[Federal Register Volume 67, Number 231 (Monday, December 2, 2002)]
[Notices]
[Pages 71543-71544]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-30408]


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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-PS26-03NT15391 entitled ``Advanced and 
Key Oilfield Technologies for Independents.'' 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 and 
key oilfield technologies in the United States. The proposed project 
should address a technical risk that results in the technology's full 
acceptance by the independents. 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 or (2) Exploration.

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) Web page located at http://e-
center.doe.gov on or about December 10, 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 goals of the Department of Energy's 
Fossil Energy Oil Program are 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 exploration through continued 
partnership with public and private entities and to promote enhanced 
oil recovery from existing wells through new technology. By providing 
demonstrations of new technologies and approaches that improve oil 
recovery and increase reserves 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 producers. 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% of 
domestic petroleum and natural gas production in the lower 48 states.'' 
Independent producers have rapidly moved operations into regions that 
were traditionally explored and operated by the major oil companies. 
Recently 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. This 
program builds on the successful reservoir field demonstrations in the 
Research with Independents program by expanding the research and 
demonstration opportunities for independent producers to more complex, 
higher risk projects. Projects selected would be mid-term projects that 
could impact Independent production capabilities and thus have a 
potential for significant impact on domestic production and proved 
reserves, thereby increasing energy security and supply. Mid-term 
projects should have results in 5-10 years. The projects should 
encourage other independents to adopt the use of advanced and key 
technologies that prove successful in the future exploration and 
development of domestic reserves.
    Projects do not need to be limited to one area of operations. They 
may address multiple technologies such as exploration, drilling and 
completion, well stimulation, enhanced oil recovery or other 
operational issues. 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.
    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 areas of 
production. It addresses the technical risk associated with developing, 
testing and deploying an advanced or key technology under actual field 
conditions. This program provides the connection between the laboratory 
and the oilfield 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 exploration methodologies 
and technologies through the partnership with the independent producers 
conducting exploration. The DOE will partner with independent producers 
and others in an effort to push the limits of standard exploration 
technologies and to improve them. Applications are expected to describe 
the overall exploration problem and propose the technical solution to 
the identified problem. They should address the need of the independent 
producer with regard to a region and show that the project provides 
such a solution to the problem or problems.
    DOE anticipates awarding approximately four (4) or five (5) 
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 $2000K.
    This competitive solicitation is open to any business, educational 
institution or state agency and is for the benefit of domestic 
independent producers. 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

[[Page 71544]]

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-
PS26-03NT15391.

    (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 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 November 22, 2002.
Dale A. Siciliano,
Director, Acquisition and Assistance Division.
[FR Doc. 02-30408 Filed 11-29-02; 8:45 am]
BILLING CODE 6450-01-P