# Western Gulf of Mexico Planning Area (WPA) Outer Continental Shelf (OCS) Oil and Gas; Lease Sale 238 (WPA Sale 238) > Briefs, arguments, decisions, and more. URL: https://www.frixlaw.com/law-library/documents/fr%3A2014-16962 ## Record - **Collection:** Federal Register - **Document type:** Notice - **Published:** July 18, 2014 - **Citation:** 79 FR 42041 ## Text DEPARTMENT OF THE INTERIOR Bureau of Ocean Energy Management [MMAA104000] Western Gulf of Mexico Planning Area (WPA) Outer Continental Shelf (OCS) Oil and Gas; Lease Sale 238 (WPA Sale 238) AGENCY: Bureau of Ocean Energy Management, Interior. ACTION: Final notice of sale. SUMMARY: On Wednesday, August 20, 2014, BOEM will open and publicly announce bids received for blocks offered in WPA Sale 238 in accordance with the provisions of the OCS Lands Act (OCSLA, 43 U.S.C. 1331-1356, as amended) and the implementing regulations issued pursuant thereto (30 CFR parts 550 and 556). The WPA 238 Final Notice of Sale (NOS) package (Final NOS Package) contains information essential to potential bidders, and bidders are charged with knowing the contents of the documents contained in the Final NOS Package. The Final NOS Package is available at the address and Web site below. DATES: Public bid reading for WPA Sale 238 will begin at 9:00 a.m., Wednesday, August 20, 2014, at the Mercedes-Benz Superdome, 1500 Sugarbowl Drive, New Orleans, Louisiana 70112. The lease sale will be held in the St. Charles Club Room on the second floor (Loge Level). Entry to the Superdome will be on the Poydras Street side of the building through Gate A on the Ground Level; parking will be available at Garage 6. All times referred to in this document are local times in New Orleans, 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, or from 8:00 a.m. to the Bid Submission Deadline of 10:00 a.m. on Tuesday, August 19, 2014, the day before the lease sale. For more information on bid submission, see Section VII, “Bidding Instructions,” of this document. ADDRESSES: Interested parties, upon request, may obtain a compact disc (CD-ROM) containing the Final NOS Package by contacting the BOEM Gulf of Mexico Region (GOMR) at: Gulf of Mexico Region Public Information Office, Bureau of Ocean Energy Management, 1201 Elmwood Park Boulevard, New Orleans, Louisiana 70123-2394, (504) 736-2519 or (800) 200-GULF, or by visiting the BOEM Web site at http://www.boem.gov/Sale-238/. Table of Contents This Final NOS includes the following sections: I. Lease Sale Area II. Statutes and Regulations III. Lease Terms and Economic Conditions IV. Lease Stipulations V. Information to Lessees VI. MAPS VII. Bidding Instructions VIII. Bidding Rules and Restrictions IX. Forms X. The Lease Sale XI. Delay of Sale I. Lease Sale Area Blocks Offered for Leasing In WPA Sale 238, BOEM is offering for lease all blocks and partial blocks in the document “List of Blocks Available for Leasing” included in the Final NOS Package. All of these blocks are shown on the following leasing maps and Official Protraction Diagrams (OPDs): Outer Continental Shelf Leasing Maps—Texas Map Numbers 1 Through 8 TX1 South Padre Island Area (revised November 1, 2000) TX1A South Padre Island Area, East Addition (revised November 1, 2000) TX2 North Padre Island Area (revised November 1, 2000) TX2A North Padre Island Area, East Addition (revised November 1, 2000) TX3 Mustang Island Area (revised November 1, 2000) TX3A Mustang Island Area, East Addition (revised September 3, 2002) TX4 Matagorda Island Area (revised November 1, 2000) TX5 Brazos Area (revised November 1, 2000) TX5B Brazos Area, South Addition (revised November 1, 2000) TX6 Galveston Area (revised November 1, 2000) TX6A Galveston Area, South Addition (revised November 1, 2000) TX7 High Island Area (revised November 1, 2000) TX7A High Island Area, East Addition (revised November 1, 2000) TX7B High Island Area, South Addition (revised November 1, 2000) TX7C High Island Area, East Addition, South Extension (revised November 1, 2000) TX8 Sabine Pass Area (revised November 1, 2000) Outer Continental Shelf Leasing Maps—Louisiana Map Numbers 1A, 1B, and 12 LA1A West Cameron Area, West Addition (revised February 28, 2007) LA1B West Cameron Area, South Addition (revised February 28, 2007) LA12 Sabine Pass Area (revised July 1, 2011) Outer Continental Shelf Official Protraction Diagrams NG14-03 Corpus Christi (revised November 1, 2000) NG14-06 Port Isabel (revised November 1, 2000) NG15-01 East Breaks (revised November 1, 2000) NG15-02 Garden Banks (revised February 28, 2007) NG15-04 Alaminos Canyon (revised November 1, 2000) NG15-05 Keathley Canyon (revised July 1, 2013) NG15-08 Sigsbee Escarpment (revised July 1, 2013) NG 15-09 Amery Trace (revised July 1, 2013) Please Note: A CD-ROM (in ArcInfo and Acrobat (.pdf) format) containing all of the GOM leasing maps and OPDs, is available from the BOEM Gulf of Mexico Region Public Information Office for a price of $15.00. These GOM leasing maps and OPDs also are available online for free in .pdf and .gra formats at http://www.boem.gov/Oil-and-Gas-Energy-Program/Mapping-and-Data/Official-Protraction-Diagrams.aspx. For the current status of all WPA leasing maps and OPDs, please refer to 66 FR 28002 (May 21, 2001), 67 FR 60701 (September 26, 2002), 72 FR 27590 (May 16, 2007), 76 FR 54787 (September 2, 2011), and 79 FR 32572 (June 5, 2014). In addition, Supplemental Official OCS Block Diagrams (SOBDs) for blocks containing the U.S. 200-Nautical Mile Limit line and the U.S.-Mexico Maritime and Continental Shelf Boundary line are available. These SOBDs also are available from the BOEM Gulf of Mexico Region Public Information Office and on BOEM's Web site at http://www.boem.gov/Oil-and-Gas-Energy-Program/Mapping-and-Data/Supplemental-Official-OCS-Block-Diagrams-SOBDs.aspx. For additional information, or to order the above referenced maps or diagrams, please call the Mapping and Automation Section at (504) 736-5768. All blocks being offered in the lease sale are shown on these leasing maps and OPDs. The available Federal acreage of each whole and partial block in this lease sale is shown in the document “List of Blocks Available for Leasing” included in the Final NOS Package. Some of these blocks may be partially leased or deferred, or transected by administrative lines, such as the Federal/State jurisdictional line. A bid on a block must include all of the available Federal acreage of that block. Also, information on the unleased portions of such blocks is found in the document entitled “Western Planning Area, Lease Sale 238, August 20, 2014—Unleased Split Blocks and Available Unleased Acreage of Blocks with Aliquots and Irregular Portions under Lease or Deferred,” which is included in the Final NOS Package. For additional information, please call Mr. Lenny Coats, Chief of the Mapping and Automation Section, at (504) 736-1457. Blocks Not Offered for Leasing The following whole and partial blocks are not offered for lease in this sale: Whole and partial blocks that lie within the boundaries of the Flower Garden Banks National Marine Sanctuary (Sanctuary) in the East and West Flower Garden Banks and Stetson Bank. The following list identifies all blocks affected by the Sanctuary boundaries: High Island, East Addition, South Extension (Leasing Map TX7C) Whole Block: A-398 Portions of Blocks: A-366, A-367, A-374, A-375, A-383, A-384 *, A-385 *, A-388, A-389, A-397 *, A-399, A-401 High Island, South Addition (Leasing Map TX7B) Portions of Blocks: A-502, A-513 Garden Banks (OPD NG15-02) Portions of Blocks: 134, 135 * Leased. Blocks That Lie Within the Former Western Gap and Within 1.4 Nautical Miles North of the Continental Shelf Boundary (1.4-Nautical Mile Buffer) Between the United States and Mexico The United States and Mexico exchanged instruments of ratification in January 2001, and a Continental Shelf Boundary treaty entered into force in the Western Gap area of the GOM. The treaty states that, at the earliest, exploration or development within 1.4 nautical miles of the Continental Shelf Boundary would occur after January 2011. On June 23, 2010, the United States and Mexico mutually agreed to extend this period for an additional three years. The treaty provision was to remain in effect until January 17, 2014, but, by exchange of diplomatic notes on January 17, 2014, the United States and Mexico have extended the prohibition on exploration and development in the 1.4-nautical mile buffer until July 17, 2014, or until the day the Agreement between the United States of America and the United Mexican States Concerning Transboundary Hydrocarbon Reservoirs in the Gulf of Mexico (Agreement) enters into force, whichever is sooner. The Agreement (described below), negotiated between and signed by the United States and Mexico on February 20, 2012, received Congressional approval and the President's signature but required a further exchange of diplomatic notes to allow it to enter into force. The United States and Mexico exchanged diplomatic notes on May 19, 2014, indicating that the Agreement will enter into force on July 18, 2014. As such, whole and partial blocks in the 1.4-nautical mile buffer area will be offered for lease in WPA Sale 238. Bids on Blocks Near the U.S.-Mexico Maritime and Continental Shelf Boundary The following definitions apply to this section: “Agreement” refers to the transboundary agreement between the United States of America and the United Mexican States that addresses identification and unitization of transboundary hydrocarbon reservoirs, allocation of production, inspections, safety, and environmental protection. A copy of the Agreement can be found at http://www.boem.gov/BOEM-Newsroom/Library/Boundaries-Mexico.aspx. “Boundary Area” means an area comprised of any and all blocks in the WPA that are wholly or partially located within 3 statute miles of the Maritime and Continental Shelf Boundary with Mexico, as that Maritime Boundary is delimited in the November 23, 1970, Treaty to Resolve Pending Boundary Differences and Maintain the Rio Grande and Colorado River as the International Boundary; the May 4, 1978, Treaty on Maritime Boundaries between the United Mexican States and the United States of America; and the June 9, 2000, Treaty on the Continental Shelf between the Government of the United Mexican States and the Government of the United States of America. Bidders should refer to Stipulation No. 5 in the Stipulations section of the Final NOS Package, which will be applicable to leases issued for blocks in the Boundary Area. The following whole and partial blocks comprise the entire Boundary Area (not all of which may be available under WPA Sale 238). Port Isabel (NG14-06) Blocks —914, 915, 916, 917, 918, 919, 920, 921, 922, 923, 924, 945, 946, 947, 948, 958, 959, 960, 961, 962, 963, 964, 965, 966, 967, 968, 989, 990, 991, and 992 Alaminos Canyon (NG15-04) Blocks —881, 882, 883, 884, 885, 886, 887, 888, 889, 890, 891, 892, 893, 894, 895, 896, 897, 898, 899,* 900,* 901,* 902, 903,* 904,* 925, 926, 927, 928, 929, 930, 931, 932, 933, 934, 935, 936, 937, 938, 939, 940, 941, 942,* 943,* 944,* 945,* 946, 947,* 948, 949, 950, 951, 952, 953, 954, 955, 956, 957, 958, 959, 960, 961, 962, 963, 964, 965, 992, 993, 994, 995, 996, 997, 998, 999, 1000, 1001, 1002, 1003, 1004, 1005, 1006, 1007, 1008, and 1009 Keathley Canyon (NG15-05) Blocks —925, 926, 927, 928, 929, 930, 931, 932, 933, 934, 935, 969, 970, 971, 972, 973, 974, 975, 976, 977, 978, 979, 980, and 981 Sigsbee Escarpment (NG15-08) Blocks —11, 12, 13, 14, 15, 57, 58, 59, 60, 61, 103, 104, 105, 106, 148, 149, 150, and 194. South Padre Island (TX1) Blocks —1154, 1163, 1164, 1165, and 1166 South Padre Island, East Addition (TX1A) Blocks —1155, 1156, 1157, 1158, 1159, 1160, 1161, 1162, A 78, A 79, A 80, A 81, A 82, A 83, A 84, A 85, A 86, A 87, A 89, and A 90 * Leased II. Statutes and Regulations Each lease is issued pursuant to OCSLA, and is subject to OCSLA, implementing regulations promulgated pursuant thereto, and other applicable statutes and regulations in existence upon the effective date of the lease, as well as those applicable statutes enacted and regulations promulgated thereafter, except to the extent that the after-enacted statutes and regulations explicitly conflict with an express provision of the lease. Each lease also 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. III. Lease Terms and Economic Conditions Lease Terms OCS Lease Form BOEM will use Form BOEM-2005 (October 2011) to convey leases resulting from this sale. This lease form may be viewed on the BOEM Web site at http://www.boem.gov/About-BOEM/Procurement-Business-Opportunities/BOEM-OCS-Operation-Forms-BOEM-2005.aspx. The lease form will be amended to conform with the specific terms, conditions, and stipulations applicable to the individual lease. The terms, conditions, and stipulations applicable to this sale are set forth below. Initial Periods Initial periods are summarized in the following table: Water depth (meters) Initial period 0 to evaluation of Block .” In the event a person supplies any type of data to BOEM, that person must meet the following requirements to qualify for reimbursement: (1) Persons must be registered with the System for Award Management (SAM), formerly known as the Central Contractor Registration (CCR). CCR usernames will not work in SAM. A new SAM User Account is needed to register or update an entity's records. The Web site for registering is https://www.sam.gov. (2) Persons must be enrolled in the Department of Treasury's Invoice Processing Platform (IPP) for electronic invoicing. The person must enroll in the IPP at https://www.ipp.gov/. Access then will be granted to use the IPP for submitting requests for payment. When a request for payment is submitted, it must include the assigned Purchase Order Number on the request. (3) Persons must have a current On-line Representations and Certifications Application at https://www.sam.gov. Please Note: The GDIS Information Table must be submitted digitally, preferably as an Excel spreadsheet, on a CD or DVD along with the seismic data map(s). If bidders have any questions, please contact Ms. Dee Smith at (504) 736-2706, or Mr. John Johnson at (504) 736-2455. Bidders should refer to Section X of this document, “The Lease Sale: Acceptance, Rejection, or Return of Bids,” regarding a bidder's failure to comply with the requirements of the Final NOS, including any failure to submit information as required in the Final NOS or Final NOS Package. Telephone Numbers/Addresses of Bidders BOEM requests that bidders provide this information in the suggested format prior to or at the time of bid submission. The suggested format is included in the Final NOS Package. The form must not be enclosed inside the sealed bid envelope. Additional Documentation BOEM may require bidders to submit other documents in accordance with 30 CFR 556.46. VIII. Bidding Rules and Restrictions Restricted Joint Bidders BOEM published in the Federal Register on May 5, 2014, the most recent List of Restricted Joint Bidders at 79 FR 25615. Potential bidders are advised to refer to the Federal Register , prior to bidding, for the most current List of Restricted Joint Bidders in place at the time of the lease sale. Please refer to joint bidding provisions at 30 CFR 556.41 for additional restrictions. Authorized Signatures All signatories executing documents on behalf of bidder(s) must execute the same in conformance with the BOEM qualification records. Bidders are advised that BOEM considers the signed bid to be a legally binding obligation on the part of the bidder(s) to comply with all applicable regulations, including payment of one-fifth of the bonus bid on all high bids. A statement to this effect must be included on each bid form (see the document “Bid Form” contained in this Final NOS Package). Unlawful Combination or Intimidation BOEM warns bidders against violation of 18 U.S.C. 1860, prohibiting unlawful combination or intimidation of bidders. Bid Withdrawal Bids may be withdrawn only by written request delivered to BOEM prior to the Bid Submission Deadline. The withdrawal request must be on company letterhead and must contain the bidder's name, its BOEM qualification number, the map name/number, and the block number(s) of the bid(s) to be withdrawn. The request must be executed in conformance with the BOEM qualification records. Signatories must be authorized to bind their respective legal business entities (e.g., a corporation, partnership, or LLC); they also must have an incumbency certificate and/or specific power of attorney setting forth express authority to act on the business entity's behalf for purposes of bidding and lease execution under OCSLA. The name and title of the signatory must be typed under the signature block on the withdrawal letter. Upon approval of the BOEM Gulf of Mexico RD, or the RD's designee, of such requests, the RD or RD's designee will indicate approval by signing and dating the withdrawal request. Bid Rounding The bonus bid amount must be stated in whole dollars. Minimum bonus bid calculations, including all rounding, for all blocks are shown in the document entitled “List of Blocks Available for Leasing,” which is included in the Final NOS Package. If the acreage of a block contains a decimal figure, then prior to calculating the minimum bonus bid, BOEM has rounded up to the next whole acre. The appropriate minimum rate per acre was then applied to the whole (rounded up) acreage. If this calculation resulted in a fractional dollar amount, the minimum bonus bid was rounded up to the next whole dollar amount. The bonus bid amount must be greater than or equal to the minimum bonus bid in whole dollars. IX. Forms The Final NOS Package includes instructions, samples, and/or the preferred format for the following items. BOEM strongly encourages bidders to use these formats; should bidders use another format, they are responsible for including all the information specified for each item in 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 in the DATES section of this document above. The opening of the bids is for the sole purpose of publicly announcing and recording the bids received; no bids will be accepted or rejected at that time. Bonus Bid Deposit for Apparent High Bids Each bidder submitting an apparent high bid must submit a bonus bid deposit to the U.S. Department of the Interior's Office of Natural Resources Revenue (ONRR) equal to one-fifth of the bonus bid amount for each such bid. A copy of the notification of the high bidder's one-fifth bonus liability may be obtained at the EFT Area outside the Bid Reading Room on the day of the bid opening, or it may be obtained on the BOEM Web site at http://www.boem.gov/Sale-238/ under the heading “Notification of EFT 1/5 Bonus Liability.” All payments must be deposited electronically into an interest-bearing account in the U.S. Treasury by 11:00 a.m. Eastern time the day following the bid reading (no exceptions). Account information is provided in the “Instructions for Making Electronic Funds Transfer Bonus Payments” found on the BOEM Web site identified above. BOEM requires bidders to use EFT procedures for payment of one-fifth bonus bid deposits for WPA Sale 238, following the detailed instructions contained on the ONRR Payment Information Web page at http://onrr.gov/ReportPay/payments.htm. Acceptance of a deposit does not constitute and shall not be construed as acceptance of any bid on behalf of the United States. Withdrawal of Blocks The United States reserves the right to withdraw any block from this lease sale prior to issuance of a written acceptance of a bid for the block. Acceptance, Rejection, or Return of Bids The United States reserves the right to reject any and all bids. No bid will be accepted, and no lease for any block will be awarded to any bidder, unless: (1) The bidder has complied with all requirements of the Final NOS, including those set forth in the documents contained in the Final NOS Package and applicable regulations; (2) the bid is the highest valid bid; and (3) the amount of the bid has been determined to be adequate by the authorized officer. Any bid submitted that does not conform to the requirements of the Final NOS and Final NOS Package, OCSLA, or other applicable statute or regulation may be rejected and returned to the bidder. The U.S. Department of Justice and the Federal Trade Commission will review the results of the lease sale for antitrust issues prior to the acceptance of bids and issuance of leases. To ensure that the Government receives a fair return for the conveyance of leases from this sale, high bids will be evaluated in accordance with BOEM's bid adequacy procedures. A copy of current procedures, “Modifications to the Bid Adequacy Procedures,” published at 64 FR 37560 on July 12, 1999, can be obtained from the BOEM Gulf of Mexico Region Public Information Office, or via the BOEM Gulf of Mexico Region Web site at http://www.boem.gov/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: (1) Execute all copies of the lease (Form BOEM-2005 (October 2011), as amended); (2) pay by EFT the balance of the bonus bid amount and the first year's rental for each lease issued in accordance with the requirements of 30 CFR 218.155 and 556.47(f); 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 four-fifths bonus bid amount and the first year's rental. XI. Delay of Sale The BOEM Gulf of Mexico RD has the discretion to change any date, time, and/or location specified in the Final NOS Package in case of an event that the BOEM Gulf of Mexico RD deems may interfere with the carrying out of a fair and orderly lease sale process. Such events could include, but are not limited to, natural disasters (e.g., earthquakes, hurricanes, and floods), wars, riots, acts of terrorism, fires, strikes, civil disorder, or other events of a similar nature. In case of such events, bidders should call (504) 736-0557, or access the BOEM Web site at http://www.boem.gov, for information regarding any changes. Dated: July 14, 2014. Walter D. Cruickshank, Acting Director, Bureau of Ocean Energy Management. [FR Doc. 2014-16962 Filed 7-17-14; 8:45 am] BILLING CODE 4310-MR-P --- Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/fr%3A2014-16962. Public record. Not legal advice.