Gulf of Mexico Outer Continental Shelf Region-Wide Oil and Gas Lease Sale 256, 66348-66355 [2020-23077]

Agencies

• DEPARTMENT OF THE INTERIOR
• Bureau of Ocean Energy Management

[Federal Register Volume 85, Number 202 (Monday, October 19, 2020)]
[Notices]
[Pages 66348-66355]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-23077]


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

DEPARTMENT OF THE INTERIOR

Bureau of Ocean Energy Management

[Docket No. BOEM-2020-0050]


Gulf of Mexico Outer Continental Shelf Region-Wide Oil and Gas 
Lease Sale 256

AGENCY: Bureau of Ocean Energy Management, Interior.

ACTION: Final notice of sale.

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

SUMMARY: On Wednesday, November 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 256 (GOM Region-wide Sale 
256), 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 256 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 256 at 9:00 a.m. on 
Wednesday, November 18, 2020. All times referred to in this document 
are Central standard time, unless otherwise specified.
    Bid submission deadline: BOEM must receive all sealed bids prior to 
the Bid Submission Deadline of 10:00 a.m. on Tuesday, November 17, 
2020, the day before the lease sale. Bids may be submitted between 8:00 
a.m. and 4:00 p.m. on normal working days, until the Bid Submission 
Deadline. For more information on bid submission, see Section VII, 
``Bidding Instructions,'' of this document.

ADDRESSES: Bids will be accepted BY MAIL ONLY, prior to the bid 
submission deadline, at 1201 Elmwood Park Boulevard, New Orleans, 
Louisiana 70123. Public bid reading for GOM Region-wide Sale 256 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-256/ 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-

[[Page 66349]]

256/. 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: The New Orleans Office Lease Sale 
Coordinators at [email protected], 504-736-7502 or 504-736-
1729.

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. The BOEM Official 
Protraction Diagrams (OPDs) and Supplemental Official Block Diagrams 
are available online at https://www.boem.gov/Maps-and-GIS-Data/.
     Whole and Partial Blocks within the Flower Garden Banks 
National Marine Sanctuary (East and West Flower Garden Banks and the 
Stetson Bank):

------------------------------------------------------------------------
             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:

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; 
N1/2NW1/4SW1/4SE1/4SE1/4
NE1/4; 
N1/2SE1/4SW1/4SE1/4NE1/4
; 
N1/2S1/2SE1/4SW1/4SE1/4
NE1/4; S1/2NE1/4NW1/4; 
S1/2S1/2N1/2NE1/4NW1/4
; 
N1/2SE1/4NW1/4;S1/2SE1/4
NW1/4NW1/4; NE1/4SE1/4 
NW1/4NW1/4; 
E1/2NE1/4SW1/4NW1/4; 
N1/2SE1/4SE1/4NW1/4; 
NE1/4SW1/4SE1/4NW1/4; 
N1/2NW1/4SW1/4SE1/4NW1/4
; SE1/4SE1/4SE1/4NW1/4; 
E1/2SW1/4SE1/4SE1/4NW1/4
; 
N1/2NW1/4NE1/4SW1/4NW1/4
; 
N1/2S1/2NW1/4NE1/4SW1/4
NW1/4; 
N1/2N1/2NE1/4NE1/4NE1/4
SW1/4; 
N1/2N1/2N1/2NW1/4NW1/4
SE1/4; 
N1/2N1/2NW1/4NE1/4NW1/4
SE1/4.

     The following whole or partial blocks, whose lease status 
is currently under appeal:

[[Page 66350]]



------------------------------------------------------------------------
             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.
Alaminos Canyon (OPN LN15-04)  557, 601.
------------------------------------------------------------------------

     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 the Final NOS.
    The list of blocks available can be found under the Sale 256 link 
at https://www.boem.gov/Sale-256 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 
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 5 years; the lessee
                                may earn an additional 3 years (i.e.,
                                for an 8-year extended primary term) if
                                a well is spudded targeting hydrocarbons
                                below 25,000 feet True Vertical Depth
                                Subsea (TVDSS) during the first 5 years
                                of the lease.
400 to <800..................  The primary term is 5 years; the lessee
                                will earn an additional 3 years (i.e.,
                                for an 8-year extended primary term) if
                                a well is spudded during the first 5
                                years of the lease.
800+.........................  10 years.
------------------------------------------------------------------------

    (1) The primary term for a lease in water depths less than 400 
meters issued as a result of this sale is 5 years. If the lessee spuds 
a well targeting hydrocarbons below 25,000 feet TVDSS within the first 
5 years of the lease, then the lessee may earn an additional 3 years, 
resulting in an 8-year primary term. The lessee will earn the 8-year 
primary term when the well is drilled to a target below 25,000 feet 
TVDSS, or the lessee may earn the 8-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 8-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 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 8-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 8-year primary term by spudding a well 
with a hydrocarbon target below 25,000 feet TVDSS during the standard 
5-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 5 years. If 
the lessee spuds a well within the 5-year primary term of the lease, 
the lessee will earn an additional 3 years, resulting in an 8-year 
primary term. To earn the 8-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 earned the 8-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.
    (3) The primary term for a lease in water depths 800 meters or 
deeper issued as a result of this sale is 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

[[Page 66351]]

specified minimum bid, as described below.
     $25 per acre or fraction thereof for blocks in water 
depths less than 400 meters; and
     $100 per acre or fraction thereof for blocks in water 
depths 400 meters or deeper.
Rental Rates
    Annual rental rates are summarized in the following table:

                Rental Rates per Acre or Fraction Thereof
------------------------------------------------------------------------
       Water depth (meters)         Years 1-       Years 6, 7, & 8+
----------------------------------------5-------------------------------
0 to <200.........................        $7  $14, $21, & $28.
200 to <400.......................        11  $22, $33, & $44.
400+..............................        11  $16.
------------------------------------------------------------------------

Escalating Rental Rates for Leases With an 8-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 8-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 per acre or fraction thereof per year for blocks in 
water depths less than 200 meters; and
     $11 per acre or fraction thereof per year for blocks in 
water depths 200 meters or deeper.
Royalty Suspension Provisions
    The issuance of leases with Royalty Suspension Volumes (RSVs) or 
other forms of royalty relief is authorized under existing BOEM 
regulations at 30 CFR part 560. The specific details relating to 
eligibility and implementation of the various royalty relief programs, 
including those involving the use of RSVs, are codified in Bureau of 
Safety and Environmental Enforcement (BSEE) regulations at 30 CFR part 
203. In this sale, the only royalty relief program being offered that 
involves the provision of RSVs relates to the drilling of ultra-deep 
wells in water depths of less than 400 meters, as described in the 
following section.
Royalty Suspension Volumes on Gas Production From Ultra-Deep Wells
    Pursuant to 30 CFR part 203, certain leases issued as a result of 
this sale may be eligible for RSV incentives on gas produced from 
ultra-deep wells. Under this program, wells on leases in less than 400 
meters water depth and completed to a drilling depth of 20,000 feet 
TVDSS or deeper receive 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. These 
regulations implement the requirements of the Energy Policy Act of 2005 
(Pub. L. 109-58, 119 Stat. 594 (2005)).

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 nine 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 256, November 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
(11) Timeframe for Decisions on an Application for Permit to Drill and 
an Application for Permit to Modify

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
(20) Provisions Pertaining to Certain Transactions by Foreign Persons 
Involving Real Estate in the United States

VI. Maps

    The maps pertaining to this lease sale can be viewed on BOEM's 
website at https://www.boem.gov/Sale-256/. The following maps also are 
included in the Final NOS package:

Lease Terms and Economic Conditions Map

    The lease terms and economic conditions associated with leases of 
certain blocks are shown on the map entitled ``Gulf of Mexico Region-
wide Oil and Gas Lease Sale 256, November 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 
256, November 2020, Stipulations and Deferred Blocks Map.''

[[Page 66352]]

VII. Bidding Instructions

    Bids may be submitted BY MAIL ONLY at the address below in the 
``Mailed Bids'' section. Bidders should be aware that BOEM has 
eliminated in-person bidding for Lease Sale 256. 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 high bids.
    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-256/. 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 256, not to be 
opened until 9 a.m. Wednesday, November 18, 2020;''
     Map name and number or OPD name and number;
     Block number for block bid upon;
     Acreage, if the bid is for a block that is split between 
the Central and Eastern Planning Areas; 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

    Please address the envelope containing the sealed bid envelope(s) 
as follows:
    Attention: Leasing and Financial Responsibility Section, BOEM New 
Orleans Office, 1201 Elmwood Park Boulevard MS-266A, New Orleans, 
Louisiana 70123-2394.
    Contains Sealed Bids for GOM Region-wide Sale 256. lease 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 (RD) will return those bids unopened to bidders. 
Please see ``Section XI. Delay of Sale'' regarding BOEM's discretion 
to extend the Bid Submission Deadline in the case of an unexpected 
event (e.g., flooding) and how bidders can obtain more information 
on such extensions.

Advance Bonus Bid Deposit Guarantee

    Bidders that are not currently an OCS oil and gas lease record 
title holder or designated operator, or those that ever have defaulted 
on a one-fifth bonus bid deposit, by Electronic Funds Transfer (EFT) or 
otherwise, must guarantee (secure) the payment of the one-fifth bonus 
bid deposit prior to bid submission using one of the following four 
methods:
     Provide a third-party guarantee;
     Amend an 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 the 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.
    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. For more information on EFT 
procedures, see Section X of this document entitled, ``The Lease 
Sale.''

Affirmative Action

    Prior to bidding, each bidder should file the Equal Opportunity 
Affirmative Action Representation Form BOEM-2032 (February 2020, 
available on BOEM's website at https://www.boem.gov/BOEM-2032/) and 
Equal Opportunity Compliance Report Certification Form BOEM-2033 
(February 2020, 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;
    (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 
256 or participating as a joint bidder in such a bid, must submit at 
the time of bid submission all three parts of the GDIS. A bidder must 
submit the GDIS even if a joint bidder or bidders on a specific block 
also have submitted a GDIS. Any speculative data that has been 
reprocessed externally or ``in-house'' is considered proprietary due to 
the proprietary processing and is no longer considered to be 
speculative.
    The bidder or bidders must submit the GDIS in a separate and sealed 
envelope, and must identify all proprietary data; reprocessed 
speculative data, and/or any Controlled

[[Page 66353]]

Source Electromagnetic surveys, Amplitude Versus Offset (AVO) data, 
Gravity data, or Magnetic data; or other information used as part of 
the decision to bid or participate in a bid on the block. The bidder 
and joint bidder must also include a live trace map (e.g., .pdf and 
ArcGIS 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 256 webpage at https://www.boem.gov/Sale-256. 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 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. No reimbursement will be provided for unsolicited 
data sent to 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: ``Geophysical Data and Information 
Statement for Oil and Gas Lease Sale 256'', Company Name, GOM Company 
Qualification Number, and ``Proprietary Data.''
    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 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 hardcopy 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.

[[Page 66354]]

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. Please flatten all layered PDF files, since layered 
PDFs can have many objects. Layered PDFs can cause problems opening 
or printing the file correctly. Bidders 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 submission. The 
suggested format is included in the Final NOS package. The form must 
not be enclosed inside the sealed bid envelope.

Additional Documentation

    BOEM may require bidders to submit other documents in accordance 
with 30 CFR 556.107, 30 CFR 556.401, 30 CFR 556.501, and 30 CFR 
556.513.

VIII. Bidding Rules and Restrictions

Restricted Joint Bidders

    On September 24, 2020, BOEM published the most recent List of 
Restricted Joint Bidders in the Federal Register at 85 FR 60266. 
Potential bidders are advised to refer to the Federal Register, prior 
to bidding, for the most current List of Restricted Joint Bidders in 
place at the time of the lease sale. Please refer to the joint bidding 
provisions at 30 CFR 556.511-515.

Authorized Signatures

    All signatories executing documents on behalf of bidder(s) must 
execute the same in conformance with the BOEM qualification records. 
Bidders are advised that BOEM considers the signed bid to be a legally 
binding obligation on the part of the bidder(s) to comply with all 
applicable regulations, including that requiring payment of one-fifth 
of the bonus bid on all high bids. A statement to this effect is 
included on each bid form (see the document ``Bid Form'' that is 
included in the Final NOS package).

Unlawful Combination or Intimidation

    BOEM warns bidders against violation of 18 U.S.C. 1860, 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 
is 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 will round up to 
the next whole acre. The appropriate minimum rate per acre will be 
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-256 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 256, following the 
detailed instructions contained on the ONRR Payment Information web 
page at https://www.onrr.gov/ReportPay/payments.htm. Acceptance of a 
deposit does not constitute, and will not be construed as, acceptance 
of any bid on behalf of the United States.

Withdrawal of Blocks

    The United States reserves the right to withdraw any block from 
this lease sale prior to issuance of a written acceptance of a bid for 
the block.

Acceptance, Rejection, or Return of Bids

    The United States reserves the right to reject any and all bids. No 
bid will be accepted, and no lease for any block will be awarded to any 
bidder, unless:
    (1) The bidder has complied with all applicable regulations and 
requirements of the Final NOS, including those set forth in the 
documents contained in the Final NOS package;
    (2) The bid is the highest valid bid; and

[[Page 66355]]

    (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 256

    To ensure that the U.S. Government receives fair market value 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. 2020-23077 Filed 10-16-20; 8:45 am]
BILLING CODE 4310-MR-P