Final Notice of Oil and Gas Lease Sale (208): Outer Continental Shelf (OCS) Central Planning Area (CPA) Gulf of Mexico (GOM)
Federal Register: January 14, 2009 (Volume 74, Number 9)
Notices
Page 2092-2098
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
DOCID:fr14ja09-90
DEPARTMENT OF THE INTERIOR
Minerals Management Service (MMS)
Outer Continental Shelf (OCS) Central Planning Area (CPA) Gulf of
Mexico (GOM) Oil and Gas Lease Sale 208
AGENCY: Minerals Management Service, Interior.
ACTION: Final Notice of Sale (NOS) 208.
SUMMARY: On Wednesday, March 18, 2009, the MMS will open and publicly announce bids received for blocks offered in CPA Oil and Gas Lease Sale 208, pursuant to the OCS Lands Act (43 U.S.C. 1331-1356, as amended) and the regulations issued thereunder (30 CFR Part 256). The Final
Notice of Sale 208 Package (Final NOS 208 Package) contains information essential to bidders, and bidders are charged with the knowledge of the documents contained in the Package.
DATES: Public bid reading for the CPA Oil and Gas Lease Sale 208 will begin at 9 a.m., Wednesday, March 18, 2009, at the Louisiana Superdome, 1500 Sugarbowl Drive, New Orleans, Louisiana 70112. The lease sale will be held in the St. Charles Club Room on the second floor (Loge Level).
Entry to the Superdome will be on the Poydras Street side of the building through Gate A on the Ground or Plaza Level, and parking should be available at Garage 6. All times referred to in this document are local New Orleans times, unless otherwise specified.
ADDRESSES: Bidders can obtain a Final NOS 208 Package containing this
Notice of Sale and several supporting and essential documents referenced herein from the MMS Gulf of Mexico Region Public Information
Unit, 1201 Elmwood Park Boulevard, New Orleans, Louisiana 70123-2394,
(504) 736-2519 or (800) 200-GULF, or via the MMS GOM Homepage Address on the Internet at: http://www.gomr.mms.gov.
Filing of Bids: Bidders must submit sealed bids to the Regional
Director (RD), MMS 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, March 17, 2009, the day before the lease sale. If bids are mailed, please address the envelope containing all of the sealed bids as follows: Attention: Supervisor, Sales and Support Unit (MS 5422),
Leasing Activities Section, MMS Gulf of Mexico Region, 1201 Elmwood
Park Boulevard, New Orleans, Louisiana 70123-2394.
Contains Sealed Bids for CPA Oil and Gas Lease Sale 208 Please Deliver to Ms. Nancy Kornrumpf, 6th Floor, Immediately
Please note: Bidders mailing bid(s) are advised to call Ms.
Nancy Kornrumpf immediately after putting their bid(s) in the mail at (504) 736-2726.
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, the MMS Gulf of Mexico
Region may extend the Bid Submission Deadline. Bidders may call (504) 736-0557 or access our Web site at: http://www.gomr.mms.gov for information about the possible extension of the Bid Submission Deadline due to such an event.
Areas Offered for Leasing: The MMS is offering for leasing in CPA
Oil and Gas Lease Sale 208, all blocks and partial blocks listed in the document ``List of Blocks Available for Leasing'' included in the Final
NOS 208 Package. All of these blocks are shown on the following leasing maps and Official Protraction Diagrams (OPD's):
Outer Continental Shelf Leasing Maps--Louisiana Map Numbers 1 through 12 (These 30 Maps Sell for $2.00 each)
LA1 West Cameron Area (Revised November 1, 2000)
LA1A West Cameron Area, West Addition (Revised February 28, 2007)
LA1B West Cameron Area, South Addition (Revised February 28, 2007)
LA2 East Cameron Area (Revised November 1, 2000)
LA2A East Cameron Area, South Addition (Revised November 1, 2000)
LA3 Vermilion Area (Revised November 1, 2000)
LA3A South Marsh Island Area (Revised November 1, 2000)
LA3B Vermilion Area, South Addition (Revised November 1, 2000)
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LA3C South Marsh Island Area, South Addition (Revised November 1, 2000)
LA3D South Marsh Island Area, North Addition (Revised November 1, 2000)
LA4 Eugene Island Area (Revised November 1, 2000)
LA4A Eugene Island Area, South Addition (Revised November 1, 2000)
LA5 Ship Shoal Area (Revised November 1, 2000)
LA5A Ship Shoal Area, South Addition (Revised November 1, 2000)
LA6 South Timbalier Area (Revised November 1, 2000)
LA6A South Timbalier Area, South Addition (Revised November 1, 2000)
LA6B South Pelto Area (Revised November 1, 2000)
LA6C Bay Marchand Area (Revised November 1, 2000)
LA7 Grand Isle Area (Revised November 1, 2000)
LA7A Grand Isle Area, South Addition (Revised February 17, 2004)
LA8 West Delta Area (Revised November 1, 2000)
LA8A West Delta Area, South Addition (Revised November 1, 2000)
LA9 South Pass Area (Revised November 1, 2000)
LA9A South Pass Area, South and East Additions (Revised November 1, 2000)
LA10 Main Pass Area (Revised November 1, 2000)
LA10A Main Pass Area, South and East Additions (Revised November 1, 2000)
LA10B Breton Sound Area (Revised November 1, 2000)
LA11 Chandeleur Area (Revised November 1, 2000)
LA11A Chandeleur Area, East Addition (Revised November 1, 2000)
LA12 Sabine Pass Area (Revised February 28, 2007)
Outer Continental Shelf Official Protraction Diagrams (These 19
Diagrams Sell for $2.00 Each)
NG15-02 Garden Banks (Revised February 28, 2007)
NG15-03 Green Canyon (Revised November 1, 2000)
NG15-05 Keathley Canyon (Revised February 28, 2007)
NG15-06 Walker Ridge (Revised November 1, 2000)
NG15-08 Sigsbee Escarpment (Revised February 28, 2007)
NG15-09 Amery Terrace (Revised October 25, 2000)
NG16-01 Atwater Valley (Revised November 1, 2000)
NG16-02 Lloyd Ridge (Revised August 1, 2008)
NG16-04 Lund (Revised November 1, 2000)
NG16-05 Henderson (Revised August 1, 2008)
NG16-07 Lund South (Revised November 1, 2000)
NG16-08 Florida Plain (Revised February 28, 2007)
NH15-12 Ewing Bank (Revised November 1, 2000)
NH16-04 Mobile (Revised November 1, 2000)
NH16-05 Pensacola (Revised February 28, 2007)
NH16-07 Viosca Knoll (Revised November 1, 2000)
NH16-08 Destin Dome (Revised February 28, 2007)
NH16-10 Mississippi Canyon (Revised November 1, 2000)
NH16-11 De Soto Canyon (Revised August 1, 2008)
Bidders are advised that the Central-Eastern Planning Area Boundary has been revised to match the Federal OCS Administrative Boundary for the DeSoto Canyon, Lloyd Ridge, and Henderson Areas. The new boundary splits blocks that were formerly ``stair-stepped'' and can be seen on the ``Stipulations and Deferred Blocks'' or ``Lease Terms and Economic
Conditions'' maps, included in the Final NOS 208 Package. The boundaries along the Pensacola, Destin Dome, and Florida Plain Areas will remain ``stair-stepped'' for this lease sale. The administrative boundaries can also be viewed at: http://www.mms.gov/ld/
AdminBoundaries.htm.
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 the MMS 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.mms.gov/homepg/lsesale/ map_arc.html.
For the current status of all CPA leasing maps and OPD's, please refer to 66 FR 28002 (published May 21, 2001), 69 FR 23211 (published
April 28, 2004), 72 FR 27590 (published May 16, 2007), 72 FR 35720
(published June 29, 2007), and 73 FR 63505 (October 24, 2008). In addition, Supplemental Official OCS Block Diagrams (SOBD's) are available for blocks which contain the ``U.S. 200 Nautical Mile Limit'' line and the ``U.S.-Mexico Maritime Boundary'' line. These SOBD's are also available from the MMS Gulf of Mexico Region Public Information
Unit. For additional information, please call Ms. Tara Montgomery at
(504) 736-5722.
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 208 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 ``Central
Planning Area Lease Sale 208--Unleased Split Blocks and Available
Unleased Acreage of Blocks with Aliquots and Irregular Portions Under
Lease or Deferred'' included in the Final NOS 208 Package.
Areas not Available for Leasing: The following whole and partial blocks are not offered for lease in this lease sale:
Blocks with bid decisions currently under appeal (although currently unleased, the bid decisions on the following blocks are under appeal and bids will not be accepted):
Mississippi Canyon (OPD NH16-10)
Block 943
West Delta Area (Leasing Map LA8)
Block 50
Whole blocks and portions of blocks which lie within the former
Western Gap portion of the 1.4 nautical mile buffer zone north of the continental shelf boundary between the United States and Mexico:
Amery Terrace (OPD NG 15-09)
Whole Blocks: 280, 281, 318 through 320, and 355 through 359
Portions of Blocks: 235 through 238, 273 through 279, and 309 through 317
Sigsbee Escarpment (OPD NG 15-08)
Whole Blocks: 239, 284, 331 through 341
Portions of Blocks: 151, 195, 196, 240, 241, 285 through 298, 342 through 349
Whole blocks and portions of blocks, which are adjacent to or beyond the United States Exclusive Economic Zone, in or adjacent to the area known as the Northern portion of the Eastern Gap. Please note that an additional one block setback is being deferred, starting with this
Sale:
Lund South (OPD NG 16-07)
Whole Blocks: 128, 129, 169 through 173, 209 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
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Portions of 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 23, 46 through 66, 89 through 109, 133 through 153, 177 through 196, 221 through 239, 265 through 282, 309 through 326, and 363 through 369
Portions of Blocks: 24, 25, 67, 68, 110, 111, 154, 197, 198, 240, 241, 283, 284, 327, 370, and 371
Whole blocks and portions of blocks deferred by Gulf of Mexico
Energy Security Act:
Pensacola (OPD NH 16-05)
Blocks: 751 through 754, 793 through 798, 837 through 842, 881 through 886, 925 through 930, 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
Portions of Blocks: 16, 60, 61, 89 through 91, 103 through 105, and 135 through 147
Henderson (OPD NG 16-05)
Portions of Blocks: 114, 158, 202, 246, 290, 334, 335, 378, 379, 422, and 423
Whole blocks and portions of blocks above the Sale 181 area but beyond 100 miles from the Florida coast:
DeSoto Canyon (OPD NH 16-11)
Whole Blocks: 148, and 185 through 192
Portion of Blocks: 89, 90, 91, 103 through 105, 141 through 147, 149, and 193
Statutes and Regulations: Each lease issued in this lease sale is subject to the OCS Lands Act of August 7, 1953; 43 U.S.C. 1331 et seq., as amended, hereinafter called ``the Act;'' all regulations issued pursuant to the Act and in existence upon the Effective Date of the lease; all regulations issued pursuant to the Act in the future which provide for the prevention of waste and conservation of the natural resources of the OCS and the protection of correlative rights therein; and all other applicable statutes and regulations.
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. Depictions of related areas are shown on the map ``Final, Central Planning Area,
Lease Sale 208, March 18, 2009, Lease Terms and Economic Conditions,'' for leases resulting from this lease sale.
Initial Periods: 5 years for blocks in water depths of less than 400 meters; 8 years for blocks in water depths of 400 to less than 800 meters (pursuant to 30 CFR 256.37, commencement of an exploratory well is required within the first 5 years of the initial 8-year term to avoid lease cancellation); and 10 years for blocks in water depths of 800 meters or deeper.
Extensions of Initial Periods: The 5-year initial period for a lease in water depths of less than 400 meters and issued from this sale may be extended to 8 years if a well, targeting hydrocarbons below 25,000 feet true vertical depth subsea (TVD SS), is spudded within the first 5 years of the initial period. The 3-year extension may be granted in cases where the well is drilled to a target below 25,000 feet TVD SS and also in cases where the well does not reach a depth below 25,000 feet TVD SS due to mechanical or safety reasons.
In order for the 5-year initial period to be extended to 8 years, the lessee is required to submit to the Regional Supervisor for
Production and Development, within 30 days after completion of the drilling operation, a letter providing the well number, spud date, information demonstrating the target below 25,000 feet TVD SS, and, if applicable, any safety or mechanical problems encountered that prevented the well from reaching a depth below 25,000 feet TVD SS. The
Regional Supervisor must concur in writing that the conditions have been met to extend the lease term 3 years. The Regional Supervisor will provide written confirmation of any lease extension within 30 days of receipt of the letter provided.
For any lease that has a well spudded in the first 5 years of the initial period with a hydrocarbon target below 25,000 feet TVD SS, the regulations found at 30 CFR 250.175(a), (b), and (c) will not be applicable at the end of the 5th year. For any lease that does not have a well spudded in the first 5 years of the initial period which targets hydrocarbons below 25,000 feet TVD SS, the regulations found at 30 CFR 250.175(a), (b), and (c) will be applicable, but the 3-year extension will not be available. At the end of the 8th year, the lessee is free to use all lease-term extension provisions under the regulations.
Minimum Bonus Bid Amounts: A bonus bid will not be considered for acceptance unless it provides for a cash bonus in the amount of $25 or more per acre or fraction thereof for blocks in water depths of less than 400 meters, or $37.50 or more per acre or fraction thereof for blocks in water depths of 400 meters or deeper; to confirm the exact calculation of the minimum bonus bid amount for each block, see ``List of Blocks Available for Leasing'' which is contained in the Final NOS 208 Package. Please note that bonus bids must be in whole dollar amounts (i.e., any cents will be disregarded by the MMS).
Rental Rates: Rentals for leases issued in this sale are to be paid at the rental rates summarized in the following table on or before the 1st day of each lease year until determination of well producibility is made, then at the expiration of each lease year until the start of royalty-bearing production.
Sale 208 Rental Rates per Acre or Fraction Thereof
Water depth in meters
Years 1-5
Years 6, 7, & 8
Years 9-10
0 to
