[Federal Register Volume 59, Number 133 (Wednesday, July 13, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-16901]


[[Page Unknown]]

[Federal Register: July 13, 1994]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
 

Outer Continental Shelf, Western Gulf of Mexico, Gas and Oil 
Lease Sale 150

AGENCY: Minerals Management Service, Interior.

ACTION: Notice of sale.

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    1. Authority. This Notice is published pursuant to the Outer 
Continental Shelf (OCS) Lands Act (43 U.S.C. 1331-1356, (1988)), and 
the regulations issued thereunder (30 CFR Part 256).
    2. Filing of Bids. Sealed bids will be received by the Regional 
Director (RD), Gulf of Mexico Region, Minerals Management Service 
(MMS), 1201 Elmwood Park Boulevard, New Orleans, Louisiana 70123-2394. 
Bids may be delivered in person to that address during normal business 
hours (8 a.m. to 4 p.m. Central Standard Time (c.s.t.)) until the bid 
submission deadline at 10 a.m., Tuesday, August 16, 1994. Hereinafter, 
all times cited in this Notice refer to c.s.t. unless otherwise stated. 
Bids will not be accepted the day of bid opening, Wednesday, August 17, 
1994. Bids received by the RD later than the time and date specified 
above will be returned unopened to the bidders. Bids may not be 
modified or withdrawn unless written modification or written withdrawal 
request is received by the RD prior to 10 a.m., Tuesday, August 16, 
1994. Bid opening time will be 9 a.m., Wednesday, August 17, 1994, at 
the Sheraton Hotel, 500 Canal Street, New Orleans, Louisiana. All bids 
must be submitted and will be considered in accordance with applicable 
regulations including 30 CFR Part 256. The list of restricted joint 
bidders which applies to this sale appeared in the Federal Register at 
59 FR 14425, published March 28, 1994.
    3. Method of Bidding. A separate signed bid in a sealed envelope 
labeled ``Sealed Bid for Gas and Oil Lease Sale 150, not to be opened 
until 9 a.m., c.s.t., Wednesday, August 17, 1994,'' must be submitted 
for each block bid upon. The sealed envelope and the bid should contain 
the following information: the company name, qualification number, area 
number and/or name (abbreviations acceptable), and the block number of 
the block bid upon. In addition, the total amount bid must be in whole 
dollar amounts.
    Bidders must submit with each bid one-fifth of the cash bonus, in 
cash or by cashier's check, bank draft, or certified check, payable to 
the order of the U.S. Department of the Interior--Minerals Management 
Service. For identification purposes, the company name and company 
qualification number should also appear on the check or draft together 
with the bid block identification (abbreviations acceptable). No bid 
for less than all of the unleased portions of a block will be 
considered.
    All documents must be executed in conformance with signatory 
authorizations on file in the Gulf of Mexico regional office. 
Partnerships also need to submit or have on file a list of signatories 
authorized to bind the partnership. Bidders submitting joint bids must 
state on the bid form the proportionate interest of each participating 
bidder, in percent to a maximum of five decimal places, e.g., 33.33333 
percent. Other documents may be required of bidders under 30 CFR 
256.46. Bidders are warned against violation of 18 U.S.C. 1860 
prohibiting unlawful combination or intimidation of bidders.
    4. Bidding, Yearly Rental, and Royalty Systems. The following 
bidding, yearly rental, and royalty systems apply to this sale:
    (a) Bidding Systems. All bids submitted at this sale must provide 
for a cash bonus in the amount of $25 or more per acre or fraction 
thereof.
    (b) Yearly Rental. All leases awarded will provide for a yearly 
rental payment of $5 per acre or fraction thereof.
    (c) Royalty Systems. All leases will provide for a minimum royalty 
of $5 per acre or fraction thereof. The following royalty systems will 
be used in this sale:
    (1) Leases With a 12\1/2\-Percent Royalty. This royalty rate 
applies to blocks in water depths of 400 meters or greater as shown on 
the Stipulations, Lease Terms, and Bidding Systems map (see paragraph 
13(a)). Leases issued on the blocks offered in this area will have a 
fixed royalty rate of 12\1/2\ percent.
    (2) Leases With a 16 \2/3\-Percent Royalty. This royalty rate 
applies to blocks in water depths of less than 400 meters (see 
aforementioned map). Leases issued on blocks offered in this area will 
have a fixed royalty rate of 16 \2/3\ percent.
    5. Equal Opportunity. The certification required by 41 CFR 60-
1.7(b) and Executive Order No. 11246 of September 24, 1965, as amended 
by Executive Order No. 11375 of October 13, 1967, on the Compliance 
Report Certification Form, Form MMS-2033 (June 1985), and the 
Affirmative Action Representation Form, Form MMS-2032 (June 1985), must 
be on file in the Gulf of Mexico regional office prior to lease award 
(see paragraph 14(e)).
    6. Bid Opening. Bid opening will begin at the bid opening time 
stated in paragraph 2. The opening of the bids is for the sole purpose 
of publicly announcing bids received, and no bids will be accepted or 
rejected at that time. If the Department is prohibited for any reason 
from opening any bid before midnight on the day of bid opening, that 
bid will be returned unopened to the bidder as soon thereafter as 
possible.
    7. Deposit Of Payment. Any cash, cashier's checks, certified 
checks, or bank drafts submitted with a bid may be deposited by the 
Government in an interest-bearing account in the U.S. Treasury during 
the period the bids are being considered. Such a deposit does not 
constitute and shall not be construed as acceptance of any bid on 
behalf of the United States.
    8. Withdrawal Of Blocks. The United States reserves the right to 
withdraw any block from this sale prior to issuance of a written 
acceptance of a bid for the block.
    9. Acceptance, Rejection, Or Return Of Bids. The United States 
reserves the right to reject any and all bids. In any case, no bid may 
be accepted, and no lease for any block will be awarded to any bidder, 
unless:
    (a) the bidder has complied with all requirements of this Notice 
and applicable regulations;
    (b) the bid is the highest valid bid; and
    (c) the amount of the bid has been determined to be adequate by the 
authorized officer.
    No bonus bid will be considered for acceptance unless it provides 
for a cash bonus in the amount of $25 or more per acre or fraction 
thereof. Any bid submitted which does not conform to the requirements 
of this Notice, the OCS Lands Act, as amended, and applicable 
regulations may be returned to the person submitting that bid by the RD 
and not considered for acceptance.
    10. Successful Bidders. Each person who has submitted a bid 
accepted by the authorized officer will be required to execute copies 
of the lease, pay the balance of the cash bonus bid along with the 
first year's annual rental for each lease issued, by electronic funds 
transfer in accordance with the requirements of 30 CFR 218.155, and 
satisfy the bonding requirements of 30 CFR 256, Subpart I, as amended. 
See Federal Register at 58 FR 45255, published August 27, 1993.
    11. Leasing Maps and Official Protraction Diagrams. Blocks offered 
for lease may be located on the following Leasing Maps or Official 
Protraction Diagrams which may be purchased from the Gulf of Mexico 
regional office (see paragraph 14(a)):
    (a) OCS Leasing Maps--Texas Nos. 1 through 8. This is a set of 16 
maps which sells for $18.00.
    (b) OCS Official Protraction Diagrams. These diagrams sell for 
$2.00 each.

NG 14-3 Corpus Christi (revised 01/27/76)
NG 14-6 Port Isabel (revised 01/15/92)
NG 15-1 East Breaks (revised 01/27/76)
NG 15-2 Garden Banks (revised 10/19/81)
NG 15-4 Alaminos Canyon (revised 04/27/89)
NG 15-5 Keathley Canyon (revised 04/27/89)
NG 15-8 (No Name) (revised 04/27/89)

    (c) A complete set of all the above OCS Leasing Maps and Official 
Protraction Diagrams is available on microfiche for $5.00 per set.
    12. Description Of the Areas Offered for Bids.
    (a) Acreages of blocks are shown on Leasing Maps and Official 
Protraction Diagrams. Some of these blocks, however, may be partially 
leased or transected by administrative lines such as the Federal/State 
jurisdictional line. Information on the unleased portions of such 
blocks, including the exact acreage, is included in the following 
document available from the Gulf of Mexico regional office: Western 
Gulf of Mexico Lease Sale 150--Final. Unleased Split Blocks and 
Unleased Acreage of Blocks with Aliquots and Irregular Portions Under 
Lease.
    (b) Blocks not available for leasing: The areas offered for leasing 
include all those blocks shown on the OCS Leasing Maps and Official 
Protraction Diagrams listed in paragraph 11 (a), (b), and (c), except 
for those blocks or partial blocks already under lease, as listed 
below, and blocks deferred from bidding as follows:
    (1) Although currently unleased and shown on Texas Leasing Map No. 
7C, High Island Area, East Addition, South Extension, no bids will be 
accepted on Blocks A-375 and A-398 (at the Flower Garden Banks).
    (2) No bids will be accepted on the following blocks located off 
Corpus Christi which have been identified by the Navy as needed for 
testing equipment and training mine warfare personnel: Mustang Island 
Area Blocks 793, 799, and 816.
    (3) No bids will be accepted on Block A-125, as shown on Leasing 
Map No. 6A, Galveston, South Addition, the status of which is currently 
under appeal.
    (4) Western Gulf of Mexico Leased Lands--Descriptions of blocks 
listed represent all Federal acreage leased unless otherwise noted:

South Padre Island

    1030, 1040, 1043, 1044, 1052, 1059, 1060, 1073, 1111, 1112, 1122, 
1125, 1134, 1166.

North Padre Island

    886, 887, 908, 927, 956, 957, 967, 968, 969, 976, 987, 988, 989.

North Padre Island, East Addition

    891, 892, 911, 932, 951, 952, 970, 974, 975, 990, 993, 995, 996, 
1011, 1018, A-6, A-9, A-10, A-11, A-27, A-38, A-42, A-43, A-48, A-55, 
A-59, A-64, A-69, A-70, A-72, A-75, A-76, A-86, A-87.

Mustang Island

    738, 739, 740, 742, 743, 752, 754, 755, 756, 757, 758, 759, 762, 
763, 764, 765, 767, 768, 769, 778, 779, 781, 782, 783, 784, 785, 786, 
787, 789, 790, 791, 801, 802, 803, 804, 805, 806, 807, 809, 811, 812, 
813, 814, 822, 823, 824, 825, 826, 828, 830, 831, 837, 846, 847, 849, 
850, 851, 858, 868, 869, 870, 871, 872, 873, 875, 876, A-2(NE\1/4\ 
NW\1/4\ NE\1/4\; NE\1/4\ NW\1/4\; NE\1/4\ SE\1/4\ NW\1/4\; W\1/2\ NW\1/
4\ NE\1/4\), A-3, A-5, A-6, A-7, A-10, A-11, A-15, A-16, A-17, A-21, A-
22, A-26, A-27, A-30, A-31, A-32, A-33, A-38.

Mustang Island, East Addition

    736, 760, A-46, A-47, A-51, A-53, A-57, A-61, A-65, A-70, A-71, A-
85, A-86, A-96, A-97, A-110, A-111, A-112, A-119, A-121, A-122, A-124, 
A-135, A-138, A-149.

Matagorda Island

    487, 518, 519, 520, 526, 527, 528, 529 (Landward of 8(g) Line), 
555, 556, 557, 564, 565, 566, 567, 568, 587, 588, 589, 591, 592, 599, 
600, 601, 602, 603, 604, 605, 606, 607, 616, 617, 618, 619, 620, 622, 
623, 624, 632, 633, 634 (Seaward of 8(g) Line), 635, 636, 637, 638, 
639, 640, 641, 649, 650, 651, 652, 653, 654, 656, 657, 658, 663, 664, 
665, 666, 667, 668, 669, 670, 671, 672, 674, 676, 678, 680, 681, 682, 
683, 685, 686, 687, 688, 689, 696, 699, 700, 701, 703, 704, 705, 707, 
709, 710, 712, 713, 714, 715, 716, A-4, A-7, A-8.

Brazos

    341, 342, 364 (Landward of 8(g) line), 365, 375, 376, 378, 396, 
397, 398, 399, 411, 412, 413, 415, 416, 417, 431, 432, 435 (Seaward of 
8(g) Line), 436, 437, 439, 449, 451, 452 (E\1/2\), 453, 454, 455, 456, 
457, 458, 466, 468, 469, 470, 471, 473, 474, 475, 476, 477, 488, 491, 
492, 493, 494, 495, 496, 498, 501, 502, 504, 506, 507, 509, 510, 514, 
515, 516, 517, 531, 532, 533, 534, 535, 537, 538, 539, 542, 543, 544, 
546, 549, 550, 552, 570, 571, 572, 576, 577, 578, 580, 584, 608, 613, 
614, 615, A-2, A-3, A-6, A-7, A-9, A-10, A-14, A-17, A-19, A-20, A-21, 
A-22, A-23, A-24, A-25, A-31, A-36, A-37, A-38, A-39, A-40, A-41, A-43.

Brazos, South Addition

    A-46, A-47, A-51, A-52, A-53, A-61, A-62, A-65, A-66, A-70, A-71, 
A-76, A-77, A-84, A-85, A-101, A-102, A-104, A-105, A-106, A-110, A-
111, A-127, A-128, A-132, A-133.

Galveston

    144, 151, 152, 180, 181, 182, 189, 190, 191, 192, 209, 210, 211, 
213, 223, 225, 227, 237, 238, 239, 240, 241, 242 (Landward of 8(g) 
Line), 243, 252, 253, 255, 256, 257, 258, 265, 266, 267, 268, 270, 271, 
272, 273, 274, 281, 283, 284, 285, 288, 289, 290, 291, 294, 295(S\1/2\ 
NE\1/4\ NE\1/4\; NW\1/4\ NE\1/4\; W\1/2\ SW\1/4\ NE\1/4\; NE\1/4\ SW\1/
4\ NE\1/4\; N\1/2\ SE\1/4\ NE\1/4\; W\1/2\; W\1/2\ NW\1/4\ SE\1/4\; 
S\1/2\ SE\1/4\), 296(NE\1/4\; NE\1/4\ NE\1/4\ NW\1/4\; S\1/2\ NE\1/4\ 
NW\1/4\; SE\1/4\ NW\1/4\; S\1/2\ SW\1/4\ NW\1/4\; N\1/2\ SW\1/4\; NE\1/
4\ SW\1/4\ SW\1/4\; N\1/2\ SE\1/4\ SW\1/4\; N\1/2\ SE\1/4\; N\1/2\ 
SW\1/4\ SE\1/4\; SE\1/4\ SE\1/4\), 297, 298, 299, 301, 302, 303, 304, 
305, 312, 313, 314, 318, 319, 320, 321, 322, 324, 325, 326, 328, 329, 
330, 331, 332, 333, 343, 344, 345, 346, 347, 348, 349, 350, 351, 354, 
356, 357, 358, 359, 360, 361, 363, 379, 380, 383, 384, 385, 386, 389, 
390, 391, 392, 393, 394, 395, 418, 420, 421, 428, 429, 460, 503, A-2, 
A-15, A-16, A-18, A-21, A-24, A-34, A-35, A-39, A-40, A-41, A-42, A-49, 
A-50, A-86, A-101, A-105, A-110, A-111.

Galveston, South Addition

    A-122, A-142, A-143, A-144, A-145, A-218.

High Island

    19, 20, 21, 22, 34, 36, 52, 53, 67, 68, 69, 70, 71, 73, 86, 87, 88, 
89, 90, 93, 97, 98, 105, 106, 108, 109, 110, 111, 113, 115, 116, 117, 
134, 135(N\1/2\; N\1/2\ S\1/2\; SW\1/4\ SW\1/4\; W\1/2\ SE\1/4\ SW\1/
4\; NE\1/4\ SE\1/4\ SW\1/4\; N\1/2\ S\1/2\ SE\1/4\), 136(E\1/2\; E\1/2\ 
NE\1/4\ SW\1/4\; S\1/2\ SE\1/4\ SW\1/4\), 137, 138(N\1/2\), 139, 140, 
143, 153, 154, 155(W\1/2\), 156, 160(NE\1/4\; NE\1/4\ NW\1/4\; E\1/2\ 
SE\1/4\ NW\1/4\; N\1/2\ SE\1/4\; N\1/2\ SE\1/4\ SE\1/4\), 161(NW\1/4\ 
NE\1/4\ NW\1/4\; S\1/2\ NE\1/4\ NW\1/4\; W\1/2\ NW\1/4\; SE\1/4\ NW\1/
4\; NE\1/4\ NE\1/4\ SW\1/4\; W\1/2\ NE\1/4\ SW\1/4\; NW\1/4\ SW\1/4\; 
NW\1/4\ SW\1/4\ SW\1/4\), 162, 164, 165, 169, 170, 171, 175, 176, 177, 
178, 179, 193, 194, 195, 196, 197, 199, 200, 201, 204, 206, 207, 208, 
228, 229, 230, 231, 232, 234, 235, 236, 261, 262, A-1, A-2, A-3, A-5, 
A-6, A-7, A-9, A-12, A-16, A-17, A-18, A-19, A-20, A-21, A-22, A-23, A-
26, A-30, A-36, A-37, A-38, A-39, A-42, A-44, A-45, A-46, A-50, A-52, 
A-53, A-60, A-61, A-63, A-64, A-68, A-69, A-73, A-74, A-77, A-78, A-83, 
A-87, A-100, A-122, A-123, A-125, A-127, A-128, A-129, A-130, A-133, A-
137.

High Island, South Addition

    A-411, A-412, A-417, A-421, A-422, A-424, A-434, A-435, A-438, A-
441, A-442, A-443, A-444, A-446, A-447, A-448, A-462, A-465, A-466, A-
467, A-468, A-469, A-470, A-471, A-472, A-474, A-475, A-477, A-479, A-
486, A-488, A-489, A-490, A-491, A-494, A-496, A-497, A-499, A-500, A-
501, A-503, A-506, A-510, A-511, A-512, A-513, A-515, A-517, A-518, A-
519, A-520, A-521, A-523, A-524, A-528, A-530, A-531, A-532, A-535, A-
536, A-537, A-538, A-539, A-540, A-545, A-547, A-548, A-549, A-550, A-
551, A-552, A-553, A-555, A-556, A-557, A-558, A-560, A-561, A-
562(SW\1/4\), A-563, A-564, A-568, A-570, A-571, A-572, A-573, A-574, 
A-576, A-577, A-582, A-585, A-587, A-588, A-589, A-593, A-595, A-596.

High Island, East Addition

    39, 45, 46, 74, 75, 76, 85, 120, 128, 129, 166, 167, A-168, A-169, 
A-171, A-172, A-173, A-174, A-175, A-176, A-185, A-187, A-192, A-195, 
A-200, A-201, A-224, A-231, A-233, A-244, A-245, A-246, A-247, A-250, 
A-253.

High Island, East Addition, South Extension

    A-263, A-269, A-270, A-271, A-272, A-274, A-279, A-280, A-281, A-
282, A-283, A-285, A-286, A-287, A-293, A-295, A-299, A-300, A-301, A-
302, A-303, A-305, A-309, A-310, A-313, A-314, A-315, A-316, A-317, A-
323, A-325, A-327, A-329, A-330, A-331, A-332, A-334, A-335, A-339, A-
340, A-341, A-343, A-349, A-350, A-351, A-352, A-355, A-356, A-359, A-
362, A-365, A-368, A-369, A-370, A-371, A-372, A-373, A-374, A-376, A-
377, A-378, A-379, A-382, A-383, A-384, A-385, A-389, A-391, A-392, A-
393, A-395, A-396, A-397, A-402, A-403.

Sabine Pass

    17, 18, 40

East Breaks

    109, 110, 112, 117, 122, 125, 154, 156, 157, 158, 159, 160, 161, 
165, 166, 167, 168, 169, 171, 172, 173, 209, 215, 216, 237, 238, 246, 
254, 255, 260, 290, 303, 329, 330, 342, 343, 344, 345, 386, 388, 389, 
392, 393, 402, 403, 430, 431, 437, 462, 473, 474, 475, 476, 477, 506, 
507, 518, 520, 562, 563, 564, 565, 566, 593, 598, 599, 602, 604, 605, 
607, 608, 609, 637, 638, 639, 640, 641, 642, 643, 644, 645, 646, 647, 
648, 649, 653, 654, 683, 684, 685, 686, 688, 689, 690, 691, 692, 728, 
729, 732, 739, 740, 741, 783, 784, 785, 901, 902, 904, 943, 944, 945, 
946, 947, 948, 949, 987, 988, 989, 990, 991, 992, 994.

Garden Banks

    21, 22, 26, 28, 29 , 65, 70, 71, 72, 73, 75, 76, 80, 83, 84, 103, 
117, 119, 120, 123, 126, 127, 128, 134, 135, 136, 141, 142, 144, 145, 
147, 157, 158, 161, 162, 164, 165, 166, 167, 168, 170, 171, 172, 180, 
183, 186, 188, 189, 190, 191, 192, 200, 201, 202, 203, 206, 207, 208, 
209, 210, 211, 212, 213, 215, 216, 217, 224, 225, 233, 234, 235, 236, 
237, 240, 248, 250, 252, 253, 254, 255, 257, 258, 259, 260, 261, 269, 
276, 277, 278, 279, 287, 289, 290, 291, 298, 299, 300, 302, 304, 319, 
322, 323, 329, 330, 331, 333, 342, 343, 344, 345, 353, 354, 361, 362, 
363, 365, 366, 368, 371, 374, 375, 376, 377, 379, 381, 382, 386, 387, 
388, 389, 397, 398, 405, 406, 407, 413, 416, 418, 419, 420, 421, 423, 
424, 425, 426, 427, 428, 429, 430, 431, 432, 463, 464, 468, 469, 470, 
471, 472, 473, 474, 475, 476, 477, 498, 499, 506, 507, 508, 512, 513, 
514, 515, 516, 517, 535, 543, 544, 549, 550, 554, 555, 556, 557, 558, 
559, 562, 563, 593, 598, 599, 600, 601, 602, 603, 622, 623, 629, 630, 
638, 639, 644, 645, 646, 653, 674, 682, 683, 694, 697, 726, 727, 738, 
739, 740, 741, 754, 767, 768, 769, 771, 772, 782, 783, 784, 785, 798, 
803, 804, 806, 811, 812, 813, 814, 815, 816, 817, 826, 831, 832, 833, 
848, 849, 850, 855, 856, 860, 875, 876, 877, 885, 902, 903, 919, 920, 
921, 929, 930, 938, 939, 940, 947, 963, 964, 974, 975.

Port Isabel

    39, 40, 81, 82, 125, 126, 130, 131, 174, 175, 216, 218, 393, 436, 
437, 438, 481, 482, 483, 524, 525, 526, 568, 569, 570, 610, 611, 613, 
653, 654, 655, 656, 657, 696, 697, 698, 700, 701, 740, 741.

Alaminos Canyon

    20, 21, 22, 23, 24, 25, 26, 65, 133, 192, 236, 237, 261, 280, 305, 
336, 337, 380, 398, 441, 442, 485, 489, 490, 491, 533, 534, 556, 557, 
558, 599, 600, 601, 602, 644, 645, 646, 647, 648, 687, 691, 719, 720, 
726, 730, 731, 734, 735, 736, 763, 764, 766, 767, 770, 774, 775, 780, 
781, 810, 811, 813, 814, 818, 827, 854, 856, 857, 900, 901, 903, 904, 
947, 951, 954.

Keathley Canyon

    6, 7, 133, 134, 155, 156, 157, 158, 159, 177, 178, 179, 199, 200, 
201, 202, 212, 221, 242, 243, 245, 246, 255, 256, 324, 377, 421, 422, 
476, 522, 523, 567, 568, 583, 584, 603, 604, 647, 648, 695.
    13. Lease Terms and Stipulations.
    (a) Leases resulting from this sale will have initial terms as 
shown on the Stipulations, Lease Terms, and Bidding Systems map 
applicable to this Notice and will be issued on Form MMS-2005 (March 
1986). Copies of the map and lease form are available from the Gulf of 
Mexico regional office (see paragraph 14(a)).
    (b) The applicability of the stipulations which follow is as shown 
on the aforementioned map and as supplemented by references in this 
Notice.

Stipulation No. 1--Protection of Archaeological Resources

    (This stipulation will apply to all blocks offered for lease in 
this sale. Bidders should refer also to paragraph 14(g) of this Notice 
for specific survey requirements. See also paragraph 14(i).)
    (a) ``Archaeological resource'' means any prehistoric or historic 
district, site, building, structure, or object (including shipwrecks); 
such term includes artifacts, records, and remains which are related to 
such a district, site, building, structure, or object (16 U.S.C. 
470w(5)). ``Operations'' means any drilling, mining, or construction or 
placement of any structure for exploration, development, or production 
of the lease.
    (b) If the Regional Director (RD) believes an archaeological 
resource may exist in the lease area, the RD will notify the lessee in 
writing. The lessee shall then comply with subparagraphs (1) through 
(3).
    (1) Prior to commencing any operations, the lessee shall prepare a 
report, as specified by the RD, to determine the potential existence of 
any archaeological resource that may be affected by operations. The 
report, prepared by an archaeologist and a geophysicist, shall be based 
on an assessment of data from remote-sensing surveys and of other 
pertinent archaeological and environmental information. The lessee 
shall submit this report to the RD for review.
    (2) If the evidence suggests that an archaeological resource may be 
present, the lessee shall either:
    (i) Locate the site of any operation so as not to adversely affect 
the area where the archaeological resource may be, or
    (ii) Establish to the satisfaction of the RD that an archaeological 
resource does not exist or will not be adversely affected by 
operations. This shall be done by further archaeological investigation, 
conducted by an archaeologist and a geophysicist, using survey 
equipment and techniques deemed necessary by the RD. A report on the 
investigation shall be submitted to the RD for review.
    (3) If the RD determines that an archaeological resource is likely 
to be present in the lease area and may be adversely affected by 
operations, the RD will notify the lessee immediately. The lessee shall 
take no action that may adversely affect the archaeological resource 
until the RD has told the lessee how to protect it.
    (c) If the lessee discovers any archaeological resource while 
conducting operations on the lease area, the lessee shall report the 
discovery immediately to the RD. The lessee shall make every reasonable 
effort to preserve the archaeological resource until the RD has told 
the lessee how to protect it.

Stipulation No. 2--Protection of Topographic Features

    (This stipulation will be included in leases located in the areas 
so indicated in the Biological Stipulation Map Package associated with 
this Notice which is available from the Gulf of Mexico regional office. 
See paragraph 14(a).)
    The banks which cause this stipulation to be applied to blocks of 
the Western Gulf are: 

------------------------------------------------------------------------
                                                No activity zone defined
                  Bank name                       by isobath (meters)   
------------------------------------------------------------------------
Shelf Edge Banks:                                                       
  West Flower Garden Bank\1\ (defined by \1/   100                      
   4\ \1/4\ system).                                                    
  East Flower Garden Bank\1\ (defined by \1/   100                      
   4\ \1/4\ system).                                                    
  MacNeil Bank...............................  82                       
  29 Fathom Bank.............................  64                       
  Rankin Bank................................  85                       
  Geyer Bank.................................  85                       
  Elvers Bank................................  85                       
  Bright Bank\2\.............................  85                       
  McGrail Bank\2\............................  85                       
  Rezak Bank\2\..............................  85                       
  Sidner Bank\2\.............................  85                       
  Parker Bank\2\.............................  85                       
  Stetson Bank...............................  62                       
  Applebaum Bank.............................  85                       
Low Relief Banks:\3\                                                    
  Mysterious Bank............................  74, 76, 78, 80, 84       
  Coffee Lump................................  Various                  
  Blackfish Ridge............................  70                       
  Big Dunn Bar...............................  65                       
  Small Dunn Bar.............................  65                       
  32 Fathom Bank.............................  52                       
  Claypile Bank\4\...........................  50                       
South Texas Banks:\5\                                                   
  Dream Bank.................................  78, 82                   
  Southern Bank..............................  80                       
  Hospital Bank..............................  70                       
  North Hospital Bank........................  68                       
  Aransas Bank...............................  70                       
  South Baker Bank...........................  70                       
  Baker Bank.................................  70                       
------------------------------------------------------------------------
\1\Flower Garden Banks--In paragraph (c) a ``4-Mile Zone'' rather than a
  ``1-Mile Zone'' applies.                                              
\2\Central Gulf of Mexico bank with a portion of its ``1-Mile Zone'' and/
  or ``3-Mile Zone'' in the Western Gulf of Mexico.                     
\3\Low Relief Banks--Only paragraph (a) applies.                        
\4\Claypile Bank--Paragraphs (a) and (b) apply. In paragraph (b)        
  monitoring of the effluent to determine the effect on the biota of    
  Claypile Bank shall be required rather than shunting.                 
\5\South Texas Banks--Only paragraphs (a) and (b) apply.                

    (a) No activity including structures, drilling rigs, pipelines, or 
anchoring will be allowed within the listed isobath (``No Activity 
Zone'' as shown in the aforementioned Biological Stipulation Map 
Package) of the banks as listed above.
    (b) Operations within the area shown as ``1,000-Meter Zone'' in the 
aforementioned Biological Stipulation Map Package shall be restricted 
by shunting all drill cuttings and drilling fluids to the bottom 
through a downpipe that terminates an appropriate distance, but no more 
than 10 meters, from the bottom.
    (c) Operations within the area shown as ``1-Mile Zone'' in the 
aforementioned Biological Stipulation Map Package shall be restricted 
by shunting all drill cuttings and drilling fluids to the bottom 
through a downpipe that terminates an appropriate distance, but no more 
than 10 meters, from the bottom. (Where there is a ``1-Mile Zone'' 
designated, the ``1,000 Meter Zone'' in paragraph (b) is not 
designated.)
    (d) Operations within the area shown as ``3-Mile Zone'' in the 
aforementioned Biological Stipulation Map Package shall be restricted 
by shunting all drill cuttings and drilling fluids from development 
operations to the bottom through a downpipe that terminates an 
appropriate distance, but no more than 10 meters, from the bottom.

Stipulation No. 3--Military Warning Areas

    (This stipulation will be included in leases located within Warning 
Areas as shown on the map described in paragraph 13(a).)

(a) Hold and Save Harmless

    Whether compensation for such damage or injury might be due under a 
theory of strict or absolute liability or otherwise, the lessee assumes 
all risks of damage or injury to persons or property, which occur in, 
on, or above the Outer Continental Shelf (OCS), to any persons or to 
any property of any person or persons who are agents, employees, or 
invitees of the lessee, its agents, independent contractors, or 
subcontractors doing business with the lessee in connection with any 
activities being performed by the lessee in, on, or above the OCS; if 
such injury or damage to such person or property occurs by reason of 
the activities of any agency of the U.S. Government, its contractors or 
subcontractors, or any of their officers, agents, or employees, being 
conducted as a part of, or in connection with, the programs and 
activities of the command headquarters listed in the table below.
    Notwithstanding any limitation of the lessee's liability in section 
14 of the lease, the lessee assumes this risk whether such injury or 
damage is caused in whole or in part by any act or omission, regardless 
of negligence or fault, of the United States, its contractors or 
subcontractors, or any of its officers, agents, or employees. The 
lessee further agrees to indemnify and save harmless the United States 
against all claims for loss, damage, or injury sustained by the lessee; 
and to indemnify and save harmless the United States against all claims 
for loss, damage, or injury sustained by the agents, employees, or 
invitees of the lessee, its agents, or any independent contractors or 
subcontractors doing business with the lessee in connection with the 
programs and activities of the appropriate military installation, 
whether the same be caused in whole or in part by the negligence or 
fault of the United States, its contractors or subcontractors, or any 
of its officers, agents, or employees; and whether such claims might be 
sustained under a theory of strict or absolute liability or otherwise.

(b) Electromagnetic Emissions

    The lessee agrees to control its own electromagnetic emissions and 
those of its agents, employees, invitees, independent contractors, or 
subcontractors emanating from individual designated defense warning 
areas in accordance with requirements specified by the commander of the 
command headquarters listed in the table below to the degree necessary 
to prevent damage to, or unacceptable interference with, Department of 
Defense flight, testing, or operational activities conducted within 
individual designated warning areas. Necessary monitoring control and 
coordination with the lessee, its agents, employees, invitees, 
independent contractors, or subcontractors will be effected by the 
commander of the appropriate onshore military installation conducting 
operations in the particular warning area provided, however, that 
control of such electromagnetic emissions shall in no instance prohibit 
all manner of electromagnetic communication during any period of time 
between a lessee, its agents, employees, invitees, independent 
contractors or subcontractors, and onshore facilities.

(c) Operational

    The lessee, when operating or causing to be operated on its behalf, 
boat, ship, or aircraft traffic into the individual designated warning 
areas, shall enter into an agreement with the commander of the 
individual command headquarters listed in the following list, upon 
utilizing an individual designated warning area prior to commencing 
such traffic. Such an agreement will provide for positive control of 
boats, ships, and aircraft operating into the warning areas at all 
times.
    Warning Areas' Command Headquarters for Western Planning Area:

W-228--Chief, Naval Air Training, Naval Air Station, Office No. 206, 
Corpus Christi, Texas 78419-5100, Telephone: (512) 939-3862/2621.
W-602--Headquarters ACC/DOSR, Detachment 1, Operations Headquarters, 
Air Combat Command, Offutt AFB, Nebraska 68113-5550, Telephone: (402) 
294-2334.

Stipulation No. 4--Operations in the Naval Mine Warfare Area

    (This stipulation will apply to Mustang Island Area East Addition 
blocks 732, 733, and 734.)
    (a) The placement, location, and planned periods of operation of 
surface structures on this lease during the exploration stage are 
subject to approval by the Regional Director (RD), Minerals Management 
Service Gulf of Mexico Region, after the review of an operator's 
Exploration Plan (EP). Prior to approval of the EP, the RD will consult 
with the Commander, Mine Warfare Command, in order to determine the 
EP's compatibility with scheduled military operations. No permanent 
structures nor debris of any kind shall be allowed in the area covered 
by this lease during exploration operations.
    (b) To the extent possible, sub-seafloor development operations for 
resources subsurface to this area should originate outside the area 
covered by this lease. Any above-seafloor development operations within 
the area covered by this lease must be compatible with scheduled 
military operations as determined by the Commander, Mine Warfare 
Command. The lessee will consult with and coordinate plans for above 
sea-floor development activities (including abandonment) with the 
Commander, Mine Warfare Command. The Development Operations 
Coordination Document (DOCD) must contain the locations of any 
permanent structures, fixed platforms, pipelines, or anchors planned to 
be constructed or placed in the area covered by this lease as part of 
such development operations. The DOCD must also contain the written 
comments of the Commander, Mine Warfare Command on the proposed 
activities. Prior to approval of the DOCD, the RD will consult with the 
Commander in order to determine the DOCD's compatibility with scheduled 
military operations.
    For more information, consultation, and coordination, the lessee 
must contact:

Commander, Mine Warfare Command, 325 Fifth Street, SE., Corpus Christi, 
Texas 78419-5032, Phone: (512) 939-4895.

    14. Information to Lessees.
    (a) Supplemental Documents. For copies of the various documents 
identified as available from the Gulf of Mexico regional office, 
prospective bidders should contact the Public Information Unit, 
Minerals Management Service, 1201 Elmwood Park Boulevard, New Orleans, 
Louisiana 70123-2394, either in writing or by telephone at (504) 736-
2519 or (800) 200-GULF. For additional information, contact the 
Regional Supervisor for Leasing and Environment at the above address or 
by telephone at (504) 736-2759.
    (b) Navigation Safety. Operations on some of the blocks offered for 
lease may be restricted by designation of fairways, precautionary 
zones, anchorages, safety zones, or traffic separation schemes 
established by the U.S. Coast Guard pursuant to the Ports and Waterways 
Safety Act (33 U.S.C. 1221 et seq.), as amended.
    U.S. Corps of Engineers (COE) permits are required for the 
construction of any artificial islands, installations, and other 
devices temporarily or permanently attached to the seabed located on 
the OCS in accordance with section 4(e) of the OCS Lands Act, as 
amended.
    For additional information, prospective bidders should contact Lt. 
Commander Ken Parris, Assistant Marine Port Safety Officer, 8th Coast 
Guard District, Hale Boggs Federal Building, New Orleans, Louisiana 
70130, telephone (504) 589-6901. For COE information, prospective 
bidders should contact Mr. Dolan Dunn, Chief Evaluation Section, 
Regulatory Branch, P.O. Box 1229, Galveston, Texas 77553, telephone 
(409) 766-3935.
    (c) Offshore Pipelines. Lessees are advised that the Department of 
the Interior and the Department of Transportation have entered into a 
Memorandum of Understanding dated May 6, 1976, concerning the design, 
installation, operation, and maintenance of offshore pipelines. Bidders 
should consult both Departments for regulations applicable to offshore 
pipelines.
    (d) 8-Year Leases. Bidders are advised that any lease issued for a 
term of 8 years will be cancelled after 5 years, following notice 
pursuant to the OCS Lands Act, as amended, if within the initial 5-year 
period of the lease, the drilling of an exploratory well has not been 
initiated; or if initiated, the well has not been drilled in 
conformance with the approved exploration plan criteria; or if there is 
not a suspension of operations in effect, etc. Bidders are referred to 
30 CFR 256.37.
    (e) Affirmative Action. Revision of the Department of Labor 
regulations on affirmative action requirements for Government 
contractors (including lessees) has been deferred, pending review of 
those regulations (see Federal Register of August 25, 1981, at 46 FR 
42865 and 42968). Should changes become effective at any time before 
the issuance of leases resulting from this sale, section 18 of the 
lease form (Form MMS-2005, March 1986) would be deleted from leases 
resulting from this sale. In addition, existing stocks of the 
affirmative action forms described in paragraph 5 of this Notice 
contain language that would be superseded by the revised regulations at 
41 CFR 60-1.5(a)(1) and 60-1.7(a)(1). Submission of Form MMS-2032 (June 
1985) and Form MMS-2033 (June 1985) will not invalidate an otherwise 
acceptable bid, and the revised regulations' requirements will be 
deemed to be part of the existing affirmative action forms.
    (f) Ordnance Disposal Areas. Bidders are cautioned as to the 
existence of two inactive ordnance disposal areas in the Corpus Christi 
and East Breaks areas, shown on the map described in paragraph 13(a). 
These areas were used to dispose of ordnance of unknown composition and 
quantity. These areas have not been used since about 1970. Water depths 
in the Corpus Christi area range from approximately 600 to 900 meters. 
Water depths in the East Breaks area range from approximately 300 to 
700 meters. Bottom sediments in both areas are generally soft, 
consisting of silty clays. Exploration and development activities in 
these areas require precautions commensurate with the potential 
hazards.
    (g) Archaeological Resources. Bidders are advised of the Notice to 
Lessees (NTL) affecting the historic shipwreck requirements published 
December 20, 1991, in the Federal Register pages 66076-66082 with an 
effective date of February 17, 1992. This NTL details the survey 
methodology, including a more intensive survey with line spacing 50 
meters apart, and report writing requirements. A Letter to Lessees 
(LTL) of November 30, 1990, lists those blocks identified as having a 
high probability for encountering historic shipwrecks. Copies of the 
NTL and LTL are available from the MMS Public Information Unit. See 
paragraph 14(a).
    (h) Proposed Rigs To Reefs. Bidders are advised that there are OCS 
artificial reef sites and planning sites for the Gulf of Mexico. These 
are generally located in water depths of less than 200 meters. While 
all existing and proposed sites require a permit from the U.S. Army 
Corps of Engineers, this ``Rigs to Reefs'' program is implemented 
through State sponsorship through the following State Coordinators:

Alabama: Mr. Walter M. Tatum (205) 968-7578.
Louisiana: Mr. Rick Kasprzac (504) 765-2375.
Mississippi: Mr. Mike Buchanan (601) 385-5868.
Texas: Ms. Jan Coulbertson (512) 389-4863.

    For more information on artificial reef sites, prospective bidders 
should contact the above listed State Artificial Reef Coordinator for 
their areas of interest.
    (i) Archaeological Surveys and Reports. Bidders are advised that a 
Proposed Rule has been published in the Federal Register dated Tuesday, 
October 12, 1993, which proposes to grant specific authority to each 
MMS Regional Director to require archaeological surveys and reports 
(under 30 CFR 250.26). This proposed rule specifically states the 
authority of MMS and conditions for requiring lessees or operators to 
conduct archaeological resource surveys and submit the reports prior to 
exploration, development and production, or installation of pipelines. 
This rule, when adopted, may apply to all blocks leased in this sale.

    Dated: June 27, 1994.
Tom Fry,
Director, Minerals Management Service.
    Approved:
Nancy K. Hayes,
Acting Assistant Secretary--Land and Minerals Management.
[FR Doc. 94-16901 Filed 7-12-94; 8:45 am]
BILLING CODE 4310-MR-P