Outer Continental Shelf (OCS) Central Planning Area (CPA) Gulf of Mexico (GOM) Oil and Gas Lease Sale 213, 6874-6882 [2010-3002]
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Federal Register / Vol. 75, No. 29 / Friday, February 12, 2010 / Notices
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Aransas County Public Library .................................................
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Submitting Comments/Issues for
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ACTION:
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they:
• Question, with reasonable basis, the
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other than those presented in the
document; and/or
• Provide new or additional
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will analyze the comments and address
them in the form of a final CCP and
finding of no significant impact.
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Dated: January 7, 2010.
Brian Millsap,
Acting Regional Director, Region 2.
[FR Doc. 2010–2911 Filed 2–11–10; 8:45 am]
BILLING CODE 4310–55–P
DEPARTMENT OF THE INTERIOR
Minerals Management Service
Outer Continental Shelf (OCS) Central
Planning Area (CPA) Gulf of Mexico
(GOM) Oil and Gas Lease Sale 213
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AGENCY: Minerals Management Service,
Interior.
Final Notice of Sale (NOS) 213.
SUMMARY: On Wednesday, March 17,
2010, the Minerals Management Service
(MMS) will open and publicly
announce bids received for blocks
offered in CPA Oil and Gas Lease Sale
213, 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 213 Package
contains information essential to
bidders, and bidders are responsible for
knowing the information within the
documents contained in the Package.
DATES: Public bid reading for the CPA
Oil and Gas Lease Sale 213 will begin
at 9 a.m., Wednesday, March 17, 2010,
at the Louisiana Superdome, 1500
Sugarbowl Drive, New Orleans,
Louisiana, 70112. The lease sale will be
held in the St. Charles Club Room on
the second floor (Loge Level). Entry to
the Superdome will be on the Poydras
Street side of the building through Gate
A on the Ground or Plaza Level, and
parking should be available at Garage 6.
All times referred to in this document
are local New Orleans times, unless
otherwise specified.
Please Note: Starting with this sale, MMS
is revising the lease terms for blocks in water
depths of 400 meters to less than 1,600
meters. Blocks in 400 to less than 800 meters
change from an initial 8-year lease term
(where a well has to be spudded within the
first 5 years of the initial 8-year term to avoid
lease cancellation) to a 5-year initial lease
term (where spudding a well within the
initial lease term would automatically extend
the lease term to 8 years). Blocks in 800 to
less than 1,600 meters change from a 10-year
initial lease term to a 7-year initial lease term
(where spudding a well within the initial
lease term would automatically extend the
lease term to 10 years). The MMS received
9 comments on the lease terms changes in the
Proposed Notice of Sale.
Bidders can obtain a Final
NOS 213 Package containing the NOS
and the supporting documents by
writing or calling the: Gulf of Mexico
Region Public Information Unit,
ADDRESSES:
Phone No.
361–790–0153
Minerals Management Service, 1201
Elmwood Park Boulevard, New Orleans,
Louisiana 70123–2394, (504) 736–2519
or (800) 200–GULF, MMS GOM Internet
Web site 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, March
16, 2010, 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 CPA Oil and
Gas Lease Sale 213, Please Deliver to
Ms. Nancy Kornrumpf, 6th Floor,
Immediately.
Please note: Bidders mailing bid(s) are
advised to call Ms. Nancy Kornrumpf at (504)
736–2726 or Ms. Cindy Thibodeaux at (504)
736–2809 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 may
extend the Bid Submission Deadline. Bidders
may call (504) 736–0557 or access our MMS
Gulf of Mexico Internet 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 CPA Oil and
Gas Lease Sale 213 all blocks and partial
blocks listed in the document ‘‘List of
Blocks Available for Leasing’’ included
in the Final NOS 213 Package. All of
these blocks are shown on the following
leasing maps and Official Protraction
Diagrams (OPD’s):
Outer Continental Shelf Leasing Maps—Louisiana Map Numbers 1 Through 12
(These 30 maps sell for $2.00 each)
LA1 ................................................................................................ West Cameron Area (Revised November 1, 2000).
LA1A ............................................................................................. West Cameron Area, West Addition (Revised February 28, 2007).
LA1B .............................................................................................. West Cameron Area, South Addition (Revised February 28, 2007).
LA2 ................................................................................................ East Cameron Area (Revised November 1, 2000).
LA2A ............................................................................................. East Cameron Area, South Addition (Revised November 1, 2000).
LA3 ................................................................................................ Vermilion Area (Revised November 1, 2000).
LA3A ............................................................................................. South Marsh Island Area (Revised November 1, 2000).
LA3B .............................................................................................. Vermilion Area, South Addition (Revised November 1, 2000).
LA3C .............................................................................................. South Marsh Island Area, South Addition (Revised November 1, 2000).
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LA3D ..............................................................................................
LA4 ................................................................................................
LA4A .............................................................................................
LA5 ................................................................................................
LA5A .............................................................................................
LA6 ................................................................................................
LA6A .............................................................................................
LA6B ..............................................................................................
LA6C ..............................................................................................
LA7 ................................................................................................
LA7A .............................................................................................
LA8 ................................................................................................
LA8A .............................................................................................
LA9 ................................................................................................
LA9A .............................................................................................
LA10 ..............................................................................................
LA10A ...........................................................................................
LA10B ............................................................................................
LA11 ..............................................................................................
LA11A ...........................................................................................
LA12 ..............................................................................................
NG15–02
NG15–03
NG15–05
NG15–06
NG15–08
NG15–09
NG16–01
NG16–02
NG16–04
NG16–05
NG16–07
NG16–08
NH15–12
NH16–04
NH16–05
NH16–07
NH16–08
NH16–10
NH16–11
South Marsh Island Area, North Addition (Revised November 1, 2000).
Eugene Island Area (Revised November 1, 2000).
Eugene Island Area, South Addition (Revised November 1, 2000).
Ship Shoal Area (Revised November 1, 2000).
Ship Shoal Area, South Addition (Revised November 1, 2000).
South Timbalier Area (Revised November 1, 2000).
South Timbalier Area, South Addition (Revised November 1, 2000).
South Pelto Area (Revised November 1, 2000).
Bay Marchand Area (Revised November 1, 2000).
Grand Isle Area (Revised November 1, 2000).
Grand Isle Area, South Addition (Revised February 17, 2004).
West Delta Area (Revised November 1, 2000).
West Delta Area, South Addition (Revised November 1, 2000).
South Pass Area (Revised November 1, 2000).
South Pass Area, South and East Additions (Revised November 1, 2000).
Main Pass Area (Revised November 1, 2000).
Main Pass Area, South and East Additions (Revised November 1, 2000).
Breton Sound Area (Revised November 1, 2000).
Chandeleur Area (Revised November 1, 2000).
Chandeleur Area, East Addition (Revised November 1, 2000).
Sabine Pass Area (Revised February 28, 2007).
Outer Continental Shelf Official Protraction Diagrams
(These 19 diagrams sell for $2.00 each.)
........................................................................................ Garden Banks (Revised February 28, 2007).
........................................................................................ Green Canyon (Revised November 1, 2000).
........................................................................................ Keathley Canyon (Revised February 28, 2007).
........................................................................................ Walker Ridge (Revised November 1, 2000).
........................................................................................ Sigsbee Escarpment (Revised February 28, 2007).
........................................................................................ Amery Terrace (Revised October 25, 2000).
........................................................................................ Atwater Valley (Revised November 1, 2000).
........................................................................................ Lloyd Ridge (Revised August 1, 2008).
........................................................................................ Lund (Revised November 1, 2000).
........................................................................................ Henderson (Revised August 1, 2008).
........................................................................................ Lund South (Revised November 1, 2000).
........................................................................................ Florida Plain (Revised February 28, 2007).
........................................................................................ Ewing Bank (Revised November 1, 2000).
........................................................................................ Mobile (Revised November 1, 2000).
........................................................................................ Pensacola (Revised February 28, 2007).
........................................................................................ Viosca Knoll (Revised November 1, 2000).
........................................................................................ Destin Dome (Revised February 28, 2007).
........................................................................................ Mississippi Canyon (Revised November 1, 2000).
........................................................................................ De Soto Canyon (Revised August 1, 2008).
Bidders are advised that the CentralEastern Planning Area Boundary was
revised to match the Federal OCS
Administrative Boundary for the DeSoto
Canyon, Lloyd Ridge, and Henderson
Areas. The boundary splits blocks that
were formerly ‘‘stair-stepped’’ and can
be seen on the ‘‘Stipulations and
Deferred Blocks’’ or ‘‘Lease Terms and
Economic Conditions’’ maps included in
the Final NOS 213 Package. The
boundaries along the Pensacola, Destin
Dome, and Florida Plain Areas will
remain ‘‘stair-stepped’’ for this lease
sale, as they were for CPA Sale 208. The
administrative boundaries can also be
viewed at: https://www.mms.gov/ld/
AdminBoundaries.htm.
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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 GOM 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.
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For the current status of all CPA
leasing maps and OPD’s, please refer to
66 FR 28002 (published May 21, 2001),
69 FR 23211 (published April 28, 2004),
72 FR 27590 (published May 16, 2007),
72 FR 35720 (published June 29, 2007),
and 73 FR 63505 (October 24, 2008). In
addition, Supplemental Official OCS
Block Diagrams (SOBD’s) are available
for blocks that contain the ‘‘U.S. 200
Nautical Mile Limit’’ line and the ‘‘U.S.Mexico Maritime Boundary’’ line. These
SOBD’s are also available from the GOM
Region Public Information Unit. For
additional information, please call Ms.
Tara Montgomery at (504) 736–5722.
All blocks are shown on these leasing
maps and OPD’s. 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 the Final NOS 213
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.
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Also, information on the unleased
portions of such blocks is found in the
document ‘‘Central Planning Area Lease
Sale 213—Unleased Split Blocks and
Available Unleased Acreage of Blocks
with Aliquots and Irregular Portions
Under Lease or Deferred’’ included in
the Final NOS 213 Package.
Areas Not Available for Leasing: The
following whole and partial blocks are
not offered for lease in this lease sale:
Although currently unleased, the bid
decision on the following block is under
appeal and bids will not be accepted:
Mississippi Canyon (OPD NH16–10)
Block 943
This block is deferred until measures
to ensure the safety of decommissioning
operations are completed:
Green Canyon (OPD NG15–03)
Block 20
Whole blocks and portions of blocks
that lie within the 1.4 nautical mile
buffer zone north of the ‘‘Western Gap’’
continental shelf boundary between the
United States and Mexico:
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Amery Terrace (OPD NG 15–09)
Whole Blocks: 280, 281, 318 through
320, and 355 through 359
Portions of Blocks: 235 through 238, 273
through 279, and 309 through 317
Sigsbee Escarpment (OPD NG 15–08)
Whole Blocks: 239, 284, 331 through
341
Portions of Blocks: 151, 195, 196, 240,
241, 285 through 298, 342 through
349
Whole blocks and portions of blocks
that are adjacent to or beyond the
United States Exclusive Economic Zone,
in or adjacent to the area known as the
northern portion of the Eastern Gap:
Lund South (OPD NG 16–07)
Whole Blocks: 128, 129, 169 through
173, 208, through 217, 248 through
261, 293 through 305, and 349
Henderson (OPD NG 16–05)
Whole Blocks: 466, 508 through 510,
551 through 554, 594 through 599,
637 through 643, 679 through 687,
722 through 731, 764 through 775,
807 through 819, 849 through 862,
891 through 905, 933 through 949,
and 975 through 992
Portions of Blocks: 467, 511, 555, 556,
600, 644, 688, 732, 776, 777, 820, 821,
863, 864, 906, 907, 950, 993, and 994
Florida Plain (OPD NG 16–08)
Whole Blocks: 5 through 24, 46 through
67, 89 through 110, 133 through 154,
177 through 197, 221 through 240,
265 through 283, 309 through 327,
and 363 through 370
Whole blocks and portions of blocks
deferred by Gulf of Mexico Energy
Security Act:
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Pensacola (OPD NH 16–05)
Blocks: 751 through 754, 793 through
798, 837 through 842, 881 through
886, 925 through 930, and 969
through 975
Destin Dome (OPD NH 16–08)
Whole Blocks: 1 through 7, 45 through
51, 89 through 96, 133 through 140,
177 through 184, 221 through 228,
265 through 273, 309 through 317,
353 through 361, 397 through 405,
441 through 450, 485 through 494,
529 through 538, 573 through 582,
617 through 627, 661 through 671,
705 through 715, 749 through 759,
793 through 804, 837 through 848,
881 through 892, 925 through 936,
and 969 through 981
DeSoto Canyon (OPD NH 16–11)
Whole Blocks: 1 through 15, 45 through
59, and 92 through 102
Portions of Blocks: 16, 60, 61, 89
through 91, 103 through 105, and 135
through 147
Henderson (OPD NG 16–05)
Portions of Blocks: 114, 158, 202, 246,
290, 334, 335, 378, 379, 422, and 423
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; 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 the lease. This
language conforms this term of OCS
mineral leases with that of onshore,
Bureau of Land Management (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 will use the recently
revised Form MMS–2005 (October 2009)
to convey leases; it can be viewed at:
https://www.gomr.mms.gov/homepg/
mmsforms/FormMMS-2005.pdf. The
lease form will be modified with the
specific terms, conditions and
stipulations applicable to each
individual lease. Addressed below are
the collective terms, conditions, and
stipulations applicable to this sale.
Where applicable, these terms,
conditions and stipulations will be
incorporated into each lease by
addendum.
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, Central Planning Area,
Lease Sale 213, March 17, 2010, Lease
Terms and Economic Conditions,’’ for
leases resulting from this lease sale.
Water depth (meters)
Term (years)
0 to <400 .......................................................
400 to <800 ...................................................
800 to <1,600 ................................................
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Leases in water depths of 400 meters
to less than 800 meters will be offered
with a 5-year term with the opportunity
to earn an extension of 3 additional
years (5+3 years). The MMS is not
offering leases in the sale with an 8-year
term for these water depths as provided
by regulations at 30 CFR 256.37(a)(3).
This change relieves the MMS of the
administrative burden of taking action
to cancel a lease, and instead requires
the lessee to apply for an extension with
evidence that it has earned it by
spudding a well to secure MMS
approval.
A new lease term of 7 years with the
opportunity to earn an extension of an
additional 3 years (7+3 years) will apply
to leases instead of the previous 10-year
lease term in water depths of 800 to less
than 1,600 meters. The deepwater
challenges and drilling difficulties
justifying longer lease terms under the
OCSLA in 800 to less than 1,600 meters
have diminished considerably, although
not completely, over the last 25 years.
The proposed 7+3 years lease term
recognizes that exploration can typically
be undertaken within the initial 7-year
lease term, but development still may
require the full 10-year term. In both the
400–800 and 800–1,600 meter cases, the
lease expires at the end of the initial
period if no well has been spudded
before the end of the 5th or 7th year,
respectively.
Initial Periods: 5 years for blocks in
water depths of less than 400 meters
(subject to administrative requirements
noted below, spudding of an ultra-deep
exploratory well within the 5-year
initial lease term will extend the lease
term to 8 years); 5 years for blocks in
water depths of 400 to less than 800
meters (subject to administrative
requirements noted below, the initial
lease term will be extended to 8 years
conditional upon the receipt of evidence
of the spudding of an exploratory well
within the initial 5-year lease term); 7
years for blocks in water depths of 800
meters to less than 1,600 meters (subject
to administrative requirements noted
below, the initial lease term will be
extended to 10 years upon receipt of
evidence of the spudding of an
exploratory well within the initial 7year lease term); and 10 years for blocks
in water depths of 1,600 meters or
deeper.
5 years and +3 years for drilling >25,000 feet TVD SS (see Extensions of Initial Periods below).
5 years and +3 years for drilling (see Extensions of Initial Periods below).
7 years and +3 years for drilling (see Extensions of Initial Periods below).
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Water depth (meters)
Term (years)
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1,600+ ............................................................
Extensions of Initial Periods:
1. The 5-year initial lease term 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 first 5 years of the
initial lease term. The 3-year extension
will be granted in cases where the well
is drilled to a target below 25,000 feet
TVD SS and may also be in cases where
the well does not reach a depth below
25,000 feet TVD SS due to mechanical
or safety reasons.
In order for the 5-year initial lease
term 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 lease
term with a hydrocarbon target below
25,000 feet TVD SS, the regulations
found at 30 CFR 250.175 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 lease term that targets
hydrocarbons below 25,000 feet TVD
SS, suspensions authorized by the
regulations then in effect will be
available, but the 3-year extension will
not be available. Before the end of the
8th year, the lessee may seek a
suspension under the regulations then
in effect.
2. The 5-year initial lease term for a
lease in water depths of 400 meters to
less than 800 meters and issued from
this sale will be extended to 8 years, if
a well is spudded within the initial 5year lease term; otherwise, the lease
expires on its own terms.
In order for the 5-year initial lease
term to be extended to 8 years, the
lessee is required to submit to the
appropriate District Manager within 30
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10 years.
days after spudding an exploratory well
a letter providing the well number and
spud date, and requesting confirmation
of a 3-year extension of the initial lease
term. The District Manager will review
the request and make a determination.
A written response will be sent to the
lessee documenting the District
Manager’s decision within 30 days of
receipt of the request. For an extension
to be granted, the District Manager must
concur in writing that the conditions
have been met to extend the lease term
3 years. Before the end of the 5th year
on a lease without a well or the 8th year
on a lease with a timely well, the lessee
may seek a suspension under the
regulations then in effect.
3. The 7-year initial lease term for a
lease in water depths of 800 meters to
less than 1,600 meters and issued from
this sale will be extended to 10 years if
a well is spudded within the initial 7year lease term; otherwise the lease
expires on its own terms.
In order for the 7-year initial lease
term to be extended to 10 years, the
lessee is required to submit to the
appropriate District Manager, within 30
days after spudding an exploratory well
a letter providing the well number and
spud date, and requesting confirmation
of a 3-year extension of the initial lease
term. The District Manager will review
the request and make a determination.
A written response will be sent to the
lessee documenting the District
Manager’s decision within 30 days of
receipt of the request. For an extension
to be granted, the District Manager must
concur in writing that the conditions
have been met to extend the lease term
3 years.
Before the end of the 7th year on a
lease without a well or the 10th year on
a lease with a timely well, the lessee
may seek a suspension under the
regulations then in effect.
On November 16, 2009 MMS
published the Proposed Notice of Sale
for Central Gulf of Mexico Sale 213.
Included in the proposed terms and
conditions for Sale 213 were two new
lease terms. A new 5+3 years term in
400 to less than 800 meters of water
replaced the previous 8-year lease term
that was subject to a requirement to start
drilling by the 5th year and a new lease
term of 7 years with an earned extension
of an additional 3 years (7+3 years) was
substituted for the previous 10-year
lease term in 800 to less than 1,600
meters of water. After carefully
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considering all written comments on the
proposed 5+3 years and 7+3 years lease
terms, the MMS has decided to proceed
with the shortened lease terms for Sale
213.
The MMS received 9 public
comments on the new lease terms in
response to the Proposed Notice of Sale
for Central Gulf of Mexico Sale 213,
published on November 16, 2009. Of the
nine comments, five were from oil and
gas companies, two from industry trade
organizations and two from non-profit
organizations. Copies of these comment
letters are posted at https://
www.gomr.mms.gov/homepg/lsesale/
213/cgom213.html. All of the comments
that specifically addressed the 5+3 years
lease term in 400 to less than 800 meters
expressed tentative or outright support.
All of the comment letters, except one,
expressed concern about the stricter 7+3
years lease term in 800 to less than
1,600 meters water depth and the
impact on OCS development. The
concerns raised in these letters are
addressed below.
Comment: The most common theme
among commenters was that some
leases take longer than 7 years to get
‘‘drill ready’’ due to poor seismic
imaging and the increasingly complex
geological challenges in the maturing
Gulf of Mexico basin. Most of the
remaining undiscovered economic
reservoirs are very deep, subsalt and
include the challenges of high pressure
and high temperature that require long
periods of time to acquire and process
seismic images before risking an
exploratory well that has a small chance
of producing a commercial discovery.
Commenters suggested that the 10-year
lease term should remain, or
suspensions should be granted for
seismic imaging and reprocessing.
MMS Response: The MMS recognizes
the risks and challenges of ultra deep
and subsalt plays and offers the
following rationale for the adequacy of
the new initial periods in this sale:
• The MMS expects a substantial
amount of geological and geophysical
(G&G) work to be completed prior to
bidding on the lease.
• Seven-year lease terms are normally
sufficient for an operator to evaluate
seismic data and commence drilling in
the respective water depths. This is
confirmed by the statistical data on
producing deepwater leases that have
completed their primary terms in 800 to
less than 1,600 meters. Generally, those
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that were not drilled by year 7 were not
drilled until after lease year 10. That
means they confronted circumstances
that prevented drilling for reasons
beyond the lessee’s control and thus
were authorized extensions beyond the
10-year primary term through MMS
approved suspensions or inclusion in an
approved federal unit being maintained
by lease-holding operations. The
flexibility to grant suspensions on a
case-by-case basis or evaluate potential
unitization agreements is not affected by
the lease term changes beginning with
this sale.
• If an operator does not explore a
lease during the revised initial term and
the lease expires, another operator with
a different perspective on the G&G and
drilling may timely acquire and
expeditiously drill the acreage.
• Allowing lengthy periods for
interpreting seismic data, planning and
drilling an exploratory well is not
consistent with promoting diligent
development as mandated by the OCS
Lands Act. We anticipate continued
improvements in seismic imaging and
processing techniques leading to shorter
timelines. The MMS has found that few
exploratory wells resulted from changes
to the suspension regulations issued in
2002 and 2005 under 30 CFR 250.175(b)
and (c) as related to subsalt and ultradeep targets. Although these regulations
apply to leases in less than 800 meters
of water depth, it is reasonable to expect
a similar result in water depths of 800
meters or deeper. Accordingly, MMS
maintains that the 5- and 7-year initial
terms are adequate time periods to
interpret seismic data, plan and begin
an exploratory well.
Comment: Several commenters
suggested that the initial lease term
should consider MMS’ ability to grant
suspensions beyond the initial term for
actions or events outside of a lessee’s
control even if they have not drilled an
exploratory well.
MMS Response: For the 5+3 years and
7+3 lease years terms, the initial periods
are 5 and 7 years and the extended
initial periods are 8 and 10 years,
respectively. MMS has the authority to
grant suspensions as specified by
regulation (30 CFR 250.168–177) under
certain conditions. Normally,
suspensions of operations (SOO’s) are
granted in situations where an operator
was scheduled to commence a leaseholding operation within the term of a
lease but was prevented from doing so
for reasons beyond their control.
Reasons beyond the control of the lessee
may include unforeseen circumstances
such as adverse weather, unavoidable
accidents, or short delays in a
prearranged rig release date. The MMS
will continue to consider SOO’s
consistent with the regulations for these
unique cases.
Comment: Several commenters
suggested that MMS has already taken
measures that encourage lessees to
explore their leases. For example, the
two-step rental rates in leases greater
than 400 meters provide companies
with an incentive to efficiently explore,
develop, and produce their leases. Fair
market value, diligence and expeditious
development are already achieved
through the existing lease terms and
regulations.
One comment letter from
Environment America espoused the
opposing view. It supported further
increasing the rental rates specifically in
years 9 and 10 of the lease, asserting
that increasing rental rates over the
years of the lease encourages diligence
by lease holders.
MMS Response: While the two-step
rental in leases 400 meters and greater
provides a fiscal incentive to lessees to
expeditiously develop a lease, DOI
cannot rely only on a fiscal lease
provision to achieve programmatic goals
across all leases. The initial lease term
provides an administrative mechanism
to ensure that, absent unusual
circumstances, active leases will
commence exploration by a specific
time following acquisition. Moreover,
statistics on producing deepwater leases
that have completed their primary term
in the last 5 years show that most of the
leases in 800 to less than 1,600 meters
have been able to spud a well by year
7. Generally, leases not drilled by year
7 were first drilled after lease year 10,
meaning they received MMS approved
suspensions or unitization with other
leases where timely drilling did occur.
In addition, starting with this sale,
MMS will require that the lessee
commence an exploration well to hold
a lease located in 800 to 1,600 meters of
water depth beyond year 7 of the initial
lease term. If that well encounters
potentially commercial quantities of oil
and gas, typically that alone will be
sufficient cause to undertake timely
development. If that well is dry, then
the lessee can benefit from accelerated
tax write-offs by timely relinquishing
the lease. Accordingly, it may not be
necessary or even desirable to further
raise rentals in years 9 and 10 of the
extended lease term to encourage
diligent exploration and development.
Comment: Chevron suggested that in
the event MMS decides to move forward
with issuing leases for 7-year terms with
3-year extensions, the Final Notice of
Sale for OCS Lease Sale 213 should be
modified to clarify that 7-year leases
will be ‘‘extended to 10 years if a well
is spudded on the lease or in an
approved unit which includes the lease
within the initial 7-year lease term.’’
Chevron added that they believe it is
important to include the underlined
language in the preceding sentence to
ensure that there is no
misunderstanding as to when the 3-year
extension will or will not be granted.
MMS Response: The comment by
Chevron suggests a change is needed in
unitization policy in conjunction with
MMS shortening certain lease terms.
The MMS disagrees with Chevron’s
implication that we should change or
need to formally clarify in the lease
instrument a unitization policy that
already is addressed in Article 17.2(a) of
the model Unit Agreement that we are
not modifying at this time. The MMS
intends to continue following these
existing unitization provisions under
the new lease term policy that is
commencing with this sale.
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 213 Package. Please
note that bonus bids must be in whole
dollar amounts (i.e., any cents will be
disregarded by the MMS).
Rental Rates: Annual 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.
SALE 213 RENTAL RATES PER ACRE OR FRACTION THEREOF
Water depth in meters
Years 1–5
0 to <200 ........................................................................................................................................
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$14.00, $21.00 & $28.00.
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SALE 213 RENTAL RATES PER ACRE OR FRACTION THEREOF—Continued
Water depth in meters
Years 1–5
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200 to <400 ....................................................................................................................................
400 to <800 ....................................................................................................................................
800+ ................................................................................................................................................
Escalating Rental Rates for leases with
an approved extension: Any lease in
water depths less than 400 meters and
granted a 3-year extension beyond the 5year initial period as provided above
will pay an 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 3year 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.
Royalty Rate: Leases will incorporate
an 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: Leases will
incorporate a $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
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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 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, the regulations offer RSVs to
leases in 200 to less than 400 meters of
water that are the same as the RSVs that
were previously offered in shallower
water, i.e., in zero to 200 meters of
water. These RSV incentives are
conditional on applicable price
thresholds and require that wells
completed from 15,000 to 20,000 feet
TVD SS on leases in 200 to less than 400
meters of water must begin production
before May 3, 2013.
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 the Energy Policy Act of
2005 (EPAct05). Section 345 directs
continuation of the MMS deepwater
incentive program utilized since 2001 in
the GOM 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 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
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11.00
11.00
Years 6, 7, & 8+
$22.00, $33.00 & $44.00.
$16.00.
$16.00.
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. The implicit price
deflator adjustment to determine the
2009 price thresholds will occur in late
March 2010 when the Bureau of
Economic Analysis issues its 2009
inflation estimate.
(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
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Federal Register / Vol. 75, No. 29 / Friday, February 12, 2010 / Notices
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 the 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,
Central Planning Area, Lease Sale 213,
March 17, 2010, Stipulations and
Deferred Blocks’’ depicts the blocks on
which one or more of 13 lease
stipulations apply: (1) Topographic
Features; (2) Live Bottoms; (3) Military
Areas; (4) Evacuation; (5) Coordination;
(6) Blocks South of Baldwin County,
Alabama; (7) Law of the Sea Convention
Royalty Payment; (8) Protected Species;
(9) Limitation on Use of Seabed and
Water Column in the Vicinity of the
Approved Port Pelican Offshore
Liquefied Natural Gas (LNG) Deepwater
Port Receiving Terminal, Vermilion
Area, Blocks 139 and 140; (10) Below
Seabed Operations on Mississippi
Canyon, Block 920; (11) Below Seabed
Operations on a Portion of Mississippi
Canyon, Block 650; (12) Below Seabed
Operations on a Portion of Walker
Ridge, Blocks 293 and 294; and (13)
Below Seabed Operations on a Portion
of Mississippi Canyon Blocks 692 and
735.
The texts of the stipulations are
contained in the document ‘‘Lease
Stipulations, Central Planning Area, Oil
and Gas Lease Sale 213, Final Notice of
Sale’’ included in this Final NOS 213
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Package. In addition, the ‘‘List of Blocks
Available for Leasing’’ contained in the
Final NOS 213 Package identifies the
lease stipulations applicable to each
listed block.
Information to Lessees: The Final
NOS 213 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
213, not to be opened until 9 a.m.,
Wednesday, March 17, 2010.’’ 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 that must be 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 213
Package.
Please also refer to the Telephone
Numbers/Addresses of Bidders Form
included within the Final NOS 213
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
61171 on November 23, 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 the
GOM Region Adjudication Unit.
Designated signatories must be
authorized to bind their respective legal
business entity (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).
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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 deposit 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 213 Package).
Withdrawal of Bids: Once submitted,
bid(s) may not be withdrawn unless the
Regional Director (RD) receives a
written request for withdrawal from the
company who submitted the bid(s),
prior to 10 a.m. on Tuesday, March 16,
2010. 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 Gulf of
Mexico 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
fraction of an acre 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
‘‘List of Blocks Available for Leasing’’
included in the Final NOS 213 Package.
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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 Daylight
Saving 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 213,
following the detailed instructions
contained in the document ‘‘Instructions
for Making EFT Bonus Payments,’’
which can be found on the MMS GOM
Web site at: https://www.gomr.mms.gov/
homepg/lsesale/213/cgom213.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,
MMS requests that only one transaction
be used for payment of the four-fifths
bonus bid amount and the first year’s
rental.
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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, including those set forth in the
documents contained in the associated
Final NOS 213 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
that 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 be considered for
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13:37 Feb 11, 2010
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acceptance. The Attorney General may
also review the results of the lease sale
prior to the acceptance of bids and
issuance of leases for anti-trust issues.
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: The MMS
requires each company that has been
awarded a lease to execute all copies of
the lease (Form MMS–2005 (October
2009), 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 part 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
GOM 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 213, 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
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6881
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
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, prestack or post-stack and time or depth);
areal extent (i.e., number of line miles
for 2–D or number of blocks for 3–D)
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 poststack 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
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Federal Register / Vol. 75, No. 29 / Friday, February 12, 2010 / Notices
cprice-sewell on DSK2BSOYB1PROD with NOTICES
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.
VerDate Nov<24>2008
13:37 Feb 11, 2010
Jkt 220001
Please note that you may now submit
the GDIS information table digitally on
a CD as an Excel spreadsheet. Refer to
the Final NOS 213 Package for more
details 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 RD of the MMS
Gulf of Mexico Region has the
discretion to change any date, time,
and/or location specified in the Final
NOS 213 Package in case of a force
majeure event which the RD deems may
interfere with the carrying out of a fair
PO 00000
Frm 00014
Fmt 4703
Sfmt 9990
and proper lease sale process. Such
events may include, but are not limited
to, natural disasters (e.g., earthquakes,
hurricanes, and floods), wars, riots, fire,
strikes, civil disorder, acts of terrorism,
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.
Dated: February 4, 2010.
S. Elizabeth Birnbaum,
Director, Minerals Management Service.
[FR Doc. 2010–3002 Filed 2–11–10; 8:45 am]
BILLING CODE 4310–MR–P
E:\FR\FM\12FEN1.SGM
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Agencies
[Federal Register Volume 75, Number 29 (Friday, February 12, 2010)]
[Notices]
[Pages 6874-6882]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-3002]
-----------------------------------------------------------------------
DEPARTMENT OF THE INTERIOR
Minerals Management Service
Outer Continental Shelf (OCS) Central Planning Area (CPA) Gulf of
Mexico (GOM) Oil and Gas Lease Sale 213
AGENCY: Minerals Management Service, Interior.
ACTION: Final Notice of Sale (NOS) 213.
-----------------------------------------------------------------------
SUMMARY: On Wednesday, March 17, 2010, the Minerals Management Service
(MMS) will open and publicly announce bids received for blocks offered
in CPA Oil and Gas Lease Sale 213, 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 213 Package contains information essential
to bidders, and bidders are responsible for knowing the information
within the documents contained in the Package.
DATES: Public bid reading for the CPA Oil and Gas Lease Sale 213 will
begin at 9 a.m., Wednesday, March 17, 2010, at the Louisiana Superdome,
1500 Sugarbowl Drive, New Orleans, Louisiana, 70112. The lease sale
will be held in the St. Charles Club Room on the second floor (Loge
Level). Entry to the Superdome will be on the Poydras Street side of
the building through Gate A on the Ground or Plaza Level, and parking
should be available at Garage 6. All times referred to in this document
are local New Orleans times, unless otherwise specified.
Please Note: Starting with this sale, MMS is revising the lease
terms for blocks in water depths of 400 meters to less than 1,600
meters. Blocks in 400 to less than 800 meters change from an initial
8-year lease term (where a well has to be spudded within the first 5
years of the initial 8-year term to avoid lease cancellation) to a
5-year initial lease term (where spudding a well within the initial
lease term would automatically extend the lease term to 8 years).
Blocks in 800 to less than 1,600 meters change from a 10-year
initial lease term to a 7-year initial lease term (where spudding a
well within the initial lease term would automatically extend the
lease term to 10 years). The MMS received 9 comments on the lease
terms changes in the Proposed Notice of Sale.
ADDRESSES: Bidders can obtain a Final NOS 213 Package containing the
NOS and the supporting documents by writing or calling the: Gulf of
Mexico Region Public Information Unit, Minerals Management Service,
1201 Elmwood Park Boulevard, New Orleans, Louisiana 70123-2394, (504)
736-2519 or (800) 200-GULF, MMS GOM Internet Web site 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, March 16, 2010, 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 CPA Oil and Gas Lease
Sale 213, Please Deliver to Ms. Nancy Kornrumpf, 6th Floor,
Immediately.
Please note: Bidders mailing bid(s) are advised to call Ms.
Nancy Kornrumpf at (504) 736-2726 or Ms. Cindy Thibodeaux at (504)
736-2809 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 may extend the Bid Submission
Deadline. Bidders may call (504) 736-0557 or access our MMS Gulf of
Mexico Internet 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 CPA
Oil and Gas Lease Sale 213 all blocks and partial blocks listed in the
document ``List of Blocks Available for Leasing'' included in the Final
NOS 213 Package. All of these blocks are shown on the following leasing
maps and Official Protraction Diagrams (OPD's):
Outer Continental Shelf Leasing Maps--Louisiana Map Numbers 1 Through 12
(These 30 maps sell for $2.00 each)
LA1........................................ West Cameron Area (Revised November 1, 2000).
LA1A....................................... West Cameron Area, West Addition (Revised February 28, 2007).
LA1B....................................... West Cameron Area, South Addition (Revised February 28, 2007).
LA2........................................ East Cameron Area (Revised November 1, 2000).
LA2A....................................... East Cameron Area, South Addition (Revised November 1, 2000).
LA3........................................ Vermilion Area (Revised November 1, 2000).
LA3A....................................... South Marsh Island Area (Revised November 1, 2000).
LA3B....................................... Vermilion Area, South Addition (Revised November 1, 2000).
LA3C....................................... South Marsh Island Area, South Addition (Revised November 1, 2000).
[[Page 6875]]
LA3D....................................... South Marsh Island Area, North Addition (Revised November 1, 2000).
LA4........................................ Eugene Island Area (Revised November 1, 2000).
LA4A....................................... Eugene Island Area, South Addition (Revised November 1, 2000).
LA5........................................ Ship Shoal Area (Revised November 1, 2000).
LA5A....................................... Ship Shoal Area, South Addition (Revised November 1, 2000).
LA6........................................ South Timbalier Area (Revised November 1, 2000).
LA6A....................................... South Timbalier Area, South Addition (Revised November 1, 2000).
LA6B....................................... South Pelto Area (Revised November 1, 2000).
LA6C....................................... Bay Marchand Area (Revised November 1, 2000).
LA7........................................ Grand Isle Area (Revised November 1, 2000).
LA7A....................................... Grand Isle Area, South Addition (Revised February 17, 2004).
LA8........................................ West Delta Area (Revised November 1, 2000).
LA8A....................................... West Delta Area, South Addition (Revised November 1, 2000).
LA9........................................ South Pass Area (Revised November 1, 2000).
LA9A....................................... South Pass Area, South and East Additions (Revised November 1, 2000).
LA10....................................... Main Pass Area (Revised November 1, 2000).
LA10A...................................... Main Pass Area, South and East Additions (Revised November 1, 2000).
LA10B...................................... Breton Sound Area (Revised November 1, 2000).
LA11....................................... Chandeleur Area (Revised November 1, 2000).
LA11A...................................... Chandeleur Area, East Addition (Revised November 1, 2000).
LA12....................................... Sabine Pass Area (Revised February 28, 2007).
Outer Continental Shelf Official Protraction Diagrams
(These 19 diagrams sell for $2.00 each.)
NG15-02.................................... Garden Banks (Revised February 28, 2007).
NG15-03.................................... Green Canyon (Revised November 1, 2000).
NG15-05.................................... Keathley Canyon (Revised February 28, 2007).
NG15-06.................................... Walker Ridge (Revised November 1, 2000).
NG15-08.................................... Sigsbee Escarpment (Revised February 28, 2007).
NG15-09.................................... Amery Terrace (Revised October 25, 2000).
NG16-01.................................... Atwater Valley (Revised November 1, 2000).
NG16-02.................................... Lloyd Ridge (Revised August 1, 2008).
NG16-04.................................... Lund (Revised November 1, 2000).
NG16-05.................................... Henderson (Revised August 1, 2008).
NG16-07.................................... Lund South (Revised November 1, 2000).
NG16-08.................................... Florida Plain (Revised February 28, 2007).
NH15-12.................................... Ewing Bank (Revised November 1, 2000).
NH16-04.................................... Mobile (Revised November 1, 2000).
NH16-05.................................... Pensacola (Revised February 28, 2007).
NH16-07.................................... Viosca Knoll (Revised November 1, 2000).
NH16-08.................................... Destin Dome (Revised February 28, 2007).
NH16-10.................................... Mississippi Canyon (Revised November 1, 2000).
NH16-11.................................... De Soto Canyon (Revised August 1, 2008).
Bidders are advised that the Central-Eastern Planning Area Boundary
was revised to match the Federal OCS Administrative Boundary for the
DeSoto Canyon, Lloyd Ridge, and Henderson Areas. The boundary splits
blocks that were formerly ``stair-stepped'' and can be seen on the
``Stipulations and Deferred Blocks'' or ``Lease Terms and Economic
Conditions'' maps included in the Final NOS 213 Package. The boundaries
along the Pensacola, Destin Dome, and Florida Plain Areas will remain
``stair-stepped'' for this lease sale, as they were for CPA Sale 208.
The administrative boundaries can also be viewed at: https://www.mms.gov/ld/AdminBoundaries.htm.
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 GOM
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 CPA leasing maps and OPD's, please
refer to 66 FR 28002 (published May 21, 2001), 69 FR 23211 (published
April 28, 2004), 72 FR 27590 (published May 16, 2007), 72 FR 35720
(published June 29, 2007), and 73 FR 63505 (October 24, 2008). In
addition, Supplemental Official OCS Block Diagrams (SOBD's) are
available for blocks that contain the ``U.S. 200 Nautical Mile Limit''
line and the ``U.S.-Mexico Maritime Boundary'' line. These SOBD's are
also available from the GOM Region Public Information Unit. For
additional information, please call Ms. Tara Montgomery at (504) 736-
5722.
All blocks are shown on these leasing maps and OPD's. 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 the Final NOS 213 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 ``Central
Planning Area Lease Sale 213--Unleased Split Blocks and Available
Unleased Acreage of Blocks with Aliquots and Irregular Portions Under
Lease or Deferred'' included in the Final NOS 213 Package.
Areas Not Available for Leasing: The following whole and partial
blocks are not offered for lease in this lease sale:
Although currently unleased, the bid decision on the following
block is under appeal and bids will not be accepted:
Mississippi Canyon (OPD NH16-10)
Block 943
This block is deferred until measures to ensure the safety of
decommissioning operations are completed:
Green Canyon (OPD NG15-03)
Block 20
Whole blocks and portions of blocks that lie within the 1.4
nautical mile buffer zone north of the ``Western Gap'' continental
shelf boundary between the United States and Mexico:
[[Page 6876]]
Amery Terrace (OPD NG 15-09)
Whole Blocks: 280, 281, 318 through 320, and 355 through 359
Portions of Blocks: 235 through 238, 273 through 279, and 309 through
317
Sigsbee Escarpment (OPD NG 15-08)
Whole Blocks: 239, 284, 331 through 341
Portions of Blocks: 151, 195, 196, 240, 241, 285 through 298, 342
through 349
Whole blocks and portions of blocks that are adjacent to or beyond
the United States Exclusive Economic Zone, in or adjacent to the area
known as the northern portion of the Eastern Gap:
Lund South (OPD NG 16-07)
Whole Blocks: 128, 129, 169 through 173, 208, through 217, 248 through
261, 293 through 305, and 349
Henderson (OPD NG 16-05)
Whole Blocks: 466, 508 through 510, 551 through 554, 594 through 599,
637 through 643, 679 through 687, 722 through 731, 764 through 775, 807
through 819, 849 through 862, 891 through 905, 933 through 949, and 975
through 992
Portions of Blocks: 467, 511, 555, 556, 600, 644, 688, 732, 776, 777,
820, 821, 863, 864, 906, 907, 950, 993, and 994
Florida Plain (OPD NG 16-08)
Whole Blocks: 5 through 24, 46 through 67, 89 through 110, 133 through
154, 177 through 197, 221 through 240, 265 through 283, 309 through
327, and 363 through 370
Whole blocks and portions of blocks deferred by Gulf of Mexico
Energy Security Act:
Pensacola (OPD NH 16-05)
Blocks: 751 through 754, 793 through 798, 837 through 842, 881 through
886, 925 through 930, and 969 through 975
Destin Dome (OPD NH 16-08)
Whole Blocks: 1 through 7, 45 through 51, 89 through 96, 133 through
140, 177 through 184, 221 through 228, 265 through 273, 309 through
317, 353 through 361, 397 through 405, 441 through 450, 485 through
494, 529 through 538, 573 through 582, 617 through 627, 661 through
671, 705 through 715, 749 through 759, 793 through 804, 837 through
848, 881 through 892, 925 through 936, and 969 through 981
DeSoto Canyon (OPD NH 16-11)
Whole Blocks: 1 through 15, 45 through 59, and 92 through 102
Portions of Blocks: 16, 60, 61, 89 through 91, 103 through 105, and 135
through 147
Henderson (OPD NG 16-05)
Portions of Blocks: 114, 158, 202, 246, 290, 334, 335, 378, 379, 422,
and 423
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; 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 the lease. This language conforms this term of
OCS mineral leases with that of onshore, Bureau of Land Management
(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 will use the recently revised Form MMS-2005 (October 2009)
to convey leases; it can be viewed at: https://www.gomr.mms.gov/homepg/mmsforms/FormMMS-2005.pdf. The lease form will be modified with the
specific terms, conditions and stipulations applicable to each
individual lease. Addressed below are the collective terms, conditions,
and stipulations applicable to this sale. Where applicable, these
terms, conditions and stipulations will be incorporated into each lease
by addendum.
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, Central Planning Area,
Lease Sale 213, March 17, 2010, Lease Terms and Economic Conditions,''
for leases resulting from this lease sale.
Leases in water depths of 400 meters to less than 800 meters will
be offered with a 5-year term with the opportunity to earn an extension
of 3 additional years (5+3 years). The MMS is not offering leases in
the sale with an 8-year term for these water depths as provided by
regulations at 30 CFR 256.37(a)(3). This change relieves the MMS of the
administrative burden of taking action to cancel a lease, and instead
requires the lessee to apply for an extension with evidence that it has
earned it by spudding a well to secure MMS approval.
A new lease term of 7 years with the opportunity to earn an
extension of an additional 3 years (7+3 years) will apply to leases
instead of the previous 10-year lease term in water depths of 800 to
less than 1,600 meters. The deepwater challenges and drilling
difficulties justifying longer lease terms under the OCSLA in 800 to
less than 1,600 meters have diminished considerably, although not
completely, over the last 25 years. The proposed 7+3 years lease term
recognizes that exploration can typically be undertaken within the
initial 7-year lease term, but development still may require the full
10-year term. In both the 400-800 and 800-1,600 meter cases, the lease
expires at the end of the initial period if no well has been spudded
before the end of the 5th or 7th year, respectively.
Initial Periods: 5 years for blocks in water depths of less than
400 meters (subject to administrative requirements noted below,
spudding of an ultra-deep exploratory well within the 5-year initial
lease term will extend the lease term to 8 years); 5 years for blocks
in water depths of 400 to less than 800 meters (subject to
administrative requirements noted below, the initial lease term will be
extended to 8 years conditional upon the receipt of evidence of the
spudding of an exploratory well within the initial 5-year lease term);
7 years for blocks in water depths of 800 meters to less than 1,600
meters (subject to administrative requirements noted below, the initial
lease term will be extended to 10 years upon receipt of evidence of the
spudding of an exploratory well within the initial 7-year lease term);
and 10 years for blocks in water depths of 1,600 meters or deeper.
----------------------------------------------------------------------------------------------------------------
Water depth (meters) Term (years)
----------------------------------------------------------------------------------------------------------------
0 to <400............................................................... 5 years and +3 years for drilling
>25,000 feet TVD SS (see Extensions
of Initial Periods below).
400 to <800............................................................. 5 years and +3 years for drilling (see
Extensions of Initial Periods below).
800 to <1,600........................................................... 7 years and +3 years for drilling (see
Extensions of Initial Periods below).
[[Page 6877]]
1,600+.................................................................. 10 years.
----------------------------------------------------------------------------------------------------------------
Extensions of Initial Periods:
1. The 5-year initial lease term 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 first 5 years of the
initial lease term. The 3-year extension will be granted in cases where
the well is drilled to a target below 25,000 feet TVD SS and may also
be in cases where the well does not reach a depth below 25,000 feet TVD
SS due to mechanical or safety reasons.
In order for the 5-year initial lease term 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 lease term with a hydrocarbon target below 25,000 feet TVD SS,
the regulations found at 30 CFR 250.175 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 lease term that targets hydrocarbons below 25,000
feet TVD SS, suspensions authorized by the regulations then in effect
will be available, but the 3-year extension will not be available.
Before the end of the 8th year, the lessee may seek a suspension under
the regulations then in effect.
2. The 5-year initial lease term for a lease in water depths of 400
meters to less than 800 meters and issued from this sale will be
extended to 8 years, if a well is spudded within the initial 5-year
lease term; otherwise, the lease expires on its own terms.
In order for the 5-year initial lease term to be extended to 8
years, the lessee is required to submit to the appropriate District
Manager within 30 days after spudding an exploratory well a letter
providing the well number and spud date, and requesting confirmation of
a 3-year extension of the initial lease term. The District Manager will
review the request and make a determination. A written response will be
sent to the lessee documenting the District Manager's decision within
30 days of receipt of the request. For an extension to be granted, the
District Manager must concur in writing that the conditions have been
met to extend the lease term 3 years. Before the end of the 5th year on
a lease without a well or the 8th year on a lease with a timely well,
the lessee may seek a suspension under the regulations then in effect.
3. The 7-year initial lease term for a lease in water depths of 800
meters to less than 1,600 meters and issued from this sale will be
extended to 10 years if a well is spudded within the initial 7-year
lease term; otherwise the lease expires on its own terms.
In order for the 7-year initial lease term to be extended to 10
years, the lessee is required to submit to the appropriate District
Manager, within 30 days after spudding an exploratory well a letter
providing the well number and spud date, and requesting confirmation of
a 3-year extension of the initial lease term. The District Manager will
review the request and make a determination. A written response will be
sent to the lessee documenting the District Manager's decision within
30 days of receipt of the request. For an extension to be granted, the
District Manager must concur in writing that the conditions have been
met to extend the lease term 3 years.
Before the end of the 7th year on a lease without a well or the
10th year on a lease with a timely well, the lessee may seek a
suspension under the regulations then in effect.
On November 16, 2009 MMS published the Proposed Notice of Sale for
Central Gulf of Mexico Sale 213. Included in the proposed terms and
conditions for Sale 213 were two new lease terms. A new 5+3 years term
in 400 to less than 800 meters of water replaced the previous 8-year
lease term that was subject to a requirement to start drilling by the
5th year and a new lease term of 7 years with an earned extension of an
additional 3 years (7+3 years) was substituted for the previous 10-year
lease term in 800 to less than 1,600 meters of water. After carefully
considering all written comments on the proposed 5+3 years and 7+3
years lease terms, the MMS has decided to proceed with the shortened
lease terms for Sale 213.
The MMS received 9 public comments on the new lease terms in
response to the Proposed Notice of Sale for Central Gulf of Mexico Sale
213, published on November 16, 2009. Of the nine comments, five were
from oil and gas companies, two from industry trade organizations and
two from non-profit organizations. Copies of these comment letters are
posted at https://www.gomr.mms.gov/homepg/lsesale/213/cgom213.html. All
of the comments that specifically addressed the 5+3 years lease term in
400 to less than 800 meters expressed tentative or outright support.
All of the comment letters, except one, expressed concern about the
stricter 7+3 years lease term in 800 to less than 1,600 meters water
depth and the impact on OCS development. The concerns raised in these
letters are addressed below.
Comment: The most common theme among commenters was that some
leases take longer than 7 years to get ``drill ready'' due to poor
seismic imaging and the increasingly complex geological challenges in
the maturing Gulf of Mexico basin. Most of the remaining undiscovered
economic reservoirs are very deep, subsalt and include the challenges
of high pressure and high temperature that require long periods of time
to acquire and process seismic images before risking an exploratory
well that has a small chance of producing a commercial discovery.
Commenters suggested that the 10-year lease term should remain, or
suspensions should be granted for seismic imaging and reprocessing.
MMS Response: The MMS recognizes the risks and challenges of ultra
deep and subsalt plays and offers the following rationale for the
adequacy of the new initial periods in this sale:
The MMS expects a substantial amount of geological and
geophysical (G&G) work to be completed prior to bidding on the lease.
Seven-year lease terms are normally sufficient for an
operator to evaluate seismic data and commence drilling in the
respective water depths. This is confirmed by the statistical data on
producing deepwater leases that have completed their primary terms in
800 to less than 1,600 meters. Generally, those
[[Page 6878]]
that were not drilled by year 7 were not drilled until after lease year
10. That means they confronted circumstances that prevented drilling
for reasons beyond the lessee's control and thus were authorized
extensions beyond the 10-year primary term through MMS approved
suspensions or inclusion in an approved federal unit being maintained
by lease-holding operations. The flexibility to grant suspensions on a
case-by-case basis or evaluate potential unitization agreements is not
affected by the lease term changes beginning with this sale.
If an operator does not explore a lease during the revised
initial term and the lease expires, another operator with a different
perspective on the G&G and drilling may timely acquire and
expeditiously drill the acreage.
Allowing lengthy periods for interpreting seismic data,
planning and drilling an exploratory well is not consistent with
promoting diligent development as mandated by the OCS Lands Act. We
anticipate continued improvements in seismic imaging and processing
techniques leading to shorter timelines. The MMS has found that few
exploratory wells resulted from changes to the suspension regulations
issued in 2002 and 2005 under 30 CFR 250.175(b) and (c) as related to
subsalt and ultra-deep targets. Although these regulations apply to
leases in less than 800 meters of water depth, it is reasonable to
expect a similar result in water depths of 800 meters or deeper.
Accordingly, MMS maintains that the 5- and 7-year initial terms are
adequate time periods to interpret seismic data, plan and begin an
exploratory well.
Comment: Several commenters suggested that the initial lease term
should consider MMS' ability to grant suspensions beyond the initial
term for actions or events outside of a lessee's control even if they
have not drilled an exploratory well.
MMS Response: For the 5+3 years and 7+3 lease years terms, the
initial periods are 5 and 7 years and the extended initial periods are
8 and 10 years, respectively. MMS has the authority to grant
suspensions as specified by regulation (30 CFR 250.168-177) under
certain conditions. Normally, suspensions of operations (SOO's) are
granted in situations where an operator was scheduled to commence a
lease-holding operation within the term of a lease but was prevented
from doing so for reasons beyond their control. Reasons beyond the
control of the lessee may include unforeseen circumstances such as
adverse weather, unavoidable accidents, or short delays in a
prearranged rig release date. The MMS will continue to consider SOO's
consistent with the regulations for these unique cases.
Comment: Several commenters suggested that MMS has already taken
measures that encourage lessees to explore their leases. For example,
the two-step rental rates in leases greater than 400 meters provide
companies with an incentive to efficiently explore, develop, and
produce their leases. Fair market value, diligence and expeditious
development are already achieved through the existing lease terms and
regulations.
One comment letter from Environment America espoused the opposing
view. It supported further increasing the rental rates specifically in
years 9 and 10 of the lease, asserting that increasing rental rates
over the years of the lease encourages diligence by lease holders.
MMS Response: While the two-step rental in leases 400 meters and
greater provides a fiscal incentive to lessees to expeditiously develop
a lease, DOI cannot rely only on a fiscal lease provision to achieve
programmatic goals across all leases. The initial lease term provides
an administrative mechanism to ensure that, absent unusual
circumstances, active leases will commence exploration by a specific
time following acquisition. Moreover, statistics on producing deepwater
leases that have completed their primary term in the last 5 years show
that most of the leases in 800 to less than 1,600 meters have been able
to spud a well by year 7. Generally, leases not drilled by year 7 were
first drilled after lease year 10, meaning they received MMS approved
suspensions or unitization with other leases where timely drilling did
occur.
In addition, starting with this sale, MMS will require that the
lessee commence an exploration well to hold a lease located in 800 to
1,600 meters of water depth beyond year 7 of the initial lease term. If
that well encounters potentially commercial quantities of oil and gas,
typically that alone will be sufficient cause to undertake timely
development. If that well is dry, then the lessee can benefit from
accelerated tax write-offs by timely relinquishing the lease.
Accordingly, it may not be necessary or even desirable to further raise
rentals in years 9 and 10 of the extended lease term to encourage
diligent exploration and development.
Comment: Chevron suggested that in the event MMS decides to move
forward with issuing leases for 7-year terms with 3-year extensions,
the Final Notice of Sale for OCS Lease Sale 213 should be modified to
clarify that 7-year leases will be ``extended to 10 years if a well is
spudded on the lease or in an approved unit which includes the lease
within the initial 7-year lease term.'' Chevron added that they believe
it is important to include the underlined language in the preceding
sentence to ensure that there is no misunderstanding as to when the 3-
year extension will or will not be granted.
MMS Response: The comment by Chevron suggests a change is needed in
unitization policy in conjunction with MMS shortening certain lease
terms. The MMS disagrees with Chevron's implication that we should
change or need to formally clarify in the lease instrument a
unitization policy that already is addressed in Article 17.2(a) of the
model Unit Agreement that we are not modifying at this time. The MMS
intends to continue following these existing unitization provisions
under the new lease term policy that is commencing with this sale.
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 213
Package. Please note that bonus bids must be in whole dollar amounts
(i.e., any cents will be disregarded by the MMS).
Rental Rates: Annual 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.
Sale 213 Rental Rates per Acre or Fraction Thereof
----------------------------------------------------------------------------------------------------------------
Water depth in meters Years 1-5 Years 6, 7, & 8+
----------------------------------------------------------------------------------------------------------------
0 to <200................................... $7.00 $14.00, $21.00 & $28.00.
[[Page 6879]]
200 to <400................................. 11.00 $22.00, $33.00 & $44.00.
400 to <800................................. 11.00 $16.00.
800+........................................ 11.00 $16.00.
----------------------------------------------------------------------------------------------------------------
Escalating Rental Rates for leases with an approved extension: 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. 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.
Royalty Rate: Leases will incorporate an 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: Leases will incorporate a $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 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, the regulations offer RSVs to leases in 200 to less than
400 meters of water that are the same as the RSVs that were previously
offered in shallower water, i.e., in zero to 200 meters of water. These
RSV incentives are conditional on applicable price thresholds and
require that wells completed from 15,000 to 20,000 feet TVD SS on
leases in 200 to less than 400 meters of water must begin production
before May 3, 2013.
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 the
Energy Policy Act of 2005 (EPAct05). Section 345 directs continuation
of the MMS deepwater incentive program utilized since 2001 in the GOM
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 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. The implicit
price deflator adjustment to determine the 2009 price thresholds will
occur in late March 2010 when the Bureau of Economic Analysis issues
its 2009 inflation estimate.
(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
[[Page 6880]]
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 the 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, Central Planning Area, Lease
Sale 213, March 17, 2010, Stipulations and Deferred Blocks'' depicts
the blocks on which one or more of 13 lease stipulations apply: (1)
Topographic Features; (2) Live Bottoms; (3) Military Areas; (4)
Evacuation; (5) Coordination; (6) Blocks South of Baldwin County,
Alabama; (7) Law of the Sea Convention Royalty Payment; (8) Protected
Species; (9) Limitation on Use of Seabed and Water Column in the
Vicinity of the Approved Port Pelican Offshore Liquefied Natural Gas
(LNG) Deepwater Port Receiving Terminal, Vermilion Area, Blocks 139 and
140; (10) Below Seabed Operations on Mississippi Canyon, Block 920;
(11) Below Seabed Operations on a Portion of Mississippi Canyon, Block
650; (12) Below Seabed Operations on a Portion of Walker Ridge, Blocks
293 and 294; and (13) Below Seabed Operations on a Portion of
Mississippi Canyon Blocks 692 and 735.
The texts of the stipulations are contained in the document ``Lease
Stipulations, Central Planning Area, Oil and Gas Lease Sale 213, Final
Notice of Sale'' included in this Final NOS 213 Package. In addition,
the ``List of Blocks Available for Leasing'' contained in the Final NOS
213 Package identifies the lease stipulations applicable to each listed
block.
Information to Lessees: The Final NOS 213 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 213, not to be opened until 9 a.m., Wednesday, March
17, 2010.'' 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 that must be
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 213
Package.
Please also refer to the Telephone Numbers/Addresses of Bidders
Form included within the Final NOS 213 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 61171 on
November 23, 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 the
GOM Region Adjudication Unit. Designated signatories must be authorized
to bind their respective legal business entity (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). 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 deposit 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 213 Package).
Withdrawal of Bids: Once submitted, bid(s) may not be withdrawn
unless the Regional Director (RD) receives a written request for
withdrawal from the company who submitted the bid(s), prior to 10 a.m.
on Tuesday, March 16, 2010. 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 Gulf of Mexico 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 fraction of an acre
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 ``List of Blocks Available for Leasing'' included
in the Final NOS 213 Package.
[[Page 6881]]
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 Daylight Saving 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 213, following
the detailed instructions contained in the document ``Instructions for
Making EFT Bonus Payments,'' which can be found on the MMS GOM Web site
at: https://www.gomr.mms.gov/homepg/lsesale/213/cgom213.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, 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,
including those set forth in the documents contained in the associated
Final NOS 213 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 that 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 be 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 for anti-trust issues. 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: The MMS requires each company that has been
awarded a lease to execute all copies of the lease (Form MMS-2005
(October 2009), 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 part 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 GOM
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 213, 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 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 2-D or number of blocks for 3-D) 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
[[Page 6882]]
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 note that you may now submit the GDIS information table
digitally on a CD as an Excel spreadsheet. Refer to the Final NOS 213
Package for more details 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 RD of the MMS Gulf of Mexico Region has the
discretion to change any date, time, and/or location specified in the
Final NOS 213 Package in case of a force majeure event 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 (e.g., earthquakes, hurricanes, and floods), wars, riots,
fire, strikes, civil disorder, acts of terrorism, 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.
Dated: February 4, 2010.
S. Elizabeth Birnbaum,
Director, Minerals Management Service.
[FR Doc. 2010-3002 Filed 2-11-10; 8:45 am]
BILLING CODE 4310-MR-P