Gulf of Mexico Outer Continental Shelf Region-Wide Oil and Gas Lease Sale 254
| Published date | 12 February 2020 |
| Citation | 85 FR 8010 |
| Record Number | 2020-02716 |
| Section | Notices |
| Court | Interior Department,Ocean Energy Management Bureau |
Federal Register, Volume 85 Issue 29 (Wednesday, February 12, 2020)
[Federal Register Volume 85, Number 29 (Wednesday, February 12, 2020)]
[Notices]
[Pages 8010-8017]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-02716]
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DEPARTMENT OF THE INTERIOR
Bureau of Ocean Energy Management
[Docket No. BOEM-2019-0046]
Gulf of Mexico Outer Continental Shelf Region-Wide Oil and Gas
Lease Sale 254
AGENCY: Bureau of Ocean Energy Management, Interior.
ACTION: Final notice of sale.
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SUMMARY: On Wednesday, March 18, 2020, the Bureau of Ocean Energy
Management (BOEM) will open and publicly announce bids received for
blocks offered in the Gulf of Mexico (GOM) Outer Continental Shelf
(OCS) Region-wide Oil and Gas Lease Sale 254 (GOM Region-wide Sale
254), in accordance with the provisions of the Outer Continental Shelf
Lands Act, as amended, and the implementing regulations issued pursuant
thereto. The GOM Region-wide Sale 254 Final Notice of Sale (NOS)
package contains information essential to potential bidders, and
consists of the NOS, information to lessees, and lease stipulations.
DATES: BOEM will hold GOM Region-wide Sale 254 at 9:00 a.m. on
Wednesday, March 18, 2020. All times referred to in this document are
Central time, unless otherwise specified.
Bid submission deadline: BOEM must receive all sealed bids between
8:00 a.m. and 4:00 p.m. on normal working days prior to the sale, or
from 8:00 a.m. until the bid submission deadline of 10:00 a.m. on
Tuesday, March 17, 2020, the day before the lease sale. For more
information on bid submission, see Section VII, ``Bidding
Instructions.''
ADDRESSES: Bids will be accepted prior to the bid submission deadline
at 1201 Elmwood Park Boulevard, New Orleans, Louisiana 70123. Public
bid reading for GOM Region-wide Sale 254 will be held at 1201 Elmwood
Park Boulevard, New Orleans, Louisiana, but the venue will not be open
to the general public, media, or industry during bid opening or
reading. Bid opening will be available for public viewing on BOEM's
website at www.boem.gov/Sale-254 via live-streaming video beginning at
9:00 a.m. on the date of the sale. The results will be posted on BOEM's
website upon completion of bid opening and reading. Interested parties
can download the Final NOS package from BOEM's website at http://www.boem.gov/Sale-254/. Copies of the sale maps can be obtained by
contacting the BOEM GOM Region: Gulf of Mexico Region Public
Information Office, Bureau of Ocean Energy Management, 1201 Elmwood
Park Boulevard, New Orleans, Louisiana 70123-2394, (504) 736-2519 or
(800) 200-GULF.
FOR FURTHER INFORMATION CONTACT: Susan Erin O'Reilly Vaughan, Chief,
Leasing and Financial Responsibility, Office of Leasing and Plans, 504-
736-1759, erin.o'[email protected] or Wright Jay Frank, Chief, Leasing
Policy and Management Division, 703-787-1325, [email protected].
Table of Contents
I. Lease Sale Area
II. Statutes and Regulations
III. Lease Terms and Economic Conditions
IV. Lease Stipulations
V. Information to Lessees
VI. Maps
VII. Bidding Instructions
VIII. Bidding Rules and Restrictions
IX. Forms
X. The Lease Sale
XI. Delay of Sale
I. Lease Sale Area
Blocks Offered for Leasing: BOEM will offer for bid in this lease
sale all of the available unleased acreage in the GOM, except those
blocks listed below in ``Blocks Not Offered for Leasing.''
Blocks Not Offered for Leasing: The following whole and partial
blocks are not offered for lease in this sale. Official Protraction
Diagrams (OPDs) and Supplemental Official Block Diagrams are available
online at https://www.boem.gov/Maps-and-GIS-Data/.
Flower Garden Banks National Marine Sanctuary (East and
West Flower Garden Banks and Stetson Bank):
[[Page 8011]]
------------------------------------------------------------------------
Area OCS block
------------------------------------------------------------------------
High Island, East Addition, Whole Block: A-398.
South Extension (Leasing Map Partial Blocks: A-366, A-367, A-374, A-
TX7C). 375, A-383, A-384, A-385, A-388, A-389,
A-397, A-399, A-401.
High Island, South Addition Partial Blocks: A-502, A-513.
(Leasing Map TX7B).
Garden Banks (OPD NG 15-02).. Partial Blocks: 134, 135.
------------------------------------------------------------------------
Blocks that are adjacent to or beyond the United States
Exclusive Economic Zone in the area known as the northern portion of
the Eastern Gap:
------------------------------------------------------------------------
Area OCS block
------------------------------------------------------------------------
Lund South (OPD NG 16-07).... Whole Blocks: 128, 129, 169 through 173,
208 through 217, 248 through 261, 293
through 305, and 349.
Henderson (OPD NG 16-05)..... Whole Blocks: 466, 508 through 510, 551
through 554, 594 through 599, 637
through 643, 679 through 687, 722
through 731, 764 through 775, 807
through 819, 849 through 862, 891
through 905, 933 through 949, and 975
through 992.
Partial Blocks: 335, 379, 423, 467, 511,
555, 556, 600, 644, 688, 732, 776, 777,
820, 821, 863, 864, 906, 907, 950, 993,
and 994.
Florida Plain (OPD NG 16-08). Whole Blocks: 5 through 24, 46 through
67, 89 through 110, 133 through 154, 177
through 197, 221 through 240, 265
through 283, 309 through 327, and 363
through 370.
------------------------------------------------------------------------
All whole and portions of blocks deferred by the Gulf of
Mexico Energy Security Act of 2006, Public Law 109-432:
------------------------------------------------------------------------
Area OCS block
------------------------------------------------------------------------
Pensacola (OPD NH 16-05)..... Whole Blocks: 751 through 754, 793
through 798, 837 through 842, 881
through 886, 925 through 930, and 969
through 975.
Destin Dome (OPD NH 16-08)... Whole Blocks: 1 through 7, 45 through 51,
89 through 96, 133 through 140, 177
through 184, 221 through 228, 265
through 273, 309 through 317, 353
through 361, 397 through 405, 441
through 450, 485 through 494, 529
through 538, 573 through 582, 617
through 627, 661 through 671, 705
through 715, 749 through 759, 793
through 804, 837 through 848, 881
through 892, 925 through 936, and 969
through 981.
DeSoto Canyon (OPD NH 16-11). Whole Blocks: 1 through 15, 45 through
59, and 92 through 102.
Partial Blocks: 16, 60, 61, 89 through
91, 103 through 105, and 135 through
147.
Henderson (OPD NG 16-05)..... Partial Blocks: 114, 158, 202, 246, 290,
334, 335, 378, 379, 422, and 423.
------------------------------------------------------------------------
Depth-restricted, segregated block portion(s):
Block 299, Main Pass Area, South and East Addition (as shown on
Louisiana Leasing Map LA10A), containing 1,125 acres, from the surface
of the earth down to a subsea depth of 1,900 feet with respect to the
following described portions: SW\1/4\NE\1/4\; NW\1/4\SE\1/4\NE\1/4\;
W\1/2\NE\1/4\SE\1/4\NE\1/4\; S\1/2\S\1/2\NW\1/4\NE\1/4\; S\1/2\SW\1/
4\NE\1/4\NE\1/4\; S\1/2\SW\1/4\SE\1/4\NE\1/4\NE\1/4\; N\1/2\SW\1/
4\SE\1/4\ NE\1/4\; SW\1/4\SW\1/4\SE\1/4\NE\1/4\; NW\1/4\SE\1/4\ SE\1/4\
NE\1/4\; N\1/2\NW\1/4\SW\1/4\SE\1/4\SE\1/4\NE\1/4\; N\1/2\SE\1/4\SW\1/
4\SE\1/4\NE\1/4\; N\1/2\S\1/2\SE\1/4\SW\1/4\SE\1/4\NE\1/4\; S\1/2\NE\1/
4\NW\1/4\; S\1/2\S\1/2\N\1/2\NE\1/4\NW\1/4\; N\1/2\SE\1/4\NW\1/4\;S\1/
2\SE\1/4\NW\1/4\NW\1/4\; NE\1/4\SE\1/4\ NW\1/4\NW\1/4\; E\1/2\NE\1/
4\SW\1/4\NW\1/4\; N\1/2\SE\1/4\SE\1/4\NW\1/4\; NE\1/4\SW\1/4\SE\1/
4\NW\1/4\; N\1/2\NW\1/4\SW\1/4\SE\1/4\NW\1/4\; SE\1/4\SE\1/4\SE\1/
4\NW\1/4\; E\1/2\SW\1/4\SE\1/4\SE\1/4\NW\1/4\; N\1/2\NW\1/4\NE\1/
4\SW\1/4\NW\1/4\; N\1/2\S\1/2\NW\1/4\NE\1/4\SW\1/4\NW\1/4\; N\1/2\N\1/
2\NE\1/4\NE\1/4\NE\1/4\SW\1/4\; N\1/2\N\1/2\N\1/2\NW\1/4\NW\1/4\SE\1/
4\; N\1/2\N\1/2\NW\1/4\NE\1/4\NW\1/4\SE\1/4\.
The following whole or partial blocks, whose lease status
is currently under appeal:
------------------------------------------------------------------------
Area OCS block
------------------------------------------------------------------------
Keathley Canyon (OPD NG15-05) 246, 247, 290, 291, 292, 335, 336.
Vermillion Area (Leasing Map Partial Block 179.
LA3).
Atwater Valley (OPD NG16-01). 63.
------------------------------------------------------------------------
Whole or partial blocks that have received bids in
previous sales, where the bidder has sought reconsideration of BOEM's
rejection of the bid, are not offered in this sale, unless the
reconsideration request is fully resolved at least 30 days prior to
publication of this Final NOS.
The list of blocks available can be found under the Sale 254 link
at https://www.boem.gov/Sale-254 under the Final NOS tab.
II. Statutes and Regulations
Each lease is issued pursuant to OCSLA, 43 U.S.C. 1331-1356, as
amended, and is subject to OCSLA-implementing regulations promulgated
pursuant thereto in 30 CFR part 556, and other applicable statutes and
[[Page 8012]]
regulations in existence upon the effective date of the lease, as well
as those applicable statutes enacted and regulations promulgated
thereafter, except to the extent that the after-enacted statutes and
regulations explicitly conflict with an express provision of the lease.
Each lease is also subject to amendments to statutes and regulations,
including but not limited to OCSLA, that do not explicitly conflict
with an express provision of the lease. The lessee expressly bears the
risk that such new or amended statutes and regulations (i.e., those
that do not explicitly conflict with an express provision of the lease)
may increase or decrease the lessee's obligations under the lease.
III. Lease Terms and Economic Conditions
Lease Terms
OCS Lease Form
BOEM will use Form BOEM-2005 (February 2017) to convey leases
resulting from this sale. This lease form can be viewed on BOEM's
website at 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:
------------------------------------------------------------------------
Water depth (meters) Primary term
------------------------------------------------------------------------
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.
[[Page 8013]]
Rental Rates
Annual rental rates are summarized in the following table:
Rental Rates per Acre or Fraction Thereof
------------------------------------------------------------------------
Water depth (meters) Years 1-5 Years 6, 7, & 8+
------------------------------------------------------------------------
0 to 12.5 percent for leases situated in water depths less than
200 meters; and
18.75 percent for leases situated in water depths of 200
meters and deeper.
Minimum Royalty Rate
$7.00 per acre or fraction thereof per year for blocks in
water depths less than 200 meters; and
$11.00 per acre or fraction thereof per year for blocks in
water depths 200 meters or deeper.
Royalty Suspension Provisions
The issuance of leases with Royalty Suspension Volumes (RSVs) or
other forms of royalty relief is authorized under existing BOEM
regulations at 30 CFR part 560. The specific details relating to
eligibility and implementation of the various royalty relief programs,
including those involving the use of RSVs, are codified in Bureau of
Safety and Environmental Enforcement (BSEE) regulations at 30 CFR part
203. In this sale, the only royalty relief program being offered that
involves the provision of RSVs relates to the drilling of ultra-deep
wells in water depths of less than 400 meters, as described in the
following section.
Royalty Suspension Volumes on Gas Production From Ultra-Deep Wells
Pursuant to 30 CFR part 203, regulations implementing the
requirements of the Energy Policy Act of 2005 (Pub. L. 109-58, 119
Stat. 594 (2005)), certain leases issued as a result of this sale may
be eligible for RSV incentives on gas produced from ultra-deep wells.
Under this program, wells on leases in less than 400 meters water depth
and completed to a drilling depth of 20,000 feet TVDSS or deeper
receive an RSV of 35 billion cubic feet on the production of natural
gas. This RSV incentive is subject to applicable price thresholds set
forth in the regulations at 30 CFR part 203.
IV. Lease Stipulations
Consistent with the Record of Decision for the Final Programmatic
Environmental Impact Statement for the 2017-2022 Five Year OCS Oil and
Gas Leasing Program, Stipulation No. 5 (Topographic Features) and
Stipulation No. 8 (Live Bottom) apply to every lease sale in the GOM
Program Area. One or more of the remaining eight stipulations may be
applied to leases issued as a result of this sale, on applicable blocks
as identified on the map ``Gulf of Mexico Region-wide Oil and Gas Lease
Sale 254, March 18, 2020, Stipulations and Deferred Blocks'' included
in the Final NOS package. The full text of the following stipulations
is contained in the ``Lease Stipulations'' section of the Final NOS
package.
(1) Military Areas
(2) Evacuation
(3) Coordination
(4) Protected Species
(5) Topographic Features
(6) United Nations Convention on the Law of the Sea Royalty Payment
(7) Agreement between the United States of America and the United
Mexican States Concerning Transboundary Hydrocarbon Reservoirs in the
Gulf of Mexico
(8) Live Bottom
(9) Blocks South of Baldwin County, Alabama
(10) Restrictions due to Rights-of-Use and Easement for Floating
Production Facilities
V. Information to Lessees
Information to Lessees (ITLs) provide detailed information on certain
issues pertaining to specific oil and gas lease sales. The full text of
the ITLs for this sale is contained in the ``Information to Lessees''
section of the Final NOS package and covers the following topics:
(1) Navigation Safety
(2) Ordnance Disposal Areas
(3) Existing and Proposed Artificial Reefs/Rigs-to-Reefs
(4) Lightering Zones
(5) Indicated Hydrocarbons List
(6) Military Areas
(7) Bureau of Safety and Environmental Enforcement Inspection and
Enforcement of Certain U.S. Coast Guard Regulations
(8) Significant Outer Continental Shelf Sediment Resource Areas
(9) Notice of Arrival on the Outer Continental Shelf
(10) Bidder/Lessee Notice of Obligations Related to Criminal/Civil
Charges and Offenses, Suspension, or Debarment; Disqualification Due to
a Conviction under the Clean Air Act or the Clean Water Act
(11) Protected Species
(12) Proposed Expansion of the Flower Garden Banks National Marine
Sanctuary
(13) Communication Towers
(14) Deepwater Port Applications for Offshore Oil and Liquefied Natural
Gas Facilities
(15) Ocean Dredged Material Disposal Sites
(16) Rights-of-Use and Easement
(17) Industrial Waste Disposal Areas
(18) Gulf Islands National Seashore
(19) Air Quality Permit/Plan Approvals
VI. Maps
The maps pertaining to this lease sale can be viewed on BOEM's
website at http://www.boem.gov/Sale-254/. The following maps are also
included in the Final NOS package:
[[Page 8014]]
Lease Terms and Economic Conditions Map
The lease terms and economic conditions associated with leases of
certain blocks are shown on the map entitled ``Gulf of Mexico Region-
wide Oil and Gas Lease Sale 254, March 18, 2020, Lease Terms and
Economic Conditions.''
Stipulations and Deferred Blocks Map
The lease stipulations and the blocks to which they apply are shown
on the map entitled ``Gulf of Mexico Region-wide Oil and Gas Lease Sale
254, March 18, 2020, Stipulations and Deferred Blocks Map.''
VII. Bidding Instructions
Bids may be submitted in person or by mail at the address below in
the ``Mailed Bids'' section. Prior to bid submittal, bidders submitting
their bid(s) in person are advised to email [email protected]
to provide the names of the company representative(s) submitting the
bid(s). Instructions on how to submit a bid, secure payment of the
advance bonus bid deposit (if applicable), and the information to be
included with the bid are as follows:
Bid Form
For each block bid upon, a separate sealed bid must be submitted in
a sealed envelope (as described below) and include the following:
Total amount of the bid in whole dollars only;
Sale number;
Sale date;
Each bidder's exact name;
Each bidder's proportionate interest, stated as a
percentage, using a maximum of five decimal places (e.g., 33.33333
percent);
Typed name and title, and signature of each bidder's
authorized officer;
Each bidder's qualification number;
Map name and number or OPD name and number;
Block number; and
Statement acknowledging that the bidder(s) understands
that this bid legally binds the bidder(s) to comply with all applicable
regulations, including the requirement to post a deposit in the amount
of one-fifth of the bonus bid amount for any tract bid upon and make
payment of the balance of the bonus bid and first year's rental upon
BOEM's acceptance of the bid as the high bid.
The information required for each bid is specified in the document
``Bid Form'' that is available in the Final NOS package, which can be
found at http://www.boem.gov/Sale-254/. A blank bid form is provided in
the Final NOS package for convenience and can be copied and completed
with the necessary information described above.
Bid Envelope
Each bid must be submitted in a separate sealed envelope labeled as
follows:
``Sealed Bid for GOM Region-wide Sale 254, not to be
opened until 9 a.m. Wednesday, March 18, 2020:''
Map name and number or OPD name and number;
Block number for block bid upon; and
The exact name and qualification number of the submitting
bidder only. The Final NOS package includes a sample bid envelope for
reference.
Mailed Bids
If bids are mailed, please address the envelope containing the
sealed bid envelope(s) as follows:
Attention: Leasing and Financial Responsibility Section, BOEM Gulf
of Mexico Region, 1201 Elmwood Park Boulevard WS-266A, New Orleans,
Louisiana 70123-2394.
Contains Sealed Bids for GOM Region-wide Sale 254. Please Deliver
to Mrs. Bridgette Duplantis or Mr. Greg Purvis, 2nd Floor, Immediately.
Please Note: Bidders mailing bid(s) are advised to inform BOEM by
email at [email protected] immediately after placing bid(s)
in the mail. This provides advance notice to BOEM regarding pending
bids prior to the bid submission deadline. However, if BOEM receives
bids later than the bid submission deadline, the BOEM GOM Regional
Director will return those bids unopened to bidders. Please see
``Section XI. Delay of Sale'' regarding BOEM's discretion to extend the
Bid Submission Deadline in the case of an unexpected event (e.g.,
flooding or travel restrictions) and how bidders can obtain more
information on such extensions.
Advance Bonus Bid Deposit Guarantee
Bidders that are not currently OCS oil and gas lease record title
holders, or those that ever have defaulted on a one-fifth bonus bid
deposit, by Electronic Funds Transfer (EFT) or otherwise, must
guarantee (secure) the payment of the one-fifth bonus bid deposit prior
to bid submission using one of the following four methods:
Provide a third-party guarantee;
Amend an area-wide development bond via bond rider;
Provide a letter of credit; or
Provide a lump sum payment in advance via EFT.
Please provide, at the time of bid submittal, a confirmation or
tracking number for an EFT payment, the name of the company submitting
the payment as it appears on the payment, and the date the payment was
submitted so BOEM can confirm payment with the Office of Natural
Resources Revenue (ONRR). Submitting payment to the bidders' financial
institution at least five business days prior to bid submittal helps
ensure that the Office of Foreign Assets Control and the U.S.
Department of the Treasury (U.S. Treasury) have the needed time to
screen and process payments so they are posted to ONRR prior to placing
the bid. ONRR cannot confirm payment until the monies have been moved
into settlement status by the U.S. Treasury. Bids will not be accepted
if BOEM cannot confirm payment with ONRR. For more information on EFT
procedures, see Section X of this document entitled, ``The Lease
Sale.''
If providing a third-party guarantee, amending an area-wide
development bond via bond rider, or providing a letter of credit to
secure your one-fifth bonus bid deposit, bidders are urged to file the
same documents with BOEM, well in advance of submitting the bid, to
allow processing time and for bidders to take any necessary curative
actions prior to bid submission.
Affirmative Action
Prior to bidding, each bidder should file the Equal Opportunity
Affirmative Action Representation Form BOEM-2032 (October 2011,
available on BOEM's website at http://www.boem.gov/BOEM-2032/) and each
bidder must file the Equal Opportunity Compliance Report Certification
Form BOEM-2033 (October 2011, available on BOEM's website at http://www.boem.gov/BOEM-2033/) with the BOEM GOM Adjudication Section. This
certification is required by 41 CFR part 60 and Executive Order (E.O.)
11246, issued September 24, 1965, as amended by E.O. 11375, issued
October 13, 1967, and by Executive Order 13672, issued July 21, 2014.
Both forms must be on file for the bidder(s) in the GOM Adjudication
Section prior to the execution of any lease contract.
Geophysical Data and Information Statement (GDIS)
The GDIS is composed of three parts:
(1) A ``Statement'' page that includes the company representatives'
information and lists of blocks bid on that used proprietary data and
those blocks bid upon that did not use proprietary data;
[[Page 8015]]
(2) A ``Table'' listing the required data about each proprietary
survey used (see below); and
(3) ``Maps,'' which contain the live trace maps for each
proprietary survey that is identified in the GDIS statement and table.
Every bidder submitting a bid on a block in GOM Region-wide Sale
254 or participating as a joint bidder in such a bid, must submit at
the time of bid submission all three parts of the GDIS. A bidder must
submit the GDIS even if a joint bidder or bidders on a specific block
also have submitted a GDIS. Any speculative data that has been
reprocessed externally or ``in-house'' is considered proprietary due to
the proprietary processing and is no longer considered to be
speculative.
The bidder or bidders must submit the GDIS in a separate sealed
envelope, and must identify all proprietary data; reprocessed
speculative data, and/or any Controlled Source Electromagnetic surveys,
Amplitude Versus Offset (AVO) data, Gravity, or Magnetic data; or other
information used as part of the decision to bid or participate in a bid
on the block. The bidder and joint bidder(s) must also include a live
trace map (e.g., .pdf and ArcGIS shapefile) for each proprietary survey
identified in the GDIS illustrating the actual areal extent of the
proprietary geophysical data in the survey (see the ``Example of
Preferred Format'' that is included in the Final NOS package for
additional information). The shape file must not include cultural
resources information; only the live trace map of the survey itself.
The GDIS statement must include the name, phone number, and full
address for a contact person and an alternate, who are both
knowledgeable about the geophysical information and data listed and who
are available for 30 days after the sale date. The GDIS statement also
must include a list of all blocks bid upon that did not use proprietary
or reprocessed pre or post-stack geophysical data and information as
part of the decision to bid or to participate as a joint bidder in the
bid. Bidders must submit the GDIS statement even if no proprietary
geophysical data and information were used in bid preparation for the
block.
An example of the preferred format of the table is included in the
Final NOS package, and a blank digital version of the preferred table
can be accessed on the GOM Region-wide Sale 254 web page at http://www.boem.gov/Sale-254. The GDIS table should have columns that clearly
state the following:
The sale number;
The bidder company's name;
The joint bidder's company's name (if applicable);
The company providing Proprietary Data to BOEM;
The block area and block number bid upon;
The owner of the original data set (i.e., who initially
acquired the data);
The industry's original name of the survey (e.g., E
Octopus);
The BOEM permit number for the survey;
Whether the data set is a fast-track version;
Whether the data is speculative or proprietary;
The data type (e.g., 2-D, 3-D, or 4-D; pre-stack or post-
stack; time or depth);
The migration algorithm (e.g., Kirchhoff migration, wave
equation migration, reverse migration, reverse time migration) of the
data and areal extent of bidder survey (i.e., number of line miles for
2-D or number of blocks for 3-D);
The live proprietary survey coverage (2-D miles; 3-D
blocks);
The computer storage size, to the nearest gigabyte, of
each seismic data and velocity volume used to evaluate the lease block;
Who reprocessed the data;
Date the final reprocessing was completed (month and
year);
If data were previously sent to BOEM, list the sale number
and date of the sale for which it was used;
Whether proprietary or speculative AVO/AVA (PROP/SPEC) was
used;
Date AVO or AVA was sent to BOEM if sent prior to the
sale;
Whether AVO/AVA is time or depth (PSTM or PSDM);
Which angled stacks were used (e.g., NEAR, MID, FAR,
ULTRAFAR);
Whether the company used Gathers to evaluate the block in
question; and
Whether the company used Vector Offset Output (VOO) or
Vector Image Partitions (VIP) to evaluate the block in question.
BOEM will use the computer storage size information to estimate the
reproduction costs for each data set, if applicable. BOEM will
determine the availability of reimbursement of production costs
consistent with 30 CFR 551.13.
BOEM reserves the right to inquire about alternate data sets, to
perform quality checks, and to compare the listed and alternative data
sets to determine which data set most closely meets the needs of the
fair market value determination process. See the ``Example of Preferred
Format'' that is included in the Final NOS package.
The GDIS maps are live trace maps (e.g., .pdf and ArcGIS
shapefiles) that bidders should submit for each proprietary survey
identified in the GDIS table. The maps should illustrate the actual
areal extent of the proprietary geophysical data in the survey (see the
``Example of Preferred Format'' that is included in the Final NOS
package for additional information). As previously stated, the
shapefile must not include cultural resources information, only the
live trace map of the survey itself.
Pursuant to 30 CFR 551.12 and 30 CFR 556.501, as a condition of the
sale, the BOEM GOM Regional Director (RD) requests that all bidders and
joint bidders submit the proprietary data identified on their GDIS
within 30 days after the lease sale (unless notified after the lease
sale that BOEM has withdrawn the request). This request only pertains
to proprietary data that is not commercially available. Commercially
available data should not be submitted to BOEM unless specifically
requested by BOEM. The BOEM GOM RD will notify bidders and joint
bidders of any withdrawal of the request, for all or some of the
proprietary data identified on the GDIS, within 15 days of the lease
sale. Where the BOEM GOM RD has notified bidders and joint bidders that
the request for such proprietary data has been withdrawn, reimbursement
will not be provided. Pursuant to 30 CFR part 551 and 30 CFR 556.501,
as a condition of this sale, all bidders that are required to submit
data must ensure that the data are received by BOEM no later than the
30th day following the lease sale, or the next business day if the
submission deadline falls on a weekend or Federal holiday.
The data must be submitted to BOEM at the following address: Bureau
of Ocean Energy Management, Resource Studies, GM 881A, 1201 Elmwood
Park Blvd., New Orleans, Louisiana 70123-2304.
BOEM recommends that bidders mark the submission's external
envelope as ``Deliver Immediately to DASPU.'' BOEM also recommends that
the data be submitted in an internal envelope, or otherwise marked,
with the following designation: ``Proprietary Geophysical Data
Submitted Pursuant to GOM Region-wide Sale 254 and used during evaluation of Block .''
In the event a person supplies any type of data to BOEM, that
person must meet the following requirements to qualify for
reimbursement:
(1) Must be registered with the System for Award Management (SAM),
formerly known as the Central Contractor Registration (CCR). CCR
usernames will not work in SAM. A new SAM user account is needed to
register or update
[[Page 8016]]
an entity's records. The website for registering is gsa.gov/iaesystems.
(2) Must be enrolled in the U.S. Treasury's Invoice Processing
Platform (IPP) for electronic invoicing. The person must enroll in the
IPP at https://www.ipp.gov/. Access then will be granted to use the IPP
for submitting requests for payment. When submitting a request for
payment, the assigned Purchase Order Number must be included.
(3) Must have a current On-line Representations and Certifications
Application at gsa.gov/iaesystems.
Please Note: A digital as well as a printed copy should be sent in
for the GDIS Statement, Table and Maps. The GDIS Statement should be
sent in as a digital PDF. The GDIS Information Table must be submitted
digitally as an Excel spreadsheet. The Proprietary Maps should be sent
in as PDF files and the live trace outline of each proprietary survey
should also be submitted as a shapefile. Bidder may submit the digital
files on a CD, DVD, or any USB external drive (formatted for Windows).
If bidders have any questions, please contact Ms. Dee Smith at (504)
736-2706, or Ms. Teree Campbell at (504) 736-3231.
Bidders should refer to Section X of this document, ``The Lease
Sale: Acceptance, Rejection, or Return of Bids,'' regarding a bidder's
failure to comply with the requirements of the Final NOS, including any
failure to submit information as required in the Final NOS or Final NOS
package.
Telephone Numbers/Addresses of Bidders
BOEM requests that bidders provide this information in the
suggested format prior to or at the time of bid submittal. The
suggested format is included in the Final NOS package. The form must
not be enclosed inside the sealed bid envelope.
Additional Documentation
BOEM may require bidders to submit other documents in accordance
with 30 CFR 556.107, 30 CFR 556.401, 30 CFR 556.501, and 30 CFR
556.513.
VIII. Bidding Rules and Restrictions
Restricted Joint Bidders
On November 5, 2019, BOEM published the most recent List of
Restricted Joint Bidders in the Federal Register at 84 FR 59644.
Potential bidders are advised to refer to the Federal Register, prior
to bidding, for the most current List of Restricted Joint Bidders in
place at the time of the lease sale. Please refer to the joint bidding
regulations at 30 CFR 556.511-515.
Authorized Signatures
All signatories executing documents on behalf of bidder(s) must
execute the same in conformance with the BOEM qualification records.
Bidders are advised that BOEM considers the signed bid to be a legally
binding obligation on the part of the bidder(s) to comply with all
applicable regulations, including that requiring payment of one-fifth
of the bonus bid on all apparent high bids. A statement to this effect
is included on each bid form (see the document ``Bid Form'' that is
included in the Final NOS package).
Unlawful Combination or Intimidation
BOEM warns bidders against violation of 18 U.S.C. 1860, which
prohibits unlawful combination or intimidation of bidders.
Bid Withdrawal
Bids may be withdrawn only by written request delivered to BOEM
prior to the bid submission deadline. The withdrawal request must be on
company letterhead and must contain the bidder's name, its BOEM
qualification number, the map name/number, and the block number(s) of
the bid(s) to be withdrawn. The withdrawal request must be executed by
one or more of the representatives named in the BOEM qualification
records. The name and title of the authorized signatory must be typed
under the signature block on the withdrawal request. The BOEM GOM RD,
or the RD's designee, will indicate approval by signing and dating the
withdrawal request.
Bid Rounding
Minimum bonus bid calculations, including rounding, for all blocks,
are shown in the document ``List of Blocks Available for Leasing''
included in the Final NOS package. The bonus bid amount must be stated
in whole dollars. If the acreage of a block contains a decimal figure,
then prior to calculating the minimum bonus bid, BOEM rounded up to the
next whole acre. The appropriate minimum rate per acre was then applied
to the whole (rounded up) acreage. The bonus bid amount must be greater
than or equal to the minimum bonus bid so calculated and stated in the
Final NOS package.
IX. Forms
The Final NOS package includes instructions, samples, and/or the
preferred format for the items listed below. BOEM strongly encourages
bidders to use the recommended formats. If bidders use another format,
they are responsible for including all the information specified for
each item in the Final NOS package.
(1) Bid Form
(2) Sample Completed Bid
(3) Sample Bid Envelope
(4) Sample Bid Mailing Envelope
(5) Telephone Numbers/Addresses of Bidders Form
(6) GDIS Form
(7) GDIS Envelope Form
X. The Lease Sale
Bid Opening and Reading
Sealed bids received in response to the Final NOS will be opened at
the place, date, and hour specified under the DATES and ADDRESSES
sections of the Final NOS. The venue will not be open to the public.
Instead, the bid opening will be available for the public to view on
BOEM's website at www.boem.gov via live-streaming. The opening of the
bids is for the sole purpose of publicly announcing and recording the
bids received; no bids will be accepted or rejected at that time.
Bonus Bid Deposit for Apparent High Bids
Each bidder submitting an apparent high bid must submit a bonus bid
deposit to ONRR equal to one-fifth of the bonus bid amount for each
such bid. A copy of the notification of the high bidder's one-fifth
bonus bid amount can be obtained on the BOEM website at http://www.boem.gov/Sale-254 under the heading ``Notification of EFT \1/5\
Bonus Liability'' after 1:00 p.m. on the day of the sale. All payments
must be electronically deposited into an interest-bearing account in
the U.S. Treasury by 1:00 p.m. Eastern Time the day following the bid
reading (no exceptions). Account information is provided in the
``Instructions for Making Electronic Funds Transfer Bonus Payments''
found on the BOEM website identified above.
Submitting payment to your financial institution as soon as
possible the day of bid reading, but no later than 7:00 p.m. Eastern
Time the day of bid reading, will help ensure that deposits have time
to process through the U.S. Treasury and post to ONRR. ONRR cannot
confirm payment until the monies have been moved into settlement status
by the U.S. Treasury.
BOEM requires bidders to use EFT procedures for payment of one-
fifth bonus bid deposits for GOM Region-wide Sale 254, following the
detailed instructions contained on the ONRR Payment Information web
page at https://www.onrr.gov/ReportPay/payments.htm. Acceptance of a
deposit does not constitute, and will not be
[[Page 8017]]
construed as, acceptance of any bid on behalf of the United States.
Withdrawal of Blocks
The United States reserves the right to withdraw any block from
this lease sale prior to issuance of a written acceptance of a bid for
the block.
Acceptance, Rejection, or Return of Bids
The United States reserves the right to reject any and all bids. No
bid will be accepted, and no lease for any block will be awarded to any
bidder, unless:
(1) The bidder has complied with all applicable regulations and
requirements of the Final NOS, including those set forth in the
documents contained in the Final NOS package;
(2) The bid is the highest valid bid; and
(3) The amount of the bid has been determined to be adequate by the
authorized officer.
Any bid submitted that does not conform to the requirements of the
Final NOS and Final NOS package, OCSLA, or other applicable statute or
regulation will be rejected and returned to the bidder. The United
States Department of Justice and the Federal Trade Commission will
review the results of the lease sale for antitrust issues prior to the
acceptance of bids and issuance of leases.
Bid Adequacy Review Procedures for GOM Region-Wide Sale 254
To ensure that the U.S. Government receives a fair return for the
conveyance of leases from this sale, BOEM will evaluate high bids in
accordance with its bid adequacy procedures, which are available on
BOEM's website at 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 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 http://www.boem.gov, for
information regarding any changes.
Walter D. Cruickshank,
Acting Director, Bureau of Ocean Energy Management.
[FR Doc. 2020-02716 Filed 2-11-20; 8:45 am]
BILLING CODE 4310-MR-P
