Western Gulf of Mexico Planning Area (WPA) Outer Continental Shelf (OCS) Oil and Gas; Lease Sale 238 (WPA Sale 238), 42041-42048 [2014-16962]

Agencies

• DEPARTMENT OF THE INTERIOR
• Bureau of Ocean Energy Management

[Federal Register Volume 79, Number 138 (Friday, July 18, 2014)]
[Notices]
[Pages 42041-42048]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-16962]


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DEPARTMENT OF THE INTERIOR

Bureau of Ocean Energy Management

[MMAA104000]


Western Gulf of Mexico Planning Area (WPA) Outer Continental 
Shelf (OCS) Oil and Gas; Lease Sale 238 (WPA Sale 238)

AGENCY: Bureau of Ocean Energy Management, Interior.

ACTION: Final notice of sale.

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SUMMARY: On Wednesday, August 20, 2014, BOEM will open and publicly 
announce bids received for blocks offered in WPA Sale 238 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 WPA 238 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 238 will begin at 9:00 a.m., 
Wednesday, August 20, 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

[[Page 42042]]

through Gate A on the Ground Level; parking will be available at Garage 
6. All times referred to in this document are local times in New 
Orleans, 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, August 19, 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-238/.

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 WPA Sale 238, 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--Texas Map Numbers 1 Through 8
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
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
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 July 1, 2013)
NG15-08 Sigsbee Escarpment (revised July 1, 2013)
NG 15-09 Amery Trace (revised July 1, 2013)

     Please Note: A CD-ROM (in ArcInfo and Acrobat (.pdf) format) 
containing all of the GOM leasing maps and OPDs, is available from 
the BOEM Gulf of Mexico Region Public Information Office for a price 
of $15.00. These GOM leasing maps and OPDs also are available online 
for free 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), 76 FR 54787 (September 2, 2011), and 79 FR 
32572 (June 5, 2014). 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 Region Public Information Office and on BOEM's Web site at 
https://www.boem.gov/Oil-and-Gas-Energy-Program/Mapping-and-Data/Supplemental-Official-OCS-Block-Diagrams-SOBDs.aspx. 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 entitled ``Western Planning Area, Lease Sale 
238, August 20, 2014--Unleased Split Blocks and Available Unleased 
Acreage of Blocks with Aliquots and Irregular Portions under Lease or 
Deferred,'' which is 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 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
High Island, South Addition (Leasing Map TX7B)
    Portions of Blocks: A-502, A-513
Garden Banks (OPD NG15-02)
    Portions of Blocks: 134, 135

    * Leased.

[[Page 42043]]

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

    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. The Agreement (described 
below), negotiated between and signed by the United States and Mexico 
on February 20, 2012, received Congressional approval and the 
President's signature but required a further exchange of diplomatic 
notes to allow it to enter into force. The United States and Mexico 
exchanged diplomatic notes on May 19, 2014, indicating that the 
Agreement will enter into force on July 18, 2014. As such, whole and 
partial blocks in the 1.4-nautical mile buffer area will be offered for 
lease in WPA Sale 238.

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 States of 
America and the United Mexican States 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 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.
    Bidders should refer to Stipulation No. 5 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 WPA Sale 238).

Port Isabel (NG14-06) 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 (NG15-04) 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,* 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 (NG15-05) 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 (NG15-08) Blocks--11, 12, 13, 14, 15, 57, 58, 59, 
60, 61, 103, 104, 105, 106, 148, 149, 150, and 194.
South Padre Island (TX1) Blocks--1154, 1163, 1164, 1165, and 1166
South Padre Island, East Addition (TX1A) 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, 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 also is 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 the 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 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.
------------------------------------------------------------------------


[[Page 42044]]

    (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) Gulf of Mexico 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 
granted 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 has earned the 10-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 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-        Years 6, 7, and 8+
-------------------------------------5----------------------------------
0 to <200......................     $7.00  $14.00, $21.00, and $28.00
200 to <400....................     11.00  $22.00, $33.00, and $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 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 200 meters or deeper
Royalty Suspension Provisions
    The issuance of leases with royalty suspension volumes (RSVs) or 
other forms of royalty relief is authorized under existing BOEM 
regulations at 30 CFR part 560. The specific details relating to 
eligibility and implementation of the various royalty relief programs, 
including those involving the use of RSVs, are codified in BSEE 
regulations at 30 CFR part 203. In this sale, the only royalty relief 
program being offered, which involves the provision of RSVs, relates to 
the drilling of ultra-deep wells in water depths of less than 400 
meters, as described below.
Royalty Suspension Volumes on Gas Production From Ultra-Deep Wells
    A lease issued as a result of this sale may be eligible for RSV 
incentives on gas produced from ultra-deep wells pursuant to 30 CFR 
part 203. These regulations implement the requirements of the Energy 
Policy Act of 2005. Under this program, certain wells on leases in less 
than 400 meters of water depth completed to a drilling depth of 20,000 
feet TVD SS or deeper may receive an RSV of 35 billion cubic feet of 
natural gas. This RSV incentive is subject to applicable price 
thresholds set forth in the regulation at 30 CFR part 203.

IV. Lease Stipulations

    One or more of the following stipulations may be applied to leases

[[Page 42045]]

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 in the WPA
(3) Existing and Proposed Artificial Reefs/Rigs-to-Reefs
(4) Lightering Zones
(5) Indicated Hydrocarbons List
(6) Military Areas in the WPA
(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 in the WPA
(10) Notice of Arrival on the Outer Continental Shelf
(11) Bidder/Lessee Notice of 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-238. 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 entitled ``Final, 
Western Planning Area, Lease Sale 238, August 20, 2014, Lease Terms and 
Economic Conditions,'' which is 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 entitled ``Final, Western Planning Area, Lease Sale 
238, August 20, 2014, Stipulations and Deferred Blocks,'' which is 
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 and 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) is 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 238, not to be 
opened until 9 a.m. Wednesday, August 20, 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 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 238 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

    Prior to bidding, each bidder should 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. Both forms must 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)

    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 blocks bid on that did not use proprietary data;
    (2) The ``Table'' listing the required data about each proprietary 
survey used (see below); and

[[Page 42046]]

    (3) The ``Maps'' being the live trace maps for each survey that are 
identified in the GDIS statement and table.
    Every bidder submitting a bid on a block in WPA Sale 238, 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 a 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, and 
identify 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).
    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 
after the sale date. 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 name of the survey (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 availability of reimbursement of production costs will 
be determined consistent with 30 CFR 551.13. 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 WPA Sale 238 sale page at https://www.boem.gov/Sale-238/.
    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 WPA Sale 238 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). 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 
Invoice Processing Platform (IPP) for electronic invoicing. The person 
must enroll in the IPP at https://www.ipp.gov/. Access then will be 
granted to use the 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 bidders 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. The 
suggested format is included in the Final NOS Package. The 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 5, 2014, the most 
recent List of Restricted Joint Bidders at 79 FR 25615. 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

[[Page 42047]]

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. 
Bidders are advised that BOEM considers the signed bid to be a legally 
binding obligation on the part of the bidder(s) to comply with all 
applicable regulations, including payment of one-fifth of the bonus bid 
on all high bids. A statement to this effect must be included on each 
bid form (see the document ``Bid Form'' contained in this Final NOS 
Package).

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 BOEM 
qualification 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 approval 
of the BOEM Gulf of Mexico RD, or the RD's designee, of such requests, 
the RD or RD's designee will indicate approval by signing and dating 
the withdrawal request.

Bid Rounding

    The bonus bid amount must be stated in whole dollars. Minimum bonus 
bid calculations, including all rounding, for all blocks are shown in 
the document entitled ``List of Blocks Available for Leasing,'' which 
is included in the Final NOS Package. If the acreage of a block 
contains a decimal figure, then prior to calculating the minimum bonus 
bid, BOEM has 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.

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-238/ 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 238, following the detailed 
instructions contained on the ONRR Payment Information Web page at 
https://onrr.gov/ReportPay/payments.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: (1) 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; (2) the bid is the 
highest valid bid; and (3) the amount of the bid has been determined to 
be adequate by the authorized officer. Any bid submitted that does not 
conform to the requirements of 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 
antitrust 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, 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

[[Page 42048]]

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 orderly 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 14, 2014.
Walter D. Cruickshank,
Acting Director, Bureau of Ocean Energy Management.
[FR Doc. 2014-16962 Filed 7-17-14; 8:45 am]
BILLING CODE 4310-MR-P