[Federal Register Volume 63, Number 30 (Friday, February 13, 1998)]
[Notices]
[Pages 7481-7484]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-3532]
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DEPARTMENT OF THE INTERIOR
Minerals Management Service
Outer Continental Shelf, Central Gulf of Mexico, Oil and Gas
Lease Sale 169
AGENCY: Minerals Management Service.
ACTION: Final notice of sale.
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1. Authority. The Minerals Management Service (MMS) is issuing this
Final Notice of Sale under the Outer Continental Shelf (OCS) Lands Act
(43 U.S.C. 1331-1356, as amended) and the regulations issued thereunder
(30 CFR Part 256).
A ``Sale Notice Package,'' containing this Notice and several
supporting and essential documents referenced in the Notice, is
available from the MMS Gulf of Mexico Regional Office Public
Information Unit (see paragraph 15 of this Notice).
2. Filing of Bids. Bidders must comply with the following
requirements. Times specified hereafter are local New Orleans times
unless otherwise indicated.
(a) Filing of Bids. Sealed bids must be received by the Regional
Director (RD), Gulf of Mexico Region, MMS, 1201 Elmwood Park Boulevard,
New Orleans, Louisiana 70123-2394, during normal business hours (8 a.m.
to 4 p.m.) until the Bid Submission Deadline at 10 a.m., Tuesday, March
17, 1998. 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 17, 1998.
(b) Bid Opening Time. Bid Opening Time will be 9 a.m., Wednesday,
March 18, 1998, at the Hyatt Regency Hotel, 500 Poydras Plaza, New
Orleans, Louisiana. The MMS published a list of restricted joint
bidders, which applies to this sale, in the Federal Register at 62 FR
52771, on October 9, 1997.
(c) Natural Disasters. 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.
3. Method of Bidding.
(a) Submission of Bids. For each tract bid upon, a bidder must
submit a separate signed bid in a sealed envelope labeled ``Sealed Bid
for Oil and Gas Lease Sale 169, not to be opened until 9 a.m.,
Wednesday, March 18, 1998.'' 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 (see paragraph 15 of this Notice).
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 will be included on each bid (see
the document ``Bid Form and Envelope'' contained in the Sale Notice
Package).
Bidders must execute all document 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.
(b) Submission of the \1/5\th Bonus Payment. Bidders must submit
the \1/5\th cash bonus using one of the following options:
[[Page 7482]]
(1) Bidders may submit with each bid \1/5\th of the cash bonus, in
cash or by cashier's check, bank draft, or certified check, payable to
the order of the U.S. Department of the Interior--Minerals Management
Service. For identification purposes, the following information must
appear on the check or draft: Company name, GOM Company Number, and the
area and block bid on (abbreviation acceptable); or
(2) Bidders may use electronic funds transfer (EFT) payment for \1/
5\th of the cash bonus, payable to the Minerals Management Service.
Bidders who choose this method must contact the MMS Royalty Management
(Mr. David Menard at (303) 231-3574) by the Bid Submission Deadline to
inform the MMS of the bidder's intent to use EFT, to clarify EFT
procedures to be used, and to designate an EFT Coordinator. Joint
bidders must designate one bidder as EFT Coordinator. The EFT
Coordinator refers to the bidder, i.e., the corporation, company, or
partnership submitting the bid(s), or an individual citizen submitting
bids on his or her own behalf (NOT an individual within a corporation/
company/partnership) for an OCS Lease Sale. EFT Coordinators must
submit the bids and ensure that the total of the \1/5\th cash bonus for
the high bids they submit is transferred to the MMS via EFT. The EFT
payment shall be made by either the Fedwire Deposit System (same day
payments) or the Automated Clearing House (overnight payments).
The Gulf of Mexico OCS Regional Office will advise bidders who
submit high bids of the amount required for EFT payment. Promptly after
notification, the EFT Coordinators must instruct their banks to send
via EFT the sum of the \1/5\th bonus for all high bids to the
appropriate United States Treasury account. Instructions for making EFT
\1/5\th bonus payments are included in the Sale Notice Package. [These
procedures/instructions are consistent with \4/5\th bonus and first
year rental payment procedures using EFT.]
Securing EFT payments. Bidders electing to use EFT procedures to
pay the \1/5\th bonus payments, EXCEPT for bidders who are current
Federal OCS leaseholders AND are exempt from supplemental bonding
requirements, must secure the EFT payments (see ``Instructions for
Making EFT \1/5\th Bonus Payments'' included with the Sale Notice
Package).
A bidder opting to use EFT for the \1/5\th bonus payment who does
not meet the above criteria must secure the EFT payment by one of the
three following methods:
(a) The bidder opting to use EFT for the \1/5\th bonus payment may
amend a $3 million areawide development bond by a Rider from the
issuing surety to contain provisions that the bond may be used to cover
pre-lease obligations. All other terms and conditions for the bond
shall remain unchanged. The Rider must be notarized and must be in
effect prior to submitting bids for OCS Lease Sale 169. If the $3
million areawide development coverage is through a U.S. Treasury Note
then a notarized letter from the bidder agreeing to the terms that the
Treasury Note may be used to cover pre-lease obligations must be
approved by the MMS prior to bid submission for Sale 169. That
provision must remain in effect until the EFT deposit is made. Details
of using an updated areawide development bond to secure the EFT payment
of the \1/5\th bonus are included in the ``Instructions for Making EFT
\1/5\th Bonus Payments'' document included with the Sale Notice
Package.
The EFT payment for \1/5\th of the sum of the high bids on blocks
must be received in the appropriate United States Treasury account no
later than 2:00 p.m., Eastern Time, on March 19, 1998, the day after
Bid Opening.
If the EFT payments are late or deficient in amount after 5:00
p.m., Eastern Time, on March 20, 1998, the MMS may call the bond/
Treasury Note to cover the delinquent payment plus interest.
(b) The bidder opting to use EFT for the \1/5\th bonus payment may
submit in a separate sealed envelope accompanying the bids, a letter of
credit (LOC) for at least \1/5\th of the sum of all bids submitted by
that bidder for Sale 169, including joint bids. A sample LOC is
enclosed in the ``Instructions for Making EFT \1/5\th Bonus Payments''
document included with the Sale Notice Package. The bidder must use
that sample clean, stand-by, irrevocable LOC with no modifications.
The LOC must have a minimum coverage period of 120 days. The LOC
must be from a bank that has a minimum Thomson BankWatch rating of:
``C'' for an LOC of less than $1 million; ``B/C'' for an LOC between $1
million to $10 million; or ``B'' for LOC over $10 million.
The LOC shall be submitted in a separate sealed envelope. Once the
EFT payment in an amount sufficient to cover that bidder's high bids is
credited to the appropriate United States Treasury account, the LOC
accompanying those bids will be returned or may be picked up at the
Gulf of Mexico Regional Office. Details of using an LOC to secure the
EFT payment of the \1/5\th bonus are included in the ``Instructions for
Making EFT \1/5\th Bonus Payments'' included with the Sale Notice
Package. The envelope containing this LOC document should be in the
following format:
LETTER OF CREDIT SECURING EFT PAYMENTS
Submitted by: Explorer LTD.
GOM Company No.: 20999
The EFT payment for \1/5\th of the sum of the high bids on blocks
must be received in the appropriate United States Treasury account no
later than 2:00 p.m., Eastern Time, on March 19, 1998, the day after
Bid Opening.
If the EFT payments are late or deficient in amount after 5:00
p.m., Eastern Time, on March 20, 1998, the MMS will draw on the LOC for
the total amount due, including interest.
(c) Alternatively, the bidder opting to use EFT for depositing the
\1/5\th bonus payment may submit, in a separate sealed envelope
accompanying the bids, a single payment for \1/5\th of the sum of all
bids submitted by that bidder for Sale 169, including joint bids. The
lump sum payment(s) in the sealed envelope(s) must be by cashier's
check, bank draft, or certified check, payable to the order of the U.S.
Department of the Interior--Minerals Management Service. Once the EFT
payment in an amount sufficient to cover that bidder's high bids is
credited to the appropriate United States Treasury account, the lump
sum payment accompanying those bids will be returned or may be picked
up at the Gulf of Mexico Regional Office. Details of using lump sum
check(s) to secure the EFT payment of the \1/5\th bonus are included in
the ``Instructions for Making EFT \1/5\th Bonus Payments'' included
with the Sale Notice Package. The envelope containing this payment
should be in the following format:
LUMP SUM CHECK SECURING EFT PAYMENTS
Submitted by: Explorer LTD.
GOM Company No.: 20999
The EFT payment for \1/5\th of the sum of the high bids on blocks
must be received in the appropriate United States Treasury account no
later than 2:00 p.m., Eastern Time, on March 19, 1998, the day after
Bid Opening.
If the EFT payments are late or deficient in amount after 5:00
p.m., Eastern Time, on March 20, 1998, the MMS will deposit lump sum
payments accompanying the bids into the appropriate United States
Treasury account. Should these payments (which secure both high bids
and unsuccessful bids) require a refund to the bidders, the MMS will
refund the difference without
[[Page 7483]]
interest, through EFT as soon as practicable.
4. Minimum Bid, Yearly Rental, and Bidding Systems. The following
minimum bid, yearly rental, and bidding systems apply to this sale:
(a) Minimum Bid. Bidders must submit a cash bonus in the amount of
$25.00 or more per acre or fraction thereof with all bids submitted at
this sale.
(b) Yearly Rental. All leases awarded on tracts in water depths of
200 meters and greater (i.e., tracts in any of the three royalty
suspension areas), as depicted on the map ``Lease Terms, Bidding
Systems, and Royalty Suspension Areas, Sale 169,'' will require a
yearly rental payment of $7.50 per acre or fraction thereof until
initial production is obtained. This map is included in the Sale Notice
Package.
All leases awarded on other tracts (i.e., those in water depths of
less than 200 meters) will provide for a yearly rental payment of $5.00
per acre or fraction thereof until initial production is obtained.
(c) Bidding Systems. After initial production is obtained, leases
will require a minimum royalty of the amount per acre or fraction
thereof as specified as the yearly rental in paragraph 4(b) above,
except during periods of royalty suspension as discussed in paragraph
4(c)(3) of this Notice. The following royalty systems will be used in
this sale:
(1) Leases with a 12\1/2\-Percent Royalty. This royalty rate
applies to tracts in water depths of 400 meters or greater; this area
is shown on the Map ``Lease Terms, Bidding Systems, and Royalty
Suspension Areas, Sale 169'' applicable to this Notice (see paragraph
13). Leases issued on the tracts offered in this area will have a fixed
royalty rate of 12\1/2\ percent, except during periods of royalty
suspension (see paragraph 4(c)(3) of this Notice).
(2) Leases with a 16\2/3\-Percent Royalty. This royalty rate
applies to tracts in water depths of less than 400 meters (see
aforementioned map). Leases issued on the tracts offered in this area
will have a fixed rate of 16\2/3\ percent, except during periods of
royalty suspension for leases in water depths 200 meters or greater
(see paragraph 4(c)(3) of this Notice).
(3) Royalty Suspension. In accordance with Public Law 104-58,
signed by the President on November 28, 1995, the MMS has developed
procedures providing for the suspension of royalty payments on
production from eligible leases issued as a result of this sale.
A map titled ``Lease Terms, Bidding Systems, and Royalty Suspension
Areas, Sale 169'' depicting blocks in which such suspensions may apply
is included in the Sale Notice Package.
The final rule specifying royalty suspension terms for lease sales
in the Central and Western Gulf was published in the Federal Register
on January 16, 1998 (63 FR 2626). Additional information pertaining to
royalty suspension matters may be found in the document ``Information
to Lessees,'' contained in the Sale Notice Package.
5. Equal Opportunity. Bidders must have on file in the MMS Gulf of
Mexico Regional Office, prior to lease award, 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) (see the document ``Information to Lessees for Sale 169'' in the
Sale Notice Package).
6. Bid Opening. Bid opening will begin at the bid opening time
stated in paragraph 2. The opening of the bids is for the sole purpose
of publicly announcing bids received, and no bids will be accepted or
rejected at that time.
7. Deposit of Payment. Any payments made in accordance with
paragraph 3(b) above 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.
8. Withdrawal of Tracts. The United States reserves the right to
withdraw any tract from this sale prior to issuance of a written
acceptance of a bid for the tract.
9. 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 tract will be awarded to any bidder,
unless:
(a) the bidder has complied with all requirements of this Notice,
including the documents contained in the associated Sale Notice Package
(see paragraph 15 of this Notice) and applicable regulations;
(b) the bid is the highest valid bid; and
(c) the amount of the bid has been determined to be adequate by the
authorized officer.
No bonus bid will be considered for acceptance unless it provides
for a cash bonus in the amount of $25.00 or more per acre or fraction
thereof. Any bid submitted which does not conform to the requirements
of this Notice, the associated Sale Notice Package, 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, tracts will be evaluated in
accordance with established 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 August 1997,
with Sale 168'') is available from the MMS Gulf of Mexico Regional
Office Public Information Unit (see paragraph 15 of this Notice). This
document incorporates changes announced in a Federal Register Notice at
62 FR 37589, dated July 14, 1997.
10. Successful Bidders. The following requirements apply to
successful bidders in this sale:
(a) Lease Issuance. 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.
Additional information pertaining to this matter may be found in
the document ``Information to Lessees'' contained in the Sale Notice
Package.
(b) Certification Regarding Nonprocurement Debarment, Suspension,
and Other Responsibility Matters--Primary Covered Transactions. 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, as amended in the Federal Register of June 26,
1995, at 60 FR 33035.
A copy of the certification form is contained in the Sale Notice
Package.
[[Page 7484]]
11. Leasing Maps and Official Protraction Diagrams. The following
Leasing Maps or Official Protraction Diagrams, which may be purchased
from the MMS Gulf of Mexico Regional Office Public Information Unit
(see the document ``Information to Lessees'' contained in the Sale
Notice Package), depict the tracts offered for lease in this sale:
(a) Outer Continental Shelf (OCS) Leasing Maps--Louisiana Nos. 1
through 12. This is a set of 30 maps which sells for $32.
(b) 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).
12. Description of the Areas Offered for Bids.
(a) Acreage Available for Leasing. Acreage of blocks is shown on
Leasing Maps and Official Protraction Diagrams. Some of these blocks,
however, 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
included in the document:
``Central Gulf of Mexico Lease Sale 169--Final. Unleased Split
Blocks and Unleased Acreage of Blocks with Aliquots and Irregular
Portions Under Lease.''
The Sale Notice Package contains this document.
(b) Tracts not available for leasing: The areas offered for leasing
include all those blocks shown on the OCS Leasing Maps and Official
Protraction Diagrams listed in paragraph 11(a) and (b), except for
those blocks or partial blocks already under lease and those blocks or
partial blocks listed below. A list of Central Gulf of Mexico tracts
currently under lease, titled ``Central Gulf of Mexico Leased Lands
List dated February 6, 1998'' is included in the Sale Notice Package.
Although currently unleased, no bids will be accepted in this Sale
on the following blocks which are currently under appeal: Main Pass
Area, South and East Addition, Blocks 253 and 254, and Viosca Knoll
Blocks 213 and 256.
Although currently unleased, no bids will be accepted in this Sale
on the following blocks which are beyond the United States Exclusive
Economic Zone. The offering of these blocks, which were identified in
the proposed Notice of Sale as the Northern portion of the Western and
Eastern Gaps, has been temporarily deferred by the Department of the
Interior in anticipation of the early commencement of negotiations with
the Government of Mexico on the delimitation of the continental shelf
in the Western Gap beyond the EEZ of both countries.
Area NG15-09
Blocks
133 through 135
177 through 184
221 through 238
265 through 281
309 through 320
358
Area NG16-07
Blocks
172, 173
213 through 217
252 through 261
296 through 305
349
13. Lease Terms and Stipulations.
(a) Leases resulting from this sale will have initial terms as
shown on the map ``Lease Terms, Bidding Systems, and Royalty Suspension
Areas, Sale 169.'' Copies of the map are included in the Sale Notice
Package. Copies of the lease form are available from the MMS Gulf of
Mexico Regional Office Public Information Unit (see the document
``Information to Lessees'' contained in the Sale Notice Package).
(b) The map titled ``Stipulations and Deferred Blocks, Sale 169''
depicts the blocks to which the four lease stipulations (Topographic
Features, Live Bottoms, Military Areas, and Blocks South of Baldwin
County, Alabama) apply. The text of the lease stipulations is contained
in the document ``Lease Stipulations for Oil and Gas Lease Sale 169;''
this map and document are contained in the Sale Notice Package. These
stipulations will become a part of any leases on applicable blocks
resulting from Sale 169. Three of the stipulations (Topographic
Features, Live Bottoms, and Military Areas) are the same stipulations
used in Sale 166, Central Gulf, held in March 1997. (See the Final
Notice of Sale for Sale 166 in the Federal Register at 62 FR 4789,
January 31, 1997.)
14. 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.
15. Sale Notice Package. The Sale Notice Package, and individual
documents contained therein, are available from the Public Information
Unit, Minerals Management Service, 1201 Elmwood Park Boulevard, New
Orleans, Louisiana 70123-2394, either in writing or by telephone at
(504) 736-2519 or (800) 200 -GULF.
The documents referenced below and contained in the Sale Notice
Package contain information essential for bidders, and bidders are
charged with the knowledge contained therein. Included in the Package
are:
Cover sheet
Final Notice of Sale for Sale 169
Information to Lessees for Sale 169
Central Gulf of Mexico Leased Lands List dated February 6, 1998
Central Gulf of Mexico Lease Sale 169--Final. Unleased Split Blocks and
Unleased Acreage of Blocks with Aliquots and Irregular Portions Under
Lease
Lease Stipulations for Oil and Gas Lease Sale 169
Debarment Certification Form
Bid Form and Envelope
Phone Numbers/Addresses of Bidders Form
Instructions for Making EFT \1/5\th Bonus Payment
Lease Terms, Bidding Systems, and Royalty Suspension Areas, Sale 169
Map
Stipulations and Deferred Blocks, Sale 169 Map
For additional information, contact the Regional Supervisor for
Leasing and Environment, Minerals Management Service, 1201 Elmwood Park
Boulevard, New Orleans, Louisiana 70123-2394, or by telephone at (504)
736-2759. In addition, certain documents may be viewed and downloaded
from the MMS World Wide Web site at http://www.mms.gov. The MMS also
maintains a 24-hour Fax-on-Demand Service at (202) 219-1703.
Dated: February 6, 1998.
Robert E. Brown,
Acting Director, Minerals Management Service.
Bob Armstrong,
Assistant Secretary, Land and Minerals Management.
[FR Doc. 98-3532 Filed 2-12-98; 8:45 am]
BILLING CODE 4310-MR-M
