Outer Continental Shelf (OCS) Western Planning Area (WPA) Gulf of Mexico (GOM) Oil and Gas Lease Sale 218
Federal Register Nbr. 76 FR 70473, November 14, 2011 › Notices › Ocean Energy Management Boem Bureau
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Summary
On Wednesday, December 14, 2011, BOEM will open and publicly announce bids received for the blocks offered in WPA Oil and Gas Lease Sale 218, in accordance with provisions of the OCS Lands Act (OSCLA) (43 U.S.C. 1331-1356, as amended) and the regulations issued thereunder (30 CFR Part 556). The Final NOS 218 Package (Package) contains information essential to potential bidders, and bidders are charged with the knowledge of the documents contained in the Package. Sale 218 includes five changes from WPA Sale 210 in August 2009: (1) BOEM revised the initial period of the lease term for blocks in water depths of 400 meters to less than 1,600 meters, (2) the minimum bonus bid has increased for blocks in water depths of 400 meters or deeper, (3) no deepwater royalty suspension provisions will be offered for leases issued from this sale, (4) bids submitted for blocks within the U.S.-Mexico ``Boundary Area'' will be held unopened until on or before 30 days following a Transboundary Agreement is executed or June 14, 2012, as explained below, and (5) the lease form has been revised.
Text
Federal Register, Volume 76 Issue 219 (Monday, November 14, 2011)
Federal Register Volume 76, Number 219 (Monday, November 14, 2011)
Notices
Pages 70473-70478
From the Federal Register Online via the Government Printing Office www.gpo.gov
FR Doc No: 2011-29340
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DEPARTMENT OF THE INTERIOR
Bureau of Ocean Energy Management (BOEM)
Outer Continental Shelf (OCS) Western Planning Area (WPA) Gulf of Mexico (GOM) Oil and Gas Lease Sale 218
AGENCY: Bureau of Ocean Energy Management, Interior.
ACTION: Final notice of sale.
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SUMMARY: On Wednesday, December 14, 2011, BOEM will open and publicly announce bids received for the blocks offered in WPA Oil and Gas Lease Sale 218, in accordance with provisions of the OCS Lands Act (OSCLA) (43 U.S.C. 1331-1356, as amended) and the regulations issued thereunder (30 CFR Part 556). The Final NOS 218 Package (Package) contains information essential to potential bidders, and bidders are charged with the knowledge of the documents contained in the Package.
Sale 218 includes five changes from WPA Sale 210 in August 2009: (1) BOEM revised the initial period of the lease term for blocks in water depths of 400 meters to less than 1,600 meters, (2) the minimum bonus bid has increased for blocks in water depths of 400 meters or deeper, (3) no deepwater royalty suspension provisions will be offered for leases issued from this sale, (4) bids submitted for blocks within the U.S.-Mexico ``Boundary Area'' will be held unopened until on or before 30 days following a Transboundary Agreement is executed or June 14, 2012, as explained below, and (5) the lease form has been revised.
DATES: Public bid reading for the WPA Oil and Gas Lease Sale 218 will begin at 9 a.m., Wednesday, December 14, 2011, at the Louisiana Superdome, 1500 Sugarbowl Drive, New Orleans, Louisiana 70112. All times referred to in this document are local New Orleans times, unless otherwise specified.
ADDRESSES: Interested parties can obtain a Package by contacting BOEM at: Gulf of Mexico Region Public Information Unit, Bureau of Ocean Energy Management, 1201 Elmwood Park Boulevard, New Orleans, Louisiana 70123-2394, (504) 736-2519 or (800) 200-GULF, http://www.gomr.boem.gov.
Filing of Bids: Bidders must submit sealed bids to the Regional Director (RD), BOEM Gulf of Mexico Region, 1201 Elmwood Park Boulevard, New Orleans, Louisiana, 70123-2394, between 8 a.m. and 4 p.m. on normal working days, and from 8 a.m. to the Bid Submission Deadline of 10 a.m. on Tuesday, December 13, 2011, the day before the lease sale. If bids are mailed, please address the envelope containing all of the sealed bids as follows:
Attention: Chief, Leasing and Financial Responsibility Section, BOEM, Gulf of Mexico Region, 1201 Elmwood Park Boulevard, New Orleans, Louisiana 70123-2394, Contains Sealed Bids for WPA Oil and Gas Lease Sale 218, Please Deliver to Ms. Nancy Kornrumpf, 6th Floor, Immediately.
Please Note: 1. Bidders mailing bid(s) are advised to call Ms. Nancy Kornrumpf at (504) 736-2726 or Ms. Cindy Thibodeaux at (504) 736-2809 immediately after putting their bid(s) in the mail. If the RD receives bids later than the time and date specified above, he will return those bids unopened to bidders. Should an unexpected event such as flooding or travel restrictions be significantly disruptive to bid submission, BOEM may extend the Bid Submission Deadline. Bidders may call (504) 736-0557 or access our BOEM Gulf of Mexico Internet Web site at: http://www.gomr.boem.gov for information about the possible extension of the Bid Submission Deadline due to such an event.
2. Blocks or portions of blocks beyond the United States (U.S.) Exclusive Economic Zone are offered based upon provisions of the 1982 Law of the Sea Convention, and could be subject to a continental shelf delimitation agreement between the United States and Mexico. Bidders are advised to refer to the Bids on Blocks Near U.S.-Mexico Maritime and Continental Shelf Boundary portion of this document for detailed information pertaining to the opening of bids affecting blocks in this area.
Areas Offered for Leasing: In WPA Oil and Gas Lease Sale 218, BOEM is offering to lease all blocks and partial blocks listed in the document ``List of Blocks Available for Leasing'' included in the Final NOS 218 Package. All of these blocks are shown on the following leasing maps and Official Protraction Diagrams (OPD's):
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Outer Continental Shelf Leasing Maps--Texas Map Numbers 1 Through 8
(These 16 maps sell for $2.00 each.)
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TX1......................................... South Padre Island Area (revised November 1, 2000).
TX1A........................................ South Padre Island Area, East Addition (revised November 1, 2000).
TX2......................................... North Padre Island Area (revised November 1, 2000).
TX2A........................................ North Padre Island Area, East Addition (revised November 1, 2000).
TX3......................................... Mustang Island Area (revised November 1, 2000).
TX3A........................................ Mustang Island Area, East Addition (revised September 3, 2002).
TX4......................................... Matagorda Island Area (revised November 1, 2000).
TX5......................................... Brazos Area (revised November 1, 2000).
TX5B........................................ Brazos Area, South Addition (revised November 1, 2000).
TX6......................................... Galveston Area (revised November 1, 2000).
TX6A........................................ Galveston Area, South Addition (revised November 1, 2000).
TX7......................................... High Island Area (revised November 1, 2000).
TX7A........................................ High Island Area, East Addition (revised November 1, 2000).
TX7B........................................ High Island Area, South Addition (revised November 1, 2000).
TX7C........................................ High Island Area, East Addition, South Extension (revised November
1, 2000).
TX8......................................... Sabine Pass Area (revised July 1, 2011).
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Outer Continental Shelf Leasing Maps--Louisiana Map Numbers 1A, 1B, and 12
(These 3 maps sell for $2.00 each.)
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LA1A........................................ West Cameron Area, West Addition (revised February 28, 2007).
LA1B........................................ West Cameron Area, South Addition (revised February 28, 2007).
LA12........................................ Sabine Pass Area (revised February 28, 2007).
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Outer Continental Shelf Official Protraction Diagrams
(These 7 diagrams sell for $2.00 each.)
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NG14-03..................................... Corpus Christi (revised November 1, 2000).
NG14-06..................................... Port Isabel (revised November 1, 2000).
NG15-01..................................... East Breaks (revised November 1, 2000).
NG15-02..................................... Garden Banks (revised February 28, 2007).
NG15-04..................................... Alaminos Canyon (revised November 1, 2000).
NG15-05..................................... Keathley Canyon (revised February 28, 2007).
NG15-08..................................... Sigsbee Escarpment (revised February 28, 2007).
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Please note: A CD-ROM (in ARC/INFO and Acrobat (.pdf) format) containing all of the GOM leasing maps and OPD's, except for those not yet converted to digital format, is available from BOEM Gulf of Mexico Region Public Information Unit for a price of $15. These GOM leasing maps and OPD's are also available for free online in .pdf and .gra format at http://www.gomr.boem.gov/homepg/lsesale/map_arc.html.
For the current status of all GOM WPA leasing maps and OPD's, please refer to 66 FR 28002 (published May 21, 2001), 67 FR 60701 (published September 26, 2002), and 72 FR 27590 (published May 16, 2007). In addition, Supplemental Official OCS Block Diagrams (SOBD's) for these blocks are available which contain the U.S. 200 Nautical Mile Limit line and the U.S.-Mexico Maritime and Continental Shelf Boundary line. These SOBD's are also available from BOEM Gulf of Mexico Region Public Information Unit. For additional information, please call the Mapping and Automation Section at (504) 736-5768.
All blocks are shown on these leasing maps and OPD's. The available Federal acreage of all whole and partial blocks in this lease sale is shown in the document ``List of Blocks Available for Leasing'' included in the Final NOS 218 Package. Some of these blocks may be partially leased or deferred, or transected by administrative lines such as the Federal/state jurisdictional line. A bid on a block must include all of the available Federal acreage of that block. Also, information on the unleased portions of such blocks is found in the document ``Western Planning Area, Lease Sale 218, December 14, 2011--Unleased Split Blocks and Available Unleased Acreage of Blocks with Aliquots and Irregular Portions Under Lease or Deferred'' included in the Final NOS 218 Package.
Areas Not Available for Leasing: The following whole and partial blocks are not offered for lease in this sale:
Whole blocks and portions of blocks that lie within the boundaries of the Flower Garden Banks National Marine Sanctuary at the East and West Flower Garden Banks and Stetson Bank (the following list includes all blocks affected by the Sanctuary boundaries):
High Island, East Addition, South Extension (Leasing Map TX7C)
Whole Block: A-398
Portions of 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
*Leased
High Island, South Addition (Leasing Map TX7B)
Portions of Blocks: A-502, A-513
Garden Banks (OPD NG15-02)
Portions of Blocks: 134, 135
Whole blocks and portions of blocks that lie within the former Western Gap and lie within the 1.4 nautical mile north of the continental shelf boundary between the United States and Mexico:
Keathley Canyon (OPD NG15-05)
Portions of Blocks: 978 through 980
Sigsbee Escarpment (OPD NG15-08)
Whole Blocks: 11, 57, 103, 148, 149, 194
Portions of Blocks: 12 through 14, 58 through 60, 104 through 106, 150
Blocks currently under appeal (although currently unleased, the following blocks are under appeal and bids will not be accepted):
Garden Banks (NG15-02)
Blocks 623 and 624
Note: Bids on Blocks Near the U.S.-Mexico Maritime and Continental Shelf Boundary. Due to ongoing negotiations with the Government of Mexico on a Transboundary Agreement, bids submitted on any block in the ``Boundary Area'' as defined below will be segregated from bids submitted on blocks outside the Boundary Area. Bids submitted on blocks outside the Boundary Area will be opened on the date scheduled for sale, as is normally the practice. Bids submitted on blocks in the Boundary Area will not be opened on the date scheduled for the sale, but may be opened at a later date. On or before 30 days following execution of a Transboundary Agreement or June 14, 2012, whichever occurs first, the Secretary of the Interior will determine whether it is in the best interest of the United States either to open bids for Boundary Area blocks or to return the bids unopened.
BOEM will notify bidders at least 30 days prior to bid opening. Bidders on these blocks may withdraw their bids at any time after such notice and prior to 10 a.m. (New Orleans local time) of the day before bid opening. If BOEM does not give notice by 30 days after execution of a Transboundary Agreement or by June 14, 2012, whichever occurs first, BOEM will return the bids unopened. This will provide time for companies to make decisions regarding the next annual Western Gulf of Mexico Planning Area lease sale proposed for 2012, which may also offer blocks in this area. BOEM reserves the right to return these bids at any time. BOEM will not disclose which blocks received bids or the names of bidders in this area unless and until the bids are opened.
In the event the Secretary decides to open bids on blocks in the Boundary Area, BOEM will notify such bidders of the agreement and will describe the terms under which leases in the Boundary Area will be issued. The bidders will have 20 days from the date of the notice to inform BOEM whether they will withdraw their bids on blocks in the Boundary Area or to reaffirm their interest in such a lease subject to the new terms that are necessary to implement the United States' obligations under the Transboundary Agreement.
BOEM currently anticipates that blocks in the Boundary Area that are not awarded as a result of Lease Sale 218 would be reoffered in the following lease sale for the Western Planning Area, tentatively scheduled for later in 2012.
``Transboundary Agreement,'' refers to a possible agreement between the United Mexican States and the United States of America that may be approved by both governments after October 21, 2011 and before June 15, 2012, and that addresses identification and unitization of transboundary hydrocarbon reservoirs, allocation of production, inspections, safety, and environmental protection.
``Boundary Area,'' means an area comprised of the entirety of any and all blocks in the Western Planning Area, that are located or partially located within three nautical miles of the maritime and continental shelf boundary with Mexico, as that maritime boundary is delimited in the November 24, 1970 Treaty to Resolve Pending Boundary Differences and Maintain the
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Rio Grande and Colorado River as the International Boundary, the May 4, 1978 Treaty on Maritime Boundaries between the United Mexican States and the United States of America, and the June 9, 2000 Treaty on the Continental Shelf between the Government of the United Mexican States and the Government of the United States of America. The following blocks comprise the Boundary Area:
Port Isabel Blocks--914, 915, 916, 917, 918, 919, 920, 921, 922, 923, 924, 945, 946, 947, 948, 958, 959, 960, 961, 962, 963, 964, 965, 965, 966, 967, 968, 989, 990, 991, and 992
Alaminos Canyon Blocks--881, 882, 883*, 884*, 885, 886, 887, 888, 889*, 890*, 891, 892, 893*, 894*, 895, 896, 897, 898, 899*, 900*, 901*, 902*, 903*, 904*, 905, 906, 907, 908, 909, 910, 911, 912, 925, 926, 927*, 928*, 929, 930, 931, 932, 933, 934, 935, 936, 937, 938, 939*, 940*, 941, 942*, 943*, 944*, 945*, 946, 947*, 948, 949, 950, 951, 952, 953, 954, 955, 956, 957, 958, 959, 960, 961, 962, 963, 964, 965, 992, 993, 994, 995, 996, 997, 998, 999, 1000, 1001, 1002, 1003, 1004, 1005, 1006, 1007, 1008, and 1009
Keathley Canyon Blocks--925, 926, 927, 928, 929, 930, 931, 932, 933, 934, 935, 969, 970, 971, 972, 973, 974, 975, 976, 977, 978, 979, 980, and 981
Sigsbee Escarpment Blocks--11, 12, 13, 14, 15, 57, 58, 59, 60, 61, 103, 104, 105, 106, 148, 149, 150, and 194
South Padre Island Blocks--1154, 1163, 1164, 1165, and 1166*
South Padre Island, East Addition Blocks--1155, 1156, 1157, 1158, 1159, 1160, 1161, 1162, A 78, A 79, A 80, A 81, A 82, A 83, A 84, A 85, A 86, A 87, A 89, and A 90
*Leased
Statutes and Regulations: Each lease is issued pursuant to the OCS Lands Act (OCSLA) of August 7, 1953; 43 U.S.C. 1331 et seq., as amended, (hereinafter called ``the Act'') and is subject to the Act, regulations promulgated pursuant thereto, and other statutes and regulations in existence upon the Effective Date of the lease, and those statutes enacted (including amendments to the Act or other statutes) and regulations promulgated thereafter, except to the extent they explicitly conflict with an express provision of this lease. It is expressly understood that subsequent amendments to the Act, other statutes, and regulations which do not explicitly conflict with an express provision of the lease may be made and that the Lessee bears the risk that such amendments may increase or decrease the Lessee's obligations under the lease. BOEM will use a new lease form (BOEM Form 2005 (October 2011)) to convey leases offered in this sale. The new lease form may be viewed on the BOEM Web site at: http://www.gomr.boem.gov/homepg/boemforms/FormBOEM-2005.pdf. The lease form will be amended to conform with the specific terms, conditions and stipulations applicable to the individual lease. Addressed below are the terms, conditions, and stipulations applicable to this sale.
Lease Terms and Conditions: Initial periods, extensions of initial periods, minimum bonus bid amounts, rental rates, escalating rental rates for leases with an approved extension of the initial 5-year period, royalty rate, minimum royalty, and royalty suspension provisions, if any, applicable to this sale are noted below. Related areas are depicted on the map ``Final, Western Planning Area, Lease Sale 218, December 14, 2011, Lease Terms and Economic Conditions,'' for leases resulting from this lease sale.
Initial Periods: Initial periods are summarized in the following table.
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Water depth in meters Initial periods
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