Loren Data Corp.

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COMMERCE BUSINESS DAILY ISSUE OF JULY 13,1999 PSA#2386

Department of the Interior, Minerals Management Service, Procurement Operations Branch, MS2500, 381 Elden Street, Herndon, Virginia 20170-4817

B -- SYNTHETIC BASED MUD SEAFLOOR MONITORING PROGRAM SOL 1435-01-99-NSLGM9905 DUE 073099 POC Alexis Steen, Contracting officer, 202-682-8339 E-MAIL: Contracting Officer's E-mail address, steena@api.org. THIS ANNOUNCEMENT IS A CALL FOR CAPABILITY STATEMENTS ONLY from companies interested in the SYNTHETIC BASED MUD SEAFLOOR MONITORING PROGRAM . A consortium of oil companies, drilling mud companies, and synthetic based fluid suppliers/manufacturers, in conjunction with the American Petroleum Institute (API) and the Minerals Management Service (MMS), intends to competitively award a contract. The API will issue a Request For Proposal (RFP) to conduct a comprehensive shallow and deepwater study on the fate and effects of discharged drill cuttings and associated synthetic based drilling muds (SBM's) in the Gulf of Mexico. This program, to be designated the Gulf of Mexico Synthetic Based Mud Seafloor Monitoring Study, will be managed by a Project Team comprised of sponsor representatives. The broad objective of this program is to assess the fate and effects (physical, chemical, and biological) of discharged cuttings drilled with SBM ("SBM cuttings") in shallow continental shelf and deeper continental slope waters (>500-1500 m). The purposes for this study are to: 1) provide the Environmental Protection Agency (EPA) with scientific data upon which to base effluent limitations for the discharge of SBM cuttings; 2) provide industry with scientifically valid data for the environmental assessment of the discharge of SBM cuttings; and 3) to provide MMS with valuable environmental data which will assist them in their management and oversight of offshore energy development. Specific sub-objectives include: 1) To determine the thickness and areal extent of SBM cuttings accumulations on the seafloor and the magnitude and temporal behavior of SBM base fluid concentrations in sediments near discharge sites representative of Gulf of Mexico conditions at both continental shelf and upper slope (40-500 m depth) and deepwater (500-1500 m depth) discharge sites. 2) To determine the temporal behavior of SBM base fluid concentrations in sediments near discharge sites representative of Gulf of Mexico conditions at both continental shelf (100-500 m depth) and deepwater (>500 m depth) discharge sites. 3) To document physical-chemical conditions in sediments in areas where SBM base fluids are present and to compare these conditions with those in reference sediments distant from SBM discharges. Sediment conditions include SBM base fluid concentrations, effects on sediment oxygen levels due to SBM accumulation, and shifts in the depth of the redox potential discontinuity (RPD) layer. 4) To determine if a zone of biological effect has developed related to the discharge of SBM cuttings. Biological changes due to physical effects should be distinguished from those due to the presence of SBM base fluids on cuttings. Two basic types of drilling fluids are currently in use: water based fluids and non-aqueous based fluids. Non-aqueous based fluids are further subdivided into oil based fluids, enhanced mineral oil based fluids, and synthetic fluids according to the nature of the organic fluid phase (EPA, 1996). Non-aqueous based fluids are used when drilling conditions require more stabilization of the borehole, lubricity, and resistance to thermal degradation than can be provided by water based fluids. Non-aqueous based fluids are frequently used in development drilling operations because the well paths are deviated, rather than vertical, in order to reach distant parts of the reservoir from a fixed drilling location. Synthetic based drilling fluids, based on organic fluids such as esters, olefins, acetals, and ethers were developed to provide drilling performance equivalent to that of oil based muds and improvements in environmental performance compared to that of oil based muds. The bulk discharge of these fluids is not allowed. However, drill cuttings containing residual SBMs have been discharged during drilling operations in the central and western Gulf of Mexico. EPA began the development of effluent limitations specific to SBM cuttings with the publication of a statement of intent to provide guidance to NPDES permit writers on this issue. This process has continued with the publication of proposed effluent limitations guidelines for synthetic-based fluids (64(22)FR5488, Feb. 3, 1999). The EPA issued definitions for "synthetic based drilling fluid" to encourage the further development of this new technology. EPA is pursuing a presumptive rulemaking process for revision of the offshore effluent guidelines for the use of SBM. This process involves the EPA, industry, and other stakeholders in collecting information needed for the Rulemaking process. EPA (1996) noted several areas where further information or new measurement methods were needed for the revision of the offshore effluent guidelines or NPDES general permit requirements. EPA expressed concern about both the short-term and the long-term seafloor effects of SBM cuttings discharges. The overall objective of this research program is to obtain information about these effects. The proposed program will address the objectives described above. This program should take place during the 1999-2002time frame. The program should incorporate a stepwise approach to the planning and implementation of field operations including: 1) A preliminary scouting survey of a wide range of sites with physical methods such as side-scan sonar to assess the physical extent of cuttings accumulations and to guide further sampling operations. 2) A screening survey sampling activity to (a) assess sediment SBM concentrations and sediment physical-chemical conditions at all visited sites, (b) test and refine field and laboratory methods for use in later sampling activities, and (c) make preliminary biological assessments at selected continental shelf sites. 3) Two definitive sampling activities to fully assess sediment SBM concentrations, measure the zone of biological effects of SBM cuttings discharge at selected continental shelf sites, and address the temporal dependence of physical, chemical and biological effects of SBM cuttings discharge. Task 1: The PROJECT TEAM will collect data about the SBM usage at sites in the Gulf of Mexico, the number of wells that have been drilled, the types of muds that were used, the amount of material discharged, and the time interval since the last cuttings discharge. The PROJECT TEAM will use this information to compile an initial list of candidate sites. The contractor will participate in final discussions concerning platform selection during the initial phases of the study. The contractor will assist in the final selection process by participating in discussions relating to the logistical implications of various site selection scenarios and by providing technical input regarding the appropriateness of particular locations for the goals of this study. This will include their knowledge of the oceanographic conditions, sediment types, and biological communities in the area. The patterns of SBM use and the recent decline in Gulf of Mexico drilling activity will constrain the choice of platforms for sampling and the type of discharge scenarios that can be addressed in this study. Changes in drilling plans could confound efforts to study sites over a period of time. For example, a decision to drill additional wells could invalidate an assumption that discharges will have stopped at a given site. The relatively long lead times needed to contract for marine survey vessels and personnel makes it impractical to plan to closely control the time between sampling and the last discharge of SBM cuttings. The PROJECT TEAM will approach the issue of site selection through a process of collection and analysis of data on the water depth, location, and discharge history of sites where SBM cuttings have been discharged in the Gulf of Mexico. Sites will be selected for sampling based on the likelihood that information about sediment conditions at those sites would best facilitate achieving the overall technical objectives of this program. The PROJECT TEAM will coordinate with platform operators to obtain historical discharge data and permission to conduct sampling operations near their platform. The PROJECT TEAM will obtain seafloor pipeline maps for each platform in the study to minimize the possibility of interference when taking bottom samples. Detailed data on the materials discharged from a subset of the platforms visited during cruises 1 and 2 will be collected by the PROJECT TEAM and used to select platforms for the final sampling programs. This data will be used to identify sites whose sampling will best support the overall objectives of this program. Task 2. The contractor will prepare a Sampling and Analysis Plan (SAP) for each cruise. SAPs will be provided to the PROJECT TEAM for review and approval 6 weeks prior to the departure of each cruise. The contractor will also prepare a Quality Assurance Project Plan that documents all quality assurance and quality control procedures and practices to be used during this program. Contractor should consult EPA (1993) for guidance in the preparation of the Quality Assurance Project Plan. The program will have a QA/QC coordinator who will have overall responsibility for QA/QC matters for the contractor and for all subcontractors. Standard Operating Procedures (SOPs) will be prepared for all technical procedures used in this in this study. SOPs should reference published methods where applicable and should document all steps used in each procedure in enough detail that a trained and experienced operator could repeat the measurement procedure. Measurement of SBM base fluid concentration in sediment in the presence of native organic material and crude oil will be among the procedures for which SOPs will be needed. The SOP should outline the methods to be used for measuring SBM base fluid concentration. This will also include an approach for establishing calibration standards for determining concentrations of the synthetics, all of which are expected to be either simple alkyl esters (approximate carbon number range of 12-24), simple olefins (linear or internal with a carbon number range of 14-22), or poly alphaolefins (carbon number range of 20-30). Ester based systems, or blends incorporating them, have been used in some cases. SOPs should address collection, handling, stabilization and storage of samples that are to be used for SBM base fluid concentration. SOPs for grain size distribution of sediment samples should be included. Changes in grain size distribution can be an indication of the presence of cuttings in sediment samples. Since drill cuttings often hydrate and break down to fine clay and silt particles with time, it is often necessary to use analytical methods to determine if cuttings presence/absence in the sediment samples. As an alternative or additional program component, bidders may suggest methods other than grain size for determining the presence or absence of cuttings in sediments. For example, bidders could consider arranging for visual inspection by experienced petroleum geologists (e.g., mud loggers) to identify cuttings particles. Mineralogical determination and or metal ratios should also be considered as approaches for determining the difference between natural marine sediments and cuttings resulting from drilling discharges. SOPs for handling sediment samples in the field should provide for recording observations of sediment properties as they are collected. It is essential that the procedures be in place to document presence of black solids in sediments or the detection of the odor of hydrogen sulfide as these are important qualitative manifestations of elevated organic matter content and potential anoxia in sediments. This information should be recorded in a way that facilitates later comparison with quantitative measurements of SBM base fluid concentration in the same samples. It is essential that the sampling programs for this study be based on a sound statistical design. For this reason, bidders should consider making a statistical expert experienced in designing and interpreting environmental monitoring programs part of the project team. A Statistical Plan will be prepared to document the approach to collection and analysis of data throughout this study. Proposals should recommend a detailed sampling and analysis approach that will delineate the potentially impacted area in the vicinity of the drilling discharge site. Due consideration should be given to the natural variability and patchiness common to the Gulf of Mexico sediments. Wherever appropriate, bidders should describe sampling designs in terms of statistically testable hypotheses. Proposals should describe planned statistical approaches, including consideration of the numbers of replicates needed for grab samples, statistical approach to the QA/QC analytical program, and all statistical analyses for data interpretation. Task 3. The study design will include a scouting survey for collection of physical survey data to assess the extent of SBM cuttings accumulations at 12 platforms on the continental shelf during late summer or early fall of 1999 (or spring of 2000). The platforms will be evenly divided between the 100-300 m depth range and the 300-500 m depth range. The information derived from these surveys will be used (1) to refine the choice of platforms for Task 4 and (2) to test the cost effectiveness of using a small, dedicated vessel for physical surveys to guide sediment sampling on later cruises. Proposals should specify the physical survey method or methods to be used. The recommended methods should be able to detect changes in sediment texture or topography due to the accumulation of cuttings. Task 4. A Screening Cruise will be conducted to: 1) Collect samples for physical and chemical measurements of sediment conditions at all sites. 2) Identify and resolve problems related to methods or site-specific sampling issues. 3) Collect preliminary biological samples at shelf sites. 4) Collect physical survey or video observations of sediment conditions at deepwater sites. The Screening Cruise will be conducted in the fall of 1999 (or spring of 2000), approximately one month after the results of the Scouting Survey are available. The Screening Cruise will visit 10 platforms: 7 shelf locations (fromamong the 12 visited in the Scouting Survey) divided between the 100-300 m and the 300-500 depth ranges, and 3 locations in the >500-1500 m depth range. The results of the screening cruise will be used to: 1) Test and refine field procedures and analytical techniques for use on later cruises. 2) Develop biological sampling program for later comprehensive studies at shelf sites. On-site inspections of potential sampling locations often reveal previously unknown conditions that need to be considered for effective sampling design or that might even cause a platform to be removed from further consideration as a study site. The initial application of sampling techniques often reveals practical problems that must be solved to avoid compromising the technical objectives of the study. Chemical and physical measurements on sediment samples will reveal the level of variability in sediment conditions. This information will be needed to support the statistical design of later sampling operations. Preliminary collection of sediment samples for biological analysis will assist in the design of more comprehensive biological analysis programs to be conducted in later cruises. Proposals should address solutions to the problems posed by deepwater retrieval of bottom samples over a relatively small area while maintaining certainty as to the exact location where samples were collected. The use of Remotely Operated Vehicles (ROVs) is one possible solution to this problem. Most deepwater platforms have dedicated ROVs onboard that could be used for sampling within a distance of 100-125 m of the platform. For stations located at greater distances from selected platforms, a separate ROV will have to be deployed from a surface ship. Advantages of the use of ROVs for this type of sampling are: 1) capability for knowing exact location of samples, 2) ability to photo-document areas sampled. Alternate sampling methods may also be recommended. The physical and chemical measurements of sediment conditions will be made on samples collected near the discharge site and at more distant reference sites. Physical and chemical measurements should provide information that helps delineate the extent of SBM cuttings accumulation on the seabed. The contractors will have to document, via redox potential measurements or other means, natural anoxia in sediments and determine if the presence of SBM cuttings influences the depth of the RPD layer or creates additional anoxic layers in the sediment. Analytes to be measured in sediments include SBM content, grain size distribution, mineralogy, barium, TOC, total petroleum hydrocarbons, and redox potential. The Screening Cruise will include preliminary sampling to support the design of a comprehensive biological sampling program. The objective of the biological sampling program is to determine the extent of the zone of biological effect from the discharge of SBM cuttings. Comprehensive biological sampling will be conducted during the subsequent sampling cruises in Spring 2000 and Spring 2001 (or alternatively fall of 2000 and 2001). Biological sampling will be conducted at selected continental shelf sites. The sites will include some platforms that will be visited during both the Spring 2000 and the Spring 2001 sampling cruises so that changes in the benthic community with time can be documented along with changes in SBM concentrations in sediments. Bidders are challenged with the task of developing a reasonable, statistically based, and cost-effective approach that will allow the determination of SBM effects, versus general cuttings impacts and natural variability differences. Biological sampling will be restricted to shelf locations because of the difficulties of deepwater sampling and the more well-developed base of background information for interpreting the biological effects of discharges on shelf benthic species. The classical benthic survey approach of having a large number of stations, on radial patterns, with, e.g., three grabs per station, have consistently shown that it is at best difficult to attribute changes to a specific source. Bidders will be challenged to recommend different approaches that will be able to discern SBM cause and effect. Potential bidders should clearly define their statistical capabilities for conducting the proposed program. It will be imperative that all approaches to be used in this program be based on obtaining an adequate number of samples to statistically describe the natural variability of benthic communities outside the influence of the discharging platform (and any other discharge sources). The design should include appropriate sample numbers and spatial distribution so that variations in sediment type and benthic community differences will be accounted for. Preliminary data from the Screening Cruise should allow appropriate statistical analyses so that final sample size and replicates can be determined. Biological qualifications for conduct of this program require that the bidders team include individuals who have a clear understanding of Gulf of Mexico benthic communities, and a demonstrated experience in the conduct and interpretation of such results. Most importantly, they will have to have the ability to design a sampling program that will allow them to distinguish the zone of biological influence due to the SBM cuttings discharges. Task 5. Sediment toxicity testing. Sediment samples taken from benthic locations corresponding with the in situ benthic community studies will be collected, stored, and shipped to shore for laboratory Posted 07/09/99 (W-SN352436). (0190)

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