[Federal Register Volume 81, Number 33 (Friday, February 19, 2016)]
[Notices]
[Pages 8525-8530]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-03279]
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DEPARTMENT OF THE INTERIOR
Bureau of Ocean Energy Management
[MMAA104000]
Eastern Gulf of Mexico Planning Area Outer Continental Shelf Oil
and Gas Lease Sale 226
AGENCY: Bureau of Ocean Energy Management (BOEM), Interior.
ACTION: Final notice of sale.
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SUMMARY: On Wednesday, March 23, 2016, BOEM will open and publicly
announce bids for blocks offered in Eastern Planning Area (EPA) Outer
Continental Shelf (OCS) Oil and Gas Lease Sale 226 (EPA Sale 226), in
accordance with the provisions of the OCS Lands Act (OCSLA, 43 U.S.C.
1331-1356, as amended) and the implementing regulations issued pursuant
thereto (30 CFR parts 550 and 556).
DATES: Date And Time: Public bid reading for EPA Sale 226 will begin at
9:00 a.m. on Wednesday, March 23, 2016. All times referred to in this
document are Central Time, unless otherwise specified.
The EPA Sale 226 Final Notice of Sale (NOS) Package (Final NOS
Package) contains information essential to potential bidders. Bidders
are charged with knowing the contents of the documents contained in the
Final NOS Package.
Bid Submission Deadline: BOEM must receive all sealed bids between
8:00 a.m. and 4:00 p.m. on normal working days, or from 8:00 a.m. to
the Bid Submission Deadline of 10:00 a.m. on Tuesday, March 22, 2016,
the day before the lease sale. For more information on bid submission,
see Section VII, ``Bidding Instructions,'' of this document.
ADDRESSES: The Mercedes-Benz Superdome, 1500 Sugarbowl Drive, New
Orleans, Louisiana, 70112. The lease sale will be held in the St.
Charles Club Room on the second floor (Loge Level). Entry to the
Superdome will be on the Poydras Street side of the building through
Gate A on the Ground Level; parking will be available at Garage 6.
Interested parties, upon request, may obtain a compact disc (CD-
ROM) containing the Final NOS Package by contacting the BOEM Gulf of
Mexico (GOM) Region at: Gulf of Mexico Region Public Information
Office, Bureau of Ocean Energy Management, 1201 Elmwood Park Boulevard,
New Orleans, Louisiana 70123-2394, (504) 736-2519 or (800) 200-GULF or
by visiting the BOEM Web site at http://www.boem.gov/Sale-226/.
SUPPLEMENTARY INFORMATION:
Table of Contents
This Final NOS includes the following sections:
I. Lease Sale Area
II. Statutes and Regulations
III. Lease Terms and Financial Conditions
IV. Lease Stipulations
V. Information to Lessees
VI. Maps
VII. Bidding Instructions
VIII. Bidding Rules and Restrictions
IX. Forms
X. The Lease Sale
XI. Delay of Sale
[[Page 8526]]
I. Lease Sale Area
Blocks Offered for Leasing: BOEM is offering for lease all blocks
and partial blocks listed in the document ``List of Blocks Available
for Leasing'' included in this Final NOS Package. All of these blocks
are shown on the following leasing maps and Official Protraction
Diagrams (OPDs):
Outer Continental Shelf Official Protraction Diagrams
NG16-02 Lloyd Ridge (revised February 28, 2007)
NH16-11 De Soto Canyon (revised February 28, 2007)
Blocks Not Offered for Leasing: All whole or partial blocks in the
EPA deferred by the Gulf of Mexico Energy Security Act of 2006, Public
Law 109-432.
II. Statutes and Regulations
Each lease is issued pursuant to OCSLA, and is subject to OCSLA,
implementing regulations promulgated pursuant thereto, and other
applicable statutes and regulations in existence upon the effective
date of the lease, as well as those applicable statutes enacted and
regulations promulgated thereafter, except to the extent that the
after-enacted statutes and regulations explicitly conflict with an
express provision of the lease. Each lease also 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 explicitly conflict
with an express provision of the lease) may increase or decrease the
lessee's obligations under the lease.
III. Lease Terms and Financial Conditions
Lease Terms
OCS Lease Form
BOEM will use Form BOEM-2005 (October 2011) to convey leases
resulting from this sale. This lease form may be viewed on the BOEM Web
site at http://www.boem.gov/About-BOEM/Procurement-Business-Opportunities/BOEM-OCS-Operation-Forms/BOEM-2005.aspx. The lease form
will be amended to conform with the specific terms, conditions, and
stipulations applicable to the individual lease. The terms, conditions,
and stipulations applicable to this sale are set forth below.
Initial Periods
Initial periods are summarized in the following table:
------------------------------------------------------------------------
Water depth (meters) Initial period
------------------------------------------------------------------------
800 to <1,600.......................... Standard initial period is 7
years; the lessee will earn an
additional 3 years (i.e., for
a 10-year extended initial
period) if a well is spudded
during the first 7 years of
the lease.
1,600+................................. 10 years.
------------------------------------------------------------------------
(1) The standard initial period for a lease in water depths ranging
from 800 to less than 1,600 meters issued as a result of this sale will
be 7 years. The lessee will earn an additional 3 years, resulting in a
10-year extended initial period, if the lessee spuds a well within the
first 7 years of the lease.
In order to earn the 10-year extended initial period, the lessee is
required to submit to the appropriate Bureau of Safety and
Environmental Enforcement (BSEE) District Manager, within 30 days after
spudding a well, a letter providing the well number and spud date, and
requesting concurrence that the lessee has earned the 10-year extended
initial period. The BSEE District Manager will review the request and
make a written determination within 30 days of receipt of the request.
The BSEE District Manager must concur in writing that the conditions
have been met by the lessee to earn the 10-year extended initial
period.
(2) The standard initial period for a lease in water depths 1,600
meters or greater issued as a result of this sale will be 10 years.
Financial Conditions
Minimum Bonus Bid Amount
$100.00 per acre or fraction thereof for all blocks
BOEM will not accept a bonus bid unless it provides for a cash
bonus in the amount equal to, or exceeding, the specified minimum bid
of $100.00 per acre or fraction thereof.
Rental Rate
Annual rental rates are summarized in the following table:
Rental Rates per Acre or Fraction Thereof
------------------------------------------------------------------------
Water depth (meters) Years 1-5 Years 6+
------------------------------------------------------------------------
800+........................................ $11.00 $16.00
------------------------------------------------------------------------
Royalty Rate
18.75 percent
Minimum Royalty Rate
$11.00 per acre or fraction thereof per year
IV. Lease Stipulations
One or more of the following stipulations may be applied to leases
issued as a result of this sale. The detailed text of these
stipulations is contained in the ``Lease Stipulations'' section of the
Final NOS Package.
(1) Military Areas
(2) Evacuation
(3) Coordination
(4) Protected Species
V. Information to Lessees
The Information to Lessees (ITL) clauses provide detailed
information on certain issues pertaining to this oil and gas lease
sale. The detailed text of these ITL clauses is contained in the
``Information to Lessees'' section of the Final NOS Package:
(1) Navigation Safety
(2) Ordnance Disposal Areas in the EPA
(3) Existing and Proposed Artificial Reefs/Rigs to Reefs
(4) Lightering Zones
(5) Military Areas in the EPA
(6) Bureau of Safety and Environmental Enforcement (BSEE) Inspection
and Enforcement of Certain Coast Guard Regulations
(7) Air Quality Permits
(8) Notice of Arrival on the Outer Continental Shelf
(9) Bidder/Lessee Notice of Obligations Related to Criminal/Civil
Charges and Offenses, Suspension, or Debarment; Disqualification Due to
a Conviction under the Clean Air Act or the Clean Water Act
(10) Protected Species
VI. Maps
The maps pertaining to this sale may be found on the BOEM Web site
at http://www.boem.gov/Sale-226. The following map also is included in
the Final NOS Package:
[[Page 8527]]
Lease Terms, Financial Conditions, and Stipulations Map
The lease terms, financial conditions, stipulations, and the blocks
to which these terms and conditions apply are shown on the map ``Final,
Eastern Planning Area, Lease Sale 226, March 23, 2016, Lease Terms,
Financial Conditions, and Stipulations'' included in the Final NOS
Package.
VII. Bidding Instructions
Instructions on how to submit a bid, secure payment of the advance
bonus bid deposit (if applicable), and what information must be
included with the bid are as follows:
Bid Form
For each block bid upon, a separate sealed bid must be submitted in
a sealed envelope (as described below) and must include the following:
Total amount of the bid in whole dollars only;
sale number;
sale date;
each bidder's exact name;
each bidder's proportionate interest, stated as a
percentage, using a maximum of five decimal places (e.g., 33.33333
percent);
typed name and title, and signature of each bidder's
authorized officer;
each bidder's qualification number;
map name and number or Official Protraction Diagram (OPD)
name and number;
block number; and
statement acknowledging that the bidder(s) understand that
this bid legally binds the bidder(s) to comply with all applicable
regulations, including payment of one-fifth of the bonus bid amount on
all apparent high bids.
The information required on the bid(s) is specified in the document
``Bid Form'' in this Final NOS Package. A blank bid form will be
provided therein for convenience and may be copied and completed with
the necessary information described above.
Bid Envelope
Each bid must be submitted in a separate sealed envelope labeled as
follows:
``Sealed Bid for Oil and Gas Lease Sale 226, not to be
opened until 9:00 a.m. Wednesday, March 23, 2016;''
map name and number or OPD name and number;
block number for block bid upon; and
the exact name and qualification number of the submitting
bidder only.
The Final NOS Package includes a sample bid envelope for reference.
Mailed Bids
If bids are mailed, please address the envelope containing the
sealed bid envelope(s) as follows: Attention: Leasing and Financial
Responsibility Section, BOEM Gulf of Mexico Region, 1201 Elmwood Park
Boulevard, New Orleans, Louisiana 70123-2394.
Contains Sealed Bids for EPA Oil and Gas Lease Sale 226 Please
Deliver to Ms. Cindy Thibodeaux or Mr. Carrol Williams, 2nd Floor,
Immediately
Please Note: Bidders mailing bid(s) are advised to call Ms.
Cindy Thibodeaux at (504) 736-2809, or Mr. Carrol Williams at (504)
736-2803, immediately after putting their bid(s) in the mail. If
BOEM receives bids later than the Bid Submission Deadline, the BOEM
Gulf of Mexico Regional Director (RD) will return those bids
unopened to bidders. Please see ``Section XI. Delay of Sale''
regarding BOEM's discretion to extend the Bid Submission Deadline in
the case of an unexpected event (e.g., flooding or travel
restrictions) and how bidders can obtain more information on such
extensions.
Advance Bonus Bid Deposit Guarantee
Bidders that are not currently an OCS oil and gas lease record
title holder or designated operator, or those that ever have defaulted
on a one-fifth bonus bid deposit, by Electronic Funds Transfer (EFT) or
otherwise, must guarantee (secure) the payment of the one-fifth bonus
bid deposit prior to bid submission using one of the following four
methods:
Provide a third-party guarantee;
amend an areawide development bond via bond rider;
provide a letter of credit; or
provide a lump sum payment in advance via EFT.
For more information on EFT procedures, see Section X of this
document entitled, ``The Lease Sale.''
Affirmative Action
Prior to bidding, each bidder should file Equal Opportunity
Affirmative Action Representation Form BOEM-2032 (October 2011) and
Equal Opportunity Compliance Report Certification Form BOEM-2033
(October 2011) with the BOEM Gulf of Mexico Region Adjudication
Section. This certification is required by 41 CFR part 60 and Executive
Order No. 11246, issued September 24, 1965, as amended by Executive
Order No. 11375, issued October 13, 1967, and by Executive Order 13672,
issued July 21, 2014. Both forms must be on file for the bidder(s) in
the GOM Region Adjudication Section prior to the execution of any lease
contract.
Geophysical Data and Information Statement (GDIS)
The GDIS is composed of three parts:
(1) The ``Statement'' page includes the company representatives'
information and lists of blocks bid on that used proprietary data and
those blocks bid on that did not use proprietary data;
(2) the ``Table'' listing the required data about each proprietary
survey used (see below); and
(3) the ``Maps'' being the live trace maps for each survey that are
identified in the GDIS statement and table.
Every bidder submitting a bid on a block in EPA Sale 226, or
participating as a joint bidder in such a bid, must submit at the time
of bid submission all three parts of the GDIS. A bidder must submit the
GDIS even if a joint bidder or bidders on a specific block also have
submitted a GDIS. Any speculative data that has been reprocessed
externally or ``in-house'' is considered proprietary due to the
proprietary processing and is no longer considered to be speculative.
The GDIS must be submitted in a separate and sealed envelope, and
identify all proprietary data; reprocessed speculative data, and/or any
Controlled Source Electromagnetic surveys, Amplitude Versus Offset
(AVO), Gravity, or Magnetic data; or other information used as part of
the decision to bid or participate in a bid on the block. The bidder
and joint bidder must also include a live trace map (e.g., .pdf and
ArcGIS shape file) for each proprietary survey that they identify in
the GDIS illustrating the actual areal extent of the proprietary
geophysical data in the survey (see the ``Example of Preferred Format''
in the Final NOS Package for additional information). The shape file
must not include cultural information; only the live trace map of the
survey itself.
The GDIS statement must include the name, phone number, and full
address of a contact person and an alternate who are both knowledgeable
about the information and data listed and who are available for 30 days
after the sale date. The GDIS statement also must include entries for
all blocks bid upon that did not use proprietary or reprocessed pre- or
post-stack geophysical data and information as part of the decision to
bid or to participate as a joint bidder in the bid. The GDIS statement
must be submitted even if no proprietary geophysical data and
information were used in bid preparation for the block.
The GDIS table should have columns that clearly state the sale
number; the bidder company's name; the block area and block number bid
on; the owner of the original data set (i.e., who initially
[[Page 8528]]
acquired the data); the industry's original name of the survey (e.g., E
Octopus); the BOEM permit number for the survey; whether the data set
is a fast track version; whether the data is speculative or
proprietary; the data type (e.g., 2-D, 3-D, or 4-D; pre-stack or post-
stack; and time or depth); migration algorithm (e.g., Kirchhoff
Migration, Wave Equation Migration, Reverse Migration, Reverse Time
Migration) of the data and areal extent of bidder survey (i.e., number
of line miles for 2-D or number of blocks for 3-D). Provide the
computer storage size, to the nearest gigabyte, of each seismic data
and velocity volume used to evaluate the lease block in question. This
will be used in estimating the reproduction costs for each data set, if
applicable. The availability of reimbursement of production costs will
be determined consistent with 30 CFR 551.13. The next column should
state who reprocessed the data (e.g., external company name or ``in-
house'') and when the date of final reprocessing was completed (month
and year). If the data was sent to BOEM for bidding in a previous lease
sale, list the date the data was processed (month and year) and
indicate if AVO data was used in the evaluation. BOEM reserves the
right to query about alternate data sets, to quality check, and to
compare the listed and alternative data sets to determine which data
set most closely meets the needs of the fair market value determination
process. An example of the preferred format of the table may be found
in the Final NOS Package, and a blank digital version of the preferred
table may be accessed on the EPA Sale 226 sale Web page at http://www.boem.gov/Sale-226.
The GDIS maps are live trace maps (in .pdf and ArcGIS shape files)
that should be submitted for each proprietary survey that is identified
in the GDIS table. They should illustrate the actual areal extent of
the proprietary geophysical data in the survey (see the ``Example of
Preferred Format'' in the Final NOS Package for additional
information). As previously stated, the shape file must not include
cultural information; only the live trace map of the survey itself.
Pursuant to 30 CFR 551.12 and 30 CFR 556.32, as a condition of the
sale, the BOEM Gulf of Mexico RD requests that all bidders and joint
bidders submit the proprietary data identified on their GDIS within 30
days after the lease sale (unless they are notified after the lease
sale that BOEM has withdrawn the request). This request only pertains
to proprietary data that is not commercially available. Commercially
available data is not required to be submitted to BOEM, and
reimbursement will not be provided if such data is submitted by a
bidder. The BOEM Gulf of Mexico RD will notify bidders and joint
bidders of any withdrawal of the request, for all or some of the
proprietary data identified on the GDIS, within 15 days of the lease
sale. Pursuant to 30 CFR part 551 and as a condition of this sale, all
bidders required to submit data must ensure that the data is received
by BOEM no later than the 30th day following the lease sale, or the
next business day if the submission deadline falls on a weekend or
Federal holiday. The data must be submitted to BOEM at the following
address: Bureau of Ocean Energy Management, Resource Studies, GM 881A,
1201 Elmwood Park Blvd., New Orleans, LA 70123-2304.
BOEM recommends that bidders mark the submission's external
envelope as ``Deliver Immediately to DASPU.'' BOEM also recommends that
the data be submitted in an internal envelope, or otherwise marked,
with the following designation: ``Proprietary Geophysical Data
Submitted Pursuant to EPA 226 and used during
evaluation of Block .''
In the event a person supplies any type of data to BOEM, that
person must meet the following requirements to qualify for
reimbursement:
(1) Persons must be registered with the System for Award Management
(SAM), formerly known as the Central Contractor Registration (CCR). CCR
usernames will not work in SAM. A new SAM User Account is needed to
register or update an entity's records. The Web site for registering is
https://www.sam.gov.
(2) Persons must be enrolled in the Department of Treasury's
Internet Payment Platform (IPP) for electronic invoicing. The person
must enroll in the IPP at https://www.ipp.gov/. Access then will be
granted to use the IPP for submitting requests for payment. When a
request for payment is submitted, it must include the assigned Purchase
Order Number on the request.
(3) Persons must have a current On-line Representations and
Certifications Application at https://www.sam.gov.
Please Note: The GDIS Information Table must be submitted
digitally, preferably as an Excel spreadsheet, on a CD or DVD along
with the seismic data map(s). If bidders have any questions, please
contact Ms. Dee Smith at (504) 736-2706, or Mr. John Johnson at
(504) 736-2455. Bidders should refer to Section X of this document,
``The Lease Sale: Acceptance, Rejection, or Return of Bids,''
regarding a bidder's failure to comply with the requirements of the
Final NOS, including any failure to submit information as required
in the Final NOS or Final NOS Package.
Telephone Numbers/Addresses of Bidders
BOEM requests that bidders provide this information in the
suggested format prior to or at the time of bid submission. The
suggested format is included in the Final NOS Package. The form must
not be enclosed inside the sealed bid envelope.
Additional Documentation
BOEM may require bidders to submit other documents in accordance
with 30 CFR 556.46.
VIII. Bidding Rules and Restrictions
Restricted Joint Bidders
On November 2, 2015, BOEM published the most recent List of
Restricted Joint Bidders in the Federal Register at 80 FR 67416.
Potential bidders are advised to refer to the Federal Register, prior
to bidding, for the most current List of Restricted Joint Bidders in
place at the time of the lease sale. Please refer to the joint bidding
provisions at 30 CFR 556.41 for additional restrictions.
Authorized Signatures
All signatories executing documents on behalf of bidder(s) must
execute the same in conformance with the BOEM qualification records.
Bidders are advised that BOEM considers the signed bid to be a legally
binding obligation on the part of the bidder(s) to comply with all
applicable regulations, including payment of one-fifth of the bonus bid
on all high bids. A statement to this effect must be included on each
bid form (see the document ``Bid Form'' to be contained in the Final
NOS Package).
Unlawful Combination or Intimidation
BOEM warns bidders against violation of 18 U.S.C. 1860, prohibiting
unlawful combination or intimidation of bidders.
Bid Withdrawal
Bids may be withdrawn only by written request delivered to BOEM
prior to the Bid Submission Deadline. The withdrawal request must be on
company letterhead and must contain the bidder's name, its BOEM
qualification number, the map name/number, and the block number(s) of
the bid(s) to be withdrawn. The withdrawal request must be executed in
conformance with the BOEM qualification records. Signatories must be
authorized to bind their respective legal business entities (e.g., a
corporation, partnership, or LLC) and documentation must be on file
with
[[Page 8529]]
BOEM setting forth this authority to act on the business entity's
behalf for purposes of bidding and lease execution under OCSLA (e.g.,
business charter or articles, incumbency certificate, or power of
attorney). The name and title of the authorized signatory must be typed
under the signature block on the withdrawal request. The BOEM Gulf of
Mexico RD, or the RD's designee, will indicate their approval by
signing and dating the withdrawal request.
Bid Rounding
Minimum bonus bid calculations, including rounding, for all blocks
will be shown in the document ``List of Blocks Available for Leasing,''
included in the Final NOS Package. The bonus bid amount must be stated
in whole dollars. If the acreage of a block contains a decimal figure,
then prior to calculating the minimum bonus bid, BOEM rounded up to the
next whole acre. The appropriate minimum rate per acre was then be
applied to the whole (rounded up) acreage. If this calculation resulted
in a fractional dollar amount, the minimum bonus bid was rounded up to
the next whole dollar amount. The bonus bid amount must be greater than
or equal to the minimum bonus bid in whole dollars.
IX. Forms
The Final NOS Package includes instructions, samples, and/or the
preferred format for the following items. BOEM strongly encourages
bidders to use these formats; should bidders use another format, they
are responsible for including all the information specified for each
item in the Final NOS Package.
(1) Bid Form
(2) Sample Completed Bid
(3) Sample Bid Envelope
(4) Sample Bid Mailing Envelope
(5) Telephone Numbers/Addresses of Bidders Form
(6) GDIS Form
(7) GDIS Envelope Form
X. The Lease Sale
Bid Opening and Reading
Sealed bids received in response to the Final NOS will be opened at
the ``DATE AND TIME'' and ``LOCATION'' sections of this document. The
opening of the bids is for the sole purpose of publicly announcing and
recording the bids received; no bids will be accepted or rejected at
that time.
Bonus Bid Deposit for Apparent High Bids
Each bidder submitting an apparent high bid must submit a bonus bid
deposit to the Office of Natural Resources Revenue (ONRR) equal to one-
fifth of the bonus bid amount for each such bid. A copy of the
notification of the high bidder's one-fifth bonus bid requirement
deposit may be obtained at the EFT Area outside the Bid Reading Room on
the day of the bid opening, or it may be obtained on the BOEM Web site
at http://www.boem.gov/Sale-226/ under the heading ``Notification of
EFT 1/5 Bonus Liability.'' All payments must be deposited
electronically into an interest-bearing account in the U.S. Treasury by
11:00 a.m. Eastern Time the day following the bid reading (no
exceptions). Account information is provided in the ``Instructions for
Making Electronic Funds Transfer Bonus Payments'' found on the BOEM Web
site identified above.
BOEM requires bidders to use EFT procedures for payment of one-
fifth bonus bid deposits for EPA Sale 226, following the detailed
instructions contained on the ONRR Payment Information Web page at
http://www.onrr.gov/FM/PayInfo.htm. Acceptance of a deposit does not
constitute and will not be construed as acceptance of any bid on behalf
of the United States.
Withdrawal of Blocks
The United States reserves the right to withdraw any block from
this lease sale prior to issuance of a written acceptance of a bid for
the block.
Acceptance, Rejection, or Return of Bids
The United States reserves the right to reject any and all bids. 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 requirements of the Final NOS,
including those set forth in the documents contained in the Final NOS
Package and applicable regulations;
(2) the bid is the highest valid bid; and
(3) the amount of the bid has been determined to be adequate by the
authorized officer.
Any bid submitted that does not conform to the requirements of the
Final NOS and Final NOS Package, OCSLA, or other applicable statute or
regulation may be rejected and returned to the bidder. The U.S.
Department of Justice and the Federal Trade Commission will review the
results of the lease sale for antitrust issues prior to the acceptance
of bids and issuance of leases.
Bid Adequacy Review Procedures for EPA Sale 226
To ensure that the U.S. Government receives a fair return for the
conveyance of leases from this sale, high bids will be evaluated in
accordance with BOEM's bid adequacy procedures. A copy of updated Bid
Adequacy Procedures, can be obtained from the BOEM Gulf of Mexico
Region Public Information Office, or via the BOEM Gulf of Mexico Region
Web site at http://www.boem.gov/Oil-and-Gas-Energy-Program/Leasing/Regional-Leasing/Gulf-of-Mexico-Region/Bid-Adequacy-Procedures.aspx.
BOEM published a notification in the Federal Register, 79 FR 62461-
62463 (October 17, 2014), available at http://www.gpo.gov/fdsys/pkg/FR-2014-10-17/pdf/2014-24727.pdf, proposing the elimination of one of its
procedural guidelines for bid acceptance, (referred to as the Number of
Bids Rule), from its bid adequacy procedures. BOEM carefully considered
the comments submitted in response to the notice and met with industry
representatives. BOEM believes that none of the submitted comments
offered a compelling reason to keep the Number of Bids Rule, suggested
a preferable alternative which BOEM had not considered, or indicated
that our analysis or rationale was deficient. Therefore, BOEM removed
the Number of Bids Rule from its bid adequacy procedures. This bid
adequacy change is in effect and will apply to any bids received for
the EPA Sale 226.
Lease Award
BOEM requires each bidder awarded a lease to: (1) Execute all
copies of the lease (Form BOEM-2005 (October 2011), as amended); (2)
pay by EFT the balance of the bonus bid amount and the first year's
rental for each lease issued in accordance with the requirements of 30
CFR 218.155 and 556.47(f); and (3) satisfy the bonding requirements of
30 CFR part 556, subpart I, as amended. ONRR requests that only one
transaction be used for payment of the four-fifths bonus bid amount and
the first year's rental.
XI. Delay of Sale
The BOEM Gulf of Mexico RD has the discretion to change any date,
time, and/or location specified in the Final NOS Package in case of an
event that the BOEM Gulf of Mexico RD deems may interfere with the
carrying out of a fair and orderly lease sale process. Such events
could include, but are not limited to, natural disasters (e.g.,
earthquakes, hurricanes, and floods), wars, riots, acts of terrorism,
fires, strikes, civil disorder, or other events of a similar nature. In
case of such events, bidders should call (504) 736-0557, or access the
BOEM Web site at http://www.boem.gov, for information
[[Page 8530]]
regarding any changes.
Dated: February 10, 2016.
Abigail Ross Hopper,
Director, Bureau of Ocean Energy Management.
[FR Doc. 2016-03279 Filed 2-18-16; 8:45 am]
BILLING CODE 4310-MR-P