Federal Register / Vol. 72, No. 52 / Monday, March 19, 2007 / Notices 12817 

Estimated Reporting and 

Recordkeeping ‘‘Non-Hour Cost’’

Burden: There are two non-hour costs 

associated with this information 

collection. The estimated non-hour cost 

burden is $603,125. Sections 256.62 and 

256.64(a) require respondents to pay 

filing fees when submitting a request for 

assignment or transfer, and to file 

documents for record purposes. The 

application filing fees are required to 

recover the Federal Government’s 

processing costs. We have not identified 

any other ‘‘non-hour cost’’ burdens 

associated with this collection of 

information. 

Public Disclosure Statement: The PRA 

(44 U.S.C. 3501, et seq.) provides that an 

agency may not conduct or sponsor a 

collection of information unless it 

displays a currently valid OMB control 

number. Until OMB approves a 

collection of information, you are not 

obligated to respond. 

Comments: Section 3506(c)(2)(A) of 

the PRA (44 U.S.C. 3501, et seq.) 

requires each agency ‘‘* * * to provide 

notice * * * and otherwise consult 

with members of the public and affected 

agencies concerning each proposed 

collection of information * * *’’

Agencies must specifically solicit 

comments to: (a) Evaluate whether the 

proposed collection of information is 

necessary for the agency to perform its 

duties, including whether the 

information is useful; (b) evaluate the 

accuracy of the agency’s estimate of the 

burden of the proposed collection of 

information; (c) enhance the quality, 

usefulness, and clarity of the 

information to be collected; and (d) 

minimize the burden on the 

respondents, including the use of 

automated collection techniques or 

other forms of information technology. 

To comply with the public 

consultation process, on August 16, 

2006, we published a Federal Register 

notice (71 FR 47243) announcing that 

we would submit this ICR to OMB for 

approval. The notice provided the 

required 60-day comment period. In 

addition, § 256.0 and the PRA statement 

on the MMS forms display the OMB 

control number, specifies that the public 

may comment at anytime on the 

collection of information required in the 

30 CFR part 256 regulations and forms, 

and provides the address to which they 

should send comments. We have 

received one comment in response to 

those efforts, but it was not germane to 

the paperwork burden of the 

information collection. 

If you wish to comment in response 

to this notice, you may send your 

comments to the offices listed under the 

ADDRESSES section of this notice. OMB 

has up to 60 days to approve or 

disapprove the information collection 

but may respond after 30 days. 

Therefore, to ensure maximum 

consideration, OMB should receive 

public comments by April 18, 2007. 

Public Comment Procedures: The 

MMS’s practice is to make comments, 

including names and addresses of 

respondents, available for public 

review. If you wish your name and/or 

address to be withheld, you must state 

this prominently at the beginning of 

your comment. The MMS will honor the 

request to the extent allowable by the 

law; however, anonymous comments 

will not be considered. There may be 

circumstances in which we would 

withhold from the record a respondent’s 

identity, as allowable by the law. If you 

wish us to withhold your name and/or 

address, you must state this 

prominently at the beginning of your 

comment. In addition, you must present 

a rationale for withholding this 

information. This rationale must 

demonstrate that disclosure ‘‘would 

constitute an unwarranted invasion of 

privacy.’’ Unsupported assertions will 

not meet this burden. In the absence of 

exceptional, documentable 

circumstances, this information will be 

released. All submissions from 

organizations or businesses, and from 

individuals identifying themselves as 

representatives or officials of 

organizations or businesses, will be 

made available for public inspection in 

their entirety. 

MMS Information Collection 

Clearance Officer: Arlene Bajusz, (202) 

208–7744. 

Dated: November 30, 2006. 

E.P. Danenberger, 

Chief, Office of Offshore Regulatory Programs. 

This document was received at the Office 

of the Federal Register on March 13, 2007. 

[FR Doc. E7–4888 Filed 3–16–07; 8:45 am] 

BILLING CODE 4310–MR–P 

DEPARTMENT OF THE INTERIOR 

Minerals Management Service 

Outer Continental Shelf (OCS) Beaufort 

Sea Alaska, Oil and Gas Lease Sale 

202 

AGENCY: Minerals Management Service, 

Interior. 

ACTION: Final Notice of Sale OCS Oil 

and Gas Lease Sale 202, Beaufort Sea. 

SUMMARY: The MMS will hold OCS Oil 

and Gas Lease Sale 202 on April 18, 

2007, in accordance with provisions of 

the OCS Lands Act (43 U.S.C. 1331–

1356, as amended), the implementing 

regulations (30 CFR part 256), and the 

OCS Oil and Gas Leasing Program for 

2002–2007. 

DATES: Lease Sale 202 is scheduled to be 

held on April 18, 2007, at the Wilda 

Marston Theatre, Z. J. Loussac Public 

Library, 3600 Denali Street, Anchorage, 

Alaska. Public reading will begin at 9 

a.m. All times referred to in this 

document are local Anchorage, Alaska 

times, unless otherwise specified. 

ADDRESSES: A package containing the 

Final Notice of Sale (NOS) and several 

supporting and essential documents 

referenced herein are available from: 

Alaska OCS Region, Information 

Resource Center, Minerals Management 

Service, 3801 Centerpoint Drive, Suite 

500, Anchorage, Alaska 99503–5823, 

Telephone: (907) 334–5200 or 1–800–

764–2627. 

These documents are also available on 

the MMS Alaska OCS Region’s Web site 

at http://www.mms.gov/alaska. 

Bid Submission Deadline: Bidders 

will be required to submit bids to the 

MMS at the Alaska OCS Region Office, 

3801 Centerpoint Drive, Suite 500, 

Anchorage, Alaska 99503, by 10 a.m. on 

the day before the sale, Tuesday, April 

17, 2007. If bids are mailed, the 

envelope containing all of the sealed 

bids must be marked as follows: 

Attention: Mr. Fred King, Contains 

Sealed Bids for Sale 202. 

If bids are received later than the time 

and date specified above, they will be 

returned unopened to the bidders. 

Bidders may not modify or withdraw 

their bids unless the Regional Director, 

Alaska OCS Region receives a written 

modification or written withdrawal 

request prior to 10 a.m., Tuesday, April 

17, 2007. Should an unexpected event 

such as an earthquake or travel 

restrictions be significantly disruptive to 

bid submission, the Alaska OCS Region 


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12818 Federal Register / Vol. 72, No. 52 / Monday, March 19, 2007 / Notices 

may extend the Bid Submission 

Deadline. Bidders may call (907) 334–

5200 for information about the possible 

extension of the Bid Submission 

Deadline due to such an event. 

Four blocks in the easternmost 

Beaufort Sea area are subject to claims 

by both the United States and Canada. 

This Notice refers to this area as the 

Disputed Portion of the Beaufort Sea. 

The section on Method of Bidding 

identifies the four blocks and describes 

the procedures for submitting bids for 

them. 

Area Offered for Leasing: The MMS is 

offering for leasing all whole and partial 

blocks listed in the document ‘‘Blocks 

Available for Leasing in OCS Oil and 

Gas Lease Sale 202’’ included in the 

Final NOS 202 package. All of these 

blocks are shown on the following 

Official Protraction Diagrams (which 

may be purchased from the Alaska OCS 

Region): 

NR 05–01, Dease Inlet, revised 

September 30, 1997 

NR 05–02, Harrison Bay North, revised 

September 30, 1997 

NR 05–03, Teshekpuk, revised 

September 30, 1997 

NR 05–04, Harrison Bay, revised 

September 30, 1997 

NR 06–01, Beechey Point North, 

approved February 1, 1996 

NR 06–03, Beechey Point, revised 

September 30, 1997 

NR 06–04, Flaxman Island, revised 

September 30, 1997 

NR 07–03, Barter Island, revised 

September 30, 1997 

NR 07–05, Demarcation Point, revised 

September 30, 1997 

NR 07–06, Mackenzie Canyon, revised 

September 30, 1997 

Official block descriptions are derived 

from these diagrams; however, not all 

blocks included on a diagram are being 

offered. To ascertain which blocks are 

being offered and the royalty suspension 

provisions that apply, you must refer to 

the document ‘‘Blocks Available for 

Leasing in OCS Oil and Gas Lease Sale 

202.’’ The Beaufort Sea OCS Oil and Gas 

Lease Sale 202 Locator Map is also 

available to assist in locating the blocks 

relative to the adjacent areas. The 

Locator Map is for use in identifying 

locations of blocks but is not part of the 

official description of blocks available 

for lease. Some of the blocks may be 

partially encumbered by an existing 

lease, or transected by administrative 

lines such as the Federal/State 

jurisdictional line. Partial block 

descriptions are derived from 

Supplemental Official OCS Block 

Diagrams and OCS Composite Block 

Diagrams, which are available upon 

request at the address, phone number, 

or Internet site given above. 

Statutes and Regulations: Each lease 

issued in this lease sale is subject to the 

OCS Lands Act of August 7, 1953, 67 

Stat. 462; 43 U.S.C. 1331 et seq., as 

amended (92 Stat. 629), hereinafter 

called ‘‘the Act’’; all regulations issued 

pursuant to the Act and in existence 

upon the effective date of the lease; all 

regulations issued pursuant to the 

statute in the future which provide for 

the prevention of waste and 

conservation of the natural resources of 

the OCS and the protection of 

correlative rights therein; and all other 

applicable statutes and regulations. 

Lease Terms and Conditions: For 

leases resulting from this sale the 

following terms and conditions apply: 

Initial Period: 10 years. 

Minimum Bonus Bid Amounts: $37.50 

per hectare, or a fraction thereof, for all 

blocks in Zone A and $25.00 per 

hectare, or a fraction thereof, for all 

blocks in Zone B. Refer to the final 

Notice of Sale, Beaufort Sea Sale 202, 

April 2007 map and the Summary Table 

of Minimum Bids, Minimum Royalty 

Rates, and Rental Rates shown below. 

Rental Rates: The Lessee shall pay the 

Lessor, on or before the first day of each 

lease year which commences prior to a 

discovery in paying quantities of oil or 

gas on the leased area, a rental at the 

rate shown below in the Summary Table 

of Minimum Bids, Minimum Royalty 

Rates, and Rental Rates. During the time 

period in which a lease is classified as 

producible, i.e., following a discovery in 

paying quantities, but before royaltybearing production begins, a rental of 

$13 per hectare applies in both zones 

and is paid at the end of each lease year 

until the start of royalty-bearing 

production. 

Minimum Royalty Rates: The Lessee 

shall pay the Lessor, at the expiration of 

each lease year which commences after 

the start of royalty-bearing production, a 

minimum royalty of $13 per hectare, or 

fraction thereof, with credit applied for 

actual royalty paid during the lease 

year. If actual royalty paid exceeds the 

minimum royalty requirement, then no 

minimum royalty payment is due. 

Royalty Rates: A 121⁄2 percent royalty 

rate will apply for all blocks. 

SUMMARY TABLE OF MINIMUM BIDS, 

MINIMUM ROYALTY RATES, AND

RENTAL RATES

Terms (values per 

hectare or fraction 

thereof) 

Zone A Zone B 

Royalty Rate ............ 121⁄2% 

fixed.

121⁄2% 

fixed 

SUMMARY TABLE OF MINIMUM BIDS, 

MINIMUM ROYALTY RATES, AND

RENTAL RATES—Continued 

Terms (values per 

hectare or fraction 

thereof) 

Zone A Zone B 

Minimum Bonus Bid $37.50 .... $25.00 

Minimum Royalty 

Rate.

$13.00 .... $13.00 

Rental Rates: 

Year 1 .................. $7.50 ...... $2.50 

Year 2 .................. $7.50 ...... $3.75 

Year 3 .................. $7.50 ...... $5.00 

Year 4 .................. $7.50 ...... $6.25 

Year 5 .................. $7.50 ...... $7.50 

Year 6 .................. $12.00 .... $10.00 

Year 7 .................. $17.00 .... $12.00 

Year 8 .................. $22.00 .... $15.00 

Year 9 .................. $30.00 .... $17.00 

Year 10 ................ $30.00 .... $20.00 

Royalty Suspension Areas: Royalty 

suspension provisions apply to first oil 

production. Royalty suspensions on the 

production of oil and condensate, 

prorated by lease acreage and subject to 

price thresholds, will apply to all 

blocks. Royalty suspension volumes 

(RSV) are based on 2 zones, Zone A and 

Zone B, as depicted on the Map. More 

specific details regarding royalty 

suspension eligibility, applicable price 

thresholds and implementations are 

included below as well as in the 

document ‘‘Royalty Suspension 

Provisions, Sale 202’’ in the Final NOS 

202 package. 

Royalty Suspension Provisions: In 

accordance with applicable regulations 

at 30 CFR 260, the following royalty 

suspension provisions apply to leases 

issued as a result of Beaufort Sea Oil 

and Gas Lease Sale 202. The zones in 

which blocks are indicated on the Block 

List and the map included in the Notice 

of Sale package are available from the 

MMS OCS Alaska Region office. 

These Royalty Suspension Provisions 

apply to Oil Production. In addition, 

refer to 30 CFR 218.151 and applicable 

parts of 260.120–260.124 for regulations 

on royalty suspensions and rental 

obligations that will apply to your lease. 

1. A lease in the Beaufort Sea, 

depending on surface area and zone, 

will receive a royalty suspension 

volume (RSV) as follows: 

Lease size 

hectares 

Zone A 

million barrels RSV 

Zone B 

million barrels RSV 

Less than 771 ... 10 15 

771 to less than 

1541 .............. 20 30 

1541 or more .... 30 45 

2. The RSV applies only to liquid 

hydrocarbon production, i.e., oil and 

condensates. Natural gas volumes that 


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Federal Register / Vol. 72, No. 52 / Monday, March 19, 2007 / Notices 12819 

leave the lease are subject to original 

lease-specified royalties. The market 

value of natural gas will be determined 

by MMS’s Minerals Revenue 

Management (MRM) office. The MRM 

will value the natural gas from Sale 202 

based on its potential uses and 

applicable market characteristics at the 

time the gas is produced. 

3. Each lessee must pay royalty on 

production of oil that might otherwise 

receive royalty relief (in 30 CFR part 

260) for any calendar year during which 

the actual New York Mercantile 

Exchange (NYMEX) annual price of oil 

exceeds the ‘‘ceiling’’ price threshold 

(adjusted for inflation) for oil in that 

year. Such production will be deducted 

from the remaining RSV. The actual 

NYMEX annual price of oil is defined as 

the arithmetic average of the daily 

closing prices for the ‘‘nearby delivery 

month’’ on the NYMEX for oil (light 

sweet crude) in a calendar year. The 

actual NYMEX annual price of oil is 

calculated by averaging the daily closing 

prices of oil for each month in the year, 

and then averaging the 12 monthly 

averages. 

(a) The ceiling price threshold for oil 

in any year, say t, is determined by 

inflating the base year 2004 oil price of 

$39 per barrel. This base year price is 

modified by the percentage change in 

the implicit price deflator as reported by 

the U.S. Department of Commerce, 

Bureau of Economic Analysis, for the 

interval between 2004 and year t, 

resulting in the adjusted oil price ceiling 

for year t. For example, if the deflator 

indicates that inflation is 1.6 percent in 

2005, 2.1 percent in 2006, and 2.5 

percent in 2007, then the price ceiling 

in calendar year 2007 would become 

$41.47 per barrel for oil. Therefore, 

royalty on all oil production in calendar 

year 2007 would be due if the 2007 

actual NYMEX oil price as calculated 

above exceeds $41.47 per barrel. (See 

exception in item 5 below.) 

(b) Royalties on oil production, when 

the actual NYMEX annual price of oil 

exceeds the ceiling price in any 

calendar year, must be paid no later 

than 90 days after the end of that 

calendar year. (See 30 CFR 260.122(b)). 

Also, when the actual NYMEX annual 

price of oil exceeds the ceiling price in 

any calendar year, royalties on oil 

production must be provisionally paid 

in the following calendar year. (See 30 

CFR 260.122(c)). 

4. If the actual NYMEX quarterly price 

of oil is at or below the fixed ‘‘floor’’

price threshold of $21 per barrel (the 

price will not be adjusted for inflation) 

in any calendar quarter, then oil 

produced during that calendar quarter 

would be royalty free and would not 

count against the lease’s remaining RSV. 

However, if the actual NYMEX quarterly 

price of oil is at or below the floor price 

after the RSV has been fully used, the 

lessee receives no additional royaltyfree production. 

The actual NYMEX quarterly price of 

oil is defined as the arithmetic average 

of the daily closing prices for the 

‘‘nearby delivery month’’ on the 

NYMEX for oil in the calendar quarter. 

The applicable calendar year quarters 

are January—March, April—June, July—

September, and October—December. 

The actual NYMEX quarterly price of oil 

is calculated by averaging the daily 

closing prices of oil for each month in 

the quarter, and then averaging the 3 

monthly averages. 

5. Within the same calendar year, the 

actual NYMEX quarterly price of oil 

could be equal to or less than the price 

floor in one or more quarters, but the 

actual NYMEX annual price of oil could 

be greater than the ceiling price. If that 

were to occur, and the original RSV for 

the lease has not been exhausted, the 

consequences of the actual NYMEX 

annual price of oil exceeding the price 

ceiling for the year would apply only to 

oil production during those quarters of 

the year in which the actual NYMEX 

quarterly price of oil is above the floor 

price. For example, assume that oil 

production from a lease is 8 million 

barrels in a calendar year, and the actual 

NYMEX annual price of oil is greater 

than the ceiling price. Assume further 

that the production of oil from that lease 

is 2 million barrels during a quarter of 

that same calendar year, and the actual 

NYMEX quarterly price of oil for that 

quarter is equal to or less than the floor 

price. In this situation, no royalties 

would be due on that quarter’s oil 

production, and the remaining RSV for 

the lease would be unchanged for that 

quarter. Royalties, however, would be 

due on the 6 million barrels of oil 

produced during the other 3 quarters of 

that year, and the RSV remaining for the 

lease at the end of the year would be 6 

million barrels less than it was at the 

beginning of the year. 

6. For purposes of the RSV, a Sale 202 

lease that is part of an approved unit 

agreement can only apply allocated 

production from the unit against the 

lease’s RSV if that lease is included in 

an approved participating area. The RSV 

will be applied to each lease consistent 

with the production allocation schedule 

approved by the MMS for the 

participating area. Participating area 

means all or parts of unit tracts 

described and designated as a 

Participating Area under the unit 

agreement for the purposes of allocating 

one or more unitized substances 

produced from a reservoir. 

7. Price thresholds apply throughout 

those periods (calendar year for the 

ceiling and quarter of the year for the 

floor) that commence with some RSV 

remaining unused. 

8. A lessee must resume paying full 

royalties on the first day of the month 

following the month in which the RSV 

is exhausted. Lessees do not owe 

royalties for the remainder of the month 

in which the RSV is exhausted, unless 

the actual NYMEX annual price of oil 

exceeds the ceiling price threshold for 

that year. 

9. The MMS will provide notice when 

the actual NYMEX annual price of oil is 

above the ceiling price threshold, or 

when the actual NYMEX quarterly price 

of oil is equal to or below the floor price 

threshold. Information on actual and 

threshold oil prices can be found at the 

MMS Web site (http://www.mms.gov/ 

econ). 

10. Minimum royalty requirements 

apply during RSV periods. Debarment 

and Suspension (Nonprocurement): As 

required by the MMS, each company 

that has been awarded a lease must 

execute all copies of the lease (Form 

MMS–2005 (March 1986) 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 256, subpart I, as amended. 

Also, in accordance with regulations 

pursuant to 43 CFR, part 42, subpart C, 

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 in 

their contracts and other transactions. 

Execution of the lease, which includes 

an Addendum specific to debarment, by 

each lessee constitutes notification to 

the MMS that each lessee is not 

excluded, disqualified, or convicted of a 

crime as described in 43 CFR 42.335, 

unless the lessee has provided a 

statement disclosing information as 

described in 43 CFR 42.335, and the 

MMS receives an exception from the 

U.S. Department of the Interior as 

described in 43 CFR 42.405 and 42.120. 

Stipulations and Information to 

Lessees: The document entitled ‘‘Lease 

Stipulations and Information to Lessees 

for Oil and Gas Lease Sale 202’’ contains 

the text of the Stipulations and the 

Information to Lessees clauses. This 


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12820 Federal Register / Vol. 72, No. 52 / Monday, March 19, 2007 / Notices 

document is included in the Final NOS 

package. 

Method of Bidding: Procedures for the 

submission of bids in Sale 202 are 

described in paragraph 1 below. 

Procedures for the submission of bids 

for the four blocks in the Disputed 

Portion of the Beaufort Sea will differ as 

described in paragraph 2 below. 

1. Submission of Bids. 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 202, not to be opened until 

9 a.m., Wednesday, April 18, 2007.’’

The total amount of the bid must be in 

whole dollars; any cent amount above 

the whole dollar will be ignored by 

MMS. Details of 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 202 

package. 

2. Submission of Bids in the Disputed 

Portion of the Beaufort Sea. Procedures 

for the submission of bids on blocks 

6201, 6251, 6301, and 6361 in Official 

Protraction Diagram NR 07–06 will 

differ from procedures in paragraph (1.) 

above as follows: 

(a) Separate, signed bids on these 

blocks must be submitted in sealed 

envelopes labeled only with ‘‘Disputed 

Portion of the Beaufort Sea,’’ Company 

Number, and a sequential bid number 

for the company submitting the bid(s). 

The envelope thus would be in the 

following format: 

(b) Disputed Portion of the Beaufort 

Sea Bid, Company No.: 00000, Bid No.: 

1. 

On or before April 18, 2012, the MMS 

will determine whether it is in the best 

interest of the United States either to 

open bids for these blocks or to return 

the bids unopened. The MMS will 

notify bidders at least 30 days before bid 

opening. Bidders on these blocks may 

withdraw their bids at any time after 

such notice and prior to 10 a.m. of the 

day before bid opening. If the MMS does 

not give notice by April 18, 2012, the 

bids will be returned unopened. The 

MMS reserves the right to return these 

bids at any time. The MMS will not 

disclose which blocks received bids or 

the names of bidders in this area unless 

the bids are opened. 

Restricted Joint Bidders: The MMS 

published a list of restricted joint 

bidders, which applies to this sale, in 

the Federal Register at 71 FR 70530 on 

December 5, 2006. 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. The MMS may 

require bidders to submit additional 

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 must execute all 

documents in conformance with 

signatory authorizations on file in the 

Alaska OCS Region. Partnerships also 

must submit or have on file a list of 

signatories authorized to bind the 

partnership. Bidders are advised that 

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 paying 

the one-fifth bonus bid amount 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 202 

package). 

Bonus Bid Deposit: Each bidder 

submitting an apparent high bid must 

submit a bonus bid deposit to MMS 

equal to one-fifth of the bonus bid 

amount for each such bid submitted for 

Sale 202. Under the authority granted by 

30 CFR 256.46(b), the MMS requires 

bidders to use electronic funds transfer 

(EFT) procedures for payment of the 

one-fifth bonus bid deposits, following 

the detailed instructions contained in 

the document ‘‘Instructions for Making 

EFT Bonus Payments’’ included in the 

Final NOS 202 package. All payments 

must be electronically deposited into an 

interest-bearing account in the U.S. 

Treasury (account specified in the EFT 

instruction) by 1 p.m. Eastern Time the 

day following bid reading. Such 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. 

Certain bid submitters [i.e., those that 

do NOT currently own or operate an 

OCS mineral lease OR those that have 

ever defaulted on a one-fifth bonus 

payment] will be required to guarantee 

(secure) their one-fifth bonus payment 

prior to the submission of bids. For 

those who must secure the EFT one-fifth 

bonus payment, one of the following 

options may be provided: (1) A thirdparty guarantee; (2) an Amended 

Development Bond Coverage; (3) a 

Letter of Credit; or (4) 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 sale prior to 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 the documents 

contained in the associated Final NOS 

Sale 202 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. The Attorney General 

of the United States may also review the 

results of the lease sale prior to the 

acceptance of bids and issuance of 

leases. Any bid submitted which does 

not conform to the requirements of this 

Notice, the OCS Lands Act, as amended, 

and other applicable regulations may be 

returned to the person submitting that 

bid by the Regional Director and not 

considered for acceptance. To ensure 

that the Government receives a fair 

return for the conveyance of lease rights 

for this sale, high bids will be evaluated 

in accordance with MMS bid adequacy 

procedures. 

Successful Bidders: As required by 

MMS, each company that has been 

awarded a lease must execute all three 

copies of the lease (Form MMS–2005 

(March 1986) 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 256, subpart I. 

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 

Alaska OCS Region. This certification is 

required by 41 CFR 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 Alaska OCS Region. 

Jurisdiction: The United States claims 

exclusive maritime resource jurisdiction 

over the area offered. Canada claims 

such jurisdiction over the four 

easternmost blocks included in the sale 

area. These blocks are located in Official 

Protraction Diagram NR 07–06 and are 

block numbers 6201, 6251, 6301, and 

6351. Nothing in this Notice shall affect 

or prejudice in any manner the position, 

rights or interests of the United States 

with respect to (1) the nature or extent 

of U.S. internal waters or territorial sea, 

(2) the U.S. Exclusive Economic Zone, 


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Federal Register / Vol. 72, No. 52 / Monday, March 19, 2007 / Notices 12821 

(3) the U.S. continental shelf, or (4) U.S. 

sovereign rights or jurisdiction for any 

purpose whatsoever. 

Notice of Bidding Systems: Section 

8(a)(8) (43 U.S.C. 1337(a)(8)) of the OCS 

Lands Act requires that, at least 30 days 

before any lease sale, a Notice be 

submitted to Congress and published in 

the Federal Register. This Notice of 

Bidding Systems is for Sale 202, 

Beaufort Sea, scheduled to be held on 

April 18, 2007. 

In Sale 202, all blocks are being 

offered under a bidding system that uses 

a cash bonus and a fixed royalty of 121⁄2

percent with a royalty suspension of up 

to 30 million barrels of oil equivalent 

per lease in Zone A of the sale area or 

with a royalty suspension of up to 45 

million barrels of oil equivalent per 

lease in Zone B of the sale area. The 

amount of royalty suspension available 

on each lease is dependent on the area 

of the lease and specified in the Sale 

Notice. This bidding system is 

authorized under 30 CFR 260.110(g), 

which allows use of a cash bonus bid 

with a royalty rate of not less than 121⁄2

percent and with suspension of royalties 

for a period, volume, or value of 

production, and an annual rental. 

Analysis performed by MMS indicates 

that use of this system provides an 

incentive for development of this area 

while ensuring that a fair sharing of 

revenues will result if major discoveries 

are made and produced. 

Dated: March 12, 2007. 

R.M. ‘‘Johnnie’’ Burton, 

Director, Minerals Management Service. 


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12822 Federal Register / Vol. 72, No. 52 / Monday, March 19, 2007 / Notices 

[FR Doc. 07–1298 Filed 3–16–07; 8:45 am] 

BILLING CODE 4310–MR–P 


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