[Federal Register Volume 64, Number 29 (Friday, February 12, 1999)]
[Notices]
[Pages 7486-7487]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-3729]



[[Page 7485]]

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Part XII





Department of the Interior





_______________________________________________________________________



Minerals Management Service



_______________________________________________________________________



Outer Continental Shelf, Central Gulf of Mexico, Oil and Gas Lease Sale 
172; Notice



Outer Continental Shelf, Central Gulf of Mexico; Bidding Systems, Sale 
172; Notice

  Federal Register / Vol. 64, No. 29 / Friday, February 12, 1999 / 
Notices  

[[Page 7486]]



DEPARTMENT OF THE INTERIOR

Minerals Management Service


Outer Continental Shelf, Central Gulf of Mexico, Oil and Gas 
Lease Sale 172

ACTION: Final notice of sale 172.

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    On March 17, 1999, the Minerals Management Service (MMS) will open 
and publicly announce bids received for blocks offered in Sale 172, 
Central Gulf of Mexico, pursuant to the Outer Continental Shelf (OCS) 
Lands Act (43 U.S.C. 1331-1356, as amended) and the regulations issued 
thereunder (30 CFR Part 256). Bidders can obtain a ``Final Notice of 
Sale 172 Package'' containing this Notice of Sale and several 
supporting and essential documents referenced herein, from the MMS Gulf 
of Mexico Region's Public Information Unit, 1201 Elmwood Park 
Boulevard, New Orleans, Louisiana 70123-2394, (504) 736-2519 or (800) 
200-GULF, or via the MMS Gulf of Mexico Region's Internet site at 
http://www.gomr.mms.gov. The MMS also maintains a 24-hour Fax-on-Demand 
Service at (202) 219-1703. The ``Final Notice of Sale 172 Package'' 
contains information essential to bidders, and bidders are charged with 
the knowledge of the documents contained in the package.

Location and Time

    Public bid reading will begin at 9 a.m., Wednesday, March 17, 1999, 
at the Hyatt Regency Conference Center (Cabildo Rooms), 500 Poydras 
Plaza, New Orleans, Louisiana. All times referred to in this document 
are local New Orleans time.

Filing of Bids

    Bidders must submit sealed bids to the Regional Director (RD), MMS 
Gulf of Mexico Region, 1201 Elmwood Park Boulevard, New Orleans, 
Louisiana 70123-2394, during normal business hours (8 a.m. to 4 p.m.) 
prior to the Bid Submission Deadline at 10 a.m., Tuesday, March 16, 
1999. If the RD receives bids later than the time and date specified 
above, he will return the bids unopened to bidders. Bidders may not 
modify or withdraw their bids unless the RD receives a written 
modification or written withdrawal request prior to 10 a.m., Tuesday, 
March 16, 1999. In the event of widespread flooding or other natural 
disaster, the MMS Gulf of Mexico Regional Office may extend the bid 
submission deadline. Bidders may call (504) 736-0537 for information 
about the possible extension of the bid submission deadline due to such 
an event.

Areas Offered for Leasing

    The MMS is offering for leasing all the blocks and partial blocks 
listed in the document ``Blocks Available for Leasing in Gulf of Mexico 
OCS Oil and Gas Lease Sale 172'' included in the Sale Notice Package. 
All of these blocks are shown on the following Leasing Maps and 
Official Protraction Diagrams (which may be purchased from the MMS Gulf 
of Mexico Regional Office Public Information Unit).
    Outer Continental Shelf Leasing Maps--Louisiana Nos. 1 through 12. 
This is a set of 30 maps which sells for $32.
    Outer Continental Shelf Official Protraction Diagrams (these 
diagrams sell for $2.00 each):

NH 15-12  Ewing Bank (rev. 12/02/76).
NH 16-4  Mobile (rev. 02/23/93).
NH 16-7  Viosca Knoll (rev. 12/02/76).
NH 16-10  Mississippi Canyon (rev. 05/01/96).
NG 15-3  Green Canyon (rev. 12/02/76).
NG 15-6  Walker Ridge (rev. 12/02/76).
NG 15-9  (No Name) (rev. 04/27/89).
NG 16-1  Atwater Valley (rev. 11/10/83).
NG 16-4  Lund (rev. 08/22/86).
NG 16-7  (No Name) (rev. 04/27/89).

    Acreage of all blocks is shown on these Leasing Maps and Official 
Protraction Diagrams. Available Federal acreage of blocks available in 
this sale is shown in the document ``Blocks Available for Leasing in 
the Central Gulf of Mexico OCS Oil and Gas Lease Sale 172'' included in 
the Sale Notice Package. Some of these blocks 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 found in the document titled 
``Central Gulf of Mexico Lease Sale 172--Unleased Split Blocks and 
Unleased Acreage of Blocks with Aliquots and Irregular Portions Under 
Lease,'' included in the Sale Notice Package.

Areas Not Available for Leasing

    The following blocks in the Central Gulf of Mexico Planning Area 
are not available for leasing:
    Blocks currently under lease; and the following unleased blocks or 
partial blocks:
    Main Pass Area, South and East Addition, Blocks 253 and 254; and 
Viosca Knoll Blocks 213 and 256 (which are currently under appeal); and 
the following blocks which are beyond the United States Exclusive 
Economic Zone and have been temporarily deferred from leasing by the 
Department of the Interior due to ongoing negotiations with the 
Government of Mexico:

Area NG 15-9

Blocks
133 through 135
177 through 184
221 through 238
265 through 281
309 through 320
358

Area NG 16-7

Blocks
172, 173
213 through 217
252 through 261
296 through 305
349

Leasing Terms and Conditions

    Primary lease terms, minimum bids, annual rental rates, royalty 
rates, and royalty suspension areas are shown on the map ``Lease Terms 
and Economic Conditions, Sale 172, Final'' for leases resulting from 
this sale:
    Primary lease terms: 5 years for blocks in water depths of less 
than 400 meters; 8 years for blocks in water depths of 400 to 799 
meters; and 10 years for blocks in waters depths of 800 meters or 
deeper;
    Minimum bids: $25 per acre or fraction thereof for blocks in water 
depths of less than 800 meters and $37.50 per acre or fraction thereof 
for blocks in water depths of 800 meters or deeper (the minimum bid for 
each available block has been calculated and is shown in the document 
``Blocks Available for Leasing in Gulf of Mexico OCS Oil and Gas Lease 
Sale 172'' included in the Sale Notice Package);
    Annual rental rates: $5 per acre or fraction thereof for blocks in 
water depths of less than 200 meters and $7.50 per acre or fraction 
thereof for blocks in water depths of 200 meters or deeper, until 
initial production is obtained;
    Royalty rates: 16\2/3\% royalty rate for blocks in water depths of 
less than 400 meters and a 12\1/2\% royalty rate for blocks in waters 
depths of 400 meters or deeper, except during periods of royalty 
suspension;
    Royalty Suspension Areas: Royalty suspension may apply for blocks 
in water depths of 200 meters or deeper; see the map for specific 
areas. See 30 CFR 203 for the final rule specifying royalty suspension 
terms.
    The map titled ``Stipulations and Deferred Blocks, Sale 172, 
Final'' depicts the blocks where the Topographic Features, Live 
Bottoms, Military Areas, and Blocks South of Baldwin County, Alabama, 
stipulations apply. The texts of the lease stipulations

[[Page 7487]]

are contained in the document ``Lease Stipulations for Oil and Gas 
Lease Sale 172, Final'' included in the Final Sale Notice Package. Also 
shown on this map are the deferred blocks noted above.

Rounding

    The following procedure must be used to calculate minimum bid, 
rental, and minimum royalty on blocks with fractional acreage: Round up 
to the next whole acre and multiply by the applicable dollar amount to 
determine the correct minimum bid, rental, or minimum royalty.

    Note: For the minimum bid only, if the calculation results in a 
decimal figure, round up to the next whole dollar amount (see next 
paragraph). The minimum bid calculation, including all rounding, is 
shown in the document ``Blocks Available for Leasing in Gulf of 
Mexico OCS Oil and Gas Lease Sale 172'' included in the Sale Notice 
Package.

Method of Bidding

    For each block bid upon, a bidder must submit a separate signed bid 
in a sealed envelope labeled ``Sealed Bid for Oil and Gas Lease Sale 
172, not to be opened until 9 a.m., Wednesday, March 17, 1999.'' The 
total amount bid must be in a whole dollar amount; any cent amount 
above the whole dollar will be ignored by the MMS. Details of the 
information required on the bid(s) and the bid envelope(s) are 
specified in the document ``Bid Form and Envelope'' contained in the 
Sale Notice Package. The MMS published a list of restricted joint 
bidders, which applies to this sale, in the Federal Register at 63 FR 
53097, on October 2, 1998. Bidders must execute all documents in 
conformance with signatory authorizations on file in the MMS Gulf of 
Mexico Regional Office. Partnerships also must 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. The MMS may require bidders to 
submit other documents in accordance with 30 CFR 256.46. The MMS warns 
bidders against violation of 18 U.S.C. 1860 prohibiting unlawful 
combination or intimidation of bidders. Bidders are advised that the 
MMS considers the signed bid to be a legally binding obligation on the 
part of the bidder(s) to comply with all applicable regulations, 
including paying the \1/5\th bonus on all high bids. A statement to 
this effect must be included on each bid (see the document ``Bid Form 
and Envelope'' contained in the Sale Notice Package).

Bid Deposit

    Bidders will have the option of submitting the \1/5\th cash bonus 
by cashier's check, bank draft, or certified check with the bid, or by 
using electronic funds transfer (EFT) procedures. Detailed instructions 
for submitting the \1/5\th bonus payment by EFT are contained in the 
document ``Instructions for Making EFT \1/5\th Bonus Payments'' 
included in the Sale Notice Package. Any payments will 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.

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.

Acceptance, Rejection, or Return of Bids

    The United States reserves the right to reject any and all bids. In 
any case, no bid will be accepted, and no lease for any block will be 
awarded to any bidder, unless the bidder has complied with all 
requirements of this Notice, including the documents contained in the 
associated Sale Notice Package and applicable regulations; the bid is 
the highest valid bid; and the amount of the bid has been determined to 
be adequate by the authorized officer. Any bid submitted which does not 
conform to the requirements of this Notice, the OCS Lands Act, as 
amended, and other applicable regulations may be returned to the person 
submitting that bid by the RD and not considered for acceptance. To 
ensure that the Government receives a fair return for the conveyance of 
lease rights for this sale, high bids will be evaluated in accordance 
with MMS bid adequacy procedures. A copy of the current procedures 
(``Summary of Procedures for Determining Bid Adequacy at Offshore Oil 
and Gas Lease Sales: Effective March 1999, with Sale 172'') is 
available from the MMS Gulf of Mexico Regional Office Public 
Information Unit.

Successful Bidders

    The MMS will require each person who has submitted a bid accepted 
by the authorized officer to execute copies of the lease (Form MMS-2005 
(March 1986) as amended), pay the balance of the cash bonus bid along 
with the first year's annual rental for each lease issued by EFT in 
accordance with the requirements of 30 CFR 218.155, and satisfy the 
bonding requirements of 30 CFR 256, Subpart I, as amended. Each person 
involved as a bidder in a successful high bid must have on file, in the 
MMS Gulf of Mexico Regional Office Adjudication Unit, a currently valid 
certification that the person is not excluded from participation in 
primary covered transactions under Federal nonprocurement programs and 
activities. A certification previously provided to that office remains 
currently valid until new or revised information applicable to that 
certification becomes available. In the event of new or revised 
applicable information, the MMS will require a subsequent certification 
before lease issuance can occur. Persons submitting such certifications 
should review the requirements of 43 CFR, Part 12, Subpart D. A copy of 
the certification form is contained in the Sale Notice Package.

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 MMS Gulf of 
Mexico Regional Office prior to lease award.

Information to Lessees

    The Sale Notice Package contains a document titled ``Information to 
Lessees.'' These Information to Lessees items provide information on 
various matters of interest to potential bidders.
Cynthia Quarterman,
Director, Minerals Management Service.
    Approved: February 10, 1999.

Sylvia V. Baca,
Acting Assistant Secretary, Land and Minerals Management.
[FR Doc. 99-3729 Filed 2-11-99; 9:48 am]
BILLING CODE 4310-MR-P