RRC Unveils New Well Plugging Solicitation Process
The Railroad Commission of Texas (RRC) has been appropriated $14.4 million for its Well Plugging Program for Fiscal Year 2017. To ensure the most efficient and effective use of the funds to plug orphan wells in Texas, the RRC has in place an improved solicitation process.
The RRC now uses a Request for Proposal system to accept solicitations for well plugging contracts. This process requires a vendor seeking to contract with the RRC for well plugging services to complete and submit a well plugging solicitation packet for each Oil & Gas Division district in which they wish to perform work. This process replaces the previous system in which contractors bid for specific packages of orphan wells to plug.
Each solicitation packet will be evaluated by RRC staff from the Procurement & Contract Management department, Field Operations department and Oil & Gas Division district offices to ensure it complies with all state and RRC contracting requirements. Solicitations will also be evaluated on contractor qualifications and financial terms. The RRC reserves the right through this process to negotiate all rates submitted in the solicitation, including but not limited to labor, material or equipment costs.
Once awarded, a well plugging contract will remain valid for the duration of the Fiscal Year (September 1 – August 31) in which it is issued. The contract will be eligible for renewal, annually for up to three years following its initial year of implementation. Terms of the contract may be renegotiated at any time.
For information on current bid opportunities, visit the RRC website.