[Federal Register: March 29, 2001 (Volume 66, Number 61)]
[Notices]
[Page 17164-17165]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr29mr01-60]
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DEPARTMENT OF ENERGY
National Energy Technology Laboratory
Improved Recovery From Low-Permeability Formations
AGENCY: National Energy Technology Laboratory (NETL), 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-PS26-01NT41121 entitled ``Improved
Recovery from Low-Permeability Formations''. The objective of this
solicitation is to demonstrate existing technologies and methodologies,
or improve and demonstrate technologies with strong near-term
commercialization potential, for increasing production from low-
permeability ``tight'' gas formations. Demonstration of existing
technologies should be relatively new to a basin or play.
An Information Package is available on the NETL's Homepage at
http://www.netl.doe.gov/business for viewing and downloading. The
Information Package contains general information regarding the proposed
solicitation.
DATES: The solicitation will be available on the DOE/NETL's Internet
address at http://www.netl.doe.gov/business on or about April 6, 2001.
Prospective applicants are invited to E-mail any comments and/or
questions associated with the information presented to Dona Sheehan via
the Internet at sheehan@netl.doe.gov by COB on March 30, 2001 as a
draft version of the solicitation will not be issued.
FOR FURTHER INFORMATION CONTACT: Dona G. Sheehan, U.S. Department of
Energy, National Energy Technology Laboratory, P.O. Box 10940, MS 921-
107, Pittsburgh, PA 15236-0940, E-mail Address: sheehan@netl.doe.gov,
Telephone Number: 412/386-5918.
SUPPLEMENTARY INFORMATION: As new discoveries from conventional
supplies decline, future supplies of natural gas will have to come
increasingly from low-permeability (tight) reservoirs. The National
Petroleum Council's (NPC) 1992 natural gas study concluded that 232 Tcf
of gas could be technically recoverable from low-permeability
formations, and assuming that technology improvements continued, the
NPC estimated that 349 Tcf of gas could be produced. In their most
recent study (1999), the NPC states that deeper resources, resources in
deeper water, and nonconventional resources will be the key to future
supply. However, under current limitations in exploration and
production technology, only a small portion of this vast resource is
economic to develop.
A significant portion of natural gas resources in low-permeability
formations are found in deep reservoirs and in large gross intervals
(over thousands of feet) with many potential pay zones. In addition,
most low-permeability wells are marginally productive because an
extensive, well-
[[Page 17165]]
connected natural fracture network is the exception, rather than the
rule. These factors indicate that improved recovery technology and
reduced costs associated with completion will increase recovery from
this vital resource.
Although the high ultimate recovery from wells associated with
large natural fractures systems are the exception, these wells can
produce 5-10 Bcf. However, these wells often have problems associated
with high water production because the natural fracture system connects
to overlying or underlying water zones or because they are associated
with a fault(s) that provides a pathway for large water influx.
Applications will be accepted for research and development (R&D) in
two major areas: (1) Improved completion technology; and (2)
identification/remediation of high water production problems from
basin-centered gas plays. Priority basins and plays in which the R&D
shall be conducted will be identified from previous United States
Geological Survey, NPC and NETL studies, but will more than likely
include: Greater Green River, Wind River, Anadarko, Permian, San Juan,
Piceance, Uinta, Arkla-E.Texas.
Increasing reserves per well with better completion technology or
reducing the cost to complete a well will vastly improve the recovery
from marginally economic wells. Applications for improved completions
can include (but will not be limited to): Cementing, downhole
separation/reinjection, stimulation techniques, e.g., comparable
fluids, composite fracturing plugs/baffles, and zonal isolation,
improved identification of most productive intervals, tubulars
(CO2/H2S), multi-lateral horizontal wells, and
multiple stimulations from a horizontal well. By identifying the
sources and mechanisms of high water production, industry can avoid
these areas or complete the reservoir in a way that reduces or
eliminates excessive water production. Applications for identification
of high water production problems from basin-centered gas plays can
include): Regional hydrologic study, water sampling and analysis, new/
improved geophysical well log processing, and improved downhole fluid
identification.
DOE anticipates issuing financial assistance (Cooperative
Agreement) awards. DOE reserves the right to support or not support,
with or without discussions, any or all applications received in whole
or in part, and to determine how many awards will be made. Multiple
awards are anticipated. Approximately $2 million of DOE funding is
planned over a 3 year period for this solicitation. National
Laboratories may participate as team members; however, they may not act
as the prime awardee and total funding to the Laboratory must not
exceed 10% of the total project cost. If a project which includes
National Laboratory participation is approved for funding, DOE intends
to make an award to the applicant for its portion of the effort and to
provide direct funding for the National Laboratories portion of the
effort as a Field Work Proposal (FWP). DOE has determined that a
minimum cost share of 20 percent of the total project cost is required
for this solicitation. Details of the cost sharing requirement and the
specific funding levels will be contained in the solicitation. The
anticipated period of performance of the projects will range in
duration from 24 months to 36 months.
Prospective applicants who would like to be notified as soon as the
solicitation is available should register at http://www.netl.doe.gov/
business. Provide your E-mail address and click on the ``Oil & Gas''
technology choice located under the heading ``Fossil Energy.'' 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 March 7, 2001.
Dale A. Siciliano,
Deputy Director, Acquisition and Assistance Division.
[FR Doc. 01-7748 Filed 3-28-01; 8:45 am]
BILLING CODE 6450-01-P