon Prevailing Wage Rates

2.2 Well location, identification, inspection, and prioritization

2.3 Permitting

2.4 Well Plugging

2.5 Wellsite Reclamation

2.6 Reporting

2.7 Alternates

3.0 Forms

4.0 Appendix A – Supplement to Section 2.1, Davis-Bacon Prevailing Wage Rates

5.0 Exhibit A – Regional documented orphaned, abandoned well List

1.0 Project Scope

1.1 Project narrative

The Contractor, the Contractor’s agents, representatives, and subcontractors (“Contractor”) shall provide all equipment, materials, labor, and related professional services (including field oversight) to effectuate the permanent plugging of a specified number of documented1 or undocumented2 orphaned, abandoned oil and/or natural gas wells located within a defined geographic region. Under the terms of this contract, the Contractor shall have the exclusive right3 to the plugging of orphaned, abandoned wells within the contract region.

Within the region identified in Section 1.2, the Contractor shall perform the following essential functions completely and lawfully, and in full compliance with this Contract, any obtained permits, and all rules and regulations governing these respective activities.

● Well location, identification, inspection, and prioritization

● Permitting

● Well plugging

● Wellsite reclamation

● Reporting

1.2 Project area

Region 7, as defined herein and shown in yellow in Figures 1 and 2, is comprised of all lands owned or managed by the state, county, or city governments of West Virginia (i.e., public lands) in the following counties: Barbour, Brooke, Doddridge, Hancock, Harrison, Marion, Marshall, Monongalia, Ohio, Pleasants, Preston, Ritchie, Taylor, Tyler, Wetzel, and Wood.

Region 7 contains the following identified Wildlife Management Areas, State Forest Lands, and City/County/State parks having at least one documented orphaned, abandoned well:

Cecil H. Underwood Wildlife Management Area

Federal Ridge Wildlife Management Area

Grand Vue Park

1 Documented orphaned, abandoned wells are those abandoned wells for which DEP has already made the determination that there is no owner or that the registered operator does not have a valid bond.

2 Undocumented orphaned, abandoned wells are those abandoned wells not currently identified in the Office of Oil and Gas database. They may refer to wells having a WVGES-assigned number or may be completely unknown to the Office of Oil and Gas.

3 The WVDEP Abandoned Well Plugging Program (ABWP) will continue to identify abandoned wells for plugging using funds established for that purpose by W. Va. Codes §§ 22-6-29 and 22-6-29A. Contractor exclusivity does not extend to these wells, which will be competitively bid on a priority basis regardless of region.

Hillcrest Wildlife Management Area

Hughes River Wildlife Management Area

Lewis Wetzel Wildlife Management Area

North Bend State Park

Pleasant Creek Wildlife Management Area

Ritchie Mines Wildlife Management Area

Sand Hill Wildlife Management Area

Snake Hill Wildlife Management Area

The Jug Wildlife Management Area

Toll Gate Wildlife Management Area

Tomlinson Wildlife Management Area

Valley Falls State Park

It is critical to note that these lands may widely utilized for hunting and trapping activities. It is imperative to be familiar with hunting season types and dates. Be advised that the WV Division of Natural Resources (DNR) may limit access to certain lands during key times, particularly during firearm hunting seasons.

Figure 1 State-wide documented orphaned, abandoned well areal definition

Figure 2 Documented orphaned, abandoned well distribution within Region 7

1.3 Project plugging requirements

Within Region 7, seventeen (17) total wells must be permanently plugged from either the list of documented orphaned, abandoned wells (see Exhibit A) or any currently undocumented orphaned, abandoned wells.

Depending on the availability of funding, additional wells (up to 5) may be added to this contract, as further described in Section 2.7.

2.0 Technical Specifications

This contract is fully described by the following line items which detail the stepwise procedures necessary to complete an individual well plugging project from well discovery through final reclamation.

Well location, identification, inspection, and prioritization

Permitting

Well plugging

Wellsite reclamation

The Contractor shall meet a monthly reporting requirement summarizing contract activities for the reporting period. This reporting requirement is independent of payment requests.

2.1 Davis-Bacon Prevailing Wage Rates

All laborers and mechanics employed by the applicant, subrecipients, contractors or subcontractors in the performance of construction, alteration, or repair work on an award or project in excess of $2,000 funded directly by or assisted in whole or in part by the funds made available under Initial grants, shall be paid wage at rates not less than those prevailing on similar projects in the locality, as determined by the Secretary of Labor in accordance with subchapter IV of chapter 31 of title 40, United States Code commonly referred to as the “Davis-Bacon Act” (DBA).

Pursuant to 29 CFR 5.5(a), all contracts requiring Davis-Bacon prevailing wage implementation must include specific contract clauses. These clauses, in their entirety, may be found in Appendix A. Accordingly, all requirements included in those clauses are hereby incorporated as contract requirements.

2.2 Well location, identification, inspection, and prioritization

Description

The Contractor shall conduct a complete pre-plugging inspection of each documented or undocumented orphaned, abandoned wellsite being considered as a plugging candidate.4 The line item “well location, identification, inspection, and prioritization” shall include all time, materials, fees, equipment, tools, and technology necessary to research a candidate well, verify its

4 A “candidate well” for the purposes of this contract, is a well for which investigations are being conducted. A candidate well may or may not be selected for plugging.

existence on the ground, qualitatively and/or quantitatively evaluate the well and wellsite for potential contamination, and score the well against a standardized well ranking system.

Special Note: As an agent of the state, the Contractor shall be granted permission to access candidate wells and wellsites for the purposes of well location, identification, inspection, and prioritization under the broad authority granted by W. Va. Code § 22-6-2(c)(14)(d). In the event a landowner refuses or otherwise prevents access to their property for these purposes contact an Office of Oil and Gas inspector.

Functional/Performance Requirements

A complete inspection of a documented or undocumented orphaned, abandoned well and wellsite shall consist of each of the following documents. Each document must be signed and dated.

● Office of Oil and Gas Form IR-9F -- Abandoned well inspection form for contractors in federal funding projects o Form IR-9F is the appropriate inspection form for contractors to record their investigations of documented or undocumented orphaned, abandoned wells. This form must include photographs of the wellsite carrying both date- and location stamps (i.e., latitude/longitude). Each Form IR-9F should include well identifying information including its API number or WVGES-assigned number, its location (latitude/longitude), farm name, county, and Contractor-determined well classification (see 35 CSR 6 – 6.3).

o No fewer than four (4) of the wells selected for plugging by the contractor shall be ranked as Class 1 wells consistent with the definition found in 35 CSR 6 – 6.3.a – “Abandoned wells in Classification One shall be those that pose an immediate threat to human health, safety, or the environment, or are such an impediment to the development of mineral resources as to require immediate plugging.”

o Note that affirmative response to the following Form IR-9F questions shall result in a designation as a Class 1 well.

▪ Question 1 – immediate threat to human health or safety

▪ Question 3 – Significant leakage of well fluids

▪ Question 5 – Well fluids have escaped the well location

▪ Question 6 – Evidence of groundwater contamination within 1,000 ft of well

▪ Question 7 – Leakage of H2S in any quantity

▪ Question 8 – Having severely deteriorated (or absent) surface and production casing

▪ Question 10 – The presence of active or planned mineral development (i.e., active well work) o Note: For any candidate well that is currently undocumented, include a brief narrative explanation of the steps taken to verify that the well is not currently on the orphaned, abandoned well list (e.g., map review).

● Office of Oil and Gas Form IR-9A – Quantitative evaluation of environmental impacts by abandoned wells o Impacts to surface water-- For each orphaned, abandoned well inspected, a qualitative evaluation should be performed to assess the actual or potential impacts to surface water. In most cases, visual inspection of the area should be sufficient to perform this evaluation. A description of the evaluation methodology used and the results obtained therefrom shall be recorded on the environmental impacts form.

For any well exhibiting qualitative evidence of surface water contamination, further quantitative investigation shall be required. Each candidate well requiring a quantitative pre-plugging measurement or estimate of surface water contamination shall consider the following parameters (at a minimum): iron, total dissolved solids (TDS), chloride, and oil range organics (ORO). The Contractor will include a copy of the pre-plugging analysis from a state-certified laboratory.5 Analytical data including chain of custody and QA/QC details must also be provided.

▪ Note: Any well requiring a quantitative pre-plugging analysis of impacts to surface water shall additionally require a post-plugging analysis confirming the elimination of those contaminants after the successful well plugging activities. The Contractor will include a copy of the post-plugging analysis from a state-certified laboratory with analytical data including chain of custody recordation and QA/QC details.

o Impacts to air – For each candidate well, a qualitative evaluation should be performed to assess the actual or potential impacts to air by methane (CH4). The use of a calibrated portable (e.g., handheld) gas detector shall be sufficient to affirm the presence or absence of methane at the well. A description of the methodology and results obtained therefrom shall be recorded on the inspection form. For any well showing an affirmative methane emission detection, a complete quantification shall be required. The Contractor shall follow the methodology defined by the American Carbon Registry6 for pre-plugging quantification of methane emissions.

5 https://dep.wv.gov/WWE/Programs/lab/Documents/2019/Commercial%20Labs%20Official%20List.pdf 6https://americancarbonregistry.org/carbon-accounting/standards-methodologies/plugging-abandoned-orphaned-oil-and-gas-wells

▪ Any well requiring a quantitative pre-plugging analysis of methane shall additionally require a post-plugging analysis confirming the elimination of those contaminants after the successful well plugging activities. Contractor shall follow the methodology defined by the American Carbon Registry for post-plugging emission analysis.

● Office of Oil and Gas Form IR-9B -- Evidence of Property Ownership for abandoned, orphaned wells – Pursuant to notice requirements of property owners established in W.

Va. Codes § 22-6-9, 22-6-23, and 22-10-7, owner of the surface estate, natural gas and/or oil lessee of record, coal estate owner/lessee/operator, and the last known well owner/operator must be identified. Each owner shall be identified by name and current (or last known) mailing address as well as the deed book and page number referenced in the appropriate county courthouse.

● Notice of Intent to Plug – Pursuant to the Abandoned Well Act, W. Va. Code § 22-10- 7(a), a minimum of twenty (20) days’ advance notice is required to plug an abandoned well and subsequently reclaim any damages caused by that activity. That notice must be served by certified mail (return receipt requested) or other such manner that is sufficient for service of process in a civil action, upon the following parties: the surface owner of the land upon which the abandoned well is located, the natural gas and/or oil lease holder, and any registered owner or operator of the well,7 if applicable. Additionally, a copy of the notice should be attached directly to the wellhead or other conspicuous location near the well.

This notice must include a statement that advises the surface owner of the right to repairs of damages caused by the contract activities and inform them of their potential right to salvaged materials.

Special note: Any documented or undocumented orphaned, abandoned well determined or suspected to actively be in use, regardless of official well status, should be precluded as a well plugging candidate under the contract. Instead, this well should be referred to an Office of Oil and Gas inspector as a potential enforcement issue.

Measurement and Payment

For each well, its location, identification, inspection (including pre-plugging qualitative and quantitative analyses), and prioritization are collectively bid per-well and must include each of the documents identified above.

7 In the event, the Office of Oil and Gas records identify an owner/operator for the candidate well, the Contractor shall additionally notify the DEP so that key procedural steps (i.e., enforcement actions) may be formally completed prior to the commencement of well plugging activities.

2.3 Permitting

It shall be the responsibility of the Contractor to identify the need for, and secure, all applicable permits from local, state, and federal agencies required to execute the terms of the contract lawfully and completely. The Permitting line item includes all time, materials, fees, equipment, tools, and technology necessary to identify all relevant permitting needs, apply for, and secure all approved permits or required authorizations for a well plugging target.8 All permits or approvals must be acquired prior to the initiation of the activities covered by each respective permit.

Special Note: As an agent of the state, the Contractor shall be granted permission to access candidate wells and wellsites for the purposes of abandoned well plugging and reclamation (including permitting) under the authority of W. Va. Code § 22-10-7(a). In the event a landowner refuses or otherwise prevents access to their property for these purposes contact an Office of Oil and Gas inspector.

Functional/Performance Requirements

Each orphaned, abandoned well selected for plugging will minimally require a well plugging permit issued by the WVDEP Office of Oil and Gas.

● WVDEP Office of Oil and Gas Well Plugging Permit Application -- The Contractor shall submit to the WVDEP Office and Oil and Gas an application to permanently plug each orphaned, abandoned oil and natural gas well selected for plugging. The complete permit package shall include the following items:

o Cover letter identifying the orphaned, abandoned well as a one selected under this contract and must include the Contractor’s name and corresponding contract number. The cover letter should include contact information for the person to whom questions or related communications should be directed.

o Form WW-4(B) – Application for a permit to plug and abandon – This form identifies the orphaned, abandoned well for which a plugging permit is requested, the well operator (which will be UNKNOWN – DEP PAID PLUGGING CONTRACT), the identity of the plugging contractor, and a description of the manner in which the well will be plugged and abandoned.9 This form must be approved and signed by an oil and gas inspector.

8 A “target well” for the purposes of this contract, is a well which has been selected for potential plugging.

9 In all cases the plugging methodology for the target well shall be compliant with all rules and regulations prescribed in W. Va. Code §§ 22-6-23, 22-6-24 and 35 CSR 4 – 13, 35 CSR 4 - 14

▪ Note that if the target well has no known API number or is identified only by a WVGES-assigned number (i.e., 90,000-, 70,000-, or 30,000-series number), a permanent, standard series API number will be assigned to the well during the permit application process.

o Form WW-4(A) and (B) – Notices of application to plug and abandon a well -

- Pursuant to W. Va. Code § 22-6-9, certain property owners (i.e., surface and coal owners) are entitled to receive notice of the Contractor’s intent to apply for a plugging permit as well as a copy of that plugging permit application. In general, these property owners are identified through property owner research performed during well investigation (i.e., Form IR-9B). These entities may file comments, objections, or waivers if they choose to waive those rights. Form WW-4(A) must be notarized and proof of service to the appropriate property owners must be included with the plugging permit application.

o Form WW-9 – Fluids/Cuttings Disposal & Reclamation Plan – This form describes the planned disposition of fluids and/or drill cuttings as well as details related to site construction and reclamation activities. This form must be notarized and approved by an Office of Oil and Gas inspector prior to submission.

▪ Section I of the West Virginia Erosion and Sediment Control Field Manual

- May 201210 includes several areas of focus to consider during the permit planning phase. These specific areas of concentration include, but are not limited to, contact with the landowner, identification of significant features that may require specific control plan elements (e.g., streams, utilities, roads, property boundaries), necessary water controls (e.g., diversion, drainage ditches, grading, culverts), sediment controls, and revegetation needs. During the planning phase, it may prove beneficial to contact West Virginia 811 to identify in advance any utilities which may require specific construction solutions necessary to define in Form WW-9.

▪ Note that this contract does not allow for the use of earthen pits as waste storage structures and land application of any wastes are expressly disallowed. Accordingly, the WW-9 Groundwater Protection Plan is not required. If allowable in practice, this form would describe the methods to be undertaken to construct pits, treat, and discharge pit fluids.

o Form WW-6 -- Well Location Plat – The Contractor shall have a plat prepared by a licensed land surveyor or registered engineer. The plat shall be printed on mylar, and shall meet the requirements found in 35 CSR 4 -9.

10 https://dep.wv.gov/oil-and-gas/Documents/Erosion%20Manual%2004.pdf https://dep.wv.gov/oil-and-gas/Documents/Erosion%20Manual%2004.pdf

Note: In the event the term of this contract expires prior to the permit initiation expiration date (24 months from issuance), the issued permit shall remain valid, but the Contractor shall have no further right to perform the activity authorized by that permit.

Note: Notices of deficiency (NODs) identified during permit review shall be addressed and resolved in a timely fashion. Any NODs not corrected within seven (7) days shall result in the permit application being returned to the contractor.

Other state and federal agencies having potential jurisdiction over the activities covered by this contract include, but are not limited to, the U.S. Army Corps of Engineers (USACE), WVDEP Division of Water and Waste Management (DWWM), U.S. Fish and Wildlife Service (USFWS), WV Division of Highways (WVDOH), and WV Division of Natural Resources (WVDNR). In all cases it is incumbent upon the Contractor to identify the need for, and acquire, all necessary permits prior to the initiation of any construction or well plugging activities.

● Any activity performed under this contract which necessitates any work in the waters of the United States (including temporary construction access and dredging) may require a permit issued by USACE. To the extent that work under this contract requires stream alteration, these activities are generally covered under the USACE Nationwide Permit (NWP) Numbers 3, 14, or 20. It shall be the responsibility of the Contractor to identify the appropriate permit and comply with any special and standard conditions presented therein.

One of the chief determinants for eligibility under an NWP will be the presence of endangered or threatened species, as defined by USFWS. If the proposed work does not qualify for coverage under an NWP, the Contractor shall apply for an individual permit from USACE Huntington or Pittsburgh District offices and/or an individual 401 Water Quality Certification from DWWM.

● Any project involving activity in a river or stream requires a Right-of-Entry authorization from the WVDNR Office of Land and Streams. To obtain a Right-of-Entry, an applicant must complete the WVDNR Stream Activity Application. The application must include a map highlighting the work area.

● An Encroachment Permit (aka “Driveway Permit”) may be required by WVDOH for any construction activities creating or altering access to state highways. The Encroachment Permit Form MM-109 should be used in these cases.

The permitting line item is bid and payable per-well upon completion of all permitting activity.

After all permits have been either secured or determined to not be required, the Contractor shall submit to WVDEP Office of Oil and Gas Form WW-4E -- Acknowledgement of Permitting Responsibility.

2.4 Well Plugging

The well plugging line item collectively includes all field work necessary to mobilize all equipment and personnel to the wellsite, access the well (including road construction, if necessary), prepare the well location for plugging, permanently plug the well in accordance with the terms of the issued well plugging permit and all applicable rules and regulations, and demobilize all equipment from the location. Well plugging encompasses all time, labor, materials,11 fees, equipment, tools, and technology necessary to achieve these tasks in accordance with this contract and the plugging permit issued by WVDEP. Additionally, well plugging incorporates mandatory 3rd party oversight of field activities with respect to contract and permit requirements.

Special Note: As an agent of the state, the Contractor shall be granted permission to access candidate wells and wellsites for the purposes of abandoned well plugging and reclamation under the authority of W. Va. Code § 22-10-7(a). In the event a landowner refuses or otherwise prevents access to their property for these purposes contact an Office of Oil and Gas inspector.

Functional and performance measures

● West Virginia 811 -- Within 10 days of planned site construction activities, West Virginia 811 must be contacted to identify any underground utilities. The Contractor shall follow all required marking guidelines and timeframes.

● Wellsite access/site preparation – In virtually all cases, wellsite access will necessitate the upgrade or complete construction of an access road and/or wellsite prior to the initiation of well plugging activities. Any construction activities shall be planned and completed under the guidance of the West Virginia Erosion and Sediment Field Control Manual - May 2012, which describes best practices and requirements for every phase of the contract work from planning through site revegetation. In particular, Section II.A. details road design and construction criteria for the proper use and installation of drainage ditches, cross-drains, culverts, stream crossings, and sediment traps. Likewise, Section II.B. establishes guidance for wellsite preparation including, but not limited to, tree-cutting and brush clearing, fill placement, water diversion installation, and the appropriate use of sediment barriers.

11 Section 70914 of the Bipartisan Infrastructure Law requires that all projects funded therefrom must utilize iron, steel, manufactured products, and construction materials produced in the United States unless subject to an approved waiver.

o No construction activities of any kind may commence prior to the issuance of a well plugging permit.

o Note that all planned construction and reclamation activities must be submitted to OOG as part of the plugging permit application Form WW-9, which requires a signature from an Office of Oil and Gas inspector.

o No pits shall be constructed on site. All fluids must be stored on location in aboveground storage tanks with appropriate containment.

● Well Plugging -- Plugging is the permanent closure of an oil or natural gas well, the procedure for which is prescribed in W. Va. Code §§ 22-6-23, 22-6-24 and 35 CSR 4 – 13, 35 CSR 4 - 14. In general, the permanent plugging of a target well consists of the following procedural stages: establishment of well control, well cleanout, removal of free pipe, cement plug setting, and monument installation.

o Establishment of well control – The plugging of the target well is formally commenced when the rig12 is physically connected to the well and well control is established. At that point, the Contractor is obligated to permanently plug the target well in accordance with the terms and conditions of the issued well plugging permit and all applicable rules and regulations. Prior to that point, the Contractor may elect to not plug the target well but will recognize that absent plugging, no payment shall be made for any work done to mobilize equipment to the site or prepare it or the target well for plugging.

o Well cleanout – Any debris or other obstructions (including mechanical devices such bridge plugs or packers) in the wellbore should be removed in effort to reach the original total depth of the drilled well. In the event that true total depth cannot be reached, an explanation of the problem shall be documented by the on-site Compliance Officer (CO). Such issues shall be promptly reported to an Office of Oil and Gas inspector who has the authority to approve a deviation from the permitted work plan.

o Removal of free-pipe – All uncemented casing shall be removed from the wellbore. Various techniques may be employed to locate free points in casing to facilitate its removal. In the event that uncemented or unbonded free pipe cannot be retrieved, an explanation of the problem shall be documented by the on-site Compliance Officer (CO). Such issues shall be promptly reported to an Office of Oil and Gas inspector who has the authority to approve a deviation from the permitted work plan. In these cases, the inspector may require additional effort to

12 Well plugging rig and all equipment used in the execution of the contract shall be in sound working order, capable of operating in a safe manner, and in compliance with all applicable worker safety standards and regulations.

remove pipe or authorize pipe to be perforated at specific zones (e.g., freshwater, saltwater, coal, or hydrocarbon-bearing strata) to preserve zonal isolation and prevent fluid migration within the wellbore.13 o Cement plug setting – Plugs consisting of only Class A Portland cement14 shall be set at specified depths in accordance with the permit. If on-site conditions preclude the permitted work plan with respect to plug locations, an explanation of the problem shall be documented by the on-site Compliance Officer (CO). Such issues shall be promptly reported to an Office of Oil and Gas inspector who has the authority to approve a deviation from the permitted work plan.

▪ Note that all plugs shall be tagged after placement to verify their actual location. Additional cement may be required if the plug has not been appropriately set.

o Monument installation – The monument is the permanent marker indicating the location of the plugged well. The monument and its installation must meet all the requirements set forth in 35 CSR 4 – 5.5.b.

▪ The monument will be a minimum of six (6) inches in outside diameter.

▪ The monument will extend a minimum of thirty (30) inches above final grade and not less than ten (10) feet below the surface.

▪ The monument will have the well’s API Number attached.

o Other requirements:

▪ Where necessary, the Contractor must provide casing or pipe (including slips and elevators) of varying sizes to serve as a conduit for fluids or to ensure structural stability of the well.

● Note: For any temporary use of pipe (e.g., drill pipe, tubing), materials may be in used condition provided that it is free of defect.

● Note: Any casing introduced into the well for permanent placement shall be in new condition and must conform to the requirement that all iron, steel, manufactured products, and

13 See 35 CSR 4 – 13.6 14 See 35 CSR 4 – 14.1 construction materials be produced in the United States or be allowable under an approved waiver.15

▪ Any wastes resulting from the site preparation or well plugging activities must be appropriately stored, transported, and disposed of. Recovered crude oil may be transferred to a facility of the Contractor’s choosing, any other liquid wastes including saltwater or other Class II fluids collected from the location must be disposed of at an Underground Injection Control

(UIC) disposal facility. Solid wastes, including contaminated soils, shall be disposed of at an approved solid waste facility.16

▪ As communicated in the 20-day Notice of Intent to Plug, the Contractor has the right of refusal for any salvage materials recovered from the well and/or wellsite. Should the Contractor waive that right, the landowner may elect to accept ownership of salvage materials. If neither the Contractor nor the landowner desire such materials, the Contractor shall lawfully dispose of all unwanted materials.

▪ At all times, the Contractor shall have materials on site to mitigate fluid and other material spills that may adversely affect the environment. Such materials may include, but are not limited to absorbent booms, pads, and peat sorb. All spills need to be documented by the Compliance Officer, and pursuant to 35 CSR 1 - 3.1, all reportable spills17 shall be reported promptly (and in no cases later than 24 hours) to the DEP Spill line at 1-800-642- 3074.

▪ The Contractor shall evaluate the need for site security and prepare accordingly. DEP shall not be responsible for loss of any items, materials, or other equipment by theft or vandalism.

● Post-Plugging analytical data – Follow-up analytical samples for any well sampled during the inspection phase of the contract shall be taken and analyzed. The purpose of follow-up inspections is to affirm the success of the plugging activities with the respect to eliminating the continued release of pollutants into the environment.

● Compliance Officer – The Contractor shall provide, via sub-contract, an independent 3rd party who has the responsibility of contract oversight and verification that the Contractor has complied with the issued permit. The role of the compliance officer (CO) is to ensure

15 Verification of origin of materials must be provided upon request 16 Disposal tickets verifying proper disposal must be provided upon request 17 As defined in 35 CSR 1 - 3.3 that the terms of this contract and issued permit are being met during all phases of field operations.

o The CO may not be directly employed by the Contractor.

o The CO designated for this contract region may not simultaneously serve as the CO for any other contract region.

o The CO shall maintain a regular presence on contract well plugging efforts and affirm that contract requirements were followed.

o Observations by the CO shall be recorded on Form IR-9C.

o The CO will not replace the oversight provided under the general authority of the West Virginia Department of Environmental Protection. At all times, the Contractor shall be expected to remain in compliance with all applicable rules and regulations. Failure to adhere to any of these requirements may result in enforcement actions against the contractor.

Measurement and Payment:

The well plugging line item is bid per-well. In order to be eligible for payment, Contractor must provide to DEP the following documents:

▪ OOG Form WR-38 – Affidavit of Plugging and Filling Well – This form serves as record of the plugging of the well and must be provided subsequent to well plugging completion. It must be signed by two persons affirming the accuracy of the information.

This form must be notarized and approved by an Office of Oil and Gas inspector. Payment on this line item may not be authorized until this approval is received.

▪ Office of Oil and Gas Form IR-9A – Quantitative evaluation of environmental impacts by abandoned wells o Any well requiring a quantitative pre-plugging analysis of impacts to surface water shall additionally require a post-plugging quantitative analysis confirming the elimination of those contaminants after the successful well plugging activities. The Contractor will include a copy of the post-plugging analysis with chain-of-custody and QA/QC report from a state-certified laboratory18 along with OOG Form IR- 9A.

18 https://dep.wv.gov/WWE/Programs/lab/Documents/2019/Commercial%20Labs%20Official%20List.pdf o Any well requiring a quantitative pre-plugging analysis of methane shall additionally require a post-plugging analysis confirming the elimination of those contaminants after the successful well plugging activities. Contractor shall follow the methodology defined by the American Carbon Registry19 for post-plugging emission analysis. The Contractor will include a copy of any determinations along with OOG Form IR-9A.

▪ Form IR-9C1 - CO Affidavit of Compliance – Plugging – This form serves as an affidavit of compliance by a 3rd party that affirms the Contractor met all requirements of this contract.

2.5 Wellsite Reclamation

The wellsite reclamation line item collectively includes all field work necessary to reclaim all earth disturbances created by the Contractor in efforts to prepare a wellsite and/or permanently plug an orphaned, abandoned well. Reclamation generally includes, but is not limited to, wellsite reclamation, access road reclamation, and revegetation. Site reclamation encompasses all time, labor, materials, fees, equipment, tools, and technology necessary to achieve these tasks.

Special Note: As an agent of the state, the Contractor shall be granted permission to access candidate wells and wellsites for the purposes of abandoned well plugging and reclamation under the authority of W. Va. Code § 22-10-7(a). In the event a landowner refuses or otherwise prevents access to their property for these purposes contact an Office of Oil and Gas inspector.

Functional and performance measures

All aspects of wellsite reclamation are governed by the West Virginia Erosion and Sediment Field Control Manual -- May 2012. The following notes are general guidance not to be construed as complete procedural steps.

A. Wellsite Reclamation

a. The wellsite is to be backfilled, recontoured, or terraced.

b. Topsoil should be re-spread over disturbed areas or used as top-dressing in areas where it has been stockpiled.

c. Installation of permanent water drainage and diversion ditches.

d. Sediment barriers shall remain in place until vegetation is established.

19https://americancarbonregistry.org/carbon-accounting/standards-methodologies/plugging-abandoned-orphaned-oil-and-gas-wells

B. Access Road Reclamation

a. Road surfaces shall be stabilized and/or reseeded.

b. Permanent side ditches will be installed where needed.

c. Permanent culverts, cross-drains, and broad-based dips shall be installed.

d. Sediment barriers shall remain in place until vegetation is established.

C. Revegetation

a. Installation of water control measures

b. Seedbed preparation

c. Temporary seeding

d. Permanent seeding

e. Mulching

f. Anchoring

In addition to wellsite reclamation, the Contractor is responsible for any damages occurring to the landowner’s property because of activities supporting the preparation of the wellsite or well plugging operations. Any claims of damages by Contractor to the landowner shall be applied and resolved in the manner described in W. Va. Code § 22-10-7(b).

Measurement and payment:

The wellsite reclamation line item is bid per-well. To be eligible for payment, Contractor must provide to DEP the following document:

● Form IR-9C2 - CO affidavit of compliance - Reclamation – This form serves as an affidavit of compliance by a 3rd party that affirms the Contractor met all requirements of this contract and permit.

Additionally, the Contractor shall notify an Office of Oil and Gas inspector and request release of the plugging permit. The inspector shall then review Forms IR-9C and WR-38 (if not already approved), evaluate reclamation compliance with all rules and regulations, and if appropriate, release the plugging permit with Form IR-8. Upon approval of Form IR-8 and release of the plugging permit, the Contractor is eligible for payment from this line item.

2.6 Reporting

The Contractor shall provide a monthly progress report to DEP detailing contract activities for the reporting periods. This report shall be communicated on Office of Oil and Gas Form IR-9D, Monthly Report of Abandoned Well Plugging Progress. This report must be submitted to depplugging@wv.gov no later than five (5) calendar days after the end of each month.

2.6.a Well location, identification, inspection, and prioritization

The Contractor shall identify all well plugging candidates for which inspection activities have been performed20 by API number or WVGES-assigned number, where applicable. The report shall identify those wells showing evidence of impacts to surface water, air, or the community in general. Those wells causing impacts from methane emissions shall be quantified.

2.6.b Permitting

The Contractor shall identify all well plugging targets for which at least one permit has been obtained. For each identified regulatory agency or division, provide the date of permit issuance or an indication that the identified permit is not applicable.

2.6.c Well Plugging

The Contractor shall identify any wells for which plugging activities were initiated or completed during the reporting period. For those wells for which plugging is complete, provide post-plugging evaluations of impacts to surface water, air, or the community in general.

2.6.d Reclamation

The Contractor shall identify any wells for which reclamation activities were initiated or completed during the reporting period. An estimation of the acreage of restored land shall be reported.

20 For the purposes of reporting, the minimum required inspection necessary for inclusion is the IR-9 Abandoned Well Inspection form, as described in Section 2.1 of this contract.

mailto:depplugging@wv.gov

2.7 Alternates

The Contractor shall provide all services described in Sections 2.1 – 2.6 of these technical specifications for a specified number of additional orphaned, abandoned wells within the contract region.

Functional/performance requirements

The Contractor shall meet all performance and reporting requirements described in this contract in Sections 2.1 – 2.6.

Each well plugged as an alternate under the terms of this contract shall be bid and payable as a lump sum inclusive of all costs encompassing the scope of work described in Sections 2.1 – 2.6 of this contract.

2.7.a Alternate 1 – One additional well

2.7.b Alternate 2 – One additional well

2.7.c Alternate 3 – One additional well

2.7.d Alternate 4 – One additional well

2.7.e Alternate 5 – One additional well

NOTE: SELECTION OF ALTERNATES: Pursuant to W. Va. Code § 5-22-1(f), any solicitation of bids shall include no more than five alternates. Alternates, if accepted, shall be accepted in the order in which they are listed on the bid form. Any unaccepted alternate contained within a bid shall expire 90 days after the date of the opening of bids for review. Determination of the lowest qualified responsible bidder shall be based on the sum of the base bid and any alternates accepted.

3.0 Forms

All forms will be made available through the Office of Oil and Gas website.

● Form IR-9F – Abandoned well inspection form for contractors in federal funding projects

● Form IR-9A – Quantitative Evaluation of Environmental Impacts by Abandoned Wells

● Form IR-9B – Evidence of Property Ownership for Abandoned, Orphaned Wells

● Form IR-9C1 – CO Affidavit of Compliance – Well Plugging

● Form IR-9C2 – CO Affidavit of Compliance - Reclamation

● Form IR-9D – Monthly Report of Abandoned Well Plugging Progress

● Plugging Permit Packet

● Form WW-4E – Acknowledgment of Permit Responsibility

● Form WR-38

● 20-day notice of intent to plug

4.0 Appendix A – Supplement to Section 2.1, Davis-Bacon Prevailing Wage Rates

Pursuant to 29 CFR 5.5(a), the following clauses, numbered (1) – (10), related to Davis-Bacon prevailing wage implementation, are hereby incorporated into this contract as supplemental information to Section 2.1 of the Contract.

(1) Minimum wages. (i) All laborers and mechanics employed or working upon the site of the work (or under the United States Housing Act of 1937 or under the Housing Act of 1949 in the construction or development of the project), will be paid unconditionally and not less often than once a week, and without subsequent deduction or rebate on any account (except such payroll deductions as are permitted by regulations issued by the Secretary of Labor under the Copeland Act (29 CFR part 3)), the full amount of wages and bona fide fringe benefits (or cash equivalents thereof) due at time of payment computed at rates not less than those contained in the wage determination of the Secretary of Labor which is attached hereto and made a part hereof, regardless of any contractual relationship which may be alleged to exist between the contractor and such laborers and mechanics. Contributions made or costs reasonably anticipated for bona fide fringe benefits under section 1(b)(2) of the Davis-Bacon Act on behalf of laborers or mechanics are considered wages paid to such laborers or mechanics, subject to the provisions of paragraph (a)(1)(iv) of this section; also, regular contributions made or costs incurred for more than a weekly period (but not less often than quarterly) under plans, funds, or programs which cover the particular weekly period, are deemed to be constructively made or incurred during such weekly period. Such laborers and mechanics shall be paid the appropriate wage rate and fringe benefits on the wage determination for the classification of work actually performed, without regard to skill, except as provided in § 5.5(a)(4). Laborers or mechanics performing work in more than one classification may be compensated at the rate specified for each classification for the time actually worked therein: Provided, That the employer's payroll records accurately set forth the time spent in each classification in which work is performed. The wage determination (including any additional classification and wage rates conformed under paragraph (a)(1)(ii) of this section) and the Davis- Bacon poster (WH-1321) shall be posted at all times by the contractor and its subcontractors at the site of the work in a prominent and accessible place where it can be easily seen by the workers.

(ii) (A) The contracting officer shall require that any class of laborers or mechanics, including helpers, which is not listed in the wage determination and which is to be employed under the contract shall be classified in conformance with the wage determination. The contracting officer shall approve an additional classification and wage rate and fringe benefits therefore only when the following criteria have been met:

(1) The work to be performed by the classification requested is not performed by a classification in the wage determination; and

(2) The classification is utilized in the area by the construction industry; and

(3) The proposed wage rate, including any bona fide fringe benefits, bears a reasonable relationship to the wage rates contained in the wage determination.

(B) If the contractor and the laborers and mechanics to be employed in the classification (if known), or their representatives, and the contracting officer agree on the classification and wage rate (including the amount designated for fringe benefits where appropriate), a report of the action taken shall be sent by the contracting officer to the Administrator of the Wage and Hour Division, U.S. Department of Labor, Washington, DC 20210. The Administrator, or an authorized representative, will approve, modify, or disapprove every additional classification action within 30 days of receipt and so advise the contracting officer or will notify the contracting officer within the 30-day period that additional time is necessary.

(C) In the event the contractor, the laborers or mechanics to be employed in the classification or their representatives, and the contracting officer do not agree on the proposed classification and wage rate (including the amount designated for fringe benefits, where appropriate), the contracting officer shall refer the questions, including the views of all interested parties and the recommendation of the contracting officer, to the Administrator for determination. The Administrator, or an authorized representative, will issue a determination within 30 days of receipt and so advise the contracting officer or will notify the contracting officer within the 30-day period that additional time is necessary.

(D) The wage rate (including fringe benefits where appropriate) determined pursuant to paragraphs (a)(1)(ii) (B) or (C) of this section, shall be paid to all workers performing work in the classification under this contract from the first day on which work is performed in the classification.

(iii) Whenever the minimum wage rate prescribed in the contract for a class of laborers or mechanics includes a fringe benefit which is not expressed as an hourly rate, the contractor shall either pay the benefit as stated in the wage determination or shall pay another bona fide fringe benefit or an hourly cash equivalent thereof.

(iv) If the contractor does not make payments to a trustee or other third person, the contractor may consider as part of the wages of any laborer or mechanic the amount of any costs reasonably anticipated in providing bona fide fringe benefits under a plan or program, Provided, That the Secretary of Labor has found, upon the written request of the contractor, that the applicable standards of the Davis-Bacon Act have been met. The Secretary of Labor may require the contractor to set aside in a separate account assets for the meeting of obligations under the plan or program.

(2) Withholding. The West Virginia Department of Environmental Protection (DEP) shall upon its own action or upon written request of an authorized representative of the Department of Labor withhold or cause to be withheld from the contractor under this contract or any other Federal contract with the same prime contractor, or any other federally-assisted contract subject to Davis- Bacon prevailing wage requirements, which is held by the same prime contractor, so much of the accrued payments or advances as may be considered necessary to pay laborers and mechanics, including apprentices, trainees, and helpers, employed by the contractor or any subcontractor the full amount of wages required by the contract. In the event of failure to pay any laborer or mechanic, including any apprentice, trainee, or helper, employed or working on the site of the work (or under the United States Housing Act of 1937 or under the Housing Act of 1949 in the construction or development of the project), all or part of the wages required by the contract, the

(Agency) may, after written notice to the contractor, sponsor, applicant, or owner, take such action as may be necessary to cause the suspension of any further payment, advance, or guarantee of funds until such violations have ceased.

(3) Payrolls and basic records. (i) Payrolls and basic records relating thereto shall be maintained by the contractor during the course of the work and preserved for a period of three years thereafter for all laborers and mechanics working at the site of the work (or under the United States Housing Act of 1937, or under the Housing Act of 1949, in the construction or development of the project).

Such records shall contain the name, address, and social security number of each such worker, his or her correct classification, hourly rates of wages paid (including rates of contributions or costs anticipated for bona fide fringe benefits or cash equivalents thereof of the types described in section 1(b)(2)(B) of the Davis-Bacon Act), daily and weekly number of hours worked, deductions made and actual wages paid. Whenever the Secretary of Labor has found under 29 CFR 5.5(a)(1)(iv) that the wages of any laborer or mechanic include the amount of any costs reasonably anticipated in providing benefits under a plan or program described in section 1(b)(2)(B) of the Davis-Bacon Act, the contractor shall maintain records which show that the commitment to provide such benefits is enforceable, that the plan or program is financially responsible, and that the plan or program has been communicated in writing to the laborers or mechanics affected, and records which show the costs anticipated or the actual cost incurred in providing such benefits.

Contractors employing apprentices or trainees under approved programs shall maintain written evidence of the registration of apprenticeship programs and certification of trainee programs, the registration of the apprentices and trainees, and the ratios and wage rates prescribed in the applicable programs.

(ii) (A) The contractor…