Atlantic Wind Lease Sale 4A (ATLW-4A) Commercial Leasing for Wind Power on the Outer Continental Shelf Offshore Massachusetts-Proposed Sale Notice, 15618-15626 [2018-07379]

Agencies

• DEPARTMENT OF THE INTERIOR
• Bureau of Ocean Energy Management

[Federal Register Volume 83, Number 70 (Wednesday, April 11, 2018)]
[Notices]
[Pages 15618-15626]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-07379]



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DEPARTMENT OF THE INTERIOR

Bureau of Ocean Energy Management

[Docket No. BOEM-2018-0016]


Atlantic Wind Lease Sale 4A (ATLW-4A) Commercial Leasing for Wind 
Power on the Outer Continental Shelf Offshore Massachusetts--Proposed 
Sale Notice

AGENCY: Bureau of Ocean Energy Management, Interior.

ACTION: Proposed Sale Notice.

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SUMMARY: This document is the Proposed Sale Notice (PSN) for the sale 
of commercial wind energy leases on the Outer Continental Shelf (OCS) 
offshore Massachusetts, pursuant to the Bureau of Ocean Energy 
Management's (BOEM) regulations. BOEM proposes to offer for sale two 
leases: Lease OCS-A 0502 and Lease OCS-A 0503, which are the same Lease 
Areas (LA) that were unsold during the Atlantic Wind Lease Sale-4 
(ATLW-4) on January 29, 2015. In this PSN, you will find information 
pertaining to the areas available for leasing, proposed lease 
provisions and conditions, auction details, lease form, criteria for 
evaluating competing bids, award procedures, appeal procedures, and 
lease execution. BOEM invites public comment during a 60-day comment 
period following publication of this notice. The issuance of the 
proposed leases resulting from this sale would not constitute approval 
of project-specific plans to develop offshore wind energy. Such plans, 
expected to be submitted by the auction winner(s), would be subject to 
subsequent environmental and technical reviews prior to a decision by 
BOEM to approve development.

DATES: Comments should be submitted electronically or postmarked no 
later than June 11, 2018. All comments received or postmarked during 
the comment period will be made available to the public and considered 
prior to publication of the Final Sale Notice (FSN).
    Qualification materials must be postmarked no later than June 11, 
2018. Please refer to the ``Participation in the Proposed Lease Sale'' 
section for additional information on entity participation and 
qualification.

ADDRESSES: Potential auction participants, Federal, state, and local 
government agencies, tribal governments, and other interested parties 
are requested to submit their written comments on the PSN in one of the 
following ways:
    1. Electronically: https://www.regulations.gov. In the entry 
entitled, ``Enter Keyword or ID,'' enter BOEM-2018-0016 then click 
``search.'' Follow the instructions to submit public comments.
    2. Written Comments: In written form, delivered by hand or by mail, 
enclosed in an envelope labeled ``Comments on Massachusetts PSN'' to: 
Office of Renewable Energy Programs, Bureau of Ocean Energy Management, 
45600 Woodland Road, VAM-OREP, Sterling, Virginia 20166.
    3. Qualifications Materials: Those submitting qualifications 
materials for the first time, or previously qualified bidders 
reaffirming their interest in bidding on a lease offshore 
Massachusetts, should contact Jeff Browning, BOEM Office of Renewable 
Energy Programs, 45600 Woodland Road, VAM-OREP, Sterling, Virginia 
20166, (703) 787-1577, or [email protected]. If you wish to 
protect the confidentiality of your comments or qualification 
materials, clearly mark the relevant sections and request that BOEM 
treat them as confidential. Please label privileged or confidential 
information with the caption ``Contains Confidential Information'' and 
consider submitting such information as a separate attachment. 
Treatment of confidential information is addressed in the section of 
this PSN entitled, ``Protection of Privileged or Confidential 
Information.'' Information that is not labeled as privileged or 
confidential will be regarded by BOEM as suitable for public release.

FOR FURTHER INFORMATION CONTACT: Jeff Browning, BOEM Office of 
Renewable Energy Programs, 45600 Woodland Road, VAM-OREP, Sterling, 
Virginia 20166, (703) 787-1577 or [email protected].

SUPPLEMENTARY INFORMATION: 

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

Background

Area for Proposed Leasing

    The two LAs (OCS-A 0502 and OCS-A 0503) described for leasing in 
this PSN are the same LAs that were unsold in ATLW-4 on January 29, 
2015 (see Atlantic Wind Lease Sale 4 Final Sale Notice available at: 
https://www.boem.gov/MA-FSN/). Detailed information regarding the LAs 
is provided in the section entitled, ``Areas Offered for Leasing.''

Environmental Reviews

    On November 2, 2012, BOEM published a Notice of Availability (NOA) 
for the Commercial Wind Lease Issuance and Site Assessment Activities 
on the Atlantic Outer Continental Shelf (OCS) Offshore Massachusetts 
Environmental Assessment (EA) (77 FR 66185) with a 30-day public 
comment period. BOEM received 25 comments, which are available at: 
https://www.boem.gov/Renewable-Energy-Program/State-Activities/MA/Commercial-Wind-Leasing-Offshore-Massachusetts.aspx. Concurrently with 
its preparation of the EA, BOEM conducted consultation under the 
Endangered Species Act (ESA), the Magnuson-Stevens Fishery Conservation 
and Management Act (MSFCMA), and the Coastal Zone Management Act 
(CZMA). BOEM prepared and executed a programmatic agreement (PA) to 
guide its consultations under section 106 of the National Historic 
Preservation Act (NHPA). The PA provides for consultations to continue 
through BOEM's decision-making process regarding the approval, approval 
with modification, or disapproval of a lessee's Site Assessment Plan 
(SAP), and allows for phased identification and evaluation of historic 
properties.
    Based on the public comments received in response to the EA, the 
conclusion of required consultations, and public outreach and 
information meetings, BOEM made certain revisions to the November 2012 
EA. As a result of its analysis in the revised EA, BOEM issued a 
Finding of No Significant Impact (FONSI) on June 18, 2014 (79 FR 117). 
The Commercial Wind Lease Issuance and Site Assessment Activities on 
the Atlantic Outer Continental Shelf (OCS) Offshore Massachusetts 
Revised Environmental Assessment and the FONSI can be found at: https://www.boem.gov/Renewable-Energy-Program/State-Activities/MA/Commercial-Wind-Leasing-Offshore-Massachusetts.aspx.
    BOEM has evaluated the new information and changed circumstances 
since the FONSI was published, and has determined they would not result 
in significantly different environmental effects than those described 
in the June 2014 revised EA. The existing National Environmental Policy 
Act (NEPA) analyses and associated consultations adequately assess the 
reasonably foreseeable environmental effects of the issuance of 
commercial leases and associated site characterization activity in the 
Massachusetts Wind Energy Area (WEA), which includes the areas that

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BOEM proposes to lease in this notice. It is therefore unnecessary for 
BOEM to perform further NEPA analysis prior to issuing two additional 
commercial leases within the Massachusetts WEA.
    While there is no change to the EA's impact analysis for commercial 
and recreational fisheries, BOEM has elected to include a lease 
stipulation to ensure the Lessee would coordinate their activities with 
and communicate with commercial and recreational fishermen. Prior to 
the development of this lease stipulation, BOEM had been successful in 
using its review of survey plans and approval of SAPs to ensure that 
fisheries liaisons are identified and that lessees are communicating 
with potentially affected fishing groups. Nevertheless, BOEM included 
the same stipulation in the New York Lease (OCS-A 0512), and it has 
determined that this lease stipulation is also prudent for these 
proposed leases offshore Massachusetts given the importance of fishing 
to the economies of Southern New England states. The specific lease 
stipulation is as follows:
    Fisheries Communications Plan (FCP) and Fisheries Liaison. The 
Lessee must develop a publicly available FCP that describes the 
strategies that the Lessee intends to use for communicating with 
fisheries stakeholders prior to and during activities in support of the 
submission of a plan. The FCP must include the contact information for 
an individual retained by the Lessee as its primary point of contact 
with fisheries stakeholders (i.e., Fisheries Liaison).
    BOEM will conduct additional environmental reviews upon receipt of 
a lessee's proposed project-specific plans, such as a SAP or 
Construction and Operations Plan (COP).

Participation in the Proposed Lease Sale

    Entities wishing to participate in the proposed sale described in 
this notice must respond to BOEM during the 60-day comment period. 
Entities that qualified to participate in the first Massachusetts lease 
sale (ATLW-4) held on January 29, 2015, must: (1) Affirm their interest 
in acquiring LAs OCS-A 0502 and/or 0503; (2) notify BOEM of any adverse 
material changes to their financial and/or technical qualifications, 
including bankruptcies; and (3) provide any updates to their legal 
qualifications documentation on file with BOEM. Those companies are:

 Deepwater Wind New England, LLC
 EDF Renewable Development, Inc.
 Fishermen's Energy, LLC
 Green Sail Energy LLC
 Avangrid Renewables LLC (formerly IBERDROLA RENEWABLES, Inc.)
 NRG Bluewater Wind Massachusetts, LLC
 Vineyard Wind LLC (formerly Offshore MW LLC)
 RES America Developments Inc.
 Sea Breeze Energy LLC
 US Mainstream Renewable Power (Offshore) Inc.
 US Wind Inc.

    Entities that have filed qualification materials with BOEM to hold 
a lease offshore Massachusetts since the first Massachusetts lease sale 
(ATLW-4) held on January 29, 2015, do not need to re-file qualification 
materials. Those companies are:

 Statoil Wind US LLC
 PNE WIND USA, Inc.

    All other entities wishing to participate in the proposed 
Massachusetts lease sale that have not already been legally, 
financially, and technically qualified to hold a lease for commercial 
wind development offshore Massachusetts must submit the required 
qualification materials by the end of the 60-day comment period for 
this notice.

Areas of Particular Interest

    Stakeholders are encouraged to comment on any matters related to 
this lease sale that are of interest or concern to them. However, BOEM 
has identified certain issues as particularly important in developing 
this lease sale, and we encourage commenters to address these issues 
specifically.
     Multiple-Factor Auction Format: In this PSN, BOEM proposes 
a lease sale based on a multiple-factor bidding auction format, and a 
bidding system comprised of a multiple-factor combination of 
nonmonetary and monetary factors. In such a lease sale, bidders can 
qualify for nonmonetary credits that effectively offset a percentage of 
their monetary bids. Bidders that can demonstrate that they have 
executed a Community Benefits Agreement (CBA) meeting the criteria 
described below would be eligible for the credit. In other lease sales, 
BOEM has recognized credits for bidders who could demonstrate that they 
had executed a Joint Development Agreement (ATLW-1) or a Power Purchase 
Agreement (ATLW-1, 3, 4, and 5). BOEM welcomes comments regarding 
whether recognition of CBAs in this lease sale is appropriate, whether 
BOEM should recognize one or more other nonmonetary factors in this 
lease sale, and if so, which ones and why. BOEM also welcomes comments 
on the amount of any proposed credit, including the 5% credit proposed 
for CBAs.
     Cap on Nonmonetary Credits: BOEM is considering adding a 
maximum dollar amount cap on the worth of the nonmonetary credit. The 
cap amount would be identified in the Final Sale Notice. Such a cap 
would allow BOEM to limit the worth of a nonmonetary credit in BOEM's 
sale. Commenters are encouraged to address whether a cap is 
appropriate, and if so, for which type of credit and at what amount.
     Lease Area Delineation: In this PSN, BOEM has proposed LAs 
that constitute the portions of the Massachusetts WEA that went unsold 
in ATLW-4 in 2015. This choice reflects the fact that these areas have 
already undergone BOEM's rigorous environmental and spatial use 
analyses and been the subject of substantial public comment. 
Nonetheless, BOEM seeks comment on whether the division of the 
remaining portions of the WEA remains appropriate and, if not, what 
alternate divisions (potentially creating more than two LAs) would be 
more appropriate and why. BOEM also seeks comment on whether (and, if 
so, how) it should increase the number of leases offered and/or redraw 
boundaries between or among the leases.
     Addition of Buffer Requirement: One of the proposed LAs 
abuts another BOEM-issued renewable energy lease. Each lessee is 
entitled to the full enjoyment of its lease, free from unreasonable 
interference from other lessees' activities. BOEM is particularly 
concerned about the potential for interference in the form of lease 
``oversail'' (i.e., entry of wind turbine generator (WTG) blades into 
the airspace above an adjoining lease) or wake effects (i.e., a 
significant reduction in the wind resource entering a lease due to the 
close proximity of WTGs on an adjacent lease). To ensure fair and 
mutual enjoyment of adjacent leases, BOEM is considering imposing 
buffer requirements in its leases barring WTG construction within a 
certain distance of an adjacent lease. BOEM welcomes comment on (a) 
whether such a requirement is appropriate; (b) if so, what distance 
from the adjacent lease is reasonable; and (c) whether such a 
requirement, if appropriate, is best imposed at the leasing stage or a 
subsequent stage (such as plan approval).
    Deadlines and Milestones for Bidders: This section describes the 
major deadlines and milestones in the auction process from publication 
of this PSN to execution of leases pursuant to this proposed sale. This 
process is organized into five stages: (1) The PSN comment period; (2) 
from the end of PSN comment period to publication of the FSN; (3) the 
FSN waiting period; (4)

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conducting the auction; and (5) from the auction to Lease Execution.
    The PSN Comment Period:
     Submit Comments: The public is invited to submit comments 
during this 60-day period, which will expire on June 11, 2018.
     Public Seminar: BOEM will host a public seminar to discuss 
the lease sale process and the auction format. The time and place of 
the seminar will be announced by BOEM and published on the BOEM website 
at https://www.boem.gov/Massachusetts/. No registration or RSVP is 
required to attend.
     Submit Qualifications Materials: All qualifications 
materials must be received by BOEM by the end of the 60-day PSN comment 
period June 11, 2018. This includes materials sufficient to establish a 
company's legal, technical and financial qualifications pursuant to 30 
CFR 585.106 and 585.107.
    End of PSN Comment Period to FSN Publication:
     Review Comments: BOEM will review all comments submitted 
in response to the PSN during the comment period.
     Finalize Qualifications Reviews: Prior to the publication 
of the FSN, BOEM will complete any outstanding reviews of bidder 
qualifications materials submitted during the PSN comment period. The 
final list of eligible bidders will be published in the FSN.
     Prepare the FSN: BOEM will prepare the FSN by updating 
information contained in the PSN where appropriate.
     Publish FSN: BOEM will publish the FSN in the Federal 
Register.
    FSN Waiting Period: During this period, qualified bidders must take 
several steps to remain eligible to participate in the auction.
     Bidder's Financial Form (BFF): BOEM must receive each 
qualified bidder's completed and signed BFF no later than the date 
listed in the FSN. Typically, this deadline is approximately 14 
calendar days after publication of the FSN in the Federal Register. 
BOEM will consider extensions to this deadline only if BOEM determines 
that the failure to timely submit the BFF was caused by events beyond 
the bidder's control. Blank BFFs can be found at: https://www.boem.gov/Massachusetts/. Once the BFF has been processed, bidders may log into 
pay.gov and submit bid deposits (see next bullet). BOEM will only 
accept an originally executed paper copy of the BFF, and will not 
consider for this auction BFFs submitted for previous lease sales. The 
BFF must be executed by an authorized representative as shown on the 
bidder's legal qualifications. Each bidder is required to sign the 
self-certification in the BFF, in accordance with 18 U.S.C. 1001 (Fraud 
and False Statements).
     Bid Deposits: Each qualified bidder must submit a bid 
deposit of $450,000 no later than the date listed in the FSN. 
Typically, this deadline is approximately 30 calendar days after the 
publication of the FSN. BOEM will consider extensions to this deadline 
only if BOEM determines that the failure to timely submit the bid 
deposit was caused by events beyond the bidder's control.
     Nonmonetary Package: Each bidder must submit a nonmonetary 
package, if it is applying for a credit as described in the 
``Nonmonetary Auction Procedures'' section of this notice. The due date 
for submission of the nonmonetary package is normally the same as the 
bid deposit deadline, approximately 30 calendar days after the 
publication of the FSN.
     Mock Auction: BOEM will hold a Mock Auction that is open 
only to qualified bidders who have met the requirements and deadlines 
for auction participation, including submission of the bid deposit. 
Final details of the Mock Auction will be provided in the FSN.
     Review of Nonmonetary Packages: Shortly before the 
monetary auction, the Nonmonetary Panel (the Panel) will meet to 
consider nonmonetary packages. The panel will send determinations of 
eligibility for nonmonetary credits to BOEM, which will inform each 
bidder by email whether or not they have been awarded a credit for use 
during the lease sale. BOEM will not publicly disclose which bidders, 
if any, were awarded nonmonetary credits until after the lease sale.
    Conducting the Auction: BOEM, through its contractor, will hold an 
auction as described in the FSN. The auction will take place no sooner 
than 30 days following publication of the FSN in the Federal Register. 
The estimated timeframes described in this PSN assume the auction will 
take place approximately 45 days after publication of the FSN. Final 
dates will be included in the FSN.
     Monetary Auction: The monetary auction will be conducted 
on the date specified in the FSN.
     Announce Provisional Winners: BOEM will announce the 
provisional winners of the lease sale after the auction ends.
    From Auction to Lease Execution: There are several steps between 
the conclusion of the auction and execution of the lease.
     Reconvene the Panel: The Panel will reconvene to verify 
auction results.
     Bid Deposit Refund: BOEM will refund the bid deposit of 
any bidder that did not win a lease. BOEM will provide a written 
explanation of why the bidder did not win.
     Department of Justice (DOJ) Review: The DOJ has 30 days in 
which to conduct an antitrust review of the auction in consultation 
with the Federal Trade Commission, pursuant to 43 U.S.C. 1337(c).
     Delivery of Leases: BOEM will send three lease copies to 
each winner, with instructions on how to sign the leases. The first 
year's rent is due 45 days after the winner receives the lease copies 
for execution.
     Return the Leases: Within 10 business days of receiving 
the lease copies, the auction winners must post financial assurance, 
pay any outstanding balance of their bonus bids (i.e., winning monetary 
bid amount minus bid deposit and any applicable nonmonetary credit), 
and sign and return the three signed lease copies.
     Execution of Leases: Once BOEM has received the signed 
lease copies and verified that it has received all other required 
materials, BOEM will execute the leases if appropriate.
    Area Offered for Leasing: The areas described for leasing in this 
PSN are the same as the two unsold LAs in the ATLW-4: Lease OCS-A 0502 
and Lease OCS-A 0503. Lease OCS-A 0502 consists of 248,015 acres and 
Lease OCS-A 0503 consists of 140,554 acres. The total area is 
approximately 388,569 acres. A description of the LAs can be found in 
Addendum ``A'' of the proposed leases, which BOEM has made available 
with this notice on its website at: https://www.boem.gov/Renewable-Energy-Program/State-Activities/Massachusetts.aspx.

Map of the Area Offered for Leasing

    A map of the two proposed LAs and a table of the boundary 
coordinates in X, Y (eastings, northings) UTM Zone 18, NAD83 Datum and 
geographic X, Y (longitude, latitude), NAD83 Datum can be found at the 
following URL: https://www.boem.gov/Renewable-Energy-Program/State-Activities/Massachusetts.aspx.

Delineation of the Leasing Areas

    In this notice, BOEM proposes to auction the two LAs previously 
offered in ATLW-4 as lease numbers OCS-A 0502 and OCS-A 0503. Prior to 
that sale, BOEM commissioned the Department of Energy's National

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Renewable Energy Laboratory (NREL) to develop a methodology for 
delineation of the Massachusetts WEA into four non-overlapping LAs for 
BOEM, two of which were sold in that sale. The delineation report is 
available on BOEM's website at https://www.nrel.gov/docs/fy14osti/60942.pdf.
    Withdrawal of Blocks: Interested parties should note that BOEM 
reserves the right to withdraw portions of the LAs prior to its 
execution of a lease based upon comments received in response to this 
PSN and other relevant information provided to the Bureau.
    Financial Terms and Conditions: This section provides an overview 
of the annual payments required of a lessee that are described in the 
proposed leases, and the financial assurance requirements that will be 
associated with each lease if it is awarded.

Rent

    The first year's rent payment of $3 per acre for the entire LA is 
due within 45 days of the date the auction winner receives the lease 
for execution. Thereafter, annual rent payments are due on the 
anniversary of the Effective Date of the lease (i.e., the Lease 
Anniversary). Once commercial operations commence, rent will be charged 
on the remaining part of the lease not authorized for commercial 
operations, i.e., not generating electricity. However, instead of 
geographically dividing the LA into acreage that is ``generating'' and 
acreage that is ``non-generating,'' the fraction of the lease accruing 
rent is based on the fraction of the total nameplate capacity of the 
project that is not yet in operation. That fraction is calculated as 
the nameplate capacity (as defined herein) that is not yet authorized 
for commercial operations at the time payment is due, divided by the 
maximum nameplate capacity after full installation of the project, as 
defined in the COP. This fraction is then multiplied by the amount of 
rent that would be due for the Lessee's entire LA at the rental rate of 
$3 per acre, to obtain the annual rent due for a given year.
    For example, for a lease the size of 248,015 acres (the size of the 
LA OCS-A 0502), the amount of rent payment would be $744,045 per year 
if no portion of the leased area is authorized for commercial 
operations. If 500 megawatts (MW) of a project's nameplate capacity is 
operating (or authorized for operation), and its most recent approved 
COP specifies a maximum nameplate capacity of 1000 MW, the rent payment 
would be $372,023. For the above example, this would be calculated as 
follows: 500 MW/1000 MW x ($3/acre x 248,015 acres) = $372,023. BOEM 
requests comments on whether it would be appropriate to adjust the 
proposed annual rent to something other than $3 per acre.
    The Lessee also must pay rent for any project easement associated 
with the lease, commencing on the date that BOEM approves the COP (or 
COP modification) that describes the project easement. Annual rent for 
a project easement 200-feet wide and centered on the transmission cable 
is $70.00 per statute mile. For any additional acreage required, the 
Lessee must also pay the greater of $5.00 per acre per year or $450.00 
per year.

Operating Fee

    For the purposes of calculating the initial annual proposed 
operating fee payment, an operating fee rate is applied to a proxy for 
the wholesale market value of the electricity expected to be generated 
from the project during its first twelve months of operations. This 
initial payment is prorated to reflect the period between the 
commencement of commercial operations and the Lease Anniversary. The 
initial annual operating fee payment is due within 45 days of the 
commencement of commercial operations. Thereafter, subsequent annual 
operating fee payments are due on or before each Lease Anniversary. The 
subsequent annual operating fee payments are calculated by multiplying 
an operating fee rate by the imputed wholesale market value of the 
projected annual electric power production. For the purposes of this 
calculation, the imputed market value is the product of the project's 
annual nameplate capacity, the total number of hours in the year 
(8,760), a capacity factor, and the annual average price of electricity 
derived from a historical regional wholesale power price index. For 
example, an annual operating fee for a 100 MW wind facility operating 
at 40% capacity with a regional wholesale power price of $40/MWh under 
an operating fee rate of 0.02 (i.e., 2%) would be calculated as 
follows: 100 MW x 8,760 hours/year x 0.4 x $40/MWh power price x 0.02 = 
$280,320.
    Operating Fee Rate: BOEM is proposing a fixed operating fee rate of 
0.02 (i.e., 2%) during the project's entire life of commercial 
operations. BOEM requests comments on whether it would be appropriate 
to adjust this rate.
    Nameplate Capacity: Nameplate capacity is the maximum rated 
electric output, expressed in MW that the turbines of the wind facility 
under commercial operations can produce at their rated wind speed as 
designated by the turbine's manufacturer. The nameplate capacity at the 
start of each year of commercial operations on the lease will be 
specified in the COP. For example, if a Lessee has 20 turbines under 
commercial operations rated by the design manufacturer at 5 MW of 
output each, the nameplate capacity of the wind facility at the rated 
wind speed of the turbines would be 100 MW.
    Capacity Factor: The capacity factor relates to the amount of 
energy delivered to the grid during a period of time compared to the 
amount of energy the wind facility would have produced at full capacity 
during that same period of time. This factor is represented as a 
decimal between zero and one. There are several reasons why the amount 
of power delivered is less than the theoretical 100% of capacity. For a 
wind facility, the capacity factor is mostly determined by the 
availability of wind. Transmission line loss and down time for 
maintenance or other purposes also affect the capacity factor.
    The capacity factor for the year in which the Commercial Operation 
Date occurs, and for the first six full years of commercial operations 
on the lease, is set to 0.4 (i.e., 40%). At the end of the sixth year, 
the capacity factor may be adjusted to reflect the performance over the 
previous five years based upon the actual metered electricity 
generation at the delivery point to the electrical grid. Similar 
adjustments to the capacity factor may be made once every five years 
thereafter. The maximum change in the capacity factor from one period 
to the next will be limited to plus or minus 10 percent of the previous 
period's value.
    Wholesale Power Price Index: The wholesale power price, expressed 
in dollars per MW-hour, is determined at the time each annual operating 
fee payment is due, based on the weighted average of the inflation-
adjusted peak and off-peak spot price indices for the Northeast--
Massachusetts Hub power market for the most recent year of data 
available. The wholesale power price is adjusted for inflation from the 
year associated with the published spot price indices to the year in 
which the operating fee is to be due based on the Lease Anniversary, 
using annual implicit price deflators as reported by the U.S. 
Department of Commerce Bureau of Economic Analysis.

Financial Assurance

    Within 10 business days after receiving the lease copies, the 
provisional winner must provide an initial lease-specific bond or other 
approved means of meeting the Lessor's

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initial financial assurance requirements, in the amount of $100,000. 
BOEM will determine the amount of the SAP, COP, supplemental, and 
decommissioning financial assurance requirements on a case-by-case 
basis based on estimates of cost to meet all accrued lease obligations.
    The financial terms can be found in Addendum ``B'' of the proposed 
leases, which BOEM has made available with this notice on its website 
at: https://www.boem.gov/Renewable-Energy-Program/State-Activities/Massachusetts.aspx.
    Place and Time: The auction will be held online. The time that the 
auction will be held will be published in the FSN. The date has not 
been finalized, but will be no earlier than 30 days after publication 
of the FSN in the Federal Register.
    Public Seminar: BOEM will host a public seminar to review the 
auction format, explain the auction rules, and demonstrate the auction 
process with potential bidders and other stakeholders. BOEM will 
announce the time and place of the seminar and published it on the BOEM 
website. No registration or RSVP will be required to attend.
    Mock Auction: BOEM will host a Mock Auction to educate qualified 
bidders about the procedures to be employed during the auction and to 
answer questions. The Mock Auction will take place between the 
publication of the FSN in the Federal Register and the date of the 
auction. Following publication of the FSN in the Federal Register, 
details of the Mock Auction will be distributed to those eligible to 
participate in the auction. All qualified bidders who intend to 
participate in the auction are strongly encouraged to participate in 
the Mock Auction. Bidders will be eligible to participate in the Mock 
Auction if they have been legally, technically and financially 
qualified to participate in the lease sale, and have submitted their 
bid deposit as described below.
    Bid Deposit: A bid deposit is an advance cash deposit submitted to 
BOEM in order to participate in the auction. No later than the deadline 
provided in the FSN, each bidder must have submitted a bid deposit of 
$450,000. Any bidder that fails to submit the bid deposit by the 
deadline described in the FSN may be disqualified from participating in 
the auction. Bid deposits will be accepted online via pay.gov. 
Following publication of the FSN, each bidder must fill out the BFF 
included in the FSN. BOEM has made a copy of the proposed BFF available 
with this notice on its website at: https://www.boem.gov/Renewable-Energy-Program/State-Activities/Massachusetts.aspx. This form requests 
that each bidder designate an email address, which the bidder should 
use to create an account in pay.gov. After establishing the pay.gov 
account, bidders may use the Bid Deposit Form on the pay.gov website to 
leave a deposit.
    Following the auction, BOEM will apply bid deposits against any 
bonus bids or other obligations owed to BOEM. If the bid deposit 
exceeds a bidder's total financial obligation, BOEM will refund the 
balance of the bid deposit to the bidder. BOEM will fully refund bid 
deposits to unsuccessful bidders.
    Minimum Bid: BOEM proposes for this lease sale a minimum bid of $2 
per acre for each LA. Therefore, the minimum acceptable bid will be 
$496,030 for Lease OCS-A 0502, and $281,108 for Lease OCS-A 0503.
    Lease Terms and Conditions: The proposed OCS commercial wind leases 
contain lease terms, conditions, and stipulations. BOEM reserves the 
right to add additional terms and conditions to any approval of a SAP 
and/or COP. The proposed leases, including Addendum ``C,'' are 
available on BOEM's website at: https://www.boem.gov/Renewable-Energy-Program/State-Activities/Massachusetts.aspx. Each proposed lease 
includes the following seven attachments:
     Addendum ``A'' (Description of Leased Area and Lease 
Activities);
     Addendum ``B'' (Lease Term and Financial Schedule);
     Addendum ``C'' (Lease Specific Terms, Conditions, and 
Stipulations);
     Addendum ``D'' (Project Easement);
     Addendum ``E'' (Rent Schedule);
     Appendix A to Addendum ``C'': (Incident Report: Protected 
Species Injury or Mortality); and
     Appendix B to Addendum ``C'': (Required Data Elements for 
Protected Species Observer Reports).
    Addenda ``A,'' ``B,'' and ``C'' provide detailed descriptions of 
lease terms and conditions. Addenda ``D'' and ``E'' will be completed 
at the time of COP approval.
    After considering comments on the PSN and proposed leases, BOEM 
will publish final lease terms and conditions in the FSN.

Required Plans for Potential Development of Executed Leases

    Pursuant to 30 CFR 585.601, the leaseholder must submit a SAP 
within 12 months of lease issuance. If the leaseholder intends to 
continue its commercial lease with an operations term, the leaseholder 
must submit a COP at least 6 months before the end of the site 
assessment term.
    Qualifications--Who May Bid: As stated above, within the 60-day 
comment period for this PSN, entities that were qualified to bid in the 
January 29, 2015, Massachusetts lease sale (ATLW-4) must affirm their 
interest in bidding in this lease sale (ATLW-4a), notify BOEM of any 
adverse material changes to their financial and/or technical 
qualifications, including bankruptcies, and provide any updates to your 
legal qualifications card. Entities that have been qualified due to 
submission of unsolicited lease requests in the area since ATLW-4 do 
not need to resubmit qualifications materials. All other entities 
wishing to bid in this lease sale must submit a complete set of 
qualifications materials by the end of the 60-day comment period of 
this PSN. To be eligible to participate in the auction, each potential 
bidder must be found by BOEM to be legally, technically and financially 
qualified under BOEM's regulations at 30 CFR 585.106-107 by the time 
the FSN for this sale is published. Please note that technical and 
financial qualifications are lease-specific; it is not sufficient to 
have been technically and financially qualified to participate in a 
prior lease sale.
    Guidelines on BOEM's qualifications requirements can be found at: 
https://www.boem.gov/Renewable-Energy-Program/Regulatory-Information/QualificationGuidelines-pdf.aspx. You must provide any qualifications 
documentation in both paper and electronic formats. BOEM considers an 
Adobe PDF file stored on a storage media device to be an acceptable 
format for submitting an electronic copy.
    Because it may take several weeks for BOEM to assess a potential 
bidder's legal, technical, and financial qualifications, BOEM advises 
potential bidders who plan to participate in a sale to submit their 
qualifications materials promptly. It is not uncommon for BOEM to 
request additional materials establishing qualifications following an 
initial review of the qualifications package. BOEM cannot determine a 
potential bidder to be qualified without a complete qualification 
package. Potential bidders whom BOEM has not qualified before 
publication of the FSN will not be allowed to participate in the 
proposed sale.

Auction Procedures

Multiple-Factor Bidding

    As authorized under 30 CFR 585.220(a)(4) and 585.221(a)(6), BOEM 
proposes that this sale employ a

[[Page 15623]]

multiple-factor auction format with a multiple-factor bidding system. 
Each bidder may bid on only one LA at a time, and can win at most one 
of the two LAs offered in this sale. BOEM proposes to balance 
consideration of two variables in determining the outcome of this 
auction: (1) A cash bid, and (2) a nonmonetary credit for bidders that 
have entered into a CBA as described below.
5% Nonmonetary Credit for Community Benefits Agreements
    BOEM proposes to offer a 5% nonmonetary credit in this lease sale 
for bidders who have executed one or more CBAs meeting the criteria 
established in the FSN and proposed below. If a bidder is found to be 
eligible for a nonmonetary credit, the credit would be 5% of the asking 
price. The cash bid would make up that portion of the bid not covered 
by the nonmonetary credit. Summed together, these two variables 
comprise the ``As-Bid'' price. The effect of possessing a nonmonetary 
credit of 5% would be to receive a 5% discount on the asking price.
    BOEM must receive a bidder's nonmonetary package no later than the 
due date listed in the FSN, containing a copy of the executed CBA and 
any additional explanation of the contents and purported benefits of 
the agreement that the bidder believes would be helpful for BOEM. The 
submitting bidder may designate confidential business information in 
its submittal pursuant to process described below.
    A BOEM-designated panel will evaluate bidders' nonmonetary packages 
to determine whether each bidder is eligible for a nonmonetary credit 
applicable to the asking price in each round of the auction. It is 
possible that multiple or all bidders could qualify for nonmonetary 
credits. Bidders will be informed by email before the monetary auction 
whether they have been deemed eligible for a nonmonetary credit. BOEM 
will not disclose until after the lease sale which other bidders, if 
any, were determined to be eligible for a nonmonetary credit.
    Community Benefits Agreement (CBA). In order for a nonmonetary 
package to qualify for a 5% credit in this auction, the BOEM-appointed 
panel must answer ``yes'' to the following questions regarding the CBA:
    1. Is there a legally binding contract?
    2. Is the contract between the bidder and one or more community-
based organizations (CBO)?
    3. Has the bidder committed to provide specified community 
benefits?
    4. Has the CBO committed in specific ways to support the project in 
the governmental approval process?
    A community-based organization (CBO) is defined as: A legally 
incorporated organization whose membership includes residents or 
property owners of a community within the potentially affected region, 
the local government of the community, or an entity created or managed 
by the local government(s) of the community or communities.
Monetary Auction Procedures
    Using an online bidding system to host the auction, BOEM will start 
the bidding for lease OCS-A 0502 at $496,030, and for lease OCS-A 0503 
at $281,108. BOEM will increase those prices incrementally until only 
one active bidder remains in the auction for each LA. BOEM proposes 
that no bidder in the auction be permitted to win both LAs.
    The auction will be conducted in a series of rounds. At the start 
of each round, BOEM will state an asking price for each LA. If a bidder 
is willing to meet the asking price for one of the LAs, it will 
indicate its intent by submitting a bid equal to the asking price. A 
bid at the full asking price is referred to in this notice as a ``live 
bid.'' To participate in the next round of the auction, a bidder must 
submit a live bid for one of the LAs in each previous round. As long as 
there are two or more live bids for at least one LA, the auction moves 
to the next round. BOEM will raise the asking price for each LA by an 
increment determined by BOEM. Asking price increments will be 
determined based on a number of factors, including (but not necessarily 
limited to) the expected time needed to conduct the auction, and the 
number of rounds that have already occurred. BOEM reserves the right to 
increase or decrease bidding increments as appropriate.
    A bidder may switch its live bid from one LA to the other in the 
current round only if its bid from the previous round was contested--
e.g., a bidder cannot switch from OCS-A 0502 to OCS-A 0503 unless there 
was at least one other bid for OCS-A 0502 in the last round. If the bid 
was not contested in the previous round, the bidder cannot switch LAs, 
and its previous round bid will be carried forward to the next round. 
If another bidder places a live bid on OCS-A 0502 later in the auction, 
BOEM will stop automatically carrying forward the previously 
uncontested bid on that LA. The bidder that placed the previously 
carried forward bid is then free to bid on either LA in the next round 
at the new asking prices. A bidder remains eligible to participate in 
the auction if it has submitted a live bid in the prior round, or has a 
previously uncontested live bid carried forward by BOEM to the current 
round. As discussed below, if a bidder decides to stop bidding further 
when its bid is contested, there are still circumstances in which the 
bidder could win (e.g., if the winning bid is disqualified at the award 
stage of the auction). If this happens, the bidder may be bound by its 
bid and thus obligated to pay the full bid amount
    Between rounds, BOEM would disclose to all bidders who submitted 
bids in the first round of the auction: (1) The number of live bids for 
each LA in the previous round of the auction (i.e., the level of 
demand); and (2) the asking price for each LA in the upcoming round of 
the auction.
    A bidder is only eligible to continue bidding in the auction if it 
has submitted a live bid in the previous round. In any round after the 
first round, however, a bidder may submit an ``exit bid,'' also known 
as an ``intra-round bid.'' An exit bid is a bid that is higher than the 
previous round's asking price, submitted for the sale LA as the 
bidder's contested live bid in the previous round, but less than the 
current round's asking price. An exit bid is not a live bid, and it 
represents the final bid that a bidder may submit in the auction. 
During the auction, the exit bid can only be seen by BOEM, and not by 
other bidders.
    A LA with only exit bids in a given round will not have its asking 
price raised in the next round. As soon as both LAs have one or zero 
live bids, the auction is over, regardless of the number of exit bids 
on each area.
    After the bidding ends, BOEM would determine the provisionally 
winning bids for each LA. The provisionally winning bid for a LA would 
be the highest bid (live bid or exit bid) received for that LA, except 
that no bidder may win both LAs. Regardless of whether a provisionally 
winning bid is a live bid or an exit bid, BOEM would apply any 
nonmonetary credits in the same way. The award procedures described 
here could result in a tie, for example if two bidders submit identical 
high exit bids, or prior round live bids for the same LA. In such 
cases, BOEM would resolve the tie by randomized means. If the 
procedures described herein would result in the award of both LAs to 
the same bidder, BOEM would accept only the most recent bid submitted 
by that bidder and would award the other LA to the next highest bidder.

[[Page 15624]]

    Provisional winners may be disqualified if they are subsequently 
found to have violated auction rules or otherwise engaged in conduct 
detrimental to the integrity of the competitive auction. If a bidder 
submits a bid that BOEM determines to be a provisionally winning bid, 
the bidder would be expected to sign the applicable lease documents, 
establish financial assurance, and submit the cash balance of its bid 
(i.e., winning bid amount minus the bid deposit and any applicable 
nonmonetary credit) within 10 business days of receiving the lease 
copies, pursuant to 30 CFR 585.224. BOEM reserves the right not to 
issue the lease to the provisionally winning bidder if that bidder 
fails to timely sign and pay for the lease or otherwise comply with 
applicable regulations or the terms of the FSN. In that case, the 
bidder would forfeit its bid deposit. BOEM may consider failure of a 
bidder to timely pay the full amount due an indication that the bidder 
may no longer be financially qualified to participate in other lease 
sales under BOEM's regulations at 30 CFR 585.106 and 585.107.

Additional Information Regarding the Auction Format

Bidder Authentication
    Prior to the auction, the Auction Manager will send several bidder 
authentication packages to each bidder shortly after BOEM has processed 
the BFFs. One package will contain tokens for each authorized 
individual. Tokens are digital authentication devices. The tokens will 
be mailed to the Primary Point of Contact indicated on the BFF. This 
individual is responsible for distributing the tokens to the 
individuals authorized to bid for that company. For bidders with 
authorized individuals in more than one country, tokens may be sent 
directly to authorized individuals rather than to the Primary Point of 
Contact. Bidders are to ensure that each token is returned within three 
business days following the auction. An addressed, stamped envelope 
will be provided to facilitate this process. In the event that a bidder 
fails to submit a BFF or a bid deposit, or does not participate in the 
auction, BOEM will de-activate that bidder's token and login 
information, and the bidder will be asked to return its tokens.
    The second package will contain login credentials for authorized 
bidders. The login credentials will be mailed to the address provided 
in the BFF for each authorized individual. Bidders can confirm these 
addresses by calling (703) 787-1300. This package will contain user 
login information and instructions for accessing the Auction System 
Technical Supplement and Alternative Bidding Form. The login 
information, along with the tokens, will be tested during the Mock 
Auction.
Monetary Auction Times
    BOEM will provide specific information regarding when the bidders 
can enter the auction system and the auction start time in the FSN. 
Additional information will be made available in an Auction System 
Technical Supplement, which will be posted on BOEM's website prior to 
the auction.
    BOEM and the auction contractors will use the auction platform 
messaging service to keep bidders informed on issues of interest during 
the auction. For example, BOEM may change the schedule at any time, 
including during the auction. If BOEM changes the schedule during the 
auction, it will use the messaging feature to notify bidders that a 
revision has been made and direct bidders to the relevant page. BOEM 
will also use the messaging system for other changes and items of 
particular note during the auction. The auction schedule and asking 
price increments are in BOEM's discretion, and are subject to change at 
any time before or during the auction.
    During the auction, bidders may place bids at any time during the 
round. At the top of the bidding page, a countdown clock will show how 
much time remains in the round. Bidders have until the scheduled time 
to place bids. Bidders should place bids according to the procedures 
described in the Auction System Technical Supplement, and as practiced 
at the Mock Auction. No information about the round is available until 
the round has closed and results have been posted, so there should be 
no strategic advantage to placing bids early or late in the round.
Prohibition on Communications Among Bidders During Auction
    During the auction, bidders are prohibited from communicating with 
each other regarding their participation in the auction. Additionally, 
during the auction, bidders are prohibited from communicating to the 
general public regarding any aspect of their participation or lack 
thereof in the auction, including, but not limited to, through social 
media, updated websites, or press releases. Federal antitrust law may 
impose further restrictions on communications between bidders above and 
beyond the restrictions described in this section.
Alternate Bidding Procedures
    Alternate Bidding Procedures enable a bidder who is having 
difficulties accessing the internet to submit its bid via fax using an 
Alternate Bidding Form available on BOEM's website at: https://www.boem.gov/Massachusetts/.
    In order to be authorized to use an Alternative Bidding Form, a 
bidder must call the help desk number listed in the Auction Manual 
before the end of the round. BOEM will authenticate the caller to 
ensure he/she is authorized to bid on behalf of the company. The bidder 
must explain the reasons for which he/she cannot place a bid using the 
online bidding platform. BOEM may, in its sole discretion, permit or 
refuse to accept a request for the placement of a bid using the 
Alternate Bidding Procedures. If bidders need to submit an Alternate 
Bidding Form, they are strongly encouraged to do so before the round 
ends.
    Rejection or Non-Acceptance of Bids: BOEM reserves the right and 
authority to reject any and all bids that do not satisfy the 
requirements and rules of the proposed auction, the FSN, or applicable 
regulations and statutes.

Process for Issuing the Leases

    Once all post-auction reviews have been completed to BOEM's 
satisfaction, BOEM will issue three unsigned copies of the lease to the 
provisionally winning bidder. Within 10 business days after receiving 
the lease copies, the provisionally winning bidder must:
    1. Sign the lease on the bidder's behalf;
    2. File financial assurance, as required under 30 CFR 585.515 
through 585.537; and
    3. Pay by electronic funds transfer (EFT) the balance (if any) of 
the bonus bid (winning bid less the bid deposit). BOEM requires bidders 
to use EFT procedures (not pay.gov, the website bidders used to submit 
bid deposits) for payment of the balance of the bonus bid, following 
the detailed instructions contained in the ``Instructions for Making 
Electronic Payments'' available on BOEM's website at: https://www.boem.gov/Renewable-Energy-Program/State-Activities/Massachusetts.aspx.
    BOEM will not execute a lease until the three requirements above 
have been satisfied, BOEM has accepted the provisionally winning 
bidder's financial assurance pursuant to 30 CFR 585.515, and BOEM has 
processed the provisionally winning bidder's payment.
    If BOEM determines the delay was caused by events beyond the 
provisional

[[Page 15625]]

winning bidder's control, BOEM may extend the ten business day deadline 
for executing the lease on the bidder's behalf, filing the required 
financial assurance, and/or paying the balance of the bonus bid.
    If the provisionally winning bidder does not meet these 
requirements or otherwise fails to comply with applicable regulations 
or the terms of the FSN, BOEM reserves the right to not issue the lease 
to that bidder. In such a case, the provisionally winning bidder will 
forfeit its bid deposit.
    Within 45 days of the date that the provisionally winning bidder 
receives copies of the lease, it must pay the first year's rent using 
the pay.gov Renewable Energy Initial Rental Payment form, available at: 
https://pay.gov/paygov/forms/formInstance.html?agencyFormId=27797604. 
Subsequent annual rent payments must be made following the detailed 
instructions contained in the ``Instructions for Making Electronic 
Payments,'' available on BOEM's website at: https://www.boem.gov/Renewable-Energy-Program/State-Activities/Massachusetts.aspx.
    Anti-Competitive Behavior: In addition to the auction rules 
described in this notice, bidding behavior is governed by Federal 
antitrust laws designed to prevent anticompetitive behavior in the 
marketplace. Compliance with BOEM's auction procedures will not 
insulate a party from enforcement of antitrust laws.
    Accordingly, following the auction, and before the acceptance of 
bids and the issuance of leases, BOEM will ``allow the Attorney 
General, in consultation with the Federal Trade Commission, thirty days 
to review the results of the lease sale.'' 43 U.S.C. 1337(c). If a 
bidder is found to have engaged in anti-competitive behavior or 
otherwise violated BOEM's rules in connection with its participation in 
the competitive bidding process, BOEM may reject the high bid.
    Anti-competitive practices may include, but are not limited to:
     An agreement, either express or tacit, among bidders to 
not bid in an auction, or to bid a particular price;
     An agreement among bidders not to bid for a particular LA;
     An agreement among bidders not to bid against each other; 
and
     Other agreements among bidders that may affect the final 
auction price.
    BOEM may decline to award a lease if, pursuant to the OCS Lands Act 
(43 U.S.C. 1337(c)), it is determined by the Attorney General in 
consultation with the Federal Trade Commission that doing so would be 
inconsistent with antitrust laws.
    For more information on whether specific communications or 
agreements could constitute a violation of Federal antitrust law, 
please see: https://www.justice.gov/atr/public/business-resources.html, 
or consult counsel.
    Bidder's Financial Form Certification: Each bidder is required to 
sign the self-certification, in accordance with 18 U.S.C. 1001 (Fraud 
and False Statements) in the Bidder's Financial Form, which can be 
found on BOEM's website at: https://www.boem.gov/Renewable-Energy-Program/State-Activities/Massachusetts.aspx. The form must be filled 
out and returned to BOEM in accordance with the ``Deadlines and 
Milestones for Bidders'' section of this notice.
    Non-Procurement Debarment and Suspension Regulations: Pursuant to 
regulations at 43 CFR part 42, subpart C, an OCS renewable energy 
Lessee must comply with the U.S. Department of the Interior's non-
procurement debarment and suspension regulations at 2 CFR parts 180 and 
1400 and agree to communicate the requirement to comply with these 
regulations to persons with whom the Lessee does business as it relates 
to this lease by including this term as a condition in their contracts 
and other transactions.
    Final Sale Notice: BOEM will consider comments received or 
postmarked during the PSN comment period in preparing a FSN that will 
provide the final details concerning the offering and issuance of OCS 
commercial wind energy leases in the Massachusetts WEA. The FSN will be 
published in the Federal Register at least 30 days before the lease 
sale is conducted and will provide the date and time of the auction.
    Force Majeure: The Program Manager of BOEM's Office of Renewable 
Energy Programs has the discretion to change any date, time, and/or 
location specified in the FSN in case of a force majeure event that the 
Program Manager deems may interfere with a fair and proper lease sale 
process. Such events may include, but are not limited to, natural 
disasters (e.g., earthquakes, hurricanes, floods), wars, riots, acts of 
terrorism, fire, strikes, civil disorder, or other events of a similar 
nature. In case of such events, bidders should call (703) 787-1300 or 
access the BOEM website at: https://www.boem.gov/Renewable-Energy-Program/index.aspx.
    Appeals: The appeals procedures are provided in BOEM's regulations 
at 30 CFR 585.225 and 585.118(c). Pursuant to 30 CFR 585.225,
     If BOEM rejects your bid, BOEM will provide a written 
statement of the reasons and refund any money deposited with your bid, 
without interest.
     You will then be able to ask the BOEM Director for 
reconsideration, in writing, within 15 business days of bid rejection, 
under 30 CFR 585.118(c)(1). BOEM will send you a written response 
either affirming or reversing the rejection.
    The procedures for appealing final decisions with respect to lease 
sales are described in 30 CFR 585.118(c).

Personal Identifying Information

    BOEM does not consider anonymous comments: Please include your name 
and address as part of your submittal. You should be aware that your 
entire comment, including your name, address, and your personal 
identifying information (PII), may be made publicly available at any 
time. All submissions from identified individuals, businesses and 
organizations will be available for public viewing on regulations.gov.
    In order for BOEM to withhold from disclosure your PII, you must 
identify any information contained in the submittal of your comments 
that, if released, would constitute a clearly unwarranted invasion of 
your personal privacy. You must also briefly describe any possible 
harmful consequence(s) of the disclosure of information, such as 
embarrassment, injury or other harm.

Protection of Privileged or Confidential Information

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

[[Page 15626]]

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

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

    Dated: April 5, 2018.
Walter D. Cruickshank,
Acting Director, Bureau of Ocean Energy Management.
[FR Doc. 2018-07379 Filed 4-10-18; 8:45 am]
 BILLING CODE 4310-MR-P