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This Solicitation is Now Closed
WELL CHARACTERIZATION AND EVALUATION PROGRAM
Request for Proposals (RFP) No. 561-01
PROPOSALS DUE: October 2, 2001*
The Program. The New York State Energy Research and Development
Authority (NYSERDA) seeks proposals from qualified organizations and
firms interested in developing a technology-based well characterization
system for New York's 15,000 active and shut-in wells. The objective
of this program is to create a technology-based system to strike a
balance between the potential viability of a well and its ultimate
plugging while ensuring that the fiscal liability for plugging and
reclamation remains the responsibility of the well's owner and not
the State of New York or local governments. The program will also
involve the use of innovative technology for testing and other applications
to attempt to reduce plugging and abandoning costs. Technical considerations
include innovative methods to revive old wells, multiple zone through
casing evaluations, advanced plugging technology, etc. The Well Characterization
and Evaluation Program is a coordinated effort between NYSERDA, the
New York State Department of Environmental Conservation, and industry.
Contractor Selection. NYSERDA is seeking competitive bids from
consulting firms to develop the program. The selected contractor will
be responsible for developing a technology-based well characterization
system and providing guidance to all involved industry parties.
You are invited to submit a proposal in accordance with the requirements
of this solicitation. Work is expected to begin in Winter, 2001. Maximum
Available funding is $50,000.
EIGHT (8) copies of each proposal must be clearly labeled RFP 561-01
and submitted to:
Karen Whalen, RFP 561-01
NYS Energy Research and Development Authority
17 Columbia Circle
Albany, New York 12203-6399
FAXED and E-MAILED copies will not be accepted.
TECHNICAL questions may be directed to John Martin
(518-862-1090, ext.3265, or jpm@nyserda.org).
Contractual questions may be directed to Jane Powers (518-862-1090,
ext. 3342).
___________________________
*Proposals received after 5:00 P.M. on October 2, 2001 will be returned
unopened.
WELL CHARACTERIZATION AND EVALUATION PROGRAM
Request for Proposals 561-01
Instructions for Proposals
I. INTRODUCTION
The nearly 15,000 known active and shut-in wells in New York State
represent an asset to the industry but a potential plugging liability
to the State and local landowners. The Well Characterization and Evaluation
Program is a coordinated effort between NYSERDA, the New York State
Department of Environmental Conservation, and industry to develop
a reasonable technology-based system to assess shut-in status and
define plugging priorities with the goal of reducing plugging and
abandonment liability to the State while allowing the optimal use
of drilled-well resources.
Most wells follow a production decline curve to a marginal point;
others offer inadequate reserve potential to warrant a pipeline. At
this point in the life of the well, the question arises of whether
to continue producing the well or to plug and abandon it. Existing
production wells can be a valuable asset and offer multiple development
options such as natural gas storage, re-stimulation, and perforation
of new target zones. Examples exist where a non-producing well is
reworked or re-evaluated at a later date and brought back into productive
use. Some wells cease production or are never produced or reworked
and remain non-productive.
For inactive wells, the State of New York enforces a shut-in/temporary
abandonment requirement and a bonding program to guarantee that owners
are held responsible to plug and abandon their wells to protect the
environment. Unfortunately, some wells are orphaned and no longer
have a known owner. The state does not have the financial resources
to plug these wells nor should it be required to assume the liability.
The objective of the well characterization program is to create a
technology-based system to strike a balance between the potential
viability of a well and its ultimate plugging while ensuring that
the fiscal liability for plugging and reclamation remains the responsibility
of the well's owner and not the State of New York or local governments.
II. PROPOSAL OBJECTIVES
NYSERDA is soliciting proposals to help develop a technology-based
well characterization system to define a reasonable shut-in duration,
individual and corporate appropriate well bonding during shut-in,
and industry/regulatory-accepted well bore integrity evaluation procedures.
The program will also involve the use innovative technology for testing
and other applications to attempt to reduce plugging and abandonment
costs. Technical considerations include innovative methods to revive
old wells, such as multiple zone through-casing evaluations; advanced
plugging technology; etc.
The American Petroleum Institute has developed an environmental guidance
document entitled "Well Abandonment and Inactive Well Practices
for U.S. Exploration and Production Operations" (API Bulletin
E3 (BUL E3)). These practices may serve at a starting point to provide
New York State's industry and regulators with solid, consistent rationale
for allowing shut-in and temporary well abandonment over prescribed
time periods.
Maximum available funding is $50,000 for consulting services
to
- Characterize all New York State wells into categories such as:
producing/bonded, producing/not bonded, non-producing/shut-in, nonproducing/orphaned,
etc. Some consideration should be given to the production/income
distribution for each category.
- Characterize the fiscal resources necessary to plug and abandon
each category of wells (on a per well basis).
- Summarize New York State and Federal statutes and regulations
pertaining to well status and plugging and abandonment.
- Review applicable API, IOGCC and other states' programs. (i.e.-Texas,
Oklahoma)
- Consider the application of innovative technology for testing,
characterizing well-bore integrity, and plugging wells.
- Develop shut-in programs to handle major categories of wells
taking into account production status, financial security, number
of years out of production or shut-in, ownership and potential environmental
impact.
- Examine the policy implications of these programs and provide
recommendations for policy, guidance, legislation and/or regulations.
- Coordinate with industry representatives and the New York State
Department of Environmental Conservation.
III. PROPOSAL REQUIREMENTS
A completed Proposal Checklist must be attached to the front
of all copies of the Technical Proposal. Proposers must submit
eight (8) copies of the complete proposal and include the following
elements:
Background/Approach - Briefly describe your approach to the
project. Justify the rationale behind your technical approach.
Statement of Work - The Statement of Work (SOW) is the primary
contractual document that enables contractor payment. It should be
no more than seven (7) pages long. It is an action document that specifically
delineates each step or procedure required to accomplish the project
objectives. Therefore, each action shall be identified, indicating
who will perform it, how it will be performed and its intended result.
Be clear and specific: concentrate on "how," and not "why".
Use "active voice" sentence structure to make clear who
is responsible for specific actions; for example, use the following
phrase to start the description of every task and subtask: "The
Contractor shall ...." The SOW must be structured as an ordered
set of tasks. In the following shell, tasks explicitly written out
must be included in your proposed statement of work.
Task 1. Project Management
Subtask 1.1: Project Management. The Contractor shall
enter into the following agreements: [list any known subcontractors
required to complete the project.] 1) Subcontract with [Subcontractor
name]; 2) Subcontract with [Subcontractor name]; ...
Subtask 1.2: Meetings. [The Contractor will be required
to coordinate with industry representatives, NYS Department of
Environmental Conservation and NYSERDA throughout the project.
Describe any meetings required to complete the project and include
participants.]
Task 2. Reporting
Subtask 2.1: Monthly Progress Reports. The Contractor
shall submit monthly progress reports to NYSERDA's Project Manager
that include status, any problems, and costs incurred. The Contractor
shall submit these reports by the 15th day of the month following
the reporting period.
Subtask 2.2: Deliverable #1 - Well and Program Review Report.
The Contractor shall complete a report characterizing existing
New York wells, summarize New York State and Federal law pertaining
to well status, summarize applicable API, IOGCC and other states'
programs, and look at available and innovative technology to characterize,
test and plug wells. The Report shall summarize the results of
Tasks 3 through 6.
Subtask 2.3: Deliverable #2 - Characterization Program Implementation
Report. The Contractor shall complete an implementation report
that considers the major categories of wells (For example-Producing
Wells and Bonding, Non-producing Wells and Shut-in Status, and
Orphaned Wells.), and examines the policy implications of these
programs. The Report shall summarize the results of Tasks 7 and
8.
Task 3. Characterize New York State Wells
The contractor shall review and characterize all New York State
wells. [Add any other language you feel is necessary to further
develop this task]
Task 4. State and Federal Review
The Contractor shall conduct a review of New York State and Federal
law pertaining to well status. [Add any other language you feel
is necessary to further develop this task]
Task 5. Other Program Review
The Contractor shall conduct a review applicable API, IOGCC and
other states' programs.
[Add any other language you feel is necessary to further develop
this task]
Task 6. Technology Review
The Contractor shall examine the best available and/or innovative
technology to characterize existing wells, test well-bore integrity,
revive old wells, and plugging technology. [Add any other language
you feel is necessary to further develop this task]
Task 7. Well Characterization Program Development
The Contractor shall develop shut-in programs for the well categories
developed in Task 3. The Contractor shall consider production status,
financial security, number of years out of production or shut-in,
ownership, potential environmental impact, alternative use programs,
plugging issues, well integrity, grand-fathering, etc. [Add any
other language you feel is necessary to further develop this task]
Task 8. Policy Implication and Direction
The Contractor shall assess the program in the context of existing
state legislation and regulation, and suggest modification. [Add
any other language you feel is necessary to further develop this
task]
Please refer to Page 3, Proposal Objectives, for further guidance.
(end of Statement of Work)
Schedule - The project is expected to take 12 months from
contract inception. Within this time frame, present a realistic work
schedule, with a starting point and duration for each task and subtask.
Presentation of the schedule in a bar chart is preferred.
Organization - Describe how the effort will be organized and
managed and clearly identify the person(s) who will be responsible
for ensuring the quality and success of the effort. If more than one
individual will be performing the work, identify each individual and
his/her anticipated role, function, and contribution.
Experience and Qualifications - Include a detailed description
of past experiences and any additional details regarding your qualifications
that are pertinent to NYSERDA's review of your proposal. Provide a
brief description of relevant projects that are germane to this effort.
A client reference should be included for each such project. Resumes
should be included for all persons proposed to assist in meeting the
contract responsibilities.
Contract Pricing Proposal Forms (CPPF)
- Submit a completed form for each of the following:
- The total project cost.
- Each subcontractor.
- Each task.
Attach detailed budget breakdowns for equipment, material, and travel.
For this RFP, cofunding is not required. Unless providing additional
support, please leave the cofunding column blank.
Evidence of Commitment by Participating Organizations - Include
letters of commitment, signed by a person authorized to contractually
obligate the organization, for all major participating organizations.
IV. PROPOSAL EVALUATION
Proposals are due on October 2, 2001. Proposers will be notified
no later than FOUR (4) weeks after proposal evaluation as to the status
of their submission. Proposals will be scored by a Technical Evaluation
Panel (TEP) consisting of NYSERDA staff and external reviewers.
Proposals meeting program requirements will be scored according to
technical criteria; cost proposals will be evaluated for reasonableness;
and proposals will be reviewed to determine whether they meet the
overall objectives of the program. The proposal will be scored according
to the following criteria:
Background/Approach - Is the proposal likely to best develop
an implementation plan? Is the approach likely to meet the study objectives?
Statement of Work and Schedule - Is the Statement of Work
clear, comprehensive, and consistent with the proposal requirements?
Can the proposer meet the schedule? Are staff allocations reasonable?
Does the final product meet the study's objectives?
Proposer Qualifications - Are the roles of responsibility
for the proposer(s) defined? Do key personnel have the necessary qualifications
and experience? Does the proposer have the necessary facilities? Does
the team show a balance of technical, operations, marketing, and administrative
expertise? Is there evidence of a good performance record on other
relevant projects?
Cost Factors - Is the overall cost justified by the anticipated
benefits? Are the labor hours reasonable, based on work needed for
the task or subtask and the skill type or labor category proposed?
Do the materials, equipment, facilities, and travel plans appear to
be consistent with the Statement of Work?
V. PROPOSAL SUBMISSION
To respond to this RFP, please submit eight (8) copies of your proposal
by October 2, 2001 to
Karen Whalen, RFP No. 561-00
NYS Energy Research and Development Authority
17 Columbia Circle
Albany, New York 12203-6399
FAXED and E-Mailed copies will not be accepted.
VI. GENERAL CONDITIONS
PROPRIETARY INFORMATION
Careful consideration should be given before confidential information
is submitted to NYSERDA as part of your proposal. Please consider
if such information is critical for evaluating a proposal, and whether
general, non-confidential information, may be adequate for review
purposes.
The New York State Freedom of Information Law, Public Officers Law,
Article 6, provides for public access to information NYSERDA possesses.
Public Officers Law, Section 87(d) (2) provides for exceptions to
disclosure for records or portions thereof that "are trade secrets
or are submitted to an agency by a commercial enterprise or derived
from information obtained from a commercial enterprise and which if
disclosed would cause substantial injury to the competitive position
of the subject enterprise." Information submitted to NYSERDA
that the proposer wishes to have treated as proprietary, and confidential
trade secret information should be identified and labeled "Confidential"
or "Proprietary" on each page at the time of disclosure.
This information should include a written request to except it from
disclosure, including a written statement of the reasons why the information
should be excepted. See procedure described in Public Officers law,
Section 89(5).
MINORITY- AND WOMEN-OWNED BUSINESS POLICY
It is the policy of New York State to maximize opportunities for the
participation of New York State business enterprises, including minority
and women-owned business enterprises, as bidders, subcontractors and
suppliers on its procurement contracts.
Information on the availability of New York State subcontractors
and suppliers is available from:
Empire State Development
Division for Small Business
30 South Pearl St.
Albany, NY 12245
A directory of certified minority and women-owned business enterprises
is available from:
Empire State Development
Minority and Women's Business Development Division
30 South Pearl St.
Albany, NY 12245
CONTRACT AWARD
NYSERDA may award a contract based on initial proposals without discussion,
or following limited discussion or negotiations. Proposals should
not be excessively long, or submitted in an elaborate format that
includes expensive binders or graphics. Each offer should be submitted
using the most favorable cost and technical terms. NYSERDA may request
additional data, or material to support proposals. NYSERDA will use
the attached Sample Agreement to contract successful proposals.
LIMITATION
This solicitation does not commit NYSERDA to award a contract. NYSERDA
does not pay any costs associated with proposal preparation. NYSERDA
reserves the right to accept or reject any or all proposals received,
to negotiate with all qualified sources, or to cancel in part or in
its entirety the solicitation when it is in the best interest of NYSERDA.
REQUIRED ATTACHMENTS (see http://www.nyserda.org/stdforms.html
or call Karen Whalen at 518/862-1090 x3268)
Proposal Checklist
Contract Pricing Proposal Form
Sample personal services agreement and attachments
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