[Federal Register Volume 67, Number 138 (Thursday, July 18, 2002)]
[Notices]
[Pages 47394-47396]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-18056]


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DEPARTMENT OF THE INTERIOR

Minerals Management Service


Outer Continental Shelf, Western Gulf of Mexico, Oil and Gas 
Lease Sale 184

AGENCY: Minerals Management Service (MMS), Interior.

ACTION: Final Notice of Sale 184.

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SUMMARY: On August 21, 2002, MMS will open and publicly announce bids 
received for blocks offered in Sale 184, 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).
    The Final Notice of Sale 184 Package contains information essential 
to bidders, and bidders are charged with the knowledge of the documents 
contained in the Package.

DATES: Public bid reading will begin at 9 a.m., Wednesday, August 21, 
2002, 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, unless otherwise specified.

ADDRESSES: Bidders can obtain a ``Final Notice of Sale 184 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.

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, between 8 a.m. and 4 p.m. on normal working days, 
prior to the Bid Submission Deadline of 10 a.m., Tuesday, August 20, 
2002. If the bids are mailed, please mark on the envelope containing 
all the sealed bids with the following:

Attention: Mr. John Rodi
Contains Sealed Bids for Sale 184

    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 20, 2002. In the event of an unexpected event significantly 
disruptive to bid submission, such as flooding or travel restrictions, 
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 blocks and partial blocks 
listed in the document ``Blocks Available for Leasing in the Gulf of 
Mexico OCS Oil and Gas Lease Sale 184'' included in the Final Notice of 
Sale 184 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 Region's Public Information Unit):
Outer Continental Shelf Leasing Maps--Texas Map Numbers 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 (revised 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 Diagram (These 7 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)

    Please 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 Region's Public 
Information Unit for a price of $15.00. The Leasing Maps and 
Official Protraction Diagrams are also available via the Internet. 
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. In addition, Supplemental Official 
OCS Block Diagrams (SOBDs) for these blocks are available for blocks 
which contain the ``U.S. 200 Nautical Mile Limit'' line and the 
``U.S.-Mexico Maritime Boundary'' line. These SOBDs are also 
available from the MMS Gulf of Mexico Region's Public Information 
Unit and via the Internet. For additional information, please call 
Mr. Charles Hill (504) 736-2795.

    All blocks are 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 184'' included in the Final Notice of Sale 184 Package. 
Some of these blocks may be partially leased or deferred, 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 is also found in the document titled ``Western 
Gulf of Mexico Lease Sale 184--Unleased Split Blocks and Available 
Unleased Acreage of Blocks with Aliquots and Irregular Portions Under 
Lease or Deferred,''

[[Page 47395]]

included in the Final Notice of Sale 184 Package.

Areas Not Available for Leasing

    The following whole and partial blocks are not offered for lease in 
this sale:
     High Island Area Block 170 (an unleased block, but 
currently under appeal);
     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-366, A-383, A-399, and A-401; High Island Area, 
South Addition, Block A-513; and Garden Banks Area Blocks 134 and 135;
     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);
     Whole and partial blocks which lie within the 1.4 nautical 
mile buffer zone north of the continental shelf boundary between the 
United States and Mexico:
    Whole Blocks: Sigsbee Escarpment (Area NG15-08) Blocks 11, 57, 103, 
148, 149, 194, 239, 284, and 331 through 341; and
    Partial Blocks: Keathley Canyon (Area NG15-05) Blocks 978 through 
980; and Sigsbee Escarpment (Area NG15-08) Blocks 12 through 14; 58 
through 60; 104 through 106; 150, 151, 195, 196, 240, 241; 285 through 
298; and 342 through 349.

Lease Terms and Conditions

    Primary lease terms, primary lease term extensions, minimum bids, 
rental rates, royalty rates, minimum royalty, and royalty suspension 
areas are shown on the map ``Lease Terms and Economic Conditions, Sale 
184, 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;
    Primary Lease Term Extensions: Extensions may be granted for 
eligible blocks in water depths less than 400 meters as specified in 
Notice To Lessees and Operators (NTL) 2000-G22, effective December 22, 
2000;
    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;
    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: Royalty suspension, subject to gas price 
thresholds, 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 5 years from lease issuance, and, subject 
to both oil and gas price thresholds, will apply in water depths of 400 
meters or deeper; see the map titled ``Lease Terms and Economic 
Conditions, Sale 184, Final'' for specific areas and the document 
contained within the Final Notice of Sale 184 Package titled ``Royalty 
Suspension Provisions, Sale 184'' for the specific details regarding 
royalty suspension eligibility, applicable price thresholds, and 
implementation.

Stipulations

    The map titled ``Stipulations and Deferred Blocks, Sale 184, 
Final'' depicts the blocks where five lease stipulations apply: 1. 
Topographic Features; 2. Military Areas; 3. Operations in the Naval 
Mine Warfare Area; 4. Law of the Sea Convention Royalty Payment; and 5. 
Protected Species. The texts of the stipulations are contained in the 
document ``Lease Stipulations for Oil and Gas Lease Sale 184, Final'' 
included in the Final Notice of Sale 184 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.

    Please 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 in Western Gulf of Mexico OCS Oil and Gas Sale 184'' 
included in the Final Notice of Sale 184 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 
184, not to be opened until 9 a.m., Wednesday, August 21, 2002.'' 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 
Final Notice of Sale 184 Package.
    The MMS published a list of restricted joint bidders, which applies 
to this sale, in the Federal Register at 67 FR 18033 on April 12, 2002. 
Bidders must execute all documents in conformance with signatory 
authorizations on file in the MMS Gulf of Mexico Region's Adjudication 
Unit. 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 Final Notice of Sale 184 Package).

Bid Deposit

    Submitters of high bids must deposit the \1/5\th bonus by using 
electronic funds transfer procedures, following the detailed 
instructions contained in the document ``Instructions for Making EFT 
Bonus Payments'' included in the Final Notice of Sale 184 Package. All

[[Page 47396]]

payments must be electronically deposited into an interest-bearing 
account in the U.S. Treasury (account specified in the EFT 
instructions) by 2 p.m. Eastern Time the day following bid reading. 
Such a deposit does not constitute and shall not be construed as 
acceptance of any bid on behalf of the United States.

    Please 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\th bonus payment (EFT or otherwise)) are 
required to guarantee (secure) their \1/5\th bonus payment prior to 
the submission of bids. For those who must secure the EFT \1/5\th 
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. 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 Final Notice of Sale 184 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. The Attorney 
General may also review the results of the lease sale prior to the 
acceptance of bids and issuance of leases. 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 Region's Public 
Information Unit or via the Internet.

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 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 Region's 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 Final Notice of 
Sale 184 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 Region's Adjudication Unit prior to 
bidding. In any event, these forms are required to be on file in the 
MMS Gulf of Mexico Region's Adjudication Unit prior to execution of any 
lease contract. Bidders must also comply with the requirements of 41 
CFR part 60.

Information to Lessees:

    The Final Notice of Sale 184 Package contains a document titled 
``Information To Lessees.'' These Information To Lessees items provide 
information on various matters of interest to potential bidders.

    Dated: July 3, 2002.
R.M. ``Johnnie'' Burton,
Director, Minerals Management Service.
[FR Doc. 02-18056 Filed 7-17-02; 8:45 am]
BILLING CODE 4310-MR-P