[Federal Register Volume 80, Number 137 (Friday, July 17, 2015)]
[Notices]
[Pages 42529-42535]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-17632]


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DEPARTMENT OF THE INTERIOR

Bureau of Ocean Energy Management


Western Gulf of Mexico Planning Area (WPA) Outer Continental 
Shelf (OCS) Oil and Gas Lease Sale 246 (WPA Sale 246); MMAA104000

AGENCY: Bureau of Ocean Energy Management (BOEM), Interior.

ACTION: Final notice of sale.

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SUMMARY: On Wednesday, August 19, 2015, the Bureau of Ocean Energy 
Management (BOEM) will open and publicly announce bids for blocks 
offered in the Western Gulf of Mexico Planning Area (WPA) Lease Sale 
246 (WPA Sale 246), in accordance with the provisions of the Outer 
Continental Shelf Lands Act (OCSLA) (43 U.S.C. 1331-1356, as amended) 
and the implementing regulations issued pursuant thereto (30 CFR parts 
550 and 556). The WPA Sale 246 Final Notice of Sale (NOS) Package 
(Final NOS Package) contains information essential to potential 
bidders. Bidders are charged with knowing the contents of the documents 
contained in the Final NOS Package.
    Date and Time: Public bid reading for WPA Sale 246 will begin at 
9:00 a.m. on Wednesday, August 19, 2015. All times referred to in this 
document are local time in New Orleans, unless otherwise specified.
    Location: The Mercedes-Benz Superdome, 1500 Sugarbowl Drive, New 
Orleans, Louisiana 70112. The lease sale will be held in the St. 
Charles Club Room on the second floor (Loge Level). Entry to the 
Superdome will be on the Poydras Street side of the building through 
Gate A on the Ground Level; parking will be available at Garage 6.
    Bid Submission Deadline: BOEM must receive all sealed bids between 
8:00 a.m. and 4:00 p.m. on normal working days, and from 8:00 a.m. to 
the Bid Submission Deadline of 10:00 a.m. on Tuesday, August 18, 2015, 
the day before the lease sale. For more information on bid submission, 
see Section VII, ``Bidding Instructions,'' of this document.

ADDRESSES: Interested parties, upon request, may obtain a compact disc 
(CD-ROM) containing the Final NOS Package by contacting the BOEM Gulf 
of Mexico (GOM) Region at the following address: Gulf of Mexico Region 
Public Information Office, Bureau of Ocean Energy Management, 1201 
Elmwood Park Boulevard, New Orleans, Louisiana 70123-2394, (504) 736-
2519 or (800) 200-GULF, or by visiting the BOEM Web site at http://www.boem.gov/Sale-246/.

Table of Contents

    This Final NOS includes the following sections:

I. Lease Sale Area
II. Statutes and Regulations
III. Lease Terms and Economic Conditions
IV. Lease Stipulations
V. Information to Lessees
VI. Maps
VII. Bidding Instructions
VIII. Bidding Rules and Restrictions
IX. Forms
X. The Lease Sale
XI. Delay of Sale

I. Lease Sale Area

Blocks Offered for Leasing

    In WPA Sale 246, BOEM is offering for lease all blocks and partial 
blocks listed in the document ``List of Blocks Available for Leasing'' 
included in this Final NOS Package. All of these blocks are shown on 
the following leasing maps and Official Protraction Diagrams (OPDs):

Outer Continental Shelf Leasing Maps--Texas Map Numbers 1 Through 8

TX1 South Padre Island Area (revised October 1, 2014)
TX1A South Padre Island Area, East Addition (revised October 1, 
2014)
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 Leasing Maps--Louisiana Map Numbers 1A, 1B, and 
12

LA1A West Cameron Area, West Addition (revised February 28, 2007)
LA1B West Cameron Area, South Addition (revised February 28, 2007)
LA12 Sabine Pass Area (revised July 1, 2011)

Outer Continental Shelf Official Protraction Diagrams

NG14-03 Corpus Christi (revised November 1, 2000)
NG14-06 Port Isabel (revised October 1, 2014)
NG15-01 East Breaks (revised November 1, 2000)
NG15-02 Garden Banks (revised February 28, 2007)
NG15-04 Alaminos Canyon (revised October 1, 2014)
NG15-05 Keathley Canyon (revised October 1, 2014)
NG15-08 Sigsbee Escarpment (revised October 1, 2014)

    Please Note: A CD-ROM (in ArcGIS and Acrobat (.pdf) format) 
containing all of the GOM Region leasing maps and OPDs, is available 
from the BOEM Gulf of Mexico Region Public Information Office for a 
price of $15.00. These GOM Region leasing maps and OPDs also are 
available online for free in .pdf and .gra formats at http://www.boem.gov/Official-Protraction-Diagrams.

    For the current status of all WPA leasing maps and OPDs, please 
refer to 66 FR 28002 (May 21, 2001), 67 FR 60701 (September 26, 2002), 
72 FR 27590 (May 16, 2007), 76 FR 54787 (September 2, 2011), 79 FR 
32572 (June 5, 2014), and 80 FR 3251 (January 22, 2015). In addition, 
Supplemental Official OCS Block Diagrams (SOBDs) for blocks containing 
the U.S. 200-Nautical Mile Limit line and the U.S.-Mexico Maritime and 
Continental Shelf Boundary line are available. These SOBDs are 
available from the BOEM Gulf of Mexico Region Public Information Office 
and on BOEM's Web site at http://www.boem.gov/Supplemental-Official-OCS-Block-Diagrams-SOBDs/. For additional information, or to order the 
above referenced maps or diagrams, please call the Mapping and 
Automation Section at (504) 731-1457.
    All blocks being offered in the lease sale are shown on these 
leasing maps and OPDs. The available Federal acreage of each whole and 
partial block in this lease sale is shown in the document

[[Page 42530]]

``List of Blocks Available for Leasing'' included in the Final NOS 
Package. Some of these blocks may be partially leased or deferred, or 
transected by administrative lines, such as the Federal/State 
jurisdictional line. A bid on a block must include all of the available 
Federal acreage of that block. Also, information on the unleased 
portions of such blocks can be found in the document entitled ``Western 
Planning Area, Lease Sale 246, August 19, 2015--Unleased Split Blocks 
and Available Unleased Acreage of Blocks with Aliquots and Irregular 
Portions under Lease or Deferred,'' which is included in this Final NOS 
Package.
    For additional information, please call Mr. Lenny Coats, Chief of 
the Mapping and Automation Section, at (504) 731-1457.
    Blocks Not Offered for Leasing:
    The following whole and partial blocks are not offered for lease in 
this sale:
    Whole and partial blocks that lie within the boundaries of the 
Flower Garden Banks National Marine Sanctuary (Sanctuary) in the East 
and West Flower Garden Banks and Stetson Bank. The following list 
identifies all blocks affected by the Sanctuary boundaries:

High Island, East Addition, South Extension (Leasing Map TX7C)
    Whole Block: A-398
    Portions of Blocks: A-366, A-367, A-374, A-375, A-383, A-384, A-
385, A-388, A-389, A-397, A-399, A-401
High Island, South Addition (Leasing Map TX7B)
    Portions of Blocks: A-502, A-513
Garden Banks (OPD NG15-02)
    Portions of Blocks: 134, 135

    The following blocks whose lease status is currently under appeal:

Matagorda Island (Leasing Map TX4) Block 632
Matagorda Island (Leasing Map TX4) Block 656
Matagorda Island (Leasing Map TX4) Block 657

II. Statutes and Regulations

    Each lease is issued pursuant and subject to OCSLA, implementing 
regulations promulgated pursuant thereto, and other applicable statutes 
and regulations in existence upon the effective date of the lease, as 
well as those applicable statutes enacted and regulations promulgated 
thereafter, except to the extent that the after-enacted statutes and 
regulations explicitly conflict with an express provision of the lease. 
Each lease is subject to amendments to the applicable statutes and 
regulations, including, but not limited to, OCSLA, that do not 
explicitly conflict with an express provision of the lease. The lessee 
expressly bears the risk that such new or amended statutes and 
regulations (i.e. those that do not explicitly conflict with an express 
provision of the lease) may increase or decrease the lessee's 
obligations under the lease.

III. Lease Terms and Economic Conditions

Lease Terms

OCS Lease Form
    BOEM will use Form BOEM-2005 (October 2011) to convey leases 
resulting from this sale. This lease form may be viewed on the BOEM Web 
site at http://www.boem.gov/BOEM-2005/. The lease form will be amended 
to conform with the specific terms, conditions, and stipulations 
applicable to each individual lease. The terms, conditions, and 
stipulations applicable to this sale are set forth below.
Initial Periods
    Initial periods are summarized in the following table:

------------------------------------------------------------------------
       Water depth  (meters)                   Initial period
------------------------------------------------------------------------
0 to <400.........................  Standard initial period is 5 years;
                                     the lessee may earn an additional 3
                                     years (i.e. for an 8-year extended
                                     initial period) if a well is
                                     spudded targeting hydrocarbons
                                     below 25,000 feet True Vertical
                                     Depth Subsea (TVD SS) during the
                                     first 5 years of the lease.
400 to <800.......................  Standard initial period is 5 years;
                                     the lessee will earn an additional
                                     3 years (i.e. for an 8-year
                                     extended initial period) if a well
                                     is spudded during the first 5 years
                                     of the lease.
800 to <1,600.....................  Standard initial period is 7 years;
                                     the lessee will earn an additional
                                     3 years (i.e. for a 10-year
                                     extended initial period) if a well
                                     is spudded during the first 7 years
                                     of the lease.
1,600 +...........................  10 years.
------------------------------------------------------------------------

    (1) The standard initial period for a lease in water depths less 
than 400 meters issued as a result of this sale is 5 years. If the 
lessee spuds a well targeting hydrocarbons below 25,000 feet TVD SS 
within the first 5 years of the lease, then the lessee may earn an 
additional 3 years, resulting in an 8-year extended initial period. The 
lessee will earn the 8-year extended initial period when the well is 
drilled to a target below 25,000 feet TVD SS, or the lessee may earn 
the 8-year extended initial period in cases where the well targets, but 
does not reach, a depth below 25,000 feet TVD SS due to mechanical or 
safety reasons, where sufficient evidence is provided.
    In order to earn the 8-year extended initial period, the lessee is 
required to submit to the Bureau of Safety and Environmental 
Enforcement (BSEE) Gulf of Mexico Regional Supervisor for Production 
and Development, within 30 days after completion of the drilling 
operation, a letter providing the well number, spud date, information 
demonstrating a target below 25,000 feet TVD SS and whether that target 
was reached, and if applicable, any safety, mechanical, or other 
problems encountered that prevented the well from reaching a depth 
below 25,000 feet TVD SS. The BSEE Gulf of Mexico Regional Supervisor 
for Production and Development must concur in writing that the 
conditions have been met for the lessee to earn the 8-year extended 
initial period. The BSEE Gulf of Mexico Regional Supervisor for 
Production and Development will provide a written response within 30 
days of receipt of the lessee's letter.
    A lessee that has earned the 8-year extended initial period by 
spudding a well with a hydrocarbon target below 25,000 feet TVD SS 
during the first 5 years of the lease, confirmed by BSEE, will not be 
granted a suspension for that same period under the regulations at 30 
CFR 250.175 because the lease is not at risk of expiring.
    (2) The standard initial period for a lease in water depths ranging 
from 400 to less than 800 meters issued as a result of this sale is 5 
years. The lessee will earn an additional 3 years, resulting in an 8-
year extended initial period, if the lessee spuds a well within the 
first 5 years of the lease.
    In order to earn the 8-year extended initial period, the lessee is 
required to submit to the appropriate BSEE District Manager, within 30 
days after spudding a well, a letter providing the well

[[Page 42531]]

number and spud date, and requesting concurrence that the lessee has 
earned the 8-year extended initial period. The BSEE District Manager 
will review the request and make a written determination within 30 days 
of receipt of the request. The BSEE District Manager must concur in 
writing that the conditions have been met by the lessee to earn the 8-
year extended initial period.
    (3) The standard initial period for a lease in water depths ranging 
from 800 to less than 1,600 meters issued as a result of this sale will 
be 7 years. The lessee will earn an additional 3 years, resulting in a 
10-year extended initial period, if the lessee spuds a well within the 
first 7 years of the lease.
    In order to earn the 10-year extended initial period, the lessee is 
required to submit to the appropriate BSEE District Manager, within 30 
days after spudding a well, a letter providing the well number and spud 
date, and requesting concurrence that the lessee has earned the 10-year 
extended initial period. The BSEE District Manager will review the 
request and make a written determination within 30 days of receipt of 
the request. The BSEE District Manager must concur in writing that the 
conditions have been met by the lessee to earn the 10-year extended 
initial period.
    (4) The standard initial period for a lease in water depths 1,600 
meters or deeper issued as a result of this sale will be 10 years.

Economic Conditions

Minimum Bonus Bid Amounts
 $25.00 per acre or fraction thereof for blocks in water depths 
less than 400 meters
 $100.00 per acre or fraction thereof for blocks in water 
depths 400 meters or deeper

    BOEM will not accept a bonus bid unless it provides for a cash 
bonus in the amount equal to, or exceeding, the specified minimum bid 
of $25.00 per acre or fraction thereof for blocks in water depths less 
than 400 meters, and $100.00 per acre or fraction thereof for blocks in 
water depths 400 meters or deeper.
Rental Rates
    Annual rental rates are summarized in the following table:

                                    Rental Rates per Acre or Fraction Thereof
----------------------------------------------------------------------------------------------------------------
            Water depth  (meters)                 Years 1-5                    Years 6, 7, & 8 +
----------------------------------------------------------------------------------------------------------------
0 to <200....................................           $7.00  $14.00, $21.00, & $28.00
200 to <400..................................           11.00  $22.00, $33.00, & $44.00
400 +........................................           11.00  $16.00
----------------------------------------------------------------------------------------------------------------

Escalating Rental Rates for Leases With an 8-Year Extended Initial 
Period in Water Depths Less Than 400 Meters
    Any lessee with a lease in less than 400 meters water depth who 
earns an 8-year extended initial period will pay an escalating rental 
rate as shown above. The rental rates after the fifth year for blocks 
in less than 400 meters water depth will become fixed and no longer 
escalate, if another well is spudded targeting hydrocarbons below 
25,000 feet TVD SS after the fifth year of the lease, and BSEE concurs 
that such a well has been spudded. In this case, the rental rate will 
become fixed at the rental rate in effect during the lease year in 
which the additional well was spudded.
Royalty Rate
 18.75 percent
Minimum Royalty Rate
 $7.00 per acre or fraction thereof per year for blocks in 
water depths less than 200 meters
 $11.00 per acre or fraction thereof per year for blocks in 
water depths 200 meters or greater
Royalty Suspension Provisions
    The issuance of leases with royalty suspension volumes (RSVs) or 
other forms of royalty relief is authorized under existing BOEM 
regulations at 30 CFR part 560. The specific details relating to 
eligibility and implementation of the various royalty relief programs, 
including those involving the use of RSVs, are codified in BSEE 
regulations at 30 CFR part 203. In this sale, the only royalty relief 
program being offered, which involves the provision of RSVs, relates to 
the drilling of ultra-deep wells in water depths of less than 400 
meters, as described below.
Royalty Suspension Volumes on Gas Production from Ultra-deep Wells
    Leases issued as a result of this sale may be eligible for RSVs 
incentives on gas produced from ultra-deep wells pursuant to 30 CFR 
part 203. These regulations implement the requirements of the Energy 
Policy Act of 2005. Under this program, wells on leases in less than 
400 meters water depth and completed to a drilling depth of 20,000 feet 
TVD SS or deeper receive a RSV of 35 billion cubic feet on the 
production of natural gas. This RSVs incentive is subject to applicable 
price thresholds set forth in the regulation at 30 CFR part 203.

IV. Lease Stipulations

    One or more of the following stipulations may be applied to leases 
issued as a result of this sale. The detailed text of these 
stipulations is contained in the ``Lease Stipulations'' section of this 
Final NOS Package.

(1) Topographic Features
(2) Military Areas
(3) United Nations Convention on the Law of the Sea Royalty Payment
(4) Protected Species
(5) Agreement between the United States of America and the United 
Mexican States Concerning Transboundary Hydrocarbon Reservoirs in the 
Gulf of Mexico

V. Information to Lessees

    The following Information to Lessees (ITL) clauses provide detailed 
information on certain issues pertaining to this oil and gas lease 
sale. The detailed text of the following ITL clauses is contained in 
the ``Information to Lessees'' section of this Final NOS Package.
(1) Navigation Safety
(2) Ordnance Disposal Areas in the WPA
(3) Existing and Proposed Artificial Reefs/Rigs-to-Reefs
(4) Lightering Zones
(5) Indicated Hydrocarbons List
(6) Military Areas in the WPA
(7) BSEE Inspection and Enforcement of Certain Coast Guard Regulations
(8) Potential Sand Dredging Activities in the WPA
(9) Notice of Arrival on the Outer Continental Shelf

[[Page 42532]]

(10) Bidder/Lessee Notice of Obligations Related to Criminal/Civil 
Charges and Offenses, Suspension, or Debarment
(11) Protected Species
(12) Flower Garden Banks Expansion

VI. Maps

    The maps pertaining to this lease sale may be found on the BOEM Web 
site at http://www.boem.gov/Sale-246. The following maps also are 
included in this Final NOS Package:

Lease Terms and Economic Conditions Map

    The lease terms and economic conditions and the blocks to which 
these terms and conditions apply are shown on the map entitled ``Final, 
Western Planning Area, Lease Sale 246, August 19, 2015, Lease Terms and 
Economic Conditions.''

Stipulations and Deferred Blocks Map

    The blocks to which one or more lease stipulations may apply are 
shown on the map entitled ``Final, Western Planning Area, Lease Sale 
246, August 19, 2015, Stipulations and Deferred Blocks Map.''

VII. Bidding Instructions

    Instructions on how to submit a bid, secure payment of the advance 
bonus bid deposit (if applicable), and what information must be 
included with the bid are as follows:

Bid Form

    For each block bid upon, a separate sealed bid shall be submitted 
in a sealed envelope (as described below) and must include the 
following:
     Total amount of the bid in whole dollars only;
     sale number;
     sale date;
     each bidder's exact name;
     each bidder's proportionate interest, stated as a 
percentage, using a maximum of five decimal places (e.g., 33.33333%);
     typed name and title, and signature of each bidder's 
authorized officer;
     each bidder's qualification number;
     map name and number or OPD name and number;
     block number; and
     statement acknowledging that the bidder(s) understands 
that this bid legally binds the bidder(s) to comply with all applicable 
regulations, including payment of one-fifth of the bonus bid amount on 
all apparent high bids.
    The information required on the bid(s) is specified in the document 
``Bid Form'' contained in the Final NOS Package. A blank bid form is 
provided in the Final NOS Package for convenience and may be copied and 
completed with the necessary information described above.

Bid Envelope

    Each bid must be submitted in a separate sealed envelope labeled as 
follows:
     ``Sealed Bid for Oil and Gas Lease Sale 246, not to be 
opened until 9:00 a.m. Wednesday, August 19, 2015;''
     map name and number or OPD name and number;
     block number for block bid upon; and
     the exact name and qualification number of the submitting 
bidder only.
    The Final NOS Package includes a sample bid envelope for reference.

Mailed Bids

    If bids are mailed, please address the envelope containing the 
sealed bid envelope(s) as follows:

Attention: Leasing and Financial Responsibility Section, BOEM Gulf of 
Mexico Region, 1201 Elmwood Park Boulevard, New Orleans, Louisiana 
70123-2394, Contains Sealed Bids for WPA Oil and Gas Lease Sale 246. 
Please Deliver to Mr. Chris Oos or Ms. Cindy Thibodeaux, 2nd Floor, 
Immediately.

    Please Note: Bidders mailing bid(s) are advised to call Mr. 
Chris Oos at (504) 736-2862, or Ms. Cindy Thibodeaux at (504) 736-
2809, immediately after putting their bid(s) in the mail. If BOEM 
receives bids later than the Bid Submission Deadline, the BOEM 
Regional Director (RD) will return those bids unopened to bidders. 
Please see ``Section XI. Delay of Sale'' regarding BOEM's discretion 
to extend the Bid Submission Deadline in the case of an unexpected 
event (e.g., flooding or travel restrictions) and how bidders can 
obtain more information on such extensions.

Advance Bonus Bid Deposit Guarantee

    Bidders that are not currently an OCS oil and gas lease record 
title holder or designated operator, or those that ever have defaulted 
on a one-fifth bonus bid deposit, by Electronic Funds Transfer (EFT) or 
otherwise, must guarantee (secure) the payment of the one-fifth bonus 
bid deposit prior to bid submission using one of the following four 
methods:
     Provide a third-party guarantee;
     amend an areawide development bond via bond rider;
     provide a letter of credit; or
     provide a lump sum payment in advance via EFT.
    For more information on EFT procedures, see Section X of this 
document entitled ``The Lease Sale.''

Affirmative Action

    Prior to bidding, each bidder should file Equal Opportunity 
Affirmative Action Representation Form BOEM-2032 (October 2011) and 
Equal Opportunity Compliance Report Certification Form BOEM-2033 
(October 2011) with the BOEM Gulf of Mexico Region Adjudication 
Section. This certification is required by 41 CFR part 60 and Executive 
Order No. 11246, issued September 24, 1965, as amended by Executive 
Order No. 11375, issued October 13, 1967. Both forms must be on file 
for the bidder(s) in the GOM Region Adjudication Section prior to the 
execution of any lease contract.

Geophysical Data and Information Statement

    The Geophysical Data and Information Statement (GDIS) is composed 
of three parts:
    (1) The ``Statement'' page includes the company representatives' 
information and lists of blocks bid on that used proprietary data and 
those blocks bid on that did not use proprietary data;
    (2) the ``Table'' listing the required data about each proprietary 
survey used (see below); and
    (3) the ``Maps'' being the live trace maps for each survey that are 
identified in the GDIS statement and table.
    Every bidder submitting a bid on a block in WPA Sale 246, or 
participating as a joint bidder in such a bid, must submit at the time 
of bid submission all three parts of the GDIS. A bidder must submit the 
GDIS even if a joint bidder or bidders on a specific block also have 
submitted a GDIS. Any speculative data that has been reprocessed 
externally or ``in-house'' is considered proprietary due to the 
proprietary processing and is no longer considered to be speculative.
    The GDIS must be submitted in a separate and sealed envelope, and 
identify all proprietary data; reprocessed speculative data, and/or any 
Controlled Source Electromagnetic surveys, Amplitude Versus Offset, 
Gravity, or Magnetic data; or other information used as part of the 
decision to bid or participate in a bid on the block.
    The GDIS statement must include the name, phone number, and full 
address of a contact person and an alternate who are both knowledgeable 
about the information and data listed and who are available for 30 days 
after the sale date. The GDIS statement also must include entries for 
all blocks bid upon that did not use proprietary or reprocessed pre- or 
post-stack geophysical data and information as part of the decision to 
bid or to participate as a joint bidder in the bid.

[[Page 42533]]

    The GDIS statement must be submitted even if no proprietary 
geophysical data and information were used in bid preparation for the 
block.
    The GDIS table should have columns that clearly state the sale 
number; the bidder company's name; the block area and block number bid 
on; the owner of the original data set (i.e., who initially acquired 
the data); the industry's original name of the survey (e.g., E 
Octopus); the BOEM permit number for the survey; whether the data set 
is a fast track version; whether the data is speculative or 
proprietary; the data type (e.g., 2-D, 3-D, or 4-D; pre-stack or post-
stack; and time or depth); migration algorithm (e.g., Kirchhoff 
Migration, Wave Equation Migration, Reverse Migration, Reverse Time 
Migration) of the data; and areal extent of bidder survey (i.e., number 
of line miles for 2-D or number of blocks for 3-D). Provide the 
computer storage size, to the nearest gigabyte, of each seismic data 
and velocity volume used to evaluate the lease block in question. This 
will be used in estimating the reproduction costs for each data set, if 
applicable.
    The availability of reimbursement of production costs will be 
determined consistent with 30 CFR 551.13. The next column should state 
who reprocessed the data (e.g., external company name or ``in-house'') 
and when the date of final reprocessing was completed (month and year). 
If the data was sent to BOEM for bidding in a previous lease sale, list 
the date the data was processed (month and year) and indicate if 
Amplitude Versus Offset (AVO) data was used in the evaluation. BOEM 
reserves the right to query about alternate data sets, to quality 
check, and to compare the listed and alternative data sets to determine 
which data set most closely meets the needs of the fair market value 
determination process. An example of the preferred format of the table 
may be found in the Final NOS Package, and a blank digital version of 
the preferred table may be accessed on the WPA Sale 246 Web page at 
http://www.boem.gov/Sale-246/.
    The GDIS maps are live trace maps (in .pdf and ArcGIS shape files) 
that should be submitted for each proprietary survey that is identified 
in the GDIS table. They should illustrate the actual areal extent of 
the proprietary geophysical data in the survey (see the ``Example of 
Preferred Format'' in the Final NOS Package for additional 
information).
    Pursuant to 30 CFR 551.12 and 30 CFR 556.32, as a condition of the 
sale, the BOEM Gulf of Mexico RD requests that all bidders and joint 
bidders submit the proprietary data identified on their GDIS within 30 
days after the lease sale (unless they are notified after the lease 
sale that BOEM has withdrawn the request). This request only pertains 
to proprietary data that is not commercially available. Commercially 
available data is not required to be submitted to BOEM, and 
reimbursement will not be provided if such data is submitted by a 
bidder. The BOEM Gulf of Mexico RD will notify bidders and joint 
bidders of any withdrawal of the request, for all or some of the 
proprietary data identified on the GDIS, within 15 days of the lease 
sale. Pursuant to 30 CFR part 551 and as a condition of this sale, all 
bidders required to submit data must ensure that the data is received 
by BOEM no later than the 30th day following the lease sale, or the 
next business day if the submission deadline falls on a weekend or 
Federal holiday. The data must be submitted to BOEM at the following 
address: Bureau of Ocean Energy Management, Resource Studies, MS 881A, 
1201 Elmwood Park Blvd., New Orleans, LA 70123-2304.
    BOEM recommends that bidders mark the submission's external 
envelope as ``Deliver Immediately to DASPU.'' BOEM also recommends that 
the data be submitted in an internal envelope, or otherwise marked, 
with the following designation: ``Proprietary Geophysical Data 
Submitted Pursuant to Lease Sale 246 and used during = 
evaluation of Block =.''
    In the event a person supplies any type of data to BOEM, that 
person must meet the following requirements to qualify for 
reimbursement:
    (1) Persons must be registered with the System for Award Management 
(SAM), formerly known as the Central Contractor Registration (CCR). CCR 
usernames will not work in SAM. A new SAM User Account is needed to 
register or update an entity's records. The Web site for registering is 
https://www.sam.gov.
    (2) Persons must be enrolled in the Department of Treasury's 
Internet Payment Platform (IPP) for electronic invoicing. The person 
must enroll in the IPP at https://www.ipp.gov/. Access then will be 
granted to use the IPP for submitting requests for payment. When a 
request for payment is submitted, it must include the assigned Purchase 
Order Number on the request.
    (3) Persons must have a current On-line Representations and 
Certifications Application at https://www.sam.gov.

    Please Note: The GDIS Information Table must be submitted 
digitally, preferably as an Excel spreadsheet, on a CD or DVD along 
with the seismic data map(s). If bidders have any questions, please 
contact Ms. Dee Smith at (504) 736-2706, or Mr. John Johnson at 
(504) 736-2455.

    Bidders should refer to Section X of this document, ``The Lease 
Sale: Acceptance, Rejection, or Return of Bids,'' regarding a bidder's 
failure to comply with the requirements of the Final NOS, including any 
failure to submit information as required in this Final NOS or Final 
NOS Package.

Telephone Numbers/Addresses of Bidders

    BOEM requests that bidders provide this information in the 
suggested format prior to or at the time of bid submission. The 
suggested format is included in the Final NOS Package. The form must 
not be enclosed inside the sealed bid envelope.

Additional Documentation

    BOEM may require bidders to submit other documents in accordance 
with 30 CFR 556.46.

VIII. Bidding Rules and Restrictions

Restricted Joint Bidders

    On May 18, 2015, BOEM published the most recent List of Restricted 
Joint Bidders in the Federal Register at 80 FR 28299. Potential bidders 
are advised to refer to the Federal Register, prior to bidding, for the 
most current List of Restricted Joint Bidders in place at the time of 
the lease sale. Please refer to joint bidding provisions at 30 CFR 
556.41 for additional restrictions.

Authorized Signatures

    All signatories executing documents on behalf of bidder(s) must 
execute the same in conformance with the BOEM qualification records. 
Bidders are advised that BOEM 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 one-fifth of the bonus bid 
on all high bids. A statement to this effect must be included on each 
bid form (see the document ``Bid Form'' contained in the Final NOS 
Package).

Unlawful Combination or Intimidation

    BOEM warns bidders against violation of 18 U.S.C. 1860, prohibiting 
unlawful combination or intimidation of bidders.

Bid Withdrawal

    Bids may be withdrawn only by written request delivered to BOEM 
prior to the Bid Submission Deadline. The withdrawal request must be on 
company letterhead and must contain the bidder's name, its BOEM 
qualification number, the map name/number, and the block number(s) of 
the bid(s) to be withdrawn. The withdrawal

[[Page 42534]]

request must be executed by an authorized signatory of the bidder and 
must be executed in conformance with the BOEM qualification records. 
Signatories must be authorized to bind their respective legal business 
entities (e.g., a corporation, partnership, or LLC), and documentation 
must be on file with BOEM setting forth this authority to act on the 
business entity's behalf for purposes of bidding and lease execution 
under OCSLA (e.g., business charter or articles, incumbency 
certificate, or power of attorney). The name and title of the 
authorized signatory must be typed under the signature block on the 
withdrawal request. The BOEM Gulf of Mexico RD, or the RD's designee, 
will indicate any approval by signing and dating the withdrawal 
request.

Bid Rounding

    The bonus bid amount must be stated in whole dollars. Minimum bonus 
bid calculations, including all rounding, for all blocks are shown in 
the document entitled ``List of Blocks Available for Leasing,'' which 
is included in this Final NOS Package. If the acreage of a block 
contains a decimal figure, then prior to calculating the minimum bonus 
bid, BOEM has rounded up to the next whole acre. The appropriate 
minimum rate per acre was then applied to the whole (rounded up) 
acreage. If this calculation resulted in a fractional dollar amount, 
the minimum bonus bid was rounded up to the next whole dollar amount. 
The bonus bid amount must be greater than or equal to the minimum bonus 
bid in whole dollars.

IX. Forms

    The Final NOS Package includes instructions, samples, and/or the 
preferred format for the following items. BOEM strongly encourages 
bidders to use these formats; should bidders use another format, they 
are responsible for including all the information specified for each 
item in this Final NOS Package.

(1) Bid Form
(2) Sample Completed Bid
(3) Sample Bid Envelope
(4) Sample Bid Mailing Envelope
(5) Telephone Numbers/Addresses of Bidders Form
(6) GDIS Form
(7) GDIS Envelope Form

X. The Lease Sale

Bid Opening and Reading

    Sealed bids received in response to the Final NOS will be opened at 
the place, date, and hour specified in the ``DATE AND TIME'' and 
``LOCATION'' sections of this document. The opening of the bids is for 
the sole purpose of publicly announcing and recording the bids 
received; no bids will be accepted or rejected at that time.

Bonus Bid Deposit for Apparent High Bids

    Each bidder submitting an apparent high bid must submit a bonus bid 
deposit to the U.S. Department of the Interior's Office of Natural 
Resources Revenue (ONRR) equal to one-fifth of the bonus bid amount for 
each such bid. A copy of the notification of the high bidder's one-
fifth bonus bid amount may be obtained at the EFT Area outside the Bid 
Reading Room on the day of the bid opening, or it may be obtained on 
the BOEM Web site at http://www.boem.gov/Sale-246/ under the heading 
``Notification of EFT 1/5 Bonus Liability.'' All payments must be 
deposited electronically into an interest-bearing account in the U.S. 
Treasury by 11:00 a.m. Eastern Time the day following the bid reading 
(no exceptions). Account information is provided in the ``Instructions 
for Making Electronic Funds Transfer Bonus Payments'' found on the BOEM 
Web site identified above.
    BOEM requires bidders to use EFT procedures for payment of one-
fifth bonus bid deposits for WPA Sale 246, following the detailed 
instructions contained on the ONRR Payment Information Web page at 
http://www.onrr.gov/FM/PayInfo.htm. Acceptance of a deposit does not 
constitute and shall not be construed as acceptance of any bid on 
behalf of the United States.

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. No 
bid will be accepted, and no lease for any block will be awarded to any 
bidder, unless:
    (1) The bidder has complied with all requirements of the Final NOS 
Package and applicable regulations;
    (2) the bid submitted is the highest valid bid; and
    (3) the amount of the bid has been determined to be adequate by the 
authorized officer.
    Any bid submitted that does not conform to the requirements of the 
Final NOS and Final NOS Package, OCSLA, BOEM regulations or other 
applicable statute or regulation, may be rejected and returned to the 
bidder. The U.S. Department of Justice and the Federal Trade Commission 
will review the results of the lease sale for antitrust issues prior to 
the acceptance of bids and issuance of leases. To ensure that the U.S. 
Government receives a fair return for the conveyance of leases from 
this sale, high bids will be evaluated in accordance with BOEM's bid 
adequacy procedures. A copy of current procedures, ``Modifications to 
the Bid Adequacy Procedures,'' published at 64 FR 37560 on July 12, 
1999, can be obtained from the BOEM Gulf of Mexico Region Public 
Information Office, or via the BOEM Gulf of Mexico Region Web site at 
http://www.boem.gov/Bid-Adequacy-Procedures/. For Sale 246, the water 
depth categories are specified as (1) less than 400 meters and (2) 400 
meters or greater.

Proposed Changes for Bid Adequacy Review Procedures

    BOEM published a notification in the Federal Register, at 79 FR 
62461-62463 (October 17, 2014), at http://www.gpo.gov/fdsys/pkg/FR-2014-10-17/pdf/2014-24727.pdf, proposing the elimination of one of its 
acceptance rules, the Number of Bids Rule, from its bid adequacy 
procedures. While BOEM is still in the process of evaluating the 
proposed change to its acceptance rules, there will be no changes to 
the bid adequacy procedures for WPA Sale 246. For the existing 
procedures, see ``Modifications to the Bid Adequacy Procedures,'' at 64 
FR 37560-37562 (July 12, 1999), at http://www.boem.gov/Bid-Adequacy-Procedures/.

Lease Award

    BOEM requires each bidder awarded a lease to:
    (1) Execute all copies of the lease (Form BOEM-2005 [October 2011], 
as amended);
    (2) 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 556.47(f) (ONRR requests that only one 
transaction be used for payment of the four-fifths bonus bid amount and 
the first year's rental); and
    (3) satisfy the bonding requirements of 30 CFR part 556, subpart I, 
as amended.

XI. Delay of Sale

    The BOEM Gulf of Mexico RD has the discretion to change any date, 
time, and/or location specified in the Final NOS Package in case of an 
event that the BOEM Gulf of Mexico RD deems may interfere with the 
carrying out of a fair and orderly lease sale process. Such events 
could include, but are not

[[Page 42535]]

limited to, natural disasters (e.g., earthquakes, hurricanes, and 
floods), wars, riots, acts of terrorism, fires, strikes, civil 
disorder, or other events of a similar nature. In case of such events, 
bidders should call (504) 736-0557, or access the BOEM Web site at 
http://www.boem.gov, for information regarding any changes.

    Dated: July 8, 2015.
Abigail Ross Hopper,
Director, Bureau of Ocean Energy Management.
[FR Doc. 2015-17632 Filed 7-16-15; 8:45 am]
 BILLING CODE 4310-MR-P