DE-AC26-07NT42677

Goal
The goal is to maximize the value of indigenous U.S. natural gas and other petroleum resources with a focus on near-to-mid-term results. Priority resources to be addressed include ultra-deepwater natural gas and onshore unconventional natural gas (tight gas sands, gas shales, and coalbed methane), which have been identified by the National Petroleum Council (NPC) and others as strategic areas for future natural gas supplies. The program will increase the supply of these resources through implementation of a research program to reduce recovery cost and increase the efficiency of exploration and production (E&P) while improving safety and minimizing environmental impacts. An additional goal is to provide small producers with the tools to develop natural gas and other petroleum resources and the knowledge base to effectively increase production and resource recovery.

Performer
Research Partnership to Secure Energy for America (RPSEA), Sugar Land, TX 77478

Background
In August 2005, President Bush signed the Energy Policy Act (EPAct) into law; the first national energy plan in more than a decade. EPAct Sections 965, 968, and 999 all support oil and gas R&D. The first two of these sections relate to programs that DOE’s Office of Fossil Energy and the National Energy Technology Laboratory (NETL) are already implementing. Section 999, however, adds a new dimension to the overall DOE oil and gas R&D effort, enhancing opportunities to demonstrate technologies in the field and accelerate their implementation in the marketplace.

The Ultra-Deepwater and Unconventional Natural Gas and Other Petroleum Resources Program launched by Section 999 is a public/private partnership designed to increase America’s domestic oil and gas supply and reduce dependency on imports. A portion of the funding is to be directed towards cost-shared research partnerships, while another portion is to be used by NETL to carry out complementary R&D.

Section 999 sets the funding for this program at a level of $50-million-per-year over 10 years, provided from Federal lease royalties, rents, and bonuses paid by oil and gas companies. The funds are to be directed towards research specifically targeting four areas: ultra-deepwater resources (35%), unconventional natural gas and other petroleum resources (32.5%), technology challenges of small producers (7.5%), and fundamental research complementary to these areas (25%). The complementary research is to be performed by NETL, while all other research is to be administered by the consortium overseen by NETL. Each year, RPSEA will develop and submit to DOE a draft Annual Plan which DOE will use to develop the DOE Annual Plan for Section 999.

Accomplishments
The 2007 Annual Plan for the Ultra-Deepwater and Unconventional Natural Gas & Other Petroleum Resources Program was submitted in June 2007, reviewed and commented on by two Federal Advisory Committees in July 2007, approved in August 2007 , submitted to Congress and published in the Federal Register. The funds for the program were released to DOE, in August 2007.

In the fall of 2007, RPSEA released a total of 15 solicitations based upon the 2007 Annual Plan. A total of 43 projects were selected for award under the 15 solicitations. Seven projects were selected for award under the Small Producers Program and 19 were selected for the Unconventional Resources Program. A list of these projects can be found on the RPSEA website [external site]. A total of 13 solicitations were released under the Ultra-Deepwater Program and 17 projects were selected for award. Information regarding the selected projects can be found on the RPSEA website.

In January 2008, the 2008 Annual Plan for the Ultra-Deepwater and Unconventional Natural Gas & Other Petroleum Resources Program was submitted to be reviewed and commented on by the two Federal Advisory Committees. The 2008 Annual Plan was approved, submitted to Congress and published in the Federal Register in August 2008. The funds for the program were then released to DOE, and RPSEA released solicitations based upon the approved Annual Plan.

In November 2008, RPSEA released a solicitations the Unconventional Resources Program and one for the Small Producers Program based upon the 2008 Annual Plan. Six projects were selected for award under the Small Producers Program and 9 were selected for the Unconventional Resources Program. A list of these projects can be found on the RPSEA website [external site]. In December 2008 and January 2009, a total of 11 solicitations were released under the Ultra-Deepwater Program and 14 projects are anticipated to be selected for award. Information regarding the selected projects can be found on the RPSEA website.

In August 2008, the 2009 Annual Plan for the Ultra-Deepwater and Unconventional Natural Gas & Other Petroleum Resources Program was submitted to be reviewed and commented on by the two Federal Advisory Committees. The 2009 Annual Plan was approved, submitted to Congress and published in the Federal Register in January 2009. The funds for the program were then released to DOE.

In July 2009, RPSEA submitted their 2010 draft Annual Plan to DOE. It has been included in the 2010 Annual Plan for the Ultra-Deepwater and Unconventional Natural Gas & Other Petroleum Resources Program, which was submitted to the two Federal Advisory Committees in Agust 2009.

RPSEA has also submitted a draft Management Plan, a draft Solicitation Process, and a draft High-Level Metrics Plan to DOE/NETL for review.

Current Status (August 2009)
The 2009 solicitations are currently being prepared and areanticipated to be released in late August 2009, with selections made in late Fall/early Winter 2009.. The selections will be posted on the RPSEA website upon approval by DOE. The technical areas for these solicitation can be found in the 2009 Annual Plan. For the Unconventional Resources Program, RPSEA will strive to fill in the gaps of the program as a result of the projects selected from the 2007 and 2008 solicitations. It is anticipated that the solicitations will be released in the July-August timeframe and will be open for a minimum of 60 days. Additional information on RPSEA and the upcoming solicitations can be found on the RPSEA website.

Project Start: January 4, 2007
Project End: January 3, 2017

DOE Contribution: $356,250,000 (over ten years)
Performer Contribution: $87,615,348 (based on minimum 20% cost share for R&D)

Contact Information
NETL – Gary Covatch (gary.covatch@netl.doe.gov or 304-285-4589)
RPSEA – Mike Ming (mming@rpsea.org or 281-313-9555)

Additional information:
2007 Annual Plan [PDF]

2008 Annual Plan [PDF]

2009 Annual Plan [PDF]