Chapman #1 plugging and Abandonment Project

The Colorado Department of Natural Resources, through the Colorado Oil and Gas Conservation Commission, issued a Documented Quotation for the Chapman #1 Plugging and Abandonment Project located approximately six miles southeast of Walsh, Colorado in Baca County. The project scope encompasses the complete plugging and abandonment of a well originally drilled in 1960 to a total depth of 5,576 feet, requiring contractors to perform re-entry and drilling operations down to 1,545 feet, install three 100-foot cement plugs at specified depths, and place a 15-sack surface cement plug using Southwest Portland G cement (135 sacks total). Bidders were required to submit detailed proposals including a completed bid schedule with unit costs for hourly labor and materials, a contractor's equipment, personnel and materials rate schedule, and a List of Equipment Offered Form detailing all proposed equipment by manufacturer, model, serial number, and year manufactured. The bid scope included line items for mobilization and demobilization, plug and abandon hourly labor and equipment, cement services, and solid and liquid waste management, with standby time compensated at seventy-five percent of the regular hourly rate and a Change Order mechanism established for work exceeding estimated quantities by more than twenty percent. A mandatory pre-bid meeting and site showing occurred on Friday, April 3, 2015 at 11:00 AM at the well location, with contractor registration required by Wednesday, April 1, 2015; bids were due Monday, April 13, 2015 at 4:00 PM to the Department of Natural Resources Purchasing Office in Denver, and work performance was scheduled between April 15, 2015 and June 1, 2015, with final completion and equipment removal required no later than June 7, 2015 at 5:00 PM. Award would be made to the low responsive and responsible bidder whose proposal met all requirements and demonstrated capability to meet performance time requirements.

The procurement included a five percent preference for Service Disabled Veteran Owned Small Businesses (SDVOSBs) possessing proper U.S. Department of Veterans Affairs certification, as well as applicable resident bidder preferences under Colorado law. For projects exceeding $500,000 without federal funding, eighty percent of employed laborers must be Colorado residents, and prevailing wage rates as established by Colorado state law apply to this procurement. Contractors must obtain and maintain Workers' Compensation Insurance, Commercial General Liability Insurance with minimum limits of $1,000,000 per occurrence and aggregate, and Automobile Liability Insurance with $1,000,000 combined single limits, with the State of Colorado named as additional insured. The amendment documents clarify that both the Chapman #1 and Wallace projects were to be awarded to a single bidder with coordinated mobilization and demobilization activities to enhance cost and time efficiency, and contractors bear full responsibility for removing all production equipment and salvage disposition as part of the overall plugging scope. Funding for this project derives from bond claims and/or the Oil and Gas Conservation and Environmental Response Fund; for purchase orders exceeding $50,000, five percent retainage will be held from all payments pending final project completion and compliance with Colorado statutory publication requirements for notices of final settlement.