Gulf of Mexico Outer Continental Shelf Oil and Gas Lease Sale 257, 54728-54734 [2021-21682]

Agencies

• DEPARTMENT OF THE INTERIOR
• Bureau of Ocean Energy Management

[Federal Register Volume 86, Number 189 (Monday, October 4, 2021)]
[Notices]
[Pages 54728-54734]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-21682]



[[Page 54728]]

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DEPARTMENT OF THE INTERIOR

Bureau of Ocean Energy Management

[Docket No. BOEM-2021-0005]


Gulf of Mexico Outer Continental Shelf Oil and Gas Lease Sale 257

AGENCY: Bureau of Ocean Energy Management, Interior.

ACTION: Final notice of sale.

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SUMMARY: On Wednesday, November 17, 2021, 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) Oil and Gas Lease Sale 257 (GOM Lease Sale 257), in accordance 
with the provisions of the Outer Continental Shelf Lands Act (OCSLA), 
as amended, and the implementing regulations issued pursuant thereto. 
The GOM Lease Sale 257 Final Notice of Sale (NOS) package contains 
information essential to potential bidders and consists of the Final 
NOS, Information to Lessees, and Lease Stipulations.

DATES: BOEM will hold GOM Lease Sale 257 at 9:00 a.m. on Wednesday, 
November 17, 2021. All times referred to in this document are Central 
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 16, 
2021, the day before the lease sale. For more information on bid 
submission, see Section VII, ``Bidding Instructions,'' of this 
document.

ADDRESSES: Bids will be accepted by MAIL ONLY through any parcel 
delivery service (e.g., FedEx, UPS, USPS, DHL), prior to the bid 
submission deadline, at 1201 Elmwood Park Boulevard, New Orleans, 
Louisiana 70123 (see section VII. Bidding Instructions). Bids will not 
be accepted in person or by email for any reason. Public bid reading 
for GOM Lease Sale 257 will be held at 1201 Elmwood Park Boulevard, New 
Orleans, Louisiana 70123, 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 https://www.boem.gov/Sale-257 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-257. 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 Gregory 
Purvis, 504-736-1729.
    Authority: This notice of sale is published pursuant to 43 U.S.C. 
1331 et seq. (Outer Continental Shelf Lands Act, as amended) and 30 CFR 
556.308(a)).

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Lease Sale Area
II. Statutes and Regulations
III. Lease and Fiscal Terms
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 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.\1\
---------------------------------------------------------------------------

    \1\ 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 as of the July 2008 Memorandum on Withdrawal of Certain 
Areas of U.S. OCS from Leasing Disposition):

------------------------------------------------------------------------
               Area                               OCS block
------------------------------------------------------------------------
High Island, East Addition, South   Whole Block: A-398.
 Extension (Leasing Map TX7C).      Partial Blocks: A-366, A-367, A-374,
                                     A-375, A-383, A-384, A-385, A-388,
                                     A-389, A-397, A-399, A-401.
High Island, South Addition         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:

[[Page 54729]]



------------------------------------------------------------------------
               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
------------------------------------------------------------------------
Vermillion Area (Leasing Map LA3).........  Partial Block 179.
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 the Final NOS.
    The list of blocks available can be found on BOEM's web page at 
https://www.boem.gov/sale-257 under the Final NOS tab.

II. Statutes and Regulations

    Each lease is issued pursuant to OCSLA, 43 U.S.C. 1331 et seq., as 
amended, and 30 CFR part 556, and is subject to OCSLA, implementing 
regulations promulgated pursuant thereto, and other applicable statutes 
and regulations in existence upon the effective date of the lease, as 
well as those applicable statutes enacted and regulations promulgated 
thereafter, except to the extent that the after-enacted statutes and 
regulations explicitly conflict with an express provision of the lease. 
Each lease 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. BOEM 
reserves the right to reject any and all bids received, regardless of 
the amount offered (see 30 CFR 556.516).

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

[[Page 54730]]

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 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 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 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 1-5                    Years 6, 7, & 8+
----------------------------------------------------------------------------------------------------------------
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

    One or more of the stipulations below may be applied to leases 
issued as a result of this sale. The applicable blocks for each 
stipulation are identified on the map ``Final Gulf of Mexico Oil and 
Gas Lease Sale 257, November 2021, 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

[[Page 54731]]

(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) 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-257. 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, ``Final Gulf of Mexico 
Oil and Gas Lease Sale 257, November 2021, 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, ``Final Gulf of Mexico Oil and Gas Lease Sale 257, 
November 2021, Stipulations and Deferred Blocks Map.''

VII. Bidding Instructions

    Bids may be submitted BY MAIL ONLY through any parcel delivery 
service (e.g., FedEx, UPS, USPS, DHL) at the address below in the 
``Mailed Bids'' section. Bidders should be aware that BOEM has 
eliminated in-person bidding for Lease Sale 257. 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 items:
     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. Electronic signatures are acceptable. The typed 
name, title, and signature must agree exactly with the name and title 
on file in the BOEM Gulf of Mexico OCS Region Adjudication Section;
     Each bidder's BOEM 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-257/. 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 Lease Sale 257, not to be opened 
until 9 a.m. Wednesday, November 17, 2021'';
     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 Lease Sale 257
Please Deliver to Mr. Greg Purvis or Ms. Kathy Luckado
2nd Floor, Immediately

    Please Note: Bidders 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. In the email, please state the tracking 
number of the bid package, the number of bids being submitted, and the 
email address of the person who should receive the bid receipt for 
signature. 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 have ever defaulted 
on a one-fifth bonus bid deposit, must guarantee (secure) the payment 
of the one-fifth bonus bid deposit, by Electronic Funds Transfer (EFT) 
or otherwise, prior to bid submission using one of the following four 
methods:
     Provide a third-party guarantee;

[[Page 54732]]

     Amend a development stage area-wide 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 a development stage 
area-wide bond via bond rider, or providing a letter of credit to 
secure your one-fifth bonus bid deposit, bidders are urged to file 
these 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 E.O. 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 separate 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 Lease Sale 257 or 
participating as a joint bidder in such a bid, must submit at the time 
of bid submission all three parts of the GDIS. A bidder must submit the 
GDIS even if a joint bidder or bidders on a specific block also have 
submitted a GDIS. Any speculative data that has been reprocessed 
externally or ``in-house'' is considered proprietary due to the 
proprietary processing and is no longer considered to be speculative.
    The bidder or bidders must submit the GDIS in a separate and sealed 
envelope and must identify all proprietary data; reprocessed 
speculative data, and/or any Controlled Source Electromagnetic surveys, 
Amplitude Versus Offset (AVO) data, gravity data, and/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 must 
also 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 Lease Sale 257 web page at https://www.boem.gov/Sale-257/. 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

[[Page 54733]]

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 
bidders submit the data in an internal envelope, or otherwise marked, 
with the following designation: ``Geophysical Data and Information 
Statement for Oil and Gas Lease Sale 257'', 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; to enroll go to 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: Digital copies and duplicate hardcopies should be 
submitted 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. 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 April 26, 2021, BOEM published the most recent List of 
Restricted Joint Bidders in the Federal Register at 86 FR 22067. 
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 556.511-556.515.

Authorized Signatures

    All signatories executing documents on behalf of the 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 via any parcel delivery service. 
Withdrawals will not be accepted in person or via email. 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 will round up to 
the next whole acre. The

[[Page 54734]]

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, as 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-257/ 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 Lease Sale 257, 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, 
regardless of the amount offered. Furthermore, 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 any antitrust issues prior to 
the acceptance of bids and issuance of leases.

Bid Adequacy Review Procedures for GOM Lease Sale 257

    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.

Amanda B. Lefton,
Director, Bureau of Ocean Energy Management.
[FR Doc. 2021-21682 Filed 9-30-21; 12:30 pm]
BILLING CODE 4310-MR-P