Atlantic Wind One (ATLW1) Commercial Leasing for Wind Power on the Outer Continental Shelf Offshore Virginia-Proposed Sale Notice, 71621-71626 [2012-29097]

Agencies

• DEPARTMENT OF THE INTERIOR
• Bureau of Ocean Energy Management

[Federal Register Volume 77, Number 232 (Monday, December 3, 2012)]
[Notices]
[Pages 71621-71626]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-29097]


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DEPARTMENT OF THE INTERIOR

Bureau of Ocean Energy Management

[Docket No. BOEM-2012-0033]


Atlantic Wind One (ATLW1) Commercial Leasing for Wind Power on 
the Outer Continental Shelf Offshore Virginia--Proposed Sale Notice

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

ACTION: Proposed Sale Notice for Commercial Leasing for Wind Power on 
the Outer Continental Shelf Offshore Virginia.

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SUMMARY: This document is the Proposed Sale Notice (PSN) for the sale 
of a commercial renewable energy lease on the Outer Continental Shelf 
(OCS) offshore Virginia, pursuant to BOEM's regulations at 30 CFR 
585.216. BOEM will auction the area described in the

[[Page 71622]]

Call for Information and Nominations (77 FR 5545) as a single lease 
using an ascending clock auction. In this PSN, you will find 
information pertaining to the area available for leasing, proposed 
lease provisions and conditions, auction details, the lease form, 
criteria for evaluating competing bids, award procedures, appeal 
procedures, and lease execution. BOEM invites comments during a 60-day 
comment period following this notice.

DATES: Comments should be submitted electronically or postmarked no 
later than February 1, 2013. All comments received or postmarked during 
the comment period will be made available to the public and considered 
prior to publication of the Final Sale Notice (FSN).
    The end of the comment period is also the deadline for the 
submission of qualification materials. All bidders interested in 
participating in the lease sale must have submitted all such 
qualification materials by the end of the 60-day comment period for 
this notice. All qualification materials must be postmarked no later 
than February 1, 2013.

ADDRESSES: Potential auction participants, Federal, state, and local 
government agencies, tribal governments, and other interested parties 
are requested to submit their written comments on the PSN in one of the 
following ways:
    1. Electronically: https://www.regulations.gov. In the entry titled 
``Enter Keyword or ID,'' enter BOEM-2012-0033 then click ``search.'' 
Follow the instructions to submit public comments.
    2. Written Comments: In written form, delivered by hand or by mail, 
enclosed in an envelope labeled ``Comments on Virginia PSN'' to: Office 
of Renewable Energy Programs, Bureau of Ocean Energy Management, 381 
Elden Street, HM 1328, Herndon, Virginia 20170.
    3. Qualifications Materials: Those submitting qualifications 
packages should contact Erin Trager, BOEM Office of Renewable Energy 
Programs, 381 Elden Street, HM 1328, Herndon, Virginia 20170, (703) 
787-1320, or erin.trager@boem.gov.
    If you wish to protect the confidentiality of your nominations or 
comments, clearly mark the relevant sections and request that BOEM 
treat them as confidential. Please label privileged or confidential 
information with the caption, ``Contains Confidential Information'' and 
consider submitting such information as a separate attachment. 
Treatment of confidential information is addressed in the section of 
this PSN entitled ``Protection of Privileged or Confidential 
Information.'' Information that is not labeled as privileged or 
confidential will be regarded by BOEM as suitable for public release.

FOR FURTHER INFORMATION CONTACT: Erin Trager, BOEM Office of Renewable 
Energy Programs, 381 Elden Street, HM 1328, Herndon, Virginia 20170, 
(703) 787-1320 or erin.trager@boem.gov.

    Authority:  This PSN is published pursuant to subsection 8(p) of 
the OCS Lands Act (43 U.S.C. 1337(p)) (``the Act''), as amended by 
section 388 of the Energy Policy Act of 2005 (EPAct), and the 
implementing regulations at 30 CFR Part 585, including 30 CFR 
585.211 & 585.216.

    Background: The proposed lease area is the same as the area 
described in the Virginia Call for Information and Nominations (Call), 
which was published in the Federal Register on February 3, 2012. 
Additional information about the proposed lease area is provided in the 
Call (77 FR 5545).
    On February 3, 2012, BOEM published the Notice of Availability 
(NOA) (77 FR 5560) for the final Environmental Assessment (EA) and 
Finding of No Significant Impact (FONSI) for commercial wind lease 
issuance and site assessment activities on the Atlantic OCS offshore 
New Jersey, Delaware, Maryland, and Virginia. Consultations ran 
concurrently with the preparation of the EA and included consultation 
under the Endangered Species Act (ESA), Magnuson-Stevens Fishery 
Conservation and Management Act (MSFCMA), section 106 of the National 
Historic Preservation Act (NHPA), and the Coastal Zone Management Act 
(CZMA). The Commercial Wind Lease Issuance and Site Characterization 
Activities on the Atlantic Outer Continental Shelf Offshore New Jersey, 
Delaware, Maryland, and Virginia Environmental Assessment (Regional EA) 
can be found at: https://www.boem.gov/Renewable-Energy-Program/Smart-from-the-Start/Index.aspx.
    The proposed lease area identified in this PSN matches the Virginia 
Wind Energy Area (WEA) described in the preferred alternative in the 
Regional EA. Additional environmental documentation will be prepared 
upon receipt of plans, such as a Site Assessment Plan (SAP) or 
Construction and Operations Plan (COP).
    Potential bidders should be aware of two unsolicited nominations 
under consideration by BOEM, situated within or near the Virginia WEA. 
Additional information is provided below.
    Atlantic Grid Holdings LLC (ROW) Grant Request: On March 31, 2011, 
Atlantic Grid Holdings LLC submitted an unsolicited application for a 
ROW grant. Following publication of a notice to determine competitive 
interest in the grant area and a 60-day public comment period, BOEM 
published its determination of no competitive interest on May 15, 2012 
(77 FR 28620). The nomination and associated notices can be found at: 
https://www.boem.gov/Renewable-Energy-Program/State-Activities/Regional-Proposals.aspx.
    Virginia Department of Mines, Minerals, and Energy (DMME) Research 
Lease Request: On June 1, 2012, the Commonwealth of Virginia (DMME) 
submitted an unsolicited nomination for a research lease under 30 CFR 
585.238 for the siting of two meteorological ocean and environmental 
monitoring platforms. The nomination can be found at: https://www.boem.gov/Renewable-Energy-Program/State-Activities/Virginia.aspx.
    Financial Terms and Conditions: This section provides an overview 
of the basic annual payments required of the Lessee that will be fully 
described in the lease.
    Rent: The first year's rent payment for the entire leased area is 
due within 45 calendar days of the date the winning bidder receives the 
lease for execution. Thereafter, annual rent payments are due on the 
anniversary of the lease Effective Date until commercial operations on 
the lease commence, i.e., when the generation of electricity begins. 
The annual rental rate will be $3.00 per acre applicable to the entire 
leased area. For example, for a lease the size of 112,799 acres, the 
amount of rent payment will be $338,397 per year. The Lessee also must 
pay rent for any project easement associated with the lease commencing 
on the date that BOEM approves the COP (or modification) describing the 
project easement. Annual rent for a project easement, 200-feet wide and 
centered on the transmission cable, is $70.00 per statute mile. For any 
additional acreage required, the Lessee must also pay the greater of 
$5.00 per acre per year or $450.00 per year.
    Operating Fee: The initial annual operating fee is prorated and due 
within 45 calendar days after the commencement of commercial operations 
on the lease, and subsequent payments are due on or before each Lease 
Anniversary annually thereafter. The annual operating fee payment is 
calculated by multiplying an operating fee rate by the imputed 
wholesale market value of the projected electric power production. For 
the purposes of this calculation, the imputed market

[[Page 71623]]

value is the product of the project's annual nameplate capacity, the 
total number of hours in the year (8,760), an annual capacity factor, 
and an historical, annual average regional wholesale power price index.
    Operating Fee Rate: The operating fee rate is 0.02 through the 8th 
year of commercial operations on the lease. Starting in the 9th year of 
commercial operations, the operating fee rate is 0.04 through the 
remaining term of the lease.
    Nameplate Capacity: The nameplate capacity at the start of each 
year of commercial operations on the lease as specified in the COP will 
be used to accommodate installation schedules or repowering.
    Capacity Factor: The capacity factor for the first eight full years 
of commercial operations on the lease is set to 0.4 to allow for three 
years of installation and testing followed by five years at full 
availability. At the end of the 8th full year, the capacity factor will 
be adjusted to reflect the performance over the previous five years 
based upon the actual metered electricity generation at the delivery 
point to the electrical grid. Similar adjustments to the capacity 
factor will be made once every five years thereafter. The maximum 
change in the capacity factor from one period to the next will be 
limited to plus or minus 10 percent of the previous period's value.
    Wholesale Power Price Index: The price is determined at the time 
each annual operating fee payment is due, based on the weighted average 
of the inflation-adjusted peak and off-peak spot price indices for the 
Northeast--PJM West power market for the most recent year of data 
available as reported by the Federal Energy Regulatory Commission 
(FERC) as part of its annual State of the Markets Report with specific 
reference to the summary entitled ``Electric Market Overview: Regional 
Spot Prices.''
    Financial Assurance: BOEM will base the amounts of all SAP, COP, 
and decommissioning financial assurance requirements on estimates of 
the cost to meet all accrued lease obligations. The amount of 
supplemental and decommissioning financial assurance requirements is 
determined on a case-by-case basis. The amount of financial assurance 
required to meet all lease obligations includes:
     The projected amount of rent and other payments due to the 
Government over the next 12 months;
     Any past due rent and other payments;
     Other monetary obligations (e.g., fines, liens); and
     The estimated cost of facility decommissioning.
    Prior to lease issuance the Lessee must provide: (1) An initial 
lease-specific bond or other approved means of meeting the Lessor's 
initial financial assurance requirements in the amount of $100,000; and 
(2) a supplemental bond or other approved means of meeting the Lessor's 
supplemental financial assurance requirements in the amount of $338,397 
to guarantee lease obligations from rental payments due to the 
Government over the first 12 months of the lease. Additional financial 
assurances will be required to address decommissioning, operating fee, 
and other obligations as the lease progresses.
    The financial terms can be found in Addendum ``B'' of the proposed 
lease, which BOEM has made available with this notice on its Web site 
at: https://boem.gov/Renewable-Energy-Program/State-Activities/Virginia.aspx.
    Place and Time: The auction will be held online. The time that the 
auction will be held will be published in the FSN. The date has not 
been finalized at this time, but will be no earlier than 30 days after 
publication of the FSN in the Federal Register.
    Public Seminar: BOEM will host a public seminar to introduce 
potential bidders and other stakeholders to the auction format provided 
in the PSN, explain the auction rules, and demonstrate the auction 
process through meaningful examples. The time and place of the seminar 
will be announced by BOEM and published on the BOEM Web site. No 
registration or RSVP is required to attend.
    Mock Auction: BOEM will host a mock auction to educate bidders 
about the procedures to be employed, and answer questions. The mock 
auction will take place between the publication of the FSN in the 
Federal Register and the date of the auction. Following publication of 
the FSN in the Federal Register, details of the mock auction will be 
distributed to those eligible to participate in the auction. All 
bidders that intend to participate in the auction are strongly 
encouraged to participate in the mock auction.
    Bid Deposit and Minimum Bid: A bid deposit is an advance cash 
deposit submitted to BOEM. No later than 14 calendar days following 
publication of the FSN, each bidder must have submitted a bid deposit 
(i.e., minimum bid) of at least $5.00 per acre, or fraction thereof, 
offered for sale. Approximately 112,799 acres will be offered for sale 
in this auction. Therefore, the minimum bid deposit for any participant 
in this auction is $563,995. Any bidder that fails to submit the bid 
deposit by the deadline described herein may be prevented by BOEM from 
participating in the auction. Bid deposits will be accepted online via 
pay.gov.
    Following publication of the FSN, each bidder must fill out the 
Bidder's Financial Form included in the FSN. BOEM has made a copy of 
the proposed form available with this notice on its Web site at: https://boem.gov/Renewable-Energy-Program/State-Activities/Virginia. This form 
requests that bidders designate an email address, which bidders should 
use to create an account in pay.gov. After establishing the pay.gov 
account, bidders may use the Bid Deposit Form on the pay.gov Web site 
to leave a deposit.
    Following the auction, bid deposits will be applied against any 
bonus bids or other obligations owed to BOEM. If the bid deposit 
exceeds the bidder's total financial obligation, the balance of the bid 
deposit will be refunded to the bidder.
    Area Offered for Leasing: The proposed lease area offshore Virginia 
contains 19 whole OCS blocks and 13 sub-blocks. The western edge of the 
proposed lease area is approximately 23.5 nautical miles (nmi) from the 
Virginia Beach coastline, and extends to an eastern edge that is 
approximately 36.5 nmi from the same location. The longest north/south 
portion is approximately 10.5 nmi in length and the longest east/west 
portion is approximately 13 nmi in length. The entire area is 
approximately 112,799 acres, or 45,648 hectares. A description of the 
lease area and lease activities can be found in Addendum ``A'' of the 
proposed lease, which BOEM has made available with this notice on its 
Web site at: https://boem.gov/Renewable-Energy-Program/State-Activities/Virginia.aspx.
    Map of the Area Offered for Leasing: A map of the area and a table 
of the boundary coordinates in X, Y (eastings, northings) UTM Zone 18, 
NAD83 Datum and geographic X, Y (longitude, latitude), NAD83 Datum can 
be found at the following URL: https://boem.gov/Renewable-Energy-Program/State-Activities/Virginia.aspx.
    A large scale map of this area showing boundaries of the area with 
numbered blocks is available from BOEM at the following address: Bureau 
of Ocean Energy Management, Office of Renewable Energy Programs, 381 
Elden Street, HM 1328, Herndon, Virginia 20170, Phone: (703) 787-1300, 
Fax: (703) 787-1708.
    Area Offered as a Single Lease: The area available for sale will be 
auctioned as a single lease. One lease will be issued pursuant to this 
lease sale.

[[Page 71624]]

    BOEM has decided to auction the area as a single zone resulting in 
a single lease in order to take advantage of the simplicity of this 
type of sale, the importance of which was highlighted by comments 
received in response to the Auction Format Information Request (76 FR 
76174). Feedback from a member of the BOEM Virginia Renewable Energy 
Task Force suggested that offering the area in two zones could attract 
lower electricity prices for offshore wind generation in the event two 
different developers won different zones. However, splitting the area 
into two zones would not have prevented a single developer from winning 
both zones. Other Task Force members have endorsed the proposed single 
zone approach to facilitate potential phased development. If additional 
relevant comments regarding the auction format are submitted to BOEM in 
response to this PSN, BOEM will consider them.
    Withdrawal of Blocks: BOEM reserves the right to withdraw areas 
from this lease sale prior to the execution of the lease.
    Lease Terms and Conditions: Proposed lease terms and conditions for 
an OCS commercial wind lease in the Virginia WEA have been included in 
Addendum ``C'' of the proposed lease. BOEM reserves the right to apply 
additional terms and conditions that are consistent with the terms of 
the lease to activities conducted on the lease incident to any future 
approval or approval with modifications of a SAP and/or COP. The 
proposed lease, including Addendum ``C'', is available on BOEM's Web 
site at: https://boem.gov/Renewable-Energy-Program/State-Activities/Virginia.aspx. The proposed lease consists of an instrument with 18 
sections and the following five attachments:
    Addendum ``A'' (Description of Leased Area and Lease Activities);
    Addendum ``B'' (Lease Term and Financial Schedule);
    Addendum ``C'' (Lease Specific Terms, Conditions, and 
Stipulations);
    Addendum ``D'' (Project Easement);
    Addendum ``E'' (Rent Schedule); and
    Appendix A (High Resolution Geophysical Surveys and Analysis for 
the Identification or Reporting of Archaeological Resources).
    Addenda ``A'', ``B'', and ``C'' provide detailed descriptions of 
lease terms and conditions. Addenda ``D'' and ``E'' will be completed 
at the time of COP approval.
    After considering comments on the PSN and these proposed 
provisions, BOEM will publish final lease terms and conditions in a 
FSN.
    The lease form included as part of this proposed lease has been 
updated since its publication on February 3, 2012. A discussion of 
specific changes to the lease form is available separately on BOEM's 
Web site at: https://www.boem.gov/Renewable-Energy-Program/Regulatory-Information/Index.aspx#Lease_Forms.
    Plans: Pursuant to 30 CFR 585.601, the leaseholder must submit a 
SAP within six months of lease issuance. If the leaseholder intends to 
continue its commercial lease with an operations term, the leaseholder 
must submit a COP at least six months before the end of the site 
assessment term.
    Pursuant to 30 CFR 585.629, a leaseholder may request in its COP to 
develop its commercial lease in phases. If a leaseholder requests, and 
BOEM approves, phased development, this approval will not affect the 
length of the preliminary, site assessment, or commercial terms offered 
under the lease. The COP must describe in sufficient detail the 
activities proposed for all phases of commercial development, including 
a schedule detailing the proposed timelines for phased development. 
Further, the COP must include the results of all site characterization 
surveys, as described in 30 CFR 585.626(a), necessary to support each 
phase of commercial development. The requirements of the SAP remain the 
same as they would under a non-phased development scenario, and must 
meet the requirements provided in the regulatory provisions in 30 CFR 
585.605-613 for the full commercial lease area.
    Qualifications--Who May Bid: Entities wishing to participate in the 
lease sale must be legally, technically, and financially qualified 
under BOEM's regulations at 30 CFR 585.106-107. Any potential bidder 
that has not already submitted a complete qualification package must do 
so by the end of the comment period of this PSN. To be eligible to 
participate in the auction, each potential bidder must be legally, 
technically and financially qualified by the time the FSN for this sale 
is published. Please note that technical and financial qualifications 
are project specific; it is not sufficient to have been technically and 
financially qualified to pursue a project offshore another state.
    Guidance and examples of the appropriate documentation 
demonstrating your legal qualifications can be found in Chapter 2 and 
Appendix B of Guidelines for the Minerals Management Service Renewable 
Energy Framework, available on BOEM's Web site at https://www.boem.gov/Renewable-Energy-Program/Regulatory-Information/Index.aspx. Guidance 
regarding how you may demonstrate your technical and financial 
qualifications is provided in a document entitled, Qualification 
Guidelines to Acquire and Hold Renewable Energy Leases and Grants and 
Alternate Use Grants on the U.S. Outer Continental Shelf. (https://boem.gov/Renewable-Energy-Program/Regulatory-Information/QualificationGuidelines-pdf.aspx). It is strongly recommended that you 
refer to this guidance before submitting your materials as the guidance 
has been updated recently. Documentation you submit to demonstrate your 
legal, technical, and financial qualifications must be provided to BOEM 
in both paper and electronic formats. BOEM considers an Adobe PDF file 
stored on a compact disc (CD) to be an acceptable format for submitting 
an electronic copy. In your qualification materials, provide a general 
description of the project you would like to construct on the lease 
area sought in this sale, including estimates of the project area and 
total nameplate capacity of the proposed facilities.
    Please note that it may take a number of weeks for you to establish 
your legal, technical, and financial qualifications. We advise 
potential bidders planning to participate in a sale to establish their 
qualifications promptly. It is not uncommon for BOEM to request 
additional materials establishing qualifications following an initial 
review of the qualifications package. Any potential bidder whose 
qualification package is incomplete at the time the FSN for this sale 
is published in the Federal Register, will be found to have failed to 
establish its qualifications to participate in the sale, and, 
therefore, will be unable to participate in the sale.
    Auction Procedures: The sale is being conducted using an online 
bidding system and follows an ``ascending clock'' auction format. In 
this format, BOEM sets an initial asking or ``clock'' price for the 
single lease being offered, and increases that price incrementally in 
subsequent rounds until no more than a single active bidder remains in 
the auction. During each round, active bidders may either (1) submit an 
active bid indicating that they are interested in acquiring the lease 
at the stated auction price or (2) exit the auction.
    A bidder remains active as long as it continues to meet BOEM's 
asking price associated with ensuing rounds. If more than one active 
bid is received in a round, BOEM increases the asking price 
incrementally and conducts another auction round. Between rounds, 
active

[[Page 71625]]

bidders are informed about the number of bids submitted in the previous 
round. Additional auction rounds occur as long as two or more bidders 
continue to submit active bids for the lease in each round. The auction 
concludes at the end of the round in which the number of active bids 
received falls to one or zero.
    Bidders exiting the auction are allowed to submit an exit bid at an 
offer price greater than the clock price in the previous round and less 
than the incremented clock price in the current round. Once a bidder 
exits the auction, either by submitting an exit bid or by failing to 
submit an active bid, it will no longer be allowed to submit bids in 
any subsequent round. If a bidder leaves the auction without submitting 
an exit bid, BOEM will treat the last round's clock price as the 
bidder's exit bid in the current round. Exit bids are not considered to 
be active bids for purpose of determining whether to conclude the 
auction.
    The lease is awarded to the sole bidder submitting an active bid in 
the final round of the auction at the final round's stated auction 
price. If an active bid is not received in the final round, the lease 
is awarded to the bidder offering the highest exit bid price for the 
lease. If there is a tie at the highest exit bid price offered, the 
winning bidder is chosen by a random draw.
    Specific details about certain administrative aspects of the 
auction sale process will be described in the FSN. These aspects 
include how the clock price will increase in various stages of the 
auction, the duration of each bidding round, the amount of time 
provided between rounds, the number of rounds expected per day, and the 
days on which the auction process will continue, if necessary, beyond 
the first day. Bidders may expect multiple rounds per day to occur 
during normal business hours. The amount of time allowed for bidders to 
enter bids and the time between rounds may be reduced as the auction 
progresses based on the patterns of bidding to increase the pace of the 
auction. Bidders will be notified of the round schedule at the start of 
each day of the auction.
    Acceptance, Rejection or Return of Bids: BOEM reserves the right 
and authority to reject any and all bids. In any case, no bid will be 
accepted, and no lease will be awarded to any bidder, unless (1) the 
bidder has complied with all requirements of the FSN and applicable 
regulations; (2) the bid is the highest valid bid; (3) 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 
the FSN, the Act, and other applicable regulations may be returned to 
the bidder submitting that bid by the Program Manager of BOEM's Office 
of Renewable Energy Programs and not considered for acceptance. The 
winning bid will be evaluated for its conformance with the requirements 
and rules of the auction, including, but not limited to, applicable 
bidder qualifications, bid deposits, and the integrity of the bidding 
process.
    Process for Issuing the Lease: If BOEM proceeds with lease 
issuance, it will issue three unsigned copies of the lease form to the 
winning bidder. Within 10 business days after receiving the lease 
copies, a winning bidder must:
    1. Execute the lease on the bidder's behalf;
    2. File financial assurance as required under 30 CFR 585.515-537; 
and
    3. Pay the balance of the bonus bid (bid amount less the bid 
deposit).
    If a winning bidder does not meet these three requirements within 
10 business days of receiving the lease copies as described above, or 
if a winning bidder otherwise fails to comply with applicable 
regulations or the terms of the FSN, the winning bidder will forfeit 
its bid deposit. BOEM may extend this 10 business-day time period if it 
determines the delay was caused by events beyond the winning bidder's 
control.
    BOEM will not execute a lease until the three requirements above 
have been satisfied, BOEM has accepted the winning bidder's financial 
assurance, and BOEM has processed the winning bidder's payment. Please 
note the required timelines for providing financial assurance. The 
winning bidder may meet financial assurance requirements by posting a 
surety bond or by setting up an escrow account with a trust agreement 
giving BOEM the right to withdraw the money held in the account on 
demand by BOEM. BOEM may accept other forms of financial assurance on a 
case-by-case basis in accordance with its regulations. BOEM encourages 
winning bidders to discuss the financial assurance requirement with 
BOEM as soon as possible after the auction has concluded.
    Within 45 calendar days of the date that the Lessee receives the 
lease copies, the Lessee must pay the first year's rent.
    Anti-Competitive Behavior: In addition to the auction rules 
described in this notice, bidding behavior is governed by Federal 
antitrust laws designed to prevent anticompetitive behavior in the 
marketplace. Compliance with the BOEM's auction procedures will not 
insulate a party from enforcement of the antitrust laws.
    In accordance with the Act at 43 U.S.C. 1337(c), following the 
auction, and before the acceptance of bids and the issuance of leases, 
BOEM will ``allow the Attorney General, in consultation with the 
Federal Trade Commission, thirty days to review the results of the 
lease sale.''
    If a bidder is found to have engaged in anti-competitive behavior 
or otherwise violated BOEM's rules in connection with its participation 
in the competitive bidding process, BOEM may reject the high bid 
pursuant to its regulations at 30 CFR 585.222(a)(2).
    Anti-competitive behavior determinations are fact specific. 
However, such behavior may manifest itself in several different ways, 
including, but not limited to:
     An agreement, either express or tacit, among bidders to 
not bid in an auction, or to bid a particular price;
     An agreement among bidders not to bid in a particular 
location;
     An agreement among bidders not to bid against each other; 
and
     Other agreements among bidders that have the effect of 
limiting the final auction price.
     If awarding a lease would otherwise create a situation 
inconsistent with the antitrust laws (e.g., heavily concentrated 
market, etc.).
    For more information on whether specific communications or 
agreements could constitute a violation of Federal antitrust law, 
please see https://www.justice.gov/atr/public/business-resources.html, 
or consult counsel.
    Post-Auction Certification: In addition to the steps described in 
the section entitled, ``Process for Issuing the Lease,'' following the 
lease sale, each winning bidder will be required to certify the 
following in accordance with 18 U.S.C. 1001 (Fraud and False 
Statements):

    I certify that [name of qualified bidder] did not engage in 
anticompetitive bidding behavior in violation of Federal law, BOEM's 
regulations, or auction procedures.
    I certify that this bid is made in a good faith effort to win a 
lease to engage in the development of renewable energy resources.

    Non-Procurement Debarment and Suspension Regulations: Pursuant to 
regulations at 43 CFR Part 42, Subpart C, an OCS renewable energy 
Lessee must comply with the U.S. Department of the Interior's non-
procurement debarment and suspension regulations at 2 CFR Parts 180 and 
1400 and agree to communicate the 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 in their contracts 
and other transactions.

[[Page 71626]]

    Final Sale Notice: BOEM will consider comments received or 
postmarked during the PSN comment period in preparing a FSN that will 
provide the final details concerning the offering and issuance of an 
OCS commercial wind energy lease in the Virginia WEA. The FSN will be 
published in the Federal Register at least 30 days before the lease 
sale is conducted and will provide the date and time of the auction.
    Force Majeure: The Program Manager of BOEM's Office of Renewable 
Energy Programs has the discretion to change any date, time, and/or 
location specified in the FSN in case of a force majeure event that the 
Program Manager deems may interfere with a fair and proper lease sale 
process. Such events may include, but are not limited to, natural 
disasters (e.g., earthquakes, hurricanes, floods), wars, riots, acts of 
terrorism, fire, strikes, civil disorder or other events of a similar 
nature. In case of such events, bidders should call 703-787-1300 or 
access the BOEM Web site at: https://www.boem.gov/Renewable-Energy-Program/index.aspx.
    Appeals: The appeals procedures are provided in BOEM's regulations 
at 30 CFR 585.225 and 585.118(c). Pursuant to 30 CFR 585.225,
    (a) If BOEM rejects your bid, BOEM will provide a written statement 
of the reasons and refund any money deposited with your bid, without 
interest.
    (b) You will then be able to ask the BOEM Director for 
reconsideration, in writing, within 15 business days of bid rejection, 
under 30 CFR 585.118(c)(1). We will send you a written response either 
affirming or reversing the rejection.
    The procedures for appealing adverse final decisions with respect 
to lease sales are described in 30 CFR 585.118(c).

Protection of Privileged or Confidential Information

    Freedom of Information Act: BOEM will protect privileged or 
confidential information that you submit as required by the Freedom of 
Information Act (FOIA). Exemption 4 of FOIA applies to trade secrets 
and commercial or financial information that you submit that is 
privileged or confidential. If you wish to protect the confidentiality 
of such information, clearly mark it and request that BOEM treat it as 
confidential. BOEM will not disclose such information, subject to the 
requirements of FOIA. Please label privileged or confidential 
information ``Contains Confidential Information'' and consider 
submitting such information as a separate attachment.
    However, BOEM will not treat as confidential any aggregate 
summaries of such information or comments not containing such 
information. Additionally, BOEM may not treat as confidential the legal 
title of the commenting entity (e.g., the name of your company). 
Information that is not labeled as privileged or confidential will be 
regarded by BOEM as suitable for public release.

Section 304 of the National Historic Preservation Act (16 U.S.C. 470w-
3(a)):

    BOEM is required, after consultation with the Secretary, to 
withhold the location, character, or ownership of historic resources if 
it determines that disclosure may, among other things, cause a 
significant invasion of privacy, risk harm to the historic resources or 
impede the use of a traditional religious site by practitioners. Tribal 
entities and other interested parties should designate information that 
they wish to be held as confidential.

    Dated: November 27, 2012.
Tommy P. Beaudreau,
Director, Bureau of Ocean Energy Management.
[FR Doc. 2012-29097 Filed 11-30-12; 8:45 am]
BILLING CODE 4310-MR-P