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

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 on _nngautam@mantraonline.com
2 BACKGROUND

2.1 Methane as a Greenhouse gas and coals 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:
1. Strengthening and increasing the capacity of The Coal Mine Planning and
Design Institute (CMPDI), the mine owners, who are the Bharat Coking Coal

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 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.

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

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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 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. Description of Items Quantity

No.
1. 1A Nitrogen Cylinder 24 (Moonidih-12, Sudamdih-12)
2. Gas Regulators 24 (Moonidih-12, Sudamdih-12)
3. Adapters to connect regulator outlet to 4 (Moonidih-2, Sudamdih-2)
PVC pipe
4. Safety Line Sch 40 PVC pipe per
ASTM D1785, Type 1, Grade 1
Compound :
a) Moonidih Mine Safety Line
Piping :
Underground - D Panels to JN-2 1600 meters
Surface To collection station- II 1650 meters
b) Sudamdih Mine Safety Line
Piping :
Underground 840 meters
Surface- 310 meters
Sub Total (a + b) 4400 meters
Add 5% overage 220 meters
Total Sch 40 PVC piping 4620 meters

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 (standard length = 20 ft/6.1 metres) (758 sticks at 6.1 meters/sticks)
5. Valves & Fitting, sch 40 PVC :
(i) Couplings, Socket X Socket 800
(ii) Female Adapters, Socket X 20
Female Thread
(iii) Male Adapters, Male 20
Thread X Socket
(iv) Caps, Socket 20
(v) Plugs, Spigot 20
(vi) 45 deg Ells, Socket X 50
Socket
(vii) 90 Deg Ells, Socket X 50
Socket
(viii) 900 deg Ells, Socket X 50
Thread
(ix) Tees, Socket X Socket X 20
Socket
(x) Tees, Socket X Socket X 20
Thread
(xi) Unions, Socket X Socket 20
(xii) Ball Valves, Socket X 20
Socket

6. Other fittings :
(i) Female Adapters, Socket X 20
Female Thread
7. Other Materials :
(i) Pressure Gauges, 0 to 150 psi, 20
pipe
(ii) 1 qt cans of PVC cement, 20
regular set
(iii) PVC Pipe Cutters 5
(iv) Nylon cable ties 24 long or
more 4000
(v) Tool for attaching Nylon cable 4
ties
(vi) Duct Tape, 2 wide X 60 yards 10
long
(vii) Stainless Steel cable ties for 1000
attaching ( skin to skin ) 10
gauge copper wire to the
surface of the 6 nominal
dia. HDPE pipe
(viii) Tool for attaching stainless 2
steel cable ties
8. Pressure switch plus 3-way control 2 (Moonidih-1, Sudamdih-1)
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.

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4 EQUIPMENT MANUFACTURERS/SUPPLIERS 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 Equipments

Zone O hazardous Bore-hole only
area
Zone 1 hazardous Drilling and work over
area Recovery wells, gas
processing and storage
facilities.
Zone 2 hazardous Extends 8 mtrs. vertically
above and 16 mtrs.
horizontally from well head
mud tank, mud pump, etc.
Intrinsically Safe Electrical
equipments are permitted
(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
(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:

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 (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.

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/ suppliers 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.

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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.

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).

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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
CVs 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.