Western Gulf of Mexico Planning Area (WPA) Outer Continental Shelf (OCS) Oil and Gas Lease Sale 233 (WPA Sale 233); MMAA104000, 45558-45564 [2013-18175]

Agencies

• DEPARTMENT OF THE INTERIOR
• Bureau of Ocean Energy Management

[Federal Register Volume 78, Number 145 (Monday, July 29, 2013)]
[Notices]
[Pages 45558-45564]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-18175]


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DEPARTMENT OF THE INTERIOR

Bureau of Ocean Energy Management


Western Gulf of Mexico Planning Area (WPA) Outer Continental 
Shelf (OCS) Oil and Gas Lease Sale 233 (WPA Sale 233); MMAA104000

AGENCY: Bureau of Ocean Energy Management, Interior.

ACTION: Final Notice of Sale.

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SUMMARY: On Wednesday, August 28, 2013, BOEM will open and publicly 
announce bids received for blocks offered in WPA Sale 233, in 
accordance with the provisions of the OCS Lands Act (OCSLA, 43 U.S.C. 
1331-1356a, as amended) and the implementing regulations issued 
pursuant to OCSLA (30 CFR parts 550 and 556). The WPA 233 Final Notice 
of Sale (NOS) package (Final NOS Package) contains information 
essential to potential bidders, and bidders are charged with knowing 
the contents of the documents contained in the Final NOS Package. The 
Final NOS Package is available at the address and Web site below.

DATES: Public bid reading for WPA Sale 233 will begin at 9:00 a.m., 
Wednesday, August 28, 2013, 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; parking will be available 
at Garage 6. All times referred to in this document are local New 
Orleans times, unless otherwise specified.
    Bid Submission Deadline: BOEM must receive all sealed bids between 
8:00 a.m. and 4:00 p.m. on normal working days, and from 8:00 a.m. to 
the Bid Submission Deadline of 10:00 a.m. on Tuesday, August 27, 2013, 
the day before the lease sale. For more information on bid submission, 
see Section VII, ``Bidding Instructions,'' of this document.

ADDRESSES: Interested parties can obtain a Final NOS Package by 
contacting the Gulf of Mexico (GOM) Region at: 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, or by visiting the BOEM Web site at https://www.boem.gov/About-BOEM/BOEM-Regions/Gulf-of-Mexico-Region/Index.aspx.

Table of Contents

    This Final NOS includes the following sections:

I. Lease Sale Area
II. Statutes and Regulations
III. Lease Terms and Economic Conditions
IV. Lease Stipulations
V. Information to Lessees
VI. Maps
VII. Bidding Instructions
VIII. Bidding Rules and Restrictions
IX. Forms
X. The Lease Sale
XI. Delay of Sale

I. Lease Sale Area

Areas Offered for Leasing

    In WPA Sale 233, 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 ArcInfo 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 WPA leasing maps and OPDs, please 
refer to 66 FR 28002 (May 21, 2001), 67 FR 60701 (September 26, 
2002), 72 FR 27590 (May 16, 2007), and 76 FR 54787 (September 2, 
2011). In addition, Supplemental Official OCS Block Diagrams (SOBDs) 
for blocks containing the U.S. 200 Nautical Mile Limit line and the 
U.S.-Mexico Maritime and Continental Shelf Boundary line are 
available. These SOBDs also are available from the BOEM Gulf of 
Mexico

[[Page 45559]]

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 being offered in the lease sale 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 233, August 28, 2013--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 Offered 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 (Sanctuary) in the 
East and West Flower Garden Banks and Stetson Bank. The following list 
identifies 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 theUnited 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 That lie Within the Former Western Gap and Within 1.4 Nautical 
Miles North of the Continental Shelf Boundary (1.4-Nautical Mile 
Buffer) Between the United States and Mexico

    Please be advised that the 1.4-nautical mile buffer, which has not 
been offered in recent lease sales, was included in the lease sale area 
identified in the Proposed NOS for this sale, in the event that the 
Agreement (described below), entered into force prior to the issuance 
of this Final NOS. However, the Agreement has yet to enter into force; 
accordingly, the 1.4 nautical mile buffer is not available for leasing. 
A treaty provision prohibiting exploration and development remains in 
effect in the Western Gap area of the GOM after the United States and 
Mexico exchanged instruments of ratification in January 2001. The 
treaty states that, at the earliest, exploration or development within 
the 1.4-nautical mile buffer would occur after January 2011; however, 
on June 23, 2010, the United States and Mexico mutually agreed to 
extend this period for an additional three years. The treaty provision 
now remains in effect until January 17, 2014. The Agreement was signed 
by the United States and Mexico on February 20, 2012, and upon entry 
into force, the Agreement will supersede the prohibition on exploration 
or development within the 1.4-nautical mile buffer imposed by the 
continuing treaty provision. As the Agreement has not received final 
approval such that it may enter into force, this 1.4-nautical mile 
buffer is not available for leasing, and BOEM is not including these 
blocks in the former Western Gap and in the 1.4-nautical mile buffer in 
the lease sale area for this Final NOS.

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

    The following definitions apply to this section:
    ``Agreement'' refers to the transboundary 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 wholly 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 
entered into force. 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 the sale. Bids submitted on available 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 approval of the 
Agreement necessary to allow it to enter into force, or by February 28, 
2014, whichever occurs first, the Secretary of the Interior (Secretary) 
will determine whether to open bids on available Boundary Area blocks 
or to return the bids unopened.
    In the event the Secretary decides to open bids on 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 10:00 a.m. on the day before bid opening. If BOEM does not give 
notice within 30 days of approval of the Agreement as described above, 
or by February 28, 2014, whichever comes first, BOEM will return the 
bids unopened. This timing will allow potential bidders to make 
decisions regarding the next annual WPA lease sale (anticipated in 
August 2014), 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 on blocks in the 
Boundary 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 233 would be reoffered in the 
next WPA lease sale in 2014.
    The following whole and partial blocks comprise the entire Boundary 
Area (not all of which may be available under WPA Sale 233):

[[Page 45560]]

    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

II. Statutes and Regulations

    Each lease is issued pursuant to OCSLA, implementing regulations 
promulgated pursuant thereto, and other applicable statutes and 
regulations in existence upon the effective date of the lease, as well 
as those applicable statutes enacted and regulations promulgated 
thereafter, except to the extent that the after-enacted statutes and 
regulations 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, that do not explicitly conflict with 
an express provision of the lease, will apply to 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.

III. Lease Terms and Economic Conditions

Lease Terms

OCS Lease Form
    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-2005.aspx. The lease form 
will be amended to conform with the specific terms, conditions, and 
stipulations applicable to the individual lease.
Initial Periods
    Initial periods are summarized in the following table:

------------------------------------------------------------------------
       Water depth in meters                   Initial period
------------------------------------------------------------------------
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 targeting hydrocarbons
                                     below 25,000 feet True Vertical
                                     Depth Subsea (TVD SS) during the
                                     first 5 years of the lease
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
------------------------------------------------------------------------

    (1) The standard initial period for a lease in water depths less 
than 400 meters issued as a result of this sale is 5 years. If the 
lessee spuds a well targeting hydrocarbons below 25,000 feet TVD SS 
within the first 5 years of the lease, then the lessee may earn an 
additional 3 years, resulting in an 8-year extended initial period. The 
lessee will earn the 8-year extended initial period when 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, 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 BSEE Gulf of Mexico Regional Supervisor 
for Production and Development must concur in writing that the 
conditions have been met for the lessee to earn the 8-year extended 
initial period. The BSEE Gulf of Mexico Regional Supervisor for 
Production and Development will provide a written response within 30 
days of receipt of the lessee's letter.
    A lessee that has earned the 8-year extended initial period by 
spudding a well with a hydrocarbon target below 25,000 feet TVD SS 
during the first 5 years of the lease, confirmed by BSEE, 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.
    (2) The standard initial period for a lease in water depths of 400 
to less than 800 meters issued as a result of this sale is 5 years. The 
lessee will earn an additional 3 years, resulting in 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 has 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.
    (3) The standard initial period for a lease in water depths of 800 
to less than 1,600 meters issued as a result of this sale will be 7 
years. The lessee will earn an additional 3 years, resulting in a 10-

[[Page 45561]]

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 has 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.
    (4) The standard initial period for a lease in water depths of 
1,600 meters or greater issued as a result of this sale will be 10 
years.

Economic Conditions

Minimum Bonus Bid Amounts
     $25.00 per acre or fraction thereof for blocks in water 
depths less than 400 meters
     $100.00 per acre or fraction thereof for blocks in water 
depths of 400 meters or deeper
    BOEM will not accept a bonus bid unless it provides for a cash 
bonus in the amount equal to, or exceeding, the specified minimum bid 
of $25.00 per acre or fraction thereof for blocks in water depths less 
than 400 meters, and $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:

                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 Water Depths Less Than 400 Meters
    Any lessee with a 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 water depth will become fixed and no longer 
escalate if another well is spudded targeting hydrocarbons below 25,000 
feet TVD SS after the fifth year of the lease, 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 Rate
     $7.00 per acre or fraction thereof per year for blocks in 
water depths 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 BOEM regulations at 30 CFR part 560. Royalty relief or 
reduction is implemented by BSEE through regulations at 30 CFR part 
203.
Ultra-deep Gas Royalty Suspensions
    A lease issued as a result of this sale may be eligible for RSV 
incentives for ultra-deep wells pursuant to 30 CFR part 203, 
implementing requirements of the Energy Policy Act of 2005. Certain 
wells on leases in less than 400 meters 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. This RSV incentive is conditioned 
upon applicable price thresholds.

IV. Lease Stipulations

    One or more of the following proposed stipulations may be applied 
to leases issued as a result of this sale. The detailed text of these 
stipulations is contained in the ``Lease Stipulations'' section of the 
Final NOS Package.
    (1) Topographic Features
    (2) Military Areas
    (3) Law of the Sea Convention Royalty Payment
    (4) Protected Species
    (5) Agreement between the United States of America and the United 
Mexican States
    Concerning Transboundary Hydrocarbon Reservoirs in the Gulf of 
Mexico

V. Information to Lessees

    The Information to Lessees (ITL) clauses provide detailed 
information on certain issues pertaining to this oil and gas lease 
sale. The detailed text of these ITL clauses is contained in the 
``Information to Lessees'' section of the Final NOS Package:
    (1) Navigation Safety
    (2) Ordnance Disposal Areas
    (3) Existing and Proposed Artificial Reefs/Rigs-to-Reefs
    (4) Lightering Zones
    (5) Indicated Hydrocarbons List
    (6) Military Areas
    (7) Safety Zones for Certain Production Facilities
    (8) Bureau of Safety and Environmental Enforcement (BSEE) 
Inspection and Enforcement of Certain Coast Guard Regulations
    (9) Potential Sand Dredging Activities
    (10) Notice of Arrival on the Outer Continental Shelf
    (11) Bids on Blocks near U.S.-Mexico Maritime and Continental Shelf 
Boundary

VI. Maps

    The maps pertaining to this lease sale may be found on the BOEM Web 
site at https://www.boem.gov/sale-233/. The following maps also are 
included in the Final NOS Package:

Lease Terms and Economic Conditions Map

    The lease terms and economic conditions and the blocks to which 
these terms and conditions apply are shown on the map ``Final, Western 
Planning Area, Lease Sale 233, August 2013, Lease Terms and Economic 
Conditions'' included in the Final NOS Package.

Stipulations and Deferred Blocks Map

    The blocks to which one or more lease stipulations may apply are 
shown on the map ``Final, Western Planning Area, Lease Sale 233, August 
2013, Stipulations and Deferred Blocks Map'' included in the Final NOS 
Package.

VII. Bidding Instructions

    Instructions on how to submit a bid, secure payment of the advance 
bonus bid deposit (if applicable), and what

[[Page 45562]]

information must be included with the bid are as follows:

Bid Form

    For each block bid upon, a separate sealed bid shall be submitted 
in a sealed envelope (as described below) and must include the 
following:
     total amount of the bid in whole dollars only;
     sale number;
     sale date;
     each bidder's exact name;
     each bidder's proportionate interest, stated as a 
percentage, using a maximum of five decimal places (e.g., 33.33333 
percent);
     typed name and title, and signature of each bidder's 
authorized officer;
     each bidder's GOM company number;
     map name and number or Official Protraction Diagram (OPD) 
name and number;
     block number; and
     statement acknowledging that the bidder(s) understand that 
this bid legally binds the bidder(s) to comply with all applicable 
regulations, including payment of one-fifth of the bonus bid amount on 
all apparent high bids.
    The information required on the bid(s) will be specified in the 
document ``Bid Form'' contained in the Final NOS Package. A blank bid 
form is provided therein for convenience and may be copied and 
completed with the necessary information described above.

Bid Envelope

    Each bid must be submitted in a separate sealed envelope labeled as 
follows:
     ``Sealed Bid for Oil and Gas Lease Sale 233, not to be 
opened until 9:00 a.m. Wednesday, August 28, 2013'' or if the bid is on 
a block in the U.S.-Mexico Maritime Boundary Area, ``Sealed Bid for Oil 
and Gas Lease Sale 233 U.S.-Mexico Maritime Boundary Bid, not to be 
opened until at least 30 days following the approval of the 
Transboundary Agreement allowing it to enter into force, or February 
28, 2014, whichever occurs first;''
     map name and number or OPD name and number;
     block number for block bid upon; and
     the exact name and qualification number of the submitting 
bidder only.
    The Final NOS Package includes a sample bid envelope for reference.

Mailed Bids

    If bids are mailed, please address the envelope containing the 
sealed bid envelope(s) 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 233, Please Deliver to Ms. Cindy Thibodeaux 
or Ms. Kasey Couture, 2nd Floor, Immediately.

    Please Note:
    Bidders mailing bid(s) are advised to call Ms. Cindy Thibodeaux 
at (504) 736-2809, or Ms. Kasey Couture at (504) 736-2909, 
immediately after putting their bid(s) in the mail. If BOEM receives 
bids later than the Bid Submission Deadline, the BOEM Regional 
Director (RD) will return those bids unopened to bidders. Please see 
``Section XI. Delay of Sale'' regarding BOEM's discretion to extend 
the Bid Submission Deadline in the case of an unexpected event 
(e.g., flooding or travel restrictions) and how bidders can obtain 
more information on such extensions.

Advance Bonus Bid Deposit Guarantee

    Bidders that are not currently an OCS oil and gas lease record 
title holder or designated operator or those that ever have defaulted 
on a one-fifth bonus bid deposit, by Electronic Funds Transfer (EFT) or 
otherwise, must guarantee (secure) the payment of the one-fifth bonus 
bid deposit prior to bid submission using one of the following four 
methods:
     provide a third-party guarantee;
     amend an areawide development bond via bond rider;
     provide a letter of credit; or
     provide a lump sum payment in advance via EFT.
    For more information on EFT procedures, see Section X of this 
document entitled ``The Lease Sale.''

Affirmative Action

    BOEM requests 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 Gulf of Mexico Region Adjudication 
Section. This certification is required by 41 CFR part 60 and Executive 
Order No. 11246, issued September 24, 1965, as amended by Executive 
Order No. 11375, issued October 13, 1967. Please note that both forms 
are required to be on file for the bidder(s) in the GOM Region 
Adjudication Section prior to the execution of any lease contract.

Geophysical Data and Information Statement (GDIS)

    Every bidder submitting a bid on a block in WPA Sale 233, or 
participating as a joint bidder in such a bid, must submit at the time 
of bid submission a GDIS in a separate and sealed envelope, identifying 
all proprietary data; reprocessed speculative data, and/or any 
Controlled Source Electromagnetic surveys, Amplitude Versus Offset, 
Gravity, or Magnetic data; or other information used as part of the 
decision to bid or participate in a bid on the block. The bidder and 
joint bidder must also include a live trace map (e.g., .pdf and ArcGIS 
shape file) for each survey that they identify in the GDIS illustrating 
the actual areal extent of the proprietary geophysical data in the 
survey (see the ``Example of Preferred Format'' in the Final NOS 
Package for additional information).
    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., 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 also 
must 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 who are available for 30 days postsale, 
the processing company, date processing was completed, owner of the 
original data set (i.e., who initially acquired the data), and 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 volume used to evaluate the lease block 
in question. This will be used in estimating the reproduction costs for 
each data set. BOEM reserves the right to query about alternate data 
sets, to quality check, and to 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 GDIS also must include entries for all blocks bid upon that did 
not use proprietary or reprocessed pre- or post-stack geophysical data 
and information as part of the decision to bid or to participate as a 
joint bidder in the bid. The GDIS must be submitted even if no 
proprietary geophysical data and

[[Page 45563]]

information were used in bid preparation for the block.
    Pursuant to 30 CFR 551.12 and 30 CFR 556.32, as a condition of the 
sale, the BOEM Gulf of Mexico RD requests that all bidders and joint 
bidders submit the proprietary data identified on their GDIS within 30 
days after the lease sale (unless you are notified after the lease sale 
that BOEM has withdrawn the request). This request only pertains to 
proprietary data that is not commercially available. Commercially 
available data is not required to be submitted to BOEM, and 
reimbursement will not be provided if such data is submitted by a 
bidder. The BOEM Gulf of Mexico RD will notify bidders and joint 
bidders of any withdrawal of the request, for all or some of the 
proprietary data identified on the GDIS, within 15 days of the lease 
sale. Pursuant to 30 CFR part 551 and as a condition of this sale, all 
bidders required to submit data must ensure that the data is received 
by BOEM no later than the thirtieth day following the lease sale, or 
the next business day if the submission deadline falls on a weekend or 
Federal holiday. The data must be submitted to BOEM at the following 
address: Bureau of Ocean Energy Management, Resource Studies, MS 881A, 
1201 Elmwood Park Blvd., New Orleans, LA 70123-2304.
    BOEM recommends that bidders mark the submission's external 
envelope as ``Deliver Immediately to DASPU.'' BOEM also recommends that 
the data be submitted in an internal envelope, or otherwise marked, 
with the following designation ``Proprietary Geophysical Data Submitted 
Pursuant to Lease Sale 233 and used during evaluation of Block.''
    In the event a person supplies any type of data to BOEM, that 
person must meet the following requirements to qualify for 
reimbursement:
    (1) Persons 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 is 
needed to register or update your entity's records. The Web site for 
registering is https://www.sam.gov.
    (2) Persons must be enrolled in the Department of Treasury's 
Internet Payment Platform (IPP) for electronic invoicing. The person 
must enroll in the IPP at https://www.ipp.gov/. Access then will 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) Persons must have a current On-line Representations and 
Certifications Application at https://www.sam.gov.

    Please Note:
    The GDIS Information Table must be submitted digitally, 
preferably as an Excel spreadsheet, on a CD or DVD along with the 
seismic data map(s). If you have any questions, please contact Ms. 
Dee Smith at (504) 736-2706, or Mr. John Johnson at (504) 736-2455. 
Bidders should refer to Section X of this document, ``The Lease 
Sale: Acceptance, Rejection, or Return of Bids,'' regarding a 
bidder's failure to comply with the requirements of the Final NOS, 
including any failure to submit information as required in the Final 
NOS or Final NOS Package.

Telephone Numbers/Addresses of Bidders

    BOEM requests that bidders provide this information in the 
suggested format prior to or at the time of bid submission. This form 
must not be enclosed inside the sealed bid envelope.

Additional Documentation

    BOEM may require bidders to submit other documents in accordance 
with 30 CFR 556.46.

VIII. Bidding Rules and Restrictions

Restricted Joint Bidders

    BOEM published in the Federal Register on May 10, 2013, a List of 
Restricted Joint Bidders at 78 FR 27430, which applies to this lease 
sale. Please refer to joint bidding provisions at 30 CFR 556.41 for 
additional restrictions.

Authorized Signatures

    All bidders must execute all documents in conformance with 
signatory authorizations on file in the BOEM qualification records.

Unlawful Combination or Intimidation

    BOEM warns bidders against violation of 18 U.S.C. 1860, prohibiting 
unlawful combination or intimidation of bidders.

Bid Withdrawal

    Bids may be withdrawn only by written request delivered to BOEM 
prior to the Bid Submission Deadline. The withdrawal request must be on 
company letterhead and must contain the bidder's name, its company 
number, the map name/number, and the block number(s) of the bid(s) to 
be withdrawn. The request must be in conformance with signatory 
authorizations on file in the BOEM Gulf of Mexico Region Adjudication 
Office. Signatories must be authorized to bind their respective legal 
business entities (e.g., a corporation, partnership, or LLC); they also 
must have 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. The name and 
title of the signatory must be typed under the signature block on the 
withdrawal letter. Upon the BOEM Gulf of Mexico RD's, or his 
designee's, approval of such requests, he will indicate his approval by 
signing and dating the withdrawal request.

Bid Rounding

    The bonus bid amount must be stated in whole dollars. If the 
acreage of a block contains a decimal figure, then prior to calculating 
the minimum bonus bid, bidders must round up to the next whole acre. 
The appropriate minimum rate per acre is then applied to the whole 
(rounded up) acreage. If this calculation results in a fractional 
dollar amount, bidders must 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 will be shown in the document ``List of Blocks Available for 
Leasing'' included in the Final NOS Package.

IX. Forms

    The Final NOS Package includes instructions, samples, and/or the 
preferred format for the following items. BOEM strongly encourages 
bidders to use these formats; should bidders use another format, they 
are responsible for including all the information specified for each 
item in the Final NOS Package.
    (1) Bid Form
    (2) Sample Completed Bid
    (3) Sample Bid Envelope
    (4) Sample Bid Mailing Envelope
    (5) Telephone Numbers/Addresses of Bidders Form
    (6) GDIS Form
    (7) GDIS Envelope Form

X. The Lease Sale

Bid Opening and Reading

    Sealed bids received in response to the Final NOS will be opened at 
the place, date, and hour specified in the Final NOS. The opening of 
the bids is for the sole purpose of publicly announcing and recording 
the bids received; no bids will be accepted or rejected at that time.

Bonus Bid Deposit for Apparent High Bids

    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. A copy of the notification of the high

[[Page 45564]]

bidder's one-fifth bonus liability may be obtained at the EFT Area 
outside the Bid Reading Room on the day of the bid opening, or it may 
be obtained on the BOEM Web site at https://www.boem.gov/Sale-233/ under 
the heading ``Notification of EFT \1/5\ Bonus Liability.'' All payments 
must be deposited electronically into an interest-bearing account in 
the U.S. Treasury by 11:00 a.m. Eastern Time the day following the bid 
reading (no exceptions). Account information is provided in the 
``Instructions for Making Electronic Funds Transfer Bonus Payments'' 
found on the BOEM Web site identified above.
    BOEM requires bidders to use EFT procedures for payment of one-
fifth bonus bid deposits for WPA Sale 233, following the detailed 
instructions contained on the ONRR Payment Information Web page at 
https://www.onrr.gov/FM/PayInfo.htm. Acceptance of a deposit does not 
constitute and shall not be construed as acceptance of any bid on 
behalf of the United States.

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. 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 the 
Final NOS, including those set forth in the documents contained in the 
Final NOS 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 the Final NOS and Final NOS Package, OCSLA, or 
other applicable statute or regulation may be rejected and returned to 
the bidder. The U.S. Department of Justice and the Federal Trade 
Commission will review the results of the lease sale for anti-trust 
issues prior to the acceptance of bids and issuance of leases. To 
ensure that the Government receives a fair return for the conveyance of 
leases from this sale, high bids will be evaluated in accordance with 
BOEM's 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 BOEM Gulf of Mexico Region Public 
Information Office, or via the BOEM Gulf of Mexico Region Web site at 
https://www.boem.gov/Oil-and-Gas-Energy-Program/Leasing/Regional-Leasing/Gulf-of-Mexico-Region/Bid-Adequacy-Procedures.aspx.

Lease Award

    BOEM requires each bidder 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. ONRR requests that only one 
transaction be used for payment of the four-fifths bonus bid amount and 
the first year's rental.

XI. Delay of Sale

    The BOEM Gulf of Mexico RD has the discretion to change any date, 
time, and/or location specified in the Final NOS Package in case of an 
event that the BOEM Gulf of Mexico RD deems may interfere with the 
carrying out of a fair and proper lease sale process. Such events could 
include, but are not limited to, natural disasters (e.g., earthquakes, 
hurricanes, and floods), wars, riots, acts of terrorism, fires, 
strikes, civil disorder, or other events of a similar nature. In case 
of such events, bidders should call (504) 736-0557, or access the BOEM 
Web site at https://www.boem.gov for information regarding any changes.

    Dated: July 17, 2013.
Tommy P. Beaudreau,
Director, Bureau of Ocean Energy Management.
[FR Doc. 2013-18175 Filed 7-26-13; 8:45 am]
BILLING CODE 4310-MR-P