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March 2004 TERMS OF REFERENCE For supply of equipment and services for extraction and utilisation of Coal Bed Methane (CBM) at Moonidih and Sudamdih mines in the State of Jharkand, India PACKAGE 1 : BEAM BASED LONG HOLE DRILL UNIT 1 GENERAL INFORMATION AND BIDDING REQUIREMENTS The Terms of Reference (TOR) shall be used for the preparation of bids for supply of one or more packages of equipment and related services at the above named coal mine sites in India. It identifies and specifies the basic scope of supply for each package and the obligations and responsibilities of the Equipment manufacturer (s) supplier(s). UNIDO is acting on behalf of the Government of India (GOI) and the United Nations Development Programme (UNDP) and the Global Environment Facility (GEF) in managing international supply aspects of this project. It is essentially a capacity building project to introduce, through demonstration advanced techniques of gas resource assessment and recovery and utilisation methods relevant to Indian conditions. The offers should contain: Detailed description of every major item of equipment. Technical data and expected performance of every major item. Cost breakdown itemising all major equipment, services, and management fee. Details of how safety aspects will be incorporated into both equipment and on-site services. All relevant layouts and drawings. Clear indications of which package(s) are being bid for and indications of options selected within each package as appropriate. Items not included in the scope of supply requested here but which are recommended by bidders should be explicitly listed and shown as line items in the cost breakdown. All deviations from the TOR should be clearly indicated and explained in the offer.
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Page 1: DRAFT - IAPSO · Web viewMarch 2004 TERMS OF REFERENCE For supply of equipment and services for extraction and utilisation of Coal Bed Methane (CBM) at Moonidih and Sudamdih mines

March 2004TERMS OF REFERENCE

For supply of equipment and services for extraction and utilisation of Coal Bed Methane (CBM) at Moonidih and Sudamdih mines in the State of Jharkand, India

PACKAGE 1 : BEAM BASED LONG HOLE DRILL UNIT

1 GENERAL INFORMATION AND BIDDING REQUIREMENTS

The Terms of Reference (TOR) shall be used for the preparation of bids for supply of one or more packages of equipment and related services at the above named coal mine sites in India. It identifies and specifies the basic scope of supply for each package and the obligations and responsibilities of the Equipment manufacturer (s) supplier(s).

UNIDO is acting on behalf of the Government of India (GOI) and the United Nations Development Programme (UNDP) and the Global Environment Facility (GEF) in managing international supply aspects of this project. It is essentially a capacity building project to introduce, through demonstration advanced techniques of gas resource assessment and recovery and utilisation methods relevant to Indian conditions.

The offers should contain:

Detailed description of every major item of equipment. Technical data and expected performance of every major item. Cost breakdown itemising all major equipment, services, and management fee. Details of how safety aspects will be incorporated into both equipment and on-site services. All relevant layouts and drawings. Clear indications of which package(s) are being bid for and indications of options selected

within each package as appropriate. Items not included in the scope of supply requested here but which are recommended by

bidders should be explicitly listed and shown as line items in the cost breakdown.

All deviations from the TOR should be clearly indicated and explained in the offer.

In view of the complexity of the project bidders are recommended to visit the project site for familiarisation purposes. The costs of such visits must be borne by the bidder. Arrangements can be made through the office of the National Project Adviser in New Delhi. He is Mr N N Gautam and can be contacted by telephone (+91 11 237 22 428) or by e-mail at [email protected]

2 BACKGROUND

2.1 Methane as a Greenhouse gas and coal’s contribution to emissions

Efforts are being made worldwide to control the emission of greenhouse gases and to reduce the pressures for accelerated climate change. Methane is a powerful greenhouse gas, with an impact approximately 20 times more severe than carbon dioxide. It is also a clean burning fuel,

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producing no SO2 or particulates and only about half of the CO2 associated with coal combustion for a given energy output. Hence, capture and utilisation is both beneficial to the global environment and it constitutes rational use of energy. Technologies are now available to recover the trapped methane from coal-beds prior to mining through drilling of bore holes. This provides further benefits in terms of enhanced underground mine safety and better productivity due to reduced downtime in gassy mines, thereby giving improved mine economics and employment protection.

India is the third largest coal producer in the world and has substantial coal reserves It produced about 304 million tonnes in 1999-2000. Open cast production accounts for 75% of the total output and the remaining 25% is from underground. The share of the underground output in the total production is expected to remain at the current level through to 2010 even as the coal production increases. The average depth of the underground mines is 150-200 m with a seam thickness of 2-3 m. On an average, 75% of Indian coals are not highly gassy. However, the underground coal reserves of the eastern coal belt are generally highly gassy. The coal seams of the region primarily possess superior grade coal: prime and medium coking, and some semi and weakly coking coal. Coal mining activity in this region has been and will continue to be a major industry, maintaining a dominant share in the coal sector of the country, given the demand for superior grade coal. The region has a high concentration of industrial units (steel plants, chemical, ceramic, and glass industry, all of which demand high temperature long flame coal found in the region), and high population density. Consequently, extraction of coal has been a major contributor to methane emissions to the atmosphere. If efficiently recovered, coal bed methane associated with coal reserves could be a significant potential source of energy both in the region and for the country.

2.2 Project objectives and strategy

The project concept is to effectively capture methane in working coal mines from:

The mined out areas that contain and potentially emit methane to active workings by vertical wells drilled from the surface, known as gob holes

The coal face being mined via deep inseam drilling of long holes in coal and in strata above and below and,

In the coal reserves by drilling surface bore holes ahead of the coal face being mined.

The project strategy is to overcome both the technological and institutional barriers by:1. Strengthening and increasing the capacity of The Coal Mine Planning and Design

Institute (CMPDI), the mine owners, who are the Bharat Coking Coal Limited (BCCL), Coal India Limited (CIL), and the Ministry of Coal, to develop and support CBM recovery and use projects.

2. Providing training and experience in the identification, design, and implementation of programmes to recover and use CBM in a safe, cost effective, and environmentally acceptable manner.

3. Creating a Coal bed Methane Clearinghouse to manage data and information related to CBM technology.

4. Preparing and executing drilling programmes at the Moonidih and Sudamdih coal mines and use of the CBM in power generation and possibly as a transport fuel.

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2.3 Site information

Detailed information is best gained through a site visit. However, key information is given below:

The sites are in the leasehold area of Sudamdih and Moonidih Underground coal mines in Jharia coalfields in the District of Dhanbad in the State of Jharkhand of India. The mines are owned by Bharat Coking Coal Limited (A subsidiary of Coal India Limited) with its headquarters at Dhanbad, produced about 28 million tons of coal (1999-2000). Dhanbad and Jharia coalfield is a well developed area. Dhanbad is well connected by rail and road to various important towns including Ranchi, capital of Jharkhand State (at a distance of 180 km. By road) and important metro cities of New Delhi (distance about 1100 km. By rail) and Calcutta (distance about 260 km. By rail). There are fast moving trains to Dhanbad from New Delhi (overnight journey) and from Calcutta (41/2 hours journey). The distance from BCCL Hdqrs., Dhanbad to Moonidih and Sudamdih coal mines is 18 km and 25 km. respectively.

Electric power supply is available at mine site at 11 kV, 3.3 kV, 550 Volts and 200 Volts, 50 Hz.

Land at the work place is generally plain to slightly rolling terrain and well connected by roads. Some temporary approach roads to drilling sites will have to be made.

Dhanbad town besides having headquarters of Bharat Coking Coal Ltd. has also the Central Mining Research Institute, designated Laboratory for the project, which will be involved in various laboratory testing of coal cores. It is also the headquarter of Director General of Mines Safety.

Moonidih underground mine has a large number of coal seams which are being worked by Longwall caving method upto a depth of about 500 m.

Sudamdih underground mine has large number of thick coal seams with steep gradient (250 to 40o) and are being worked with Hydraulic sand stowing by various types of slicing methods. Mine is watery.

Further details and details of drilling locations of the seams in which these bore holes will have to be drilled are given in the details of the concerned drilling package for both the mines.

Mines are located in tropical climate with summer maximum temperatures going up to 42-450C (in May and June). Winter maximum and minimum temperatures range from 25 to 32oC and 8 to 11oC respectively (November to February). The annual rainfall is around 1300 mm, 80% of which occurs in monsoon season (mid-June to mid-October). Storms of mild nature do occur in the pre-summer season, i.e. March-April.

3 DESCRIPTION OF REQUIRED EQUIPMENT AND SERVICES

As indicated in the covering letter inviting tenders, the equipment and services have been divided into several packages. Bidders are invited to submit offers for one or more packages. However, all bidders are recommended to include in their offer commentary on how they would anticipate interfacing with other packages providers wherever it may be necessary to do so.

In various places throughout this section references is made to Indian standards and regulations and safely requirements. Bidders are recommended to acquire and/or consult these when

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preparing their offers. Mr. N. N. Gautam (see page 1 of this TOR) will hold a small library of such documents.

Offers for the package(s) must be complete offers for all items listed in the respective packages. Any incomplete offer for the relevant package(s), will be regarded as non-compliant. In cases where the bidder manufacturers/assembles the principle equipment under any package, but does not himself manufacture certain specific item(s) listed separately in the relevant package, the bidder is expected to supply such item(s), sourcing it(them) from the original manufacturer(s)/supplier(s), after assuring the quality and compatibility of such item(s) within the entire package. (Any deviation from any of the listed items for any package will not be considered unless supported by full technical justifications).

3.1 General Description:

A compact long hole drill unit will be used to directionally drill long horizontal and inclined degasification boreholes in conjunction with a downhole motor (DHM) but also needs to be capable of drilling in a rotary mode.The drilling rig will be used in underground coal mines in India and need to be taken underground in components and assembled at the drill site. The drilling rig will be electric/hydraulic, capable of having intrinsically safe electricity use at the drill site.The drilling rig has to be designed to accommodate 10 feet NQ type drill rods but the chuck should also allow the use of HQ type drill rods of the same length.

3.2 Quantity

One (1) long hole drill unit and power supply

3.3 Electrical System

550 Volts, 50 Hz, equipped with an emergency de-energizing system.

3.4 Hydraulic System

Per manufacturer design. Need ability to use hydraulic and flame resistant fluid.

3.5 Permissibility Requirements

Equipment should be able to meet India permissibility standards. Provisions of India Coal Mines Regulations, 1957 and Indian Electricity Rules, 1956 wil be applied. Normally the equipment has to be flame-proof using 550 volts (50 cycles per second) and/or otherwise intrinsically safe.

3.6 Dimensions for transport

Any component of the machine will not exceed the following:Length: 3 metersWidth: 1.3 metersHeight: 1.3 metersWeigth: 10 tons

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Maximum length following assembly underground will not be greater than 6.5 meters.

3.7 Thrust, Torque and Rotation Speed

Thrust and retraction force should be minimum 180 kN to directionally drill 1,000 meters using NQ rods and a 96 mm diameter borehole.The maximum available Torque should be not less than 2,000 ft.lbs.The maximum available rotation speed of the rigs drill head should be up to approx. 600 rpm.

The drilling rigs design capacities for thrust and retraction force, torque and rotation speed as well as for the water pump must be specified exactly in the bidding document.

3.8 Water Pump

The drilling rig has to be equipped with one (1) water pump minimum capable of delivery of 70 gpm (~270 l/min.) and 1,000 psi (~70 bar) to match the requirements of the downhole motors.

3.9 Methane Detection

Equipped with methane sensor system that will de-energize equipment as per requirements of Indian safety standards.

3.10 Illumination

Equipment should have adequate lighting mounted on it.

3.11 Base Construction

All main components of the drill unit will be mounted on beams. The transport between the sites will be done with the mines transport facilities.

3.12 Lining up of the drilling direction axis

Boreholes will be drilled from a horizontal direction to a maximum range of 60° inclined upwards/downwards from the horizontal plane. The manufacturer should describe his technical solution to allow a change of the drilling angle in the vertical plane without disassembly of the drilling rig and its support frame. It is necessary that the drilling direction remains fixed once a new drilling direction has been chosen. The support frame of the drilling rig should be constructed in a way that it can be moved in the horizontal plain to change the drilling angle horizontally from a center position 25° to the left or to the right when drilling more than one well is required from one location. The drilling crew should be able to make adjustments to of the drilling angle without the disassembly of the rig and its support frame.

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3.13 Grout Pump:

A progressive cavity or plunger type grout pump is used to pump grout to set the stand pipe of approx. 10 meter length. The pump should be operated from the hydraulic system of the drilling rig. Hydraulic access is gained through the "power take-off" (PTO) of the drilling rig.One (1) progressive cavity or plunger type grout pump sized to get an output of approximately 10 litres per minute.

3.14 Spare parts:

The bidder should provide a list of suggested fast moving spares and insurance spares sufficient for an operating period of two years.

3.15 Training:

The successful bidder will provide training for the project personnel regarding operation and maintenance of the procured drilling equipment for a specified period at his facility to be organised by him. The successful bidder will train the project personnel for a period of two weeks during the first rig up and drilling operation at the project site underground. Drilling will be conducted on a 24 hour operation per day to consolidate the experience of the project personnel, gained by the training in the manufacturer’s facility. The drilling rig will be operated in conjunction with the downhole motor and the steering tool.

The successful bidder shall also arrange to provide documented training modules as well as Video and/or C.D. presentations of their equipment for the operation and maintenance, which is normally available with such equipment.

3.16 Performance Demonstration:

The performance demonstration shall be conducted underground at the drill site after complete assemblage of the drilling rig components. It shall be conducted for two weeks during drilling of the first well of the planned drilling program to ensure that all components of the delivered drilling rig are functioning satisfactorily. For the duration of the two weeks test the successful bidder will provide technical and supervisory coverage (for a 24 hour operation per day) to oversee the functionality test. The functionality test shall include drilling a hole of 200 meters in length or more to be achieved in the two week demonstration period.

4 EQUIPMENT MANUFACTURERS/SUPPLIER’S GENERAL RESPONSIBILITIES

4.1 Procedure governing installation of Electrical Equipments in Hazardous Areas.

For Surface Drilling Equipment:

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Electrical Equipments intended to be used in Zone I and Zone 2 Hazardous areas of oil mines are required to be approved by Director General, Mines Safety (DGMS) as per Oil Mines Regulations, 1984 and Indian Electricity Rules, 1956. The following procedure is followed as per Gazette Notification:

Area of Operation Physical location Type of Electrical EquipmentsZone ‘O’ hazardous area Bore-hole only Intrinsically Safe Electrical equipments are

permitted Zone ‘1’ hazardous area Drilling and work over

Recovery wells, gas processing and storage facilities.

(1) Flame proof Equipment – IS 2148-1981(2) Intrinsically Safe Equipment – IS-5780-1986(3) Pressurised Apparatus – IS 7389 (Part I)-1976(4) Sand Filled Apparatus – IS-7724-1975

Zone ‘2’ hazardous Extends 8 mtrs. vertically above and 16 mtrs. horizontally from well head mud tank, mud pump, etc.

(1) Flame Proof – IS-2148-1981(2) Intrinsically Safe Equipment – IS-5780-1980(3) Increased Safety Equipment – IS 6381-1972(4) Pressurised Apparatus – IS=7389 (Part I)-1976(5) Sand Filled Apparatus – IS-7724-1975(6) Oil Immersed Apparatus – IS-7693-1975

From practical consideration, flame-proof and intrinsically safe equipments are generally used in Zone ‘1’ hazardous area and flameproof, intrinsically safe, increased safety and pressurised equipments are used in Zone ‘2’ hazardous areas.

For underground electrical equipments:

Provisions of Coal Mines Regulation, 1957 and Electricity Rules, 1956 will apply. Normally all equipments have to be flame-proof normally using 550 volts (50 cycles per second) and or otherwise intrinsically safe.

Underground Mechanical Components:

(a) Exposed part of any equipment shall not be manufactured by light metal alloy like aluminium, etc. for use in the underground.

(b) HDPE pipes shall be fire-resistant and anti-static.

The prototype of the equipments are required to be tested at any of the following Laboratories:

(i) Central Mining Research Institute, (CMRI) Dhanbad(ii) ERTL, East – Electronics Regional Test Laboratory, Salt Lake, Calcutta(iii) Central Power Research Institute, Bangalore.

One original copy and one certified copy (by the Laboratory) of the test certificate along with a certified copy of the drawing is required to be submitted to DGMS with the format of application signed by the Managing Director/Director of the Company or an official not below the rank of General Manager duly authorised by the Managing Director/Director. If the documents are in order, the field trial permission is granted within three months with validity of one year. After successful field trial, regular approval is granted for three years.

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4.2 Other Responsibilities:

All engineering designs, specifications, technical documentation and other relevant documents should be adapted for use at the nominated sites and copies provided to the project authorities in the English language.

The Equipment manufacturers/supplier is responsible for ensuring that all machines and equipment are new, supplied direct from the manufacturers’ works, are of latest state of the art technology, free of defects.

The Equipment manufacturers/supplier is responsible for the control of all work, services and supplies which are executed by its sub-equipment manufacturer(s)/ supplier(s).

The Equipment manufacturers/supplier is responsible for obtaining relevant safety certificates and issuing of relevant safety documentation and obtain approval from DGMS of (a) all underground equipment under the Indian Coal Mines Regulations, 1957 and Indian Electricity Rules, 1956; (b) for all the equipment used on surface under the Indian Oil Mines Regulations, 1984 (along with Amendment of 1996). The Project authorities shall provide all assistance to the equipment manufacturers/supplier to facilitate obtaining the relevant approvals. No part shipment of the equipment shall be made by the equipment manufacturers /supplier (except for testing and approval of DGMS), till DGMS approval for the relevant components of the equipments both for Surface and Underground has been obtained from DGMS for use in India.

One number Prototype of each variety of electrical component needs to be tested in India for the purpose of DGMS approval.

The Equipment manufacturers/ supplier’s responsibilities are valid up to the expiration of equipment guarantee periods and he is required to rectify defects arising from original design, manufacturing or materials of construction.

Infrastructure requirement of the equipment manufacturers/supplier, like installation area, water requirement, electricity requirement and other office space requirement shall be clearly indicated for the counter part agency to consider and arrange.

Manufacturers/supplier to guarantee supply of all spares for the life of the Project. If equipment becomes obsolete then manufacturers/supplier will hand over the design drawings of all spare parts to the Counter-part agency.

5 TERMS OF GUARANTEES

The terms of mechanical, electrical, performance and safety guarantee for the equipment supplied should be quoted in accordance with international practice and standards. The duration of the guarantee should be at least 12 months from the date of final acceptance of the equipment on site. (Note that final acceptance will take place after installation and commissioning and training of operatives, performance demonstration and issuing of any relevant safety documentation).

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The Equipment manufacturers/supplier shall guarantee that the scope of supply and services is complete and fit for the purpose for which it is intended in line with the requirements laid out in Section 3 above.

6 PROVISIONAL TIME SCHEDULE

The Equipment manufacturers/supplier shall provide a provisional time schedule starting from contract award and covering all foreseen activities such as delivery of all major items of equipment, installation, commissioning, training, performance demonstration, handover, and after sales service and any post contract monitoring.

Any preliminary site work required by the Equipment supplier prior to delivery should be clearly indicated and scheduled.

All documentation related to preliminary site work, delivery and installation should be delivered within sufficient time for the Counterpart to carry out work required of him.

1 PROVISIONAL SERVICES TO BE SUPPLIED BY THE COUNTERPART

Power supply at site – shall be made available by the Project at site. Normal availability of power would be 550/440 volts at 50 cycles. Lighting voltage would be 220 Volts on the surface and 110 Volts in the Underground. 3.3 kV is available at Sudamdih and 6.6 kV would be available at Moonidih mines.

Water – reasonably clean will be provided.

Provide normal tools and tackles and Workshop support.

Facilities required for the purpose of erecting the equipment, and office space will be made available upon request.

8 REPORTING

Progress reports every two months are required based on the work plan/time schedules submitted in the offer. These should be produced through the period from contract award to handover of the equipment at site. They should be brief in the main text, but supported as necessary by documents produced or issued in the course of the work (agreements, drawings, certificates etc).

A draft final report shall be allowed for in the time schedule and submitted to the project authorities for comment. Comments will be provided within 1 month to enable a Final report to be produced.

All formal written or electronic communications between Equipment supplier and Counterpart should be copied to UNIDO.

Any agreement between Equipment supplier and Counterpart must first be cleared by UNIDO before implementation. Failure to do so may abrogate other conditions of contract and result in reduced, delayed or loss of payment.

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9 EQUIPMENT SUPPLIERS PERSONNEL

Key personnel who are expected to come to site are to be specified in the offer and CV’s included

10 LANGUAGE

The working language for the offer and all documentation and communications shall be English.

11 CLARIFICATIONS AND QUERIES

All clarifications and queries related to these Terms of Reference should be addressed only to the UNIDO official listed in the covering letter by fax or by email. Bidders should note that UNIDO reserves the right to publish all questions.

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March 2004

TERMS OF REFERENCE

For supply of equipment and services for extraction and utilisation of Coal Bed Methane (CBM) at Moonidih and Sudamdih mines in the State of Jharkand, India

PACKAGE 3 : DOWNHOLE MOTORS (DHM)

4 GENERAL INFORMATION AND BIDDING REQUIREMENTS

The Terms of Reference (TOR) shall be used for the preparation of bids for supply of one or more packages of equipment and related services at the above named coal mine sites in India. It identifies and specifies the basic scope of supply for each package and the obligations and responsibilities of the Equipment manufacturer (s) supplier(s).

UNIDO is acting on behalf of the Government of India (GOI) and the United Nations Development Programme (UNDP) and the Global Environment Facility (GEF) in managing

international supply aspects of this project. It is essentially a capacity building project to introduce, through demonstration advanced techniques of gas resource assessment and

recovery and utilisation methods relevant to Indian conditions.

The offers should contain:

Detailed description of every major item of equipment. Technical data and expected performance of every major item. Cost breakdown itemising all major equipment, services, and management fee. Details of how safety aspects will be incorporated into both equipment and on-site services. All relevant layouts and drawings. Clear indications of which package(s) are being bid for and indications of options selected

within each package as appropriate. Items not included in the scope of supply requested here but which are recommended by

bidders should be explicitly listed and shown as line items in the cost breakdown.

All deviations from the TOR should be clearly indicated and explained in the offer.

In view of the complexity of the project bidders are recommended to visit the project site for familiarisation purposes. The costs of such visits must be borne by the bidder. Arrangements

can be made through the office of the National Project Adviser in New Delhi. He is Mr N N Gautam and can be contacted by telephone (+91 11 237 22 428) or by e-mail at

[email protected]

5 BACKGROUND

2.1 Methane as a Greenhouse gas and coal’s contribution to emissions

Efforts are being made worldwide to control the emission of greenhouse gases and to reduce the pressures for accelerated climate change. Methane is a powerful greenhouse gas, with an impact approximately 20 times more severe than carbon dioxide. It is also a clean burning fuel, producing no SO2 or particulates and only about half of the CO2 associated with coal combustion

for a given energy output. Hence, capture and utilisation is both beneficial to the global

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environment and it constitutes rational use of energy. Technologies are now available to recover the trapped methane from coal-beds prior to mining through drilling of bore holes. This provides

further benefits in terms of enhanced underground mine safety and better productivity due to reduced downtime in gassy mines, thereby giving improved mine economics and employment

protection.

India is the third largest coal producer in the world and has substantial coal reserves It produced about 304 million tonnes in 1999-2000. Open cast production accounts for 75% of the total

output and the remaining 25% is from underground. The share of the underground output in the total production is expected to remain at the current level through to 2010 even as the coal

production increases. The average depth of the underground mines is 150-200 m with a seam thickness of 2-3 m. On an average, 75% of Indian coals are not highly gassy. However, the

underground coal reserves of the eastern coal belt are generally highly gassy. The coal seams of the region primarily possess superior grade coal: prime and medium coking, and some semi and weakly coking coal. Coal mining activity in this region has been and will continue to be a

major industry, maintaining a dominant share in the coal sector of the country, given the demand for superior grade coal. The region has a high concentration of industrial units (steel plants, chemical, ceramic, and glass industry, all of which demand high temperature long flame coal

found in the region), and high population density. Consequently, extraction of coal has been a major contributor to methane emissions to the atmosphere. If efficiently recovered, coal bed

methane associated with coal reserves could be a significant potential source of energy both in the region and for the country.

2.2 Project objectives and strategy

The project concept is to effectively capture methane in working coal mines from:

The mined out areas that contain and potentially emit methane to active workings by vertical wells drilled from the surface, known as gob holes

The coal face being mined via deep inseam drilling of long holes in coal and in strata above and below and,

In the coal reserves by drilling surface bore holes ahead of the coal face being mined.

The project strategy is to overcome both the technological and institutional barriers by:5. Strengthening and increasing the capacity of The Coal Mine Planning and Design

Institute (CMPDI), the mine owners, who are the Bharat Coking Coal Limited (BCCL), Coal India Limited (CIL), and the Ministry of Coal, to develop and support CBM recovery and use projects.

6. Providing training and experience in the identification, design, and implementation of programmes to recover and use CBM in a safe, cost effective, and environmentally acceptable manner.

7. Creating a Coal bed Methane Clearinghouse to manage data and information related to CBM technology.

8. Preparing and executing drilling programmes at the Moonidih and Sudamdih coal mines and use of the CBM in power generation and possibly as a transport fuel.

5.3 Site information

Detailed information is best gained through a site visit. However, key information is given below:

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The sites are in the leasehold area of Sudamdih and Moonidih Underground coal mines in Jharia coalfields in the District of Dhanbad in the State of Jharkhand of India. The mines are owned by

Bharat Coking Coal Limited (A subsidiary of Coal India Limited) with its headquarters at Dhanbad, produced about 28 million tons of coal (1999-2000). Dhanbad and Jharia coalfield is a well developed area. Dhanbad is well connected by rail and road to various important towns including Ranchi, capital of Jharkhand State (at a distance of 180 km. By road) and important metro cities of New Delhi (distance about 1100 km. By rail) and Calcutta (distance about 260 km. By rail). There are fast moving trains to Dhanbad from New Delhi (overnight journey) and from Calcutta (41/2 hours journey). The distance from BCCL Hdqrs., Dhanbad to Moonidih and

Sudamdih coal mines is 18 km and 25 km. respectively.

Electric power supply is available at mine site at 11 kV, 3.3 kV, 550 Volts and 200 Volts, 50 Hz.

Land at the work place is generally plain to slightly rolling terrain and well connected by roads. Some temporary approach roads to drilling sites will have to be made.

Dhanbad town besides having headquarters of Bharat Coking Coal Ltd. has also the Central Mining Research Institute, designated Laboratory for the project, which will be involved in

various laboratory testing of coal cores. It is also the headquarter of Director General of Mines Safety.

Moonidih underground mine has a large number of coal seams which are being worked by Longwall caving method upto a depth of about 500 m.

Sudamdih underground mine has large number of thick coal seams with steep gradient (250 to 40o) and are being worked with Hydraulic sand stowing by various types of slicing methods.

Mine is watery.

Further details and details of drilling locations of the seams in which these bore holes will have to be drilled are given in the details of the concerned drilling package for both the mines.

Mines are located in tropical climate with summer maximum temperatures going up to 42-450C (in May and June). Winter maximum and minimum temperatures range from 25 to 32oC and 8 to

11oC respectively (November to February). The annual rainfall is around 1300 mm, 80% of which occurs in monsoon season (mid-June to mid-October). Storms of mild nature do occur in

the pre-summer season, i.e. March-April.

6 DESCRIPTION OF REQUIRED EQUIPMENT AND SERVICES

As indicated in the covering letter inviting tenders, the equipment and services have been divided into several packages. Bidders are invited to submit offers for one or more packages.

However, all bidders are recommended to include in their offer commentary on how they would anticipate interfacing with other packages providers wherever it may be necessary to do so.

In various places throughout this section references is made to Indian standards and regulations and safely requirements. Bidders are recommended to acquire and/or consult these when

preparing their offers. Mr. N. N. Gautam (see page 1 of this TOR) will hold a small library of such documents.

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Offers for the package(s) must be complete offers for all items listed in the respective packages. Any incomplete offer for the relevant package(s), will be regarded as non-compliant. In cases where the bidder manufacturers/assembles the principle equipment under any package, but

does not himself manufacture certain specific item(s) listed separately in the relevant package, the bidder is expected to supply such item(s), sourcing it(them) from the original

manufacturer(s)/supplier(s), after assuring the quality and compatibility of such item(s) within the entire package. (Any deviation from any of the listed items for any package will not be

considered unless supported by full technical justifications).

3.1 General Description:

A positive displacement motor (DHM) that uses fluid (water) to generate torque to turn bit for cutting. The DHM will be of 2 7/8” diameter to cut a 96 mm borehole. Bent housings will be integrated on the motor to allow steering.

3.2 Specifications and Quantity:

3.2.1 Bearing Assemblies 2 7/8”

Two (2) Bearing Sections with U-Joint in a Adjustable Bent Housing (0 to 3 degrees or 0 to 4 degrees). The bend angle should be adjustable in intervals of 0.4 degrees.Connection for Bit: NW-Thread, box

Connections to Power Section (Rotor and Stator): to be specified by supplier.

3.2.2 Power Sections 2 7/8” (low speed – high torque)

Power Sections, magnetic: First priority:

Two (2) of the version 5/6, 3.3 Stage Alternative :

Two (2) of the version 5/6, 7.0 Stages Top Connection for all Stators : 2 3/8” API Reg., box up. If a top sub is necessary to provide this thread connection, it should be made of standard (magnetic) material.

The bidders are requested to offer also Power Sections with very similar perfomance data (of the above indicated ones), if they cannot offer exactly the wished ones or for other reasons.

3.2.3 Power Sections 2 7/8” (high speed – low torque)Power Sections, magnetic:

First priority: Two (2) of the version 1/2, 5.2 Stage

Alternative: Two (2) of the version 1/2, 7.0 Stages

Top Connection for all Stators : 2 3/8” API Reg., box up. If a top sub is necessary to provide this thread connection, it should be made of standard (magnetic) material.

The bidders are requested to offer also Power Sections with very similar perfomance data (of the above indicated ones), if they cannot offer exactly the wished ones or for other reasons.

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3.2.4 Aligning Subs (as an option)

The bidder is requested to offer two (2) identical Aligning Subs (as an option) to align high side of Mud Motor with high side of Steering Tool, if not already provided in the system. The subs should be made of standard (magnetic) material and could be used, if the Steering Tool does not have separate or integrated aligning facilities.

3.2.5 Spare PartsThe bidder should provide a list of suggested fast moving spares and insurance spares (for items from 3.2.1 to 3.2.4) sufficient for an operating period of one year.

3.2.6 Service Intervals

The bidder should indicate an estimation for the max. tolerated circulating hours for the Downhole Motors until a service is necessary.

For the estimation the bidder should consider, that fresh water will be used as drilling fluid (not mud) and this water will not be pumped in a closed curcuit.

3.2.7 Motor-Maintenance

The bidder should offer the following with regard to the maintenance of the Downhole Motors:

Motor-Maintenance by the orderer at Project sites by trained Indian personnel.The bidder should describe and offer all necessary tools for the proper maintenance of the Downhole Motors. In addition he should indicate the necessary time needed for a thorough training of 2 Indian mechanics enabling them to execute a proper service further on in the future in India. The bidder should arrange to provide documented training modules as well as Video and/or C.D. presentations of his equipment for the maintenance, which is normally available with such equipmentThe training shall be conducted at the facility of the bidder for a reasonable period of time mutually agreed upon during negotiations The bidder should offer the price for this training.

As an alternative option the bidder should provide motor-maintenance by the bidder at his nearest Service Station.

The bidder indicates the nearest Service Station and offers fee and time requirement (without transport) for one motor-maintenance/ major overhaul activity at his Service Station. He should also indicate the wear parts normally to be replaced during such a maintenance activity.

3.2.8 Operational Training

The key personnel of the drilling crew will be trained by the successful bidder in the correct and effective use of the Downhole Motors for a period of two weeks of the underground drilling oprations.

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The successful bidder shall arrange to provide documented training modules as well as Video and/or C.D. presentations of his equipment for the operation and maintenance, which is normally available with such equipment.

3.3 Performance Demonstration

The performance demonstration shall be conducted on a test stand of the successful bidder, the performance parameters shall be documented and shall be made available. This procedure should ensure that all components of the Downhole Motors to be delivered are functioning satisfactorily. The performance test will be carried out at the drilling site for a total drilling time of 100 hours under the supervision of the supplier’s representative.

4 EQUIPMENT MANUFACTURERS/SUPPLIER’S GENERAL RESPONSIBILITIES

4.1 Procedure governing installation of Electrical Equipments in Hazardous Areas.

For Surface Drilling Equipment:

Electrical Equipments intended to be used in Zone I and Zone 2 Hazardous areas of oil mines are required to be approved by Director General, Mines Safety (DGMS) as per Oil Mines

Regulations, 1984 and Indian Electricity Rules, 1956. The following procedure is followed as per Gazette Notification:

Area of Operation Physical location Type of Electrical EquipmentsZone ‘O’ hazardous

areaBore-hole only Intrinsically Safe Electrical equipments

are permitted Zone ‘1’ hazardous

areaDrilling and work over Recovery wells, gas processing and storage facilities.

(1) Flame proof Equipment – IS 2148-1981(2) Intrinsically Safe Equipment – IS-5780-1986(3) Pressurised Apparatus – IS 7389 (Part I)-1976(4) Sand Filled Apparatus – IS-7724-1975

Zone ‘2’ hazardous Extends 8 mtrs. vertically above and 16 mtrs. horizontally from well head mud tank, mud pump, etc.

(1) Flame Proof – IS-2148-1981(2) Intrinsically Safe Equipment – IS-5780-1980(3) Increased Safety Equipment – IS 6381-1972(4) Pressurised Apparatus – IS=7389 (Part I)-1976(5) Sand Filled Apparatus – IS-7724-1975(6) Oil Immersed Apparatus – IS-7693-1975

From practical consideration, flame-proof and intrinsically safe equipments are generally used in Zone ‘1’ hazardous area and flameproof, intrinsically safe, increased safety and pressurised

equipments are used in Zone ‘2’ hazardous areas.

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For underground electrical equipments:

Provisions of Coal Mines Regulation, 1957 and Electricity Rules, 1956 will apply. Normally all equipments have to be flame-proof normally using 550 volts (50 cycles per second) and or

otherwise intrinsically safe.

Underground Mechanical Components:

(a) Exposed part of any equipment shall not be manufactured by light metal alloy like aluminium, etc. for use in the underground.

(b) HDPE pipes shall be fire-resistant and anti-static.

The prototype of the equipments are required to be tested at any of the following Laboratories:

(iv) Central Mining Research Institute, (CMRI) Dhanbad(v) ERTL, East – Electronics Regional Test Laboratory, Salt Lake, Calcutta(vi) Central Power Research Institute, Bangalore.

One original copy and one certified copy (by the Laboratory) of the test certificate along with a certified copy of the drawing is required to be submitted to DGMS with the format of application

signed by the Managing Director/Director of the Company or an official not below the rank of General Manager duly authorised by the Managing Director/Director. If the documents are in order, the field trial permission is granted within three months with validity of one year. After

successful field trial, regular approval is granted for three years.

4.2 Other Responsibilities:

All engineering designs, specifications, technical documentation and other relevant documents should be adapted for use at the nominated sites and copies provided to the project authorities

in the English language.

The Equipment manufacturers/supplier is responsible for ensuring that all machines and equipment are new, supplied direct from the manufacturers’ works, are of latest state of the art

technology, free of defects.

The Equipment manufacturers/supplier is responsible for the control of all work, services and supplies which are executed by its sub-equipment manufacturer(s)/ supplier(s).

The Equipment manufacturers/supplier is responsible for obtaining relevant safety certificates and issuing of relevant safety documentation and obtain approval from DGMS of (a) all

underground equipment under the Indian Coal Mines Regulations, 1957 and Indian Electricity Rules, 1956; (b) for all the equipment used on surface under the Indian Oil Mines Regulations, 1984 (along with Amendment of 1996). The Project authorities shall provide all assistance to

the equipment manufacturers/supplier to facilitate obtaining the relevant approvals.

No part shipment of the equipment shall be made by the equipment manufacturers /supplier (except for testing and approval of DGMS), till DGMS approval for the relevant components of

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the equipments both for Surface and Underground has been obtained from DGMS for use in India.

One number Prototype of each variety of electrical component needs to be tested in India for the purpose of DGMS approval.

The Equipment manufacturers/ supplier’s responsibilities are valid up to the expiration of equipment guarantee periods and he is required to rectify defects arising from original design,

manufacturing or materials of construction.

Infrastructure requirement of the equipment manufacturers/supplier, like installation area, water requirement, electricity requirement and other office space requirement shall be clearly indicated

for the counter part agency to consider and arrange.

Manufacturers/supplier to guarantee supply of all spares for the life of the Project. If equipment becomes obsolete then manufacturers/supplier will hand over the design drawings of all spare

parts to the Counter-part agency.

5 TERMS OF GUARANTEES

The terms of mechanical, electrical, performance and safety guarantee for the equipment supplied should be quoted in accordance with international practice and standards. The duration

of the guarantee should be at least 12 months from the date of final acceptance of the equipment on site. (Note that final acceptance will take place after installation and

commissioning and training of operatives, performance demonstration and issuing of any relevant safety documentation).

The Equipment manufacturers/supplier shall guarantee that the scope of supply and services is complete and fit for the purpose for which it is intended in line with the requirements laid out in

Section 3 above.

6 PROVISIONAL TIME SCHEDULE

The Equipment manufacturers/supplier shall provide a provisional time schedule starting from contract award and covering all foreseen activities such as delivery of all major items of

equipment, installation, commissioning, training, performance demonstration, handover, and after sales service and any post contract monitoring.

Any preliminary site work required by the Equipment supplier prior to delivery should be clearly indicated and scheduled.

All documentation related to preliminary site work, delivery and installation should be delivered within sufficient time for the Counterpart to carry out work required of him.

7 PROVISIONAL SERVICES TO BE SUPPLIED BY THE COUNTERPART

Power supply at site – shall be made available by the Project at site. Normal availability of power would be 550/440 volts at 50 cycles. Lighting voltage would be 220 Volts on the surface

and 110 Volts in the Underground. 3.3 kV is available at Sudamdih and 6.6 kV would be available at Moonidih mines.

Water – reasonably clean will be provided.

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Provide normal tools and tackles and Workshop support.

Facilities required for the purpose of erecting the equipment, and office space will be made available upon request.

8 REPORTING

Progress reports every two months are required based on the work plan/time schedules submitted in the offer. These should be produced through the period from contract award to handover of the equipment at site. They should be brief in the main text, but supported as

necessary by documents produced or issued in the course of the work (agreements, drawings, certificates etc).

A draft final report shall be allowed for in the time schedule and submitted to the project authorities for comment. Comments will be provided within 1 month to enable a Final report to

be produced.

All formal written or electronic communications between Equipment supplier and Counterpart should be copied to UNIDO.

Any agreement between Equipment supplier and Counterpart must first be cleared by UNIDO before implementation. Failure to do so may abrogate other conditions of contract and result in

reduced, delayed or loss of payment.9 EQUIPMENT SUPPLIERS PERSONNEL

Key personnel who are expected to come to site are to be specified in the offer and CV’s included

10 LANGUAGE

The working language for the offer and all documentation and communications shall be English.

11 CLARIFICATIONS AND QUERIES

All clarifications and queries related to these Terms of Reference should be addressed only to the UNIDO official listed in the covering letter by fax or by email. Bidders should note that

UNIDO reserves the right to publish all questions.

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March 2004

TERMS OF REFERENCE

For supply of equipment and services for extraction and utilisation of Coal Bed Methane (CBM) at Moonidih and Sudamdih mines in the State of Jharkand, India

PACKAGE 4 :STEERING TOOL WITH NQ-DRILLSTRING

7 GENERAL INFORMATION AND BIDDING REQUIREMENTS

The Terms of Reference (TOR) shall be used for the preparation of bids for supply of one or more packages of equipment and related services at the above named coal mine sites in India. It identifies and specifies the basic scope of supply for each package and the obligations and responsibilities of the Equipment manufacturer (s) supplier(s).

UNIDO is acting on behalf of the Government of India (GOI) and the United Nations Development Programme (UNDP) and the Global Environment Facility (GEF) in managing international supply

aspects of this project. It is essentially a capacity building project to introduce, through demonstration advanced techniques of gas resource assessment and recovery and utilisation methods relevant to

Indian conditions.

The offers should contain:

Detailed description of every major item of equipment. Technical data and expected performance of every major item. Cost breakdown itemising all major equipment, services, and management fee. Details of how safety aspects will be incorporated into both equipment and on-site services. All relevant layouts and drawings. Clear indications of which package(s) are being bid for and indications of options selected within

each package as appropriate. Items not included in the scope of supply requested here but which are recommended by bidders

should be explicitly listed and shown as line items in the cost breakdown.

All deviations from the TOR should be clearly indicated and explained in the offer.

In view of the complexity of the project bidders are recommended to visit the project site for familiarisation purposes. The costs of such visits must be borne by the bidder. Arrangements can be made through the office of the National Project Adviser in New Delhi. He is Mr N N Gautam and can

be contacted by telephone (+91 11 237 22 428) or by e-mail at [email protected]

8 BACKGROUND

2.1 Methane as a Greenhouse gas and coal’s contribution to emissions

Efforts are being made worldwide to control the emission of greenhouse gases and to reduce the pressures for accelerated climate change. Methane is a powerful greenhouse gas, with an impact approximately 20 times more severe than carbon dioxide. It is also a clean burning fuel, producing no SO2 or particulates and only about half of the CO2 associated with coal combustion for a given energy output. Hence, capture and utilisation is both beneficial to the global environment and it

constitutes rational use of energy. Technologies are now available to recover the trapped methane from coal-beds prior to mining through drilling of bore holes. This provides further benefits in terms of

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enhanced underground mine safety and better productivity due to reduced downtime in gassy mines, thereby giving improved mine economics and employment protection.

India is the third largest coal producer in the world and has substantial coal reserves It produced about 304 million tonnes in 1999-2000. Open cast production accounts for 75% of the total output

and the remaining 25% is from underground. The share of the underground output in the total production is expected to remain at the current level through to 2010 even as the coal production

increases. The average depth of the underground mines is 150-200 m with a seam thickness of 2-3 m. On an average, 75% of Indian coals are not highly gassy. However, the underground coal

reserves of the eastern coal belt are generally highly gassy. The coal seams of the region primarily possess superior grade coal: prime and medium coking, and some semi and weakly coking coal. Coal mining activity in this region has been and will continue to be a major industry, maintaining a dominant share in the coal sector of the country, given the demand for superior grade coal. The

region has a high concentration of industrial units (steel plants, chemical, ceramic, and glass industry, all of which demand high temperature long flame coal found in the region), and high population density. Consequently, extraction of coal has been a major contributor to methane emissions to the atmosphere. If efficiently recovered, coal bed methane associated with coal

reserves could be a significant potential source of energy both in the region and for the country.

2.2 Project objectives and strategy

The project concept is to effectively capture methane in working coal mines from:

The mined out areas that contain and potentially emit methane to active workings by vertical wells drilled from the surface, known as gob holes

The coal face being mined via deep inseam drilling of long holes in coal and in strata above and below and,

In the coal reserves by drilling surface bore holes ahead of the coal face being mined.

The project strategy is to overcome both the technological and institutional barriers by:9. Strengthening and increasing the capacity of The Coal Mine Planning and Design Institute

(CMPDI), the mine owners, who are the Bharat Coking Coal Limited (BCCL), Coal India Limited (CIL), and the Ministry of Coal, to develop and support CBM recovery and use projects.

10. Providing training and experience in the identification, design, and implementation of programmes to recover and use CBM in a safe, cost effective, and environmentally acceptable manner.

11. Creating a Coal bed Methane Clearinghouse to manage data and information related to CBM technology.

12. Preparing and executing drilling programmes at the Moonidih and Sudamdih coal mines and use of the CBM in power generation and possibly as a transport fuel.

8.3 Site information

Detailed information is best gained through a site visit. However, key information is given below:

The sites are in the leasehold area of Sudamdih and Moonidih Underground coal mines in Jharia coalfields in the District of Dhanbad in the State of Jharkhand of India. The mines are owned by

Bharat Coking Coal Limited (A subsidiary of Coal India Limited) with its headquarters at Dhanbad, produced about 28 million tons of coal (1999-2000). Dhanbad and Jharia coalfield is a well

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developed area. Dhanbad is well connected by rail and road to various important towns including Ranchi, capital of Jharkhand State (at a distance of 180 km. By road) and important metro cities of New Delhi (distance about 1100 km. By rail) and Calcutta (distance about 260 km. By rail). There are fast moving trains to Dhanbad from New Delhi (overnight journey) and from Calcutta (41/2 hours

journey). The distance from BCCL Hdqrs., Dhanbad to Moonidih and Sudamdih coal mines is 18 km and 25 km. respectively.

Electric power supply is available at mine site at 11 kV, 3.3 kV, 550 Volts and 200 Volts, 50 Hz.

Land at the work place is generally plain to slightly rolling terrain and well connected by roads. Some temporary approach roads to drilling sites will have to be made.

Dhanbad town besides having headquarters of Bharat Coking Coal Ltd. has also the Central Mining Research Institute, designated Laboratory for the project, which will be involved in various laboratory

testing of coal cores. It is also the headquarter of Director General of Mines Safety.

Moonidih underground mine has a large number of coal seams which are being worked by Longwall caving method upto a depth of about 500 m.

Sudamdih underground mine has large number of thick coal seams with steep gradient (250 to 40o) and are being worked with Hydraulic sand stowing by various types of slicing methods. Mine is

watery.

Further details and details of drilling locations of the seams in which these bore holes will have to be drilled are given in the details of the concerned drilling package for both the mines.

Mines are located in tropical climate with summer maximum temperatures going up to 42-450C (in May and June). Winter maximum and minimum temperatures range from 25 to 32oC and 8 to 11oC respectively (November to February). The annual rainfall is around 1300 mm, 80% of which occurs in monsoon season (mid-June to mid-October). Storms of mild nature do occur in the pre-summer

season, i.e. March-April.

9 DESCRIPTION OF REQUIRED EQUIPMENT AND SERVICES

As indicated in the covering letter inviting tenders, the equipment and services have been divided into several packages. Bidders are invited to submit offers for one or more packages. However, all

bidders are recommended to include in their offer commentary on how they would anticipate interfacing with other packages providers wherever it may be necessary to do so.

In various places throughout this section references is made to Indian standards and regulations and safely requirements. Bidders are recommended to acquire and/or consult these when preparing their

offers. Mr. N. N. Gautam (see page 1 of this TOR) will hold a small library of such documents.

Offers for the package(s) must be complete offers for all items listed in the respective packages. Any incomplete offer for the relevant package(s), will be regarded as non-compliant. In cases where the bidder manufacturers/assembles the principle equipment under any package, but does not himself

manufacture certain specific item(s) listed separately in the relevant package, the bidder is expected to supply such item(s), sourcing it(them) from the original manufacturer(s)/supplier(s), after assuring the quality and compatibility of such item(s) within the entire package. (Any deviation from any of the listed items for any package will not be considered unless supported by full technical justifications).

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3.1 General Description

Steering Tools for measurement while drilling (MWD) are used to determine the trajectory of the borehole and orientation of the Downhole Motor (DHM).

A MWD steering tool will provide real time data while drilling, remains inserted in the back of the DHM and provides data on a continuous basis. The equipment will include all downhole instrumentation and read-out equipment at the drill site including software.

The steering probe itself needs to be of an appropriate diameter to fit inside the N-size non-magnetic Drill Rods (Instrument Rod and Spacer Rods) and require approval of DGMS for use in Indian coal mines.

The bidders should send with their offers existing permission papers of any local Mining Inspectorates or even for any whole countries to simplify the approval procedure of DGMS.

3.2 Specifications and Quantity

3.2.1 Steering Tool

One (1) complete Steering Tool inclusive all downhole instrumentation, 1 non-magnetic instrument Rod and 2

non-magnetic Spacer Rods, read-out equipment at drill site and all other necessary surface and downhole

components to operate the Steering Tool. Also the necessary tools for maintenance/repair should be part of the

delivery.

The Steering Tool has to be compatible with 2 7/8“ Downhole Motors and NQ-Drill Rods.

The measuring ranges and measurement accuracies should be for

Inclination: 0 to 60 degrees from the horizontal with an accuracy of 0.1 degree Azimuth : 0 to 360 degrees with an accuracy of 0.5 degree Tool Face: 0 to 360 degrees with an accuracy of 1.0 degree

The bidder should offer under this item the Steering Tool without spare parts.

3.2.2 Drill String/Crossovers

In addition to the Steering Tool the bidder should offer the following equipment:

334 NQ Drill Rods (3.0 m length each) fitted with permanently installed conductors in each Drill Rod

1 crossover to connect non-mag Spacer Rod with Downhole Motor (Motor has 2 3/8“ API Reg., box up)

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1 crossover to connect non-mag Spacer Rod with NQ Drill Rod 1 aligning sub to be installed between Downhole Motor and Steering Tool to align high sides of those

two components (if not an aligning possibility is already integrated in the Steering Tool)

3.2.3 Spare Parts

The bidder should provide a list of suggested spare parts and consumables for items 3.2.1 and 3.2.2 sufficient

for an operating period of one (1) year.

3.2.4 Training

The successful bidder will provide training for operation and maintenance of the equipment. This includes the training for a proper use of the delivered software to compute the drillpath of a well

based on the downhole measurements.The training shall be conducted above ground at project site and underground for a total period of two weeks to ensure that the key personnel of the drilling crew is able to operate the Steering Tool

properly. The successful bidder shall also arrange to provide documented training modules as well as Video and/or C.D. presentations of their equipment for the operation and maintenance, which is normally

available with such equipment.

3.2.5 Performance Demonstration

The performance of the Steering Probe will be checked regarding measurement accuracies during a calibration procedure which shall be made available by the successfull bidder and agreed to by the

client.

4 EQUIPMENT MANUFACTURERS/SUPPLIER’S GENERAL RESPONSIBILITIES

4.1 Procedure governing installation of Electrical Equipments in Hazardous Areas.

For Surface Drilling Equipment:

Electrical Equipments intended to be used in Zone I and Zone 2 Hazardous areas of oil mines are required to be approved by Director General, Mines Safety (DGMS) as per Oil Mines Regulations,

1984 and Indian Electricity Rules, 1956. The following procedure is followed as per Gazette Notification:

Area of Operation Physical location Type of Electrical EquipmentsZone ‘O’ hazardous

areaBore-hole only Intrinsically Safe Electrical equipments are

permitted Zone ‘1’ hazardous

areaDrilling and work over Recovery wells, gas processing and storage facilities.

(1) Flame proof Equipment – IS 2148-1981(2) Intrinsically Safe Equipment – IS-5780-1986(3) Pressurised Apparatus – IS 7389 (Part I)-1976(4) Sand Filled Apparatus – IS-7724-1975

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Zone ‘2’ hazardous Extends 8 mtrs. vertically above and 16 mtrs. horizontally from well head mud tank, mud pump, etc.

(1) Flame Proof – IS-2148-1981(2) Intrinsically Safe Equipment – IS-5780-1980(3) Increased Safety Equipment – IS 6381-1972(4) Pressurised Apparatus – IS=7389 (Part I)-1976(5) Sand Filled Apparatus – IS-7724-1975(6) Oil Immersed Apparatus – IS-7693-1975

From practical consideration, flame-proof and intrinsically safe equipments are generally used in Zone ‘1’ hazardous area and flameproof, intrinsically safe, increased safety and pressurised

equipments are used in Zone ‘2’ hazardous areas.

For underground electrical equipments:

Provisions of Coal Mines Regulation, 1957 and Electricity Rules, 1956 will apply. Normally all equipments have to be flame-proof normally using 550 volts (50 cycles per second) and or otherwise

intrinsically safe.

Underground Mechanical Components:

(a) Exposed part of any equipment shall not be manufactured by light metal alloy like aluminium, etc. for use in the underground.

(b) HDPE pipes shall be fire-resistant and anti-static.

The prototype of the equipments are required to be tested at any of the following Laboratories:

(vii) Central Mining Research Institute, (CMRI) Dhanbad(viii) ERTL, East – Electronics Regional Test Laboratory, Salt Lake, Calcutta(ix) Central Power Research Institute, Bangalore.

One original copy and one certified copy (by the Laboratory) of the test certificate along with a certified copy of the drawing is required to be submitted to DGMS with the format of application

signed by the Managing Director/Director of the Company or an official not below the rank of General Manager duly authorised by the Managing Director/Director. If the documents are in order, the field trial permission is granted within three months with validity of one year. After successful field trial,

regular approval is granted for three years.

4.2 Other Responsibilities:

All engineering designs, specifications, technical documentation and other relevant documents should be adapted for use at the nominated sites and copies provided to the project authorities in the

English language.

The Equipment manufacturers/supplier is responsible for ensuring that all machines and equipment are new, supplied direct from the manufacturers’ works, are of latest state of the art technology, free

of defects.

The Equipment manufacturers/supplier is responsible for the control of all work, services and supplies which are executed by its sub-equipment manufacturer(s)/ supplier(s).

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The Equipment manufacturers/supplier is responsible for obtaining relevant safety certificates and issuing of relevant safety documentation and obtain approval from DGMS of (a) all underground

equipment under the Indian Coal Mines Regulations, 1957 and Indian Electricity Rules, 1956; (b) for all the equipment used on surface under the Indian Oil Mines Regulations, 1984 (along with Amendment of 1996). The Project authorities shall provide all assistance to the equipment

manufacturers/supplier to facilitate obtaining the relevant approvals.

No part shipment of the equipment shall be made by the equipment manufacturers /supplier (except for testing and approval of DGMS), till DGMS approval for the relevant components of the

equipments both for Surface and Underground has been obtained from DGMS for use in India.

One number Prototype of each variety of electrical component needs to be tested in India for the purpose of DGMS approval.

The Equipment manufacturers/ supplier’s responsibilities are valid up to the expiration of equipment guarantee periods and he is required to rectify defects arising from original design, manufacturing or

materials of construction.

Infrastructure requirement of the equipment manufacturers/supplier, like installation area, water requirement, electricity requirement and other office space requirement shall be clearly indicated for

the counter part agency to consider and arrange.

Manufacturers/supplier to guarantee supply of all spares for the life of the Project. If equipment becomes obsolete then manufacturers/supplier will hand over the design drawings of all spare parts

to the Counter-part agency.

5 TERMS OF GUARANTEES

The terms of mechanical, electrical, performance and safety guarantee for the equipment supplied should be quoted in accordance with international practice and standards. The duration of the

guarantee should be at least 12 months from the date of final acceptance of the equipment on site. (Note that final acceptance will take place after installation and commissioning and training of

operatives, performance demonstration and issuing of any relevant safety documentation).

The Equipment manufacturers/supplier shall guarantee that the scope of supply and services is complete and fit for the purpose for which it is intended in line with the requirements laid out in

Section 3 above.

6 PROVISIONAL TIME SCHEDULE

The Equipment manufacturers/supplier shall provide a provisional time schedule starting from contract award and covering all foreseen activities such as delivery of all major items of equipment, installation, commissioning, training, performance demonstration, handover, and after sales service

and any post contract monitoring.

Any preliminary site work required by the Equipment supplier prior to delivery should be clearly indicated and scheduled.

All documentation related to preliminary site work, delivery and installation should be delivered within sufficient time for the Counterpart to carry out work required of him.

7 PROVISIONAL SERVICES TO BE SUPPLIED BY THE COUNTERPART

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Power supply at site – shall be made available by the Project at site. Normal availability of power would be 550/440 volts at 50 cycles. Lighting voltage would be 220 Volts on the surface and 110

Volts in the Underground. 3.3 kV is available at Sudamdih and 6.6 kV would be available at Moonidih mines.

Water – reasonably clean will be provided.

Provide normal tools and tackles and Workshop support.

Facilities required for the purpose of erecting the equipment, and office space will be made available upon request.

8 REPORTING

Progress reports every two months are required based on the work plan/time schedules submitted in the offer. These should be produced through the period from contract award to handover of the

equipment at site. They should be brief in the main text, but supported as necessary by documents produced or issued in the course of the work (agreements, drawings, certificates etc).

A draft final report shall be allowed for in the time schedule and submitted to the project authorities for comment. Comments will be provided within 1 month to enable a Final report to be produced.

All formal written or electronic communications between Equipment supplier and Counterpart should be copied to UNIDO.

Any agreement between Equipment supplier and Counterpart must first be cleared by UNIDO before implementation. Failure to do so may abrogate other conditions of contract and result in reduced,

delayed or loss of payment.

9 EQUIPMENT SUPPLIERS PERSONNEL

Key personnel who are expected to come to site are to be specified in the offer and CV’s included

10 LANGUAGE

The working language for the offer and all documentation and communications shall be English.

11 CLARIFICATIONS AND QUERIES

All clarifications and queries related to these Terms of Reference should be addressed only to the UNIDO official listed in the covering letter by fax or by email. Bidders should note that UNIDO

reserves the right to publish all questions.

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March 2004

TERMS OF REFERENCE

For supply of equipment and services for extraction and utilisation of Coal Bed Methane (CBM) at Moonidih and Sudamdih mines in the State of Jharkand, India

PACKAGE 10: SAFETY SYSTEM

10 GENERAL INFORMATION AND BIDDING REQUIREMENTS

The Terms of Reference (TOR) shall be used for the preparation of bids for supply of one or more packages of equipment and related services at the above named coal mine sites in India. It identifies and specifies the basic scope of supply for each package and the obligations and responsibilities of the Equipment manufacturer (s) supplier(s).

UNIDO is acting on behalf of the Government of India (GOI) and the United Nations Development Programme (UNDP) and the Global Environment Facility (GEF) in managing international supply aspects of this project. It is essentially a capacity building project to introduce, through demonstration advanced techniques of gas resource assessment and recovery and utilisation methods relevant to Indian conditions.

The offers should contain:

Detailed description of every major item of equipment. Technical data and expected performance of every major item. Cost breakdown itemising all major equipment, services, and management fee. Details of how safety aspects will be incorporated into both equipment and on-site services. All relevant layouts and drawings. Clear indications of which package(s) are being bid for and indications of options selected

within each package as appropriate. Items not included in the scope of supply requested here but which are recommended by

bidders should be explicitly listed and shown as line items in the cost breakdown.

All deviations from the TOR should be clearly indicated and explained in the offer.

In view of the complexity of the project bidders are recommended to visit the project site for familiarisation purposes. The costs of such visits must be borne by the bidder. Arrangements can be made through the office of the National Project Adviser in New Delhi. He is Mr N N Gautam and can be contacted by telephone (+91 11 237 22 428) or by e-mail on [email protected]

11 BACKGROUND

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2.1 Methane as a Greenhouse gas and coal’s contribution to emissions

Efforts are being made worldwide to control the emission of greenhouse gases and to reduce the pressures for accelerated climate change. Methane is a powerful greenhouse gas, with an impact approximately 20 times more severe than carbon dioxide. It is also a clean burning fuel, producing no SO2 or particulates and only about half of the CO2 associated with coal combustion for a given energy output. Hence, capture and utilisation is both beneficial to the global environment and it constitutes rational use of energy. Technologies are now available to recover the trapped methane from coal-beds prior to mining through drilling of bore holes. This provides further benefits in terms of enhanced underground mine safety and better productivity due to reduced downtime in gassy mines, thereby giving improved mine economics and employment protection.

India is the third largest coal producer in the world and has substantial coal reserves It produced about 304 million tonnes in 1999-2000. Open cast production accounts for 75% of the total output and the remaining 25% is from underground. The share of the underground output in the total production is expected to remain at the current level through to 2010 even as the coal production increases. The average depth of the underground mines is 150-200 m with a seam thickness of 2-3 m. On an average, 75% of Indian coals are not highly gassy. However, the underground coal reserves of the eastern coal belt are generally highly gassy. The coal seams of the region primarily possess superior grade coal: prime and medium coking, and some semi and weakly coking coal. Coal mining activity in this region has been and will continue to be a major industry, maintaining a dominant share in the coal sector of the country, given the demand for superior grade coal. The region has a high concentration of industrial units (steel plants, chemical, ceramic, and glass industry, all of which demand high temperature long flame coal found in the region), and high population density. Consequently, extraction of coal has been a major contributor to methane emissions to the atmosphere. If efficiently recovered, coal bed methane associated with coal reserves could be a significant potential source of energy both in the region and for the country.

2.2 Project objectives and strategy

The project concept is to effectively capture methane in working coal mines from:

The mined out areas that contain and potentially emit methane to active workings by vertical wells drilled from the surface, known as gob holes

The coal face being mined via deep inseam drilling of long holes in coal and in strata above and below and,

In the coal reserves by drilling surface bore holes ahead of the coal face being mined.

The project strategy is to overcome both the technological and institutional barriers by:13. Strengthening and increasing the capacity of The Coal Mine Planning and Design

Institute (CMPDI), the mine owners, who are the Bharat Coking Coal Limited (BCCL), Coal India Limited (CIL), and the Ministry of Coal, to develop and support CBM recovery and use projects.

14. Providing training and experience in the identification, design, and implementation of programmes to recover and use CBM in a safe, cost effective, and environmentally acceptable manner.

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15. Creating a Coal bed Methane Clearinghouse to manage data and information related to CBM technology.

16. Preparing and executing drilling programmes at the Moonidih and Sudamdih coal mines and use of the CBM in power generation and possibly as a transport fuel.

11.3 Site information

Detailed information is best gained through a site visit. However, key information is given below:

The sites are in the leasehold area of Sudamdih and Moonidih Underground coal mines in Jharia coalfields in the District of Dhanbad in the State of Jharkhand of India. The mines are owned by Bharat Coking Coal Limited (A subsidiary of Coal India Limited) with its headquarters at Dhanbad, produced about 28 million tons of coal (1999-2000). Dhanbad and Jharia coalfield is a well developed area. Dhanbad is well connected by rail and road to various important towns including Ranchi, capital of Jharkhand State (at a distance of 180 km. By road) and important metro cities of New Delhi (distance about 1100 km. By rail) and Calcutta (distance about 260 km. By rail). There are fast moving trains to Dhanbad from New Delhi (overnight journey) and from Calcutta (41/2 hours journey). The distance from BCCL Hdqrs., Dhanbad to Moonidih and Sudamdih coal mines is 18 km and 25 km. respectively.

Electric power supply is available at mine site at 11 kV, 3.3 kV, 550 Volts and 200 Volts, 50 Hz.

Land at the work place is generally plain to slightly rolling terrain and well connected by roads. Some temporary approach roads to drilling sites will have to be made.

Dhanbad town besides having headquarters of Bharat Coking Coal Ltd. has also the Central Mining Research Institute, designated Laboratory for the project, which will be involved in various laboratory testing of coal cores. It is also the headquarter of Director General of Mines Safety.

Moonidih underground mine has a large number of coal seams which are being worked by Longwall caving method upto a depth of about 500 m.

Sudamdih underground mine has large number of thick coal seams with steep gradient (250 to 40o) and are being worked with Hydraulic sand stowing by various types of slicing methods. Mine is watery.

Further details and details of drilling locations of the seams in which these bore holes will have to be drilled are given in the details of the concerned drilling package for both the mines.

Mines are located in tropical climate with summer maximum temperatures going up to 42-450C (in May and June). Winter maximum and minimum temperatures range from 25 to 32oC and 8 to 11oC respectively (November to February). The annual rainfall is around 1300 mm, 80% of which occurs in monsoon season (mid-June to mid-October). Storms of mild nature do occur in the pre-summer season, i.e. March-April.

12 DESCRIPTION OF REQUIRED EQUIPMENT AND SERVICES

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As indicated in the covering letter inviting tenders, the equipment and services have been divided into several packages. Bidders are invited to submit offers for one or more packages. However, all bidders are recommended to include in their offer commentary on how they would anticipate interfacing with other packages providers wherever it may be necessary to do so.

In various places throughout this section references is made to Indian standards and regulations and safely requirements. Bidders are recommended to acquire and/or consult these when preparing their offers. Mr. N. N. Gautam (see page 1 of this TOR) will hold a small library of such documents.

Offers for the package(s) must be complete offers for all items listed in the respective packages. Any incomplete offer for the relevant package(s), will be regarded as non-compliant. In cases where the bidder manufacturers/assembles the principle equipment under any package, but does not himself manufacture certain specific item(s) listed separately in the relevant package, the bidder is expected to supply such item(s), sourcing it(them) from the original manufacturer(s)/supplier(s), after assuring the quality and compatibility of such item(s) within the entire package. (Any deviation from any of the listed items for any package will not be considered unless supported by full technical justifications).

3.1 General Description and Requirements:

Sl. No.

Description of Items Quantity

1. 1A Nitrogen Cylinder 24 (Moonidih-12, Sudamdih-12)2. Gas Regulators 24 (Moonidih-12, Sudamdih-12)3. Adapters to connect regulator outlet to

½” PVC pipe4 (Moonidih-2, Sudamdih-2)

4. Safety Line – ½” Sch 40 PVC pipe per ASTM D1785, Type 1, Grade 1 Compound :

a) Moonidih Mine Safety Line Piping :

Underground - D Panels to JN-2Surface – To collection station- IIb) Sudamdih Mine Safety Line

Piping :Underground – Surface-

Sub Total (a + b)Add 5% overageTotal ½” Sch 40 PVC piping(standard length = 20 ft/6.1 metres)

1600 meters1650 meters

840 meters 310 meters4400 meters 220 meters4620 meters (758 sticks at 6.1 meters/sticks)

5. Valves & Fitting, ½ sch 40 PVC :(i) Couplings, Socket X Socket(ii) Female Adapters, Socket X

Female Thread(iii) Male Adapters, Male

Thread X Socket(iv) Caps, Socket

80020

20

20

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(v) Plugs, Spigot(vi) 45 deg Ells, Socket X

Socket(vii) 90 Deg Ells, Socket X

Socket(viii) 900 deg Ells, Socket X

Thread(ix) Tees, Socket X Socket X

Socket(x) Tees, Socket X Socket X

Thread(xi) Unions, Socket X Socket(xii) Ball Valves, Socket X

Socket

2050

50

50

20

20

2020

6. Other fittings :(i) Female Adapters, ½ Socket X ¼” Female Thread

20

7. Other Materials :(i) Pressure Gauges, 0 to 150 psi,

¼” pipe(ii) 1 qt cans of PVC cement,

regular set(iii) ½ “ PVC Pipe Cutters(iv) Nylon cable ties 24” long or

more(v) Tool for attaching Nylon cable

ties(vi) Duct Tape, 2” wide X 60 yards

long(vii)Stainless Steel cable ties for

attaching ( skin to skin ) 10 gauge copper wire to the surface of the 6” nominal dia. HDPE pipe

(viii) Tool for attaching stainless steel cable ties

20

20

5

40004

10

1000

2

8. Pressure switch plus 3-way control valve/actuator (housed in a NEMA carbon steel enclosure) – Pneumatic pressure switch (operable with air or nitrogen at a nominal pressure of up to 90 psig) that can sense the vacuum in 6” HDPE line.

2 (Moonidih-1, Sudamdih-1)

4 EQUIPMENT MANUFACTURERS/SUPPLIER’S GENERAL RESPONSIBILITIES

4.1 Procedure governing installation of Electrical Equipments in Hazardous Areas.

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For Surface Drilling Equipment:

Electrical Equipments intended to be used in Zone I and Zone 2 Hazardous areas of oil mines are required to be approved by Director General, Mines Safety (DGMS) as per Oil Mines Regulations, 1984 and Indian Electricity Rules, 1956. The following procedure is followed as per Gazette Notification:

Area of Operation Physical location Type of Electrical EquipmentsZone ‘O’ hazardous area Bore-hole only Intrinsically Safe Electrical

equipments are permitted Zone ‘1’ hazardous area Drilling and work over

Recovery wells, gas processing and storage facilities.

(1) Flame proof Equipment – IS 2148-1981(2) Intrinsically Safe Equipment – IS-5780-1986(3) Pressurised Apparatus – IS 7389 (Part I)-1976(4) Sand Filled Apparatus – IS-7724-1975

Zone ‘2’ hazardous Extends 8 mtrs. vertically above and 16 mtrs. horizontally from well head mud tank, mud pump, etc.

(1) Flame Proof – IS-2148-1981(2) Intrinsically Safe Equipment – IS-5780-1980(3) Increased Safety Equipment – IS 6381-1972(4) Pressurised Apparatus – IS=7389 (Part I)-1976(5) Sand Filled Apparatus – IS-7724-1975(6) Oil Immersed Apparatus – IS-7693-1975

From practical consideration, flame-proof and intrinsically safe equipments are generally used in Zone ‘1’ hazardous area and flameproof, intrinsically safe, increased safety and pressurised equipments are used in Zone ‘2’ hazardous areas.

For underground electrical equipments:

Provisions of Coal Mines Regulation, 1957 and Electricity Rules, 1956 will apply. Normally all equipments have to be flame-proof normally using 550 volts (50 cycles per second) and or otherwise intrinsically safe.

Underground Mechanical Components:

(a) Exposed part of any equipment shall not be manufactured by light metal alloy like aluminium, etc. for use in the underground.

(b) HDPE pipes shall be fire-resistant and anti-static.

The prototype of the equipments are required to be tested at any of the following Laboratories:

(x) Central Mining Research Institute, (CMRI) Dhanbad(xi) ERTL, East – Electronics Regional Test Laboratory, Salt Lake, Calcutta(xii) Central Power Research Institute, Bangalore.

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One original copy and one certified copy (by the Laboratory) of the test certificate along with a certified copy of the drawing is required to be submitted to DGMS with the format of application signed by the Managing Director/Director of the Company or an official not below the rank of General Manager duly authorised by the Managing Director/Director. If the documents are in order, the field trial permission is granted within three months with validity of one year. After successful field trial, regular approval is granted for three years.

4.2 Other Responsibilities:

All engineering designs, specifications, technical documentation and other relevant documents should be adapted for use at the nominated sites and copies provided to the project authorities in the English language.

The Equipment manufacturers/supplier is responsible for ensuring that all machines and equipment are new, supplied direct from the manufacturers’ works, are of latest state of the art technology, free of defects.

The Equipment manufacturers/supplier is responsible for the control of all work, services and supplies which are executed by its sub-equipment manufacturer(s)/ supplier(s).

The Equipment manufacturers/supplier is responsible for obtaining relevant safety certificates and issuing of relevant safety documentation and obtain approval from DGMS of (a) all underground equipment under the Indian Coal Mines Regulations, 1957 and Indian Electricity Rules, 1956; (b) for all the equipment used on surface under the Indian Oil Mines Regulations, 1984 (along with Amendment of 1996). The Project authorities shall provide all assistance to the equipment manufacturers/supplier to facilitate obtaining the relevant approvals. No part shipment of the equipment shall be made by the equipment manufacturers /supplier (except for testing and approval of DGMS), till DGMS approval for the relevant components of the equipments both for Surface and Underground has been obtained from DGMS for use in India.

One number Prototype of each variety of electrical component needs to be tested in India for the purpose of DGMS approval.

The Equipment manufacturers/ supplier’s responsibilities are valid up to the expiration of equipment guarantee periods and he is required to rectify defects arising from original design, manufacturing or materials of construction.

Infrastructure requirement of the equipment manufacturers/supplier, like installation area, water requirement, electricity requirement and other office space requirement shall be clearly indicated for the counter part agency to consider and arrange.

Manufacturers/supplier to guarantee supply of all spares for the life of the Project. If equipment becomes obsolete then manufacturers/supplier will hand over the design drawings of all spare parts to the Counter-part agency.

5 TERMS OF GUARANTEES

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The terms of mechanical, electrical, performance and safety guarantee for the equipment supplied should be quoted in accordance with international practice and standards. The duration of the guarantee should be at least 12 months from the date of final acceptance of the equipment on site. (Note that final acceptance will take place after installation and commissioning and training of operatives, performance demonstration and issuing of any relevant safety documentation).

The Equipment manufacturers/supplier shall guarantee that the scope of supply and services is complete and fit for the purpose for which it is intended in line with the requirements laid out in Section 3 above.

6 PROVISIONAL TIME SCHEDULE

The Equipment manufacturers/supplier shall provide a provisional time schedule starting from contract award and covering all foreseen activities such as delivery of all major items of equipment, installation, commissioning, training, performance demonstration, handover, and after sales service and any post contract monitoring.

Any preliminary site work required by the Equipment supplier prior to delivery should be clearly indicated and scheduled.

All documentation related to preliminary site work, delivery and installation should be delivered within sufficient time for the Counterpart to carry out work required of him.

2 PROVISIONAL SERVICES TO BE SUPPLIED BY THE COUNTERPART

Power supply at site – shall be made available by the Project at site. Normal availability of power would be 550/440 volts at 50 cycles. Lighting voltage would be 220 Volts on the surface and 110 Volts in the Underground. 3.3 kV is available at Sudamdih and 6.6 kV would be available at Moonidih mines.

Water – reasonably clean will be provided.

Provide normal tools and tackles and Workshop support.

Facilities required for the purpose of erecting the equipment, and office space will be made available upon request.

8 REPORTING

Progress reports every two months are required based on the work plan/time schedules submitted in the offer. These should be produced through the period from contract award to handover of the equipment at site. They should be brief in the main text, but supported as necessary by documents produced or issued in the course of the work (agreements, drawings, certificates etc).

A draft final report shall be allowed for in the time schedule and submitted to the project authorities for comment. Comments will be provided within 1 month to enable a Final report to be produced.

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All formal written or electronic communications between Equipment supplier and Counterpart should be copied to UNIDO.

Any agreement between Equipment supplier and Counterpart must first be cleared by UNIDO before implementation. Failure to do so may abrogate other conditions of contract and result in reduced, delayed or loss of payment.

9 EQUIPMENT SUPPLIERS PERSONNEL

Key personnel who are expected to come to site are to be specified in the offer and CV’s included

10 LANGUAGE

The working language for the offer and all documentation and communications shall be English.

11 CLARIFICATIONS AND QUERIES

All clarifications and queries related to these Terms of Reference should be addressed only to the UNIDO official listed in the covering letter by fax or by email. Bidders should note that UNIDO reserves the right to publish all questions.

.

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March 2004

TERMS OF REFERENCE

For supply of equipment and services for extraction and utilisation of Coal Bed Methane (CBM) at Moonidih and Sudamdih mines in the State of Jharkand, India

PACKAGE 24: GAS GATHERING COLLECTION SYSTEM

13 GENERAL INFORMATION AND BIDDING REQUIREMENTS

The Terms of Reference (TOR) shall be used for the preparation of bids for supply of one or more packages of equipment and related services at the above named coal mine sites in India. It identifies and specifies the basic scope of supply for each package and the obligations and responsibilities of the Equipment manufacturer (s) supplier(s).

UNIDO is acting on behalf of the Government of India (GOI) and the United Nations Development Programme (UNDP) and the Global Environment Facility (GEF) in managing international supply aspects of this project. It is essentially a capacity building project to introduce, through demonstration advanced techniques of gas resource assessment and recovery and utilisation methods relevant to Indian conditions.

The offers should contain:

Detailed description of every major item of equipment. Technical data and expected performance of every major item. Cost breakdown itemising all major equipment, services, and management fee. Details of how safety aspects will be incorporated into both equipment and on-site services. All relevant layouts and drawings. Clear indications of which package(s) are being bid for and indications of options selected

within each package as appropriate. Items not included in the scope of supply requested here but which are recommended by

bidders should be explicitly listed and shown as line items in the cost breakdown.

All deviations from the TOR should be clearly indicated and explained in the offer.

In view of the complexity of the project bidders are recommended to visit the project site for familiarisation purposes. The costs of such visits must be borne by the bidder. Arrangements can be made through the office of the National Project Adviser in New Delhi. He is Mr N N Gautam and can be contacted by telephone (+91 11 37 22 428) or by e-mail on [email protected]

14 BACKGROUND

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2.1 Methane as a Greenhouse gas and coal’s contribution to emissions

Efforts are being made worldwide to control the emission of greenhouse gases and to reduce the pressures for accelerated climate change. Methane is a powerful greenhouse gas, with an impact approximately 20 times more severe than carbon dioxide. It is also a clean burning fuel, producing no SO2 or particulates and only about half of the CO2 associated with coal combustion for a given energy output. Hence, capture and utilisation is both beneficial to the global environment and it constitutes rational use of energy. Technologies are now available to recover the trapped methane from coal-beds prior to mining through drilling of bore holes. This provides further benefits in terms of enhanced underground mine safety and better productivity due to reduced downtime in gassy mines, thereby giving improved mine economics and employment protection.

India is the third largest coal producer in the world and has substantial coal reserves It produced about 304 million tonnes in 1999-2000. Open cast production accounts for 75% of the total output and the remaining 25% is from underground. The share of the underground output in the total production is expected to remain at the current level through to 2010 even as the coal production increases. The average depth of the underground mines is 150-200 m with a seam thickness of 2-3 m. On an average, 75% of Indian coals are not highly gassy. However, the underground coal reserves of the eastern coal belt are generally highly gassy. The coal seams of the region primarily possess superior grade coal: prime and medium coking, and some semi and weakly coking coal. Coal mining activity in this region has been and will continue to be a major industry, maintaining a dominant share in the coal sector of the country, given the demand for superior grade coal. The region has a high concentration of industrial units (steel plants, chemical, ceramic, and glass industry, all of which demand high temperature long flame coal found in the region), and high population density. Consequently, extraction of coal has been a major contributor to methane emissions to the atmosphere. If efficiently recovered, coal bed methane associated with coal reserves could be a significant potential source of energy both in the region and for the country.

2.2 Project objectives and strategy

The project concept is to effectively capture methane in working coal mines from:

The mined out areas that contain and potentially emit methane to active workings by vertical wells drilled from the surface, known as gob holes

The coal face being mined via deep inseam drilling of long holes in coal and in strata above and below and,

In the coal reserves by drilling surface bore holes ahead of the coal face being mined.

The project strategy is to overcome both the technological and institutional barriers by:17. Strengthening and increasing the capacity of The Coal Mine Planning and Design

Institute (CMPDI), the mine owners, who are the Bharat Coking Coal Limited (BCCL), Coal India Limited (CIL), and the Ministry of Coal, to develop and support CBM recovery and use projects.

18. Providing training and experience in the identification, design, and implementation of programmes to recover and use CBM in a safe, cost effective, and environmentally acceptable manner.

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19. Creating a Coal bed Methane Clearinghouse to manage data and information related to CBM technology.

20. Preparing and executing drilling programmes at the Moonidih and Sudamdih coal mines and use of the CBM in power generation and possibly as a transport fuel.

14.3 Site information

Detailed information is best gained through a site visit. However, key information is given below:

The sites are in the leasehold area of Sudamdih and Moonidih Underground coal mines in Jharia coalfields in the District of Dhanbad in the State of Jharkhand of India. The mines are owned by Bharat Coking Coal Limited (A subsidiary of Coal India Limited) with its headquarters at Dhanbad, produced about 28 million tons of coal (1999-2000). Dhanbad and Jharia coalfield is a well developed area. Dhanbad is well connected by rail and road to various important towns including Ranchi, capital of Jharkhand State (at a distance of 180 km. By road) and important metro cities of New Delhi (distance about 1100 km. By rail) and Calcutta (distance about 260 km. By rail). There are fast moving trains to Dhanbad from New Delhi (overnight journey) and from Calcutta (41/2 hours journey). The distance from BCCL Hdqrs., Dhanbad to Moonidih and Sudamdih coal mines is 18 km and 25 km. respectively.

Electric power supply is available at mine site at 11 kV, 3.3 kV, 550 Volts and 200 Volts, 50 Hz.

Land at the work place is generally plain to slightly rolling terrain and well connected by roads. Some temporary approach roads to drilling sites will have to be made.

Dhanbad town besides having headquarters of Bharat Coking Coal Ltd. has also the Central Mining Research Institute, designated Laboratory for the project, which will be involved in various laboratory testing of coal cores. It is also the headquarter of Director General of Mines Safety.

Moonidih underground mine has a large number of coal seams which are being worked by Longwall caving method upto a depth of about 500 m.

Sudamdih underground mine has large number of thick coal seams with steep gradient (250 to 40o) and are being worked with Hydraulic sand stowing by various types of slicing methods. Mine is watery.

Further details and details of drilling locations of the seams in which these bore holes will have to be drilled are given in the details of the concerned drilling package for both the mines.

Mines are located in tropical climate with summer maximum temperatures going up to 42-450C (in May and June). Winter maximum and minimum temperatures range from 25 to 32oC and 8 to 11oC respectively (November to February). The annual rainfall is around 1300 mm, 80% of which occurs in monsoon season (mid-June to mid-October). Storms of mild nature do occur in the pre-summer season, i.e. March-April.

15 DESCRIPTION OF REQUIRED EQUIPMENT AND SERVICES

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As indicated in the covering letter inviting tenders, the equipment and services have been divided into several packages. Bidders are invited to submit offers for one or more packages. However, all bidders are recommended to include in their offer commentary on how they would anticipate interfacing with other packages providers wherever it may be necessary to do so.

In various places throughout this section references is made to Indian standards and regulations and safely requirements. Bidders are recommended to acquire and/or consult these when preparing their offers. Mr. N. N. Gautam (see page 1 of this TOR) will hold a small library of such documents.

Offers for the package(s) must be complete offers for all items listed in the respective packages. Any incomplete offer for the relevant package(s), will be regarded as non-compliant. In cases where the bidder manufacturers/assembles the principle equipment under any package, but does not himself manufacture certain specific item(s) listed separately in the relevant package, the bidder is expected to supply such item(s), sourcing it(them) from the original manufacturer(s)/supplier(s), after assuring the quality and compatibility of such item(s) within the entire package. (Any deviation from any of the listed items for any package will not be considered unless supported by full technical justifications).

3.1 General Description and Requirements:

New Item No.

Item/Equipment Quantity Remarks

1 Condensate traps : (please see detailed description below)-Vacuum traps-Pressure Traps (Manual/ Automatic)

86

Separate specifications required for pipe line under vacuum, and for pipe line under positive pressure. Pipe lines connecting 7 vertical wells to the collection points will be under positive pressure.

2 6”steel reducing flanges, drilled & tapped for ½” NPT threaded pipe

14 Required for the Drain Traps

3 6”steel reducing flanges, drilled & tapped for 1” NPT threaded pipe

18 Required for the Drain Traps

4 1” Full-Port NPT screwed ball valves, brass

32 Required for the Drain Traps

5 ½” NPT threaded ball valves, brass

28 Required for the Drain Traps

6 1” NTP threaded swing check valve, brass

14 Required for the Drain Traps

7 6” Steel Casing to 6” steel pipe transition

6 Required to connect the UG HDPE piping system to the vertical steel

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adapter, with flanged fittings at both ends, need to be compatible with item 8.

casing at connecting well JN-2 at Moonidih, and for one connecting well at Sudamdih.

8 6” steel pipe Tee, with flanges on all three legs to be same and compatible with SDR 11, 6” HDPE pipe

6 Required to connect the UG HDPE piping system to the vertical steel casing at connecting well JN-2 at Moonidih, and for one connecting well at Sudamdih.

9 1” Schedule 40, A 106 steel pipe (2 meter sticks, or longer, as convenient for shipping)

80 meters Required for Underground water “Drain Traps”.

10 1” fittings to compatible with item 9 of the following types

a) elbowsb) unionsc) tees

803040

11 ½ ” Schedule 40, A 106 steel pipe (2 meter sticks, or longer, as convenient for shipping)

40 meters Required for Underground water “Drain Traps”.

12 ½ fittings compatible with item 11 of the following types

a) elbowsb) unions

4030

13 Pipe Cutter and Pipe Threader for ½”, 1” and 2” Steel Pipe

2 sets

Item 1 – Detailed specifications:

Vacuum condensate drain traps

Vacuum drain traps are needed to remove condensed water from within a gas pipeline that is operated under a vacuum and release the water to atmospheric conditions. The pipeline may have as much as 6” Hg vacuum relative to the ambient pressure.

The drain trap shall have the capability to drain at least 250 pounds per hour when the bottom of the pipeline containing the water is at the same elevation as the top of the drain trap. The height of the trap shall be less than 14 inches.

The water inlet and discharge lines to/from the traps shall include check valves that only allow water flow in one direction. All wetted surfaces of the traps shall be made of bronze, stainless steel, inconel or equivalent corrosion resistant materials. The drain trap shall have a sight glass that allows visual determination of the water level within the drain trap.

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Compressed nitrogen is available for operation of the drain traps. The compressed nitrogen is available at pressures up to 100 psig. Supplier shall specify the required pressure for the operating gas and the amount of operating gas consumed relative to the water drainage rate.

All connections to/from the traps, including gas pipeline, pressurized nitrogen supply and any other pipe connections shall be NPT thread. Pipe fitting sizes shall be ½” to 1” Schedule 40 steel pipe.

The equipment shall be capable of operation in an ambient and water temperature range from 2oC to 40oC.

Some of the vacuum drain traps will be operated in an underground coal mine where they may be exposed to dust and some corrosive fluids. The supplier shall comment on the requirement to protect the equipment in such operating conditions. Coal mine regulations do not allow any exposed surfaces on the equipment to be made of aluminum.

There may be coal fines that come out of the gas pipeline with the condensed water. The supplier shall comment on the necessity for providing a filter to remove such solid material from the water before it enters the drain trap.

Supplier shall provide three (3) copies of operating and maintenance manuals for the vacuum drain traps. These are to be provided at the same time as the equipment is shipped, either with the equipment or sent separately.

Pressure condensate drain traps

Pressure drain traps are needed to remove condensed water from within a gas pipeline that is operated under an operating pressure range from 0 psig to 50 psig. The equipment shall be capable of withstanding pressures up to 150 psig.

All connections to or from each trap shall be NPT thread. The size of the connection from the pipeline to the trap

shall be 1“ Schedule 40 steel pipe. The water discharge from the trap shall be 1” Schedule 40 steel pipe.

The equipment shall be capable of operation in an ambient and water temperature range from 2oC to 50oC.

The drain trap shall have a maximum storage capacity of 15 gallons. It may consist of a storage tank and an external water discharge control or a single-vessel integrated system. The water discharge shall be controlled in such a manner as to maintain a set water level in the storage tank. This level control may be a float or other system that the supplier deems able to maintain a set level in the storage tank while under the gas pipeline operating pressure.

The water inlet to the trap shall include check valves that only allow water flow in one direction. There shall also be a manual ball valve on the inlet line to the trap to allow for easy removal of the trap for maintenance.

All wetted surfaces of the traps shall be made of bronze, galvanized steel, aluminum, stainless steel, inconel or equivalent corrosion resistant materials.

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Supplier shall provide three (3) copies of operating and maintenance manuals for the pressure drain traps. These are to be provided at the same time as the equipment is shipped, either with the equipment or sent separately.

4 EQUIPMENT MANUFACTURERS/SUPPLIER’S GENERAL RESPONSIBILITIES

4.1 Procedure governing installation of Electrical Equipments in Hazardous Areas.

For Surface Drilling Equipment:

Electrical Equipments intended to be used in Zone I and Zone 2 Hazardous areas of oil mines are required to be approved by Director General, Mines Safety (DGMS) as per Oil Mines Regulations, 1984 and Indian Electricity Rules, 1956. The following procedure is followed as per Gazette Notification:

Area of Operation Physical location Type of Electrical EquipmentsZone ‘O’ hazardous area Bore-hole only Intrinsically Safe Electrical

equipments are permitted Zone ‘1’ hazardous area Drilling and work over

Recovery wells, gas processing and storage facilities.

(1) Flame proof Equipment – IS 2148-1981(2) Intrinsically Safe Equipment – IS-5780-1986(3) Pressurised Apparatus – IS 7389 (Part I)-1976(4) Sand Filled Apparatus – IS-7724-1975

Zone ‘2’ hazardous Extends 8 mtrs. vertically above and 16 mtrs. horizontally from well head mud tank, mud pump, etc.

(1) Flame Proof – IS-2148-1981(2) Intrinsically Safe Equipment – IS-5780-1980(3) Increased Safety Equipment – IS 6381-1972(4) Pressurised Apparatus – IS=7389 (Part I)-1976(5) Sand Filled Apparatus – IS-7724-1975(6) Oil Immersed Apparatus – IS-7693-1975

From practical consideration, flame-proof and intrinsically safe equipments are generally used in Zone ‘1’ hazardous area and flameproof, intrinsically safe, increased safety and pressurised equipments are used in Zone ‘2’ hazardous areas.

For underground electrical equipments:

Provisions of Coal Mines Regulation, 1957 and Electricity Rules, 1956 will apply. Normally all equipments have to be flame-proof normally using 550 volts (50 cycles per second) and or otherwise intrinsically safe.

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Underground Mechanical Components:

(a) Exposed part of any equipment shall not be manufactured by light metal alloy like aluminium, etc. for use in the underground.

(b) HDPE pipes shall be fire-resistant and anti-static.

The prototype of the equipments are required to be tested at any of the following Laboratories:

(xiii) Central Mining Research Institute, (CMRI) Dhanbad(xiv) ERTL, East – Electronics Regional Test Laboratory, Salt Lake, Calcutta(xv) Central Power Research Institute, Bangalore.

One original copy and one certified copy (by the Laboratory) of the test certificate along with a certified copy of the drawing is required to be submitted to DGMS with the format of application signed by the Managing Director/Director of the Company or an official not below the rank of General Manager duly authorised by the Managing Director/Director. If the documents are in order, the field trial permission is granted within three months with validity of one year. After successful field trial, regular approval is granted for three years.

4.2 Other Responsibilities:

All engineering designs, specifications, technical documentation and other relevant documents should be adapted for use at the nominated sites and copies provided to the project authorities in the English language.

The Equipment manufacturers/supplier is responsible for ensuring that all machines and equipment are new, supplied direct from the manufacturers’ works, are of latest state of the art technology, free of defects.

The Equipment manufacturers/supplier is responsible for the control of all work, services and supplies which are executed by its sub-equipment manufacturer(s)/ supplier(s).

The Equipment manufacturers/supplier is responsible for obtaining relevant safety certificates and issuing of relevant safety documentation and obtain approval from DGMS of (a) all underground equipment under the Indian Coal Mines Regulations, 1957 and Indian Electricity Rules, 1956; (b) for all the equipment used on surface under the Indian Oil Mines Regulations, 1984 (along with Amendment of 1996). The Project authorities shall provide all assistance to the equipment manufacturers/supplier to facilitate obtaining the relevant approvals. No part shipment of the equipment shall be made by the equipment manufacturers /supplier (except for testing and approval of DGMS), till DGMS approval for the relevant components of the equipments both for Surface and Underground has been obtained from DGMS for use in India.

One number Prototype of each variety of electrical component needs to be tested in India for the purpose of DGMS approval.

The Equipment manufacturers/ supplier’s responsibilities are valid up to the expiration of equipment guarantee periods and he is required to rectify defects arising from original design, manufacturing or materials of construction.

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Infrastructure requirement of the equipment manufacturers/supplier, like installation area, water requirement, electricity requirement and other office space requirement shall be clearly indicated for the counter part agency to consider and arrange.

Manufacturers/supplier to guarantee supply of all spares for the life of the Project. If equipment becomes obsolete then manufacturers/supplier will hand over the design drawings of all spare parts to the Counter-part agency.

5 TERMS OF GUARANTEES

The terms of mechanical, electrical, performance and safety guarantee for the equipment supplied should be quoted in accordance with international practice and standards. The duration of the guarantee should be at least 12 months from the date of final acceptance of the equipment on site. (Note that final acceptance will take place after installation and commissioning and training of operatives, performance demonstration and issuing of any relevant safety documentation).

The Equipment manufacturers/supplier shall guarantee that the scope of supply and services is complete and fit for the purpose for which it is intended in line with the requirements laid out in Section 3 above.

6 PROVISIONAL TIME SCHEDULE

The Equipment manufacturers/supplier shall provide a provisional time schedule starting from contract award and covering all foreseen activities such as delivery of all major items of equipment, installation, commissioning, training, performance demonstration, handover, and after sales service and any post contract monitoring.

Any preliminary site work required by the Equipment supplier prior to delivery should be clearly indicated and scheduled.

All documentation related to preliminary site work, delivery and installation should be delivered within sufficient time for the Counterpart to carry out work required of him.

3 PROVISIONAL SERVICES TO BE SUPPLIED BY THE COUNTERPART

Power supply at site – shall be made available by the Project at site. Normal availability of power would be 550/440 volts at 50 cycles. Lighting voltage would be 220 Volts on the surface and 110 Volts in the Underground. 3.3 kV is available at Sudamdih and 6.6 kV would be available at Moonidih mines.

Water – reasonably clean will be provided.

Provide normal tools and tackles and Workshop support.

Facilities required for the purpose of erecting the equipment, and office space will be made available upon request.

8 REPORTING

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Progress reports every two months are required based on the work plan/time schedules submitted in the offer. These should be produced through the period from contract award to handover of the equipment at site. They should be brief in the main text, but supported as necessary by documents produced or issued in the course of the work (agreements, drawings, certificates etc).

A draft final report shall be allowed for in the time schedule and submitted to the project authorities for comment. Comments will be provided within 1 month to enable a Final report to be produced.

All formal written or electronic communications between Equipment supplier and Counterpart should be copied to UNIDO.

Any agreement between Equipment supplier and Counterpart must first be cleared by UNIDO before implementation. Failure to do so may abrogate other conditions of contract and result in reduced, delayed or loss of payment.

9 EQUIPMENT SUPPLIERS PERSONNEL

Key personnel who are expected to come to site are to be specified in the offer and CV’s included

10 LANGUAGE

The working language for the offer and all documentation and communications shall be English.

11 CLARIFICATIONS AND QUERIES

All clarifications and queries related to these Terms of Reference should be addressed only to the UNIDO official listed in the covering letter by fax or by email. Bidders should note that UNIDO reserves the right to publish all questions.

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