81 FR 95185 - Gulf of Mexico Central Planning Area Outer Continental Shelf Oil and Gas Lease Sale 247; MMAA104000

DEPARTMENT OF THE INTERIOR
Bureau of Ocean Energy Management

Federal Register Volume 81, Issue 248 (December 27, 2016)

Page Range95185-95190
FR Document2016-31218

On Wednesday, March 22, 2017, the Bureau of Ocean Energy Management (BOEM) will open and publicly announce bids received for blocks offered in the Gulf of Mexico Central Planning Area (CPA) Lease Sale 247 (CPA Sale 247.. The CPA Sale 247 Final Notice of Sale (NOS) package contains information essential to potential bidders.

Federal Register, Volume 81 Issue 248 (Tuesday, December 27, 2016)
[Federal Register Volume 81, Number 248 (Tuesday, December 27, 2016)]
[Notices]
[Pages 95185-95190]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-31218]


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DEPARTMENT OF THE INTERIOR

Bureau of Ocean Energy Management


Gulf of Mexico Central Planning Area Outer Continental Shelf Oil 
and Gas Lease Sale 247; MMAA104000

AGENCY: Bureau of Ocean Energy Management, Interior.

ACTION: Final notice of sale.

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SUMMARY: On Wednesday, March 22, 2017, the Bureau of Ocean Energy 
Management (BOEM) will open and publicly announce bids received for 
blocks offered in the Gulf of Mexico Central Planning Area (CPA) Lease 
Sale 247 (CPA Sale 247.. The CPA Sale 247 Final Notice of Sale (NOS) 
package contains information essential to potential bidders.

DATES: Public Bid reading for CPA Sale 247 will begin at 9:00 a.m. on 
Wednesday, March 22, 2017, at 1201 Elmwood Park Boulevard, New Orleans, 
Louisiana. The venue will not be open to the general public, media, or 
industry. Instead, the bid opening will be available for public viewing 
on BOEM's Web site at www.boem.gov via live-streaming video beginning 
at 9:00 a.m. on the date of the sale. The use of live-streaming video 
will provide greater access to a wider national and international 
audience while ensuring the security of BOEM staff. BOEM will also post 
the results on its Web site after bid opening and reading are 
completed. All times referred to in this document are Central Standard 
Time, unless otherwise specified.
    Bid Submission Deadline: BOEM must receive all sealed bids during 
normal business hours, between 8:00 a.m. and 4:00 p.m. through March 
20, 2017, and from 8:00 a.m. to the Bid Submission Deadline of 10:00 
a.m. on Tuesday, March 21, 2017, the day before the lease sale. For 
more information on bid submission, see Section VII, ``Bidding 
Instructions,'' of this document.

ADDRESSES: Interested parties, upon request, may obtain a compact disc 
(CD-ROM) containing the Final Notice of Sale (NOS) package by 
contacting the BOEM Gulf of Mexico (GOM) Region at: Gulf of Mexico 
Region Public Information Office, Bureau of Ocean Energy Management, 
1201 Elmwood Park Boulevard, New Orleans, Louisiana 70123-2394, (504) 
736-2519 or (800) 200-GULF, or can download the Final NOS package by 
visiting the BOEM Web site at http://www.boem.gov/Sale-247/.

Table of Contents

    This Final NOS includes the following sections:

I. Lease Sale Area
II. Statutes and Regulations
III. Lease Terms and Economic Conditions
IV. Lease Stipulations
V. Information to Lessees
VI. Maps
VII. Bidding Instructions
VIII. Bidding Rules and Restrictions
IX. Forms
X. The Lease Sale
XI. Delay of Sale

I. Lease Sale Area

    Blocks Offered for Leasing: BOEM will offer for bid in this lease 
sale all of the available unleased acreage in the CPA, except those 
blocks listed in ``Blocks Not Offered for Leasing'' below.
    Blocks Not Offered for Leasing: The following whole and partial 
blocks are not offered for lease in this sale:
    Whole and partial blocks deferred by the Gulf of Mexico Energy 
Security Act of 2006, Public Law 109-432:

Pensacola (OPD NH 16-05)

Whole Blocks: 751 through 754, 793 through 798, 837 through 842, 881 
through 886, 925 through 930, and 969 through 975

Destin Dome (OPD NH 16-08)

Whole Blocks: 1 through 7, 45 through 51, 89 through 96, 133 through 
140, 177 through 184, 221 through 228, 265 through 273, 309 through 
317, 353 through 361, 397 through 405, 441 through 450, 485 through 
494, 529 through 538, 573 through 582, 617 through 627, 661 through 
671, 705 through 715, 749 through 759, 793 through 804, 837 through 
848, 881 through 892, 925 through 936, and 969 through 981

DeSoto Canyon (OPD NH 16-11)

Whole Blocks: 1 through 15, 45 through 59, and 92 through 102
Partial Blocks: 16, 60, 61, 89 through 91, 103 through 105, and 135 
through 147

Henderson (OPD NG 16-05)

Partial Blocks: 114, 158, 202, 246, 290, 334, 335, 378, 379, 422, and 
423

    Blocks that are adjacent to or beyond the United States Exclusive 
Economic Zone in the area known as the northern portion of the Eastern 
Gap:

Lund South (OPD NG 16-07)

Whole Blocks: 128, 129, 169 through 173, 208 through 217, 248 through 
261, 293 through 305, and 349

Henderson (OPD NG 16-05)

Whole Blocks: 466, 508 through 510, 551 through 554, 594 through 599, 
637 through 643, 679 through 687, 722 through 731, 764 through 775, 807 
through 819, 849 through 862, 891 through 905, 933 through 949, and 975 
through 992
Partial Blocks: 467, 511, 555, 556, 600, 644, 688, 732, 776, 777, 820, 
821, 863, 864, 906, 907, 950, 993, and 994

Florida Plain (OPD NG 16-08)

Whole Blocks: 5 through 24, 46 through 67, 89 through 110, 133 through 
154, 177 through 197, 221 through 240, 265 through 283, 309 through 
327, and 363 through 370

The lease status of the following block is currently under appeal; 
should the appeal be resolved prior to publishing the Final NOS, the 
block may be available for lease in the CPA 247 Sale:

West Cameron (Leasing Map LA1) Block 171

II. Statutes and Regulations

    In accordance with the provisions of the Outer Continental Shelf 
Lands Act,

[[Page 95186]]

43 U.S.C. 1331-1356, as amended (OCSLA), and the implementing 
regulations issued pursuant thereto in 30 CFR parts 550 and 556, each 
lease is issued pursuant to OCSLA and is subject to OCSLA implementing 
regulations promulgated pursuant thereto, and other applicable statutes 
and regulations in existence upon the effective date of the lease, as 
well as those applicable statutes enacted and regulations promulgated 
thereafter, except to the extent that the after-enacted statutes and 
regulations explicitly conflict with an express provision of the lease. 
Each lease is also subject to amendments to statutes and regulations, 
including but not limited to OCSLA, that do not explicitly conflict 
with an express provision of the lease. The lessee expressly bears the 
risk that such new or amended statutes and regulations (i.e., those 
that do not explicitly conflict with an express provision of the lease) 
may increase or decrease the lessee's obligations under the lease.

III. Lease Terms and Economic Conditions

Lease Terms

OCS Lease Form
    BOEM will use Form BOEM-2005 (October 2011) to convey leases 
resulting from this sale. This lease form may be viewed on the BOEM Web 
site at http://www.boem.gov/BOEM-2005/. The lease form will be amended 
to conform with the specific terms, conditions, and stipulations 
applicable to the individual lease. The terms, conditions, and 
stipulations applicable to this sale are set forth below.
Initial Periods
    Initial periods are summarized in the following table:

------------------------------------------------------------------------
   Water depth (meters)                    Initial period
------------------------------------------------------------------------
0 to <400................  Standard initial period is 5 years; the
                            lessee may earn an additional 3 years (i.e.,
                            for an 8-year extended initial period) if a
                            well is spudded targeting hydrocarbons below
                            25,000 feet True Vertical Depth Subsea (TVD
                            SS) during the first 5 years of the lease.
400 to <800..............  Standard initial period is 5 years; the
                            lessee will earn an additional 3 years
                            (i.e., for an 8-year extended initial
                            period) if a well is spudded during the
                            first 5 years of the lease.
800 to <1,600............  Standard initial period is 7 years; the
                            lessee will earn an additional 3 years
                            (i.e., for a 10-year extended initial
                            period) if a well is spudded during the
                            first 7 years of the lease.
1,600 +..................  10 years.
------------------------------------------------------------------------

    (1) The standard initial period for a lease in water depths less 
than 400 meters issued as a result of this sale is 5 years. If the 
lessee spuds a well targeting hydrocarbons below 25,000 feet TVD SS 
within the first 5 years of the lease, then the lessee may earn an 
additional 3 years, resulting in an 8 year extended initial period. The 
lessee will earn the 8-year extended initial period when the well is 
drilled to a target below 25,000 feet TVD SS, or the lessee may earn 
the 8-year extended initial period in cases where the well targets, but 
does not reach, a depth below 25,000 feet TVD SS due to mechanical or 
safety reasons, where sufficient evidence is provided that it did not 
reach that target for reasons beyond the lessee's control.
    In order to earn the 8-year extended initial period, the lessee is 
required to submit to the BOEM Gulf of Mexico Regional Supervisor for 
Leasing and Plans, as soon as practicable, but in any instance not more 
than 30 days after completion of the drilling operation, a letter 
providing the well number, spud date, information demonstrating a 
target below 25,000 TVD SS and whether that target was reached, and if 
applicable, any safety, mechanical, or other problems encountered that 
prevented the well from reaching a depth below 25,000 feet TVD SS. This 
letter must request confirmation that the lessee earned the 8-year 
extended initial period. The extended initial period is not effective 
unless and until the lessee receives confirmation from BOEM. The 
Regional Supervisor for Leasing and Plans will confirm in writing, 
within 30 days of receiving the lessee's letter whether the lessee has 
earned the extended initial period and update BOEM records accordingly.
    A lessee that has earned the 8-year extended initial period by 
spudding a well with a hydrocarbon target below 25,000 feet TVD SS 
during the standard 5-year initial period of the lease, will not be 
granted a suspension for that same period under the regulations at 30 
CFR 250.175, because the lease is not at risk of expiring.
    (2) The standard initial period for a lease in water depths ranging 
from 400 to less than 800 meters issued as a result of this sale is 5 
years. If the lessee spuds a well within the standard 5-year initial 
period of the lease, the lessee will earn an additional 3 years, 
resulting in an 8-year extended initial period.
    In order to earn the 8-year extended initial period, the lessee is 
required to submit to the BOEM Gulf of Mexico Regional Supervisor for 
Leasing and Plans, as soon as practicable, but in no case more than 30 
days after spudding a well, a letter providing the well number and spud 
date, and requesting confirmation that the lessee earned the 8-year 
extended initial period. Within 30 days of receipt of the request, the 
Regional Supervisor for Leasing and Plans will provide written 
confirmation of whether the lessee has earned the earned the extended 
initial period and update BOEM records accordingly.
    (3) The standard initial period for a lease in water depths ranging 
from 800 to less than 1,600 meters issued as a result of this sale is 7 
years. If the lessee spuds a well within the standard 7-year initial 
period of the lease, the lessee will earn an additional 3 years, 
resulting in a 10-year extended initial period.
    In order to earn the 10-year extended initial period, the lessee is 
required to submit to the BOEM Gulf of Mexico Regional Supervisor for 
Leasing and Plans, as soon as practicable, but in no case more than 30 
days after spudding a well, a letter providing the well number and spud 
date, and requesting confirmation that the lessee earned the 10-year 
extended initial period. Within 30 days of receipt of the request, the 
Regional Supervisor for Leasing and Plans will provide written 
confirmation of whether the lessee has earned the extended initial 
period and update BOEM records accordingly.
    (4) The standard initial period for a lease in water depths 1,600 
meters or greater issued as a result of this sale will be 10 years.

[[Page 95187]]

Economic Conditions

Minimum Bonus Bid Amounts
     $25.00 per acre or fraction thereof for blocks in water 
depths less than 400 meters; and
     $100.00 per acre or fraction thereof for blocks in water 
depths 400 meters or deeper.
    BOEM will not accept a bonus bid unless it provides for a cash 
bonus in an amount equal to, or exceeding, the specified minimum bid of 
$25.00 per acre or fraction thereof for blocks in water depths less 
than 400 meters, and $100.00 per acre or fraction thereof for blocks in 
water depths 400 meters or deeper.
Rental Rates
    Annual rental rates are summarized in the following table:

                Rental Rates per Acre or Fraction Thereof
------------------------------------------------------------------------
                                    Years 1-
       Water depth (meters)            5          Years 6, 7, & 8 +
------------------------------------------------------------------------
0 to <200.........................    $7.00  $14.00, $21.00, & $28.00
200 to <400.......................    11.00  $22.00, $33.00, & $44.00
400 +.............................    11.00  $16.00
------------------------------------------------------------------------

Escalating Rental Rates for Leases With an 8-Year Extended Initial 
Period in Water Depths Less Than 400 Meters
    Any lessee with a lease in less than 400 meters water depth who 
earns an 8-year extended initial period will pay an escalating rental 
rate as shown above. The rental rates after the fifth year for blocks 
in less than 400 meters water depth will become fixed and no longer 
escalate, if another well is spudded targeting hydrocarbons below 
25,000 feet TVD SS after the fifth year of the lease, and BOEM concurs 
that such a well has been spudded. In this case, the rental rate will 
become fixed at the rental rate in effect during the lease year in 
which the additional well was spudded.
Royalty Rate
 18.75%
Minimum Royalty Rate
     $7.00 per acre or fraction thereof per year for blocks in 
water depths less than 200 meters; and
     $11.00 per acre or fraction thereof per year for blocks in 
water depths 200 meters or deeper.
Royalty Suspension Provisions
    The issuance of leases with Royalty Suspension Volumes (RSVs) or 
other forms of royalty relief is authorized under existing BOEM 
regulations at 30 CFR part 560. The specific details relating to 
eligibility and implementation of the various royalty relief programs, 
including those involving the use of RSVs, are codified in Bureau of 
Safety and Environmental Enforcement (BSEE) regulations at 30 CFR part 
203. In this sale, the only royalty relief program being offered that 
involves the provision of RSVs relates to the drilling of ultra-deep 
wells in water depths of less than 400 meters, as described in the 
following sections.
Royalty Suspension Volumes on Gas Production From Ultra-Deep Wells
    Leases issued as a result of this sale may be eligible for RSVs 
incentives on gas produced from ultra-deep wells pursuant to 30 CFR 
part 203. These regulations implement the requirements of the Energy 
Policy Act of 2005. Under this program, wells on leases in less than 
400 meters water depth and completed to a drilling depth of 20,000 feet 
TVD SS or deeper receive a RSV of 35 billion cubic feet on the 
production of natural gas. This RSVs incentive is subject to applicable 
price thresholds set forth in the regulation at 30 CFR part 203.

IV. Lease Stipulations

    One or more of the following stipulations may be applied to leases 
issued as a result of this sale. The detailed text of these 
stipulations is contained in the ``Lease Stipulations'' section of the 
Final NOS package.

(1) Topographic Features
(2) Live Bottom
(3) Military Areas
(4) Evacuation
(5) Coordination
(6) Blocks South of Baldwin County, Alabama
(7) United Nations Convention on the Law of the Sea Royalty Payment
(8) Protected Species
(9) Below Seabed Operations
(10) Agreement between the United States of America and the United 
Mexican States Concerning Transboundary Hydrocarbon Reservoirs in the 
Gulf of Mexico

V. Information to Lessees

    The Information to Lessees (ITL) clauses below provide detailed 
information on certain issues pertaining to this oil and gas lease 
sale. The detailed text of these ITL clauses is contained in the 
``Information to Lessees'' section of the Final NOS package and 
includes:

(1) Navigation Safety
(2) Ordnance Disposal Areas in the CPA
(3) Communications Towers
(4) Existing and Proposed Artificial Reefs/Rigs-to-Reefs
(5) Lightering Zones
(6) Indicated Hydrocarbons List
(7) Military Areas in the CPA
(8) BSEE Inspection and Enforcement of selected U.S. Coast Guard 
Regulations
(9) Deepwater Port Applications for Offshore Liquefied Natural Gas 
Facilities
(10) Ocean Dredged Material Disposal Sites
(11) Potential Sand Dredging Activities in the CPA
(12) Below Seabed Operations
(13) Industrial Waste Disposal Areas
(14) Air Quality Permits
(15) Notice of Arrival on the Outer Continental Shelf
(16) Gulf Islands National Seashore
(17) Bidder/Lessee Notice of Obligations Related to Criminal/Civil 
Charges and Offenses, Suspension, or Debarment; Disqualification Due to 
a Conviction under the Clean Air Act or the Clean Water Act
(18) Protected Species
(19) Proposed Expansion of the Flower Garden Banks National Marine 
Sanctuary

VI. Maps

    The maps pertaining to this lease sale may be found on the BOEM Web 
site at http://www.boem.gov/Sale-247/.
    The following maps also are included in the Final NOS package:
Lease Terms and Economic Conditions Map
    The lease terms, economic conditions, and the blocks to which these 
terms and conditions apply are shown on the map entitled, ``Final, 
Central Planning Area, Lease Sale 247, March 22, 2017, Lease Terms and 
Economic Conditions,'' which is included in the Final NOS package.
Stipulations and Deferred Blocks Map
    The blocks to which one or more lease stipulations may apply are 
shown on the map entitled, ``Final, Central Planning Area, Lease Sale 
247, March 22, 2017, Stipulations and Deferred Blocks Map,'' which is 
included in the Final NOS package.

VII. Bidding Instructions

    Bids may be submitted in person or by mail at the address below in 
the ``Mailed Bids'' section. Bidders submitting their bid(s) in person 
are advised to contact Ms. Cindy Thibodeaux at (504) 736-2809, or Mr. 
Greg Purvis at (504) 736-1729, to schedule a time and provide the names 
of the company representative(s) to submit the bid(s). Instructions on 
how

[[Page 95188]]

to submit a bid, secure payment of the advance bonus bid deposit (if 
applicable), and what information must be included with the bid are as 
follows:
Bid Form
    For each block bid upon, a separate sealed bid must be submitted in 
a sealed envelope (as described below) and include the following:
     Total amount of the bid in whole dollars only;
     Sale number;
     Sale date;
     Each bidder's exact name;
     Each bidder's proportionate interest, stated as a 
percentage, using a maximum of five decimal places (e.g., 33.33333%);
     Typed name and title, and signature of each bidder's 
authorized officer;
     Each bidder's qualification number;
     Map name and number or Official Protraction Diagram (OPD) 
name and number;
     Block number; and
     Statement acknowledging that the bidder(s) understand that 
this bid legally binds the bidder(s) to comply with all applicable 
regulations, including payment of one-fifth of the bonus bid amount on 
all apparent high bids.
    The information required on the bid(s) will be specified in the 
document ``Bid Form'' contained in the Final NOS package. A blank bid 
form is provided in the Final NOS package for convenience and may be 
copied and completed with the necessary information described above.
Bid Envelope
    Each bid must be submitted in a separate sealed envelope labeled as 
follows:
     ``Sealed Bid for Central Planning Area Oil and Gas Lease 
Sale 247, not to be opened until 9 a.m. Wednesday, March 22, 2017'';
     Map name and number or OPD name and number;
     Block number for block bid upon; and
     The exact name and qualification number of the submitting 
bidder only.
    The Final NOS package includes a sample bid envelope for reference.
Mailed Bids
    If bids are mailed, please address the envelope containing the 
sealed bid envelope(s) as follows: Attention: Leasing and Financial 
Responsibility Section, BOEM Gulf of Mexico Region, 1201 Elmwood Park 
Boulevard WS-266A, New Orleans, Louisiana 70123-2394.
    Contains Sealed Bids for CPA Oil and Gas Lease Sale 247, Please 
Deliver to Ms. Cindy Thibodeaux or Mr. Greg Purvis 2nd Floor, 
Immediately.

Please Note

    Bidders mailing bid(s) are advised to call Ms. Cindy Thibodeaux at 
(504) 736-2809, or Mr. Greg Purvis at (504) 736-1729, immediately after 
putting their bid(s) in the mail to ensure receipt of bids prior to the 
Bid Submission Deadline. If BOEM receives bids later than the Bid 
Submission Deadline, the BOEM Gulf of Mexico Regional Director (RD) 
will return those bids unopened to bidders. Please see ``Section XI. 
Delay of Sale'' regarding BOEM's discretion to extend the Bid 
Submission Deadline in the case of an unexpected event (e.g., flooding 
or travel restrictions) and how bidders can obtain more information on 
such extensions.
Advance Bonus Bid Deposit Guarantee
    Bidders that are not currently an OCS oil and gas lease record 
title holder or designated operator, or those that ever have defaulted 
on a one-fifth bonus bid deposit, by Electronic Funds Transfer (EFT) or 
otherwise, must guarantee (secure) the payment of the one-fifth bonus 
bid deposit prior to bid submission using one of the following four 
methods:
     Provide a third-party guarantee;
     Amend an area-wide development bond via bond rider;
     Provide a letter of credit; or
     Provide a lump sum payment in advance via EFT.
    For more information on EFT procedures, see Section X of this 
document entitled, ``The Lease Sale.''
Affirmative Action
    Prior to bidding, each bidder should file Equal Opportunity 
Affirmative Action Representation Form BOEM-2032 (October 2011, http://www.boem.gov/BOEM-2032/) and Equal Opportunity Compliance Report 
Certification Form BOEM-2033 (October 2011, http://www.boem.gov/BOEM-2033/) with the BOEM Gulf of Mexico Region Adjudication Section. This 
certification is required by 41 CFR part 60 and Executive Order No. 
11246, issued September 24, 1965, as amended by Executive Order No. 
11375, issued October 13, 1967, and by Executive Order 13672, issued 
July 21, 2014. Both forms must be on file for the bidder(s) in the GOM 
Region Adjudication Section prior to the execution of any lease 
contract.
Geophysical Data and Information Statement (GDIS)
    The GDIS is composed of three parts:
    (1) The ``Statement'' page includes the company representatives' 
information and lists of blocks bid on that used proprietary data and 
those blocks bid on that did not use proprietary data;
    (2) The ``Table'' listing the required data about each proprietary 
survey used (see below); and
    (3) The ``Maps'' being the live trace maps for each survey that are 
identified in the GDIS statement and table.
    Every bidder submitting a bid on a block in CPA Lease Sale 247, or 
participating as a joint bidder in such a bid, must submit at the time 
of bid submission all three parts of the GDIS. A bidder must submit the 
GDIS even if a joint bidder or bidders on a specific block also have 
submitted a GDIS. Any speculative data that has been reprocessed 
externally or ``in-house'' is considered proprietary due to the 
proprietary processing and is no longer considered to be speculative.
    The GDIS must be submitted in a separate and sealed envelope, and 
must identify all proprietary data; reprocessed speculative data, and/
or any Controlled Source Electromagnetic surveys, Amplitude Versus 
Offset (AVO), Gravity, or Magnetic data; or other information used as 
part of the decision to bid or participate in a bid on the block. The 
bidder and joint bidder must also include a live trace map (e.g., .pdf 
and ArcGIS shape file) for each proprietary survey that they identify 
in the GDIS illustrating the actual areal extent of the proprietary 
geophysical data in the survey (see the ``Example of Preferred Format'' 
in the Final NOS package for additional information). The shape file 
should not include cultural information; only the live trace map of the 
survey itself.
    The GDIS statement must include the name, phone number, and full 
address of a contact person and an alternate who are both knowledgeable 
about the information and data listed and who are available for 30 days 
after the sale date. The GDIS statement also must include a list of all 
blocks bid upon that did not use proprietary or reprocessed pre- or 
post-stack geophysical data and information as part of the decision to 
bid or to participate as a joint bidder in the bid. The GDIS statement 
must be submitted even if no proprietary geophysical data and 
information were used in bid preparation for the block.
    The GDIS table should have columns that clearly state:
     The sale number; the bidder company's name;
    The block area and block number bid on;
    The owner of the original data set (i.e., who initially acquired 
the data);

[[Page 95189]]

    The industry's original name of the survey (e.g., E Octopus); the 
BOEM permit number for the survey;
    Whether the data set is a fast track version;
    Whether the data is speculative or proprietary;
    The data type (e.g., 2-D, 3-D, or 4-D; pre-stack or post-stack; and 
time or depth); and
    The migration algorithm (e.g., Kirchhoff Migration, Wave Equation 
Migration, Reverse Migration, Reverse Time Migration) of the data and 
the areal extent of the bidder survey (i.e., number of line miles for 
2-D or number of blocks for 3-D).
    Also, provide the computer storage size, to the nearest gigabyte, 
of each seismic data and velocity volume used to evaluate the lease 
block in question. This information will be used in estimating the 
reproduction costs for each data set, if applicable. The availability 
of reimbursement of production costs will be determined consistent with 
30 CFR 551.13.
    Also indicate who reprocessed the data (e.g., external company name 
or ``in-house'') and when the date of final reprocessing was completed 
(month and year). If the data was sent to BOEM for bidding in a 
previous lease sale, list the date the data was processed (month and 
year) and indicate if AVO data was used in the evaluation. BOEM 
reserves the right to query about alternate data sets, to quality 
check, and to compare the listed and alternative data sets to determine 
which data set most closely meets the needs of the fair market value 
determination process. An example of the preferred format of the table 
may be found in the Final NOS package, and a blank digital version of 
the preferred table may be accessed on the CPA Sale 247 Web page at 
http://www.boem.gov/Sale-247.
    The GDIS maps are live trace maps (in .pdf and ArcGIS shape files) 
that should be submitted for each proprietary survey that is identified 
in the GDIS table. They should illustrate the actual areal extent of 
the proprietary geophysical data in the survey (see the ``Example of 
Preferred Format'' in the Final NOS package for additional 
information). As previously stated, the shape file should not include 
cultural information; only the live trace map of the survey itself. 
Pursuant to 30 CFR 551.12 and 30 CFR 556.501, as a condition of the 
sale, the BOEM Gulf of Mexico RD requests that all bidders and joint 
bidders submit the proprietary data identified on their GDIS within 30 
days after the lease sale (unless they are notified after the lease 
sale that BOEM has withdrawn the request). This request only pertains 
to proprietary data that is not commercially available. Commercially 
available data is not required to be submitted to BOEM, and 
reimbursement will not be provided if such data is submitted by a 
bidder. The BOEM Gulf of Mexico RD will notify bidders and joint 
bidders of any withdrawal of the request, for all or some of the 
proprietary data identified on the GDIS, within 15 days of the lease 
sale. Pursuant to 30 CFR part 551 and 30 CFR 556.501, as a condition of 
this sale, all bidders that are required to submit data must ensure 
that the data is received by BOEM no later than the 30th day following 
the lease sale, or the next business day if the submission deadline 
falls on a weekend or Federal holiday. The data must be submitted to 
BOEM at the following address:

Bureau of Ocean Energy Management, Resource Studies, GM 881A, 1201 
Elmwood Park Blvd., New Orleans, LA 70123-2304.

    BOEM recommends that bidders mark the submission's external 
envelope as ``Deliver Immediately to DASPU.'' BOEM also recommends that 
the data be submitted in an internal envelope, or otherwise marked, 
with the following designation: ``Proprietary Geophysical Data 
Submitted Pursuant to CPA Lease Sale 247 and used during  evaluation of Block .''
    In the event a person supplies any type of data to BOEM, that 
person must meet the following requirements to qualify for 
reimbursement:
    (1) The person must be registered with the System for Award 
Management (SAM), formerly known as the Central Contractor Registration 
(CCR). CCR usernames will not work in SAM. A new SAM User Account is 
needed to register or update an entity's records. The Web site for 
registering is https://www.sam.gov.
    (2) The persons must be enrolled in the Department of Treasury's 
Invoice Processing Platform (IPP) for electronic invoicing. The person 
must enroll in the IPP at https://www.ipp.gov/. Access then will be 
granted to use the IPP for submitting requests for payment. When a 
request for payment is submitted, it must include the assigned Purchase 
Order Number on the request.
    (3) The persons must have a current On-line Representations and 
Certifications Application at https://www.sam.gov.
Please Note
    The GDIS Information Table must be submitted digitally, preferably 
as an Excel spreadsheet, on a CD or DVD along with the seismic data 
map(s). If bidders have any questions, please contact Ms. Dee Smith at 
(504) 736-2706, or Mr. John Johnson at (504) 736-2455. Bidders should 
refer to Section X of this document, ``The Lease Sale: Acceptance, 
Rejection, or Return of Bids,'' regarding a bidder's failure to comply 
with the requirements of the Final NOS, including any failure to submit 
information as required in the Final NOS or Final NOS package.
Telephone Numbers/Addresses of Bidders
    BOEM requests that bidders provide this information in the 
suggested format prior to or at the time of bid submission. The 
suggested format will be included in the Final NOS package. The form 
must not be enclosed inside the sealed bid envelope.
Additional Documentation
    BOEM may require bidders to submit other documents in accordance 
with 30 CFR 556.107, 30 CFR 556.401, 30 CFR 556.501, and 30 CFR 
556.513.

VIII. Bidding Rules and Restrictions

Restricted Joint Bidders
    On November 4, 2016, BOEM published the most recent List of 
Restricted Joint Bidders in the Federal Register at 81 FR 76962. 
Potential bidders are advised to refer to the Federal Register, prior 
to bidding, for the most current List of Restricted Joint Bidders in 
place at the time of the lease sale. Please refer to the joint bidding 
provisions at 30 CFR 556.511-515.
Authorized Signatures
    All signatories executing documents on behalf of bidder(s) must 
execute the same in conformance with the BOEM qualification records. 
Bidders are advised that BOEM considers the signed bid to be a legally 
binding obligation on the part of the bidder(s) to comply with all 
applicable regulations, including payment of one-fifth of the bonus bid 
on all high bids. A statement to this effect is included on each bid 
form (see the document ``Bid Form'' to be contained in the Final NOS 
package).
Unlawful Combination or Intimidation
    BOEM warns bidders against violation of 18 U.S.C. 1860, prohibiting 
unlawful combination or intimidation of bidders.
Bid Withdrawal
    Bids may be withdrawn only by written request delivered to BOEM 
prior to the Bid Submission Deadline. The withdrawal request must be on 
company letterhead and must contain the bidder's name, its BOEM

[[Page 95190]]

qualification number, the map name/number, and the block number(s) of 
the bid(s) to be withdrawn. The withdrawal request must be executed in 
conformance with the BOEM qualification records. Signatories must be 
authorized to bind their respective legal business entity (e.g., a 
corporation, partnership, or LLC) and documentation must be on file 
with BOEM setting forth this authority to act on the business entity's 
behalf for purposes of bidding and lease execution under OCSLA (e.g., 
business charter or articles, incumbency certificate, or power of 
attorney). The name and title of the authorized signatory must be typed 
under the signature block on the withdrawal request. The BOEM Gulf of 
Mexico RD, or the RD's designee, will indicate their approval by 
signing and dating the withdrawal request.
Bid Rounding
    Minimum bonus bid calculations, including rounding, for all blocks 
will be shown in the document ``List of Blocks Available for Leasing'' 
included in this Final NOS package. The bonus bid amount must be stated 
in whole dollars. If the acreage of a block contains a decimal figure, 
then prior to calculating the minimum bonus bid, BOEM will round up to 
the next whole acre. The appropriate minimum rate per acre will then be 
applied to the whole (rounded up) acreage. If this calculation results 
in a fractional dollar amount, the minimum bonus bid will be rounded up 
to the next whole dollar amount. The bonus bid amount must be greater 
than or equal to the minimum bonus bid in whole dollars.

IX. Forms

    The Final NOS package includes instructions, samples, and/or the 
preferred format for the following items. BOEM strongly encourages 
bidders to use these formats. Should bidders use another format, they 
are responsible for including all the information specified for each 
item in the Final NOS package.

(1) Bid Form
(2) Sample Completed Bid
(3) Sample Bid Envelope
(4) Sample Bid Mailing Envelope
(5) Telephone Numbers/Addresses of Bidders Form
(6) GDIS Form
(7) GDIS Envelope Form

X. The Lease Sale

Bid Opening and Reading
    Sealed bids received in response to the Final NOS will be opened at 
the place, date, and hour specified in the Final NOS. The venue will 
not be open to the public. Instead, the bid opening will be available 
for the public to view on BOEM's Web site at www.boem.gov via live-
streaming. The opening of the bids is for the sole purpose of publicly 
announcing and recording the bids received; no bids will be accepted or 
rejected at that time.
Bonus Bid Deposit for Apparent High Bids
    Each bidder submitting an apparent high bid must submit a bonus bid 
deposit to the Office of Natural Resources Revenue (ONRR) equal to one-
fifth of the bonus bid amount for each such bid. A copy of the 
notification of the high bidder's one-fifth bonus bid amount may be 
obtained on the BOEM Web site at http://www.boem.gov/Sale-247 under the 
heading ``Notification of EFT \1/5\ Bonus Liability'' after 1:00 p.m. 
on the day of the sale. All payments must be deposited electronically 
into an interest-bearing account in the U.S. Treasury by 11:00 a.m. 
Eastern Time the day following the bid reading (no exceptions). Account 
information is provided in the ``Instructions for Making Electronic 
Funds Transfer Bonus Payments'' found on the BOEM Web site identified 
above.
    BOEM requires bidders to use EFT procedures for payment of one-
fifth bonus bid deposits for CPA Lease Sale 247 following the detailed 
instructions contained on the ONRR Payment Information Web page at 
http://www.onrr.gov/FM/PayInfo.htm. Acceptance of a deposit does not 
constitute, and will not be construed as acceptance of, any bid on 
behalf of the United States.
Withdrawal of Blocks
    The United States reserves the right to withdraw any block from 
this lease sale prior to issuance of a written acceptance of a bid for 
the block.
Acceptance, Rejection, or Return of Bids
    The United States reserves the right to reject any and all bids. No 
bid will be accepted, and no lease for any block will be awarded to any 
bidder, unless:
    (1) The bidder has complied with all requirements of the Final NOS, 
including those set forth in the documents contained in the Final NOS 
package, and applicable regulations;
    (2) The bid is the highest valid bid; and
    (3) The amount of the bid has been determined to be adequate by the 
authorized officer. Any bid submitted that does not conform to the 
requirements of the Final NOS and Final NOS package, OCSLA, or other 
applicable statute or regulation will be rejected and returned to the 
bidder. The U.S. Department of Justice and the Federal Trade Commission 
will review the results of the lease sale for antitrust issues prior to 
the acceptance of bids and issuance of leases.
Bid Adequacy Review Procedures for CPA Lease Sale 247
    To ensure that the U.S. Government receives a fair return for the 
conveyance of leases from this sale, high bids will be evaluated in 
accordance with BOEM's bid adequacy procedures, which are available at 
http://www.boem.gov/Oil-and-Gas-Energy-Program/Leasing/Regional-Leasing/Gulf-of-Mexico-Region/Bid-Adequacy-Procedures.aspx.
Lease Award
    BOEM requires each bidder awarded a lease to:
    (1) Execute all copies of the lease (Form BOEM-2005 (October 2011), 
as amended);
    (2) Pay by EFT the balance of the bonus bid amount and the first 
year's rental for each lease issued in accordance with the requirements 
of 30 CFR 218.155 and 556.520(a); and
    (3) Satisfy the bonding requirements of 30 CFR part 556, subpart I, 
as amended. ONRR requests that only one transaction be used for payment 
of the balance of the bonus bid amount and the first year's rental.

XI. Delay of Sale

    The BOEM Gulf of Mexico RD has the discretion to change any date, 
time, and/or location specified in the Final NOS package in case of an 
event that the BOEM Gulf of Mexico RD deems may interfere with the 
carrying out of a fair and orderly lease sale process. Such events 
could include, but are not limited to, natural disasters (e.g., 
earthquakes, hurricanes, and floods), wars, riots, acts of terrorism, 
fires, strikes, civil disorder, or other events of a similar nature. In 
case of such events, bidders should call (504) 736-0557, or access the 
BOEM Web site at http://www.boem.gov, for information regarding any 
changes.

    Dated: December 20, 2016.
Abigail Ross Hopper,
Director, Bureau of Ocean Energy Management.
[FR Doc. 2016-31218 Filed 12-23-16; 8:45 am]
 BILLING CODE 4310-MR-P


Current View
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
ActionFinal notice of sale.
DatesPublic Bid reading for CPA Sale 247 will begin at 9:00 a.m. on Wednesday, March 22, 2017, at 1201 Elmwood Park Boulevard, New Orleans, Louisiana. The venue will not be open to the general public, media, or industry. Instead, the bid opening will be available for public viewing on BOEM's Web site at www.boem.gov via live-streaming video beginning at 9:00 a.m. on the date of the sale. The use of live-streaming video will provide greater access to a wider national and international audience while ensuring the security of BOEM staff. BOEM will also post the results on its Web site after bid opening and reading are completed. All times referred to in this document are Central Standard Time, unless otherwise specified.
FR Citation81 FR 95185 

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