Outer Continental Shelf, Western Gulf of Mexico, Gas and Oil Lease Sale 150

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Outer Continental Shelf, Western Gulf of Mexico, Gas and Oil

Lease Sale 150

AGENCY: Minerals Management Service, Interior.

ACTION: Notice of sale.

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1. Authority. This Notice is published pursuant to the Outer

Continental Shelf (OCS) Lands Act (43 U.S.C. 1331-1356, (1988)), and

the regulations issued thereunder (30 CFR Part 256).

2. Filing of Bids. Sealed bids will be received by the Regional

Director (RD), Gulf of Mexico Region, Minerals Management Service

(MMS), 1201 Elmwood Park Boulevard, New Orleans, Louisiana 70123-2394.

Bids may be delivered in person to that address during normal business

hours (8 a.m. to 4 p.m. Central Standard Time (c.s.t.)) until the bid

submission deadline at 10 a.m., Tuesday, August 16, 1994. Hereinafter,

all times cited in this Notice refer to c.s.t. unless otherwise stated.

Bids will not be accepted the day of bid opening, Wednesday, August 17,

1994. Bids received by the RD later than the time and date specified

above will be returned unopened to the bidders. Bids may not be

modified or withdrawn unless written modification or written withdrawal

request is received by the RD prior to 10 a.m., Tuesday, August 16,

1994. Bid opening time will be 9 a.m., Wednesday, August 17, 1994, at

the Sheraton Hotel, 500 Canal Street, New Orleans, Louisiana. All bids

must be submitted and will be considered in accordance with applicable

regulations including 30 CFR Part 256. The list of restricted joint

bidders which applies to this sale appeared in the Federal Register at

59 FR 14425, published March 28, 1994.

3. Method of Bidding. A separate signed bid in a sealed envelope

labeled ``Sealed Bid for Gas and Oil Lease Sale 150, not to be opened

until 9 a.m., c.s.t., Wednesday, August 17, 1994,'' must be submitted

for each block bid upon. The sealed envelope and the bid should contain

the following information: the company name, qualification number, area

number and/or name (abbreviations acceptable), and the block number of

the block bid upon. In addition, the total amount bid must be in whole

dollar amounts.

Bidders must submit with each bid one-fifth of the cash bonus, in

cash or by cashier's check, bank draft, or certified check, payable to

the order of the U.S. Department of the Interior--Minerals Management

Service. For identification purposes, the company name and company

qualification number should also appear on the check or draft together

with the bid block identification (abbreviations acceptable). No bid

for less than all of the unleased portions of a block will be

considered.

All documents must be executed in conformance with signatory

authorizations on file in the Gulf of Mexico regional office.

Partnerships also need to submit or have on file a list of signatories

authorized to bind the partnership. Bidders submitting joint bids must

state on the bid form the proportionate interest of each participating

bidder, in percent to a maximum of five decimal places, e.g., 33.33333

percent. Other documents may be required of bidders under 30 CFR

256.46. Bidders are warned against violation of 18 U.S.C. 1860

prohibiting unlawful combination or intimidation of bidders.

4. Bidding, Yearly Rental, and Royalty Systems. The following

bidding, yearly rental, and royalty systems apply to this sale:

(a) Bidding Systems. All bids submitted at this sale must provide

for a cash bonus in the amount of $25 or more per acre or fraction

thereof.

(b) Yearly Rental. All leases awarded will provide for a yearly

rental payment of $5 per acre or fraction thereof.

(c) Royalty Systems. All leases will provide for a minimum royalty

of $5 per acre or fraction thereof. The following royalty systems will

be used in this sale:

(1) Leases With a 12\1/2\-Percent Royalty. This royalty rate

applies to blocks in water depths of 400 meters or greater as shown on

the Stipulations, Lease Terms, and Bidding Systems map (see paragraph

13(a)). Leases issued on the blocks offered in this area will have a

fixed royalty rate of 12\1/2\ percent.

(2) Leases With a 16 \2/3\-Percent Royalty. This royalty rate

applies to blocks in water depths of less than 400 meters (see

aforementioned map). Leases issued on blocks offered in this area will

have a fixed royalty rate of 16 \2/3\ percent.

5. Equal Opportunity. The certification required by 41 CFR 60-

1.7(b) and Executive Order No. 11246 of September 24, 1965, as amended

by Executive Order No. 11375 of October 13, 1967, on the Compliance

Report Certification Form, Form MMS-2033 (June 1985), and the

Affirmative Action Representation Form, Form MMS-2032 (June 1985), must

be on file in the Gulf of Mexico regional office prior to lease award

(see paragraph 14(e)).

6. Bid Opening. Bid opening will begin at the bid opening time

stated in paragraph 2. The opening of the bids is for the sole purpose

of publicly announcing bids received, and no bids will be accepted or

rejected at that time. If the Department is prohibited for any reason

from opening any bid before midnight on the day of bid opening, that

bid will be returned unopened to the bidder as soon thereafter as

possible.

7. Deposit Of Payment. Any cash, cashier's checks, certified

checks, or bank drafts submitted with a bid may be deposited by the

Government in an interest-bearing account in the U.S. Treasury during

the period the bids are being considered. Such a deposit does not

constitute and shall not be construed as acceptance of any bid on

behalf of the United States.

8. Withdrawal Of Blocks. The United States reserves the right to

withdraw any block from this sale prior to issuance of a written

acceptance of a bid for the block.

9. Acceptance, Rejection, Or Return Of Bids. The United States

reserves the right to reject any and all bids. In any case, no bid may

be accepted, and no lease for any block will be awarded to any bidder,

unless:

(a) the bidder has complied with all requirements of this Notice

and applicable regulations;

(b) the bid is the highest valid bid; and

(c) the amount of the bid has been determined to be adequate by the

authorized officer.

No bonus bid will be considered for acceptance unless it provides

for a cash bonus in the amount of $25 or more per acre or fraction

thereof. Any bid submitted which does not conform to the requirements

of this Notice, the OCS Lands Act, as amended, and applicable

regulations may be returned to the person submitting that bid by the RD

and not considered for acceptance.

10. Successful Bidders. Each person who has submitted a bid

accepted by the authorized officer will be required to execute copies

of the lease, pay the balance of the cash bonus bid along with the

first year's annual rental for each lease issued, by electronic funds

transfer in accordance with the requirements of 30 CFR 218.155, and

satisfy the bonding requirements of 30 CFR 256, Subpart I, as amended.

See Federal Register at 58 FR 45255, published August 27, 1993.

11. Leasing Maps and Official Protraction Diagrams. Blocks offered

for lease may be located on the following Leasing Maps or Official

Protraction Diagrams which may be purchased from the Gulf of Mexico

regional office (see paragraph 14(a)):

(a) OCS Leasing Maps--Texas Nos. 1 through 8. This is a set of 16

maps which sells for $18.00.

(b) OCS Official Protraction Diagrams. These diagrams sell for

$2.00 each.

NG 14-3 Corpus Christi (revised 01/27/76)

NG 14-6 Port Isabel (revised 01/15/92)

NG 15-1 East Breaks (revised 01/27/76)

NG 15-2 Garden Banks (revised 10/19/81)

NG 15-4 Alaminos Canyon (revised 04/27/89)

NG 15-5 Keathley Canyon (revised 04/27/89)

NG 15-8 (No Name) (revised 04/27/89)

(c) A complete set of all the above OCS Leasing Maps and Official

Protraction Diagrams is available on microfiche for $5.00 per set.

12. Description Of the Areas Offered for Bids.

(a) Acreages of blocks are shown on Leasing Maps and Official

Protraction Diagrams. Some of these blocks, however, may be partially

leased or transected by administrative lines such as the Federal/State

jurisdictional line. Information on the unleased portions of such

blocks, including the exact acreage, is included in the following

document available from the Gulf of Mexico regional office: Western

Gulf of Mexico Lease Sale 150--Final. Unleased Split Blocks and

Unleased Acreage of Blocks with Aliquots and Irregular Portions Under

Lease.

(b) Blocks not available for leasing: The areas offered for leasing

include all those blocks shown on the OCS Leasing Maps and Official

Protraction Diagrams listed in paragraph 11 (a), (b), and (c), except

for those blocks or partial blocks already under lease, as listed

below, and blocks deferred from bidding as follows:

(1) Although currently unleased and shown on Texas Leasing Map No.

7C, High Island Area, East Addition, South Extension, no bids will be

accepted on Blocks A-375 and A-398 (at the Flower Garden Banks).

(2) No bids will be accepted on the following blocks located off

Corpus Christi which have been identified by the Navy as needed for

testing equipment and training mine warfare personnel: Mustang Island

Area Blocks 793, 799, and 816.

(3) No bids will be accepted on Block A-125, as shown on Leasing

Map No. 6A, Galveston, South Addition, the status of which is currently

under appeal.

(4) Western Gulf of Mexico Leased Lands--Descriptions of blocks

listed represent all Federal acreage leased unless otherwise noted:

South Padre Island

1030, 1040, 1043, 1044, 1052, 1059, 1060, 1073, 1111, 1112, 1122,

1125, 1134, 1166.

North Padre Island

886, 887, 908, 927, 956, 957, 967, 968, 969, 976, 987, 988, 989.

North Padre Island, East Addition

891, 892, 911, 932, 951, 952, 970, 974, 975, 990, 993, 995, 996,

1011, 1018, A-6, A-9, A-10, A-11, A-27, A-38, A-42, A-43, A-48, A-55,

A-59, A-64, A-69, A-70, A-72, A-75, A-76, A-86, A-87.

Mustang Island

738, 739, 740, 742, 743, 752, 754, 755, 756, 757, 758, 759, 762,

763, 764, 765, 767, 768, 769, 778, 779, 781, 782, 783, 784, 785, 786,

787, 789, 790, 791, 801, 802, 803, 804, 805, 806, 807, 809, 811, 812,

813, 814, 822, 823, 824, 825, 826, 828, 830, 831, 837, 846, 847, 849,

850, 851, 858, 868, 869, 870, 871, 872, 873, 875, 876, A-2(NE\1/4\

NW\1/4\ NE\1/4\; NE\1/4\ NW\1/4\; NE\1/4\ SE\1/4\ NW\1/4\; W\1/2\ NW\1/

4\ NE\1/4\), A-3, A-5, A-6, A-7, A-10, A-11, A-15, A-16, A-17, A-21, A-

22, A-26, A-27, A-30, A-31, A-32, A-33, A-38.

Mustang Island, East Addition

736, 760, A-46, A-47, A-51, A-53, A-57, A-61, A-65, A-70, A-71, A-

85, A-86, A-96, A-97, A-110, A-111, A-112, A-119, A-121, A-122, A-124,

A-135, A-138, A-149.

Matagorda Island

487, 518, 519, 520, 526, 527, 528, 529 (Landward of 8(g) Line),

555, 556, 557, 564, 565, 566, 567, 568, 587, 588, 589, 591, 592, 599,

600, 601, 602, 603, 604, 605, 606, 607, 616, 617, 618, 619, 620, 622,

623, 624, 632, 633, 634 (Seaward of 8(g) Line), 635, 636, 637, 638,

639, 640, 641, 649, 650, 651, 652, 653, 654, 656, 657, 658, 663, 664,

665, 666, 667, 668, 669, 670, 671, 672, 674, 676, 678, 680, 681, 682,

683, 685, 686, 687, 688, 689, 696, 699, 700, 701, 703, 704, 705, 707,

709, 710, 712, 713, 714, 715, 716, A-4, A-7, A-8.

Brazos

341, 342, 364 (Landward of 8(g) line), 365, 375, 376, 378, 396,

397, 398, 399, 411, 412, 413, 415, 416, 417, 431, 432, 435 (Seaward of

8(g) Line), 436, 437, 439, 449, 451, 452 (E\1/2\), 453, 454, 455, 456,

457, 458, 466, 468, 469, 470, 471, 473, 474, 475, 476, 477, 488, 491,

492, 493, 494, 495, 496, 498, 501, 502, 504, 506, 507, 509, 510, 514,

515, 516, 517, 531, 532, 533, 534, 535, 537, 538, 539, 542, 543, 544,

546, 549, 550, 552, 570, 571, 572, 576, 577, 578, 580, 584, 608, 613,

614, 615, A-2, A-3, A-6, A-7, A-9, A-10, A-14, A-17, A-19, A-20, A-21,

A-22, A-23, A-24, A-25, A-31, A-36, A-37, A-38, A-39, A-40, A-41, A-43.

Brazos, South Addition

A-46, A-47, A-51, A-52, A-53, A-61, A-62, A-65, A-66, A-70, A-71,

A-76, A-77, A-84, A-85, A-101, A-102, A-104, A-105, A-106, A-110, A-

111, A-127, A-128, A-132, A-133.

Galveston

144, 151, 152, 180, 181, 182, 189, 190, 191, 192, 209, 210, 211,

213, 223, 225, 227, 237, 238, 239, 240, 241, 242 (Landward of 8(g)

Line), 243, 252, 253, 255, 256, 257, 258, 265, 266, 267, 268, 270, 271,

272, 273, 274, 281, 283, 284, 285, 288, 289, 290, 291, 294, 295(S\1/2\

NE\1/4\ NE\1/4\; NW\1/4\ NE\1/4\; W\1/2\ SW\1/4\ NE\1/4\; NE\1/4\ SW\1/

4\ NE\1/4\; N\1/2\ SE\1/4\ NE\1/4\; W\1/2\; W\1/2\ NW\1/4\ SE\1/4\;

S\1/2\ SE\1/4\), 296(NE\1/4\; NE\1/4\ NE\1/4\ NW\1/4\; S\1/2\ NE\1/4\

NW\1/4\; SE\1/4\ NW\1/4\; S\1/2\ SW\1/4\ NW\1/4\; N\1/2\ SW\1/4\; NE\1/

4\ SW\1/4\ SW\1/4\; N\1/2\ SE\1/4\ SW\1/4\; N\1/2\ SE\1/4\; N\1/2\

SW\1/4\ SE\1/4\; SE\1/4\ SE\1/4\), 297, 298, 299, 301, 302, 303, 304,

305, 312, 313, 314, 318, 319, 320, 321, 322, 324, 325, 326, 328, 329,

330, 331, 332, 333, 343, 344, 345, 346, 347, 348, 349, 350, 351, 354,

356, 357, 358, 359, 360, 361, 363, 379, 380, 383, 384, 385, 386, 389,

390, 391, 392, 393, 394, 395, 418, 420, 421, 428, 429, 460, 503, A-2,

A-15, A-16, A-18, A-21, A-24, A-34, A-35, A-39, A-40, A-41, A-42, A-49,

A-50, A-86, A-101, A-105, A-110, A-111.

Galveston, South Addition

A-122, A-142, A-143, A-144, A-145, A-218.

High Island

19, 20, 21, 22, 34, 36, 52, 53, 67, 68, 69, 70, 71, 73, 86, 87, 88,

89, 90, 93, 97, 98, 105, 106, 108, 109, 110, 111, 113, 115, 116, 117,

134, 135(N\1/2\; N\1/2\ S\1/2\; SW\1/4\ SW\1/4\; W\1/2\ SE\1/4\ SW\1/

4\; NE\1/4\ SE\1/4\ SW\1/4\; N\1/2\ S\1/2\ SE\1/4\), 136(E\1/2\; E\1/2\

NE\1/4\ SW\1/4\; S\1/2\ SE\1/4\ SW\1/4\), 137, 138(N\1/2\), 139, 140,

143, 153, 154, 155(W\1/2\), 156, 160(NE\1/4\; NE\1/4\ NW\1/4\; E\1/2\

SE\1/4\ NW\1/4\; N\1/2\ SE\1/4\; N\1/2\ SE\1/4\ SE\1/4\), 161(NW\1/4\

NE\1/4\ NW\1/4\; S\1/2\ NE\1/4\ NW\1/4\; W\1/2\ NW\1/4\; SE\1/4\ NW\1/

4\; NE\1/4\ NE\1/4\ SW\1/4\; W\1/2\ NE\1/4\ SW\1/4\; NW\1/4\ SW\1/4\;

NW\1/4\ SW\1/4\ SW\1/4\), 162, 164, 165, 169, 170, 171, 175, 176, 177,

178, 179, 193, 194, 195, 196, 197, 199, 200, 201, 204, 206, 207, 208,

228, 229, 230, 231, 232, 234, 235, 236, 261, 262, A-1, A-2, A-3, A-5,

A-6, A-7, A-9, A-12, A-16, A-17, A-18, A-19, A-20, A-21, A-22, A-23, A-

26, A-30, A-36, A-37, A-38, A-39, A-42, A-44, A-45, A-46, A-50, A-52,

A-53, A-60, A-61, A-63, A-64, A-68, A-69, A-73, A-74, A-77, A-78, A-83,

A-87, A-100, A-122, A-123, A-125, A-127, A-128, A-129, A-130, A-133, A-

137.

High Island, South Addition

A-411, A-412, A-417, A-421, A-422, A-424, A-434, A-435, A-438, A-

441, A-442, A-443, A-444, A-446, A-447, A-448, A-462, A-465, A-466, A-

467, A-468, A-469, A-470, A-471, A-472, A-474, A-475, A-477, A-479, A-

486, A-488, A-489, A-490, A-491, A-494, A-496, A-497, A-499, A-500, A-

501, A-503, A-506, A-510, A-511, A-512, A-513, A-515, A-517, A-518, A-

519, A-520, A-521, A-523, A-524, A-528, A-530, A-531, A-532, A-535, A-

536, A-537, A-538, A-539, A-540, A-545, A-547, A-548, A-549, A-550, A-

551, A-552, A-553, A-555, A-556, A-557, A-558, A-560, A-561, A-

562(SW\1/4\), A-563, A-564, A-568, A-570, A-571, A-572, A-573, A-574,

A-576, A-577, A-582, A-585, A-587, A-588, A-589, A-593, A-595, A-596.

High Island, East Addition

39, 45, 46, 74, 75, 76, 85, 120, 128, 129, 166, 167, A-168, A-169,

A-171, A-172, A-173, A-174, A-175, A-176, A-185, A-187, A-192, A-195,

A-200, A-201, A-224, A-231, A-233, A-244, A-245, A-246, A-247, A-250,

A-253.

High Island, East Addition, South Extension

A-263, A-269, A-270, A-271, A-272, A-274, A-279, A-280, A-281, A-

282, A-283, A-285, A-286, A-287, A-293, A-295, A-299, A-300, A-301, A-

302, A-303, A-305, A-309, A-310, A-313, A-314, A-315, A-316, A-317, A-

323, A-325, A-327, A-329, A-330, A-331, A-332, A-334, A-335, A-339, A-

340, A-341, A-343, A-349, A-350, A-351, A-352, A-355, A-356, A-359, A-

362, A-365, A-368, A-369, A-370, A-371, A-372, A-373, A-374, A-376, A-

377, A-378, A-379, A-382, A-383, A-384, A-385, A-389, A-391, A-392, A-

393, A-395, A-396, A-397, A-402, A-403.

Sabine Pass

17, 18, 40

East Breaks

109, 110, 112, 117, 122, 125, 154, 156, 157, 158, 159, 160, 161,

165, 166, 167, 168, 169, 171, 172, 173, 209, 215, 216, 237, 238, 246,

254, 255, 260, 290, 303, 329, 330, 342, 343, 344, 345, 386, 388, 389,

392, 393, 402, 403, 430, 431, 437, 462, 473, 474, 475, 476, 477, 506,

507, 518, 520, 562, 563, 564, 565, 566, 593, 598, 599, 602, 604, 605,

607, 608, 609, 637, 638, 639, 640, 641, 642, 643, 644, 645, 646, 647,

648, 649, 653, 654, 683, 684, 685, 686, 688, 689, 690, 691, 692, 728,

729, 732, 739, 740, 741, 783, 784, 785, 901, 902, 904, 943, 944, 945,

946, 947, 948, 949, 987, 988, 989, 990, 991, 992, 994.

Garden Banks

21, 22, 26, 28, 29 , 65, 70, 71, 72, 73, 75, 76, 80, 83, 84, 103,

117, 119, 120, 123, 126, 127, 128, 134, 135, 136, 141, 142, 144, 145,

147, 157, 158, 161, 162, 164, 165, 166, 167, 168, 170, 171, 172, 180,

183, 186, 188, 189, 190, 191, 192, 200, 201, 202, 203, 206, 207, 208,

209, 210, 211, 212, 213, 215, 216, 217, 224, 225, 233, 234, 235, 236,

237, 240, 248, 250, 252, 253, 254, 255, 257, 258, 259, 260, 261, 269,

276, 277, 278, 279, 287, 289, 290, 291, 298, 299, 300, 302, 304, 319,

322, 323, 329, 330, 331, 333, 342, 343, 344, 345, 353, 354, 361, 362,

363, 365, 366, 368, 371, 374, 375, 376, 377, 379, 381, 382, 386, 387,

388, 389, 397, 398, 405, 406, 407, 413, 416, 418, 419, 420, 421, 423,

424, 425, 426, 427, 428, 429, 430, 431, 432, 463, 464, 468, 469, 470,

471, 472, 473, 474, 475, 476, 477, 498, 499, 506, 507, 508, 512, 513,

514, 515, 516, 517, 535, 543, 544, 549, 550, 554, 555, 556, 557, 558,

559, 562, 563, 593, 598, 599, 600, 601, 602, 603, 622, 623, 629, 630,

638, 639, 644, 645, 646, 653, 674, 682, 683, 694, 697, 726, 727, 738,

739, 740, 741, 754, 767, 768, 769, 771, 772, 782, 783, 784, 785, 798,

803, 804, 806, 811, 812, 813, 814, 815, 816, 817, 826, 831, 832, 833,

848, 849, 850, 855, 856, 860, 875, 876, 877, 885, 902, 903, 919, 920,

921, 929, 930, 938, 939, 940, 947, 963, 964, 974, 975.

Port Isabel

39, 40, 81, 82, 125, 126, 130, 131, 174, 175, 216, 218, 393, 436,

437, 438, 481, 482, 483, 524, 525, 526, 568, 569, 570, 610, 611, 613,

653, 654, 655, 656, 657, 696, 697, 698, 700, 701, 740, 741.

Alaminos Canyon

20, 21, 22, 23, 24, 25, 26, 65, 133, 192, 236, 237, 261, 280, 305,

336, 337, 380, 398, 441, 442, 485, 489, 490, 491, 533, 534, 556, 557,

558, 599, 600, 601, 602, 644, 645, 646, 647, 648, 687, 691, 719, 720,

726, 730, 731, 734, 735, 736, 763, 764, 766, 767, 770, 774, 775, 780,

781, 810, 811, 813, 814, 818, 827, 854, 856, 857, 900, 901, 903, 904,

947, 951, 954.

Keathley Canyon

6, 7, 133, 134, 155, 156, 157, 158, 159, 177, 178, 179, 199, 200,

201, 202, 212, 221, 242, 243, 245, 246, 255, 256, 324, 377, 421, 422,

476, 522, 523, 567, 568, 583, 584, 603, 604, 647, 648, 695.

13. Lease Terms and Stipulations.

(a) Leases resulting from this sale will have initial terms as

shown on the Stipulations, Lease Terms, and Bidding Systems map

applicable to this Notice and will be issued on Form MMS-2005 (March

1986). Copies of the map and lease form are available from the Gulf of

Mexico regional office (see paragraph 14(a)).

(b) The applicability of the stipulations which follow is as shown

on the aforementioned map and as supplemented by references in this

Notice.

Stipulation No. 1--Protection of Archaeological Resources

(This stipulation will apply to all blocks offered for lease in

this sale. Bidders should refer also to paragraph 14(g) of this Notice

for specific survey requirements. See also paragraph 14(i).)

(a) ``Archaeological resource'' means any prehistoric or historic

district, site, building, structure, or object (including shipwrecks);

such term includes artifacts, records, and remains which are related to

such a district, site, building, structure, or object (16 U.S.C.

470w(5)). ``Operations'' means any drilling, mining, or construction or

placement of any structure for exploration, development, or production

of the lease.

(b) If the Regional Director (RD) believes an archaeological

resource may exist in the lease area, the RD will notify the lessee in

writing. The lessee shall then comply with subparagraphs (1) through

(3).

(1) Prior to commencing any operations, the lessee shall prepare a

report, as specified by the RD, to determine the potential existence of

any archaeological resource that may be affected by operations. The

report, prepared by an archaeologist and a geophysicist, shall be based

on an assessment of data from remote-sensing surveys and of other

pertinent archaeological and environmental information. The lessee

shall submit this report to the RD for review.

(2) If the evidence suggests that an archaeological resource may be

present, the lessee shall either:

(i) Locate the site of any operation so as not to adversely affect

the area where the archaeological resource may be, or

(ii) Establish to the satisfaction of the RD that an archaeological

resource does not exist or will not be adversely affected by

operations. This shall be done by further archaeological investigation,

conducted by an archaeologist and a geophysicist, using survey

equipment and techniques deemed necessary by the RD. A report on the

investigation shall be submitted to the RD for review.

(3) If the RD determines that an archaeological resource is likely

to be present in the lease area and may be adversely affected by

operations, the RD will notify the lessee immediately. The lessee shall

take no action that may adversely affect the archaeological resource

until the RD has told the lessee how to protect it.

(c) If the lessee discovers any archaeological resource while

conducting operations on the lease area, the lessee shall report the

discovery immediately to the RD. The lessee shall make every reasonable

effort to preserve the archaeological resource until the RD has told

the lessee how to protect it.

Stipulation No. 2--Protection of Topographic Features

(This stipulation will be included in leases located in the areas

so indicated in the Biological Stipulation Map Package associated with

this Notice which is available from the Gulf of Mexico regional office.

See paragraph 14(a).)

The banks which cause this stipulation to be applied to blocks of

the Western Gulf are:

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

No activity zone defined

Bank name by isobath (meters)

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

Shelf Edge Banks:

West Flower Garden Bank\1\ (defined by \1/ 100

4\ \1/4\ system).

East Flower Garden Bank\1\ (defined by \1/ 100

4\ \1/4\ system).

MacNeil Bank............................... 82

29 Fathom Bank............................. 64

Rankin Bank................................ 85

Geyer Bank................................. 85

Elvers Bank................................ 85

Bright Bank\2\............................. 85

McGrail Bank\2\............................ 85

Rezak Bank\2\.............................. 85

Sidner Bank\2\............................. 85

Parker Bank\2\............................. 85

Stetson Bank............................... 62

Applebaum Bank............................. 85

Low Relief Banks:\3\

Mysterious Bank............................ 74, 76, 78, 80, 84

Coffee Lump................................ Various

Blackfish Ridge............................ 70

Big Dunn Bar............................... 65

Small Dunn Bar............................. 65

32 Fathom Bank............................. 52

Claypile Bank\4\........................... 50

South Texas Banks:\5\

Dream Bank................................. 78, 82

Southern Bank.............................. 80

Hospital Bank.............................. 70

North Hospital Bank........................ 68

Aransas Bank............................... 70

South Baker Bank........................... 70

Baker Bank................................. 70

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

\1\Flower Garden Banks--In paragraph (c) a ``4-Mile Zone'' rather than a

``1-Mile Zone'' applies.

\2\Central Gulf of Mexico bank with a portion of its ``1-Mile Zone'' and/

or ``3-Mile Zone'' in the Western Gulf of Mexico.

\3\Low Relief Banks--Only paragraph (a) applies.

\4\Claypile Bank--Paragraphs (a) and (b) apply. In paragraph (b)

monitoring of the effluent to determine the effect on the biota of

Claypile Bank shall be required rather than shunting.

\5\South Texas Banks--Only paragraphs (a) and (b) apply.

(a) No activity including structures, drilling rigs, pipelines, or

anchoring will be allowed within the listed isobath (``No Activity

Zone'' as shown in the aforementioned Biological Stipulation Map

Package) of the banks as listed above.

(b) Operations within the area shown as ``1,000-Meter Zone'' in the

aforementioned Biological Stipulation Map Package shall be restricted

by shunting all drill cuttings and drilling fluids to the bottom

through a downpipe that terminates an appropriate distance, but no more

than 10 meters, from the bottom.

(c) Operations within the area shown as ``1-Mile Zone'' in the

aforementioned Biological Stipulation Map Package shall be restricted

by shunting all drill cuttings and drilling fluids to the bottom

through a downpipe that terminates an appropriate distance, but no more

than 10 meters, from the bottom. (Where there is a ``1-Mile Zone''

designated, the ``1,000 Meter Zone'' in paragraph (b) is not

designated.)

(d) Operations within the area shown as ``3-Mile Zone'' in the

aforementioned Biological Stipulation Map Package shall be restricted

by shunting all drill cuttings and drilling fluids from development

operations to the bottom through a downpipe that terminates an

appropriate distance, but no more than 10 meters, from the bottom.

Stipulation No. 3--Military Warning Areas

(This stipulation will be included in leases located within Warning

Areas as shown on the map described in paragraph 13(a).)

(a) Hold and Save Harmless

Whether compensation for such damage or injury might be due under a

theory of strict or absolute liability or otherwise, the lessee assumes

all risks of damage or injury to persons or property, which occur in,

on, or above the Outer Continental Shelf (OCS), to any persons or to

any property of any person or persons who are agents, employees, or

invitees of the lessee, its agents, independent contractors, or

subcontractors doing business with the lessee in connection with any

activities being performed by the lessee in, on, or above the OCS; if

such injury or damage to such person or property occurs by reason of

the activities of any agency of the U.S. Government, its contractors or

subcontractors, or any of their officers, agents, or employees, being

conducted as a part of, or in connection with, the programs and

activities of the command headquarters listed in the table below.

Notwithstanding any limitation of the lessee's liability in section

14 of the lease, the lessee assumes this risk whether such injury or

damage is caused in whole or in part by any act or omission, regardless

of negligence or fault, of the United States, its contractors or

subcontractors, or any of its officers, agents, or employees. The

lessee further agrees to indemnify and save harmless the United States

against all claims for loss, damage, or injury sustained by the lessee;

and to indemnify and save harmless the United States against all claims

for loss, damage, or injury sustained by the agents, employees, or

invitees of the lessee, its agents, or any independent contractors or

subcontractors doing business with the lessee in connection with the

programs and activities of the appropriate military installation,

whether the same be caused in whole or in part by the negligence or

fault of the United States, its contractors or subcontractors, or any

of its officers, agents, or employees; and whether such claims might be

sustained under a theory of strict or absolute liability or otherwise.

(b) Electromagnetic Emissions

The lessee agrees to control its own electromagnetic emissions and

those of its agents, employees, invitees, independent contractors, or

subcontractors emanating from individual designated defense warning

areas in accordance with requirements specified by the commander of the

command headquarters listed in the table below to the degree necessary

to prevent damage to, or unacceptable interference with, Department of

Defense flight, testing, or operational activities conducted within

individual designated warning areas. Necessary monitoring control and

coordination with the lessee, its agents, employees, invitees,

independent contractors, or subcontractors will be effected by the

commander of the appropriate onshore military installation conducting

operations in the particular warning area provided, however, that

control of such electromagnetic emissions shall in no instance prohibit

all manner of electromagnetic communication during any period of time

between a lessee, its agents, employees, invitees, independent

contractors or subcontractors, and onshore facilities.

(c) Operational

The lessee, when operating or causing to be operated on its behalf,

boat, ship, or aircraft traffic into the individual designated warning

areas, shall enter into an agreement with the commander of the

individual command headquarters listed in the following list, upon

utilizing an individual designated warning area prior to commencing

such traffic. Such an agreement will provide for positive control of

boats, ships, and aircraft operating into the warning areas at all

times.

Warning Areas' Command Headquarters for Western Planning Area:

W-228--Chief, Naval Air Training, Naval Air Station, Office No. 206,

Corpus Christi, Texas 78419-5100, Telephone: (512) 939-3862/2621.

W-602--Headquarters ACC/DOSR, Detachment 1, Operations Headquarters,

Air Combat Command, Offutt AFB, Nebraska 68113-5550, Telephone: (402)

294-2334.

Stipulation No. 4--Operations in the Naval Mine Warfare Area

(This stipulation will apply to Mustang Island Area East Addition

blocks 732, 733, and 734.)

(a) The placement, location, and planned periods of operation of

surface structures on this lease during the exploration stage are

subject to approval by the Regional Director (RD), Minerals Management

Service Gulf of Mexico Region, after the review of an operator's

Exploration Plan (EP). Prior to approval of the EP, the RD will consult

with the Commander, Mine Warfare Command, in order to determine the

EP's compatibility with scheduled military operations. No permanent

structures nor debris of any kind shall be allowed in the area covered

by this lease during exploration operations.

(b) To the extent possible, sub-seafloor development operations for

resources subsurface to this area should originate outside the area

covered by this lease. Any above-seafloor development operations within

the area covered by this lease must be compatible with scheduled

military operations as determined by the Commander, Mine Warfare

Command. The lessee will consult with and coordinate plans for above

sea-floor development activities (including abandonment) with the

Commander, Mine Warfare Command. The Development Operations

Coordination Document (DOCD) must contain the locations of any

permanent structures, fixed platforms, pipelines, or anchors planned to

be constructed or placed in the area covered by this lease as part of

such development operations. The DOCD must also contain the written

comments of the Commander, Mine Warfare Command on the proposed

activities. Prior to approval of the DOCD, the RD will consult with the

Commander in order to determine the DOCD's compatibility with scheduled

military operations.

For more information, consultation, and coordination, the lessee

must contact:

Commander, Mine Warfare Command, 325 Fifth Street, SE., Corpus Christi,

Texas 78419-5032, Phone: (512) 939-4895.

14. Information to Lessees.

(a) Supplemental Documents. For copies of the various documents

identified as available from the Gulf of Mexico regional office,

prospective bidders should contact the Public Information Unit,

Minerals Management Service, 1201 Elmwood Park Boulevard, New Orleans,

Louisiana 70123-2394, either in writing or by telephone at (504) 736-

2519 or (800) 200-GULF. For additional information, contact the

Regional Supervisor for Leasing and Environment at the above address or

by telephone at (504) 736-2759.

(b) Navigation Safety. Operations on some of the blocks offered for

lease may be restricted by designation of fairways, precautionary

zones, anchorages, safety zones, or traffic separation schemes

established by the U.S. Coast Guard pursuant to the Ports and Waterways

Safety Act (33 U.S.C. 1221 et seq.), as amended.

U.S. Corps of Engineers (COE) permits are required for the

construction of any artificial islands, installations, and other

devices temporarily or permanently attached to the seabed located on

the OCS in accordance with section 4(e) of the OCS Lands Act, as

amended.

For additional information, prospective bidders should contact Lt.

Commander Ken Parris, Assistant Marine Port Safety Officer, 8th Coast

Guard District, Hale Boggs Federal Building, New Orleans, Louisiana

70130, telephone (504) 589-6901. For COE information, prospective

bidders should contact Mr. Dolan Dunn, Chief Evaluation Section,

Regulatory Branch, P.O. Box 1229, Galveston, Texas 77553, telephone

(409) 766-3935.

(c) Offshore Pipelines. Lessees are advised that the Department of

the Interior and the Department of Transportation have entered into a

Memorandum of Understanding dated May 6, 1976, concerning the design,

installation, operation, and maintenance of offshore pipelines. Bidders

should consult both Departments for regulations applicable to offshore

pipelines.

(d) 8-Year Leases. Bidders are advised that any lease issued for a

term of 8 years will be cancelled after 5 years, following notice

pursuant to the OCS Lands Act, as amended, if within the initial 5-year

period of the lease, the drilling of an exploratory well has not been

initiated; or if initiated, the well has not been drilled in

conformance with the approved exploration plan criteria; or if there is

not a suspension of operations in effect, etc. Bidders are referred to

30 CFR 256.37.

(e) Affirmative Action. Revision of the Department of Labor

regulations on affirmative action requirements for Government

contractors (including lessees) has been deferred, pending review of

those regulations (see Federal Register of August 25, 1981, at 46 FR

42865 and 42968). Should changes become effective at any time before

the issuance of leases resulting from this sale, section 18 of the

lease form (Form MMS-2005, March 1986) would be deleted from leases

resulting from this sale. In addition, existing stocks of the

affirmative action forms described in paragraph 5 of this Notice

contain language that would be superseded by the revised regulations at

41 CFR 60-1.5(a)(1) and 60-1.7(a)(1). Submission of Form MMS-2032 (June

1985) and Form MMS-2033 (June 1985) will not invalidate an otherwise

acceptable bid, and the revised regulations' requirements will be

deemed to be part of the existing affirmative action forms.

(f) Ordnance Disposal Areas. Bidders are cautioned as to the

existence of two inactive ordnance disposal areas in the Corpus Christi

and East Breaks areas, shown on the map described in paragraph 13(a).

These areas were used to dispose of ordnance of unknown composition and

quantity. These areas have not been used since about 1970. Water depths

in the Corpus Christi area range from approximately 600 to 900 meters.

Water depths in the East Breaks area range from approximately 300 to

700 meters. Bottom sediments in both areas are generally soft,

consisting of silty clays. Exploration and development activities in

these areas require precautions commensurate with the potential

hazards.

(g) Archaeological Resources. Bidders are advised of the Notice to

Lessees (NTL) affecting the historic shipwreck requirements published

December 20, 1991, in the Federal Register pages 66076-66082 with an

effective date of February 17, 1992. This NTL details the survey

methodology, including a more intensive survey with line spacing 50

meters apart, and report writing requirements. A Letter to Lessees

(LTL) of November 30, 1990, lists those blocks identified as having a

high probability for encountering historic shipwrecks. Copies of the

NTL and LTL are available from the MMS Public Information Unit. See

paragraph 14(a).

(h) Proposed Rigs To Reefs. Bidders are advised that there are OCS

artificial reef sites and planning sites for the Gulf of Mexico. These

are generally located in water depths of less than 200 meters. While

all existing and proposed sites require a permit from the U.S. Army

Corps of Engineers, this ``Rigs to Reefs'' program is implemented

through State sponsorship through the following State Coordinators:

Alabama: Mr. Walter M. Tatum (205) 968-7578.

Louisiana: Mr. Rick Kasprzac (504) 765-2375.

Mississippi: Mr. Mike Buchanan (601) 385-5868.

Texas: Ms. Jan Coulbertson (512) 389-4863.

For more information on artificial reef sites, prospective bidders

should contact the above listed State Artificial Reef Coordinator for

their areas of interest.

(i) Archaeological Surveys and Reports. Bidders are advised that a

Proposed Rule has been published in the Federal Register dated Tuesday,

October 12, 1993, which proposes to grant specific authority to each

MMS Regional Director to require archaeological surveys and reports

(under 30 CFR 250.26). This proposed rule specifically states the

authority of MMS and conditions for requiring lessees or operators to

conduct archaeological resource surveys and submit the reports prior to

exploration, development and production, or installation of pipelines.

This rule, when adopted, may apply to all blocks leased in this sale.

Dated: June 27, 1994.

Tom Fry,

Director, Minerals Management Service.

Approved:

Nancy K. Hayes,

Acting Assistant Secretary--Land and Minerals Management.

[FR Doc. 94-16901 Filed 7-12-94; 8:45 am]

BILLING CODE 4310-MR-P