TITLE 44: GOVERNMENT CONTRACTS, GRANTMAKING,
PROCUREMENT AND PROPERTY MANAGEMENT
SUBTITLE B: SUPPLEMENTAL PROCUREMENT RULES CHAPTER VIII: DEPARTMENT OF NATURAL RESOURCES
PART 610
PLUGGING AND RESTORATION CONTRACTS
SECTION 610.100 DEFINITIONS
Section 610.100 Definitions
"Bid List" – means the list of prequalified
bidders compiled and maintained by the Illinois Department of Natural
Resources, Office of Mines and Minerals.
"CMS" – means the Illinois Department of Central
Management Services.
"CMS Standard Procurement Rules" – means the
standard procurement rules of the Illinois Department of Central Management
Services as codified under 44 Ill. Adm. Code 1.
"Department" – means the Illinois Department of
Natural Resources, Office of Mines and Minerals.
"Emergency Clean-up Project" – means an emergency
crude oil production facility, or crude oil or saltwater spill clean-up or
remediation of conditions endangering public health or safety or contaminating
surface waters, ground water, or the surface of the land.
"Emergency Repair Work" – means work to repair or
contain leaks of produced fluids from production equipment, pits, or other
containment structures that are contaminating surface waters or ground waters,
or are flowing in sufficient quantity to create an increasing area of
contamination on the surface of the land.
"Emergency Well Plugging" – means the plugging and
abandonment of a well or wells that are actively flowing oil or saltwater and
are contaminating surface waters or ground waters or are flowing in sufficient
quantity to create an increasing area of contamination on the surface of the
land, or a well leaking natural gas or hydrogen sulfide gas in sufficient
quantity to endanger public safety or create a fire hazard or a non-leaking
well that poses an imminent danger to public safety.
"IFB" – means an invitation for bids whereby the
Department solicits bids from vendors for the completion of a Standard,
Emergency Clean-up, Emergency Repair, or Emergency Well Plugging PRF Project or
salvage equipment sale. Bids may be solicited for proposed unit prices, such as
for bags of cement and rig time, or for completion of an entire project, or for
purchase of salvage production equipment determined to be abandoned in
accordance with the Illinois Oil and Gas Act.
"PRF" – means the Department's Plugging and
Restoration Fund as established under Section 6 of the Illinois Oil and Gas Act
[725 ILCS 225].
"PRF Project" – means a Standard Project, Emergency
Clean-up Project, Emergency Well Plugging, Emergency Repair Work or Salvage
Plugging Project funded by the Plugging and Restoration Fund.
"Salvage Plugging and Restoration Project" – means
a Plugging and Restoration Project whereby abandoned wells are plugged or well
site equipment removed and the site cleaned up for the value of the salvage.
"Salvage Equipment Sale" – means sale, by private
means or bid, of salvage production equipment associated with abandoned wells
in the Plugging and Restoration Program.
"Secretary of State" – means the Secretary of State
of the State of Illinois.
"Standard Plugging and Restoration Project" – means
a PRF Project that has been determined by the Department to not be an Emergency
Project whereby abandoned wells are plugged following a bidding process.
"Supervisor" – means the Supervisor of the Oil and
Gas Division of the Department of Natural Resources, Office of Mines and
Minerals.
"Well Site Equipment" – means the equipment
including but not limited to an associated tank battery and production facility
equipment, hydrocarbons from the well that are stored in tanks located on the
lease, and hydrocarbons recovered during the plugging operation may be sold at
a public auction or a public or private sale. All well site equipment and
hydrocarbons acquired by a person by sale shall be acquired under clear title,
subject to any perfected prior legal or equitable claims. [225 ILCS
725/19.6(g)(2)]
(Source: Amended at 23 Ill. Reg. 3421, effective March 8, 1999)
 | TITLE 44: GOVERNMENT CONTRACTS, GRANTMAKING,
PROCUREMENT AND PROPERTY MANAGEMENT
SUBTITLE B: SUPPLEMENTAL PROCUREMENT RULES CHAPTER VIII: DEPARTMENT OF NATURAL RESOURCES
PART 610
PLUGGING AND RESTORATION CONTRACTS
SECTION 610.110 INCORPORATION OF RULES
Section 610.110
Incorporation of rules
The Department hereby adopts
the CMS Standard Procurement Rules. Inasmuch as the rules of this Part may
differ, however, the rules of this Part shall govern.
 | TITLE 44: GOVERNMENT CONTRACTS, GRANTMAKING,
PROCUREMENT AND PROPERTY MANAGEMENT
SUBTITLE B: SUPPLEMENTAL PROCUREMENT RULES CHAPTER VIII: DEPARTMENT OF NATURAL RESOURCES
PART 610
PLUGGING AND RESTORATION CONTRACTS
SECTION 610.120 PREQUALIFICATION OF BIDDERS
Section 610.120
Prequalification of Bidders
a) The Department shall maintain a list of prequalified bidders
for Standard Emergency and Salvage Plugging contracts. A vendor on the bid
list shall be presumed to be a responsible bidder.
b) Any vendor not on the bid list may be determined to be a
responsible bidder for a particular project if at the time of contract award
the vendor meets the criteria for prequalification set out under this Section,
including having submitted a complete request for placement on the bid list as
provided herein.
c) Any vendor may request at any time to be prequalified and
placed on the bid list by completing a request on a form prescribed by the
Department and signing the written request. If the vendor is a business
entity, such as a corporation, the request must be signed by a person
authorized to enter into contracts on behalf of that entity.
d) The request shall contain the following information:
1) A summary of the vendor's plugging and restoration experience,
including a description of the five most recent plugging and restoration
projects the vendor has performed and the names and addresses of the persons or
entities for whom the vendor performed such work. If the vendor has not
performed five such projects, then the vendor shall so state.
2) All plugging and restoration equipment the vendor owns. If
the vendor does not own all the equipment that may be generally needed on a
plugging and restoration project the vendor must state from whom and under what
arrangement, e.g. by lease, the vendor shall obtain the necessary equipment.
3) The location of the vendor's home office, from which all
applicable mileage is to be calculated.
4) Certifications as required by Illinois law for any contract
with the State of Illinois.
5) If a business entity, the vendor shall also identify the
principal owners and officers of the vendor and the nature of the vendor's
organization, for instance whether it is incorporated. If the vendor is a
corporation the vendor must identify the state in which it is incorporated, if
incorporated in Illinois whether it is presently in good standing with the
Secretary of State's office, and if incorporated in another state whether it is
currently authorized to do business in Illinois.
6) The vendor's Federal Taxpayer Identification Number.
7) Whether there is currently a Director's Decision of the
Department outstanding against the vendor, under which the vendor is currently
in violation of any law or regulation administered by the Department, and if so
what violations and the date on which the violations shall be abated.
e) Upon receipt of a request for inclusion on the Department's
bid list the Department shall review the request to determine whether the
vendor is responsible. The Department may require the vendor submit additional
information the Department may need to knowledgeably make the determination of
responsibility under subsection (f) of this Section.
f) The Department shall determine that a vendor is responsible if
the vendor has submitted a complete request in compliance with this Subpart and
based on the information contained in the request, any additional information
supplied by the vendor, and the records of the Department, the Department finds
that the vendor:
1) Has adequate experience to properly perform plugging and
restoration work. A vendor shall be presumed adequately experienced if it has
successfully performed plugging and restoration projects on at least five
wells.
2) Has adequate equipment available to perform plugging and
restoration work. The vendor must own at a minimum a rig sufficient to set
cement as required by the Department to properly plug wells, set bridge plugs,
and shoot and pull casing. The Department may inspect the equipment of the
vendor to determine the adequacy of the equipment.
3) Has access to, either through lease or ownership, adequate
equipment, in addition to a rig, to perform plugging and restoration work.
4) Does not have outstanding against it a Director's Decision,
under which the vendor is currently in violation of any law or regulation
administered by the Department, or is owned or operated by individuals who are
so in violation, such that the vendor would be prohibited from receiving a
permit from the Department.
5) If an Illinois corporation, is currently in good standing with
the Secretary of State's office, and if a foreign corporation is currently
authorized to do business in the State of Illinois.
6) Certifies it can, and will, comply with all applicable State
laws and regulations.
g) If any information supplied by the vendor on its request form
materially changes such that the information is no longer true, the vendor
shall immediately report such change to the Department.
h) A vendor may be removed from the bid list if:
1) The vendor fails to adequately perform the work required under
any PRF Project. The Department shall make its determination under this
subsection on the basis of the quality and timeliness of the work, and the
compliance with the directives from the Department's site manager in performing
any PRF project.
2) The vendor no longer meets the requirements for being placed
on the bid list.
3) The vendor fails to inform the Department of a material change
in the information supplied in the request.
4) Any statement of the vendor on the request is discovered to be
false.
(Source: Amended at 23 Ill. Reg. 3421, effective March 8, 1999)
SUBPART B: STANDARD PROJECTS
 | TITLE 44: GOVERNMENT CONTRACTS, GRANTMAKING,
PROCUREMENT AND PROPERTY MANAGEMENT
SUBTITLE B: SUPPLEMENTAL PROCUREMENT RULES CHAPTER VIII: DEPARTMENT OF NATURAL RESOURCES
PART 610
PLUGGING AND RESTORATION CONTRACTS
SECTION 610.200 APPLICABILITY
Section 610.200
Applicability
The rules of this Subpart apply
to Standard Projects.
 | TITLE 44: GOVERNMENT CONTRACTS, GRANTMAKING,
PROCUREMENT AND PROPERTY MANAGEMENT
SUBTITLE B: SUPPLEMENTAL PROCUREMENT RULES CHAPTER VIII: DEPARTMENT OF NATURAL RESOURCES
PART 610
PLUGGING AND RESTORATION CONTRACTS
SECTION 610.210 SCOPE
Section 610.210 Scope
A Standard PRF Project may
include one or more particular wells to be plugged and sites to be restored; a
single leasehold on which all wells are to be plugged, well sites to be
restored and lease site to be restored; or several lease sites on which all wells
are to be plugged, well and lease sites to be restored.
(Source: Amended at 23 Ill. Reg. 3421, effective March 8, 1999)
 | TITLE 44: GOVERNMENT CONTRACTS, GRANTMAKING,
PROCUREMENT AND PROPERTY MANAGEMENT
SUBTITLE B: SUPPLEMENTAL PROCUREMENT RULES CHAPTER VIII: DEPARTMENT OF NATURAL RESOURCES
PART 610
PLUGGING AND RESTORATION CONTRACTS
SECTION 610.220 WORK TO BE PERFORMED
Section 610.220 Work to be
performed
The Department shall have
the discretion to determine what plugging and restoration work shall be
done under any particular project and may reserve the authority to modify
the work to be performed during the course of the project.
 | TITLE 44: GOVERNMENT CONTRACTS, GRANTMAKING,
PROCUREMENT AND PROPERTY MANAGEMENT
SUBTITLE B: SUPPLEMENTAL PROCUREMENT RULES CHAPTER VIII: DEPARTMENT OF NATURAL RESOURCES
PART 610
PLUGGING AND RESTORATION CONTRACTS
SECTION 610.230 INVITATION FOR BIDS
Section 610.230 Invitation
for Bids
Based on the nature of the particular
project, the information available regarding the wells to be plugged, and all other
relevant criteria, the Department may in its discretion seek bids on a
particular project either on the basis of a single price for completion of
the entire project or on the basis of itemized prices for the various services
and equipment necessary for completion of the project, or both.
 | TITLE 44: GOVERNMENT CONTRACTS, GRANTMAKING,
PROCUREMENT AND PROPERTY MANAGEMENT
SUBTITLE B: SUPPLEMENTAL PROCUREMENT RULES CHAPTER VIII: DEPARTMENT OF NATURAL RESOURCES
PART 610
PLUGGING AND RESTORATION CONTRACTS
SECTION 610.240 NOTIFICATION OF VENDORS
Section 610.240 Notification
of Vendors
Vendors currently on the
Department's prequalified bid list shall receive a copy of the IFB. The
Department shall also notify the public by posting a notice in the state
newspaper as provided in the Department of Central Management Services standard
procurement rules. Any vendor, whether or not on the bid list, may upon
specific request by the vendor receive a copy of a particular IFB.
 | TITLE 44: GOVERNMENT CONTRACTS, GRANTMAKING,
PROCUREMENT AND PROPERTY MANAGEMENT
SUBTITLE B: SUPPLEMENTAL PROCUREMENT RULES CHAPTER VIII: DEPARTMENT OF NATURAL RESOURCES
PART 610
PLUGGING AND RESTORATION CONTRACTS
SECTION 610.250 CONTENT OF THE INVITATION FOR BIDS
Section 610.250 Content of
the Invitation for Bids
The IFB shall contain the
following information:
a) The location of the wells to be plugged.
b) The work to be performed at each well and lease site.
c) The manner in which a vendor must make its bid or proposal.
d) The date, time and place where the bids or proposals are
to be opened.
e) Whether the vendor must itemize unit prices.
f) The terms that the Department intends to incorporate
into the ultimate contract for completion of the project, including any
insurance and performance bond requirements.
 | TITLE 44: GOVERNMENT CONTRACTS, GRANTMAKING,
PROCUREMENT AND PROPERTY MANAGEMENT
SUBTITLE B: SUPPLEMENTAL PROCUREMENT RULES CHAPTER VIII: DEPARTMENT OF NATURAL RESOURCES
PART 610
PLUGGING AND RESTORATION CONTRACTS
SECTION 610.260 EVALUATION OF BIDS
Section 610.260 Evaluation
of Bids
Bids shall be evaluated on the
basis either of the price bid for the entire project or the unit prices,
whichever is applicable. Where proposed unit prices are solicited, such as
for bags of cement and hours of rig time, the Department shall evaluate each
bid on the basis of the anticipated number of units to complete a given
well plugging and lease site restoration in determining which proposal
offers the lowest expected price. The responsible vendor proposing the lowest
expected price shall be determined as offering the best responsible proposal.
 | TITLE 44: GOVERNMENT CONTRACTS, GRANTMAKING,
PROCUREMENT AND PROPERTY MANAGEMENT
SUBTITLE B: SUPPLEMENTAL PROCUREMENT RULES CHAPTER VIII: DEPARTMENT OF NATURAL RESOURCES
PART 610
PLUGGING AND RESTORATION CONTRACTS
SECTION 610.270 NEGOTIATION
Section 610.270 Negotiation
After determining the best bid
the Department shall attempt to negotiate a contract with the vendor making
such bid. Where the Department is unable to satisfactorily negotiate a
contract with the vendor offering the best bid the Department may attempt to
negotiate a contract with the vendor offering the next best bid.
 | TITLE 44: GOVERNMENT CONTRACTS, GRANTMAKING,
PROCUREMENT AND PROPERTY MANAGEMENT
SUBTITLE B: SUPPLEMENTAL PROCUREMENT RULES CHAPTER VIII: DEPARTMENT OF NATURAL RESOURCES
PART 610
PLUGGING AND RESTORATION CONTRACTS
SECTION 610.280 CONTRACT TERMS
Section 610.280 Contract
terms
The contract shall be explicitly
made in compliance with all applicable State laws and rules, including the CMS
standard procurement rules not superceded by these rules, and shall contain
provisions required by such laws and rules and any additional terms to which
the parties have agreed.
SUBPART C: EMERGENCY PLUGGING AND RESTORATION PROJECTS
 | TITLE 44: GOVERNMENT CONTRACTS, GRANTMAKING,
PROCUREMENT AND PROPERTY MANAGEMENT
SUBTITLE B: SUPPLEMENTAL PROCUREMENT RULES CHAPTER VIII: DEPARTMENT OF NATURAL RESOURCES
PART 610
PLUGGING AND RESTORATION CONTRACTS
SECTION 610.300 APPLICABILITY
Section 610.300
Applicability
This Subpart applies to
Emergency Clean-up Projects, Emergency Repair Work and Emergency Well Plugging
Projects.
(Source: Amended at 23 Ill. Reg. 3421, effective March 8, 1999)
 | TITLE 44: GOVERNMENT CONTRACTS, GRANTMAKING,
PROCUREMENT AND PROPERTY MANAGEMENT
SUBTITLE B: SUPPLEMENTAL PROCUREMENT RULES CHAPTER VIII: DEPARTMENT OF NATURAL RESOURCES
PART 610
PLUGGING AND RESTORATION CONTRACTS
SECTION 610.310 SCOPE
Section 610.310 Scope
An emergency project may include
the clean-up or remediation of conditions occurring at crude oil production
facilities endangering public health or safety or contaminating surface or
ground waters or the surface of the land; repair work to contain leaking
produced fluid from wells, tanks, pits, or containment dikes; or plugging of
leaking wells endangering the environment or public health and safety.
(Source: Amended at 23 Ill. Reg. 3421, effective March 8, 1999)
 | TITLE 44: GOVERNMENT CONTRACTS, GRANTMAKING,
PROCUREMENT AND PROPERTY MANAGEMENT
SUBTITLE B: SUPPLEMENTAL PROCUREMENT RULES CHAPTER VIII: DEPARTMENT OF NATURAL RESOURCES
PART 610
PLUGGING AND RESTORATION CONTRACTS
SECTION 610.320 WORK TO BE PERFORMED
Section 610.320 Work to be
performed
The Department shall have the
discretion to determine what Clean-up, Repair Work or plugging and restoration
work shall be done under any particular project covered by this Subpart and may
reserve the authority to modify the work to be performed during the course of
the project.
(Source: Amended at 23 Ill. Reg. 3421, effective March 8, 1999)
 | TITLE 44: GOVERNMENT CONTRACTS, GRANTMAKING,
PROCUREMENT AND PROPERTY MANAGEMENT
SUBTITLE B: SUPPLEMENTAL PROCUREMENT RULES CHAPTER VIII: DEPARTMENT OF NATURAL RESOURCES
PART 610
PLUGGING AND RESTORATION CONTRACTS
SECTION 610.330 CONTRACTS FOR INDIVIDUAL EMERGENCY PROJECTS
Section 610.330 Contracts
for Individual Emergency Projects
a) If the Department has not established a regional
contract under Section 605.340 of this Part to cover the region wherein a
particular emergency project is located, then the Department may award
a contract for that emergency project pursuant to the requirements of this
Section.
b) The Department may obtain a contract for an individual
emergency project by direct negotiation. For such contracts the Department may
restrict negotiations to a vendor on the bid list that has its home office
in the county where the project is to be located, or where there are no
such vendors to the vendor whose home office is located in a county nearest to
the county where the project is to be located.
c) Where the Department is unable to negotiate a satisfactory
contract with the nearest vendor as determined under subsection (b) above the
Department may choose to negotiate a contract directly with the next nearest
vendor on the bid list.
d) The provisions of this Section are not intended to
limit the Department's authority to choose to solicit competitive bids
or proposals from all vendors on the bid list where the exigencies of the
emergency allow.
 | TITLE 44: GOVERNMENT CONTRACTS, GRANTMAKING,
PROCUREMENT AND PROPERTY MANAGEMENT
SUBTITLE B: SUPPLEMENTAL PROCUREMENT RULES CHAPTER VIII: DEPARTMENT OF NATURAL RESOURCES
PART 610
PLUGGING AND RESTORATION CONTRACTS
SECTION 610.340 REGIONAL CONTRACTS
Section 610.340 Regional
Contracts
a) The Department may award a contract for all emergency
projects arising within a particular geographical region and within a
particular period of time. Such regional contracts shall be bid out by means
of an IFB submitted to all vendors on the bid list.
b) After determining the best proposal the Department shall
attempt to negotiate a contract with the vendor making such bid.
c) The IFB shall contain the following information:
1) The counties to be covered by the proposed regional contract.
2) The work generally to be performed under each emergency
well plugging project and each emergency remedial work project.
3) The manner in which a vendor must make its proposal.
4) The date, time and place where the proposals are to be opened.
5) The terms that the Department intends to incorporate into
the ultimate contract for completion of the project.
d) Vendors currently on the Department's prequalified bid
list shall receive a copy of the IFB. The Department shall also notify
the public by posting a notice in the state newspaper as provided in the CMS
Standard Procurement Rules. Any vendor, whether or not on the bid list,
may upon specific request receive a copy of a particular IFB.
e) Bids shall be evaluated on the basis either of the price bid
for the entire project or the unit prices, whichever is applicable. Where
proposed unit prices are solicited, such as for bags of cement and hours of
rig time, the Department shall evaluate each bid on the basis of the
anticipated number of units to complete a given well plugging and lease
site restoration in determining which proposal offers the lowest expected
price. The responsible vendor proposing the lowest expected price shall be
determined as offering the best responsible proposal.
f) After determining the best proposal the Department shall
attempt to negotiate a contract with the vendor making such proposal.
 | TITLE 44: GOVERNMENT CONTRACTS, GRANTMAKING,
PROCUREMENT AND PROPERTY MANAGEMENT
SUBTITLE B: SUPPLEMENTAL PROCUREMENT RULES CHAPTER VIII: DEPARTMENT OF NATURAL RESOURCES
PART 610
PLUGGING AND RESTORATION CONTRACTS
SECTION 610.350 CONTRACT TERMS
Section 610.350 Contract
terms
The contract shall be explicitly
made in compliance with all applicable state laws and rules, including the CMS
Standard Procurement Rules not superceded by these rules, and shall contain
provisions required by such laws and rules and any additional terms to which
the parties have agreed.
SUBPART D: SALVAGE PLUGGING AND RESTORATION PROJECTS
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PROCUREMENT AND PROPERTY MANAGEMENT
SUBTITLE B: SUPPLEMENTAL PROCUREMENT RULES CHAPTER VIII: DEPARTMENT OF NATURAL RESOURCES
PART 610
PLUGGING AND RESTORATION CONTRACTS
SECTION 610.400 APPLICABILITY
Section 610.400
Applicability
This Subpart applies to Plugging
and Restoration Program projects where the cost of plugging a well or wells or
the clean-up of the well site is offset by the salvage value of the well site
equipment.
(Source: Added at 23 Ill. Reg. 3421, effective March 8, 1999)
 | TITLE 44: GOVERNMENT CONTRACTS, GRANTMAKING,
PROCUREMENT AND PROPERTY MANAGEMENT
SUBTITLE B: SUPPLEMENTAL PROCUREMENT RULES CHAPTER VIII: DEPARTMENT OF NATURAL RESOURCES
PART 610
PLUGGING AND RESTORATION CONTRACTS
SECTION 610.410 SCOPE
Section 610.410 Scope
A Salvage Plugging or
Restoration Project may include one or more particular wells to be plugged and
well sites to be restored; a single leasehold on which all wells are to be
plugged, well sites to be restored and lease site to be restored; or several lease
sites on which all wells are to be plugged and well and lease sites to be
restored.
(Source: Added at 23 Ill. Reg. 3421, effective March 8, 1999)
 | TITLE 44: GOVERNMENT CONTRACTS, GRANTMAKING,
PROCUREMENT AND PROPERTY MANAGEMENT
SUBTITLE B: SUPPLEMENTAL PROCUREMENT RULES CHAPTER VIII: DEPARTMENT OF NATURAL RESOURCES
PART 610
PLUGGING AND RESTORATION CONTRACTS
SECTION 610.420 WORK TO BE PERFORMED
Section 610.420 Work to be
performed
The Department shall have the
discretion to determine what plugging and restoration work shall be done under
any particular project and may reserve the authority to modify the work to be
performed during the course of the project.
(Source: Added at 23 Ill. Reg. 3421, effective March 8, 1999)
 | TITLE 44: GOVERNMENT CONTRACTS, GRANTMAKING,
PROCUREMENT AND PROPERTY MANAGEMENT
SUBTITLE B: SUPPLEMENTAL PROCUREMENT RULES CHAPTER VIII: DEPARTMENT OF NATURAL RESOURCES
PART 610
PLUGGING AND RESTORATION CONTRACTS
SECTION 610.430 CONTRACTS AND SALVAGE ESTIMATES
Section 610.430 Contracts
and Salvage Estimates
a) Based on the nature of the Salvage Plugging or Restoration
Project, the information available regarding the wells to be plugged or well
site equipment to be removed, the estimated value of the salvage production
equipment, and all other relevant criteria, the Department may enter into a no
cost contract to plug a well or group of wells on a lease or part of a unit on
the basis of the total cost to plug the well or wells or to remove the well
site equipment and clean up the well site to be offset by the value of the
salvage production equipment. The Department will transfer control of the
abandoned salvage equipment at the time a contract is signed.
b) The estimated salvage value of the well site equipment shall
be determined by the Department but shall not be less than the following:
|
1)
|
Pumping unit
|
$100 each
|
|
2)
|
Steel tank
|
$75 each
|
|
3)
|
Fiberglass
|
$100 each
|
|
4)
|
Gunbarrel
|
$50 each
|
|
5)
|
Heater treater
|
$75 each
|
|
6)
|
Injection pump
|
$100 each
|
|
7)
|
Reusable shed/outbuildings
|
$1 per square foot
|
|
8)
|
Salable hydrocarbons per
barrel price at time of sale
|
(Source: Added at 23 Ill. Reg. 3421, effective March 8, 1999)
 | TITLE 44: GOVERNMENT CONTRACTS, GRANTMAKING,
PROCUREMENT AND PROPERTY MANAGEMENT
SUBTITLE B: SUPPLEMENTAL PROCUREMENT RULES CHAPTER VIII: DEPARTMENT OF NATURAL RESOURCES
PART 610
PLUGGING AND RESTORATION CONTRACTS
SECTION 610.440 ELIGIBLE VENDORS
Section 610.440 Eligible
Vendors
In contracts involving the
plugging of wells, only vendors currently on the Department's prequalified bid
list are eligible for contracts under this Subpart.
(Source: Added at 23 Ill. Reg. 3421, effective March 8, 1999)
 | TITLE 44: GOVERNMENT CONTRACTS, GRANTMAKING,
PROCUREMENT AND PROPERTY MANAGEMENT
SUBTITLE B: SUPPLEMENTAL PROCUREMENT RULES CHAPTER VIII: DEPARTMENT OF NATURAL RESOURCES
PART 610
PLUGGING AND RESTORATION CONTRACTS
SECTION 610.450 CONTRACT TERMS
Section 610.450 Contract
terms
The contract shall be explicitly
made in compliance with all applicable State laws and rules, including the CMS
property disposition rules not superseded by this Part, and shall contain
provisions required by such laws and rules and any additional terms to which
the parties have agreed.
(Source: Added at 23 Ill. Reg. 3421, effective March 8, 1999)
SUBPART E: SALE OF SALVAGE EQUIPMENT
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PROCUREMENT AND PROPERTY MANAGEMENT
SUBTITLE B: SUPPLEMENTAL PROCUREMENT RULES CHAPTER VIII: DEPARTMENT OF NATURAL RESOURCES
PART 610
PLUGGING AND RESTORATION CONTRACTS
SECTION 610.500 APPLICABILITY
Section 610.500
Applicability
This Subpart applies to the sale
of abandoned well site equipment. The proceeds of any sale shall be deposited
in the Plugging and Restoration Fund.
(Source: Added at 23 Ill. Reg. 3421, effective March 8, 1999)
 | TITLE 44: GOVERNMENT CONTRACTS, GRANTMAKING,
PROCUREMENT AND PROPERTY MANAGEMENT
SUBTITLE B: SUPPLEMENTAL PROCUREMENT RULES CHAPTER VIII: DEPARTMENT OF NATURAL RESOURCES
PART 610
PLUGGING AND RESTORATION CONTRACTS
SECTION 610.510 SCOPE
Section 610.510 Scope
The sale of abandoned equipment
to interested parties may be by private sale, if less than $2500 per individual
item of production equipment, or by bid if over $2500 per individual item of
production equipment.
(Source: Added at 23 Ill. Reg. 3421, effective March 8, 1999)
 | TITLE 44: GOVERNMENT CONTRACTS, GRANTMAKING,
PROCUREMENT AND PROPERTY MANAGEMENT
SUBTITLE B: SUPPLEMENTAL PROCUREMENT RULES CHAPTER VIII: DEPARTMENT OF NATURAL RESOURCES
PART 610
PLUGGING AND RESTORATION CONTRACTS
SECTION 610.520 EQUIPMENT TO BE SOLD
Section 610.520 Equipment to
be sold
Abandoned well site production
equipment associated with wells in the Plugging and Restoration Program are
eligible under Section 19.6 of the Illinois Oil and Gas Act to be sold through
private or public bid sale. The Department shall have the discretion to
determine which items of equipment are eligible for sale.
(Source: Added at 23 Ill. Reg. 3421, effective March 8, 1999)
 | TITLE 44: GOVERNMENT CONTRACTS, GRANTMAKING,
PROCUREMENT AND PROPERTY MANAGEMENT
SUBTITLE B: SUPPLEMENTAL PROCUREMENT RULES CHAPTER VIII: DEPARTMENT OF NATURAL RESOURCES
PART 610
PLUGGING AND RESTORATION CONTRACTS
SECTION 610.530 PRIVATE SALE
Section 610.530 Private sale
If the estimated salvage values,
as determined by the Department, of the abandoned production equipment are less
than $2500 per individual item of production equipment, the Department may sell
and transfer control of the equipment to any interested party. Payment under
term of a private sale shall be by cashier's check or money order payable to
the Plugging and Restoration Fund.
(Source: Added at 23 Ill. Reg. 3421, effective March 8, 1999)
 | TITLE 44: GOVERNMENT CONTRACTS, GRANTMAKING,
PROCUREMENT AND PROPERTY MANAGEMENT
SUBTITLE B: SUPPLEMENTAL PROCUREMENT RULES CHAPTER VIII: DEPARTMENT OF NATURAL RESOURCES
PART 610
PLUGGING AND RESTORATION CONTRACTS
SECTION 610.540 BID SALE
Section 610.540 Bid sale
a) If the estimated salvage value, as determined by the
Department, of the abandoned production equipment is greater than $2500 per
individual item of production equipment, the Department shall sell such
equipment by means of a bid sale.
b) Vendors currently on the Department's prequalified bid list
shall receive a copy of the IFB. The Department shall also notify the public
by posting a notice in the State newspaper as provided in the Department of
Central Management Services Standard Procurement Rules (44 Ill. Adm. Code 1).
Any vendor, whether or not on the bid list, may, upon specific request by the
vendor, receive a copy of a particular IFB.
c) The IFB shall contain the location and description of the
individual well site production equipment and, if applicable, a minimum
acceptable bid amount.
d) Bids shall be evaluated on the basis of the highest amount bid
on the equipment.
e) After determining the best bid the Department shall negotiate
a sale agreement with the vendor making such bid. Where the Department is
unable to satisfactorily negotiate a sale agreement with the vendor offering
the best bid, the Department may attempt to negotiate a sale agreement with the
vendor offering the next best bid.
f) Payment shall be made by cashier's check or money order
payable to the Plugging and Restoration Fund.
(Source: Added at 23 Ill. Reg. 3421, effective March 8, 1999)
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