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ATTACHMENT Q:PLUGGING AND ABANDONMENT PLAN <br /> • Documentation and agency coordination—Coordinating with regulators to notify them <br /> if grouting observation is required;and providing written documentation to the <br /> appropriate state,federal, and local agencies that the well abandonment was conducted <br /> according to the appropriate regulations. <br /> Table Q-1 provides the estimated costs for performing these services if conducted in 2008. A <br /> 30 percent contingency is added to the cost estimate to cover unexpected occurrences during <br /> the well abandonment.Situations that could increase estimated costs are unexpected <br /> downhole conditions,excessive cement curing time, additional cement migrating into the <br /> perforated interval, and increasing the amount of cement used or fluid disposal costs. The <br /> costs provided in Table Q-1 are expected to increase over time. <br /> Appendix 11 includes the 2005 cost estimate obtained by NCPA from Halliburton for <br /> cementing services,including a revised cost estimate. Halliburton s approach is still valid, <br /> but it indicated that cement costs have increased by at least 15 percent. Other costs have <br /> been obtained from reliable vendors providing these industry services. <br /> Plugging and abandoning each well is estimated to be$104,800. Costs in Table Q-1 are on a <br /> per-well basis,assuming each well is done at different times,requiring separate <br /> mobilization. Cost savings could be realized if multiple wells are abandoned at the same <br /> time. <br /> TABLE Q-1 <br /> Estimated 2008 Costs for Plugging and Abandoning STIG-LEC Facility Injection Wells <br /> Item Quantity Unit Unit Price Cost <br /> Mobilization/Demobilization 1 Lump sum $15,000 $15,000 <br /> Well Preparation 1 Day $7,500 $7,500 <br /> Remove Tubing and Packer 1 Lump sum $1,000 $1,000 <br /> Circulate Fluids 1 Lump sum $1,000 $1,000 <br /> Well Cementing (Rig Time) 1 Day $7,500 $7,500 <br /> Cement Cost— Injection Zone Plug 190 Cubic feet $75 $14,250 <br /> Cement Cost—Surface Plug 190 Cubic feet $75 $14,250 <br /> Site Restoration 1 Lump sum $5,000 $5,000 <br /> Subtotal $65,500 <br /> Engineering, Documentation 30 percent $19,650 <br /> Contingency 30 percent $19,650 <br /> Total $104,800 <br /> SAC/371322/082560023(ATTACH MENT-Q.DOC) Q-3 <br />