[Federal Register Volume 68, Number 137 (Thursday, July 17, 2003)]
[Notices]
[Pages 42421-42424]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-18140]


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

DEPARTMENT OF THE INTERIOR

Minerals Management Service


Outer Continental Shelf (OCS) Western Gulf of Mexico (GOM) Oil 
and Gas Lease Sale 187

AGENCY: Minerals Management Service (MMS), Interior.

ACTION: Final notice of sale 187.

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

SUMMARY: On August 20, 2003, MMS will open and publicly announce bids 
received for blocks offered in Western GOM Oil and Gas Lease Sale 187, 
pursuant to the OCS Lands Act (43 U.S.C. 1331-1356, as amended) and the 
regulations issued thereunder (30 CFR part 256).
    The Final Notice of Sale 187 Package (FNOS 187 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 20, 
2003, in Grand Ballroom C (5th floor) at the Sheraton New Orleans 
Hotel, 500 Canal Street, New Orleans, Louisiana. All times referred to 
in this document are local New Orleans times, unless otherwise 
specified.

ADDRESSES: Bidders can obtain a FNOS 187 Package containing this Notice 
of Sale and several supporting and essential documents referenced 
herein from the MMS Gulf of Mexico Region Public Information Unit, 1201 
Elmwood Park Boulevard, New Orleans, Louisiana 70123-2394, (504) 736-
2519 or (800) 200-GULF.
    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, and from 8 a.m. to the Bid Submission Deadline of 10 a.m. 
on Tuesday, August 19, 2003. If bids are mailed, please address the 
envelop containing all of the sealed bids as follows:

Attention: Mr. John L. Rodi, MMS Gulf of Mexico Region, Contains Sealed 
Bids for Sale 187.

    If the RD receives bids later than the time and date specified 
above, he will return those 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. on Tuesday, 
August 19, 2003. Should an unexpected event such as flooding or travel 
restrictions be sisgnificantly disruptive to bid submission, the MMS 
Gulf of Mexico Region 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 Offererd for Leasing: The MMS is offering for leasing all 
blocks and partial blocks listed in the document ``Blocks Available for 
Leasing in Western GOM Oil and Gas Lease Sale 187'' included in thee 
FNOS 187 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 Publicc 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 September 3, 2002)
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 Diagrams

(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) format) 
containing all of the GOM Leasing Maps and Official Protraction 
Diagrams, except for those not yet converted to digital format, is 
available from the MMS Gulf of Mexico Region Public Information Unit 
for a price of $15.00. For the current status of all Western GOM 
Leasing Maps and Official Protraction Diagrams, please refer to 66 
FR 28002 (published May 21, 2001) and 67 FR 60701 (published 
September 26, 2002). 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 Public Information Unit. For

[[Page 42422]]

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 in Sale 187'' included in the FNOS 187 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 ``Western Gulf of Mexico 
Lease Sale 187--Unleased Split Blocks and Available Unleased Acreage of 
Blocks with Aliquots and Irregular Portions Under Lease or Deferred,'' 
included in the FNOS 187 Package.
    Areas Not Available for Leasing: The following whole and partial 
blocks are not offered for lease in this sale:
    Currently unleased whole blocks and portions of blocks which lie 
within the boundaries of the Flower Garden Banks National Marine 
Sanctuary at the East and West Flower Garden Banks and Stetson Bank 
(the following list includes all blocks affected by the Sanctuary 
boundaries):

High Island, East Addition, South Extension (Area TX7C)

    Whole Blocks: A-375, A-398.
    Portions of Blocks: A-366, A-367, A-374, A-383, A-384, A-385, A-
388, A-389, A-397, A-399, A-401.

High Island, South Addition (Area TX7B)

    Portions of Blocks: A-502, A-513.

Garden Banks (Area NG15-02)

    Portions of Blocks: 134, 135.
    Blocks located off Corpus Christi which have been identified by the 
Navy as needed for testing equipment and training mine warfare 
personnel:

Mustang Island (Area TX3)

    Whole Blocks: 793, 799, 816.
    Whole blocks and portions of blocks which lie within the 1.4 
nautical mile buffer zone north of the continental shelf boundary 
between the United States and Mexico:

Keathley Canyon (Area NG15-05)

    Portions of Blocks: 978 through 980.

Sigsbee Escarpment (Area NG15-08)

    Whole Blocks: 11, 57, 103, 148, 149, 194, 239, 284, 331 through 
341.
    Portions of Blocks: 12 through 14, 58 through 60, 104 through 106, 
150, 151, 195, 196, 240, 241, 285 through 298, 342 through 349.
    Whole blocks and portions of blocks deferred from this sale are 
shown on the map ``Stipulations and Deferred Blocks, Sale 187, Final.''
    Statutes and Regulations: Each lease issued in this sale is subject 
to the OCS Lands Act of August 7, 1953, 67 Stat. 462; 43 U.S.C. 1331 et 
seq., as amended (92 Stat. 629), hereinafter called ``the Act''; all 
regulations issued pursuant to the Act and in existence upon the 
Effective Date of this lease; all regulations issued pursuant to the 
statute in the future which provide for the prevention of waste and 
conservation of the natural resources of the OCS and the protection of 
correlative rights therein; and all other applicable statutes and 
regulations.
    Lease Terms and Conditions: Initial period, extensions of initial 
period, minimum bonus bid amount, rental rates, royalty rates, minimum 
royalty, and royalty suspension areas are shown on the map ``Lease 
Terms and Economic Conditions, Sale 187, Final'' for leases resulting 
from this sale:
    Initial Period: 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;
    Extensions of Initial Period: Extensions may be granted for 
eligible leases on blocks in water depths less than 400 meters as 
specified in Notice To Lessees and Operators 2000-G22, effective 
December 22, 2000;
    Minimum Bonus Bid Amount: A bonus bid amount of $25 per acre or 
fraction thereof for blocks in water depths of less than 800 meters and 
a bonus bid amount of $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, 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 during 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 with credit applied for actual royalty 
paid during the lease year. If actual royalty paid exceeds the minimum 
royalty requirement, then no minimum royalty payment is due;
    Royalty Suspension Areas: Royalty suspension, subject to gas price 
thresholds, will apply to 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 ``Lease Terms and Economic Conditions, 
Sale 187, Final'' for specific areas and the ``Royalty Suspension 
provisions, Sale 187, Final'' document contained in the FNOS 187 
Package for specific details regarding royalty suspension eligibility, 
applicable price thresholds and implementation.
    Stipulations: The map ``Stipulations and Deferred Blocks, Sale 187, 
Final'' depicts the blocks on which one or more of 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 187, Final'' included in the FNOS 187 Package.
    Information to Lessees: The FNOS 187 package contains and 
``Information To Lessees'' document which provides detailed information 
on certain specific issues pertaining to this oil and gas lease sale.
    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 187, not to be opened until 9 a.m., Wednesday, 
August 20, 2003.'' The total amount of the 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 FNOS 187 Package.
    The MMS published a list of restricted joint bidders, which applies 
to

[[Page 42423]]

this sale, in the Federal Register at 68 FR 81 on April 28, 2003. 
Bidders must execute all documents in conformance with signatory 
authorizations on file in the MMS Gulf of Mexico Region Adjudication 
Unit. Partnerships also must submit or have on file a list of 
signatories authorized to bind the partnership. Bidders submitting 
joint bids must include on the bid form the proportionate interest of 
each participating bidder, in percentage using 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 payment of the one-fifth bonus bid amount 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 FNOS 187 Package).
    Rounding: The following procedure must be used to calculate the 
minimum bonus bid, annual rental, and minimum royalty on blocks with 
fractional acreage: Round up to the next whole acre and multiply by the 
applicable dollar amount per acre to determine the correct minimum 
bonus bid, annual rental, or minimum royalty.

    Please Note: For the minimum bonus bid only, if the calculation 
results in a decimal figure, round up to the next whole dollar 
amount (see next paragraph). The minimum bonus bid calculation, 
including all rounding, is shown in the document ``List of Blocks 
Available for Leasing in Sale 187'' including in the FNOS 187 
Package.

    Bonus Bid Deposit: Each bidder submitting an apparent high bid must 
submit a bonus bid deposit to the MMS equal to one-fifth of the bonus 
bid amount for each such bid. Under the authority granted by 30 CFR 
256.46(b), the MMS requires bidders to use electronic funds transfer 
procedures for payment of one-fifth bonus bid deposits for Sale 187, 
following the detailed instructions contained in the document 
``Instructions for Making EFT Bonus Payments'' included in the FNOS 187 
Package. All payments must be electronically deposited into an 
interest-bearing account in the U.S. Treasury (account specified in the 
EFT instructions) by 1 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. If a lease is 
awarded, however, MMS requests that only one transaction be used for 
payment of the four-fifths bonus bid amount and the first year's 
rental.

    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 one-fifth bonus bid payment (EFT or otherwise)) 
are required to guarantee (secure) their one-fifth bonus bid payment 
prior to the submission of bids. For those who must secure the EFT 
one-fifth bonus bid payment, one of the following options may be 
used: (1) Provide a third-party guarantee; (2) Amend Development 
Bond Coverage; (3) Provide a Letter or Credit; or (4) Provide a lump 
sum payment in advance 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 FNOS 187 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 MSS bid adequacy procedures. A copy of the 
current procedures, ``Modifications to the Bid Adequacy Procedures'' 
(64 FR 37560 of July 12, 1999), can be obtained from the MMS Gulf of 
Mexico Region Public Information Unit via the Internet.
    Successful Bidders: As required by the 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 bonus bid 
amount and 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 
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 FNOS 187 Package.
    Affirmative Action: The MMS requests that, prior to bidding, Equal 
Opportunity Affirmative Action Representation Form MMS 2032 (June 1985) 
and Equal Opportunity Compliance Report Certification Form MMS 2033 
(June 1985) be on file in the Gulf of Mexico Region Adjudication Unit. 
This certification is required by 41 CFR 60 and Executive Order No. 
11246 of September 24, 1965, as amended by Executive Order No. 11375 of 
October 13, 1967. In any event, prior to the execution of any lease 
contract, both forms are required to be on file in the MMS Gulf of 
Mexico Region Adjudication Unit.
    Geophysical Data and Information Statement: Pursuant to 30 CFR 
251.12, the MMS has a right to access geophysical data and information 
collected under a permit in the OCS. Each bidder submitting a bid on a 
block in Sale 187, or participating as a joint bidder in such a bid, 
must submit a Geophysical Data and Information Statement identifying 
any processed or reprocessed pre- and post-stack depth migrated 
geophysical data and information in its possession or control and used 
in the evaluation of that block. The existence, extent (i.e., number of 
line miles for 2D or number of blocks for 3D) and type of such data and 
information must be clearly identified. The statement must include the 
name and phone number of a contact person, and an alternate, 
knowledgeable about the depth data sets (that were processed or 
reprocessed to correct for depth) used in evaluating the block. In the 
event such data and information includes data sets from different 
timeframes, you should identify only the most recent data set used for 
block evaluations. The statement must also identify each block upon 
which a bidder participated in a bid but for which it does not possess 
or

[[Page 42424]]

control such depth data and information.
    Each bidder must submit a separate Geophysical Data and Information 
Statement in a sealed envelope. The envelope should be labeled 
``Geophysical Data and Information Statement for Oil and Gas Lease Sale 
187'' and the bidder's name and qualification number must be clearly 
identified on the outside of the envelope. This statement must be 
submitted to the MMS at the Gulf of Mexico Regional Office, Attention: 
Resource Evaluation (1201 Elmwood Park Boulevard, New Orleans, 
Louisiana 70123-2394) by 10 a.m. on Tuesday, August 19, 2003. The 
statement may be submitted in conjunction with the bids or separately. 
Do not include this statement in the same envelope containing a bid. 
These statements will not be opened until after the public bid reading 
at Lease Sale 187 and will be kept confidential. An Example of 
Preferred Format for the Geophysical Data and Information Statement is 
included in the FNOS 187 Package.
    Please refer to NTL No. 2003-G05 for more detail concerning 
submission of the Geophysical Data and Information Statement, making 
the data available to the MMS following the lease sale, preferred 
format, reimbursement for costs, and confidentiality.

    Dated: July 2, 2003.
R.M. ``Johnnie'' Burton,
Director, Minerals Management Service.
[FR Doc. 03-18140 Filed 7-16-03; 8:45 am]
BILLING CODE 4310-MR-M