6874 Federal Register / Vol. 75, No. 29 / Friday, February 12, 2010 / Notices 

Library Address Phone No. 

Aransas County Public Library ................................................. 701 E Mimosa St., Rockport, TX 78382 .................................. 361–790–0153 

Submitting Comments/Issues for 

Comment 

We consider comments substantive if 

they: 

• Question, with reasonable basis, the 

accuracy of the information in the 

document; 

• Question, with reasonable basis, the 

adequacy of the document; 

• Present reasonable alternatives 

other than those presented in the 

document; and/or 

• Provide new or additional 

information relevant to the document. 

Next Steps 

After this comment period ends, we 

will analyze the comments and address 

them in the form of a final CCP and 

finding of no significant impact. 

Public Availability of Comments 

Before including your address, phone 

number, e-mail address, or other 

personal identifying information in your 

comment, you should be aware that 

your entire comment—including your 

personal identifying information—may 

be made publicly available at any time. 

While you can ask us in your comment 

to withhold your personal identifying 

information from public review, we 

cannot guarantee that we will be able to 

do so. 

Dated: January 7, 2010. 

Brian Millsap, 

Acting Regional Director, Region 2. 

[FR Doc. 2010–2911 Filed 2–11–10; 8:45 am] 

BILLING CODE 4310–55–P 

DEPARTMENT OF THE INTERIOR 

Minerals Management Service 

Outer Continental Shelf (OCS) Central 

Planning Area (CPA) Gulf of Mexico 

(GOM) Oil and Gas Lease Sale 213 

AGENCY: Minerals Management Service, 

Interior. 

ACTION: Final Notice of Sale (NOS) 213. 

SUMMARY: On Wednesday, March 17, 

2010, the Minerals Management Service 

(MMS) will open and publicly 

announce bids received for blocks 

offered in CPA Oil and Gas Lease Sale 

213, pursuant to the OCS Lands Act (43 

U.S.C. 1331–1356, as amended) and the 

regulations issued thereunder (30 CFR 

part 256). The Final NOS 213 Package 

contains information essential to 

bidders, and bidders are responsible for 

knowing the information within the 

documents contained in the Package. 

DATES: Public bid reading for the CPA 

Oil and Gas Lease Sale 213 will begin 

at 9 a.m., Wednesday, March 17, 2010, 

at the Louisiana 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 or Plaza Level, and 

parking should be available at Garage 6. 

All times referred to in this document 

are local New Orleans times, unless 

otherwise specified. 

Please Note: Starting with this sale, MMS 

is revising the lease terms for blocks in water 

depths of 400 meters to less than 1,600 

meters. Blocks in 400 to less than 800 meters 

change from an initial 8-year lease term 

(where a well has to be spudded within the 

first 5 years of the initial 8-year term to avoid 

lease cancellation) to a 5-year initial lease 

term (where spudding a well within the 

initial lease term would automatically extend 

the lease term to 8 years). Blocks in 800 to 

less than 1,600 meters change from a 10-year 

initial lease term to a 7-year initial lease term 

(where spudding a well within the initial 

lease term would automatically extend the 

lease term to 10 years). The MMS received 

9 comments on the lease terms changes in the 

Proposed Notice of Sale. 

ADDRESSES: Bidders can obtain a Final 

NOS 213 Package containing the NOS 

and the supporting documents by 

writing or calling the: Gulf of Mexico 

Region Public Information Unit, 

Minerals Management Service, 1201 

Elmwood Park Boulevard, New Orleans, 

Louisiana 70123–2394, (504) 736–2519 

or (800) 200–GULF, MMS GOM Internet 

Web site at: http://www.gomr.mms.gov. 

Filing of Bids: Bidders must submit 

sealed bids to the Regional Director 

(RD), MMS Gulf of Mexico Region, 1201 

Elmwood Park Boulevard, New Orleans, 

Louisiana, 70123–2394, between 8 a.m. 

and 4 p.m. on normal working days, and 

from 8 a.m. to the Bid Submission 

Deadline of 10 a.m. on Tuesday, March 

16, 2010, the day before the lease sale. 

If bids are mailed, please address the 

envelope containing all of the sealed 

bids as follows: Attention: Supervisor, 

Leasing and Financial Responsibility 

Unit (MS 5422), Leasing and 

Environment, Leasing Activities 

Section, MMS Gulf of Mexico Region, 

1201 Elmwood Park Boulevard, New 

Orleans, Louisiana 70123–2394. 

Contains Sealed Bids for CPA Oil and 

Gas Lease Sale 213, Please Deliver to 

Ms. Nancy Kornrumpf, 6th Floor, 

Immediately. 

Please note: Bidders mailing bid(s) are 

advised to call Ms. Nancy Kornrumpf at (504) 

736–2726 or Ms. Cindy Thibodeaux at (504) 

736–2809 immediately after putting their 

bid(s) in the mail. If the RD receives bids 

later than the time and date specified above, 

he will return those bids unopened to 

bidders. Should an unexpected event such as 

flooding or travel restrictions be significantly 

disruptive to bid submission, the MMS may 

extend the Bid Submission Deadline. Bidders 

may call (504) 736–0557 or access our MMS 

Gulf of Mexico Internet Web site at: http:// 

www.gomr.mms.gov for information about 

the possible extension of the Bid Submission 

Deadline due to such an event. 

Areas Offered for Leasing: The MMS 

is offering for leasing in CPA Oil and 

Gas Lease Sale 213 all blocks and partial 

blocks listed in the document ‘‘List of 

Blocks Available for Leasing’’ included 

in the Final NOS 213 Package. All of 

these blocks are shown on the following 

leasing maps and Official Protraction 

Diagrams (OPD’s): 

Outer Continental Shelf Leasing Maps—Louisiana Map Numbers 1 Through 12 

(These 30 maps sell for $2.00 each) 

LA1 ................................................................................................ West Cameron Area (Revised November 1, 2000). 

LA1A ............................................................................................. West Cameron Area, West Addition (Revised February 28, 2007). 

LA1B .............................................................................................. West Cameron Area, South Addition (Revised February 28, 2007). 

LA2 ................................................................................................ East Cameron Area (Revised November 1, 2000). 

LA2A ............................................................................................. East Cameron Area, South Addition (Revised November 1, 2000). 

LA3 ................................................................................................ Vermilion Area (Revised November 1, 2000). 

LA3A ............................................................................................. South Marsh Island Area (Revised November 1, 2000). 

LA3B .............................................................................................. Vermilion Area, South Addition (Revised November 1, 2000). 

LA3C .............................................................................................. South Marsh Island Area, South Addition (Revised November 1, 2000). 


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LA3D .............................................................................................. South Marsh Island Area, North Addition (Revised November 1, 2000). 

LA4 ................................................................................................ Eugene Island Area (Revised November 1, 2000). 

LA4A ............................................................................................. Eugene Island Area, South Addition (Revised November 1, 2000). 

LA5 ................................................................................................ Ship Shoal Area (Revised November 1, 2000). 

LA5A ............................................................................................. Ship Shoal Area, South Addition (Revised November 1, 2000). 

LA6 ................................................................................................ South Timbalier Area (Revised November 1, 2000). 

LA6A ............................................................................................. South Timbalier Area, South Addition (Revised November 1, 2000). 

LA6B .............................................................................................. South Pelto Area (Revised November 1, 2000). 

LA6C .............................................................................................. Bay Marchand Area (Revised November 1, 2000). 

LA7 ................................................................................................ Grand Isle Area (Revised November 1, 2000). 

LA7A ............................................................................................. Grand Isle Area, South Addition (Revised February 17, 2004). 

LA8 ................................................................................................ West Delta Area (Revised November 1, 2000). 

LA8A ............................................................................................. West Delta Area, South Addition (Revised November 1, 2000). 

LA9 ................................................................................................ South Pass Area (Revised November 1, 2000). 

LA9A ............................................................................................. South Pass Area, South and East Additions (Revised November 1, 2000). 

LA10 .............................................................................................. Main Pass Area (Revised November 1, 2000). 

LA10A ........................................................................................... Main Pass Area, South and East Additions (Revised November 1, 2000). 

LA10B ............................................................................................ Breton Sound Area (Revised November 1, 2000). 

LA11 .............................................................................................. Chandeleur Area (Revised November 1, 2000). 

LA11A ........................................................................................... Chandeleur Area, East Addition (Revised November 1, 2000). 

LA12 .............................................................................................. Sabine Pass Area (Revised February 28, 2007). 

Outer Continental Shelf Official Protraction Diagrams 

(These 19 diagrams sell for $2.00 each.) 

NG15–02 ........................................................................................ Garden Banks (Revised February 28, 2007). 

NG15–03 ........................................................................................ Green Canyon (Revised November 1, 2000). 

NG15–05 ........................................................................................ Keathley Canyon (Revised February 28, 2007). 

NG15–06 ........................................................................................ Walker Ridge (Revised November 1, 2000). 

NG15–08 ........................................................................................ Sigsbee Escarpment (Revised February 28, 2007). 

NG15–09 ........................................................................................ Amery Terrace (Revised October 25, 2000). 

NG16–01 ........................................................................................ Atwater Valley (Revised November 1, 2000). 

NG16–02 ........................................................................................ Lloyd Ridge (Revised August 1, 2008). 

NG16–04 ........................................................................................ Lund (Revised November 1, 2000).

NG16–05 ........................................................................................ Henderson (Revised August 1, 2008). 

NG16–07 ........................................................................................ Lund South (Revised November 1, 2000). 

NG16–08 ........................................................................................ Florida Plain (Revised February 28, 2007). 

NH15–12 ........................................................................................ Ewing Bank (Revised November 1, 2000). 

NH16–04 ........................................................................................ Mobile (Revised November 1, 2000). 

NH16–05 ........................................................................................ Pensacola (Revised February 28, 2007). 

NH16–07 ........................................................................................ Viosca Knoll (Revised November 1, 2000). 

NH16–08 ........................................................................................ Destin Dome (Revised February 28, 2007). 

NH16–10 ........................................................................................ Mississippi Canyon (Revised November 1, 2000). 

NH16–11 ........................................................................................ De Soto Canyon (Revised August 1, 2008). 

Bidders are advised that the CentralEastern Planning Area Boundary was 

revised to match the Federal OCS 

Administrative Boundary for the DeSoto 

Canyon, Lloyd Ridge, and Henderson 

Areas. The boundary splits blocks that 

were formerly ‘‘stair-stepped’’ and can 

be seen on the ‘‘Stipulations and 

Deferred Blocks’’ or ‘‘Lease Terms and 

Economic Conditions’’ maps included in 

the Final NOS 213 Package. The 

boundaries along the Pensacola, Destin 

Dome, and Florida Plain Areas will 

remain ‘‘stair-stepped’’ for this lease 

sale, as they were for CPA Sale 208. The 

administrative boundaries can also be 

viewed at: http://www.mms.gov/ld/

AdminBoundaries.htm. 

Please note: A CD–ROM (in ARC/INFO and 

Acrobat (.pdf) format) containing all of the 

GOM leasing maps and OPD’s, except for 

those not yet converted to digital format, is 

available from the GOM Region Public 

Information Unit for a price of $15. These 

GOM leasing maps and OPD’s are also 

available for free online in .pdf and .gra 

format at: http://www.gomr.mms.gov/

homepg/lsesale/map_arc.html. 

For the current status of all CPA 

leasing maps and OPD’s, please refer to 

66 FR 28002 (published May 21, 2001), 

69 FR 23211 (published April 28, 2004), 

72 FR 27590 (published May 16, 2007), 

72 FR 35720 (published June 29, 2007), 

and 73 FR 63505 (October 24, 2008). In 

addition, Supplemental Official OCS 

Block Diagrams (SOBD’s) are available 

for blocks that contain the ‘‘U.S. 200 

Nautical Mile Limit’’ line and the ‘‘U.S.- 

Mexico Maritime Boundary’’ line. These 

SOBD’s are also available from the GOM 

Region Public Information Unit. For 

additional information, please call Ms. 

Tara Montgomery at (504) 736–5722. 

All blocks are shown on these leasing 

maps and OPD’s. The available Federal 

acreage of all whole and partial blocks 

in this lease sale is shown in the 

document ‘‘List of Blocks Available for 

Leasing’’ included in the Final NOS 213 

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 ‘‘Central Planning Area Lease 

Sale 213—Unleased Split Blocks and 

Available Unleased Acreage of Blocks 

with Aliquots and Irregular Portions 

Under Lease or Deferred’’ included in 

the Final NOS 213 Package. 

Areas Not Available for Leasing: The 

following whole and partial blocks are 

not offered for lease in this lease sale: 

Although currently unleased, the bid 

decision on the following block is under 

appeal and bids will not be accepted: 

Mississippi Canyon (OPD NH16–10) 

Block 943 

This block is deferred until measures 

to ensure the safety of decommissioning 

operations are completed: 

Green Canyon (OPD NG15–03) 

Block 20 

Whole blocks and portions of blocks 

that lie within the 1.4 nautical mile 

buffer zone north of the ‘‘Western Gap’’ 

continental shelf boundary between the 

United States and Mexico: 


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Amery Terrace (OPD NG 15–09) 

Whole Blocks: 280, 281, 318 through 

320, and 355 through 359 

Portions of Blocks: 235 through 238, 273 

through 279, and 309 through 317 

Sigsbee Escarpment (OPD NG 15–08) 

Whole Blocks: 239, 284, 331 through 

341 

Portions of Blocks: 151, 195, 196, 240, 

241, 285 through 298, 342 through 

349 

Whole blocks and portions of blocks 

that are adjacent to or beyond the 

United States Exclusive Economic Zone, 

in or adjacent to the area known as the 

northern portion of the Eastern Gap: 

Lund South (OPD NG 16–07) 

Whole Blocks: 128, 129, 169 through 

173, 208, through 217, 248 through 

261, 293 through 305, and 349 

Henderson (OPD NG 16–05) 

Whole Blocks: 466, 508 through 510, 

551 through 554, 594 through 599, 

637 through 643, 679 through 687, 

722 through 731, 764 through 775, 

807 through 819, 849 through 862, 

891 through 905, 933 through 949, 

and 975 through 992 

Portions of Blocks: 467, 511, 555, 556, 

600, 644, 688, 732, 776, 777, 820, 821, 

863, 864, 906, 907, 950, 993, and 994 

Florida Plain (OPD NG 16–08) 

Whole Blocks: 5 through 24, 46 through 

67, 89 through 110, 133 through 154, 

177 through 197, 221 through 240, 

265 through 283, 309 through 327, 

and 363 through 370 

Whole blocks and portions of blocks 

deferred by Gulf of Mexico Energy 

Security Act: 

Pensacola (OPD NH 16–05) 

Blocks: 751 through 754, 793 through 

798, 837 through 842, 881 through 

886, 925 through 930, and 969 

through 975 

Destin Dome (OPD NH 16–08) 

Whole Blocks: 1 through 7, 45 through 

51, 89 through 96, 133 through 140, 

177 through 184, 221 through 228, 

265 through 273, 309 through 317, 

353 through 361, 397 through 405, 

441 through 450, 485 through 494, 

529 through 538, 573 through 582, 

617 through 627, 661 through 671, 

705 through 715, 749 through 759, 

793 through 804, 837 through 848, 

881 through 892, 925 through 936, 

and 969 through 981 

DeSoto Canyon (OPD NH 16–11) 

Whole Blocks: 1 through 15, 45 through 

59, and 92 through 102 

Portions of Blocks: 16, 60, 61, 89 

through 91, 103 through 105, and 135 

through 147 

Henderson (OPD NG 16–05) 

Portions of Blocks: 114, 158, 202, 246, 

290, 334, 335, 378, 379, 422, and 423 

Statutes and Regulations: Each lease 

issued in this lease sale is subject to the 

OCS Lands Act of August 7, 1953; 43 

U.S.C. 1331 et seq., as amended, 

hereinafter called ‘‘the Act;’’ regulations 

promulgated pursuant thereto; other 

statutes and regulations in existence 

upon the effective date of the lease; and 

those statutes enacted and regulations 

promulgated thereafter, except to the 

extent they are inconsistent with an 

express provision of the lease. This 

language conforms this term of OCS 

mineral leases with that of onshore, 

Bureau of Land Management (BLM) 

leases and avoids a narrow and never 

intended reading of the previous lease 

language to limit the obligation of 

lessees to comply with later enacted 

laws. 

The MMS will use the recently 

revised Form MMS–2005 (October 2009) 

to convey leases; it can be viewed at: 

http://www.gomr.mms.gov/homepg/ 

mmsforms/FormMMS-2005.pdf. The 

lease form will be modified with the 

specific terms, conditions and 

stipulations applicable to each 

individual lease. Addressed below are 

the collective terms, conditions, and 

stipulations applicable to this sale. 

Where applicable, these terms, 

conditions and stipulations will be 

incorporated into each lease by 

addendum. 

Lease Terms and Conditions: Initial 

periods, extensions of initial periods, 

minimum bonus bid amounts, rental 

rates, escalating rental rates for leases 

with an approved extension of the 

initial 5-year period, royalty rate, 

minimum royalty, and royalty 

suspension provisions, if any, 

applicable to this sale are noted below. 

Depictions of related areas are shown on 

the map ‘‘Final, Central Planning Area, 

Lease Sale 213, March 17, 2010, Lease 

Terms and Economic Conditions,’’ for 

leases resulting from this lease sale. 

Leases in water depths of 400 meters 

to less than 800 meters will be offered 

with a 5-year term with the opportunity 

to earn an extension of 3 additional 

years (5+3 years). The MMS is not 

offering leases in the sale with an 8-year 

term for these water depths as provided 

by regulations at 30 CFR 256.37(a)(3). 

This change relieves the MMS of the 

administrative burden of taking action 

to cancel a lease, and instead requires 

the lessee to apply for an extension with 

evidence that it has earned it by 

spudding a well to secure MMS 

approval. 

A new lease term of 7 years with the 

opportunity to earn an extension of an 

additional 3 years (7+3 years) will apply 

to leases instead of the previous 10-year 

lease term in water depths of 800 to less 

than 1,600 meters. The deepwater 

challenges and drilling difficulties 

justifying longer lease terms under the 

OCSLA in 800 to less than 1,600 meters 

have diminished considerably, although 

not completely, over the last 25 years. 

The proposed 7+3 years lease term 

recognizes that exploration can typically 

be undertaken within the initial 7-year 

lease term, but development still may 

require the full 10-year term. In both the 

400–800 and 800–1,600 meter cases, the 

lease expires at the end of the initial 

period if no well has been spudded 

before the end of the 5th or 7th year, 

respectively. 

Initial Periods: 5 years for blocks in 

water depths of less than 400 meters 

(subject to administrative requirements 

noted below, spudding of an ultra-deep 

exploratory well within the 5-year 

initial lease term will extend the lease 

term to 8 years); 5 years for blocks in 

water depths of 400 to less than 800 

meters (subject to administrative 

requirements noted below, the initial 

lease term will be extended to 8 years 

conditional upon the receipt of evidence 

of the spudding of an exploratory well 

within the initial 5-year lease term); 7 

years for blocks in water depths of 800 

meters to less than 1,600 meters (subject 

to administrative requirements noted 

below, the initial lease term will be 

extended to 10 years upon receipt of 

evidence of the spudding of an 

exploratory well within the initial 7- 

year lease term); and 10 years for blocks 

in water depths of 1,600 meters or 

deeper. 

Water depth (meters) Term (years) 

0 to <400 ....................................................... 5 years and +3 years for drilling >25,000 feet TVD SS (see Extensions of Initial Periods below). 

400 to <800 ................................................... 5 years and +3 years for drilling (see Extensions of Initial Periods below). 

800 to <1,600 ................................................ 7 years and +3 years for drilling (see Extensions of Initial Periods below). 


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Water depth (meters) Term (years) 

1,600+ ............................................................ 10 years. 

Extensions of Initial Periods: 

1. The 5-year initial lease term for a 

lease in water depths of less than 400 

meters and issued from this sale may be 

extended to 8 years if a well, targeting 

hydrocarbons below 25,000 feet true 

vertical depth subsea (TVD SS), is 

spudded within the first 5 years of the 

initial lease term. The 3-year extension 

will be granted in cases where the well 

is drilled to a target below 25,000 feet 

TVD SS and may also be in cases where 

the well does not reach a depth below 

25,000 feet TVD SS due to mechanical 

or safety reasons. 

In order for the 5-year initial lease 

term to be extended to 8 years, the 

lessee is required to submit to the 

Regional Supervisor for Production and 

Development, within 30 days after 

completion of the drilling operation, a 

letter providing the well number, spud 

date, information demonstrating the 

target below 25,000 feet TVD SS, and, if 

applicable, any safety or mechanical 

problems encountered that prevented 

the well from reaching a depth below 

25,000 feet TVD SS. The Regional 

Supervisor must concur in writing that 

the conditions have been met to extend 

the lease term 3 years. The Regional 

Supervisor will provide written 

confirmation of any lease extension 

within 30 days of receipt of the letter 

provided. 

For any lease that has a well spudded 

in the first 5 years of the initial lease 

term with a hydrocarbon target below 

25,000 feet TVD SS, the regulations 

found at 30 CFR 250.175 will not be 

applicable at the end of the 5th year. 

For any lease that does not have a 

well spudded in the first 5 years of the 

initial lease term that targets 

hydrocarbons below 25,000 feet TVD 

SS, suspensions authorized by the 

regulations then in effect will be 

available, but the 3-year extension will 

not be available. Before the end of the 

8th year, the lessee may seek a 

suspension under the regulations then 

in effect. 

2. The 5-year initial lease term for a 

lease in water depths of 400 meters to 

less than 800 meters and issued from 

this sale will be extended to 8 years, if 

a well is spudded within the initial 5- 

year lease term; otherwise, the lease 

expires on its own terms. 

In order for the 5-year initial lease 

term to be extended to 8 years, the 

lessee is required to submit to the 

appropriate District Manager within 30 

days after spudding an exploratory well 

a letter providing the well number and 

spud date, and requesting confirmation 

of a 3-year extension of the initial lease 

term. The District Manager will review 

the request and make a determination. 

A written response will be sent to the 

lessee documenting the District 

Manager’s decision within 30 days of 

receipt of the request. For an extension 

to be granted, the District Manager must 

concur in writing that the conditions 

have been met to extend the lease term 

3 years. Before the end of the 5th year 

on a lease without a well or the 8th year 

on a lease with a timely well, the lessee 

may seek a suspension under the 

regulations then in effect. 

3. The 7-year initial lease term for a 

lease in water depths of 800 meters to 

less than 1,600 meters and issued from 

this sale will be extended to 10 years if 

a well is spudded within the initial 7- 

year lease term; otherwise the lease 

expires on its own terms. 

In order for the 7-year initial lease 

term to be extended to 10 years, the 

lessee is required to submit to the 

appropriate District Manager, within 30 

days after spudding an exploratory well 

a letter providing the well number and 

spud date, and requesting confirmation 

of a 3-year extension of the initial lease 

term. The District Manager will review 

the request and make a determination. 

A written response will be sent to the 

lessee documenting the District 

Manager’s decision within 30 days of 

receipt of the request. For an extension 

to be granted, the District Manager must 

concur in writing that the conditions 

have been met to extend the lease term 

3 years. 

Before the end of the 7th year on a 

lease without a well or the 10th year on 

a lease with a timely well, the lessee 

may seek a suspension under the 

regulations then in effect. 

On November 16, 2009 MMS 

published the Proposed Notice of Sale 

for Central Gulf of Mexico Sale 213. 

Included in the proposed terms and 

conditions for Sale 213 were two new 

lease terms. A new 5+3 years term in 

400 to less than 800 meters of water 

replaced the previous 8-year lease term 

that was subject to a requirement to start 

drilling by the 5th year and a new lease 

term of 7 years with an earned extension 

of an additional 3 years (7+3 years) was 

substituted for the previous 10-year 

lease term in 800 to less than 1,600 

meters of water. After carefully 

considering all written comments on the 

proposed 5+3 years and 7+3 years lease 

terms, the MMS has decided to proceed 

with the shortened lease terms for Sale 

213. 

The MMS received 9 public 

comments on the new lease terms in 

response to the Proposed Notice of Sale 

for Central Gulf of Mexico Sale 213, 

published on November 16, 2009. Of the 

nine comments, five were from oil and 

gas companies, two from industry trade 

organizations and two from non-profit 

organizations. Copies of these comment 

letters are posted at http:// 

www.gomr.mms.gov/homepg/lsesale/ 

213/cgom213.html. All of the comments 

that specifically addressed the 5+3 years 

lease term in 400 to less than 800 meters 

expressed tentative or outright support. 

All of the comment letters, except one, 

expressed concern about the stricter 7+3 

years lease term in 800 to less than 

1,600 meters water depth and the 

impact on OCS development. The 

concerns raised in these letters are 

addressed below. 

Comment: The most common theme 

among commenters was that some 

leases take longer than 7 years to get 

‘‘drill ready’’ due to poor seismic 

imaging and the increasingly complex 

geological challenges in the maturing 

Gulf of Mexico basin. Most of the 

remaining undiscovered economic 

reservoirs are very deep, subsalt and 

include the challenges of high pressure 

and high temperature that require long 

periods of time to acquire and process 

seismic images before risking an 

exploratory well that has a small chance 

of producing a commercial discovery. 

Commenters suggested that the 10-year 

lease term should remain, or 

suspensions should be granted for 

seismic imaging and reprocessing. 

MMS Response: The MMS recognizes 

the risks and challenges of ultra deep 

and subsalt plays and offers the 

following rationale for the adequacy of 

the new initial periods in this sale: 

• The MMS expects a substantial 

amount of geological and geophysical 

(G&G) work to be completed prior to 

bidding on the lease. 

• Seven-year lease terms are normally 

sufficient for an operator to evaluate 

seismic data and commence drilling in 

the respective water depths. This is 

confirmed by the statistical data on 

producing deepwater leases that have 

completed their primary terms in 800 to 

less than 1,600 meters. Generally, those 


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that were not drilled by year 7 were not 

drilled until after lease year 10. That 

means they confronted circumstances 

that prevented drilling for reasons 

beyond the lessee’s control and thus 

were authorized extensions beyond the 

10-year primary term through MMS 

approved suspensions or inclusion in an 

approved federal unit being maintained 

by lease-holding operations. The 

flexibility to grant suspensions on a 

case-by-case basis or evaluate potential 

unitization agreements is not affected by 

the lease term changes beginning with 

this sale. 

• If an operator does not explore a 

lease during the revised initial term and 

the lease expires, another operator with 

a different perspective on the G&G and 

drilling may timely acquire and 

expeditiously drill the acreage. 

• Allowing lengthy periods for 

interpreting seismic data, planning and 

drilling an exploratory well is not 

consistent with promoting diligent 

development as mandated by the OCS 

Lands Act. We anticipate continued 

improvements in seismic imaging and 

processing techniques leading to shorter 

timelines. The MMS has found that few 

exploratory wells resulted from changes 

to the suspension regulations issued in 

2002 and 2005 under 30 CFR 250.175(b) 

and (c) as related to subsalt and ultradeep targets. Although these regulations 

apply to leases in less than 800 meters 

of water depth, it is reasonable to expect 

a similar result in water depths of 800 

meters or deeper. Accordingly, MMS 

maintains that the 5- and 7-year initial 

terms are adequate time periods to 

interpret seismic data, plan and begin 

an exploratory well. 

Comment: Several commenters 

suggested that the initial lease term 

should consider MMS’ ability to grant 

suspensions beyond the initial term for 

actions or events outside of a lessee’s 

control even if they have not drilled an 

exploratory well. 

MMS Response: For the 5+3 years and 

7+3 lease years terms, the initial periods 

are 5 and 7 years and the extended 

initial periods are 8 and 10 years, 

respectively. MMS has the authority to 

grant suspensions as specified by 

regulation (30 CFR 250.168–177) under 

certain conditions. Normally, 

suspensions of operations (SOO’s) are 

granted in situations where an operator 

was scheduled to commence a leaseholding operation within the term of a 

lease but was prevented from doing so 

for reasons beyond their control. 

Reasons beyond the control of the lessee 

may include unforeseen circumstances 

such as adverse weather, unavoidable 

accidents, or short delays in a 

prearranged rig release date. The MMS 

will continue to consider SOO’s 

consistent with the regulations for these 

unique cases. 

Comment: Several commenters 

suggested that MMS has already taken 

measures that encourage lessees to 

explore their leases. For example, the 

two-step rental rates in leases greater 

than 400 meters provide companies 

with an incentive to efficiently explore, 

develop, and produce their leases. Fair 

market value, diligence and expeditious 

development are already achieved 

through the existing lease terms and 

regulations. 

One comment letter from 

Environment America espoused the 

opposing view. It supported further 

increasing the rental rates specifically in 

years 9 and 10 of the lease, asserting 

that increasing rental rates over the 

years of the lease encourages diligence 

by lease holders. 

MMS Response: While the two-step 

rental in leases 400 meters and greater 

provides a fiscal incentive to lessees to 

expeditiously develop a lease, DOI 

cannot rely only on a fiscal lease 

provision to achieve programmatic goals 

across all leases. The initial lease term 

provides an administrative mechanism 

to ensure that, absent unusual 

circumstances, active leases will 

commence exploration by a specific 

time following acquisition. Moreover, 

statistics on producing deepwater leases 

that have completed their primary term 

in the last 5 years show that most of the 

leases in 800 to less than 1,600 meters 

have been able to spud a well by year 

7. Generally, leases not drilled by year 

7 were first drilled after lease year 10, 

meaning they received MMS approved 

suspensions or unitization with other 

leases where timely drilling did occur. 

In addition, starting with this sale, 

MMS will require that the lessee 

commence an exploration well to hold 

a lease located in 800 to 1,600 meters of 

water depth beyond year 7 of the initial 

lease term. If that well encounters 

potentially commercial quantities of oil 

and gas, typically that alone will be 

sufficient cause to undertake timely 

development. If that well is dry, then 

the lessee can benefit from accelerated 

tax write-offs by timely relinquishing 

the lease. Accordingly, it may not be 

necessary or even desirable to further 

raise rentals in years 9 and 10 of the 

extended lease term to encourage 

diligent exploration and development. 

Comment: Chevron suggested that in 

the event MMS decides to move forward 

with issuing leases for 7-year terms with 

3-year extensions, the Final Notice of 

Sale for OCS Lease Sale 213 should be 

modified to clarify that 7-year leases 

will be ‘‘extended to 10 years if a well 

is spudded on the lease or in an 

approved unit which includes the lease 

within the initial 7-year lease term.’’ 

Chevron added that they believe it is 

important to include the underlined 

language in the preceding sentence to 

ensure that there is no 

misunderstanding as to when the 3-year 

extension will or will not be granted. 

MMS Response: The comment by 

Chevron suggests a change is needed in 

unitization policy in conjunction with 

MMS shortening certain lease terms. 

The MMS disagrees with Chevron’s 

implication that we should change or 

need to formally clarify in the lease 

instrument a unitization policy that 

already is addressed in Article 17.2(a) of 

the model Unit Agreement that we are 

not modifying at this time. The MMS 

intends to continue following these 

existing unitization provisions under 

the new lease term policy that is 

commencing with this sale. 

Minimum Bonus Bid Amounts: A 

bonus bid will not be considered for 

acceptance unless it provides for a cash 

bonus in the amount of $25 or more per 

acre or fraction thereof for blocks in 

water depths of less than 400 meters, or 

$37.50 or more per acre or fraction 

thereof for blocks in water depths of 400 

meters or deeper. To confirm the exact 

calculation of the minimum bonus bid 

amount for each block, see ‘‘List of 

Blocks Available for Leasing,’’ contained 

in the Final NOS 213 Package. Please 

note that bonus bids must be in whole 

dollar amounts (i.e., any cents will be 

disregarded by the MMS). 

Rental Rates: Annual rentals for 

leases issued in this sale are to be paid 

at the rental rates summarized in the 

following table on or before the 1st day 

of each lease year until determination of 

well producibility is made, then at the 

expiration of each lease year until the 

start of royalty-bearing production. 

SALE 213 RENTAL RATES PER ACRE OR FRACTION THEREOF

Water depth in meters Years 1–5 Years 6, 7, & 8+ 

0 to <200 ........................................................................................................................................ $7.00 $14.00, $21.00 & $28.00. 


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SALE 213 RENTAL RATES PER ACRE OR FRACTION THEREOF—Continued 

Water depth in meters Years 1–5 Years 6, 7, & 8+ 

200 to <400 .................................................................................................................................... 11.00 $22.00, $33.00 & $44.00. 

400 to <800 .................................................................................................................................... 11.00 $16.00. 

800+ ................................................................................................................................................ 11.00 $16.00. 

Escalating Rental Rates for leases with 

an approved extension: Any lease in 

water depths less than 400 meters and 

granted a 3-year extension beyond the 5- 

year initial period as provided above 

will pay an escalating rental rate. The 

escalating rental rates after the 5th year 

for blocks in less than 400 meters will 

become fixed and no longer escalate if 

another well is spudded during the 3- 

year extended term of the lease that 

targets hydrocarbons below 25,000 feet 

TVD SS, and MMS concurs that this has 

occurred. 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: Leases will incorporate 

an 18.75 percent royalty rate for blocks 

in all water depths, except during 

periods of royalty suspension, to be paid 

monthly on the last day of the month 

following the month during which the 

production is obtained. 

Minimum Royalty: Leases will 

incorporate a $7.00 per acre or fraction 

thereof per year for blocks in water 

depths of less than 200 meters and 

$11.00 per acre or fraction thereof per 

year for blocks in water depths of 200 

meters or deeper regardless of the year 

of the lease and notwithstanding any 

royalty relief volume. Minimum royalty 

is to be paid at the expiration of each 

lease year beginning in the year in 

which royalty bearing production 

commences, and continuing thereafter 

regardless of either the lease year or 

whether any royalty suspension may 

apply. A credit will be applied for any 

actual royalty paid on the lease during 

the lease year in which minimum 

royalty is owed on the lease. If the 

actual royalty paid on the lease for a 

given lease year exceeds the minimum 

royalty otherwise owed, then no 

minimum royalty payment is due. 

Royalty Suspension Provisions: Leases 

with royalty suspension volumes (RSV) 

are authorized under existing MMS 

rules at 30 CFR parts 203 and 260. There 

are no circumstances under which a 

single lease could receive a royalty 

suspension both for deep gas production 

and for deepwater production. 

Deep and Ultra-Deep Gas Royalty 

Suspensions 

A lease issued as a result of this sale 

may be eligible for royalty relief for 

deep and ultra-deep wells pursuant to 

30 CFR 203.0 and 30 CFR 203.30– 

203.49. The regulations provide deep 

gas incentives in two ways. First, they 

provide an RSV of 35 billion cubic feet 

of natural gas for certain wells 

completed in a drilling depth category 

(20,000 feet TVD SS or deeper) for 

leases in 0 to less than 400 meters of 

water. 

Second, the regulations offer RSVs to 

leases in 200 to less than 400 meters of 

water that are the same as the RSVs that 

were previously offered in shallower 

water, i.e., in zero to 200 meters of 

water. These RSV incentives are 

conditional on applicable price 

thresholds and require that wells 

completed from 15,000 to 20,000 feet 

TVD SS on leases in 200 to less than 400 

meters of water must begin production 

before May 3, 2013. 

Deepwater Royalty Suspensions 

The following Royalty Suspension 

Provisions apply to deepwater oil and 

gas production: A lease issued as a 

result of this sale may be eligible for 

deepwater royalty relief mandated by 

section 345 of the Energy Policy Act of 

2005 (EPAct05). Section 345 directs 

continuation of the MMS deepwater 

incentive program utilized since 2001 in 

the GOM for leases issued between 

August 8, 2005, and August 8, 2010, and 

provides for an increase in RSV from 12 

million barrels of oil equivalent 

(MMBOE) to 16 MMBOE for leases in 

water depths greater than 2,000 meters. 

The RSVs provided for deepwater leases 

are subject to applicable price 

thresholds, as discussed below. The 

following royalty suspension provisions 

for deepwater oil and gas production 

apply to a lease issued as a result of this 

sale. These provisions are similar to, 

and mean the same as, the language 

used in recent sales, except for some 

clarifying text and updated examples. In 

addition to these provisions and the 

EPAct05, refer to 30 CFR 218.151 and 

applicable provisions of sections 

260.120–260.124 for regulations on how 

royalty suspensions relate to field 

assignment, product types, rental 

obligations, and supplemental royalty 

relief. 

1. A lease in water depths of 400 

meters or more will receive a royalty 

suspension as follows, according to the 

water depth range in which the lease is 

located: 

400 meters to less than 800 meters: 5 

MMBOE. 

800 meters to less than 1,600 meters: 9 

MMBOE. 

1,600 meters to 2,000 meters: 12 

MMBOE. 

Greater than 2,000 meters: 16 MMBOE. 

2. In any calendar year during which 

the arithmetic average of the daily 

closing prices for the nearby delivery 

month on the New York Mercantile 

Exchange (NYMEX) for the applicable 

product exceeds the adjusted product 

price threshold, the lessee must pay 

royalty on production that would 

otherwise receive royalty relief under 30 

CFR part 260 or supplemental relief 

under 30 CFR part 203, and such 

production will count towards the 

royalty suspension volume. 

(a) The base level price threshold for 

light sweet crude oil is $37.18 per barrel 

expressed in 2008 dollars. The adjusted 

oil price threshold in any subsequent 

calendar year is computed by changing 

the price threshold applicable in the 

immediately preceding calendar year by 

the percentage by which the implicit 

price deflator for the gross domestic 

product has changed during the 

calendar year. The implicit price 

deflator adjustment to determine the 

2009 price thresholds will occur in late 

March 2010 when the Bureau of 

Economic Analysis issues its 2009 

inflation estimate. 

(b) The base level price threshold for 

natural gas is $4.65 per million British 

thermal units (MMBTU) expressed in 

2008 dollars. The adjusted gas price 

threshold in any subsequent calendar 

year is computed by changing the price 

threshold applicable in the immediately 

preceding calendar year by the 

percentage by which the implicit price 

deflator for the gross domestic product 

has changed during the calendar year. 

(c) As an example, if the implicit 

price deflator indicates that inflation is 

3 percent in 2009, then the price 

threshold in calendar year 2009 would 

become $38.30 per barrel for oil, and 

$4.79 for gas. Therefore, royalty on oil 

production in calendar year 2009 would 

be due if the average of the daily closing 

prices for the nearby delivery month on 

the NYMEX in 2009 exceeds $38.30 per 


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barrel, and royalty on gas production in 

calendar year 2009 would be due if the 

average of the daily closing prices for 

the nearby delivery month on the 

NYMEX in 2009 exceeds $4.79 per 

MMBTU. 

(d) The MMS provides notice in 

March of each year when adjusted price 

thresholds for the preceding year were 

exceeded. Once this determination is 

made, based on the then-most-recent 

implicit price deflator information, it 

will not be revised regardless of any 

subsequent adjustments in the implicit 

price deflator published by the U.S. 

Government for the preceding year. 

Information on price thresholds and the 

methodology for applying the preceding 

year’s implicit price deflator is available 

at the MMS Web site at: http:// 

www.mms.gov/econ/ and in the 2008 

Notice of the Annual Price Threshold 

Determination (74 FR 26879). 

(e) In cases where the actual average 

price for the product exceeds the 

adjusted price threshold in any calendar 

year, royalties must be paid no later 

than 90 days after the end of the year 

(see 30 CFR 260.122(b)(2) for more 

detail) and royalties must be paid 

provisionally in the following calendar 

year (see 30 CFR 260.122(c) for more 

detail). 

(f) Full royalties are owed on all 

production from a lease after the RSV is 

exhausted, beginning on the first day of 

the month following the month in 

which the RSV is exhausted. 

Lease Stipulations: The map ‘‘Final, 

Central Planning Area, Lease Sale 213, 

March 17, 2010, Stipulations and 

Deferred Blocks’’ depicts the blocks on 

which one or more of 13 lease 

stipulations apply: (1) Topographic 

Features; (2) Live Bottoms; (3) Military 

Areas; (4) Evacuation; (5) Coordination; 

(6) Blocks South of Baldwin County, 

Alabama; (7) Law of the Sea Convention 

Royalty Payment; (8) Protected Species; 

(9) Limitation on Use of Seabed and 

Water Column in the Vicinity of the 

Approved Port Pelican Offshore 

Liquefied Natural Gas (LNG) Deepwater 

Port Receiving Terminal, Vermilion 

Area, Blocks 139 and 140; (10) Below 

Seabed Operations on Mississippi 

Canyon, Block 920; (11) Below Seabed 

Operations on a Portion of Mississippi 

Canyon, Block 650; (12) Below Seabed 

Operations on a Portion of Walker 

Ridge, Blocks 293 and 294; and (13) 

Below Seabed Operations on a Portion 

of Mississippi Canyon Blocks 692 and 

735. 

The texts of the stipulations are 

contained in the document ‘‘Lease 

Stipulations, Central Planning Area, Oil 

and Gas Lease Sale 213, Final Notice of 

Sale’’ included in this Final NOS 213 

Package. In addition, the ‘‘List of Blocks 

Available for Leasing’’ contained in the 

Final NOS 213 Package identifies the 

lease stipulations applicable to each 

listed block. 

Information to Lessees: The Final 

NOS 213 Package contains an 

‘‘Information To Lessees’’ document that 

provides detailed information on certain 

specific issues pertaining to this 

proposed oil and gas lease sale. 

Method of Bidding: For each block bid 

upon, a bidder must submit a separate 

signed bid in a sealed envelope labeled 

‘‘Sealed Bid for Oil and Gas Lease Sale 

213, not to be opened until 9 a.m., 

Wednesday, March 17, 2010.’’ The 

submitting company’s name, its GOM 

company number, the map name, map 

number, and block number should be 

clearly identified on the outside of the 

envelope. 

The sealed bid should list the total 

amount of the bid that must be in a 

whole dollar amount (any cent amount 

above the whole dollar will be ignored 

by the MMS) as well as the sale number, 

the sale date, the submitting company’s 

name, its GOM company number, the 

map name, map number, and the block 

number clearly identified. The 

information required on the bid(s) and 

the bid envelope(s) are specified in the 

document ‘‘Bid Form and Envelope’’ 

contained in the Final NOS 213 

Package. 

Please also refer to the Telephone 

Numbers/Addresses of Bidders Form 

included within the Final NOS 213 

Package. We are requesting that you 

provide this information in the format 

suggested for each lease sale. Please 

provide this information prior to or at 

the time of bid submission. Do not 

enclose this form inside the sealed bid 

envelope. 

The MMS published in the Federal 

Register a list of restricted joint bidders, 

which applies to this lease sale, at 74 FR 

61171 on November 23, 2009. Please 

also refer to joint bidding provisions at 

30 CFR 256.41 for additional 

information. All bidders must execute 

all documents in conformance with 

signatory authorizations on file in the 

GOM Region Adjudication Unit. 

Designated signatories must be 

authorized to bind their respective legal 

business entity (e.g., a corporation, 

partnership, or LLC) and must have an 

incumbency certificate setting forth the 

authorized signatories on file with the 

GOM Region Adjudication Office. 

Bidders submitting joint bids must 

include on the bid form the 

proportionate interest of each 

participating bidder, stated as a 

percentage, using a maximum of five 

decimal places (e.g., 33.33333 percent). 

The MMS may require bidders to submit 

other documents in accordance with 30 

CFR 256.46. The MMS warns bidders 

against violation of 18 U.S.C. 1860 

prohibiting unlawful combination or 

intimidation of bidders. Bidders are 

advised that the MMS 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 the one-fifth 

bonus bid deposit on all high bids. A 

statement to this effect must be included 

on each bid (see the document ‘‘Bid 

Form and Envelope’’ contained in the 

Final NOS 213 Package). 

Withdrawal of Bids: Once submitted, 

bid(s) may not be withdrawn unless the 

Regional Director (RD) receives a 

written request for withdrawal from the 

company who submitted the bid(s), 

prior to 10 a.m. on Tuesday, March 16, 

2010. This request must be typed on 

company letterhead and must contain 

the submitting company’s name, its 

company number, the map name/ 

number and block number of the bid(s) 

to be withdrawn. The request must be 

in conformance with signatory 

authorizations on file in the MMS Gulf 

of Mexico Region Adjudication Office. 

Signatories must be authorized to bind 

their respective legal business entities 

(e.g., a corporation, partnership, or LLC) 

and must have an incumbency 

certificate setting forth the authorized 

signatories on file with the MMS Gulf of 

Mexico Region Adjudication Office. The 

name and title of said signatory must be 

typed under the signature block on the 

withdrawal letter. Upon the RD’s, or his 

designee’s, approval of such requests, he 

will indicate his approval by affixing his 

signature and date to the submitting 

company’s request for withdrawal. 

Rounding: The following procedure 

must be used to calculate the minimum 

bonus bid, annual rental, and minimum 

royalty: Round up to the next whole 

acre if the block acreage contains a 

fraction of an acre prior to calculating 

the minimum bonus bid, annual rental, 

and minimum royalty amounts. The 

appropriate rate per acre is applied to 

the whole (rounded up) acreage. 

The bonus bid must be in whole 

dollar amounts (i.e., any cents will be 

disregarded by the MMS) and greater 

than or equal to the minimum bonus 

bid. The appropriate minimum bid per 

acre rate is applied to the whole 

(rounded up) acreage and the resultant 

calculation is rounded up to the next 

whole dollar amount if the calculation 

results in any cents. The minimum 

bonus bid calculation, including all 

rounding, is shown in the document 

‘‘List of Blocks Available for Leasing’’ 

included in the Final NOS 213 Package. 


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Bonus Bid Deposit: Each bidder 

submitting an apparent high bid must 

submit a bonus bid deposit to the MMS 

equal to one-fifth of the bonus bid 

amount for each such bid. All payments 

must be electronically deposited into an 

interest-bearing account in the U.S. 

Treasury (account information provided 

in the Electronic Funds Transfer (EFT) 

instructions) by 11 a.m. Eastern Daylight 

Saving Time the day following bid 

reading. Under the authority granted by 

30 CFR 256.46(b), the MMS requires 

bidders to use electronic funds transfer 

procedures for payment of one-fifth 

bonus bid deposits for Lease Sale 213, 

following the detailed instructions 

contained in the document ‘‘Instructions 

for Making EFT Bonus Payments,’’ 

which can be found on the MMS GOM 

Web site at: http://www.gomr.mms.gov/ 

homepg/lsesale/213/cgom213.html. 

Acceptance of a deposit does not 

constitute and shall not be construed as 

acceptance of any bid on behalf of the 

United States. If a lease is awarded, 

MMS requests that only one transaction 

be used for payment of the four-fifths 

bonus bid amount and the first year’s 

rental. 

Please note: Certain bid submitters (i.e., 

those that are not currently an OCS mineral 

lease record titleholder or designated 

operator OR those that have ever defaulted 

on a one-fifth bonus bid payment (EFT or 

otherwise)) are required to guarantee (secure) 

their one-fifth bonus bid payment prior to the 

submission of bids. For those who must 

secure the EFT one-fifth bonus bid payment, 

one of the following options may be used: (1) 

Provide a third-party guarantee; (2) amend 

bond coverage; (3) provide a letter of credit; 

or (4) provide a lump sum payment in 

advance via EFT. The EFT instructions 

specify the requirements for each option. 

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. In any 

case, no bid will be accepted, and no 

lease for any block will be awarded to 

any bidder, unless the bidder has 

complied with all requirements of this 

Notice, including those set forth in the 

documents contained in the associated 

Final NOS 213 Package and applicable 

regulations; the bid is the highest valid 

bid; and 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 this Notice, the Act, and 

other applicable regulations may be 

returned to the bidder submitting that 

bid by the RD and not be considered for 

acceptance. The Attorney General may 

also review the results of the lease sale 

prior to the acceptance of bids and 

issuance of leases for anti-trust issues. 

To ensure that the Government receives 

a fair return for the conveyance of lease 

rights for this lease sale, high bids will 

be evaluated in accordance with MMS 

bid adequacy procedures. A copy of 

current procedures, ‘‘Modifications to 

the Bid Adequacy Procedures’’ at 64 FR 

37560 on July 12, 1999, can be obtained 

from the MMS Gulf of Mexico Region 

Public Information Unit or via the MMS 

Gulf of Mexico Region Internet Web site 

at: http://www.gomr.mms.gov/homepg/ 

lsesale/bidadeq.html. 

Successful Bidders: The MMS 

requires each company that has been 

awarded a lease to execute all copies of 

the lease (Form MMS–2005 (October 

2009), as amended), 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 

satisfy the bonding requirements of 30 

CFR part 256, subpart I, as amended. 

Also, in accordance with regulations 

at 2 CFR parts 180 and 1400, the lessee 

shall comply with the U.S. Department 

of the Interior’s nonprocurement 

debarment and suspension 

requirements, and agrees to 

communicate this requirement to 

comply with these regulations to 

persons with whom the lessee does 

business as it relates to this lease by 

including this term as a condition to 

enter into their contracts and other 

transactions. 

Affirmative Action: The MMS 

requests that, prior to bidding, Equal 

Opportunity Affirmative Action 

Representation Form MMS 2032 (June 

1985) and Equal Opportunity 

Compliance Report Certification Form 

MMS 2033 (June 1985) be on file in the 

MMS Gulf of Mexico Region 

Adjudication Unit. This certification is 

required by 41 CFR part 60 and 

Executive Order No. 11246 of 

September 24, 1965, as amended by 

Executive Order No. 11375 of October 

13, 1967. In any event, prior to the 

execution of any lease contract, both 

forms are required to be on file in the 

GOM Region Adjudication Unit. 

Geophysical Data and Information 

Statement: Pursuant to 30 CFR 251.12, 

MMS has a right to access geophysical 

data and information collected under a 

permit in the OCS. 

Every bidder submitting a bid on a 

block in Sale 213, or participating as a 

joint bidder in such a bid, must submit 

a Geophysical Data and Information 

Statement (GDIS) identifying any 

enhanced or reprocessed geophysical 

data and information generated or used 

as part of the decision to bid or 

participate in a bid on the block 

(including the use of Controlled Source 

Electromagnetics, Gravity, etc.). The 

data identified in the GDIS should 

clearly identify whether the data or 

information are multi-client 

(speculative) data sets available directly 

from geophysical contractors or 

exclusive (proprietary) data sets 

specially processed for or by bidders. In 

addition, the GDIS should clearly 

identify the data type (2–D or 3–D, prestack or post-stack and time or depth); 

areal extent (i.e., number of line miles 

for 2–D or number of blocks for 3–D) 

and migration algorithm (Wave 

Equation Migration, Reverse Time 

Migration, etc.) of the data and 

information. The statement must also 

include the name, phone number and 

full address of a contact person, and an 

alternate, who are both knowledgeable 

about the information and data listed 

and available for 30 days post-sale, the 

processing company, date processing 

was completed, owner of the original 

data set (who initially acquired the 

data), original data survey name and 

permit number. The MMS reserves the 

right to query about alternate data sets 

and to quality check and compare the 

listed and alternative data sets to 

determine which data set most closely 

meets the needs of the fair market value 

determination process. 

The statement must also identify each 

block upon which the bidder submitted 

a bid or participated as a partner in a 

bid, but for which it did not use 

enhanced or reprocessed pre- or poststack geophysical data and information 

as part of the decision to bid or to 

participate in the bid. The GDIS must be 

submitted, even if no enhanced 

geophysical data and information were 

used in bid preparation for the tract. 

In the event your company supplies 

any type of data to MMS, your company 

must meet the following requirements to 

get reimbursed: 

1. Your company must be registered 

with the Central Contractor Registration 

(CCR). The initial registration is valid 

for one year and must be updated 

annually thereafter. The Web site for 

registering is: http://www.ccr.gov. This 

is a requirement that was implemented 

on October 1, 2003, and requires all 

entities doing business with the 

Government to complete a business 

profile in the CCR. It must be updated 

annually. Payments are made 

electronically based on the information 

contained in the CCR. Therefore, if your 

company is not actively registered in the 

CCR, MMS will not be able to reimburse 


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6882 Federal Register / Vol. 75, No. 29 / Friday, February 12, 2010 / Notices 

or pay your company for any data 

supplied. 

2. Your company must complete an 

on-line application for your 

Representations (Reps) and 

Certifications (Certs) at http:// 

orca.bpn.gov. ORCA (On-line 

Representations and Certifications 

Application) is an E-Government 

initiative. Even though your company 

may have never provided Reps and 

Certs previously, they are now 

mandated in order to do business with 

the Government or receive 

reimbursement. 

Please note that you may now submit 

the GDIS information table digitally on 

a CD as an Excel spreadsheet. Refer to 

the Final NOS 213 Package for more 

details concerning submission of the 

GDIS, making the data available to MMS 

following the lease sale, preferred 

format, reimbursement for costs, and 

confidentiality. 

Force Majeure: The RD of the MMS 

Gulf of Mexico Region has the 

discretion to change any date, time, 

and/or location specified in the Final 

NOS 213 Package in case of a force 

majeure event which the RD deems may 

interfere with the carrying out of a fair 

and proper lease sale process. Such 

events may include, but are not limited 

to, natural disasters (e.g., earthquakes, 

hurricanes, and floods), wars, riots, fire, 

strikes, civil disorder, acts of terrorism, 

or other events of a similar nature. In 

case of such events, bidders should call 

(504) 736–0557 or access our Web site 

at: http://www.gomr.mms.gov for 

information about any changes. 

Dated: February 4, 2010. 

S. Elizabeth Birnbaum, 

Director, Minerals Management Service. 

[FR Doc. 2010–3002 Filed 2–11–10; 8:45 am] 

BILLING CODE 4310–MR–P 


cprice-sewell on DSK2BSOYB1PROD with NOTICES