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Notice2023-15501

Final Sale Notice (FSN) for Commercial Leasing for Wind Power Development on the Outer Continental Shelf in the Gulf of Mexico (GOMW-1)

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Published

July 21, 2023

Issuing agencies

Interior DepartmentOcean Energy Management Bureau

Abstract

This Final Sale Notice (FSN) contains information pertaining to the areas available for commercial wind energy leasing on the Outer Continental Shelf (OCS) in the Gulf of Mexico (GOM). Specifically, this FSN details certain provisions and conditions of the leases, auction details, the lease form, criteria for evaluating competing bids, and procedures for award, appeal, and lease execution. The Bureau of Ocean Energy Management (BOEM) will offer three leases for sale using a multiple-factor bidding auction format: Lease OCS-G 37334, Lease OCS- G37335, and Lease OCS-G37336 (Lease Areas). The issuance of any lease resulting from this sale will not constitute approval of project- specific plans to develop offshore wind energy. Such plans, if submitted by the Lessee, will be subject to environmental, technical, and public reviews prior to a BOEM decision on whether the proposed activity should be authorized.

Full Text

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<title>Federal Register, Volume 88 Issue 139 (Friday, July 21, 2023)</title>
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[Federal Register Volume 88, Number 139 (Friday, July 21, 2023)]
[Notices]
[Pages 47173-47187]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-15501]

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DEPARTMENT OF THE INTERIOR

Bureau of Ocean Energy Management

[Docket No. BOEM-2023-0021]

Final Sale Notice (FSN) for Commercial Leasing for Wind Power
Development on the Outer Continental Shelf in the Gulf of Mexico (GOMW-
1)

AGENCY: Bureau of Ocean Energy Management, Interior.

ACTION: Final sale notice.

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SUMMARY: This Final Sale Notice (FSN) contains information pertaining
to the areas available for commercial wind energy leasing on the Outer
Continental Shelf (OCS) in the Gulf of Mexico (GOM). Specifically, this
FSN details certain provisions and conditions of the leases, auction
details, the lease form, criteria for evaluating competing bids, and
procedures for award, appeal, and lease execution. The Bureau of Ocean
Energy Management (BOEM) will offer three leases for sale using a
multiple-factor bidding auction format: Lease OCS-G 37334, Lease OCS-
G37335, and Lease OCS-G37336 (Lease Areas). The issuance of any lease
resulting from this sale will not constitute approval of project-
specific plans to develop offshore wind energy. Such plans, if
submitted by the Lessee, will be subject to environmental, technical,
and public reviews prior to a BOEM decision on whether the proposed
activity should be authorized.

DATES: BOEM will hold an online mock auction for potential bidders
starting at 8:00 a.m. Central Daylight Time (CDT)/9:00 a.m. Eastern
Daylight Time (EDT) on August 28, 2023. The monetary auction will be
held online and will begin at 8:00 a.m. CDT/9:00 a.m. EDT on August 29,
2023. Additional details are provided in the section entitled,
``Deadlines and Milestones for Bidders.''

FOR FURTHER INFORMATION CONTACT: Bridgette Duplantis, Bureau of Ocean
Energy Management, Office of Leasing and Plans, 1201 Elmwood Park
Boulevard, New Orleans, Louisiana 70123, (504) 736-7502 or
<a href="/cdn-cgi/l/email-protection#c6a4b4afa2a1a3b2b2a3e8a2b3b6aaa7a8b2afb586a4a9a3abe8a1a9b0">[email&#160;protected]</a>.

SUPPLEMENTARY INFORMATION:

I. Background

The OCS Lands Act authorizes BOEM to offer renewable energy leases
for sale on the OCS competitively, unless BOEM determines there is no
competitive interest. On June 11, 2021, BOEM published a Request for
Interest (RFI) for commercial leasing for wind power development in the
Gulf of Mexico OCS (88 FR 31339). The RFI Area comprised the entire
Central Planning Area (CPA) and Western Planning Area (WPA) of the Gulf
of Mexico, excluding the portions of those areas located in water
depths greater than 1,300 meters. On November 1, 2021, BOEM published
the Call for Information and Nominations (86 FR 60283) encompassing an
area of almost 30 million acres just west of the Mississippi River to
the Texas/Mexican border. On July 20, 2022, BOEM announced that it was
seeking public comments on two draft Wind Energy Areas (WEAs) totaling
7,364,668 acres offshore Galveston, Texas, and Lake Charles, Louisiana.
In response to feedback collected, BOEM announced the Area
Identification on October 31, 2022. BOEM published the Proposed Sale
Notice (PSN) in the Federal Register (88 FR 11939) on February 22,
2023. A 60-day comment period followed. BOEM requested any prospective
bidders who wished to participate in the GOM lease sale to submit
qualification materials postmarked no later than April 25, 2023. BOEM
also hosted an auction seminar for prospective bidders on March 23,
2023, to discuss the proposed auction format. BOEM received 330 comment
submissions in response to the PSN, which are available on
<a href="http://regulations.gov">regulations.gov</a> (Docket ID: BOEM-2023-0021) at: <a href="https://www.regulations.gov/document/BOEM-2023-0021-0001">https://www.regulations.gov/document/BOEM-2023-0021-0001</a>. BOEM has posted its
responses to the comments that were submitted during the PSN comment
period. The document entitled, Response to Comments, can be found on
BOEM's website at: <a href="https://www.boem.gov/renewable-energy/state-activities/gulf-mexico-activities">https://www.boem.gov/renewable-energy/state-activities/gulf-mexico-activities</a>.
In response to the comments received, BOEM made several changes to
the GOMW-1 sale format and procedures from those proposed in the PSN
and to the lease stipulations in the Proposed Leases. BOEM will offer
all three lease areas during one multi-factor GOMW-1 auction. In each
round of the auction, a bidder can bid for, at most, one of the offered
leases at a time. A bidder may switch between different Lease Areas
from round to round subject to the auction rules, but must bid in each
round, and ultimately can acquire, at most, one lease in the auction.

II. List of Eligible Bidders

BOEM has determined that the following 16 entities are legally,
technically, and financially qualified to hold a commercial wind lease
offshore the GOM, pursuant to 30 CFR 585.107 and 585.108, and therefore
may participate in this lease sale as bidders subject to meeting the
requirements

[[Page 47174]]

outlined in this notice. Those entities are listed below:

------------------------------------------------------------------------
Company name Company No.
------------------------------------------------------------------------
547 Energy LLC.......................................... 15123
Avangrid Renewables, LLC................................ 15019
Coastal Offshore Renewable Energy LLC................... 15173
energyRe Offshore Wind Holdings, LLC.................... 15171
Equinor Wind US LLC..................................... 15058
Gulf Coast Offshore Wind LLC............................ 15172
Gulf Wind Offshore LLC.................................. 15178
Hanwha Offshore North America LLC....................... 15176
Hanwha Q CELLS USA Corp................................. 15156
Hecate Energy LLC....................................... 15166
Invenergy GOM Offshore Wind LLC......................... 15177
RWE Offshore US Gulf, LLC............................... 15169
Shell New Energies US LLC............................... 15140
TotalEnergies Renewables USA, LLC....................... 15136
US Mainstream Renewable Power, Inc...................... 15089
------------------------------------------------------------------------

a. Affiliated Entities: On the Bidder's Financial Form (BFF),
discussed in sections III(a)(i) and X below, eligible bidders must list
any other eligible bidders with whom they are affiliated. An affiliate
means a bidding entity who controls, is controlled by, or is under
common control with another bidding entity. For the purpose of
identifying affiliated entities, a bidding entity is any individual,
firm, corporation, association, partnership, consortium, or joint
venture (when established as a separate entity) that is participating
in the same auction. BOEM considers bidding entities to be affiliated
when:
i. They own or have common ownership of more than 50 percent of the
voting securities, or instruments of ownership or other forms of
ownership, of another bidding entity. Ownership of less than 10 percent
of another bidding entity constitutes a presumption of non-control that
BOEM may rebut.
ii. They own or have common ownership of 10 through 50 percent of
the voting securities or instruments of ownership, or other forms of
ownership, of another bidding entity, and BOEM determines that there is
control upon consideration of factors including the following:
a. The extent to which there are common officers or directors.
b. With respect to the voting securities, or instruments of
ownership or other forms of ownership: The percentage of ownership or
common ownership, the relative percentage of ownership or common
ownership compared to the percentage(s) of ownership by other bidding
entities, if a bidding entity is the greatest single owner, or if there
is an opposing voting bloc of greater ownership.
c. Shared ownership, operation, or day-to-day management of a
lease, grant, or facility, as those terms are defined in BOEM's
regulations at 30 CFR 585.113.
iii. They are both direct, or indirect, subsidiaries of the same
parent company.
iv. With respect to any lease(s) offered in this auction, they have
entered into an agreement prior to the auction regarding the shared
ownership, operation, or day-to-day management of such lease.
v. Other evidence indicates the existence of power to exercise
control, such as evidence that one bidding entity has power to exercise
control over the other, or that multiple bidders collectively have the
power to exercise control over another bidding entity or entities.
Affiliated entities are not permitted to compete against each other
in the auction. Where two or more affiliated entities have qualified to
bid in the auction, the affiliated entities must decide prior to the
auction which one (if any) will participate in the auction. If two or
more affiliated entities attempt to participate in the auction, BOEM
will disqualify those bidders from the auction.

III. Deadlines and Milestones for Bidders

This section describes the major deadlines and milestones in the
auction process from publication of this FSN to execution of the lease
pursuant to this sale.
a. FSN Waiting Period: During the period between FSN publication
and the lease auction (a minimum of 30 days), qualified bidders must
take several steps to remain eligible to participate in the auction.
i. Bidder's Financial Form: Each bidder must submit a BFF to BOEM
to participate in the auction. The BFF submission must include the
bidder's Conceptual Strategy for each non-monetary credit (also
referred to herein as ``bidding credit'') for which the bidder wishes
to be considered. BOEM will consider any BFF received on or before
August 6, 2023, and it is each bidder's responsibility to ensure BOEM's
timely receipt. If a bidder does not submit a BFF by this deadline,
BOEM, in its sole discretion, may grant an extension to that bidder
only if BOEM determines the bidder's failure to timely submit a BFF was
caused by events beyond the bidder's control. The BFF can be downloaded
at: <a href="https://www.boem.gov/renewable-energy/state-activities/gulf-mexico-activities">https://www.boem.gov/renewable-energy/state-activities/gulf-mexico-activities</a>.
For purposes of this auction, BOEM will not consider BFFs submitted
for previous lease sales. The BFF must be executed on paper with a wet
signature or with a digital signature affixed by an authorized
representative listed on the bidder's current legal qualification card
on file with BOEM, subject to 18 U.S.C. 1001 (Fraud and False
Statements). Further information about the BFF can be found in the
``Bidder's Financial Form'' section X of this notice.
ii. Bid Deposit: Once BOEM has processed a BFF and provided the
appropriate information to the Office of Natural Resources Revenue
(ONRR), ONRR will populate the Bid Deposit Forms and notify the bidders
of access to <a href="http://pay.gov">pay.gov</a> for the bid deposits. The bidder must log into
<a href="https://www.pay.gov">https://www.pay.gov</a> to submit a bid deposit. To participate in the mock
auction and the monetary auction, each qualified bidder must provide a
bid deposit of $2,000,000 no later than August 13, 2023. BOEM will
grant extensions to this deadline only if BOEM, in its sole discretion,
determines that the failure to timely submit the bid deposit was caused
by events beyond the bidder's control. Further information about bid

[[Page 47175]]

deposits can be found in the ``Bid Deposit'' section XI of this notice.
In accordance with 30 CFR 585.222(e), BOEM will send a written notice
of its decision to accept or reject bids to all bidders whose deposits
we hold.
b. Conducting the Auction:
i. Affirmative Action: Prior to bidding in the monetary auction,
each bidder must 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 the 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 Regional Office. The forms can be submitted digitally to
<a href="/cdn-cgi/l/email-protection#ed8f8288808c89879889848e8c99848283ad8f828880c38a829b">[email&#160;protected]</a> or mailed to the BOEM GOM Regional Office.
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 BOEM GOM Regional Office
prior to the execution of any lease contract.
ii. Mock Auction: BOEM will hold a Mock Auction on August 28, 2023,
beginning at 8:00 a.m. CDT/9:00 a.m. EDT. BOEM will hold the Mock
Auction online. BOEM will contact each bidder that has timely submitted
a BFF and bid deposit and provide instructions for participation. Only
bidders that have timely submitted BFFs and bid deposits may
participate in the Mock Auction.
iii. Multiple-Factor Auction: On August 29, 2023, BOEM, through its
contractor, will commence the multiple-factor auction. The first round
of the auction will start at 8:00 a.m. CDT/9:00 a.m. EDT. The auction
will proceed electronically according to a schedule to be distributed
by the BOEM Auction Manager at the beginning of the auction, subject to
any revisions (which will be communicated to bidders during the
auction). BOEM anticipates that the auction will last one or two
business days, but the auction may continue for additional business
days, as necessary, until the auction ends in accordance with the
procedures described in the ``Auction Procedures'' section of this
notice.
iv. Announce Provisional Winners: BOEM will announce the
provisional winners of the lease sale after the auction ends.
c. From the Auction to Lease Execution:
i. Notice and Refunds to Non-Winners: Once the provisional winners
have been announced, BOEM will return the non-winners bid deposits.
ii. Department of Justice (DOJ) Review: DOJ will have 30 days in
which to conduct an antitrust review of the auction, pursuant to 43
U.S.C. 1337(c).
iii. Delivery of the Lease: BOEM will send three copies of the
lease to each provisional winner, with instructions for executing the
lease. The first year's rent is due 45 calendar days after the winners
receive the lease copies for execution.
iv. Return the Lease: Within 10 business days of receiving the
lease copies, the auction winners must post financial assurance, pay
any outstanding balance of their bonus bids (i.e., winning cash bid
minus bid deposit), and sign and return the three executed lease
copies. In the event of a delay, BOEM may extend the 10-business-day-
time period for executing and returning the lease if BOEM, in its sole
discretion, determines the delay to be caused by events beyond the
winner's control, pursuant to 30 CFR 585.224(e).
v. Execution of Lease: Once BOEM has received the signed lease
copies and verified that all other required obligations have been met,
BOEM will make a final determination regarding its issuance of the
leases and will execute the leases, if appropriate.

IV. Areas Offered for Leasing

BOEM considered the following criteria in delineating the Lease
Areas included in this FSN: reasonably comparable commercial viability
and size; prevailing wind direction and minimal wake effects; maximized
energy generating potential; distance to shore, port infrastructure,
and electrical grid interconnections; and fair return to the Federal
Government, pursuant to the OCS Lands Act through competition for
commercially viable lease areas.
The three Lease Areas included in this FSN are the same size and
orientation described in the PSN. BOEM's designation of the three Lease
Areas offered in the FSN is informed by extensive coordination with
BOEM's intergovernmental task force members, consultation and
engagement with Tribes, stakeholder engagement, a partnership with
NOAA's National Centers for Coastal Ocean Science (NCCOS) to utilize
spatial modeling to inform the identification of Wind Energy Areas, and
consideration of the 330 comments that BOEM received in response to the
PSN. BOEM is offering three Lease Areas totaling 301,746 acres for sale
through this notice (Figure 1).

[[Page 47176]]

[GRAPHIC] [TIFF OMITTED] TN21JY23.002

Figure 1: GOMW-1 Map of Final Lease Areas

The areas available for lease will be auctioned in a single auction
as listed in Table 1.

Table 1--GOMW-1 Final Lease Areas
------------------------------------------------------------------------
Lease area name Lease area ID Acres
------------------------------------------------------------------------
Lake Charles...................... OCS-G 37334 102,480
Galveston I....................... OCS-G 37335 102,480
Galveston II...................... OCS-G 37336 96,786
-------------------------------------
Total......................... ................. 301,746
------------------------------------------------------------------------

Due to United States Coast Guard (USCG) concerns about lightering
areas in the southern portion of the Galveston WEA (Option I), BOEM
will continue to work with USCG to identify, quantify, and mitigate
potential impacts and risks to lightering operations within the
traditional lightering use areas within Galveston leases when
considering any plans submitted for BOEM's consideration and approval
after lease issuance.
a. Map of the Areas for Leasing: A map of the Lease Areas and GIS
spatial files X, Y (eastings, northings) UTM Zone 18, NAD83 Datum, and
geographic X, Y (longitude, latitude), NAD83 Datum can be found on
BOEM's website at: <a href="https://www.boem.gov/renewable-energy/state-activities/gulf-mexico-activities">https://www.boem.gov/renewable-energy/state-activities/gulf-mexico-activities</a>.

V. Environmental Review

On January 11, 2021, BOEM published a notice of intent to prepare
an environmental assessment (EA) to consider potential environmental
consequences of site characterization activities (e.g., biological,
archaeological, geological, and geophysical surveys and core samples)
and site assessment activities (e.g., installation of meteorological
buoys) that are expected to take place after issuance of wind energy
leases in the Call Area. As part of the scoping process for the EA,
BOEM sought comments on the issues and alternatives that should inform
the EA. BOEM received 18 comments, which can be found at <a href="http://www.regulations.gov">http://www.regulations.gov</a> under Docket No. BOEM-2021-0092. In addition to the
preparation of the Draft EA, BOEM has completed consultations under the
Endangered Species Act (ESA), the Magnuson-Stevens Fishery Conservation
and Management Act (MSFCMA), and the Coastal Zone Management Act
(CZMA). On July 20, 2022, BOEM issued a press release soliciting
comments on the Draft EA, with a 30-day comment period, but, in
response to several requests, BOEM extended the comment period to 45
days. During this time, BOEM held two public meetings, one on August 9,
2022, and one on August 11, 2022. BOEM published the Final EA and
Finding of No Significant Impact (FONSI) on May 26, 2023. They can be
found at <a href="https://www.boem.gov/renewable-energy/state-activities/gulf-mexico-activities">https://www.boem.gov/renewable-energy/state-activities/gulf-mexico-activities</a>. BOEM will conduct additional environmental reviews
upon receipt of a Lessee's

[[Page 47177]]

Construction and Operations Plan (COP) if the proposed leases reach
that stage of development.

VI. New and Modified Lease Stipulations

Based on feedback received on the PSN, BOEM is adding lease
stipulations that: (i) were discussed conceptually in the PSN, and (ii)
include conditions from the Department of Defense (DoD) to protect
national defense capabilities and military operations. BOEM is also
refining certain stipulations identified in the PSN and proposed
leases.
a. Reporting requirements: BOEM is building upon stipulations in
previous leases requiring a semi-annual progress report from Lessees
and regular engagement with Tribes and parties that may be affected by
Lessees' activities on the OCS. The lease stipulations require working
with BOEM to identify: Tribes that have cultural and/or historical ties
to the Lease Areas; coastal communities; commercial and recreational
fishing industries and stakeholders; educational and research
institutions; environmental and public interest non-governmental
organizations; Federal, State, and local agencies; mariners and the
maritime industry; ocean users; submarine cable operators; and
underserved communities, as defined in section 2 of E.O. 13985. The
report must identify Tribes and parties that may be affected by
Lessees' activities on the OCS and with whom the Lessees have engaged;
provide updates on engagement activities; document potential adverse
effects to the interests of Tribes and parties; document how, if at
all, a project has been informed or altered to address those potential
effects; include feedback from engagement regarding transmission
planning prior to proposing any export cable route; provide information
that can be made available to the public; and include strategies to
reach potentially affected individuals with Limited English
Proficiency.
The stipulations include requirements for Lessees to engage in ways
that minimize linguistic, technological, cultural, capacity, or other
obstacles. The stipulations encourage Lessees to work collaboratively
with governments, community leadership and organizations, and Tribes
and to develop specific frameworks for capacity building.
In acknowledgment of the existing and growing consultation burden
placed on many of the Tribes and parties, the stipulation also
requires, to the maximum extent practicable, that Lessees coordinate
with one another on engagement activities. It is BOEM's intention that
this requirement for Lessees to coordinate their engagement apply not
only to meetings proposed by Lessees, but also to reasonable requests
to coordinate engagement made by Tribes and parties. Coordinated
engagement among Tribes and Lessees is strongly encouraged and is in
addition to BOEM's responsibilities to federally recognized Tribes
under E.O. 13175.
In addition, the reporting stipulation requires that the progress
report incorporate separate lease requirements for the development of
communication plans for Tribal governments (Native American Tribes
Communications Plan), agencies (Agency Communications Plan), and
fisheries (Fisheries Communications Plan). Lastly, the progress report
must include an update on activities executed under any survey plan.
b. Commercial Fisheries: BOEM is including a stipulation that would
contain components of stipulations included in prior commercial leases
issued by BOEM, including a requirement for a Fisheries Communications
Plan (FCP).
c. Protected Species: The Lessee must coordinate with BOEM, the
National Marine Fisheries Service (NMFS), and the U.S. Fish and
Wildlife Service (USFWS) prior to designing and conducting biological
surveys intended to support offshore renewable energy plans that could
interact with protected species.
BOEM has completed a consultation with NMFS and USFWS under section
7(a)(2) of the ESA for Gulf of Mexico wind energy lease issuance and
associated site characterization and site assessment activities that
may occur following lease issuance. NMFS and USFWS have issued letters
of concurrence in response to BOEM's requests for informal programmatic
consultation (<a href="https://www.boem.gov/renewable-energy/state-activities/esanmfssero">https://www.boem.gov/renewable-energy/state-activities/esanmfssero</a> and <a href="https://www.boem.gov/renewable-energy/state-activities/boem-gomr-ren-leasing-esausfws-concurrence">https://www.boem.gov/renewable-energy/state-activities/boem-gomr-ren-leasing-esausfws-concurrence</a>). Best management practices
(collectively referred to as protocols) associated with the mitigation,
monitoring, and reporting conditions resulting from these ESA
consultations have been developed for those data collection activities
covered in the consultations. These protocols will become provisions of
all leases: <a href="https://www.boem.gov/regions/gulf-mexico-ocs-region/renewable-energy-esa-consultations-guidance">https://www.boem.gov/regions/gulf-mexico-ocs-region/renewable-energy-esa-consultations-guidance</a>.
d. Marine Mammal Protection Act Authorization(s): If the Lessee is
required to obtain an authorization pursuant to section 101(a)(5) of
the Marine Mammal Protection Act prior to conducting survey activities
in support of plan submittal, the Lessee must provide to BOEM a copy of
the authorization prior to commencing these activities.
e. Project Labor Agreements (PLAs) and Supply Chain: BOEM is
committed to workforce safety and the establishment of a durable
domestic supply chain that can sustain the U.S. offshore wind energy
industry, including for the leases offered in this sale. To advance
these goals, BOEM is including two lease stipulations, one that
encourages construction efficiency for projects and one that
contributes towards establishing a domestic supply chain:
i. The first stipulation requires Lessees to make every reasonable
effort to enter into a PLA covering the construction stage of any
project for the Lease Areas.
ii. The second stipulation requires Lessees to establish a
Statement of Goals in which the Lessee describes its plans for
contributing to the creation of a robust and resilient U.S.-based
offshore wind industry supply chain that would facilitate this or other
renewable energy projects permitted by BOEM. The Lessee is required to
provide regular progress updates on the achievement of those goals to
BOEM, and BOEM will make those updates publicly available.
f. Research Site Access: This stipulation makes explicit that BOEM,
its designated representative, or any entity to which BOEM provides
access retains the right to access the Lease Area for purposes of
future research. This provision does not limit the Lessor's authority
to access the lease for other purposes, including, but not limited to,
inspections conducted pursuant to 30 CFR 285.822.
g. Archaeological Survey Requirements: BOEM is including a
modification of a lease stipulation that was used in previous
commercial leases regarding archaeological survey requirements. The
revised stipulation requires that the Lessee provide to BOEM, in the
associated plan submissions, a description of the methods it will use
to conduct archaeological surveys in support of plans (i.e., Site
Assessment Plan (SAP) and/or COP), in addition to the survey results.
The Lessee is required to coordinate a Tribal pre-survey meeting with
Tribes that have cultural and/or historical ties to the Lease Area, and
the Lessee must work with BOEM to identify such Tribes. In the post-
review discovery clauses, the revised stipulation requires that, in the
event of

[[Page 47178]]

an unanticipated discovery of a potential archaeological resource, the
Lessee will immediately halt bottom-disturbing activities within the
area of the discovery by a minimum of 305 meters (1,000 feet), and that
the avoidance distance must be calculated from the maximum discernible
extent of the archaeological resource.
h. Foreign Interest: To protect national defense capabilities and
military operations, BOEM is requiring the Lessee to provide to DoD
specific information about the personnel allowed to access the wind
turbine structures and associated data systems. That information
includes the names of entities or persons having a direct ownership
interest in an offshore wind facility, as well as any changes in
ownership interests; the names of the material vendors, entities, and
persons with which the Lessee will potentially execute contracts to
perform construction, supply turbines or other components, or conduct
construction and operational activities at the facility; and the names
of any foreign entities and persons (as those terms are defined at 31
CFR 800.220 and 31 CFR 800.224). In addition, the Lessee must resolve
DoD's security concerns before it allows access to the site by foreign
persons or representatives of foreign entities for which DoD has raised
concerns and before the Lessee uses wind turbines or other permanent
on-site equipment manufactured by such an entity.
i. Notice of Assignment to the Committee on Foreign Investment in
the United States (CFIUS): Under BOEM's regulations, a Lessee must be
one of the following: (1) a citizen or national of the United States;
(2) an alien lawfully admitted for permanent residence in the United
States, as defined in 8 U.S.C. 1101(a)(20); (3) a private, public, or
municipal corporation organized under the laws of any State of the
United States, the District of Columbia, or any territory or insular
possession subject to U.S. jurisdiction; (4) an association of such
citizens, nationals, resident aliens, or corporations; (5) an Executive
Agency of the United States, as defined in 5 U.S.C. 105; (6) a State of
the United States; or (7) a political subdivision of States of the
United States. BOEM is including a stipulation that requires any
proposed Lessee that is a foreign-controlled business entity under the
regulations at 31 CFR part 800 to provide joint notice, with BOEM, to
CFIUS of the proposed leasing transaction, in accordance with
applicable regulations at 31 CFR part 800, subpart D, and provide a
copy of the notice to the DoD. In addition, approval of any assignment
of lease interest to a foreign-controlled business entity under 31 CFR
part 800 is subject to this CFIUS notice stipulation. Such leasing
decisions or assignments would take place only after CFIUS provides
notice that it has concluded all necessary reviews under section 721 of
the Defense Production Act of 1950, as amended, with respect to the
leasing decision or assignment.
j. Transmission Planning: The Lessee must--to the extent that it is
technically and economically practical or feasible--consider the use of
cable corridors, regional transmission systems, meshed systems, or
other mechanisms for transmission facilities proposed in a COP. Such
consideration must be done in accordance with stipulation 3.1.1, which
requires the Lessee to engage with Tribes and parties regarding
transmission planning prior to proposing any export cable route. The
foregoing does not prevent the Lessee from proposing the use of
transmission systems traditionally constructed in a Project easement in
any COP that the Lessee submits; nor does it prevent BOEM from
requiring in a COP approval the use of cable corridors, regional
transmission systems, meshed systems, or other mechanisms for
transmission facilities, if deemed technically and economically
practical or feasible by BOEM.

VII. Potential Future Restrictions

a. Potential Future Restrictions To Ensure Navigational Safety:
i. USCG Navigational Safety Measures: Potential bidders are advised
that portions of the lease area may not be available for future
development (i.e., installation of wind energy facilities) because of
navigational safety concerns. The USCG recommended that BOEM add a 2-
nautical mile (3704 m) buffer around the shipping fairways in the GOM.
BOEM may require additional mitigation measures at the COP stage when
the Lessee's site-specific navigational safety risk assessment is
available to inform BOEM's decision-making.
ii. Vessel Transit Corridors: Members of the fishing community have
requested that offshore wind energy facilities be designed in a manner
that, among other things, provides for safe transit to fishing grounds
where relevant. The information currently available does not indicate
that transit corridors are warranted. However, at the COP stage, BOEM
may nonetheless consider designating portions of the Lease Areas as
areas of no surface occupancy to facilitate vessel transit and
continuance of existing uses.
b. Potential Future Restrictions To Mitigate Potential Conflicts
With Department of Defense Activities: Potential bidders should be
aware of potential conflicts with DoD's existing uses of the OCS. BOEM
coordinates with DoD throughout the leasing process.
i. Air Surveillance and Radar: The Military Aviation and
Installation Assurance Siting Clearinghouse conducted a DoD assessment
of the Call Area. That assessment concluded that the North American
Aerospace Defense Command (NORAD) mission may be affected by the
development of the Lease Area(s). Considering both the expected height
of offshore turbines and future cumulative wind turbine effects,
adverse impacts can be mitigated through the use of Radar Adverse-
impact Management (RAM) \1\ and overlapping radar coverage. For
projects where RAM mitigation is acceptable, BOEM anticipates including
the following stipulations in any project approval conditions:
---------------------------------------------------------------------------

\1\ RAM is the technical process designed to minimize the
adverse impact of obstruction interference on a radar system.
---------------------------------------------------------------------------

(1) Lessee will notify NORAD when the project is within 30-60 days
of completion and, again, when the project is complete and operational
for RAM scheduling;
(2) Lessee will contribute funds to DoD in the amount of no less
than $80,000 toward the cost of DoD's execution of the RAM procedures
for each Radar system affected; and
(3) Lessee will curtail wind turbine operations for National
Security or Defense Purposes, as described in the lease.
BOEM will require the Lessee to enter into an agreement with the
DoD to implement these conditions and mitigate any identified impacts.
Sixth Generation Over the Horizon Radar is currently in development.
Offshore wind turbines in the Gulf of Mexico may create adverse impacts
to that system. BOEM will further coordinate with DoD and the Lessee to
deconflict potential impacts throughout the project review stage, which
may result in adding mitigation measures or terms and conditions as
part of any plan approval.
c. Potential Future Restrictions Within Significant Sediment
Resource Areas: Potential bidders are advised that BOEM has designated
certain lease blocks in the GOM as Significant OCS Sediment Resource
Areas. OCS sediment resources are minerals that are composed of
sediment deposits, including clay, silt, sand, gravel-sized

[[Page 47179]]

particles, and shells found on or below the surface of the OCS seabed.
Where feasible, project design and construction should consider on-
lease access to sediment resources by other users.
Regarding off-lease activities that may support a Lessee's
operations (e.g., a right-of-use and easement or right-of-way), BOEM
has implemented measures to prevent obstructions to the use of the most
Significant OCS Sediment Resources, reduce multiple use conflicts, and
minimize interference with oil and gas operations. For the most current
listing of Significant OCS Sediment Resource blocks, see <a href="https://www.boem.gov/marine-minerals/managing-multiple-uses-gulf-mexico">https://www.boem.gov/marine-minerals/managing-multiple-uses-gulf-mexico</a>. If it
is determined that significant OCS sediment resources may be impacted
by a proposed activity, BOEM and/or BSEE may require the Lessee to
undertake measures deemed economically, environmentally, and
technically feasible to protect the resources to the maximum extent
practicable. Such measures may include modification of operations and
monitoring of infrastructure after installation.
BSEE will not approve future requests for in-place decommissioning
of any infrastructure in these designated areas, unless the BSEE GOM
Regional Supervisor determines that the infrastructure does not
constitute a hazard or obstruction to navigation and commercial fishing
operations, unduly interfere with other uses of the OCS, or pose
adverse environmental effects.
d. Potential Future Restrictions for Deepwater Port Applications
for Offshore Oil and Liquified Gas Facilities: Potential bidders are
advised that the USCG and the Maritime Administration (MARAD) may
process applications for the licensing of deepwater ports involving
both proposed liquefied natural gas (LNG) importation/exportation
facilities and oil importation/exportation facilities in the GOM. There
is currently only one such active facility in the GOM: the Louisiana
Offshore Oil Port, located 16 miles southeast of Port Fourchon.
Applications for new deepwater port import and/or export facilities may
be received by MARAD at any time. Those applications will be processed
by MARAD and the USCG in the order they are received. A list of
approved, pending, and withdrawn/disapproved DWP license applications
may be found at the following web pages:

<bullet> <a href="https://www.maritime.dot.gov/ports/deepwater-ports-and-licensing/licensing-process">https://www.maritime.dot.gov/ports/deepwater-ports-and-licensing/licensing-process</a>
<bullet> https://www.maritime.dot.gov/ports/deepwater-ports-and-
licensing/approved-applications

Bidders and Lessees also are advised to review and monitor U.S. DOT
MARAD sources, such as MARAD records of decision and port licenses, for
relevant deepwater port application information to assess safety zones,
no anchoring zones, avoidance areas, recommended routes, and other
ships' routing measures that could prevent or otherwise impact offshore
wind operations around both existing and proposed deepwater port
locations.
For more information, contact:

Commandant (CG-OES-22), U.S. Coast Guard Headquarters, 2703 Martin
Luther King Ave. SE (STOP 7509), Attn: Deepwater Ports Standards
Division, Washington, DC 20593-7509, (202) 372-1444, POC: Mr. Matthew
Layman, Email: <a href="/cdn-cgi/l/email-protection#bdd0dcc9c9d5d8ca93d993d1dcc4d0dcd3fdc8cededa93d0d4d1">[email&#160;protected]</a> or <a href="/cdn-cgi/l/email-protection#1256454252717d7f76663c676171753c7f7b7e">[email&#160;protected]</a>, Web
Address: <a href="https://www.dco.uscg.mil/Our-Organization/Assistant-Commandant-for-Prevention-Policy-CG-5P/Commercial-Regulations-standards-CG-5PS/Office-of-Operating-and-Environmental-Standards/vfos/DWP/">https://www.dco.uscg.mil/Our-Organization/Assistant-Commandant-for-Prevention-Policy-CG-5P/Commercial-Regulations-standards-CG-5PS/Office-of-Operating-and-Environmental-Standards/vfos/DWP/</a>
Ms. Yvette M. Fields, Director Maritime Administration, Office of
Deepwater Ports and Offshore Activities, 1200 New Jersey Avenue SE,
W21-309 (MAR-530), Washington, DC 20590, Telephone: (202) 366-0926,
Fax: (202) 366-5123, Email: <a href="/cdn-cgi/l/email-protection#68111e0d1c1c0d460e010d040c1b280c071c460f071e">[email&#160;protected]</a>, Web Address: <a href="https://www.maritime.dot.gov/ports/deepwater-ports-and-licensing/approved-applications">https://www.maritime.dot.gov/ports/deepwater-ports-and-licensing/approved-applications</a>-and-operational-facilities

VIII. Lease Terms and Conditions

BOEM has included terms and conditions for the OCS commercial wind
leases to be offered through this sale. After the leases are issued,
BOEM reserves the right to require compliance with additional terms and
conditions associated with approval of a SAP and COP. The leases are
available on BOEM's website at: <a href="https://www.boem.gov/renewable-energy/state-activities/gulf-mexico-activities">https://www.boem.gov/renewable-energy/state-activities/gulf-mexico-activities</a>. Each lease will include the
following attachments:
1. Addendum A (``Description of Leased Area and Lease
Activities'');
2. Addendum B (``Lease Term and Financial Schedule'');
3. Addendum C (``Lease-Specific Terms, Conditions, and
Stipulations'');
4. Addendum D (``Project Easement''); and
5. Addendum E (``Rent Schedule'').
Addenda A, B, and C provide detailed descriptions of lease terms
and conditions. Addenda D and E will be completed at the time of COP
approval or approval with modifications, should a COP be approved.
a. Required Plans for Potential Development of Executed Leases: To
the extent required under 30 CFR part 585, the Lessee will submit a SAP
within 12 months of lease issuance if the Lessee intends to conduct
site assessment activities. Approval of the SAP will initiate the
Lessee's five-year site assessment term. If the Lessee intends to
continue its commercial lease with an operations term, the Lessee will
be required to submit a COP at least six months before the end of the
site assessment term.

IX. Financial Terms and Conditions

This section provides an overview of the annual payments required
of the Lessee that are more fully described in the lease, and of the
financial assurance requirements that will be associated with the
lease.
a. Rent: Pursuant to 30 CFR 585.224(b) and 585.503, the first
year's rent payment of $3 per acre will be due within 45 calendar days
after the Lessee receives the lease copies from BOEM for execution. For
example, for the 102,480 acres Lease Area of OCS-G 37334, the rent
payment will be $307,440 per year until commercial operations begin.
Thereafter, until commercial operations begin, annual rent payments are
due on the anniversary of the effective date of the lease (the ``Lease
Anniversary''). Once commercial operations under the lease begin, BOEM
will charge rent only for the portions of the Lease Area remaining
undeveloped (i.e., non-generating acreage).
If the Lessee submits an application for relinquishment of a
portion of its leased area within the first 45 calendar days after
receiving the lease copies from BOEM and BOEM approves that
application, no rent payment will be due on the relinquished portion of
the Lease Area. Later relinquishments of any portion of the Lease Area
will reduce the Lessee's rent payments starting in the year following
BOEM's approval of the relinquishment. A lease issued under this part
confers on the Lessee the right to one or more project easements,
without further competition, for the purpose of installing gathering,
transmission, and distribution cables, pipelines, and appurtenances on
the OCS as necessary for the full enjoyment of the lease. A Lessee must
apply for the project easement as part of the COP or SAP, as provided
under subpart F of 30 CFR part 585.
The Lessee must also pay rent for any project easement associated
with the lease, commencing on the date that BOEM approves the COP (or

[[Page 47180]]

modification thereof) that describes the project easement, with the
first rent payment due when the operations term begins, as outlined in
30 CFR 585.500(a)(5) and 585.507(b). Annual rent for a project easement
is $5 per acre, subject to a minimum of $450 per year.
b. Operating Fee: For purposes of calculating the initial annual
operating fee payment under 30 CFR 585.506, BOEM applies an operating
fee rate to a proxy for the wholesale market value of the electricity
expected to be generated from the project during its first 12 months of
operations. This initial payment will be prorated to reflect the period
between the commencement of commercial operations and the Lease
Anniversary. The initial annual operating fee payment is due within 45
days after commencement of commercial operations. Thereafter,
subsequent annual operating fee payments are due on or before the Lease
Anniversary.
The subsequent annual operating fee payments are calculated by
multiplying the operating fee rate by the imputed wholesale market
value of the projected annual electric power production. For the
purposes of this calculation, the imputed market value is the product
of the project's annual nameplate capacity, the total number of hours
in the year (8,760), the capacity factor, and the annual average price
of electricity derived from a regional wholesale power price index. For
example, the annual operating fee for a 976-megawatt (MW) wind facility
operating at a 30 percent capacity (i.e., capacity factor of 0.3) with
a regional wholesale power price of $40 per megawatt hour (MWh) and an
operating fee rate of 0.02 will be calculated as follows:
[GRAPHIC] [TIFF OMITTED] TN21JY23.003

i. Operating Fee Rate: The operating fee rate is the share of
imputed wholesale market value of the projected annual electric power
production due to ONRR as an annual operating fee. For the Lease Areas,
BOEM will set the fee rate at 0.02 (i.e., 2 percent) for the entire
life of commercial operations.
ii. Nameplate Capacity: Nameplate capacity is the maximum rated
electric output, expressed in MW, that the turbines of the wind
facility under commercial operations can produce at their rated wind
speed, as designated by the turbine's manufacturer. The nameplate
capacity available at the start of each year of commercial operations
on the lease will be the capacity provided in the Fabrication and
Installation Report (FIR). For example, if the Lessee installed 100
turbines, as documented in its FIR, and each is rated by the
manufacturer at 12 MW, the nameplate capacity of the wind facility
would be 1,200 MW.
iii. Capacity Factor: The capacity factor relates to the amount of
energy delivered to the grid during a period of time compared to the
amount of energy the wind facility would have produced at full capacity
during that same period of time. This factor is represented as a
decimal between zero (0) and one (1). There are several reasons why the
amount of power delivered is less than the theoretical 100 percent of
capacity. For a wind facility, the capacity factor is mostly determined
by the availability of wind. Transmission line loss and downtime for
maintenance or other purposes also affect the capacity factor.
BOEM will set the capacity factor at 0.3 (i.e., 30 percent) for the
year in which the commercial operations begin and for the first six
full years of commercial operations on the lease. At the end of the
sixth year, BOEM may adjust the capacity factor to reflect the
performance over the previous five years based upon the actual metered
electricity generation at the delivery point to the electrical grid.
BOEM may make similar adjustments to the capacity factor once every
five years thereafter.
iv. Wholesale Power Price Index: Under 30 CFR 585.506(c)(2)(i), the
wholesale power price, expressed in dollars per MWh, is determined at
the time each annual operating fee payment is due. For the leases
offered in this sale, BOEM will use the ERCOT (Galveston leases OCS-G
37335 and OCS-G 37336) and Louisiana MISO (Lake Charles lease OCS-G-
37334) average price per MW from the Enerfax power prices dataset
within Hitachi's ABB Velocity Suite. The Lessee may also use aggregated
data from commercial subscription services, such as S&P Global Market
Intelligence Platform.
c. Financial Assurance: Within 10 business days after receiving the
lease copies for execution and pursuant to 30 CFR 585.515-585.516, each
provisional winner must provide an initial lease-specific bond or other
BOEM-approved financial assurance instrument in the amount of $100,000.
The provisional winners may meet financial assurance requirements by
posting a surety bond or financial assurance instrument or alternative
detailed in 30 CFR 585.526-585.529. BOEM encourages the provisionally
winning bidders to discuss the financial assurance instrument
requirements with BOEM as soon as possible after the auction has
concluded.
BOEM will base the amount of all SAP, COP, and decommissioning
financial assurance on cost estimates for meeting all accrued lease
obligations at the respective stages of development. BOEM will
determine the required amount of supplemental and decommissioning
financial assurance on a case-by-case basis.
d. Payments: The annual lease payments and financial assurance
requirements described above can be found in Addendum ``B'' of the
leases, which BOEM has made available with this notice on its website
at: <a href="https://www.boem.gov/renewable-energy/state-activities/gulf-mexico-activities">https://www.boem.gov/renewable-energy/state-activities/gulf-mexico-activities</a>.

X. Bidder's Financial Form

Each bidder must fill out the BFF referenced in this FSN. A copy of
the form is available at: <a href="https://www.boem.gov/renewable-energy/state-activities/gulf-mexico-activities">https://www.boem.gov/renewable-energy/state-activities/gulf-mexico-activities</a>. Bidders seeking to use bidding
credits must mark the appropriate box(es) on their BFF and submit a
Conceptual Strategy(ies) with their BFF, as described in the BFF
Addendum. Bidders are encouraged to carefully read the BFF, BFF
Addendum, and lease. Bidders who do not wish to qualify for a bidding
credit should mark the box on their BFF next to the paragraph declining
the bidding credits. If the bidder does not select bidding credits on
the BFF or does not submit Conceptual Strategy(ies), then BOEM will
conclude that the bidder has no interest in qualifying for a bidding
credit. BOEM must receive each BFF and Conceptual Strategy(ies) no
later than August 6, 2023. If a bidder does not submit a BFF for this
sale by the deadline, BOEM, in its sole discretion, may grant an
extension to that bidder only if BOEM determines the bidder's failure
to timely submit a BFF was

[[Page 47181]]

caused by events beyond the bidder's control.
BFFs submitted by bidders for previous lease sales will not satisfy
the requirements of this auction. For the GOMW-1, BOEM will accept
bidder's BFFs and Conceptual Strategies electronically or by mail.
Instructions for submission can be found in the BFF. The BFF must be
executed on paper with a wet signature or with the application of a
digital signature by an authorized representative listed on the legal
qualification card currently on file with BOEM as authorized to bind
the company. Winning bidders who have committed to bidding credit(s)
must meet the bidding credit requirements no later than submission of
their first Facility Design Report (FDR) or applicable Lease
Anniversary, whichever is sooner.

XI. Bid Deposit

A bid deposit is an advance cash payment submitted to BOEM to
participate in the auction. ONRR will notify the bidders that they have
access to the Bid Deposit Form in <a href="http://pay.gov">pay.gov</a>, and bidders must use the Bid
Deposit Form on the <a href="http://pay.gov">pay.gov</a> website to leave a deposit. Bidders may
need to create an account in <a href="http://pay.gov">pay.gov</a> to access the Bid Deposit Form and
submit a deposit. Each bidder must submit a bid deposit of $2,000,000
no later than August 13, 2023, to be eligible to bid for one lease
area. Any bidder who fails to submit the bid deposit by this deadline
may be disqualified from participating in the auction. BOEM will
consider extensions to this deadline only if BOEM, in its sole
discretion, determines that the failure to timely submit the bid
deposit was caused by events beyond the bidder's control.
Following the auction, bid deposits will be applied against bonus
bids. Once BOEM has announced the provisional winners, BOEM will refund
bid deposits to the other bidders.
If BOEM offers a lease to a provisionally winning bidder and that
bidder fails to timely return the signed lease form, establish
financial assurance, or pay the balance of its bid, BOEM may retain the
bidder's $2,000,000 bid deposit. In such a circumstance, BOEM may
determine which bid would have won in the absence of the bid previously
determined to be the winning bid and may offer a lease to this next
highest bidder if the bidder that tendered it is not a provisionally
winning bidder of one of the other Lease Areas. This process will be
repeated if needed.

XII. Minimum Bid

The minimum bid is the lowest dollar amount per acre that BOEM will
accept as a winning bid and is the amount at which BOEM will start the
bidding in the auction. BOEM has established a minimum bid of $50.00
per acre for this lease sale. See the table in section XIII.d below for
total minimum bids for each lease to be offered in this sale.

XIII. Auction Procedures

Multiple-Factor Bidding Auction: As authorized by 30 CFR
585.220(a)(4) and 585.221(a)(6), BOEM will use a multiple-factor
bidding auction for this lease sale. The bidding system for this lease
sale will be a multiple-factor combination of a monetary bid and a non-
monetary factor. BOEM will grant bidding credits to potential bidders
for commitments to:
(1) supporting workforce training programs for the offshore wind
industry or developing a domestic supply chain for the offshore wind
industry, or a combination of both;
(2) establishing and contributing to a fisheries compensatory
mitigation fund or contributing to an existing fund to mitigate
potential negative impacts to commercial and for-hire recreational
fisheries caused by OCS offshore wind development in the GOM.
This auction format was selected to:
(1) enhance, through training, the offshore wind workforce and
accelerate the establishment of a domestic supply chain for offshore
wind manufacturing, assembly, or services, each of which will
contribute to the expeditious and orderly development of offshore wind
resources on the OCS;
(2) support the expeditious and orderly development of OCS
resources by mitigating potential direct impacts from proposed projects
and encouraging the investment in infrastructure necessary or
beneficial to the offshore wind industry; and
(3) minimize potential economic effects on commercial fisheries
impacted by potential offshore wind development.
BOEM appoints a panel to review the Conceptual Strategies, as they
are described in the BFF Addendum, prior to the auction. This panel
will later verify the results of the lease sale. Following the panel's
review of the Conceptual Strategy(ies) submitted by each bidder
attempting to qualify for a bidding credit, BOEM will notify the bidder
if it qualifies for a credit(s) prior to the mock auction. The bid made
by a particular bidder in each round is comprised of the sum of a
monetary factor (cash bid) and the value of any non-monetary factors
(bidding credit(s)). The structure of the proposed bidding credits is
explained in the subsection below.
A bidder may seek to qualify for one or both of the bidding
credits. The workforce training and/or domestic supply chain
development bidding credits is worth 20 percent of the cash bid. A
bidder may commit to both workforce training and supply chain
development, but the bidding credit for these commitments combined
would still be worth 20 percent of the cash bid. The GOM fisheries
compensatory mitigation fund bidding credit is worth 10 percent of the
cash bid. If a bidder qualifies for both of the bidding credits, the
credits are additive for a total credit of 30 percent of the cash bid.
Bidders are encouraged to review the BFF Addendum and lease obligations
if they are interested in qualifying for these bidding credits.
a. Bidding Credit Calculation: BOEM provides the following example.
For a cumulative 30 percent of cash bid bidding credit with a $50
million Asking Price, the bidding credit will be calculated (subject to
rounding) as follows:
[GRAPHIC] [TIFF OMITTED] TN21JY23.004

Workforce or Supply Chain Credit = $38,461,538 * 20% = $7,692,308
Fishing Mitigation Credit = $38,461,538 * 10% = $3,846,154

Both the 20 percent workforce training/supply chain development
credit and the 10 percent fisheries compensatory mitigation fund will
require an explicit financial commitment equal to the amount of the
credit.
BOEM has prepared a table demonstrating the credit value
calculations if a $50 million Asking

[[Page 47182]]

Price is paid for in part with various bidding credits. The same
calculations of cash bids and credits are applicable to exit bids, as
well as to live bids. Note that, in the monetary auction, all
fractional dollar amounts will be subject to rounding to the nearest
dollar.

----------------------------------------------------------------------------------------------------------------
Workforce
Asking training/ Fisheries
Qualified bidding credits price Cash bid Credit value supply chain compensatory
(million) development mitigation
value fund value
----------------------------------------------------------------------------------------------------------------
Workforce Training/Supply Chain $50 $38,461,538 $11,538,462 $7,692,308 $3,846,154
Development; and Fisheries Compensatory
Mitigation Fund (30%)..................
Workforce Training/Supply Chain 50 41,666,667 8,333,333 8,333,333 0
Development (20%)......................
Fisheries compensatory mitigation fund 50 45,454,545 4,545,455 0 4,545,455
(10%)..................................
----------------------------------------------------------------------------------------------------------------
Note: Cash bid and credit values are rounded to the nearest dollar in the Power Auctions software. BOEM will
then use those values to calculate the credit values and will also round to the nearest dollar.

b. 20 Percent Bidding Credit for Workforce Training or Supply Chain
Development or a Combination of Both: This bidding credit allows a
bidder to receive a credit of 20 percent of its cash bid in exchange
for a commitment to make a qualifying monetary contribution
(``Contribution''), in the same amount as the bidding credit received,
to programs or initiatives that support workforce training programs for
the U.S. offshore wind industry or development of a U.S. domestic
supply chain for the offshore wind industry, or both, as described in
the Lease.
i. The Contribution to workforce training must result in a better
trained and/or larger domestic offshore wind workforce that will
provide for more efficient operations via increasing the supply of
fully trained personnel. Training of existing Lessee employees, Lessee
contractors, or employees of affiliated entities will not qualify.
ii. The Contribution to domestic supply chain development must
result in (i) overall benefits to the U.S. offshore wind supply chain
available to all potential purchasers of offshore wind services,
components, or subassemblies, not solely the Lessee's project; (ii)
either the demonstrable development of new domestic capacity (including
vessels) or the demonstrable buildout of existing capacity; (iii) an
offshore wind domestic supply chain improved by a reduction in the
upfront capital or certification cost for manufacturing offshore wind
components, including the building of facilities, the purchasing of
capital equipment, and the certifying of existing manufacturing
facilities; or (iv) the development of a supply chain supporting the
manufacture of offshore wind facility components.
iii. Contributions cannot be used to satisfy private cost shares
for any Federal tax or other incentive programs where cost sharing is a
requirement. No portion of the Contribution may be used to meet the
requirements of any other bidding credits in this or in other Federal
lease sales for which the Lessee qualifies.
iv. Bidders interested in obtaining this bidding credit may choose
to commit to workforce training programs, domestic supply chain
initiatives, or a combination of both. The Conceptual Strategy must
describe verifiable actions that the Lessee will take that will allow
BOEM to confirm compliance when the documentation for satisfying the
bidding credit is submitted. The Contribution must be tendered in full,
and the Lessee must provide documentation evidencing it has made the
Contribution and complied with applicable requirements, no later than
the date the Lessee submits its first Facility Design Report (FDR) or
tenth Lease Anniversary, whichever is sooner.
v. Contributions to workforce training will need to promote and
support one or more of the following purposes: (i) Union
apprenticeships, labor management training partnerships, stipends for
workforce training, or other technical training programs or
institutions focused on providing skills necessary for the planning,
design, construction, operation, maintenance, or decommissioning of
offshore wind energy projects in the United States; (ii) Maritime
training necessary for the crewing of vessels to be used for the
construction, servicing, and/or decommissioning of wind energy projects
in the United States; (iii) Training workers in skills or techniques
necessary to manufacture or assemble offshore wind components,
subcomponents, or subassemblies. (Examples of these skills and
techniques include welding; wind energy technology; hydraulic
maintenance; braking systems; mechanical systems, including blade
inspection and maintenance; or computers and programmable logic control
systems.); (iv) Tribal offshore wind workforce development programs or
training for employees of wholly owned Tribal corporations in skills
necessary in the offshore wind industry, that lead to the expeditious
and orderly development of offshore wind; or (v) Training in any other
job skills that the Lessee can demonstrate are necessary for the
planning, design, construction, operation, maintenance, or
decommissioning of offshore wind energy projects in the United States.
vi. Contributions to domestic supply chain development must promote
and support one or more of the following: (i) Development of a domestic
supply chain for the offshore wind industry, including manufacturing of
components and sub-assemblies and the expansion of related services;
(ii) Domestic Tier 2 and Tier 3 offshore wind component suppliers and
domestic Tier-1 supply chain efforts, including quay-side fabrication;
(iii) Technical assistance grants to help U.S. manufacturers re-tool or
certify (e.g., ISO-9001) for offshore wind manufacturing; (iv)
Development of Jones Act-compliant vessels for the construction,
servicing, and/or decommissioning of wind energy projects in the United
States; (v) Purchase and installation of lift cranes capable of lifting
foundations, lift cranes on vessels, towers and nacelles quayside; (vi)
Port infrastructure directly related to offshore wind component
manufacturing or assembly of major offshore wind facility components;
(vii) Establishing a new or existing bonding support reserve or
revolving fund available to all businesses providing goods and services
to offshore wind energy companies, including disadvantaged businesses
and/or wholly owned Tribal corporations; or (viii) Other supply chain
development efforts that the Lessee can demonstrate advance the
manufacturing of offshore wind components or subassemblies, or the
provision of offshore wind services, in the United States.
vii. Documentation: If a lease is issued pursuant to a winning bid
that includes a bidding credit for workforce training/

[[Page 47183]]

supply chain development, the Lessee is required to provide
documentation showing that the Lessee has met the financial commitment
before the Lessee submits the first FDR for the lease or the tenth
Lease Anniversary, whichever is sooner. The documentation must allow
BOEM to objectively verify the amount of the Contribution and the
beneficiary(ies) of the Contribution.
At a minimum, the documentation must include: all written
agreements between the Lessee and beneficiary(ies) of the Contribution,
which agreement must detail the amount of the Contribution(s) and how
it will be used by the beneficiaries of the Contribution(s) to satisfy
the goals of the bidding credit for which the Contribution was made;
all receipts documenting the amount, date, financial institution, and
the account and owner of the account to which the Contribution was
made; and sworn statements by the entity that made the Contribution and
attesting that all information provided in the above documentation is
true and accurate. The documentation needs to describe how the funded
initiative or program has advanced, or is expected to advance, U.S.
offshore wind workforce training or supply chain development. The
documentation must also provide qualitative and/or quantitative
information that includes the estimated number of trainees or jobs
supported, or the estimated leveraged supply chain investment resulting
or expected to result from the Contribution. The documentation must
contain any information called for in the conceptual strategy that the
Lessee submitted with its BFF and allow BOEM to objectively verify (i)
the amount of the Contribution; (ii) the beneficiary(ies) of the
Contribution; and (iii) compliance with the bidding credit criteria
provided in Addendum ``C'' of the Lease. If the Lessee's implementation
of its Conceptual Strategy changes due to market needs or other
factors, the Lessee must explain the changes. BOEM reserves the right
to determine that the bidding credit has not been satisfied if changes
from the Lessee's Conceptual Strategy result in the Lessee not meeting
the criteria for the bidding credit described in Addendum ``C'' of the
Lease.
viii. Enforcement: The commitment for the bidding credit is made
via the BFF and will be included in a lease addendum that binds the
Lessee and all future assignees of the lease. If BOEM were to determine
that a Lessee or assignee had failed to satisfy the requirements of the
bidding credit, or if a Lessee were to relinquish or otherwise fail to
develop the lease by the tenth Lease Anniversary, the amount
corresponding to the bidding credit awarded will be immediately due and
payable to the Office of Natural Resources Revenue (ONRR) with interest
from the lease Effective Date. The interest rate is the underpayment
interest rate identified by ONRR. The Lessee need not be required to
pay said amount if the Lessee satisfied its bidding credit requirements
but failed to develop the lease by the tenth Lease Anniversary. BOEM
may, at its sole discretion, extend the documentation deadline beyond
the first FDR submission or extend the lease development deadline
beyond the 10-year timeframe.
c. 10 Percent Bidding Credit for Fisheries Compensatory Mitigation
Fund: The second bidding credit allows a bidder to receive a credit of
10 percent of its cash bid in exchange for a commitment to establish--
and contribute the bidding credit amount to--a Fisheries Compensatory
Mitigation Fund, or to contribute to such an existing fund, to
compensate for potential negative impacts from project development to
commercial and for-hire recreational fisheries. The term ``commercial
fisheries'' refers to commercial and processor businesses engaged in
the act of catching and marketing fish and shellfish for sale from the
GOM. The term ``for-hire recreational fisheries'' refers to charter and
head boat fishing operations involving vessels-for-hire engaged in
recreational fishing in the GOM that are hired for a charter fee by an
individual or group of individuals (for the exclusive use of that
individual or group of individuals). Lessees are encouraged to
contribute to a regional fund that will compensate fisheries losses
resulting from all OCS wind energy leases and easements in the GOM. The
compensation must address the following:
<bullet> Gear loss or damage
<bullet> Lost fishing income in GOM wind energy Lease or Project Areas
The fisheries compensatory mitigation fund will assist commercial
and for-hire recreational fisheries directly impacted by income or gear
losses due to offshore wind activities on offshore wind leases or
easements and is intended to address the impacts identified in BOEM's
environmental and project reviews. The compensatory mitigation must
cover impacts that result directly from the preconstruction,
construction, operations and/or decommissioning of an offshore wind
project being developed on GOM wind energy leases or easements. The
fund must be established and the Contribution made before the Lessee
submits the lease's first FDR or the fifth Lease Anniversary, whichever
is sooner. To qualify for this credit, the bidder must commit to the
bidding credit requirements on the BFF and submit a Conceptual Strategy
as described in the BFF Addendum.
i. Bidders committing to use the Fisheries Compensatory Mitigation
Fund bidding credit must submit their Conceptual Strategy with their
BFF, as described in the BFF Addendum. The Conceptual Strategy must
describe the actions that the Lessee intends to take that will allow
BOEM to verify compliance when the Lessee seeks to demonstrate
satisfaction of the requirements for the bidding credit. The Lessee
will be required to provide documentation showing that the Lessee has
met the commitment and complied with the applicable bidding credit
requirements before the Lessee submits the lease's first FDR or the
fifth Lease Anniversary, whichever is sooner.
ii. Gear loss and damage, and fishing income loss claims must be
prioritized at each phase of offshore wind project development,
including impacts from surveys conducted before the establishment of
the fund. BOEM encourages Lessees to coordinate with other Lessees to
establish or contribute to a regional fund. A regional fund should be
flexible enough to incorporate future contributions from future lease
auctions and actuarially sound, in recognition of the multi-decade life
of offshore wind projects in the GOM. While the fund's first priority
must be to compensate for gear loss or damage and income loss, funds
that exceed this compensation need based on an actuarial accounting
may, for example, be used to:
a. Promote participation of fishers and fishing communities in the
project development process or other programs that better enable the
fishing and offshore wind industries to co-exist;
b. Offset the cost of gear and navigational aid upgrades and other
transitions for operating within an offshore wind project.
Any fund established or selected by the Lessee to meet this sale's
bidding credit requirement must include a process for evaluating the
actuarial status of funds every five years and publicly reporting
information on fund disbursements and administrative costs at least
annually.
iii. The fisheries compensatory mitigation fund must be
independently managed by a third party and designed with fiduciary
governance and strong internal controls while minimizing administrative
expenses. The

[[Page 47184]]

Contribution may be used for fund startup costs, but the Fund should
minimize costs by leveraging existing processes, procedures and
information from BOEM Fisheries Mitigation Guidance, the Eleven
Atlantic States' Fisheries Mitigation Project or other sources.
iv. Documentation: If a lease is awarded pursuant to a winning bid
that includes a Fisheries Compensatory Mitigation Fund bidding credit,
the Lessee must provide written documentation to BOEM that demonstrates
that it completed the fund contribution before it submits the lease's
first FDR or the fifth Lease Anniversary, whichever is sooner. The
documentation must enable BOEM to objectively verify the contribution
has met all applicable requirements as outlined in Addendum ``C'' of
the Lease. At a minimum, this documentation must include:
<bullet> the procedures established to compensate for gear loss or
damage resulting from all phases of the project development on the
Lease Area (pre-construction, construction, operation, and
decommissioning);
<bullet> the fisheries compensatory mitigation fund charter,
including the governance structure, audit and public reporting
procedures, internal controls, and standards for paying compensatory
mitigation for impacts to fishers from development on wind energy Lease
Areas in the GOM;
<bullet> all receipts documenting the amount, date, financial
institution, and the account and owner of the account to which the
Contribution was made, including any qualifying payments made in
advance of the fund being established; and
<bullet> sworn statements by the entity that made the Contribution,
and the independent Fund custodian attesting:
[cir] the amount and date(s) of the Contribution;
[cir] that the Contribution is being (or will be) used in
accordance with the bidding credit requirements in the lease; and
[cir] that all information provided is true and accurate.
The documentation must contain any information specified in the
conceptual strategy that was submitted with the BFF, including the
mechanism established to compensate for lost income or for gear loss or
damage during pre-construction, construction, operation, and
decommissioning activities. If the Lessee's implementation of its
Conceptual Strategy changes due to market needs or other factors, the
Lessee must explain the changes. BOEM reserves the right to determine
that the bidding credit has not been satisfied if changes from the
Lessee's Conceptual Strategy result in the Lessee not meeting the
criteria for the bidding credit described in Addendum ``C'' of the
Lease.
v. Enforcement: The commitment to the fisheries compensatory
mitigation fund bidding credit will be made in the BFF. It will be
included in Addendum ``C'' of the Lease, and will bind the Lessee and
all future assignees of the lease. If BOEM determines that a Lessee or
assignee had failed to satisfy the commitment at the time the first FDR
is submitted, or by the fifth Lease Anniversary, the amount
corresponding to the bidding credit awarded will be immediately due and
payable to ONRR with interest from the lease Effective Date. The
interest rate is the underpayment interest rate identified by ONRR. The
Lessee will not be required to pay said amount if the Lessee satisfied
its bidding credit requirements by the fifth Lease Anniversary. BOEM
may, at its sole discretion, extend the documentation deadline beyond
the first FDR submission or beyond the 5-year timeframe.
d. The Auction: Using an online bidding system to host the auction,
BOEM will start the bidding for Lease Areas OCS-G 37334 through 37336,
as described below. All three Lease Areas will be offered in a single
auction. BOEM is employing a `one-per-customer' rule for this auction.
Each bidder may only bid for one of the offered Lease Areas at a time
and, ultimately, acquire only one of the Lease Areas in the auction.

----------------------------------------------------------------------------------------------------------------
Lease area name Lease area ID Acres Minimum bid
----------------------------------------------------------------------------------------------------------------
Lake Charles........................................... OCS-G37334 102,480 $5,124,000
Galveston I............................................ OCS-G37335 102,480 5,124,000
Galveston II........................................... OCS-G37336 96,786 4,839,300
----------------------------------------------------------------------------------------------------------------

e. Live Bids: The auction will be conducted in a series of rounds.
At the start of each round, BOEM will state an asking price for each
Lease Area. If a bidder is willing to meet that asking price for one of
the Lease Areas, it will indicate its intent by submitting a bid equal
to the asking price for the selected lease area. A bid at the full
asking price is referred to as a ``live bid.'' If the bidder has
qualified for a non-monetary credit, it will meet the asking price by
submitting a multiple-factor bid--that is, a live bid that consists of
a monetary (cash) element and a non-monetary credit (10%, 20%, or 30%
of the cash element, depending on the bidder's qualification for
bidding credits), the sum of which equals the asking price. A bidder
without a non-monetary credit will submit a cash bid equal to the
asking price. To participate in the next round of the auction, a bidder
is required to have submitted a live bid for one of the Lease Areas (or
have a carried-forward bid) in each previous round.
As long as there are two or more live bids (including carried-
forward bids) for at least one of the Lease Areas, the auction moves to
the next round. BOEM will raise the asking price for each Lease Area
that received two or more live bids in the previous round. Asking price
increments will be determined based on several factors, including, but
not necessarily limited to, the expected time needed to conduct the
auction and the number of rounds that have already occurred. BOEM
reserves the right to increase or decrease bidding increments as it
deems appropriate. If there was only one live bid (including carried-
forward bids) or no live bids for a Lease Area in the previous round,
the asking price will not be increased.
A live bid is automatically carried forward if it was uncontested
in the previous round (i.e., if it was the only live bid for that Lease
Area in the previous round), and the bidder who placed the uncontested
bid will not be permitted to place any other bid in the current round
of the auction.
Conversely, if a live bid was contested in the previous round
(i.e., if there was at least one other live bid for the same Lease
Area, including carried-forward bids), the bidder who placed the
contested bid is free to bid on any Lease Area in the auction in the
next round, at the new asking price.
A bidder's eligibility is for either one or zero lease areas and
corresponds to the maximum number of lease areas that a bidder may
include in a live bid during a single round of the auction. The initial
eligibility of a bidder who has submitted a bidding deposit is one.

[[Page 47185]]

The bidder's eligibility drops to zero following a round in which the
bidder's live bid is not carried forward and in which the bidder does
not submit a new live bid for one of the Lease Areas. The bidder's
eligibility can never increase from zero to one.
If a bidder decides to stop bidding before the final round of the
auction, there are circumstances in which the bidder could nonetheless
win a lease. For example, that bidder could be ultimately selected in
the winner determination that is described in detail below, or the
provisionally winning bidder could be disqualified at the award stage
of the auction. In these circumstances, the bidder will be bound by its
bid and thus obligated to pay the full bid amount. Bidders therefore
might be bound by any of their bids up to and until the point at which
the auction results are finalized.
Between rounds, BOEM will disclose to all bidders that submitted
bids: (1) the number of live bids (including carried-forward bids) for
each Lease Area in the previous round of the auction (i.e., the level
of demand at the asking price); and (2) the asking price for each Lease
Area in the upcoming round of the auction.
f. Exit Bids: In any round after the first round, a bidder may
submit an ``exit bid'' (also known as an ``intra-round bid'') only for
the same Lease Area as the bidder's contested live bid in the previous
round. An exit bid is a bid that is greater than the previous round's
asking price, but less than the current round's asking price. An exit
bid is not a live bid, and it represents the final bid that a bidder
may submit in the auction. A bidder may not submit both an exit bid on
one of the Lease Areas and a live bid on a different Lease Area. During
the auction, the exit bid can be seen only by BOEM and not by other
bidders.
The auction ends when a round occurs in which each of the Lease
Areas in the auction receives one or zero live bids (including carried-
forward bids), regardless of the number of exit bids on any Lease Area.
Determination of Provisional Winners: After the bidding ends, BOEM
will determine the provisionally winning bid for each Lease Area by the
following two-stage procedure.
In stage one, the highest bid (live bid, including any carried-
forward bid, or exit bid) received for each Lease Area in the final
round will be designated the provisionally winning bid, if there is a
single highest bid. In the event of a tie (i.e., if two or more bidders
submitted identical highest exit bids for the same Lease Area), the
selection of one of the highest exit bids will be deferred until stage
two.
In stage two, BOEM will consider bids from all bidding rounds for
Lease Areas that were not assigned in stage one made by bidders who
were not assigned a Lease Area in stage one. BOEM will select the
combination of such bids that maximizes the sum of the bid amounts of
the selected bids, subject to the following constraints: (1) each Lease
Area that received multiple highest exit bids in the final round (but
no live bid) must be assigned to one of the bidders that submitted the
highest exit bid; (2) at most one bid from each bidder can be selected;
and (3) at most one bid for each Lease Area can be selected. If there
is a unique combination of bids that solves this maximization problem,
then these bids will be deemed to be the remaining provisionally
winning bids. If two or more combinations of bids tie by producing the
same maximized sum of bid amounts, the auction system will select one
of the combinations by use of pseudorandom numbers. The provisional
winners will pay the amounts of their provisionally winning bids, or
risk forfeiting their bid deposits. A provisional winner will be
disqualified if it is subsequently found to have violated auction rules
or BOEM regulations, or otherwise engaged in conduct detrimental to the
integrity of the competitive auction. If a bidder submits a bid that
BOEM determines to be a provisionally winning bid, the bidder must sign
the applicable lease documents, establish financial assurance, and
submit the cash balance (if any) of its bid (i.e., its winning cash bid
less its bid deposit) within 10 business days of receiving the lease
copies, pursuant to 30 CFR 585.224. BOEM reserves the right not to
issue the lease to a provisionally winning bidder if that bidder fails
to: timely return the signed lease form, establish adequate financial
assurance, pay the balance of its winning bid, or otherwise comply with
applicable regulations or the terms of the FSN. In that case, the
bidder will forfeit its bid deposit.
BOEM will publish the provisional winners and the provisionally
winning bid amounts shortly after the conclusion of the sale. Full bid
results, including round-by-round results of the entire sale, including
exit bids, will be published on BOEM's website after review of the
results and announcement of the provisional winners.
g. Additional Information Regarding the Auction Format:
i. Authorized Individuals and Bidder Authentication: A company that
is eligible to participate in the auction will identify on its BFF up
to three individuals who are authorized to bid on behalf of the
company, including their names, business telephone numbers, and email
addresses. After BOEM has processed the bid deposits, the auction
contractor will send several emails to the authorized individuals. The
emails will contain user login information and instructions for
accessing the bidder manual for the auction system and any auction
system technical supplement (ASTS) that may be issued.
The auction system will require software tokens for two-factor
authentication. To set up the tokens, authorized individuals will
download an app onto their smartphone or tablet with a recent operating
system. One of the emails sent to authorized individuals will contain
instructions for installing the app and the credentials needed to
activate the software token. A short telephone conversation with the
auction contractor may also be required to use the credentials. The
login information, along with the tokens, will be tested during the
mock auction. If an eligible bidder fails to submit a bid deposit or
does not participate in the auction, BOEM will deactivate that bidder's
tokens and login information.
ii. Timing of Auction: The auction will begin at 8:00 a.m. CDT on
August 29, 2023. Bidders may log in as early as 7:30 a.m. CDT on that
day. BOEM recommends that bidders log in earlier than 8:00 a.m. CDT on
that day to ensure that any login issues are resolved prior to the
start of the auction. Once bidders have logged in, they should review
the auction schedule, which lists the anticipated start times, end
times, and recess times of each round in the auction. Each round is
structured as follows:
<bullet> Round bidding begins;
<bullet> Bidders enter their bids;
<bullet> Round bidding ends and the recess begins;
<bullet> During the recess, previous round results and next round
asking prices are posted;
<bullet> Bidders review the previous round results and prepare
their next round bids; and
<bullet> Next round bidding begins.
The first round will last about 30 minutes, though subsequent
rounds will be substantially shorter. Recesses are anticipated to last
approximately 10 minutes. This description of the auction schedule is
tentative. Bidders should consult the auction schedule on the auction
system during the auction for updated times. Bidding will continue
until about 5:00 p.m. CDT each day. BOEM anticipates that the auction
will last one to two business days, but may

[[Page 47186]]

continue for additional business days as necessary until the auction
has concluded.
iii. Messaging Service: BOEM and its auction contractors will use
the auction platform messaging service to keep bidders informed on
issues of interest during the auction. For example, BOEM may change the
schedule at any time, including during the auction. If BOEM changes the
schedule during an auction, it will use the messaging service to notify
bidders that a revision has been made and will direct bidders to the
relevant page. BOEM will also use the messaging service for other
updates during the auction.
Bidders may place bids at any time during the round. At the top of
the bidding page, a countdown clock shows how much time remains in the
round. Bidders have until the end of the round to place bids. Bidders
should place bids according to the procedures described in this notice
and the Bidder Manual. Information about the round results will only be
made available after the round has closed, so there is no strategic
advantage in placing bids early or late in the round.
BOEM may issue an ASTS to elaborate on the auction procedures
described in this FSN. In the event of any inconsistency between the
Bidder Manual, the ASTS, and the FSN, the FSN will be controlling.
iv. Alternate Bidding Procedures: Redundancy is the most effective
way to mitigate technical and human issues during an auction. Bidders
should strongly consider authorizing more than one individual to bid in
the auction--and confirming during the mock auction that each
individual is able to access the auction system. A 4G card or other
form of wireless access is helpful in case a company's main internet
connection should fail. As a last resort, an authorized individual who
is facing technical issues may request to submit its bid by telephone.
In order to be authorized to place a telephone bid, an authorized
individual must call the help desk number listed in the auction manual
before the end of the round. BOEM will authenticate the caller's
identity, including requiring the caller to provide a code from the
software token. The caller must also explain the reasons why a
telephone bid needs to be submitted. BOEM may, in its sole discretion,
permit or refuse to accept a request for the placement of a bid using
this alternate telephonic bidding procedure.
h. Prohibition on Communications Between Bidders During Auction:
During the auction, bidders are prohibited from communicating with each
other regarding their participation in the auction. Also, during the
auction, bidders are prohibited from communicating to the public
regarding any aspect of their participation or lack thereof in the
auction, including, but not limited to, through social media, updated
websites, or press releases.

XIV. Post-Auction Procedures

a. Rejection or Non-Acceptance of Bids

BOEM reserves the right to reject any and all bids that do not
satisfy the requirements and rules of the auction, the FSN, or
applicable regulations and statutes.

b. Anti-Competitive Review

Bidding behavior in this sale is subject to Federal antitrust laws.
Following the auction, but before the acceptance of bids and the
issuance of the lease, BOEM will ``allow the Attorney General, in
consultation with the Federal Trade Commission, thirty days to review
the results of [the] lease sale.'' 43 U.S.C. 1337(c)(1). If a
provisionally winning bidder is found to have engaged in anti-
competitive behavior in connection with this lease sale, BOEM will
reject its provisionally winning bid. Compliance with BOEM's auction
procedures and regulations is not an absolute defense to violations of
antitrust laws.
Anti-competitive behavior determinations are fact-specific. Such
behavior may manifest itself in several different ways, including, but
not limited to:
1. An express or tacit agreement among bidders not to bid in an
auction, or to bid a particular price;
2. An agreement among bidders not to bid;
3. An agreement among bidders not to bid against each other; or
4. Other agreements among bidders that have the potential to affect
the final auction price.
Pursuant to 43 U.S.C. 1337(c)(3), BOEM will decline to award a
lease if the Attorney General, in consultation with the Federal Trade
Commission, determines that awarding the lease would be inconsistent
with antitrust laws.
For more information on whether specific communications or
agreements could constitute a violation of Federal antitrust law,
please see <a href="https://www.justice.gov/atr/business-resources">https://www.justice.gov/atr/business-resources</a> or consult
legal counsel.

c. Process for Issuing the Lease

Once all post-auction reviews have been completed to BOEM's
satisfaction, BOEM will provide three unsigned copies of the lease to
each provisionally winning bidder. Within 10 business days after
receiving the lease copies, the provisionally winning bidders must:
1. Sign and return the lease copies on the bidder's behalf;
2. File financial assurance, as required under 30 CFR 585.515-537;
and
3. Pay by electronic funds transfer (EFT) the balance (if any) of
the bonus bid (winning cash bid less the bid deposit). BOEM requires
bidders to use EFT procedures (not <a href="http://pay.gov">pay.gov</a>, the website bidders used to
submit bid deposits) for payment of the balance of the bonus bid,
following the detailed instructions available on ONRR's website at:
<a href="https://onrr.gov/paying/payment-options?tabs=renewable-energy,bid-deposit-options">https://onrr.gov/paying/payment-options?tabs=renewable-energy,bid-deposit-options</a>.
BOEM will not execute the lease until the three requirements above
have been satisfied, BOEM has accepted the provisionally winning
bidder's financial assurance pursuant to 30 CFR 585.515, and BOEM has
processed the provisionally winning bidder's payment. BOEM may extend
the 10-business-day deadline for signing a lease, filing the required
financial assurance, and paying the balance of the bonus bid if BOEM
determines, in its sole discretion, that the provisionally winning
bidder's inability to comply with the deadline was caused by events
beyond the provisionally winning bidder's control pursuant to 30 CFR
585.224(e).
If a provisionally winning bidder does not meet these requirements
or otherwise fails to comply with applicable regulations or the terms
of the FSN, BOEM reserves the right not to issue the lease to that
bidder. In such a case, the provisionally winning bidder will forfeit
its bid deposit. Also, in such a case, BOEM reserves the right to
identify the next highest bid for that Lease Area submitted during the
lease sale by a bidder who has not won one of the other Lease Areas and
to offer the lease to that bidder pursuant to its bid.
Within 45 calendar days of the date that a provisionally winning
bidder receives lease copies, each provisionally winning bidder will be
required to pay the first year's rent using the ``ONRR Renewable Energy
Initial Rental Payments'' form available at: <a href="https://www.pay.gov/public/form/start/27797604/">https://www.pay.gov/public/form/start/27797604/</a>.
Subsequent annual rent payments will be required to be made
following the detailed instructions available on ONRR's website at:
<a href="https://onrr.gov/paying/payment-options?tabs=rent-payments">https://onrr.gov/paying/payment-options?tabs=rent-payments</a>.

[[Page 47187]]

d. Non-Procurement Debarment and Suspension Regulations

Pursuant to 43 CFR part 42, subpart C, an OCS renewable energy
Lessee will be required to comply with the Department of the Interior's
non-procurement debarment and suspension regulations at 2 CFR parts 180
and 1400. The Lessee must also communicate this requirement to persons
with whom the Lessee does business relating to this lease by including
this requirement as a condition in their contracts and other
transactions.

e. Changes to Auction Details

The Regional Director of BOEM's Gulf of Mexico Regional Office has
the discretion to change any auction detail specified in the FSN,
including the date and time, if s/he deems that events outside BOEM's
control may interfere with a fair and proper lease sale. Such events
may include, but are not limited to, natural disasters (e.g.,
earthquakes, hurricanes, floods, and blizzards), wars, riots, act of
terrorism, fire, strikes, civil disorder, Federal Government shutdowns,
cyberattacks against relevant information systems, or other events of a
similar nature. In case of such events, BOEM would notify all qualified
bidders via email, phone, and BOEM's website at: <a href="https://www.boem.gov/renewable-energy/state-activities/gulf-mexico-activities">https://www.boem.gov/renewable-energy/state-activities/gulf-mexico-activities</a>. Bidders
should call (504) 736-7502 if they have concerns.

f. Withdrawal of Blocks

BOEM reserves the right to withdraw all or portions of the Lease
Areas prior to executing the leases with the winning bidders. If BOEM
exercises this right, it will refund bid deposits to winning bidders,
without interest, as provided in 30 CFR 585.224(f).

g. Appeals

The bid rejection procedures are provided in BOEM's regulations at
30 CFR 585.225 and 585.118(c). Under 30 CFR 585.225:
(a) If BOEM rejects your bid, BOEM will provide a written statement
of the reasons and will refund any money deposited with your bid,
without interest.
(b) You will then be able to ask the BOEM Director for
reconsideration, in writing, within 15 business days of bid rejection,
under 30 CFR 585.118(c)(1). The Director will send you a written
response either affirming or reversing the rejection.
The procedures for requesting reconsideration of a bid rejection
are described in 30 CFR 585.118(c).

h. Protection of Privileged or Confidential Information

BOEM will protect privileged or confidential information that the
Lessee submits, as authorized by the Freedom of Information Act (FOIA),
30 CFR 585.114, or other applicable statutes. If the Lessee wishes to
protect the confidentiality of information, the Lessee should clearly
mark it ``Contains Privileged or Confidential Information'' and
consider submitting such information as a separate attachment. BOEM
will not disclose such information, except as required by FOIA. If your
submission is requested under the FOIA, your information will only be
withheld if a determination is made that one of the FOIA's exemptions
to disclosure applies. Such a determination will be made in accordance
with the Department's FOIA regulations and applicable law. Labeling
information as privileged or confidential will alert BOEM to more
closely scrutinize whether it warrants withholding. Further, BOEM will
not treat as confidential aggregate summaries of otherwise
nonconfidential information.

XV. Compliance With the Inflation Reduction Act (Pub. L. 117-169 (Aug.
16, 2022) (Hereinafter, the ``IRA'')

Section 50265(b)(2) of the IRA provides that ``[d]uring the 10-year
period beginning on the date of enactment of this Act . . . the
Secretary may not issue a lease for offshore wind development under
section 8(p)(1)(C) of the Outer Continental Shelf Lands Act (43 U.S.C.
1337(p)(1)(C)) unless--(A) an offshore [oil and gas] lease sale has
been held during the 1-year period ending on the date of the issuance
of the lease for offshore wind development; and (B) the sum total of
acres offered for lease in offshore [oil and gas] lease sales during
the 1-year period ending on the date of the issuance of the lease for
offshore wind development is not less than 60,000,000 acres.'' Section
50264(d) of the IRA provides that ``. . . not later than March 31,
2023, the Secretary shall conduct Lease Sale 259[.]'' Lease Sale 259
was held on March 29, 2023, and at least one lease from the sale has
been issued, satisfying the requirements in section 50265(b)(2) of the
IRA for any lease issued by March 29, 2024. BOEM expects to issue any
leases resulting from GOMW-1 no later than the one-year anniversary of
Lease Sale 259.
Authority: 43 U.S.C. 1337(p); 30 CFR 585.211 and 585.216.

Elizabeth Klein,
Director, Bureau of Ocean Energy Management.
[FR Doc. 2023-15501 Filed 7-20-23; 8:45 am]
BILLING CODE 4340-98-P

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