[Federal Register Volume 61, Number 140 (Friday, July 19, 1996)]
[Notices]
[Page 37765]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-18419]


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DEPARTMENT OF THE INTERIOR
Minerals Management Service


Outer Continental Shelf, Central Gulf of Mexico, Oil and Gas 
Lease Sale 157--Extension

AGENCY: Minerals Management Service (MMS), Interior.

ACTION: Notice to extend postsale evaluation period for Central Gulf of 
Mexico Lease Sale 157.

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SUMMARY: This notice extends by 15 working days to August 12, 1996, the 
postsale evaluation period for the Central Gulf of Mexico Lease Sale 
157. Because of the unanticipated and unprecedented response to Sale 
157, MMS needs this extension to properly evaluate the bids received 
and to ensure the receipt of fair value.

DATES: The postsale evaluation period ends on August 12, 1996.

FOR FURTHER INFORMATION CONTACT:
Dr. Marshall Rose, Chief, Economic Evaluation Branch, telephone (703) 
787-1536.

SUPPLEMENTARY INFORMATION: The MMS published the lease notice for Sale 
157 in the Federal Register on March 25, 1996 (61 FR 12078). The time 
to accept or reject bids is established under the regulations at 30 CFR 
256.47. Normally, the authorized officer must accept or reject the high 
bids within 90 days after the bid opening. Any bid not accepted within 
that period is deemed rejected. This regulation was recently amended to 
allow the authorized officer authority to extend the time period for 15 
working days or longer when circumstances warrant (61 FR 34730, dated 
July 3, 1996). In amending the rule, we noted that recent examples 
include floods and furloughs; but specifically stated that other 
circumstances, such as an excessive unanticipated workload, might arise 
which could warrant the need for a longer time for bid evaluation.
    In the Central Gulf of Mexico Sale 157, held April 24, 1996, we 
received 1,381 bids on 924 tracts, 632 of which passed to Phase 2 for 
detailed reviews. This unprecedented response by industry in Sale 157 
resulted from the enactment of the Outer Continental Shelf Deep Water 
Royalty Relief Act (Pub. L. 104-58) and other factors, such as higher 
natural gas and oil prices. Consequently, MMS is unable to conduct and 
complete the entire bid review process within the 90 days, i.e., by 
July 22, 1996. Without an extension before the 90 days expire for Sale 
157, dozens of high bids received on tracts offered in this sale might 
be rejected because of our inability to complete the statutorily 
mandated review for fair market value. The alternative of rejecting 
high bids not evaluated because of insufficient time does not serve the 
overall best interest of the companies or the Government. Therefore, we 
find an extension to assure that adequate time is available to give all 
high bids a full and appropriate review, to ensure the receipt of fair 
market value, and ultimately to increase natural gas and oil supplies 
is warranted and in the public interest. The MMS will complete 
evaluating all the bids received in this sale by August 22, 1996.

    Dated: July 16, 1996.
Chris C. Oynes,
Regional Director, Gulf of Mexico OCS Region.
[FR Doc. 96-18419 Filed 7-18-96; 8:45 am]
BILLING CODE 4310-MR-M