[Federal Register Volume 66, Number 61 (Thursday, March 29, 2001)]
[Notices]
[Pages 17164-17165]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-7748]


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DEPARTMENT OF ENERGY

National Energy Technology Laboratory


Improved Recovery From Low-Permeability Formations

AGENCY: National Energy Technology Laboratory (NETL), Department of 
Energy (DOE).

ACTION: Notice of Availability of a Financial Assistance Solicitation.

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SUMMARY: Notice is hereby given of the intent to issue Financial 
Assistance Solicitation No. DE-PS26-01NT41121 entitled ``Improved 
Recovery from Low-Permeability Formations''. The objective of this 
solicitation is to demonstrate existing technologies and methodologies, 
or improve and demonstrate technologies with strong near-term 
commercialization potential, for increasing production from low-
permeability ``tight'' gas formations. Demonstration of existing 
technologies should be relatively new to a basin or play.
    An Information Package is available on the NETL's Homepage at 
http://www.netl.doe.gov/business for viewing and downloading. The 
Information Package contains general information regarding the proposed 
solicitation.

DATES: The solicitation will be available on the DOE/NETL's Internet 
address at http://www.netl.doe.gov/business on or about April 6, 2001. 
Prospective applicants are invited to E-mail any comments and/or 
questions associated with the information presented to Dona Sheehan via 
the Internet at [email protected] by COB on March 30, 2001 as a 
draft version of the solicitation will not be issued.

FOR FURTHER INFORMATION CONTACT: Dona G. Sheehan, U.S. Department of 
Energy, National Energy Technology Laboratory, P.O. Box 10940, MS 921-
107, Pittsburgh, PA 15236-0940, E-mail Address: [email protected], 
Telephone Number: 412/386-5918.

SUPPLEMENTARY INFORMATION: As new discoveries from conventional 
supplies decline, future supplies of natural gas will have to come 
increasingly from low-permeability (tight) reservoirs. The National 
Petroleum Council's (NPC) 1992 natural gas study concluded that 232 Tcf 
of gas could be technically recoverable from low-permeability 
formations, and assuming that technology improvements continued, the 
NPC estimated that 349 Tcf of gas could be produced. In their most 
recent study (1999), the NPC states that deeper resources, resources in 
deeper water, and nonconventional resources will be the key to future 
supply. However, under current limitations in exploration and 
production technology, only a small portion of this vast resource is 
economic to develop.
    A significant portion of natural gas resources in low-permeability 
formations are found in deep reservoirs and in large gross intervals 
(over thousands of feet) with many potential pay zones. In addition, 
most low-permeability wells are marginally productive because an 
extensive, well-

[[Page 17165]]

connected natural fracture network is the exception, rather than the 
rule. These factors indicate that improved recovery technology and 
reduced costs associated with completion will increase recovery from 
this vital resource.
    Although the high ultimate recovery from wells associated with 
large natural fractures systems are the exception, these wells can 
produce 5-10 Bcf. However, these wells often have problems associated 
with high water production because the natural fracture system connects 
to overlying or underlying water zones or because they are associated 
with a fault(s) that provides a pathway for large water influx.
    Applications will be accepted for research and development (R&D) in 
two major areas: (1) Improved completion technology; and (2) 
identification/remediation of high water production problems from 
basin-centered gas plays. Priority basins and plays in which the R&D 
shall be conducted will be identified from previous United States 
Geological Survey, NPC and NETL studies, but will more than likely 
include: Greater Green River, Wind River, Anadarko, Permian, San Juan, 
Piceance, Uinta, Arkla-E.Texas.
    Increasing reserves per well with better completion technology or 
reducing the cost to complete a well will vastly improve the recovery 
from marginally economic wells. Applications for improved completions 
can include (but will not be limited to): Cementing, downhole 
separation/reinjection, stimulation techniques, e.g., comparable 
fluids, composite fracturing plugs/baffles, and zonal isolation, 
improved identification of most productive intervals, tubulars 
(CO2/H2S), multi-lateral horizontal wells, and 
multiple stimulations from a horizontal well. By identifying the 
sources and mechanisms of high water production, industry can avoid 
these areas or complete the reservoir in a way that reduces or 
eliminates excessive water production. Applications for identification 
of high water production problems from basin-centered gas plays can 
include): Regional hydrologic study, water sampling and analysis, new/
improved geophysical well log processing, and improved downhole fluid 
identification.
    DOE anticipates issuing financial assistance (Cooperative 
Agreement) awards. DOE reserves the right to support or not support, 
with or without discussions, any or all applications received in whole 
or in part, and to determine how many awards will be made. Multiple 
awards are anticipated. Approximately $2 million of DOE funding is 
planned over a 3 year period for this solicitation. National 
Laboratories may participate as team members; however, they may not act 
as the prime awardee and total funding to the Laboratory must not 
exceed 10% of the total project cost. If a project which includes 
National Laboratory participation is approved for funding, DOE intends 
to make an award to the applicant for its portion of the effort and to 
provide direct funding for the National Laboratories portion of the 
effort as a Field Work Proposal (FWP). DOE has determined that a 
minimum cost share of 20 percent of the total project cost is required 
for this solicitation. Details of the cost sharing requirement and the 
specific funding levels will be contained in the solicitation. The 
anticipated period of performance of the projects will range in 
duration from 24 months to 36 months.
    Prospective applicants who would like to be notified as soon as the 
solicitation is available should register at http://www.netl.doe.gov/business. Provide your E-mail address and click on the ``Oil & Gas'' 
technology choice located under the heading ``Fossil Energy.'' Once you 
subscribe, you will receive an announcement by E-mail that the 
solicitation has been released to the public. Telephone requests, 
written requests, E-mail requests, or facsimile requests for a copy of 
the solicitation package will not be accepted and/or honored. 
Applications must be prepared and submitted in accordance with the 
instructions and forms contained in the solicitation. The actual 
solicitation document will allow for requests for explanation and/or 
interpretation.

    Issued in Pittsburgh, PA on March 7, 2001.
Dale A. Siciliano,
Deputy Director, Acquisition and Assistance Division.
[FR Doc. 01-7748 Filed 3-28-01; 8:45 am]
BILLING CODE 6450-01-P