[Federal Register Volume 69, Number 29 (Thursday, February 12, 2004)]
[Notices]
[Pages 7010-7013]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-3028]


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DEPARTMENT OF THE INTERIOR

Minerals Management Service


Outer Continental Shelf (OCS), Central Gulf of Mexico (GOM), Oil 
and Gas Lease Sale 190

AGENCY: Minerals Management Service, Interior.

ACTION: Final Notice of Sale (FNOS) 190.

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SUMMARY: On March 17, 2004, MMS will open and publicly announce bids 
received for blocks offered in Central GOM Oil and Gas Lease Sale 190, 
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 190 Package (FNOS 190 Package) contains 
information essential to bidders, and bidders are charged with the 
knowledge of the documents contained in the package. Bidders should 
note changes between the proposed notice of sale and this final notice 
of sale regarding shallow water deep gas royalty relief provisions. The 
shallow water deep gas royalty relief provisions specified in the new 
final rule at 30 CFR 203.41 through 203.47 apply to leases in water 
depths of less than 200 meters issued as a result of Sale 190.

DATES: Public bid reading will begin at 9 a.m., Wednesday, March 17, 
2004, 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 190 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, March 16, 2004. If bids are mailed, please address the 
envelope containing all of the sealed bids as follows: Attention: 
Supervisor, Sales and Support Unit (MS 5422), Leasing Activities 
Section, MMS Gulf of Mexico Region, 1201 Elmwood Park Boulevard, New 
Orleans, Louisiana 70123-2394; Contains Sealed Bids for Oil and Gas 
Lease Sale 190.
    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, 
March 16, 2004. Should an unexpected event such as flooding or travel 
restrictions be significantly 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 Offered for Leasing: The MMS is offering for leasing all 
blocks and partial blocks listed in the document ``Blocks Available for 
Leasing in Central GOM Oil and Gas Lease Sale 190'' included in the 
FNOS 190 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 public information unit):

[[Page 7011]]

Outer Continental Shelf Leasing Maps--Louisiana Map Numbers 1 Through 
12

    (These 30 maps sell for $2.00 each.)

LA1 West Cameron Area (revised November 1, 2000)
LA1A West Cameron Area, West Addition (revised November 1, 2000)
LA1B West Cameron Area, South Addition (revised November 1, 2000)
LA2 East Cameron Area (revised November 1, 2000)
LA2A East Cameron Area, South Addition (revised November 1, 2000)
LA3 Vermilion Area (revised November 1, 2000)
LA3A South Marsh Island Area (revised November 1, 2000)
LA3B Vermilion Area, South Addition (revised November 1, 2000)
LA3C South Marsh Island Area, South Addition (revised November 1, 
2000)
LA3D South Marsh Island Area, North Addition (revised November 1, 
2000)
LA4 Eugene Island Area (revised November 1, 2000)
LA4A Eugene Island Area, South Addition (revised November 1, 2000)
LA5 Ship Shoal Area (revised November 1, 2000)
LA5A Ship Shoal Area, South Addition (revised November 1, 2000)
LA6 South Timbalier Area (revised November 1, 2000)
LA6A South Timbalier Area, South Addition (revised November 1, 2000)
LA6B South Pelto Area (revised November 1, 2000)
LA6C Bay Marchand Area (revised November 1, 2000)
LA7 Grand Isle Area (revised November 1, 2000)
LA7A Grand Isle Area, South Addition (revised November 1, 2000)
LA8 West Delta Area (revised November 1, 2000)
LA8A West Delta Area, South Addition (revised November 1, 2000)
LA9 South Pass Area (revised November 1, 2000)
LA9A South Pass Area, South and East Addition (revised November 1, 
2000)
LA10 Main Pass Area (revised November 1, 2000)
LA10A Main Pass Area, South and East Addition (revised November 1, 
2000)
LA10B Breton Sound Area (revised November 1, 2000)
LA11 Chandeleur Area (revised November 1, 2000)
LA11A Chandeleur Area, East Addition (revised November 1, 2000)
LA12 Sabine Pass Area (revised November 1, 2000)

Outer Continental Shelf Official Protraction Diagrams

    (These 10 diagrams sell for $2.00 each.)

NG15-03 Green Canyon (revised November 1, 2000)
NG15-06 Walker Ridge (revised November 1, 2000)
NG15-09 Amery Terrace (revised October 25, 2000)
NG16-01 Atwater Valley (revised November 1, 2000)
NG16-04 Lund (revised November 1, 2000)
NG16-07 Lund South (revised November 1, 2000)
NH15-12 Ewing Bank (revised November 1, 2000)
NH16-04 Mobile (revised November 1, 2000)
NH16-07 Viosca Knoll (revised November 1, 2000)
NH16-10 Mississippi Canyon (revised November 1, 2000)

    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. The leasing maps and official protraction 
diagrams are also available via the Internet. The current status of 
all Central GOM leasing maps and official protraction diagrams was 
published in the Federal Register at 66 FR 28002 on May 21, 2001. 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 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 lease sale is shown in the document ``List of Blocks Available 
for Leasing in Lease Sale 190'' included in the FNOS 190 Package. Some 
of these blocks may be partially leased or transected by administrative 
lines such as the Federal/State jurisdictional line. Also, information 
on the unleased portions of such blocks is found in the document 
``Central Gulf of Mexico Lease Sale 190--Unleased Split Blocks and 
Available Unleased Acreage of Blocks with Aliquots and Irregular 
Portions Under Lease or Deferred'' included in the FNOS 190 Package.
    Areas Not Available for Leasing: The following whole and partial 
blocks are not offered for lease in this lease sale:

 Vermilion (Area LA3)

    Blocks: 139 and 140.
     Blocks which are beyond the United States 
Exclusive Economic Zone in the area known as the northern portion of 
the eastern gap:

Lund South (Area NG16-07)

    Blocks: 172 and 173; 213 through 217; 252 through 261; 296 through 
305; 349.
     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:

Amery Terrace (Area NG15-09)

    Whole Blocks: 280 and 281; 318 through 320; 355 through 359.
    Partial Blocks: 235 through 238; 273 through 279; 309 through 317.
    Statutes and Regulations: Each lease issued in this lease 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 the 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, Lease Sale 190, Final'' for leases 
resulting from this lease 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

[[Page 7012]]

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 before March 1, 2009. In addition, subject to both 
oil and gas price thresholds, royalty suspension will apply in water 
depths of 400 meters or deeper; see the map ``Lease Terms and Economic 
Conditions, Lease Sale 190, Final'' for specific areas and the 
``Royalty Suspension Provisions, Lease Sale 190, Final'' document 
contained in the FNOS 190 Package for specific details regarding 
royalty suspension eligibility, applicable price thresholds and 
implementation.
    Lease Stipulations: One or more of eight lease stipulations apply: 
(1) Topographic features; (2) live bottoms; (3) military areas; (4) 
blocks south of Baldwin County, Alabama; (5) law of the sea convention 
royalty payment; (6) protected species; (7) below seabed operations on 
Mississippi Canyon Block 474; and (8) sand dredging operations; 
limitation on use of leased area. Please see the ``Stipulations and 
Deferred Blocks, Lease Sale 190, Final'' map. The texts of the lease 
stipulations are contained in the document ``Lease Stipulations for Oil 
and Gas Lease Sale 190, Final'' included in the FNOS 190 Package.
    Information to Lessees: The FNOS 190 Package contains an 
``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 190, not to be opened until 9 a.m., Wednesday, March 
17, 2004.'' 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 190 Package.
    The MMS published a list of restricted joint bidders, which applies 
to this lease sale, at 68 FR 58705 on October 10, 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, 
stated as a 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 190 Package).
    Rounding: The following procedure must be used to calculate the 
minimum bonus bid, annual rental, and minimum royalty: Round up to the 
next whole dollar amount if the calculation results in a decimal figure 
(see next paragraph).

    Note: The minimum bonus bid calculation, including all rounding, 
is shown in the document ``List of Blocks Available for Leasing in 
Lease Sale 190'' included in the FNOS 190 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 Lease Sale 
190, following the detailed instructions contained in the document 
``Instructions for Making EFT Bonus Payments'' included in the FNOS 190 
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.

    Note: Certain bid submitters (i.e., those that are NOT currently 
an OCS mineral lease record title holder or designated operator 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 of 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 lease 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 190 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 Act, 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 lease sale, high bids will be evaluated in 
accordance with MMS bid adequacy procedures. A copy of current 
procedures, ``Modifications to the Bid Adequacy Procedures'' at 64 FR 
37560 on 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 part 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

[[Page 7013]]

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 190 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 MMS Gulf of Mexico region adjudication 
unit. This certification is required by 41 CFR part 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. Every bidder submitting a bid on a 
block in Sale 190, 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 control such 
depth data and information.
    Every 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 190'' 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, March 16, 2004. 
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 190 and will be kept confidential. An 
example of preferred format for the geophysical data and information 
statement is included in the FNOS 190 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: February 5, 2004.
R.M. ``Johnnie'' Burton,
Director, Minerals Management Service.
[FR Doc. 04-3028 Filed 2-11-04; 8:45 am]
BILLING CODE 4310-MR-P