Notice2021-21682
Gulf of Mexico Outer Continental Shelf Oil and Gas Lease Sale 257
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
October 4, 2021
Issuing agencies
Interior DepartmentOcean Energy Management Bureau
Abstract
On Wednesday, November 17, 2021, the Bureau of Ocean Energy Management (BOEM) will open and publicly announce bids received for blocks offered in the Gulf of Mexico (GOM) Outer Continental Shelf (OCS) Oil and Gas Lease Sale 257 (GOM Lease Sale 257), in accordance with the provisions of the Outer Continental Shelf Lands Act (OCSLA), as amended, and the implementing regulations issued pursuant thereto. The GOM Lease Sale 257 Final Notice of Sale (NOS) package contains information essential to potential bidders and consists of the Final NOS, Information to Lessees, and Lease Stipulations.
Full Text
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<title>Federal Register, Volume 86 Issue 189 (Monday, October 4, 2021)</title>
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[Federal Register Volume 86, Number 189 (Monday, October 4, 2021)]
[Notices]
[Pages 54728-54734]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-21682]
[[Page 54728]]
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DEPARTMENT OF THE INTERIOR
Bureau of Ocean Energy Management
[Docket No. BOEM-2021-0005]
Gulf of Mexico Outer Continental Shelf Oil and Gas Lease Sale 257
AGENCY: Bureau of Ocean Energy Management, Interior.
ACTION: Final notice of sale.
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SUMMARY: On Wednesday, November 17, 2021, the Bureau of Ocean Energy
Management (BOEM) will open and publicly announce bids received for
blocks offered in the Gulf of Mexico (GOM) Outer Continental Shelf
(OCS) Oil and Gas Lease Sale 257 (GOM Lease Sale 257), in accordance
with the provisions of the Outer Continental Shelf Lands Act (OCSLA),
as amended, and the implementing regulations issued pursuant thereto.
The GOM Lease Sale 257 Final Notice of Sale (NOS) package contains
information essential to potential bidders and consists of the Final
NOS, Information to Lessees, and Lease Stipulations.
DATES: BOEM will hold GOM Lease Sale 257 at 9:00 a.m. on Wednesday,
November 17, 2021. All times referred to in this document are Central
time, unless otherwise specified.
Bid submission deadline: BOEM must receive all sealed bids prior to
the Bid Submission Deadline of 10:00 a.m. on Tuesday, November 16,
2021, the day before the lease sale. For more information on bid
submission, see Section VII, ``Bidding Instructions,'' of this
document.
ADDRESSES: Bids will be accepted by MAIL ONLY through any parcel
delivery service (e.g., FedEx, UPS, USPS, DHL), prior to the bid
submission deadline, at 1201 Elmwood Park Boulevard, New Orleans,
Louisiana 70123 (see section VII. Bidding Instructions). Bids will not
be accepted in person or by email for any reason. Public bid reading
for GOM Lease Sale 257 will be held at 1201 Elmwood Park Boulevard, New
Orleans, Louisiana 70123, but the venue will not be open to the general
public, media, or industry during bid opening or reading. Bid opening
will be available for public viewing on BOEM's website at <a href="http://www.boem.gov/Sale-257">http://www.boem.gov/Sale-257</a> via live-streaming video beginning at 9:00 a.m.
on the date of the sale. The results will be posted on BOEM's website
upon completion of bid opening and reading. Interested parties can
download the Final NOS package from BOEM's website at <a href="http://www.boem.gov/Sale-257">http://www.boem.gov/Sale-257</a>. Copies of the sale maps can be obtained by
contacting the BOEM GOM Region: Gulf of Mexico Region Public
Information Office, Bureau of Ocean Energy Management, 1201 Elmwood
Park Boulevard, New Orleans, Louisiana 70123-2394, (504) 736-2519 or
(800) 200-GULF.
FOR FURTHER INFORMATION CONTACT: The New Orleans Office Lease Sale
Coordinators at <a href="/cdn-cgi/l/email-protection#cf8d808a828880829d83aaaebcaa9caea3aabc8fada0aaa2e1a8a0b9"><span class="__cf_email__" data-cfemail="b4f6fbf1f9f3fbf9e6f8d1d5c7d1e7d5d8d1c7f4d6dbd1d99ad3dbc2">[email protected]</span></a>, 504-736-7502 or Gregory
Purvis, 504-736-1729.
Authority: This notice of sale is published pursuant to 43 U.S.C.
1331 et seq. (Outer Continental Shelf Lands Act, as amended) and 30 CFR
556.308(a)).
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Lease Sale Area
II. Statutes and Regulations
III. Lease and Fiscal Terms
IV. Lease Stipulations
V. Information to Lessees
VI. Maps
VII. Bidding Instructions
VIII. Bidding Rules and Restrictions
IX. Forms
X. The Lease Sale
XI. Delay of Sale
I. Lease Sale Area
Blocks Offered for Leasing: BOEM will offer for bid in this lease
sale all the available unleased acreage in the GOM, except those blocks
listed below in ``Blocks Not Offered for Leasing.''
Blocks Not Offered for Leasing: The following whole and partial
blocks are not offered for lease in this sale.\1\
---------------------------------------------------------------------------
\1\ The BOEM Official Protraction Diagrams (OPDs) and
Supplemental Official Block Diagrams are available online at <a href="https://www.boem.gov/Maps-and-GIS-Data/">https://www.boem.gov/Maps-and-GIS-Data/</a>.
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<bullet> Whole and Partial Blocks within the Flower Garden Banks
National Marine Sanctuary (East and West Flower Garden Banks and the
Stetson Bank as of the July 2008 Memorandum on Withdrawal of Certain
Areas of U.S. OCS from Leasing Disposition):
------------------------------------------------------------------------
Area OCS block
------------------------------------------------------------------------
High Island, East Addition, South Whole Block: A-398.
Extension (Leasing Map TX7C). Partial Blocks: A-366, A-367, A-374,
A-375, A-383, A-384, A-385, A-388,
A-389, A-397, A-399, A-401.
High Island, South Addition Partial Blocks: A-502, A-513.
(Leasing Map TX7B).
Garden Banks (OPD NG 15-02)....... Partial Blocks: 134, 135.
------------------------------------------------------------------------
<bullet> Blocks that are adjacent to or beyond the United States
Exclusive Economic Zone in the area known as the northern portion of
the Eastern Gap:
------------------------------------------------------------------------
Area OCS block
------------------------------------------------------------------------
Lund South (OPD NG 16-07)......... Whole Blocks: 128, 129, 169 through
173, 208 through 217, 248 through
261, 293 through 305, and 349.
Henderson (OPD NG 16-05).......... Whole Blocks: 466, 508 through 510,
551 through 554, 594 through 599,
637 through 643, 679 through 687,
722 through 731, 764 through 775,
807 through 819, 849 through 862,
891 through 905, 933 through 949,
and 975 through 992.
Partial Blocks: 335, 379, 423, 467,
511, 555, 556, 600, 644, 688, 732,
776, 777, 820, 821, 863, 864, 906,
907, 950, 993, and 994.
Florida Plain (OPD NG 16-08)...... Whole Blocks: 5 through 24, 46
through 67, 89 through 110, 133
through 154, 177 through 197, 221
through 240, 265 through 283, 309
through 327, and 363 through 370.
------------------------------------------------------------------------
<bullet> All whole and portions of blocks deferred by the Gulf of
Mexico Energy Security Act of 2006, Public Law 109-432:
[[Page 54729]]
------------------------------------------------------------------------
Area OCS block
------------------------------------------------------------------------
Pensacola (OPD NH 16-05).......... Whole Blocks: 751 through 754, 793
through 798, 837 through 842, 881
through 886, 925 through 930, and
969 through 975.
Destin Dome (OPD NH 16-08)........ Whole Blocks: 1 through 7, 45
through 51, 89 through 96, 133
through 140, 177 through 184, 221
through 228, 265 through 273, 309
through 317, 353 through 361, 397
through 405, 441 through 450, 485
through 494, 529 through 538, 573
through 582, 617 through 627, 661
through 671, 705 through 715, 749
through 759, 793 through 804, 837
through 848, 881 through 892, 925
through 936, and 969 through 981.
DeSoto Canyon (OPD NH 16-11)...... Whole Blocks: 1 through 15, 45
through 59, and 92 through 102.
Partial Blocks: 16, 60, 61, 89
through 91, 103 through 105, and
135 through 147.
Henderson (OPD NG 16-05).......... Partial Blocks: 114, 158, 202, 246,
290, 334, 335, 378, 379, 422, and
423.
------------------------------------------------------------------------
<bullet> Depth-restricted, segregated block portion(s):
Block 299, Main Pass Area, South and East Addition (as shown on
Louisiana Leasing Map LA10A), containing 1,125 acres from the surface
of the earth down to a subsea depth of 1,900 feet with respect to the
following described portions:
SW<INF>\1/4\</INF>NE<INF>\1/4\</INF>;
NW<INF>\1/4\</INF>SE<INF>\1/4\</INF>NE<INF>\1/4\</INF>;
W<INF>\1/2\</INF>NE<INF>\1/4\</INF>SE<INF>\1/4\</INF>
NE<INF>\1/4\</INF>;
S<INF>\1/2\</INF>S<INF>\1/2\</INF>NW<INF>\1/4\</INF>NE<INF>\1/4\</INF>
;
S<INF>\1/2\</INF>SW<INF>\1/4\</INF>NE<INF>\1/4\</INF>NE<INF>\1/4\</INF>
;
S<INF>\1/2\</INF>SW<INF>\1/4\</INF>SE<INF>\1/4\</INF>NE<INF>\1/4\</INF>
NE<INF>\1/4\</INF>;
N<INF>\1/2\</INF>SW<INF>\1/4\</INF>SE<INF>\1/4\</INF>
NE<INF>\1/4\</INF>;
SW<INF>\1/4\</INF>SW<INF>\1/4\</INF>SE<INF>\1/4\</INF>NE<INF>\1/4\</INF>
; NW<INF>\1/4\</INF>SE<INF>\1/4\</INF> SE<INF>\1/4\</INF>
NE<INF>\1/4\</INF>;
N<INF>\1/2\</INF>NW<INF>\1/4\</INF>SW<INF>\1/4\</INF>SE<INF>\1/4\</INF>
SE<INF>\1/4\</INF> NE<INF>\1/4\</INF>;
N<INF>\1/2\</INF>SE<INF>\1/4\</INF>SW<INF>\1/4\</INF>SE<INF>\1/4\</INF>
NE<INF>\1/4\</INF>;
N<INF>\1/2\</INF>S<INF>\1/2\</INF>SE<INF>\1/4\</INF>SW<INF>\1/4\</INF>
SE<INF>\1/4\</INF>NE<INF>\1/4\</INF>;
S<INF>\1/2\</INF>NE<INF>\1/4\</INF> NW<INF>\1/4\</INF>;
S<INF>\1/2\</INF>S<INF>\1/2\</INF>N<INF>\1/2\</INF>NE<INF>\1/4\</INF>
NW<INF>\1/4\</INF>;
N<INF>\1/2\</INF>SE<INF>\1/4\</INF>NW<INF>\1/4\</INF>;
S<INF>\1/2\</INF>SE<INF>\1/4\</INF>NW<INF>\1/4\</INF>NW<INF>\1/4\</INF>
; NE<INF>\1/4\</INF>SE<INF>\1/4\</INF>
NW<INF>\1/4\</INF>NW<INF>\1/4\</INF>;
E<INF>\1/2\</INF>NE<INF>\1/4\</INF>SW<INF>\1/4\</INF>NW<INF>\1/4\</INF>
;
N<INF>\1/2\</INF>SE<INF>\1/4\</INF>SE<INF>\1/4\</INF>NW<INF>\1/4\</INF>
; NE<INF>\1/4\</INF>SW<INF>\1/4\</INF>SE<INF>\1/4\</INF>
NW<INF>\1/4\</INF>;
N<INF>\1/2\</INF>NW<INF>\1/4\</INF>SW<INF>\1/4\</INF>SE<INF>\1/4\</INF>
NW<INF>\1/4\</INF>;
SE<INF>\1/4\</INF>SE<INF>\1/4\</INF>SE<INF>\1/4\</INF>
NW<INF>\1/4\</INF>;
E<INF>\1/2\</INF>SW<INF>\1/4\</INF>SE<INF>\1/4\</INF>SE<INF>\1/4\</INF>
NW<INF>\1/4\</INF>;
N<INF>\1/2\</INF>NW<INF>\1/4\</INF>NE<INF>\1/4\</INF>SW<INF>\1/4\</INF>
NW<INF>\1/4\</INF>;
N<INF>\1/2\</INF>S<INF>\1/2\</INF>NW<INF>\1/4\</INF>NE<INF>\1/4\</INF>
SW<INF>\1/4\</INF>NW<INF>\1/4\</INF>;
N<INF>\1/2\</INF>N<INF>\1/2\</INF>NE<INF>\1/4\</INF>NE<INF>\1/4\</INF>
NE<INF>\1/4\</INF>SW<INF>\1/4\</INF>;
N<INF>\1/2\</INF>N<INF>\1/2\</INF>N<INF>\1/2\</INF>NW<INF>\1/4\</INF>
NW<INF>\1/4\</INF>SE<INF>\1/4\</INF>;
N<INF>\1/2\</INF>N<INF>\1/2\</INF>NW<INF>\1/4\</INF>NE<INF>\1/4\</INF>
NW<INF>\1/4\</INF>SE<INF>\1/4\</INF>.
<bullet> The following whole or partial blocks, whose lease status
is currently under appeal:
------------------------------------------------------------------------
Area OCS block
------------------------------------------------------------------------
Vermillion Area (Leasing Map LA3)......... Partial Block 179.
Atwater Valley (OPD NG16-01).............. 63.
------------------------------------------------------------------------
<bullet> Whole or partial blocks that have received bids in
previous sales, where the bidder has sought reconsideration of BOEM's
rejection of the bid are not offered in this sale, unless the
reconsideration request is fully resolved at least 30 days prior to
publication of the Final NOS.
The list of blocks available can be found on BOEM's web page at
http://www.boem.gov/sale-257 under the Final NOS tab.
II. Statutes and Regulations
Each lease is issued pursuant to OCSLA, 43 U.S.C. 1331 et seq., as
amended, and 30 CFR part 556, and is subject to OCSLA, implementing
regulations promulgated pursuant thereto, and other applicable statutes
and regulations in existence upon the effective date of the lease, as
well as those applicable statutes enacted and regulations promulgated
thereafter, except to the extent that the after-enacted statutes and
regulations explicitly conflict with an express provision of the lease.
Each lease is also subject to amendments to statutes and regulations,
including but not limited to OCSLA, that do not explicitly conflict
with an express provision of the lease. The lessee expressly bears the
risk that such new or amended statutes and regulations (i.e., those
that do not explicitly conflict with an express provision of the lease)
may increase or decrease the lessee's obligations under the lease. BOEM
reserves the right to reject any and all bids received, regardless of
the amount offered (see 30 CFR 556.516).
III. Lease Terms and Economic Conditions
Lease Terms
OCS Lease Form
BOEM will use Form BOEM-2005 (February 2017) to convey leases
resulting from this sale. This lease form can be viewed on BOEM's
website at <a href="http://www.boem.gov/BOEM-2005">http://www.boem.gov/BOEM-2005</a>. The lease form will be
amended to include specific terms, conditions, and stipulations
applicable to the individual lease. The terms, conditions, and
stipulations applicable to this sale are set forth below.
Primary Term
Primary Terms are summarized in the following table:
------------------------------------------------------------------------
Water depth (meters) Primary term
------------------------------------------------------------------------
0 to <400................ The primary term is 5 years; the lessee may
earn an additional 3 years (i.e., for an 8-
year extended primary term) if a well is
spudded targeting hydrocarbons below 25,000
feet True Vertical Depth Subsea (TVDSS)
during the first 5 years of the lease.
400 to <800.............. The primary term is 5 years; the lessee will
earn an additional 3 years (i.e., for an 8-
year extended primary term) if a well is
spudded during the first 5 years of the
lease.
800+..................... 10 years.
------------------------------------------------------------------------
(1) The primary term for a lease in water depths less than 400
meters issued as a result of this sale is 5 years. If the lessee spuds
a well targeting hydrocarbons below 25,000 feet TVDSS within the first
5 years of the lease, then the lessee may earn an additional 3 years,
resulting in an 8-year primary term. The lessee will earn the 8-year
primary term when the well is drilled to a target below 25,000 feet
TVDSS, or the lessee may earn the 8-year primary term in cases where
the well targets, but does not reach, a depth below 25,000 feet TVDSS
due to mechanical or safety reasons, and where the lessee provides
sufficient evidence that it did not reach that target for reasons
beyond the lessee's control. To earn the 8-year primary term, the
lessee is required to submit a letter to the BOEM GOM Regional
Supervisor, Office of Leasing and Plans, as soon as practicable, but no
more than 30 days after completion of the drilling operation, providing
the well number, spud date, information demonstrating a target below
25,000 feet
[[Page 54730]]
TVDSS and whether that target was reached, and if applicable, any
safety, mechanical, or other problems encountered that prevented the
well from reaching a depth below 25,000 feet TVDSS. This letter must
request confirmation that the lessee earned the 8-year primary term.
The BOEM GOM Regional Supervisor for Leasing and Plans will confirm in
writing, within 30 days of receiving the lessee's letter, whether the
lessee has earned the extended primary term and accordingly update
BOEM's records. The extended primary term is not effective unless and
until the lessee receives confirmation from BOEM. A lessee that has
earned the 8-year primary term by spudding a well with a hydrocarbon
target below 25,000 feet TVDSS during the standard 5-year primary term
of the lease will not be granted a suspension for that same period
under the regulations at 30 CFR 250.175 because the lease is not at
risk of expiring.
(2) The primary term for a lease in water depths ranging from 400
to less than 800 meters issued as a result of this sale is 5 years. If
the lessee spuds a well within the 5-year primary term of the lease,
the lessee will earn an additional 3 years, resulting in an 8-year
primary term. To earn the 8-year primary term, the lessee is required
to submit a letter to the BOEM GOM Regional Supervisor, Office of
Leasing and Plans, as soon as practicable, but no more than 30 days
after spudding a well, providing the well number and spud date, and
requesting confirmation that the lessee earned the 8-year extended
primary term. Within 30 days of receipt of the request, the BOEM GOM
Regional Supervisor for Leasing and Plans will provide written
confirmation of whether the lessee has earned the extended primary term
and accordingly update BOEM's records. The extended primary term is not
effective unless and until the lessee receives confirmation from BOEM.
(3) The primary term for a lease in water depths 800 meters or
deeper issued as a result of this sale is 10 years.
Economic Conditions
Minimum Bonus Bid Amounts
BOEM will not accept a bonus bid unless it provides for a cash
bonus in an amount equal to, or exceeding, the specified minimum bid,
as described below.
<bullet> $25 per acre or fraction thereof for blocks in water
depths less than 400 meters; and
<bullet> $100 per acre or fraction thereof for blocks in water
depths 400 meters or deeper.
Rental Rates
Annual rental rates are summarized in the following table:
Rental Rates per Acre or Fraction Thereof
----------------------------------------------------------------------------------------------------------------
Water depth (meters) Years 1-5 Years 6, 7, & 8+
----------------------------------------------------------------------------------------------------------------
0 to <200..................................... $7 $14, $21, & $28.
200 to <400................................... 11 $22, $33, & $44.
400+.......................................... 11 $16.
----------------------------------------------------------------------------------------------------------------
Escalating Rental Rates for Leases With an 8-Year Primary Term in Water
Depths Less Than 400 Meters
Any lessee with a lease in less than 400 meters water depth who
earns an 8-year primary term will pay an escalating rental rate as
shown above. The rental rates after the fifth year for blocks in less
than 400 meters water depth will become fixed and no longer escalate if
another well is spudded targeting hydrocarbons below 25,000 feet TVDSS
after the fifth year of the lease, and BOEM concurs that such a well
has been spudded. In this case, the rental rate will become fixed at
the rental rate in effect during the lease year in which the additional
well was spudded.
Royalty Rate
<bullet> 12.5 percent for leases situated in water depths less than
200 meters; and
<bullet> 18.75 percent for leases situated in water depths of 200
meters and deeper.
Minimum Royalty Rate
<bullet> $7 per acre or fraction thereof per year for blocks in
water depths less than 200 meters; and
<bullet> $11 per acre or fraction thereof per year for blocks in
water depths 200 meters or deeper.
Royalty Suspension Provisions
The issuance of leases with Royalty Suspension Volumes (RSVs) or
other forms of royalty relief is authorized under existing BOEM
regulations at 30 CFR part 560. The specific details relating to
eligibility and implementation of the various royalty relief programs,
including those involving the use of RSVs, are codified in Bureau of
Safety and Environmental Enforcement (BSEE) regulations at 30 CFR part
203. In this sale, the only royalty relief program being offered that
involves the provision of RSVs relates to the drilling of ultra-deep
wells in water depths of less than 400 meters, as described in the
following section.
Royalty Suspension Volumes on Gas Production From Ultra-Deep Wells
Pursuant to 30 CFR part 203, certain leases issued as a result of
this sale may be eligible for RSV incentives on gas produced from
ultra-deep wells. Under this program, wells on leases in less than 400
meters water depth and completed to a drilling depth of 20,000 feet
TVDSS or deeper receive an RSV of 35 billion cubic feet on the
production of natural gas. This RSV incentive is subject to applicable
price thresholds set forth in the regulations at 30 CFR part 203. These
regulations implement the requirements of the Energy Policy Act of 2005
(Pub. L. 109-58, 119 stat. 594 (2005)).
IV. Lease Stipulations
One or more of the stipulations below may be applied to leases
issued as a result of this sale. The applicable blocks for each
stipulation are identified on the map ``Final Gulf of Mexico Oil and
Gas Lease Sale 257, November 2021, Stipulations and Deferred Blocks''
included in the Final NOS package. The full text of the following
stipulations is contained in the ``Lease Stipulations'' section of the
Final NOS package.
(1) Military Areas
(2) Evacuation
(3) Coordination
(4) Protected Species
(5) Topographic Features
(6) United Nations Convention on the Law of the Sea Royalty Payment
(7) Agreement between the United States of America and the United
Mexican States Concerning Transboundary Hydrocarbon Reservoirs in the
Gulf of Mexico
(8) Live Bottom
(9) Blocks South of Baldwin County, Alabama
[[Page 54731]]
(10) Restrictions due to Rights-of-Use and Easement for Floating
Production Facilities
V. Information to Lessees
Information to Lessees (ITLs) provide detailed information on
certain issues pertaining to specific oil and gas lease sales. The full
text of the ITLs for this sale is contained in the ``Information to
Lessees'' section of the Final NOS package and covers the following
topics.
(1) Navigation Safety
(2) Ordnance Disposal Areas
(3) Existing and Proposed Artificial Reefs/Rigs-to-Reefs
(4) Lightering Zones
(5) Indicated Hydrocarbons List
(6) Military Areas
(7) Bureau of Safety and Environmental Enforcement Inspection and
Enforcement of Certain U.S. Coast Guard Regulations
(8) Significant Outer Continental Shelf Sediment Resource Areas
(9) Notice of Arrival on the Outer Continental Shelf
(10) Bidder/Lessee Notice of Obligations Related to Criminal/Civil
Charges and Offenses, Suspension, or Debarment; Disqualification Due to
a Conviction under the Clean Air Act or the Clean Water Act
(11) Protected Species
(12) Expansion of the Flower Garden Banks National Marine Sanctuary
(13) Communication Towers
(14) Deepwater Port Applications for Offshore Oil and Liquefied Natural
Gas Facilities
(15) Ocean Dredged Material Disposal Sites
(16) Rights-of-Use and Easement
(17) Industrial Waste Disposal Areas
(18) Gulf Islands National Seashore
(19) Air Quality Permit/Plan Approvals
(20) Provisions Pertaining to Certain Transactions by Foreign Persons
Involving Real Estate in the United States
VI. Maps
The maps pertaining to this lease sale can be viewed on BOEM's
website at <a href="http://www.boem.gov/Sale-257">http://www.boem.gov/Sale-257</a>. The following maps also are
included in the Final NOS package:
Lease Terms and Economic Conditions Map
The lease terms and economic conditions associated with leases of
certain blocks are shown on the map entitled, ``Final Gulf of Mexico
Oil and Gas Lease Sale 257, November 2021, Lease Terms and Economic
Conditions.''
Stipulations and Deferred Blocks Map
The lease stipulations and the blocks to which they apply are shown
on the map entitled, ``Final Gulf of Mexico Oil and Gas Lease Sale 257,
November 2021, Stipulations and Deferred Blocks Map.''
VII. Bidding Instructions
Bids may be submitted BY MAIL ONLY through any parcel delivery
service (e.g., FedEx, UPS, USPS, DHL) at the address below in the
``Mailed Bids'' section. Bidders should be aware that BOEM has
eliminated in-person bidding for Lease Sale 257. Instructions on how to
submit a bid, secure payment of the advance bonus bid deposit (if
applicable), and the information to be included with the bid are as
follows:
Bid Form
For each block bid upon, a separate sealed bid must be submitted in
a sealed envelope (as described below) and include the following items:
<bullet> Total amount of the bid in whole dollars only;
<bullet> Sale number;
<bullet> Sale date;
<bullet> Each bidder's exact name;
<bullet> Each bidder's proportionate interest, stated as a
percentage, using a maximum of five decimal places (e.g., 33.33333
percent);
<bullet> Typed name and title, and signature of each bidder's
authorized officer. Electronic signatures are acceptable. The typed
name, title, and signature must agree exactly with the name and title
on file in the BOEM Gulf of Mexico OCS Region Adjudication Section;
<bullet> Each bidder's BOEM qualification number;
<bullet> Map name and number or OPD name and number;
<bullet> Block number; and
<bullet> Statement acknowledging that the bidder(s) understands
that this bid legally binds the bidder(s) to comply with all applicable
regulations, including the requirement to post a deposit in the amount
of one-fifth of the bonus bid amount for any tract bid upon and make
payment of the balance of the bonus bid and first year's rental upon
BOEM's acceptance of high bids.
The information required for each bid is specified in the document
``Bid Form'' that is available in the Final NOS package which can be
found at <a href="http://www.boem.gov/Sale-257/">http://www.boem.gov/Sale-257/</a>. A blank bid form is provided in
the Final NOS package for convenience and can be copied and completed
with the necessary information described above.
Bid Envelope
Each bid must be submitted in a separate sealed envelope labeled as
follows:
<bullet> ``Sealed Bid for GOM Lease Sale 257, not to be opened
until 9 a.m. Wednesday, November 17, 2021'';
<bullet> Map name and number or OPD name and number;
<bullet> Block number for block bid upon;
<bullet> Acreage, if the bid is for a block that is split between
the Central and Eastern Planning Areas; and
<bullet> The exact name and qualification number of the submitting
bidder only.
The Final NOS package includes a sample bid envelope for reference.
Mailed Bids
Please address the envelope containing the sealed bid envelope(s)
as follows:
Attention: Leasing and Financial Responsibility Section
BOEM New Orleans Office
1201 Elmwood Park Boulevard MS-266A
New Orleans, Louisiana 70123-2394
Contains Sealed Bids for GOM Lease Sale 257
Please Deliver to Mr. Greg Purvis or Ms. Kathy Luckado
2nd Floor, Immediately
Please Note: Bidders are advised to inform BOEM by email at
<a href="/cdn-cgi/l/email-protection#3b79747e767c747669775e5a485e685a575e487b59545e56155c544d"><span class="__cf_email__" data-cfemail="f9bbb6bcb4beb6b4abb59c988a9caa98959c8ab99b969c94d79e968f">[email protected]</span></a> immediately after placing bid(s) in the
mail. This provides advance notice to BOEM regarding pending bids prior
to the bid submission deadline. In the email, please state the tracking
number of the bid package, the number of bids being submitted, and the
email address of the person who should receive the bid receipt for
signature. If BOEM receives bids later than the bid submission
deadline, the BOEM GOM Regional Director (RD) will return those bids
unopened to bidders. Please see ``Section XI. Delay of Sale'' regarding
BOEM's discretion to extend the Bid Submission Deadline in the case of
an unexpected event (e.g., flooding) and how bidders can obtain more
information on such extensions.
Advance Bonus Bid Deposit Guarantee
Bidders that are not currently an OCS oil and gas lease record
title holder or designated operator, or those that have ever defaulted
on a one-fifth bonus bid deposit, must guarantee (secure) the payment
of the one-fifth bonus bid deposit, by Electronic Funds Transfer (EFT)
or otherwise, prior to bid submission using one of the following four
methods:
<bullet> Provide a third-party guarantee;
[[Page 54732]]
<bullet> Amend a development stage area-wide bond via bond rider;
<bullet> Provide a letter of credit; or
<bullet> Provide a lump sum payment in advance via EFT.
Please provide, at the time of bid submittal, a confirmation or
tracking number for the payment, the name of the company submitting the
payment as it appears on the payment, and the date the payment was
submitted so BOEM can confirm payment with the Office of Natural
Resources Revenue (ONRR). Submitting payment to the bidders' financial
institution at least five business days prior to bid submittal helps
ensure that the Office of Foreign Assets Control and the U.S.
Department of the Treasury (U.S. Treasury) have the needed time to
screen and process payments so they are posted to ONRR prior to placing
the bid. ONRR cannot confirm payment until the monies have been moved
into settlement status by the U.S. Treasury. Bids will not be accepted
if BOEM cannot confirm payment with ONRR.
If providing a third-party guarantee, amending a development stage
area-wide bond via bond rider, or providing a letter of credit to
secure your one-fifth bonus bid deposit, bidders are urged to file
these documents with BOEM, well in advance of submitting the bid, to
allow processing time and for bidders to take any necessary curative
actions prior to bid submission. For more information on EFT
procedures, see Section X of this document entitled, ``The Lease
Sale.''
Affirmative Action
Prior to bidding, each bidder should file the Equal Opportunity
Affirmative Action Representation Form BOEM-2032 (February 2020,
available on BOEM's website at <a href="http://www.boem.gov/BOEM-2032/">http://www.boem.gov/BOEM-2032/</a>) and
Equal Opportunity Compliance Report Certification Form BOEM-2033
(February 2020, available on BOEM's website at <a href="http://www.boem.gov/BOEM-2033/">http://www.boem.gov/BOEM-2033/</a>) with the BOEM GOM Adjudication Section. This certification
is required by 41 CFR part 60 and Executive Order (E.O.) 11246, issued
September 24, 1965, as amended by E.O. 11375, issued October 13, 1967,
and by E.O. 13672, issued July 21, 2014. Both forms must be on file for
the bidder(s) in the GOM Adjudication Section prior to the execution of
any lease contract.
Geophysical Data and Information Statement (GDIS)
The GDIS is composed of three parts:
(1) A ``Statement'' page that includes the company representatives'
information and separate lists of blocks bid on that used proprietary
data and those blocks bid upon that did not use proprietary data;
(2) A ``Table'' listing the required data about each proprietary
survey used (see below); and
(3) ``Maps,'' which contain the live trace maps for each
proprietary survey that is identified in the GDIS statement and table.
Every bidder submitting a bid on a block in GOM Lease Sale 257 or
participating as a joint bidder in such a bid, must submit at the time
of bid submission all three parts of the GDIS. A bidder must submit the
GDIS even if a joint bidder or bidders on a specific block also have
submitted a GDIS. Any speculative data that has been reprocessed
externally or ``in-house'' is considered proprietary due to the
proprietary processing and is no longer considered to be speculative.
The bidder or bidders must submit the GDIS in a separate and sealed
envelope and must identify all proprietary data; reprocessed
speculative data, and/or any Controlled Source Electromagnetic surveys,
Amplitude Versus Offset (AVO) data, gravity data, and/or magnetic data;
or other information used as part of the decision to bid or participate
in a bid on the block. The bidder and joint bidder must also include a
live trace map (e.g., .pdf and ArcGIS shapefile) for each proprietary
survey identified in the GDIS illustrating the actual areal extent of
the proprietary geophysical data in the survey (see the ``Example of
Preferred Format'' that is included in the Final NOS package for
additional information). The shape file must not include cultural
resources information; only the live trace map of the survey itself.
The GDIS statement must include the name, phone number, and full
address for a contact person and an alternate, who are both
knowledgeable about the geophysical information and data listed and who
are available for 30 days after the sale date. The GDIS statement must
also include a list of all blocks bid upon that did not use proprietary
or reprocessed pre- or post-stack geophysical data and information, as
part of the decision to bid or to participate as a joint bidder in the
bid. Bidders must submit the GDIS statement even if no proprietary
geophysical data and information were used in bid preparation for the
block.
An example of the preferred format of the table is included in the
Final NOS package, and a blank digital version of the preferred table
can be accessed on the GOM Lease Sale 257 web page at <a href="http://www.boem.gov/Sale-257/">http://www.boem.gov/Sale-257/</a>. The GDIS table should have columns that clearly
state the following:
<bullet> The sale number;
<bullet> The bidder company's name;
<bullet> The joint bidder's company's name (if applicable);
<bullet> The company providing Proprietary Data to BOEM;
<bullet> The block area and block number bid upon;
<bullet> The owner of the original data set (i.e., who initially
acquired the data);
<bullet> The industry's original name of the survey (e.g., E
Octopus);
<bullet> The BOEM permit number for the survey;
<bullet> Whether the data set is a fast-track version;
<bullet> Whether the data is speculative or proprietary;
<bullet> The data type (e.g., 2-D, 3-D, or 4-D; pre-stack or post-
stack; time or depth);
<bullet> The migration algorithm (e.g., Kirchhoff migration, wave
equation migration, reverse migration, reverse time migration) of the
data and areal extent of bidder survey (i.e., number of line miles for
2-D or number of blocks for 3-D);
<bullet> The live proprietary survey coverage (2-D miles 3-D
blocks);
<bullet> The computer storage size, to the nearest gigabyte, of
each seismic data and velocity volume used to evaluate the lease block;
<bullet> Who reprocessed the data;
<bullet> Date the final reprocessing was completed (month and
year);
<bullet> If data were previously sent to BOEM, list the sale number
and date of the sale for which it was used;
<bullet> Whether proprietary or speculative AVO/AVA (PROP/SPEC) was
used;
<bullet> Date AVO or AVA was sent to BOEM if sent prior to the
sale;
<bullet> Whether AVO/AVA is time or depth (PSTM or PSDM);
<bullet> Which angled stacks were used (e.g., NEAR, MID, FAR,
ULTRAFAR);
<bullet> Whether the company used Gathers to evaluate the block in
question; and
<bullet> Whether the company used Vector Offset Output (VOO) or
Vector Image Partitions (VIP) to evaluate the block in question.
BOEM will use the computer storage size information to estimate the
reproduction costs for each data set, if applicable. BOEM will
determine the availability of reimbursement of production costs
consistent with 30 CFR 551.13.
BOEM reserves the right to inquire about alternate data sets, to
perform quality checks, and to compare the listed and alternative data
sets to determine which data set most closely meets the needs of the
fair market value
[[Page 54733]]
determination process. See the ``Example of Preferred Format'' that is
included in the Final NOS package.
The GDIS maps are live trace maps (e.g., .pdf and ArcGIS
shapefiles) that bidders should submit for each proprietary survey
identified in the GDIS table. The maps should illustrate the actual
areal extent of the proprietary geophysical data in the survey (see the
``Example of Preferred Format'' that is included in the Final NOS
package for additional information). As previously stated, the
shapefile must not include cultural resources information, only the
live trace map of the survey itself.
Pursuant to 30 CFR 551.12 and 30 CFR 556.501, as a condition of the
sale, the BOEM GOM Regional Director requests that all bidders and
joint bidders submit the proprietary data identified on their GDIS
within 30 days after the lease sale (unless notified after the lease
sale that BOEM has withdrawn the request). This request only pertains
to proprietary data that is not commercially available. Commercially
available data should not be submitted to BOEM unless specifically
requested by BOEM. No reimbursement will be provided for unsolicited
data sent to BOEM. The BOEM GOM RD will notify bidders and joint
bidders of any withdrawal of the request, for all or some of the
proprietary data identified on the GDIS, within 15 days of the lease
sale. Where the BOEM GOM RD has notified bidders and joint bidders that
the request for such proprietary data has been withdrawn, reimbursement
will not be provided. Pursuant to 30 CFR part 551 and 30 CFR 556.501,
as a condition of this sale, all bidders that are required to submit
data must ensure that the data are received by BOEM no later than the
30th day following the lease sale, or the next business day if the
submission deadline falls on a weekend or Federal holiday.
The data must be submitted to BOEM at the following address: Bureau
of Ocean Energy Management, Resource Studies, GM 881A, 1201 Elmwood
Park Blvd., New Orleans, Louisiana 70123-2304.
BOEM recommends that bidders mark the submission's external
envelope as ``Deliver Immediately to DASPU.'' BOEM also recommends that
bidders submit the data in an internal envelope, or otherwise marked,
with the following designation: ``Geophysical Data and Information
Statement for Oil and Gas Lease Sale 257'', Company Name, GOM Company
Qualification Number, and ``Proprietary Data.''
In the event a person supplies any type of data to BOEM, that
person must meet the following requirements to qualify for
reimbursement:
(1) Must be registered with the System for Award Management (SAM),
formerly known as the Central Contractor Registration (CCR). CCR
usernames will not work in SAM. A new SAM user account is needed to
register or update an entity's records. The website for registering is
<a href="http://gsa.gov/iaesystems">gsa.gov/iaesystems</a>.
(2) Must be enrolled in the U.S. Treasury's Invoice Processing
Platform (IPP) for electronic invoicing; to enroll go to <a href="https://www.ipp.gov/">https://www.ipp.gov/</a>. Access then will be granted to use the IPP for submitting
requests for payment. When submitting a request for payment, the
assigned Purchase Order Number must be included.
(3) Must have a current On-line Representations and Certifications
Application at <a href="http://gsa.gov/iaesystems">gsa.gov/iaesystems</a>.
Please Note: Digital copies and duplicate hardcopies should be
submitted for the GDIS Statement, Table and Maps. The GDIS Statement
should be sent in as a digital PDF. The GDIS Information Table must be
submitted digitally as an Excel spreadsheet. The Proprietary Maps
should be sent in as PDF files and the live trace outline of each
proprietary survey should also be submitted as a shapefile. Please
flatten all layered PDF files, since layered PDFs can have many
objects. Layered PDFs can cause problems opening or printing the file
correctly. Bidders may submit the digital files on a CD, DVD, or any
USB external drive (formatted for Windows). If bidders have any
questions, please contact Ms. Dee Smith at (504) 736-2706, or Ms. Teree
Campbell at (504) 736-3231.
Bidders should refer to Section X of this document, ``The Lease
Sale: Acceptance, Rejection, or Return of Bids,'' regarding a bidder's
failure to comply with the requirements of the Final NOS, including any
failure to submit information as required in the Final NOS or Final NOS
package.
Telephone Numbers/Addresses of Bidders
BOEM requests that bidders provide this information in the
suggested format prior to or at the time of bid submission. The
suggested format is included in the Final NOS package. The form must
not be enclosed inside the sealed bid envelope.
Additional Documentation
BOEM may require bidders to submit other documents in accordance
with 30 CFR 556.107, 30 CFR 556.401, 30 CFR 556.501, and 30 CFR
556.513.
VIII. Bidding Rules and Restrictions
Restricted Joint Bidders
On April 26, 2021, BOEM published the most recent List of
Restricted Joint Bidders in the Federal Register at 86 FR 22067.
Potential bidders are advised to refer to the Federal Register prior to
bidding for the most current List of Restricted Joint Bidders in place
at the time of the lease sale. Please refer to the joint bidding
provisions at 30 CFR 556.511-556.515.
Authorized Signatures
All signatories executing documents on behalf of the bidder(s) must
execute the same in conformance with the BOEM qualification records.
Bidders are advised that BOEM considers the signed bid to be a legally
binding obligation on the part of the bidder(s) to comply with all
applicable regulations, including that requiring payment of one-fifth
of the bonus bid on all high bids. A statement to this effect is
included on each bid form (see the document ``Bid Form'' that is
included in the Final NOS package).
Unlawful Combination or Intimidation
BOEM warns bidders against violation of 18 U.S.C. 1860, which
prohibits unlawful combination or intimidation of bidders.
Bid Withdrawal
Bids may be withdrawn only by written request delivered to BOEM
prior to the bid submission deadline via any parcel delivery service.
Withdrawals will not be accepted in person or via email. The withdrawal
request must be on company letterhead and must contain the bidder's
name, its BOEM qualification number, the map name/number, and the block
number(s) of the bid(s) to be withdrawn. The withdrawal request must be
executed by one or more of the representatives named in the BOEM
qualification records. The name and title of the authorized signatory
must be typed under the signature block on the withdrawal request. The
BOEM GOM RD, or the RD's designee, will indicate approval by signing
and dating the withdrawal request.
Bid Rounding
Minimum bonus bid calculations, including rounding, for all blocks
are shown in the document ``List of Blocks Available for Leasing''
included in the Final NOS package. The bonus bid amount must be stated
in whole dollars. If the acreage of a block contains a decimal figure,
then prior to calculating the minimum bonus bid, BOEM will round up to
the next whole acre. The
[[Page 54734]]
appropriate minimum rate per acre will be applied to the whole (rounded
up) acreage. The bonus bid amount must be greater than or equal to the
minimum bonus bid, as calculated and stated in the Final NOS package.
IX. Forms
The Final NOS package includes instructions, samples, and/or the
preferred format for the items listed below. BOEM strongly encourages
bidders to use the recommended formats. If bidders use another format,
they are responsible for including all the information specified for
each item in the Final NOS package.
(1) Bid Form
(2) Sample Completed Bid
(3) Sample Bid Envelope
(4) Sample Bid Mailing Envelope
(5) Telephone Numbers/Addresses of Bidders Form
(6) GDIS Form
(7) GDIS Envelope Form
X. The Lease Sale
Bid Opening and Reading
Sealed bids received in response to the Final NOS will be opened at
the place, date, and hour specified under the DATES and ADDRESSES
sections of the Final NOS. The venue will not be open to the public.
Instead, the bid opening will be available for the public to view on
BOEM's website at <a href="http://www.boem.gov">www.boem.gov</a> via live streaming. The opening of the
bids is for the sole purpose of publicly announcing and recording the
bids received; no bids will be accepted or rejected at that time.
Bonus Bid Deposit for Apparent High Bids
Each bidder submitting an apparent high bid must submit a bonus bid
deposit to ONRR equal to one-fifth of the bonus bid amount for each
such bid. A copy of the notification of the high bidder's one-fifth
bonus bid amount can be obtained on the BOEM website at <a href="http://www.boem.gov/Sale-257/">http://www.boem.gov/Sale-257/</a> under the heading ``Notification of EFT \1/5\
Bonus Liability'' after 1:00 p.m. on the day of the sale. All payments
must be electronically deposited into an interest-bearing account in
the U.S. Treasury by 1:00 p.m. Eastern Time the day following the bid
reading (no exceptions). Account information is provided in the
``Instructions for Making Electronic Funds Transfer Bonus Payments''
found on the BOEM website identified above.
Submitting payment to your financial institution as soon as
possible the day of bid reading, but no later than 7:00 p.m. Eastern
Time the day of bid reading, will help ensure that deposits have time
to process through the U.S. Treasury and post to ONRR. ONRR cannot
confirm payment until the monies have been moved into settlement status
by the U.S. Treasury.
BOEM requires bidders to use EFT procedures for payment of one-
fifth bonus bid deposits for GOM Lease Sale 257, following the detailed
instructions contained on the ONRR Payment Information web page at
<a href="https://www.onrr.gov/ReportPay/payments.htm">https://www.onrr.gov/ReportPay/payments.htm</a>. Acceptance of a deposit
does not constitute, and will 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 lease 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,
regardless of the amount offered. Furthermore, no bid will be accepted,
and no lease for any block will be awarded to any bidder, unless:
(1) The bidder has complied with all applicable regulations and
requirements of the Final NOS, including those set forth in the
documents contained in the Final NOS package;
(2) The bid is the highest valid bid; and
(3) The amount of the bid has been determined to be adequate by the
authorized officer.
Any bid submitted that does not conform to the requirements of the
Final NOS and Final NOS package, OCSLA, or other applicable statute or
regulation will be rejected and returned to the bidder. The United
States Department of Justice and the Federal Trade Commission will
review the results of the lease sale for any antitrust issues prior to
the acceptance of bids and issuance of leases.
Bid Adequacy Review Procedures for GOM Lease Sale 257
To ensure that the U.S. Government receives fair market value for
the conveyance of leases from this sale, BOEM will evaluate high bids
in accordance with its bid adequacy procedures, which are available on
BOEM's website at <a href="http://www.boem.gov/Oil-and-Gas-Energy-Program/Leasing/Regional-Leasing/Gulf-of-Mexico-Region/Bid-Adequacy-Procedures.aspx">http://www.boem.gov/Oil-and-Gas-Energy-Program/Leasing/Regional-Leasing/Gulf-of-Mexico-Region/Bid-Adequacy-Procedures.aspx</a>.
Lease Award
BOEM requires each bidder awarded a lease to complete the
following:
(1) Execute all copies of the lease (Form BOEM-2005 [February
2017], as amended);
(2) Pay by EFT the balance of the bonus bid amount and the first
year's rental for each lease issued in accordance with the requirements
of 30 CFR 218.155 and 556.520(a); and
(3) Satisfy the bonding requirements of 30 CFR part 556, subpart I,
as amended.
ONRR requests that only one transaction be used for payment of the
balance of the bonus bid amount and the first year's rental. Once ONRR
receives such payment, the bidder awarded the lease may not request a
refund of the balance of the bonus bid amount or first year's rental
payment.
XI. Delay of Sale
The BOEM GOM RD has the discretion to change any date, time, and/or
location specified in the Final NOS package in the case of an event
that the BOEM GOM RD deems could interfere with a fair and orderly
lease sale process. Such events could include, but are not limited to,
natural disasters (e.g., earthquakes, hurricanes, floods), wars, riots,
acts of terrorism, fires, strikes, civil disorder, or other events of a
similar nature. In case of such events, bidders should call (504) 736-
0557, or access the BOEM website at <a href="http://www.boem.gov">http://www.boem.gov</a>, for
information regarding any changes.
Amanda B. Lefton,
Director, Bureau of Ocean Energy Management.
[FR Doc. 2021-21682 Filed 9-30-21; 12:30 pm]
BILLING CODE 4310-MR-P
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</html>Indexed from Federal Register on October 4, 2021.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.