Notice2026-21462
American Samoa Outer Continental Shelf Pacific Mineral Lease Sale 1
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
October 20, 2026
Issuing agencies
Interior DepartmentOcean Energy Management Bureau
Abstract
The Marine Minerals Administration (MMA) will conduct an auction for lease areas offered in the American Samoa Outer Continental Shelf (OCS) Pacific Mineral Lease Sale 1 (Lease Sale PACM-1), in accordance with the Outer Continental Shelf Lands Act (OCSLA), as amended, and its implementing regulations. The Final Leasing Notice (FLN) package for this lease sale contains information essential to potential bidders, including Information to Lessees and Lease Stipulations.
Full Text
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<title>Federal Register, Volume 91 Issue 201 (Tuesday, October 20, 2026)</title>
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[Federal Register Volume 91, Number 201 (Tuesday, October 20, 2026)]
[Notices]
[Pages 66352-66358]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-21462]
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DEPARTMENT OF THE INTERIOR
Bureau of Ocean Energy Management
[Docket No. BOEM-2026-0331]
American Samoa Outer Continental Shelf Pacific Mineral Lease Sale
1
AGENCY: Bureau of Ocean Energy Management, Interior.
ACTION: Final leasing notice.
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SUMMARY: The Marine Minerals Administration (MMA) will conduct an
auction for lease areas offered in the American Samoa Outer Continental
Shelf (OCS) Pacific Mineral Lease Sale 1 (Lease Sale PACM-1), in
accordance with the Outer Continental Shelf Lands Act (OCSLA), as
amended, and its implementing regulations. The Final Leasing Notice
(FLN) package for this lease sale contains information essential to
potential bidders, including Information to Lessees and Lease
Stipulations.
DATES: MMA will hold Lease Sale PACM-1 on Thursday, November 19, 2026,
at 9:00 a.m. All times referred to in this document will be Pacific
Time, unless otherwise specified. Lease areas will be awarded through
an ascending oral auction. For more information on bid submission and
auction rules, see Section VII of this document, ``Bidding
Instructions.''
ADDRESSES: Interested parties may download the FLN package, and
associated maps, from MMA's website at <a href="https://www.boem.gov/marine-minerals/american-samoa-activities">https://www.boem.gov/marine-minerals/american-samoa-activities</a>. Copies of the FLN and sale maps can
also be obtained by contacting the MMA Pacific Regional Office at this
address: Marine Minerals Administration, 760 Paseo Camarillo (CM 102),
Camarillo, CA 93010, (805) 384-6305.
FOR FURTHER INFORMATION CONTACT: Joshua Gange, Supervisor for Leasing
and Technical Review, Marine Minerals Administration, Pacific Region,
760 Paseo Camarillo, CA 93010, at <a href="/cdn-cgi/l/email-protection#d686b7b5bfb0bfb5f884b3b1bfb9b896b4b9b3bbf8b1b9a0"><span class="__cf_email__" data-cfemail="71211012181718125f231416181e1f31131e141c5f161e07">[email protected]</span></a> and (805)
384-6305.
SUPPLEMENTARY INFORMATION:
Authority: This sale will be held pursuant to the requirements of
and is published pursuant to 43 U.S.C. 1331 et seq. (Outer Continental
Shelf Lands Act, as amended) and 30 CFR part 581, subpart B--Leasing
Procedures. Secretary's Order 3451 established the Marine Minerals
Administration (MMA), which replaced BOEM, and provided for a
transition period during which existing MMA officials retain
operational authority necessary for the uninterrupted accomplishment of
its mission. That transition period is ongoing. Accordingly, this
notice references both BOEM and MMA but is issued under the authority
of the MMA.
Table of Contents
I. Lease Sale Area
II. Statutes and Regulations
III. Lease and Fiscal Terms
IV. Lease Stipulations
V. Information to Lessees
VI. Maps
VII. Bidding Instructions
VIII. The Lease Sale
IX. Bidding Rules
X. Delay of Sale
[[Page 66353]]
I. Lease Sale Area
MMA is offering for bid in Lease Sale PACM-1 all available unleased
acreage as identified on the map entitled, ``American Samoa OCS Mineral
Lease Sale Areas Final Leasing Notice (Lease Sale PACM-1).'' Two
individual lease areas have been identified; OCS-P 0568 is
approximately 16,332,256 acres and OCS-P 0569 is approximately
15,170,979 acres. The final list of blocks available for bid is posted
on MMA's website at <a href="https://www.boem.gov/marine-minerals/american-samoa-activities">https://www.boem.gov/marine-minerals/american-samoa-activities</a>.
[GRAPHIC] [TIFF OMITTED] TN20OC26.045
MMA's Official Protraction Diagrams (OPDs) and Supplemental OPDs
for the lease areas are available online at <a href="https://www.boem.gov/pacific-cadastral-data">https://www.boem.gov/pacific-cadastral-data</a>. All blocks are shown on the following OPDs:
Achilles Tang (SC02-03)
Hutchinson Seamount (SD02-03)
Small Toothed Jobfish (SD02-09)
Dusky Frillgoby (SD02-12)
Arrowhead Soapfish (SE02-09)
Flowery Flounder (SE02-12)
Slimy Cuskeel (SD03-01)
Honeycomb Toby (SD03-02)
Sixblotch Hind (SD03-04)
Sculptured Pipefish (SD03-05)
Paletail Chromis (SD03-07)
Mosaic Gulper Shark (SD03-08)
Clown Coris (SD03-10)
Knife Razorfish (SE03-07)
Dusky Sleeper (SE03-10)
Brokenbar Dwarfgoby (SE03-11)
II. Statutes and Regulations
Each lease is issued pursuant to OCSLA, 43 U.S.C. 1331 et seq., as
amended, and is subject to OCSLA's implementing regulations in 30 CFR
part 581, and other applicable statutes and regulations in existence
upon the effective date of the lease, as well as those applicable
statutes enacted and regulations promulgated thereafter, except to the
extent that the after-enacted statutes and regulations conflict with an
express provision of the lease. Each lease is subject to amendments to
statutes and regulations, including but not limited to OCSLA, that do
not explicitly conflict with an express provision of the lease. The
Lessee expressly bears the risk that such new or amended statutes and
regulations (i.e., those that do not conflict with an express provision
of the lease) may increase or decrease the Lessee's obligations under
the lease.
The lease and fiscal terms, along with MMA's ascending oral auction
format, will ensure that the United States receives fair market value
(FMV) for each lease area offered. The auction winner will be
provisionally awarded the lease (assuming the winner did not violate
any rules), and final issuance of the executed lease will take place
after the sale date as outlined in the section entitled, ``Acceptance,
Rejection, or Return of Bids.''
III. Lease and Fiscal Terms
MMA is offering two lease areas for development of all marine
minerals or metals found in polymetallic nodules and ferromanganese
crust deposits discovered within the leased area. Any lease(s) that are
issued will grant the Lessee(s) an opportunity to identify mineral
deposits and seek approval to
[[Page 66354]]
develop these deposit types and minerals, as well as any minerals
produced incidental to and in direct association with production from
these deposits. All other minerals will be reserved from the lease(s)
to the Lessor, including but not limited to oil, gas, sulphur, and
source materials for fissionable materials, as required by 30 CFR
581.8.
OCS Lease Form
MMA proposes to use Form BOEM-2004 (April 2026) to convey leases
resulting from this sale. This lease form can be viewed on MMA's
website at <a href="https://www.boem.gov/about-boem/procurement-business-opportunities/boem-ocs-operation-forms">https://www.boem.gov/about-boem/procurement-business-opportunities/boem-ocs-operation-forms</a>. The lease form will be amended
to include specific terms, conditions, and stipulations applicable to
the individual lease. The terms, conditions, and stipulations
applicable to this sale are described below.
The following section outlines the lease and fiscal terms for Lease
Sale PACM-1.
Primary Term
The Primary Term will be 20 years.
Minimum Bonus Bid Amount
The minimum bonus bid amount will be $3,000,000 for each lease area
offered.
Rental Rates
Annual rental rates depend on the lease year and the relative
percentage of the Initial Lease Area the Lessee continues to hold. The
table below shows the applicable rent per acre for each lease year,
based on whether the Lessee retains:
<bullet> Less than 15%,
<bullet> 15% to less than 50%, or
<bullet> 50% or more of the Initial Lease Area.
Table 1--Rental Rates per Acre
----------------------------------------------------------------------------------------------------------------
Rent per acre if Rent per acre if Rent per acre if
0 to <15 percent 15 to <50 percent 50+ Percent of
Lease year of Initial Lease of Initial Lease Initial Lease
Area is retained Area is retained Area is retained
----------------------------------------------------------------------------------------------------------------
0-5 Years.............................................. $0.00 $0.00 $0.00
6-10 Years............................................. 0.30 0.60 1.20
11-15 Years............................................ 1.25 2.50 5.00
16-20 Years............................................ 2.50 5.00 10.00
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Rental payments will continue until the first lease anniversary
date following the commencement of royalty payments on leasehold
production (meaning production that occurs under the first approved
Mining Plan).
Lease segregation does not change how much of the Initial Lease
Area is considered retained. If a lease is subsequently segregated,
acreage percentages of Initial Lease Area Retained will be recalculated
based on the proportion of each new lease area to the Initial Lease
Area. For example, if a lease is segregated into two leases, one of
which is 25% of the Initial Lease Area and the other is 75% of the
Initial Lease Area, the 25% lease area would need to be relinquished
down to <3.75% (15% * 25%) of the Initial Lease Area in order to pay
the rental rates in the first column. In order to pay the middle rates,
that same 25% lease area would need to be relinquished down to 3.75 to
< 12.5%. The 75% lease area would need to be relinquished down to
11.25% (15% * 75%) of the Initial Lease Area to pay the rental rates in
the first column.
Minimum Royalty Rate
The minimum royalty rate is locked in based on the lease year in
which leasehold production (meaning production that occurs under the
first approved Mining Plan) begins as well as the share of the Initial
Lease Area held when production begins according to the following
schedule:
Table 2--Minimum Royalty Rate
------------------------------------------------------------------------
Lease Area
retained is less
Mining plan production start year than 15% of Minimum royalty
Initial Lease (per acre)
Area?
------------------------------------------------------------------------
0-15 Years........................ Yes $1.25
0-15 Years........................ No 2.50
16-20 Years....................... Yes 2.50
16-20 Years....................... No 5.00
------------------------------------------------------------------------
Royalty Rate
Royalty on Delineation and Testing:
The Lessee must pay to the Lessor a royalty of five percent on all
mineral production under any approved Delineation or Testing Plan that
is processed to a marketable condition or sold.
Initial Production Royalty Rate:
The Lessee must pay to the Lessor a royalty of two percent on the
value of the mineral production, as described below, from the lease
during the first five years of production under any approved Mining
Plan. The five-year period commences on the first of the month in which
minerals are first produced on the lease under an approved Mining Plan.
Subsequent Production Royalty Rate:
Beginning on the first day of the sixth (6th) year of mineral
production under an approved Mining Plan and continuing thereafter for
the remainder of the lease, the Lessee must pay to the Lessor a royalty
of five percent on the value of the mineral production, as described
below, from the lease.
Table 3--Subsequent Production Royalty Rate
------------------------------------------------------------------------
Royalty rate
Mining plan production year (%)
------------------------------------------------------------------------
1-5....................................................... 2
[[Page 66355]]
6+........................................................ 5
------------------------------------------------------------------------
Valuation for Royalty Purposes
In accordance with regulations at 30 CFR part 1206, subpart G--
Other Solid Minerals, the following terms, conditions, and stipulations
will apply for royalty payments on the value of the mineral production
from a lease.
Marketable Condition: Marketable condition means mineral production
from the lease that is processed in a manner consistent with prevailing
practices in the industry as determined by the Director of the Office
of Natural Resources Revenue and otherwise in a condition that will be
accepted by an arm's length purchaser under a sales contract typical
for the commodity. Mineral production from the lease must meet the
marketable condition requirement prior to being sold to be considered a
bona fide transaction under 30 CFR part 1206, subpart G.
Allowances: A Lessee may claim the specific costs enumerated below
as allowable deductions. Except as described below, no other deductions
will be allowed. However, under no circumstances may the mineral
production from the lease, minus allowances, be valued for royalty
purposes less than the monthly average value of the free on board
(f.o.b.) bulk sales price realized at the customary point of shipment
to market.
Transportation: A deduction will be allowed for the Lessee's costs
equal to the difference between the bona fide sale of mineral
production from the lease in bulk for that sales month at the customary
point of shipment to market and the sale price realized at a remote
sales point.
Beneficiation Beyond Marketable Condition: A deduction will be
allowed for the Lessee's costs equal to the difference between the bona
fide sale of mineral production from the lease in bulk for that sales
month at the customary point of shipment to market and the sale price
realized for lease material processed to a condition considered beyond
marketable condition.
Royalty Relief
No royalty relief will be offered in this sale.
IV. Lease Stipulations
Stipulations applied to leases issued in this sale are contained in
the ``Lease Stipulations'' section of the FLN package and cover the
topics enumerated below.
1. Lease Preliminary Activities and Survey Notices
2. Endangered Species Act and Essential Fish Habitat Consultation
Requirements
3. Fisheries Communication Plan
4. Protection of Birds
5. Marine Archaeology Requirements for Preliminary Activities
6. Unanticipated Discovery Requirements
7. Research Site Access
8. Preliminary Activities Reporting
9. Confidential Information
10. Community Investment and Economic Development
11. Local Content and Labor Utilization
12. Supply Chain Statement of Goals
13. Port Utilization and Infrastructure Investment
V. Information to Lessees
The Information to Lessees (ITLs) provide detailed information on
certain issues pertaining to this lease sale. The full text of the ITLs
for this sale is contained in the ``Information to Lessees'' section of
the FLN package and covers the following topics:
1. Navigation Safety
2. Geological and Geophysical Surveys
3. Marine Archaeological Survey Requirements for Delineation, Testing,
and Mining Plans
4. Environmental Monitoring
5. Mining Discharge Analysis
6. Data and Metadata Standards
7. Low-Impact Collector Technology Rationale
8. Community Engagement Plan
9. Dock Space
10. Notice of Assignment to the Committee on Foreign Investment in the
United States (CFIUS)
11. Domestic Mineral Processing and Supply Chain
12. Engagement
13. Local Emergency Preparedness and Maritime Safety Support
VI. Maps
The American Samoa OCS Mineral Lease Sale Area Map can be viewed on
MMA's website at <a href="https://www.boem.gov/marine-minerals/american-samoa-activities">https://www.boem.gov/marine-minerals/american-samoa-activities</a>, including a more detailed map of the lease blocks and
aliquots. The sale area is shown on the map entitled, ``American Samoa
OCS Mineral Lease Sale Areas Final Leasing Notice (Lease Sale PACM-
1).''
VII. Bidding Instructions
Bidding instructions and the required format for the items are
listed below. Bidders should refer to the subheading entitled,
``Acceptance, Rejection, or Return of Bids'' under Section IX below,
regarding a bidder's failure to comply with the requirements of this
FLN, including failure to follow the instructions and format and timely
submit the information required in this FLN.
Authorized Individuals and Bidder Authentication
An entity that is eligible to participate in the auction may
identify up to five (5) individuals who will be authorized to bid on
behalf of the company, including their names, business telephone
numbers, and email addresses. Bidders are advised that MMA considers
the Bidder's Financial Form (BFF) to be a legally binding obligation on
the part of the bidder(s) to comply with all applicable regulations,
including, but not limited to, the regulation requiring payment of bid
deposit.
Affiliated Entities
On the BFF, eligible bidders must list any other entities with whom
they are affiliated. 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. 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, MMA will disqualify those bidders from the auction.
MMA considers two entities to be affiliated if (a) one entity (or
its parent or subsidiary) has or retains a right, title, or interest in
the other entity (or its parent or subsidiary), including the ability
to control or direct actions with respect to such entity, either
directly or indirectly, individually or through any other party; or (b)
the entities are both direct or indirect subsidiaries of the same
parent company. Entities are also affiliated if ownership or common
ownership of more than 50 percent of the voting securities, or
instruments of ownership or other forms of ownership, of another person
constitutes control (person means any individual, firm, corporation,
association, partnership, consortium, or joint venture (when
established as a separate entity)). MMA will consider each of the
following factors to determine if there is control under the
circumstances of a particular case:
[[Page 66356]]
<bullet> The extent to which there are common officers or
directors.
<bullet> 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 persons,
if a person is the greatest single owner, or if there is an opposing
voting bloc of greater ownership.
<bullet> Operation of a common lease, plant, pipeline, or other
facility.
<bullet> The extent of other owners' participation in operations
and day-to-day management of a lease, plant, or other facility.
<bullet> Other evidence of power to exercise control over or common
control with another person.
Bidder's Financial Form
Each qualified bidder must submit a BFF to participate in the
auction. A BFF must be received no later than October 29, 2026. Bidders
are hereby notified that, on the day of the sale, an authorized
representative must recertify the BFF, affirming that all information
submitted on the BFF is accurate and remains valid in accordance with
the requirements of 30 CFR 581.20. A copy of the form is available at
<a href="https://www.boem.gov/marine-minerals/critical-minerals/bidder-financial-formapril-2026">https://www.boem.gov/marine-minerals/critical-minerals/bidder-financial-formapril-2026</a>. In its BFF, each bidder must designate the
email address that it will use to create an account in <a href="https://www.pay.gov">https://www.pay.gov</a>. The BFF is required to be executed by an authorized
representative listed in the bidder's qualification documents on file
with MMA. The BFF must contain the following information:
<bullet> Each bidder's MMA qualification number. Bidders
participating in this lease sale must be qualified by MMA pursuant to
30 CFR 581.4 and 30 CFR 581.20. Bidders seeking to participate in this
lease sale who are not qualified by MMA should submit the required
qualification documentation as early as possible to ensure there is
sufficient time to receive a MMA qualification number. Bidders can
submit the required qualification documents to <a href="/cdn-cgi/l/email-protection" class="__cf_email__" data-cfemail="a4d4c5c7cdc2cdc78ad6c1c3cdcbcae4c6cbc1c98ac3cbd2">[email protected]</a>.
<bullet> A statement acknowledging that the bidder(s) understands
that all oral bids legally bind the bidder(s) to comply with all
applicable regulations, including, but not limited to, the requirement
to pay the balance of the bonus bid amount for any lease area bid upon.
<bullet> Contact information, including names, addresses, telephone
numbers, and email addresses for the principal point of contact,
payment and refund coordination, and up to five (5) individuals
authorized to bid.
<bullet> Identification of any affiliated entities as defined above
and confirmed in this FLN for this lease sale.
<bullet> Recertification of the information provided in the BFF on
the day of the sale. Prior to the offering of any oral bids at the
lease sale, an authorized representative must confirm that the
information provided by the company in the BFF remains accurate and the
company's eligibility to participate in the lease sale is unchanged.
Any updates or changes must be declared at this time. Bidders who do
not complete the required recertification will not be permitted to
submit an oral bid.
For this sale, MMA will only accept bidders' BFFs by mail.
Instructions for submission can be found on the BFF. The BFF must be
executed on paper with a signature by an authorized representative
identified in the bidder's qualification documentation as authorized to
bind the company.
VIII. The Lease Sale
Auction Format
Location: MMA will hold Lease Sale PACM-1 on Thursday, November 19,
2026, at 9:00 a.m., at the Ventura County Fire Department Headquarters,
2400 Conejo Spectrum Street, Thousand Oaks, CA 91320. The venue will
not be open to the public. Only qualified bidders and their designated
representatives will be admitted to the venue. The oral ascending clock
auction will be live streamed on MMA's website at <a href="https://www.boem.gov">https://www.boem.gov</a>
for public viewing.
Time Zone: All times referenced in this document are Pacific Time,
unless otherwise specified.
Purpose: The oral auction is solely for taking oral bids from
qualified bidders until only one bidder remains on each lease area. MMA
will announce a provisional winner for each lease area at the
conclusion of the auction. The United States reserves the right to
reject any and all bids, as detailed in Section IX of this document
under the subheading entitled, ``Acceptance, Rejection, or Return of
Bids'' below.
Auction Seminar
MMA will hold a virtual auction seminar for qualified bidders prior
to the lease sale. The auction seminar will begin at 11:00 a.m. on
November 12, 2026.
<bullet> The seminar will not be open to the public.
<bullet> During the session, MMA will describe the auction process,
explain rules and procedures, and provide an opportunity for qualified
bidders to ask questions.
Auction Details
The auction will be conducted pursuant to OCSLA and its
implementing regulations at 30 CFR part 581.
<bullet> The auction will be conducted as an in-person, oral
ascending clock auction, with each lease area auctioned sequentially.
<bullet> MMA will allow each qualified bidder to bid for and
potentially acquire both lease areas. If an entity wishes to win both
lease areas, it must submit two bid deposits. A bidder that submits
only one bid deposit and does not win the first lease area may continue
bidding for the second lease area.
<bullet> MMA will verify receipt of bid deposits prior to
participation in the auction.
<bullet> Up to five individuals may attend the auction on behalf of
a bidding entity. Bidding entities must advise MMA via email at
<a href="/cdn-cgi/l/email-protection" class="__cf_email__" data-cfemail="aadacbc9c3ccc3c984d8cfcdc3c5c4eac8c5cfc784cdc5dc">[email protected]</a> no later than 4:00 p.m. on Thursday, November
12, 2026, that they intend to participate in the auction, and include
the list of individuals expected to attend. MMA will promptly respond
to the email with additional instructions for attending the auction.
Bidding entities who do not notify MMA and obtain advance approval for
individuals to attend will not be granted access to the venue.
<bullet> The BFF must identify the individuals authorized to bid.
<bullet> An authorized representative of the qualified bidder must
be present at the time of the lease sale to recertify the BFF.
<bullet> The authorized representative and persons authorized to
bid must provide proof of identity matching the BFF.
IX. Bidding Rules
MMA will auction lease OCS-P 0569 first, followed by lease OCS-P
0568. The auction will proceed sequentially, one lease area at a time.
The provisional winner of the first lease area will be permitted to bid
for the second lease area, provided they submit the appropriate initial
bonus bid deposit(s) in accordance with the instructions in the section
entitled, ``Bonus Bid Deposit.''
For each lease area, the auction will be conducted in a series of
rounds with incrementally higher prices, which will be set by MMA. In
each round, all bidders will have the opportunity to signal
participation within the specified time period. If a bidder fails to
signal its participation at a given price, that will
[[Page 66357]]
indicate that the bidder has withdrawn from the bidding for that lease
area. MMA will verify participation or withdrawal with each bidder at
the close of the round and, once confirmed, either participation or
withdrawal will be final. The auction will continue until only one
bidder signals participation at a given price. That bidder becomes the
provisional winner of the lease area.
When a bidder withdraws from bidding in a lease area by failing to
signal participation at the next highest price, they will be asked to
submit an exit bid, which is the highest price they are willing to pay
for the lease area. The exit bid must be no lower than the round's
price at which the bidder last signaled participation and must be below
the price of the next round. If a bidder fails to submit an exit bid,
the last price at which they signaled participation will be used as
their exit bid. Exit bids are used if no bidders signal participation
in a given round, a tie occurs, or the provisional winner does not meet
the lease execution requirements or otherwise fails to comply with
applicable regulations. In these cases, MMA reserves the right to offer
the lease area to the bidder submitting the next highest bid offer as
determined by MMA.
MMA will set a time limit for signaling participation within each
round. The auction facilitator may close the round early if all active
bidders have indicated their decision for the round. A warning will be
issued before early closure. This time limit is set to expedite the
sale procedure, but extensions may be granted upon request. A recess
may be declared at any time the situation warrants, at the sole
discretion of the Pacific Regional Director, or his or her designee.
The provisional winner of each lease area will pay the final bid
deposit in accordance with the instructions in the section below
entitled, ``Bonus Bid Deposit.'' If the provisional winner does not
submit the final bid deposit as outlined in the section entitled,
``Bonus Bid Deposit,'' MMA, in its discretion, may retain the initial
bid deposit and offer the area to the next highest bidder. Similarly,
if the provisional winner does not follow through with the remainder of
the bid as outlined in the section below entitled, ``Lease Award,''
MMA, in its discretion, may retain the bid deposit and offer the area
to the next highest bidder. A provisional winner will be disqualified
if it is subsequently found to have violated auction rules, OCSLA,
applicable regulations, or otherwise engaged in conduct detrimental to
the integrity of the competitive auction.
Authorized Signatures
All signatories executing documents on behalf of the bidder(s) must
execute the same in conformance with MMA qualification records. MMA
considers any actions taken by an authorized bidder during the oral
ascending clock auction process as a legally binding obligation on the
part of the bidder(s) to comply with all applicable regulations,
including fulfilling the bonus bid requirement for all high bids.
Bonus Bid Deposit
A bonus bid deposit of 20 percent of the total bid amount is
required. Each bid deposit will be payable in two parts:
1. Each qualified bidder must submit an initial bonus bid deposit
to the Office of Natural Resources Revenue (ONRR) equal to 20 percent
of the minimum bid owed for each lease area it wishes to win. For
example, if a bidder is interested in winning only one lease area, they
would pay a bid deposit of $600,000 (20% * $3,000,000). If a bidder
seeks the ability to win both lease areas, it must submit two bid
deposits each in the amount of $600,000. The initial bonus bid
deposit(s) must be received by November 5, 2026, and will be
electronically deposited into an interest-bearing account in the U.S.
Treasury.
2. After the oral auction has ended, the provisional winning bidder
for each lease area must pay a final bonus bid deposit by 2:00 p.m. on
the first business day after the auction. The total bid deposit is 20
percent of the winning high bid. The amount owed in the final bonus bid
deposit is 20 percent of the winning high bid less the initial bonus
bid deposit already paid. If a bidder is the provisional winning bidder
for both lease areas, it must submit two final bonus bid deposits.
MMA requires bidders to use EFT procedures for bonus bid deposit
payments for this lease sale, following the detailed instructions
contained on the ONRR Payment Information web page at <a href="https://www.onrr.gov/paying">https://www.onrr.gov/paying</a>. Receipt of a bonus bid deposit does not
constitute, and will not be construed as, acceptance of any bid on
behalf of the United States. Non-winning bidders will have their
initial bonus bid deposit(s) refunded.
Withdrawal of Blocks
The United States reserves the right to withdraw any block from
this lease sale before issuance of a written acceptance of a bid for
the block.
Acceptance, Rejection, or Return of Bids
The United States reserves the right to reject any and all bids,
regardless of the amount offered. Furthermore, no bid will be accepted,
and no lease for any block will be awarded to any bidder, unless:
1. The bidder has complied with all applicable statutes,
regulations and requirements of the FLN, including those set forth in
the documents contained in this FLN package; and
2. The bid is the highest valid bid and meets or exceeds MMA's
minimum bid in this FLN.
Any bid submitted that does not conform to the requirements of the
FLN, OCSLA, or other applicable statute or regulation will be rejected
and returned to the bidder. The United States Department of Justice and
the Federal Trade Commission will review the results of this lease sale
for any antitrust issues prior to the acceptance of bids and issuance
of leases.
Lease Award
MMA will use Form BOEM-2004 (April 2026) to convey leases resulting
from this sale. This lease form can be viewed on MMA's website at
<a href="https://www.boem.gov/about-boem/procurement-business-opportunities/boem-ocs-operation-forms">https://www.boem.gov/about-boem/procurement-business-opportunities/boem-ocs-operation-forms</a>. The lease form will be amended to include
specific terms, conditions, and stipulations applicable to the
individual lease. Each bidder that is awarded a lease is required to
complete the following within 10 business days of receipt of the lease
from MMA:
1. Execute all copies of the lease (Form BOEM-2004 [April 2026], as
amended); and
2. Pay by EFT the balance of the bonus bid amount for each lease
issued in accordance with the requirements of the FLN and 30 CFR
1218.155 and 581.26.
ONRR requests that bidders use only one transaction for payment of
the balance of the bonus bid amount. Once ONRR receives such payment,
the bidder who has been awarded the lease may not request a refund of
the balance of the bonus bid payment.
Unlawful Combination or Intimidation
MMA warns bidders against violation of 18 U.S.C. 1860, which
prohibits unlawful combination or intimidation of bidders.
X. Delay of Sale
The MMA Pacific Regional Director has the discretion to change any
date, time, and/or location specified in this FLN if the Regional
Director deems that an emergent event could interfere with a fair and
orderly lease sale. Such events could include, but are not limited to,
natural disasters (e.g., earthquakes, fires or floods), wars, riots,
acts of terrorism,
[[Page 66358]]
fires, strikes, civil disorder, or other events of a similar nature. In
case of such events, bidders should call (805) 384-6305 or access the
MMA website at <a href="https://www.boem.gov/marine-minerals/american-samoa-activities">https://www.boem.gov/marine-minerals/american-samoa-activities</a>, for information regarding any changes.
Michael D. Olsen
Acting Director, Marine Minerals Administration.
[FR Doc. 2026-21462 Filed 10-19-26; 8:45 am]
BILLING CODE 4340-98-P
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</html>Indexed from Federal Register on October 20, 2026.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.