[Federal Register Volume 66, Number 141 (Monday, July 23, 2001)]
[Notices]
[Pages 38319-38321]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-18398]



[[Page 38319]]

-----------------------------------------------------------------------

DEPARTMENT OF THE INTERIOR

Minerals Management Service


Outer Continental Shelf, Western Gulf of Mexico, Oil and Gas 
Lease Sale 180

AGENCY: Minerals Management Service, Interior.

ACTION: Final notice of sale 180.

-----------------------------------------------------------------------

SUMMARY: On August 22, 2001, the Minerals Management Service will open 
and publicly announce bids received for blocks offered in Sale 180, 
Western Gulf of Mexico, pursuant to the Outer Continental Shelf 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 180 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 180 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 22, 2001, in 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, MMS Gulf of Mexico Region, 1201 Elmwood Park Boulevard, New 
Orleans, Louisiana 70123-2394, between 8 a.m. and 4 p.m., prior to the 
Bid Submission Deadline at 10 a.m., Tuesday, August 21, 2001. 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 180

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 21, 2001. 
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) 736-0557 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 180'' 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. 
These 16 maps sell for $2.00 each:

TX1  South Padre Island Area (revised November 1, 2000)
TX1A  South Padre Island Area, East Addition (revised November 1, 2000)
TX2  North Padre Island Area (revised November 1, 2000)
TX2A  North Padre Island Area, East Addition (revised November 1, 2000)
TX3  Mustang Island Area (revised November 1, 2000)
TX3A  Mustang Island Area, East Addition (revised November 1, 2000)
TX4  Matagorda Island Area (revised November 1, 2000)
TX5  Brazos Area (revised November 1, 2000)
TX5B  Brazos Area, South Addition (November 1, 2000)
TX6  Galveston Area (revised November 1, 2000)
TX6A  Galveston Area, South Addition (revised November 1, 2000)
TX7  High Island Area (revised November 1, 2000)
TX7A  High Island Area, East Addition (revised November 1, 2000)
TX7B  High Island Area, South Addition (revised November 1, 2000)
TX7C  High Island Area, East Addition, South Extension (revised
November 1, 2000)
TX8  Sabine Pass Area (revised November 1, 2000)

    Outer Continental Shelf Official Protraction Diagrams. These 
diagrams sell for $2.00 each:

NG14-03  Corpus Christi (revised November 1, 2000)
NG14-06  Port Isabel (revised November 1, 2000)
NG15-01  East Breaks (revised November 1, 2000)
NG15-02  Garden Banks (revised November 1, 2000)
NG15-04  Alaminos Canyon (revised November 1, 2000)
NG15-05  Keathley Canyon (revised November 1, 2000)
NG15-08  Sigsbee Escarpment (revised November 1, 2000)


    Note: A CD-ROM (in ARC/INFO and Acrobat (.pdf) formats) 
containing all of the Gulf of Mexico Leasing Maps and Official 
Protraction Diagrams, except for those not yet revised to digital 
format, is available from the MMS Gulf of Mexico Regional Office 
Public Information Unit for a price of $15.00. The Leasing Maps and 
Official Protraction Diagrams are also available on our Internet 
site. See also 66 FR 28002, published on May 21, 2001, for the 
current status of Central and Western Gulf of Mexico Leasing Maps 
and Official Protraction Diagrams.


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 180'' 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 180--Unleased Split Blocks 
and Available Unleased Acreage of Blocks with Aliquots and Irregular 
Portions Under Lease or Deferred,'' 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 block:
    High Island Area Block 170 (which is 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, Blocks A-367 and 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

[[Page 38320]]

the Navy as needed for testing equipment and training mine warfare 
personnel).
    Blocks or portions of blocks beyond the United States Exclusive 
Economic Zone (in the area formerly known as the Western Gap) which are 
in the 1.4 nautical mile buffer zone north of the continental shelf 
boundary between the United States and Mexico. Both the zone, in which 
leasing is prohibited for ten years, and the boundary were established 
by the ``Treaty Between The Government Of The United States Of America 
And The Government Of The United Mexican States On The Delimitation Of 
The Continental Shelf In The Western Gulf Of Mexico Beyond 200 Nautical 
Miles'' signed by the United States and Mexico on June 9, 2000; the 
U.S. Senate gave advice and consent to ratification on October 18, 
2000, and the Mexican Senate gave its approval on November 28, 2000. 
The provisions of the treaty entered into force upon exchange of the 
instruments of ratification of the treaty on January 17, 2001.
    The following blocks lie wholly within the 1.4 nautical mile buffer 
zone and are deferred from this sale:

Sigsbee Escarpment (Area NG15-08)
Blocks
11, 57, 103, 148, 149, 194, 239, 284
    331 through 341

    The portions of the following blocks lying within the 1.4 nautical 
mile buffer zone are deferred from this sale:

Keathley Canyon (Area NG15-05)
Blocks
    978 through 980
Sigsbee Escarpment (Area NG15-08)
Blocks
    12 through 14
    58 through 60
    104 through 106
    150, 151, 195, 196, 240, 241
    285 through 298
    342 through 349

    The available acreage in these blocks with deferred portions lying 
within the 1.4 nautical mile buffer are provided in the ``Unleased 
Split Blocks and Available Unleased Acreage of Blocks with Aliquots and 
Irregular Portions Under Lease or Deferred'' document included in the 
Final Sale Notice Package. Also, Supplemental Official OCS Block 
Diagrams for these blocks are available from the Public Information 
Unit, Gulf of Mexico Region, Minerals Management Service, 1201 Elmwood 
Park Boulevard, New Orleans, Louisiana 70123-2394. Telephone: (504) 
736-2519. The SOBDs are also available for blocks which contain the 
``U.S. 200 Nautical Mile Limit'' line and the ``U.S.-Mexico Maritime 
Boundary'' line. These diagrams can also be found on the MMS Homepage 
Address on the Internet: http://www.mms.gov. For additional 
information, please call Mr. Charles Hill (504) 736-2795.
    Leasing Terms and Conditions: Primary lease terms, minimum bids, 
annual rental rates, royalty rates, minimum royalty, and royalty 
suspension areas are shown on the map ``Lease Terms and Economic 
Conditions, Sale 180, 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, to be paid 
on or before the first day of each lease year until a discovery in 
paying quantities of oil or gas is made, then at the expiration of each 
lease year until the start of royalty-bearing production;
    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 water depths of 400 meters or deeper, except during periods 
of royalty suspension, to be paid monthly on the last day of the month 
next following the month in which the production is obtained;
    Minimum royalty: After the start of royalty-bearing production: $5 
per acre or fraction thereof per year for blocks in water depths of 
less than 200 meters and $7.50 per acre or fraction thereof per year 
for blocks in water depths of 200 meters or deeper, to be paid at the 
expiration of each lease year;
    Royalty Suspension Areas: Leases are being offered in this sale 
subject to the regulations in 30 CFR Part 260, published in the Federal 
Register at 66 FR 11512 on February 23, 2001. Royalty suspension will 
apply for blocks in water depths less than 200 meters where new deep 
gas (15,000 feet or greater subsea) is drilled and commences production 
within the initial primary 5-year lease term, and in water depths of 
800 meters or deeper (for oil and gas); see the map titled ``Lease 
Terms and Economic Conditions, Sale 180, Final'' for specific areas. 
See the document contained within the Sale 180, Final Notice Package 
titled ``RoyaltySuspension Provisions (Sale 180)'' for the specific 
details regarding royalty suspension eligibility and implementation. 
For blocks beyond the U.S. EEZ, see Stipulation 4 in the document 
``Lease Stipulations for Oil and Gas Lease Sale 180'' contained in the 
Sale Notice Package.
    The map titled ``Stipulations and Deferred Blocks, Sale 180, 
Final'' depicts the blocks where the Topographic Features, Military 
Areas, Naval Mine Warfare Area, and Law of the Sea Convention Royalty 
Payment stipulations apply. The texts of the lease stipulations are 
contained in the document ``Lease Stipulations for Oil and Gas Lease 
Sale 180, 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 
180'' 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 180, not to be opened until 9 a.m., Wednesday, 
August 22, 2001.'' 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 66 FR 17731, on April 3, 2001. 
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

[[Page 38321]]

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\ 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: Submitters of high bids must deposit the \1/5\ bonus 
by using electronic funds transfer procedures, following the detailed 
instructions contained in the document ``Instructions for Making EFT 
Bonus Payments'' included in the Sale Notice Package. All payments must 
be electronically deposited into an interest-bearing account in the 
U.S. Treasury (account specified in the EFT instructions) 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: Certain bid submitters (i.e., those that do not currently 
own or operate an OCS mineral lease OR those that have ever 
defaulted on a \1/5\ bonus payment (EFT or otherwise)) are required 
to guarantee (secure) their \1/5\ bonus payment. For those who must 
secure the EFT \1/5\ bonus payment, one of the following options may 
be used: 1. Provide a third-party guaranty; 2. Amend Development 
Bond Coverage; 3. Provide a Letter of Credit; or 4. Provide a lump 
sum payment via EFT prior to the submission of bids. The EFT 
instructions specify the requirements for each option.

    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 of July 12, 1999), is available 
from the MMS Gulf of Mexico Regional Office Public Information Unit and 
is also on our Internet site.
    Successful Bidders: As required by MMS, each company that has been 
awarded a lease must execute all copies of the lease (Form MMS-2005 
(March 1986) as amended), pay by EFT the balance of the cash bonus bid 
along with the first year's annual rental for each lease issued in 
accordance with the requirements of 30 CFR 218.155, and satisfy the 
bonding requirements of 30 CFR 256, Subpart I, as amended. Each bidder 
in a successful high bid must have on file, in the MMS Gulf of Mexico 
Regional Office Adjudication Unit, a currently valid certification 
(Debarment Certification Form) certifying that the bidder 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 Debarment Certification 
Form is contained in the Sale Notice Package.
    Affirmative Action: The MMS requests that 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) be on file in the MMS Gulf of Mexico Regional Office Adjudication 
Unit prior to bidding. In any event, these forms are required to be on 
file in the MMS Gulf of Mexico Regional Office Adjudication Unit prior 
to execution of any lease contract. Bidders must also comply with the 
requirements of 41 CFR 60.
    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.

Thomas R. Kitsos,
Acting Director, Minerals Management Service.
    Dated: July 13, 2001.
Piet deWitt,
Acting Assistant Secretary, Land and Minerals Management.
[FR Doc. 01-18398 Filed 7-20-01; 8:45 am]
BILLING CODE 4310-MR-P