[Federal Register Volume 67, Number 92 (Monday, May 13, 2002)]
[Notices]
[Pages 32023-32025]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-11915]


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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-PS26-02NT15375 entitled ``Public 
Resources Invested in Management and Extraction (PRIME) .'' The 
Department of Energy (DOE) National Energy Technology Laboratory 
(NETL), on behalf of its National Petroleum Technology Office (NPTO), 
seeks applications for cost-shared long-term (7-10 years), high-risk 
research and development (R & D), including fundamental research and 
optimization of important, state-of-the art oil/gas technologies, for 
future applications on

[[Page 32024]]

domestic areas including on state and federal lands and waters. These 
longer-term, high-risk research activities emphasize new concepts and/
or approaches that may lead to significant revolutionary (i.e., not 
evolutionary) advancements in the state-of-the-art oil/gas technology 
by reducing risks, costs, and environmental impacts associated with 
finding and producing U.S. petroleum resources. The projects in this 
program may be designed to yield specific solutions to exploration and 
production problems including issues of public lands, and allowing real 
returns from these lands and waters while preserving the Nation's 
asset.
    The goal is to develop world class technologies that will provide 
the domestic industry a leadership role in discovery and the 
development of undiscovered or previously unattainable resources. This 
new initiative will focus longer-term fundamental R&D in the following 
three broad areas: (1) Oil and Gas Recovery Technology, (2) Advanced 
Drilling, Completion, Stimulation, and Operations (ADCS), or (3) 
Advanced Diagnostic and Imaging Systems (ADIS) and Reservoir 
Characterization.

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 May 31, 2002.

FOR FURTHER INFORMATION CONTACT: Keith R. Miles, U.S. 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 Department of Energy, National Energy 
Technology Laboratory's Fossil Energy--Oil and Gas Program plans to 
initiate a fundamental research and development (R&D) program (PRIME) 
in exploration and production technologies during FY-2002. This new 
initiative differs from the current Fossil Energy--Oil and Gas Program 
in that it stresses high-risk research that may require multiple years 
to develop from the concept phase. Such R&D activities warrant the 
longer-term investment of resources from which one to several 
breakthroughs may result in significant advancements in our 
understanding and subsequent development in technologies applicable to 
petroleum exploration and production.
    The three areas of interest for this solicitation are:

Area of Interest 1--Oil and Gas Recovery Technology

    The production research program has historically targeted oil 
reservoirs that contain around 200 billion barrels of oil that are 
potentially recoverable by conventional Enhanced Oil Recovery (EOR) 
methods. This program has been subdivided into the areas, (1) chemical 
methods, (2) gas flooding, (3) microbial methods, (4) heavy oil 
recovery, (5) novel methods, and (6) reservoir simulation. Each area 
addresses one or more specific portions of the resource base.
    However, new technologies and concepts are being developed so there 
may be new areas that do not fit into the present EOR methods. This 
initiative is to focus on new technologies with longer-term R&D 
potential (recovery processes which are only at the concept stage), 
which may help recover additional oil but are currently outside the 
traditional methods.

Area of Interest 2--Advanced Drilling, Completion, Stimulation, and 
Operations (ADCS)

    Currently producers and service providers in the oil and gas 
industry are being asked to reach deeper depths with a minimum of 
damage to the producing formation and at a cost well below traditional 
methods. What the industry needs is safe, lower cost drilling systems 
whose use can be considered value added and not simply a cost to the 
project. Technology that increases the ultimate production and creates 
access to the remote sites with a minimum disturbance and have the 
ability to drill and complete wells while protecting the environment is 
essential in the effort to develop remote areas.
    DOE is looking for projects with the potential to create 
technological breakthroughs and surmount the current barriers to 
drilling and production. Projects should use an integrated system 
approach to the problems. The needs identified as high priority by a 
group of industry and research representatives in the ADCS area are:
     Miniaturization and materials development--The operational 
and mobilization costs associated with drilling and completion must be 
reduced significantly without sacrificing any performance. It will be 
necessary to develop beyond our current capabilities in the offshore 
and deep onshore to access the deeper targets economically and also to 
reduce the exploration costs. Research to improved performance and 
reliability must increase radically in order to reach some targets. DOE 
is accepting proposals for revolutionary development that would come 
into use after 2010. Such breakthroughs could lead to reductions in 
mobilization costs and increase the economics of a prospect. This may 
be achieved through breakthroughs in the following areas:
    (1) Materials development that would allow the design of lighter, 
yet robust systems for drilling and operations.
    (2) Miniaturization without loss of performance or reliability 
would effectively reduce space and weight requirements so critical to 
remote locations and ultradeep offshore development and exploration.
     Fluid/flow identification--It is critical to identify flow 
and fluids the horizontal leg of a well and in multi-lateral wells. The 
need for ``smart pipes'' and robust diverse sensors are suitable for 
such work. In particular, the identification must be in space. 
Parameters could include pressure, temperature, density, specific 
gravity, flow rate, flow volume, acoustics, orientation, motion or 
vibration, electrical or acoustical conductivity, radioactivity, and 
chemical composition.
     Separation technology--Downhole separation technology 
along with seafloor separation technology will be critical to the 
offshore industry and reduce the costs associated with produced water 
and waste issues. The technology has not advanced to fully address 
multi-lateral well designs or separation in the horizontal leg of a 
well. Proposals are sought for two topics in this area:
    (1) Issues related to downhole separation--Radical design of 
downhole separation technology is critical to handle higher flow rates, 
fit into 8" diameter and less wells, operate effectively at high water 
cuts, be able to handle solids, maintain better separation efficiency 
and high product quality.
    (2) Subsea separation--The separation technology suitable to reduce 
cost associated with water lifting to the surface and address the 
associated disposal issues could create economic targets offshore that 
are currently marginal. Significant breakthroughs in this area are 
sought.

Area of Interest 3--Advanced Diagnostic and Imaging Systems (ADIS) 
and Reservoir Characterization

    High risk, long term new research applications are solicited for 
finding new domestic oil/gas reserves. The research may be focused to 
develop innovative geologic system models and exploration concepts for 
analysis ofU.S. basins for new and overlooked fairways (field-to-basin 
scales).

[[Page 32025]]

    The potential is focused on the development and application of new 
geoscientific and engineering concepts in high oil/gas potential basins 
on public lands and waters. Technology is needed to increase accuracy 
and resolution of seismic and other geological and geophysical methods. 
New methodology is solicited for interpretation and integration of 
multiple technology, and data sets into refined geologic and 
engineering models that guide discovery of new oil reserves, oil field 
development, and management for maximum economic oil recovery.
    DOE currently has available $3.5 million for this Program 
Solicitation (PS) and the proposed budget for this program over 5 years 
is $23.5 million of DOE support. The total program of PRIME may be $30 
million for a period of 7-10 years. It is anticipated that between 10-
20 cost-shared awards, with a total project value estimated at $1.0 
million to $1.5 million each (i.e., DOE share of project costs 
estimated at between $750K-$1,000K), will be made under this 
solicitation. The applicant must cost share a minimum of 20% of the 
total project cost. Projects must be structured with two (2) phases 
(i.e., Budget Periods) which include: idea and/or concept development 
(Budget Period 1) and initiation of proof-of-concept activities (Budget 
Period 2).
    The research conducted in this program will provide support for 
foundation-building R&D in universities and the national laboratories 
and maintain the leadership of the United States in oil and gas 
technologies. It is envisioned that a teaming of expertise from 
academic, private research organizations, state and federal agencies in 
collaboration with industry may be needed to focus efforts on 
overcoming key scientific and engineering hurdles. 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 National Laboratory and/or M&O contractor 
will be evaluated and may be considered for award subject to the 
provisions to be set forth in Program Solicitation DE-PS26-02NT15375. 
(Note: The limit on participation by a National Laboratory and/or 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 
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 May 3, 2002.
Dale A. Siciliano,
Deputy Director, Acquisition and Assistance Division.
[FR Doc. 02-11915 Filed 5-10-02; 8:45 am]
BILLING CODE 6450-01-P