Outer Continental Shelf (OCS) Western Planning Area (WPA) Gulf of Mexico (GOM) Oil and Gas Lease Sale 229, 65408-65413 [2012-26396]

Agencies

• DEPARTMENT OF THE INTERIOR
• Bureau of Ocean Energy Management

[Federal Register Volume 77, Number 208 (Friday, October 26, 2012)]
[Notices]
[Pages 65408-65413]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-26396]


-----------------------------------------------------------------------

DEPARTMENT OF THE INTERIOR

Bureau of Ocean Energy Management


Outer Continental Shelf (OCS) Western Planning Area (WPA) Gulf of 
Mexico (GOM) Oil and Gas Lease Sale 229

AGENCY: Bureau of Ocean Energy Management (BOEM), Interior.

ACTION: Final Notice of Sale

-----------------------------------------------------------------------

SUMMARY: On Wednesday, November 28, 2012, BOEM will open and publicly 
announce bids received for the blocks offered in the Western Planning 
Area (WPA) Sale 229, in accordance with provisions of the OCS Lands Act 
(OCSLA) (43 U.S.C. 1331-1356, as amended) and the regulations issued 
thereunder (30 CFR part 556). The Final Notice of Sale (NOS) 229 
Package (Final NOS Package) contains information essential to potential 
bidders, and bidders are charged with the knowledge of the documents 
contained in that package. The Final NOS Package may be obtained from 
BOEM, as provided below.

DATES: Public bid reading for WPA Sale 229 will begin at 9 a.m., 
Wednesday, November 28, 2012, at the Mercedes-Benz 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 Level, and parking will be 
available at Garage 6. All times referred to in this document are local 
New Orleans times, unless otherwise specified.

ADDRESSES: Interested parties can obtain a Final NOS Package by 
writing, calling, or visiting the Web site: Gulf of Mexico Region 
Public Information Office, Bureau of Ocean Energy Management, 1201 
Elmwood Park Boulevard, New Orleans, Louisiana 70123-2394, (504) 736-
2519 or (800) 200-GULF. BOEM Internet Web site at:https://www.boem.gov/About-BOEM/BOEM-Regions/Gulf-of-Mexico-Region/Index.aspx.
    Filing of Bids: Bidders must submit sealed bids to the address 
below, between 8 a.m. and 4 p.m. on normal working days, and from 8 
a.m. to the Bid Submission Deadline of 10:00 a.m. on Tuesday, November 
27, 2012, the day before the lease sale. If bids are mailed, please 
address the envelope containing all of the sealed bids as follows:

Attention: Leasing and Financial Responsibility Section, BOEM Gulf of 
Mexico Region, 1201 Elmwood Park Boulevard, New Orleans, Louisiana 
70123-2394.
Contains Sealed Bids for WPA Oil and Gas Lease Sale 229
Please Deliver to Ms. Cindy Thibodeaux or Ms. Kasey Couture, 2nd Floor, 
Immediately

    Please Note: 1. Bidders mailing bids are advised to call Ms. 
Cindy Thibodeaux at (504) 736-2809, or Ms. Kasey Couture at (504) 
736-2909, immediately after putting their bids in the mail. If BOEM 
receives bids later than the Bid Submission Deadline, the BOEM 
Regional Director (BOEM RD) will return those bids unopened to 
bidders. Should an unexpected event such as flooding or travel 
restrictions be significantly disruptive to bid submission, BOEM may 
extend the Bid Submission Deadline. Bidders may call (504) 736-0557 
or access the BOEM Gulf of Mexico Internet Web site at https://www.boem.gov/About-BOEM/BOEM-Regions/Gulf-of-Mexico-Region/Index.aspx for information about the possible extension of the Bid 
Submission Deadline due to such an event.
    2. Blocks or portions of blocks beyond the United States (U.S.) 
Exclusive Economic Zone are offered based upon provisions of the 
1982 Law of the Sea Convention.
    3. Blocks near the U.S.-Mexico maritime and continental shelf 
boundary could become subject to the Agreement between the United 
States of America and the United Mexican States Concerning 
Transboundary Hydrocarbon Reservoirs in the Gulf of Mexico 
(Agreement). Bidders are advised to refer to the Bids on Blocks near 
U.S.-Mexico Maritime and Continental Shelf Boundary portion of this 
document for detailed information pertaining to the opening of bids 
affecting blocks in this area.

    Areas Offered For Leasing: In WPA Sale 229, BOEM is offering to 
lease all blocks and partial blocks listed in the document ``List of 
Blocks Available for Leasing'' included in the Final NOS package. All 
of these blocks are shown on the following leasing maps and Official 
Protraction Diagrams (OPDs):

Outer Continental Shelf Leasing Maps--Texas Map Numbers 1 Through 8 
(These 16 Maps Sell for $2.00 each.)

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

Outer Continental Shelf Leasing Maps--Louisiana Map Numbers 1A, 1B, and 
12 (These 3 Maps Sell for $2.00 Each.)

LA1A West Cameron Area, West Addition (revised February 28, 2007)
LA1B West Cameron Area, South Addition (revised February 28, 2007)
LA12 Sabine Pass Area (revised July 1, 2011)

Outer Continental Shelf Official Protraction Diagrams (These 7 Diagrams 
Sell for $2.00 each.)

NG14-03 Corpus Christi (revised November 1, 2000)
NG14-06 Port Isabel (revised November 1, 2000)
NG15-01 East Breaks (revised November 1, 2000)
NG15-02 Garden Banks (revised February 28, 2007)
NG15-04 Alaminos Canyon (revised November 1, 2000)
NG15-05 Keathley Canyon (revised February 28, 2007)
NG15-08 Sigsbee Escarpment (revised February 28, 2007)

    Please Note: A CD-ROM (in ARC/INFO and Acrobat (.pdf) format) 
containing all of the GOM leasing maps and OPDs, except for those 
not yet converted to digital format, is available from the BOEM Gulf 
of Mexico Region Public Information Office for a price of $15.00. 
These GOM leasing maps and OPDs are also available for free online 
in .pdf and .gra formats at https://www.boem.gov/Oil-and-Gas-Energy-Program/Mapping-and-Data/Official-Protraction-Diagrams.aspx.

    For the current status of all GOM WPA leasing maps and OPDs, please 
refer to 66 FR 28002 (published May 21, 2001), 67 FR 60701 (published 
September 26, 2002), 72 FR 27590 (published May 16, 2007), and 76 FR 
54787 (published September 2, 2011). In addition, Supplemental Official 
OCS Block Diagrams (SOBDs) for blocks containing the U.S. 200 Nautical 
Mile

[[Page 65409]]

Limit line and the U.S.-Mexico Maritime and Continental Shelf Boundary 
line are available. These SOBDs also are available from BOEM Gulf of 
Mexico Region Public Information Office. For additional information, or 
to order the above referenced maps or diagrams, please call the Mapping 
and Automation Section at (504) 736-5768.
    All blocks are shown on these leasing maps and OPDs. The available 
Federal acreage of each whole and partial block in this lease sale is 
shown in the document ``List of Blocks Available for Leasing'' included 
in the Final NOS Package. Some of these blocks may be partially leased 
or deferred, or transected by administrative lines such as the Federal/
state jurisdictional line. A bid on a block must include all of the 
available Federal acreage of that block. Also, information on the 
unleased portions of such blocks is found in the document ``Western 
Planning Area, Lease Sale 229, November 28, 2012--Unleased Split Blocks 
and Available Unleased Acreage of Blocks with Aliquots and Irregular 
Portions under Lease or Deferred'' included in the Final NOS Package.
    Areas Not Available For Leasing: The following whole and partial 
blocks are not offered for lease in this sale:
    Whole blocks and portions of blocks that lie within the boundaries 
of the Flower Garden Banks National Marine Sanctuary in the East and 
West Flower Garden Banks and Stetson Bank (the following list includes 
all blocks affected by the Sanctuary boundaries):

High Island, East Addition, South Extension (Leasing Map TX7C)

    Whole Block: A-398.
    Portions of Blocks: A-366*, A-367*, A-374*, A-375, A-383*, A-384*, 
A-385*, A-388, A-389, A-397*, A-399, A-401.
    *Leased.

High Island, South Addition (Leasing Map TX7B)

    Portions of Blocks: A-502, A-513.

Garden Banks (OPD NG15-02)

    Portions of Blocks: 134, 135.
    Whole blocks and portions of blocks that lie within the former 
Western Gap and that lie within 1.4 nautical miles north of the 
continental shelf boundary between the United States and Mexico:

Keathley Canyon (OPD NG15-05)

    Portions of Blocks: 978 through 980.

Sigsbee Escarpment (OPD NG15-08)

    Whole Blocks: 11, 57, 103, 148, 149, 194.
    Portions of Blocks: 12 through 14, 58 through 60, 104 through 106, 
150.
    Blocks currently subject to bid or termination appeals:

Garden Banks (NG15-02)

    Blocks 623 and 624.

    Please Note:

Bids on Blocks Near the U.S.-Mexico Maritime and Continental Shelf 
Boundary

    The following definitions apply to this section:
    ``Agreement'' refers to an agreement between the United Mexican 
States and the United States of America that addresses identification 
and unitization of transboundary hydrocarbon reservoirs, allocation of 
production, inspections, safety, and environmental protection. A copy 
of the Agreement can be found at https://www.boem.gov/BOEM-Newsroom/Library/Boundaries-Mexico.aspx.
    ``Boundary Area'' means an area comprised of any and all blocks in 
the WPA, that are located or partially located within three statute 
miles of the maritime and continental shelf boundary with Mexico, as 
that maritime boundary is delimited in the November 24, 1970 Treaty to 
Resolve Pending Boundary Differences and Maintain the Rio Grande and 
Colorado River as the International Boundary; the May 4, 1978 Treaty on 
Maritime Boundaries between the United Mexican States and the United 
States of America; and the June 9, 2000 Treaty on the Continental Shelf 
between the Government of the United Mexican States and the Government 
of the United States of America.
    The Agreement was signed on February 20, 2012, but has not yet been 
approved by Congress. Bids submitted on any available block in the 
``Boundary Area'' (as defined above) may be segregated from bids 
submitted on blocks outside the Boundary Area. Bids submitted on 
available blocks outside the Boundary Area will be opened on the date 
scheduled for sale. Bids submitted on blocks in the Boundary Area may 
not be opened on the date scheduled for the sale, but may be opened at 
a later date. Within 30 days after the approval of the Agreement or by 
May 31, 2013, whichever occurs first, the Secretary of the Interior 
will determine whether it is in the best interest of the United States 
either to open bids for Boundary Area blocks or to return the bids 
unopened.
    In the event the Secretary decides to open bids on any available 
blocks in the Boundary Area, BOEM will notify such bidders at least 30 
days prior to opening such bids, and will describe the terms of the 
Agreement under which leases in the Boundary Area will be issued. 
Bidders on these blocks may withdraw their bids at any time after such 
notice up until 10 a.m. of the day before bid opening. If BOEM does not 
give notice within 30 days of the approval of the Agreement, or by May 
31, 2013, whichever comes first, BOEM will return the bids unopened. 
This timing will allow companies to make decisions regarding the next 
annual WPA lease sale (anticipated in 2013), which also may offer 
blocks in this area. BOEM reserves the right to return these bids at 
any time. BOEM will not disclose which blocks received bids or the 
names of bidders in this area unless and until the bids are opened.
    BOEM currently anticipates that blocks in the Boundary Area that 
are not awarded as a result of WPA Sale 229 would be reoffered in the 
next lease sale for the WPA in 2013.
    The following blocks comprise the Boundary Area:
    Port Isabel Blocks--914, 915, 916, 917, 918, 919, 920, 921, 922, 
923, 924, 945, 946, 947, 948, 958, 959, 960, 961, 962, 963, 964, 965, 
966, 967, 968, 989, 990, 991, and 992.
    Alaminos Canyon Blocks--881, 882, 883*, 884*, 885, 886, 887, 888, 
889, 890, 891, 892, 893*, 894*, 895, 896, 897, 898, 899*, 900*, 901*, 
902*, 903*, 904*, 905, 906, 907, 908, 909, 910, 911, 912, 925, 926, 
927*, 928*, 929, 930, 931, 932, 933, 934, 935, 936, 937, 938, 939*, 
940, 941, 942*, 943*, 944*, 945*, 946, 947*, 948, 949, 950, 951, 952, 
953, 954, 955, 956, 957, 958, 959, 960, 961, 962, 963, 964, 965, 992, 
993, 994, 995, 996, 997, 998, 999, 1000, 1001, 1002, 1003, 1004, 1005, 
1006, 1007, 1008, and 1009.
    Keathley Canyon Blocks--925, 926, 927, 928, 929, 930, 931, 932, 
933, 934, 935, 969, 970, 971, 972, 973, 974, 975, 976, 977, 978, 979, 
980, and 981.
    Sigsbee Escarpment Blocks--11, 12, 13, 14, 15, 57, 58, 59, 60, 61, 
103, 104, 105, 106, 148, 149, 150, and 194.
    South Padre Island Blocks--1154, 1163, 1164, 1165, and 1166.
    South Padre Island, East Addition Blocks--1155, 1156, 1157, 1158, 
1159, 1160, 1161, 1162, A 78, A 79, A 80, A 81, A 82, A 83, A 84, A 85, 
A 86, A 87, A 89, and A 90.
    *Leased.
    Statutes and Regulations: Each lease is issued pursuant to OCSLA, 
regulations promulgated pursuant thereto, other applicable statutes and 
regulations in existence upon the Effective Date of the lease, and 
those applicable statutes enacted (including amendments to OCSLA or 
other statutes) and regulations promulgated thereafter, except to the 
extent they

[[Page 65410]]

explicitly conflict with an express provision of the lease. Amendments 
to existing statutes and regulations, including but not limited to 
OCSLA, as well as the enactment of new statutes and promulgation of new 
regulations, which do not explicitly conflict with an express provision 
of the lease, will apply to the leases issued as a result of this sale. 
Moreover, the lessee expressly bears the risk that such new statutes 
and regulations (i.e., those that do not explicitly conflict with an 
express provision of the lease) may increase or decrease the lessee's 
obligation under the lease.
    BOEM will use Form BOEM-2005 (October 2011) to convey leases 
resulting from this sale. This lease form may be viewed on the BOEM Web 
site at https://www.boem.gov/About-BOEM/Procurement-Business-Opportunities/BOEM-OCS-Operation-Forms/BOEM-OCS-Operation-Forms.aspx. 
The lease form will be amended to conform with the specific terms, 
conditions, and stipulations applicable to the individual lease.
    Lease Terms and Conditions: Initial periods, minimum bonus bid 
amounts, rental rates, escalating rental rates for leases in depths 
less than 400 meters with an initial period longer than 5 years, 
royalty rates, minimum royalties, and royalty suspension provisions, if 
any, applicable to this sale are noted below. Additionally, these terms 
and conditions for leases resulting from this lease sale are depicted 
on the map ``Final, Western Planning Area, Lease Sale 229, November 28, 
2012, Lease Terms and Economic Conditions.''
    Initial Periods: Initial periods are summarized in the following 
table:

------------------------------------------------------------------------
    Water depth in meters                   Initial periods
------------------------------------------------------------------------
0 to <400...................  Standard initial period is 5 years; the
                               lessee may earn an additional 3 years
                               (i.e., for an 8-year extended initial
                               period), if a well is spudded during the
                               first 5 years of the lease targeting
                               hydrocarbons below 25,000 feet True
                               Vertical Depth Subsea (TVD SS).
400 to <800.................  Standard initial period is 5 years; the
                               lessee will earn an additional 3 years
                               (i.e., for an 8-year extended initial
                               period), if a well is spudded during the
                               first 5 years of the lease.
800 to <1,600...............  Standard initial period is 7 years; the
                               lessee will earn an additional 3 years
                               (i.e., for a 10-year extended initial
                               period), if a well is spudded during the
                               first 7 years of the lease.
1,600+......................  10 years.
------------------------------------------------------------------------

    A. The standard initial period for a lease in water depths of less 
than 400 meters issued from this sale is 5 years. If the lessee spuds a 
well within the first 5 years of the lease targeting hydrocarbons below 
25,000 feet TVD SS, then the lessee may earn an additional 3 years, for 
an 8-year extended initial period. The lessee will earn the 8-year 
extended initial period in cases where the well is drilled to a target 
below 25,000 feet TVD SS, or the lessee may earn the 8-year extended 
initial period in cases where the well targets, but does not reach, a 
depth below 25,000 feet TVD SS due to mechanical or safety reasons, 
where sufficient evidence is provided.
    In order to earn the 8-year extended initial period, the lessee is 
required to submit to the Bureau of Safety and Environmental 
Enforcement (BSEE) GOM Regional Supervisor for Production and 
Development (RSPD), 1201 Elmwood Park Boulevard, Mail Stop GE 933C, New 
Orleans, Louisiana, 70123-2394, within 30 days after completion of the 
drilling operation, a letter providing the well number, spud date, 
information demonstrating a target below 25,000 feet TVD SS and whether 
that target was reached, and if applicable, any safety, mechanical or 
other problems encountered that prevented the well from reaching a 
depth below 25,000 feet TVD SS. The RSPD must concur in writing that 
the conditions have been met in order for the lessee to earn the 8-year 
extended initial period. The RSPD will provide a written response 
within 30 days of receipt of the letter provided.
    A lease that has earned the 8-year extended initial period by 
spudding a well during the first 5 years of the lease with a 
hydrocarbon target below 25,000 feet TVD SS, confirmed by the RSPD, 
will not be eligible for a suspension for that same period under the 
regulations at 30 CFR 250.175 because the lease is not at risk of 
expiring.
    B. The standard initial period for a lease in water depths of 400 
meters to less than 800 meters issued from this sale is 5 years. The 
lessee will earn an additional 3 years, for an 8-year extended initial 
period, if the lessee spuds a well within the first 5 years of the 
lease.
    In order to earn the 8-year extended initial period, the lessee is 
required to submit to the appropriate BSEE District Manager, within 30 
days after spudding a well, a letter providing the well number and spud 
date, and requesting concurrence that the lessee earned the 8-year 
extended initial period. The BSEE District Manager will review the 
request and make a written determination within 30 days of receipt of 
the request. The BSEE District Manager must concur in writing that the 
conditions have been met by the lessee to earn the 8-year extended 
initial period.
    C. The standard initial period for a lease in water depths of 800 
meters to less than 1,600 meters issued from this sale will be 7 years. 
The lessee will earn an additional 3 years, for a 10-year extended 
initial period, if the lessee spuds a well within the first 7 years of 
the lease. In order to earn the 10-year extended initial period, the 
lessee is required to submit to the appropriate BSEE District Manager, 
within 30 days after spudding a well, a letter providing the well 
number and spud date, and requesting concurrence that the lessee earned 
the 10-year extended initial period. The BSEE District Manager will 
review the request and make a determination. A written response will be 
sent to the lessee documenting the BSEE District Manager's decision 
within 30 days of receipt of the request. The BSEE District Manager 
must concur in writing that the conditions have been met by the lessee 
to earn the 10-year extended initial period.
    D. The standard initial period for a lease in water depths of 1,600 
meters or greater issued from this sale will be 10 years.

Minimum Bonus Bid Amounts

     $25.00 per acre or fraction thereof for blocks in water 
depths of less than 400 meters.
     $100.00 per acre or fraction thereof for blocks in water 
depths of 400 meters or deeper.

Rental Rates

    Annual rental rates are summarized in the following table:

[[Page 65411]]



                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
200 to <400........................        11.00  $22.00, $33.00, &
                                                   $44.00
400+...............................        11.00  $16.00
------------------------------------------------------------------------

Escalating Rental Rates for Leases With an 8-Year Extended Initial 
Period in Depths of Less Than 400 Meters

    Any lease in water depths less than 400 meters that earns an 8-year 
extended initial period will pay an escalating rental rate as shown 
above. The rental rates after the fifth year for blocks in less than 
400 meters will become fixed and no longer escalate if another well is 
spudded after the fifth year of the lease that targets hydrocarbons 
below 25,000 feet TVD SS, and BSEE concurs that such a well has been 
spudded. 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

     18.75 percent.

Minimum Royalty

     $7.00 per acre or fraction thereof per year for blocks in 
water depths of less than 200 meters.
     $11.00 per acre or fraction thereof per year for blocks in 
water depths of 200 meters or deeper.

Royalty Suspension Provisions

    Leases with royalty suspension volumes (RSVs) are authorized under 
existing BSEE regulations at 30 CFR part 203 and BOEM regulations at 30 
CFR part 560.

Deep and Ultra-Deep Gas Royalty Suspensions

    A lease issued as a result of this sale may be eligible for RSV 
incentives for deep and ultra-deep wells pursuant to 30 CFR part 203, 
implementing requirements of the Energy Policy Act of 2005. These RSV 
incentives are conditioned upon applicable price thresholds:
     Certain wells on leases in 0 to less than 400 meters of 
water depth completed to a drilling depth of 20,000 feet TVD SS or 
deeper may receive an RSV of 35 billion cubic feet of natural gas.
     Certain wells on leases in 200 to less than 400 meters of 
water depth completed from 15,000 to 20,000 feet TVD SS that begin 
production before May 3, 2013, may receive smaller RSV incentives.
    Lease Stipulations: The map ``Final, Western Planning Area, Lease 
Sale 229, November 28, 2012, Stipulations and Deferred Blocks'' depicts 
those blocks on which one or more of five lease stipulations apply: (1) 
Topographic Features; (2) Military Areas; (3) Law of the Sea Convention 
Royalty Payment; (4) Protected Species; and (5) Agreement between the 
United States of America and the United Mexican States Concerning 
Transboundary Hydrocarbon Reservoirs in the Gulf of Mexico.
    The texts of the stipulations are contained in the document ``Lease 
Stipulations, Western Planning Area, Oil and Gas Lease Sale 229, Final 
Notice of Sale'' included in the Final NOS Package. In addition, the 
``List of Blocks Available for Leasing,'' contained in the Final NOS 
Package, identifies the lease stipulations applicable to each block.
    Information to Lessees: The Final NOS Package contains an 
``Information to Lessees'' document that provides information on 
certain issues pertaining to this oil and gas lease sale.
    Method of Bidding: For each block bid upon, a bidder must submit a 
separate signed bid in a sealed envelope. The outside of the envelope 
should be labeled ``Sealed Bid for Oil and Gas Lease Sale 229, not to 
be opened until 9 a.m., Wednesday, November 28, 2012.'' The submitting 
company's name, its GOM company number, the map name, map number, and 
block number should be clearly identified on the outside of the 
envelope.
    The sealed bid should list the total amount of the bid in a whole 
dollar amount, 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 Package. 
A blank bid form has been provided therein for convenience and may be 
copied and filled. The Final NOS Package includes a sample bid envelope 
for reference.
    The Final NOS Package also includes a form for the telephone 
numbers and addresses of bidders. BOEM requests that bidders provide 
this information in the suggested format prior to or at the time of bid 
submission. The Telephone Numbers/Addresses of Bidders Form should not 
be enclosed within the sealed bid envelope.
    BOEM published a list of restricted joint bidders for this lease 
sale in the Federal Register on October 23, 2012. Please also refer to 
joint bidding provisions at 30 CFR 556.41 for additional information. 
All bidders must execute all documents in conformance with signatory 
authorizations on file in BOEM's GOM Region Adjudication Section. 
Designated signatories must be authorized to bind their respective 
legal business entities (e.g., a corporation, partnership, or LLC) and 
must have an incumbency certificate setting forth the authorized 
signatories on file with the GOM Region Adjudication Section. Bidders 
submitting joint bids must include on the bid form the proportionate 
interest of each participating bidder, stated as a percentage, using a 
maximum of five decimal places (e.g., 33.33333 percent) with total 
interest equaling 100 percent. BOEM may require bidders to submit other 
documents in accordance with 30 CFR 556.46. BOEM warns bidders against 
violation of 18 U.S.C. 1860 prohibiting unlawful combination or 
intimidation of bidders. Bidders are advised that BOEM 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 one-fifth of the bonus bid on all high bids. A statement to this 
effect must be included on each bid form (see the document ``Bid Form 
and Envelope'' contained in the Final NOS Package).
    Withdrawal of Bids: Once submitted, bids may not be withdrawn 
unless the BOEM RD receives a written request for withdrawal from the 
company who submitted the bid(s), prior to 10 a.m. on Tuesday, November 
27, 2012. 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(s) of the bid(s) to be withdrawn. The 
request must be in conformance with signatory authorizations on file in 
BOEM's GOM Region Adjudication Section. Signatories must be authorized 
to bind

[[Page 65412]]

their respective legal business entities (e.g., a corporation, 
partnership, or LLC) and must have: (1) An incumbency certificate and/
or specific power of attorney setting forth express authority to act on 
the business entity's behalf for purposes of bidding and lease 
execution under OCSLA, and (2) the authorized signatories on file with 
BOEM's GOM Region Adjudication Section. The name and title of said 
signatory must be typed under the signature block on the withdrawal 
letter. Should the BOEM RD or the BOEM RD's designee approve such a 
request, he or she will indicate approval by affixing his or her 
signature and the date to the submitting company's request for 
withdrawal.
    Rounding: The bonus bid amount must be stated in whole dollars. If 
the block acreage contains a decimal figure, then prior to calculating 
the minimum bonus bid, round up to the next whole acre. The appropriate 
minimum rate per acre is then applied to the whole (rounded up) 
acreage. If the resulting calculation results in any cents, round up to 
the next whole dollar amount. The bonus bid amount must be greater than 
or equal to the minimum bonus bid. Minimum bonus bid calculations, 
including all rounding, for all blocks are shown in the document ``List 
of Blocks Available for Leasing'' included in the Final NOS Package.
    Bonus Bid Deposit: Each bidder submitting an apparent high bid must 
submit a bonus bid deposit to the U.S. Department of the Interior's 
Office of Natural Resources Revenue (ONRR) 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 by 11 
a.m. Eastern Time the day following bid reading (no exceptions). 
Account information is provided in the Electronic Funds Transfer (EFT) 
instructions found on the BOEM Web site at https://www.boem.gov/Oil-and-Gas-Energy-Program/Leasing/Regional-Leasing/Gulf-of-Mexico-Region/Lease-Sales/229/index.aspx. Under the authority granted by 30 CFR 
556.46(b), BOEM requires bidders to use EFT procedures for payment of 
one-fifth bonus bid deposits for WPA Sale 229, following the detailed 
instructions contained on the Payment Information Web page that may be 
found on the ONRR Web site at https://www.onrr.gov/FM/PayInfo.htm. 
Acceptance of a deposit does not constitute and will not be construed 
as acceptance of any bid on behalf of the United States. If a lease is 
awarded, ONRR requests that only one transaction be used for payment of 
the four-fifths bonus bid amount and the first year's rental.

    Please Note: Certain bid submitters (i.e., those that are not 
currently an OCS mineral lease record title holder or designated 
operator or those that have ever defaulted on a one-fifth bonus bid 
payment (EFT or otherwise)) are required to guarantee (secure) their 
one-fifth bonus bid payment prior to the submission of bids. For 
those who must secure the EFT one-fifth bonus bid payment, the EFT 
instructions specify the requirements for each of the following four 
options: (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.

    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: (1) The bidder has complied with all requirements of this Final 
NOS, including those set forth in the documents contained in the 
associated Final NOS Package and applicable regulations; (2) the bid is 
the highest valid bid; and (3) 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 Final Notice of Sale, 
OCSLA, and other applicable regulations may be returned to the bidder 
submitting that bid by the BOEM RD and not be considered for 
acceptance. The U.S. Department of Justice and the Federal Trade 
Commission will review the results of the lease sale for antitrust 
issues prior to the issuance of leases.
    To ensure that the Federal Government receives a fair return for 
the conveyance of lease rights for this lease sale, BOEM will evaluate 
high bids in accordance with its bid adequacy procedures. A copy of 
current procedures, ``Modifications to the Bid Adequacy Procedures'' at 
64 FR 37560 (July 12, 1999), can be obtained from the BOEM Gulf of 
Mexico Region Public Information Office or via the BOEM Gulf of Mexico 
Region Internet Web site at https://www.boem.gov/Oil-and-Gas-Energy-Program/Leasing/Regional-Leasing/Gulf-of-Mexico-Region/Bid-Adequacy-Procedures.aspx. In the existing bid adequacy procedures, water depth 
categories in the GOM are specified as: (1) less than 800 meters, and 
(2) 800 meters or more. Per 64 FR 37560, if different water depth 
categories are used for a GOM sale, they are specified in the Final 
Notice of Sale. For WPA Sale 229, the water depth categories are 
specified as: (1) Less than 400 meters, and (2) 400 meters or more.
    Successful Bidders: BOEM requires each company awarded a lease to: 
(1) Execute all copies of the lease (Form BOEM-2005 (October 2011), as 
amended), (2) 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 556.47(f); and (3) satisfy the 
bonding requirements of 30 CFR part 556, subpart I, as amended.
    Affirmative Action: BOEM requires that, prior to bidding, the 
bidder file Equal Opportunity Affirmative Action Representation Form 
BOEM-2032 (October 2011) and Equal Opportunity Compliance Report 
Certification Form BOEM-2033 (October 2011) in the BOEM GOM Region 
Adjudication Section. 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 for the bidder in the GOM Region Adjudication Section.
    Geophysical Data and Information Statement: Pursuant to 30 CFR 
551.12, BOEM 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 WPA Sale 229, or 
participating as a joint bidder in such a bid, must submit at the time 
of bid submission a Geophysical Data and Information Statement (GDIS) 
in a separate and sealed envelope, identifying all proprietary data, 
reprocessed speculative data and/or any Amplitude Versus Offset, 
Controlled Source Electromagnetic Surveys, Gravity or Magnetic data, or 
other information used as part of the decision to bid or participate in 
a bid on the block.

    Please Note: A bidder must submit the GDIS even if its joint 
bidder or bidders on a specific block also have submitted a GDIS. 
Any speculative data that has been reprocessed externally or in-
house is considered proprietary due to the proprietary processing 
and is no longer considered to be speculative. The GDIS should 
clearly state who did the reprocessing (e.g., an external company 
name or ``in-house''). In addition, the GDIS should clearly identify 
the data type (e.g., 2-D, 3-D, or 4-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 (e.g., Kirchhoff 
Migration, Wave Equation Migration, Reverse Migration, Reverse Time 
Migration) of the data, velocity models used, and other requested 
metadata. The statement

[[Page 65413]]

must also include the name, the 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; the date processing was completed; owner of 
the original data set (who initially acquired the data); original 
data survey name; and permit number. Seismic survey information also 
should include the computer storage size to the nearest megabyte of 
each seismic data and velocity volumes used to evaluate the lease 
block in question. This will be used in estimating the reproduction 
costs for each data set during the requisition process prior to 
requesting data. BOEM 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.

    A. The statement also must 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 proprietary 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 
proprietary geophysical data and information were used in bid 
preparation for the block.
    B. In the event a company supplies any type of data to BOEM, that 
company must meet the following requirements to qualify for 
reimbursement:
    1. Companies must be registered with the System for Award 
Management (SAM), formerly known as the Central Contractor Registration 
(CCR). Your CCR username will not work in SAM. A new SAM User Account 
to register or update your entity's records is needed. The Web site for 
registering is: https://www.sam.gov.
    2. Companies must be enrolled in the Department of Treasury's 
Internet Payment Platform (IPP) for electronic invoicing. The company 
must enroll at the IPP (https://www.ipp.gov/) if it has not already 
done so. Access will then be granted to use IPP for submitting requests 
for payment. When a request for payment is submitted, it must include 
the assigned Purchase Order Number on the request.
    3. Companies must have a current On-line Representations and 
Certifications Application at: https://www.sam.gov.

    Please Note: The GDIS Information Table can be submitted 
digitally on a CD or DVD as an Excel Spreadsheet. If you have any 
questions, please contact Dee Smith at (504) 736-2706 or John 
Johnson at (504) 736-2455.

    Force Majeure: The BOEM RD has the discretion to change any date, 
time, and/or location specified in the Final NOS Package in case of a 
force majeure event that the BOEM 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, acts of terrorism, fire, strikes, 
civil disorder, or other events of a similar nature. In case of such 
events, bidders should call (504) 736-0557 or access BOEM's Web site at 
https://www.boem.gov for information about any changes.

    Dated: October 22, 2012.
Tommy P. Beaudreau,
Director, Bureau of Ocean Energy Management.
[FR Doc. 2012-26396 Filed 10-25-12; 8:45 am]
BILLING CODE 4310-MR-P