Central Gulf of Mexico Planning Area (CPA) Outer Continental Shelf (OCS) Oil and Gas Lease Sale 231 (CPA Sale 231), 8993-9000 [2014-03316]

Agencies

• DEPARTMENT OF THE INTERIOR
• Bureau of Ocean Energy Management

[Federal Register Volume 79, Number 31 (Friday, February 14, 2014)]
[Notices]
[Pages 8993-9000]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-03316]


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DEPARTMENT OF THE INTERIOR

Bureau of Ocean Energy Management

[MMAA104000]


Central Gulf of Mexico Planning Area (CPA) Outer Continental 
Shelf (OCS) Oil and Gas Lease Sale 231 (CPA Sale 231)

AGENCY: Bureau of Ocean Energy Management, Interior.

ACTION: Final notice of sale.

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SUMMARY: On Wednesday, March 19, 2014, BOEM will open and publicly 
announce bids received for blocks offered in CPA Sale 231 in accordance 
with the provisions of the OCS Lands Act (OCSLA, 43 U.S.C. 1331-1356, 
as amended) and the implementing regulations issued pursuant thereto 
(30 CFR Parts 550 and 556).
    The CPA 231 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 CPA Sale 231 will begin at 9:00 a.m., 
Wednesday, March 19, 2014, 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, or from 8:00 a.m. to 
the Bid Submission Deadline of 10:00 a.m. on Tuesday, March 18, 2014, 
the day before the lease sale. For more information on bid submission, 
see Section VII, ``Bidding Instructions,'' of this document.

ADDRESSES: Interested parties, upon request, may obtain a compact disc 
(CD-ROM) containing the Final NOS Package by contacting the BOEM Gulf 
of Mexico Region (GOMR) 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/Sale-231/.

SUPPLEMENTARY INFORMATION:

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

Blocks Offered for Leasing

    In CPA Sale 231, BOEM is offering for lease all blocks and partial 
blocks 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--Louisiana Map Numbers 1 Through 
12

(These 30 maps sell for $2.00 each.)
    LA1 West Cameron Area (Revised July 1, 2011)
    LA1A West Cameron Area, West Addition (Revised February 28, 2007)
    LA1B West Cameron Area, South Addition (Revised February 28, 2007)
LA2 East Cameron Area (Revised November 1, 2000)
LA2A East Cameron Area, South Addition (Revised November 1, 2000)
LA3 Vermilion Area (Revised November 1, 2000)
LA3A South Marsh Island Area (Revised November 1, 2000)
LA3B Vermilion Area, South Addition (Revised November 1, 2000)
LA3C South Marsh Island Area, South Addition (Revised November 1, 2000)
LA3D South Marsh Island Area, North Addition (Revised November 1, 2000)
LA4 Eugene Island Area (Revised November 1, 2000)
LA4A Eugene Island Area, South Addition (Revised November 1, 2000)
LA5 Ship Shoal Area (Revised November 1, 2000)
LA5A Ship Shoal Area, South Addition (Revised November 1, 2000)
LA6 South Timbalier Area (Revised November 1, 2000)
LA6A South Timbalier Area, South Addition (Revised November 1, 2000)
LA6B South Pelto Area (Revised November 1, 2000)
LA6C Bay Marchand Area (Revised November 1, 2000)
LA7 Grand Isle Area (Revised November 1, 2000)
LA7A Grand Isle Area, South Addition (Revised February 17, 2004)
LA8 West Delta Area (Revised November 1, 2000)
LA8A West Delta Area, South Addition (Revised November 1, 2000)
LA9 South Pass Area (Revised November 1, 2000)
LA9A South Pass Area, South and East Additions (Revised November 1, 
2000)
LA10 Main Pass Area (Revised November 1, 2000)
LA10A Main Pass Area, South and East Additions (Revised November 1, 
2000)
LA10B Breton Sound Area (Revised November 1, 2000)
LA11 Chandeleur Area (Revised November 1, 2000)
LA11A Chandeleur Area, East Addition (Revised November 1, 2000)
LA12 Sabine Pass Area (Revised July 1, 2011)

Outer Continental Shelf Official Protraction Diagrams

(These 19 diagrams sell for $2.00 each.)
NG15-02 Garden Banks (Revised February 28, 2007)
NG15-03 Green Canyon (Revised November 1, 2000)
NG15-05 Keathley Canyon (Revised February 28, 2007)

[[Page 8994]]

NG15-06 Walker Ridge (Revised November 1, 2000)
NG15-08 Sigsbee Escarpment (Revised February 28, 2007)
NG15-09 Amery Terrace (Revised October 25, 2000)
NG16-01 Atwater Valley (Revised November 1, 2000)
NG16-02 Lloyd Ridge (Revised August 1, 2008)
NG16-04 Lund (Revised November 1, 2000)
NG16-05 Henderson (Revised August 1, 2008)
NG16-07 Lund South (Revised November 1, 2000)
NG16-08 Florida Plain (Revised February 28, 2007)
NH15-12 Ewing Bank (Revised November 1, 2000)
NH16-04 Mobile (Revised July 1, 2011)
NH16-05 Pensacola (Revised February 28, 2007)
NH16-07 Viosca Knoll (Revised November 1, 2000)
NH16-08 Destin Dome (Revised February 28, 2007)
NH16-10 Mississippi Canyon (Revised November 1, 2000)
NH16-11 De Soto Canyon (Revised August 1, 2008)

    Please Note: A CD-ROM (in ArcInfo and Acrobat (.pdf) format) 
containing all of the Gulf of Mexico (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 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 CPA leasing maps and OPDs, please 
refer to 66 FR 28002 (May 21, 2001), 69 FR 23211 (April 28, 2004), 72 
FR 27590 (May 16, 2007), 72 FR 35720 (June 29, 2007), 73 FR 63505 
(October 24, 2008), and 76 FR 54787 (September 2, 2011).
    All blocks being offered in the lease sale are shown on these 
leasing maps and OPDs. The available Federal acreage of all whole and 
partial blocks in this lease sale is shown in the document ``List of 
Blocks Available for Leasing'' included in 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. Information on the unleased portions of such blocks is 
found in the document ``Central Planning Area, Lease Sale 231, March 
19, 2014--Unleased Split Blocks and Available Unleased Acreage of 
Blocks with Aliquots and Irregular Portions Under Lease or Deferred'' 
included in the Final NOS Package.
    For additional information, please call Mr. Lenny Coats, Chief of 
the Mapping and Automation Section, at (504) 736-1457.

Blocks Not Offered for Leasing

    The following whole and partial blocks are not offered for lease in 
this sale:
    Whole and partial blocks deferred by the Gulf of Mexico Energy 
Security Act of 2006, Public Law 109-432:

Pensacola (OPD NH 16-05)

Whole Blocks: 751 through 754, 793 through 798, 837 through 842, 881 
through 886, 925 through 930, and 969 through 975

Destin Dome (OPD NH 16-08)

Whole Blocks: 1 through 7, 45 through 51, 89 through 96, 133 through 
140, 177 through 184, 221 through 228, 265 through 273, 309 through 
317, 353 through 361, 397 through 405, 441 through 450, 485 through 
494, 529 through 538, 573 through 582, 617 through 627, 661 through 
671, 705 through 715, 749 through 759, 793 through 804, 837 through 
848, 881 through 892, 925 through 936, and 969 through 981

DeSoto Canyon (OPD NH 16-11)

Whole Blocks: 1 through 15, 45 through 59, and 92 through 102
Partial Blocks: 16, 60, 61, 89 through 91, 103 through 105, and 135 
through 147

Henderson (OPD NG 16-05)

Partial Blocks: 114, 158, 202, 246, 290, 334, 335, 378, 379, 422, and 
423

    Blocks that are adjacent to or beyond the United States Exclusive 
Economic Zone in the area known as the northern portion of the Eastern 
Gap:

Lund South (OPD NG 16-07)

Whole Blocks: 128, 129, 169 through 173, 208 through 217, 248 through 
261, 293 through 305, and 349

Henderson (OPD NG 16-05)

Whole Blocks: 466, 508 through 510, 551 through 554, 594 through 599, 
637 through 643, 679 through 687, 722 through 731, 764 through 775, 807 
through 819, 849 through 862, 891 through 905, 933 through 949, and 975 
through 992
Partial Blocks: 467, 511, 555, 556, 600, 644, 688, 732, 776, 777, 820, 
821, 863, 864, 906, 907, 950, 993, and 994

Florida Plain (OPD NG 16-08)

Whole Blocks: 5 through 24, 46 through 67, 89 through 110, 133 through 
154, 177 through 197, 221 through 240, 265 through 283, 309 through 
327, and 363 through 370

    Whole and partial blocks that lie within the 1.4-nautical mile 
buffer zone north of the Continental Shelf Boundary between the United 
States and Mexico:

Amery Terrace (OPD NG 15-09)

Whole Blocks: 280, 281, 318 through 320, and 355 through 359
Partial Blocks: 235 through 238, 273 through 279, and 309 through 317

Sigsbee Escarpment (OPD NG 15-08)

Whole Blocks: 239, 284, and 331 through 341
Partial Blocks: 151, 195, 196, 240, 241, 285 through 298, and 342 
through 349

    The following block is deferred until measures to ensure the safety 
of planned decommissioning operations are completed:

Green Canyon (OPD NG15-03) Block 20

    Please Note:  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.

    After extensive negotiations, the United States and Mexico 
exchanged instruments of ratification in January 2001, and a 
Continental Shelf Boundary treaty entered into force in the Western Gap 
area of the GOM. The treaty states that, at the earliest, exploration 
or development within 1.4 nautical miles of the Continental Shelf 
Boundary would occur after January 2011. On June 23, 2010, the United 
States and Mexico mutually agreed to extend this period for an 
additional three years. The treaty provision was to remain in effect 
until January 17, 2014, but, by exchange of diplomatic notes on January 
17, 2014, the United States and Mexico have extended the prohibition on 
exploration and development in the 1.4-nautical mile buffer until July 
17, 2014, or until the day the Agreement between the United States of 
America and the United Mexican States Concerning Transboundary 
Hydrocarbon Reservoirs in the Gulf of Mexico (Agreement) enters into 
force, whichever is sooner. Although the Agreement (described below), 
negotiated between and signed by the United States and Mexico on 
February 20, 2012, has received Congressional approval and the 
President's signature, it has not entered into force. Once it enters 
into force, the Agreement will supersede and automatically terminate 
the prohibition on exploration or development in the 1.4-nautical mile 
buffer imposed by the continuing treaty provision.

[[Page 8995]]

    As the Agreement has not entered into force, and the United States 
and Mexico have extended the Treaty provision prohibiting exploration 
and development in this area, BOEM has decided not to offer for lease 
whole and partial blocks in the 1.4-nautical mile buffer for CPA Sale 
231. BOEM currently anticipates that blocks in the 1.4-nautical mile 
buffer will be offered in the next CPA lease sale in 2015.

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 CPA that are wholly or partially located within 3 statute miles of 
the Maritime and Continental Shelf Boundary with Mexico, as that 
Maritime Boundary is delimited in the November 23, 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. The United States 
Congress approved the Agreement as part of the Bipartisan Budget Act of 
2013, which the President signed on December 26, 2013. The Agreement 
will enter into force 60 days after the exchange of diplomatic notes 
between the United States and Mexico. Therefore, BOEM has decided that 
bids submitted on available blocks in the Boundary Area will be opened 
on the date scheduled for the sale. Bidders should refer to Stipulation 
No. 10 in the Stipulations section of the Final NOS Package, which will 
be applicable to leases issued for blocks in the Boundary Area.
    The following whole and partial blocks comprise the entire Boundary 
Area (not all of which may be available under CPA Sale 231):

Sigsbee Escarpment--151, 152, 195, 196, 197, 239, 240, 241, 242, 243, 
284, 285, 286, 287, 288*, 289*, 290*, 291, 292, 293, 294, 295, 296, 
297, 298, 299, 300, 301, 302, 303, 304, 305, 331, 332, 333, 334, 335, 
336, 337, 338, 339, 340, 341, 342, 343, 344, 345, 346, 347, 348, 349
Amery Terrace--118, 119, 120*, 121*, 122*, 155, 156, 157, 158, 159, 
160, 161, 162, 163, 164*, 165*, 166*, 167, 168, 169, 170, 171, 172, 
173, 174, 175, 193, 194, 195, 196, 197, 198, 199, 200, 201, 202, 203, 
204, 205, 206, 210, 211, 212, 213, 214, 215, 216, 217, 218, 219, 232, 
233, 234, 235, 236, 237, 238, 239, 240, 241, 242, 243, 265, 266, 267, 
271, 272, 273, 274, 275, 276, 277, 278, 279, 280, 281, 309, 310, 311, 
312, 313, 314, 315, 316, 317, 318, 319, 320, 355, 356, 357, 358, 359
Lund South--133, 134, 135, 136, 137, 138, 139, 140, 141, 142, 143, 144, 
177, 178, 179, 180, 181, 182, 183, 184, 185, 186, 187, 188, 189, 190, 
191, 192, 193, 194, 195, 196, 197, 198, 199, 200, 201, 202, 203, 204, 
205, 232, 233, 234, 235, 236, 237, 238, 239, 240, 241, 242, 243, 244, 
245, 246, 247, 248, 249, 250, 251, 252, 293, 294, 295, 296

    * = Leased

II. Statutes and Regulations

    Each lease is issued pursuant to OCSLA, and is subject 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. Each lease is also subject to 
amendments to statutes and regulations, including but not limited to 
OCSLA, that do not explicitly conflict with an express provision of the 
lease. The lessee expressly bears the risk that such new or amended 
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 obligations 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 each individual lease. The terms, 
conditions, and stipulations applicable to this sale are set forth 
below.
Initial Periods
    Initial periods are summarized in the following table:

------------------------------------------------------------------------
       Water depth  (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 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

[[Page 8996]]

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 ranging 
from 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 ranging 
from 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-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.
    (4) The standard initial period for a lease in water depths 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 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 400 meters or deeper.
Rental Rates
    Annual rental rates are summarized in the following table:

                                    Rental Rates Per Acre or Fraction Thereof
----------------------------------------------------------------------------------------------------------------
                      Water depth (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 less than 400 meters water depth who 
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 Rates
     $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 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 subject to 
applicable price thresholds set forth in that regulation.

IV. Lease Stipulations

    One or more of the following stipulations may be applied to leases 
issued as a result of this sale. The detailed text of these 
stipulations is

[[Page 8997]]

contained in the ``Lease Stipulations'' section of the Final NOS 
Package.

(1) Topographic Features
(2) Live Bottoms
(3) Military Areas
(4) Evacuation
(5) Coordination
(6) Blocks South of Baldwin County, Alabama
(7) Law of the Sea Convention Royalty Payment
(8) Protected Species
(9) Below Seabed Operations
(10) 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) Communication Towers
(4) Existing and Proposed Artificial Reefs/Rigs to Reefs
(5) Lightering Zones
(6) Indicated Hydrocarbons List
(7) Military Areas
(8) Safety Zones for Certain Production Facilities
(9) Bureau of Safety and Environmental Enforcement (BSEE) Inspection 
and Enforcement of Certain Coast Guard Regulations
(10) Deepwater Port Applications for Offshore Liquefied Natural Gas 
Facilities
(11) Ocean Dredged Material Disposal Sites
(12) Potential Sand Dredging Activities
(13) Below Seabed Operations
(14) Commercial Waste Disposal Areas
(15) Air Quality Permits
(16) Notice of Arrival on the Outer Continental Shelf
(17) Gulf Islands National Seashore
(18) Bidder/Lessee Notice Obligations Related to Criminal/Civil Charges 
and Offenses, Suspension, or Debarment.

VI. Maps

    The maps pertaining to this lease sale may be found on the BOEM Web 
site at https://www.boem.gov/Sale-231/. 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, Central 
Planning Area, Lease Sale 231, March 19, 2014, 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, Central Planning Area, Lease Sale 231, March 
19, 2014, 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 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, title, and signature of each bidder's 
authorized officer;
     each bidder's qualification 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 231, not to be 
opened until 9 a.m. Wednesday, March 19, 2014'';
     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 samples of the bid envelopes 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 CPA Oil and Gas Lease Sale 231 
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) with 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

[[Page 8998]]

Adjudication Section prior to the execution of any lease contract.

Geophysical Data and Information Statement Package (GDIS)

    The GDIS is composed of three parts:
    (1) The ``Statement'' page includes the company representatives' 
information and lists of blocks bid on that used proprietary data and 
those bid on that did not use proprietary data,
    (2) the ``Table'' listing the required data about each proprietary 
survey used (see below), and
    (3) the ``Maps,'' which are the live trace maps for each survey 
identified in the GDIS statement and table.
    Every bidder submitting a bid on a block in CPA Sale 231, or 
participating as a joint bidder in such a bid, must submit at the time 
of bid submission all three parts of the GDIS. 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 must be submitted in a separate and sealed envelope. It 
also must identify all proprietary data; reprocessed speculative data, 
and/or any Controlled Source Electromagnetic surveys, Amplitude Versus 
Offset (AVO), 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).
    The GDIS statement 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 
post sale. The GDIS statement 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 statement must be 
submitted even if no proprietary geophysical data and information were 
used in bid preparation for the block.
    The GDIS table should have columns that clearly state the sale 
number; the bidder company's name; the block area and block number bid 
on; the owner of the original data set (i.e., who initially acquired 
the data); the industry's original survey name (e.g., E Octopus); the 
BOEM permit number for the survey; whether the data set is a fast track 
version; whether the data is speculative or proprietary; the data type 
(e.g., 2-D, 3-D, or 4-D; pre-stack or post-stack; and time or depth); 
migration algorithm (e.g., Kirchhoff Migration, Wave Equation 
Migration, Reverse Migration, Reverse Time Migration) of the data; and 
areal extent of bidder survey (i.e., number of line miles for 2-D or 
number of blocks for 3-D). Provide the computer storage size, to the 
nearest gigabyte, 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, if applicable. The next 
column should state who reprocessed the data (e.g., external company 
name or ``in-house'') and when the date of final reprocessing was 
completed (month and year). If the data was sent to BOEM for bidding in 
a previous lease sale, list the date the data was processed (month and 
year) and indicate if AVO data was used in the evaluation. 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. An example of the preferred format of the table 
may be found in the Final NOS Package and a blank digital version of 
the preferred table may be accessed on the CPA Sale 231 page at https://www.boem.gov/Sale-231/.
    The GDIS maps are live trace maps (in .pdf and ArcGIS shape files) 
that should be submitted for each survey that is identified in the GDIS 
table. They should illustrate 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).
    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 they 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 30th 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 231 and used during (Bidder Name's) evaluation 
of Block (Block Number).''
    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). CCR 
usernames will not work in SAM. A new SAM User Account is needed to 
register or update an 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 prior to or at 
the time of bid submission. The suggested format

[[Page 8999]]

is contained in the Final NOS Package. 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 October 28, 2013, the 
most recent List of Restricted Joint Bidders at 78 FR 64243. Potential 
bidders are advised to refer to the Federal Register, prior to bidding, 
for the most current List of Restricted Joint Bidders in place at the 
time of the lease sale. Please refer to joint bidding provisions at 30 
CFR 556.41 for additional restrictions.

Authorized Signatures

    All signatories executing documents on behalf of bidder(s) must 
execute the same in conformance with 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 executed in conformance with the BOEM 
qualification records. 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 request, he/she will 
indicate 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, BOEM rounded up to the next whole acre. The 
appropriate minimum rate per acre was then applied to the whole 
(rounded up) acreage. If this calculation resulted in a fractional 
dollar amount, the minimum bonus bid was rounded up to the next whole 
dollar amount. The bonus bid amount must be greater than or equal to 
the minimum bonus bid in whole dollars. 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 DATES section of this 
document above. 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 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-231/ 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 https://www.boem.gov/Final-Notice-of-Sale-231-Package/.
    BOEM requires bidders to use EFT procedures for payment of one-
fifth bonus bid deposits for CPA Sale 231, 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 or 
partial 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,'' published 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,

[[Page 9000]]

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: February 6, 2014.
Tommy P. Beaudreau,
Director, Bureau of Ocean Energy Management.
[FR Doc. 2014-03316 Filed 2-13-14; 8:45 am]
BILLING CODE 4310-MR-P