[Federal Register Volume 83, Number 33 (Friday, February 16, 2018)]
[Notices]
[Pages 7070-7076]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-03278]


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DEPARTMENT OF THE INTERIOR

Bureau of Ocean Energy Management


Gulf of Mexico Outer Continental Shelf Oil and Gas Lease Sale 
250; MMAA104000

AGENCY: Bureau of Ocean Energy Management, Interior.

ACTION: Final Notice of Sale.

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SUMMARY: On Wednesday, March 21, 2018, the Bureau of Ocean Energy 
Management (BOEM) will open and publicly announce bids received for 
blocks offered in the Gulf of Mexico (GOM) Outer Continental Shelf 
(OCS) Region-wide Oil and Gas Lease Sale 250 (GOM Region-wide Sale 
250), in accordance with the provisions of the Outer Continental Shelf 
Lands Act (OCSLA), as amended, and the implementing regulations issued 
pursuant thereto. The GOM Region-wide Sale 250 Final Notice of Sale 
(NOS) package contains information essential to potential bidders.

DATES: Public bid reading for GOM Region-wide Sale 250 will begin at 
9:00 a.m. on Wednesday, March 21, 2018, at 1201 Elmwood Park Boulevard, 
New Orleans, Louisiana. All times referred to in this document are 
Central Standard Time, unless otherwise specified.
    Bid Submission Deadline: BOEM must receive all sealed bids between 
8:00 a.m. and 4:00 p.m. on weekdays, excluding holidays, prior to the 
sale, with the exception of Tuesday, March 20, 2018, the day before the 
lease sale, when the Bid Submission Deadline is 10:00 a.m. For more 
information on bid submission, see Section VII, ``Bidding 
Instructions,'' of this document.

ADDRESSES: Public bid reading for GOM Region-wide Sale 250 will be held 
at 1201 Elmwood Park Boulevard, New Orleans, Louisiana. The venue will 
not be open to the general public, media, or industry. Instead, the bid 
opening will be available for public viewing on BOEM's website at 
www.boem.gov via live-streaming video beginning at 9:00 a.m. on the 
date of the sale. BOEM will also post the results on its website after 
bid opening and reading are completed. Interested parties may download 
the Final NOS package from BOEM's website at http://www.boem.gov/Sale-250/. Copies of the sale maps may be obtained by contacting the BOEM 
GOM Region at: 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.
    For more information on bid submission, see Section VII, ``Bidding 
Instructions,'' of this document.

FOR FURTHER INFORMATION CONTACT: Ann Glazner, Acting Regional 
Supervisor, Office of Leasing and Plans, 504-736-2607, 
[email protected] or Dr. Andrew Krueger, Acting Chief, Leasing 
Division, 703-787-1554, [email protected].

SUPPLEMENTARY INFORMATION:

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: BOEM will offer for bid in this lease 
sale all of the available unleased acreage in the GOM, except those 
blocks listed in ``Blocks Not Offered for Leasing'' below.
    Blocks Not Offered for Leasing: The following whole and partial 
blocks are not offered for lease in this sale. The BOEM Official 
Protraction Diagrams (OPDs) and Supplemental Official Block Diagrams 
are available online at https://www.boem.gov/Maps-and-GIS-Data/.
    Whole and partial blocks that lie within the boundaries of the 
Flower Garden Banks National Marine Sanctuary (in the East and West 
Flower Garden Banks and the Stetson Bank), identified in the following 
list:

High Island, East Addition, South Extension (Leasing Map TX7C)
    Whole Block: A-398
    Partial 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)
    Partial Blocks: A-502, A-513
Garden Banks (OPD NG15-02)
    Partial Blocks: 134, 135

    Blocks that are adjacent to or beyond the United States Exclusive 
Economic Zone in the area known as the northern portion of the Eastern 
Gap:

Lund South (OPD NG 16-07)
    Whole Blocks: 128, 129, 169 through 173, 208 through 217, 248 
through 261, 293 through 305, and 349
Henderson (OPD NG 16-05)
    Whole Blocks: 466, 508 through 510, 551 through 554, 594 through 
599, 637 through 643, 679 through 687, 722 through 731, 764 through 
775, 807 through 819, 849 through 862, 891 through 905, 933 through 
949, and 975 through 992
    Partial Blocks: 467, 511, 555, 556, 600, 644, 688, 732, 776, 
777, 820, 821, 863, 864, 906, 907, 950, 993, and 994
Florida Plain (OPD NG 16-08)
    Whole Blocks: 5 through 24, 46 through 67, 89 through 110, 133 
through 154, 177 through 197, 221 through 240, 265 through 283, 309 
through 327, and 363 through 370

    All whole and portions of blocks deferred by the Gulf of Mexico 
Energy Security Act of 2006, Public Law 109-432:

Pensacola (OPD NH 16-05)
    Whole Blocks: 751 through 754, 793 through 798, 837 through 842, 
881 through 886, 925 through 930, and 969 through 975

[[Page 7071]]

Destin Dome (OPD NH 16-08)
    Whole Blocks: 1 through 7, 45 through 51, 89 through 96, 133 
through 140, 177 through 184, 221 through 228, 265 through 273, 309 
through 317, 353 through 361, 397 through 405, 441 through 450, 485 
through 494, 529 through 538, 573 through 582, 617 through 627, 661 
through 671, 705 through 715, 749 through 759, 793 through 804, 837 
through 848, 881 through 892, 925 through 936, and 969 through 981
DeSoto Canyon (OPD NH 16-11)
    Whole Blocks: 1 through 15, 45 through 59, and 92 through 102
    Partial Blocks: 16, 60, 61, 89 through 91, 103 through 105, and 
135 through 147
Henderson (OPD NG 16-05)
    Partial Blocks: 114, 158, 202, 246, 290, 334, 335, 378, 379, 
422, and 423

    The following blocks, whose lease status is currently under appeal:

Keathley Canyon (Leasing Map NG15-05) Blocks 290, 291, and 292
Keathley Canyon (Leasing Map NG15-05) Blocks 246 and 247
Keathley Canyon (Leasing Map NG15-05) Blocks 335 and 336
Vermilion Area (Leasing Map LA3) Partial Block 179

II. Statutes and Regulations

    Each lease is issued pursuant to OCSLA, 43 U.S.C. 1331-1356, as 
amended, and is subject to OCSLA implementing regulations promulgated 
pursuant thereto in 30 CFR part 556, 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 also subject to amendments to 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 (February 2017) to convey leases 
resulting from this sale. This lease form may be viewed on BOEM's 
website at http://www.boem.gov/BOEM-2005.
    The lease form will be amended to conform with the specific terms, 
conditions, and stipulations applicable to the individual lease. The 
terms, conditions, and stipulations applicable to this sale are set 
forth below.
Primary Term
    Primary Terms are summarized in the following table:

------------------------------------------------------------------------
       Water depth (meters)                     Primary term
------------------------------------------------------------------------
0 to <400.........................  The primary term is 5 years; the
                                     lessee may earn an additional 3
                                     years (i.e., for an 8 year extended
                                     primary term) 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.......................  The primary term is 5 years; the
                                     lessee will earn an additional 3
                                     years (i.e., for an 8 year extended
                                     primary term) if a well is spudded
                                     during the first 5 years of the
                                     lease.
800 to <1,600.....................  The primary term is 7 years; the
                                     lessee will earn an additional 3
                                     years (i.e., for a 10 year extended
                                     primary term) if a well is spudded
                                     during the first 7 years of the
                                     lease.
1,600 +...........................  10 years.
------------------------------------------------------------------------

    (1) The primary term 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 primary term. The lessee will earn the 8 year 
primary term when the well is drilled to a target below 25,000 feet TVD 
SS, or the lessee may earn the 8 year primary term 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 
that it did not reach that target for reasons beyond the lessee's 
control.
    In order to earn the 8 year extended primary term, the lessee is 
required to submit to the BOEM GOM Regional Supervisor for Leasing and 
Plans, as soon as practicable, but in any instance not more than 30 
days after completion of the drilling operation, a letter providing the 
well number, spud date, information demonstrating a target below 25,000 
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. This letter must 
request confirmation that the lessee earned the 8 year primary term. 
The extended primary term is not effective unless and until the lessee 
receives confirmation from BOEM.
    The BOEM GOM Regional Supervisor for Leasing and Plans will confirm 
in writing, within 30 days of receiving the lessee's letter, whether 
the lessee has earned the extended primary term and update BOEM records 
accordingly.
    A lessee that has earned the 8 year primary term by spudding a well 
with a hydrocarbon target below 25,000 feet TVD SS during the standard 
5 year primary term of the lease 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 primary term for a lease in water depths ranging from 400 
to less than 800 meters issued as a result of this sale is 5 years. If 
the lessee spuds a well within the 5 year primary term of the lease, 
the lessee will earn an additional 3 years, resulting in an 8 year 
primary term.
    In order to earn the 8 year primary term, the lessee is required to 
submit to the BOEM GOM Regional Supervisor for Leasing and Plans, as 
soon as practicable, but in no case more than 30 days after spudding a 
well, a letter providing the well number and spud date, and requesting 
confirmation that the lessee earned the 8 year extended primary term. 
Within 30 days of receipt of the request, the BOEM GOM Regional 
Supervisor for Leasing and Plans will provide written confirmation of 
whether the lessee has earned the extended primary term and update BOEM 
records accordingly.
    (3) The standard primary term for a lease in water depths ranging 
from 800 to less than 1,600 meters issued as a result of this sale is 7 
years. If the lessee spuds a well within the standard 7 year primary 
term, the lessee will earn an additional 3 years, resulting in a 10 
year extended primary term.
    In order to earn the 10 year primary term, the lessee is required 
to submit to

[[Page 7072]]

the BOEM GOM Regional Supervisor for Leasing and Plans, as soon as 
practicable, but in no case more than 30 days after spudding a well, a 
letter providing the well number and spud date, and requesting 
confirmation that the lessee earned the 10 year primary term. Within 30 
days of receipt of the request, the BOEM GOM Regional Supervisor for 
Leasing and Plans will provide written confirmation of whether the 
lessee has earned the extended primary term and update BOEM records 
accordingly.
    (4) The primary term for a lease in water depths 1,600 meters or 
greater 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; and
     $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 an 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 Primary Term in Water 
Depths Less Than 400 Meters
    Any lessee with a lease in less than 400 meters water depth who 
earns an 8 year primary term 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 BOEM 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
     12.5 Percent for leases situated in water depths less than 
200 meters; and
     18.75 percent for leases situated in water depths of 200 
meters and deeper.
Minimum Royalty Rate
     $7.00 Per acre or fraction thereof per year for blocks in 
water depths less than 200 meters; and
     $11.00 per acre or fraction thereof per year for blocks in 
water depths 200 meters or deeper.
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 Bureau of 
Safety and Environmental Enforcement (BSEE) regulations at 30 CFR part 
203.
    In this sale, the only royalty relief program being offered that 
involves the provision of RSVs relates to the drilling of ultra-deep 
wells in water depths of less than 400 meters, as described in the 
following section.
Royalty Suspension Volumes on Gas Production From Ultra-Deep Wells
    Leases issued as a result of this sale may be eligible for RSV 
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 (42 U.S.C. 13201 et seq.). 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 RSV incentive 
is subject to applicable price thresholds set forth in the regulation 
at 30 CFR part 203.

IV. Lease Stipulations

    Consistent with the Record of Decision for the Final Programmatic 
Environmental Impact Statement for the 2017-2022 Five Year OCS Oil and 
Gas Leasing Program, Stipulation No. 5 (Topographic Features) and 
Stipulation No. 8 (Live Bottom) will apply to every lease sale in the 
GOM Program Area. One or more of the remaining eight stipulations may 
be applied to leases issued as a result of this sale. The detailed text 
of the following stipulations is contained in the ``Lease 
Stipulations'' section of the Final NOS package.

(1) Military Areas
(2) Evacuation
(3) Coordination
(4) Protected Species
(5) Topographic Features
(6) United Nations Convention on the Law of the Sea Royalty Payment
(7) Agreement between the United States of America and the United 
Mexican States Concerning Transboundary Hydrocarbon Reservoirs in the 
Gulf of Mexico
(8) Live Bottom
(9) Blocks South of Baldwin County, Alabama
(10) Below Seabed Restrictions due to Rights-of-Use and Easement for 
Floating Production Facilities

V. Information to Lessees

    Information to Lessees (ITLs) provides detailed information on 
certain issues pertaining to specific oil and gas lease sales. The 
detailed text of the ITLs for this sale is contained in the 
``Information to Lessees'' section of the Final NOS package.

(1) Navigation Safety
(2) Ordnance Disposal Areas
(3) Existing and Proposed Artificial Reefs/Rigs-to-Reefs
(4) Lightering Zones
(5) Indicated Hydrocarbons List
(6) Military Areas
(7) Bureau of Safety and Environmental Enforcement (BSEE) Inspection 
and Enforcement of Certain U.S. Coast Guard (USCG) Regulations
(8) Significant Outer Continental Shelf Sediment Resource Areas
(9) Notice of Arrival on the Outer Continental Shelf
(10) Bidder/Lessee Notice of Obligations Related to Criminal/Civil 
Charges and Offenses, Suspension, or

[[Page 7073]]

Debarment; Disqualification Due to a Conviction under the Clean Air Act 
or the Clean Water Act
(11) Protected Species
(12) Proposed Expansion of the Flower Garden Banks National Marine 
Sanctuary
(13) Communication Towers
(14) Deepwater Port Applications for Offshore Oil and Liquefied Natural 
Gas Facilities
(15) Ocean Dredged Material Disposal Sites
(16) Rights-of-Use and Easement
(17) Industrial Waste Disposal Areas
(18) Gulf Islands National Seashore
(19) Air Quality Permit/Plan Approvals

VI. Maps

    The maps pertaining to this lease sale may be viewed on BOEM's 
website at http://www.boem.gov/Sale-250/. The following maps also are 
included in the Final NOS package:

Lease Terms and Economic Conditions Map

    The lease terms and economic conditions associated with leases of 
certain blocks are shown on the map entitled, ``Final, Gulf of Mexico 
Region-wide Oil and Gas Lease Sale 250, March 2018, Lease Terms and 
Economic Conditions.''
Stipulations and Deferred Blocks Map
    The lease stipulations and the blocks to which they apply are shown 
on the map entitled, ``Final, Gulf of Mexico Region-wide Oil and Gas 
Lease Sale 250, March 2018, Stipulations and Deferred Blocks Map.''

VII. Bidding Instructions

    Bids may be submitted in person or by mail at the address below in 
the ``Mailed Bids'' section. Bidders submitting their bid(s) in person 
are advised to email [email protected] to provide the names 
of the company representative(s) who will submit the bid(s). 
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 must be submitted in 
a sealed envelope (as described below) and 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 Official Protraction Diagram (OPD) 
name and number;
     Block number; and
     Statement acknowledging that the bidder(s) understand that 
this bid legally binds the bidder(s) to comply with all applicable 
regulations, including those requiring it to post a deposit in the 
amount of one-fifth of the bonus bid amount for any tract bid upon and 
make payment of the balance of the bonus bid upon BOEM's acceptance of 
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 GOM Region-wide Sale 250, not to be 
opened until 9 a.m. Wednesday, March 21, 2018;''
     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 WS-266A, New Orleans, Louisiana 70123-2394. Contains Sealed 
Bids for GOM Region-wide Sale 250. Please Deliver to Mr. Greg Purvis, 
2nd Floor, Immediately.

    Please Note: Bidders mailing bid(s) are advised to inform BOEM 
by email to [email protected] immediately after putting 
their bid(s) in the mail. This is to ensure receipt of bids prior to 
the Bid Submission Deadline. If BOEM receives bids later than the 
Bid Submission Deadline, the BOEM GOM 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 area-wide 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 the Equal Opportunity 
Affirmative Action Representation Form BOEM-2032 (October 2011, http://www.boem.gov/BOEM-2032/) and Equal Opportunity Compliance Report 
Certification Form BOEM-2033 (October 2011, http://www.boem.gov/BOEM-2033/) with the BOEM GOM 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, and by Executive Order No. 13672, issued July 21, 
2014. Both forms must be on file for the bidder(s) in the GOM 
Adjudication Section prior to the execution of any lease contract.

Geophysical Data and Information Statement (GDIS)

    The 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 proprietary 
survey that are identified in the GDIS statement and table.
    Every bidder submitting a bid on a block in GOM Region-wide Sale 
250, 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

[[Page 7074]]

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 
must identify all proprietary data; reprocessed speculative data, and/
or any Controlled Source Electromagnetic surveys, Amplitude Versus 
Offset (AVO), Gravity, or Magnetic data; or other information used as 
part of the decision to bid or participate in a bid on the block. The 
bidder and joint bidder must also include a live trace map (e.g., .pdf 
and ArcGIS shape file) for each proprietary survey that they identify 
in the GDIS illustrating 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). The shape file 
should not include cultural information; only the live trace map of the 
survey itself.
    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 geophysical information and data listed and who are available 
for 30 days after the sale date. The GDIS statement also must include a 
list of 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. 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);
     The Migration algorithm (e.g., Kirchhoff Migration, Wave 
Equation Migration, Reverse Migration, Reverse Time Migration);
     The Live Proprietary Survey Coverage (e.g., line miles for 
2-D surveys or number of blocks for 3-D surveys);
     The computer storage size, to the nearest gigabyte, of 
each seismic data and velocity volume used to evaluate the lease block;
     Who reprocessed the data and when the date of final 
reprocessing was completed (month and year);
     If data was previously sent to BOEM, list the sale and 
date of sale for which it was used; and
     Indicate if proprietary or Speculative AVO/AVA (PROP/SPEC) 
was used.
    The computer storage size information 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.
    An example of the preferred format of the table is contained in the 
Final NOS package, and a blank digital version of the preferred table 
can be accessed on the GOM Region-wide Sale 250 web page at http://www.boem.gov/Sale-250.
    The GDIS maps are live trace maps (e.g., .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). As previously stated, the shape file should not include 
cultural information; only the live trace map of the survey itself. 
Pursuant to 30 CFR 551.12 and 30 CFR 556.501, 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 30 CFR 556.501, as a condition of 
this sale, all bidders that are 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, GM 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 GOM Region-wide Sale 250 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) The person 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 website for 
registering is https://www.sam.gov.
    (2) The persons must be enrolled in the Department of Treasury's 
Invoice Processing 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) The 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, DVD, or any 
USB external drive (formatted for Windows), 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 the 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

[[Page 7075]]

CFR 556.107, 30 CFR 556.401, 30 CFR 556.501, and 30 CFR 556.513.

VIII. Bidding Rules and Restrictions

Restricted Joint Bidders

    On November 14, 2017, BOEM published the most recent List of 
Restricted Joint Bidders in the Federal Register at 82 FR 52743. 
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 the joint bidding 
provisions at 30 CFR 556.511-515.

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 that requiring payment of one-fifth 
of the bonus bid on all high bids. A statement to this effect is 
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 request must be executed in 
conformance with the BOEM qualification records. Signatories must be 
authorized to bind their respective legal business entity (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 their approval by 
signing and dating the withdrawal request.

Bid Rounding

    Minimum bonus bid calculations, including rounding, for all blocks 
will be shown in the document ``List of Blocks Available for Leasing'' 
included in the Final NOS package. The bonus bid amount must be stated 
in whole dollars. If the acreage of a block contains a decimal figure, 
then prior to calculating the minimum bonus bid, BOEM will round up to 
the next whole acre. The appropriate minimum rate per acre will then be 
applied to the whole (rounded up) acreage. If this calculation results 
in a fractional dollar amount, the minimum bonus bid will be 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 the recommended formats. If bidders use another format, 
they are responsible for including all the information specified for 
each item in the 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 under the DATES section of the 
Final NOS. The venue will not be open to the public. Instead, the bid 
opening will be available for the public to view on BOEM's website at 
www.boem.gov via live-streaming. 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 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 on the BOEM website at http://www.boem.gov/Sale-250 under the 
heading ``Notification of EFT \1/5\ Bonus Liability'' after 1:00 p.m. 
on the day of the sale. 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 website identified 
above.
    BOEM requires bidders to use EFT procedures for payment of one-
fifth bonus bid deposits for GOM Region-wide Sale 250 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 will 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, 
including those set forth in the documents contained in the Final NOS 
package, and applicable regulations;
    (2) The bid 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, or other applicable statute or 
regulation will 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.

Bid Adequacy Review Procedures for GOM Region-Wide Sale 250

    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, which are available at 
http://www.boem.gov/Oil-and-Gas-Energy-Program/Leasing/Regional-Leasing/Gulf-of-Mexico-Region/Bid-Adequacy-Procedures.aspx .

Lease Award

    BOEM requires each bidder awarded a lease to:

[[Page 7076]]

    (1) Execute all copies of the lease (Form BOEM-2005 (February 
2017), 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 556.520(a); and
    (3) Satisfy the bonding requirements of 30 CFR part 556, subpart I, 
as amended. ONRR requests that only one transaction be used for payment 
of the balance of the bonus bid amount and the first year's rental. 
When ONRR receives such payment, the bidder awarded the lease may not 
request a refund of the balance bonus bid amount or first year's rental 
payment.

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 the 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 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 website at http://www.boem.gov, for information regarding any 
changes.

    Dated: February 13, 2018.
Walter D. Cruickshank,
Acting Director, Bureau of Ocean Energy Management.
[FR Doc. 2018-03278 Filed 2-15-18; 8:45 am]
BILLING CODE 4310-MR-P