81_FR_54749 81 FR 54591 - Atlantic Wind Lease Sale 7 (ATLW-7) for Commercial Leasing for Wind Power on the Outer Continental Shelf Offshore North Carolina (Kitty Hawk)-Proposed Sale Notice and Request for Interest; MMAA104000

81 FR 54591 - Atlantic Wind Lease Sale 7 (ATLW-7) for Commercial Leasing for Wind Power on the Outer Continental Shelf Offshore North Carolina (Kitty Hawk)-Proposed Sale Notice and Request for Interest; MMAA104000

DEPARTMENT OF THE INTERIOR
Bureau of Ocean Energy Management

Federal Register Volume 81, Issue 158 (August 16, 2016)

Page Range54591-54598
FR Document2016-19552

This is the Proposed Sale Notice (PSN) for the sale of one commercial wind energy lease on the Outer Continental Shelf (OCS) offshore Kitty Hawk, North Carolina, pursuant to 30 CFR 585.216. BOEM proposes to offer Lease OCS-A 0508 for sale using an ascending-bid auction. In this PSN, you will find information pertaining to the area available for leasing, proposed lease provisions and conditions, auction details, the lease form, criteria for evaluating competing bids, award procedures, appeal procedures, and lease execution. BOEM invites public comment during a 60-day comment period following publication of this notice. The issuance of the proposed lease resulting from this sale would not constitute an approval of project- specific plans to develop offshore wind energy. Such plans, expected to be submitted by the auction winner, would be subject to subsequent environmental and technical reviews prior to a decision to proceed with development. This document is also a Request for Interest (RFI), pursuant to 30 CFR 585.212, to assess if there has been a change in competitive interest in the area encompassing proposed lease OCS-A 0508 since the publication of the North Carolina Call for Information and Nominations (Call) (77 FR 74204) on December 13, 2012. If BOEM determines that competitive interest in the proposed lease area (OCS-A 0508) still exists, BOEM will proceed with the competitive process set forth in 30 CFR 585.211 through 585.225. If BOEM determines competitive interest in the proposed lease area (OCS-A 0508) no longer exists because only one potential lessee is interested in the area, BOEM may proceed with the non-competitive process set forth in 30 CFR 585.231(d)-(i) following the receipt of the acquisition fee specified in 30 CFR 585.502(a).

Federal Register, Volume 81 Issue 158 (Tuesday, August 16, 2016)
[Federal Register Volume 81, Number 158 (Tuesday, August 16, 2016)]
[Notices]
[Pages 54591-54598]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-19552]


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DEPARTMENT OF THE INTERIOR

Bureau of Ocean Energy Management

[Docket No. BOEM-2016-0045]


Atlantic Wind Lease Sale 7 (ATLW-7) for Commercial Leasing for 
Wind Power on the Outer Continental Shelf Offshore North Carolina 
(Kitty Hawk)--Proposed Sale Notice and Request for Interest; MMAA104000

AGENCY: Bureau of Ocean Energy Management (BOEM or ``the Bureau''), 
Interior.

ACTION: Proposed sale notice and request for interest for commercial 
leasing for Wind Power on the outer continental shelf offshore North 
Carolina (Kitty Hawk).

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SUMMARY: This is the Proposed Sale Notice (PSN) for the sale of one 
commercial wind energy lease on the Outer Continental Shelf (OCS) 
offshore Kitty Hawk, North Carolina, pursuant to 30 CFR 585.216. BOEM 
proposes to offer Lease OCS-A 0508 for sale using an ascending-bid 
auction. In this PSN, you will find information pertaining to the area 
available for leasing, proposed lease provisions and conditions, 
auction details, the lease form, criteria for evaluating competing 
bids, award procedures, appeal procedures, and lease execution. BOEM 
invites public comment during a 60-day comment period following 
publication of this notice. The issuance of the proposed lease 
resulting from this sale would not constitute an approval of project-
specific plans to develop offshore wind energy. Such plans, expected to 
be submitted by the auction winner, would be subject to subsequent 
environmental and technical reviews prior to a decision to proceed with 
development. This document is also a Request for Interest (RFI), 
pursuant to 30 CFR 585.212, to assess if there has been a change in 
competitive interest in the area encompassing proposed lease OCS-A 0508 
since the publication of the North Carolina Call for Information and 
Nominations (Call) (77 FR 74204) on December 13, 2012. If BOEM 
determines that competitive interest in the proposed lease area (OCS-A 
0508) still exists, BOEM will proceed with the competitive process set 
forth in 30 CFR 585.211 through 585.225. If BOEM determines competitive 
interest in the proposed lease area (OCS-A 0508) no longer exists 
because only one potential lessee is interested in the area, BOEM may 
proceed with the non-competitive process set forth in 30 CFR 
585.231(d)-(i) following the receipt of the acquisition fee specified 
in 30 CFR 585.502(a).

DATES: Comments should be submitted electronically or postmarked no 
later than October 17, 2016. All comments received or postmarked during 
the comment period will be made available to the public and considered 
prior to publication of the Final Sale Notice (FSN).
    Everyone wishing to participate as a bidder in the proposed Kitty 
Hawk lease sale must respond to this notice by the end of the 60-day 
comment period. Prospective bidders whom BOEM has already determined 
are qualified to hold an OCS lease for commercial wind energy 
development offshore North

[[Page 54592]]

Carolina must submit a response to this notice affirming their 
continued interest in the proposed lease area. Those who are not yet 
qualified, but wish to participate as bidders in the proposed lease 
sale, must submit qualification materials by the end of the 60-day 
comment period. All qualification materials must be postmarked no later 
than October 17, 2016.

ADDRESSES: Potential auction participants, Federal, state, and local 
government agencies, tribal governments, and other interested parties 
are requested to submit their written comments on the PSN in one of the 
following ways:
    1. Electronically: http://www.regulations.gov. In the entry 
entitled, ``Enter Keyword or ID,'' enter BOEM-2016-0045 then click 
``search.'' Follow the instructions to submit public comments.
    2. Written Comments: In written form, delivered by hand or by mail, 
enclosed in an envelope labeled, ``Comments on North Carolina PSN'' to: 
BOEM Office of Renewable Energy Programs, 45600 Woodland Road, VAM-
OREP, Sterling, Virginia 20166, (703) 787-1320.
    3. Qualifications Materials: Those submitting qualifications 
materials should contact William Waskes, BOEM Office of Renewable 
Energy Programs, 45600 Woodland Road, VAM-OREP, Sterling, Virginia 
20166, (703) 787-1320, or [email protected]. If you wish to protect 
the confidentiality of your qualification materials, clearly mark the 
relevant sections and request that BOEM treat them as confidential. 
Please label privileged or confidential information with the caption 
``Contains Confidential Information'' and consider submitting such 
information as a separate enclosure. Treatment of confidential 
information is addressed in the section of this PSN entitled 
``Protection of Privileged or Confidential Information.'' Information 
that is not labeled as privileged or confidential will be regarded by 
BOEM as suitable for public release.
    4. Interest Affirmation Materials: Potential bidders who submitted 
nominations in the response to the Call, have been qualified for this 
sale, and wish to participate in the sale should contact William 
Waskes, BOEM Office of Renewable Energy Programs, 45600 Woodland Road, 
VAM-OREP, Sterling, Virginia 20166, (703) 787-1320, or 
[email protected]. If you wish to protect the confidentiality of 
your materials, clearly mark the relevant sections and request that 
BOEM treat them as confidential. Please label privileged or 
confidential information with the caption ``Contains Confidential 
Information'' and consider submitting such information as a separate 
enclosure. Treatment of confidential information is addressed in the 
section of this PSN entitled ``Protection of Privileged or Confidential 
Information.'' Information that is not labeled as privileged or 
confidential will be regarded by BOEM as suitable for public release.

FOR FURTHER INFORMATION CONTACT: Will Waskes, BOEM Office of Renewable 
Energy Programs, 45600 Woodland Road, VAM-OREP, Sterling, Virginia 
20166, (703) 787-1320 or [email protected].

    Authority:  This PSN and RFI is published pursuant to subsection 
8(p) of the OCS Lands Act (43 U.S.C. 1337(p)) (OCSLA), as amended by 
section 388 of the Energy Policy Act of 2005 (EPAct), and the 
implementing regulations at 30 CFR part 585, including 30 CFR 
585.211, 585.212, and 585.216.

Background

Area for Proposed Leasing

    The area described for leasing in this PSN, the Kitty Hawk Leasing 
Area (LA), is the same as the Kitty Hawk Wind Energy Area (WEA) that 
BOEM announced on August 11, 2014. The Area Identification announcement 
is available at: http://www.boem.gov/North-Carolina/.
    The Wilmington East and Wilmington West WEAs, which were also 
announced on August 11, 2014, have been realigned with the planning and 
leasing process for the South Carolina Call Areas. BOEM believes that 
by realigning the leasing process for these areas, a number of existing 
issues can be addressed in a holistic manner. For example, the entire 
Wilmington West WEA, a portion of the Wilmington East WEA, and the 
South Carolina Grand Strand Call Area (80 FR 73818) are all located 
within the newly expanded North Atlantic right whale (NARW) critical 
habitat (81 FR 4838). Further, the State of North Carolina and a number 
of coastal localities in southern North Carolina have expressed 
concerns regarding potential visual impacts that could result from wind 
development offshore North Carolina. Many of these communities have 
requested that BOEM remove from leasing consideration all areas within 
24 nautical miles (nm) of their respective locations, which would 
include all of Wilmington West, a portion of Wilmington East, and a 
portion of the Grand Strand Call Area. This is in contrast to South 
Carolina, where coastal localities such as the City of North Myrtle 
Beach have indicated that they are in favor of offshore wind 
development even if it would be located close to shore. Finally, 
because the Wilmington West WEA is contiguous with the Grand Strand 
Call Area, wake effects could impact the productivity and viability of 
multiple offshore wind developments within these areas.

Environmental Reviews

    On January 23, 2015, BOEM published a Notice of Availability (NOA) 
of an Environmental Assessment (EA) for commercial wind lease issuance 
and site assessment activities on the Atlantic OCS offshore North 
Carolina with a 30-day public comment period (80 FR 3621). In response 
to the NOA, BOEM received 195 comments, which are available at http://www.regulations.gov, Docket No. BOEM-2015-0001. Many of the comments 
focused on mitigation measures to protect wildlife, specifically marine 
mammals. Based on the comments received in response to the EA, public 
outreach, information meetings, and new information received, BOEM 
decided to make revisions to the EA originally published in January 
2015. As a result of the analysis in the revised EA, BOEM issued a 
Finding of No Significant Impact (FONSI) on September 18, 2015 (80 FR 
56494). The revised EA and FONSI can be found at: http://www.boem.gov/North-Carolina/.
    BOEM also considered the comments received when developing 
mitigation measures that will be enforced through the terms, 
conditions, and stipulations in Addendum C of the proposed lease (OCS-A 
0508). These mitigation measures are designed to reduce or eliminate 
impacts from survey activities. They are based on the best available 
science and BOEM's Endangered Species Act (ESA) consultation with the 
National Marine Fisheries Service (NMFS). Additional mitigation 
measures related to the installation and operation of meteorological 
towers and/or buoys will be included as terms and conditions of the 
lessee's Site Assessment Plan (SAP) approval. BOEM will continue to 
work with interested stakeholders and reassess mitigation measures as 
research and data become available.
    In addition, BOEM has concluded consultations under the ESA and the 
Magnuson-Stevens Fishery Conservation and Management Act (MSFCMA) 
covering the proposed lease sale, associated site characterization 
surveys, and subsequent site assessment activities. BOEM will initiate 
consultations with the States of North Carolina and Virginia under the 
Coastal Zone Management Act (CZMA)

[[Page 54593]]

concurrent with the publication of this PSN.
    In order to guide its consultation under section 106 of the 
National Historic Preservation Act (NHPA) for renewable energy 
activities offshore North Carolina, BOEM executed a programmatic 
agreement (PA) with the State Historic Preservation Officer of North 
Carolina and the Advisory Council on Historic Preservation. The PA 
provides for consultation to continue throughout BOEM's commercial 
leasing process and the decisionmaking process regarding the approval, 
approval with modification, or disapproval of a lessees' SAP, 
Construction and Operations Plan (COP), or other plan. In addition, the 
PA allows for phased identification and evaluation of historic 
properties. The PA can be found at: http://www.boem.gov/South-Atlantic-Renewable-Energy-Activities/.
    On May 7, 2015, BOEM completed its section 106 review for the 
undertaking of issuing commercial leases within the North Carolina WEAs 
and published a Finding of No Historic Properties Affected For the 
Issuance of Commercial Leases within the Kitty Hawk, Wilmington East 
and Wilmington West Wind Energy Areas For Wind Energy Development on 
the Outer Continental Shelf Offshore North Carolina. The Finding can be 
found at: http://www.boem.gov/NC-WEAs-Lease-Issuance/.
    Additional environmental reviews and consultations will be 
conducted upon receipt of the Lessee's SAP and COP.

Additional Participation in the Proposed Lease Sale

    Any parties wishing to participate in the proposed Kitty Hawk lease 
sale that have not already been legally, financially, and technically 
qualified to hold a lease for commercial wind development offshore 
North Carolina must submit the required qualification materials by the 
end of the 60-day comment period for this notice. Guidelines to 
prospective lessees on BOEM's requirements to qualify for and hold a 
renewable energy lease on the OCS and the type of information that 
should be submitted to demonstrate your legal, technical, and financial 
qualifications can be found at: http://www.boem.gov/Renewable-Energy-Program/Regulatory-Information/QualificationGuidelines-pdf.aspx. 
Documentation you submit must be provided to BOEM in both paper and 
electronic formats. BOEM considers an Adobe PDF file stored on a 
storage media device to be an acceptable format for submitting an 
electronic copy. Please note that it may take a number of weeks for 
BOEM to assess a potential bidder's legal, technical, and financial 
qualifications. BOEM advises potential bidders who plan to participate 
in a sale to establish their qualifications promptly. It is not 
uncommon for BOEM to request additional materials establishing 
qualifications following an initial review of the qualifications 
package. BOEM cannot determine a potential bidder to be qualified 
without a complete qualification package. Potential bidders who BOEM 
has not determined to be qualified before the FSN is published will not 
be allowed to participate in the proposed sale.

Request for Interest

Affirmation of Interest Received in Response to the North Carolina Call 
for Information and Nominations of Interest for the Kitty Hawk WEA

    Legally, technically, and financially qualified entities who 
submitted a nomination in response to the North Carolina Call must 
respond to this notice and indicate whether: (1) They wish to continue 
with their Call nomination for the Kitty Hawk WEA; or (2) they wish to 
withdraw their Call nomination from further consideration. If such 
entities do not respond by the comment period deadline associated with 
this notice, BOEM will deem their nominations submitted in response to 
the North Carolina Call to be withdrawn, and they will not be able to 
participate in the proposed lease sale. BOEM is issuing this Request 
for Interest due to the large amount of time that has elapsed since its 
initial solicitation of commercial interest through its Call in 
December 2012 and the experience of past lease sales, in which a 
significant number of companies that expressed competitive interest in 
response to the Call choose not to submit a Bidder's Financial Form 
(BFFs) or Bid Deposits.
    Deadlines and Milestones for Bidders: This section describes the 
major deadlines and milestones in the auction process from publication 
of this PSN to execution of the lease pursuant to this proposed sale. 
This process is organized into five stages: (1) The PSN comment period; 
(2) from the end of PSN comment period to publication of the FSN; (3) 
the FSN waiting period; (4) conducting the auction; and (5) from the 
auction to Lease Execution.

The PSN Comment Period

     Submit Comments: The public is invited to submit comments 
during this 60-day period, which will expire on October 17, 2016.
     Public Seminar: BOEM will host a public seminar to discuss 
the lease sale process and the auction format. The time and place of 
the seminar will be announced by BOEM and published on the BOEM Web 
site at http://www.boem.gov/North-Carolina/. No registration or RSVP is 
required to attend.
     Submit Qualifications Materials: All qualifications 
materials must be received by BOEM by the end of the 60-day PSN comment 
period, October 17, 2016. This includes materials sufficient to 
establish a company's legal, technical, and financial qualifications 
pursuant to 30 CFR 585.106-107.
     Submit Interest Affirmation Materials: In order to 
participate in the proposed Kitty Hawk lease sale, potential bidders 
whom BOEM has determined to be legally, technically, and financially 
qualified to hold an OCS lease for commercial wind energy development 
offshore North Carolina, must submit a response to this notice 
affirming their continued interest in participating in the proposed 
lease sale by the end of the 60-day comment period, October 17, 2016.

End of PSN Comment Period to FSN Publication

     Review Comments: BOEM will review all comments submitted 
in response to the PSN during the comment period.
     Finalize Qualifications Reviews: BOEM will complete any 
outstanding reviews of bidder qualifications materials submitted during 
the PSN comment period and requested by BOEM prior to the publication 
of the FSN. The final list of eligible bidders will be published in the 
FSN.
     Prepare the FSN: Should BOEM determine that competitive 
interest still exists in leasing the Kitty Hawk WEA, and BOEM decides 
to move forward with a lease sale, BOEM will prepare the FSN by 
updating information contained in the PSN where appropriate.
     Publish FSN: If BOEM decides to move forward with a lease 
sale, BOEM will publish the FSN in the Federal Register.
    FSN Waiting Period. During this period, qualified bidders must take 
several steps before participating in the auction.
     Bidder's Financial Form (BFF): BOEM must receive each 
qualified bidder's completed and signed BFF no later than the date 
listed in the FSN. Typically, this deadline is approximately 14 
calendar days after publication of the FSN in the Federal

[[Page 54594]]

Register. BOEM will consider extensions to this deadline only if BOEM 
determines that the failure to timely submit the BFF was caused by 
events beyond the bidder's control. Blank BFFs can be found at: http://www.boem.gov/North-Carolina/. Once the BFF has been processed, bidders 
may log into pay.gov and submit bid deposits. BOEM will only accept an 
originally executed paper copy of the BFF, and will not consider for 
this auction BFFs submitted for previous lease sales. The BFF must be 
executed by an authorized representative as shown on the bidder's legal 
qualifications. Each bidder is required to sign the self-certification 
in the BFF, in accordance with 18 U.S.C. 1001 (Fraud and False 
Statements).
     Bid Deposits: Each qualified bidder must submit a bid 
deposit of $450,000 no later than the date listed in the FSN. 
Typically, this deadline is approximately 30 calendar days after the 
publication of the FSN. BOEM will consider extensions to this deadline 
only if BOEM determines that the failure to timely submit the bid 
deposit was caused by events beyond the bidder's control.
     Mock Auction: BOEM will hold an online Mock Auction that 
is open only to qualified bidders who have met the requirements and 
deadlines for auction participation, including submission of the bid 
deposit. Final details of the Mock Auction will be provided in the FSN.
    Conduct of the Auction. BOEM, through its contractor, will hold an 
auction as described in the FSN. The auction will take place no sooner 
than 30 days following publication of the FSN in Federal Register. The 
estimated timeframes described in this PSN assume the auction will take 
place approximately 45 days after publication of the FSN.
    From Auction to Lease Execution. There are several steps between 
the conclusion of the auction and execution of the lease.
     Bid Deposit Refund: BOEM will refund the bid deposit of 
any bidder that did not win the lease. BOEM will provide a written 
explanation of why the bidder did not win.
     Department of Justice (DOJ) Review: The DOJ has 30 days in 
which to conduct an antitrust review of the auction in consultation 
with the Federal Trade Commission, pursuant to 43 U.S.C Sec.  1337(c).
     Delivery of the Lease: BOEM will send three lease copies 
to the winner, with instructions on how to sign the lease. The first 
year's rent is due 45 days after the winner receives the lease copies 
for execution.
     Return the Lease: Within 10 business days of receiving the 
lease copies, the auction winner must post financial assurance, pay any 
outstanding balance of their bonus bid (i.e., winning monetary bid 
minus bid deposit), and sign and return the three signed lease copies.
     Execution of the Lease: Once BOEM has received the lease 
copies and verified that it has received all other required materials, 
BOEM will execute the lease if appropriate.
    Area Proposed for Leasing: The area available for sale will be 
auctioned as one lease, Lease OCS-A 0508 (Kitty Hawk LA). The Kitty 
Hawk LA consists of 122,405 acres. A description of the proposed lease 
area can be found in Addendum A of the proposed lease, which BOEM has 
made available with this notice on its Web site at: http://www.boem.gov/North-Carolina/.

Map of the Area Proposed for Leasing

    A map of the proposed Kitty Hawk LA, GIS spatial files, and a table 
of the boundary coordinates in X, Y (eastings, northings) UTM Zone 18, 
NAD83 Datum, and geographic X, Y (longitude, latitude), NAD83 Datum can 
be found on BOEM's Web site at: http://www.boem.gov/North-Carolina/.
    A large scale map of the area, showing boundaries of the area with 
numbered blocks, is available from BOEM upon request at the following 
address: Bureau of Ocean Energy Management, Office of Renewable Energy 
Programs, 45600 Woodland Road, VAM-OREP, Sterling, Virginia 20166, 
Phone: (703) 787-1300, Fax: (703) 787-1708.
    Withdrawal of Blocks: BOEM reserves the right to withdraw portions 
of the proposed lease area prior to its execution of the lease based 
upon relevant information provided to the Bureau.
    Lease Terms and Conditions: BOEM has made available proposed terms, 
conditions, and stipulations for the OCS commercial wind lease to be 
offered through this proposed sale. If and when the lease is issued, 
BOEM reserves the right to require compliance with additional terms and 
conditions associated with approval of a SAP or COP. The proposed lease 
is on BOEM's Web site at: http://www.boem.gov/North-Carolina/. The 
lease includes the following seven attachments:

 Addendum A (Description of Leased Area and Lease Activities)
 Addendum B (Lease Term and Financial Schedule)
 Addendum C (Lease Specific Terms, Conditions, and 
Stipulations)
 Addendum D (Project Easement)
 Addendum E (Rent Schedule post COP approval)
 Appendix A to Addendum C (Incident Report: Protected Species 
Injury or Mortality)
 Appendix B to Addendum C (Required Data Elements for Protected 
Species Observer Reports)

    Addenda A, B, and C provide detailed descriptions of lease terms 
and conditions. Addendum D will be completed at the time of COP 
approval or approval with modifications. Addendum E will be completed 
after COP approval or approval with conditions.
    BOEM is soliciting comments on the provisions of Addendum C that 
require the submission of SAP and COP survey plans. Specifically, BOEM 
is interested in whether potential lessees and other stakeholders find 
the timeframes associated with those requirements to be reasonable, and 
whether those provisions could be written in a manner that better 
describes the realities associated with offshore wind survey efforts 
(e.g., referring to ``survey mobilizations'' instead of ``SAP surveys'' 
and ``COP surveys'' specifically).
    Plans. Pursuant to 30 CFR 585.601, the leaseholder must submit a 
SAP within 12 months of lease issuance and a COP at least 6 months 
before the end of the site assessment term of the lease.
    Financial Terms and Conditions: This section provides an overview 
of the annual payments required of a lessee that are described in the 
proposed lease, and the financial assurance requirements that will be 
associated with the lease if it is awarded.
    Rent. Pursuant to 30 CFR 585.224(b) and 585.503, the first year's 
rent payment of $3 per acre is due within 45 days of the date the 
lessee receives the lease for execution. Thereafter, annual rent 
payments are due on the anniversary of the Effective Date of the lease 
(the ``Lease Anniversary''). Once commercial operations under the lease 
begin, BOEM will charge rent only for the portions of the lease not 
authorized for commercial operations, i.e., not generating electricity. 
However, instead of geographically dividing the lease area into acreage 
that is ``generating'' and ``non-generating,'' the fraction of the 
lease accruing rent will be based on the fraction of the total 
nameplate capacity of the project that is not yet in operation. This 
fraction is calculated by dividing the nameplate capacity not yet 
authorized for commercial operations at the time payment is due by the 
anticipated nameplate capacity after full

[[Page 54595]]

installation of the project (as described in the COP). The annual rent 
due for a given year is then derived by multiplying this fraction by 
the amount of rent that would have been due for the lessee's entire 
lease area at the rental rate of $3 per acre.
    For example, a 122,405 acre lease (the size of the entire Kitty 
Hawk LA); will have a rent payment of $367,215 per year if no portion 
of the leased area is authorized for commercial operations. If 300 
megawatts (MW) of a project's nameplate capacity is operating (or 
authorized for operation), and the approved COP specifies a maximum 
project size of 500 MW, the rent payment will be $146,886. This payment 
is based on the 200 MW of nameplate capacity BOEM has not yet 
authorized for commercial operations. For the above example, this would 
be calculated as follows: 200MW/500MW x ($3/acre x 122,405 acres) = 
$146,886.
    If the lessee submits an application for relinquishment of a 
portion of its lease area within the first 45 calendar days following 
the date that the lease is received by the lessee for execution, and 
BOEM approves that application, no rent payment will be due on that 
relinquished portion of the lease area. Later relinquishments of any 
portion of the lease area will reduce the lessee's rent payments 
starting in the year following BOEM's approval of the relinquishment.
    The lessee also must pay rent for any project easement associated 
with the lease, commencing on the date that BOEM approves the COP (or 
modification thereof) that describes the project easement. Annual rent 
for a project easement that is 200 feet wide and centered on the 
transmission cable is $70 per statute mile. For any additional acreage 
required, the lessee must also pay the greater of $5 per acre per year 
or $450 per year.

Operating Fee

    For purposes of calculating the initial annual operating fee 
payment and pursuant to 30 CFR 585.506, an operating fee rate is 
applied to a proxy for the wholesale market value of the electricity 
expected to be generated from the project during its first twelve 
months of operations. This initial payment will be prorated to reflect 
the period between the commencement of commercial operations and the 
Lease Anniversary. The initial annual operating fee payment is due 
within 45 days of the commencement of commercial operations. 
Thereafter, subsequent annual operating fee payments are due on or 
before each Lease Anniversary.
    The subsequent annual operating fee payments are calculated by 
multiplying the operating fee rate by the imputed wholesale market 
value of the projected annual electric power production for the 
project. For the purposes of this calculation, the imputed market value 
is the product of the project's annual nameplate capacity, the total 
number of hours in the year (8,760), the capacity factor, and the 
annual average price of electricity derived from a historical regional 
wholesale power price index. For example, the annual operating fee for 
a 100 MW wind facility operating at a 40% capacity (i.e., capacity 
factor of 0.4) with a regional wholesale power price of $40/MWh and an 
operating fee rate of 0.02 would be calculated as follows:
[GRAPHIC] [TIFF OMITTED] TN16AU16.000

    Operating Fee Rate. The operating fee rate is the share of imputed 
wholesale market value of the projected annual electric power 
production due to BOEM as an annual operating fee. For the proposed 
Kitty Hawk LA, BOEM will set the fee rate at 0.02 (i.e., 2 percent) for 
the entire life of commercial operations.
    Nameplate Capacity. Nameplate capacity is the maximum rated 
electric output, expressed in MW, that the turbines of the wind 
facility under commercial operations can produce at their rated wind 
speed as designated by the turbine's manufacturer. The lessee will 
specify in its COP the nameplate capacity available at the start of 
each year of commercial operations on the lease. For example, if the 
lessee specifies 20 turbines in its COP, and each is rated by the 
design manufacturer at 5 MW, the nameplate capacity of the wind 
facility would be 100 MW.
    Capacity Factor. The capacity factor compares the amount of energy 
delivered to the grid during a period of time to the amount of energy 
the wind facility would have produced at full capacity. The amount of 
power delivered will always be less than the theoretical 100 percent 
capacity, largely because of the variability of wind speeds, 
transmission line loss, and down time for maintenance or other 
purposes.
    The capacity factor is expressed as a decimal between zero and one, 
and represents the share of anticipated generation of the wind facility 
that is delivered to the interconnection grid (i.e., where the lessee's 
facility interconnects with the electric grid) relative to the wind 
facility's generation at continuous full power operation at nameplate 
capacity. For the proposed lease area, BOEM has set the capacity factor 
for the year in which commercial operations commence and the six full 
years thereafter at 0.4 (i.e., 40 percent). At the end of the sixth 
year, BOEM may adjust the capacity factor to reflect the performance 
over the previous five years based upon the actual metered electricity 
generation at the delivery point to the electrical grid. BOEM may make 
similar adjustments to the capacity factor once every five years 
thereafter. The maximum change in the capacity factor from one period 
to the next will be limited to plus or minus 10 percent of the previous 
period's value.
    Wholesale Power Price Index. Pursuant to 30 CFR 585.506(c)(2)(i), 
the wholesale power price, expressed in dollars per MW-hour, is 
determined at the time each annual operating fee payment is due, based 
on the weighted average of the inflation-adjusted peak and off-peak 
spot price indices for the PJM Dominion zone for the most recent year 
of spot price data available. The wholesale power price is adjusted for 
inflation from the year associated with the published spot price 
indices to the year in which the operating fee is to be due, based on 
the Lease Anniversary and using annual implicit price deflators as 
reported by the U.S. Department of Commerce Bureau of Economic 
Analysis. BOEM proposes to use the PJM Dominion power price as the 
price in its operating fee formula. BOEM is soliciting further comments 
on the merits of other electric power prices, including prices from 
other hubs within the PJM Virginia Power Company electric region that 
may be used in lieu of or in combination with the current proposed 
power price.

Financial Assurance

    Within 10 business days after receiving the lease copies and 
pursuant to 30 CFR 585.515-516, the provisional winner of the Kitty 
Hawk LA must provide an initial lease-specific bond or other approved 
means of meeting the lessor's initial financial assurance requirements. 
The provisionally

[[Page 54596]]

winning bidder may meet financial assurance requirements by posting a 
surety bond or by setting up an escrow account with a trust agreement 
giving BOEM the right to withdraw the money held in the account on 
demand. BOEM encourages the provisionally winning bidder to discuss the 
financial assurance requirement with BOEM as soon as possible after the 
auction has concluded.
    BOEM will base the amount of all SAP, COP, and decommissioning 
financial assurance requirements on cost estimates for meeting all 
accrued lease obligations at the respective stages of development. The 
required amount of supplemental and decommissioning financial assurance 
will be determined on a case-by-case basis.
    The financial terms described above can be found in Addendum B of 
the proposed lease, which BOEM has made available with this notice on 
its Web site at: http://www.boem.gov/North-Carolina/.
    Bid Deposit: A bid deposit is an advance cash payment submitted to 
BOEM in order to participate in the auction. Each qualified bidder must 
submit a bid deposit of $450,000 no later than the deadline provided in 
the FSN. Any qualified bidder who fails to submit the bid deposit by 
this deadline may be disqualified from participating in the auction. 
Bid deposits will be accepted online via pay.gov.
    Following the auction, bid deposits will be applied against bonus 
bids or other obligations owed to BOEM. If the bid deposit exceeds a 
bidder's total financial obligation, the balance of the bid deposit 
will be refunded to the bidder. BOEM will refund bid deposits to non-
winners.
    Bidder Financial Form: Each bidder must fill out the BFF referenced 
in this PSN. BOEM has also made a copy of the form available with this 
notice on its Web site at: http://www.boem.gov/North-Carolina/. BOEM 
recommends that each bidder designate an email address in its BFF that 
the bidder will then use to create an account in pay.gov (if it has not 
already done so). Bidders may then use the Bid Deposit Form on the 
pay.gov Web site to leave a deposit.
    BOEM will not consider BFFs submitted by qualified bidders for 
previous lease sales to satisfy the requirements of the proposed Kitty 
Hawk lease sale. BOEM will also only consider BFFs submitted after the 
deadline if BOEM determines that the failure to timely submit the BFF 
was caused by events beyond the bidder's control. BOEM will only accept 
an original, executed paper copy of the BFF. The BFF must be executed 
by an authorized representative who has been identified in the 
qualifications package on file with BOEM as authorized to bind the 
company.
    Minimum Bid: The minimum bid is the lowest price BOEM will accept 
as a winning bid. BOEM has established a minimum bid per acre of $2.00 
or $244,810 for the proposed lease sale.
    Auction Procedures: The following is a summary of the auction 
procedures that BOEM proposes to use if it proceeds with the proposed 
Kitty Hawk lease sale.

Summary of Auction Format

    As authorized under 30 CFR 585.220(a)(2) and 585.221(a)(1), BOEM 
intends to conduct the proposed lease sale using an ascending bidding 
auction with cash as the bid variable. Using an online bidding system 
to host the auction, BOEM sets an initial asking price for Lease OCS-A 
0508 and increases that price incrementally until no more than one 
active bidder remains in the auction. A bid submitted at the full 
asking price for the lease in a particular round is referred to as a 
live bid. During each round, active bidders may: (1) Submit a live bid 
indicating that they are interested in acquiring the lease at the 
current round's stated asking price, or (2) submit an exit bid (see 
below for discussion of exit bids). All bids are considered binding 
until BOEM has determined the winning bid.
    A bidder remains active in the auction as long as it continues to 
meet BOEM's asking price in each round. If more than one live bid is 
received in a round, BOEM increases the asking price incrementally and 
conducts another auction round. BOEM would raise the asking price 
following any round in which two or more bidders submitted live bids. 
The auction concludes at the end of the round in which the number of 
live bids received falls to one or zero.
    Asking price increments are in BOEM's sole discretion. They will be 
determined round-by-round and based on a number of factors, including, 
but not necessarily limited to, the number of bidders remaining in the 
lease sale, the expected time needed to conduct the auction, and the 
number of rounds that have already occurred. BOEM reserves the right to 
increase or decrease bidding increments as necessary.
    Between rounds, BOEM will disclose to all bidders eligible to bid 
in the next round: (1) The number of live bids in the previous round of 
the auction (i.e., the level of demand); and (2) the asking price in 
the upcoming round of the auction.
    If a bidder is not willing to meet the asking price in the upcoming 
round, the bidder may submit an exit bid and then exit the auction. 
Bidders exiting the auction are allowed to submit one exit bid at an 
offer price greater than the asking price in the previous round, but 
less than the asking price in the current round. Exit bids allow 
bidders to express precisely the maximum price they are willing to 
offer while also minimizing the chance of ties. If a bidder does not 
submit any bid at all in the current round, BOEM will treat the bidder 
as having submitted an exit bid in the current round at the previous 
round's asking price. If a bidder exits the auction by placing an exit 
bid (or by not submitting any bid at all) in the current round, it will 
not be allowed to submit bids in any subsequent round. BOEM will not 
consider exit bids for the purpose of determining whether to increase 
the asking price or to end the auction.
    After the final round of the auction, BOEM will determine the 
provisionally winning bidder to be the bidder with the highest bid, 
whether the bid was a live bid or an exit bid. If there is a tie, BOEM 
will resolve the tie by randomized means. The provisionally winning 
bidder may be disqualified if it is subsequently found to have violated 
auction rules or otherwise engaged in conduct detrimental to the 
integrity of the competitive auction.
    The auction winner for the proposed lease sale will have 10 
business days from receiving the lease to post financial assurance, pay 
any outstanding balance of its bonus bid, and sign and return three 
copies of the lease. BOEM reserves the right not to issue the lease to 
the provisionally winning bidder if that bidder fails to timely sign 
and pay for the lease or otherwise fails to comply with applicable 
regulations or terms of the FSN. In that case, that bidder will forfeit 
its bid deposit. If a bidder fails to timely pay the full amount due, 
BOEM may consider this to be an indication that the bidder is no longer 
financially qualified to participate in other lease sales under BOEM's 
regulations at 30 CFR 585.106--107. If a winning bidder does not sign 
the lease pursuant to the proposed lease sale, BOEM reserves the right 
to identify the next highest bid submitted during the proposed lease 
sale and offer the lease pursuant to this bid.

Additional Information Regarding the Auction Format

Bidder Authentication
    For the proposed online auction, BOEM will require two-factor 
authentication. Prior to the auction, BOEM will send several bidder

[[Page 54597]]

authentication packages to the bidders shortly after BOEM has processed 
the BFFs. One package will contain digital authentication tokens for 
each authorized individual. The tokens will be sent to the primary 
point of contact indicated on the BFF. This individual is responsible 
for distributing the tokens to the individuals authorized to bid for 
that company. Bidders are to ensure that each token is returned within 
three business days following the auction. An addressed, stamped 
envelope will be provided to facilitate this process. In the event that 
a bidder fails to submit a bid deposit or does not participate in the 
proposed auction, BOEM will de-activate that bidder's token and login 
information, and the bidder will likewise be asked to return its tokens 
within three business days following the auction.
    The second package contains login credentials for authorized 
bidders. The login credentials will be sent to the address provided in 
the BFF for each authorized individual. Bidders can confirm these 
addresses by calling 703-787-1320. This package will contain user login 
information and instructions for accessing the Auction System Technical 
Supplement and Alternative Bidding Form. The login information, along 
with the tokens, will be tested during the Mock Auction.
Timing of Auction
    The FSN will provide specific information regarding when bidders 
can enter the auction system and when the proposed auction will start. 
Once bidders have logged in, they should review the auction schedule, 
which lists the start, end, and recess times of each round in the 
auction. Each round is structured as follows:

 Bidding round begins;
 Bidders enter their bids;
 Bidding round ends and the recess begins;
     During the recess, the number of live bids received in the 
previous round and the next round's asking price are posted;
     Bidders review the previous round results and prepare 
their next round's bids; and
     Next bidding round begins.

    The first round will last about 30 minutes, though subsequent 
rounds may be shorter. Recesses are anticipated to last approximately 
10 minutes. The descriptions of the auction schedule and asking price 
increments included in the PSN and FSN are tentative. Bidders should 
consult the auction schedule on the bidding Web site just before and 
during the auction for updated times. BOEM anticipates the proposed 
auction will last one or two business days, but bidders are advised to 
prepare to continue bidding for additional business days if necessary, 
to resolve the auction.
    BOEM and the auction contractor will use the auction platform 
messaging service to keep bidders informed on issues of interest during 
the proposed auction. BOEM will use the messaging system for auction 
schedule changes and other updates during the auction.
    Bidders may place bids at any time during the round. At the top of 
the bidding page, a countdown clock will show how much time remains in 
the round. Bidders have until the scheduled ending time to place bids. 
Bidders should bid according to the procedures described in both the 
FSN and the Auction System Technical Supplement. No information about 
bidding during a given round is available until the round has closed 
and results have been posted, so there is no tactical advantage to 
placing bids early or late in the round.
    The timing of the auction will be elaborated on and clarified in 
the Auction System Technical Supplement which is available on BOEM's 
Web site at: http://www.boem.gov/North-Carolina/ if and when the FSN is 
published in the Federal Register. The Auction System Technical 
Supplement will describe auction procedures that are incorporated by 
reference into the FSN, except in the unexpected circumstance that any 
of the information in the Auction System Technical Supplement is 
inconsistent with the FSN, in which case the provisions of the FSN will 
take precedence.
Alternate Bidding Procedures
    Alternate Bidding Procedures enable a bidder who is having 
difficulties accessing the Internet to submit its bid via fax using an 
Alternate Bidding Form available on BOEM's Web site at: http://www.boem.gov/North-Carolina/.
    In order to be authorized to use an Alternative Bidding Form, a 
bidder must call the help desk number listed in the Auction Manual 
before the end of the round. BOEM will authenticate the caller to 
ensure he/she is authorized to bid on behalf of the company. The bidder 
must explain the reasons for which he/she cannot place a bid using the 
online bidding platform. BOEM may, in its sole discretion, permit or 
refuse to accept a request for the placement of a bid using the 
Alternate Bidding Procedures.
    If bidders need to submit an Alternate Bidding Form, they are 
strongly encouraged to do so before the round ends.
    Rejection or Non-Acceptance of Bids: BOEM reserves the right and 
authority to reject any and all bids that do not satisfy the 
requirements and rules of the proposed auction, the FSN, or applicable 
regulations and statutes.

Anti-Competitive Review

    This sale is subject to Federal antitrust laws. Accordingly, 
following the auction, but before the acceptance of the bid and the 
issuance of the lease, BOEM will ``allow the Attorney General, in 
consultation with the Federal Trade Commission, 30 days to review the 
results of the lease sale.'' 43 U.S.C. 1337(c). If a provisionally 
winning bidder is found to have engaged in anti-competitive practices 
in connection with this sale, BOEM may reject its bid.
    Anti-competitive practices may include, but are not limited to:

 An express or tacit agreement among bidders not to bid in an 
auction, or to bid at a particular price;
 An agreement among bidders not to bid against each other; and
 Other agreements among bidders that have the potential to 
affect the final auction price.

    BOEM will decline to award the lease if the Attorney General, in 
consultation with the Federal Trade Commission, determines that doing 
so would be inconsistent with the antitrust laws. See 43 U.S.C. 
1337(c).
    For more information on whether specific communications or 
agreements could constitute a violation of Federal antitrust law, 
please see http://www.justice.gov/atr/public/business-resources.html, 
or consult legal counsel.
    Process for Issuing the Lease: Once all post-auction reviews have 
been completed to BOEM's satisfaction, BOEM will issue three unsigned 
copies of the lease to the provisionally winning bidder. Within 10 
business days after receiving the lease copies, the provisionally 
winning bidder must:
    1. Sign and return the lease copies on the bidder's behalf;
    2. File financial assurance, as required under 30 CFR 585.515-537; 
and
    3. Pay by electronic funds transfer (EFT) the balance (if any) of 
the bonus bid (winning bid less the bid deposit). BOEM requires bidders 
to use EFT procedures (not pay.gov, the Web site bidders used to submit 
bid deposits) for payment of the balance of the bonus bid, following 
the detailed instructions contained in the ``Instructions for Making 
Electronic Payments'' available on BOEM's Web site at: http://www.boem.gov/North-Carolina/.
    BOEM will not execute a lease until the three requirements above 
have been

[[Page 54598]]

satisfied, the provisionally winning bidder's financial assurance has 
been accepted pursuant to 30 CFR 585.515, and the provisionally winning 
bidder's payment has been processed.
    BOEM may extend the 10 business day deadline for executing the 
lease on the bidder's behalf, filing the required financial assurance, 
and/or paying the balance of the bonus bid, but only if BOEM determines 
the delay was caused by events beyond the provisionally winning 
bidder's control.
    If the provisionally winning bidder does not meet these 
requirements or otherwise fails to comply with applicable regulations 
or the terms of the FSN, BOEM reserves the right not to issue the lease 
to that bidder. In such a case, the provisionally winning bidder will 
forfeit its bid deposit.
    Within 45 days of the date that the provisionally winning bidder 
receives copies of the lease, it must pay the first year's rent using 
the pay.gov Renewable Energy Initial Rental Payment form available at: 
https://pay.gov/paygov/forms/formInstance.html?agencyFormId=27797604.
    Subsequent annual rent payments must be made following the detailed 
instructions contained in the ``Instructions for Making Electronic 
Payments,'' available on BOEM's Web site at: http://www.boem.gov/North-Carolina/.
    Non-Procurement Debarment and Suspension Regulations: Pursuant to 
regulations at 43 CFR part 42, subpart C, an OCS renewable energy 
lessee must comply with the Department of the Interior's non-
procurement debarment and suspension regulations at 2 CFR 180 and 1400. 
The lessee must also communicate this requirement to persons with whom 
the lessee does business relating to this lease, by including this term 
as a condition in their contracts and other transactions.
    Force Majeure: The Program Manager of BOEM's Office of Renewable 
Energy Programs has the discretion to change any auction details 
specified in the FSN, including the date and time, in case of a force 
majeure event that the Program Manager deems may interfere with a fair 
and proper lease sale process. Such events may include, but are not 
limited to: Natural disasters (e.g., earthquakes, hurricanes, floods, 
blizzards), wars, riots, acts of terrorism, fire, strikes, civil 
disorder or other events of a similar nature. In case of such events, 
BOEM will notify all qualified bidders via email, phone, or through the 
BOEM Web site at: http://www.boem.gov/Renewable-Energy-Program/index.aspx. Bidders should call 703-787-1320 if they have concerns.
    Appeals: The appeals procedures are provided in BOEM's regulations 
at 30 CFR 585.225 and 585.118(c). Pursuant to 30 CFR 585.225:
    (a) If BOEM rejects your bid, BOEM will provide a written statement 
of the reasons and refund any money deposited with your bid, without 
interest.
    (b) You will then be able to ask the BOEM Director for 
reconsideration, in writing, within 15 business days of bid rejection, 
under 30 CFR 585.118(c)(1). We will send you a written response either 
affirming or reversing the rejection.
    The procedures for appealing final decisions with respect to lease 
sales are described in 30 CFR 585.118(c).

Protection of Privileged or Confidential Information

    BOEM will protect privileged or confidential information that you 
submit as required by the Freedom of Information Act (FOIA). Exemption 
4 of FOIA applies to ``trade secrets and commercial or financial 
information that you submit that is privileged or confidential.'' 5 
U.S.C. 552(b)(4). If you wish to protect the confidentiality of such 
information, clearly mark it ``Contains Privileged or Confidential 
Information'' and consider submitting such information as a separate 
attachment. BOEM will not disclose such information, except as required 
by FOIA. Information that is not labeled as privileged or confidential 
will be regarded by BOEM as suitable for public release.
    BOEM will not treat as confidential aggregate summaries of 
otherwise confidential information or comments not containing such 
information. Additionally, BOEM will not treat as confidential the 
legal title of the commenting entity (e.g., the name of your company).

     Dated: August 9, 2016.
Abigail Ross Hopper,
Director, Bureau of Ocean Energy Management.
[FR Doc. 2016-19552 Filed 8-15-16; 8:45 am]
 BILLING CODE 4310-MR-P



                                                                                 Federal Register / Vol. 81, No. 158 / Tuesday, August 16, 2016 / Notices                                            54591

                                                    are available on the Internet at http://                filed on time, and the lessee paid the                continental shelf offshore North
                                                    www.blm.gov/ca/st/en/info/rac.html.                     required rentals accruing from the date               Carolina (Kitty Hawk).
                                                      Any individual or organization may                    of termination. No leases that affect
                                                    nominate one or more persons to serve                   these lands were issued before the                    SUMMARY:    This is the Proposed Sale
                                                    on the RAC or MAC. Individuals may                      petition was filed.                                   Notice (PSN) for the sale of one
                                                    nominate themselves for RAC or MAC                      FOR FURTHER INFORMATION CONTACT:                      commercial wind energy lease on the
                                                    membership. Nominations packages                        Chris Hite, Chief of Fluid Minerals                   Outer Continental Shelf (OCS) offshore
                                                    must include a letter of nomination, a                  Adjudication, Bureau of Land                          Kitty Hawk, North Carolina, pursuant to
                                                    completed nomination form, letters of                   Management, Wyoming State Office,                     30 CFR 585.216. BOEM proposes to
                                                    reference from the represented interest                 5353 Yellowstone Road, Cheyenne,                      offer Lease OCS–A 0508 for sale using
                                                    groups or organizations associated with                 Wyoming 82009; phone 307–775–6176;                    an ascending-bid auction. In this PSN,
                                                    the interests represented by the                        email chite@blm.gov. Persons who use a                you will find information pertaining to
                                                    candidate, and any other information                    telecommunications device for the deaf                the area available for leasing, proposed
                                                    that speaks to the candidate’s                          may call the Federal Information Relay                lease provisions and conditions, auction
                                                    qualifications.                                         Service (FIRS) at 1–800–877–8339 to                   details, the lease form, criteria for
                                                      The specific category the nominee                     contact Mr. Hite during normal business               evaluating competing bids, award
                                                    would represent should be identified in                 hours. The FIRS is available 24 hours a               procedures, appeal procedures, and
                                                    the letter of nomination and in the                     day, 7 days a week, to leave a message                lease execution. BOEM invites public
                                                    nomination form.                                        or question with the above individual.                comment during a 60-day comment
                                                      The BLM-California State Director                     You will receive a reply during normal                period following publication of this
                                                    and District Manager will review the                    business hours.                                       notice. The issuance of the proposed
                                                    nomination forms and letters of                         SUPPLEMENTARY INFORMATION: Consistent                 lease resulting from this sale would not
                                                    reference. The State Director shall                     with applicable requirements the lessee               constitute an approval of project-
                                                    confer with the Governor of the State of                has agreed to the amended lease terms                 specific plans to develop offshore wind
                                                    California on potential nominations,                    for rentals and royalties at rates of $10             energy. Such plans, expected to be
                                                    and then will forward recommended                       per acre, or fraction thereof, per year               submitted by the auction winner, would
                                                    nominations to the Secretary of the                     and 162⁄3 percent, respectively, as part              be subject to subsequent environmental
                                                    Interior, who has responsibility for                    of the lease reinstatement. The lessee                and technical reviews prior to a
                                                    making the appointments.                                has also agreed to the amended lease                  decision to proceed with development.
                                                      Members will serve without monetary                   stipulations for the lease described in               This document is also a Request for
                                                    compensation, but will be reimbursed                    the associated Reinstatement                          Interest (RFI), pursuant to 30 CFR
                                                    for travel and per diem expenses at                     Certification.                                        585.212, to assess if there has been a
                                                    current U.S. General Services                              The lessee has paid the required $500              change in competitive interest in the
                                                    Administration rates. The committees                    administrative fee and the $159 cost for              area encompassing proposed lease OCS–
                                                    will meet at least twice a year.                        publishing this notice. The lessee met                A 0508 since the publication of the
                                                    Additional meetings may be called by                    the requirements for reinstatement of                 North Carolina Call for Information and
                                                    the Designated Federal Officer.                         the lease per Sec. 31(d) and (e) of the               Nominations (Call) (77 FR 74204) on
                                                      The Obama Administration prohibits                    Mineral Leasing Act of 1920. The BLM                  December 13, 2012. If BOEM determines
                                                    individuals who are currently federally                 proposes to reinstate the lease effective             that competitive interest in the
                                                    registered lobbyists to serve on all                    January 1, 2013, under the original                   proposed lease area (OCS–A 0508) still
                                                    FACA and non-FACA boards,                               terms and conditions of the lease, the                exists, BOEM will proceed with the
                                                    committees or councils.                                 amended lease stipulations, and the                   competitive process set forth in 30 CFR
                                                       Authority: 43 CFR 1784.4–1.                          increased rental and royalty rates cited              585.211 through 585.225. If BOEM
                                                                                                            above.                                                determines competitive interest in the
                                                    Dereck Wilson,                                                                                                proposed lease area (OCS–A 0508) no
                                                    Acting Central California District Manager.             Chris Hite,                                           longer exists because only one potential
                                                    [FR Doc. 2016–19428 Filed 8–15–16; 8:45 am]             Chief, Branch of Fluid Minerals Adjudication.         lessee is interested in the area, BOEM
                                                    BILLING CODE 4310–40–P                                  [FR Doc. 2016–19429 Filed 8–15–16; 8:45 am]           may proceed with the non-competitive
                                                                                                            BILLING CODE 4310–22–P                                process set forth in 30 CFR 585.231(d)-
                                                                                                                                                                  (i) following the receipt of the
                                                    DEPARTMENT OF THE INTERIOR                                                                                    acquisition fee specified in 30 CFR
                                                                                                            DEPARTMENT OF THE INTERIOR                            585.502(a).
                                                    Bureau of Land Management
                                                                                                            Bureau of Ocean Energy Management                     DATES:  Comments should be submitted
                                                    [LLWY920000. 16XL5017AR.                                                                                      electronically or postmarked no later
                                                    L57000000.RB0000]                                       [Docket No. BOEM–2016–0045]                           than October 17, 2016. All comments
                                                                                                            Atlantic Wind Lease Sale 7 (ATLW–7)                   received or postmarked during the
                                                    Notice of Proposed Reinstatement of                                                                           comment period will be made available
                                                    Terminated Oil and Gas Lease                            for Commercial Leasing for Wind
                                                                                                            Power on the Outer Continental Shelf                  to the public and considered prior to
                                                    WYW178492, Wyoming                                                                                            publication of the Final Sale Notice
                                                                                                            Offshore North Carolina (Kitty Hawk)—
                                                                                                                                                                  (FSN).
asabaliauskas on DSK3SPTVN1PROD with NOTICES




                                                    AGENCY:  Bureau of Land Management,                     Proposed Sale Notice and Request for
                                                    Interior                                                Interest; MMAA104000                                    Everyone wishing to participate as a
                                                    ACTION: Notice.                                                                                               bidder in the proposed Kitty Hawk lease
                                                                                                            AGENCY:   Bureau of Ocean Energy                      sale must respond to this notice by the
                                                    SUMMARY:   Per the Mineral Leasing Act of               Management (BOEM or ‘‘the Bureau’’),                  end of the 60-day comment period.
                                                    1920, Hilcorp Energy I, L.P. filed a                    Interior.                                             Prospective bidders whom BOEM has
                                                    petition for reinstatement of competitive               ACTION: Proposed sale notice and                      already determined are qualified to hold
                                                    oil and gas lease WYW178492, in Crook                   request for interest for commercial                   an OCS lease for commercial wind
                                                    County, Wyoming. The petition was                       leasing for Wind Power on the outer                   energy development offshore North


                                               VerDate Sep<11>2014   18:36 Aug 15, 2016   Jkt 238001   PO 00000   Frm 00042   Fmt 4703   Sfmt 4703   E:\FR\FM\16AUN1.SGM   16AUN1


                                                    54592                        Federal Register / Vol. 81, No. 158 / Tuesday, August 16, 2016 / Notices

                                                    Carolina must submit a response to this                 with the caption ‘‘Contains Confidential              development even if it would be located
                                                    notice affirming their continued interest               Information’’ and consider submitting                 close to shore. Finally, because the
                                                    in the proposed lease area. Those who                   such information as a separate                        Wilmington West WEA is contiguous
                                                    are not yet qualified, but wish to                      enclosure. Treatment of confidential                  with the Grand Strand Call Area, wake
                                                    participate as bidders in the proposed                  information is addressed in the section               effects could impact the productivity
                                                    lease sale, must submit qualification                   of this PSN entitled ‘‘Protection of                  and viability of multiple offshore wind
                                                    materials by the end of the 60-day                      Privileged or Confidential Information.’’             developments within these areas.
                                                    comment period. All qualification                       Information that is not labeled as                    Environmental Reviews
                                                    materials must be postmarked no later                   privileged or confidential will be
                                                    than October 17, 2016.                                  regarded by BOEM as suitable for public                  On January 23, 2015, BOEM
                                                                                                            release.                                              published a Notice of Availability
                                                    ADDRESSES: Potential auction
                                                                                                            FOR FURTHER INFORMATION CONTACT: Will
                                                                                                                                                                  (NOA) of an Environmental Assessment
                                                    participants, Federal, state, and local
                                                                                                                                                                  (EA) for commercial wind lease
                                                    government agencies, tribal                             Waskes, BOEM Office of Renewable
                                                                                                                                                                  issuance and site assessment activities
                                                    governments, and other interested                       Energy Programs, 45600 Woodland
                                                                                                                                                                  on the Atlantic OCS offshore North
                                                    parties are requested to submit their                   Road, VAM–OREP, Sterling, Virginia
                                                                                                                                                                  Carolina with a 30-day public comment
                                                    written comments on the PSN in one of                   20166, (703) 787–1320 or
                                                                                                                                                                  period (80 FR 3621). In response to the
                                                    the following ways:                                     Will.Waskes@boem.gov.
                                                                                                                                                                  NOA, BOEM received 195 comments,
                                                       1. Electronically: http://                             Authority: This PSN and RFI is published            which are available at http://
                                                    www.regulations.gov. In the entry                       pursuant to subsection 8(p) of the OCS Lands          www.regulations.gov, Docket No.
                                                    entitled, ‘‘Enter Keyword or ID,’’ enter                Act (43 U.S.C. 1337(p)) (OCSLA), as amended           BOEM–2015–0001. Many of the
                                                    BOEM–2016–0045 then click ‘‘search.’’                   by section 388 of the Energy Policy Act of
                                                                                                                                                                  comments focused on mitigation
                                                    Follow the instructions to submit public                2005 (EPAct), and the implementing
                                                                                                            regulations at 30 CFR part 585, including 30          measures to protect wildlife, specifically
                                                    comments.                                                                                                     marine mammals. Based on the
                                                       2. Written Comments: In written form,                CFR 585.211, 585.212, and 585.216.
                                                                                                                                                                  comments received in response to the
                                                    delivered by hand or by mail, enclosed                  Background                                            EA, public outreach, information
                                                    in an envelope labeled, ‘‘Comments on                                                                         meetings, and new information
                                                    North Carolina PSN’’ to: BOEM Office of                 Area for Proposed Leasing
                                                                                                                                                                  received, BOEM decided to make
                                                    Renewable Energy Programs, 45600                           The area described for leasing in this             revisions to the EA originally published
                                                    Woodland Road, VAM–OREP, Sterling,                      PSN, the Kitty Hawk Leasing Area (LA),                in January 2015. As a result of the
                                                    Virginia 20166, (703) 787–1320.                         is the same as the Kitty Hawk Wind                    analysis in the revised EA, BOEM
                                                       3. Qualifications Materials: Those                   Energy Area (WEA) that BOEM                           issued a Finding of No Significant
                                                    submitting qualifications materials                     announced on August 11, 2014. The                     Impact (FONSI) on September 18, 2015
                                                    should contact William Waskes, BOEM                     Area Identification announcement is                   (80 FR 56494). The revised EA and
                                                    Office of Renewable Energy Programs,                    available at: http://www.boem.gov/                    FONSI can be found at: http://
                                                    45600 Woodland Road, VAM–OREP,                          North-Carolina/.                                      www.boem.gov/North-Carolina/.
                                                    Sterling, Virginia 20166, (703) 787–                       The Wilmington East and Wilmington                    BOEM also considered the comments
                                                    1320, or Will.Waskes@boem.gov. If you                   West WEAs, which were also                            received when developing mitigation
                                                    wish to protect the confidentiality of                  announced on August 11, 2014, have                    measures that will be enforced through
                                                    your qualification materials, clearly                   been realigned with the planning and                  the terms, conditions, and stipulations
                                                    mark the relevant sections and request                  leasing process for the South Carolina                in Addendum C of the proposed lease
                                                    that BOEM treat them as confidential.                   Call Areas. BOEM believes that by                     (OCS–A 0508). These mitigation
                                                    Please label privileged or confidential                 realigning the leasing process for these              measures are designed to reduce or
                                                    information with the caption ‘‘Contains                 areas, a number of existing issues can be             eliminate impacts from survey
                                                    Confidential Information’’ and consider                 addressed in a holistic manner. For                   activities. They are based on the best
                                                    submitting such information as a                        example, the entire Wilmington West                   available science and BOEM’s
                                                    separate enclosure. Treatment of                        WEA, a portion of the Wilmington East                 Endangered Species Act (ESA)
                                                    confidential information is addressed in                WEA, and the South Carolina Grand                     consultation with the National Marine
                                                    the section of this PSN entitled                        Strand Call Area (80 FR 73818) are all                Fisheries Service (NMFS). Additional
                                                    ‘‘Protection of Privileged or Confidential              located within the newly expanded                     mitigation measures related to the
                                                    Information.’’ Information that is not                  North Atlantic right whale (NARW)                     installation and operation of
                                                    labeled as privileged or confidential will              critical habitat (81 FR 4838). Further,               meteorological towers and/or buoys will
                                                    be regarded by BOEM as suitable for                     the State of North Carolina and a                     be included as terms and conditions of
                                                    public release.                                         number of coastal localities in southern              the lessee’s Site Assessment Plan (SAP)
                                                       4. Interest Affirmation Materials:                   North Carolina have expressed concerns                approval. BOEM will continue to work
                                                    Potential bidders who submitted                         regarding potential visual impacts that               with interested stakeholders and
                                                    nominations in the response to the Call,                could result from wind development                    reassess mitigation measures as research
                                                    have been qualified for this sale, and                  offshore North Carolina. Many of these                and data become available.
                                                    wish to participate in the sale should                  communities have requested that BOEM                     In addition, BOEM has concluded
                                                    contact William Waskes, BOEM Office                     remove from leasing consideration all                 consultations under the ESA and the
                                                    of Renewable Energy Programs, 45600                     areas within 24 nautical miles (nm) of                Magnuson-Stevens Fishery
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                                                    Woodland Road, VAM–OREP, Sterling,                      their respective locations, which would               Conservation and Management Act
                                                    Virginia 20166, (703) 787–1320, or                      include all of Wilmington West, a                     (MSFCMA) covering the proposed lease
                                                    Will.Waskes@boem.gov. If you wish to                    portion of Wilmington East, and a                     sale, associated site characterization
                                                    protect the confidentiality of your                     portion of the Grand Strand Call Area.                surveys, and subsequent site assessment
                                                    materials, clearly mark the relevant                    This is in contrast to South Carolina,                activities. BOEM will initiate
                                                    sections and request that BOEM treat                    where coastal localities such as the City             consultations with the States of North
                                                    them as confidential. Please label                      of North Myrtle Beach have indicated                  Carolina and Virginia under the Coastal
                                                    privileged or confidential information                  that they are in favor of offshore wind               Zone Management Act (CZMA)


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                                                                                 Federal Register / Vol. 81, No. 158 / Tuesday, August 16, 2016 / Notices                                          54593

                                                    concurrent with the publication of this                 for submitting an electronic copy. Please             60-day period, which will expire on
                                                    PSN.                                                    note that it may take a number of weeks               October 17, 2016.
                                                       In order to guide its consultation                   for BOEM to assess a potential bidder’s                  • Public Seminar: BOEM will host a
                                                    under section 106 of the National                       legal, technical, and financial                       public seminar to discuss the lease sale
                                                    Historic Preservation Act (NHPA) for                    qualifications. BOEM advises potential                process and the auction format. The
                                                    renewable energy activities offshore                    bidders who plan to participate in a sale             time and place of the seminar will be
                                                    North Carolina, BOEM executed a                         to establish their qualifications                     announced by BOEM and published on
                                                    programmatic agreement (PA) with the                    promptly. It is not uncommon for BOEM                 the BOEM Web site at http://
                                                    State Historic Preservation Officer of                  to request additional materials                       www.boem.gov/North-Carolina/. No
                                                    North Carolina and the Advisory                         establishing qualifications following an              registration or RSVP is required to
                                                    Council on Historic Preservation. The                   initial review of the qualifications                  attend.
                                                    PA provides for consultation to                         package. BOEM cannot determine a                         • Submit Qualifications Materials:
                                                    continue throughout BOEM’s                              potential bidder to be qualified without              All qualifications materials must be
                                                    commercial leasing process and the                      a complete qualification package.                     received by BOEM by the end of the 60-
                                                    decisionmaking process regarding the                    Potential bidders who BOEM has not                    day PSN comment period, October 17,
                                                    approval, approval with modification,                   determined to be qualified before the                 2016. This includes materials sufficient
                                                    or disapproval of a lessees’ SAP,                       FSN is published will not be allowed to               to establish a company’s legal,
                                                    Construction and Operations Plan                        participate in the proposed sale.                     technical, and financial qualifications
                                                    (COP), or other plan. In addition, the PA                                                                     pursuant to 30 CFR 585.106–107.
                                                    allows for phased identification and                    Request for Interest                                     • Submit Interest Affirmation
                                                    evaluation of historic properties. The                  Affirmation of Interest Received in                   Materials: In order to participate in the
                                                    PA can be found at: http://                             Response to the North Carolina Call for               proposed Kitty Hawk lease sale,
                                                    www.boem.gov/South-Atlantic-                            Information and Nominations of Interest               potential bidders whom BOEM has
                                                    Renewable-Energy-Activities/.                           for the Kitty Hawk WEA                                determined to be legally, technically,
                                                       On May 7, 2015, BOEM completed its                                                                         and financially qualified to hold an OCS
                                                    section 106 review for the undertaking                     Legally, technically, and financially              lease for commercial wind energy
                                                    of issuing commercial leases within the                 qualified entities who submitted a                    development offshore North Carolina,
                                                    North Carolina WEAs and published a                     nomination in response to the North                   must submit a response to this notice
                                                    Finding of No Historic Properties                       Carolina Call must respond to this                    affirming their continued interest in
                                                    Affected For the Issuance of Commercial                 notice and indicate whether: (1) They                 participating in the proposed lease sale
                                                    Leases within the Kitty Hawk,                           wish to continue with their Call                      by the end of the 60-day comment
                                                    Wilmington East and Wilmington West                     nomination for the Kitty Hawk WEA; or                 period, October 17, 2016.
                                                    Wind Energy Areas For Wind Energy                       (2) they wish to withdraw their Call
                                                    Development on the Outer Continental                    nomination from further consideration.                End of PSN Comment Period to FSN
                                                    Shelf Offshore North Carolina. The                      If such entities do not respond by the                Publication
                                                    Finding can be found at: http://                        comment period deadline associated                       • Review Comments: BOEM will
                                                    www.boem.gov/NC-WEAs-Lease-                             with this notice, BOEM will deem their                review all comments submitted in
                                                    Issuance/.                                              nominations submitted in response to                  response to the PSN during the
                                                       Additional environmental reviews                     the North Carolina Call to be                         comment period.
                                                    and consultations will be conducted                     withdrawn, and they will not be able to                  • Finalize Qualifications Reviews:
                                                    upon receipt of the Lessee’s SAP and                    participate in the proposed lease sale.               BOEM will complete any outstanding
                                                    COP.                                                    BOEM is issuing this Request for                      reviews of bidder qualifications
                                                    Additional Participation in the                         Interest due to the large amount of time              materials submitted during the PSN
                                                    Proposed Lease Sale                                     that has elapsed since its initial                    comment period and requested by
                                                                                                            solicitation of commercial interest                   BOEM prior to the publication of the
                                                       Any parties wishing to participate in                                                                      FSN. The final list of eligible bidders
                                                                                                            through its Call in December 2012 and
                                                    the proposed Kitty Hawk lease sale that                                                                       will be published in the FSN.
                                                                                                            the experience of past lease sales, in
                                                    have not already been legally,
                                                                                                            which a significant number of                            • Prepare the FSN: Should BOEM
                                                    financially, and technically qualified to                                                                     determine that competitive interest still
                                                                                                            companies that expressed competitive
                                                    hold a lease for commercial wind                                                                              exists in leasing the Kitty Hawk WEA,
                                                                                                            interest in response to the Call choose
                                                    development offshore North Carolina                                                                           and BOEM decides to move forward
                                                                                                            not to submit a Bidder’s Financial Form
                                                    must submit the required qualification                                                                        with a lease sale, BOEM will prepare the
                                                                                                            (BFFs) or Bid Deposits.
                                                    materials by the end of the 60-day                                                                            FSN by updating information contained
                                                    comment period for this notice.                            Deadlines and Milestones for Bidders:              in the PSN where appropriate.
                                                    Guidelines to prospective lessees on                    This section describes the major                         • Publish FSN: If BOEM decides to
                                                    BOEM’s requirements to qualify for and                  deadlines and milestones in the auction               move forward with a lease sale, BOEM
                                                    hold a renewable energy lease on the                    process from publication of this PSN to               will publish the FSN in the Federal
                                                    OCS and the type of information that                    execution of the lease pursuant to this               Register.
                                                    should be submitted to demonstrate                      proposed sale. This process is organized                 FSN Waiting Period. During this
                                                    your legal, technical, and financial                    into five stages: (1) The PSN comment                 period, qualified bidders must take
                                                    qualifications can be found at: http://                 period; (2) from the end of PSN                       several steps before participating in the
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                                                    www.boem.gov/Renewable-Energy-                          comment period to publication of the                  auction.
                                                    Program/Regulatory-Information/                         FSN; (3) the FSN waiting period; (4)                     • Bidder’s Financial Form (BFF):
                                                    QualificationGuidelines-pdf.aspx.                       conducting the auction; and (5) from the              BOEM must receive each qualified
                                                    Documentation you submit must be                        auction to Lease Execution.                           bidder’s completed and signed BFF no
                                                    provided to BOEM in both paper and                      The PSN Comment Period                                later than the date listed in the FSN.
                                                    electronic formats. BOEM considers an                                                                         Typically, this deadline is
                                                    Adobe PDF file stored on a storage                        • Submit Comments: The public is                    approximately 14 calendar days after
                                                    media device to be an acceptable format                 invited to submit comments during this                publication of the FSN in the Federal


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                                                    54594                        Federal Register / Vol. 81, No. 158 / Tuesday, August 16, 2016 / Notices

                                                    Register. BOEM will consider                            after the winner receives the lease                   • Addendum D (Project Easement)
                                                    extensions to this deadline only if                     copies for execution.                                 • Addendum E (Rent Schedule post
                                                    BOEM determines that the failure to                        • Return the Lease: Within 10                         COP approval)
                                                    timely submit the BFF was caused by                     business days of receiving the lease                  • Appendix A to Addendum C
                                                    events beyond the bidder’s control.                     copies, the auction winner must post                     (Incident Report: Protected Species
                                                    Blank BFFs can be found at: http://                     financial assurance, pay any                             Injury or Mortality)
                                                    www.boem.gov/North-Carolina/. Once                      outstanding balance of their bonus bid                • Appendix B to Addendum C
                                                    the BFF has been processed, bidders                     (i.e., winning monetary bid minus bid                    (Required Data Elements for Protected
                                                    may log into pay.gov and submit bid                     deposit), and sign and return the three                  Species Observer Reports)
                                                    deposits. BOEM will only accept an                      signed lease copies.                                     Addenda A, B, and C provide detailed
                                                    originally executed paper copy of the                      • Execution of the Lease: Once BOEM                descriptions of lease terms and
                                                    BFF, and will not consider for this                     has received the lease copies and                     conditions. Addendum D will be
                                                    auction BFFs submitted for previous                     verified that it has received all other               completed at the time of COP approval
                                                    lease sales. The BFF must be executed                   required materials, BOEM will execute                 or approval with modifications.
                                                    by an authorized representative as                      the lease if appropriate.                             Addendum E will be completed after
                                                    shown on the bidder’s legal                                Area Proposed for Leasing: The area
                                                                                                                                                                  COP approval or approval with
                                                    qualifications. Each bidder is required                 available for sale will be auctioned as
                                                                                                                                                                  conditions.
                                                    to sign the self-certification in the BFF,              one lease, Lease OCS–A 0508 (Kitty
                                                                                                                                                                     BOEM is soliciting comments on the
                                                    in accordance with 18 U.S.C. 1001                       Hawk LA). The Kitty Hawk LA consists
                                                                                                                                                                  provisions of Addendum C that require
                                                    (Fraud and False Statements).                           of 122,405 acres. A description of the
                                                                                                                                                                  the submission of SAP and COP survey
                                                       • Bid Deposits: Each qualified bidder                proposed lease area can be found in
                                                                                                                                                                  plans. Specifically, BOEM is interested
                                                    must submit a bid deposit of $450,000                   Addendum A of the proposed lease,
                                                                                                                                                                  in whether potential lessees and other
                                                    no later than the date listed in the FSN.               which BOEM has made available with
                                                                                                                                                                  stakeholders find the timeframes
                                                    Typically, this deadline is                             this notice on its Web site at: http://
                                                                                                                                                                  associated with those requirements to be
                                                    approximately 30 calendar days after                    www.boem.gov/North-Carolina/.
                                                                                                                                                                  reasonable, and whether those
                                                    the publication of the FSN. BOEM will                   Map of the Area Proposed for Leasing                  provisions could be written in a manner
                                                    consider extensions to this deadline                       A map of the proposed Kitty Hawk                   that better describes the realities
                                                    only if BOEM determines that the                        LA, GIS spatial files, and a table of the             associated with offshore wind survey
                                                    failure to timely submit the bid deposit                boundary coordinates in X, Y (eastings,               efforts (e.g., referring to ‘‘survey
                                                    was caused by events beyond the                         northings) UTM Zone 18, NAD83                         mobilizations’’ instead of ‘‘SAP
                                                    bidder’s control.                                       Datum, and geographic X, Y (longitude,                surveys’’ and ‘‘COP surveys’’
                                                       • Mock Auction: BOEM will hold an                    latitude), NAD83 Datum can be found                   specifically).
                                                    online Mock Auction that is open only                   on BOEM’s Web site at: http://                           Plans. Pursuant to 30 CFR 585.601,
                                                    to qualified bidders who have met the                   www.boem.gov/North-Carolina/.                         the leaseholder must submit a SAP
                                                    requirements and deadlines for auction                     A large scale map of the area, showing             within 12 months of lease issuance and
                                                    participation, including submission of                  boundaries of the area with numbered                  a COP at least 6 months before the end
                                                    the bid deposit. Final details of the                   blocks, is available from BOEM upon                   of the site assessment term of the lease.
                                                    Mock Auction will be provided in the                    request at the following address: Bureau                 Financial Terms and Conditions: This
                                                    FSN.                                                    of Ocean Energy Management, Office of                 section provides an overview of the
                                                       Conduct of the Auction. BOEM,                        Renewable Energy Programs, 45600                      annual payments required of a lessee
                                                    through its contractor, will hold an                    Woodland Road, VAM–OREP, Sterling,                    that are described in the proposed lease,
                                                    auction as described in the FSN. The                    Virginia 20166, Phone: (703) 787–1300,                and the financial assurance
                                                    auction will take place no sooner than                  Fax: (703) 787–1708.                                  requirements that will be associated
                                                    30 days following publication of the                       Withdrawal of Blocks: BOEM reserves                with the lease if it is awarded.
                                                    FSN in Federal Register. The estimated                  the right to withdraw portions of the                    Rent. Pursuant to 30 CFR 585.224(b)
                                                    timeframes described in this PSN                        proposed lease area prior to its                      and 585.503, the first year’s rent
                                                    assume the auction will take place                      execution of the lease based upon                     payment of $3 per acre is due within 45
                                                    approximately 45 days after publication                 relevant information provided to the                  days of the date the lessee receives the
                                                    of the FSN.                                             Bureau.                                               lease for execution. Thereafter, annual
                                                       From Auction to Lease Execution.                        Lease Terms and Conditions: BOEM                   rent payments are due on the
                                                    There are several steps between the                     has made available proposed terms,                    anniversary of the Effective Date of the
                                                    conclusion of the auction and execution                 conditions, and stipulations for the OCS              lease (the ‘‘Lease Anniversary’’). Once
                                                    of the lease.                                           commercial wind lease to be offered                   commercial operations under the lease
                                                       • Bid Deposit Refund: BOEM will                      through this proposed sale. If and when               begin, BOEM will charge rent only for
                                                    refund the bid deposit of any bidder that               the lease is issued, BOEM reserves the                the portions of the lease not authorized
                                                    did not win the lease. BOEM will                        right to require compliance with                      for commercial operations, i.e., not
                                                    provide a written explanation of why                    additional terms and conditions                       generating electricity. However, instead
                                                    the bidder did not win.                                 associated with approval of a SAP or                  of geographically dividing the lease area
                                                       • Department of Justice (DOJ) Review:                COP. The proposed lease is on BOEM’s                  into acreage that is ‘‘generating’’ and
                                                    The DOJ has 30 days in which to                         Web site at: http://www.boem.gov/                     ‘‘non-generating,’’ the fraction of the
asabaliauskas on DSK3SPTVN1PROD with NOTICES




                                                    conduct an antitrust review of the                      North-Carolina/. The lease includes the               lease accruing rent will be based on the
                                                    auction in consultation with the Federal                following seven attachments:                          fraction of the total nameplate capacity
                                                    Trade Commission, pursuant to 43                        • Addendum A (Description of Leased                   of the project that is not yet in
                                                    U.S.C § 1337(c).                                           Area and Lease Activities)                         operation. This fraction is calculated by
                                                       • Delivery of the Lease: BOEM will                   • Addendum B (Lease Term and                          dividing the nameplate capacity not yet
                                                    send three lease copies to the winner,                     Financial Schedule)                                authorized for commercial operations at
                                                    with instructions on how to sign the                    • Addendum C (Lease Specific Terms,                   the time payment is due by the
                                                    lease. The first year’s rent is due 45 days                Conditions, and Stipulations)                      anticipated nameplate capacity after full


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                                                                                 Federal Register / Vol. 81, No. 158 / Tuesday, August 16, 2016 / Notices                                           54595

                                                    installation of the project (as described               rent payment will be due on that                      period between the commencement of
                                                    in the COP). The annual rent due for a                  relinquished portion of the lease area.               commercial operations and the Lease
                                                    given year is then derived by                           Later relinquishments of any portion of               Anniversary. The initial annual
                                                    multiplying this fraction by the amount                 the lease area will reduce the lessee’s               operating fee payment is due within 45
                                                    of rent that would have been due for the                rent payments starting in the year                    days of the commencement of
                                                    lessee’s entire lease area at the rental                following BOEM’s approval of the                      commercial operations. Thereafter,
                                                    rate of $3 per acre.                                    relinquishment.                                       subsequent annual operating fee
                                                      For example, a 122,405 acre lease (the                   The lessee also must pay rent for any              payments are due on or before each
                                                    size of the entire Kitty Hawk LA); will                 project easement associated with the                  Lease Anniversary.
                                                    have a rent payment of $367,215 per                     lease, commencing on the date that
                                                    year if no portion of the leased area is                BOEM approves the COP (or                               The subsequent annual operating fee
                                                    authorized for commercial operations. If                modification thereof) that describes the              payments are calculated by multiplying
                                                    300 megawatts (MW) of a project’s                       project easement. Annual rent for a                   the operating fee rate by the imputed
                                                    nameplate capacity is operating (or                     project easement that is 200 feet wide                wholesale market value of the projected
                                                    authorized for operation), and the                      and centered on the transmission cable                annual electric power production for the
                                                    approved COP specifies a maximum                        is $70 per statute mile. For any                      project. For the purposes of this
                                                    project size of 500 MW, the rent                        additional acreage required, the lessee               calculation, the imputed market value is
                                                    payment will be $146,886. This                          must also pay the greater of $5 per acre              the product of the project’s annual
                                                    payment is based on the 200 MW of                       per year or $450 per year.                            nameplate capacity, the total number of
                                                    nameplate capacity BOEM has not yet                                                                           hours in the year (8,760), the capacity
                                                    authorized for commercial operations.                   Operating Fee                                         factor, and the annual average price of
                                                    For the above example, this would be                      For purposes of calculating the initial             electricity derived from a historical
                                                    calculated as follows: 200MW/500MW ×                    annual operating fee payment and                      regional wholesale power price index.
                                                    ($3/acre × 122,405 acres) = $146,886.                   pursuant to 30 CFR 585.506, an                        For example, the annual operating fee
                                                      If the lessee submits an application                  operating fee rate is applied to a proxy              for a 100 MW wind facility operating at
                                                    for relinquishment of a portion of its                  for the wholesale market value of the                 a 40% capacity (i.e., capacity factor of
                                                    lease area within the first 45 calendar                 electricity expected to be generated from             0.4) with a regional wholesale power
                                                    days following the date that the lease is               the project during its first twelve                   price of $40/MWh and an operating fee
                                                    received by the lessee for execution, and               months of operations. This initial                    rate of 0.02 would be calculated as
                                                    BOEM approves that application, no                      payment will be prorated to reflect the               follows:




                                                       Operating Fee Rate. The operating fee                down time for maintenance or other                    payment is due, based on the weighted
                                                    rate is the share of imputed wholesale                  purposes.                                             average of the inflation-adjusted peak
                                                    market value of the projected annual                       The capacity factor is expressed as a              and off-peak spot price indices for the
                                                    electric power production due to BOEM                   decimal between zero and one, and                     PJM Dominion zone for the most recent
                                                    as an annual operating fee. For the                     represents the share of anticipated                   year of spot price data available. The
                                                    proposed Kitty Hawk LA, BOEM will set                   generation of the wind facility that is               wholesale power price is adjusted for
                                                    the fee rate at 0.02 (i.e., 2 percent) for              delivered to the interconnection grid                 inflation from the year associated with
                                                    the entire life of commercial operations.               (i.e., where the lessee’s facility                    the published spot price indices to the
                                                       Nameplate Capacity. Nameplate                        interconnects with the electric grid)                 year in which the operating fee is to be
                                                    capacity is the maximum rated electric                  relative to the wind facility’s generation            due, based on the Lease Anniversary
                                                    output, expressed in MW, that the                       at continuous full power operation at                 and using annual implicit price
                                                    turbines of the wind facility under                     nameplate capacity. For the proposed                  deflators as reported by the U.S.
                                                    commercial operations can produce at                    lease area, BOEM has set the capacity                 Department of Commerce Bureau of
                                                    their rated wind speed as designated by                 factor for the year in which commercial               Economic Analysis. BOEM proposes to
                                                    the turbine’s manufacturer. The lessee                  operations commence and the six full                  use the PJM Dominion power price as
                                                    will specify in its COP the nameplate                   years thereafter at 0.4 (i.e., 40 percent).           the price in its operating fee formula.
                                                    capacity available at the start of each                 At the end of the sixth year, BOEM may                BOEM is soliciting further comments on
                                                    year of commercial operations on the                    adjust the capacity factor to reflect the             the merits of other electric power prices,
                                                    lease. For example, if the lessee                       performance over the previous five                    including prices from other hubs within
                                                    specifies 20 turbines in its COP, and                   years based upon the actual metered                   the PJM Virginia Power Company
                                                    each is rated by the design manufacturer                electricity generation at the delivery                electric region that may be used in lieu
                                                    at 5 MW, the nameplate capacity of the                  point to the electrical grid. BOEM may                of or in combination with the current
                                                    wind facility would be 100 MW.                          make similar adjustments to the                       proposed power price.
                                                       Capacity Factor. The capacity factor                 capacity factor once every five years
                                                    compares the amount of energy                                                                                 Financial Assurance
                                                                                                            thereafter. The maximum change in the
asabaliauskas on DSK3SPTVN1PROD with NOTICES




                                                    delivered to the grid during a period of                capacity factor from one period to the                  Within 10 business days after
                                                    time to the amount of energy the wind                   next will be limited to plus or minus 10              receiving the lease copies and pursuant
                                                    facility would have produced at full                    percent of the previous period’s value.               to 30 CFR 585.515–516, the provisional
                                                    capacity. The amount of power                              Wholesale Power Price Index.                       winner of the Kitty Hawk LA must
                                                    delivered will always be less than the                  Pursuant to 30 CFR 585.506(c)(2)(i), the              provide an initial lease-specific bond or
                                                    theoretical 100 percent capacity, largely               wholesale power price, expressed in                   other approved means of meeting the
                                                    because of the variability of wind                      dollars per MW-hour, is determined at                 lessor’s initial financial assurance
                                                                                                                                                                                                               EN16AU16.000</GPH>




                                                    speeds, transmission line loss, and                     the time each annual operating fee                    requirements. The provisionally


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                                                    54596                        Federal Register / Vol. 81, No. 158 / Tuesday, August 16, 2016 / Notices

                                                    winning bidder may meet financial                       authorized representative who has been                bidder may submit an exit bid and then
                                                    assurance requirements by posting a                     identified in the qualifications package              exit the auction. Bidders exiting the
                                                    surety bond or by setting up an escrow                  on file with BOEM as authorized to bind               auction are allowed to submit one exit
                                                    account with a trust agreement giving                   the company.                                          bid at an offer price greater than the
                                                    BOEM the right to withdraw the money                       Minimum Bid: The minimum bid is                    asking price in the previous round, but
                                                    held in the account on demand. BOEM                     the lowest price BOEM will accept as a                less than the asking price in the current
                                                    encourages the provisionally winning                    winning bid. BOEM has established a                   round. Exit bids allow bidders to
                                                    bidder to discuss the financial assurance               minimum bid per acre of $2.00 or                      express precisely the maximum price
                                                    requirement with BOEM as soon as                        $244,810 for the proposed lease sale.                 they are willing to offer while also
                                                    possible after the auction has                             Auction Procedures: The following is               minimizing the chance of ties. If a
                                                    concluded.                                              a summary of the auction procedures                   bidder does not submit any bid at all in
                                                       BOEM will base the amount of all                     that BOEM proposes to use if it                       the current round, BOEM will treat the
                                                    SAP, COP, and decommissioning                           proceeds with the proposed Kitty Hawk                 bidder as having submitted an exit bid
                                                    financial assurance requirements on                     lease sale.                                           in the current round at the previous
                                                    cost estimates for meeting all accrued                  Summary of Auction Format                             round’s asking price. If a bidder exits
                                                    lease obligations at the respective stages                                                                    the auction by placing an exit bid (or by
                                                    of development. The required amount of                     As authorized under 30 CFR
                                                                                                                                                                  not submitting any bid at all) in the
                                                    supplemental and decommissioning                        585.220(a)(2) and 585.221(a)(1), BOEM
                                                                                                                                                                  current round, it will not be allowed to
                                                    financial assurance will be determined                  intends to conduct the proposed lease
                                                                                                                                                                  submit bids in any subsequent round.
                                                    on a case-by-case basis.                                sale using an ascending bidding auction
                                                                                                                                                                  BOEM will not consider exit bids for the
                                                       The financial terms described above                  with cash as the bid variable. Using an
                                                                                                                                                                  purpose of determining whether to
                                                    can be found in Addendum B of the                       online bidding system to host the
                                                                                                                                                                  increase the asking price or to end the
                                                    proposed lease, which BOEM has made                     auction, BOEM sets an initial asking
                                                                                                                                                                  auction.
                                                    available with this notice on its Web site              price for Lease OCS–A 0508 and                           After the final round of the auction,
                                                    at: http://www.boem.gov/North-                          increases that price incrementally until              BOEM will determine the provisionally
                                                    Carolina/.                                              no more than one active bidder remains                winning bidder to be the bidder with
                                                       Bid Deposit: A bid deposit is an                     in the auction. A bid submitted at the                the highest bid, whether the bid was a
                                                    advance cash payment submitted to                       full asking price for the lease in a                  live bid or an exit bid. If there is a tie,
                                                    BOEM in order to participate in the                     particular round is referred to as a live             BOEM will resolve the tie by
                                                    auction. Each qualified bidder must                     bid. During each round, active bidders                randomized means. The provisionally
                                                    submit a bid deposit of $450,000 no                     may: (1) Submit a live bid indicating                 winning bidder may be disqualified if it
                                                    later than the deadline provided in the                 that they are interested in acquiring the             is subsequently found to have violated
                                                    FSN. Any qualified bidder who fails to                  lease at the current round’s stated                   auction rules or otherwise engaged in
                                                    submit the bid deposit by this deadline                 asking price, or (2) submit an exit bid               conduct detrimental to the integrity of
                                                    may be disqualified from participating                  (see below for discussion of exit bids).              the competitive auction.
                                                    in the auction. Bid deposits will be                    All bids are considered binding until                    The auction winner for the proposed
                                                    accepted online via pay.gov.                            BOEM has determined the winning bid.                  lease sale will have 10 business days
                                                       Following the auction, bid deposits                     A bidder remains active in the auction             from receiving the lease to post financial
                                                    will be applied against bonus bids or                   as long as it continues to meet BOEM’s                assurance, pay any outstanding balance
                                                    other obligations owed to BOEM. If the                  asking price in each round. If more than              of its bonus bid, and sign and return
                                                    bid deposit exceeds a bidder’s total                    one live bid is received in a round,                  three copies of the lease. BOEM reserves
                                                    financial obligation, the balance of the                BOEM increases the asking price                       the right not to issue the lease to the
                                                    bid deposit will be refunded to the                     incrementally and conducts another                    provisionally winning bidder if that
                                                    bidder. BOEM will refund bid deposits                   auction round. BOEM would raise the                   bidder fails to timely sign and pay for
                                                    to non-winners.                                         asking price following any round in
                                                       Bidder Financial Form: Each bidder                                                                         the lease or otherwise fails to comply
                                                                                                            which two or more bidders submitted                   with applicable regulations or terms of
                                                    must fill out the BFF referenced in this                live bids. The auction concludes at the
                                                    PSN. BOEM has also made a copy of the                                                                         the FSN. In that case, that bidder will
                                                                                                            end of the round in which the number                  forfeit its bid deposit. If a bidder fails to
                                                    form available with this notice on its                  of live bids received falls to one or zero.
                                                    Web site at: http://www.boem.gov/                                                                             timely pay the full amount due, BOEM
                                                                                                               Asking price increments are in
                                                    North-Carolina/. BOEM recommends                                                                              may consider this to be an indication
                                                                                                            BOEM’s sole discretion. They will be
                                                    that each bidder designate an email                                                                           that the bidder is no longer financially
                                                                                                            determined round-by-round and based
                                                    address in its BFF that the bidder will                                                                       qualified to participate in other lease
                                                                                                            on a number of factors, including, but
                                                    then use to create an account in pay.gov                                                                      sales under BOEM’s regulations at 30
                                                                                                            not necessarily limited to, the number of
                                                    (if it has not already done so). Bidders                                                                      CFR 585.106—107. If a winning bidder
                                                                                                            bidders remaining in the lease sale, the
                                                    may then use the Bid Deposit Form on                                                                          does not sign the lease pursuant to the
                                                                                                            expected time needed to conduct the
                                                    the pay.gov Web site to leave a deposit.                                                                      proposed lease sale, BOEM reserves the
                                                                                                            auction, and the number of rounds that
                                                       BOEM will not consider BFFs                                                                                right to identify the next highest bid
                                                                                                            have already occurred. BOEM reserves
                                                    submitted by qualified bidders for                                                                            submitted during the proposed lease
                                                                                                            the right to increase or decrease bidding
                                                    previous lease sales to satisfy the                                                                           sale and offer the lease pursuant to this
                                                                                                            increments as necessary.
                                                    requirements of the proposed Kitty                         Between rounds, BOEM will disclose                 bid.
asabaliauskas on DSK3SPTVN1PROD with NOTICES




                                                    Hawk lease sale. BOEM will also only                    to all bidders eligible to bid in the next            Additional Information Regarding the
                                                    consider BFFs submitted after the                       round: (1) The number of live bids in                 Auction Format
                                                    deadline if BOEM determines that the                    the previous round of the auction (i.e.,
                                                    failure to timely submit the BFF was                    the level of demand); and (2) the asking              Bidder Authentication
                                                    caused by events beyond the bidder’s                    price in the upcoming round of the                      For the proposed online auction,
                                                    control. BOEM will only accept an                       auction.                                              BOEM will require two-factor
                                                    original, executed paper copy of the                       If a bidder is not willing to meet the             authentication. Prior to the auction,
                                                    BFF. The BFF must be executed by an                     asking price in the upcoming round, the               BOEM will send several bidder


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                                                                                 Federal Register / Vol. 81, No. 158 / Tuesday, August 16, 2016 / Notices                                            54597

                                                    authentication packages to the bidders                  BOEM anticipates the proposed auction                   Rejection or Non-Acceptance of Bids:
                                                    shortly after BOEM has processed the                    will last one or two business days, but               BOEM reserves the right and authority
                                                    BFFs. One package will contain digital                  bidders are advised to prepare to                     to reject any and all bids that do not
                                                    authentication tokens for each                          continue bidding for additional business              satisfy the requirements and rules of the
                                                    authorized individual. The tokens will                  days if necessary, to resolve the auction.            proposed auction, the FSN, or
                                                    be sent to the primary point of contact                    BOEM and the auction contractor will               applicable regulations and statutes.
                                                    indicated on the BFF. This individual is                use the auction platform messaging
                                                                                                            service to keep bidders informed on                   Anti-Competitive Review
                                                    responsible for distributing the tokens to
                                                    the individuals authorized to bid for                   issues of interest during the proposed                   This sale is subject to Federal
                                                    that company. Bidders are to ensure that                auction. BOEM will use the messaging                  antitrust laws. Accordingly, following
                                                    each token is returned within three                     system for auction schedule changes                   the auction, but before the acceptance of
                                                    business days following the auction. An                 and other updates during the auction.                 the bid and the issuance of the lease,
                                                    addressed, stamped envelope will be                        Bidders may place bids at any time                 BOEM will ‘‘allow the Attorney General,
                                                    provided to facilitate this process. In the             during the round. At the top of the                   in consultation with the Federal Trade
                                                    event that a bidder fails to submit a bid               bidding page, a countdown clock will                  Commission, 30 days to review the
                                                    deposit or does not participate in the                  show how much time remains in the                     results of the lease sale.’’ 43 U.S.C.
                                                    proposed auction, BOEM will de-                         round. Bidders have until the scheduled               1337(c). If a provisionally winning
                                                    activate that bidder’s token and login                  ending time to place bids. Bidders                    bidder is found to have engaged in anti-
                                                    information, and the bidder will                        should bid according to the procedures                competitive practices in connection
                                                    likewise be asked to return its tokens                  described in both the FSN and the                     with this sale, BOEM may reject its bid.
                                                    within three business days following the                Auction System Technical Supplement.                     Anti-competitive practices may
                                                    auction.                                                No information about bidding during a                 include, but are not limited to:
                                                       The second package contains login                    given round is available until the round              • An express or tacit agreement among
                                                    credentials for authorized bidders. The                 has closed and results have been posted,                 bidders not to bid in an auction, or to
                                                    login credentials will be sent to the                   so there is no tactical advantage to                     bid at a particular price;
                                                    address provided in the BFF for each                    placing bids early or late in the round.              • An agreement among bidders not to
                                                    authorized individual. Bidders can                         The timing of the auction will be
                                                                                                                                                                     bid against each other; and
                                                                                                            elaborated on and clarified in the
                                                    confirm these addresses by calling 703–                                                                       • Other agreements among bidders that
                                                    787–1320. This package will contain                     Auction System Technical Supplement
                                                                                                                                                                     have the potential to affect the final
                                                    user login information and instructions                 which is available on BOEM’s Web site
                                                                                                                                                                     auction price.
                                                    for accessing the Auction System                        at: http://www.boem.gov/North-
                                                                                                            Carolina/ if and when the FSN is                         BOEM will decline to award the lease
                                                    Technical Supplement and Alternative                                                                          if the Attorney General, in consultation
                                                    Bidding Form. The login information,                    published in the Federal Register. The
                                                                                                            Auction System Technical Supplement                   with the Federal Trade Commission,
                                                    along with the tokens, will be tested                                                                         determines that doing so would be
                                                    during the Mock Auction.                                will describe auction procedures that
                                                                                                            are incorporated by reference into the                inconsistent with the antitrust laws. See
                                                    Timing of Auction                                       FSN, except in the unexpected                         43 U.S.C. 1337(c).
                                                                                                            circumstance that any of the                             For more information on whether
                                                       The FSN will provide specific                                                                              specific communications or agreements
                                                    information regarding when bidders can                  information in the Auction System
                                                                                                            Technical Supplement is inconsistent                  could constitute a violation of Federal
                                                    enter the auction system and when the                                                                         antitrust law, please see http://
                                                    proposed auction will start. Once                       with the FSN, in which case the
                                                                                                            provisions of the FSN will take                       www.justice.gov/atr/public/business-
                                                    bidders have logged in, they should                                                                           resources.html, or consult legal counsel.
                                                    review the auction schedule, which lists                precedence.
                                                                                                                                                                     Process for Issuing the Lease: Once all
                                                    the start, end, and recess times of each                Alternate Bidding Procedures                          post-auction reviews have been
                                                    round in the auction. Each round is                                                                           completed to BOEM’s satisfaction,
                                                                                                              Alternate Bidding Procedures enable a
                                                    structured as follows:                                                                                        BOEM will issue three unsigned copies
                                                                                                            bidder who is having difficulties
                                                    • Bidding round begins;                                 accessing the Internet to submit its bid              of the lease to the provisionally winning
                                                    • Bidders enter their bids;                             via fax using an Alternate Bidding Form               bidder. Within 10 business days after
                                                    • Bidding round ends and the recess                     available on BOEM’s Web site at: http://              receiving the lease copies, the
                                                       begins;                                              www.boem.gov/North-Carolina/.                         provisionally winning bidder must:
                                                       • During the recess, the number of                     In order to be authorized to use an                    1. Sign and return the lease copies on
                                                    live bids received in the previous round                Alternative Bidding Form, a bidder                    the bidder’s behalf;
                                                    and the next round’s asking price are                   must call the help desk number listed in                 2. File financial assurance, as required
                                                    posted;                                                 the Auction Manual before the end of                  under 30 CFR 585.515–537; and
                                                       • Bidders review the previous round                  the round. BOEM will authenticate the                    3. Pay by electronic funds transfer
                                                    results and prepare their next round’s                  caller to ensure he/she is authorized to              (EFT) the balance (if any) of the bonus
                                                    bids; and                                               bid on behalf of the company. The                     bid (winning bid less the bid deposit).
                                                       • Next bidding round begins.                         bidder must explain the reasons for                   BOEM requires bidders to use EFT
                                                       The first round will last about 30                   which he/she cannot place a bid using                 procedures (not pay.gov, the Web site
                                                    minutes, though subsequent rounds may                   the online bidding platform. BOEM                     bidders used to submit bid deposits) for
asabaliauskas on DSK3SPTVN1PROD with NOTICES




                                                    be shorter. Recesses are anticipated to                 may, in its sole discretion, permit or                payment of the balance of the bonus bid,
                                                    last approximately 10 minutes. The                      refuse to accept a request for the                    following the detailed instructions
                                                    descriptions of the auction schedule and                placement of a bid using the Alternate                contained in the ‘‘Instructions for
                                                    asking price increments included in the                 Bidding Procedures.                                   Making Electronic Payments’’ available
                                                    PSN and FSN are tentative. Bidders                        If bidders need to submit an Alternate              on BOEM’s Web site at: http://
                                                    should consult the auction schedule on                  Bidding Form, they are strongly                       www.boem.gov/North-Carolina/.
                                                    the bidding Web site just before and                    encouraged to do so before the round                     BOEM will not execute a lease until
                                                    during the auction for updated times.                   ends.                                                 the three requirements above have been


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                                                    54598                        Federal Register / Vol. 81, No. 158 / Tuesday, August 16, 2016 / Notices

                                                    satisfied, the provisionally winning                       Appeals: The appeals procedures are                ACTION:   Notice.
                                                    bidder’s financial assurance has been                   provided in BOEM’s regulations at 30
                                                    accepted pursuant to 30 CFR 585.515,                    CFR 585.225 and 585.118(c). Pursuant                  SUMMARY:   Notice is hereby given of
                                                    and the provisionally winning bidder’s                  to 30 CFR 585.225:                                    contractual actions that have been
                                                    payment has been processed.                                (a) If BOEM rejects your bid, BOEM                 proposed to the Bureau of Reclamation
                                                       BOEM may extend the 10 business                      will provide a written statement of the               (Reclamation) and are new,
                                                    day deadline for executing the lease on                 reasons and refund any money                          discontinued, or completed since the
                                                    the bidder’s behalf, filing the required                deposited with your bid, without                      last publication of this notice. This
                                                    financial assurance, and/or paying the                  interest.                                             notice is one of a variety of means used
                                                    balance of the bonus bid, but only if                      (b) You will then be able to ask the               to inform the public about proposed
                                                    BOEM determines the delay was caused                    BOEM Director for reconsideration, in                 contractual actions for capital recovery
                                                    by events beyond the provisionally                      writing, within 15 business days of bid               and management of project resources
                                                    winning bidder’s control.                               rejection, under 30 CFR 585.118(c)(1).                and facilities consistent with section 9(f)
                                                       If the provisionally winning bidder                  We will send you a written response                   of the Reclamation Project Act of 1939.
                                                    does not meet these requirements or                     either affirming or reversing the                     Additional announcements of
                                                    otherwise fails to comply with                          rejection.                                            individual contract actions may be
                                                    applicable regulations or the terms of                     The procedures for appealing final                 published in the Federal Register and in
                                                    the FSN, BOEM reserves the right not to                 decisions with respect to lease sales are             newspapers of general circulation in the
                                                    issue the lease to that bidder. In such a               described in 30 CFR 585.118(c).                       areas determined by Reclamation to be
                                                    case, the provisionally winning bidder                                                                        affected by the proposed action.
                                                    will forfeit its bid deposit.                           Protection of Privileged or Confidential
                                                                                                            Information                                           ADDRESSES: The identity of the
                                                       Within 45 days of the date that the                                                                        approving officer and other information
                                                    provisionally winning bidder receives                      BOEM will protect privileged or                    pertaining to a specific contract
                                                    copies of the lease, it must pay the first              confidential information that you                     proposal may be obtained by calling or
                                                    year’s rent using the pay.gov Renewable                 submit as required by the Freedom of                  writing the appropriate regional office at
                                                    Energy Initial Rental Payment form                      Information Act (FOIA). Exemption 4 of                the address and telephone number given
                                                    available at: https://pay.gov/paygov/                   FOIA applies to ‘‘trade secrets and                   for each region in the SUPPLEMENTARY
                                                    forms/formInstance.html?agency                          commercial or financial information                   INFORMATION section.
                                                    FormId=27797604.                                        that you submit that is privileged or
                                                                                                                                                                  FOR FURTHER INFORMATION CONTACT:
                                                       Subsequent annual rent payments                      confidential.’’ 5 U.S.C. 552(b)(4). If you
                                                    must be made following the detailed                                                                           Michelle Kelly, Reclamation Law
                                                                                                            wish to protect the confidentiality of
                                                    instructions contained in the                                                                                 Administration Division, Bureau of
                                                                                                            such information, clearly mark it
                                                    ‘‘Instructions for Making Electronic                                                                          Reclamation, P.O. Box 25007, Denver,
                                                                                                            ‘‘Contains Privileged or Confidential
                                                    Payments,’’ available on BOEM’s Web                                                                           Colorado 80225–0007; telephone 303–
                                                                                                            Information’’ and consider submitting
                                                    site at: http://www.boem.gov/North-                                                                           445–2888.
                                                                                                            such information as a separate
                                                    Carolina/.                                              attachment. BOEM will not disclose                    SUPPLEMENTARY INFORMATION: Consistent
                                                       Non-Procurement Debarment and                        such information, except as required by               with section 9(f) of the Reclamation
                                                    Suspension Regulations: Pursuant to                     FOIA. Information that is not labeled as              Project Act of 1939, and the rules and
                                                    regulations at 43 CFR part 42, subpart C,               privileged or confidential will be                    regulations published in 52 FR 11954,
                                                    an OCS renewable energy lessee must                     regarded by BOEM as suitable for public               April 13, 1987 (43 CFR 426.22),
                                                    comply with the Department of the                       release.                                              Reclamation will publish notice of
                                                    Interior’s non-procurement debarment                       BOEM will not treat as confidential                proposed or amendatory contract
                                                    and suspension regulations at 2 CFR 180                 aggregate summaries of otherwise                      actions for any contract for the delivery
                                                    and 1400. The lessee must also                          confidential information or comments                  of project water for authorized uses in
                                                    communicate this requirement to                         not containing such information.                      newspapers of general circulation in the
                                                    persons with whom the lessee does                       Additionally, BOEM will not treat as                  affected area at least 60 days prior to
                                                    business relating to this lease, by                     confidential the legal title of the                   contract execution. Announcements
                                                    including this term as a condition in                   commenting entity (e.g., the name of                  may be in the form of news releases,
                                                    their contracts and other transactions.                 your company).                                        legal notices, official letters,
                                                       Force Majeure: The Program Manager                                                                         memorandums, or other forms of
                                                                                                              Dated: August 9, 2016.
                                                    of BOEM’s Office of Renewable Energy                                                                          written material. Meetings, workshops,
                                                    Programs has the discretion to change                   Abigail Ross Hopper,                                  and/or hearings may also be used, as
                                                    any auction details specified in the FSN,               Director, Bureau of Ocean Energy                      appropriate, to provide local publicity.
                                                    including the date and time, in case of                 Management.                                           The public participation procedures do
                                                    a force majeure event that the Program                  [FR Doc. 2016–19552 Filed 8–15–16; 8:45 am]           not apply to proposed contracts for the
                                                    Manager deems may interfere with a fair                 BILLING CODE 4310–MR–P                                sale of surplus or interim irrigation
                                                    and proper lease sale process. Such                                                                           water for a term of 1 year or less. Either
                                                    events may include, but are not limited                                                                       of the contracting parties may invite the
                                                    to: Natural disasters (e.g., earthquakes,               DEPARTMENT OF THE INTERIOR                            public to observe contract proceedings.
                                                    hurricanes, floods, blizzards), wars,                   Bureau of Reclamation                                 All public participation procedures will
                                                    riots, acts of terrorism, fire, strikes, civil                                                                be coordinated with those involved in
asabaliauskas on DSK3SPTVN1PROD with NOTICES




                                                    disorder or other events of a similar                   [RR83550000, 167R5065C6,                              complying with the National
                                                    nature. In case of such events, BOEM                    RX.59389832.1009676]                                  Environmental Policy Act. Pursuant to
                                                    will notify all qualified bidders via                                                                         the ‘‘Final Revised Public Participation
                                                                                                            Quarterly Status Report of Water
                                                    email, phone, or through the BOEM                                                                             Procedures’’ for water resource-related
                                                                                                            Service, Repayment, and Other Water-
                                                    Web site at: http://www.boem.gov/                                                                             contract negotiations, published in 47
                                                                                                            Related Contract Actions
                                                    Renewable-Energy-Program/index.aspx.                                                                          FR 7763, February 22, 1982, a tabulation
                                                    Bidders should call 703–787–1320 if                     AGENCY:     Bureau of Reclamation,                    is provided of all proposed contractual
                                                    they have concerns.                                     Interior.                                             actions in each of the five Reclamation


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Document Created: 2016-08-16 03:20:10
Document Modified: 2016-08-16 03:20:10
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionProposed sale notice and request for interest for commercial leasing for Wind Power on the outer continental shelf offshore North Carolina (Kitty Hawk).
DatesComments should be submitted electronically or postmarked no later than October 17, 2016. All comments received or postmarked during the comment period will be made available to the public and considered prior to publication of the Final Sale Notice (FSN).
ContactWill Waskes, BOEM Office of Renewable Energy Programs, 45600 Woodland Road, VAM-OREP, Sterling, Virginia 20166, (703) 787-1320 or [email protected]
FR Citation81 FR 54591 

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