[Federal Register Volume 64, Number 29 (Friday, February 12, 1999)]
[Notices]
[Pages 7486-7487]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-3729]
[[Page 7485]]
_______________________________________________________________________
Part XII
Department of the Interior
_______________________________________________________________________
Minerals Management Service
_______________________________________________________________________
Outer Continental Shelf, Central Gulf of Mexico, Oil and Gas Lease Sale
172; Notice
Outer Continental Shelf, Central Gulf of Mexico; Bidding Systems, Sale
172; Notice
Federal Register / Vol. 64, No. 29 / Friday, February 12, 1999 /
Notices
[[Page 7486]]
DEPARTMENT OF THE INTERIOR
Minerals Management Service
Outer Continental Shelf, Central Gulf of Mexico, Oil and Gas
Lease Sale 172
ACTION: Final notice of sale 172.
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On March 17, 1999, the Minerals Management Service (MMS) will open
and publicly announce bids received for blocks offered in Sale 172,
Central Gulf of Mexico, pursuant to the Outer Continental Shelf (OCS)
Lands Act (43 U.S.C. 1331-1356, as amended) and the regulations issued
thereunder (30 CFR Part 256). Bidders can obtain a ``Final Notice of
Sale 172 Package'' containing this Notice of Sale and several
supporting and essential documents referenced herein, from the MMS Gulf
of Mexico Region's Public Information Unit, 1201 Elmwood Park
Boulevard, New Orleans, Louisiana 70123-2394, (504) 736-2519 or (800)
200-GULF, or via the MMS Gulf of Mexico Region's Internet site at
http://www.gomr.mms.gov. The MMS also maintains a 24-hour Fax-on-Demand
Service at (202) 219-1703. The ``Final Notice of Sale 172 Package''
contains information essential to bidders, and bidders are charged with
the knowledge of the documents contained in the package.
Location and Time
Public bid reading will begin at 9 a.m., Wednesday, March 17, 1999,
at the Hyatt Regency Conference Center (Cabildo Rooms), 500 Poydras
Plaza, New Orleans, Louisiana. All times referred to in this document
are local New Orleans time.
Filing of Bids
Bidders must submit sealed bids to the Regional Director (RD), MMS
Gulf of Mexico Region, 1201 Elmwood Park Boulevard, New Orleans,
Louisiana 70123-2394, during normal business hours (8 a.m. to 4 p.m.)
prior to the Bid Submission Deadline at 10 a.m., Tuesday, March 16,
1999. If the RD receives bids later than the time and date specified
above, he will return the bids unopened to bidders. Bidders may not
modify or withdraw their bids unless the RD receives a written
modification or written withdrawal request prior to 10 a.m., Tuesday,
March 16, 1999. In the event of widespread flooding or other natural
disaster, the MMS Gulf of Mexico Regional Office may extend the bid
submission deadline. Bidders may call (504) 736-0537 for information
about the possible extension of the bid submission deadline due to such
an event.
Areas Offered for Leasing
The MMS is offering for leasing all the blocks and partial blocks
listed in the document ``Blocks Available for Leasing in Gulf of Mexico
OCS Oil and Gas Lease Sale 172'' included in the Sale Notice Package.
All of these blocks are shown on the following Leasing Maps and
Official Protraction Diagrams (which may be purchased from the MMS Gulf
of Mexico Regional Office Public Information Unit).
Outer Continental Shelf Leasing Maps--Louisiana Nos. 1 through 12.
This is a set of 30 maps which sells for $32.
Outer Continental Shelf Official Protraction Diagrams (these
diagrams sell for $2.00 each):
NH 15-12 Ewing Bank (rev. 12/02/76).
NH 16-4 Mobile (rev. 02/23/93).
NH 16-7 Viosca Knoll (rev. 12/02/76).
NH 16-10 Mississippi Canyon (rev. 05/01/96).
NG 15-3 Green Canyon (rev. 12/02/76).
NG 15-6 Walker Ridge (rev. 12/02/76).
NG 15-9 (No Name) (rev. 04/27/89).
NG 16-1 Atwater Valley (rev. 11/10/83).
NG 16-4 Lund (rev. 08/22/86).
NG 16-7 (No Name) (rev. 04/27/89).
Acreage of all blocks is shown on these Leasing Maps and Official
Protraction Diagrams. Available Federal acreage of blocks available in
this sale is shown in the document ``Blocks Available for Leasing in
the Central Gulf of Mexico OCS Oil and Gas Lease Sale 172'' included in
the Sale Notice Package. Some of these blocks may be partially leased
or transected by administrative lines such as the Federal/State
jurisdictional line. Information on the unleased portions of such
blocks, including the exact acreage, is found in the document titled
``Central Gulf of Mexico Lease Sale 172--Unleased Split Blocks and
Unleased Acreage of Blocks with Aliquots and Irregular Portions Under
Lease,'' included in the Sale Notice Package.
Areas Not Available for Leasing
The following blocks in the Central Gulf of Mexico Planning Area
are not available for leasing:
Blocks currently under lease; and the following unleased blocks or
partial blocks:
Main Pass Area, South and East Addition, Blocks 253 and 254; and
Viosca Knoll Blocks 213 and 256 (which are currently under appeal); and
the following blocks which are beyond the United States Exclusive
Economic Zone and have been temporarily deferred from leasing by the
Department of the Interior due to ongoing negotiations with the
Government of Mexico:
Area NG 15-9
Blocks
133 through 135
177 through 184
221 through 238
265 through 281
309 through 320
358
Area NG 16-7
Blocks
172, 173
213 through 217
252 through 261
296 through 305
349
Leasing Terms and Conditions
Primary lease terms, minimum bids, annual rental rates, royalty
rates, and royalty suspension areas are shown on the map ``Lease Terms
and Economic Conditions, Sale 172, Final'' for leases resulting from
this sale:
Primary lease terms: 5 years for blocks in water depths of less
than 400 meters; 8 years for blocks in water depths of 400 to 799
meters; and 10 years for blocks in waters depths of 800 meters or
deeper;
Minimum bids: $25 per acre or fraction thereof for blocks in water
depths of less than 800 meters and $37.50 per acre or fraction thereof
for blocks in water depths of 800 meters or deeper (the minimum bid for
each available block has been calculated and is shown in the document
``Blocks Available for Leasing in Gulf of Mexico OCS Oil and Gas Lease
Sale 172'' included in the Sale Notice Package);
Annual rental rates: $5 per acre or fraction thereof for blocks in
water depths of less than 200 meters and $7.50 per acre or fraction
thereof for blocks in water depths of 200 meters or deeper, until
initial production is obtained;
Royalty rates: 16\2/3\% royalty rate for blocks in water depths of
less than 400 meters and a 12\1/2\% royalty rate for blocks in waters
depths of 400 meters or deeper, except during periods of royalty
suspension;
Royalty Suspension Areas: Royalty suspension may apply for blocks
in water depths of 200 meters or deeper; see the map for specific
areas. See 30 CFR 203 for the final rule specifying royalty suspension
terms.
The map titled ``Stipulations and Deferred Blocks, Sale 172,
Final'' depicts the blocks where the Topographic Features, Live
Bottoms, Military Areas, and Blocks South of Baldwin County, Alabama,
stipulations apply. The texts of the lease stipulations
[[Page 7487]]
are contained in the document ``Lease Stipulations for Oil and Gas
Lease Sale 172, Final'' included in the Final Sale Notice Package. Also
shown on this map are the deferred blocks noted above.
Rounding
The following procedure must be used to calculate minimum bid,
rental, and minimum royalty on blocks with fractional acreage: Round up
to the next whole acre and multiply by the applicable dollar amount to
determine the correct minimum bid, rental, or minimum royalty.
Note: For the minimum bid only, if the calculation results in a
decimal figure, round up to the next whole dollar amount (see next
paragraph). The minimum bid calculation, including all rounding, is
shown in the document ``Blocks Available for Leasing in Gulf of
Mexico OCS Oil and Gas Lease Sale 172'' included in the Sale Notice
Package.
Method of Bidding
For each block bid upon, a bidder must submit a separate signed bid
in a sealed envelope labeled ``Sealed Bid for Oil and Gas Lease Sale
172, not to be opened until 9 a.m., Wednesday, March 17, 1999.'' The
total amount bid must be in a whole dollar amount; any cent amount
above the whole dollar will be ignored by the MMS. Details of the
information required on the bid(s) and the bid envelope(s) are
specified in the document ``Bid Form and Envelope'' contained in the
Sale Notice Package. The MMS published a list of restricted joint
bidders, which applies to this sale, in the Federal Register at 63 FR
53097, on October 2, 1998. Bidders must execute all documents in
conformance with signatory authorizations on file in the MMS Gulf of
Mexico Regional Office. Partnerships also must submit or have on file a
list of signatories authorized to bind the partnership. Bidders
submitting joint bids must state on the bid form the proportionate
interest of each participating bidder, in percent to a maximum of five
decimal places, e.g., 33.33333 percent. The MMS may require bidders to
submit other documents in accordance with 30 CFR 256.46. The MMS warns
bidders against violation of 18 U.S.C. 1860 prohibiting unlawful
combination or intimidation of bidders. Bidders are advised that the
MMS considers the signed bid to be a legally binding obligation on the
part of the bidder(s) to comply with all applicable regulations,
including paying the \1/5\th bonus on all high bids. A statement to
this effect must be included on each bid (see the document ``Bid Form
and Envelope'' contained in the Sale Notice Package).
Bid Deposit
Bidders will have the option of submitting the \1/5\th cash bonus
by cashier's check, bank draft, or certified check with the bid, or by
using electronic funds transfer (EFT) procedures. Detailed instructions
for submitting the \1/5\th bonus payment by EFT are contained in the
document ``Instructions for Making EFT \1/5\th Bonus Payments''
included in the Sale Notice Package. Any payments will be deposited by
the Government in an interest-bearing account in the U.S. Treasury
during the period the bids are being considered. Such a deposit does
not constitute and shall not be construed as acceptance of any bid on
behalf of the United States.
Withdrawal of Blocks
The United States reserves the right to withdraw any block from
this sale prior to issuance of a written acceptance of a bid for the
block.
Acceptance, Rejection, or Return of Bids
The United States reserves the right to reject any and all bids. In
any case, no bid will be accepted, and no lease for any block will be
awarded to any bidder, unless the bidder has complied with all
requirements of this Notice, including the documents contained in the
associated Sale Notice Package and applicable regulations; the bid is
the highest valid bid; and the amount of the bid has been determined to
be adequate by the authorized officer. Any bid submitted which does not
conform to the requirements of this Notice, the OCS Lands Act, as
amended, and other applicable regulations may be returned to the person
submitting that bid by the RD and not considered for acceptance. To
ensure that the Government receives a fair return for the conveyance of
lease rights for this sale, high bids will be evaluated in accordance
with MMS bid adequacy procedures. A copy of the current procedures
(``Summary of Procedures for Determining Bid Adequacy at Offshore Oil
and Gas Lease Sales: Effective March 1999, with Sale 172'') is
available from the MMS Gulf of Mexico Regional Office Public
Information Unit.
Successful Bidders
The MMS will require each person who has submitted a bid accepted
by the authorized officer to execute copies of the lease (Form MMS-2005
(March 1986) as amended), pay the balance of the cash bonus bid along
with the first year's annual rental for each lease issued by EFT in
accordance with the requirements of 30 CFR 218.155, and satisfy the
bonding requirements of 30 CFR 256, Subpart I, as amended. Each person
involved as a bidder in a successful high bid must have on file, in the
MMS Gulf of Mexico Regional Office Adjudication Unit, a currently valid
certification that the person is not excluded from participation in
primary covered transactions under Federal nonprocurement programs and
activities. A certification previously provided to that office remains
currently valid until new or revised information applicable to that
certification becomes available. In the event of new or revised
applicable information, the MMS will require a subsequent certification
before lease issuance can occur. Persons submitting such certifications
should review the requirements of 43 CFR, Part 12, Subpart D. A copy of
the certification form is contained in the Sale Notice Package.
Equal Opportunity
The certification required by 41 CFR 60-1.7(b) and Executive Order
No. 11246 of September 24, 1965, as amended by Executive Order No.
11375 of October 13, 1967, on the Compliance Report Certification Form,
Form MMS-2033 (June 1985), and the Affirmative Action Representation
Form, Form MMS-2032 (June 1985) must be on file in the MMS Gulf of
Mexico Regional Office prior to lease award.
Information to Lessees
The Sale Notice Package contains a document titled ``Information to
Lessees.'' These Information to Lessees items provide information on
various matters of interest to potential bidders.
Cynthia Quarterman,
Director, Minerals Management Service.
Approved: February 10, 1999.
Sylvia V. Baca,
Acting Assistant Secretary, Land and Minerals Management.
[FR Doc. 99-3729 Filed 2-11-99; 9:48 am]
BILLING CODE 4310-MR-P
