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27 August 2008
[Federal Register: August 27, 2008 (Volume 73, Number 167)]
[Notices]
[Page 50603-50605]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr27au08-27]
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DEPARTMENT OF ENERGY
Ultra-Deepwater and Unconventional Natural Gas and Other
Petroleum Resources Research and Development Program 2008 Annual Plan
AGENCY: Office of Fossil Energy, Department of Energy (DOE).
ACTION: Notice of Report Availability.
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SUMMARY: The Office of Fossil Energy announces the availability of the
2008 Annual Plan for the Ultra-Deepwater and Unconventional Natural Gas
and Other Petroleum Resources Research and Development Program on the
DOE Web site at http://management.energy.gov/FOIA/1480.htm or in print
form (see ``CONTACT'' below). The 2008 Annual Plan is in compliance
with the Energy Policy Act of 2005, Subtitle J, Section 999B(e)(3)
which requires the publication of this plan and all written comments in
the Federal Register.
FOR FURTHER INFORMATION CONTACT: Elena Melchert, U.S. Department of
Energy, Office of Oil and Natural Gas, Mail Stop FE-30, 1000
Independence Avenue, SW., Washington, DC 20585 or phone: 202-586-5600
or e-mail to UltraDeepwater@hq.doe.gov.
SUPPLEMENTARY INFORMATION:
Executive Summary [excerpted from the 2008 Annual Plan p.3 ]
This document is the 2008 Annual Plan for the Ultra-Deepwater and
Unconventional Natural Gas and Other Petroleum Resources Research and
Development Program (Program), established pursuant to Subtitle J,
Sections 999A through 999H, of the Energy Policy Act of 2005 (EPAct).
The Department of Energy (DOE) contracted with a consortium
(Consortium) to administer three program elements, as identified in
EPAct, pursuant to an annual plan. The three program elements
administered by the Consortium include: ultra-deepwater architecture
and technology, unconventional natural gas and other petroleum
resources exploration and production technology, and technology
challenges of small producers.
A fourth program element identified in EPAct for complementary
research is
[[Page 50604]]
being performed by the National Energy Technology Laboratory (NETL).
NETL is also tasked with primary review and oversight of the
Consortium.
In 2006, NETL awarded a contract to the Research Partnership to
Secure Energy for America (RPSEA) to function as the Consortium. NETL
worked closely with RPSEA in the development of its first Draft Annual
Plan (DAP), which framed the Consortium's goals for the first two years
of the program. RPSEA gathered extensive input through industry
workshops, road mapping sessions, and expert opinion to develop its
first DAP, and identified priority areas for the investment of $32
million per year on Consortium awarded research and development (R&D).
Pursuant to Section 999B(e)(2)(A) of EPAct, the Consortium provided
its recommendations for the 2008 Annual Plan in the form of a ``draft
annual plan''. These recommendations were the basis for the Draft 2008
Annual Plan which was presented to the Ultra-Deepwater Advisory
Committee (UDAC) and the Unconventional Resources Technology Advisory
Committee (URTAC) for review and comments. These comments were
considered in the final development of the 2008 Annual Plan.
In order to accommodate a Section 999B(e)(3) requirement to publish
all written comments, the Advisory Committee reports are appended to
the 2008 Annual Plan. No other written comments were received.
The first solicitations under the Consortium Program were released
in mid-October 2007, with proposals received in early December 2007 for
a Small Producer Program and an Unconventional Natural Gas and Other
Petroleum Resource Program. Additional solicitations were released in
November 2007, December 2007, and February 2008.
In the 2008 Annual Plan, the Ultra-Deepwater Program Element is
divided into theme areas based on four generic field types that
represent the most challenging field development scenarios facing
deepwater operators. In 2008, the Consortium will solicit R&D projects
that seek to develop technologies that will facilitate development of
these field types. Additionally, there are eight crosscutting
challenges that represent the areas where new technologies are needed
to advance the pace of ultra-deepwater development for all fields. The
Consortium will also solicit projects that seek to advance technologies
in each of these areas as components of an integrated system. Seventeen
projects were selected for award from thirteen UDW RFPs. The selected
projects are listed in Table 2.5.
The Unconventional Natural Gas and Other Petroleum Resource Program
Element is divided into three theme areas that target gas shales, water
management for both coalbed methane and gas shales, and tight sands. As
in the 2007 Annual Plan, the 2008 Annual Plan focuses on unconventional
natural gas rather than ``other petroleum resources'' (e.g. , shale
oil, oil sands, deep gas). This focus on natural gas resources is
consistent with a recommendation of the Unconventional Resources
Technology Advisory Committee. Unconventional oil resources may become
an additional focus of Consortium R&D in the future; however, they are
currently being addressed within NETL's R&D portfolio. To date,
nineteen projects have been selected for award under the Unconventional
Resources Program. The selected projects are listed in Table 2.9.
The Small Producers Program Element targets advancing technologies
for mature fields, which primarily covers the technology challenges of
managing water production, improving recovery, and reducing costs.
Mature fields are the domain of small producers, and they face
challenges in these three areas on a daily basis. To date, seven
projects have been selected for award under the Small Producers
Program. The selected projects mentioned above are listed in Table
2.11.
For each of the program elements, a number of ``themes'' have been
developed to help guide the Consortium through the solicitation
process. These themes and the prioritization process are described in
greater detail in Sections 2.1, 2.2, and 2.3 of the 2008 Annual Plan.
The solicitation process that is being followed to generate the
portfolio of R&D projects to address these themes is described in
Section 2.4.
Frequent communication between NETL and RPSEA ensures that research
being conducted at the NETL remains complementary and supportive of the
Consortium-administered program elements, and that duplication of
effort is avoided. The technical committee established pursuant to
EPAct 2005 Section 999H(d)(4) to further ensure that the R&D efforts
remain complementary, conducted its first assessment on June 11, 2008
and determined that the complementary R&D program being carried out by
NETL was not duplicative of the consortium-based program and is in fact
complementary in nature.
The 2008 Annual Plan focuses primarily upon the release of
solicitations and the establishment of R&D projects. The R&D projects
selected to date are expected to be awarded beginning in May 2008, with
all awards anticipated completed by September 2008. Technology transfer
is also a key focus for 2008 as it is an important aspect of successful
R&D and will be carried out in a manner such that R&D results are
disseminated to the widest possible audience.
Technology transfer for this program is a continually evolving
function. Section 999C(d) of EPAct 2005 requires that 2.5% of the
amount of each award is to be designated for technology transfer. The
funds will target technology transfer at both the project and the
program level. Expenditures of these funds will initially be proposed
by the awardees.
RPSEA and the awardees will then coordinate to develop an
appropriate approach which fulfills both the project and program
technology transfer requirements. In the broader context, NETL and
RPSEA are continuing to coordinate in the development of a technology
transfer plan that provides a systematic approach for development of an
integrated technology transfer program with the understanding that this
will be a continually evolving function.
Section 999 H (a) of EPAct provides that the Ultra-Deepwater and
Unconventional Natural Gas and Other Petroleum Research Fund will be
funded at $50-million-per-year, with funds generated from Federal lease
royalties, rents, and bonuses paid by oil and gas companies. The
Consortium receives 75 percent of those funds. After allocations for
program management by NETL and R&D administration by RPSEA, the amounts
to be invested in Consortium R&D total $32.06 million per year.
Under the Stage/Gate approach, described below in Section 2.5, all
projects will be fully funded to the completion of the appropriate
decision point identified in each contract, which may include multiple
stages. If a decision is made to move to the next stage or decision
point or to gather additional data, additional funding will be provided
from available funds.
The NETL Strategic Center for Natural Gas and Oil is responsible
for primary review and oversight of the Consortium. Complementary R&D
is being carried out by NETL's Office of Research and Development.
Planning and analysis related to the program, including benefits
assessment and technology impacts analysis, is being carried out by
[[Page 50605]]
NETL's Office of Systems, Analysis, and Planning.
Section 999F of EPAct contains a general sunset provision for
Subtitle J of September 30, 2014.
Dated: August 7, 2008.
Guido DeHoratiis,
Acting Deputy Assistant Secretary, Office of Oil and Natural Gas,
Office of Fossil Energy.
[FR Doc. E8-19846 Filed 8-26-08; 8:45 am]
BILLING CODE 6450-01-P