[Federal Register Volume 85, Number 29 (Wednesday, February 12, 2020)]
[Notices]
[Pages 8010-8017]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-02716]


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DEPARTMENT OF THE INTERIOR

Bureau of Ocean Energy Management

[Docket No. BOEM-2019-0046]


Gulf of Mexico Outer Continental Shelf Region-Wide Oil and Gas 
Lease Sale 254

AGENCY: Bureau of Ocean Energy Management, Interior.

ACTION: Final notice of sale.

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

SUMMARY: On Wednesday, March 18, 2020, 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 254 (GOM Region-wide Sale 
254), in accordance with the provisions of the Outer Continental Shelf 
Lands Act, as amended, and the implementing regulations issued pursuant 
thereto. The GOM Region-wide Sale 254 Final Notice of Sale (NOS) 
package contains information essential to potential bidders, and 
consists of the NOS, information to lessees, and lease stipulations.

DATES: BOEM will hold GOM Region-wide Sale 254 at 9:00 a.m. on 
Wednesday, March 18, 2020. All times referred to in this document are 
Central time, unless otherwise specified.
    Bid submission deadline: BOEM must receive all sealed bids between 
8:00 a.m. and 4:00 p.m. on normal working days prior to the sale, or 
from 8:00 a.m. until the bid submission deadline of 10:00 a.m. on 
Tuesday, March 17, 2020, the day before the lease sale. For more 
information on bid submission, see Section VII, ``Bidding 
Instructions.''

ADDRESSES: Bids will be accepted prior to the bid submission deadline 
at 1201 Elmwood Park Boulevard, New Orleans, Louisiana 70123. Public 
bid reading for GOM Region-wide Sale 254 will be held at 1201 Elmwood 
Park Boulevard, New Orleans, Louisiana, but the venue will not be open 
to the general public, media, or industry during bid opening or 
reading. Bid opening will be available for public viewing on BOEM's 
website at www.boem.gov/Sale-254 via live-streaming video beginning at 
9:00 a.m. on the date of the sale. The results will be posted on BOEM's 
website upon completion of bid opening and reading. Interested parties 
can download the Final NOS package from BOEM's website at http://www.boem.gov/Sale-254/. Copies of the sale maps can be obtained by 
contacting the BOEM GOM Region: 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 FURTHER INFORMATION CONTACT: Susan Erin O'Reilly Vaughan, Chief, 
Leasing and Financial Responsibility, Office of Leasing and Plans, 504-
736-1759, erin.o'[email protected] or Wright Jay Frank, Chief, Leasing 
Policy and Management Division, 703-787-1325, [email protected].

Table of Contents

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 below in ``Blocks Not Offered for Leasing.''
    Blocks Not Offered for Leasing: The following whole and partial 
blocks are not offered for lease in this sale. Official Protraction 
Diagrams (OPDs) and Supplemental Official Block Diagrams are available 
online at https://www.boem.gov/Maps-and-GIS-Data/.
     Flower Garden Banks National Marine Sanctuary (East and 
West Flower Garden Banks and Stetson Bank):

[[Page 8011]]



------------------------------------------------------------------------
             Area                              OCS block
------------------------------------------------------------------------
High Island, East Addition,    Whole Block: A-398.
 South Extension (Leasing Map  Partial Blocks: A-366, A-367, A-374, A-
 TX7C).                         375, A-383, A-384, A-385, A-388, A-389,
                                A-397, A-399, A-401.
High Island, South Addition    Partial Blocks: A-502, A-513.
 (Leasing Map TX7B).
Garden Banks (OPD NG 15-02)..  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:

------------------------------------------------------------------------
             Area                              OCS block
------------------------------------------------------------------------
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: 335, 379, 423, 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:

------------------------------------------------------------------------
             Area                              OCS block
------------------------------------------------------------------------
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.
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.
------------------------------------------------------------------------

     Depth-restricted, segregated block portion(s):
    Block 299, Main Pass Area, South and East Addition (as shown on 
Louisiana Leasing Map LA10A), containing 1,125 acres, from the surface 
of the earth down to a subsea depth of 1,900 feet with respect to the 
following described portions: SW\1/4\NE\1/4\; NW\1/4\SE\1/4\NE\1/4\; 
W\1/2\NE\1/4\SE\1/4\NE\1/4\; S\1/2\S\1/2\NW\1/4\NE\1/4\; S\1/2\SW\1/
4\NE\1/4\NE\1/4\; S\1/2\SW\1/4\SE\1/4\NE\1/4\NE\1/4\; N\1/2\SW\1/
4\SE\1/4\ NE\1/4\; SW\1/4\SW\1/4\SE\1/4\NE\1/4\; NW\1/4\SE\1/4\ SE\1/4\ 
NE\1/4\; N\1/2\NW\1/4\SW\1/4\SE\1/4\SE\1/4\NE\1/4\; N\1/2\SE\1/4\SW\1/
4\SE\1/4\NE\1/4\; N\1/2\S\1/2\SE\1/4\SW\1/4\SE\1/4\NE\1/4\; S\1/2\NE\1/
4\NW\1/4\; S\1/2\S\1/2\N\1/2\NE\1/4\NW\1/4\; N\1/2\SE\1/4\NW\1/4\;S\1/
2\SE\1/4\NW\1/4\NW\1/4\; NE\1/4\SE\1/4\ NW\1/4\NW\1/4\; E\1/2\NE\1/
4\SW\1/4\NW\1/4\; N\1/2\SE\1/4\SE\1/4\NW\1/4\; NE\1/4\SW\1/4\SE\1/
4\NW\1/4\; N\1/2\NW\1/4\SW\1/4\SE\1/4\NW\1/4\; SE\1/4\SE\1/4\SE\1/
4\NW\1/4\; E\1/2\SW\1/4\SE\1/4\SE\1/4\NW\1/4\; N\1/2\NW\1/4\NE\1/
4\SW\1/4\NW\1/4\; N\1/2\S\1/2\NW\1/4\NE\1/4\SW\1/4\NW\1/4\; N\1/2\N\1/
2\NE\1/4\NE\1/4\NE\1/4\SW\1/4\; N\1/2\N\1/2\N\1/2\NW\1/4\NW\1/4\SE\1/
4\; N\1/2\N\1/2\NW\1/4\NE\1/4\NW\1/4\SE\1/4\.
     The following whole or partial blocks, whose lease status 
is currently under appeal:

------------------------------------------------------------------------
             Area                              OCS block
------------------------------------------------------------------------
Keathley Canyon (OPD NG15-05)  246, 247, 290, 291, 292, 335, 336.
Vermillion Area (Leasing Map   Partial Block 179.
 LA3).
Atwater Valley (OPD NG16-01).  63.
------------------------------------------------------------------------

     Whole or partial blocks that have received bids in 
previous sales, where the bidder has sought reconsideration of BOEM's 
rejection of the bid, are not offered in this sale, unless the 
reconsideration request is fully resolved at least 30 days prior to 
publication of this Final NOS.
    The list of blocks available can be found under the Sale 254 link 
at https://www.boem.gov/Sale-254 under the Final NOS tab.

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

[[Page 8012]]

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 can be viewed on BOEM's 
website at http://www.boem.gov/BOEM-2005.
    The lease form will be amended to include 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 five years; the lessee
                              may earn an additional three years (i.e.,
                              for an eight-year extended primary term)
                              if a well is spudded targeting
                              hydrocarbons below 25,000 feet True
                              Vertical Depth Subsea (TVDSS) during the
                              first five years of the lease.
400 to <800................  The primary term is five years; the lessee
                              will earn an additional three years (i.e.,
                              for an eight-year extended primary term)
                              if a well is spudded during the first five
                              years of the lease.
800 to <1,600..............  The primary term is seven years; the lessee
                              will earn an additional three years (i.e.,
                              for a 10-year extended primary term) if a
                              well is spudded during the first seven
                              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 five years. If the lessee 
spuds a well targeting hydrocarbons below 25,000 feet TVDSS within the 
first five years of the lease, then the lessee may earn an additional 
three years, resulting in an eight-year primary term. The lessee will 
earn the eight-year primary term when the well is drilled to a target 
below 25,000 feet TVDSS, or the lessee may earn the eight-year primary 
term in cases where the well targets, but does not reach a depth below 
25,000 feet TVDSS due to mechanical or safety reasons, and where the 
lessee provides sufficient evidence that it did not reach that target 
for reasons beyond the lessee's control. To earn the eight-year 
extended primary term, the lessee is required to submit a letter to the 
BOEM GOM Regional Supervisor, Office of Leasing and Plans, as soon as 
practicable, but no more than 30 days after completion of the drilling 
operation, providing the well number, spud date, information 
demonstrating a target below 25,000 feet TVDSS 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 TVDSS. This letter must request confirmation that the 
lessee earned the eight-year primary term. 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 accordingly update BOEM's records. The 
extended primary term is not effective unless and until the lessee 
receives confirmation from BOEM.
    A lessee that has earned the eight-year primary term by spudding a 
well with a hydrocarbon target below 25,000 feet TVDSS during the 
standard five-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 five years. 
If the lessee spuds a well within the five-year primary term of the 
lease, the lessee will earn an additional three years, resulting in an 
eight-year primary term.
    To earn the eight-year primary term, the lessee is required to 
submit a letter to the BOEM GOM Regional Supervisor, Office of Leasing 
and Plans, as soon as practicable, but no more than 30 days after 
spudding a well, providing the well number and spud date, and 
requesting confirmation that the lessee has earned the eight-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 accordingly update BOEM's records. The extended primary term is not 
effective unless and until the lessee receives confirmation from BOEM.
    (3) The 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 seven 
years. If the lessee spuds a well within the seven-year primary term, 
the lessee will earn an additional three years, resulting in a ten-year 
extended primary term.
    To earn the 10-year primary term, the lessee is required to submit 
a letter to the BOEM GOM Regional Supervisor, Office of Leasing and 
Plans, as soon as practicable, but no more than 30 days after spudding 
a well, providing the well number and spud date, and requesting 
confirmation that the lessee has 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 accordingly 
update BOEM's records. The extended primary term is not effective 
unless and until the lessee receives confirmation from BOEM.
    (4) The primary term 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
    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, 
as described below.
     $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.

[[Page 8013]]

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 Eight-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 eight-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 
TVDSS 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
    Pursuant to 30 CFR part 203, regulations implementing the 
requirements of the Energy Policy Act of 2005 (Pub. L. 109-58, 119 
Stat. 594 (2005)), certain leases issued as a result of this sale may 
be eligible for RSV incentives on gas produced from ultra-deep wells. 
Under this program, wells on leases in less than 400 meters water depth 
and completed to a drilling depth of 20,000 feet TVDSS or deeper 
receive an 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 regulations 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) 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, on applicable blocks 
as identified on the map ``Gulf of Mexico Region-wide Oil and Gas Lease 
Sale 254, March 18, 2020, Stipulations and Deferred Blocks'' included 
in the Final NOS package. The full 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) Restrictions due to Rights-of-Use and Easement for Floating 
Production Facilities

V. Information to Lessees

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

(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 Inspection and 
Enforcement of Certain U.S. Coast Guard 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 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 can be viewed on BOEM's 
website at http://www.boem.gov/Sale-254/. The following maps are also 
included in the Final NOS package:

[[Page 8014]]

Lease Terms and Economic Conditions Map

    The lease terms and economic conditions associated with leases of 
certain blocks are shown on the map entitled ``Gulf of Mexico Region-
wide Oil and Gas Lease Sale 254, March 18, 2020, 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 ``Gulf of Mexico Region-wide Oil and Gas Lease Sale 
254, March 18, 2020, 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. Prior to bid submittal, bidders submitting 
their bid(s) in person are advised to email [email protected] 
to provide the names of the company representative(s) submitting the 
bid(s). Instructions on how to submit a bid, secure payment of the 
advance bonus bid deposit (if applicable), and the information to 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 
percent);
     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 the requirement 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 and first year's rental upon 
BOEM's acceptance of the bid as the high bid.
    The information required for each bid is specified in the document 
``Bid Form'' that is available in the Final NOS package, which can be 
found at http://www.boem.gov/Sale-254/. A blank bid form is provided in 
the Final NOS package for convenience and can 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 254, not to be 
opened until 9 a.m. Wednesday, March 18, 2020:''
     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 254. Please Deliver 
to Mrs. Bridgette Duplantis or Mr. Greg Purvis, 2nd Floor, Immediately.
    Please Note: Bidders mailing bid(s) are advised to inform BOEM by 
email at [email protected] immediately after placing bid(s) 
in the mail. This provides advance notice to BOEM regarding pending 
bids prior to the bid submission deadline. However, if BOEM receives 
bids later than the bid submission deadline, the BOEM GOM Regional 
Director 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 OCS oil and gas lease record title 
holders, 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.
    Please provide, at the time of bid submittal, a confirmation or 
tracking number for an EFT payment, the name of the company submitting 
the payment as it appears on the payment, and the date the payment was 
submitted so BOEM can confirm payment with the Office of Natural 
Resources Revenue (ONRR). Submitting payment to the bidders' financial 
institution at least five business days prior to bid submittal helps 
ensure that the Office of Foreign Assets Control and the U.S. 
Department of the Treasury (U.S. Treasury) have the needed time to 
screen and process payments so they are posted to ONRR prior to placing 
the bid. ONRR cannot confirm payment until the monies have been moved 
into settlement status by the U.S. Treasury. Bids will not be accepted 
if BOEM cannot confirm payment with ONRR. For more information on EFT 
procedures, see Section X of this document entitled, ``The Lease 
Sale.''
    If providing a third-party guarantee, amending an area-wide 
development bond via bond rider, or providing a letter of credit to 
secure your one-fifth bonus bid deposit, bidders are urged to file the 
same documents with BOEM, well in advance of submitting the bid, to 
allow processing time and for bidders to take any necessary curative 
actions prior to bid submission.

Affirmative Action

    Prior to bidding, each bidder should file the Equal Opportunity 
Affirmative Action Representation Form BOEM-2032 (October 2011, 
available on BOEM's website at http://www.boem.gov/BOEM-2032/) and each 
bidder must file the Equal Opportunity Compliance Report Certification 
Form BOEM-2033 (October 2011, available on BOEM's website at http://www.boem.gov/BOEM-2033/) with the BOEM GOM Adjudication Section. This 
certification is required by 41 CFR part 60 and Executive Order (E.O.) 
11246, issued September 24, 1965, as amended by E.O. 11375, issued 
October 13, 1967, and by Executive Order 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) A ``Statement'' page that includes the company representatives' 
information and lists of blocks bid on that used proprietary data and 
those blocks bid upon that did not use proprietary data;

[[Page 8015]]

    (2) A ``Table'' listing the required data about each proprietary 
survey used (see below); and
    (3) ``Maps,'' which contain the live trace maps for each 
proprietary survey that is identified in the GDIS statement and table.
    Every bidder submitting a bid on a block in GOM Region-wide Sale 
254 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 bidder or bidders must submit the GDIS in a separate sealed 
envelope, and must identify all proprietary data; reprocessed 
speculative data, and/or any Controlled Source Electromagnetic surveys, 
Amplitude Versus Offset (AVO) data, 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(s) must also include a live 
trace map (e.g., .pdf and ArcGIS shapefile) for each proprietary survey 
identified in the GDIS illustrating the actual areal extent of the 
proprietary geophysical data in the survey (see the ``Example of 
Preferred Format'' that is included in the Final NOS package for 
additional information). The shape file must not include cultural 
resources information; only the live trace map of the survey itself.
    The GDIS statement must include the name, phone number, and full 
address for 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. Bidders must submit the GDIS statement even if no proprietary 
geophysical data and information were used in bid preparation for the 
block.
    An example of the preferred format of the table is included in the 
Final NOS package, and a blank digital version of the preferred table 
can be accessed on the GOM Region-wide Sale 254 web page at http://www.boem.gov/Sale-254. The GDIS table should have columns that clearly 
state the following:
     The sale number;
     The bidder company's name;
     The joint bidder's company's name (if applicable);
     The company providing Proprietary Data to BOEM;
     The block area and block number bid upon;
     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; time or depth);
     The 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);
     The live proprietary survey coverage (2-D miles; 3-D 
blocks);
     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;
     Date the final reprocessing was completed (month and 
year);
     If data were previously sent to BOEM, list the sale number 
and date of the sale for which it was used;
     Whether proprietary or speculative AVO/AVA (PROP/SPEC) was 
used;
     Date AVO or AVA was sent to BOEM if sent prior to the 
sale;
     Whether AVO/AVA is time or depth (PSTM or PSDM);
     Which angled stacks were used (e.g., NEAR, MID, FAR, 
ULTRAFAR);
     Whether the company used Gathers to evaluate the block in 
question; and
     Whether the company used Vector Offset Output (VOO) or 
Vector Image Partitions (VIP) to evaluate the block in question.
    BOEM will use the computer storage size information to estimate the 
reproduction costs for each data set, if applicable. BOEM will 
determine the availability of reimbursement of production costs 
consistent with 30 CFR 551.13.
    BOEM reserves the right to inquire about alternate data sets, to 
perform quality checks, 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. See the ``Example of Preferred 
Format'' that is included in the Final NOS package.
    The GDIS maps are live trace maps (e.g., .pdf and ArcGIS 
shapefiles) that bidders should submit for each proprietary survey 
identified in the GDIS table. The maps should illustrate the actual 
areal extent of the proprietary geophysical data in the survey (see the 
``Example of Preferred Format'' that is included in the Final NOS 
package for additional information). As previously stated, the 
shapefile must not include cultural resources 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 GOM Regional Director (RD) requests that all bidders and 
joint bidders submit the proprietary data identified on their GDIS 
within 30 days after the lease sale (unless 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 should not be submitted to BOEM unless specifically 
requested by BOEM. The BOEM GOM 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. Where the BOEM GOM RD has notified bidders and joint bidders that 
the request for such proprietary data has been withdrawn, reimbursement 
will not be provided. 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 are 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, Louisiana 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 254 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) 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

[[Page 8016]]

an entity's records. The website for registering is gsa.gov/iaesystems.
    (2) Must be enrolled in the U.S. 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 submitting a request for 
payment, the assigned Purchase Order Number must be included.
    (3) Must have a current On-line Representations and Certifications 
Application at gsa.gov/iaesystems.
    Please Note: A digital as well as a printed copy should be sent in 
for the GDIS Statement, Table and Maps. The GDIS Statement should be 
sent in as a digital PDF. The GDIS Information Table must be submitted 
digitally as an Excel spreadsheet. The Proprietary Maps should be sent 
in as PDF files and the live trace outline of each proprietary survey 
should also be submitted as a shapefile. Bidder may submit the digital 
files on a CD, DVD, or any USB external drive (formatted for Windows). 
If bidders have any questions, please contact Ms. Dee Smith at (504) 
736-2706, or Ms. Teree Campbell at (504) 736-3231.
    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 submittal. 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 556.107, 30 CFR 556.401, 30 CFR 556.501, and 30 CFR 
556.513.

VIII. Bidding Rules and Restrictions

Restricted Joint Bidders

    On November 5, 2019, BOEM published the most recent List of 
Restricted Joint Bidders in the Federal Register at 84 FR 59644. 
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 
regulations 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 apparent high bids. A statement to this effect 
is included on each bid form (see the document ``Bid Form'' that is 
included in the Final NOS package).

Unlawful Combination or Intimidation

    BOEM warns bidders against violation of 18 U.S.C. 1860, which 
prohibits 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 by 
one or more of the representatives named in the BOEM qualification 
records. The name and title of the authorized signatory must be typed 
under the signature block on the withdrawal request. The BOEM GOM RD, 
or the RD's designee, will indicate approval by signing and dating the 
withdrawal request.

Bid Rounding

    Minimum bonus bid calculations, including rounding, for all blocks, 
are 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 rounded up to the 
next whole acre. The appropriate minimum rate per acre was then applied 
to the whole (rounded up) acreage. The bonus bid amount must be greater 
than or equal to the minimum bonus bid so calculated and stated in the 
Final NOS package.

IX. Forms

    The Final NOS package includes instructions, samples, and/or the 
preferred format for the items listed below. 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 and ADDRESSES 
sections 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 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 can be obtained on the BOEM website at http://www.boem.gov/Sale-254 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 electronically deposited into an interest-bearing account in 
the U.S. Treasury by 1:00 p.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.
    Submitting payment to your financial institution as soon as 
possible the day of bid reading, but no later than 7:00 p.m. Eastern 
Time the day of bid reading, will help ensure that deposits have time 
to process through the U.S. Treasury and post to ONRR. ONRR cannot 
confirm payment until the monies have been moved into settlement status 
by the U.S. Treasury.
    BOEM requires bidders to use EFT procedures for payment of one-
fifth bonus bid deposits for GOM Region-wide Sale 254, following the 
detailed instructions contained on the ONRR Payment Information web 
page at https://www.onrr.gov/ReportPay/payments.htm. Acceptance of a 
deposit does not constitute, and will not be

[[Page 8017]]

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 applicable regulations and 
requirements of the Final NOS, including those set forth in the 
documents contained in the Final NOS package;
    (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 United 
States 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 254

    To ensure that the U.S. Government receives a fair return for the 
conveyance of leases from this sale, BOEM will evaluate high bids in 
accordance with its bid adequacy procedures, which are available on 
BOEM's website 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 complete the 
following:
    (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. Once ONRR 
receives such payment, the bidder awarded the lease may not request a 
refund of the balance of the bonus bid amount or first year's rental 
payment.

XI. Delay of Sale

    The BOEM GOM 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 GOM RD deems could interfere with a fair and orderly 
lease sale process. Such events could include, but are not limited to, 
natural disasters (e.g., earthquakes, hurricanes, 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.

Walter D. Cruickshank,
Acting Director, Bureau of Ocean Energy Management.
[FR Doc. 2020-02716 Filed 2-11-20; 8:45 am]
 BILLING CODE 4310-MR-P