[Federal Register Volume 59, Number 67 (Thursday, April 7, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-8360]


[[Page Unknown]]

[Federal Register: April 7, 1994]


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DEPARTMENT OF ENERGY
 

Financial Assistance Award: University of Missouri-Rolla

AGENCY: U.S. Department of Energy, Metairie Site Office.

ACTION: Notice of Intent.

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SUMMARY: The Department of Energy (DOE), Metairie Site Office, 
announces that pursuant to 10 CFR 600.7(b)(2)(i)(D) it intends to make 
a Non-Competitive Financial Assistance Award (Grant) through the 
Pittsburgh Energy Technology Center to the University of Missouri-
Rolla.

FOR FURTHER INFORMATION CONTACT: U.S. Department of Energy, Pittsburgh 
Energy Technology Center, Acquisition and Assistance Center, P.O. Box 
10940, MS 921-118, Pittsburgh, PA 15236, Attn.: Nancy Toppetta, 
Telephone: (412) 892-5715.

SUPPLEMENTARY INFORMATION: The University of Missouri-Rolla (UMR) has 
proposed that DOE sponsor a study of Area of Review (AOR) variance 
possibilities for the East Texas field, with Phase I beginning in April 
1994. A further study of other high-priority areas in Texas, Phase II, 
will be initiated and completed in 1995. It is expected that the Phase 
I data required for AOR variance consideration will be supplied by the 
East Texas Salt Water Disposal Company, which operates injection wells 
for the field on behalf of field owners.
    When the Underground Injection Control (UIC) regulations were 
promulgated under the Safe Drinking Water Act in 1980, existing Class 
II injection wells were excluded from AOR requirements. The 
Environmental Protection Agency (EPA), through a Federal Advisory 
Committee (FAC), has recently recommended that AORs for existing wells 
(which were not previously subject to that requirement) be performed 
within five years of promulgation of amended UIC regulations. The FAC 
has, however, recognized that conditions can exist that make it 
unnecessary to perform well-by-well AORs and that wells in a basin, 
producing trend, region or field, or a portion of such areas can be 
exempted from an AOR through a variance program.
    A methodology for identifying areas that would be eligible for 
variance from AOR requirements based upon the FAC criteria has been 
developed by a research team in the School of Mines and Metallurgy at 
the UMR under sponsorship of the American Petroleum Institute (API). 
The methodology provides for evaluation of an area for variance based 
upon certain conditions or based upon the manner by which wells in the 
area were constructed and abandoned. Wells not excluded by variance 
would be subject to well-by-well AORs. With continuing sponsorship from 
the American Petroleum Institute, the AOR variance methodology 
developed at the UMR has been applied to 24 oil fields undergoing 
injection in the San Juan Basin of New Mexico and is currently being 
applied to injection fields in selected counties of the Permian basin 
in West Texas. In the San Juan Basin, at least two variance criteria 
were found to apply to all 24 fields and are believed to provide good 
possibilities for variances in 20 fields and some possibilities in the 
remaining four.
    The East Texas Field was discovered in 1930 and is the largest oil 
field in the Lower-48 states. Recovery from the field is expected to 
ultimately be about 5.6 billion barrels. The AOR, which has a \1/4\ 
mile radius, frequently includes 25 or more wells. Since the field is 
over 60 years old and many of the wells have been abandoned for a 
number of years, the abandonment records are sometimes not readily 
available. More than 30,000 wells have been drilled in the field and 
less than 8,000 are currently producing. Records on 22,000 abandoned 
and inactive wells (some of which are over 60 years old) will be hard 
to locate.
    Requirement for complete AORs on all existing injection wells could 
create an unbearable burden of proof on the East Texas Saltwater 
Disposal Company and many of the independent operators in the East 
Texas field who can least afford the expense of such compliance. The 
cost of compliance with EPA's proposed revisions to the UIC Class II 
regulations is estimated to be $86.2 million to the East Texas 
Saltwater Disposal Company and the East Texas field operators for the 
first five years after promulgation of the regulations. Variance from 
complete AORs for the East Texas field could significantly reduce these 
anticipated costs. Successful application of the UMR variance 
methodology would also further establish the potential value of the 
methodology to other producing areas in Texas and the United States.
    In accordance with 10 CFR 600.7(b)(2)(i) criteria (D), a 
noncompetitive Financial Assistance Award to the UMR has been 
justified. DOE support of the activity would provide that analysis be 
made of proprietary non-public data which would otherwise be 
unavailable. In addition, DOE support would allow the results of the 
research to be transferred to oil and gas operators, to the State of 
Texas, and to the public. This effort is therefore considered suitable 
for noncompetitive financial assistance and would not be eligible for 
financial assistance under a solicitation.
    DOE funding for this research is estimated to be approximately 
$500,000 for the 24 month duration of the project. These funds shall be 
used to pay for the reasonable cost of research staff, equipment, 
administrative support personnel, consultants, experts, and printing 
costs as necessary for the research project.

    Dated: March 28, 1994.
Richard D. Rogus,
Contracting Officer.
[FR Doc. 94-8360 Filed 4-6-94; 8:45 am]
BILLING CODE 6450-01-P