[Federal Register Volume 64, Number 136 (Friday, July 16, 1999)]
[Notices]
[Pages 38468-38470]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-18155]
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DEPARTMENT OF THE INTERIOR
Minerals Management Service
Outer Continental Shelf, Western Gulf of Mexico, Oil and Gas
Lease Sale 174
AGENCY: Minerals Management Service, Interior.
ACTION: Final Notice of Sale 174.
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On August 25, 1999, the Minerals Management Service (MMS) will open
and publicly announce bids received for blocks offered in Sale 174,
Western 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 174 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 174 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, August 25,
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, August 24,
1999. If the bids are mailed, mark on the envelope containing all the
sealed bids the following:
Attention: Mr. John Rodi
Contains Sealed Bids for Sale 174
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, August 24, 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 ``List of Blocks Available for Leasing, Sale
174'' 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--Texas, Nos. 1 through 8
(latest revisions are dated March 15, 1999). This is a set of 16 maps
which sells for $18.00.
Outer Continental Shelf Official Protraction Diagrams (these
diagrams sell for $2.00 each):
NG 14-3 Corpus Christi (rev. 01/27/76)
NG 14-6 Port Isabel (rev. 09/09/98)
NG 15-1 East Breaks (rev. 01/27/76)
NG 15-2 Garden Banks (rev. 03/15/99)
NG 15-4 Alaminos Canyon (rev. 04/27/89)
NG 15-5 Keathley Canyon (rev. 09/09/98)
NG 15-8 (No Name) (rev. 04/27/89)
Acreage of all blocks is shown on these Leasing Maps and Official
Protraction Diagrams. The available Federal acreage of all whole and
partial blocks in this sale is shown in the document ``List of Blocks
Available for Leasing, Sale 174'' 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, or
partially included in the Flower Garden Banks National Marine Sanctuary
(in accordance with the President's June 1998 withdrawal directive,
portions of blocks lying within National Marine Sanctuaries are no
longer available for leasing). Information on the unleased portions of
such blocks, including the exact acreage, is found in the document
titled ``Western Gulf of Mexico Lease Sale 174--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 Western Gulf of Mexico Planning Area
are not available for leasing:
blocks currently under lease; and
the following unleased blocks or partial
blocks:
High Island Area Block 170, and Galveston Area, South Addition,
Block A-125 (which are currently under appeal); and
High Island Area, East Addition, South Extension, Blocks A-375 and
A-398 (at the Flower Garden Banks), and the portions of other blocks
within the boundary of the Flower Garden Banks National Marine
Sanctuary: portions of High Island Area, East Addition, South
Extension, Block A-401; High Island Area, South Addition, Block A-513;
and Garden Banks Area Block 135; and
Mustang Island Area Blocks 793, 799, and 816 (blocks located off
Corpus Christi which have been identified by the Navy as needed for
testing equipment and training mine warfare personnel; 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:
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Keathley Canyon (area NG 15-05) Area NG 15-08
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Blocks: Blocks:
722 through 724..................... 11 through 34.
764 through 770..................... 56 through 81.
807 through 816..................... 102 through 128.
849 through 861..................... 148 through 173.
892 through 907..................... 194 through 217.
934 through 953..................... 239 through 261.
978 through 999..................... 284 through 305.
336 through 349.
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Leasing Terms and Conditions
Primary lease terms, minimum bids, annual rental rates, royalty
rates, and royalty suspension areas are shown on
[[Page 38469]]
the map ``Lease Terms and Economic Conditions, Sale 174, 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 water 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;
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\percent royalty rate for blocks in water
depths of less than 400 meters and a 12\1/2\ percent 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 174,
Final'' depicts the blocks where the Topographic Features, Military
Areas, and Naval Mine Warfare Area stipulations apply. The texts of the
lease stipulations are contained in the document ``Lease Stipulations
for Oil and Gas Lease Sale 174, Final'' included in the 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 ``List of Blocks Available for Leasing, Sale
174'' 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
174, not to be opened until 9 a.m., Wednesday, August 25, 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 64 FR 14751, on March 26, 1999
(revised at 64 FR 19193 on April 19, 1999). 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\ 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\ bonus payment by EFT are contained in the
document ``Instructions for Making EFT \1/5\ 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.
Note: Bidders submitting the \1/5\ bonus payment by cashier's
check, bank draft, or certified check with their bid(s) must make
the check payable to the order of the United States Department of
the Interior--Minerals Management Service. For identification
purposes, the following information must appear on the check or
draft: company name, GOM Company Number, and the area and block bid
on (abbreviation acceptable).
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,
``Modifications to the Bid Adequacy Procedures'' (64 FR 37560), 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
[[Page 38470]]
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.
WC Rosenbusch,
Director, Minerals Management Service.
Dated: July 12, 1999.
Sylvia V. Baca,
Assistant Secretary, Land and Minerals Management.
[FR Doc. 99-18155 Filed 7-15-99; 8:45 am]
BILLING CODE 4310-MR-P