[Federal Register Volume 68, Number 178 (Monday, September 15, 2003)]
[Notices]
[Pages 53969-53970]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-23419]


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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-PS26-03NT15392-0 entitled ``Microhole 
Technology Development.'' The Department of Energy (DOE), National 
Energy Technology Laboratory's (NETL) National Petroleum Technology 
Office (NPTO) is seeking applications for cost-shared development and 
demonstration projects using microhole technologies in the United 
States.

DATES: The solicitation will be available on the ``Industry Interactive 
Procurement System'' (IIPS) webpage located at http://e-center.doe.gov 
on or about September 30, 2003. Applicants can obtain access to the 
solicitation from the address above or through DOE/NETL's website at 
http://www.netl.doe.gov/business.

FOR FURTHER INFORMATION CONTACT: Keith R. Miles, MS 921-166, U.S. 
Department of Energy, National Energy Technology Laboratory, 626 
Cochrans Mill Road, PO Box 10940, Pittsburgh, PA 15236-0940. E-mail 
Address: [email protected]. Telephone Number: 412-386-5984.

SUPPLEMENTARY INFORMATION: The goal of this Microhole Technology (MHT) 
solicitation is to support Reservoir Life Extension/Domestic Resource 
Conservation by facilitating exploration and production companies in 
the effort to find, characterize and develop shallow domestic oil and 
natural gas resources inexpensively. The purpose of this solicitation 
is to demonstrate present MHT capabilities and development of missing 
key MHT components. Microhole Technology will consist of the techniques 
and tools used to drill, complete and characterize reservoirs 5,000 
feet deep in a 3\1/2\'' diameter borehole. Microhole drilling will use 
a coiled tubing drilling rig and appropriate Logging While Drilling 
(LWD), Measurement While Drilling (MWD), Directional Assembly (DA) and 
Positive Displacement Motor (PDM) to eventually drill a 3\1/2\'' 
borehole to a minimum of 5,000 feet True Vertical Depth (TVD) and a 
minimum 1,000 feet directional displacement from the surface well 
location. Microhole completion equipment are those items necessary to 
run, set and cement casing and the associated downhole tubulars 
(packers, sleeves, nipples, screens, etc.), surface wellhead, 
perforation tools and stimulation tools. Microhole reservoir 
characterization equipment includes Vertical Seismic Profiling (VSP) 
and downhole reservoir sensors. Some of the Microhole Technology parts 
exist and are now in use in coiled tubing and slimhole drilling. The 
program is open to any business, educational institution or state 
agency and is for the benefit of the domestic oil industry.
    The two solicitation Areas of Interest are described below.

Area of Interest 1: DE-PS26-03NT15392-1: Field Demonstration

    Projects in Area 1 promote the National Energy Policy goal of 
enhanced oil and gas recovery with advanced technology. Applications in 
Area 1 will be drilling programs that demonstrate current microhole 
technologies in

[[Page 53970]]

different geographic regions of the United States. Area 1 will accept 
drilling program applications with a minimum 50% cost share for 
drilling new or extending existing wells using a coiled tubing drilling 
system. Each drilling program must have a minimum of three wells. 
Approximately three applications will be funded. The successful awards 
will be with different E&P companies in diverse geographic locations. A 
coiled tubing drilling system must be used to drill the last length of 
hole. This hole will be no more than 4\3/4\'' diameter and no less than 
1,000 feet long. Applications must include an economic analysis of 
coiled tubing drilling versus rotary drilling and overall economics of 
the drilling program. Technology transfer of the drilling program 
results will be a requirement.

Area of Interest 2: DE-PS26-03NT15392-2: Technology Development

    Applications submitted under Area 2 must target one (1) of four (4) 
specific technical topics (shown below) for the development and 
manufacture of equipment required to fulfill the Microhole Technology 
goal. This equipment will be an evolutionary advance over existing 
designs. Applications must include conceptual drawings, basic 
engineering design specifications, Quality Control standards, corporate 
history, product test capabilities and proposed test standards. 
Proposed equipment will complement the Microhole Technology goal of 
drilling, completing and characterizing reservoirs a minimum of 5,000 
feet TVD and 1,000 feet directional displacement in a 3\1/2\'' 
borehole. All component applications must be compatible with the 
Microhole Coiled Tubing Rig. DOE personnel will coordinate 
compatibility issues between manufacturers. A 20% cost share is 
required for any Area 2 application.
    Applications for Area 2 must target only one (1) of the following 
four (4) topics:
    1. Built for purpose Microhole Coiled Tubing Rig (MCTR). The MCTR 
will handle 1'' through 2\3/8\'' coiled tubing. The rig will be able to 
drill and case surface, intermediate, production and liner hole 
intervals. The rig will be able to drill with coiled tubing and 
conventional rotary or top drive. The rig will be able to run at a 
minimum 7\5/8\'' range 2 casing. The MCTR may be truck, trailer or skid 
mounted and meet USDOT limitations. The MCTR may be more than one load. 
If skid mounted the rig must be helitransportable. The MCTR must be 
readily adaptable to support low-cost directional drilling and through-
tubing micro-lateral drilling from existing wells. The MCTR must be 
able to drill with low density, compressible drilling fluids. The MCTR 
design will facilitate quick reel or coiled tubing changes in the 
field.
    2. Self contained ``zero discharge'' drilling mud system. The mud 
system may be truck, trailer or skid mounted and meet USDOT 
limitations. If skid mounted it will be helitransportable. The mud 
system may be more than one load. The mud system will be compatible 
with the MCTR. The mud system will be able to mix, circulate downhole, 
clean and hold diesel or water based drilling mud. The mud system will 
have a minimum 200 bbl total capacity with active, reserve and trip 
tanks. The mud pump will be from a standard oilfield equipment 
manufacturer and be capable of circulating 15 gpm at 5,000 psi and 500 
gpm at 1,000 psi. The mud system will have a solids control system 
capable of continuously separating the drill solids and ``fine'' low 
gravity drill solids. The mud system must be compatible with an 
underbalanced drilling system.
    3. Microhole Coiled Tubing Bottom Hole Assemblies. MWD, LWD, DA and 
PDM suitable for drilling 3\1/2\'' boreholes. Applications may be for 
all or any portion of these Bottom Hole Assemblies.
    4. Microhole Cementing Equipment. Cementing float shoe, collar, 
wiper plugs and cement head/plug launcher for 2\7/8\'', 2\3/8\'', 2'' 
and 1\3/4\'' coiled tubing.
    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. 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 September 3, 2003.
Dale A. Siciliano,
Director, Acquisition and Assistance Division.
[FR Doc. 03-23419 Filed 9-12-03; 8:45 am]
BILLING CODE 6450-01-P