[Federal Register Volume 70, Number 28 (Friday, February 11, 2005)]
[Notices]
[Pages 7303-7306]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-2771]


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DEPARTMENT OF THE INTERIOR

Minerals Management Service


Outer Continental Shelf (OCS) Eastern Gulf of Mexico (GOM) Oil 
and Gas Lease Sale 197

AGENCY: Minerals Management Service, Interior.

ACTION: Final notice of sale (FNOS) 197.

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SUMMARY: On March 16, 2005, the MMS will open and publicly announce 
bids received for blocks offered in Eastern GOM Oil and Gas Lease Sale 
197, 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 197 Package (FNOS 197 Package) contains information 
essential to bidders, and bidders are charged with the knowledge of the 
documents contained in the Package.

DATES: Public bid reading for Eastern GOM Oil and Gas Lease Sale 197 
will begin after the public bid reading for Central GOM Oil and Gas 
Lease Sale 194 which will begin at 9 a.m., Wednesday, March 16, 2005, 
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 times, unless otherwise specified.

ADDRESSES: Bidders can obtain a FNOS 197 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, or via the MMS Internet Web site at http://
www.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, and from 8 a.m. to the Bid Submission Deadline of 10 a.m. 
on Tuesday, March 15, 2005. If the 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 197, Please Deliver 
to Ms. Jane Burrell Johnson, Room 311, Immediately.

    Please note: Bidders mailing their bid(s) are advised to call 
Ms. Jane Burrell Johnson

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(504) 736-2811 immediately after putting their bid(s) in the mail.

    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 15, 2005. 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 of 
the unleased whole blocks located within the portion of the Eastern GOM 
Planning Area that is west of 87 degrees 30 minutes West Longitude and 
which range from 100 to 196 miles south of Alabama, and from about 70 
to 148 miles offshore Louisiana. Please see the map included in the 
FNOS 197 Package: ``Lease Terms, Economic Conditions, and Stipulations, 
Sale 197, Final.'' All of these blocks are shown on the following 
Official Protraction Diagrams (which may be purchased from the MMS Gulf 
of Mexico Region Public Information Unit):

  Outer Continental Shelf Official Protraction Diagrams (These diagrams
                         sell for $2.00 each.)
NG16-02                      Lloyd Ridge (revised November 1, 2000).
NH16-11                      De Soto Canyon (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. For additional information, please call Ms. Tara 
Montgomery (504) 736-5722.

    All blocks are shown on these two Official Protraction Diagrams. 
The available Federal acreage of all blocks in this lease sale is shown 
in the document ``List of Blocks Available for Leasing in Sale 197'' 
included in the FNOS 197 Package. A bid on a block must include all of 
the available Federal acreage of that block.
    Areas Not Available for Leasing: The following whole blocks located 
within the sale area are currently leased and are therefore not 
available for bid in this lease sale:
    De Soto Canyon Blocks 133, 134, 135, 136, 137, 177, 178, 179, 180, 
181, 182, 223, 224, 225, 226, 267, 268, 269, 270, 309, 311, 313, 314, 
353, 354, 397, 398, 401, 402, 443, 445, 446, 447, 485, 486, 487, 488, 
489, 490, 491, 529, 530, 534, 535, 573, 574, 576, 577, 578, 617, 618, 
619, 620, 621, 622, 623, 624, 662, 663, 664, 665, 666, 668, 706, 707, 
709, 710, 751, 793, 794, 796, 798, 837, 838, 840, 842, 843, 883, 887, 
927, 929, 932, 970, 971, 972, 975, 976.
    Lloyd Ridge Blocks 1, 2, 5, 6, 7, 45, 46, 47, 48, 49, 50, 51, 52, 
91, 94, 95, 96, 133, 134, 135, 136, 137, 139, 140, 177, 183, 221, 265, 
267, 268, 309, 315, 316, 354, 355, 359, 360, 399, 400, 401, 402, 443, 
444, 445, 446.
    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, minimum bonus bid 
amount, rental rates, royalty rates, minimum royalty, and royalty 
suspension area are shown on the map ``Lease Terms, Economic 
Conditions, and Stipulations, Lease Sale 197, Final'' for leases 
resulting from this lease sale:
    Initial Period: 10 years;
    Minimum Bonus Bid Amount: A bonus bid will not be considered for 
acceptance unless it provides for a cash bonus in the amount of $37.50 
or more per acre or fraction thereof; see ``List of Blocks Available 
for Leasing'' contained in the FNOS 197 Package to confirm the exact 
calculation of the minimum bonus bid amount for each block;
    Rental Rates: $7.50 per acre or fraction thereof, 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: 12 \1/2\ percent royalty rate, 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: 
$7.50 per acre or fraction thereof per year, 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 Area: Royalty suspension of 12 million barrels 
of oil equivalent, subject to both oil and gas price thresholds, will 
apply to all leases in this lease sale. Please see the map ``Lease 
Terms, Economic Conditions, and Stipulations, Lease Sale 197, Final'' 
for specific details regarding royalty suspension eligibility, 
applicable price thresholds, and implementation.
    Lease Stipulations: Four lease stipulations apply: (1) Military 
Areas; (2) Evacuation; (3) Coordination; and (4) Protected Species. 
Please refer to the map, ``Lease Terms, Economic Conditions, and 
Stipulations, Lease Sale 197, Final'' in the FNOS 197 Package. The 
texts of the lease stipulations are contained in the document ``Lease 
Stipulations for Oil and Gas Lease Sale 197, Final'' included in the 
FNOS 197 Package.
    Information To Lessees: The FNOS 197 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 197, not to be opened until 9 a.m., Wednesday, March 
16, 2005.'' 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 197 Package.
    The MMS published in the Federal Register a list of restricted 
joint bidders, which applies to this lease sale, at 69 FR 61402 on 
October 18, 2004. 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.

[[Page 7305]]

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 197 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).

    Please note: The minimum bonus bid calculation, including all 
rounding, is shown in the document ``List of Blocks Available for 
Leasing in Lease Sale 197'' included in the FNOS 197 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 
197, following the detailed instructions contained in the document 
``Instructions for Making EFT Bonus Payments'' included in the FNOS 197 
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 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 197 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 Act, and other applicable regulations may be 
returned to the person submitting that bid by the RD and not considered 
for acceptance. The Attorney General may also review the results of the 
lease sale prior to the acceptance of bids and issuance of leases. 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.
    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.
    Also, in accordance with regulations at 43 CFR, part 42, subpart C, 
the lessee shall comply with the U.S. Department of the Interior's 
nonprocurement debarment and suspension requirements and agrees to 
communicate this requirement to comply with these regulations to 
persons with whom the lessee does business as it relates to this lease 
by including this term as a condition to enter into their contracts and 
other transactions.
    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 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 197, 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 197'' 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 15, 2005. 
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 197 and will be kept confidential. An 
Example of Preferred Format for the Geophysical Data and Information 
Statement is included in the FNOS 197 Package.

[[Page 7306]]

    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 3, 2005.
R.M. ``Johnnie'' Burton,
Director, Minerals Management Service.
[FR Doc. 05-2771 Filed 2-10-05; 8:45 am]
BILLING CODE 4310-MR-P