[Federal Register Volume 67, Number 81 (Friday, April 26, 2002)]
[Notices]
[Pages 20758-20760]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-10285]


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DEPARTMENT OF ENERGY

National Energy Technology Laboratory


Notice of Availability of a Financial Assistance Solicitation

AGENCY: National Energy Technology Laboratory, 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-PS26-02NT15376 entitled ``Advanced 
Technology Development by Independents for High Risk Domains.'' The 
Department of Energy (DOE) National Energy Technology Laboratory 
(NETL), on behalf of its National Petroleum Technology Office (NPTO), 
seeks applications for cost-shared development and demonstration 
projects using advanced technologies that address specific high risk 
domains in the United States. The proposed project can address a 
technical risk that impacts the technology's full acceptance by the 
independents working in one of three areas; the shallow shelf Gulf of 
Mexico, Alaska and the Rocky Mountain Frontier. Or the proposed project 
can address the critical problems associated with exploration of these 
regions. The goal is to provide technical solutions to issues that are 
limiting domestic on-shore or off-shore oil exploration and production 
by independent oil producing companies while providing the same or 
higher levels of environmental protection expected under the law.
    Applications will either address: (1) Existing Fields--established 
production areas of the Gulf of Mexico and Alaska and Rocky Mountain 
Frontier regions, or (2) Exploration--in the very complicated 
environments of the Gulf of Mexico and Alaska and Rocky Mountain 
Frontier regions.

DATES: The solicitation will be available on the DOE/NETL's Internet 
address at http://www.netl.doe.gov/business and on the ``Industry 
Interactive Procurement System'' (IIPS) webpage located at http://e-
center.doe.gov on or about April 30, 2002.

FOR FURTHER INFORMATION CONTACT: Keith R. Miles, Department of Energy, 
National Energy Technology Laboratory, P.O. Box 10940, MS 921-107, 
Pittsburgh, PA 15236, E-mail Address:[email protected], Telephone 
Number: 412-386-5984.

SUPPLEMENTARY INFORMATION: The mission of the Department of Energy's

[[Page 20759]]

Fossil Energy Oil Program is derived from the National need for 
increased oil production as a part of the national security, 
requirements for Federal Lands stewardship, and increased protection of 
the environment. The Oil Reservoir Life Extension Program supports 
those goals. In addition, the program supports the National Energy 
Policy goals to increase domestic oil and gas exploration through 
continued partnership with public and private entities and to promote 
enhanced oil and gas recovery from existing wells through new 
technology. By providing demonstrations of new technologies and 
approaches that improve the recovery and allow access and explorations 
to technologically difficult locations, the oil program will increase 
the domestic oil supply.
    The Department of Energy Oil Program has, through funding by 
Congress focused on the needs of the Nation's independent oil 
operators. The Administration also addressed the needs of the 
independent oil producer in the National Energy Policy when they 
recognized that, ``Small independent businesses account for 50-65% 
respectively of domestic petroleum and natural gas production in the 
lower 48 states.'' Independent operators have rapidly moved operations 
into regions that were traditionally explored and operated by the major 
oil companies. Recently the many of the Nation's independent producers 
placed in the ranks of the top 20 producing companies in the United 
States. They currently maintain 63% of the oil reserves and 62% of the 
oil production. They control 50% of the gas reserves and 52% of the gas 
production. In the Gulf of Mexico, one of the regions addressed under 
this solicitation, independent producers control 25% of the oil 
production. Alaska has received the attention of independent operators 
in recent years as these companies have taken on larger and larger 
leaseholds and operations responsibilities. Based on these figures, it 
is important that the independent producers use the most effective and 
advanced technologies in their operations to maximize production and 
protection of the environment and the resource. It is our intention to 
partner with the independents who are pushing into new areas of 
activity either by addressing under explored areas of the State of 
Alaska and the Rocky Mountain Frontier region, or by testing the newest 
technologies as they move into greater operations in the shallow 
offshore Gulf of Mexico and the other two higher risk regions of Alaska 
and the Rocky Mountains.
    Projects do not need to be limited to one area of operations. They 
may address exploration, drilling and completion, well stimulation, 
enhanced oil recovery or other operational issues. They can involve 
several processes and seek to test a management process. The proposed 
project must however address the identified problems in such a way that 
evaluation of the success or failure can occur and the reasons can be 
attributed clearly to the technology or some other identified factor.
    The proposed projects must contain a field demonstration.
    The solicitation targets projects in three areas: shallow offshore 
Gulf of Mexico, Alaska, and Rocky Mountain Frontier. Projects will be 
accepted that address problems affecting independent exploration and 
production in these areas. The program is not intended to simply 
provide additional government funding to a proposed capital or venture 
project operated by an independent operator. Projects should describe 
how the proposed project expects to increase the oil and gas production 
in one of the three identified high risk regions. The goal is to assist 
the operator in testing new technology or processes and extending their 
expertise into these high risk domains in an effort to create a broader 
reserve base for the Nation using its own entrepreneurs. The two areas 
of interest for this solicitation are:
    Area of Interest 1--Existing Fields--The projects in this area will 
promote the goals of the National Energy Policy to use new technology 
to promote enhanced oil and gas recovery in established production 
areas of the Gulf of Mexico and Alaska and Rocky Mountain Frontier 
regions. It addresses the technical risk associated with developing, 
testing and deploying a new technology under actual field conditions. 
This program provides the connection between the laboratory and the 
field and applications are expected to provide documentation of the 
need for this technology and the problem that it will address. The 
program allows continued development of a technology to create 
evolutionary improvements in performance and then the demonstration of 
such improvements in actual field conditions.
    Area of Interest 2--Exploration--The projects in this area target 
the National Energy Policy goal of advancing new exploration 
methodologies and technology through the partnership with the 
independent producers conducting exploration in very complicated 
environments. The DOE will partner with independent producer in an 
effort to push the limits of standard exploration technologies and to 
improve them. Applications are expected to describe the overall 
exploration problem in the exploration of deeper formations in the 
Shallow offshore Gulf of Mexico, the oil-prone areas of Alaska, or the 
Rocky Mountain Frontier and propose the technical solution to the 
identified problem. They should address the need of the independent 
operator with regard to this region and show that the project provides 
such a solution to the problem or problems.
    DOE anticipates awarding approximately five (5) to seven (7) 
financial assistance (i.e., Cooperative Agreements) with a project 
performance period no less than three years in length and no more than 
five years in length. Approximately $7.0 million of DOE funding is 
planned over a 3-year period for this solicitation. The proposed 
projects will contain a field demonstration and as such under the 
Energy Policy Act of 1992 a minimum of 50% cost share of the total 
estimated project cost is required. The maximum DOE share of an award 
will be $1500K.
    This competitive solicitation will be restricted to domestic 
independent operators. Moreover, for the purposes of this solicitation, 
an Independent operator shall be a non-integrated company which 
receives most of its revenue from crude oil or natural gas production 
at the wellhead. Independents are exclusively in the exploration and 
production segment of the industry with no retail outlets, marketing or 
refining operations. Applications submitted by or on behalf of (1) 
another Federal agency; (2) a Federally Funded Research and Development 
Center sponsored by another Federal agency; or (3) a Department of 
Energy (DOE) Management Operating (M&O) contractor will not be eligible 
for award under this solicitation. However, an application that 
includes performance of a portion of the work by a DOE M&O contractor 
will be evaluated and may be considered for award subject to the 
provisions to be set forth in Program Solicitation DE-PS26-02NT15376. 
(Note: The limit on participation by an M&O contractor for an 
individual project under this solicitation cannot exceed 25% of the 
total project cost).
    Once released, the solicitation will be available for downloading 
from the IIPS Internet page. At this Internet site you will also be 
able to register with IIPS, enabling you to submit an application. If 
you need technical assistance in registering or for any other IIPS 
function, call the IIPS Help Desk at (800) 683-0751 or E-mail the Help 
Desk personnel at center.doe.gov">IIPS_HelpDesk@e-center.doe.gov. The solicitation will

[[Page 20760]]

only be made available in IIPS, no hard (paper) copies of the 
solicitation and related documents will be made available.
    Prospective applicants who would like to be notified as soon as the 
solicitation is available should subscribe to the Business Alert 
Mailing List at http://www.netl.doe.gov/business. 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 April 19, 2002.
Dale A. Siciliano,
Deputy Director, Acquisition and Assistance Division.
[FR Doc. 02-10285 Filed 4-25-02; 8:45 am]
BILLING CODE 6450-01-P