Atlantic Wind Lease Sale 7 (ATLW-7) for Commercial Leasing for Wind Power on the Outer Continental Shelf Offshore Kitty Hawk, North Carolina-Final Sale Notice; MMAA104000, 5600-5606 [2017-01059]
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(JBLM YTC), and the U.S. Bureau of
Reclamation (Reclamation) for the
construction, operation, and
maintenance of a 230 kV transmission
line. The transmission line would run
from Pacific Power’s Pomona Heights
Substation located east of Selah,
Washington, in Yakima County to the
Bonneville Power Administration (BPA)
Vantage Substation located just east of
the Wanapum Dam in Grant County,
Washington. Pacific Power’s stated
interest in the new transmission line is
to reduce the risk of service
interruptions and ensure continued
reliable, efficient, and coordinated
service to the Yakima Valley.
The NEPA analysis for the Project
fully describes Project alternatives;
identifies direct, indirect, and
cumulative impacts; and identifies
mitigation measures that could avoid,
minimize, or offset potential impacts. In
accordance with 40 CFR 1501.5, the
BLM was the Lead Agency for
conducting the NEPA analysis. The
cooperating agencies (40 CFR parts
1508.5 and 1501.6) in the NEPA process
were the JBLM YTC; Reclamation; BPA;
Federal Highway Administration; U.S.
Fish and Wildlife Service; Washington
Department of Archaeology and Historic
Preservation; Washington Department of
Fish and Wildlife; Washington
Department of Natural Resources;
Washington State Department of
Transportation; and Grant, Kittitas, and
Yakima Counties. To address any
unavoidable impacts of the Project to
Greater Sage-grouse, a project-specific
Framework for Development of a
Greater Sage-Grouse Compensatory
Mitigation Plan (Mitigation Framework)
was developed. The Mitigation
Framework provides the guidance to
facilitate Pacific Power’s development
of a Greater Sage-grouse Compensatory
Mitigation Plan. The Mitigation
Framework is included as an appendix
in the Final Environmental Impact
Statement (EIS) and in the ROD.
Pursuant to NEPA implementing
regulation 40 CFR 1501.7, the Notice of
Intent (NOI) to prepare an EIS for the
proposed Project was published in the
Federal Register on January 5, 2010 (75
FR 429). The publication of the NOI
initiated the public scoping comment
period that concluded on March 8,
2010.
On January 4, 2013, the BLM
published the Notice of Availability
(NOA) for the Draft EIS in the Federal
Register (78 FR 756), starting the 90-day
public comment period. As a result of
the comments received at public
meetings and submitted in writing
during the Draft EIS comment period, a
new alternative route, the New Northern
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Route (NNR) Alternative, was identified.
The NNR Alternative is 40.5 miles in
length. The BLM determined that a
Supplemental Draft EIS was required in
order to assess the effects of the NNR
Alternative. On January 2, 2015, the
BLM published the NOA for the
Supplemental Draft EIS in the Federal
Register (80 FR 50).
The BLM was the Lead Federal
Agency for the NEPA analysis process
and preparation of the EIS. On October
21, 2016, the BLM published the NOA
for the Final EIS in the Federal Register
(81 FR 72821). Printed and electronic
copies of the Draft EIS, Supplemental
Draft EIS, and Final EIS are available at
the Spokane District Office and,
electronically, on the National
ePlanning NEPA Register at: https://
1.usa.gov/1S4ssrO.
The BLM purpose and need for the
action is to respond to a ROW
application submitted under Section
501 of the Federal Land Policy and
Management Act (43 U.S.C. 1761(a)) to
use public lands for an electric
transmission system and related
facilities. The BLM adopted the Agency
Preferred Alternative, the NNR
Alternative—Overhead Design Option,
from the Final EIS. The ROD approves
issuance of a ROW to Pacific Power over
approximately 4 miles of land
administered by the BLM crossed by the
NNR Alternative—Overhead Design
Option in Yakima and Kittitas Counties.
The BLM Coeur d’Alene and Spokane
District Manager signed the ROD, which
constitutes the final decision of the BLM
and makes the decision to issue a ROW
effective immediately. Copies of the
ROD are available for public inspection
during normal business hours at the
following BLM offices: Bureau of Land
Management, Wenatchee Field Office,
915 Walla Walla Ave., Wenatchee,
Washington; and Bureau of Land
Management, Spokane District Office,
1103 N. Fancher Rd., Spokane Valley,
Washington.
Appeal Information: This decision
may be appealed to the Interior Board of
Land Appeals in accordance with the
regulations contained in 43 CFR part 4.
Appeal and stay procedures are outlined
in Form 1842–1.
Authority: 40 CFR 1506.6, 40 CFR 1506.10.
Linda Clark,
Spokane District Manager and Authorizing
Officer.
[FR Doc. 2017–01000 Filed 1–17–17; 8:45 am]
BILLING CODE 4310–33–P
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DEPARTMENT OF THE INTERIOR
Bureau of Ocean Energy Management
[Docket No. BOEM–2016–0045]
Atlantic Wind Lease Sale 7 (ATLW–7)
for Commercial Leasing for Wind
Power on the Outer Continental Shelf
Offshore Kitty Hawk, North Carolina—
Final Sale Notice; MMAA104000
Bureau of Ocean Energy
Management, Interior.
ACTION: Final Sale Notice for
Commercial Leasing for Wind Power on
the Outer Continental Shelf Offshore
Kitty Hawk, North Carolina.
AGENCY:
This document is the Final
Sale Notice (FSN) for the sale of one
commercial wind energy lease on the
Outer Continental Shelf (OCS) offshore
Kitty Hawk, North Carolina, pursuant to
30 CFR 585.216. The Bureau of Ocean
Energy Management (BOEM) will offer
Lease OCS–A 0508 for sale using an
ascending bidding auction format. The
FSN contains information pertaining to
the area available for leasing, provisions
and conditions, auction details, the
lease form, criteria for evaluating
competing bids, award procedures,
appeal procedures, and lease execution.
The issuance of the lease resulting from
this sale would not constitute an
approval of project-specific plans to
develop offshore wind energy. Such
plans, if submitted by the lessee, would
be subject to subsequent environmental,
technical, and public reviews prior to a
decision to authorize any such
development.
SUMMARY:
BOEM will hold a mock auction
for the bidders starting at 9:00 a.m.
Eastern Standard Time (EST) on March
14, 2017. The monetary auction will be
held online and will begin at 9:00 a.m.
EST on March 16, 2017. Additional
details are provided in the section
entitled ‘‘Deadlines and Milestones for
Bidders.’’
DATES:
Will
Waskes, BOEM Office of Renewable
Energy Programs, 45600 Woodland
Road, VAM–OREP, Sterling, Virginia
20166,(703) 787–1320 or Will.Waskes@
boem.gov.
Authority: This FSN is published
pursuant to subsection 8(p) of the OCS
Lands Act (43 U.S.C. 1337(p)), as
amended by section 388 of the Energy
Policy Act of 2005, and the
implementing regulations at 30 CFR part
585, including sections 211 and 216.
Background: BOEM proposed this
lease sale on August 16, 2016, in the
Proposed Sale Notice and Request for
Interest (PSN/RFI) for Commercial
FOR FURTHER INFORMATION CONTACT:
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Leasing for Wind Power on the Outer
Continental Shelf (OCS) Offshore North
Carolina (Kitty Hawk), which was
published in the Federal Register (81
FR 54591). A 60-day comment period
followed. BOEM received 19 comment
submissions in response to the PSN/RFI,
which are available on regulations.gov
(Docket ID: BOEM–2016–0045) at:
https://www.regulations.gov/
docket?D=BOEM-2016-0045. BOEM has
posted a document containing responses
to comments submitted during the PSN/
RFI comment period. The document,
entitled Response to Comments, can be
found through BOEM’s Web site at:
https://www.boem.gov/North-Carolina.
In response to the Request for Interest,
BOEM received one affirmation of
interest from an existing legally,
technically, and financially qualified
entity. In addition to this affirmation of
interest, eight new entities submitted
qualifications in response to the PSN
and have been determined to be
qualified to participate in the North
Carolina (Kitty Hawk) lease sale.
Accordingly, BOEM has determined that
competitive interest in OCS–A 0508
continues to exist, and BOEM is
proceeding with a competitive leasing
process as set forth in 30 CFR 585.211
through 585.225.
Environmental Reviews
On January 23, 2015, BOEM
published a Notice of Availability
(NOA) of an Environmental Assessment
(EA) for commercial wind lease
issuance and site assessment activities
on the Atlantic OCS offshore North
Carolina with a 30-day public comment
period (80 FR 3621). In response to the
NOA, BOEM received 195 comments,
which are available at https://
www.regulations.gov, Docket No.
BOEM–2015–0001. Many of the
comments focused on mitigation
measures to protect wildlife, specifically
marine mammals. Based on the
comments received in response to the
EA, public outreach, information
meetings, and new information
received, BOEM made revisions to the
EA originally published in January
2015.As a result of the analysis in the
revised EA, BOEM issued a Finding of
No Significant Impact (FONSI) on
September 18, 2015, (80 FR 56494). The
revised EA and FONSI can be found at:
https://www.boem.gov/North-Carolina/.
In addition, BOEM has concluded
consultations under the Endangered
Species Act (ESA) with the U.S. Fish
and Wildlife Service and the National
Marine Fisheries Service (NMFS), and
under the Magnuson-Stevens Fishery
Conservation and Management Act with
NMFS, relating to the lease sale,
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associated site characterization surveys,
and subsequent site assessment
activities. In October 2016, the States of
North Carolina and Virginia concurred
with BOEM’s consistency determination
under the Coastal Zone Management
Act.
On May 23, 2013, BOEM executed a
programmatic agreement (PA) with the
State Historic Preservation Officer of
North Carolina and the Advisory
Council on Historic Preservation to
guide consultation under section 106 of
the National Historic Preservation Act
for renewable energy activities offshore
North Carolina. The PA provides for
consultation to continue throughout
BOEM’s commercial leasing process and
the decision-making process regarding
the approval, approval with
modification, or disapproval of a
lessee’s Site Assessment Plan (SAP)
and/or Construction and Operations
Plan (COP). In addition, the PA allows
for phased identification and evaluation
of historic properties. The PA can be
found at: https://www.boem.gov/SouthAtlantic-Renewable-Energy-Activities/.
On May 7, 2015, BOEM completed its
section 106 review for issuing
commercial leases within the North
Carolina Wind Energy Areas (WEA) and
published a Finding of No Historic
Properties Affected For the Issuance of
Commercial Leases within the Kitty
Hawk, Wilmington East and Wilmington
West Wind Energy Areas For Wind
Energy Development on the Outer
Continental Shelf Offshore North
Carolina. The Finding can be found at:
https://www.boem.gov/NC-WEAs-LeaseIssuance/.
Through its environmental review
process, and in consideration of the
comments received in response to the
EA, BOEM developed measures to
mitigate potential impacts from site
characterization surveys and site
assessment activities. Mitigation
measures designed to reduce or
eliminate impacts from survey activities
will be enforced through the terms,
conditions, and stipulations included in
Addendum ‘‘C’’ of Lease OCS–A 0508.
Mitigation measures related to the
installation and operation of
meteorological towers and/or buoys
would be included as terms and
conditions of the eventual lessee’s SAP
approval. This suite of mitigation
measures was developed using the best
available science, and BOEM will
continue to work with affected
stakeholders and assess ongoing and
future research relating to potential
survey, site assessment, and
construction and operations impacts,
including potential mitigation measures.
Additional environmental reviews and
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consultations will be conducted as
necessary upon receipt of the lessee’
SAP and COP.
List of Eligible Bidders: BOEM has
determined that pursuant to 30 CFR
585.106 and 107, the following entities
are legally, technically, and financially
qualified to hold a commercial wind
lease offshore North Carolina, and
therefore may participate in this lease
sale as bidders subject to meeting the
requirements outlined in this notice.
Company name
Avangrid Renewables, LLC ..........
Enbridge Holdings (Green Energy) L.L.C ................................
Shell WindEnergy Inc ...................
Northland Power America Inc ......
Wind Future LLC ..........................
Outer Banks Ocean Energy, LLC
PNE Wind USA, Wind Inc ............
Statoil Wind US LLC ....................
wpd offshore Alpha LLC ...............
Company
No.
15019
15065
15066
15068
15067
15008
15056
15058
15060
Deadlines and Milestones for Bidders:
This section describes the major
deadlines and milestones in the auction
process from publication of this FSN to
execution of the lease pursuant to this
sale. These are organized into various
stages: the FSN Waiting Period;
Conducting the Auction; and From the
Auction to Lease Execution.
• FSN Waiting Period
• Bidder’s Financial Form (BFF):
Each bidder must submit a BFF to
BOEM in order to participate in the
auction. BOEM must receive each
bidder’s BFF no later than February 2,
2017. BOEM will consider extensions to
this deadline only if BOEM determines
that the failure to timely submit a BFF
was caused by events beyond the
bidder’s control. The BFF can be
downloaded at: https://www.boem.gov/
North-Carolina/. Once the BFF has been
processed, bidders may log into pay.gov
and submit a bid deposit. For purposes
of this auction, BOEM will not consider
any BFFs submitted by bidders for
previous lease sales. BOEM will only
accept an originally executed paper
copy of the BFF. The BFF must be
executed by an authorized
representative as shown on the bidder’s
legal qualifications. Each bidder is
required to sign the self-certification in
the BFF, in accordance with 18 U.S.C.
1001 (Fraud and False Statements).
• Bid Deposit: Each bidder must
provide a bid deposit of $450,000 no
later than February 16, 2017, in order to
participate in the mock auction and the
monetary auction. BOEM will consider
extensions to this deadline only if
BOEM determines that the failure to
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timely submit the bid deposit was
caused by events beyond the bidder’s
control. Further information about bid
deposits can be found in the ‘‘Bid
Deposit’’ section of this notice.
• Mock Auction: BOEM will hold a
Mock Auction on March 14, 2017,
beginning at 9:00 a.m. EST. The Mock
Auction will be held online. BOEM will
contact each bidder that has timely filed
a BFF and bid deposit and provide
instructions for participation. Only
bidders that have timely submitted BFFs
and bid deposits will be permitted to
participate in the Mock Auction.
• Conducting the Auction: BOEM,
through its contractor, will hold an
auction as described in this notice.
• Auction: On March 16, 2017,
BOEM, through its contractor, will hold
the auction. The first round of the
auction will start at 9:00 a.m. EST. The
auction will proceed electronically
according to a schedule to be distributed
by the BOEM Auction Manager at the
time of the auction. BOEM anticipates
that the auction will last one business
day, but it may continue on consecutive
business days, as necessary, until the
auction ends in accordance with the
procedures described in the ‘‘Auction
Format’’ section of this notice. The
monetary bidding will end in the first
round in which BOEM receives one or
zero bids at the asking price.
• Announce Provisional Winner:
BOEM will announce the provisional
winner of the lease sale after the auction
ends.
• From the Auction to Lease Execution
• Refund Non-Winners: Once the
provisional winner has been
announced, BOEM will provide the
non-winners a written explanation of
why they did not win and return their
bid deposits.
• Department of Justice (DOJ) Review:
DOJ will have 30 days in which to
conduct an antitrust review of the
auction, pursuant to 43 U.S.C § 1337(c).
• Delivery of the Lease: BOEM will
send three lease copies to the winner,
with instructions on how to execute the
lease. The first year’s rent is due 45
calendar days after the winner receives
the lease copies for execution.
• Return the Lease: Within 10
business days of receiving the lease
copies, the auction winner must post
financial assurance, pay any
outstanding balance of its bonus bid
(i.e., winning monetary bid minus
applicable bid deposit), and sign and
return the three executed lease copies.
The winner may request extensions to
the 10-day deadline, and BOEM may
grant such extensions if BOEM
determines the delay to be caused by
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events beyond the winner’s control,
pursuant to 30 CFR 585.224(e).
• Execution of Lease: Once BOEM has
received the lease copies and verified
that all other required materials have
been received, BOEM will make a final
determination regarding its issuance of
the lease and will execute the lease, if
appropriate.
Area Offered for Leasing: The area
available for sale will be auctioned as
one lease, Lease OCS–A 0508, (Kitty
Hawk Lease Area (LA)). The Kitty Hawk
LA consists of 122,405 acres. The Kitty
Hawk LA is the same as the Kitty Hawk
WEA that BOEM announced on August
11, 2014, and published in the PSN. A
description of the Kitty Hawk LA can be
found in Addendum ‘‘A’’ of the lease,
which along with the Area
Identification announcement and PSN,
are available with this notice on the
BOEM Web site at: https://
www.boem.gov/North-Carolina/.
Map of the Area Offered for Leasing
A map of the Kitty Hawk LA, and GIS
spatial files X, Y (eastings, northings)
UTM Zone 18, NAD83 Datum, and
geographic X, Y (longitude, latitude),
NAD83 Datum can be found on BOEM’s
Web site at: https://www.boem.gov/
North-Carolina/.
A large scale map of the Kitty Hawk
LA, showing boundaries of the area with
numbered blocks, is available from
BOEM upon request at the following
address: Bureau of Ocean Energy
Management, Office of Renewable
Energy Programs, 45600 Woodland
Road, VAM–OREP, Sterling, Virginia
20166, Phone: (703) 787–1300, Fax:
(703) 787–1708.
Withdrawal of Blocks: BOEM reserves
the right to withdraw all or portions of
the Kitty Hawk LA prior to executing
the lease with the winning bidder, based
upon relevant information provided to
BOEM.
Lease Terms and Conditions: BOEM
has included terms, conditions, and
stipulations for the OCS commercial
wind lease to be offered through this
sale. After the lease is issued, BOEM
reserves the right to require compliance
with additional terms and conditions
associated with approval of a SAP or
COP. The lease is available on BOEM’s
Web site at: https://www.boem.gov/
North-Carolina/. The lease includes the
following seven attachments:
• Addendum ‘‘A’’ (Description of
Leased Area and Lease Activities);
• Addendum ‘‘B’’ (Lease Term and
Financial Schedule);
• Addendum ‘‘C’’ (Lease Specific
Terms, Conditions, and Stipulations);
• Addendum ‘‘D’’ (Project Easement);
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• Addendum ‘‘E’’ (Rent Schedule
post-COP approval);
• Appendix A to Addendum ‘‘C’’
(Incident Report: Protected Species
Injury or Mortality); and
• Appendix B to Addendum ‘‘C’’
(Required Data Elements for Protected
Species Observer Reports).
Addenda ‘‘A,’’ ‘‘B,’’ and ‘‘C’’ provide
detailed descriptions of lease terms and
conditions. Addenda ‘‘D’’ and ‘‘E’’ will
be completed at the time of COP
approval or approval with
modifications.
The most recent version of BOEM’s
renewable energy commercial lease
form(BOEM–0008) is available on
BOEM’s Web site at: https://www.boem.
gov/BOEM-OCS-Operation-Forms/.
Potential bidders should note that
BOEM and the Bureau of Safety and
Environmental Enforcement (BSEE) are
in the process of reassigning regulations
relating to safety and environmental
oversight and enforcement
responsibilities for offshore renewable
energy projects from BOEM to BSEE.
Once this administrative reassignment
is finalized, BOEM may make
ministerial and non-substantive
amendments to the lease to conform it
to the regulatory revisions.
Plans: Pursuant to 30 CFR 585.601,
the leaseholder wishing to submit a SAP
must do so within 12 months of lease
issuance. If the lessee intends to
continue its commercial lease with an
operations term, the lessee must submit
a COP at least 6 months before the end
of the site assessment term.
Financial Terms and Conditions: This
section provides an overview of the
annual payments required of the lessee
that will be fully described in the lease,
and the financial assurance
requirements that will be associated
with the lease.
Rent: Pursuant to 30 CFR 585.224(b)
and 585.503, the first year’s rent
payment of $3 per acre is due within 45
calendar days of the date the lessee
receives the lease for execution.
Thereafter, annual rent payments are
due on the anniversary of the Effective
Date of the lease (the ‘‘Lease
Anniversary’’). Once commercial
operations under the lease begin, BOEM
will charge rent only for the portions of
the lease not authorized for commercial
operations, i.e., not generating
electricity. However, instead of
geographically dividing the leased area
into acreage that is ‘‘generating’’ and
‘‘non-generating,’’ the fraction of the
lease accruing rent will be based on the
fraction of the total nameplate capacity
of the project that is not yet in
operation. This fraction is calculated by
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days following the date that the lease is
received by the lessee for execution, and
BOEM approves that application, no
rent payment will be due on the
relinquished portion of the Kitty Hawk
LA. Later relinquishments of any
portion of the Kitty Hawk LA will
reduce the lessee’s rent payments
starting in the year following BOEM’s
approval of the relinquishment.
The lessee also must pay rent for any
project easement associated with the
lease, commencing on the date that
BOEM approves the COP (or
modification thereof) that describes the
project easement. Annual rent for a
project easement that is 200 feet wide
and centered on the transmission cable
is $70 per statute mile. For any
additional acreage required, the lease
must also pay the greater of $5 per acre
per year or $450 per year.
Operating Fee: For purposes of
calculating the initial annual operating
fee payment and pursuant to 30 CFR
585.506, an operating fee rate is applied
to a proxy for the wholesale market
value of the electricity expected to be
generated from the project during its
first twelve months of operations. This
initial payment will be prorated to
reflect the period between the
commencement of commercial
operations and the Lease Anniversary.
The initial annual operating fee
payment is due within 45 days of the
commencement of commercial
operations. Thereafter, subsequent
annual operating fee payments are due
on or before each Lease Anniversary.
The subsequent annual operating fee
payments are calculated by multiplying
the operating fee rate by the imputed
wholesale market value of the projected
annual electric power production. For
the purposes of this calculation, the
imputed market value is the product of
the project’s annual nameplate capacity,
the total number of hours in the year
(8,760), the capacity factor, and the
annual average price of electricity
derived from a historical regional
wholesale power price index. For
example, the annual operating fee for a
100 MW wind facility operating at a
40% capacity (i.e., capacity factor of 0.4)
with a regional wholesale power price
of $40/MWh and an operating fee rate
of 0.02 would be calculated as follows:
Operating Fee Rate: The operating fee
rate is the share of imputed wholesale
market value of the projected annual
electric power production due to the
Office of Natural Resources Revenue as
an annual operating fee. For the Kitty
Hawk LA, BOEM will set the fee rate at
0.02 (i.e., 2%) for the entire life of
commercial operations.
Nameplate Capacity: Nameplate
capacity is the maximum rated electric
output, expressed in MW, that the
turbines of the wind facility under
commercial operations can produce at
their rated wind speed as designated by
the turbine’s manufacturer. The lessee
will specify in its COP the nameplate
capacity available at the start of each
year of commercial operations on the
lease. For example, if the lessee
specifies 20 turbines in its COP, and
each is rated by the manufacturer at 5
MW, the nameplate capacity of the wind
facility is 100 MW.
Capacity Factor: The capacity factor
compares the amount of energy
delivered to the grid during a period of
time to the amount of energy the wind
facility would have produced at full
capacity. The amount of power
delivered in a year will always be less
than the theoretical 100% capacity,
largely because of the variability of
wind speeds, transmission line loss, and
downtime for maintenance or other
purposes.
The capacity factor is expressed as a
decimal between zero and one, and
represents the share of anticipated
generation of the wind facility that is
delivered to the interconnection grid
(i.e., where the lessee’s facility
interconnects with the electric grid)
relative to the wind facility’s generation
at continuous full power operation at
nameplate capacity. BOEM has set the
capacity factor for the year in which
commercial operations commence and
the six full years thereafter at 0.4 (i.e.,
40%). At the end of the sixth year,
BOEM may adjust the capacity factor to
reflect the performance over the
previous five years based upon the
actual metered electricity generation at
the delivery point to the electrical grid.
BOEM may make similar adjustments to
the capacity factor once every five years
thereafter. The maximum change in the
capacity factor from one period to the
next will be limited to plus or minus 10
percent of the previous period’s value.
Wholesale Power Price Index:
Pursuant to 30 CFR 585.506(c)(2)(i), the
wholesale power price, expressed in
dollars per MW-hour, is determined at
the time each annual operating fee
payment is due, based on the weighted
average of the inflation-adjusted peak
and off-peak spot price indices for the
PJM Dominion zone for the most recent
year of spot price data available. The
wholesale power price is adjusted for
inflation from the year associated with
the published spot price indices to the
year in which the operating fee is to be
due, based on the lease anniversary and
using annual implicit price deflators as
reported by the U.S. Department of
Commerce, Bureau of Economic
Analysis.
Financial Assurance: Within 10
business days after receiving the lease
copies and pursuant to 30 CFR 585.515–
516, the provisional winner of the Kitty
Hawk LA must provide an initial leasespecific bond or other approved means
of meeting the lessor’s initial financial
assurance requirements. The provisional
winner may meet financial assurance
requirements by posting a surety bond
or by setting up an escrow account with
a trust agreement giving BOEM the right
to withdraw the money held in the
account on demand. BOEM encourages
the provisionally winning bidder to
discuss the financial assurance
requirement with BOEM as soon as
possible after the auction has
concluded.
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dividing the nameplate capacity not yet
authorized for commercial operations at
the time payment is due by the
anticipated nameplate capacity after full
installation of the project (as described
in the COP). The annual rent due for a
given year is then derived by
multiplying this fraction by the amount
of rent that would have been due for the
lessee’s entire LA at the rental rate of $3
per acre.
For a 122,405 acre lease (the size of
the Kitty Hawk LA), the rent payment
will be $367,215 per year if no portion
of the LA is authorized for commercial
operations. If 300 megawatts (MW) of a
project’s nameplate capacity is
operating (or authorized for operation),
and the approved COP specifies a
maximum project size of 500 MW, the
rent payment will be $146,886. This
payment is based on the 200 MW of
nameplate capacity BOEM has not yet
authorized for commercial operations.
For the above example, this would be
calculated as follows: 200MW/500MW ×
($3/acre × 122,405 acres) = $146,886.
If the lessee submits an application
for relinquishment of a portion of its
leased area within the first 45 calendar
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BOEM will base the amount of all
SAP, COP, and decommissioning
financial assurance requirements on
cost estimates for meeting all accrued
lease obligations at the respective stages
of development. The required amount of
supplemental and decommissioning
financial assurance will be determined
on a case-by-case basis.
The financial terms described above
can be found in Addendum ‘‘B’’ of the
lease, which BOEM has made available
with this notice on its Web site at:
https://www.boem.gov/North-Carolina/.
Bidder’s Financial Form: Each bidder
must fill out the BFF referenced in this
FSN. BOEM has also made a copy of the
form available with this notice on its
Web site at: https://www.boem.gov/
North-Carolina/. BOEM recommends
that each bidder designate an email
address in its BFF that the bidder will
then use to create an account in pay.gov
(if it has not already done so).
BOEM will not consider BFFs
submitted by bidders for previous lease
sales to satisfy the requirements of this
auction. BOEM will also only consider
BFFs submitted after the deadline if
BOEM determines that the failure to
timely submit the BFF was caused by
events beyond the bidder’s control.
BOEM will only accept an original,
executed paper copy of the BFF. The
BFF must be executed by an authorized
representative who has been identified
in the qualifications package on file
with BOEM as authorized to bind the
company.
Bid Deposit: A bid deposit is an
advance cash payment submitted to
BOEM in order to participate in the
auction. After creating an account in
pay.gov (if necessary), bidders may use
the Bid Deposit Form on the pay.gov
Web site to leave a deposit. Each bidder
must submit a bid deposit of $450,000
no later than February 16, 2017. Any
bidder who fails to submit the bid
deposit by this deadline may be
disqualified from participating in the
auction.
Following the auction, bid deposits
will be applied against bonus bids or
other obligations owed to BOEM. If the
bid deposit exceeds a bidder’s total
financial obligation, the balance of the
bid deposit will be refunded to the
bidder. BOEM will refund bid deposits
to non-winners once BOEM has
announced the provisional winner.
If BOEM offers a lease pursuant to a
provisionally winning bid, and that
bidder fails to timely return the signed
lease form, establish financial
assurance, and/or pay the balance of its
bid, BOEM will retain the bidder’s
$450,000 bid deposit. BOEM reserves
the right to determine which bid would
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have won in the absence of the bid
previously-determined to be the
winning bid, and to offer a lease
pursuant to this next highest bid.
Minimum Bid: The minimum bid is
the lowest bid BOEM will accept as a
winning bid and it is where BOEM will
start the monetary bidding. BOEM has
established a minimum bid of $2.00 per
acre, or $244,810, for this lease sale.
Auction Procedures
Ascending Bidding With Cash Bid
Variable
As authorized under 30 CFR
585.220(a)(2) and 585.221(a)(1), BOEM
will use an ascending bidding auction
with cash as the bid variable for this
sale. Using an online bidding system to
host the auction, BOEM will start the
bidding for Lease OCS–A 0508 at
$244,810, and increase that price
incrementally until no more than one
active bidder remains in the auction.
The Auction
The auction will be conducted in a
series of rounds. At the start of each
round, BOEM will state an asking price
for the LA. If a bidder is willing to meet
that asking price for the LA, it will
indicate this by submitting a bid equal
to the asking price, i.e., a live bid.
To participate in any round of the
auction, a bidder must have submitted
a live bid in the previous round. As long
as there are two or more live bids for the
LA, the auction will proceed to the next
round. Between rounds, BOEM will
raise the asking price for the LA by an
increment that it determines
appropriate. Asking price increments
are within BOEM’s sole discretion, but
may be based on a number of factors,
including the number of bidders still
active in the auction and BOEM’s best
estimate of how many rounds may
remain before the auction is resolved.
As the auction proceeds, a bidder will
retain its eligibility to continue bidding
as long as that bidder submitted a live
bid in the previous round. Between
rounds, BOEM will release information
indicating the number of live bids in the
previous round of the auction (i.e., the
level of demand) and the asking price in
the upcoming round of the auction.
Bidders may be bound by any of their
bids until the auction results are
finalized.
Exit Bidding
In any round after the first round of
the auction, a bidder may submit an exit
bid that is higher than the previous
round’s asking price, but less than the
current round’s asking price. If a bidder
submits an exit bid, it is not eligible to
participate in any subsequent rounds of
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the auction. During the auction, exit
bids will be seen only by BOEM and not
by other bidders.
If the LA receives only exit bids in a
round, no bidders will be eligible to bid
in the next round, and the auction will
conclude.
Determining the Provisional Winner
The auction will end in the first
round in which at most one live bid is
received. If there is one live bid in the
final round, that bid is the provisionally
winning bid. If there are no live bids,
the highest exit bid is the provisionally
winning bid. If there is a tie for the
highest exit bid, BOEM’s tie-breaking
procedures will resolve the tie. If BOEM
receives no live or exit bids, then there
is a tie among all bidders that had
submitted live bids in the previous
round and BOEM’s tie-breaking
procedures will determine the
provisionally winning bid.
Ties are resolved by a random
process. The auction system generates a
random number for each bidder. In the
event of a tie, these numbers are
compared, and the tied bidder with the
highest random number is deemed the
provisional winner.
Additional Information Regarding the
Auction Format
Bidder Authentication
For the online auction, BOEM will
require two-factor authentication. After
BOEM has processed the bid deposits,
the auction contractor sends several
bidder authentication packages to the
bidders. One package will contain
digital authentication tokens necessary
for allowing access to the auction Web
site. As a general practice, tokens are
mailed to the Primary Point of Contact
indicated on the BFF. This individual is
responsible for distributing the tokens to
the individuals authorized to bid for
that company. Bidders are to ensure that
each token is returned within three
business days following the auction. An
addressed, stamped envelope will be
provided to facilitate this process. In the
event that a bidder fails to submit a bid
deposit or does not participate in the
auction, BOEM will de-activate that
bidder’s tokens and login information,
and the bidder will be asked to return
its tokens.
The second package contains login
credentials for authorized bidders. The
login credentials are mailed to the
address provided in the BFF for each
authorized individual. Bidders can
confirm these addresses by calling 703–
787–1320. This package will contain
user login information and instructions
for accessing the Bidder Manual for the
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auction system, the Auction System
Technical Supplement (ASTS) and the
Alternative Bidding Form, all of which
are available on BOEM’s Web site at:
https://www.boem.gov/North-Carolina/.
The login information, along with the
tokens, will be tested during the Mock
Auction.
Timing of Auction
The auction will begin at 9:00 a.m.
EST on March 16, 2017. Bidders may
log in as early as 8:30 a.m. on that day.
We recommend that bidders log in
earlier than 9:00 a.m. on that day to
ensure that any login issues are resolved
prior to the start of the auction. Once
bidders have logged in, they should
review the auction schedule, which lists
the anticipated start times, end times,
and recess times of each round in the
auction. Each round is structured as
follows:
• Round bidding begins;
• Bidders enter their bids;
• Round bidding ends and the Recess
begins;
• During the Recess, previous Round
results are posted;
• Bidders review the previous Round
results and prepare their next Round
bids; and
• Next Round bidding begins.
The first round will last about 30
minutes, though subsequent rounds may
be shorter. Recesses are anticipated to
last approximately 10 minutes. The
description of the auction schedule
included with this FSN is tentative.
Bidders should consult the auction
schedule on the bidding Web site during
the auction for updated times. Bidding
may continue until about 6:00 p.m. each
day. BOEM anticipates that the auction
will last one business day, but bidders
are advised to prepare to continue
bidding for additional business days as
necessary to resolve the auction.
BOEM and the auction contractors
will use the auction platform messaging
service to keep bidders informed on
issues of interest during the auction. For
example, BOEM may change the
schedule at any time, including during
the auction. When BOEM changes the
schedule during an auction, it uses the
messaging feature to notify bidders that
a revision has been made, and directs
bidders to the relevant page. BOEM also
uses the messaging system for other
changes and updates during the auction.
Bidders may place bids at any time
during the round. At the top of the
bidding page, a countdown clock shows
how much time remains in the round.
Bidders have until the scheduled time
to place bids. Bidders should do so
according to the procedures described
in this notice, and the ASTS. No
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information about the round results is
available until the round has closed and
results have been posted, so there is no
strategic advantage to placing bids early
or late in the round.
The timing of the auction will be
elaborated on and clarified in the ASTS.
The ASTS describes auction procedures
that are incorporated by reference in
this notice, unless the procedures
described in the ASTS directly
contradict this notice. In the event of an
inconsistency between the ASTS and
the FSN, the FSN is controlling.
Prohibition on Communications
Between Bidders During Auction
During the auction, bidders are
prohibited from communicating with
each other regarding their participation
in the auction. Additionally, during the
auction, bidders are prohibited from
communicating to the general public,
including, but not limited to, through
social media, updated Web sites, or
press releases, regarding any aspect of
their participation or lack thereof in the
auction.
Alternate Bidding Procedures
Alternate Bidding Procedures enable a
bidder who is having difficulty
accessing the Internet to submit its bid
via fax using an Alternate Bidding Form
available on BOEM’s Web site at: https://
www.boem.gov/North-Carolina/.
In order to be authorized to use an
Alternate Bidding Form, a bidder must
call the help desk number listed in the
Auction Manual before the end of the
round. BOEM will authenticate the
caller to ensure he/she is authorized to
bid on behalf of the bidder. The bidder
must explain the reasons for which he/
she is forced to place a bid using the
Alternate Bidding Procedures. BOEM
may, in its sole discretion, permit or
refuse to accept a request for the
placement of a bid using the Alternate
Bidding Procedures.
Rejection or Non-Acceptance of Bids:
BOEM reserves the right and authority
to reject any and all bids that do not
satisfy the requirements and rules of the
auction, the FSN, or applicable
regulations and statutes.
Anti-Competitive Review: Bidding
behavior in this sale is subject to
Federal antitrust laws. Accordingly,
following the auction, but before the
acceptance of bids and the issuance of
leases, BOEM will ‘‘allow the Attorney
General, in consultation with the
Federal Trade Commission, 30 days to
review the results of the lease sale.’’ 43
U.S.C. 1337(c). If a bidder is found to
have engaged in anti-competitive
behavior in connection with its
participation in the competitive bidding
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5605
process, BOEM may reject the
provisionally winning bid. Compliance
with BOEM’s auction procedures and
regulations is not an absolute defense to
violations of antitrust laws.
Anti-competitive behavior
determinations are fact-specific.
However, such behavior may manifest
itself in several different ways,
including, but not limited to:
• An express or tacit agreement
among bidders not to bid in an auction,
or to bid a particular price;
• An agreement among bidders not to
bid;
• An agreement among bidders not to
bid against each other; or
• Other agreements among bidders
that have the potential to affect the final
auction price.
BOEM will decline to award a lease
pursuant to 43 U.S.C. 1337(c) if the
Attorney General, in consultation with
the Federal Trade Commission,
determines that awarding the lease
would be inconsistent with the antitrust
laws.
For more information on whether
specific communications or agreements
could constitute a violation of Federal
antitrust law, please see: https://
www.justice.gov/atr/public/businessresources.html, or consult legal counsel.
Process for Issuing the Lease: Once all
post-auction reviews have been
completed to BOEM’s satisfaction,
BOEM will issue three unsigned copies
of the lease to the provisionally winning
bidder. Within 10 business days after
receiving the lease copies, the
provisionally winning bidder must:
1. Sign and return the lease copies on
the bidder’s behalf;
2. File financial assurance, as required
under 30 CFR 585.515–537; and
3. Pay by electronic funds transfer
(EFT) the balance (if any) of the bonus
bid (winning bid less the bid deposit).
BOEM requires bidders to use EFT
procedures (not pay.gov, the Web site
bidders used to submit bid deposits) for
payment of the balance of the bonus bid,
following the detailed instructions
contained in the ‘‘Instructions for
Making Electronic Payments’’ available
on BOEM’s Web site at: https://
www.boem.gov/North-Carolina/.
BOEM will not execute a lease until
the three requirements above have been
satisfied, BOEM has accepted the
provisionally winning bidder’s financial
assurance pursuant to 30 CFR 585.515,
and BOEM has processed the
provisionally winning bidder’s
payment.
BOEM may extend the 10 business
day deadline for signing the lease, filing
the required financial assurance, and/or
paying the balance of the bonus bid if
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BOEM determines the delay was caused
by events beyond the provisionally
winning bidder’s control.
If the provisionally winning bidder
does not meet these requirements or
otherwise fails to comply with
applicable regulations or the terms of
the FSN, BOEM reserves the right not to
issue the lease to that bidder. In such a
case, the provisionally winning bidder
will forfeit its bid deposit. In such an
event, BOEM reserves the right to
identify the next highest bid submitted
during the lease sale and offer the lease
pursuant to that bid.
Within 45 calendar days of the date
that the provisionally winning bidder
receives copies of the lease, it must pay
the first year’s rent using the pay.gov
Renewable Energy Initial Rental
Payment form available at: https://
www.pay.gov/public/form/start/
27797604/. Subsequent annual rent
payments must be made following the
detailed instructions contained in the
‘‘Instructions for Making Electronic
Payments,’’ available on BOEM’s Web
site at: https://www.boem.gov/NorthCarolina/.
Non-Procurement Debarment and
Suspension Regulations: Pursuant to
regulations at 43 CFR part 42, subpart C,
an OCS renewable energy lessee must
comply with the Department of the
Interior’s non-procurement debarment
and suspension regulations at 2 CFR 180
and 1400. The lessee must also
communicate this requirement to
persons with whom the lessee does
business relating to this lease, by
including this term as a condition in
their contracts and other transactions.
Force Majeure: The Program Manager
of BOEM’s Office of Renewable Energy
Programs has the discretion to change
any auction details specified in the FSN,
including the date and time, in case of
a force majeure event that the Program
Manager deems may interfere with a fair
and proper lease sale process. Such
events may include, but are not limited
to: natural disasters (e.g., earthquakes,
hurricanes, floods, blizzards), wars,
riots, acts of terrorism, fire, strikes, civil
disorder or other events of a similar
nature. In case of such events, BOEM
will notify all qualified bidders via
email or phone, or through the BOEM
Web site at: https://www.boem.gov/
Renewable-Energy-Program/index.aspx.
Bidders should call 703–787–1320 if
they have concerns.
Appeals: The appeals procedures are
provided in BOEM’s regulations at 30
CFR 585.225 and 585.118(c). Pursuant
to 30 CFR 585.225:
(a) If BOEM rejects your bid, BOEM
will provide a written statement of the
reasons and refund any money
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deposited with your bid, without
interest.
(b) You will then be able to ask the
BOEM Director for reconsideration, in
writing, within 15 business days of bid
rejection, under 30 CFR 585.118(c)(1).
We will send you a written response
either affirming or reversing the
rejection.
The procedures for appealing final
decisions with respect to lease sales are
described in 30 CFR 585.118(c).
Protection of Privileged or
Confidential Information: BOEM will
protect privileged or confidential
information that you submit, as required
by the Freedom of Information Act
(FOIA). Exemption 4 of FOIA applies to
‘‘trade secrets and commercial or
financial information that you submit
that is privileged or confidential.’’ 5
U.S.C. 552(b)(4). If you wish to protect
the confidentiality of such information,
clearly mark it ‘‘Contains Privileged or
Confidential Information’’ and consider
submitting such information as a
separate attachment. BOEM will not
disclose such information, except as
required by FOIA. Information that is
not labeled as privileged or confidential
will be regarded by BOEM as suitable
for public release. Further, BOEM will
not treat as confidential aggregate
summaries of otherwise confidential
information.
Dated: January 10, 2017.
Walter D. Cruickshank,
Acting Director, Bureau of Ocean Energy
Management.
[FR Doc. 2017–01059 Filed 1–17–17; 8:45 am]
BILLING CODE 4310–MR–P
DEPARTMENT OF THE INTERIOR
Bureau of Reclamation
[RR85854000; XXXR4524KS;
RR.4888TR11.0040001]
Agency Information Collection
Activities Under OMB Review;
Proposed New Collection
Bureau of Reclamation,
Interior.
ACTION: Notice.
AGENCY:
The Bureau of Reclamation
has forwarded the following Information
Collection Request to the Office of
Management and Budget (OMB) for
review and approval: Collection and
Compilation of Water Pipeline Field
Performance Data (OMB Control
Number 1006–XXXX). The Information
Collection Request describes the nature
of the information collection and its
expected cost burden.
SUMMARY:
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OMB has up to 60 days to
approve or disapprove this information
collection request, but may respond
after 30 days; therefore, public comment
must be received on or before February
17, 2017.
ADDRESSES: Send written comments to
the Desk Officer for the Department of
the Interior at the Office of Management
and Budget, Office of Information and
Regulatory Affairs, via facsimile to (202)
395–5806, or email to oira_submission@
omb.eop.gov. A copy of your comments
should also be directed to Dr. Lee Sears,
Materials and Corrosion Laboratory, 86–
68540, Bureau of Reclamation, P.O. Box
25007, Denver, Colorado 80225; or via
email to lsears@usbr.gov. Please
reference OMB Control Number: 1006–
XXXX in your comments.
FOR FURTHER INFORMATION CONTACT: Dr.
Lee Sears at 303–445–2392. You may
also view the Information Collection
Request at www.reginfo.gov.
SUPPLEMENTARY INFORMATION:
DATES:
I. Abstract
In accordance with the Paperwork
Reduction Act of 1995 (44 U.S.C. 3501
et seq.), this notice announces that the
Bureau of Reclamation (Reclamation)
has obtained the services of an outside
entity to survey water utilities and
collect data on water pipeline
performance. The information being
collected is required to comply with a
request from Congress for Reclamation
to assemble data on pipeline reliability
for specific types of pipes.
From 2013 through 2015, Reclamation
worked with Water Research
Foundation and Battelle Memorial
Institute (Battelle) on a draft information
collection request (ICR) to collect highquality field performance data on
pipeline reliability for water pipelines
of different material and vintage. A
Federal Register notice announcing the
availability of this draft collection of
this information was initiated on
February 26, 2014 (79 FR 10842),
offering the public a 60-day public
comment period. A summary of
comments received during the 60-day
comment period, disposition of
comments, and revised draft
information collection were published
in the Federal Register on October 1,
2014 (79 FR 59291) and the public
comment period was reopened for
another 30 days. In response to the
public’s request for additional time to
comment, a third notice was published
in the Federal Register on October 30,
2014 (79 FR 64622), extending the
comment period another 30 days. In
total, the public was provided 120 days
to comment on the draft ICR. Also at the
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]]>Agencies
[Federal Register Volume 82, Number 11 (Wednesday, January 18, 2017)]
[Notices]
[Pages 5600-5606]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-01059]
-----------------------------------------------------------------------
DEPARTMENT OF THE INTERIOR
Bureau of Ocean Energy Management
[Docket No. BOEM-2016-0045]
Atlantic Wind Lease Sale 7 (ATLW-7) for Commercial Leasing for
Wind Power on the Outer Continental Shelf Offshore Kitty Hawk, North
Carolina--Final Sale Notice; MMAA104000
AGENCY: Bureau of Ocean Energy Management, Interior.
ACTION: Final Sale Notice for Commercial Leasing for Wind Power on the
Outer Continental Shelf Offshore Kitty Hawk, North Carolina.
-----------------------------------------------------------------------
SUMMARY: This document is the Final Sale Notice (FSN) for the sale of
one commercial wind energy lease on the Outer Continental Shelf (OCS)
offshore Kitty Hawk, North Carolina, pursuant to 30 CFR 585.216. The
Bureau of Ocean Energy Management (BOEM) will offer Lease OCS-A 0508
for sale using an ascending bidding auction format. The FSN contains
information pertaining to the area available for leasing, provisions
and conditions, auction details, the lease form, criteria for
evaluating competing bids, award procedures, appeal procedures, and
lease execution. The issuance of the lease resulting from this sale
would not constitute an approval of project-specific plans to develop
offshore wind energy. Such plans, if submitted by the lessee, would be
subject to subsequent environmental, technical, and public reviews
prior to a decision to authorize any such development.
DATES: BOEM will hold a mock auction for the bidders starting at 9:00
a.m. Eastern Standard Time (EST) on March 14, 2017. The monetary
auction will be held online and will begin at 9:00 a.m. EST on March
16, 2017. Additional details are provided in the section entitled
``Deadlines and Milestones for Bidders.''
FOR FURTHER INFORMATION CONTACT: Will Waskes, BOEM Office of Renewable
Energy Programs, 45600 Woodland Road, VAM-OREP, Sterling, Virginia
20166,(703) 787-1320 or Will.Waskes@boem.gov.
Authority: This FSN is published pursuant to subsection 8(p) of the
OCS Lands Act (43 U.S.C. 1337(p)), as amended by section 388 of the
Energy Policy Act of 2005, and the implementing regulations at 30 CFR
part 585, including sections 211 and 216.
Background: BOEM proposed this lease sale on August 16, 2016, in
the Proposed Sale Notice and Request for Interest (PSN/RFI) for
Commercial
[[Page 5601]]
Leasing for Wind Power on the Outer Continental Shelf (OCS) Offshore
North Carolina (Kitty Hawk), which was published in the Federal
Register (81 FR 54591). A 60-day comment period followed. BOEM received
19 comment submissions in response to the PSN/RFI, which are available
on regulations.gov (Docket ID: BOEM-2016-0045) at: https://www.regulations.gov/docket?D=BOEM-2016-0045. BOEM has posted a document
containing responses to comments submitted during the PSN/RFI comment
period. The document, entitled Response to Comments, can be found
through BOEM's Web site at: https://www.boem.gov/North-Carolina.
In response to the Request for Interest, BOEM received one
affirmation of interest from an existing legally, technically, and
financially qualified entity. In addition to this affirmation of
interest, eight new entities submitted qualifications in response to
the PSN and have been determined to be qualified to participate in the
North Carolina (Kitty Hawk) lease sale. Accordingly, BOEM has
determined that competitive interest in OCS-A 0508 continues to exist,
and BOEM is proceeding with a competitive leasing process as set forth
in 30 CFR 585.211 through 585.225.
Environmental Reviews
On January 23, 2015, BOEM published a Notice of Availability (NOA)
of an Environmental Assessment (EA) for commercial wind lease issuance
and site assessment activities on the Atlantic OCS offshore North
Carolina with a 30-day public comment period (80 FR 3621). In response
to the NOA, BOEM received 195 comments, which are available at https://www.regulations.gov, Docket No. BOEM-2015-0001. Many of the comments
focused on mitigation measures to protect wildlife, specifically marine
mammals. Based on the comments received in response to the EA, public
outreach, information meetings, and new information received, BOEM made
revisions to the EA originally published in January 2015.As a result of
the analysis in the revised EA, BOEM issued a Finding of No Significant
Impact (FONSI) on September 18, 2015, (80 FR 56494). The revised EA and
FONSI can be found at: https://www.boem.gov/North-Carolina/.
In addition, BOEM has concluded consultations under the Endangered
Species Act (ESA) with the U.S. Fish and Wildlife Service and the
National Marine Fisheries Service (NMFS), and under the Magnuson-
Stevens Fishery Conservation and Management Act with NMFS, relating to
the lease sale, associated site characterization surveys, and
subsequent site assessment activities. In October 2016, the States of
North Carolina and Virginia concurred with BOEM's consistency
determination under the Coastal Zone Management Act.
On May 23, 2013, BOEM executed a programmatic agreement (PA) with
the State Historic Preservation Officer of North Carolina and the
Advisory Council on Historic Preservation to guide consultation under
section 106 of the National Historic Preservation Act for renewable
energy activities offshore North Carolina. The PA provides for
consultation to continue throughout BOEM's commercial leasing process
and the decision-making process regarding the approval, approval with
modification, or disapproval of a lessee's Site Assessment Plan (SAP)
and/or Construction and Operations Plan (COP). In addition, the PA
allows for phased identification and evaluation of historic properties.
The PA can be found at: https://www.boem.gov/South-Atlantic-Renewable-Energy-Activities/.
On May 7, 2015, BOEM completed its section 106 review for issuing
commercial leases within the North Carolina Wind Energy Areas (WEA) and
published a Finding of No Historic Properties Affected For the Issuance
of Commercial Leases within the Kitty Hawk, Wilmington East and
Wilmington West Wind Energy Areas For Wind Energy Development on the
Outer Continental Shelf Offshore North Carolina. The Finding can be
found at: https://www.boem.gov/NC-WEAs-Lease-Issuance/.
Through its environmental review process, and in consideration of
the comments received in response to the EA, BOEM developed measures to
mitigate potential impacts from site characterization surveys and site
assessment activities. Mitigation measures designed to reduce or
eliminate impacts from survey activities will be enforced through the
terms, conditions, and stipulations included in Addendum ``C'' of Lease
OCS-A 0508. Mitigation measures related to the installation and
operation of meteorological towers and/or buoys would be included as
terms and conditions of the eventual lessee's SAP approval. This suite
of mitigation measures was developed using the best available science,
and BOEM will continue to work with affected stakeholders and assess
ongoing and future research relating to potential survey, site
assessment, and construction and operations impacts, including
potential mitigation measures. Additional environmental reviews and
consultations will be conducted as necessary upon receipt of the
lessee' SAP and COP.
List of Eligible Bidders: BOEM has determined that pursuant to 30
CFR 585.106 and 107, the following entities are legally, technically,
and financially qualified to hold a commercial wind lease offshore
North Carolina, and therefore may participate in this lease sale as
bidders subject to meeting the requirements outlined in this notice.
------------------------------------------------------------------------
Company
Company name No.
------------------------------------------------------------------------
Avangrid Renewables, LLC..................................... 15019
Enbridge Holdings (Green Energy) L.L.C....................... 15065
Shell WindEnergy Inc......................................... 15066
Northland Power America Inc.................................. 15068
Wind Future LLC.............................................. 15067
Outer Banks Ocean Energy, LLC................................ 15008
PNE Wind USA, Wind Inc....................................... 15056
Statoil Wind US LLC.......................................... 15058
wpd offshore Alpha LLC....................................... 15060
------------------------------------------------------------------------
Deadlines and Milestones for Bidders: This section describes the
major deadlines and milestones in the auction process from publication
of this FSN to execution of the lease pursuant to this sale. These are
organized into various stages: the FSN Waiting Period; Conducting the
Auction; and From the Auction to Lease Execution.
FSN Waiting Period
Bidder's Financial Form (BFF): Each bidder must submit a
BFF to BOEM in order to participate in the auction. BOEM must receive
each bidder's BFF no later than February 2, 2017. BOEM will consider
extensions to this deadline only if BOEM determines that the failure to
timely submit a BFF was caused by events beyond the bidder's control.
The BFF can be downloaded at: https://www.boem.gov/North-Carolina/. Once
the BFF has been processed, bidders may log into pay.gov and submit a
bid deposit. For purposes of this auction, BOEM will not consider any
BFFs submitted by bidders for previous lease sales. BOEM will only
accept an originally executed paper copy of the BFF. The BFF must be
executed by an authorized representative as shown on the bidder's legal
qualifications. Each bidder is required to sign the self-certification
in the BFF, in accordance with 18 U.S.C. 1001 (Fraud and False
Statements).
Bid Deposit: Each bidder must provide a bid deposit of
$450,000 no later than February 16, 2017, in order to participate in
the mock auction and the monetary auction. BOEM will consider
extensions to this deadline only if BOEM determines that the failure to
[[Page 5602]]
timely submit the bid deposit was caused by events beyond the bidder's
control. Further information about bid deposits can be found in the
``Bid Deposit'' section of this notice.
Mock Auction: BOEM will hold a Mock Auction on March 14,
2017, beginning at 9:00 a.m. EST. The Mock Auction will be held online.
BOEM will contact each bidder that has timely filed a BFF and bid
deposit and provide instructions for participation. Only bidders that
have timely submitted BFFs and bid deposits will be permitted to
participate in the Mock Auction.
Conducting the Auction: BOEM, through its contractor, will
hold an auction as described in this notice.
Auction: On March 16, 2017, BOEM, through its contractor,
will hold the auction. The first round of the auction will start at
9:00 a.m. EST. The auction will proceed electronically according to a
schedule to be distributed by the BOEM Auction Manager at the time of
the auction. BOEM anticipates that the auction will last one business
day, but it may continue on consecutive business days, as necessary,
until the auction ends in accordance with the procedures described in
the ``Auction Format'' section of this notice. The monetary bidding
will end in the first round in which BOEM receives one or zero bids at
the asking price.
Announce Provisional Winner: BOEM will announce the
provisional winner of the lease sale after the auction ends.
From the Auction to Lease Execution
Refund Non-Winners: Once the provisional winner has been
announced, BOEM will provide the non-winners a written explanation of
why they did not win and return their bid deposits.
Department of Justice (DOJ) Review: DOJ will have 30 days
in which to conduct an antitrust review of the auction, pursuant to 43
U.S.C Sec. 1337(c).
Delivery of the Lease: BOEM will send three lease copies
to the winner, with instructions on how to execute the lease. The first
year's rent is due 45 calendar days after the winner receives the lease
copies for execution.
Return the Lease: Within 10 business days of receiving the
lease copies, the auction winner must post financial assurance, pay any
outstanding balance of its bonus bid (i.e., winning monetary bid minus
applicable bid deposit), and sign and return the three executed lease
copies. The winner may request extensions to the 10-day deadline, and
BOEM may grant such extensions if BOEM determines the delay to be
caused by events beyond the winner's control, pursuant to 30 CFR
585.224(e).
Execution of Lease: Once BOEM has received the lease
copies and verified that all other required materials have been
received, BOEM will make a final determination regarding its issuance
of the lease and will execute the lease, if appropriate.
Area Offered for Leasing: The area available for sale will be
auctioned as one lease, Lease OCS-A 0508, (Kitty Hawk Lease Area (LA)).
The Kitty Hawk LA consists of 122,405 acres. The Kitty Hawk LA is the
same as the Kitty Hawk WEA that BOEM announced on August 11, 2014, and
published in the PSN. A description of the Kitty Hawk LA can be found
in Addendum ``A'' of the lease, which along with the Area
Identification announcement and PSN, are available with this notice on
the BOEM Web site at: https://www.boem.gov/North-Carolina/.
Map of the Area Offered for Leasing
A map of the Kitty Hawk LA, and GIS spatial files X, Y (eastings,
northings) UTM Zone 18, NAD83 Datum, and geographic X, Y (longitude,
latitude), NAD83 Datum can be found on BOEM's Web site at: https://www.boem.gov/North-Carolina/.
A large scale map of the Kitty Hawk LA, showing boundaries of the
area with numbered blocks, is available from BOEM upon request at the
following address: Bureau of Ocean Energy Management, Office of
Renewable Energy Programs, 45600 Woodland Road, VAM-OREP, Sterling,
Virginia 20166, Phone: (703) 787-1300, Fax: (703) 787-1708.
Withdrawal of Blocks: BOEM reserves the right to withdraw all or
portions of the Kitty Hawk LA prior to executing the lease with the
winning bidder, based upon relevant information provided to BOEM.
Lease Terms and Conditions: BOEM has included terms, conditions,
and stipulations for the OCS commercial wind lease to be offered
through this sale. After the lease is issued, BOEM reserves the right
to require compliance with additional terms and conditions associated
with approval of a SAP or COP. The lease is available on BOEM's Web
site at: https://www.boem.gov/North-Carolina/. The lease includes the
following seven attachments:
Addendum ``A'' (Description of Leased Area and Lease
Activities);
Addendum ``B'' (Lease Term and Financial Schedule);
Addendum ``C'' (Lease Specific Terms, Conditions, and
Stipulations);
Addendum ``D'' (Project Easement);
Addendum ``E'' (Rent Schedule post-COP approval);
Appendix A to Addendum ``C'' (Incident Report: Protected
Species Injury or Mortality); and
Appendix B to Addendum ``C'' (Required Data Elements for
Protected Species Observer Reports).
Addenda ``A,'' ``B,'' and ``C'' provide detailed descriptions of lease
terms and conditions. Addenda ``D'' and ``E'' will be completed at the
time of COP approval or approval with modifications.
The most recent version of BOEM's renewable energy commercial lease
form(BOEM-0008) is available on BOEM's Web site at: https://www.boem.gov/BOEM-OCS-Operation-Forms/.
Potential bidders should note that BOEM and the Bureau of Safety
and Environmental Enforcement (BSEE) are in the process of reassigning
regulations relating to safety and environmental oversight and
enforcement responsibilities for offshore renewable energy projects
from BOEM to BSEE. Once this administrative reassignment is finalized,
BOEM may make ministerial and non-substantive amendments to the lease
to conform it to the regulatory revisions.
Plans: Pursuant to 30 CFR 585.601, the leaseholder wishing to
submit a SAP must do so within 12 months of lease issuance. If the
lessee intends to continue its commercial lease with an operations
term, the lessee must submit a COP at least 6 months before the end of
the site assessment term.
Financial Terms and Conditions: This section provides an overview
of the annual payments required of the lessee that will be fully
described in the lease, and the financial assurance requirements that
will be associated with the lease.
Rent: Pursuant to 30 CFR 585.224(b) and 585.503, the first year's
rent payment of $3 per acre is due within 45 calendar days of the date
the lessee receives the lease for execution. Thereafter, annual rent
payments are due on the anniversary of the Effective Date of the lease
(the ``Lease Anniversary''). Once commercial operations under the lease
begin, BOEM will charge rent only for the portions of the lease not
authorized for commercial operations, i.e., not generating electricity.
However, instead of geographically dividing the leased area into
acreage that is ``generating'' and ``non-generating,'' the fraction of
the lease accruing rent will be based on the fraction of the total
nameplate capacity of the project that is not yet in operation. This
fraction is calculated by
[[Page 5603]]
dividing the nameplate capacity not yet authorized for commercial
operations at the time payment is due by the anticipated nameplate
capacity after full installation of the project (as described in the
COP). The annual rent due for a given year is then derived by
multiplying this fraction by the amount of rent that would have been
due for the lessee's entire LA at the rental rate of $3 per acre.
For a 122,405 acre lease (the size of the Kitty Hawk LA), the rent
payment will be $367,215 per year if no portion of the LA is authorized
for commercial operations. If 300 megawatts (MW) of a project's
nameplate capacity is operating (or authorized for operation), and the
approved COP specifies a maximum project size of 500 MW, the rent
payment will be $146,886. This payment is based on the 200 MW of
nameplate capacity BOEM has not yet authorized for commercial
operations. For the above example, this would be calculated as follows:
200MW/500MW x ($3/acre x 122,405 acres) = $146,886.
If the lessee submits an application for relinquishment of a
portion of its leased area within the first 45 calendar days following
the date that the lease is received by the lessee for execution, and
BOEM approves that application, no rent payment will be due on the
relinquished portion of the Kitty Hawk LA. Later relinquishments of any
portion of the Kitty Hawk LA will reduce the lessee's rent payments
starting in the year following BOEM's approval of the relinquishment.
The lessee also must pay rent for any project easement associated
with the lease, commencing on the date that BOEM approves the COP (or
modification thereof) that describes the project easement. Annual rent
for a project easement that is 200 feet wide and centered on the
transmission cable is $70 per statute mile. For any additional acreage
required, the lease must also pay the greater of $5 per acre per year
or $450 per year.
Operating Fee: For purposes of calculating the initial annual
operating fee payment and pursuant to 30 CFR 585.506, an operating fee
rate is applied to a proxy for the wholesale market value of the
electricity expected to be generated from the project during its first
twelve months of operations. This initial payment will be prorated to
reflect the period between the commencement of commercial operations
and the Lease Anniversary. The initial annual operating fee payment is
due within 45 days of the commencement of commercial operations.
Thereafter, subsequent annual operating fee payments are due on or
before each Lease Anniversary.
The subsequent annual operating fee payments are calculated by
multiplying the operating fee rate by the imputed wholesale market
value of the projected annual electric power production. For the
purposes of this calculation, the imputed market value is the product
of the project's annual nameplate capacity, the total number of hours
in the year (8,760), the capacity factor, and the annual average price
of electricity derived from a historical regional wholesale power price
index. For example, the annual operating fee for a 100 MW wind facility
operating at a 40% capacity (i.e., capacity factor of 0.4) with a
regional wholesale power price of $40/MWh and an operating fee rate of
0.02 would be calculated as follows:
[GRAPHIC] [TIFF OMITTED] TN18JA17.043
Operating Fee Rate: The operating fee rate is the share of imputed
wholesale market value of the projected annual electric power
production due to the Office of Natural Resources Revenue as an annual
operating fee. For the Kitty Hawk LA, BOEM will set the fee rate at
0.02 (i.e., 2%) for the entire life of commercial operations.
Nameplate Capacity: Nameplate capacity is the maximum rated
electric output, expressed in MW, that the turbines of the wind
facility under commercial operations can produce at their rated wind
speed as designated by the turbine's manufacturer. The lessee will
specify in its COP the nameplate capacity available at the start of
each year of commercial operations on the lease. For example, if the
lessee specifies 20 turbines in its COP, and each is rated by the
manufacturer at 5 MW, the nameplate capacity of the wind facility is
100 MW.
Capacity Factor: The capacity factor compares the amount of energy
delivered to the grid during a period of time to the amount of energy
the wind facility would have produced at full capacity. The amount of
power delivered in a year will always be less than the theoretical 100%
capacity, largely because of the variability of wind speeds,
transmission line loss, and downtime for maintenance or other purposes.
The capacity factor is expressed as a decimal between zero and one,
and represents the share of anticipated generation of the wind facility
that is delivered to the interconnection grid (i.e., where the lessee's
facility interconnects with the electric grid) relative to the wind
facility's generation at continuous full power operation at nameplate
capacity. BOEM has set the capacity factor for the year in which
commercial operations commence and the six full years thereafter at 0.4
(i.e., 40%). At the end of the sixth year, BOEM may adjust the capacity
factor to reflect the performance over the previous five years based
upon the actual metered electricity generation at the delivery point to
the electrical grid. BOEM may make similar adjustments to the capacity
factor once every five years thereafter. The maximum change in the
capacity factor from one period to the next will be limited to plus or
minus 10 percent of the previous period's value.
Wholesale Power Price Index: Pursuant to 30 CFR 585.506(c)(2)(i),
the wholesale power price, expressed in dollars per MW-hour, is
determined at the time each annual operating fee payment is due, based
on the weighted average of the inflation-adjusted peak and off-peak
spot price indices for the PJM Dominion zone for the most recent year
of spot price data available. The wholesale power price is adjusted for
inflation from the year associated with the published spot price
indices to the year in which the operating fee is to be due, based on
the lease anniversary and using annual implicit price deflators as
reported by the U.S. Department of Commerce, Bureau of Economic
Analysis.
Financial Assurance: Within 10 business days after receiving the
lease copies and pursuant to 30 CFR 585.515-516, the provisional winner
of the Kitty Hawk LA must provide an initial lease-specific bond or
other approved means of meeting the lessor's initial financial
assurance requirements. The provisional winner may meet financial
assurance requirements by posting a surety bond or by setting up an
escrow account with a trust agreement giving BOEM the right to withdraw
the money held in the account on demand. BOEM encourages the
provisionally winning bidder to discuss the financial assurance
requirement with BOEM as soon as possible after the auction has
concluded.
[[Page 5604]]
BOEM will base the amount of all SAP, COP, and decommissioning
financial assurance requirements on cost estimates for meeting all
accrued lease obligations at the respective stages of development. The
required amount of supplemental and decommissioning financial assurance
will be determined on a case-by-case basis.
The financial terms described above can be found in Addendum ``B''
of the lease, which BOEM has made available with this notice on its Web
site at: https://www.boem.gov/North-Carolina/.
Bidder's Financial Form: Each bidder must fill out the BFF
referenced in this FSN. BOEM has also made a copy of the form available
with this notice on its Web site at: https://www.boem.gov/North-Carolina/. BOEM recommends that each bidder designate an email address
in its BFF that the bidder will then use to create an account in
pay.gov (if it has not already done so).
BOEM will not consider BFFs submitted by bidders for previous lease
sales to satisfy the requirements of this auction. BOEM will also only
consider BFFs submitted after the deadline if BOEM determines that the
failure to timely submit the BFF was caused by events beyond the
bidder's control. BOEM will only accept an original, executed paper
copy of the BFF. The BFF must be executed by an authorized
representative who has been identified in the qualifications package on
file with BOEM as authorized to bind the company.
Bid Deposit: A bid deposit is an advance cash payment submitted to
BOEM in order to participate in the auction. After creating an account
in pay.gov (if necessary), bidders may use the Bid Deposit Form on the
pay.gov Web site to leave a deposit. Each bidder must submit a bid
deposit of $450,000 no later than February 16, 2017. Any bidder who
fails to submit the bid deposit by this deadline may be disqualified
from participating in the auction.
Following the auction, bid deposits will be applied against bonus
bids or other obligations owed to BOEM. If the bid deposit exceeds a
bidder's total financial obligation, the balance of the bid deposit
will be refunded to the bidder. BOEM will refund bid deposits to non-
winners once BOEM has announced the provisional winner.
If BOEM offers a lease pursuant to a provisionally winning bid, and
that bidder fails to timely return the signed lease form, establish
financial assurance, and/or pay the balance of its bid, BOEM will
retain the bidder's $450,000 bid deposit. BOEM reserves the right to
determine which bid would have won in the absence of the bid
previously-determined to be the winning bid, and to offer a lease
pursuant to this next highest bid.
Minimum Bid: The minimum bid is the lowest bid BOEM will accept as
a winning bid and it is where BOEM will start the monetary bidding.
BOEM has established a minimum bid of $2.00 per acre, or $244,810, for
this lease sale.
Auction Procedures
Ascending Bidding With Cash Bid Variable
As authorized under 30 CFR 585.220(a)(2) and 585.221(a)(1), BOEM
will use an ascending bidding auction with cash as the bid variable for
this sale. Using an online bidding system to host the auction, BOEM
will start the bidding for Lease OCS-A 0508 at $244,810, and increase
that price incrementally until no more than one active bidder remains
in the auction.
The Auction
The auction will be conducted in a series of rounds. At the start
of each round, BOEM will state an asking price for the LA. If a bidder
is willing to meet that asking price for the LA, it will indicate this
by submitting a bid equal to the asking price, i.e., a live bid.
To participate in any round of the auction, a bidder must have
submitted a live bid in the previous round. As long as there are two or
more live bids for the LA, the auction will proceed to the next round.
Between rounds, BOEM will raise the asking price for the LA by an
increment that it determines appropriate. Asking price increments are
within BOEM's sole discretion, but may be based on a number of factors,
including the number of bidders still active in the auction and BOEM's
best estimate of how many rounds may remain before the auction is
resolved.
As the auction proceeds, a bidder will retain its eligibility to
continue bidding as long as that bidder submitted a live bid in the
previous round. Between rounds, BOEM will release information
indicating the number of live bids in the previous round of the auction
(i.e., the level of demand) and the asking price in the upcoming round
of the auction. Bidders may be bound by any of their bids until the
auction results are finalized.
Exit Bidding
In any round after the first round of the auction, a bidder may
submit an exit bid that is higher than the previous round's asking
price, but less than the current round's asking price. If a bidder
submits an exit bid, it is not eligible to participate in any
subsequent rounds of the auction. During the auction, exit bids will be
seen only by BOEM and not by other bidders.
If the LA receives only exit bids in a round, no bidders will be
eligible to bid in the next round, and the auction will conclude.
Determining the Provisional Winner
The auction will end in the first round in which at most one live
bid is received. If there is one live bid in the final round, that bid
is the provisionally winning bid. If there are no live bids, the
highest exit bid is the provisionally winning bid. If there is a tie
for the highest exit bid, BOEM's tie-breaking procedures will resolve
the tie. If BOEM receives no live or exit bids, then there is a tie
among all bidders that had submitted live bids in the previous round
and BOEM's tie-breaking procedures will determine the provisionally
winning bid.
Ties are resolved by a random process. The auction system generates
a random number for each bidder. In the event of a tie, these numbers
are compared, and the tied bidder with the highest random number is
deemed the provisional winner.
Additional Information Regarding the Auction Format
Bidder Authentication
For the online auction, BOEM will require two-factor
authentication. After BOEM has processed the bid deposits, the auction
contractor sends several bidder authentication packages to the bidders.
One package will contain digital authentication tokens necessary for
allowing access to the auction Web site. As a general practice, tokens
are mailed to the Primary Point of Contact indicated on the BFF. This
individual is responsible for distributing the tokens to the
individuals authorized to bid for that company. Bidders are to ensure
that each token is returned within three business days following the
auction. An addressed, stamped envelope will be provided to facilitate
this process. In the event that a bidder fails to submit a bid deposit
or does not participate in the auction, BOEM will de-activate that
bidder's tokens and login information, and the bidder will be asked to
return its tokens.
The second package contains login credentials for authorized
bidders. The login credentials are mailed to the address provided in
the BFF for each authorized individual. Bidders can confirm these
addresses by calling 703-787-1320. This package will contain user login
information and instructions for accessing the Bidder Manual for the
[[Page 5605]]
auction system, the Auction System Technical Supplement (ASTS) and the
Alternative Bidding Form, all of which are available on BOEM's Web site
at: https://www.boem.gov/North-Carolina/. The login information, along
with the tokens, will be tested during the Mock Auction.
Timing of Auction
The auction will begin at 9:00 a.m. EST on March 16, 2017. Bidders
may log in as early as 8:30 a.m. on that day. We recommend that bidders
log in earlier than 9:00 a.m. on that day to ensure that any login
issues are resolved prior to the start of the auction. Once bidders
have logged in, they should review the auction schedule, which lists
the anticipated start times, end times, and recess times of each round
in the auction. Each round is structured as follows:
Round bidding begins;
Bidders enter their bids;
Round bidding ends and the Recess begins;
During the Recess, previous Round results are posted;
Bidders review the previous Round results and prepare
their next Round bids; and
Next Round bidding begins.
The first round will last about 30 minutes, though subsequent
rounds may be shorter. Recesses are anticipated to last approximately
10 minutes. The description of the auction schedule included with this
FSN is tentative. Bidders should consult the auction schedule on the
bidding Web site during the auction for updated times. Bidding may
continue until about 6:00 p.m. each day. BOEM anticipates that the
auction will last one business day, but bidders are advised to prepare
to continue bidding for additional business days as necessary to
resolve the auction.
BOEM and the auction contractors will use the auction platform
messaging service to keep bidders informed on issues of interest during
the auction. For example, BOEM may change the schedule at any time,
including during the auction. When BOEM changes the schedule during an
auction, it uses the messaging feature to notify bidders that a
revision has been made, and directs bidders to the relevant page. BOEM
also uses the messaging system for other changes and updates during the
auction.
Bidders may place bids at any time during the round. At the top of
the bidding page, a countdown clock shows how much time remains in the
round. Bidders have until the scheduled time to place bids. Bidders
should do so according to the procedures described in this notice, and
the ASTS. No information about the round results is available until the
round has closed and results have been posted, so there is no strategic
advantage to placing bids early or late in the round.
The timing of the auction will be elaborated on and clarified in
the ASTS. The ASTS describes auction procedures that are incorporated
by reference in this notice, unless the procedures described in the
ASTS directly contradict this notice. In the event of an inconsistency
between the ASTS and the FSN, the FSN is controlling.
Prohibition on Communications Between Bidders During Auction
During the auction, bidders are prohibited from communicating with
each other regarding their participation in the auction. Additionally,
during the auction, bidders are prohibited from communicating to the
general public, including, but not limited to, through social media,
updated Web sites, or press releases, regarding any aspect of their
participation or lack thereof in the auction.
Alternate Bidding Procedures
Alternate Bidding Procedures enable a bidder who is having
difficulty accessing the Internet to submit its bid via fax using an
Alternate Bidding Form available on BOEM's Web site at: https://www.boem.gov/North-Carolina/.
In order to be authorized to use an Alternate Bidding Form, a
bidder must call the help desk number listed in the Auction Manual
before the end of the round. BOEM will authenticate the caller to
ensure he/she is authorized to bid on behalf of the bidder. The bidder
must explain the reasons for which he/she is forced to place a bid
using the Alternate Bidding Procedures. BOEM may, in its sole
discretion, permit or refuse to accept a request for the placement of a
bid using the Alternate Bidding Procedures.
Rejection or Non-Acceptance of Bids: BOEM reserves the right and
authority to reject any and all bids that do not satisfy the
requirements and rules of the auction, the FSN, or applicable
regulations and statutes.
Anti-Competitive Review: Bidding behavior in this sale is subject
to Federal antitrust laws. Accordingly, following the auction, but
before the acceptance of bids and the issuance of leases, BOEM will
``allow the Attorney General, in consultation with the Federal Trade
Commission, 30 days to review the results of the lease sale.'' 43
U.S.C. 1337(c). If a bidder is found to have engaged in anti-
competitive behavior in connection with its participation in the
competitive bidding process, BOEM may reject the provisionally winning
bid. Compliance with BOEM's auction procedures and regulations is not
an absolute defense to violations of antitrust laws.
Anti-competitive behavior determinations are fact-specific.
However, such behavior may manifest itself in several different ways,
including, but not limited to:
An express or tacit agreement among bidders not to bid in
an auction, or to bid a particular price;
An agreement among bidders not to bid;
An agreement among bidders not to bid against each other;
or
Other agreements among bidders that have the potential to
affect the final auction price.
BOEM will decline to award a lease pursuant to 43 U.S.C. 1337(c) if
the Attorney General, in consultation with the Federal Trade
Commission, determines that awarding the lease would be inconsistent
with the antitrust laws.
For more information on whether specific communications or
agreements could constitute a violation of Federal antitrust law,
please see: https://www.justice.gov/atr/public/business-resources.html,
or consult legal counsel.
Process for Issuing the Lease: Once all post-auction reviews have
been completed to BOEM's satisfaction, BOEM will issue three unsigned
copies of the lease to the provisionally winning bidder. Within 10
business days after receiving the lease copies, the provisionally
winning bidder must:
1. Sign and return the lease copies on the bidder's behalf;
2. File financial assurance, as required under 30 CFR 585.515-537;
and
3. Pay by electronic funds transfer (EFT) the balance (if any) of
the bonus bid (winning bid less the bid deposit). BOEM requires bidders
to use EFT procedures (not pay.gov, the Web site bidders used to submit
bid deposits) for payment of the balance of the bonus bid, following
the detailed instructions contained in the ``Instructions for Making
Electronic Payments'' available on BOEM's Web site at: https://www.boem.gov/North-Carolina/.
BOEM will not execute a lease until the three requirements above
have been satisfied, BOEM has accepted the provisionally winning
bidder's financial assurance pursuant to 30 CFR 585.515, and BOEM has
processed the provisionally winning bidder's payment.
BOEM may extend the 10 business day deadline for signing the lease,
filing the required financial assurance, and/or paying the balance of
the bonus bid if
[[Page 5606]]
BOEM determines the delay was caused by events beyond the provisionally
winning bidder's control.
If the provisionally winning bidder does not meet these
requirements or otherwise fails to comply with applicable regulations
or the terms of the FSN, BOEM reserves the right not to issue the lease
to that bidder. In such a case, the provisionally winning bidder will
forfeit its bid deposit. In such an event, BOEM reserves the right to
identify the next highest bid submitted during the lease sale and offer
the lease pursuant to that bid.
Within 45 calendar days of the date that the provisionally winning
bidder receives copies of the lease, it must pay the first year's rent
using the pay.gov Renewable Energy Initial Rental Payment form
available at: https://www.pay.gov/public/form/start/27797604/.
Subsequent annual rent payments must be made following the detailed
instructions contained in the ``Instructions for Making Electronic
Payments,'' available on BOEM's Web site at: https://www.boem.gov/North-Carolina/.
Non-Procurement Debarment and Suspension Regulations: Pursuant to
regulations at 43 CFR part 42, subpart C, an OCS renewable energy
lessee must comply with the Department of the Interior's non-
procurement debarment and suspension regulations at 2 CFR 180 and 1400.
The lessee must also communicate this requirement to persons with whom
the lessee does business relating to this lease, by including this term
as a condition in their contracts and other transactions.
Force Majeure: The Program Manager of BOEM's Office of Renewable
Energy Programs has the discretion to change any auction details
specified in the FSN, including the date and time, in case of a force
majeure event that the Program Manager deems may interfere with a fair
and proper lease sale process. Such events may include, but are not
limited to: natural disasters (e.g., earthquakes, hurricanes, floods,
blizzards), wars, riots, acts of terrorism, fire, strikes, civil
disorder or other events of a similar nature. In case of such events,
BOEM will notify all qualified bidders via email or phone, or through
the BOEM Web site at: https://www.boem.gov/Renewable-Energy-Program/index.aspx.
Bidders should call 703-787-1320 if they have concerns.
Appeals: The appeals procedures are provided in BOEM's regulations
at 30 CFR 585.225 and 585.118(c). Pursuant to 30 CFR 585.225:
(a) If BOEM rejects your bid, BOEM will provide a written statement
of the reasons and refund any money deposited with your bid, without
interest.
(b) You will then be able to ask the BOEM Director for
reconsideration, in writing, within 15 business days of bid rejection,
under 30 CFR 585.118(c)(1). We will send you a written response either
affirming or reversing the rejection.
The procedures for appealing final decisions with respect to lease
sales are described in 30 CFR 585.118(c).
Protection of Privileged or Confidential Information: BOEM will
protect privileged or confidential information that you submit, as
required by the Freedom of Information Act (FOIA). Exemption 4 of FOIA
applies to ``trade secrets and commercial or financial information that
you submit that is privileged or confidential.'' 5 U.S.C. 552(b)(4). If
you wish to protect the confidentiality of such information, clearly
mark it ``Contains Privileged or Confidential Information'' and
consider submitting such information as a separate attachment. BOEM
will not disclose such information, except as required by FOIA.
Information that is not labeled as privileged or confidential will be
regarded by BOEM as suitable for public release. Further, BOEM will not
treat as confidential aggregate summaries of otherwise confidential
information.
Dated: January 10, 2017.
Walter D. Cruickshank,
Acting Director, Bureau of Ocean Energy Management.
[FR Doc. 2017-01059 Filed 1-17-17; 8:45 am]
BILLING CODE 4310-MR-P
