83 FR 32897 - Gulf of Mexico Outer Continental Shelf Region-Wide Oil and Gas Lease Sale 251

DEPARTMENT OF THE INTERIOR
Bureau of Ocean Energy Management

Federal Register Volume 83, Issue 136 (July 16, 2018)

On Wednesday, August 15, 2018, the Bureau of Ocean Energy Management (BOEM) will open and publicly announce bids received for blocks offered in the Gulf of Mexico (GOM) Outer Continental Shelf (OCS) Region-wide Oil and Gas Lease Sale 251 (GOM Region-wide Sale 251), in accordance with the provisions of the Outer Continental Shelf Lands Act (OCSLA), as amended, and the implementing regulations issued pursuant thereto. The GOM Region-wide Sale 251 Final Notice of Sale (NOS) package contains information essential to potential bidders.

[Federal Register Volume 83, Number 136 (Monday, July 16, 2018)]
[Notices]
[Pages 32897-32903]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-15180]


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DEPARTMENT OF THE INTERIOR

Bureau of Ocean Energy Management

[Docket No. BOEM-2018-0035]


Gulf of Mexico Outer Continental Shelf Region-Wide Oil and Gas 
Lease Sale 251

AGENCY: Bureau of Ocean Energy Management, Interior.

ACTION: Final notice of sale.

-----------------------------------------------------------------------

SUMMARY: On Wednesday, August 15, 2018, the Bureau of Ocean Energy 
Management (BOEM) will open and publicly announce bids received for 
blocks offered in the Gulf of Mexico (GOM) Outer Continental Shelf 
(OCS) Region-wide Oil and Gas Lease Sale 251 (GOM Region-wide Sale 
251), in accordance with the provisions of the Outer Continental Shelf 
Lands Act (OCSLA), as amended, and the implementing regulations issued 
pursuant thereto. The GOM Region-wide Sale 251 Final Notice of Sale 
(NOS) package contains information essential to potential bidders.

DATES: BOEM will hold GOM Region-wide Sale 251 at 9:00 a.m. on 
Wednesday, August 15, 2018. All times referred to in this document are 
Central Standard Time, unless otherwise specified.
    Bid submission deadline: BOEM accepts sealed bids between 8:00 a.m. 
and 4:00 p.m. on normal working days prior to the sale with the 
exception of Tuesday, August 14th, the day before the sale. BOEM must 
receive all bids for GOM Region-wide Sale 251 by 10:00 a.m. on Tuesday, 
August 14, 2018. For more information on bid submission, see Section 
VII, ``Bidding Instructions,'' of this document.

ADDRESSES: Bids will be accepted prior to the bid receipt deadline at 
1201 Elmwood Park Boulevard, New Orleans, Louisiana. Public bid reading 
for GOM Region-wide Sale 251 will be held at 1201 Elmwood Park 
Boulevard, New Orleans, Louisiana, but the venue will not be open to 
the general public, media, or industry during bid opening or reading. 
Bid opening will be available for public viewing on BOEM's website at 
www.boem.gov via live-streaming video beginning at 9:00 a.m. on the 
date of the sale. BOEM will also post the results on its website after 
bid opening and reading are completed. Interested parties may download 
the Final NOS package from BOEM's website at http://www.boem.gov/Sale-251/. Copies of the sale maps may be obtained by contacting the BOEM 
GOM Region at: Gulf of Mexico Region Public Information Office, Bureau 
of Ocean Energy Management, 1201 Elmwood Park Boulevard, New Orleans, 
Louisiana 70123-2394, (504) 736-2519 or (800) 200-GULF.
    For more information on bid submission, see Section VII, ``Bidding 
Instructions,'' of this document.

FOR FURTHER INFORMATION CONTACT: Ann Glazner, Deputy Regional 
Supervisor, Office of Leasing and Plans, 504-736-

[[Page 32898]]

2607, ann.glazner@boem.gov or Wright Jay Frank, Acting Chief, Leasing 
Policy and Management Division, 703-787-1325, wright.frank@boem.gov.

Table of Contents

    This Final NOS includes the following sections:

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

I. Lease Sale Area

    Blocks Offered for Leasing: BOEM will offer for bid in this lease 
sale all of the available unleased acreage in the GOM, except those 
blocks listed in ``Blocks Not Offered for Leasing'' below.
    Blocks Not Offered for Leasing: The following whole, segregated, 
and partial blocks are not offered for lease in this sale. The BOEM 
Official Protraction Diagrams (OPDs) and Supplemental Official Block 
Diagrams are available online at https://www.boem.gov/Maps-and-GIS-Data/.
    Whole and partial blocks that lie within the current boundaries of 
the Flower Garden Banks National Marine Sanctuary (in the East and West 
Flower Garden Banks and the Stetson Bank), identified in the following 
list:

High Island, East Addition, South Extension (Leasing Map TX7C)
    Whole Block: A-398
    Partial Blocks: A-366, A-367, A-374, A-375, A-383, A-384, A-385,
A-388, A-389, A-397, A-399, A-401
High Island, South Addition (Leasing Map TX7B)
    Partial Blocks: A-502, A-513
Garden Banks (OPD NG15-02)
    Partial Blocks: 134, 135

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

Lund South (OPD NG 16-07)
    Whole Blocks: 128, 129, 169 through 173, 208 through 217, 248 
through 261, 293 through 305, and 349
Henderson (OPD NG 16-05)
    Whole Blocks: 466, 508 through 510, 551 through 554, 594 through 
599, 637 through 643, 679 through 687, 722 through 731, 764 through 
775, 807 through 819, 849 through 862, 891 through 905, 933 through 
949, and 975 through 992
    Partial Blocks: 467, 511, 555, 556, 600, 644, 688, 732, 776, 
777, 820, 821, 863, 864, 906, 907, 950, 993, and 994
Florida Plain (OPD NG 16-08)
    Whole Blocks: 5 through 24, 46 through 67, 89 through 110, 133 
through 154, 177 through 197, 221 through 240, 265 through 283, 309 
through 327, and 363 through 370

    All whole and portions of blocks deferred by the Gulf of Mexico 
Energy Security Act of 2006, Public Law 109-432:

Pensacola (OPD NH 16-05)
    Whole Blocks: 751 through 754, 793 through 798, 837 through 842, 
881 through 886, 925 through 930, and 969 through 975
Destin Dome (OPD NH 16-08)
    Whole Blocks: 1 through 7, 45 through 51, 89 through 96, 133 
through 140, 177 through 184, 221 through 228, 265 through 273, 309 
through 317, 353 through 361, 397 through 405, 441 through 450, 485 
through 494, 529 through 538, 573 through 582, 617 through 627, 661 
through 671, 705 through 715, 749 through 759, 793 through 804, 837 
through 848, 881 through 892, 925 through 936, and 969 through 981
DeSoto Canyon (OPD NH 16-11)
    Whole Blocks: 1 through 15, 45 through 59, and 92 through 102
    Partial Blocks: 16, 60, 61, 89 through 91, 103 through 105, and 
135 through 147
Henderson (OPD NG 16-05)
    Partial Blocks: 114, 158, 202, 246, 290, 334, 335, 378, 379, 
422, and 423

    Depth restricted, segregated block portion(s):

    Block 299, Main Pass Area, South and East Addition (Louisiana 
Leasing Map LA10A), containing 1,125 acres, from the surface of the 
earth down to a subsea depth of 1,900 feet with respect to the 
following described portions:
    SW\1/4\NE\1/4\; NW\1/4\SE\1/4\NE\1/4\; W\1/2\NE\1/4\SE\1/4\NE\1/
4\; S\1/2\S\1/2\NW\1/4\NE\1/4\; S\1/2\SW\1/4\NE\1/4\NE\1/4\; S\1/
2\SW\1/4\SE\1/4\NE\1/4\NE\1/4\; N\1/2\SW\1/4\SE\1/4\ NE\1/4\; SW\1/
4\SW\1/4\SE\1/4\NE\1/4\; NW\1/4\SE\1/4\ SE\1/4\ NE\1/4\; N\1/2\NW\1/
4\SW\1/4\SE\1/4\SE\1/4\NE\1/4\; N\1/2\SE\1/4\SW\1/4\SE\1/4\NE\1/4\; 
N\1/2\S\1/2\SE\1/4\SW\1/4\SE\1/4\NE\1/4\; S\1/2\NE\1/4\NW\1/4\; S\1/
2\S\1/2\N\1/2\NE\1/4\NW\1/4\; N\1/2\SE\1/4\NW\1/4\; S\1/2\SE\1/
4\NW\1/4\NW\1/4\; NE\1/4\SE\1/4\NW\1/4\NW\1/4\; E\1/2\NE\1/4\SW\1/
4\NW\1/4\; N\1/2\SE\1/4\SE\1/4\NW\1/4\; NE\1/4\SW\1/4\SE\1/4\NW\1/
4\; N\1/2\NW\1/4\SW\1/4\SE\1/4\NW\1/4\; SE\1/4\SE\1/4\SE\1/4\NW\1/
4\; E\1/2\SW\1/4\SE\1/4\SE\1/4\NW\1/4\; N\1/2\NW\1/4\NE\1/4\SW\1/
4\NW\1/4\; N\1/2\S\1/2\NW\1/4\NE\1/4\SW\1/4\NW\1/4\; N\1/2\N\1/
2\NE\1/4\NE\1/4\NE\1/4\SW\1/4\; N\1/2\N\1/2\N\1/2\NW\1/4\NW\1/
4\SE\1/4\; N\1/2\N\1/2\NW\1/4\NE\1/4\NW\1/4\SE\1/4.\

    The following blocks, whose lease status is currently under appeal:

Keathley Canyon (Leasing Map NG15-05) Blocks 290, 291, and 292
Keathley Canyon (Leasing Map NG15-05) Blocks 246 and 247
Keathley Canyon (Leasing Map NG15-05) Blocks 335 and 336
Vermilion Area (Leasing Map LA3) Partial Block 179

II. Statutes and Regulations

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

III. Lease Terms and Economic Conditions

Lease Terms

OCS Lease Form
    BOEM will use Form BOEM-2005 (February 2017) to convey leases 
resulting from this sale. This lease form may be viewed on BOEM's 
website at http://www.boem.gov/BOEM-2005. The lease form will be 
amended to 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.
Primary Term
    Primary Terms are summarized in the following table:

[[Page 32899]]



------------------------------------------------------------------------
       Water depth  (meters)                    Primary term
------------------------------------------------------------------------
0 to <400.........................  The primary term is five years; the
                                     lessee may earn an additional three
                                     years (i.e., for an eight-year
                                     extended primary term) if a well is
                                     spudded targeting hydrocarbons
                                     below 25,000 feet True Vertical
                                     Depth Subsea (TVDSS) during the
                                     first five years of the lease.
400 to <800.......................  The primary term is five years; the
                                     lessee will earn an additional
                                     three years (i.e., for an eight-
                                     year extended primary term) if a
                                     well is spudded during the first
                                     five years of the lease.
800 to <1,600.....................  The primary term is seven years; the
                                     lessee will earn an additional
                                     three years (i.e., for a ten-year
                                     extended primary term) if a well is
                                     spudded during the first seven
                                     years of the lease.
1,600+............................  Ten years.
------------------------------------------------------------------------

    (1) The primary term for a lease in water depths less than 400 
meters issued as a result of this sale is five years. If the lessee 
spuds a well targeting hydrocarbons below 25,000 feet TVDSS within the 
first five years of the lease, then the lessee may earn an additional 
three years, resulting in an eight-year primary term. The lessee will 
earn the eight-year primary term when the well is drilled to a target 
below 25,000 feet TVDSS, or the lessee may earn the eight-year primary 
term in cases where the well targets, but does not reach, a depth below 
25,000 feet TVDSS 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 eight-year extended primary term, the lessee 
is required to submit to the BOEM GOM Regional Supervisor for Leasing 
and Plans, as soon as practicable, but in no instance 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 feet 
TVDSS 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 TVDSS. This letter must 
request confirmation that the lessee earned the eight-year primary 
term. The BOEM GOM 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 primary term and update BOEM 
records accordingly. The extended primary term is not effective unless 
and until the lessee receives confirmation from BOEM.
    A lessee that has earned the eight-year primary term by spudding a 
well with a hydrocarbon target below 25,000 feet TVDSS during the 
standard five-year primary term 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 primary term for a lease in water depths ranging from 400 
to less than 800 meters issued as a result of this sale is five years. 
If the lessee spuds a well within the five-year primary term of the 
lease, the lessee will earn an additional three years, resulting in an 
eight-year primary term.
    In order to earn the eight-year primary term, the lessee is 
required to submit to the BOEM GOM Regional Supervisor for Leasing and 
Plans, as soon as practicable, but in no instance 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 eight-year 
extended primary term. Within 30 days of receipt of the request, the 
BOEM GOM Regional Supervisor for Leasing and Plans will provide written 
confirmation of whether the lessee has earned the extended primary term 
and update BOEM records accordingly. The extended primary term is not 
effective unless and until the lessee receives confirmation from BOEM.
    (3) The standard primary term for a lease in water depths ranging 
from 800 to less than 1,600 meters issued as a result of this sale is 
seven years. If the lessee spuds a well within the standard seven-year 
primary term, the lessee will earn an additional three years, resulting 
in a ten-year extended primary term.
    In order to earn the ten-year primary term, the lessee is required 
to submit to the BOEM GOM Regional Supervisor for Leasing and Plans, as 
soon as practicable, but in no instance 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 ten-year primary 
term. Within 30 days of receipt of the request, the BOEM GOM Regional 
Supervisor for Leasing and Plans will provide written confirmation of 
whether the lessee has earned the extended primary term and update BOEM 
records accordingly. The extended primary term is not effective unless 
and until the lessee receives confirmation from BOEM.
    (4) The primary term for a lease in water depths 1,600 meters or 
greater issued as a result of this sale will be ten years.

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

                                    Rental Rates per Acre or Fraction Thereof
----------------------------------------------------------------------------------------------------------------
             Water depth (meters)                 Years 1-5                     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.
----------------------------------------------------------------------------------------------------------------


[[Page 32900]]

Escalating Rental Rates for Leases With an Eight-Year Primary Term in 
Water Depths Less Than 400 Meters
    Any lessee with a lease in less than 400 meters water depth who 
earns an eight-year primary term 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 
TVDSS 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
Royalty Rate
     12.5 percent for leases situated in water depths less than 
200 meters; and,
     18.75 percent for leases situated in water depths of 200 
meters and deeper.
Minimum Royalty Rate
     $7.00 per acre or fraction thereof per year for blocks in 
water depths less than 200 meters; and
     $11.00 per acre or fraction thereof per year for blocks in 
water depths 200 meters and deeper.
Royalty Suspension Provisions
    The issuance of leases with Royalty Suspension Volumes (RSVs) or 
other forms of royalty relief is authorized under existing BOEM 
regulations at 30 CFR part 560. The specific details relating to 
eligibility and implementation of the various royalty relief programs, 
including those involving the use of RSVs, are codified in Bureau of 
Safety and Environmental Enforcement (BSEE) regulations at 30 CFR part 
203.
    In this sale, the only royalty relief program being offered that 
involves the provision of RSVs relates to the drilling of ultra-deep 
wells in water depths of less than 400 meters, as described in the 
following section.
Royalty Suspension Volumes on Gas Production From Ultra-Deep Wells
    Leases issued as a result of this sale may be eligible for RSV 
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 (42 U.S.C. 13201 et seq.). Under this program, wells 
on leases in less than 400 meters water depth and completed to a 
drilling depth of 20,000 feet TVDSS or deeper receive a RSV of 35 
billion cubic feet on the production of natural gas. This RSV incentive 
is subject to applicable price thresholds set forth in the regulations 
at 30 CFR part 203.

IV. Lease Stipulations

    Consistent with the Record of Decision for the Final Programmatic 
Environmental Impact Statement for the 2017-2022 Five Year OCS Oil and 
Gas Leasing Program, Stipulation No. 5 (Topographic Features) and 
Stipulation No. 8 (Live Bottom) will apply to every lease sale in the 
GOM Program Area. One or more of the remaining eight stipulations 
listed below may be applied to leases issued as a result of this sale. 
The blocks to which particular stipulations will apply is identified on 
the map ``Final, Gulf of Mexico Region-wide Oil and Gas Lease Sale 251, 
August 15, 2018, Stipulations and Deferred Blocks'' included in the 
Final NOS package. The detailed text of the following stipulations is 
contained in the ``Lease Stipulations'' section of the Final NOS 
package.

(1) Military Areas
(2) Evacuation
(3) Coordination
(4) Protected Species
(5) Topographic Features
(6) United Nations Convention on the Law of the Sea Royalty Payment
(7) Agreement between the United States of America and the United 
Mexican States Concerning Transboundary Hydrocarbon Reservoirs in the 
Gulf of Mexico
(8) Live Bottom
(9) Blocks South of Baldwin County, Alabama
(10) Restrictions due to Rights-of-Use and Easement for Floating 
Production Facilities

V. Information to Lessees

    Information to Lessees (ITLs) provides detailed information on 
certain issues pertaining to specific oil and gas lease sales. The 
detailed text of the ITLs for this sale is contained in the 
``Information to Lessees'' section of the Final NOS package and covers 
the following topics:

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

VI. Maps

    The maps pertaining to this lease sale may be viewed on BOEM's 
website at http://www.boem.gov/Sale-251/. The following maps also are 
included in the Final NOS package:

Lease Terms and Economic Conditions Map

    The lease terms and economic conditions associated with leases of 
certain blocks are shown on the map entitled, ``Final, Gulf of Mexico 
Region-wide Oil and Gas Lease Sale 251, August 15, 2018, Lease Terms 
and Economic Conditions.''

Stipulations and Deferred Blocks Map

    The lease stipulations and the blocks to which they apply are shown 
on the map entitled, ``Final, Gulf of Mexico Region-wide Oil and Gas 
Lease Sale 251, August 15, 2018, Stipulations and Deferred Blocks 
Map.''

VII. Bidding Instructions

    Bids may be submitted in person or by mail at the address below in 
the ``Mailed Bids'' section. Bidders submitting their bid(s) in person 
are advised to email boemgomrleasesales@boem.gov to provide the names 
of the company representative(s) that will submit the bid(s). 
Instructions on how to submit a bid, secure payment of the advance 
bonus bid deposit (if applicable), and what information must be 
included with the bid are as follows:

Bid Form

    For each block bid upon, a separate sealed bid must be submitted in 
a sealed envelope (as described below) and include the following:
     Total amount of the bid in whole dollars only;
     Sale number;
     Sale date;

[[Page 32901]]

     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 those requiring it to post a deposit in the 
amount of one-fifth of the bonus bid amount for any tract bid upon and 
make payment of the balance of the bonus bid and first year's rental 
upon BOEM's acceptance of high bids.
    The information required to accompany the bid(s) is specified in 
the document ``Bid Form'' that is available in the Final NOS package. A 
blank bid form is provided in the Final NOS package for convenience and 
may be copied and completed with the necessary information described 
above.

Bid Envelope

    Each bid must be submitted in a separate sealed envelope labeled as 
follows:
     ``Sealed Bid for GOM Region-wide Sale 251, not to be 
opened until 9 a.m. Wednesday, August 15, 2018;''
     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 OCS Region, 1201 Elmwood 
Park Boulevard GM 266A, New Orleans, Louisiana 70123-2394. Contains 
Sealed Bids for GOM Region-wide Sale 251. Please Deliver to Mr. Greg 
Purvis, 2nd Floor, Immediately.
    Please Note: Bidders mailing bid(s) are advised to inform BOEM by 
email to boemgomrleasesales@boem.gov immediately after putting their 
bid(s) in the mail. This is to ensure receipt of bids prior to the Bid 
Submission Deadline. If BOEM receives bids later than the Bid 
Submission Deadline, the BOEM GOM Regional Director (RD) will return 
those bids unopened to bidders. Please see ``Section XI. Delay of 
Sale'' regarding BOEM's discretion to extend the Bid Submission 
Deadline in the case of an unexpected event (e.g., flooding or travel 
restrictions) and how bidders can obtain more information on such 
extensions.

Advance Bonus Bid Deposit Guarantee

    Bidders that are not currently an OCS oil and gas lease record 
title holder or designated operator, or those that ever have defaulted 
on a one-fifth bonus bid deposit, by Electronic Funds Transfer (EFT) or 
otherwise, must guarantee (secure) the payment of the one-fifth bonus 
bid deposit prior to bid submission using one of the following four 
methods:
     Provide a third-party guarantee;
     Amend an area-wide development bond via bond rider;
     Provide a letter of credit; or
     Provide a lump sum payment in advance via EFT.
    For more information on EFT procedures, see Section X of this 
document entitled, ``The Lease Sale.'' Please allow sufficient time for 
your EFT payment to process so that it can be confirmed prior to your 
bid submission.

Affirmative Action

    Prior to bidding, each bidder should file the Equal Opportunity 
Affirmative Action Representation Form BOEM-2032 (October 2011, https://www.boem.gov/BOEM-2032/) and Equal Opportunity Compliance Report 
Certification Form BOEM-2033 (October 2011, https://www.boem.gov/BOEM-2033/) with the BOEM GOM Adjudication Section, Attention: BOEM Gulf of 
Mexico OCS Region, 1201 Elmwood Park Boulevard, GM 276A, New Orleans, 
Louisiana 70123-2394. This certification is required by 41 CFR part 60 
and Executive Order No. 11246, issued September 24, 1965, as amended by 
Executive Order No. 11375, issued October 13, 1967, and by Executive 
Order 13672, issued July 21, 2014. Both forms must be on file for the 
bidder(s) in the GOM Adjudication Section prior to the execution of any 
lease contract.

Geophysical Data and Information Statement (GDIS)

    The GDIS is composed of three parts:
    (1) The ``Statement'' page includes the company representatives' 
information and lists of blocks bid on that used proprietary data and 
those blocks bid on that did not use proprietary data;
    (2) The ``Table'' listing the required data about each proprietary 
survey used (see below); and
    (3) The ``Maps'' being the live trace maps for each proprietary 
survey that is identified in the GDIS statement and table.
    Every bidder, including joint bidders, must provide all applicable 
parts of the GDIS at the time of bid submission. If the data you are 
using has been reprocessed in any way, externally or ``in-house,'' it 
is considered proprietary data and is no longer considered speculative. 
All three parts of the GDIS must be submitted for proprietary data.
    The GDIS must be submitted in a separate and sealed envelope, and 
must identify all proprietary data, which includes reprocessed 
speculative data, and/or any Controlled Source Electromagnetic surveys, 
Amplitude Versus Offset (AVO), Gravity, or Magnetic data; or other 
information used as part of the decision to bid or participate in a bid 
on the block. The bidder and joint bidder must also include a live 
trace map (e.g., .pdf and ArcGIS shape file) for each proprietary 
survey that they identify in the GDIS illustrating the actual areal 
extent of the proprietary geophysical data in the survey (see the 
``Example of Preferred Format'' that is included the Final NOS package 
for additional information). The shape file must not include cultural 
information; only the live trace map of the survey itself.
    The GDIS statement must include the name, phone number, and full 
address of a contact person and an alternate who are both knowledgeable 
about the geophysical information and data listed and who are available 
for 30 days after the sale date. The GDIS statement also must include a 
list of all blocks bid upon that did not use proprietary or reprocessed 
pre- or post-stack geophysical data and information as part of the 
decision to bid or to participate as a joint bidder in the bid. 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 Joint Bidder Company (if applicable);
     The block area and block number bid on;
     The owner of the original data set (i.e., who initially 
acquired the data);
     The industry's original name of the survey (e.g., E 
Octopus);
     The BOEM permit number for the survey;
     Whether the data set is a fast track version;

[[Page 32902]]

     Whether the data is speculative or proprietary;
     The data type (e.g., 2-D, 3-D, or 4-D; pre-stack or post-
stack; and time or depth, etc.);
     The Migration algorithm (e.g., Kirchhoff Migration, Wave 
Equation Migration, Reverse Migration, Reverse Time Migration) of the 
data and areal extent of bidder survey (i.e., number of line miles for 
2-D or number of blocks for 3-D);
     The Live Proprietary Survey Coverage (2-D miles 3-D 
Blocks);
     The computer storage size, to the nearest gigabyte, of 
each seismic data and velocity volume used to evaluate the lease block;
     The name of the party that reprocessed the data and the 
date the final reprocessing was completed (month and year);
     If data was previously sent to BOEM, list the sale number 
and date of the sale for which it was used; and
     Whether proprietary or Speculative AVO/AVA (PROP/SPEC) was 
used.
    The computer storage size 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.
    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. For an example of the preferred 
format of the table, see ``Example of Preferred Format'' that is 
included in the Final NOS package. A blank digital version of the 
preferred table can be accessed on the GOM Region-wide Sale 251 web 
page at http://www.boem.gov/Sale-251.
    The GDIS maps are live trace maps (e.g., .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'' that is included in the Final NOS 
package for additional information. As previously stated, the shape 
file must not include cultural information; only the live trace map of 
the survey itself.
    Pursuant to 30 CFR 551.12 and 30 CFR 556.501, as a condition of the 
sale, the BOEM Gulf of Mexico requires 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 requirement 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 Regional Director 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 GOM Region-wide Sale 251 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 website 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 Online Representations and 
Certifications Application (ORCA) at https://www.sam.gov.
    Please Note: The GDIS Information Table must be submitted 
digitally, preferably as an Excel spreadsheet, on a CD, DVD, or any USB 
external drive (formatted for Windows), along with the seismic data 
map(s). If bidders have any questions, please contact Ms. Dee Smith at 
(504) 736-2706, or Mr. John Johnson at (504) 736-2455.
    Bidders should refer to Section X of this document, ``The Lease 
Sale: Acceptance, Rejection, or Return of Bids,'' regarding a bidder's 
failure to comply with the requirements of the Final NOS, including any 
failure to submit information as required in the Final NOS or Final NOS 
package.

Telephone Numbers/Addresses of Bidders

    BOEM requests that bidders provide this information in the 
suggested format prior to, or at the time of, bid submission. The 
suggested format is included in the Final NOS package. The form must 
not be enclosed inside the sealed bid envelope.

Additional Documentation

    BOEM may require bidders to submit other documents in accordance 
with 30 CFR 556.107, 30 CFR 556.401, 30 CFR 556.501, and 30 CFR 
556.513.

VIII. Bidding Rules and Restrictions

Restricted Joint Bidders

    On May 15, 2018, BOEM published the most recent List of Restricted 
Joint Bidders in the Federal Register at 83 FR 22513. Potential bidders 
are advised to refer to the Federal Register, prior to bidding, for the 
most current List of Restricted Joint Bidders in place at the time of 
the lease sale. Please refer to the joint bidding provisions at 30 CFR 
556.511-515.

Authorized Signatures

    All signatories executing documents on behalf of bidder(s) must 
execute the same in conformance with the BOEM qualification records. 
Bidders are advised that BOEM considers the signed bid to be a legally 
binding obligation on the part of the bidder(s) to comply with all 
applicable regulations, including that requiring payment of one-fifth 
of the bonus bid on all high bids. A statement to this effect is 
included on each bid form (see the document ``Bid Form'' that is 
included in the Final NOS package).

Unlawful Combination or Intimidation

    BOEM warns bidders against violation of 18 U.S.C. 1860, prohibiting 
unlawful combination or intimidation of bidders.

Bid Withdrawal

    Bids may be withdrawn only by written request delivered to BOEM 
prior to the Bid Submission Deadline. The withdrawal request must be on 
company letterhead and must contain the bidder's name, its BOEM

[[Page 32903]]

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. The name and title of 
the authorized signatory must be typed under the signature block on the 
withdrawal request. The BOEM Gulf of Mexico RD, or the RD's designee, 
will indicate their approval by signing and dating the withdrawal 
request.

Bid Rounding

    Minimum bonus bid calculations, including rounding, for all blocks 
are shown in the document ``List of Blocks Available for Leasing'' 
included in the Final NOS package. The bonus bid amount must be stated 
in whole dollars. If the acreage of a block contains a decimal figure, 
then prior to calculating the minimum bonus bid, BOEM rounded up to the 
next whole acre. The appropriate minimum rate per acre was then applied 
to the whole (rounded up) acreage. The bonus bid amount must be greater 
than or equal to the minimum bonus bid 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 the recommended formats. If bidders use another format, 
they are responsible for including all the information specified for 
each item in the Final NOS package.

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

X. The Lease Sale

Bid Opening and Reading

    Sealed bids received in response to the Final NOS will be opened at 
the place, date, and hour specified under the DATES and ADDRESSES 
sections of the Final NOS. The venue will not be open to the public. 
Instead, the bid opening will be available for the public to view on 
BOEM's website at www.boem.gov via live-streaming. The opening of the 
bids is for the sole purpose of publicly announcing and recording the 
bids received; no bids will be accepted or rejected at that time.

Bonus Bid Deposit for Apparent High Bids

    Each bidder submitting an apparent high bid must submit a bonus bid 
deposit to 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 website at http://www.boem.gov/Sale-251 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 (10 a.m. Central Time) the day following the bid reading (no 
exceptions). Account information is provided in the ``Instructions for 
Making Electronic Funds Transfer Bonus Payments'' found on the BOEM 
website identified above.
    BOEM requires bidders to use EFT procedures for payment of one-
fifth bonus bid deposits for GOM Region-wide Sale 251 following the 
detailed instructions contained on the ONRR Payment Information web 
page at http://www.onrr.gov/ReportPay/Payments.htm. Acceptance of a 
deposit does not constitute, and will not be construed as, acceptance 
of any bid on behalf of the United States.

Withdrawal of Blocks

    The United States reserves the right to withdraw any block from 
this lease sale prior to issuance of a written acceptance of a bid for 
the block.

Acceptance, Rejection, or Return of Bids

    The United States reserves the right to reject any and all bids. No 
bid will be accepted, and no lease for any block will be awarded to any 
bidder, unless:
    (1) The bidder has complied with all 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 GOM Region-Wide Sale 251

    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 (February 
2017), as amended);
    (2) Pay by EFT the balance of the bonus bid amount and the first 
year's rental for each lease issued in accordance with the requirements 
of 30 CFR 218.155 and 556.520(a); and
    (3) Provide to BOEM the bonding required by 30 CFR part 556, 
subpart I.
    ONRR requests that bidders use only one transaction to pay the 
balance of the bonus bid amount and the first year's rental. When ONRR 
receives such payment, the bidder awarded the lease may not request a 
refund of the balance bonus bid amount or first year's rental payment.

XI. Delay of Sale

    The BOEM Gulf of Mexico RD has the discretion to change any date, 
time, and/or location specified in the Final NOS package in the case of 
an event that the BOEM Gulf of Mexico RD deems may interfere with 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 website at http://www.boem.gov, for information regarding any 
changes.

    Dated: July 11, 2018.
Walter D. Cruickshank,
Acting Director, Bureau of Ocean Energy Management.
[FR Doc. 2018-15180 Filed 7-13-18; 8:45 am]
 BILLING CODE 4310-MR-P

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Document Created: 2018-07-14 00:53:24
Document Modified: 2018-07-14 00:53:24