Gulf of Mexico Outer Continental Shelf Region-Wide Oil and Gas Lease Sale 253, 34937-34943 [2019-15330]

Agencies

• DEPARTMENT OF THE INTERIOR
• Bureau of Ocean Energy Management

[Federal Register Volume 84, Number 139 (Friday, July 19, 2019)]
[Notices]
[Pages 34937-34943]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-15330]


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DEPARTMENT OF THE INTERIOR

Bureau of Ocean Energy Management

[Docket No. BOEM-2019-0046]


Gulf of Mexico Outer Continental Shelf Region-Wide Oil and Gas 
Lease Sale 253

AGENCY: Bureau of Ocean Energy Management, Interior.

ACTION: Final notice of sale.

-----------------------------------------------------------------------

SUMMARY: On Wednesday, August 21, 2019, the Bureau of Ocean Energy 
Management (BOEM) will open and publicly announce bids received for 
blocks offered in the Gulf of Mexico (GOM) Outer Continental Shelf 
(OCS) Region-wide Oil and Gas Lease Sale 253 (GOM Region-wide Sale 
253), in accordance with the provisions of the Outer Continental Shelf 
Lands Act (OCSLA), and the implementing regulations issued pursuant 
thereto. The GOM Region-wide Sale 253 Final Notice of Sale (NOS) 
package contains information essential to potential bidders.

DATES: BOEM will hold GOM Region-wide Sale 253 at 9:00 a.m. on 
Wednesday, August 21, 2019. All times referred to in this document are 
Central time, 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 prior to the sale, or 
from 8:00 a.m. to the Bid Submission Deadline of 10:00 a.m. on Tuesday, 
August 20, 2019, the day before the lease sale. For more information on 
bid submission, see Section VII, ``Bidding Instructions,'' of this 
document.

ADDRESSES: Bids will be accepted prior to the bid submission deadline 
at 1201 Elmwood Park Boulevard, New Orleans, Louisiana. Public bid 
reading for GOM Region-wide Sale 253 will be held at 1201 Elmwood Park 
Boulevard, New Orleans, Louisiana, but the venue will not be open to 
the general public, media, or industry during bid opening or reading. 
Bid opening will be available for public viewing on BOEM's website at 
www.boem.gov/Sale-253 via live-streaming video beginning at 9:00 a.m. 
on the date of the sale. BOEM will also post the results on its website 
after bid opening and reading are completed. Interested parties may 
download the Final NOS package from BOEM's website at https://www.boem.gov/Sale-253/. Copies of the sale maps may be obtained by 
contacting the BOEM GOM Region: 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.

FOR FURTHER INFORMATION CONTACT: Susan Erin O'Reilly Vaughan, Chief, 
Leasing and Financial Responsibility, Office of Leasing and Plans, 504-
736-1759, Erin.O'[email protected] or Wright Jay Frank, Chief, Leasing 
Policy and Management Division, 703-787-1325, [email protected].

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: BOEM will offer for bid in this lease 
sale all of the available unleased acreage in the GOM, except those 
blocks listed in ``Blocks Not Offered for Leasing'' below.
    Blocks Not Offered for Leasing: The following whole and partial 
blocks are not offered for lease in this sale. The BOEM Official 
Protraction Diagrams (OPDs) and Supplemental Official Block Diagrams 
are available online at https://www.boem.gov/Maps-and-GIS-Data/.
     Whole and partial blocks that lie within the current 
boundaries of the Flower Garden Banks National Marine Sanctuary (in the 
East and West Flower Garden Banks and the Stetson Bank), identified in 
the following list:

High Island, East Addition, South Extension (Leasing Map TX7C)

Whole Block: A-398
Partial 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)

Partial Blocks: A-502, A-513

Garden Banks (OPD NG15-02)

Partial Blocks: 134, 135

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

Lund South (OPD NG 16-07)

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

Henderson (OPD NG 16-05)

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

Florida Plain (OPD NG 16-08)

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

     All whole and portions of blocks deferred by the Gulf of 
Mexico Energy Security Act of 2006, Public Law 109-432:

[[Page 34938]]

Pensacola (OPD NH 16-05)

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

Destin Dome (OPD NH 16-08)

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

DeSoto Canyon (OPD NH 16-11)

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

Henderson (OPD NG 16-05)

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

     Depth restricted, segregated block portion(s):
    Block 299, Main Pass Area, South and East Addition (as shown on 
Louisiana Leasing Map LA10A), containing 1,125 acres, from the surface 
of the earth down to a subsea depth of 1,900 feet with respect to the 
following described portions:
    SW\1/4\NE\1/4\; NW\1/4\SE\1/4\NE\1/4\; W\1/2\NE\1/4\SE\1/4\NE\1/4\; 
S\1/2\S\1/2\NW\1/4\NE\1/4\; S\1/2\SW\1/4\NE\1/4\NE\1/4\; S\1/2\SW\1/
4\SE\1/4\NE\1/4\NE\1/4\; N\1/2\SW\1/4\SE\1/4\ NE\1/4\; SW\1/4\SW\1/
4\SE\1/4\NE\1/4\; NW\1/4\SE\1/4\ SE\1/4\ NE\1/4\; N\1/2\NW\1/4\SW\1/
4\SE\1/4\SE\1/4\NE\1/4\; N\1/2\SE\1/4\SW\1/4\SE\1/4\NE\1/4\; N\1/2\S\1/
2\SE\1/4\SW\1/4\SE\1/4\NE\1/4\; S\1/2\NE\1/4\NW\1/4\; S\1/2\S\1/2\N\1/
2\NE\1/4\NW\1/4\; N\1/2\SE\1/4\NW\1/4\;S\1/2\SE\1/4\NW\1/4\NW\1/4\; 
NE\1/4\SE\1/4\ NW\1/4\NW\1/4\; E\1/2\NE\1/4\SW\1/4\NW\1/4\; N\1/2\SE\1/
4\SE\1/4\NW\1/4\; NE\1/4\SW\1/4\SE\1/4\NW\1/4\; N\1/2\NW\1/4\SW\1/
4\SE\1/4\NW\1/4\; SE\1/4\SE\1/4\SE\1/4\NW\1/4\; E\1/2\SW\1/4\SE\1/
4\SE\1/4\NW\1/4\; N\1/2\NW\1/4\NE\1/4\SW\1/4\NW\1/4\; N\1/2\S\1/2\NW\1/
4\NE\1/4\SW\1/4\NW\1/4\; N\1/2\N\1/2\NE\1/4\NE\1/4\NE\1/4\SW\1/4\; N\1/
2\N\1/2\N\1/2\NW\1/4\NW\1/4\SE\1/4\; N\1/2\N\1/2\NW\1/4\NE\1/4\NW\1/
4\SE\1/4.\
     The following blocks, whose lease status is currently 
under appeal:

Keathley Canyon (Official Protraction Diagram NG15-05) Blocks 246, 247, 
290, 291, 292, 335 and 336
Vermilion Area (Leasing Map LA3) Partial Block 179
Atwater Valley (Official Protraction Diagram NG16-01) Block 63

     Whole or partial blocks that have received bids in 
previous sales, where the bidder has sought reconsideration of BOEM's 
rejection of their bid are not offered in this sale, unless the 
reconsideration request is fully resolved at least 30 days prior to 
publication of this Final Notice of Sale.
    The list of blocks available can be found under the lease sale 253 
link at www.boem.gov/GOMR-Historical-Lease-Sale-Information/ within the 
Final Notice of Sale tab.

II. Statutes and Regulations

    Each lease is issued pursuant to OCSLA, 43 U.S.C. 1331-1356, as 
amended, and is subject to OCSLA implementing regulations promulgated 
pursuant thereto in 30 CFR part 556, and other applicable statutes and 
regulations in existence upon the effective date of the lease, as well 
as those applicable statutes enacted and regulations promulgated 
thereafter, except to the extent that the after-enacted statutes and 
regulations explicitly conflict with an express provision of the lease. 
Each lease is also subject to amendments to statutes and regulations, 
including but not limited to OCSLA, that do not explicitly conflict 
with an express provision of the lease. The lessee expressly bears the 
risk that such new or amended statutes and regulations (i.e., those 
that do not explicitly conflict with an express provision of the lease) 
may increase or decrease the lessee's obligations under the lease.

III. Lease Terms and Economic Conditions

Lease Terms

OCS Lease Form
    BOEM will use Form BOEM-2005 (February 2017) to convey leases 
resulting from this sale. This lease form may be viewed on BOEM's 
website at https://www.boem.gov/BOEM-2005. The lease form will be 
amended to include specific terms, conditions, and stipulations 
applicable to the individual lease. The terms, conditions, and 
stipulations applicable to this sale are set forth below.
Primary Term
    Primary Terms are summarized in the following table:

------------------------------------------------------------------------
         Water depth (meters)                     Primary term
------------------------------------------------------------------------
0 to <400............................  The primary term is five years;
                                        the lessee may earn an
                                        additional three years (i.e.,
                                        for an eight-year extended
                                        primary term) if a well is
                                        spudded targeting hydrocarbons
                                        below 25,000 feet True Vertical
                                        Depth Subsea (TVDSS) during the
                                        first five years of the lease.
400 to <800..........................  The primary term is five years;
                                        the lessee will earn an
                                        additional three years (i.e.,
                                        for an eight-year extended
                                        primary term) if a well is
                                        spudded during the first five
                                        years of the lease.
800 to <1,600........................  The primary term is seven years;
                                        the lessee will earn an
                                        additional three years (i.e.,
                                        for a ten-year extended primary
                                        term) if a well is spudded
                                        during the first seven years of
                                        the lease.
1,600 +..............................  Ten years.
------------------------------------------------------------------------

    (1) The primary term for a lease in water depths less than 400 
meters issued as a result of this sale is five years. If the lessee 
spuds a well targeting hydrocarbons below 25,000 feet TVDSS within the 
first five years of the lease, then the lessee may earn an additional 
three years, resulting in an eight-year primary term. The lessee will 
earn the eight-year primary term when the well is drilled to a target 
below 25,000 feet TVDSS, or the lessee may earn the eight-year primary 
term in cases where the well targets, but does not reach, a depth below 
25,000 feet TVDSS due to mechanical or safety reasons, and where the 
lessee provides sufficient evidence that it did not reach that target 
for reasons beyond the lessee's control.
    In order to earn the eight-year extended primary term, the lessee 
is required to submit to the BOEM GOM Regional Supervisor for Leasing 
and Plans, as soon as practicable, but no more than 30 days after 
completion of the drilling operation, a letter providing the well 
number, spud date, information demonstrating a target below 25,000 feet 
TVDSS 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

[[Page 34939]]

TVDSS. This letter must request confirmation that the lessee earned the 
eight-year primary term. The BOEM GOM Regional Supervisor for Leasing 
and Plans will confirm in writing, within 30 days of receiving the 
lessee's letter, whether the lessee has earned the extended primary 
term and update BOEM records accordingly. The extended primary term is 
not effective unless and until the lessee receives confirmation from 
BOEM.
    A lessee that has earned the eight-year primary term by spudding a 
well with a hydrocarbon target below 25,000 feet TVDSS during the 
standard five-year primary term of the lease 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 primary term for a lease in water depths ranging from 400 
to less than 800 meters issued as a result of this sale is five years. 
If the lessee spuds a well within the five-year primary term of the 
lease, the lessee will earn an additional three years, resulting in an 
eight-year primary term.
    In order to earn the eight-year primary term, the lessee is 
required to submit to the BOEM GOM Regional Supervisor for Leasing and 
Plans, as soon as practicable, but no more than 30 days after spudding 
a well, a letter providing the well number and spud date, and 
requesting confirmation that the lessee earned the eight-year extended 
primary term. Within 30 days of receipt of the request, the BOEM GOM 
Regional Supervisor for Leasing and Plans will provide written 
confirmation of whether the lessee has earned the extended primary term 
and update BOEM records accordingly. The extended primary term is not 
effective unless and until the lessee receives confirmation from BOEM.
    (3) The primary term for a lease in water depths ranging from 800 
to less than 1,600 meters issued as a result of this sale is seven 
years. If the lessee spuds a well within the seven-year primary term, 
the lessee will earn an additional three years, resulting in a ten-year 
extended primary term.
    In order to earn the ten-year primary term, the lessee is required 
to submit to the BOEM GOM Regional Supervisor for Leasing and Plans, as 
soon as practicable, but in no instance more than 30 days after 
spudding a well, a letter providing the well number and spud date, and 
requesting confirmation that the lessee earned the ten-year primary 
term. Within 30 days of receipt of the request, the BOEM GOM Regional 
Supervisor for Leasing and Plans will provide written confirmation of 
whether the lessee has earned the extended primary term and update BOEM 
records accordingly. The extended primary term is not effective unless 
and until the lessee receives confirmation from BOEM.
    (4) The primary term for a lease in water depths 1,600 meters or 
deeper issued as a result of this sale will be ten years.

Economic Conditions

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

                                    Rental Rates per Acre or Fraction Thereof
----------------------------------------------------------------------------------------------------------------
             Water depth (meters)                 Years 1-5                    Years 6, 7, & 8 +
----------------------------------------------------------------------------------------------------------------
0 to <200....................................           $7.00  $14.00, $21.00, & $28.00.
200 to <400..................................           11.00  $22.00, $33.00, & $44.00.
400 +........................................           11.00  $16.00.
----------------------------------------------------------------------------------------------------------------

Escalating Rental Rates for Leases With an Eight-Year Primary Term in 
Water Depths Less Than 400 Meters
    Any lessee with a lease in less than 400 meters water depth who 
earns an eight-year primary term 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 
TVDSS after the fifth year of the lease, and BOEM 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
     12.5 percent for leases situated in water depths less than 
200 meters; and
     18.75 percent for leases situated in water depths of 200 
meters and deeper.
Minimum Royalty Rate
     $7.00 per acre or fraction thereof per year for blocks in 
water depths less than 200 meters; and
     $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 Bureau of 
Safety and Environmental Enforcement (BSEE) regulations at 30 CFR part 
203. In this sale, the only royalty relief program being offered that 
involves the provision of RSVs relates to the drilling of ultra-deep 
wells in water depths of less than 400 meters, as described in the 
following section.
Royalty Suspension Volumes on Gas Production From Ultra-Deep Wells
    Pursuant to 30 CFR part 203, certain leases issued as a result of 
this sale may be eligible for RSV incentives on gas produced from 
ultra-deep wells. Under this program, wells on leases in less than 400 
meters water depth and completed to a drilling depth of 20,000 feet 
TVDSS or deeper receive a RSV of 35 billion cubic feet on the 
production of natural gas. This RSV incentive is subject to applicable 
price thresholds set forth in the regulations at 30 CFR part 203. These 
regulations implement the requirements of the Energy Policy Act of 2005 
(Pub. L. 109-58, 119 Stat. 594 (2005)).

[[Page 34940]]

IV. Lease Stipulations

    Consistent with the Record of Decision for the Final Programmatic 
Environmental Impact Statement for the 2017-2022 Five Year OCS Oil and 
Gas Leasing Program, Stipulation No. 5 (Topographic Features) and 
Stipulation No. 8 (Live Bottom) will apply to every lease sale in the 
GOM Program Area. One or more of the remaining eight stipulations may 
be applied to leases issued as a result of this sale, on applicable 
blocks as identified on the map ``Gulf of Mexico Region-wide Oil and 
Gas Lease Sale 253, August 21, 2019, Stipulations and Deferred Blocks'' 
included in the Final NOS package. The full text of the following 
stipulations is contained in the ``Lease Stipulations'' section of the 
Final NOS package.


(1) Military Areas
(2) Evacuation
(3) Coordination
(4) Protected Species
(5) Topographic Features
(6) United Nations Convention on the Law of the Sea Royalty Payment
(7) Agreement between the United States of America and the United 
Mexican States Concerning Transboundary Hydrocarbon Reservoirs in the 
Gulf of Mexico
(8) Live Bottom
(9) Blocks South of Baldwin County, Alabama
(10) Restrictions due to Rights-of-Use and Easement for Floating 
Production Facilities

V. Information to Lessees

    Information to Lessees (ITLs) provide detailed information on 
certain issues pertaining to specific oil and gas lease sales. The full 
text of the ITLs for this sale is contained in the ``Information to 
Lessees'' section of the Final NOS package and covers the following 
topics:

(1) Navigation Safety
(2) Ordnance Disposal Areas
(3) Existing and Proposed Artificial Reefs/Rigs-to-Reefs
(4) Lightering Zones
(5) Indicated Hydrocarbons List
(6) Military Areas
(7) Bureau of Safety and Environmental Enforcement (BSEE) Inspection 
and Enforcement of Certain U.S. Coast Guard (USCG) Regulations
(8) Significant Outer Continental Shelf Sediment Resource Areas
(9) Notice of Arrival on the Outer Continental Shelf
(10) Bidder/Lessee Notice of Obligations Related to Criminal/Civil 
Charges and Offenses, Suspension, or Debarment; Disqualification Due to 
a Conviction under the Clean Air Act or the Clean Water Act
(11) Protected Species
(12) Proposed Expansion of the Flower Garden Banks National Marine 
Sanctuary
(13) Communication Towers
(14) Deepwater Port Applications for Offshore Oil and Liquefied Natural 
Gas Facilities
(15) Ocean Dredged Material Disposal Sites
(16) Rights-of-Use and Easement
(17) Industrial Waste Disposal Areas
(18) Gulf Islands National Seashore
(19) Air Quality Permit/Plan Approvals

VI. Maps

    The maps pertaining to this lease sale may be viewed on BOEM's 
website at https://www.boem.gov/Sale-253/. The following maps also are 
included in the Final NOS package:

Lease Terms and Economic Conditions Map

    The lease terms and economic conditions associated with leases of 
certain blocks are shown on the map entitled, ``Gulf of Mexico Region-
wide Oil and Gas Lease Sale 253, August 21, 2019, Lease Terms and 
Economic Conditions.''

Stipulations and Deferred Blocks Map

    The lease stipulations and the blocks to which they apply are shown 
on the map entitled, ``Gulf of Mexico Region-wide Oil and Gas Lease 
Sale 253, August 21, 2019, Stipulations and Deferred Blocks Map.''

VII. Bidding Instructions

    Bids may be submitted in person or by mail at the address below in 
the ``Mailed Bids'' section. Bidders submitting their bid(s) in person 
are advised to email [email protected] to provide the names 
of the company representative(s) that will submit the bid(s). 
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 must be submitted in 
a sealed envelope (as described below) and 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%);
     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) understands 
that this bid legally binds the bidder(s) to comply with all applicable 
regulations, including those requiring it to post a deposit in the 
amount of one-fifth of the bonus bid amount for any tract bid upon and 
make payment of the balance of the bonus bid and first year's rental 
upon BOEM's acceptance of high bids.
    The information required on the bid(s) is specified in the document 
``Bid Form'' that is available in the Final NOS package. A blank bid 
form is provided in the Final NOS package 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 GOM Region-wide Sale 253, not to be 
opened until 9 a.m. Wednesday, August 21, 2019'';
     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 WS-266A, New Orleans, Louisiana 70123-2394, Contains Sealed 
Bids for GOM Region-wide Sale 253, Please Deliver to Mr. Greg Purvis, 
2nd Floor, Immediately.

    Please Note:  Bidders mailing bid(s) are advised to inform BOEM 
by email to [email protected] immediately after putting 
their bid(s) in the mail. This will provide advance notice to BOEM 
regarding pending bids prior to the Bid Submission Deadline. 
However, if BOEM receives bids later than the Bid Submission 
Deadline, the BOEM GOM 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.


[[Page 34941]]



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 area-wide development bond via bond rider;
     Provide a letter of credit; or
     Provide a lump sum payment in advance via EFT.
    Please provide, at the time you submit your bid, a confirmation or 
tracking number for your payment, the name of the company submitting 
the payment as it appears on the payment, and the date the payment was 
submitted in order for BOEM to confirm your payment with the Office of 
Natural Resources Revenue (ONRR). Submitting payment to your financial 
institution at least five business days prior to your bid submittal 
will help ensure that the Office of Foreign Assets Control and the U.S. 
Department of the Treasury (U.S. Treasury) have the needed time to 
screen and process your payment so that they post it to ONRR prior to 
you placing your bid. ONRR cannot confirm payment until the monies have 
been moved into settlement status by the U.S. Treasury. Your bid will 
not be accepted if BOEM cannot confirm your payment with ONRR.
    If you are providing a third-party guarantee, amending an area-wide 
development bond via bond rider, or providing a letter of credit to 
secure your one-fifth bonus bid deposit, you are urged to file the same 
with BOEM, well in advance of submitting your bid, to allow time for 
BOEM to process these items and for you to take any necessary curative 
actions prior to your bid submission. 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 the Equal Opportunity 
Affirmative Action Representation Form BOEM-2032 (October 2011, https://www.boem.gov/BOEM-2032/) and Equal Opportunity Compliance Report 
Certification Form BOEM-2033 (October 2011, https://www.boem.gov/BOEM-2033/) with the BOEM GOM 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, and by Executive Order 13672, issued July 21, 2014. 
Both forms must be on file for the bidder(s) in the GOM 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
    (3) The ``Maps'' being the live trace maps for each proprietary 
survey that is identified in the GDIS statement and table.
    Every bidder submitting a bid on a block in GOM Region-wide Sale 
253, 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 bidder or bidders must submit the GDIS in a separate and sealed 
envelope, and must identify all proprietary data; reprocessed 
speculative data, and/or any Controlled Source Electromagnetic surveys, 
Amplitude Versus Offset (AVO), Gravity, or Magnetic data; or other 
information used as part of the decision to bid or participate in a bid 
on the block. The bidder and joint bidder must also include a live 
trace map (e.g., .pdf and ArcGIS shape file) for each proprietary 
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'' that is included in the Final NOS 
package for additional information). The shape file must not include 
cultural information; only the live trace map of the survey itself.
    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 geophysical information and data listed and who are available 
for 30 days after the sale date. The GDIS statement also must include a 
list of 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. Bidders 
must submit the GDIS statement 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 joint bidder's company's name (if applicable);
     Company that will provide Proprietary Data to BOEM;
     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, etc.);
     The 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);
     The Live Proprietary Survey Coverage (2-D miles 3-D 
Blocks);
     The computer storage size, to the nearest gigabyte, of 
each seismic data and velocity volume used to evaluate the lease block;
     Who reprocessed the data;
     Date Final Reprocessing Completed (month and year);
     If data was previously sent to BOEM, list the sale number 
and date of the sale for which it was used;
     Whether proprietary or Speculative AVO/AVA (PROP/SPEC) was 
used;
     Date AVO or AVA was sent to BOEM if sent during prior 
sale;
     Is AVO/AVA Time or Depth (PSTM or PSDM);
     Which Angled Stacks were used (NEAR, MID, FAR, ULTRAFAR 
etc.);
     Whether your company used Gathers to evaluate the block in 
question; and
     Whether your company used Vector Offset Output (VOO) or 
Vector Image Partitions (VIP) to evaluate the block in question.
    BOEM will use the computer storage size information in estimating 
the reproduction costs for each data set, if applicable. BOEM will 
determine the availability of reimbursement of production costs 
consistent with 30 CFR 551.13.

[[Page 34942]]

    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. See the ``Example of Preferred 
Format'' that is included in the Final NOS package. Bidders can access 
a blank digital version of the preferred table on the GOM Region-wide 
Sale 253 web page at https://www.boem.gov/Sale-253.
    The GDIS maps are live trace maps (e.g., .pdf and ArcGIS shape 
files) that bidders should submit for each proprietary survey that is 
identified in the GDIS table. They should illustrate the actual areal 
extent of the proprietary geophysical data in the survey (see the 
``Example of Preferred Format'' that is included in the Final NOS 
package for additional information). As previously stated, the shape 
file must not include cultural information; only the live trace map of 
the survey itself.
    Pursuant to 30 CFR 551.12 and 30 CFR 556.501, as a condition of the 
sale, the BOEM Gulf of Mexico Regional Director (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 should not be submitted to BOEM 
unless BOEM specifically requests the commercially available data from 
the 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. Where the BOEM Gulf of Mexico RD has notified bidders and joint 
bidders that the request for such proprietary data has been withdrawn, 
reimbursement will not be provided. Pursuant to 30 CFR part 551 and 30 
CFR 556.501, as a condition of this sale, all bidders that are 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, GM 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 GOM Region-wide Sale 253 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) The person 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 website for 
registering is gsa.gov/iaesystems.
    (2) The persons must be enrolled in the U.S. 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) The persons must have a current On-line Representations and 
Certifications Application at gsa.gov/iaesystems.

Please Note

    The GDIS Information Table must be submitted digitally, preferably 
as an Excel spreadsheet, on a CD, DVD, or any USB external drive 
(formatted for Windows), 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 556.107, 30 CFR 556.401, 30 CFR 556.501, and 30 CFR 
556.513.

VIII. Bidding Rules and Restrictions

Restricted Joint Bidders

    On June 6, 2019, BOEM published the most recent List of Restricted 
Joint Bidders in the Federal Register at 84 FR 26442. Potential bidders 
are advised to refer to the Federal Register, prior to bidding, for the 
most current List of Restricted Joint Bidders in place at the time of 
the lease sale. Please refer to the joint bidding provisions at 30 CFR 
556.511-515.

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 that requiring payment of one-fifth 
of the bonus bid on all high bids. A statement to this effect is 
included on each bid form (see the document ``Bid Form'' that is 
included in the 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 withdrawal request must be executed by 
one or more of the representatives named in the BOEM qualification 
records. The name and title of the authorized signatory must be typed 
under the signature block on the withdrawal request. The BOEM Gulf of 
Mexico RD, or the RD's designee, will indicate their approval by 
signing and dating the withdrawal request.

Bid Rounding

    Minimum bonus bid calculations, including rounding, for all blocks 
are shown in the document ``List of Blocks Available for Leasing'' 
included in the Final NOS package. The bonus bid amount must be stated 
in whole dollars. If the acreage of a block contains a decimal figure, 
then prior to calculating the minimum bonus bid, BOEM rounded up to the 
next whole acre. The appropriate minimum rate per acre was then applied 
to the whole (rounded up) acreage. The bonus bid amount must be

[[Page 34943]]

greater than or equal to the minimum bonus bid so calculated and stated 
in the Final NOS package.

IX. Forms

    The Final NOS package includes instructions, samples, and/or the 
preferred format for the following items. BOEM strongly encourages 
bidders to use the recommended formats. If 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 under the DATES and ADDRESSES 
sections of the Final NOS. The venue will not be open to the public. 
Instead, the bid opening will be available for the public to view on 
BOEM's website at www.boem.gov via live-streaming. 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 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 bid amount may be obtained on the BOEM website at https://www.boem.gov/Sale-253 under the heading ``Notification of EFT \1/5\ 
Bonus Liability'' after 1:00 p.m. on the day of the sale. All payments 
must be deposited electronically into an interest-bearing account in 
the U.S. Treasury by 1:00 p.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 website identified above. Submitting payment to your 
financial institution as soon as possible the day of bid reading, but 
no later than 7:00 p.m. Eastern Time the day of bid reading, will help 
ensure that deposits have time to process through the U.S. Treasury and 
post to ONRR. ONRR cannot confirm payment until the monies have been 
moved into settlement status by the U.S. Treasury.
    BOEM requires bidders to use EFT procedures for payment of one-
fifth bonus bid deposits for GOM Region-wide Sale 253 following the 
detailed instructions contained on the ONRR Payment Information web 
page at https://www.onrr.gov/ReportPay/payments.htm. Acceptance of a 
deposit does not constitute and will 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 applicable regulations and 
requirements of the Final NOS, including those set forth in the 
documents contained in the Final NOS package;
    (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 will be rejected and returned to the bidder. The United 
States 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.

Bid Adequacy Review Procedures for GOM Region-Wide Sale 253

    To ensure that the U.S. Government receives a fair return for the 
conveyance of leases from this sale, BOEM will evaluate high bids in 
accordance with its bid adequacy procedures, which are available 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 (February 
2017), 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 556.520(a); 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 
balance of the bonus bid amount and the first year's rental. Once ONRR 
receives such payment, the bidder awarded the lease may not request a 
refund of the balance of the bonus bid amount or first year's rental 
payment.

XI. Delay of Sale

    The BOEM Gulf of Mexico RD has the discretion to change any date, 
time, and/or location specified in the Final NOS package in the case of 
an event that the BOEM Gulf of Mexico RD deems may interfere with 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 website at 
https://www.boem.gov, for information regarding any changes.

Walter D. Cruickshank,
Acting Director, Bureau of Ocean Energy Management.
[FR Doc. 2019-15330 Filed 7-18-19; 8:45 am]
BILLING CODE 4310-MR-P