Gulf of Mexico Outer Continental Shelf Region-Wide Oil and Gas Lease Sale 252
| Published date | 15 February 2019 |
| Citation | 84 FR 4525 |
| Record Number | 2019-02554 |
| Section | Notices |
| Court | Ocean Energy Management Bureau |
Federal Register, Volume 84 Issue 32 (Friday, February 15, 2019)
[Federal Register Volume 84, Number 32 (Friday, February 15, 2019)]
[Notices]
[Pages 4525-4531]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-02554]
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DEPARTMENT OF THE INTERIOR
Bureau of Ocean Energy Management
Gulf of Mexico Outer Continental Shelf Region-Wide Oil and Gas
Lease Sale 252
AGENCY: Bureau of Ocean Energy Management, Interior.
ACTION: Final notice of sale
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SUMMARY: On Wednesday, March 20, 2019, the Bureau of Ocean Energy
Management (BOEM) will open and publicly announce bids received for
blocks offered in the Gulf of Mexico (GOM) Outer Continental Shelf
(OCS) Region-wide Oil and Gas Lease Sale 252 (GOM Region-wide Sale
252), in accordance with the provisions of the Outer Continental Shelf
Lands Act (OCSLA), and the implementing regulations issued pursuant
thereto. The GOM Region-wide Sale 252 Final Notice of Sale (NOS)
package contains information essential to potential bidders.
DATES: BOEM will hold GOM Region-wide Sale 252 at 9:00 a.m. on
Wednesday, March 20, 2019. All times referred to in this document are
Central Standard Time, unless otherwise specified.
Bid submission deadline: BOEM must receive all sealed bids between
8:00 a.m. and 4:00 p.m. on normal working days prior to the sale, or
from 8:00 a.m. to the Bid Submission Deadline of 10:00 a.m. on Tuesday,
March 19, 2019, the day before the lease sale. For more information on
bid submission, see Section VII, ``Bidding Instructions,'' of this
document.
ADDRESSES: Bids will be accepted prior to the bid receipt deadline at
1201 Elmwood Park Boulevard, New Orleans, Louisiana. Public bid reading
for GOM Region-wide Sale 252 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 via live-streaming video beginning at 9:00 a.m. on the
date of the sale. BOEM will also post the results on its website after
bid opening and reading are completed. Interested parties may download
the Final NOS package from BOEM's website at http://www.boem.gov/Sale-252/. Copies of the sale maps may be obtained by contacting the BOEM
GOM Region at: Gulf of Mexico Region Public Information Office, Bureau
of Ocean Energy Management, 1201 Elmwood Park Boulevard, New Orleans,
Louisiana 70123-2394, (504) 736-2519 or (800) 200-GULF.
FOR FURTHER INFORMATION CONTACT: Susan Erin O'Reilly Vaughan, Chief,
Leasing and Financial Responsibility, Office of Leasing and Plans, 504-
736-1759, Erin.O'Reilly@boem.gov or Wright Jay Frank, Chief, Leasing
Policy and Management Division, 703-787-1325, Wright.Frank@boem.gov.
Table of Contents
This Final NOS includes the following sections:
I. Lease Sale Area
II. Statutes and Regulations
III. Lease Terms and Economic Conditions
IV. Lease Stipulations
V. Information to Lessees
VI. Maps
VII. Bidding Instructions
VIII. Bidding Rules and Restrictions
IX. Forms
X. The Lease Sale
XI. Delay of Sale
I. Lease Sale Area
Blocks Offered For Leasing: BOEM will offer for bid in this lease
sale all of the available unleased acreage in the GOM, except those
blocks listed in ``Blocks Not Offered for Leasing'' below.
Blocks Not Offered for Leasing: The following whole and partial
blocks are not offered for lease in this sale. The BOEM Official
Protraction Diagrams (OPDs) and Supplemental Official Block Diagrams
are available online at https://www.boem.gov/Maps-and-GIS-Data/.
Whole and partial blocks that lie within the current
boundaries of the Flower Garden Banks National Marine Sanctuary (in the
East and West Flower Garden Banks and the Stetson Bank), identified in
the following list:
High Island, East Addition, South Extension (Leasing Map TX7C)
Whole Block: A-398
Partial Blocks: A-366, A-367, A-374, A-375, A-383, A-384, A-385, A-
388, A-389, A-397, A-399, A-401
High Island, South Addition (Leasing Map TX7B)
Partial Blocks: A-502, A-513
Garden Banks (OPD NG15-02)
Partial Blocks: 134, 135
Blocks that are adjacent to or beyond the United States
Exclusive Economic Zone in the area known as the northern portion of
the Eastern Gap:
Lund South (OPD NG 16-07)
Whole Blocks: 128, 129, 169 through 173, 208 through 217, 248
through 261, 293 through 305, and 349
Henderson (OPD NG 16-05)
Whole Blocks: 466, 508 through 510, 551 through 554, 594 through
599, 637 through 643, 679 through 687, 722 through 731, 764 through
775, 807 through 819, 849 through 862, 891 through 905, 933 through
949, and 975 through 992
Partial Blocks: 467, 511, 555, 556, 600, 644, 688, 732, 776, 777,
820, 821, 863, 864, 906, 907, 950, 993, and 994
Florida Plain (OPD NG 16-08)
Whole Blocks: 5 through 24, 46 through 67, 89 through 110, 133
through 154, 177 through 197, 221 through 240, 265 through 283, 309
through 327, and 363 through 370
All whole and portions of blocks deferred by the Gulf of
Mexico Energy Security Act of 2006, Public Law 109-432:
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):
[[Page 4526]]
Block 299, Main Pass Area, South and East Addition (Louisiana
Leasing Map LA10A), containing 1,125 acres, from the surface of the
earth down to a subsea depth of 1,900 feet with respect to the
following described portions: SW\1/4\NE\1/4\; NW\1/4\SE\1/4\NE\1/4\;
W\1/2\NE\1/4\SE\1/4\NE\1/4\; S\1/2\S\1/2\NW\1/4\NE\1/4\; S\1/2\SW\1/
4\NE\1/4\NE\1/4\; S\1/2\SW\1/4\SE\1/4\NE\1/4\NE\1/4\; N\1/2\SW\1/
4\SE\1/4\ NE\1/4\; SW\1/4\SW\1/4\SE\1/4\NE\1/4\; NW\1/4\SE\1/4\ SE\1/4\
NE\1/4\; N\1/2\NW\1/4\SW\1/4\SE\1/4\SE\1/4\NE\1/4\; N\1/2\SE\1/4\SW\1/
4\SE\1/4\NE\1/4\; N\1/2\S\1/2\SE\1/4\SW\1/4\SE\1/4\NE\1/4\; S\1/2\NE\1/
4\NW\1/4\; S\1/2\S\1/2\N\1/2\NE\1/4\NW\1/4\; N\1/2\SE\1/4\NW\1/4\;S\1/
2\SE\1/4\NW\1/4\NW\1/4\; NE\1/4\SE\1/4\ NW\1/4\NW\1/4\; E\1/2\NE\1/
4\SW\1/4\NW\1/4\; N\1/2\SE\1/4\SE\1/4\NW\1/4\; NE\1/4\SW\1/4\SE\1/
4\NW\1/4\; N\1/2\NW\1/4\SW\1/4\SE\1/4\NW\1/4\; SE\1/4\SE\1/4\SE\1/
4\NW\1/4\; E\1/2\SW\1/4\SE\1/4\SE\1/4\NW\1/4\; N\1/2\NW\1/4\NE\1/
4\SW\1/4\NW\1/4\; N\1/2\S\1/2\NW\1/4\NE\1/4\SW\1/4\NW\1/4\; N\1/2\N\1/
2\NE\1/4\NE\1/4\NE\1/4\SW\1/4\; N\1/2\N\1/2\N\1/2\NW\1/4\NW\1/4\SE\1/
4\; N\1/2\N\1/2\NW\1/4\NE\1/4\NW\1/4\SE\1/4\.
The following blocks, whose lease status is currently under
appeal:
Keathley Canyon (Official Protraction Diagram NG15-05) Blocks 246,
247, 290, 291, 292, 335 and 336
Vermilion Area (Leasing Map LA3) Partial Block 179 and Vermilion
(Leasing Map LA3) Block 153
Atwater Valley (Official Protraction Diagram NG16-01) Block 63
II. Statutes and Regulations
Each lease is issued pursuant to OCSLA, 43 U.S.C. 1331-1356, as
amended, and is subject to OCSLA implementing regulations promulgated
pursuant thereto in 30 CFR part 556, and other applicable statutes and
regulations in existence upon the effective date of the lease, as well
as those applicable statutes enacted and regulations promulgated
thereafter, except to the extent that the after-enacted statutes and
regulations explicitly conflict with an express provision of the lease.
Each lease is also subject to amendments to statutes and regulations,
including but not limited to OCSLA, that do not explicitly conflict
with an express provision of the lease. The lessee expressly bears the
risk that such new or amended statutes and regulations (i.e., those
that do not explicitly conflict with an express provision of the lease)
may increase or decrease the lessee's obligations under the lease.
III. Lease Terms and Economic Conditions
Lease Terms
OCS Lease Form
BOEM will use Form BOEM-2005 (February 2017) to convey leases
resulting from this sale. This lease form may be viewed on BOEM's
website at http://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:
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Water depth (meters) Primary term
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0 to $25.00 per acre or fraction thereof for blocks in water
depths less than 400 meters; and
$100.00 per acre or fraction thereof for blocks in water
depths 400 meters or deeper.
BOEM will not accept a bonus bid unless it provides for a cash
bonus in an amount equal to, or exceeding, the specified minimum bid of
$25.00 per acre or fraction thereof for blocks in water depths less
than 400 meters, and $100.00 per acre or fraction thereof for blocks in
water depths 400 meters or deeper.
Rental Rates
Annual rental rates are summarized in the following table:
Rental Rates per Acre or Fraction Thereof
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Water depth (meters) Years 1-5 Years 6, 7, & 8 +
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0 to 12.5 percent for leases situated in water depths less than
200 meters; and
18.75 percent for leases situated in water depths of 200
meters and deeper.
Minimum Royalty Rate
$7.00 per acre or fraction thereof per year for blocks in
water depths less than 200 meters; and
$11.00 per acre or fraction thereof per year for blocks in
water depths 200 meters or deeper.
Royalty Suspension Provisions
The issuance of leases with Royalty Suspension Volumes (RSVs) or
other forms of royalty relief is authorized under existing BOEM
regulations at 30 CFR part 560. The specific details relating to
eligibility and implementation of the various royalty relief programs,
including those involving the use of RSVs, are codified in Bureau of
Safety and Environmental Enforcement (BSEE) regulations at 30 CFR part
203. In this sale, the only royalty relief program being offered that
involves the provision of RSVs relates to the drilling of ultra-deep
wells in water depths of less than 400 meters, as described in the
following section.
Royalty Suspension Volumes on Gas Production From Ultra-Deep Wells
Pursuant to 30 CFR part 203, certain leases issued as a result of
this sale may be eligible for RSV incentives on gas produced from
ultra-deep wells. Under this program, wells on leases in less than 400
meters water depth and completed to a drilling depth of 20,000 feet TVD
SS or deeper receive a RSV of 35 billion cubic feet on the production
of natural gas. This RSV incentive is subject to applicable price
thresholds set forth in the regulations at 30 CFR part 203. These
regulations implement the requirements of the Energy Policy Act of 2005
(Pub. L. 109-58, 119 Stat. 594 (2005)).
IV. Lease Stipulations
Consistent with the Record of Decision for the Final Programmatic
Environmental Impact Statement for the 2017-2022 Five Year OCS Oil and
Gas Leasing Program, Stipulation No. 5 (Topographic Features) and
Stipulation No. 8 (Live Bottom) will apply to every lease sale in the
GOM Program Area. One or more of the remaining eight stipulations may
be applied to leases issued as a result of this sale, on applicable
blocks as identified on the map ``Gulf of Mexico Region-wide Oil and
Gas Lease Sale 252, March 20, 2019, Stipulations and Deferred Blocks''
included in the Final NOS package. The full text of the following
stipulations is contained in the ``Lease Stipulations'' section of the
Final NOS package.
(1) Military Areas
(2) Evacuation
(3) Coordination
(4) Protected Species
(5) Topographic Features
(6) United Nations Convention on the Law of the Sea Royalty Payment
(7) Agreement between the United States of America and the United
Mexican States Concerning Transboundary Hydrocarbon Reservoirs in the
Gulf of Mexico
(8) Live Bottom
[[Page 4528]]
(9) Blocks South of Baldwin County, Alabama
(10) Restrictions due to Rights-of-Use and Easement for Floating
Production Facilities
V. Information to Lessees
Information to Lessees (ITLs) provide detailed information on
certain issues pertaining to specific oil and gas lease sales. The full
text of the ITLs for this sale is contained in the ``Information to
Lessees'' section of the Final NOS package and covers the following
topics:
(1) Navigation Safety
(2) Ordnance Disposal Areas
(3) Existing and Proposed Artificial Reefs/Rigs-to-Reefs
(4) Lightering Zones
(5) Indicated Hydrocarbons List
(6) Military Areas
(7) Bureau of Safety and Environmental Enforcement (BSEE) Inspection
and Enforcement of Certain U.S. Coast Guard (USCG) Regulations
(8) Significant Outer Continental Shelf Sediment Resource Areas
(9) Notice of Arrival on the Outer Continental Shelf
(10) Bidder/Lessee Notice of Obligations Related to Criminal/Civil
Charges and Offenses, Suspension, or Debarment; Disqualification Due to
a Conviction under the Clean Air Act or the Clean Water Act
(11) Protected Species
(12) Proposed Expansion of the Flower Garden Banks National Marine
Sanctuary
(13) Communication Towers
(14) Deepwater Port Applications for Offshore Oil and Liquefied Natural
Gas Facilities
(15) Ocean Dredged Material Disposal Sites
(16) Rights-of-Use and Easement
(17) Industrial Waste Disposal Areas
(18) Gulf Islands National Seashore
(19) Air Quality Permit/Plan Approvals
VI. Maps
The maps pertaining to this lease sale may be viewed on BOEM's
website at http://www.boem.gov/Sale-252/. 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 252, March 20, 2019, Lease Terms and
Economic Conditions.''
Stipulations and Deferred Blocks Map
The lease stipulations and the blocks to which they apply are shown
on the map entitled, ``Gulf of Mexico Region-wide Oil and Gas Lease
Sale 252, March 20, 2019, Stipulations and Deferred Blocks Map.''
VII. Bidding Instructions
Bids may be submitted in person or by mail at the address below in
the ``Mailed Bids'' section. Bidders submitting their bid(s) in person
are advised to email boemgomrleasesales@boem.gov to provide the names
of the company representative(s) that will submit the bid(s).
Instructions on how to submit a bid, secure payment of the advance
bonus bid deposit (if applicable), and what information must be
included with the bid are as follows:
Bid Form
For each block bid upon, a separate sealed bid must be submitted in
a sealed envelope (as described below) and include the following:
Total amount of the bid in whole dollars only;
Sale number;
Sale date;
Each bidder's exact name;
Each bidder's proportionate interest, stated as a
percentage, using a maximum of five decimal places (e.g., 33.33333%);
Typed name and title, and signature of each bidder's
authorized officer;
Each bidder's qualification number;
Map name and number or Official Protraction Diagram (OPD)
name and number;
Block number; and
Statement acknowledging that the bidder(s) understands
that this bid legally binds the bidder(s) to comply with all applicable
regulations, including those requiring it to post a deposit in the
amount of one-fifth of the bonus bid amount for any tract bid upon and
make payment of the balance of the bonus bid and first year's rental
upon BOEM's acceptance of high bids.
The information required on the bid(s) is specified in the document
``Bid Form'' that is available in the Final NOS package. A blank bid
form is provided in the Final NOS package for convenience and may be
copied and completed with the necessary information described above.
Bid Envelope
Each bid must be submitted in a separate sealed envelope labeled as
follows:
``Sealed Bid for GOM Region-wide Sale 252, not to be
opened until 9 a.m. Wednesday, March 20, 2019'';
Map name and number or OPD name and number;
Block number for block bid upon; and
The exact name and qualification number of the submitting
bidder only.
The Final NOS package will include a sample bid envelope for
reference.
Mailed Bids
If bids are mailed, please address the envelope containing the
sealed bid envelope(s) as follows: Attention: Leasing and Financial
Responsibility Section, BOEM Gulf of Mexico Region, 1201 Elmwood Park
Boulevard WS-266A, New Orleans, Louisiana 70123-2394, Contains Sealed
Bids for GOM Region-wide Sale 252. Please Deliver to Mr. Greg Purvis,
2nd Floor, Immediately.
Please Note: Bidders mailing bid(s) are advised to inform BOEM by
email to boemgomrleasesales@boem.gov immediately after putting their
bid(s) in the mail. This will provide advance notice to BOEM regarding
pending bids prior to the Bid Submission Deadline. However, if BOEM
receives bids later than the Bid Submission Deadline, the BOEM GOM
Regional Director (RD) will return those bids unopened to bidders.
Please see ``Section XI. Delay of Sale'' regarding BOEM's discretion to
extend the Bid Submission Deadline in the case of an unexpected event
(e.g., flooding or travel restrictions) and how bidders can obtain more
information on such extensions.
Advance Bonus Bid Deposit Guarantee
Bidders that are not currently an OCS oil and gas lease record
title holder or designated operator, or those that ever have defaulted
on a one-fifth bonus bid deposit, by Electronic Funds Transfer (EFT) or
otherwise, must guarantee (secure) the payment of the one-fifth bonus
bid deposit prior to bid submission using one of the following four
methods:
Provide a third-party guarantee;
Amend an area-wide development bond via bond rider;
Provide a letter of credit; or
Provide a lump sum payment in advance via EFT.
Please provide, at the time you submit your bid, a confirmation or
tracking number for your payment, the name of the company submitting
the payment as it appears on the payment, and the date the payment was
submitted in order for BOEM to confirm your payment with the Office of
Natural Resources Revenue (ONRR). Submitting payment to your financial
institution at least five business days prior to your bid submittal
will help ensure that the Office of Foreign Assets Control and the U.S.
Department of the Treasury (U.S. Treasury) have the needed time to
screen and process your payment so that
[[Page 4529]]
they post it to ONRR prior to your placing your bid. ONRR cannot
confirm payment until the monies have been moved into settlement status
by the U.S. Treasury. Your bid will not be accepted if BOEM cannot
confirm your payment with ONRR.
If you are providing a third-party guarantee, amending an area-wide
development bond via bond rider, or providing a letter of credit to
secure your one-fifth bonus bid deposit, you are urged to file the same
with BOEM, well in advance of submitting your bid, to allow time for
BOEM to process these items and for you to take any necessary curative
actions prior to your bid submission. For more information on EFT
procedures, see Section X of this document entitled, ``The Lease
Sale.''
Affirmative Action
Prior to bidding, each bidder should file the Equal Opportunity
Affirmative Action Representation Form BOEM-2032 (October 2011, http://www.boem.gov/BOEM-2032/) and Equal Opportunity Compliance Report
Certification Form BOEM-2033 (October 2011, http://www.boem.gov/BOEM-2033/) with the BOEM GOM Adjudication Section. This certification is
required by 41 CFR part 60 and Executive Order No. 11246, issued
September 24, 1965, as amended by Executive Order No. 11375, issued
October 13, 1967, and by Executive Order 13672, issued July 21, 2014.
Both forms must be on file for the bidder(s) in the GOM Adjudication
Section prior to the execution of any lease contract.
Geophysical Data and Information Statement (GDIS)
The GDIS is composed of three parts:
(1) The ``Statement'' page includes the company representatives'
information and lists of blocks bid on that used proprietary data and
those blocks bid on that did not use proprietary data;
(2) The ``Table'' listing the required data about each proprietary
survey used (see below); and
(3) The ``Maps'' being the live trace maps for each proprietary
survey that is identified in the GDIS statement and table.
Every bidder submitting a bid on a block in GOM Region-wide Sale
252, or participating as a joint bidder in such a bid, must submit at
the time of bid submission all three parts of the GDIS. A bidder must
submit the GDIS even if a joint bidder or bidders on a specific block
also have submitted a GDIS. Any speculative data that has been
reprocessed externally or ``in-house'' is considered proprietary due to
the proprietary processing and is no longer considered to be
speculative.
The bidder or bidders must submit the GDIS in a separate and sealed
envelope, and must identify all proprietary data; reprocessed
speculative data, and/or any Controlled Source Electromagnetic surveys,
Amplitude Versus Offset (AVO), Gravity, or Magnetic data; or other
information used as part of the decision to bid or participate in a bid
on the block. The bidder and joint bidder must also include a live
trace map (e.g., .pdf and ArcGIS shape file) for each proprietary
survey that they identify in the GDIS illustrating the actual areal
extent of the proprietary geophysical data in the survey (see the
``Example of Preferred Format'' that is included in the Final NOS
package for additional information). The shape file must not include
cultural information; only the live trace map of the survey itself.
The GDIS statement must include the name, phone number, and full
address of a contact person and an alternate who are both knowledgeable
about the geophysical information and data listed and who are available
for 30 days after the sale date. The GDIS statement also must include a
list of all blocks bid upon that did not use proprietary or reprocessed
pre- or post-stack geophysical data and information as part of the
decision to bid or to participate as a joint bidder in the bid. Bidders
must submit the GDIS statement even if no proprietary geophysical data
and information were used in bid preparation for the block.
The GDIS table should have columns that clearly state:
The sale number;
The bidder company's name;
The joint bidder's company's name (if applicable);
Company that will provide Proprietary Data to BOEM;
The block area and block number bid on;
The owner of the original data set (i.e., who initially
acquired the data);
The industry's original name of the survey (e.g., E
Octopus);
The BOEM permit number for the survey;
Whether the data set is a fast track version;
Whether the data is speculative or proprietary;
The data type (e.g., 2-D, 3-D, or 4-D; pre-stack or post-
stack; and time or depth, etc.);
The Migration algorithm (e.g., Kirchhoff Migration, Wave
Equation Migration, Reverse Migration, Reverse Time Migration) of the
data and areal extent of bidder survey (i.e., number of line miles for
2-D or number of blocks for 3-D);
The Live Proprietary Survey Coverage (2-D miles 3-D
Blocks);
The computer storage size, to the nearest gigabyte, of
each seismic data and velocity volume used to evaluate the lease block;
Who reprocessed the data;
Date Final Reprocessing Completed (month and year);
If data was previously sent to BOEM, list the sale number
and date of the sale for which it was used;
Whether proprietary or Speculative AVO/AVA (PROP/SPEC) was
used;
Date AVO or AVA was sent to BOEM if sent during prior
sale;
Is AVO/AVA Time or Depth (PSTM or PSDM);
Which Angled Stacks were used (NEAR, MID, FAR, ULTRAFAR
etc.);
Whether your company used Gathers to evaluate the block in
question; and
Whether your company used Vector Offset Output (VOO) or
Vector Image Partitions (VIP) to evaluate the block in question.
BOEM will use the computer storage size information in estimating
the reproduction costs for each data set, if applicable. BOEM will
determine the availability of reimbursement of production costs
consistent with 30 CFR 551.13.
BOEM reserves the right to query about alternate data sets, to
quality check, and to compare the listed and alternative data sets to
determine which data set most closely meets the needs of the fair
market value determination process. See the ``Example of Preferred
Format'' that is included in the Final NOS package. Bidders can access
a blank digital version of the preferred table on the GOM Region-wide
Sale 252 web page at http://www.boem.gov/Sale-252.
The GDIS maps are live trace maps (e.g., .pdf and ArcGIS shape
files) that bidders should submit for each proprietary survey that is
identified in the GDIS table. They should illustrate the actual areal
extent of the proprietary geophysical data in the survey (see the
``Example of Preferred Format'' that is included in the Final NOS
package for additional information). As previously stated, the shape
file must not include cultural information; only the live trace map of
the survey itself.
Pursuant to 30 CFR 551.12 and 30 CFR 556.501, as a condition of the
sale, the BOEM Gulf of Mexico Regional Director (RD) requests that all
bidders and joint bidders submit the proprietary data identified on
their GDIS within 30 days after the lease sale (unless they are
[[Page 4530]]
notified after the lease sale that BOEM has withdrawn the request).
This request only pertains to proprietary data that is not commercially
available. Commercially available data should not be submitted to BOEM
unless BOEM specifically requests the commercially available data from
the bidder. The BOEM Gulf of Mexico RD will notify bidders and joint
bidders of any withdrawal of the request, for all or some of the
proprietary data identified on the GDIS, within 15 days of the lease
sale. Where the BOEM Gulf of Mexico RD has notified bidders and joint
bidders that the request for such proprietary data has been withdrawn,
reimbursement will not be provided. Pursuant to 30 CFR part 551 and 30
CFR 556.501, as a condition of this sale, all bidders that are required
to submit data must ensure that the data is received by BOEM no later
than the 30th day following the lease sale, or the next business day if
the submission deadline falls on a weekend or Federal holiday.
The data must be submitted to BOEM at the following address: Bureau
of Ocean Energy Management, Resource Studies, GM 881A, 1201 Elmwood
Park Blvd., New Orleans, LA 70123-2304.
BOEM recommends that bidders mark the submission's external
envelope as ``Deliver Immediately to DASPU.'' BOEM also recommends that
the data be submitted in an internal envelope, or otherwise marked,
with the following designation: ``Proprietary Geophysical Data
Submitted Pursuant to GOM Region-wide Sale 252 and used during Bidder
Name's evaluation of Block .''
In the event a person supplies any type of data to BOEM, that
person must meet the following requirements to qualify for
reimbursement:
(1) The person must be registered with the System for Award
Management (SAM), formerly known as the Central Contractor Registration
(CCR). CCR usernames will not work in SAM. A new SAM User Account is
needed to register or update an entity's records. The website for
registering is gsa.gov/iaesystems.
(2) The persons must be enrolled in the U.S. Treasury's Invoice
Processing Platform (IPP) for electronic invoicing. The person must
enroll in the IPP at https://www.ipp.gov/. Access then will be granted
to use the IPP for submitting requests for payment. When a request for
payment is submitted, it must include the assigned Purchase Order
Number on the request.
(3) The persons must have a current On-line Representations and
Certifications Application at gsa.gov/iaesystems.
Please Note: The GDIS Information Table must be submitted
digitally, preferably as an Excel spreadsheet, on a CD, DVD, or any USB
external drive (formatted for Windows), along with the seismic data
map(s). If bidders have any questions, please contact Ms. Dee Smith at
(504) 736-2706, or Mr. John Johnson at (504) 736-2455.
Bidders should refer to Section X of this document, ``The Lease
Sale: Acceptance, Rejection, or Return of Bids,'' regarding a bidder's
failure to comply with the requirements of the Final NOS, including any
failure to submit information as required in the Final NOS or Final NOS
package.
Telephone Numbers/Addresses of Bidders
BOEM requests that bidders provide this information in the
suggested format prior to or at the time of bid submission. The
suggested format is included in the Final NOS package. The form must
not be enclosed inside the sealed bid envelope.
Additional Documentation
BOEM may require bidders to submit other documents in accordance
with 30 CFR 556.107, 30 CFR 556.401, 30 CFR 556.501, and 30 CFR
556.513.
VIII. Bidding Rules and Restrictions
Restricted Joint Bidders
On November 6, 2018, BOEM published the most recent List of
Restricted Joint Bidders in the Federal Register at 83 FR 55560.
Potential bidders are advised to refer to the Federal Register, prior
to bidding, for the most current List of Restricted Joint Bidders in
place at the time of the lease sale. Please refer to the joint bidding
provisions at 30 CFR 556.511-515.
Authorized Signatures
All signatories executing documents on behalf of bidder(s) must
execute the same in conformance with the BOEM qualification records.
Bidders are advised that BOEM considers the signed bid to be a legally
binding obligation on the part of the bidder(s) to comply with all
applicable regulations, including that requiring payment of one-fifth
of the bonus bid on all high bids. A statement to this effect is
included on each bid form (see the document ``Bid Form'' that is
included in the Final NOS package).
Unlawful Combination or Intimidation
BOEM warns bidders against violation of 18 U.S.C. 1860, prohibiting
unlawful combination or intimidation of bidders.
Bid Withdrawal
Bids may be withdrawn only by written request delivered to BOEM
prior to the Bid Submission Deadline. The withdrawal request must be on
company letterhead and must contain the bidder's name, its BOEM
qualification number, the map name/number, and the block number(s) of
the bid(s) to be withdrawn. The withdrawal request must be executed by
one or more of the representatives named in the BOEM qualification
records. The name and title of the authorized signatory must be typed
under the signature block on the withdrawal request. The BOEM Gulf of
Mexico RD, or the RD's designee, will indicate their approval by
signing and dating the withdrawal request.
Bid Rounding
Minimum bonus bid calculations, including rounding, for all blocks
are shown in the document ``List of Blocks Available for Leasing''
included in the Final NOS package. The bonus bid amount must be stated
in whole dollars. If the acreage of a block contains a decimal figure,
then prior to calculating the minimum bonus bid, BOEM rounded up to the
next whole acre. The appropriate minimum rate per acre was then applied
to the whole (rounded up) acreage. The bonus bid amount must be greater
than or equal to the minimum bonus bid so calculated and stated in the
Final NOS package.
IX. Forms
The Final NOS package includes instructions, samples, and/or the
preferred format for the following items. BOEM strongly encourages
bidders to use the recommended formats. If bidders use another format,
they are responsible for including all the information specified for
each item in the Final NOS package.
(1) Bid Form
(2) Sample Completed Bid
(3) Sample Bid Envelope
(4) Sample Bid Mailing Envelope
(5) Telephone Numbers/Addresses of Bidders Form
(6) GDIS Form
(7) GDIS Envelope Form
X. The Lease Sale
Bid Opening and Reading
Sealed bids received in response to the Final NOS will be opened at
the place, date, and hour specified under the DATES and ADDRESSES
sections of the Final NOS. The venue will not be open to the public.
Instead, the bid opening will be available for the public to view on
BOEM's website at www.boem.gov
[[Page 4531]]
via live-streaming. The opening of the bids is for the sole purpose of
publicly announcing and recording the bids received; no bids will be
accepted or rejected at that time.
Bonus Bid Deposit for Apparent High Bids
Each bidder submitting an apparent high bid must submit a bonus bid
deposit to ONRR equal to one-fifth of the bonus bid amount for each
such bid. A copy of the notification of the high bidder's one-fifth
bonus bid amount may be obtained on the BOEM website at http://www.boem.gov/Sale-252 under the heading ``Notification of EFT \1/5\
Bonus Liability'' after 1:00 p.m. on the day of the sale. All payments
must be deposited electronically into an interest-bearing account in
the U.S. Treasury by 1:00 p.m. Eastern Time the day following the bid
reading (no exceptions). Account information is provided in the
``Instructions for Making Electronic Funds Transfer Bonus Payments''
found on the BOEM website identified above.
Submitting payment to your financial institution as soon as
possible the day of bid reading, but no later than 7:00 p.m. Eastern
Time the day of bid reading, will help ensure that deposits have time
to process through the U.S. Treasury and post to ONRR. ONRR cannot
confirm payment until the monies have been moved into settlement status
by the U.S. Treasury.
BOEM requires bidders to use EFT procedures for payment of one-
fifth bonus bid deposits for GOM Region-wide Sale 252 following the
detailed instructions contained on the ONRR Payment Information web
page at https://www.onrr.gov/ReportPay/payments.htm. Acceptance of a
deposit does not constitute and will not be construed as acceptance of
any bid on behalf of the United States.
Withdrawal of Blocks
The United States reserves the right to withdraw any block from
this lease sale prior to issuance of a written acceptance of a bid for
the block.
Acceptance, Rejection, or Return of Bids
The United States reserves the right to reject any and all bids. No
bid will be accepted, and no lease for any block will be awarded to any
bidder, unless:
(1) The bidder has complied with all applicable regulations and
requirements of the Final NOS, including those set forth in the
documents contained in the Final NOS package;
(2) The bid is the highest valid bid; and
(3) The amount of the bid has been determined to be adequate by the
authorized officer.
Any bid submitted that does not conform to the requirements of the
Final NOS and Final
NOS package, OCSLA, or other applicable statute or regulation will
be rejected and returned to the bidder. The United States Department of
Justice and the Federal Trade Commission will review the results of the
lease sale for antitrust issues prior to the acceptance of bids and
issuance of leases.
Bid Adequacy Review Procedures for GOM Region-Wide Sale 252
To ensure that the U.S. Government receives a fair return for the
conveyance of leases from this sale, BOEM will evaluate high bids in
accordance with its bid adequacy procedures, which are available at
http://www.boem.gov/Oil-and-Gas-Energy-Program/Leasing/Regional-Leasing/Gulf-of-Mexico-Region/Bid-Adequacy-Procedures.aspx.
Lease Award
BOEM requires each bidder awarded a lease to:
(1) Execute all copies of the lease (Form BOEM-2005 (February
2017), as amended);
(2) Pay by EFT the balance of the bonus bid amount and the first
year's rental for each lease issued in accordance with the requirements
of 30 CFR 218.155 and 556.520(a); and
(3) Satisfy the bonding requirements of 30 CFR part 556, subpart I,
as amended.
ONRR requests that only one transaction be used for payment of the
balance of the bonus bid amount and the first year's rental. Once ONRR
receives such payment, the bidder awarded the lease may not request a
refund of the balance bonus bid amount or first year's rental payment.
XI. Delay of Sale
The BOEM Gulf of Mexico RD has the discretion to change any date,
time, and/or location specified in the Final NOS package in the case of
an event that the BOEM Gulf of Mexico RD deems may interfere with a
fair and orderly lease sale process. Such events could include, but are
not limited to, natural disasters (e.g., earthquakes, hurricanes, and
floods), wars, riots, acts of terrorism, fires, strikes, civil
disorder, or other events of a similar nature. In case of such events,
bidders should call (504) 736-0557, or access the BOEM website at
http://www.boem.gov, for information regarding any changes.
Dated: February 12, 2019.
Walter D. Cruickshank,
Acting Director, Bureau of Ocean Energy Management.
[FR Doc. 2019-02554 Filed 2-14-19; 8:45 am]
BILLING CODE 4310-MR-P
