83_FR_53292 83 FR 53089 - Atlantic Wind Lease Sale 4A (ATLW-4A) for Commercial Leasing for Wind Power on the Outer Continental Shelf Offshore Massachusetts-Final Sale Notice

83 FR 53089 - Atlantic Wind Lease Sale 4A (ATLW-4A) for Commercial Leasing for Wind Power on the Outer Continental Shelf Offshore Massachusetts-Final Sale Notice

DEPARTMENT OF THE INTERIOR
Bureau of Ocean Energy Management

Federal Register Volume 83, Issue 203 (October 19, 2018)

Page Range53089-53096
FR Document2018-22878

This document is the Final Sale Notice (FSN) for the sale of commercial wind energy leases on the Outer Continental Shelf (OCS) offshore Massachusetts. The Bureau of Ocean Energy Management (BOEM) will offer three leases: Lease OCS-A 0520, Lease OCS-A 0521, and Lease OCS-A 0522 (Lease Areas), which are located within the former Leases OCS-A 0502 and Lease OCS-A 0503 that were unsold during the Atlantic Wind Lease Sale-4 (ATLW-4) on January 29, 2015. BOEM will use an ascending bidding auction format. The FSN contains information pertaining to the areas available for leasing, certain provisions and conditions of the leases, auction details, the lease form, criteria for evaluating competing bids, award procedures, appeal procedures, and lease execution. The issuance of the lease(s) resulting from this sale would not constitute an approval of project-specific plans to develop offshore wind energy. Such plans, if submitted by the lessee, would be subject to subsequent environmental, technical, and public reviews prior to a decision on whether the proposed development should be authorized.

Federal Register, Volume 83 Issue 203 (Friday, October 19, 2018)
[Federal Register Volume 83, Number 203 (Friday, October 19, 2018)]
[Notices]
[Pages 53089-53096]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-22878]


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DEPARTMENT OF THE INTERIOR

Bureau of Ocean Energy Management

[Docket No. BOEM-2018-0043]


Atlantic Wind Lease Sale 4A (ATLW-4A) for Commercial Leasing for 
Wind Power on the Outer Continental Shelf Offshore Massachusetts--Final 
Sale Notice

AGENCY: Bureau of Ocean Energy Management, Interior.

ACTION: Final Sale Notice for Commercial Leasing for Wind Power on the 
Outer Continental Shelf Offshore Massachusetts.

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SUMMARY: This document is the Final Sale Notice (FSN) for the sale of 
commercial wind energy leases on the Outer Continental Shelf (OCS) 
offshore Massachusetts. The Bureau of Ocean Energy Management (BOEM) 
will offer three leases: Lease OCS-A 0520, Lease OCS-A 0521, and Lease 
OCS-A 0522 (Lease Areas), which are located within the former Leases 
OCS-A 0502 and Lease OCS-A 0503 that were unsold during the Atlantic 
Wind Lease Sale-4 (ATLW-4) on January 29, 2015. BOEM will use an 
ascending bidding auction format. The FSN contains information 
pertaining to the areas available for leasing, certain provisions and 
conditions of the leases, auction details, the lease form, criteria for 
evaluating competing bids, award procedures, appeal procedures, and 
lease execution. The issuance of the lease(s) resulting from this sale 
would not constitute an approval of project-specific plans to develop 
offshore wind energy. Such plans, if submitted by the lessee, would be 
subject to subsequent environmental, technical, and public reviews 
prior to a decision on whether the proposed development should be 
authorized.

DATES: BOEM will hold a mock auction for the bidders starting at 9:00 
a.m. Eastern Standard Time (EST) on December 11, 2018. The monetary 
auction will be held online and will begin at 9:00 a.m. EST on December 
13, 2018. Additional details are provided in the section entitled 
``Deadlines and Milestones for Bidders.''

FOR FURTHER INFORMATION CONTACT: Jeff Browning, BOEM, Office of 
Renewable Energy Programs, 45600 Woodland Road, VAM-OREP, Sterling, 
Virginia 20166, (703) 787-1577 or [email protected].

SUPPLEMENTARY INFORMATION:
    Authority: This FSN is published pursuant to subsection 8(p) of the 
OCS Lands Act (43 U.S.C. 1337(p)), as amended by section 388 of the 
Energy Policy Act of 2005, and the implementing regulations at 30 CFR 
part 585, including sections 211 and 216.
    Background: BOEM proposed this lease sale on April 11, 2018, in the 
Atlantic Wind Lease Sale 4A (ATLW-4A) Commercial Leasing for Wind Power 
on the Outer Continental Shelf Offshore Massachusetts--Proposed Sale 
Notice (PSN), which was published in the Federal Register (83 FR 
15618). A 60-day comment period followed. BOEM received 21 comment 
submissions in response to the PSN, which are available on 
regulations.gov (Docket ID: BOEM-2018-0016) at: https://www.regulations.gov/docket?D=BOEM-2018-0016. BOEM has posted its 
responses to comments submitted during the PSN comment period. The 
document, entitled Response to Comments, can be found through BOEM's 
website at: https://www.boem.gov/Commercial-Wind-Leasing/Massachusetts/Lease-Sale-4A/.
    In response to the PSN, BOEM received new qualification materials 
from thirteen entities that BOEM has determined to be qualified to 
participate in this sale, and four affirmations of interest from 
entities that were qualified to participate in the first Massachusetts 
Lease Sale (ATLW-4) in January of 2015. In addition, the two entities 
that submitted unsolicited lease requests for the Lease Areas have also 
qualified, resulting in a total of 19 qualified entities.
    BOEM made several changes from the description of the lease sale 
format and leases that were published in the PSN. The primary changes 
are: The lease sale no longer contains a non-monetary bidding credit, 
and will instead use a straight ascending bid format; the two proposed 
lease areas have been re-divided into three Lease Areas; each lease now 
contains conditions related to vessel transit corridors and setbacks 
between adjacent leases; and the operations term of each lease has been 
extended from 25 years to 33 years.
    List of Eligible Bidders: BOEM has determined that the following 
entities are legally, technically, and financially

[[Page 53090]]

qualified to hold a commercial wind lease offshore Massachusetts 
pursuant to 30 CFR 585.106 and 107, and therefore may participate in 
this lease sale as bidders subject to meeting the requirements outlined 
in this notice:

------------------------------------------------------------------------
                      Company name                          Company No.
------------------------------------------------------------------------
Avangrid Renewables, LLC................................           15019
Camellia Wind Energy LLC................................           15077
CI III Blue Cloud Wind Energy II LLC....................           15079
Cobra Industrial Services, Inc..........................           15073
Deepwater Wind New England, LLC.........................           15012
East Wind LLC...........................................           15076
EC&R Development, LLC...................................           15080
EDF Renewables Development, Inc.........................           15027
EDPR Offshore North America LLC.........................           15074
Enbridge Holdings (Green Energy) L.L.C..................           15065
Innogy US Renewable Projects LLC........................           15061
Mayflower Wind Energy LLC...............................           15082
Northeast Wind Energy LLC...............................           15078
Northland Power America Inc.............................           15068
PNE WIND USA, Inc.......................................           15056
Equinor Wind US LLC.....................................           15058
Vineyard Wind LLC.......................................           15010
Wind Future LLC.........................................           15067
wpd offshore Alpha LLC..................................           15060
------------------------------------------------------------------------

    Affiliated Entities: On the Bidder's Financial Form (BFF) discussed 
below, eligible bidders must list any eligible bidders with whom they 
are affiliated. Affiliated eligible bidders are not permitted to 
compete against each other in the lease sale, and must decide by the 
start of the auction which eligible bidder (if any) will participate. 
If two or more affiliated bidders participate in the auction, BOEM may 
disqualify some or all such bidders from the auction.
    BOEM considers two entities to be affiliated if (a) one entity (or 
its parent or subsidiary) has or retains any right, title, or interest 
in the other entity (or its parent or subsidiary), including any 
ability to control or direct actions with respect to such entity, 
either directly or indirectly, individually or through any other party; 
or (b) the entities are both direct or indirect subsidiaries of the 
same parent company.
    Deadlines and Milestones for Bidders: This section describes the 
major deadlines and milestones in the auction process from publication 
of this FSN to execution of the lease pursuant to this sale. These are 
organized into various stages: The FSN Waiting Period; Conducting the 
Auction; and From the Auction to Lease Execution.

 FSN Waiting Period

     Bidder's Financial Form: Each bidder must submit a BFF to 
BOEM in order to participate in the auction. BOEM must receive each 
bidder's BFF no later than November 2, 2018. BOEM will consider 
extensions to this deadline only if BOEM determines that the failure to 
timely submit a BFF was caused by events beyond the bidder's control. 
The BFF can be downloaded at: https://www.boem.gov/Commercial-Wind-Leasing/Massachusetts/Lease-Sale-4A/. Once BOEM has processed a 
bidder's BFF, the bidder may log into pay.gov and submit a bid deposit. 
For purposes of this auction, BOEM will not consider any BFFs submitted 
by bidders for previous lease sales. BOEM will only accept an 
originally executed paper copy of the BFF. The BFF must be executed by 
an authorized representative listed 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 Deposit: Each bidder must provide a bid deposit of 
$450,000 no later than November 16, 2018 in order to participate in the 
mock auction and the monetary auction. 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. 
Further information about bid deposits can be found in the ``Bid 
Deposit'' section of this notice.

 Conduct the Auction

     Mock Auction: BOEM will hold a Mock Auction on December 
11, 2018 beginning at 9:00 a.m. EST. The Mock Auction will be held 
online. BOEM will contact each bidder that has timely filed a BFF and 
bid deposit and provide instructions for participation. Only bidders 
that have timely submitted BFFs and bid deposits will be permitted to 
participate in the Mock Auction.
     Monetary Auction: On December 13, 2018, BOEM, through its 
contractor, will hold the auction. The first round of the auction will 
start at 9:00 a.m. EST. The auction will proceed electronically 
according to a schedule to be distributed by the BOEM Auction Manager 
at the time of the auction. BOEM anticipates that the auction will last 
one business day, but it may continue on consecutive business days, as 
necessary, until the auction ends in accordance with the procedures 
described in the ``Auction Procedures'' section of this notice.
     Announce Provisional Winners: BOEM will announce the 
provisional winners of the lease sale after the auction ends.

 From the Auction to Lease Execution

     Refund Non-Winners: Once the provisional winners have been 
announced, BOEM will provide the non-winners a written explanation of 
why they did not win and return their bid deposits.
     Department of Justice (DOJ) Review: DOJ will have 30 days 
in which to conduct an antitrust review of the auction, pursuant to 43 
U.S.C. 1337(c).
     Delivery of the Lease: BOEM will send three lease copies 
to each winner, with instructions on how to execute the lease. The 
first year's rent is due 45 calendar days after the winners receive the 
lease copies for execution.
     Return the Lease: Within 10 business days of receiving the 
lease copies, the auction winners must post financial assurance, pay 
any outstanding balance of their bonus bids (i.e., winning monetary bid 
minus applicable bid deposit), and sign and return the three executed 
lease copies. The winners may request extensions to the 10-day 
deadline, and BOEM may grant such extensions if BOEM determines the 
delay to be caused by events beyond the requesting winner's control, 
pursuant to 30 CFR 585.224(e).
     Execution of Lease: Once BOEM has received the signed 
lease copies and verified that all other required materials have been 
received, BOEM will make a final determination regarding its issuance 
of the leases and will execute the leases, if appropriate.
    Area Offered for Leasing: The area available for sale will be 
auctioned as three leases: Lease OCS-A 0520, Lease OCS-A 0521, and 
Lease OCS-A 0522. Lease OCS-A 0520 consists of 128,811 acres, Lease 
OCS-A 0521 consists of 127,388 acres, and Lease OCS-A 0522 consists of 
132,370 acres. These Lease Areas lie within the same area that BOEM 
announced on April 11, 2018 and published in the PSN. In response to 
comments received on the PSN, however, BOEM re-divided the available 
area into three leases.
    Map of the Area Offered for Leasing: A map of the Lease Areas, and 
GIS spatial files X, Y (eastings, northings) UTM Zone 18, NAD83 Datum, 
and geographic X, Y (longitude, latitude), NAD83 Datum can be found on 
BOEM's website at: https://www.boem.gov/Commercial-Wind-Leasing/Massachusetts/Lease-Sale-4A/.
    A large scale map of the Lease Areas, 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

[[Page 53091]]

Road, VAM-OREP, Sterling, Virginia 20166, Phone: (703) 787-1300, Fax: 
(703) 787-1708.
    Environmental Reviews and Lease Stipulations: The PSN explains that 
the existing June 2014 Revised Massachusetts Environmental Assessment 
(EA) and associated consultations adequately assess the reasonably 
foreseeable environmental effects of the issuance of commercial leases 
and associated site characterization activity in the Massachusetts Wind 
Energy Area (WEA), which includes the areas that BOEM will lease 
pursuant to this FSN. Although this FSN represents a change in the 
number and size of the leases to be sold compared to the PSN, the scope 
of activities anticipated as a result of the lease sale still falls 
within the range analyzed in the EA because, among other things, those 
leases still fall within the boundaries of former Leases OCS-A 0502 and 
OCS-A 0503.
    BOEM will conduct additional environmental reviews upon receipt of 
a lessee's proposed project-specific plans, such as a Site Assessment 
Plan (SAP) or Construction and Operations Plan (COP). As conditions of 
plan approval, Lessees may be required to contribute to regional 
environmental monitoring programs that are presently being developed 
jointly between state and Federal authorities and stakeholder groups. 
For Lease OCS-A 0522, BOEM may require terms and conditions of project 
approval aimed at mitigating, minimizing, or avoiding impacts to sea 
ducks. During the development of the Massachusetts WEA, BOEM took steps 
to protect sea ducks (among other species) by removing lease blocks. 
Recent information suggests that high concentrations of sea ducks may 
forage in the easternmost lease blocks (6251, 6252, & 6302) during the 
winter months.
    BOEM is also adding additional lease stipulations that were not 
contained in the leases offered in ATLW-4.
    Fisheries Communication Plan: In order to facilitate interactions 
between lessees and commercial fisheries and maintain consistency with 
its most recent lease sale, BOEM is once again including a lease 
stipulation to ensure the Lessee coordinates and communicates with 
commercial and recreational fishermen. BOEM has determined that this 
stipulation is prudent for the leases in this sale, given the 
importance of fishing to the economies of Southern New England states. 
The lease stipulation states as follows:
    Fisheries Communications Plan (FCP) and Fisheries Liaison. The 
Lessee must develop a publicly available FCP that describes the 
strategies that the Lessee intends to use for communicating with 
fisheries stakeholders prior to and during activities in support of the 
submission of a plan. The FCP must include the contact information for 
an individual retained by the Lessee as its primary point of contact 
with fisheries stakeholders (i.e., Fisheries Liaison). If the Lessee 
does not develop a project website, the FCP must be made available to 
the Lessor and the public upon request.
    Best Available Technologies for Meteorological Buoys: BOEM has 
included a lease stipulation aimed at requiring the Lessee to use best 
available technologies in designs for meteorological buoys and other 
similar floating devices to ensure entanglement risks to marine 
protected species are minimized to discountable levels. Although this 
is a new lease stipulation, it is intended to provide clarification for 
existing buoy requirements contained in the 2013 Biological Opinion 
issued to BOEM by NOAA for Commercial Wind Lease Issuance and Site 
Assessment Activities on the Atlantic Outer Continental Shelf in 
Massachusetts, Rhode Island, New York and New Jersey Wind Energy and 
discussed in the 2014 EA. The lease stipulation states as follows:
    The Lessee must ensure that any structures or devices attached to 
the seafloor for continuous periods greater than 24 hours use the best 
available mooring systems for minimizing the risk of entanglement or 
entrainment of marine mammals, manta rays and sea turtles, while still 
ensuring the safety and integrity of the structure or device. The best 
available mooring system may include, but is not limited to, vertical 
and float lines (chains, cables, or coated rope systems), swivels, 
shackles, and anchor designs.
    All mooring lines and ancillary attachment lines must use one or 
more of the following measures to reduce entanglement risk: shortest 
practicable line length, rubber sleeves, weak-links, chains, cables or 
similar equipment types that prevent lines from looping or wrapping 
around animals, or entrapping protected species.
    Any equipment must be attached by a line within a rubber sleeve for 
rigidity. The length of the line must be as short as necessary to meet 
its intended purpose. If an entangled live or dead marine protected 
species is reported, the Lessee must provide any assistance to 
authorized stranding response personnel as requested by BOEM or NMFS.
    Vessel Transit Corridors: Fishermen have requested that offshore 
wind facilities be designed in a manner that, among other things, 
provides for safe transit through the facility to fishing grounds. 
Current BOEM leaseholders offshore Rhode Island and Massachusetts 
(Leases OCS-A 0486, OCS-A 0487, OCS-A 0500, and OCS-A 0501) are 
presently working with stakeholders, and the United States Coast Guard 
to identify those transit routes and establish corridors in their plan 
submittals. BOEM has determined that such corridors are only effective 
if they continue, as appropriate, through the Lease Areas. As such, 
BOEM has added the following lease term:
    In its COP project design, Lessee must extend any BOEM-approved 
vessel transit corridors in adjacent lease areas, unless BOEM 
determines that such corridors are not necessary or can be modified. 
Lessee may not construct any surface structures in such vessel transit 
corridors.
    Surface Structure Setback: In response to comments received on the 
PSN, BOEM will require lessees to incorporate a setback of 750 meters 
(m) from any shared lease boundary into future COP submittals, unless 
both adjacent lessees agree to a decreased setback. The 750 m setback 
for each lease results in a minimum distance of 1,500 m between turbine 
locations of adjacent leases. BOEM has added a term setting forth this 
obligation in Addendum A of Leases OCS-A 0520, OCS-A 0521, and OCS-A 
0522 which reads as follows:
    In its COP project design, the Lessee must incorporate a 750 m 
setback from any shared lease boundary within which the Lessee may not 
construct any surface structures, unless the Lessee and the adjacent 
lessee agree to a smaller setback, the Lessee submits such agreement to 
BOEM, and BOEM approves it.
    Withdrawal of Blocks: BOEM reserves the right to withdraw all or 
portions of the Lease Areas prior to executing the leases with the 
winning bidders.
    Lease Terms and Conditions: BOEM has included terms, conditions, 
and stipulations for the OCS commercial wind leases to be offered 
through this sale. After the leases are issued, BOEM reserves the right 
to require compliance with additional terms and conditions associated 
with approval of a SAP or COP. The leases are available on BOEM's 
website at: http://www.boem.gov/Commercial-Wind-Leasing/Massachusetts/Lease-Sale-4A/. The leases include the following seven attachments:
     Addendum ``A'' (Description of Leased Area and Lease 
Activities);

[[Page 53092]]

     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); and
     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. Addenda ``D'' and ``E'' will be completed 
at the time of COP approval or approval with modifications.
    The most recent version of BOEM's renewable energy commercial lease 
form (BOEM-0008) is available on BOEM's website at: http://www.boem.gov/BOEM-OCS-Operation-Forms/.
    Plans: Pursuant to 30 CFR 585.601, a leaseholder wishing to submit 
a SAP must do so within 12 months of lease issuance. If the lessee 
intends to continue to hold the lease into its operations term, the 
lessee must submit a COP at least 6 months before the end of the site 
assessment term.
    Financial Terms and Conditions: This section provides an overview 
of the annual payments required of the lessee that will be fully 
described in the lease, and the financial assurance requirements that 
will be associated with the lease.
    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 calendar 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. 
Instead of geographically dividing the leased area into acreage that is 
``generating'' and ``non-generating,'' however, 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 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 a 128,811 acre lease (the size of OCS-A 0520), the rent payment 
will be $386,433 per year if no portion of the lease area is authorized 
for commercial operations. If 500 megawatts (MW) of a project's 
nameplate capacity is operating (or authorized for operation), and the 
approved COP specifies a maximum project size of 800 MW, the rent 
payment will be $144,912. This payment is based on the 300 MW of 
nameplate capacity BOEM has not yet authorized for commercial 
operations. For the above example, this would be calculated as follows: 
300MW/800MW x ($3/acre x 128,811 acres) = $144,912.
    If the lessee submits an application for relinquishment of a 
portion of its leased 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 the 
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 must also 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 pursuant to 30 CFR 585.506, BOEM applies an 
operating fee rate 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 
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 an 800 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] TN19OC18.000

    Operating Fee Rate: The operating fee rate is the share of imputed 
wholesale market value of the projected annual electric power 
production due to the Office of Natural Resources Revenue as an annual 
operating fee. For the Lease Areas, BOEM will set the fee rate at 0.02 
(i.e., 2%) for the entire life of commercial operations.
    Nameplate Capacity: Nameplate capacity is the maximum rated 
electric output, expressed in MW, which 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 100 turbines in its COP, and each is rated by the 
manufacturer at 8 MW, the nameplate capacity of the wind facility is 
800 MW.
    Capacity Factor: The capacity factor relates to the amount of 
energy delivered to the grid during a period of time compared to the 
amount of energy the wind facility would have produced at full capacity 
during that same period of time. This factor is represented as a 
decimal between zero and one. There are several reasons why the amount 
of power delivered is less than the theoretical 100% of capacity. For a 
wind facility, the capacity factor is mostly

[[Page 53093]]

determined by the availability of wind. Transmission line loss and down 
time for maintenance or other purposes also affect the capacity factor.
    The capacity factor for the year in which the Commercial Operation 
Date occurs, and for the first six full years of commercial operations 
on the lease, is set to 0.4 (i.e., 40%). At the end of the sixth year, 
the capacity factor may be adjusted to reflect the performance over the 
previous five years based upon the actual metered electricity 
generation at the delivery point to the electrical grid. Similar 
adjustments to the capacity factor may be made 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% 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 Northeast--Massachusetts Hub 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 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.
    Financial Assurance: Within 10 business days after receiving the 
lease copies and pursuant to 30 CFR 585.515-516, the provisional 
winners of the leases must provide an initial lease-specific bond or 
other approved means of meeting the lessor's initial financial 
assurance requirements, in the amount of $100,000. The provisional 
winners 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 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 leases, which BOEM has made available with this notice on its 
website at: https://www.boem.gov/Commercial-Wind-Leasing/Massachusetts/Lease-Sale-4A/.
    Bidder's Financial Form: Each bidder must fill out the BFF 
referenced in this FSN. BOEM has also made a copy of the form available 
with this notice on its website at: https://www.boem.gov/Commercial-Wind-Leasing/Massachusetts/Lease-Sale-4A/. 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).
    BOEM will not consider BFFs submitted by bidders for previous lease 
sales to satisfy the requirements of this auction. BOEM will also only 
consider BFFs submitted after the deadline (November 2, 2018) 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 listed in the qualifications package on file 
with BOEM as authorized to bind the company.
    Bid Deposit: A bid deposit is an advance cash payment submitted to 
BOEM in order to participate in the auction. After creating an account 
in pay.gov (if necessary), bidders may use the Bid Deposit Form on the 
pay.gov website to leave a deposit. Each bidder must submit a bid 
deposit of $450,000 no later than November 16, 2018. Any bidder who 
fails to submit the bid deposit by this deadline may be disqualified 
from participating in the auction.
    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, BOEM will refund the balance of 
the bid deposit to the bidder. BOEM will refund bid deposits to non-
winners once BOEM has announced the provisional winner.
    If BOEM offers a lease pursuant to a provisionally winning bid, and 
that bidder fails to timely return the signed lease form, establish 
financial assurance, and/or pay the balance of its bid, BOEM will 
retain the bidder's $450,000 bid deposit. In such a circumstance, BOEM 
reserves the right to determine which bid would have won in the absence 
of the bid previously-determined to be the winning bid, and to offer a 
lease pursuant to this next highest bid.
    Minimum Bid: The minimum bid is the lowest bid BOEM will accept as 
a winning bid, and it is where BOEM will start the bidding in the 
auction. BOEM has established a minimum bid of $2.00 per acre for this 
lease sale.

Auction Procedures

Ascending Bidding With Cash Bid Variable

    As authorized under 30 CFR 585.220(a)(2) and 585.221(a)(1), BOEM 
will use an ascending bidding auction with cash as the bid variable for 
this lease sale. BOEM will start the auction using the minimum bid 
prices for each lease area, and increase those prices incrementally 
until no more than one active bidder per lease area remains in the 
auction.

The Auction

    Using an online bidding system to host the auction, BOEM will start 
the bidding for Lease OCS-A 0520 at $257,622, Lease OCS-A 0521 at 
$254,776, and for Lease OCS-A 0522 at $264,740. Each bidder may bid on 
only one lease area at a time, and can win at most one of the three 
Lease Areas offered in this sale.
    The auction will be conducted in a series of rounds. At the start 
of each round, BOEM will state an asking price for each lease area. If 
a bidder is willing to meet the asking price for one of the lease 
areas, it will indicate its intent by submitting a bid equal to the 
asking price. A bid at the full asking price is referred to as a ``live 
bid.'' To participate in the next round of the auction, a bidder must 
submit a live bid for one of the lease areas in each previous round. As 
long as there are two or more live bids for at least one lease area, 
the auction moves to the next round. BOEM will raise the asking price 
for each lease area that has received two or more live bids in the 
previous round. Asking price increments will be determined based on 
several factors, including (but not necessarily limited to) 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 appropriate.
    Generally, a bidder that submitted a live bid in the previous round 
is free to bid on any of the three areas in the current round. However, 
there is an exception. A bidder may switch its live bid from one lease 
area to another in the current round only if its bid from the previous 
round was contested--e.g., a bidder cannot switch from OCS-A 0520 to 
OCS-A 0521 unless there was at least one other live bid for OCS-A 0520 
in

[[Page 53094]]

the last round. If the bid was not contested in the previous round, the 
bidder cannot switch lease areas, and its previous round bid will be 
carried forward to the next round. If another bidder places a live bid 
on OCS-A 0520 later in the auction, BOEM will stop automatically 
carrying forward the previously uncontested bid on that lease area. The 
bidder that placed the previously carried forward bid is then free to 
bid on that lease area or either of the other two lease areas in the 
next round at the new asking prices. A bidder remains eligible to 
participate in the auction if it submitted a live bid in the prior 
round, or had a previously uncontested live bid carried forward by BOEM 
to the current round. If a bidder decides to stop bidding further when 
its bid is contested, there are still circumstances in which the bidder 
could win (e.g., if the winning bid is disqualified at the award stage 
of the auction). If this happens, the bidder may be bound by its bid 
and thus obligated to pay the full bid amount. Bidders may be bound by 
any of their bids until the auction results are finalized.
    Between rounds, BOEM will disclose to all bidders that submitted 
bids in the first round of the auction: (1) The number of live bids 
(including bids carried forward) for each lease area in the previous 
round of the auction (i.e., the level of demand); and (2) the asking 
price for each lease area in the upcoming round of the auction.
    A bidder is only eligible to continue bidding in the auction if it 
has submitted a live bid (or had a bid carried forward) in the previous 
round. In any round after the first round, however, a bidder may submit 
an ``exit bid'' (also known as an ``intra-round bid''). An exit bid is 
a bid that is higher than the previous round's asking price, submitted 
for the same lease area as the bidder's contested live bid in the 
previous round, but less than the current round's asking price. An exit 
bid is not a live bid, and it represents the final bid that a bidder 
may submit in the auction. During the auction, the exit bid can only be 
seen by BOEM, and not by other bidders.
    A lease area with only exit bids in a given round will not have its 
asking price raised in the next round, since BOEM only raises asking 
prices when a lease area receives multiple live bids. As soon as all 
three Lease Areas have one or zero live bids (including bids carried 
forward), the auction is over, regardless of the number of exit bids on 
each area.
    After the bidding ends, BOEM will determine the provisionally 
winning bids for each lease area. The provisionally winning bid for a 
lease area will be the highest bid (live bid or exit bid) received for 
that lease area, except that no bidder may win more than one lease 
area. The award procedures described here could result in a tie, for 
example if two bidders submit identical high exit bids. In such cases, 
BOEM would resolve the tie by randomized means subject to the 
constraint of no bidder winning more than one lease area. After the 
last round of the auction, there will be a listing of all scenarios 
that would generate the same maximum revenue. This can include multiple 
ties. Each of those scenarios is given an equal probability of winning. 
The selection of the winning scenario is determined by pseudorandom 
numbers.
    Provisional winners may be disqualified if they are subsequently 
found to have violated auction rules or BOEM regulations, or otherwise 
engaged in conduct detrimental to the integrity of the competitive 
auction. If a bidder submits a bid that BOEM determines to be a 
provisionally winning bid, the bidder will be expected to sign the 
applicable lease documents, establish financial assurance, and submit 
the cash balance of its bid (i.e., winning bid amount minus the bid 
deposit) within 10 business days of receiving the lease copies, 
pursuant to 30 CFR 585.224. 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 comply with applicable 
regulations or the terms of the FSN. In that case, the bidder would 
forfeit its bid deposit. BOEM may consider failure of a bidder to 
timely pay the full amount due to be an indication that the bidder may 
no longer be financially qualified to participate in other lease sales 
under 30 CFR 585.106 and 585.107.

Additional Information Regarding the Auction Format

Bidder Authentication

    For the online auction, BOEM will require two-factor 
authentication. After BOEM has processed the bid deposits, the auction 
contractor sends several bidder authentication packages to the bidders. 
One package will contain digital authentication tokens needed to allow 
access to the auction website. As a general practice, tokens are mailed 
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 auction, BOEM will de-activate that 
bidder's tokens and login information, and the bidder will be asked to 
return its tokens. Under certain circumstances (for example, if the 
authorized bidders are geographically dispersed and the ability for the 
Primary Point of Contact to timely distribute the materials is in 
question), BOEM may send all materials directly to the authorized 
bidders instead of sending to the Primary Point of Contact.
    The second package contains login credentials for authorized 
bidders. The login credentials are mailed 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 Bidder Manual for the 
auction system, the Auction System Technical Supplement (ASTS) and the 
Alternative Bidding Form, all of which are available on BOEM's website 
at: https://www.boem.gov/Commercial-Wind-Leasing/Massachusetts/Lease-Sale-4A/. The login information, along with the tokens, will be tested 
during the Mock Auction.

Timing of Auction

    The auction will begin at 9:00 a.m. EST on December 13, 2018. 
Bidders may log in as early as 8:30 a.m. on that day. We recommend that 
bidders log in earlier than 9:00 a.m. on that day to ensure that any 
login issues are resolved prior to the start of the auction. Once 
bidders have logged in, they should review the auction schedule, which 
lists the anticipated start times, end times, and recess times of each 
round in the auction. Each round is structured as follows:
     Round bidding begins;
     Bidders enter their bids;
     Round bidding ends and the Recess begins;
     During the Recess, previous Round results and next round 
asking prices are posted;
     Bidders review the previous Round results and prepare 
their next Round bids; and
     Next Round bidding begins.
    The first round will last about 30 minutes, though subsequent 
rounds may be shorter. Recesses are anticipated to last approximately 
10 minutes. The description of the auction schedule included with this 
FSN is tentative. Bidders should consult the auction schedule on the 
bidding website during the auction for updated times. Bidding will 
continue until about 6:00 p.m. EST

[[Page 53095]]

each day. BOEM anticipates that the auction will last one business day, 
but may be extended for additional business days as necessary until the 
auction is complete.
    BOEM and the auction contractors will use the auction platform 
messaging service to keep bidders informed on issues of interest during 
the auction. For example, BOEM may change the schedule at any time, 
including during the auction. If BOEM changes the schedule during an 
auction, it will use the messaging feature to notify bidders that a 
revision has been made, and will direct bidders to the relevant page. 
BOEM will also use the messaging system for 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 shows how much time remains in the 
round. Bidders have until the scheduled time to place bids. Bidders 
should do so according to the procedures described in this notice, and 
the ASTS. Information about the round results will only be made 
available after the round has closed, so there is no strategic 
advantage to placing bids early or late in the round.
    The ASTS will elaborate on the auction procedures described in this 
FSN. In the event of an inconsistency between the ASTS and the FSN, the 
FSN is controlling.

Prohibition on Communications Between Bidders During Auction

    During the auction, bidders are prohibited from communicating with 
each other regarding their participation in the auction. Also during 
the auction, bidders are prohibited from communicating to the general 
public regarding any aspect of their participation or lack thereof in 
the auction, including, but not limited to, through social media, 
updated websites, or press releases.

Alternate Bidding Procedures

    Alternate Bidding Procedures enable a bidder who is having 
difficulty accessing the internet to submit its bid via fax using an 
Alternate Bidding Form available on BOEM's website at: https://www.boem.gov/Commercial-Wind-Leasing/Massachusetts/Lease-Sale-4A/.
    In order to be authorized to use an Alternate 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 bidder. The bidder 
must explain the reasons for which he/she is forced to place a bid 
using the Alternate Bidding Procedures. BOEM may, in its sole 
discretion, permit or refuse to accept a request for the placement of a 
bid using the Alternate Bidding Procedures.
    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 auction, the FSN, or applicable 
regulations and statutes.
    Anti-Competitive Review: Bidding behavior in this sale is subject 
to Federal antitrust laws. Accordingly, following the auction, but 
before the acceptance of bids and the issuance of leases, 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 behavior in connection with its 
participation in the competitive bidding process, BOEM may reject its 
provisionally winning bid. Compliance with BOEM's auction procedures 
and regulations is not an absolute defense to violations of antitrust 
laws.
    Anti-competitive behavior determinations are fact-specific. 
However, such behavior may manifest itself in several different ways, 
including, but not limited to:
     An express or tacit agreement among bidders not to bid in 
an auction, or to bid a particular price;
     An agreement among bidders not to bid;
     An agreement among bidders not to bid against each other; 
or
     Other agreements among bidders that have the potential to 
affect the final auction price.
    BOEM will decline to award a lease pursuant to 43 U.S.C. 1337(c) if 
the Attorney General, in consultation with the Federal Trade 
Commission, determines that awarding the lease would be inconsistent 
with the antitrust laws.
    For more information on whether specific communications or 
agreements could constitute a violation of Federal antitrust law, 
please see https://www.justice.gov/atr/business-resources 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 each provisionally winning bidder. Within 10 
business days after receiving the lease copies, the provisionally 
winning bidders 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 website 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 website at: https://www.boem.gov/Commercial-Wind-Leasing/Massachusetts/Lease-Sale-4A/.
    BOEM will not execute a lease until the three requirements above 
have been satisfied, BOEM has accepted the provisionally winning 
bidder's financial assurance pursuant to 30 CFR 585.515, and BOEM has 
processed the provisionally winning bidder's payment.
    BOEM may extend the 10 business day deadline for signing a lease, 
filing the required financial assurance, and/or paying the balance of 
the bonus bid if BOEM determines the delay was caused by events beyond 
the provisionally winning bidder's control.
    If a 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. Also in such a case, BOEM reserves the right to 
identify the next highest bid for that lease area submitted during the 
lease sale by a bidder who has not won one of the other lease areas, 
and to offer the lease to that bidder pursuant to its bid.
    Within 45 calendar days of the date that a 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://www.pay.gov/public/form/start/27797604/.
    Subsequent annual rent payments must be made following the detailed 
instructions contained in the ``Instructions for Making Electronic 
Payments,'' available on BOEM's website at: https://www.boem.gov/Commercial-Wind-Leasing/Massachusetts/Lease-Sale-4A/.
    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

[[Page 53096]]

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 website 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 may be 
regarded by BOEM as suitable for public release. Further, BOEM will not 
treat as confidential aggregate summaries of otherwise confidential 
information.

    Dated: October 15, 2018.
Walter D. Cruickshank,
Acting Director, Bureau of Ocean Energy Management.
[FR Doc. 2018-22878 Filed 10-18-18; 8:45 am]
 BILLING CODE 4310-MR-P



                                                                            Federal Register / Vol. 83, No. 203 / Friday, October 19, 2018 / Notices                                          53089

                                              on archeological evidence, geographic                   claimants have come forward, transfer                 the section entitled ‘‘Deadlines and
                                              location, ethnographic information, and                 of control of the unassociated funerary               Milestones for Bidders.’’
                                              oral history evidence, these funerary                   objects to The Tribes may proceed.                    FOR FURTHER INFORMATION CONTACT: Jeff
                                              objects are consistent with those of                      The Fowler Museum at UCLA is                        Browning, BOEM, Office of Renewable
                                              ancestral Kumeyaay people, represented                  responsible for notifying The Tribes that             Energy Programs, 45600 Woodland
                                              by the Campo Band of Diegueno                           this notice has been published.                       Road, VAM–OREP, Sterling, Virginia
                                              Mission Indians of the Campo Indian                      Dated: September 6, 2018.                            20166, (703) 787–1577 or
                                              Reservation, California; Capitan Grande                 Melanie O’Brien,                                      Jeffrey.Browning@boem.gov.
                                              Band of Diegueno Mission Indians of                                                                           SUPPLEMENTARY INFORMATION:
                                                                                                      Manager, National NAGPRA Program.
                                              California (Barona Group of Capitan                                                                              Authority: This FSN is published
                                              Grande Band of Mission Indians of the                   [FR Doc. 2018–22797 Filed 10–18–18; 8:45 am]
                                                                                                                                                            pursuant to subsection 8(p) of the OCS
                                              Barona Reservation, California; Viejas                  BILLING CODE 4312–52–P
                                                                                                                                                            Lands Act (43 U.S.C. 1337(p)), as
                                              (Baron Long) Group of Capitan Grande                                                                          amended by section 388 of the Energy
                                              Band of Mission Indians of the Viejas                                                                         Policy Act of 2005, and the
                                              Reservation, California); Ewiiaapaayp                   DEPARTMENT OF THE INTERIOR
                                                                                                                                                            implementing regulations at 30 CFR part
                                              Band of Kumeyaay Indians, California;
                                                                                                      Bureau of Ocean Energy Management                     585, including sections 211 and 216.
                                              Iipay Nation of Santa Ysabel, California                                                                         Background: BOEM proposed this
                                              (previously listed as the Santa Ysabel                  [Docket No. BOEM–2018–0043]
                                                                                                                                                            lease sale on April 11, 2018, in the
                                              Band of Diegueno Mission Indians of
                                                                                                      Atlantic Wind Lease Sale 4A (ATLW–                    Atlantic Wind Lease Sale 4A (ATLW–
                                              the Santa Ysabel Reservation); Inaja
                                                                                                      4A) for Commercial Leasing for Wind                   4A) Commercial Leasing for Wind Power
                                              Band of Diegueno Mission Indians of
                                                                                                      Power on the Outer Continental Shelf                  on the Outer Continental Shelf Offshore
                                              the Inaja and Cosmit Reservation,
                                                                                                      Offshore Massachusetts—Final Sale                     Massachusetts—Proposed Sale Notice
                                              California; Jamul Indian Village of
                                                                                                      Notice                                                (PSN), which was published in the
                                              California; La Posta Band of Diegueno
                                                                                                                                                            Federal Register (83 FR 15618). A 60-
                                              Mission Indians of the La Posta Indian                  AGENCY:  Bureau of Ocean Energy                       day comment period followed. BOEM
                                              Reservation, California; Manzanita Band                 Management, Interior.                                 received 21 comment submissions in
                                              of Diegueno Mission Indians of the
                                                                                                      ACTION: Final Sale Notice for                         response to the PSN, which are
                                              Manzanita Reservation, California; Mesa
                                                                                                      Commercial Leasing for Wind Power on                  available on regulations.gov (Docket ID:
                                              Grande Band of Diegueno Mission
                                                                                                      the Outer Continental Shelf Offshore                  BOEM–2018–0016) at: https://
                                              Indians of the Mesa Grande Reservation,
                                                                                                      Massachusetts.                                        www.regulations.gov/docket?D=BOEM-
                                              California; San Pasqual Band of
                                                                                                                                                            2018-0016. BOEM has posted its
                                              Diegueno Mission Indians of California;                 SUMMARY:   This document is the Final                 responses to comments submitted
                                              and Sycuan Band of the Kumeyaay                         Sale Notice (FSN) for the sale of                     during the PSN comment period. The
                                              Nation (hereafter referred to as ‘‘The                  commercial wind energy leases on the                  document, entitled Response to
                                              Tribes’’).                                              Outer Continental Shelf (OCS) offshore                Comments, can be found through
                                              Determinations Made by the Fowler                       Massachusetts. The Bureau of Ocean                    BOEM’s website at: https://
                                              Museum at UCLA                                          Energy Management (BOEM) will offer                   www.boem.gov/Commercial-Wind-
                                                                                                      three leases: Lease OCS–A 0520, Lease                 Leasing/Massachusetts/Lease-Sale-4A/.
                                                 Officials of the Fowler Museum at
                                                                                                      OCS–A 0521, and Lease OCS–A 0522                         In response to the PSN, BOEM
                                              UCLA have determined that:
                                                                                                      (Lease Areas), which are located within
                                                 • Pursuant to 25 U.S.C. 3001(3)(B),                                                                        received new qualification materials
                                                                                                      the former Leases OCS–A 0502 and                      from thirteen entities that BOEM has
                                              the three cultural items described above
                                                                                                      Lease OCS–A 0503 that were unsold                     determined to be qualified to participate
                                              are reasonably believed to have been
                                                                                                      during the Atlantic Wind Lease Sale–4                 in this sale, and four affirmations of
                                              placed with or near individual human
                                                                                                      (ATLW–4) on January 29, 2015. BOEM                    interest from entities that were qualified
                                              remains at the time of death or later as
                                                                                                      will use an ascending bidding auction                 to participate in the first Massachusetts
                                              part of the death rite or ceremony and
                                                                                                      format. The FSN contains information                  Lease Sale (ATLW–4) in January of
                                              are believed, by a preponderance of the
                                                                                                      pertaining to the areas available for                 2015. In addition, the two entities that
                                              evidence, to have been removed from a
                                                                                                      leasing, certain provisions and                       submitted unsolicited lease requests for
                                              specific burial site of a Native American
                                                                                                      conditions of the leases, auction details,            the Lease Areas have also qualified,
                                              individual.
                                                 • Pursuant to 25 U.S.C. 3001(2), there               the lease form, criteria for evaluating               resulting in a total of 19 qualified
                                              is a relationship of shared group                       competing bids, award procedures,                     entities.
                                              identity that can be reasonably traced                  appeal procedures, and lease execution.                  BOEM made several changes from the
                                              between the unassociated funerary                       The issuance of the lease(s) resulting                description of the lease sale format and
                                              objects and The Tribes.                                 from this sale would not constitute an                leases that were published in the PSN.
                                                                                                      approval of project-specific plans to                 The primary changes are: The lease sale
                                              Additional Requestors and Disposition                   develop offshore wind energy. Such                    no longer contains a non-monetary
                                                Lineal descendants or representatives                 plans, if submitted by the lessee, would              bidding credit, and will instead use a
                                              of any Indian Tribe or Native Hawaiian                  be subject to subsequent environmental,               straight ascending bid format; the two
                                              organization not identified in this notice              technical, and public reviews prior to a              proposed lease areas have been re-
                                              that wish to claim these cultural items                 decision on whether the proposed                      divided into three Lease Areas; each
                                              should submit a written request with                    development should be authorized.                     lease now contains conditions related to
amozie on DSK3GDR082PROD with NOTICES1




                                              information in support of the claim to                  DATES: BOEM will hold a mock auction                  vessel transit corridors and setbacks
                                              Wendy G. Teeter, Ph.D., Fowler                          for the bidders starting at 9:00 a.m.                 between adjacent leases; and the
                                              Museum at UCLA, Box 951549, Los                         Eastern Standard Time (EST) on                        operations term of each lease has been
                                              Angeles, CA 90095–1549, telephone                       December 11, 2018. The monetary                       extended from 25 years to 33 years.
                                              (310) 825–1864, email wteeter@                          auction will be held online and will                     List of Eligible Bidders: BOEM has
                                              arts.ucla.edu, by November 19, 2018.                    begin at 9:00 a.m. EST on December 13,                determined that the following entities
                                              After that date, if no additional                       2018. Additional details are provided in              are legally, technically, and financially


                                         VerDate Sep<11>2014   17:25 Oct 18, 2018   Jkt 247001   PO 00000   Frm 00063   Fmt 4703   Sfmt 4703   E:\FR\FM\19OCN1.SGM   19OCN1


                                              53090                                  Federal Register / Vol. 83, No. 203 / Friday, October 19, 2018 / Notices

                                              qualified to hold a commercial wind                             order to participate in the auction.                  • From the Auction to Lease Execution
                                              lease offshore Massachusetts pursuant                           BOEM must receive each bidder’s BFF                      • Refund Non-Winners: Once the
                                              to 30 CFR 585.106 and 107, and                                  no later than November 2, 2018. BOEM                  provisional winners have been
                                              therefore may participate in this lease                         will consider extensions to this deadline             announced, BOEM will provide the
                                              sale as bidders subject to meeting the                          only if BOEM determines that the                      non-winners a written explanation of
                                              requirements outlined in this notice:                           failure to timely submit a BFF was                    why they did not win and return their
                                                                                                              caused by events beyond the bidder’s                  bid deposits.
                                                       Company name                         Company No.       control. The BFF can be downloaded at:                   • Department of Justice (DOJ) Review:
                                              Avangrid Renewables, LLC ..                           15019     https://www.boem.gov/Commercial-                      DOJ will have 30 days in which to
                                              Camellia Wind Energy LLC ..                           15077     Wind-Leasing/Massachusetts/Lease-                     conduct an antitrust review of the
                                              CI III Blue Cloud Wind En-                                      Sale-4A/. Once BOEM has processed a                   auction, pursuant to 43 U.S.C. 1337(c).
                                                ergy II LLC ........................                15079     bidder’s BFF, the bidder may log into                    • Delivery of the Lease: BOEM will
                                              Cobra Industrial Services,                                      pay.gov and submit a bid deposit. For                 send three lease copies to each winner,
                                                Inc .....................................           15073     purposes of this auction, BOEM will not               with instructions on how to execute the
                                              Deepwater Wind New Eng-
                                                                                                              consider any BFFs submitted by bidders                lease. The first year’s rent is due 45
                                                land, LLC ...........................               15012
                                              East Wind LLC .....................                   15076     for previous lease sales. BOEM will only              calendar days after the winners receive
                                              EC&R Development, LLC .....                           15080     accept an originally executed paper                   the lease copies for execution.
                                              EDF Renewables Develop-                                         copy of the BFF. The BFF must be                         • Return the Lease: Within 10
                                                ment, Inc ...........................               15027     executed by an authorized                             business days of receiving the lease
                                              EDPR Offshore North Amer-                                       representative listed on the bidder’s                 copies, the auction winners must post
                                                ica LLC ..............................              15074     legal qualifications. Each bidder is                  financial assurance, pay any
                                              Enbridge Holdings (Green                                                                                              outstanding balance of their bonus bids
                                                Energy) L.L.C ....................                  15065
                                                                                                              required to sign the self-certification in
                                                                                                              the BFF, in accordance with 18 U.S.C.                 (i.e., winning monetary bid minus
                                              Innogy US Renewable
                                                Projects LLC .....................                  15061     1001 (Fraud and False Statements).                    applicable bid deposit), and sign and
                                                                                                                                                                    return the three executed lease copies.
                                              Mayflower Wind Energy LLC                             15082        • Bid Deposit: Each bidder must
                                              Northeast Wind Energy LLC                             15078                                                           The winners may request extensions to
                                                                                                              provide a bid deposit of $450,000 no
                                              Northland Power America Inc                           15068                                                           the 10-day deadline, and BOEM may
                                              PNE WIND USA, Inc ............                        15056     later than November 16, 2018 in order
                                                                                                                                                                    grant such extensions if BOEM
                                              Equinor Wind US LLC ..........                        15058     to participate in the mock auction and                determines the delay to be caused by
                                              Vineyard Wind LLC ..............                      15010     the monetary auction. BOEM will                       events beyond the requesting winner’s
                                              Wind Future LLC ..................                    15067     consider extensions to this deadline                  control, pursuant to 30 CFR 585.224(e).
                                              wpd offshore Alpha LLC .......                        15060     only if BOEM determines that the                         • Execution of Lease: Once BOEM has
                                                                                                              failure to timely submit the bid deposit              received the signed lease copies and
                                                 Affiliated Entities: On the Bidder’s                         was caused by events beyond the
                                              Financial Form (BFF) discussed below,                                                                                 verified that all other required materials
                                                                                                              bidder’s control. Further information                 have been received, BOEM will make a
                                              eligible bidders must list any eligible                         about bid deposits can be found in the
                                              bidders with whom they are affiliated.                                                                                final determination regarding its
                                                                                                              ‘‘Bid Deposit’’ section of this notice.               issuance of the leases and will execute
                                              Affiliated eligible bidders are not
                                              permitted to compete against each other                         • Conduct the Auction                                 the leases, if appropriate.
                                              in the lease sale, and must decide by the                                                                                Area Offered for Leasing: The area
                                              start of the auction which eligible                               • Mock Auction: BOEM will hold a                    available for sale will be auctioned as
                                              bidder (if any) will participate. If two or                     Mock Auction on December 11, 2018                     three leases: Lease OCS–A 0520, Lease
                                              more affiliated bidders participate in the                      beginning at 9:00 a.m. EST. The Mock                  OCS–A 0521, and Lease OCS–A 0522.
                                              auction, BOEM may disqualify some or                            Auction will be held online. BOEM will                Lease OCS–A 0520 consists of 128,811
                                              all such bidders from the auction.                              contact each bidder that has timely filed             acres, Lease OCS–A 0521 consists of
                                                 BOEM considers two entities to be                            a BFF and bid deposit and provide                     127,388 acres, and Lease OCS–A 0522
                                              affiliated if (a) one entity (or its parent                     instructions for participation. Only                  consists of 132,370 acres. These Lease
                                              or subsidiary) has or retains any right,                        bidders that have timely submitted BFFs               Areas lie within the same area that
                                              title, or interest in the other entity (or its                  and bid deposits will be permitted to                 BOEM announced on April 11, 2018
                                              parent or subsidiary), including any                            participate in the Mock Auction.                      and published in the PSN. In response
                                              ability to control or direct actions with                                                                             to comments received on the PSN,
                                                                                                                • Monetary Auction: On December
                                              respect to such entity, either directly or                                                                            however, BOEM re-divided the available
                                                                                                              13, 2018, BOEM, through its contractor,
                                              indirectly, individually or through any                                                                               area into three leases.
                                                                                                              will hold the auction. The first round of
                                              other party; or (b) the entities are both                                                                                Map of the Area Offered for Leasing:
                                                                                                              the auction will start at 9:00 a.m. EST.
                                              direct or indirect subsidiaries of the                                                                                A map of the Lease Areas, and GIS
                                                                                                              The auction will proceed electronically
                                              same parent company.                                                                                                  spatial files X, Y (eastings, northings)
                                                                                                              according to a schedule to be distributed             UTM Zone 18, NAD83 Datum, and
                                                 Deadlines and Milestones for Bidders:                        by the BOEM Auction Manager at the
                                              This section describes the major                                                                                      geographic X, Y (longitude, latitude),
                                                                                                              time of the auction. BOEM anticipates                 NAD83 Datum can be found on BOEM’s
                                              deadlines and milestones in the auction                         that the auction will last one business
                                              process from publication of this FSN to                                                                               website at: https://www.boem.gov/
                                                                                                              day, but it may continue on consecutive               Commercial-Wind-Leasing/
                                              execution of the lease pursuant to this                         business days, as necessary, until the
                                              sale. These are organized into various                                                                                Massachusetts/Lease-Sale-4A/.
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                                                                                                              auction ends in accordance with the                      A large scale map of the Lease Areas,
                                              stages: The FSN Waiting Period;
                                                                                                              procedures described in the ‘‘Auction                 showing boundaries of the area with
                                              Conducting the Auction; and From the
                                                                                                              Procedures’’ section of this notice.                  numbered blocks, is available from
                                              Auction to Lease Execution.
                                                                                                                • Announce Provisional Winners:                     BOEM upon request at the following
                                              • FSN Waiting Period                                            BOEM will announce the provisional                    address: Bureau of Ocean Energy
                                                • Bidder’s Financial Form: Each                               winners of the lease sale after the                   Management, Office of Renewable
                                              bidder must submit a BFF to BOEM in                             auction ends.                                         Energy Programs, 45600 Woodland


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                                                                            Federal Register / Vol. 83, No. 203 / Friday, October 19, 2018 / Notices                                          53091

                                              Road, VAM–OREP, Sterling, Virginia                      describes the strategies that the Lessee              facilities be designed in a manner that,
                                              20166, Phone: (703) 787–1300, Fax:                      intends to use for communicating with                 among other things, provides for safe
                                              (703) 787–1708.                                         fisheries stakeholders prior to and                   transit through the facility to fishing
                                                 Environmental Reviews and Lease                      during activities in support of the                   grounds. Current BOEM leaseholders
                                              Stipulations: The PSN explains that the                 submission of a plan. The FCP must                    offshore Rhode Island and
                                              existing June 2014 Revised                              include the contact information for an                Massachusetts (Leases OCS–A 0486,
                                              Massachusetts Environmental                             individual retained by the Lessee as its              OCS–A 0487, OCS–A 0500, and OCS–A
                                              Assessment (EA) and associated                          primary point of contact with fisheries               0501) are presently working with
                                              consultations adequately assess the                     stakeholders (i.e., Fisheries Liaison). If            stakeholders, and the United States
                                              reasonably foreseeable environmental                    the Lessee does not develop a project                 Coast Guard to identify those transit
                                              effects of the issuance of commercial                   website, the FCP must be made                         routes and establish corridors in their
                                              leases and associated site                              available to the Lessor and the public                plan submittals. BOEM has determined
                                              characterization activity in the                        upon request.                                         that such corridors are only effective if
                                              Massachusetts Wind Energy Area                             Best Available Technologies for                    they continue, as appropriate, through
                                              (WEA), which includes the areas that                    Meteorological Buoys: BOEM has                        the Lease Areas. As such, BOEM has
                                              BOEM will lease pursuant to this FSN.                   included a lease stipulation aimed at                 added the following lease term:
                                              Although this FSN represents a change                   requiring the Lessee to use best                         In its COP project design, Lessee must
                                              in the number and size of the leases to                 available technologies in designs for                 extend any BOEM-approved vessel
                                              be sold compared to the PSN, the scope                  meteorological buoys and other similar                transit corridors in adjacent lease areas,
                                              of activities anticipated as a result of the            floating devices to ensure entanglement               unless BOEM determines that such
                                              lease sale still falls within the range                 risks to marine protected species are                 corridors are not necessary or can be
                                              analyzed in the EA because, among                       minimized to discountable levels.                     modified. Lessee may not construct any
                                              other things, those leases still fall within            Although this is a new lease stipulation,             surface structures in such vessel transit
                                              the boundaries of former Leases OCS–A                   it is intended to provide clarification for           corridors.
                                              0502 and OCS–A 0503.                                    existing buoy requirements contained in                  Surface Structure Setback: In
                                                 BOEM will conduct additional                         the 2013 Biological Opinion issued to                 response to comments received on the
                                              environmental reviews upon receipt of                   BOEM by NOAA for Commercial Wind                      PSN, BOEM will require lessees to
                                              a lessee’s proposed project-specific                    Lease Issuance and Site Assessment                    incorporate a setback of 750 meters (m)
                                              plans, such as a Site Assessment Plan                   Activities on the Atlantic Outer                      from any shared lease boundary into
                                              (SAP) or Construction and Operations                    Continental Shelf in Massachusetts,                   future COP submittals, unless both
                                              Plan (COP). As conditions of plan                       Rhode Island, New York and New Jersey                 adjacent lessees agree to a decreased
                                              approval, Lessees may be required to                    Wind Energy and discussed in the 2014
                                                                                                                                                            setback. The 750 m setback for each
                                              contribute to regional environmental                    EA. The lease stipulation states as
                                                                                                                                                            lease results in a minimum distance of
                                              monitoring programs that are presently                  follows:
                                              being developed jointly between state                      The Lessee must ensure that any                    1,500 m between turbine locations of
                                              and Federal authorities and stakeholder                 structures or devices attached to the                 adjacent leases. BOEM has added a term
                                              groups. For Lease OCS–A 0522, BOEM                      seafloor for continuous periods greater               setting forth this obligation in
                                              may require terms and conditions of                     than 24 hours use the best available                  Addendum A of Leases OCS–A 0520,
                                              project approval aimed at mitigating,                   mooring systems for minimizing the risk               OCS–A 0521, and OCS–A 0522 which
                                              minimizing, or avoiding impacts to sea                  of entanglement or entrainment of                     reads as follows:
                                              ducks. During the development of the                    marine mammals, manta rays and sea                       In its COP project design, the Lessee
                                              Massachusetts WEA, BOEM took steps                      turtles, while still ensuring the safety              must incorporate a 750 m setback from
                                              to protect sea ducks (among other                       and integrity of the structure or device.             any shared lease boundary within which
                                              species) by removing lease blocks.                      The best available mooring system may                 the Lessee may not construct any
                                              Recent information suggests that high                   include, but is not limited to, vertical              surface structures, unless the Lessee and
                                              concentrations of sea ducks may forage                  and float lines (chains, cables, or coated            the adjacent lessee agree to a smaller
                                              in the easternmost lease blocks (6251,                  rope systems), swivels, shackles, and                 setback, the Lessee submits such
                                              6252, & 6302) during the winter months.                 anchor designs.                                       agreement to BOEM, and BOEM
                                                 BOEM is also adding additional lease                    All mooring lines and ancillary                    approves it.
                                              stipulations that were not contained in                 attachment lines must use one or more                    Withdrawal of Blocks: BOEM reserves
                                              the leases offered in ATLW–4.                           of the following measures to reduce                   the right to withdraw all or portions of
                                                 Fisheries Communication Plan: In                     entanglement risk: shortest practicable               the Lease Areas prior to executing the
                                              order to facilitate interactions between                line length, rubber sleeves, weak-links,              leases with the winning bidders.
                                              lessees and commercial fisheries and                    chains, cables or similar equipment                      Lease Terms and Conditions: BOEM
                                              maintain consistency with its most                      types that prevent lines from looping or              has included terms, conditions, and
                                              recent lease sale, BOEM is once again                   wrapping around animals, or                           stipulations for the OCS commercial
                                              including a lease stipulation to ensure                 entrapping protected species.                         wind leases to be offered through this
                                              the Lessee coordinates and                                 Any equipment must be attached by                  sale. After the leases are issued, BOEM
                                              communicates with commercial and                        a line within a rubber sleeve for rigidity.           reserves the right to require compliance
                                              recreational fishermen. BOEM has                        The length of the line must be as short               with additional terms and conditions
                                              determined that this stipulation is                     as necessary to meet its intended                     associated with approval of a SAP or
                                              prudent for the leases in this sale, given              purpose. If an entangled live or dead                 COP. The leases are available on
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                                              the importance of fishing to the                        marine protected species is reported, the             BOEM’s website at: http://
                                              economies of Southern New England                       Lessee must provide any assistance to                 www.boem.gov/Commercial-Wind-
                                              states. The lease stipulation states as                 authorized stranding response                         Leasing/Massachusetts/Lease-Sale-4A/.
                                              follows:                                                personnel as requested by BOEM or                     The leases include the following seven
                                                 Fisheries Communications Plan (FCP)                  NMFS.                                                 attachments:
                                              and Fisheries Liaison. The Lessee must                     Vessel Transit Corridors: Fishermen                   • Addendum ‘‘A’’ (Description of
                                              develop a publicly available FCP that                   have requested that offshore wind                     Leased Area and Lease Activities);


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                                              53092                         Federal Register / Vol. 83, No. 203 / Friday, October 19, 2018 / Notices

                                                 • Addendum ‘‘B’’ (Lease Term and                     the lease not authorized for commercial                  The lessee must also pay rent for any
                                              Financial Schedule);                                    operations, i.e., not generating                      project easement associated with the
                                                 • Addendum ‘‘C’’ (Lease Specific                     electricity. Instead of geographically                lease, commencing on the date that
                                              Terms, Conditions, and Stipulations);                   dividing the leased area into acreage                 BOEM approves the COP (or
                                                 • Addendum ‘‘D’’ (Project Easement);                 that is ‘‘generating’’ and ‘‘non-                     modification thereof) that describes the
                                                 • Addendum ‘‘E’’ (Rent Schedule                      generating,’’ however, the fraction of the            project easement. Annual rent for a
                                              post-COP approval);                                     lease accruing rent will be based on the              project easement that is 200 feet wide
                                                 • Appendix A to Addendum ‘‘C’’                       fraction of the total nameplate capacity              and centered on the transmission cable
                                              (Incident Report: Protected Species                     of the project that is not yet in                     is $70 per statute mile. For any
                                              Injury or Mortality); and                               operation. This fraction is calculated by             additional acreage required, the lessee
                                                 • Appendix B to Addendum ‘‘C’’                       dividing the nameplate capacity not yet               must also pay the greater of $5 per acre
                                              (Required Data Elements for Protected
                                                                                                      authorized for commercial operations at               per year or $450 per year.
                                              Species Observer Reports).
                                                                                                      the time payment is due by the                           Operating Fee: For purposes of
                                                 Addenda ‘‘A,’’ ‘‘B,’’ and ‘‘C’’ provide
                                              detailed descriptions of lease terms and                anticipated nameplate capacity after full             calculating the initial annual operating
                                              conditions. Addenda ‘‘D’’ and ‘‘E’’ will                installation of the project (as described             fee payment pursuant to 30 CFR
                                              be completed at the time of COP                         in the COP). The annual rent due for a
                                                                                                                                                            585.506, BOEM applies an operating fee
                                              approval or approval with                               given year is then derived by
                                                                                                                                                            rate to a proxy for the wholesale market
                                              modifications.                                          multiplying this fraction by the amount
                                                                                                                                                            value of the electricity expected to be
                                                 The most recent version of BOEM’s                    of rent that would have been due for the
                                                                                                                                                            generated from the project during its
                                              renewable energy commercial lease                       lessee’s entire lease area at the rental
                                                                                                                                                            first twelve months of operations. This
                                              form (BOEM–0008) is available on                        rate of $3 per acre.
                                                                                                                                                            initial payment will be prorated to
                                              BOEM’s website at: http://                                 For a 128,811 acre lease (the size of
                                                                                                                                                            reflect the period between the
                                              www.boem.gov/BOEM-OCS-Operation-                        OCS–A 0520), the rent payment will be
                                                                                                                                                            commencement of commercial
                                              Forms/.                                                 $386,433 per year if no portion of the
                                                                                                                                                            operations and the Lease Anniversary.
                                                 Plans: Pursuant to 30 CFR 585.601, a                 lease area is authorized for commercial
                                                                                                                                                            The initial annual operating fee
                                              leaseholder wishing to submit a SAP                     operations. If 500 megawatts (MW) of a
                                                                                                                                                            payment is due within 45 days of the
                                              must do so within 12 months of lease                    project’s nameplate capacity is
                                                                                                                                                            commencement of commercial
                                              issuance. If the lessee intends to                      operating (or authorized for operation),
                                                                                                                                                            operations. Thereafter, subsequent
                                              continue to hold the lease into its                     and the approved COP specifies a
                                                                                                                                                            annual operating fee payments are due
                                              operations term, the lessee must submit                 maximum project size of 800 MW, the
                                                                                                                                                            on or before each Lease Anniversary.
                                              a COP at least 6 months before the end                  rent payment will be $144,912. This
                                              of the site assessment term.                            payment is based on the 300 MW of                        The subsequent annual operating fee
                                                 Financial Terms and Conditions: This                 nameplate capacity BOEM has not yet                   payments are calculated by multiplying
                                              section provides an overview of the                     authorized for commercial operations.                 the operating fee rate by the imputed
                                              annual payments required of the lessee                  For the above example, this would be                  wholesale market value of the projected
                                              that will be fully described in the lease,              calculated as follows: 300MW/800MW ×                  annual electric power production. For
                                              and the financial assurance                             ($3/acre × 128,811 acres) = $144,912.                 the purposes of this calculation, the
                                              requirements that will be associated                       If the lessee submits an application               imputed market value is the product of
                                              with the lease.                                         for relinquishment of a portion of its                the project’s annual nameplate capacity,
                                                 Rent: Pursuant to 30 CFR 585.224(b)                  leased area within the first 45 calendar              the total number of hours in the year
                                              and 585.503, the first year’s rent                      days following the date that the lease is             (8,760), the capacity factor, and the
                                              payment of $3 per acre is due within 45                 received by the lessee for execution, and             annual average price of electricity
                                              calendar days of the date the lessee                    BOEM approves that application, no                    derived from a historical regional
                                              receives the lease for execution.                       rent payment will be due on the                       wholesale power price index. For
                                              Thereafter, annual rent payments are                    relinquished portion of the lease area.               example, the annual operating fee for an
                                              due on the anniversary of the effective                 Later relinquishments of any portion of               800 MW wind facility operating at a
                                              date of the lease (the ‘‘Lease                          the lease area will reduce the lessee’s               40% capacity (i.e., capacity factor of 0.4)
                                              Anniversary’’). Once commercial                         rent payments starting in the year                    with a regional wholesale power price
                                              operations under the lease begin, BOEM                  following BOEM’s approval of the                      of $40/MWh and an operating fee rate
                                              will charge rent only for the portions of               relinquishment.                                       of 0.02 would be calculated as follows:




                                                 Operating Fee Rate: The operating fee                turbines of the wind facility under                      Capacity Factor: The capacity factor
                                              rate is the share of imputed wholesale                  commercial operations can produce at                  relates to the amount of energy
                                              market value of the projected annual                    their rated wind speed as designated by               delivered to the grid during a period of
                                              electric power production due to the                    the turbine’s manufacturer. The lessee                time compared to the amount of energy
                                              Office of Natural Resources Revenue as                  will specify in its COP the nameplate                 the wind facility would have produced
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                                              an annual operating fee. For the Lease                  capacity available at the start of each               at full capacity during that same period
                                              Areas, BOEM will set the fee rate at 0.02               year of commercial operations on the                  of time. This factor is represented as a
                                              (i.e., 2%) for the entire life of                       lease. For example, if the lessee                     decimal between zero and one. There
                                              commercial operations.                                  specifies 100 turbines in its COP, and                are several reasons why the amount of
                                                 Nameplate Capacity: Nameplate                        each is rated by the manufacturer at 8                power delivered is less than the
                                              capacity is the maximum rated electric                  MW, the nameplate capacity of the wind                theoretical 100% of capacity. For a wind
                                                                                                                                                                                                          EN19OC18.000</GPH>




                                              output, expressed in MW, which the                      facility is 800 MW.                                   facility, the capacity factor is mostly


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                                                                            Federal Register / Vol. 83, No. 203 / Friday, October 19, 2018 / Notices                                            53093

                                              determined by the availability of wind.                    The financial terms described above                  Minimum Bid: The minimum bid is
                                              Transmission line loss and down time                    can be found in Addendum ‘‘B’’ of the                 the lowest bid BOEM will accept as a
                                              for maintenance or other purposes also                  leases, which BOEM has made available                 winning bid, and it is where BOEM will
                                              affect the capacity factor.                             with this notice on its website at:                   start the bidding in the auction. BOEM
                                                 The capacity factor for the year in                  https://www.boem.gov/Commercial-                      has established a minimum bid of $2.00
                                              which the Commercial Operation Date                     Wind-Leasing/Massachusetts/Lease-                     per acre for this lease sale.
                                              occurs, and for the first six full years of             Sale-4A/.
                                                                                                         Bidder’s Financial Form: Each bidder               Auction Procedures
                                              commercial operations on the lease, is
                                              set to 0.4 (i.e., 40%). At the end of the               must fill out the BFF referenced in this              Ascending Bidding With Cash Bid
                                              sixth year, the capacity factor may be                  FSN. BOEM has also made a copy of the                 Variable
                                              adjusted to reflect the performance over                form available with this notice on its
                                                                                                                                                              As authorized under 30 CFR
                                              the previous five years based upon the                  website at: https://www.boem.gov/
                                                                                                      Commercial-Wind-Leasing/                              585.220(a)(2) and 585.221(a)(1), BOEM
                                              actual metered electricity generation at                                                                      will use an ascending bidding auction
                                              the delivery point to the electrical grid.              Massachusetts/Lease-Sale-4A/. BOEM
                                                                                                      recommends that each bidder designate                 with cash as the bid variable for this
                                              Similar adjustments to the capacity                                                                           lease sale. BOEM will start the auction
                                              factor may be made once every five                      an email address in its BFF that the
                                                                                                      bidder will then use to create an                     using the minimum bid prices for each
                                              years thereafter. The maximum change                                                                          lease area, and increase those prices
                                              in the capacity factor from one period to               account in pay.gov (if it has not already
                                                                                                      done so).                                             incrementally until no more than one
                                              the next will be limited to plus or minus                                                                     active bidder per lease area remains in
                                              10% of the previous period’s value.                        BOEM will not consider BFFs
                                                                                                      submitted by bidders for previous lease               the auction.
                                                 Wholesale Power Price Index:
                                                                                                      sales to satisfy the requirements of this             The Auction
                                              Pursuant to 30 CFR 585.506(c)(2)(i), the
                                                                                                      auction. BOEM will also only consider
                                              wholesale power price, expressed in                                                                              Using an online bidding system to
                                                                                                      BFFs submitted after the deadline
                                              dollars per MW-hour, is determined at                                                                         host the auction, BOEM will start the
                                                                                                      (November 2, 2018) if BOEM determines
                                              the time each annual operating fee                                                                            bidding for Lease OCS–A 0520 at
                                                                                                      that the failure to timely submit the BFF
                                              payment is due, based on the weighted                                                                         $257,622, Lease OCS–A 0521 at
                                                                                                      was caused by events beyond the
                                              average of the inflation-adjusted peak                                                                        $254,776, and for Lease OCS–A 0522 at
                                                                                                      bidder’s control. BOEM will only accept
                                              and off-peak spot price indices for the                                                                       $264,740. Each bidder may bid on only
                                                                                                      an original, executed paper copy of the
                                              Northeast—Massachusetts Hub for the                                                                           one lease area at a time, and can win at
                                                                                                      BFF. The BFF must be executed by an
                                              most recent year of spot price data                                                                           most one of the three Lease Areas
                                                                                                      authorized representative listed in the
                                              available. The wholesale power price is                 qualifications package on file with                   offered in this sale.
                                              adjusted for inflation from the year                    BOEM as authorized to bind the                           The auction will be conducted in a
                                              associated with the published spot price                company.                                              series of rounds. At the start of each
                                              indices to the year in which the                           Bid Deposit: A bid deposit is an                   round, BOEM will state an asking price
                                              operating fee is due, based on the Lease                advance cash payment submitted to                     for each lease area. If a bidder is willing
                                              Anniversary and using annual implicit                   BOEM in order to participate in the                   to meet the asking price for one of the
                                              price deflators as reported by the U.S.                 auction. After creating an account in                 lease areas, it will indicate its intent by
                                              Department of Commerce, Bureau of                       pay.gov (if necessary), bidders may use               submitting a bid equal to the asking
                                              Economic Analysis.                                      the Bid Deposit Form on the pay.gov                   price. A bid at the full asking price is
                                                 Financial Assurance: Within 10                       website to leave a deposit. Each bidder               referred to as a ‘‘live bid.’’ To participate
                                              business days after receiving the lease                 must submit a bid deposit of $450,000                 in the next round of the auction, a
                                              copies and pursuant to 30 CFR 585.515–                  no later than November 16, 2018. Any                  bidder must submit a live bid for one of
                                              516, the provisional winners of the                     bidder who fails to submit the bid                    the lease areas in each previous round.
                                              leases must provide an initial lease-                   deposit by this deadline may be                       As long as there are two or more live
                                              specific bond or other approved means                   disqualified from participating in the                bids for at least one lease area, the
                                              of meeting the lessor’s initial financial               auction.                                              auction moves to the next round. BOEM
                                              assurance requirements, in the amount                      Following the auction, bid deposits                will raise the asking price for each lease
                                              of $100,000. The provisional winners                    will be applied against bonus bids or                 area that has received two or more live
                                              may meet financial assurance                            other obligations owed to BOEM. If the                bids in the previous round. Asking price
                                              requirements by posting a surety bond                   bid deposit exceeds a bidder’s total                  increments will be determined based on
                                              or by setting up an escrow account with                 financial obligation, BOEM will refund                several factors, including (but not
                                              a trust agreement giving BOEM the right                 the balance of the bid deposit to the                 necessarily limited to) the expected time
                                              to withdraw the money held in the                       bidder. BOEM will refund bid deposits                 needed to conduct the auction, and the
                                              account on demand. BOEM encourages                      to non-winners once BOEM has                          number of rounds that have already
                                              the provisionally winning bidder to                     announced the provisional winner.                     occurred. BOEM reserves the right to
                                              discuss the financial assurance                            If BOEM offers a lease pursuant to a               increase or decrease bidding increments
                                              requirement with BOEM as soon as                        provisionally winning bid, and that                   as appropriate.
                                              possible after the auction has                          bidder fails to timely return the signed                 Generally, a bidder that submitted a
                                              concluded.                                              lease form, establish financial                       live bid in the previous round is free to
                                                 BOEM will base the amount of all                     assurance, and/or pay the balance of its              bid on any of the three areas in the
                                              SAP, COP, and decommissioning                           bid, BOEM will retain the bidder’s                    current round. However, there is an
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                                              financial assurance on cost estimates for               $450,000 bid deposit. In such a                       exception. A bidder may switch its live
                                              meeting all accrued lease obligations at                circumstance, BOEM reserves the right                 bid from one lease area to another in the
                                              the respective stages of development.                   to determine which bid would have                     current round only if its bid from the
                                              The required amount of supplemental                     won in the absence of the bid                         previous round was contested—e.g., a
                                              and decommissioning financial                           previously-determined to be the                       bidder cannot switch from OCS–A 0520
                                              assurance will be determined on a case-                 winning bid, and to offer a lease                     to OCS–A 0521 unless there was at least
                                              by-case basis.                                          pursuant to this next highest bid.                    one other live bid for OCS–A 0520 in


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                                              53094                         Federal Register / Vol. 83, No. 203 / Friday, October 19, 2018 / Notices

                                              the last round. If the bid was not                      area will be the highest bid (live bid or             provided to facilitate this process. In the
                                              contested in the previous round, the                    exit bid) received for that lease area,               event that a bidder fails to submit a bid
                                              bidder cannot switch lease areas, and its               except that no bidder may win more                    deposit or does not participate in the
                                              previous round bid will be carried                      than one lease area. The award                        auction, BOEM will de-activate that
                                              forward to the next round. If another                   procedures described here could result                bidder’s tokens and login information,
                                              bidder places a live bid on OCS–A 0520                  in a tie, for example if two bidders                  and the bidder will be asked to return
                                              later in the auction, BOEM will stop                    submit identical high exit bids. In such              its tokens. Under certain circumstances
                                              automatically carrying forward the                      cases, BOEM would resolve the tie by                  (for example, if the authorized bidders
                                              previously uncontested bid on that lease                randomized means subject to the                       are geographically dispersed and the
                                              area. The bidder that placed the                        constraint of no bidder winning more                  ability for the Primary Point of Contact
                                              previously carried forward bid is then                  than one lease area. After the last round             to timely distribute the materials is in
                                              free to bid on that lease area or either                of the auction, there will be a listing of            question), BOEM may send all materials
                                              of the other two lease areas in the next                all scenarios that would generate the                 directly to the authorized bidders
                                              round at the new asking prices. A                       same maximum revenue. This can                        instead of sending to the Primary Point
                                              bidder remains eligible to participate in               include multiple ties. Each of those                  of Contact.
                                              the auction if it submitted a live bid in               scenarios is given an equal probability                  The second package contains login
                                              the prior round, or had a previously                    of winning. The selection of the                      credentials for authorized bidders. The
                                              uncontested live bid carried forward by                 winning scenario is determined by                     login credentials are mailed to the
                                              BOEM to the current round. If a bidder                  pseudorandom numbers.                                 address provided in the BFF for each
                                              decides to stop bidding further when its                   Provisional winners may be                         authorized individual. Bidders can
                                              bid is contested, there are still                       disqualified if they are subsequently                 confirm these addresses by calling 703–
                                              circumstances in which the bidder                       found to have violated auction rules or               787–1320. This package will contain
                                              could win (e.g., if the winning bid is                  BOEM regulations, or otherwise engaged                user login information and instructions
                                              disqualified at the award stage of the                  in conduct detrimental to the integrity               for accessing the Bidder Manual for the
                                              auction). If this happens, the bidder may               of the competitive auction. If a bidder               auction system, the Auction System
                                              be bound by its bid and thus obligated                  submits a bid that BOEM determines to                 Technical Supplement (ASTS) and the
                                              to pay the full bid amount. Bidders may                 be a provisionally winning bid, the                   Alternative Bidding Form, all of which
                                              be bound by any of their bids until the                 bidder will be expected to sign the                   are available on BOEM’s website at:
                                              auction results are finalized.                          applicable lease documents, establish                 https://www.boem.gov/Commercial-
                                                 Between rounds, BOEM will disclose                   financial assurance, and submit the cash              Wind-Leasing/Massachusetts/Lease-
                                              to all bidders that submitted bids in the               balance of its bid (i.e., winning bid                 Sale-4A/. The login information, along
                                              first round of the auction: (1) The                     amount minus the bid deposit) within                  with the tokens, will be tested during
                                              number of live bids (including bids                     10 business days of receiving the lease               the Mock Auction.
                                              carried forward) for each lease area in                 copies, pursuant to 30 CFR 585.224.
                                              the previous round of the auction (i.e.,                                                                      Timing of Auction
                                                                                                      BOEM reserves the right not to issue the
                                              the level of demand); and (2) the asking                lease to the provisionally winning                      The auction will begin at 9:00 a.m.
                                              price for each lease area in the                        bidder if that bidder fails to timely sign            EST on December 13, 2018. Bidders may
                                              upcoming round of the auction.                          and pay for the lease or otherwise                    log in as early as 8:30 a.m. on that day.
                                                 A bidder is only eligible to continue                comply with applicable regulations or                 We recommend that bidders log in
                                              bidding in the auction if it has                        the terms of the FSN. In that case, the               earlier than 9:00 a.m. on that day to
                                              submitted a live bid (or had a bid                                                                            ensure that any login issues are resolved
                                                                                                      bidder would forfeit its bid deposit.
                                              carried forward) in the previous round.                                                                       prior to the start of the auction. Once
                                                                                                      BOEM may consider failure of a bidder
                                              In any round after the first round,                                                                           bidders have logged in, they should
                                                                                                      to timely pay the full amount due to be
                                              however, a bidder may submit an ‘‘exit                                                                        review the auction schedule, which lists
                                                                                                      an indication that the bidder may no
                                              bid’’ (also known as an ‘‘intra-round                                                                         the anticipated start times, end times,
                                                                                                      longer be financially qualified to
                                              bid’’). An exit bid is a bid that is higher                                                                   and recess times of each round in the
                                                                                                      participate in other lease sales under 30
                                              than the previous round’s asking price,                                                                       auction. Each round is structured as
                                                                                                      CFR 585.106 and 585.107.
                                              submitted for the same lease area as the                                                                      follows:
                                              bidder’s contested live bid in the                      Additional Information Regarding the                    • Round bidding begins;
                                              previous round, but less than the                       Auction Format                                          • Bidders enter their bids;
                                              current round’s asking price. An exit bid
                                                                                                      Bidder Authentication                                   • Round bidding ends and the Recess
                                              is not a live bid, and it represents the                                                                      begins;
                                              final bid that a bidder may submit in the                  For the online auction, BOEM will                    • During the Recess, previous Round
                                              auction. During the auction, the exit bid               require two-factor authentication. After              results and next round asking prices are
                                              can only be seen by BOEM, and not by                    BOEM has processed the bid deposits,                  posted;
                                              other bidders.                                          the auction contractor sends several                    • Bidders review the previous Round
                                                 A lease area with only exit bids in a                bidder authentication packages to the                 results and prepare their next Round
                                              given round will not have its asking                    bidders. One package will contain                     bids; and
                                              price raised in the next round, since                   digital authentication tokens needed to                 • Next Round bidding begins.
                                              BOEM only raises asking prices when a                   allow access to the auction website. As                 The first round will last about 30
                                              lease area receives multiple live bids. As              a general practice, tokens are mailed to              minutes, though subsequent rounds may
                                              soon as all three Lease Areas have one                  the Primary Point of Contact indicated                be shorter. Recesses are anticipated to
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                                              or zero live bids (including bids carried               on the BFF. This individual is                        last approximately 10 minutes. The
                                              forward), the auction is over, regardless               responsible for distributing the tokens to            description of the auction schedule
                                              of the number of exit bids on each area.                the individuals authorized to bid for                 included with this FSN is tentative.
                                                 After the bidding ends, BOEM will                    that company. Bidders are to ensure that              Bidders should consult the auction
                                              determine the provisionally winning                     each token is returned within three                   schedule on the bidding website during
                                              bids for each lease area. The                           business days following the auction. An               the auction for updated times. Bidding
                                              provisionally winning bid for a lease                   addressed, stamped envelope will be                   will continue until about 6:00 p.m. EST


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                                                                            Federal Register / Vol. 83, No. 203 / Friday, October 19, 2018 / Notices                                           53095

                                              each day. BOEM anticipates that the                     Alternate Bidding Procedures. BOEM                       2. File financial assurance, as required
                                              auction will last one business day, but                 may, in its sole discretion, permit or                under 30 CFR 585.515–537; and
                                              may be extended for additional business                 refuse to accept a request for the                       3. Pay by electronic funds transfer
                                              days as necessary until the auction is                  placement of a bid using the Alternate                (EFT) the balance (if any) of the bonus
                                              complete.                                               Bidding Procedures.                                   bid (winning bid less the bid deposit).
                                                 BOEM and the auction contractors                        Rejection or Non-Acceptance of Bids:               BOEM requires bidders to use EFT
                                              will use the auction platform messaging                 BOEM reserves the right and authority                 procedures (not pay.gov, the website
                                              service to keep bidders informed on                     to reject any and all bids that do not                bidders used to submit bid deposits) for
                                              issues of interest during the auction. For              satisfy the requirements and rules of the             payment of the balance of the bonus bid,
                                              example, BOEM may change the                            auction, the FSN, or applicable                       following the detailed instructions
                                              schedule at any time, including during                  regulations and statutes.                             contained in the ‘‘Instructions for
                                              the auction. If BOEM changes the                           Anti-Competitive Review: Bidding                   Making Electronic Payments’’ available
                                              schedule during an auction, it will use                 behavior in this sale is subject to                   on BOEM’s website at: https://
                                              the messaging feature to notify bidders                 Federal antitrust laws. Accordingly,                  www.boem.gov/Commercial-Wind-
                                              that a revision has been made, and will                 following the auction, but before the                 Leasing/Massachusetts/Lease-Sale-4A/.
                                              direct bidders to the relevant page.                    acceptance of bids and the issuance of                   BOEM will not execute a lease until
                                              BOEM will also use the messaging                        leases, BOEM will ‘‘allow the Attorney                the three requirements above have been
                                              system for other updates during the                     General, in consultation with the                     satisfied, BOEM has accepted the
                                              auction.                                                Federal Trade Commission, 30 days to                  provisionally winning bidder’s financial
                                                 Bidders may place bids at any time                   review the results of the lease sale.’’ 43            assurance pursuant to 30 CFR 585.515,
                                              during the round. At the top of the                     U.S.C. 1337(c). If a provisionally                    and BOEM has processed the
                                              bidding page, a countdown clock shows                   winning bidder is found to have                       provisionally winning bidder’s
                                              how much time remains in the round.                     engaged in anti-competitive behavior in               payment.
                                              Bidders have until the scheduled time                                                                            BOEM may extend the 10 business
                                                                                                      connection with its participation in the
                                              to place bids. Bidders should do so                                                                           day deadline for signing a lease, filing
                                                                                                      competitive bidding process, BOEM
                                              according to the procedures described                                                                         the required financial assurance, and/or
                                                                                                      may reject its provisionally winning bid.
                                              in this notice, and the ASTS.                                                                                 paying the balance of the bonus bid if
                                                                                                      Compliance with BOEM’s auction
                                              Information about the round results will                                                                      BOEM determines the delay was caused
                                                                                                      procedures and regulations is not an
                                              only be made available after the round                                                                        by events beyond the provisionally
                                                                                                      absolute defense to violations of
                                              has closed, so there is no strategic                                                                          winning bidder’s control.
                                                                                                      antitrust laws.                                          If a provisionally winning bidder does
                                              advantage to placing bids early or late                    Anti-competitive behavior
                                              in the round.                                                                                                 not meet these requirements or
                                                                                                      determinations are fact-specific.                     otherwise fails to comply with
                                                 The ASTS will elaborate on the                       However, such behavior may manifest
                                              auction procedures described in this                                                                          applicable regulations or the terms of
                                                                                                      itself in several different ways,                     the FSN, BOEM reserves the right not to
                                              FSN. In the event of an inconsistency                   including, but not limited to:
                                              between the ASTS and the FSN, the                                                                             issue the lease to that bidder. In such a
                                                                                                         • An express or tacit agreement                    case, the provisionally winning bidder
                                              FSN is controlling.                                     among bidders not to bid in an auction,               will forfeit its bid deposit. Also in such
                                              Prohibition on Communications                           or to bid a particular price;                         a case, BOEM reserves the right to
                                              Between Bidders During Auction                             • An agreement among bidders not to                identify the next highest bid for that
                                                During the auction, bidders are                       bid;                                                  lease area submitted during the lease
                                              prohibited from communicating with                         • An agreement among bidders not to                sale by a bidder who has not won one
                                              each other regarding their participation                bid against each other; or                            of the other lease areas, and to offer the
                                              in the auction. Also during the auction,                   • Other agreements among bidders                   lease to that bidder pursuant to its bid.
                                              bidders are prohibited from                             that have the potential to affect the final              Within 45 calendar days of the date
                                              communicating to the general public                     auction price.                                        that a provisionally winning bidder
                                              regarding any aspect of their                              BOEM will decline to award a lease                 receives copies of the lease, it must pay
                                              participation or lack thereof in the                    pursuant to 43 U.S.C. 1337(c) if the                  the first year’s rent using the pay.gov
                                              auction, including, but not limited to,                 Attorney General, in consultation with                Renewable Energy Initial Rental
                                              through social media, updated websites,                 the Federal Trade Commission,                         Payment form available at: https://
                                              or press releases.                                      determines that awarding the lease                    www.pay.gov/public/form/start/
                                                                                                      would be inconsistent with the antitrust              27797604/.
                                              Alternate Bidding Procedures                            laws.                                                    Subsequent annual rent payments
                                                Alternate Bidding Procedures enable a                    For more information on whether                    must be made following the detailed
                                              bidder who is having difficulty                         specific communications or agreements                 instructions contained in the
                                              accessing the internet to submit its bid                could constitute a violation of Federal               ‘‘Instructions for Making Electronic
                                              via fax using an Alternate Bidding Form                 antitrust law, please see https://                    Payments,’’ available on BOEM’s
                                              available on BOEM’s website at: https://                www.justice.gov/atr/business-resources                website at: https://www.boem.gov/
                                              www.boem.gov/Commercial-Wind-                           or consult legal counsel.                             Commercial-Wind-Leasing/
                                              Leasing/Massachusetts/Lease-Sale-4A/.                      Process for Issuing the Lease: Once all            Massachusetts/Lease-Sale-4A/.
                                                In order to be authorized to use an                   post-auction reviews have been                           Non-Procurement Debarment and
                                              Alternate Bidding Form, a bidder must                   completed to BOEM’s satisfaction,                     Suspension Regulations: Pursuant to
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                                              call the help desk number listed in the                 BOEM will issue three unsigned copies                 regulations at 43 CFR part 42, subpart C,
                                              Auction Manual before the end of the                    of the lease to each provisionally                    an OCS renewable energy lessee must
                                              round. BOEM will authenticate the                       winning bidder. Within 10 business                    comply with the Department of the
                                              caller to ensure he/she is authorized to                days after receiving the lease copies, the            Interior’s non-procurement debarment
                                              bid on behalf of the bidder. The bidder                 provisionally winning bidders must:                   and suspension regulations at 2 CFR 180
                                              must explain the reasons for which he/                     1. Sign and return the lease copies on             and 1400. The lessee must also
                                              she is forced to place a bid using the                  the bidder’s behalf;                                  communicate this requirement to


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                                              53096                         Federal Register / Vol. 83, No. 203 / Friday, October 19, 2018 / Notices

                                              persons with whom the lessee does                        Dated: October 15, 2018.                             postmarked or delivered by this same
                                              business relating to this lease, by                     Walter D. Cruickshank,                                date.
                                              including this term as a condition in                   Acting Director, Bureau of Ocean Energy               ADDRESSES: If you are submitting a
                                              their contracts and other transactions.                 Management.                                           nomination for a lease area in response
                                                 Force Majeure: The Program Manager                   [FR Doc. 2018–22878 Filed 10–18–18; 8:45 am]          to this Call, please submit your
                                              of BOEM’s Office of Renewable Energy                    BILLING CODE 4310–MR–P                                nomination, following the ‘‘Required
                                              Programs has the discretion to change                                                                         Nomination Information’’ section below,
                                              any auction details specified in the FSN,                                                                     to the following address: BOEM, Office
                                              including the date and time, in case of                 DEPARTMENT OF THE INTERIOR                            of Strategic Resources, 760 Paseo
                                              a force majeure event that the Program                                                                        Camarillo (Suite 102), Camarillo,
                                                                                                      Bureau of Ocean Energy Management
                                              Manager deems may interfere with a fair                                                                       California 93010. In addition to a paper
                                              and proper lease sale process. Such                     [Docket No. BOEM–2018–0045]                           copy of the nomination, include an
                                              events may include, but are not limited                                                                       electronic copy of the nomination on a
                                              to: Natural disasters (e.g., earthquakes,               Commercial Leasing for Wind Power                     data storage device. BOEM will list the
                                              hurricanes, floods, blizzards), wars,                   Development on the Outer Continental                  parties that submitted nominations and
                                              riots, acts of terrorism, fire, strikes, civil          Shelf (OCS) Offshore California—Call                  the location of the proposed lease areas
                                              disorder or other events of a similar                   for Information and Nominations (Call)                (i.e., OCS blocks nominated) on the
                                              nature. In case of such events, BOEM                    AGENCY:    Bureau of Ocean Energy                     BOEM website after the comment period
                                              will notify all qualified bidders via                   Management, Interior.                                 has closed.
                                              email, phone, or through the BOEM                       ACTION: Call for Information and                         Comments and other information may
                                              website at: http://www.boem.gov/                        Nominations (hereinafter referred to as               be submitted by either of the following
                                              Renewable-Energy-Program/index.aspx.                    ‘‘Call’’ or ‘‘notice’’) for Commercial                two methods:
                                              Bidders should call 703–787–1320 if                     Leasing for Wind Power Development                       1. Federal eRulemaking Portal: http://
                                              they have concerns.                                     on the OCS offshore California.                       www.regulations.gov. In the entry
                                                 Appeals: The appeals procedures are                                                                        entitled, ‘‘Enter Keyword or ID,’’ enter
                                              provided in BOEM’s regulations at 30                    SUMMARY:    The Bureau of Ocean Energy                BOEM–2018–0045 and then click
                                              CFR 585.225 and 585.118(c). Pursuant                    Management (BOEM) invites the                         ‘‘search.’’ Follow the instructions to
                                              to 30 CFR 585.225:                                      submission of information and                         submit public comments and view
                                                 (a) If BOEM rejects your bid, BOEM                   nominations for commercial wind leases                supporting and related materials
                                              will provide a written statement of the                 that would allow a lessee to propose the              available for this notice.
                                              reasons and refund any money                            construction of a wind energy project on                 2. U.S. Postal Service or other
                                              deposited with your bid, without                        the OCS offshore California, and to                   delivery service. Send your comments
                                              interest.                                               develop one or more projects, if                      and information to the following
                                                                                                      approved, after further environmental                 address: Bureau of Ocean Energy
                                                 (b) You will then be able to ask the                                                                       Management, Office of Strategic
                                                                                                      review. This is not a leasing
                                              BOEM Director for reconsideration, in                                                                         Resources, 760 Paseo Camarillo (Suite
                                                                                                      announcement, but the Call Areas or
                                              writing, within 15 business days of bid                                                                       102), Camarillo, California 93010.
                                                                                                      portions of Call Areas described may be
                                              rejection, under 30 CFR 585.118(c)(1).                                                                           BOEM will post all responses on
                                                                                                      available for future leasing. BOEM will
                                              We will send you a written response                                                                           http://www.regulations.gov. If you wish
                                                                                                      use responses to this Call to gauge
                                              either affirming or reversing the                                                                             to protect the confidentiality of your
                                                                                                      specific interest in acquiring
                                              rejection.                                                                                                    nominations or comments, clearly mark
                                                                                                      commercial wind leases in some or all
                                                 The procedures for appealing final                   of the Call Areas. Any nominations                    the relevant sections and request that
                                              decisions with respect to lease sales are               submitted in response to this Call                    BOEM treat them as confidential. Please
                                              described in 30 CFR 585.118(c).                         should provide detailed and specific                  label privileged or confidential
                                                 Protection of Privileged or                          information addressing the                            information ‘‘Contains Confidential
                                              Confidential Information: BOEM will                     requirements described in the section of              Information,’’ and consider submitting
                                              protect privileged or confidential                      this notice entitled, ‘‘Required                      such information as a separate
                                              information that you submit, as required                Nomination Information.’’                             attachment. Treatment of confidential
                                              by the Freedom of Information Act                         This Call also requests comments and                information is addressed in the section
                                              (FOIA). Exemption 4 of FOIA applies to                  information regarding site conditions,                of this Call entitled, ‘‘Protection of
                                              ‘‘trade secrets and commercial or                       resources, and multiple uses in close                 Privileged or Confidential Information.’’
                                              financial information that you submit                   proximity to, or within, the Call Areas               Information that is not labeled as
                                              that is privileged or confidential.’’ 5                 that would be relevant to BOEM’s                      privileged or confidential will be
                                              U.S.C. 552(b)(4).                                       review of the nominations or to any                   regarded by BOEM as suitable for public
                                                 If you wish to protect the                           subsequent decision whether to offer all              release.
                                              confidentiality of such information,                    or part of the Call Areas for commercial              FOR FURTHER INFORMATION CONTACT: Jean
                                              clearly mark it ‘‘Contains Privileged or                wind leasing. In providing this                       Thurston, BOEM California
                                              Confidential Information’’ and consider                 information, please refer to the section              Intergovernmental Renewable Energy
                                              submitting such information as a                        of this Call entitled, ‘‘Requested                    Task Force Coordinator, BOEM, Office
                                              separate attachment. BOEM will not                      Information from Interested or Affected               of Strategic Resources, 760 Paseo
                                              disclose such information, except as                    Parties.’’                                            Camarillo (Suite 102), Camarillo,
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                                              required by FOIA. Information that is                   DATES: BOEM must receive nominations                  California 93010, (805) 384–6303 or
                                              not labeled as privileged or confidential               describing your interest in one or more,              jean.thurston@boem.gov.
                                              may be regarded by BOEM as suitable                     or any portion of, the Call Areas, by a               SUPPLEMENTARY INFORMATION:
                                              for public release. Further, BOEM will                  postmarked date of January 28, 2019 for
                                              not treat as confidential aggregate                     your nomination to be considered.                     Authority
                                              summaries of otherwise confidential                     BOEM requests comments or                               This Call is published pursuant to
                                              information.                                            submissions of information to be                      section 8(p)(3) of the Outer Continental


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Document Created: 2018-10-19 01:26:15
Document Modified: 2018-10-19 01:26:15
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 Sale Notice for Commercial Leasing for Wind Power on the Outer Continental Shelf Offshore Massachusetts.
DatesBOEM will hold a mock auction for the bidders starting at 9:00 a.m. Eastern Standard Time (EST) on December 11, 2018. The monetary auction will be held online and will begin at 9:00 a.m. EST on December 13, 2018. Additional details are provided in the section entitled ``Deadlines and Milestones for Bidders.''
ContactJeff Browning, BOEM, Office of Renewable Energy Programs, 45600 Woodland Road, VAM-OREP, Sterling, Virginia 20166, (703) 787-1577 or [email protected]
FR Citation83 FR 53089 

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