[Federal Register Volume 88, Number 222 (Monday, November 20, 2023)]
[Notices]
[Pages 80750-80760]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-25634]


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DEPARTMENT OF THE INTERIOR

Bureau of Ocean Energy Management

[Docket No. BOEM-2023-0013]


Gulf of Mexico Outer Continental Shelf Oil and Gas Lease Sale 261

AGENCY: Bureau of Ocean Energy Management, Interior.

ACTION: Revised final notice of sale.

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

SUMMARY: On Wednesday, December 20, 2023, 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) Oil and Gas Lease Sale 261 (GOM Lease Sale 261), in accordance 
with the Outer Continental Shelf Lands Act (OCSLA), as amended, and its 
implementing regulations. This revised GOM Lease Sale 261 Final Notice 
of Sale (Final NOS) package contains information

[[Page 80751]]

essential to potential bidders and comprises this notice, Information 
to Lessees, and Lease Stipulations. Bids submitted under the Revised 
Final NOS published on October 6, 2023 (see SUPPLEMENTARY INFORMATION 
below) will be held and opened on December 20, 2023, unless the bidders 
withdraw their bid or bids in accordance with the bid withdrawal 
procedures described in Section VIII--``Bid Withdrawal.''

DATES: BOEM will hold GOM Lease Sale 261 at 9 a.m. on Wednesday, 
December 20, 2023. All times referred to in this document are Central 
time, unless otherwise specified.
    Bid submission deadline: BOEM must receive all sealed bids prior to 
the Bid Submission Deadline of 10 a.m. on Tuesday, December 19, 2023, 
the day before the lease sale. For more information on bid submission, 
see Section VII of this document, ``Bidding Instructions.''

ADDRESSES: Bids will be accepted by MAIL ONLY through any parcel 
delivery service (e.g., FedEx, UPS, U.S. Postal Service, DHL), prior to 
the bid submission deadline, at 1201 Elmwood Park Boulevard, New 
Orleans, Louisiana 70123. Public bid reading for GOM Lease Sale 261 
will be held at 1201 Elmwood Park Boulevard, New Orleans, Louisiana. 
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 https://www.boem.gov/Sale-261/ 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 may download the Final NOS package from 
BOEM's website at https://www.boem.gov/Sale-261/. 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:  The New Orleans Office Lease Sale 
Coordinator, Greg Purvis, at [email protected] or 504-736-
1729.

SUPPLEMENTARY INFORMATION: The Inflation Reduction Act of 2022 (IRA) 
directed BOEM to hold GOM Lease Sale 261 by September 30, 2023. On 
August 25, 2023, BOEM published in the Federal Register the Final NOS 
for Lease Sale 261, which originally scheduled GOM Lease Sale 261 for 
September 27, 2023, in compliance with the IRA. See 88 FR 58310.\1\ Two 
lawsuits then challenged the Final NOS in the U.S. District Court for 
the Western District of Louisiana. To implement the Memorandum Order 
\2\ issued by the U.S. District Court for the Western District of 
Louisiana on September 21, 2023 (Case No. 2:23-CV-01157), and a 
subsequent order \3\ issued by the U.S. Court of Appeals for the Fifth 
Circuit on September 26, 2023 (Case No. 23-30666), BOEM published a 
revised Final Notice of Sale on October 6, 2023, which rescheduled the 
sale, revised the sale area to include the blocks that were the subject 
of the courts' orders, modified the Lease Stipulations to remove the 
protected species language that was the subject of the courts' orders, 
updated the Information to Lessees, published a revised List of 
Available Blocks, and published new maps related to the sale. See 88 FR 
69660. However, on October 26, 2023, the Fifth Circuit stayed the 
injunction that required BOEM to hold the sale by November 8. In light 
of the October 26 order, BOEM announced it was postponing the sale 
pending additional disposition of the appeal and additional direction 
from the Fifth Circuit. See 88 FR 77363. The Fifth Circuit issued an 
opinion and mandate on November 14, 2023, directing BOEM to hold the 
sale in accordance with the district court's preliminary injunction but 
extending the deadline for conducting the sale by 37 days from the date 
of the mandate.
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    \1\ https://www.federalregister.gov/documents/2023/08/25/2023-18342/gulf-of-mexico-outer-continental-shelf-oil-and-gas-lease-sale-261.
    \2\ https://www.courtlistener.com/docket/67727401/82/state-of-louisiana-v-haaland/.
    \3\ https://www.boem.gov/sites/default/files/documents/oil-gas-energy/leasing/23-30666_order.pdf.
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    Thus, in accordance with the Fifth Circuit's mandate and opinion, 
this revised Final NOS and associated documents provide notice to the 
public and potential bidders of the updated timing for Lease Sale 261 
and makes no additional changes to the revised Final NOS published on 
October 6, 2023.
    BOEM advises bidders that Lease Sale 261 is the subject of ongoing 
litigation in the U.S. District Court for the District of Columbia and 
the U.S. District Court of the Western District of Louisiana.
    Authority: This revised notice of sale is published pursuant to 43 
U.S.C. 1331 et seq. (Outer Continental Shelf Lands Act, as amended) and 
30 CFR 556.308(a).

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 OCS as identified 
on the map, ``Final Notice of Sale, Gulf of Mexico OCS Oil and Gas 
Lease Sale 261, December 2023, Final Sale Area'' (https://www.boem.gov/Sale-261/), except those blocks listed below in ``Blocks Not Offered 
for Leasing.'' Please note that, in compliance with the aforementioned 
court orders, the expanded Rice's whale area (whole and partial blocks 
between the 100 meter (m) and 400 m isobaths across the northern GOM 
OCS, eastward from the Mexican border with Texas and westward from the 
eastern edge of the Central Planning Area) that was previously excluded 
from the sale is now included in Lease Sale 261, unless such blocks are 
otherwise subject to a separate exclusion not addressed by the District 
Court's injunction and listed below.
    Blocks Not Offered for Leasing: BOEM will exclude the following 
whole and partial blocks from this sale. The BOEM Official Protraction 
Diagrams (OPDs) and Supplemental OPDs are available online at https://www.boem.gov/oil-gas-energy/mapping-and-data.
     Whole and Partial Blocks withdrawn from leasing by 
Presidential Withdrawal in the September 8, 2020, Memorandum on the 
Withdrawal of Certain Areas of the United States Outer Continental 
Shelf from Leasing Disposition:

------------------------------------------------------------------------
       GOM protraction areas                        Block
------------------------------------------------------------------------
Pensacola (Leasing Map NH 16-05)..  Whole Blocks: 751-754, 793-798, 837-
                                     842, 881-886, 925-930, 969-975.

[[Page 80752]]

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

     Whole and Partial Blocks within the boundary of the Flower 
Garden Banks National Marine Sanctuary (East and West Flower Garden 
Banks and the Stetson Bank) as of the July 14, 2008, Memorandum on 
Modification of the Withdrawal of Areas of United States Outer 
Continental Shelf from Leasing Disposition:

------------------------------------------------------------------------
       GOM protraction areas                        Block
------------------------------------------------------------------------
High Island, East Addition, South   Whole Block: A-398.
 Extension (Leasing Map TX7C).      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         Partial Blocks: A-502, A-513.
 (Leasing Map TX7B).
------------------------------------------------------------------------

     Whole and Partial Blocks that are adjacent to or beyond 
the U.S. Exclusive Economic Zone in the area known as the northern 
portion of the Eastern Gap:

------------------------------------------------------------------------
       GOM protraction areas                        Block
------------------------------------------------------------------------
Lund South (Leasing Map NG 16-07).  Whole Blocks: 128, 129, 169-173, 208-
                                     217, 248-261, 293-305, 349.
Henderson (Leasing Map NG 16-05)..  Whole Blocks: 466, 508-510, 551-554,
                                     594-599, 637-643, 679-687, 722-731,
                                     764-775, 807-819, 849-862, 891-905,
                                     933-949, 975-992.
                                    Partial Blocks: 335, 379, 423, 467,
                                     511, 555, 556, 600, 644, 688, 732,
                                     776, 777, 820, 821, 863, 864, 906,
                                     907, 950, 993, 994.
Florida Plain (Leasing Map NG 16-   Whole Blocks: 5-24, 46-67, 89-110,
 08).                                133-154, 177-197, 221-240, 265-283,
                                     309-327, 363-370.
------------------------------------------------------------------------

     Depth-restricted, segregated block portion(s). The current 
block meeting this criterion is: 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\

     Whole and Partial Blocks that were previously subject to 
the Blocks South of Baldwin County, Alabama, Stipulation:

------------------------------------------------------------------------
       GOM protraction areas                       Blocks
------------------------------------------------------------------------
Mobile (Leasing Map NH16-04)......  826-830, 869-874, 913-918, 957-962,
                                     1001-1006.
Viosca Knoll (Leasing Map NH 16-    33-35.
 07).
------------------------------------------------------------------------

     Whole and Partial Blocks that were previously subject to 
the Topographic Features Stipulation:

------------------------------------------------------------------------
       GOM protraction area                        Blocks
------------------------------------------------------------------------
East Breaks (Leasing Map NG 15-01)  121-124, 165-168, 173, 217.
East Cameron Area (Leasing Map      361-363, 377-379.
 LA2).
Eugene Island Area (Leasing Map     335, 355-356, 381-383, 390-391, 397.
 LA4).
Ewing Bank (Leasing Map NH 15-12).  903, 932-933, 944-945, 947, 975-977.
Garden Banks (Leasing Map NG 15-    26-31, 33, 61-63, 70-77, 81-85, 95-
 02).                                98, 102-110, 119-121, 126-128, 133-
                                     136, 138-146, 148-155, 177-180, 192-
                                     198, 237-239.
Green Canyon (Leasing Map NG 15-    4-7, 49-50, 90.
 03).

[[Page 80753]]

 
High Island Area, East Addition     A446-A448, A463-A465, A486-A488,
 (Leasing Map TX7A).                 A501-A503, A512-A514, A527-A529,
                                     A534-A535, A573, A578-A580, A589-
                                     A591, A596.
High Island Area, East Addition,    A311-312, A 327-A 332, A 340, A 346-
 South Extension (Leasing Map        A403.
 TX7C).
Mississippi Canyon (Leasing Map NH  316.
 16-10).
Mustang Island Area (Leasing Map    A3-4, A9, A16, A54, A61-A62, A86-
 TX3).                               A87, A95, A117-A118, A136-A137.
North Padre Island Area (Leasing    PN A30-A31, A40-A41, A72, A83-A84
 Map TX2).
South Marsh Island Area, North      161-163, 169-173, 176-180, 185-188,
 Addition (Leasing Map LA3D)..       193-197, 200-204.
Ship Shoal Area (Leasing Map LA5).  325-329, 334-339, 348-353, 356-359.
South Timbalier Area (Leasing Map   314-317.
 LA6).
Vermilion Area (Leasing Map LA3)..  284-286, 297-300, 303-306, 317-320,
                                     361-363, 369-372, 382-396, 403-412.
West Cameron Area (Leasing Map      569-570, 589-592, 611-614, 633-638,
 LA1).                               645-646, 648-663.
West Delta Area (Leasing Map LA8).  147-148.
------------------------------------------------------------------------

     Whole blocks that contain banks that are adjacent to 
blocks previously included in the Topographic Features Stipulation:

------------------------------------------------------------------------
       GOM protraction area                        Blocks
------------------------------------------------------------------------
Garden Banks (Leasing Map NG 15-    181.
 02).
------------------------------------------------------------------------

     Whole and Partial Blocks that were previously subject to 
the Live Bottom (Pinnacle Trend) Stipulation:

------------------------------------------------------------------------
       GOM protraction area                        Blocks
------------------------------------------------------------------------
Main Pass Area, South and East      190, 194, 198, 219-226, 244-266, 276-
 Addition (Leasing Map LA10A).       290.
Viosca Knoll (Leasing Map NH 16-    473-476, 521-522, 564-566, 610, 654,
 07).                                692-698, 734, 778.
------------------------------------------------------------------------

     Whole and partial blocks identified as either Wind Energy 
Area Options (Areas A, B, C, D, E, F, G, H)) or final Wind Energy Areas 
(Areas I, J, K, L, M and N):

------------------------------------------------------------------------
       GOM protraction area                        Blocks
------------------------------------------------------------------------
Brazos Area (Leasing Map TX5).....  430, 457-459, 466-468, 572-575, 580-
                                     584, 609-614, A22, A28-A29, A3, A30-
                                     A35, A42-A43.
Brazos Area, South Addition         A102-A105, A46-A48, A55-A58, A60-
 (Leasing Map TX5B).                 A61, A73-A74.
East Cameron Area (Leasing Map      96-106, 113-124.
 LA2).
Galveston Area (Leasing Map TX6)..  237, 258-259, 265-268, 286-291, 293-
                                     299, 317-327, 350-356, 386-387, 427-
                                     429, 460-462, 464-465, A1-A9, A10-
                                     A35, A40-A49, A62-A77, A84-A86, A91-
                                     A94, A97-A99, A103-A105, A110-A113.
Galveston Area, South Addition      A114-A119, A138-A139, A140-A148,
 (Leasing Map TX6A).                 A169-A174, A203.
High Island Area (Leasing Map TX7)  235-236, 260-261, 263-264, 292, A2-
                                     A4, A11-A15, A27-A31, A62-A64, A66-
                                     A68, A70-A90, A92-A99, A100-A111,
                                     A113-A116, A118-A142, A144-A152,
                                     A156-A163, A165-A166.
High Island Area, East Addition     A170-A174, A177-A182, A187-A193,
 (Leasing Map TX7A).                 A195-A199, A202-A209, A211-A213,
                                     A216-217, A220-A228, A233-A241,
                                     A250-A251.
High Island Area, South Addition    A404-A405, A408-A413, A420-A425,
 (Leasing Map TX7B).                 A428-A431, A434-A439, A454-A457,
                                     A480-A481.
Matagorda Island Area (Leasing Map  639-642, 646-649, 673-678, A1, A3,
 TX4).                               A4.
Mustang Island Area (Leasing Map    803-804, 810-812, 826-828, 832-834,
 TX3).                               847-849, 853-854.
South Padre Island Area, East       1078, 1097-1098, 1117-1119, A35-A36,
 Addition (Leasing Map TX1A).        A46-A52, A59-A64.
West Cameron Area (Leasing Map      188-190, 195-196, 205-213, 224-230,
 LA1).                               241-245, 256.
West Cameron Area, West Addition    302-303, 314-318, 328-334, 343-352,
 (Leasing Map LA1A).                 359-360, 362-364, 372-379, 393-396,
                                     398-400.
------------------------------------------------------------------------


[[Page 80754]]

     Whole and Partial BOEM-designated Significant Sediment 
Resource Area Blocks:

------------------------------------------------------------------------
       GOM protraction area                        Blocks
------------------------------------------------------------------------
Bay Marchand Area (Leasing Map      2-5.
 LA6C).
Breton Sound Area (Leasing Map      24, 25, 39, 41-44, 53-56.
 LA10B).
Chandeleur Area (Leasing Map LA11)  1, 4, 5, 8, 16, 28, 30-34.
Eugene Island Area (Leasing Map     10, 18-35, 37-96, 111, 112.
 LA4).
Galveston Area (Leasing Map TX6)..  265, 290, 291, 293, 294, 295, 322.
Galveston Area, South Addition      1A, 2A, 3A, 4A, 5A.
 (Leasing Map TX6A).
Grand Isle Area (Leasing Map LA7).  15, 25.
High Island Area (Leasing Map TX7)  19-21, 35-39, 45-49, 60-65, 69-76,
                                     83-91, 111-119, 131-137, 158-164,
                                     171-175, 196-205, 230-234, 261-264,
                                     292, A6-A10, A16-A22, A37-A42, A60-
                                     A65.
High Island Area, East Addition     6, 10, 38-42, 45, 46, 60-65, 74-76,
 (Leasing Map TX7A).                 83, 84, 85.
Mobile (Leasing Map NH 16-04).....  765-767, 778, 779, 809-824, 826-830,
                                     853-874, 897-918, 942, 946, 947,
                                     954-962, 991, 999-1006.
Main Pass Area (Leasing Map LA10).  6, 39-44, 58-60, 86-90, 92-120, 125-
                                     129, 139.
Main Pass, South and East Addition  161, 162, 180, 181.
 (Leasing Map LA10A).
South Pelto Area (Leasing Map       1-20, 23-25.
 LA6B).
Sabine Pass Area (LA) (Leasing Map  8-16.
 LA12).
South Marsh Island Area, North      207-237, 241-249, 259-261, 267, 268.
 Addition (Leasing Map LA3D).
Ship Shoal Area (Leasing Map LA5).  24-26, 37, 38, 63-75, 84-100, 107-
                                     114, 119, 120.
South Timbalier Area (Leasing Map   9-11, 16-18, 34, 51, 52, 54, 55, 66,
 LA6).                               67, 72.
Sabine Pass Area (TX) (Leasing Map  9, 17, 18, 40, 44.
 TX8).
Viosca Knoll (Leasing Map NH 16-    23, 34-38, 67, 78-82, 111, 155.
 07).
Vermilion Area (Leasing Map LA3)..  11, 30, 49, 51-54, 68-77, 86-96, 108-
                                     111.
West Cameron Area (Leasing Map      20-22, 41-45, 56-60, 78-83, 90-95,
 LA1).                               113-118, 128-134, 146-150, 153-157,
                                     160, 161, 162, 168-172, 181.
West Cameron Area, West Addition    154-157, 160-162, 287.
 (Leasing Map LA1A).
West Delta Area (Leasing Map LA8).  20-31, 32, 43-50, 56-61.
------------------------------------------------------------------------

    The final list of blocks available for bid is posted on BOEM's 
website at https://www.boem.gov/Sale-261/ under the Final NOS tab.

II. Statutes and Regulations

    Each lease is issued pursuant to OCSLA, 43 U.S.C. 1331 et seq., 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 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.
    BOEM reserves the right to reject any and all bids received, 
regardless of the amount offered (see 30 CFR 556.516).

III. Lease Terms and Economic Conditions

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 https://www.boem.gov/BOEM-2005. The lease form will be 
amended to include specific terms, conditions, and stipulations 
applicable to the individual lease. The final terms, conditions, and 
stipulations applicable to this sale are below.

Primary Terms

    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
                                     (TVDSS) 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+..............................  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 TVDSS within the first 
5 years of the lease, then

[[Page 80755]]

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 TVDSS; 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 TVDSS due to mechanical or safety 
reasons that are beyond the lessee's control, and that are supported by 
sufficient evidence from the lessee. To earn the 8-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 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 or mechanical reasons encountered that prevented 
the well from reaching a depth below 25,000 feet TVDSS. In the letter, 
the lessee must request confirmation from BOEM that the lessee earned 
the 8-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 8-year primary term by spudding a 
well with a hydrocarbon target below 25,000 feet TVDSS 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 may earn an additional 3 years, resulting in an 8-year 
primary term. To earn the 8-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 from BOEM 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 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 800 meters or 
deeper issued as a result of this sale is 10 years.

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 per acre or fraction thereof for blocks in water 
depths less than 400 meters; and
     $100 per acre or fraction thereof for blocks in water 
depths 400 meters or deeper.

Rental Rates

    Annual rental rates, per acre or fraction thereof, are summarized 
in the following table:

----------------------------------------------------------------------------------------------------------------
              Water depth (meters)                   Years 1-5        Year 6          Year 7          Year 8+
----------------------------------------------------------------------------------------------------------------
0 to <200.......................................             $10             $20             $30             $40
200 to <400.....................................              16              32              48              64
400+............................................              16              22              22              22
----------------------------------------------------------------------------------------------------------------

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 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

     18\3/4\ percent for all leases.

Minimum Royalty Rate

     $10 per acre or fraction thereof per year for blocks in 
water depths less than 200 meters; and
     $16 per acre or fraction thereof per year for blocks in 
water depths 200 meters or deeper.

Royalty Suspension Provisions

    The Department may issue leases with Royalty Suspension Volumes 
(RSVs) and other forms of royalty relief under 30 CFR part 560, which 
BOEM administers. The specific details relating to eligibility and 
implementation of RSVs and other royalty relief programs are found at 
30 CFR part 203, which the Bureau of Safety and Environmental 
Enforcement administers. In this sale, the only royalty relief program 
being offered involves RSVs for 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, 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. These 
regulations implement the requirements of the Energy Policy Act of 2005 
(Pub. L. 109-58, 119 Stat. 594 (2005)).

IV. Lease Stipulations

    On September 21, 2023, the U.S. District Court for the Western 
District of Louisiana issued an order \4\ requiring BOEM to modify, for 
purposes of this sale, the version of Stipulation No. 4 originally 
published in the August 2023, Final NOS package. On November 14, 2023, 
the U.S. Court of Appeals for the Fifth Circuit dismissed an appeal 
challenging the aforementioned order and reinstated the September 21 
order of the District Court, with a modified sale deadline. To comply 
with this order, Stipulation No. 4 no longer contains the enhanced 
protection measures for the Rice's whale that previously appeared under 
paragraph

[[Page 80756]]

(B)(4). BOEM has published a revised Lease Stipulations document for 
this sale on its website, available at https://www.boem.gov/Sale-261/.
---------------------------------------------------------------------------

    \4\ https://www.courtlistener.com/docket/67727401/82/state-of-louisiana-v-haaland/.
---------------------------------------------------------------------------

    One or more of the stipulations below may be applied to leases 
issued as a result of this sale. The applicable blocks for each 
stipulation are identified on the map ``Final Notice of Sale, Gulf of 
Mexico OCS Oil and Gas Lease Sale 261, December 2023, 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. BOEM has posted the final list of 
blocks available for bid and the applicable stipulations that apply to 
those blocks on its website at https://www.boem.gov/Sale-261/ under the 
Final NOS tab.

(1) Military Areas
(2) Evacuation
(3) Coordination
(4) Protected Species
(5) United Nations Convention on the Law of the Sea Royalty Payment
(6) Agreement between the United States of America and the United 
Mexican States Concerning Transboundary Hydrocarbon Reservoirs in the 
Gulf of Mexico
(7) Restrictions due to Rights-of-Use and Easement for Floating 
Production Facilities
(8) Royalties on All Produced Gas

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) Expansion of the Flower Garden Banks National Marine Sanctuary
(13) Communication Towers
(14) Deepwater Port Applications (DWP) 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
(20) Provisions Pertaining to Certain Transactions by Foreign Persons 
Involving Real Estate in the United States
(21) Inflation Reduction Act of 2022

VI. Maps

    The maps pertaining to this lease sale can be viewed on BOEM's 
website at https://www.boem.gov/Sale-261/. The following maps also are 
included in the Final NOS package:

Sale Area Map

    The sale area is shown on the map entitled, ``Final Notice of Sale, 
Gulf of Mexico OCS Oil and Gas Lease Sale 261, December 2023, Final 
Sale Area.''

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 Notice of Sale, 
Gulf of Mexico Oil and Gas Lease Sale 261, December 2023, 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 Notice of Sale, Gulf of Mexico OCS Oil and 
Gas Lease Sale 261, December 2023, Stipulations and Deferred Blocks.''

VII. Bidding Instructions

    BOEM will return, unopened, all bids submitted by bidders under the 
previously issued Final NOS if the bidder submits a formal withdrawal 
request as outlined in the Bid Withdrawal procedures. Bidders wishing 
to participate in Lease Sale 261 must submit new bids or resubmit their 
returned bids in accordance with the terms and conditions contained in 
this revised Final NOS.
    Bids may be submitted BY MAIL ONLY through any parcel delivery 
service (e.g., FedEx, UPS, USPS, DHL) at the address below in the 
``Mailed Bids'' section. Bidders should be aware that BOEM has 
eliminated in-person bidding for GOM Lease Sale 261. 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 items:
     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. Electronic signatures are acceptable. The typed 
name, title, and signature must agree exactly with the name and title 
on file in the BOEM Gulf of Mexico OCS Region Adjudication Section;
     Each bidder's BOEM 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 high bids.
    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 https://www.boem.gov/Sale-261/. 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 Lease Sale 261, not to be opened 
until 9 a.m. Wednesday, December 20, 2023'';
     Map name and number or OPD name and number;
     Block number for block bid upon;
     Acreage, if the bid is for a block that is split between 
the Central and Eastern Planning Areas; 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

    Please address the envelope containing the sealed bid envelope(s) 
as follows: Attention: Leasing and

[[Page 80757]]

Financial Responsibility Section, BOEM New Orleans Office, 1201 Elmwood 
Park Boulevard MS-266A, New Orleans, Louisiana 70123-2394, Contains 
Sealed Bids for GOM Lease Sale 261. Please Deliver to Mr. Greg Purvis, 
2nd Floor, Immediately.
    Please Note: Bidders 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. In the email, please state the tracking 
number of the bid package, the number of bids being submitted, and the 
email address of the person who should receive the bid receipt for 
signature. 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) 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 have ever defaulted 
on a one-fifth bonus bid deposit, must guarantee (secure) the payment 
of the one-fifth bonus bid deposit, by Electronic Funds Transfer (EFT) 
or otherwise, prior to bid submission using one of the following four 
methods:
     Provide a third-party guarantee;
     Amend a development stage area-wide 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 the payment, the name of the company submitting the 
payment as it appears on the payment, and the date the payment was 
submitted so that BOEM can confirm payment with the Office of Natural 
Resources Revenue (ONRR). Bidders should submit payments to their 
financial institution at least 5 business days prior to bid submittal 
to ensure that the Office of Foreign Assets Control and the U.S. 
Department of the Treasury (U.S. Treasury) have time to screen and 
process payments and that payments 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 before 10 a.m. on Tuesday, 
December 19, 2023.
    If providing a third-party guarantee, amending a development stage 
area-wide bond via bond rider, or providing a letter of credit to 
secure your one-fifth bonus bid deposit, bidders are urged to file 
these documents with BOEM well in advance of submitting the bid. This 
allows processing time and ensures bidders have time to take any 
necessary curative actions prior to bid submission. For more 
information on EFT procedures, see Section X, ``The Lease Sale.''

Affirmative Action

    Prior to bidding, each bidder should file the Equal Opportunity 
Affirmative Action Representation Form BOEM-2032 (February 2020, 
available on BOEM's website at https://www.boem.gov/BOEM-2032/) and 
Equal Opportunity Compliance Report Certification Form BOEM-2033 
(February 2020, available on BOEM's website at https://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 E.O. 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 separate lists of blocks bid on that used proprietary 
data and those blocks bid upon that did not use proprietary data;
    (2) A ``Table'' listing the required data about each proprietary 
survey used (see below); and
    (3) ``Maps'' that 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 Lease Sale 261 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. Please specify on the outside of the GDIS envelope if 
the information provided is for a joint bid, and if so, include the 
block number and primary bidder (company submitting the bid). 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 and joint bidder must submit the GDIS 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) data, gravity data, and/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 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 must 
also include a list of all blocks bid upon, including those blocks 
where no proprietary or reprocessed geophysical data and/or proprietary 
information was used, as a basis for the bidder's decision to bid or to 
participate as a joint bidder in the bid. All GDIS statements must be 
included with any submitted bids in a separate envelope identified as 
GDIS. All bidders must submit the GDIS statement, even if no 
proprietary geophysical data or information was used in its 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 Lease Sale 261 website at https://www.boem.gov/Sale-261/. 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 that will provide the proprietary geophysical 
survey data to BOEM;
     The block area and block number bid upon;
     The owner of the original data set (e.g., TGS, PGS, WGC, 
CGG, etc.);
     The industry's original name of the survey (e.g., E 
Octopus);
     The BOEM permit number for the survey;

[[Page 80758]]

     Whether the data set is a fast-track version (intermediate 
product that is not final);
     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;
     The date on which the final reprocessing was completed 
(month and year);
     If the data was 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;
     The date on which 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 556.501, as a condition of the sale, 
the BOEM GOM Regional Director 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. No reimbursement will be provided for unsolicited 
data sent to 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 calendar 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. Please 
do not submit proprietary geophysical survey data in the GDIS envelope.
    The proprietary geophysical survey data must be submitted to BOEM 
at the following address within 30 days of the sale as stated above: 
Bureau of Ocean Energy Management, Resource Studies, GM 881A, 1201 
Elmwood Park Blvd., New Orleans, Louisiana 70123-2304.
    The GDIS must be submitted along with your bid envelope to: Leasing 
and Financial Responsibility Section, BOEM New Orleans Office, 1201 
Elmwood Park Boulevard MS-266A, New Orleans, Louisiana 70123-2394. 
Contains Sealed Bids for GOM Lease Sale 261. Please Deliver to Mr. Greg 
Purvis, 2nd Floor, Immediately.
    BOEM recommends that bidders mark the GDIS submission's external 
envelope as ``Deliver Immediately to DASPU.'' BOEM also recommends that 
bidders submit the GDIS in an internal envelope, or otherwise marked, 
with the following designation: ``Geophysical Data and Information 
Statement for Oil and Gas Lease Sale 261'', Company Name, GOM Company 
Qualification Number, and ``Proprietary Data.''
    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 an entity's records. The website for registering is 
https://usfcr.com/register-renew/.
    (2) Must be enrolled in the U.S. Treasury's Invoice Processing 
Platform (IPP) for electronic invoicing; to enroll go to 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 https://usfcr.com/.
    Please Note: Digital copies and duplicate hardcopies should be 
submitted for the GDIS Statement, Table and Maps. The GDIS Statement 
should be sent as a digital PDF. The GDIS Information Table must be 
submitted digitally as an Excel spreadsheet. The Proprietary Maps 
should be sent as PDF files and the live trace outline of each 
proprietary survey should also be submitted as a shapefile. Please 
flatten all layered PDF files, since layered PDFs can have many 
objects. Layered PDFs can cause problems opening or printing the file 
correctly. Bidders 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 the ``Acceptance, Rejection, or Return of 
Bids'' heading under Section X, ``The Lease Sale,'' regarding a 
bidder's failure to comply with the requirements of the Final NOS, 
including any failure to submit information required in the 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 556.107, 556.401, 556.501, and 556.513.

[[Page 80759]]

VIII. Bidding Rules and Restrictions

Restricted Joint Bidders

    On October 6, 2023, BOEM published the Fall 2023 List of Restricted 
Joint Bidders in the Federal Register at 88 FR 69658. Potential bidders 
are advised to refer to the List of Restricted Joint Bidders that is in 
place at the time of the lease sale. Please refer to the joint bidding 
provisions at 30 CFR 556.511-556.515.

Authorized Signatures

    All signatories executing documents on behalf of the 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'' 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 via any parcel delivery service. 
Withdrawals will not be accepted in person or via email. 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'' that 
is 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 be applied to the whole (rounded up) acreage. The bonus bid amount 
must be greater than or equal to the minimum bonus bid, as 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 https://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 https://www.boem.gov/Sale-261/ under the heading ``Notification of EFT \1/5\ 
Bonus Liability'' after 1 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 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.
    Bidders must submit payment to their financial institution as soon 
as possible on the day of bid reading and no later than 7 p.m. Eastern 
Time on the day of bid reading. This 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 Lease Sale 261, following the detailed 
instructions contained on the ONRR Payment Information web page at 
https://www.onrr.gov/paying. 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, 
regardless of the amount offered. Furthermore, 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, OCSLA, or other applicable statutes or regulations 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 any antitrust issues prior to the acceptance of bids and issuance 
of leases.

Bid Adequacy Review Procedures for GOM Lease Sale 261

    To ensure that the U.S. Government receives fair market value for 
the conveyance of leases from this sale, BOEM will evaluate high bids 
in accordance with the bid adequacy procedures that are effective on 
the date of the sale. The bid adequacy procedures are available on 
BOEM's website at https://www.boem.gov/oil-gas-energy/leasing/bid-adequacy-procedures.

Lease Award

    Leases issued as a result of GOM Lease Sale 261 are expressly 
limited to oil and gas exploration and development. As noted in Section 
19 of the lease form, all rights in the leased

[[Page 80760]]

area not expressly granted to the Lessee by the Act, the regulations, 
or this lease are hereby reserved to the Lessor.
    BOEM requires each bidder that is 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 1218.155 and 556.520(a); and
    (3) Satisfy the bonding requirements of 30 CFR part 556, subpart I, 
as amended. ONRR requests that bidders use only one transaction 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 if the RD deems that an 
emergent event could interfere with a fair and orderly lease sale. 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. 
Furthermore, the RD may change the date, time, and/or location of the 
lease sale to comply with court orders. In case of such events, bidders 
should call (504) 736-0557 or access the BOEM website at https://www.boem.gov/ for information regarding any changes.

Elizabeth Klein,
Director, Bureau of Ocean Energy Management.
[FR Doc. 2023-25634 Filed 11-17-23; 8:45 am]
BILLING CODE 4340-98-P