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COMMERCE BUSINESS DAILY ISSUE OF OCTOBER 2,1996 PSA#1692

U.S. Dept. of Energy, Document Control Specialist, P.O. Box 2500, Washington, DC 20013

R -- INDEPENDENT ASSESSMENT IN THE VALUATION OF OIL AND GAS FIELDS, DIVESTMENT OF NAVAL PETROLEUM RESERVE NUMBERED 1, NAVAL PETROLEUM RESERVES IN CALIFORNIA (NPRC) DUE 102396 POC Mr. Michael C. Whisler, Contract Specialist, HR-562, (202) 634-4510. The U.S. Department of Energy will offer for sale the U.S. Government's interest in the Naval Petroleum Reserve Numbered 1 near Bakersfield, California (also known as ''Elk Hills'') as directed by Section 3412 of the National Defense Authorization Act for Fiscal Year 1996 (''the Act''), Pub. L. 104-106. The Act requires in section 3412(d) that the Department retain ''the services of five independent experts in the valuation of oil and gas fields to conduct separate assessments, in a manner consistent with commercial practices, of the value of the interest of the United States in Naval Petroleum Reserve Numbered 1.'' The Act further provides: In making their assessments, the independent experts shall consider (among other factors) -- (A) all equipment and facilities to be included in the sale; (B) the estimated quantity of petroleum and natural gas in the reserve; and (C) the net present value of the anticipated revenue stream that the Secretary (of Energy) and the Director of the Office of Management and Budget jointly determine the Treasury would receive from the reserve if the reserve were not sold, adjusted for any anticipated increases in tax revenues that would result if the reserve were sold. Finally, the Act provides that the independent experts ''shall also determine and submit to the Secretary (of Energy) the estimated total amount of the cost of any environmental restoration and remediation necessary at the reserve.'' Pursuant to section 3412(k) of the Act, the Department is authorized to use other than competitive procedures, as defined under the Federal Property and Administrative Services Act and implementing regulations, to acquire the services of the five independent assessors. Accordingly, the Department intends to engage in an expedited selection process as provided in this notice and is requesting expressions of interest from qualified experts or teams of experts in the valuation of oil and gas fields who wish to assess the value of the interest of the United States in Elk Hills. I. Qualifications for Respondents: To qualify to respond to this request, a respondent must operate in the United States and must have participated in, since January 1, 1993, an assessment of the value of at least one domestic or international oil and/or natural gas producing property with a total assessed value of at least $100 million. Additionally, a respondent must satisfy the Organizational Conflict of Interest requirements of 48 C.F.R. sections 52.209-8 and 952.209-72. In this regard, the respondents are advised that the minority interest owner of the field is Chevron USA Production Company. Respondents are further advised that a contractor selected for this assessment project will be precluded from advising, assisting, or representing a bidder in the sale of the Elk Hills field until the sale is final. II. Content of Submission: To be considered, an expression of interest must include the following information: (A) A brief description of the respondent, including such information as size and organizational structure and location of respondent's principal place of business and subsidiary offices, if any. (B) A list of each domestic and international oil and/or natural gas property valuation assessment in which the respondent performed a significant role since January 1, 1993, and in which the total assessed value of the property was at least $100 million, including: 1) Completion date of the assessment. 2) Brief description of the property, including location, size, number of producing wells, surface facilities, and such other information as may be needed to indicate the complexity of the property. 3) Identity of the owner of the property. 4) Purpose of the valuation (e.g., in connection with the sale or purchase of the property, taxation, corporate reporting requirements, etc.). 5) Total assessed value of the property. 6) Description of the specific role and scope of responsibility of the respondent in each assessment. (C) A list of all other domestic and international oil and/or natural gas property valuation assessments in which the respondent performed a significant role since January 1, 1993, including: 1) Completion date of the assessment. 2) Brief description of the property, including location, size, number of producing wells, surface facilities, and such other information as may be needed to indicate the complexity of the property. 3) Identity of the owner of the property. 4) Purpose of the valuation (e.g., in connection with the sale or purchase of the property, taxation, corporate reporting requirements, etc.). 5) Total assessed value of the property. 6) Description of the specific role and scope of responsibility of the respondent in each assessment. (D) A description of experience within the past five (5) years in assessing the cost of environmental restoration and remediation requirements relating to oil and/or natural gas producing properties. (E) A description of the respondent's experience, if any, in assessing the value of the interest of the United States in oil and/or natural gas producing properties, other mineral interests or any other property. (F) A description of any teaming arrangement that respondent would propose to use to perform the services described in this Notice. (G) Identification of any business association or other relationship which could pose an Organizational Conflict of Interest (OCI) under 48 C.F.R. sections 52.209-8 and 952.209-72 in the respondent's preparation of an assessment of the value of the government's interest in Elk Hills. The respondent may, but is not required to, include other information that the respondent deems relevant. III. Format of Submission: The submission should be presented in the order and with the enumerations listed in Section II (A)-(G) above. Information that is considered to be proprietary should be appropriately marked. Excessively elaborate or detailed submissions are neither expected nor desired. IV. Submission and Due Date: Expressions of interest must be received by the Department on or before October 23, 1996, and be addressed to: Document Control Specialist - HR-562, U.S. Department of Energy, Headquarters Procurement Operations, 1615 M Street, NW, Room 240, Washington, D.C., 20036. V. Subsequent Schedule: After all submissions are reviewed, the Department will invite a limited number of respondents to submit more detailed information in accordance with the following schedule: Approximately two (2) weeks after receipt of the Expressions of Interest, the Department will issue invitations to the top qualified respondents. Approximately three (3) weeks after notification of selection, written submissions will be due from each respondent describing its preliminary assessment approach, other terms of engagement consistent with commercial practices, a more detailed description of qualifications and information demonstrating compliance with 48 C.F.R. sections 52.209-8 and 952.209-72 pertaining to OCI concerns and information on the teaming arrangement, if submitted. Additional instructions and procedures relating to the written submissions will be issued at the time the group of top qualified respondents is identified. Approximately two (2) weeks after receipt of the second set of written submissions, the Department will select a more limited number of top qualified firms for negotiations, such that five (5) contracts ultimately will be awarded. This notice does not commit the Government to the award of any contract, nor to pay any costs incurred in the submission of any materials, or costs incurred in making any necessary studies in designs for said services. If award is made to any firm as a result of this notice, the terms and conditions of the award will incorporate all clauses required by law, the Federal Acquisition Regulations and the Department of Energy Acquisition Regulations in effect as of the date of the award. (0274)

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