Outer Continental Shelf (OCS) Western Planning Area (WPA) Gulf of Mexico (GOM) Oil and Gas Lease Sale 207, 41111-41116 [E8-16324]

Agencies

• DEPARTMENT OF THE INTERIOR
• Minerals Management Service (mms)
• Minerals Management Service

[Federal Register Volume 73, Number 138 (Thursday, July 17, 2008)]
[Notices]
[Pages 41111-41116]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-16324]


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DEPARTMENT OF THE INTERIOR

Minerals Management Service (MMS)


Outer Continental Shelf (OCS) Western Planning Area (WPA) Gulf of 
Mexico (GOM) Oil and Gas Lease Sale 207

AGENCY: Minerals Management Service, Interior.

ACTION: Final Notice of Sale (FNOS) 207.

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SUMMARY: On Wednesday, August 20, 2008, the MMS will open and publicly 
announce bids received for blocks offered in WPA Oil and Gas Lease Sale 
207, pursuant to the OCS Lands Act (43 U.S.C. 1331-1356, as amended) 
and the regulations issued thereunder (30 CFR Part 256). The Final 
Notice of Sale 207 Package (FNOS 207 Package) contains information 
essential to bidders, and bidders are charged with the knowledge of the 
documents contained in the Package.

DATES: Public bid reading for the WPA Oil and Gas Lease Sale 207 will 
begin at 9 a.m., Wednesday, August 20, 2008, at the Royal Sonesta Hotel 
in the Grand Ballroom, located at 300 Bourbon Street, New Orleans, 
Louisiana 70130. All times referred to in this document are local New 
Orleans times, unless otherwise specified.

ADDRESSES: Bidders can obtain a FNOS 207 Package containing this Notice 
of Sale and several supporting and essential documents referenced 
herein from the MMS Gulf of Mexico Region Public Information Unit, 1201 
Elmwood Park Boulevard, New Orleans, Louisiana 70123-2394, (504) 736-
2519 or (800) 200-GULF or via the MMS GOM Homepage Address on the 
Internet: https://www.gomr.mms.gov.
    Filing of Bids: Bidders must submit sealed bids to the Regional 
Director (RD), MMS Gulf of Mexico Region, 1201 Elmwood Park Boulevard, 
New Orleans, Louisiana 70123-2394, between 8 a.m. and 4 p.m. on normal 
working days, and from 8 a.m. to the Bid Submission Deadline of 10 a.m. 
on Tuesday, August 19, 2008, the day before the lease sale. If bids are 
mailed, please address the envelope containing all of the sealed bids 
as follows:
    Attention: Supervisor, Sales and Support Unit (MS 5422), Leasing 
Activities Section, MMS Gulf of Mexico Region, 1201 Elmwood Park 
Boulevard, New Orleans, Louisiana 70123-2394, Contains Sealed Bids for 
Oil and Gas Lease Sale 207, Please Deliver to Ms. Nancy Kornrumpf 6th 
Floor, Immediately.

    Please note: Bidders mailing their bid(s) are advised to call 
Ms. Nancy Kornrumpf (504) 736-2726, immediately after putting their 
bid(s) in the mail. If the RD receives bids later than the time and 
date specified above, he will return those bids unopened to bidders. 
Should an unexpected event such as flooding or travel restrictions 
be significantly disruptive to bid submission, the MMS Gulf of 
Mexico Region may extend the Bid Submission Deadline. Bidders may 
call (504) 736-0557 or access our Web site at: https://
www.gomr.mms.gov for information about the possible extension of the 
Bid Submission Deadline due to such an event.

    Areas Offered for Leasing: The MMS is offering for leasing in 
Western Planning Area OCS Oil and Gas Lease Sale 207, all blocks and 
partial blocks listed in the document ``List of Blocks Available for 
Leasing'' included in the FNOS 207 Package. All of these blocks are 
shown on the following leasing maps and Official Protraction Diagrams 
(OPD's):

Outer Continental Shelf Leasing Maps--Texas Map Numbers 1 Through 8

    (These 16 maps sell for $2.00 each.)
TX1 South Padre Island Area (revised November 1, 2000)
TX1A South Padre Island Area, East Addition (revised November 1, 2000)
TX2 North Padre Island Area (revised November 1, 2000)
TX2A North Padre Island Area, East Addition (revised November 1, 2000)
TX3 Mustang Island Area (revised November 1, 2000)
TX3A Mustang Island Area, East Addition (revised September 3, 2002)
TX4 Matagorda Island Area (revised November 1, 2000)
TX5 Brazos Area (revised November 1, 2000)
TX5B Brazos Area, South Addition (revised November 1, 2000)
TX6 Galveston Area (revised November 1, 2000)
TX6A Galveston Area, South Addition (revised November 1, 2000)
TX7 High Island Area (revised November 1, 2000)
TX7A High Island Area, East Addition (revised November 1, 2000)
TX7B High Island Area, South Addition (revised November 1, 2000)
TX7C High Island Area, East Addition, South Extension (revised November 
1, 2000)
TX8 Sabine Pass Area (revised November 1, 2000)

Outer Continental Shelf Leasing Maps--Louisiana Map Numbers 1A, 1B, and 
12

    (These 3 maps sell for $2.00 each.)
LA1A West Cameron Area, West Addition (revised February 28, 2007)
LA1B West Cameron Area, South Addition (revised February 28, 2007)
LA12 Sabine Pass Area (revised February 28, 2007)

Outer Continental Shelf Official Protraction Diagrams (OPD's)

    (These 7 diagrams sell for $2.00 each.)
NG14-03 Corpus Christi (revised November 1, 2000)
NG14-06 Port Isabel (revised November 1, 2000)
NG15-01 East Breaks (revised November 1, 2000)
NG15-02 Garden Banks (revised February 28, 2007)
NG15-04 Alaminos Canyon (revised November 1, 2000)
NG15-05 Keathley Canyon (revised February 28, 2007)
NG15-08 Sigsbee Escarpment (revised February 28, 2007)

    Please note: A CD-ROM (in ARC/INFO and Acrobat (.pdf) format) 
containing all of the GOM leasing maps and OPD's, except for those 
not yet converted to digital format, is available from the MMS Gulf 
of Mexico Region Public Information Unit for a price of $15. These 
GOM leasing maps and OPD's are also available for free online in 
.pdf and .gra format at https://www.gomr.mms.gov/homepg/lsesale/map_
arc.html. For the current status of all Western GOM leasing maps and 
OPD's, please refer to 66 FR 28002 (published May 21, 2001), 67 FR 
60701 (published September 26, 2002), and 72 FR 27590 (published May 
16, 2007). In addition, Supplemental Official OCS Block Diagrams 
(SOBDs) for these blocks are available for blocks which contain the 
U.S. 200 Nautical Mile Limit line and the U.S.-Mexico Maritime 
Boundary line. These SOBDs are also available from the MMS Gulf of 
Mexico Region Public Information Unit. For additional information, 
please call Ms. Tara Montgomery (504) 736-5722.

    All blocks are shown on these leasing maps and OPD's. The available 
Federal

[[Page 41112]]

acreage of all whole and partial blocks in this lease sale is shown in 
the document ``List of Blocks Available for Leasing'' included in the 
FNOS 207 Package. Some of these blocks may be partially leased or 
deferred, or transected by administrative lines such as the Federal/
State jurisdictional line. A bid on a block must include all of the 
available Federal acreage of that block. Also, information on the 
unleased portions of such blocks is found in the document ``Western 
Planning Area, Lease Sale 207, August 20, 2008--Unleased Split Blocks 
and Available Unleased Acreage of Blocks with Aliquots and Irregular 
Portions Under Lease or Deferred'' included in the FNOS 207 Package.
    Areas Not Available for Leasing: The following whole and partial 
blocks are not offered for lease in this sale:

    Whole blocks and portions of blocks which lie within the 
boundaries of the Flower Garden Banks National Marine Sanctuary at 
the East and West Flower Garden Banks and Stetson Bank (the 
following list includes all blocks affected by the Sanctuary 
boundaries):

High Island, East Addition, South Extension (Leasing Map TX7C)
    Whole Blocks: A-375, A-398
    Portions of Blocks: A-366, A-367, A-374, A-383, A-384, A-385, A-
388, A-389, A-397, A-399, A-401
High Island, South Addition (Leasing Map TX7B)
    Portions of Blocks: A-502, A-513
Garden Banks (OPD NG15-02)
    Portions of Blocks: 134, 135

    Whole blocks and portions which lie within the former Western 
Gap portion of the 1.4 nautical mile buffer zone north of the 
continental shelf boundary between the United States and Mexico:

Keathley Canyon (OPD NG15-05)
    Portions of Blocks: 978 through 980
Sigsbee Escarpment (OPD NG15-08)
    Whole Blocks: 11, 57, 103, 148, 149, 194
    Portions of Blocks: 12 through 14, 58 through 60, 104 through 
106, 150

    Statutes and Regulations: Each lease issued in this lease sale is 
subject to the OCS Lands Act of August 7, 1953; 43 U.S.C. 1331 et seq., 
as amended, hereinafter called ``the Act;'' all regulations issued 
pursuant to the Act and in existence upon the Effective Date of the 
lease; all regulations issued pursuant to the statute in the future 
which provide for the prevention of waste and conservation of the 
natural resources of the OCS and the protection of correlative rights 
therein; and all other applicable statutes and regulations.
    Lease Terms and Conditions: Initial periods, extensions of initial 
periods, minimum bonus bid amounts, rental rates, escalating rental 
rates for leases with an approved extension of the initial 5-year 
period, royalty rate, minimum royalty, and royalty suspension 
provisions, if any, applicable to this sale are noted below. Depictions 
of related areas are shown on the map ``Final, Western Planning Area, 
Lease Sale 207, August 20, 2008, Lease Terms and Economic Conditions'' 
for leases resulting from this lease sale.
    Initial Periods: 5 years for blocks in water depths of less than 
400 meters; 8 years for blocks in water depths of 400 to less than 800 
meters (pursuant to 30 CFR 256.37, commencement of an exploratory well 
is required within the first 5 years of the initial 8-year term to 
avoid lease cancellation); and 10 years for blocks in water depths of 
800 meters or deeper.
    Extensions of Initial Periods: The 5-year initial period for a 
lease in water depths of less than 400 meters and issued from this sale 
may be extended to 8 years if a well, targeting hydrocarbons below 
25,000 feet true vertical depth subsea (TVD SS) is spudded within the 
initial period. The 3-year extension may be granted in cases where the 
well is drilled to a target below 25,000 TVD SS and also in cases where 
the well does not reach a depth below 25,000 TVD SS due to mechanical 
or safety reasons.
    In order for the 5-year initial period to be extended to 8 years, 
the lessee is required to submit to the Regional Supervisor for 
Production and Development within 30 days after completion of the 
drilling operation a letter providing the well number, spud date, 
information demonstrating the target below 25,000 feet TVD SS, and if 
applicable, safety or mechanical problems encountered that prevented 
the well from reaching a depth below 25,000 feet TVD SS. The Regional 
Supervisor must concur in writing that the conditions have been met to 
extend the lease term 3 years. The Regional Supervisor will provide 
written confirmation of any lease extension within 30 days of receipt 
of the letter provided.
    For any lease that has a well spudded in the first 5 years of the 
initial period with a hydrocarbon target below 25,000 feet TVD SS, the 
regulations found at 30 CFR 250.175(a), (b), and (c) will not be 
applicable at the end of the 5th year.
    For any lease that does not have a well spudded in the first 5 
years of the initial period which targets hydrocarbons below 25,000 
feet TVD SS, the regulations found at 30 CFR 250.175(a), (b), and (c) 
will be applicable, but the 3-year extension will not be available.
    At the end of the 8th year, the lessee is free to use all lease 
term extension provisions under the regulations.
    Minimum Bonus Bid Amounts: A bonus bid will not be considered for 
acceptance unless it provides for a cash bonus in the amount of $25 or 
more per acre or fraction thereof for blocks in water depths of less 
than 400 meters or $37.50 or more per acre or fraction thereof for 
blocks in water depths of 400 meters or deeper; to confirm the exact 
calculation of the minimum bonus bid amount for each block, see ``List 
of Blocks Available for Leasing'' contained in the FNOS 207 Package. 
Please note that bonus bids must be in whole dollar amounts (i.e., any 
cents will be disregarded by the MMS).
    Rental Rates: Subject to the one set of exceptions below, $6.25 per 
acre or fraction thereof for blocks in water depths of less than 200 
meters, and $9.50 per acre or fraction thereof for blocks in water 
depths of 200 meters or deeper, to be paid on or before the 1st day of 
each lease year until determination of well producibility is made, then 
at the expiration of each lease year until the start of royalty-bearing 
production. An exception to the rental rate requirement for blocks in 
water depths up to 400 meters will be escalating rental rates in the 
6th, 7th, and 8th year for leases with an approved extension of the 5-
year initial period, as noted in the following paragraph of this 
document.
    Escalating Rental Rates for leases with an approved extension of 
the 5-year initial period: Any lease in water depths less than 400 
meters and granted a 3-year extension beyond the 5-year initial period 
as provided above will pay an escalating rental rate as set out in the 
following table, to be paid on or before the 1st day of each lease year 
until determination of well producibility is made, then at the 
expiration of each lease year until the start of royalty-bearing 
production. However, the escalating rental rates after the 5th year for 
blocks in up to 400 meters will become fixed and no longer escalate if 
another well is spudded during the 3-year extended term of the lease 
that targets hydrocarbons below 25,000 feet TVD SS, and MMS concurs 
that this has occurred. In this case the rental rate will become fixed 
at the rental rate in effect during the lease year in which the 
additional well was spudded.

[[Page 41113]]



----------------------------------------------------------------------------------------------------------------
                                  Escalating annual rental
                                    rate for a lease in:    Escalating annual rental rate for a lease in a: 200-
     Extended lease year No.        Less than a 200-meter            to less than 400-meter water depth
                                         water depth
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6...............................  $12.50 per acre or        $19.00 per acre or fraction thereof.
                                   fraction thereof.
7...............................  $18.75 per acre or        $28.50 per acre or fraction thereof.
                                   fraction thereof.
8...............................  $25.00 per acre or        $38.00 per acre or fraction thereof.
                                   fraction thereof.
----------------------------------------------------------------------------------------------------------------

    Royalty Rate: 18.75 percent royalty rate for blocks in all water 
depths, except during periods of royalty suspension, to be paid monthly 
on the last day of the month following the month during which the 
production is obtained.
    Minimum Royalty: $6.25 per acre or fraction thereof per year for 
blocks in water depths of less than 200 meters and $9.50 per acre or 
fraction thereof per year for blocks in water depths of 200 meters or 
deeper, to be paid at the expiration of each lease year beginning in 
the year in which royalty bearing production commences, and continuing 
thereafter regardless of either the lease year or whether any royalty 
suspension may apply. A credit will be applied for any actual royalty 
paid on the lease during the lease year in which minimum royalty is 
owed on the lease. If the actual royalty paid on the lease for a given 
lease year exceeds the minimum royalty otherwise owed, then no minimum 
royalty payment is due.
    Royalty Suspension Provisions: Leases with royalty suspension 
volumes (RSV) are authorized under existing MMS rules at 30 CFR Part 
260. There are no circumstances under which a single lease could 
receive a royalty suspension both for deep gas production and for 
deepwater production.
    Section 344 of the Energy Policy Act of 2005 (EPAct05) extends 
existing deep gas incentives in two ways. First, it mandates a RSV of 
at least 35 billion cubic feet of natural gas for certain wells 
completed in a drilling depth category (20,000 feet TVD SS or deeper) 
for leases in 0-400 meters of water. Second, section 344 directs that 
the same incentives prescribed in MMS's 2004 rule for wells completed 
between 15,000 feet and 20,000 feet TVD SS on leases in 0-200 meters of 
water be applied to leases in 200-400 meters of water. Section 345 of 
the EPAct05 directs continuation of the MMS deepwater incentive program 
utilized since 2001 in the Gulf of Mexico for leases issued between 
August 8, 2005, and August 8, 2010, and provides for an increase in RSV 
from 12 million barrels of oil equivalent (MMBOE) to 16 MMBOE for 
leases in water depths greater than 2,000 meters.

Deep Gas Royalty Suspensions

    A lease issued as a result of this sale may be eligible for royalty 
relief. The MMS published a proposed rule on May 18, 2007, and will 
publish a final rule (Incentives for Natural Gas Production from Deep 
Wells in the Shallow Waters of the Gulf of Mexico) implementing Section 
344 of EPAct05. If a lease is eligible, it will be subject to the 
provisions of that final rule, including any price threshold 
provisions. Please refer to the Royalty Suspension Provisions cited 
below.
    A. The following Royalty Suspension Provisions apply to qualifying 
deep wells on leases at least partly in water depths up to 200 meters:
    Such wells require a perforated interval the top of which is from 
15,000 to less than 20,000 feet TVD SS. Suspension volumes, conditions, 
and requirements prescribed in 30 CFR 203.41 through 203.47 and any 
amendments or successor regulations apply to deep gas production from a 
lease in this water depth range issued as a result of this sale. 
Definitions that apply to this category of royalty relief are found in 
30 CFR 203.0. To receive this category of royalty relief, production 
from a qualified well or drilling of a certified unsuccessful well must 
commence before May 3, 2009.
    B. The following Royalty Suspension Provisions apply to qualifying 
deep wells on leases entirely in water depths more than 200 but less 
than 400 meters:
    Such wells require a perforated interval, the top of which is from 
15,000 to less than 20,000 feet TVD SS. The EPAct05 requires the 
Secretary to issue regulations granting RSV to leases entirely in water 
depths more than 200 but less than 400 meters that will be calculated 
using the same methodology as is currently employed for leases at least 
partly in water depth up to 200 meters. Deep wells on leases in the 
200-400 meter water depth range issued in Sale 207 will be eligible for 
royalty relief prescribed in the final rule implementing Section 344 of 
the EPAct05.
    C. The following Royalty Suspension Provisions apply to qualifying 
ultra deep wells on leases entirely in water depths less than 400 
meters:
    Ultra deep wells i.e., wells completed with a perforated interval, 
the top of which is 20,000 feet TVD SS or deeper) on leases entirely in 
water depths less than 400 meters issued in Sale 207 will be eligible 
for the royalty relief prescribed in a final rule implementing section 
344 of the EPAct05.

Deepwater Royalty Suspensions

    The following Royalty Suspension Provisions apply to deepwater oil 
and gas production:
    A lease issued as a result of this sale may be eligible for royalty 
relief. The following Royalty Suspension Provisions for deepwater oil 
and gas production apply to a lease issued as a result of this sale. 
These provisions are similar to, and mean the same as, the language 
used in recent sales except for some clarifying text and updated 
examples. In addition to these provisions, and the EPAct05, refer to 30 
CFR 218.151 and applicable provisions of sections 260.120-260.124 for 
regulations on how royalty suspensions relate to field assignment, 
product types, rental obligations, and supplemental royalty relief.
    1. A lease in water depths of 400 meters or more will receive a 
royalty suspension as follows, according to the water depth range in 
which the lease is located:

400 meters to less than 800 meters: 5 MMBOE;
800 meters to less than 1600 meters: 9 MMBOE;
1600 meters to 2000 meters: 12 MMBOE;
Greater than 2000 meters: 16 MMBOE.

    2. In any calendar year during which the arithmetic average of the 
daily closing prices for the nearby delivery month on the New York 
Mercantile Exchange (NYMEX) for the applicable product exceeds the 
adjusted product price threshold, the lessee must pay royalty on 
production that would otherwise receive royalty relief under 30 CFR 
Part 260 or supplemental relief under 30 CFR Part 203, and such 
production will count towards the royalty suspension volume.
    (a) The base level price threshold for light sweet crude oil is 
$36.39 per barrel in 2007. The adjusted oil price threshold in any 
subsequent calendar year is computed by changing the price threshold 
applicable in the immediately preceding calendar year by the

[[Page 41114]]

percentage by which the implicit price deflator for the gross domestic 
product has changed during the calendar year.
    (b) The base level price threshold for natural gas is $4.55 per 
million British thermal units (MMBTU) in 2007. The adjusted gas price 
threshold in any subsequent calendar year is computed by changing the 
price threshold applicable in the immediately preceding calendar year 
by the percentage by which the implicit price deflator for the gross 
domestic product has changed during the calendar year.
    (c) As an example, if the implicit price deflator indicates that 
inflation is 3 percent in 2008, then the price threshold in calendar 
year 2008 would become $37.48 per barrel for oil and $4.69 for gas. 
Therefore, royalty on oil production in calendar year 2008 would be due 
if the average of the daily closing prices for the nearby delivery 
month on the NYMEX in 2008 exceeds $37.48 per barrel and royalty on gas 
production in calendar year 2008 would be due if the average of the 
daily closing prices for the nearby delivery month on the NYMEX in 2008 
exceeds $4.69 per MMBTU.
    (d) The MMS provides notice in March of each year when adjusted 
price thresholds for the preceding year were exceeded. Once this 
determination is made, based on the then-most recent implicit price 
deflator information, it will not be revised regardless of any 
subsequent adjustments in the implicit price deflator published by the 
U.S. Government for the preceding year. Information on price thresholds 
is available at the MMS Web site https://www.mms.gov/econ.
    (e) In cases where the actual average price for the product exceeds 
the adjusted price threshold in any calendar year, royalties must be 
paid no later than 90 days after the end of the year (see 30 CFR 
260.122(b)(2) for more detail) and royalties must be paid provisionally 
in the following calendar year (See 30 CFR 260.122(c) for more detail).
    (f) Full royalties are owed on all production from a lease after 
the RSV is exhausted, beginning on the first day of the month following 
the month in which the RSV is exhausted.
    Lease Stipulations: The map ``Final, Western Planning Area, Lease 
Sale 207, August 20, 2008, Stipulations and Deferred Blocks'' depicts 
those blocks on which one or more of five lease stipulations apply: (1) 
Topographic Features; (2) Military Areas; (3) Operations in the Naval 
Mine and Anti-Submarine Warfare Area; (4) Law of the Sea Convention 
Royalty Payment; and (5) Protected Species.
    The texts of the stipulations are contained in the document ``Lease 
Stipulations, Western Planning Area, Oil and Gas Lease Sale 207, Final 
Notice of Sale'' included in the FNOS 207 Package. In addition, the 
``List of Blocks Available for Leasing,'' contained in this FNOS 207 
Package identifies for each block listed the lease stipulations 
applicable to that block.
    Information to Lessees: The FNOS 207 Package contains an 
``Information To Lessees'' document that provides detailed information 
on certain specific issues pertaining to this proposed oil and gas 
lease sale.
    Method of Bidding: For each block bid upon, a bidder must submit a 
separate signed bid in a sealed envelope labeled ``Sealed Bid for Oil 
and Gas Lease Sale 207, not to be opened until 9 a.m., Wednesday, 
August 20, 2008.'' The submitting company's name, its company number, 
the map name/number, and block number should be clearly identified on 
the outside of the envelope.
    Please refer to the sample bid envelope included within the FNOS 
207 Package. The total amount of the bid must be in a whole dollar 
amount; any cent amount above the whole dollar will be ignored by the 
MMS. Details of the information required on the bid(s) and the bid 
envelope(s) are specified in the document ``Bid Form and Envelope'' 
contained in the FNOS 207 Package. A blank bid form has been provided 
for your convenience which may be copied and filled in.
    Please also refer to the Telephone Numbers/Addresses of Bidders 
Form included within the FNOS 207 Package. We are requesting that you 
provide this information in the format suggested for each lease sale. 
Please provide this information prior to or at the time of bid 
submission. Do not enclose this form inside the sealed bid envelope.
    The MMS published in the Federal Register a list of restricted 
joint bidders, which applies to this lease sale, at 73 FR 36556, on 
June 27, 2008. Please also refer to joint bidding provisions at 30 CFR 
256.41 for additional information. Bidders must execute all documents 
in conformance with signatory authorizations on file in the MMS Gulf of 
Mexico Region Adjudication Office. Signatories must be authorized to 
bind their respective legal business entities (e.g., a corporation, 
partnership, or LLC) and must have an incumbency certificate setting 
forth the authorized signatories on file with the MMS GOM Region 
Adjudication Office. Bidders submitting joint bids must include on the 
bid form the proportionate interest of each participating bidder, 
stated as a percentage, using a maximum of five decimal places (e.g., 
33.33333 percent). The MMS may require bidders to submit other 
documents in accordance with 30 CFR 256.46. The MMS warns bidders 
against violation of 18 U.S.C. 1860 prohibiting unlawful combination or 
intimidation of bidders. Bidders are advised that the MMS considers the 
signed bid to be a legally binding obligation on the part of the 
bidder(s) to comply with all applicable regulations, including payment 
of the one-fifth bonus bid amount on all high bids. A statement to this 
effect must be included on each bid (see the document ``Bid Form and 
Envelope'' contained in the FNOS 207 Package).
    Withdrawal of Bids: Once submitted, bid(s) may not be withdrawn 
unless the RD receives a written request for withdrawal from the 
company who submitted the bid(s), prior to 10 a.m. on Tuesday, August 
19, 2008. This request must be typed on company letterhead and must 
contain the submitting company's name, its company number, the map 
name/number and block number of the bid(s) to be withdrawn. The request 
must be in conformance with signatory authorizations on file in the MMS 
Gulf of Mexico Region Adjudication Office. Signatories must be 
authorized to bind their respective legal business entities (e.g., a 
corporation, partnership, or LLC) and must have an incumbency 
certificate setting forth the authorized signatories on file with the 
MMS GOM Region Adjudication Office. The name and title of said 
signatory must be typed under the signature block on the withdrawal 
letter. Upon the RD's, or his designee's, approval of such requests, he 
will indicate his approval by affixing his signature and date to the 
submitting company's request for withdrawal.
    Rounding: The following procedure must be used to calculate the 
minimum bonus bid, annual rental, and minimum royalty: Round up to the 
next whole acre if the block acreage contains a decimal figure prior to 
calculating the minimum bonus bid, annual rental, and minimum royalty 
amounts. The appropriate rate per acre is applied to the whole (rounded 
up) acreage. The bonus bid must be in whole dollar amounts (i.e., any 
cents will be disregarded by the MMS) and greater than or equal to the 
minimum bonus bid. The appropriate minimum bid per acre rate is applied 
to the whole (rounded up) acreage and the resultant calculation is 
rounded up to the next whole dollar amount if the calculation results 
in any cents. The minimum bonus bid calculation, including all 
rounding, is shown in the document

[[Page 41115]]

``List of Blocks Available for Leasing'' included in the FNOS 207 
Package.
    Bonus Bid Deposit: Each bidder submitting an apparent high bid must 
submit a bonus bid deposit to the MMS equal to one-fifth of the bonus 
bid amount for each such bid. All payments must be electronically 
deposited into an interest-bearing account in the U.S. Treasury 
(account information provided in the Electronic Funds Transfer (EFT) 
instructions) by 11 a.m. Eastern Time the day following bid reading. 
Under the authority granted by 30 CFR 256.46(b), the MMS requires 
bidders to use electronic funds transfer procedures for payment of one-
fifth bonus bid deposits for Lease Sale 207, following the detailed 
instructions contained in the document ``Instructions for Making EFT 
Bonus Payments,'' which can be found on the MMS Web site at https://
www.gomr.mms.gov/homepg/lsesale/207/wgom207.html. Such a deposit does 
not constitute and shall not be construed as acceptance of any bid on 
behalf of the United States. If a lease is awarded, however, MMS 
requests that only one transaction be used for payment of the four-
fifths bonus bid amount and the first year's rental.

    Please note: Certain bid submitters (i.e., those that are NOT 
currently an OCS mineral lease record title holder or designated 
operator OR those that have ever defaulted on a one-fifth bonus bid 
payment (EFT or otherwise)) are required to guarantee (secure) their 
one-fifth bonus bid payment prior to the submission of bids. For 
those who must secure the EFT one-fifth bonus bid payment, one of 
the following options may be used: (1) Provide a third-party 
guarantee; (2) amend bond coverage; (3) provide a letter of credit; 
or (4) provide a lump sum payment in advance via EFT. The EFT 
instructions specify the requirements for each option.

    Withdrawal of Blocks: The United States reserves the right to 
withdraw any block from this lease sale prior to issuance of a written 
acceptance of a bid for the block.
    Acceptance, Rejection, or Return of Bids: The United States 
reserves the right to reject any and all bids. In any case, no bid will 
be accepted, and no lease for any block will be awarded to any bidder, 
unless the bidder has complied with all requirements of this Notice, 
including the documents contained in the associated FNOS 207 Package 
and applicable regulations; the bid is the highest valid bid; and the 
amount of the bid has been determined to be adequate by the authorized 
officer. Any bid submitted which does not conform to the requirements 
of this Notice, the Act, and other applicable regulations may be 
returned to the bidder submitting that bid by the RD and not considered 
for acceptance. The Attorney General may also review the results of the 
lease sale prior to the acceptance of bids and issuance of leases. To 
ensure that the Government receives a fair return for the conveyance of 
lease rights for this lease sale, high bids will be evaluated in 
accordance with MMS bid adequacy procedures. A copy of current 
procedures, ``Modifications to the Bid Adequacy Procedures'' at 64 FR 
37560 on July 12, 1999, can be obtained from the MMS Gulf of Mexico 
Region Public Information Unit or via the MMS Gulf of Mexico Region 
Internet Web site at: https://www.gomr.mms.gov/homepg/lsesale/
bidadeq.html.
    Successful Bidders: As required by the MMS, each company that has 
been awarded a lease must execute all copies of the lease (Form MMS-
2005 (March 1986) as amended), pay by EFT the balance of the bonus bid 
amount and the first year's rental for each lease issued in accordance 
with the requirements of 30 CFR 218.155; and satisfy the bonding 
requirements of 30 CFR 256, subpart I, as amended.
    Also, in accordance with regulations at 2 CFR Parts 180 and 1400, 
the lessee shall comply with the U.S. Department of the Interior's 
nonprocurement debarment and suspension requirements, and agrees to 
communicate this requirement to comply with these regulations to 
persons with whom the lessee does business as it relates to this lease 
by including this term as a condition to enter into their contracts and 
other transactions.
    Affirmative Action: The MMS requests that, prior to bidding, Equal 
Opportunity Affirmative Action Representation Form MMS 2032 (June 1985) 
and Equal Opportunity Compliance Report Certification Form MMS 2033 
(June 1985) be on file in the MMS Gulf of Mexico Region Adjudication 
Unit. This certification is required by 41 CFR Part 60 and Executive 
Order No. 11246 of September 24, 1965, as amended by Executive Order 
No. 11375 of October 13, 1967. In any event, prior to the execution of 
any lease contract, both forms are required to be on file in the MMS 
Gulf of Mexico Region Adjudication Unit.
    Geophysical Data and Information Statement: Pursuant to 30 CFR 
251.12, the MMS has a right to access geophysical data and information 
collected under a permit in the OCS.
    Every bidder submitting a bid on a block in Sale 207, or 
participating as a joint bidder in such a bid, must submit a 
Geophysical Data and Information Statement (GDIS) identifying any 
enhanced or reprocessed geophysical data and information generated or 
used as part of the decision to bid or participate in a bid on the 
block. The data identified in the GDIS should clearly identify whether 
the data or information are non-exclusive data sets available from 
geophysical contractors or exclusive data specially processed for or by 
bidders. In addition, the GDIS should clearly identify the data type 
(2-D or 3-D, pre-stack or post-stack and time or depth); data extent 
(i.e., number of line miles for 2D or number of blocks for 3D) and 
migration algorithm of the data and information. The statement must 
also include the name and phone number of a contact person, and an 
alternate, who are both knowledgeable about the information and data 
listed and available for 30 days post-sale, the processing company, 
date processing completed, owner of the original data, original data 
survey name and permit number. The MMS reserves the right to query 
about alternate data sets and to quality check and compare the listed 
and alternative data sets to determine which data set most closely 
meets the needs of the fair market value determination process.
    The statement must also identify each block upon which a bidder 
bid, or participated in a bid, but for which it did not use processed 
or reprocessed pre- or post-stack depth migrated geophysical data and 
information as part of the decision to bid or to participate in the 
bid. The GDIS must be submitted, even if no enhanced geophysical data 
and information were used for bid preparation of the tract.
    In the event your company supplies any type of data to the MMS, in 
order to get reimbursed, your company must be registered with the 
Central Contractor Registration (CCR) at https://www.ccr.gov. This is a 
requirement that was implemented on October 1, 2003, and requires all 
entities doing business with the Government to complete a business 
profile in CCR and update it annually. Payments are made electronically 
based on the information contained in CCR. Therefore, if your company 
is not actively registered in CCR, the MMS will not be able to 
reimburse or pay your company for any data supplied.
    Please also refer to the FNOS 207 Package for more detail 
concerning submission of the GDIS, making the data available to the MMS 
following the lease sale, preferred format, reimbursement for costs, 
and confidentiality.
    Force Majeure: The RD of the MMS Gulf of Mexico Region has the

[[Page 41116]]

discretion to change any date, time, and/or location specified in the 
Final Notice of Sale package in case of a force majeure which the RD 
deems may interfere with the carrying out of a fair and proper lease 
sale process. Such events may include, but are not limited to, natural 
disasters (earthquakes, hurricanes, floods), wars, riots, acts of 
terrorism, fire, strikes, civil disorder or other events of a similar 
nature. In case of such events, bidders should call (504) 736-0557 or 
access our Web site at www.gomr.mms.gov for information about any 
changes.

    Date: July 9, 2008.
Randall B. Luthi,
Director, Minerals Management Service.
 [FR Doc. E8-16324 Filed 7-16-08; 8:45 am]
BILLING CODE 4310-MR-P