97-10472. Outer Continental Shelf Cook Inlet; Notice of Leasing Systems, Sale 149

[Federal Register Volume 62, Number 78 (Wednesday, April 23, 1997)]
[Notices]
[Page 19808]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-10472]



[[Page 19808]]

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DEPARTMENT OF THE INTERIOR

Minerals Management Service


Outer Continental Shelf Cook Inlet; Notice of Leasing Systems, 
Sale 149

    Section 8(a)(8) (43 U.S.C. 1337(a)(8)) of the Outer Continental 
Shelf Lands Act (OCSLA) requires that, at least 30 days before any 
lease sale, a Notice be submitted to the Congress and published in the 
Federal Register:

    This Notice is published pursuant to these requirements.
    1. Identifying the bidding systems to be used and the reasons 
for such use; and
    2. Designating the tracts to be offered under each bidding 
system and the reasons for such designation.

    This notice is published pursuant to these requirements.
    1. Bidding systems to be used. In the Outer Continental Shelf (OCS) 
Sale 149, blocks will be offered under the following bidding system as 
authorized by section 8(a)(1) (43 U.S.C. 1337(a)(1)), as amended: bonus 
bidding with a fixed 12\1/2\-percent royalty.
    a. Bonus Bidding with a 12\1/2\-Percent Royalty. This system is 
authorized by section (8)(a)(1)(A) of the OCSLA, as amended. This 
system has been chosen for all blocks proposed for Sale 149 because 
these blocks are expected to have high exploration, development, and 
production costs.
    The Department of the Interior analyses indicate that the minimum 
economically developable discovery on a block in such high-cost areas 
under a 12\1/2\-percent royalty system would be less than for the same 
block under a 16\2/3\-percent royalty system. As a result, more blocks 
may be explored and developed. In addition, the lower royalty rate 
system is expected to encourage more rapid production and higher 
economic profits. It is not anticipated, however, that the larger cash 
bonus bid associated with a lower royalty rate will significantly 
reduce competition, as the higher costs for exploration and development 
are the primary constraints to competition.
    2. Designation of Blocks. All blocks in this lease sale will be 
offered under a 12\1/2\-percent royalty system because that system is 
most appropriate to the resource levels and costs expected in this sale 
area.
    Dated: April 16, 1997.
Cynthia Quarterman,
Director, Minerals Management Service.
Bob Armstrong,
Assistant Secretary, Land and Minerals Management.
[FR Doc. 97-10472 Filed 4-22-97; 8:45 am]
BILLING CODE 4310-MR-M