Outer Continental Shelf (OCS) Western Planning Area (WPA) Gulf of Mexico (GOM) Oil and Gas Lease Sale 210, 34777-34782 [E9-16955]

Agencies

• DEPARTMENT OF THE INTERIOR
• Minerals Management Service

[Federal Register Volume 74, Number 136 (Friday, July 17, 2009)]
[Notices]
[Pages 34777-34782]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-16955]


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DEPARTMENT OF THE INTERIOR

Minerals Management Service


Outer Continental Shelf (OCS) Western Planning Area (WPA) Gulf of 
Mexico (GOM) Oil and Gas Lease Sale 210

AGENCY: Minerals Management Service, Interior.

ACTION: Final Notice of Sale (NOS) 210.

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SUMMARY: On Wednesday, August 19, 2009, MMS will open and publicly 
announce bids received for blocks offered in WPA Oil and Gas Lease Sale 
210, 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 NOS 
210 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 210 will 
begin at 9 a.m., Wednesday, August 19, 2009, 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 Final NOS 210 Package containing this 
NOS and several supporting and essential documents referenced herein 
from 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 at: 
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 18, 2009, the day before the lease sale. If bids are 
mailed, please address the envelope containing all of the sealed bids 
as follows:
    Attention: Supervisor, Leasing and Financial Responsibility Unit 
(MS 5422), Leasing and Environment, 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 
210. Please Deliver to Ms. Nancy Kornrumpf, 6th Floor, Immediately.

    Please note: Bidders mailing their bid(s) are advised to call 
Ms. Nancy Kornrumpf at (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, 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 the 
WPA OCS Oil and Gas Lease Sale 210, all blocks and partial blocks 
listed in the document ``List of Blocks Available for Leasing'' 
included in this Final NOS

[[Page 34778]]

210 Package. All of these blocks are shown on the following leasing 
maps and Official Protraction Diagrams (OPDs):

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 (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, except for those not 
yet converted to digital format, is available from MMS Gulf of 
Mexico Region Public Information Unit for a price of $15. These GOM 
leasing maps and OPDs 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 GOM WPA leasing maps and OPDs, 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 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 OPDs. The available 
Federal acreage of all whole and partial blocks in this lease sale is 
shown in the document ``List of Blocks Available for Leasing'' included 
in this Final NOS 210 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 210, August 19, 2009--Unleased Split Blocks 
and Available Unleased Acreage of Blocks with Aliquots and Irregular 
Portions Under Lease or Deferred'' included in the Final NOS 210 
Package.
    Areas Not Available for Leasing: The following whole and partial 
blocks are not offered for lease in this sale:
    Whole 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 Block: A-398.
    Portions of Blocks: A-366\*\, A-367\*\, A-374\*\, A-375, 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*.
    \*\ Leased.
Garden Banks (OPD NG15-02)
    Portions of Blocks: 134, 135.

    Whole and portions of blocks 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;'' regulations promulgated 
pursuant thereto, and other statutes and regulations in existence upon 
the Effective Date of the Lease, and those statutes enacted and 
regulations promulgated thereafter, except to the extent they are 
inconsistent with an express provision of this lease.
    This lease form language change conforms this term of OCS mineral 
leases with that of onshore, BLM leases and avoids a narrow and never 
intended reading of the previous lease language to limit the obligation 
of lessees to comply with later enacted laws.
    The MMS uses Form MMS-2005 (March 1986) to convey leases. The lease 
form will be amended with the specific terms, conditions and 
stipulations applicable to the individual lease. Addressed below are 
the collective terms, conditions and stipulations applicable to this 
sale.
    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 210, August 19, 2009, 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

[[Page 34779]]

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 first 5 
years of 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, any 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 Final NOS 210 
Package. Please note that bonus bids must be in whole dollar amounts 
(i.e., any cents will be disregarded by MMS).
    Rental Rates: Rentals for leases issued in this sale are to be paid 
at the rental rates summarized in the following table 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.
    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 below will pay the escalating rental rate. The escalating 
rental rates after the 5th year for blocks in less than 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.

                               Sale 210 Rental Rates per Acre or Fraction Thereof
----------------------------------------------------------------------------------------------------------------
            Water depth (in meters)               Years 1-5             Years 6, 7, and 8              Years 9+
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0 to <200......................................       $7.00  $14.00, $21.00, $28.00.................      $28.00
200 to <400....................................       11.00  $22.00, $33.00, $44.00.................       44.00
400 to <800....................................       11.00  $16.00 (if exploratory well drilled per       16.00
                                                              30 CFR 256.37).
800+...........................................       11.00  $16.00.................................       16.00
----------------------------------------------------------------------------------------------------------------

    Royalty Rate: 18\3/4\ 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: $7.00 per acre or fraction thereof per year for 
blocks in water depths of less than 200 meters and $11.00 per acre or 
fraction thereof per year for blocks in water depths of 200 meters or 
deeper regardless of the year of the lease and notwithstanding any 
royalty relief volume. Minimum royalty is 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 Parts 
203 and 260. There are no circumstances under which a single lease 
could receive a royalty suspension both for deep gas production and for 
deepwater production.

Deep and Ultra-Deep Gas Royalty Suspensions

    A lease issued as a result of this sale may be eligible for royalty 
relief for deep and ultra-deep wells pursuant to 30 CFR 203.0 and 30 
CFR 203.30-203.49. The regulations provide deep gas incentives in two 
ways. First, they provide an 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 to less than 400 meters 
of water. Second, they offer the same RSVs as those that were offered 
in shallower water to leases in 200 to less than 400 meters of water 
and they include a provision that wells completed from 15,000 to 20,000 
feet TVD SS must begin production before May 3, 2013. These RSV 
incentives are conditional on applicable price thresholds.

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 
deepwater royalty relief mandated by section 345 of EPAct05. Section 
345 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. The RSVs provided for

[[Page 34780]]

deepwater leases are subject to applicable price thresholds, as 
discussed below. 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 1,600 meters: 9 MMBOE.
1,600 meters to 2,000 meters: 12 MMBOE.
Greater than 2,000 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 
$37.18 per barrel expressed in 2008 dollars. 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 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 $4.65 per 
million British thermal units (MMBTU) expressed in 2008 dollars. 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 2009, then the price threshold in calendar 
year 2009 would become $38.30 per barrel for oil and $4.79 for gas. 
Therefore, royalty on oil production in calendar year 2009 would be due 
if the average of the daily closing prices for the nearby delivery 
month on the NYMEX in 2009 exceeds $38.30 per barrel and royalty on gas 
production in calendar year 2009 would be due if the average of the 
daily closing prices for the nearby delivery month on the NYMEX in 2009 
exceeds $4.79 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 
and the methodology for applying the preceding year's implicit price 
deflator is available at MMS Web site at: https://www.mms.gov/econ and 
in the 2008 Notice of the Annual Price Threshold Determination (74 FR 
26879).
    (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 210, August 19, 2009, Stipulations and Deferred Blocks'' depicts 
those blocks on which one or more of four lease stipulations apply: (1) 
Topographic Features; (2) Military Areas; (3) Law of the Sea Convention 
Royalty Payment; (4) Protected Species.
    The texts of the stipulations are contained in the document ``Lease 
Stipulations, Western Planning Area, Oil and Gas Lease Sale 210, Final 
Notice of Sale'' included in this Final NOS 210 Package. In addition, 
the ``List of Blocks Available for Leasing,'' contained in the Final 
NOS 210 Package identifies for each block listed the lease stipulations 
applicable to that block.
    Information to Lessees: This Final NOS 210 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. The outside of the envelope 
should be labeled ``Sealed Bid for Oil and Gas Lease Sale 210, not to 
be opened until 9 a.m., Wednesday, August 19, 2009.'' The submitting 
company's name, its GOM company number, the map name, map number, and 
block number should be clearly identified on the outside of the 
envelope.
    The sealed bid should list the total amount of the bid in a whole 
dollar amount (any cent amount above the whole dollar will be ignored 
by the MMS) as well as the sale number, the sale date, the submitting 
company's name, its GOM company number, the map name, map number, and 
the block number clearly identified. The information required on the 
bid(s) and the bid envelope(s) are specified in the document ``Bid Form 
and Envelope'' contained in the Final NOS 210 Package. A blank bid form 
has been provided therein for your convenience and may be copied and 
filled in. Please refer to the sample bid envelope included within the 
Final NOS 210 Package.
    Please also refer to the Telephone Numbers/Addresses of Bidders 
Form included within the Final NOS 210 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 74 FR 17984 on 
April 20, 2009. Please also refer to joint bidding provisions at 30 CFR 
256.41 for additional information. All bidders must execute all 
documents in conformance with signatory authorizations on file in MMS 
Gulf of Mexico Region Adjudication Unit. Designated 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 
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) with total interest equaling 
100 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

[[Page 34781]]

prohibiting unlawful combination or intimidation of bidders. Bidders 
are advised that 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 Final NOS 210 
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 
18, 2009. 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 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 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 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 ``List of Blocks Available for Leasing'' included in the Final 
NOS 210 Package.
    Bonus Bid Deposit: Each bidder submitting an apparent high bid must 
submit a bonus bid deposit to 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), MMS requires bidders 
to use electronic funds transfer procedures for payment of one-fifth 
bonus bid deposits for Lease Sale 210, following the detailed 
instructions contained in the document ``Instructions for Making EFT 
Bonus Payments'' which can be found on MMS GOM Web site at: https://www.gomr.mms.gov/homepg/lsesale/210/wgom210.html. Acceptance of 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 titleholder 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 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 MMS Gulf of Mexico Region 
Public Information Unit or via MMS Gulf of Mexico Region Internet Web 
site at: https://www.gomr.mms.gov/homepg/lsesale/bidadeq.html.
    Successful Bidders: As required by 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 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 MMS Gulf of 
Mexico Region Adjudication Unit.
    Geophysical Data and Information Statement: Pursuant to 30 CFR 
251.12, 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 210, 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 (including the use of Controlled Source Electromagnetics, 
Gravity, etc.). The data identified in the GDIS should clearly identify 
whether the data or

[[Page 34782]]

information are multi-client (speculative) data sets available directly 
from geophysical contractors or exclusive (proprietary) data sets 
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); areal extent (i.e., 
number of line miles for 2D or number of blocks for 3D) and migration 
algorithm (Wave Equation Migration, Reverse Time Migration, etc.) of 
the data and information. The statement must also include the name, 
phone number and full address 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 was completed, owner of the original data set (who initially 
acquired the 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 the bidder 
submitted a bid or participated as a partner in a bid, but for which it 
did not use enhanced or reprocessed pre- or post-stack 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 in bid preparation for the tract.
    In the event your company supplies any type of data to MMS, your 
company must meet the following requirements to get reimbursed:
    1. Your company must be registered with the Central Contractor 
Registration (CCR). The initial registration is valid for one year and 
must be updated annually thereafter. The Web site for registering is: 
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 the CCR. It must be 
updated annually. Payments are made electronically based on the 
information contained in the CCR. Therefore, if your company is not 
actively registered in the CCR, MMS will not be able to reimburse or 
pay your company for any data supplied.
    2. Your company must complete an on-line application for your 
Representations (Reps) and Certifications (Certs) at https://orca.bpn.gov. ORCA (On-line Representations and Certifications 
Application) is an E-Government initiative. Even though your company 
may have never provided Reps and Certs previously, they are now 
mandated in order to do business with the Government or receive 
reimbursement.
    Please also refer to the Final NOS 210 Package for more detail 
concerning submission of the GDIS, making the data available to MMS 
following the lease sale, preferred format, reimbursement for costs, 
and confidentiality.
    Force Majeure: The Regional Director of MMS Gulf of Mexico Region 
has the discretion to change any date, time, and/or location specified 
in the Final NOS 210 Package in case of a force majeure event which the 
Regional Director 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, and 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: https://www.gomr.mms.gov for 
information about any changes.
    Notice: On April 17, 2009, the U.S. Court of Appeals for the 
District of Columbia Circuit issued a ruling in Center for Biological 
Diversity v. Department of the Interior, Nos. 07-1247, 07-1344, 
vacating and remanding for the Secretary's reconsideration the 2007-
2012 OCS Oil and Gas Leasing Program. On May 11, 2009, the Department 
of the Interior filed a petition for rehearing and/or clarification of 
the court's order. The U.S. Court of Appeals for the DC Circuit is 
reviewing the Government's petition. The decision to hold this sale 
will be subject to further proceedings in that case. In the event the 
Department determines that it is necessary to cancel the sale, the bid 
envelopes will be returned to bidders unopened.

    Dated: July 2, 2009.
Walter D. Cruickshank,
Acting Director, Minerals Management Service.
[FR Doc. E9-16955 Filed 7-16-09; 8:45 am]
BILLING CODE 4310-MR-P