Gulf of Mexico Outer Continental Shelf Region-Wide Oil and Gas Lease Sale 254, 8010-8017 [2020-02716]
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Federal Register / Vol. 85, No. 29 / Wednesday, February 12, 2020 / Notices
available documents submitted to OMB
may be obtained from Ms. Pollard.
SUPPLEMENTARY INFORMATION: This
notice informs the public that HUD is
seeking approval from OMB for the
information collection described in
Section A.
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A. Overview of Information Collection
Title of Information Collection:
Management Certification & Entity
Profile.
OMB Approval Number: 2502–0305.
OMB Expiration Date: 4/30/2020.
Type of Request: Extension of
currently approved collection.
Form Number: HUD–9832
Management Entity Profile; HUD–9839a Project Owner’s Certification for
Owner-Managed Multifamily Housing
Projects; HUD–9839-b Project Owner’s/
Management Agent’s Certification for
Multifamily Housing Projects for
Identity-of-Interest or Independent
Management Agents; HUD–9839-c
Project Owner’s/Borrower’s Certification
for Elderly Housing Projects Managed
by Administrators.
Description of the need for the
information and proposed use: Owners
of HUD-held, -insured, or subsidized
multifamily housing projects must
provide information for HUD’s oversight
of management agents/entities.
Respondents (i.e. affected public):
Property owners; project managers.
Estimated Number of Respondents:
61,240.
Estimated Number of Responses:
3,062.
Frequency of Response: 1.
Average Hours per Response: Varies
Total Estimated Burden: 3,540.
B. Solicitation of Public Comment
This notice is soliciting comments
from members of the public and affected
parties concerning the collection of
information described in Section A on
the following:
(1) Whether the proposed collection
of information is necessary for the
proper performance of the functions of
the agency, including whether the
information will have practical utility;
(2) The accuracy of the agency’s
estimate of the burden of the proposed
collection of information;
(3) Ways to enhance the quality,
utility, and clarity of the information to
be collected; and
(4) Ways to minimize the burden of
the collection of information on those
who are to respond; including through
the use of appropriate automated
collection techniques or other forms of
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information technology, e.g., permitting
electronic submission of responses.
HUD encourages interested parties to
submit comment in response to these
questions.
C. Authority
Section 3507 of the Paperwork
Reduction Act of 1995, 44 U.S.C.
Chapter 35.
Dated: January 23, 2020.
John L. Garvin,
General Deputy Assistant Secretary for
Housing.
[FR Doc. 2020–02824 Filed 2–11–20; 8:45 am]
BILLING CODE 4210–67–P
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
254
Bureau of Ocean Energy
Management, Interior.
ACTION: Final notice of sale.
AGENCY:
On Wednesday, March 18,
2020, 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 254
(GOM Region-wide Sale 254), in
accordance with the provisions of the
Outer Continental Shelf Lands Act, as
amended, and the implementing
regulations issued pursuant thereto. The
GOM Region-wide Sale 254 Final Notice
of Sale (NOS) package contains
information essential to potential
bidders, and consists of the NOS,
information to lessees, and lease
stipulations.
DATES: BOEM will hold GOM Regionwide Sale 254 at 9:00 a.m. on
Wednesday, March 18, 2020. 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. until
the bid submission deadline of 10:00
a.m. on Tuesday, March 17, 2020, the
day before the lease sale. For more
information on bid submission, see
Section VII, ‘‘Bidding Instructions.’’
ADDRESSES: Bids will be accepted prior
to the bid submission deadline at 1201
SUMMARY:
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Elmwood Park Boulevard, New Orleans,
Louisiana 70123. Public bid reading for
GOM Region-wide Sale 254 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-254 via livestreaming video beginning at 9:00 a.m.
on the date of the sale. The results will
be posted on BOEM’s website upon
completion of bid opening and reading.
Interested parties can download the
Final NOS package from BOEM’s
website at https://www.boem.gov/Sale254/. Copies of the sale maps can 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’reilly@boem.gov or Wright
Jay Frank, Chief, Leasing Policy and
Management Division, 703–787–1325,
wright.frank@boem.gov.
Table of Contents
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 below
in ‘‘Blocks Not Offered for Leasing.’’
Blocks Not Offered for Leasing: The
following whole and partial blocks are
not offered for lease in this sale. Official
Protraction Diagrams (OPDs) and
Supplemental Official Block Diagrams
are available online at https://
www.boem.gov/Maps-and-GIS-Data/.
• Flower Garden Banks National
Marine Sanctuary (East and West
Flower Garden Banks and Stetson
Bank):
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Federal Register / Vol. 85, No. 29 / Wednesday, February 12, 2020 / Notices
Area
OCS block
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.
Partial Blocks: A–502, A–513.
High Island, South Addition (Leasing Map
TX7B).
Garden Banks (OPD NG 15–02) ........................
• Blocks that are adjacent to or
beyond the United States Exclusive
Partial Blocks: 134, 135.
Economic Zone in the area known as
the northern portion of the Eastern Gap:
Area
OCS block
Lund South (OPD NG 16–07) ............................
Whole Blocks: 128, 129, 169 through 173, 208 through 217, 248 through 261, 293 through
305, and 349.
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: 335, 379, 423, 467, 511, 555, 556, 600, 644, 688, 732, 776, 777, 820, 821,
863, 864, 906, 907, 950, 993, and 994.
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.
Henderson (OPD NG 16–05) .............................
Florida Plain (OPD NG 16–08) ...........................
• All whole and portions of blocks
deferred by the Gulf of Mexico Energy
Security Act of 2006, Public Law 109–
432:
Area
OCS block
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.
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.
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.
Partial Blocks: 114, 158, 202, 246, 290, 334, 335, 378, 379, 422, and 423.
Destin Dome (OPD NH 16–08) ..........................
DeSoto Canyon (OPD NH 16–11) .....................
Henderson (OPD NG 16–05) .............................
• 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: SW1⁄4NE1⁄4; NW1⁄4SE1⁄4NE1⁄4;
W1⁄2NE1⁄4SE1⁄4NE1⁄4; S1⁄2S1⁄2NW1⁄4NE1⁄4;
S1⁄2SW1⁄4NE1⁄4NE1⁄4;
S1⁄2SW1⁄4SE1⁄4NE1⁄4NE1⁄4; N1⁄2SW1⁄4SE1⁄4
NE1⁄4; SW1⁄4SW1⁄4SE1⁄4NE1⁄4; NW1⁄4SE1⁄4
SE1⁄4 NE1⁄4;
N1⁄2NW1⁄4SW1⁄4SE1⁄4SE1⁄4NE1⁄4;
N1⁄2SE1⁄4SW1⁄4SE1⁄4NE1⁄4;
N1⁄2S1⁄2SE1⁄4SW1⁄4SE1⁄4NE1⁄4;
S1⁄2NE1⁄4NW1⁄4; S1⁄2S1⁄2N1⁄2NE1⁄4NW1⁄4;
N1⁄2SE1⁄4NW1⁄4;S1⁄2SE1⁄4NW1⁄4NW1⁄4;
NE1⁄4SE1⁄4 NW1⁄4NW1⁄4;
E1⁄2NE1⁄4SW1⁄4NW1⁄4;
N1⁄2SE1⁄4SE1⁄4NW1⁄4;
NE1⁄4SW1⁄4SE1⁄4NW1⁄4;
Area
• Whole or partial blocks that have
received bids in previous sales, where
the bidder has sought reconsideration of
BOEM’s rejection of the bid, are not
offered in this sale, unless the
reconsideration request is fully resolved
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N1⁄2NW1⁄4SW1⁄4SE1⁄4NW1⁄4;
SE1⁄4SE1⁄4SE1⁄4NW1⁄4;
E1⁄2SW1⁄4SE1⁄4SE1⁄4NW1⁄4;
N1⁄2NW1⁄4NE1⁄4SW1⁄4NW1⁄4;
N1⁄2S1⁄2NW1⁄4NE1⁄4SW1⁄4NW1⁄4;
N1⁄2N1⁄2NE1⁄4NE1⁄4NE1⁄4SW1⁄4;
N1⁄2N1⁄2N1⁄2NW1⁄4NW1⁄4SE1⁄4;
N1⁄2N1⁄2NW1⁄4NE1⁄4NW1⁄4SE1⁄4.
• The following whole or partial
blocks, whose lease status is currently
under appeal:
OCS block
Keathley Canyon (OPD NG15–05) ....................
Vermillion Area (Leasing Map LA3) ...................
Atwater Valley (OPD NG16–01) .........................
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246, 247, 290, 291, 292, 335, 336.
Partial Block 179.
63.
at least 30 days prior to publication of
this Final NOS.
The list of blocks available can be
found under the Sale 254 link at https://
www.boem.gov/Sale-254 under the Final
NOS tab.
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II. Statutes and Regulations
Each lease is issued pursuant to
OCSLA, 43 U.S.C. 1331–1356, as
amended, and is subject to OCSLAimplementing regulations promulgated
pursuant thereto in 30 CFR part 556,
and other applicable statutes and
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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 afterenacted 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
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
can 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.
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.
The primary term is seven years; the lessee will earn an additional three years (i.e., for a 10-year extended primary term)
if a well is spudded during the first seven years of the lease.
10 years.
400 to <800 ............
800 to <1,600 .........
1,600+ ....................
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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.
(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 eightyear 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. To
earn the eight-year extended primary
term, the lessee is required to submit a
letter to the BOEM GOM Regional
Supervisor, Office of Leasing and Plans,
as soon as practicable, but no more than
30 days after completion of the drilling
operation, 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 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 accordingly update BOEM’s
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records. 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.
To earn the eight-year primary term,
the lessee is required to submit a letter
to the BOEM GOM Regional Supervisor,
Office of Leasing and Plans, as soon as
practicable, but no more than 30 days
after spudding a well, providing the
well number and spud date, and
requesting confirmation that the lessee
has 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 accordingly update
BOEM’s records. 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
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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 tenyear extended primary term.
To earn the 10-year primary term, the
lessee is required to submit a letter to
the BOEM GOM Regional Supervisor,
Office of Leasing and Plans, as soon as
practicable, but no more than 30 days
after spudding a well, providing the
well number and spud date, and
requesting confirmation that the lessee
has earned the 10-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
accordingly update BOEM’s records.
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 10
years.
Economic Conditions
Minimum Bonus Bid Amounts
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, as described
below.
• $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.
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Rental Rates
Annual rental rates are summarized in
the following table:
RENTAL RATES PER ACRE OR FRACTION THEREOF
Water depth
(meters)
Years 1–5
0 to <200 .....................................................................................
200 to <400 .................................................................................
400+ ............................................................................................
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.
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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.
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$7.00
11.00
11.00
Years 6, 7, & 8+
$14.00, $21.00, & $28.00.
$22.00, $33.00, & $44.00.
$16.00.
Royalty Suspension Volumes on Gas
Production From Ultra-Deep Wells
Pursuant to 30 CFR part 203,
regulations implementing the
requirements of the Energy Policy Act of
2005 (Pub. L. 109–58, 119 Stat. 594
(2005)), certain leases issued as a result
of this sale may be eligible for RSV
incentives on gas produced from ultradeep 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
an 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.
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) 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 254, March 18, 2020, 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
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(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 Inspection and
Enforcement of Certain U.S. Coast
Guard 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
can be viewed on BOEM’s website at
https://www.boem.gov/Sale-254/. The
following maps are also included in the
Final NOS package:
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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 254, March 18,
2020, 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 Regionwide Oil and Gas Lease Sale 254, March
18, 2020, Stipulations and Deferred
Blocks Map.’’
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VII. Bidding Instructions
Bids may be submitted in person or
by mail at the address below in the
‘‘Mailed Bids’’ section. Prior to bid
submittal, bidders submitting their
bid(s) in person are advised to email
boemgomrleasesales@boem.gov to
provide the names of the company
representative(s) submitting the bid(s).
Instructions on how to submit a bid,
secure payment of the advance bonus
bid deposit (if applicable), and the
information to 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 percent);
• Typed name and title, and signature
of each bidder’s authorized officer;
• Each bidder’s qualification number;
• Map name and number or 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 the requirement 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 the bid as the
high bid.
The information required for each bid
is specified in the document ‘‘Bid
Form’’ that is available in the Final NOS
package, which can be found at https://
www.boem.gov/Sale-254/. A blank bid
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form is provided in the Final NOS
package for convenience and can 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 254, not to be opened until 9 a.m.
Wednesday, March 18, 2020:’’
• 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 254. Please Deliver to
Mrs. Bridgette Duplantis or Mr. Greg
Purvis, 2nd Floor, Immediately.
Please Note: Bidders mailing bid(s)
are advised to inform BOEM by email at
boemgomrleasesales@boem.gov
immediately after placing bid(s) in the
mail. This provides 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 will return those bids
unopened to bidders. Please see
‘‘Section XI. Delay of Sale’’ regarding
BOEM’s discretion to extend the Bid
Submission Deadline in the case of an
unexpected event (e.g., flooding or
travel restrictions) and how bidders can
obtain more information on such
extensions.
Advance Bonus Bid Deposit Guarantee
Bidders that are not currently OCS oil
and gas lease record title holders, or
those that ever have defaulted on a onefifth 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.
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Please provide, at the time of bid
submittal, a confirmation or tracking
number for an EFT payment, the name
of the company submitting the payment
as it appears on the payment, and the
date the payment was submitted so
BOEM can confirm payment with the
Office of Natural Resources Revenue
(ONRR). Submitting payment to the
bidders’ financial institution at least five
business days prior to bid submittal
helps 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
payments so they are posted to ONRR
prior to placing the bid. ONRR cannot
confirm payment until the monies have
been moved into settlement status by
the U.S. Treasury. Bids will not be
accepted if BOEM cannot confirm
payment with ONRR. For more
information on EFT procedures, see
Section X of this document entitled,
‘‘The Lease Sale.’’
If 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, bidders are urged to
file the same documents with BOEM,
well in advance of submitting the bid,
to allow processing time and for bidders
to take any necessary curative actions
prior to bid submission.
Affirmative Action
Prior to bidding, each bidder should
file the Equal Opportunity Affirmative
Action Representation Form BOEM–
2032 (October 2011, available on
BOEM’s website at https://
www.boem.gov/BOEM-2032/) and each
bidder must file the Equal Opportunity
Compliance Report Certification Form
BOEM–2033 (October 2011, available on
BOEM’s website at https://
www.boem.gov/BOEM-2033/) with the
BOEM GOM Adjudication Section. This
certification is required by 41 CFR part
60 and Executive Order (E.O.) 11246,
issued September 24, 1965, as amended
by E.O. 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) A ‘‘Statement’’ page that includes
the company representatives’
information and lists of blocks bid on
that used proprietary data and those
blocks bid upon that did not use
proprietary data;
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(2) A ‘‘Table’’ listing the required data
about each proprietary survey used (see
below); and
(3) ‘‘Maps,’’ which contain 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 254 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 sealed envelope,
and must identify all proprietary data;
reprocessed speculative data, and/or
any Controlled Source Electromagnetic
surveys, Amplitude Versus Offset (AVO)
data, 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(s)
must also include a live trace map (e.g.,
.pdf and ArcGIS shapefile) for each
proprietary survey identified 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 resources information;
only the live trace map of the survey
itself.
The GDIS statement must include the
name, phone number, and full address
for 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.
An example of the preferred format of
the table is included in the Final NOS
package, and a blank digital version of
the preferred table can be accessed on
the GOM Region-wide Sale 254 web
page at https://www.boem.gov/Sale-254.
The GDIS table should have columns
that clearly state the following:
• The sale number;
• The bidder company’s name;
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17:03 Feb 11, 2020
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• The joint bidder’s company’s name
(if applicable);
• The company providing Proprietary
Data to BOEM;
• The block area and block number
bid upon;
• 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; time or
depth);
• 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 the final reprocessing was
completed (month and year);
• If data were 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 prior to the sale;
• Whether AVO/AVA is time or
depth (PSTM or PSDM);
• Which angled stacks were used
(e.g., NEAR, MID, FAR, ULTRAFAR);
• Whether the company used Gathers
to evaluate the block in question; and
• Whether the 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 to estimate 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.
BOEM reserves the right to inquire
about alternate data sets, to perform
quality checks, 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.
The GDIS maps are live trace maps
(e.g., .pdf and ArcGIS shapefiles) that
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8015
bidders should submit for each
proprietary survey identified in the
GDIS table. The maps 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 shapefile must not include
cultural resources 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 GOM 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 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 specifically requested
by BOEM. The BOEM GOM 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 GOM 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 are 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, Louisiana 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 254 and used during
<Bidder Name’s> evaluation of Block
<Block Number>.’’
In the event a person supplies any
type of data to BOEM, that person must
meet the following requirements to
qualify for reimbursement:
(1) 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
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an entity’s records. The website for
registering is gsa.gov/iaesystems.
(2) 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 submitting
a request for payment, the assigned
Purchase Order Number must be
included.
(3) Must have a current On-line
Representations and Certifications
Application at gsa.gov/iaesystems.
Please Note: A digital as well as a
printed copy should be sent in for the
GDIS Statement, Table and Maps. The
GDIS Statement should be sent in as a
digital PDF. The GDIS Information
Table must be submitted digitally as an
Excel spreadsheet. The Proprietary
Maps should be sent in as PDF files and
the live trace outline of each proprietary
survey should also be submitted as a
shapefile. Bidder may submit the digital
files on a CD, DVD, or any USB external
drive (formatted for Windows). If
bidders have any questions, please
contact Ms. Dee Smith at (504) 736–
2706, or Ms. Teree Campbell at (504)
736–3231.
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 submittal.
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.
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VIII. Bidding Rules and Restrictions
Restricted Joint Bidders
On November 5, 2019, BOEM
published the most recent List of
Restricted Joint Bidders in the Federal
Register at 84 FR 59644. 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
regulations at 30 CFR 556.511–515.
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17:03 Feb 11, 2020
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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 apparent 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, which prohibits
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 GOM RD, or the
RD’s designee, will indicate 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
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 items listed
below. BOEM strongly encourages
bidders to use the recommended
formats. If bidders use another format,
they are responsible for including all the
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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 can
be obtained on the BOEM website at
https://www.boem.gov/Sale-254 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
electronically deposited into an interestbearing 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 Regionwide Sale 254, 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
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construed as, acceptance of any bid on
behalf of the United States.
refund of the balance of the bonus bid
amount or first year’s rental payment.
Withdrawal of Blocks
XI. Delay of Sale
The BOEM GOM 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 GOM RD deems could
interfere with a fair and orderly lease
sale process. Such events could include,
but are not limited to, natural disasters
(e.g., earthquakes, hurricanes, 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.
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.
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 on BOEM’s website at https://
www.boem.gov/Oil-and-Gas-EnergyProgram/Leasing/Regional-Leasing/
Gulf-of-Mexico-Region/Bid-AdequacyProcedures.aspx.
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Lease Award
BOEM requires each bidder awarded
a lease to complete the following:
(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
17:03 Feb 11, 2020
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[FR Doc. 2020–02716 Filed 2–11–20; 8:45 am]
BILLING CODE 4310–MR–P
DEPARTMENT OF THE INTERIOR
Bureau of Ocean Energy Management
[Docket No. BOEM–2020–0001]
Gulf of Mexico, Outer Continental Shelf
(OCS), Oil and Gas Lease Sale 254
Bureau of Ocean Energy
Management, Interior.
ACTION: Notice of availability of a
Record of Decision.
AGENCY:
Bid Adequacy Review Procedures for
GOM Region-Wide Sale 254
VerDate Sep<11>2014
Walter D. Cruickshank,
Acting Director, Bureau of Ocean Energy
Management.
The Bureau of Ocean Energy
Management (BOEM) is announcing the
availability of a Record of Decision for
proposed Gulf of Mexico (GOM)
regionwide oil and gas Lease Sale 254.
This Record of Decision identifies
BOEM’s selected alternative for
proposed Lease Sale 254, which is
analyzed in the Gulf of Mexico OCS
Lease Sale: Final Supplemental
Environmental Impact Statement 2018
(2018 GOM Supplemental EIS).
ADDRESSES: The Record of Decision is
available on BOEM’s website at https://
www.boem.gov/nepaprocess/.
FOR FURTHER INFORMATION CONTACT: For
more information on the Record of
Decision, you may contact Ms. Helen
Rucker, Chief, Environmental
Assessment Section, Office of
Environment, by telephone at 504–736–
2421, or by email at helen.rucker@
boem.gov.
SUPPLEMENTARY INFORMATION: In the
2018 GOM Supplemental EIS, BOEM
evaluated five alternatives for proposed
Lease Sale 254. We have summarized
these alternatives below, noting some
SUMMARY:
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8017
additional blocks that may be excluded
due to their lease status at the time of
this decision:
Alternative A—Regionwide OCS Lease
Sale: This is BOEM’s preferred
alternative. This alternative would
allow for a proposed GOM regionwide
lease sale encompassing all three
planning areas: Western Planning Area
(WPA); Central Planning Area (CPA);
and a small portion of the Eastern
Planning Area (EPA) not under
Congressional moratorium. Under this
alternative, BOEM would offer for lease
all available unleased blocks within the
proposed regionwide lease sale area for
oil and gas operations with the
following exceptions: Whole and
portions of blocks deferred by the Gulf
of Mexico Energy Security Act of 2006;
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; whole and
partial blocks within the current
boundary of the Flower Garden Banks
National Marine Sanctuary; depth
restricted, segregated portions of Block
299, Main Pass Area, South and East
Addition (Louisiana Leasing Map
LA10A); blocks where the lease status is
currently under appeal; and whole or
partial blocks that have received bids in
previous lease sales, where the bidder
has sought reconsideration of BOEM’s
rejection of their bid, unless the
reconsideration request is fully resolved
at least 30 days prior to the publication
of the Final Notice of Sale. We have
listed the unavailable blocks in Section
I of the Final Notice of Sale for proposed
Lease Sale 254 and at www.boem.gov/
Sale-254. The proposed regionwide
lease sale area encompasses about 91.93
million acres (ac). As of January 2020,
approximately 78.1 million ac of the
proposed regionwide lease sale area are
available for lease. As described in the
2018 GOM Supplemental EIS, the
estimated amounts of resources
projected to be leased, discovered,
developed, and produced as a result of
the proposed regionwide lease sale are
between 0.211 and 1.118 billion barrels
of oil (BBO) and 0.547 and 4.424 trillion
cubic feet (Tcf) of natural gas.
Alternative B—Regionwide OCS Lease
Sale Excluding Available Unleased
Blocks in the WPA Portion of the
Proposed Lease Sale Area: This
alternative would offer for lease all
available unleased blocks within the
CPA and EPA portions of the proposed
lease sale area for oil and gas operations,
with the following exceptions: Whole
and portions of blocks deferred by the
Gulf of Mexico Energy Security Act of
2006; blocks that are adjacent to or
beyond the United States’ Exclusive
E:\FR\FM\12FEN1.SGM
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]]>Agencies
[Federal Register Volume 85, Number 29 (Wednesday, February 12, 2020)]
[Notices]
[Pages 8010-8017]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-02716]
=======================================================================
-----------------------------------------------------------------------
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 254
AGENCY: Bureau of Ocean Energy Management, Interior.
ACTION: Final notice of sale.
-----------------------------------------------------------------------
SUMMARY: On Wednesday, March 18, 2020, 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 254 (GOM Region-wide Sale
254), in accordance with the provisions of the Outer Continental Shelf
Lands Act, as amended, and the implementing regulations issued pursuant
thereto. The GOM Region-wide Sale 254 Final Notice of Sale (NOS)
package contains information essential to potential bidders, and
consists of the NOS, information to lessees, and lease stipulations.
DATES: BOEM will hold GOM Region-wide Sale 254 at 9:00 a.m. on
Wednesday, March 18, 2020. 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. until the bid submission deadline of 10:00 a.m. on
Tuesday, March 17, 2020, the day before the lease sale. For more
information on bid submission, see Section VII, ``Bidding
Instructions.''
ADDRESSES: Bids will be accepted prior to the bid submission deadline
at 1201 Elmwood Park Boulevard, New Orleans, Louisiana 70123. Public
bid reading for GOM Region-wide Sale 254 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-254 via live-streaming video beginning at
9:00 a.m. on the date of the sale. The results will be posted on BOEM's
website upon completion of bid opening and reading. Interested parties
can download the Final NOS package from BOEM's website at https://www.boem.gov/Sale-254/. Copies of the sale maps can 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
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 below in ``Blocks Not Offered for Leasing.''
Blocks Not Offered for Leasing: The following whole and partial
blocks are not offered for lease in this sale. Official Protraction
Diagrams (OPDs) and Supplemental Official Block Diagrams are available
online at https://www.boem.gov/Maps-and-GIS-Data/.
Flower Garden Banks National Marine Sanctuary (East and
West Flower Garden Banks and Stetson Bank):
[[Page 8011]]
------------------------------------------------------------------------
Area OCS block
------------------------------------------------------------------------
High Island, East Addition, Whole Block: A-398.
South Extension (Leasing Map Partial Blocks: A-366, A-367, A-374, A-
TX7C). 375, A-383, A-384, A-385, A-388, A-389,
A-397, A-399, A-401.
High Island, South Addition Partial Blocks: A-502, A-513.
(Leasing Map TX7B).
Garden Banks (OPD NG 15-02).. 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:
------------------------------------------------------------------------
Area OCS block
------------------------------------------------------------------------
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: 335, 379, 423, 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:
------------------------------------------------------------------------
Area OCS block
------------------------------------------------------------------------
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 whole or partial blocks, whose lease status
is currently under appeal:
------------------------------------------------------------------------
Area OCS block
------------------------------------------------------------------------
Keathley Canyon (OPD NG15-05) 246, 247, 290, 291, 292, 335, 336.
Vermillion Area (Leasing Map Partial Block 179.
LA3).
Atwater Valley (OPD NG16-01). 63.
------------------------------------------------------------------------
Whole or partial blocks that have received bids in
previous sales, where the bidder has sought reconsideration of BOEM's
rejection of the bid, are not offered in this sale, unless the
reconsideration request is fully resolved at least 30 days prior to
publication of this Final NOS.
The list of blocks available can be found under the Sale 254 link
at https://www.boem.gov/Sale-254 under the Final NOS 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
[[Page 8012]]
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 can 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 10-year extended primary term) if a
well is spudded during the first seven
years of the lease.
1,600+..................... 10 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. To earn the eight-year
extended primary term, the lessee is required to submit a letter to the
BOEM GOM Regional Supervisor, Office of Leasing and Plans, as soon as
practicable, but no more than 30 days after completion of the drilling
operation, 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 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 accordingly update BOEM's records. 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.
To earn the eight-year primary term, the lessee is required to
submit a letter to the BOEM GOM Regional Supervisor, Office of Leasing
and Plans, as soon as practicable, but no more than 30 days after
spudding a well, providing the well number and spud date, and
requesting confirmation that the lessee has 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 accordingly update BOEM's records. 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.
To earn the 10-year primary term, the lessee is required to submit
a letter to the BOEM GOM Regional Supervisor, Office of Leasing and
Plans, as soon as practicable, but no more than 30 days after spudding
a well, providing the well number and spud date, and requesting
confirmation that the lessee has earned the 10-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 accordingly
update BOEM's records. 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 10 years.
Economic Conditions
Minimum Bonus Bid Amounts
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,
as described below.
$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.
[[Page 8013]]
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, regulations implementing the
requirements of the Energy Policy Act of 2005 (Pub. L. 109-58, 119
Stat. 594 (2005)), 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 an 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.
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) 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 254, March 18, 2020, 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 Inspection and
Enforcement of Certain U.S. Coast Guard 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 can be viewed on BOEM's
website at https://www.boem.gov/Sale-254/. The following maps are also
included in the Final NOS package:
[[Page 8014]]
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 254, March 18, 2020, 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
254, March 18, 2020, 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. Prior to bid submittal, bidders submitting
their bid(s) in person are advised to email [email protected]
to provide the names of the company representative(s) submitting the
bid(s). Instructions on how to submit a bid, secure payment of the
advance bonus bid deposit (if applicable), and the information to 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
percent);
Typed name and title, and signature of each bidder's
authorized officer;
Each bidder's qualification number;
Map name and number or 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 the requirement 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 the bid as the high bid.
The information required for each bid is specified in the document
``Bid Form'' that is available in the Final NOS package, which can be
found at https://www.boem.gov/Sale-254/. A blank bid form is provided in
the Final NOS package for convenience and can 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 254, not to be
opened until 9 a.m. Wednesday, March 18, 2020:''
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 254. Please Deliver
to Mrs. Bridgette Duplantis or Mr. Greg Purvis, 2nd Floor, Immediately.
Please Note: Bidders mailing bid(s) are advised to inform BOEM by
email at [email protected] immediately after placing bid(s)
in the mail. This provides 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 will return those bids unopened to bidders. Please see
``Section XI. Delay of Sale'' regarding BOEM's discretion to extend the
Bid Submission Deadline in the case of an unexpected event (e.g.,
flooding or travel restrictions) and how bidders can obtain more
information on such extensions.
Advance Bonus Bid Deposit Guarantee
Bidders that are not currently OCS oil and gas lease record title
holders, 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 of bid submittal, a confirmation or
tracking number for an EFT payment, the name of the company submitting
the payment as it appears on the payment, and the date the payment was
submitted so BOEM can confirm payment with the Office of Natural
Resources Revenue (ONRR). Submitting payment to the bidders' financial
institution at least five business days prior to bid submittal helps
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 payments so they are posted to ONRR prior to placing
the bid. ONRR cannot confirm payment until the monies have been moved
into settlement status by the U.S. Treasury. Bids will not be accepted
if BOEM cannot confirm payment with ONRR. For more information on EFT
procedures, see Section X of this document entitled, ``The Lease
Sale.''
If 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, bidders are urged to file the
same documents with BOEM, well in advance of submitting the bid, to
allow processing time and for bidders to take any necessary curative
actions prior to bid submission.
Affirmative Action
Prior to bidding, each bidder should file the Equal Opportunity
Affirmative Action Representation Form BOEM-2032 (October 2011,
available on BOEM's website at https://www.boem.gov/BOEM-2032/) and each
bidder must file the Equal Opportunity Compliance Report Certification
Form BOEM-2033 (October 2011, available on BOEM's website at https://www.boem.gov/BOEM-2033/) with the BOEM GOM Adjudication Section. This
certification is required by 41 CFR part 60 and Executive Order (E.O.)
11246, issued September 24, 1965, as amended by E.O. 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) A ``Statement'' page that includes the company representatives'
information and lists of blocks bid on that used proprietary data and
those blocks bid upon that did not use proprietary data;
[[Page 8015]]
(2) A ``Table'' listing the required data about each proprietary
survey used (see below); and
(3) ``Maps,'' which contain 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
254 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 sealed
envelope, and must identify all proprietary data; reprocessed
speculative data, and/or any Controlled Source Electromagnetic surveys,
Amplitude Versus Offset (AVO) data, 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(s) must also include a live
trace map (e.g., .pdf and ArcGIS shapefile) for each proprietary survey
identified 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
resources information; only the live trace map of the survey itself.
The GDIS statement must include the name, phone number, and full
address for 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.
An example of the preferred format of the table is included in the
Final NOS package, and a blank digital version of the preferred table
can be accessed on the GOM Region-wide Sale 254 web page at https://www.boem.gov/Sale-254. The GDIS table should have columns that clearly
state the following:
The sale number;
The bidder company's name;
The joint bidder's company's name (if applicable);
The company providing Proprietary Data to BOEM;
The block area and block number bid upon;
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; time or depth);
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 the final reprocessing was completed (month and
year);
If data were 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 prior to the
sale;
Whether AVO/AVA is time or depth (PSTM or PSDM);
Which angled stacks were used (e.g., NEAR, MID, FAR,
ULTRAFAR);
Whether the company used Gathers to evaluate the block in
question; and
Whether the 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 to estimate 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.
BOEM reserves the right to inquire about alternate data sets, to
perform quality checks, 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.
The GDIS maps are live trace maps (e.g., .pdf and ArcGIS
shapefiles) that bidders should submit for each proprietary survey
identified in the GDIS table. The maps 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
shapefile must not include cultural resources 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 GOM 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 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 specifically
requested by BOEM. The BOEM GOM 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 GOM 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 are 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, Louisiana 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 254 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) 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
[[Page 8016]]
an entity's records. The website for registering is gsa.gov/iaesystems.
(2) 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 submitting a request for
payment, the assigned Purchase Order Number must be included.
(3) Must have a current On-line Representations and Certifications
Application at gsa.gov/iaesystems.
Please Note: A digital as well as a printed copy should be sent in
for the GDIS Statement, Table and Maps. The GDIS Statement should be
sent in as a digital PDF. The GDIS Information Table must be submitted
digitally as an Excel spreadsheet. The Proprietary Maps should be sent
in as PDF files and the live trace outline of each proprietary survey
should also be submitted as a shapefile. Bidder may submit the digital
files on a CD, DVD, or any USB external drive (formatted for Windows).
If bidders have any questions, please contact Ms. Dee Smith at (504)
736-2706, or Ms. Teree Campbell at (504) 736-3231.
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 submittal. 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 November 5, 2019, BOEM published the most recent List of
Restricted Joint Bidders in the Federal Register at 84 FR 59644.
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
regulations 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 apparent 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, which
prohibits 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 GOM RD,
or the RD's designee, will indicate 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 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 items listed below. 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 can be obtained on the BOEM website at https://www.boem.gov/Sale-254 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 electronically deposited 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 254, 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
[[Page 8017]]
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 254
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 on
BOEM's website 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 complete the
following:
(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 GOM 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 GOM RD deems could interfere with a fair and orderly
lease sale process. Such events could include, but are not limited to,
natural disasters (e.g., earthquakes, hurricanes, 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. 2020-02716 Filed 2-11-20; 8:45 am]
BILLING CODE 4310-MR-P
