96-20864. Outer Continental Shelf, Beaufort Sea; Notice of Leasing Systems, Sale 144

[Federal Register Volume 61, Number 160 (Friday, August 16, 1996)]
[Notices]
[Page 42651]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-20864]


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DEPARTMENT OF THE INTERIOR
Minerals Management Service


Outer Continental Shelf, Beaufort Sea; Notice of Leasing Systems, 
Sale 144

    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:
    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 144, 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 144 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.
Cynthia Quarterman,
Director, Minerals Management Service.

    Approved:

    Dated: August 9, 1996.
Sylvia V. Baca,
Acting Assistant Secretary, Land and Minerals Management.
[FR Doc. 96-20864 Filed 8-15-96; 8:45 am]
BILLING CODE 4310-MR-M