Federal Register / Vol. 62, No. 21 / Friday, January 31, 1997 / Notices 4789

Copies of the plat will be made

available upon request and prepayment

of the reproduction fee of $2.75 per

copy.

Dated: January 23, 1997.

Stephen G. Kopach,

Chief Cadastral Surveyor.

[FR Doc. 97–2309 Filed 1–30–97; 8:45 am]

BILLING CODE 4310–GJ–P

Minerals Management Service

Agency Information Collection

Activities: Submitted for Office of

Management and Budget Review;

Comment Request

The proposal for the collection of

information listed below has been

submitted to the Office of Management

and Budget for reapproval under the

provisions of the Paperwork Reduction

Act (44 U.S.C. Chapter 35). Copies of the

proposed information collection

requirement and related forms and

explanatory material may be obtained

by contacting Dennis C. Jones at 303–

231–3046. Comments and suggestions

on the requirement should be made

directly to the Bureau Clearance Officer

at the telephone number listed below,

and to the OMB Paperwork Reduction

Project (1010–0095), Washington, DC

20503, telephone 202–395–7340.

DATES: Written comments should be

received on or before March 3, 1997.

Title: Request to Exceed Regulatory

Allowance Limitation.

OMB Approval Number: 1010–0095.

Abstract: The Minerals Management

Service (MMS) Royalty Management

Program (RMP) is proposing to continue

collecting certain information from

royalty payors on Federal or Indian

mineral leases. Under certain

circumstances lessees can deduct, from

royalty payments, the reasonable actual

costs of transporting the royalty portion

of produced oil and gas from the lease

to a processing or sales point not in the

immediate lease area. When gas is

processed for the recovery of gas plant

products, lessees may claim a

processing allowance. Transportation

and processing allowances are a part of

the product valuation process which

MMS uses to determine if the lessee is

reporting and paying the proper royalty

amount.

Bureau Form Numbers: MMS–4393.

Frequency: As requested by lessee.

Description of Respondents: Royalty

payors on Federal and Indian mineral

leases.

Estimated Completion Time: .5 hours.

Annual Responses: 75.

Annual Burden Hours: 37.5 hours.

Bureau Clearance Officer: Carol A.

deWitt , (703) 787–1242.

Dated: December 6, 1996.

James W. Shaw,

Associate Director for Royalty Management.

[FR Doc. 97–2457 Filed 1–30–97; 8:45 am]

BILLING CODE 4310–MR–P

Outer Continental Shelf, Central Gulf of

Mexico, Oil and Gas Lease Sale 166—

Final Notice of Sale

1. Authority. This Notice is published

pursuant to the Outer Continental Shelf

(OCS) Lands Act (43 U.S.C. 1331–1356,

as amended) and the regulations issued

thereunder (30 CFR Part 256).

2. Filing of Bids.

(a) Filing of Bids. Sealed bids will be

received by the Regional Director (RD),

Gulf of Mexico Region, Minerals

Management Service (MMS), 1201

Elmwood Park Boulevard, New Orleans,

Louisiana 70123–2394. Bids may be

delivered in person to that address

during normal business hours (8 a.m. to

4 p.m., Central Standard Time (c.s.t.))

until the Bid Submission Deadline at 10

a.m. Tuesday, March 4, 1997.

Hereinafter, all times cited in this

Notice refer to c.s.t. unless otherwise

stated. Bids will not be accepted the day

of Bid Opening, Wednesday, March 5,

1997. Bids received by the RD later than

the time and date specified above will

be returned unopened to the bidders.

Bids may not be modified or withdrawn

unless written modification or written

withdrawal request is received by the

RD prior to 10 a.m. Tuesday, March 4,

1997. Bid Opening Time will be 9 a.m.,

Wednesday, March 5, 1997, at the Hyatt

Regency Hotel, 500 Poydras Plaza, New

Orleans, Louisiana. All bids must be

submitted and will be considered in

accordance with applicable regulations,

including 30 CFR Part 256. The list of

restricted joint bidders which applies to

this sale appeared in the Federal

Register at 61 FR 54213, published on

October 17, 1996.

(b) Natural Disasters. In the event a

natural disaster (such as widespread

flooding) or other occurrence causes the

MMS Gulf of Mexico Regional Office to

be closed on Tuesday, March 4, 1997,

bids will be accepted until 9 a.m.

Wednesday, March 5, 1997, at the site

of bid opening specified above. Under

these conditions, bids may be modified

or withdrawn upon written notification

up until 9 a.m. Wednesday, March 5,

1997. Closure of the office may be

determined by calling (504) 736–0557

and hearing a recorded message to that

effect.

3. Method of Bidding.

(a) Submission of Bids. A separate

signed bid in a sealed envelope labeled

‘‘Sealed Bid for Oil and Gas Lease Sale

166, not to be opened until 9 a.m., c.s.t.,

Wednesday, March 5, 1997’’ must be

submitted for each tract bid upon. The

sealed envelope and the bid should

contain the following information: the

company name, Gulf of Mexico

Company Number (GOM Company

Number), area number (e.g., LA1 for

West Cameron, NH16–04 for Mobile),

area name (abbreviations acceptable),

and the block number of the tract bid

upon. In addition, the total amount bid

to be considered by MMS must be in

whole dollar amount. Any cent amount

above the whole dollar will be ignored

by MMS.

Bidders must submit with each bid 1/

5th of the cash bonus, in cash or by

cashier’s check, bank draft, or certified

check, payable to the order of the U.S.

Department of the Interior—Minerals

Management Service. For identification

purposes, the following information

must appear on the check or draft:

company name, GOM Company

Number, and the area and block bid on

(abbreviation acceptable). No bid for

less than all of the unleased portion(s)

of a block will be considered.

All documents must be executed in

conformance with signatory

authorizations on file in the MMS Gulf

of Mexico Regional Office. Partnerships

also need to submit or have on file a list

of signatories authorized to bind the

partnership. Bidders submitting joint

bids must state on the bid form the

proportionate interest of each

participating bidder, in percent to a

maximum of five decimal places, e.g.,

33.33333 percent. Other documents may

be required of bidders under 30 CFR

256.46. Bidders are warned against

violation of 18 U.S.C. 1860 prohibiting

unlawful combination or intimidation of

bidders.

(b) Submission of Statement(s)

Regarding Certain Geophysical Data.

Each company submitting a bid, or

participating as a joint bidder in such a

bid, shall submit, prior to the Bid

Submission Deadline specified in

paragraph 2 of this Notice, a statement

or statements identifying any processed

or reprocessed pre and post stack depth

migrated geophysical data in their

possession or control pertaining to each

and every block on which they are

participating as a bidder. The existence,

extent, type of such data, and

identification of specific lines or 3D

surveys must be clearly stated. In

addition, the statement shall certify that

no such data are in their possession for

any other blocks on which they

participate as a bidder. The statement
4790 Federal Register / Vol. 62, No. 21 / Friday, January 31, 1997 / Notices

shall be submitted in an envelope

separate from those containing bids and

shall be clearly marked; an example of

a preferred format for the statement and

the envelope is included in the

document titled ‘‘Trial Procedures for

Access to Certain Geophysical Data in

the Gulf of Mexico’’ (revised January 19,

1996). Only one statement per bidder is

required for each sale, but more than

one may be submitted if desired,

provided that all tracts bid on by that

company are covered in the one or more

statements.

Paragraph 14(k), Information to

Lessees, contains additional information

pertaining to geophysical data.

4. Bidding, Yearly Rental, and Royalty

Systems. The following bidding, yearly

rental, and royalty systems apply to this

sale:

(a) Bidding Systems. All bids

submitted at this sale must provide for

a cash bonus in the amount of $25.00 or

more per acre or fraction thereof.

(b) Yearly Rental. All leases awarded

on tracts in water depths of 200 meters

and greater as depicted on the map

‘‘Royalty Suspension Areas For The

Central Gulf Of Mexico (March 1996)’’

(i.e., tracts in any of the three royalty

suspension areas) will provide for a

yearly rental payment of $7.50 per acre

or fraction thereof until initial

production is obtained. This map is

available from the MMS Gulf of Mexico

Regional Office (see paragraph 14(a) of

this Notice).

All leases awarded on other tracts

(i.e., those in water depths of less than

200 meters) will provide for a yearly

rental payment of $5.00 per acre or

fraction thereof until initial production

is obtained.

(c) Royalty Systems. After initial

production is obtained, leases will

provide for a minimum royalty of the

amount per acre or fraction thereof as

specified as the yearly rental in

paragraph 4(b) above, except during

periods of royalty suspension as

discussed in paragraph 4(c)(3) of this

Notice. The following royalty systems

will be used in this sale:

(1) Leases with a 121⁄2-Percent

Royalty. This royalty rate applies to

tracts in water depths of 400 meters or

greater; this area is shown on the

Stipulations, Lease Terms, and Bidding

Systems Map applicable to this Notice

(see paragraph 13). Leases issued on the

tracts offered in this area will have a

fixed royalty rate of 121⁄2 percent, except

during periods of royalty suspension

(see paragraph 4(c)(3) of this Notice).

(2) Leases with a 162⁄3-Percent

Royalty. This royalty rate applies to

tracts in water depths of less than 400

meters (see aforementioned map).

Leases issued on the tracts offered in

this area will have a fixed royalty rate

of 162⁄3 percent, except during periods

of royalty suspension for leases in water

depths 200 meters or greater (see

paragraph 4(c)(3) of this Notice).

(3) Royalty Suspension. In accordance

with Public Law 104–58, signed by the

President on November 28, 1995, MMS

has developed procedures providing for

the suspension of royalty payments on

production from eligible leases issued as

a result of this sale. MMS will allow

only one royalty suspension volume per

field regardless of the number of eligible

leases producing the field. For purposes

of this paragraph, an eligible lease is one

that: is located in the Gulf of Mexico in

water depths 200 meters or deeper; lies

wholly west of 87 degrees, 30 minutes

West longitude; and is offered subject to

a royalty suspension volume authorized

by statute.

An eligible lease from this sale may

receive a royalty suspension volume

only if it is in a field where no currently

active lease produced oil or gas (other

than test production) before November

28, 1995. The following applies only to

eligible leases in fields meeting this

condition.

(i) The royalty suspension volumes

are:

—17.5 million barrels of oil equivalent

(mmboe) in 200 to 400 meters of

water;

—52.5 mmboe in 400 to 800 meters of

water; and

—87.5 mmboe in 800 meters of water

and greater.

A map titled ‘‘Royalty Suspension

Areas For The Central Gulf Of Mexico

(March 1996)’’ depicting blocks in

which such suspensions may apply is

currently available from the MMS Gulf

of Mexico Regional Office (see

paragraph 14(a) of this Notice).

(ii) When production first occurs from

any of the eligible leases in a field (not

including test production), MMS will

determine the royalty suspension

volume applicable to eligible lease(s) in

that field. The determination is based on

the royalty suspension volumes and the

map specified in paragraph 4(c)(3)(i)

above.

(iii) If a new field consists of eligible

leases in different water depth

categories, the royalty suspension

volume associated with the deepest

eligible lease applies.

(iv) If an eligible lease is the only

eligible lease in a field, royalty is not

owed on the production from the lease

up to the amount of the applicable

royalty suspension volume.

(v) If a field consists of more than one

eligible lease, payment of royalties on

the eligible leases’ initial production is

suspended until their cumulative

production equals the field’s established

royalty suspension volume. The royalty

suspension volume for each eligible

lease is equal to each lease’s actual

production (or production allocated

under an approved unit agreement)

until the field’s established royalty

suspension volume is reached.

(vi) If an eligible lease is added to a

field that has an established royalty

suspension volume, the field’s royalty

suspension volume will not change

even if the added lease is in deeper

water. The additional lease may receive

a royalty suspension volume only to the

extent of its production before the

cumulative production from all eligible

leases in the field equals the field’s

previously established royalty

suspension volume.

(vii) If MMS reassigns a well on an

eligible lease to another field, the past

production from that well will count

toward the royalty suspension volume,

if any, specified for the new field to

which it is assigned. The past

production will not be counted toward

the suspension volume, if any, from the

first field.

(viii) An eligible lease may receive a

royalty suspension volume only if the

entire lease is west of 87 degrees, 30

minutes West longitude. A field that lies

on both sides of this meridian will

receive a royalty suspension volume

only for those eligible leases lying

entirely west of the meridian.

(ix) An eligible lease may obtain more

than one royalty suspension volume. If

a new field is discovered on an eligible

lease that already benefits from the

royalty suspension volume for another

field, production from that new field

receives a separate royalty suspension.

(x) A lessee must measure natural gas

production subject to the royalty

suspension volume as follows: 5.62

thousand cubic feet of natural gas equals

one barrel of oil equivalent, as measured

fully saturated at 15.025 psi, 60 degrees

F.

(xi) In any year during which the

arithmetic average of the closing prices

on the New York Mercantile Exchange

for light sweet crude oil exceeds $28.00

per barrel, royalties on the production of

oil must be paid at the lease stipulated

royalty rate (see paragraphs 4(c) (1) and

(2) above), and production during such

years counts toward the royalty

suspension volume.

In any year during which the

arithmetic average of the closing prices

on the New York Mercantile Exchange

for natural gas exceeds $3.50 per million

British thermal units, royalties on the

production of natural gas must be paid
Federal Register / Vol. 62, No. 21 / Friday, January 31, 1997 / Notices 4791

at the lease stipulated royalty rate (see

paragraphs 4(c) (1) and (2) above), and

production during such years counts

toward the royalty suspension volume.

These prices for oil and natural gas

are as of the end of 1994 and must be

adjusted for subsequent years by the

percentage by which the implicit price

deflator for the gross domestic product

changed during the preceding calendar

year.

(xii) A royalty suspension will

continue until the end of the month in

which the cumulative production from

eligible leases in the field reaches the

royalty suspension volume for the field.

Paragraph 14(m), Information to

Lessees, contains additional information

pertaining to royalty suspension

matters.

5. Equal Opportunity. The

certification required by 41 CFR 60–

1.7(b) and Executive Order No. 11246 of

September 24, 1965, as amended by

Executive Order No. 11375 of October

13, 1967, on the Compliance Report

Certification Form, Form MMS–2033

(June 1985), and the Affirmative Action

Representation Form, Form MMS–2032

(June 1985) must be on file in the MMS

Gulf of Mexico Regional Office prior to

lease award (see paragraph 14(e)).

6. Bid Opening. Bid opening will

begin at the bid opening time stated in

paragraph 2. The opening of the bids is

for the sole purpose of publicly

announcing bids received, and no bids

will be accepted or rejected at that time.

7. Deposit of Payment. Any cash,

cashier’s checks, certified checks, or

bank drafts submitted with a bid may be

deposited by the Government in an

interest-bearing account in the U.S.

Treasury during the period the bids are

being considered. Such a deposit does

not constitute and shall not be

construed as acceptance of any bid on

behalf of the United States.

8. Withdrawal of Tracts. The United

States reserves the right to withdraw

any tract from this sale prior to issuance

of a written acceptance of a bid for the

tract.

9. 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 tract will be awarded to

any bidder, unless:

(a) The bidder has complied with all

requirements of this Notice and

applicable regulations;

(b) The bid is the highest legal bid;

and

(c) The amount of the bid has been

determined to be adequate by the

authorized officer.

No bonus bid will be considered for

acceptance unless it provides for a cash

bonus in the amount of $25.00 or more

per acre or fraction thereof. Any bid

submitted which does not conform to

the requirements of this Notice, the OCS

Lands Act, as amended, and other

applicable regulations may be returned

to the person submitting that bid by the

RD and not considered for acceptance.

To ensure that the Government

receives a fair return for the conveyance

of lease rights for this sale, the MMS has

modified its two-phased process for bid

adequacy determination. The MMS will

not automatically accept legal high bids

on confirmed and wildcat tracts which

receive three or more bids. Such tracts

will be evaluated in accordance with the

remaining elements of the MMS bid

adequacy procedures. This modification

was described in the Federal Register

on March 29, 1996 (61 FR 14162). A

copy of the revised bid adequacy

procedures (‘‘Summary of Procedures

for Determining Bid Adequacy at

Offshore Oil and Gas Lease Sales:

Effective April 1996, with Sale 157’’) is

available from the MMS Gulf of Mexico

Regional Office (see paragraph 14(a) of

this Notice).

10. Successful Bidders. The following

requirements apply to successful

bidders in this sale:

(a) Lease Issuance.

Each person who has submitted a bid

accepted by the authorized officer will

be required to execute copies of the

lease (Form MMS–2005 (March 1986) as

amended), pay the balance of the cash

bonus bid along with the first year’s

annual rental for each lease issued, by

electronic funds transfer in accordance

with the requirements of 30 CFR

218.155, and satisfy the bonding

requirements of 30 CFR 256, Subpart I,

as amended.

Paragraphs 14(n) and (o), Information

to Lessees, contain additional

information pertaining to this matter.

(b) Certification Regarding

Nonprocurement Debarment,

Suspension, and Other Responsibility

Matters—Primary Covered Transactions.

Each person involved as a bidder in

a successful high bid must have on file,

in the MMS Gulf of Mexico Regional

Office Adjudication Unit, a currently

valid certification that the person is not

excluded from participation in primary

covered transactions under Federal

nonprocurement programs and

activities. A certification previously

provided to that office remains currently

valid until new or revised information

applicable to that certification becomes

available. In the event of new or revised

applicable information, a subsequent

certification is required before lease

issuance can occur. Persons submitting

such certifications should review the

requirements of 43 C.F.R., Part 12,

Subpart D, as amended in the Federal

Register of June 26, 1995, at 60 FR

33035.

Copies of the certification form are

available from the MMS Gulf of Mexico

Regional Office Public Information Unit.

See Paragraph 14(a) of this Notice for

directions on how to obtain the forms.

11. Leasing Maps and Official

Protraction Diagrams. Tracts offered for

lease may be located on the following

Leasing Maps or Official Protraction

Diagrams which may be purchased from

the MMS Gulf of Mexico Regional Office

Public Information Office (see paragraph

14(a)):

(a) Outer Continental Shelf (OCS)

Leasing Maps—Louisiana Nos. 1

through 12. This is a set of 30 maps

which sells for $32.

(b) Outer Continental Shelf Official

Protraction Diagrams. These diagrams

sell for $2.00 each.

NH 15–12 Ewing Bank (rev. 12/02/76).

NH 16–4 Mobile (rev. 02/23/93).

NH 16–7 Viosca Knoll (rev. 12/02/76).

NH 16–10 Mississippi Canyon (rev.

05/01/96).

NG 15–3 Green Canyon (rev. 12/02/

76).

NG 15–6 Walker Ridge (rev. 12/02/76).

NG 15–9 (No Name) (rev. 04/27/89).

NG 16–1 Atwater Valley (rev. 11/10/

83).

NG 16–4 Lund (rev. 08/22/86).

NG 16–7 (No Name) (rev. 04/27/89).

12. Description of the Areas Offered

for Bids.

(a) Acreage of blocks is shown on

Leasing Maps and Official Protraction

Diagrams. Some of these blocks,

however, may be partially leased, or

transected by administrative lines such

as the Federal/State jurisdictional line.

Information on the unleased portions of

such blocks, including the exact

acreage, is included in the following

document as a part of this Notice and is

currently available from the MMS Gulf

of Mexico Regional Office (see

paragraph 14(a)): Central Gulf of Mexico

Lease Sale 166—Final—Unleased Split

Blocks and Unleased Acreage of Blocks

with Aliquots and Irregular Portions

Under Lease.

(b) Tracts not available for leasing:

The areas offered for leasing include all

those blocks shown on the OCS Leasing

Maps and Official Protraction Diagrams

listed in paragraph 11(a) and (b), except

for those blocks or partial blocks already

under lease and those blocks or partial

blocks listed below. A list of Central

Gulf of Mexico tracts currently under

lease is included in the Sale Notice

Package available from the MMS Gulf of

Mexico Regional Office (see paragraph

14(a)).
4792 Federal Register / Vol. 62, No. 21 / Friday, January 31, 1997 / Notices

Although currently unleased, the

following tracts are currently under

appeal and therefore unavailable for

leasing: Main Pass Area, South and East

Addition, Blocks 253 and 254.

Although currently unleased, the

following tracts are not offered in this

sale: Mobile Area, Blocks 826 and 829.

Note: As noted in the Final Notices of Sales

for Sale 157 and 161, tracts or portions of

tracts beyond the United States Exclusive

Economic Zone are offered based upon

provisions of the 1982 Law of the Sea

Convention, and could be subject to a

continental shelf delimitation agreement

between the United States and Mexico.

A list of these tracts or portions of tracts

and a map are included in the Sale Notice

Package available from the MMS Gulf of

Mexico Regional Office (see paragraph 14(a)).

13. Lease Terms and Stipulations.

(a) Leases resulting from this sale will

have initial terms as shown on the

Stipulations, Lease Terms, and Bidding

Systems Map applicable to this Notice.

Copies of the map and lease form are

available from the MMS Gulf of Mexico

Regional Office (see paragraph 14(a)).

(b) The applicability of the

stipulations which follow is as shown

on the map described in paragraph 13(a)

and as supplemented by references in

this Notice.

Stipulation No. 1—Topographic

Features

(This stipulation will be included in

leases located in the areas so indicated

in the Biological Stipulation Map

Package associated with this Notice

which is available from the Gulf of

Mexico Regional Office (see paragraph

14(a)).

The banks that cause this stipulation

to be applied to blocks of the Central

Gulf are:

Bank name

No activity

zone defined

by Isobath

(meters)

McGrail Bank ........................ 85

Bouma Bank ......................... 85

Rezak Bank .......................... 85

Sidner Bank .......................... 85

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

Sackett Bank 2 ...................... 85

Ewing Bank ........................... 85

Diaphus Bank 2 ..................... 85

Parker Bank .......................... 85

Jakkula Bank ........................ 85

Sweet Bank 1 ........................ 85

Bright Bank ........................... 85

Geyer Bank 3 ......................... 85

MacNeil Bank 3 ..................... 82

Alderdice Bank ...................... 80

Fishnet Bank 2 ....................... 76

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

Sonnier Bank ........................ 55

1Only paragraph (a) of the stipulation applies.

2Only paragraphs (a) and (b) apply.

3Western Gulf of Mexico bank with a portion of its ‘‘3-Mile Zone’’ in the Central Gulf of

Mexico.

(a) No activity including structures,

drilling rigs, pipelines, or anchoring

will be allowed within the listed isobath

(‘‘No Activity Zone’’ as shown in the

aforementioned Biological Stipulation

Map Package) of the banks as listed

above.

(b) Operations within the area shown

as ‘‘1,000-Meter Zone’’ in the

aforementioned Biological Stipulation

Map Package shall be restricted by

shunting all drill cuttings and drilling

fluids to the bottom through a downpipe

that terminates an appropriate distance,

but no more than 10 meters, from the

bottom.

(c) Operations within the area shown

as ‘‘1-Mile Zone’’ in the aforementioned

Biological Stipulation Map Package

shall be restricted by shunting all drill

cuttings and drilling fluids to the

bottom through a downpipe that

terminates an appropriate distance, but

no more than 10 meters, from the

bottom. (Where there is a ‘‘1-Mile Zone’’

designated, the ‘‘1,000-Meter Zone’’ in

paragraph (b) is not designated.)

(d) Operations within the area shown

as ‘‘3-Mile Zone’’ in the aforementioned

Biological Stipulation Map Package

shall be restricted by shunting all drill

cuttings and drilling fluids from

development operations to the bottom

through a downpipe that terminates an

appropriate distance, but no more than

10 meters, from the bottom.

Stipulation No. 2—Live Bottoms

(To be included only on leases in the

following blocks: Main Pass Area, South

and East Addition, Blocks 190, 194, 198,

219–226, 244–266, 276–290; Viosca

Knoll, Blocks 473–476, 521, 522, 564,

565, 566, 609, 610, 654, 692–698, 734,

778.)

For the purpose of this stipulation,

‘‘live bottom areas’’ are defined as

seagrass communities; or those areas

which contain biological assemblages

consisting of such sessile invertebrates

as sea fans, sea whips, hydroids,

anemones, ascidians, sponges,

bryozoans, or corals living upon and

attached to naturally occurring hard or

rocky formations with rough, broken, or

smooth topography; or areas whose

lithotope favors the accumulation of

turtles, fishes, and other fauna.

Prior to any drilling activities or the

construction or placement of any

structure for exploration or

development on this lease, including,

but not limited to, anchoring, well

drilling, and pipeline and platform

placement, the lessee will submit to the

Regional Director (RD) a live bottom

survey report containing a bathymetry

map prepared utilizing remote sensing

techniques. The bathymetry map shall

be prepared for the purpose of

determining the presence or absence of

live bottoms which could be impacted

by the proposed activity. This map shall

encompass such an area of the seafloor

where surface disturbing activities,

including anchoring, may occur.

If it is determined that the live

bottoms might be adversely impacted by

the proposed activity, the RD will

require the lessee to undertake any

measure deemed economically,

environmentally, and technically

feasible to protect the pinnacle area.

These measures may include, but are

not limited to, the following:

(a) The relocation of operations; and

(b) The monitoring to assess the

impact of the activity on the live

bottoms.

Stipulation No. 3—Military Areas

(This stipulation will be included in

leases located within the Warning Areas

and Eglin Water Test Areas 1 and 3, as

shown on the map described in

paragraph 13(a)).

(a) Hold and Save Harmless.

Whether compensation for such

damage or injury might be due under a

theory of strict or absolute liability or

otherwise, the lessee assumes all risks of

damage or injury to persons or property,

which occur in, on, or above the Outer

Continental Shelf (OCS), to any persons

or to any property of any person or

persons who are agents, employees, or

invitees of the lessee, its agents,

independent contractors, or

subcontractors doing business with the

lessee in connection with any activities

being performed by the lessee in, on, or

above the OCS, if such injury or damage

to such person or property occurs by

reason of the activities of any agency of

the United States Government, its

contractors or subcontractors, or any of

its officers, agents or employees, being

conducted as a part of, or in connection

with, the programs and activities of the

command headquarters listed in the

following table.

Notwithstanding any limitation of the

lessee’s liability in Section 14 of the

lease, the lessee assumes this risk

whether such injury or damage is

caused in whole or in part by any act

or omission, regardless of negligence or

fault, of the United States, its

contractors or subcontractors, or any of

its officers, agents, or employees. The

lessee further agrees to indemnify and

save harmless the United States against

all claims for loss, damage, or injury

sustained by the lessee, or to indemnify
Federal Register / Vol. 62, No. 21 / Friday, January 31, 1997 / Notices 4793

and save harmless the United States

against all claims for loss, damage, or

injury sustained by the agents,

employees, or invitees of the lessee, its

agents, or any independent contractors

or subcontractors doing business with

the lessee in connection with the

programs and activities of the

aforementioned military installation,

whether the same be caused in whole or

in part by the negligence or fault of the

United States, its contractors, or

subcontractors, or any of its officers,

agents, or employees and whether such

claims might be sustained under a

theory of strict or absolute liability or

otherwise.

(b) Electromagnetic Emissions.

The lessee agrees to control its own

electromagnetic emissions and those of

its agents, employees, invitees,

independent contractors or

subcontractors emanating from

individual designated defense warning

areas in accordance with requirements

specified by the commander of the

command headquarters listed in the

following table to the degree necessary

to prevent damage to, or unacceptable

interference with, Department of

Defense flight, testing, or operational

activities, conducted within individual

designated warning areas. Necessary

monitoring control, and coordination

with the lessee, its agents, employees,

invitees, independent contractors or

subcontractors, will be effected by the

commander of the appropriate onshore

military installation conducting

operations in the particular warning

area; provided, however, that control of

such electromagnetic emissions shall in

no instance prohibit all manner of

electromagnetic communication during

any period of time between a lessee, its

agents, employees, invitees,

independent contractors or

subcontractors and onshore facilities.

(c) Operational.

The lessee, when operating or causing

to be operated on its behalf, boat, ship,

or aircraft traffic into the individual

designated warning areas shall enter

into an agreement with the commander

of the individual command

headquarters listed in the following list,

upon utilizing an individual designated

warning area prior to commencing such

traffic. Such an agreement will provide

for positive control of boats, ships, and

aircraft operating into the warning areas

at all times.

W–155A and B (For Agreement)—Chief,

Naval Air Training, Naval Air Station,

Office No. 206, Corpus Christi, Texas

78419–5100, Telephone: (512) 939–

3862/2621

W–155A and B (For Operational

Control)—Fleet Area Control &

Surveillance Facility (FACSFAC),

Operations, Naval Air Station,

Pensacola, Florida 32508, Telephone:

(904) 452–2735/4671

W–92—Naval Air Station, Air

Operations Department, Air Traffic

Division/Code 52, New Orleans,

Louisiana 70146–5000, Telephone:

(504) 393–3100/3101

W–453—Air National Guard—CRTC/

ACTS, Scheduling Office, 4715 Hews

Avenue Building 1, Gulfport,

Mississippi 39507, Telephone: (601)

867–2432/2433

Eglin Water Test Areas 1 and 3—Air

Force Development Test Center,

Strategic Plans Division AFDTC/DRP,

101 West ‘‘D’’ Avenue, Suite 125,

Eglin AFB, Florida 32542–5495,

Telephone: (904) 882–3899/4188

14. Information to Lessees.

(a) Supplemental Documents. For

copies of the various documents

identified as available from the MMS

Gulf of Mexico Regional Office,

prospective bidders should contact the

Public Information Office, Minerals

Management Service, 1201 Elmwood

Park Boulevard, New Orleans, Louisiana

70123–2394, either in writing or by

telephone at (504) 736–2519 or (800)

200–GULF. For additional information,

contact the Regional Supervisor for

Leasing and Environment at that

address or by telephone at (504) 736–

2759.

(b) Navigation Safety. Operations on

some of the blocks offered for lease may

be restricted by designation of fairways,

precautionary zones, anchorages, safety

zones, or traffic separation schemes

established by the U.S. Coast Guard

pursuant to the Ports and Waterways

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

amended, and the Deepwater Port Act

(33 U.S.C. 1501–1524). Bidders are

advised to review U.S. Coast Guard

regulations (particularly 33 CFR Part

150, Appendix A; see also 59 FR 17480

published on April 13, 1994) regarding

the safety zone around the Louisiana

Offshore Oil Port (LOOP).

U.S. Army Corps of Engineers (COE)

permits are required for construction of

any artificial islands, installations, and

other devices permanently or

temporarily attached to the seabed

located on the OCS in accordance with

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

amended.

For additional information,

prospective bidders should contact Lt.

Commander Ken Parris, Assistant

Marine Port Safety Officer, 8th Coast

Guard District, Hale Boggs Federal

Building, New Orleans, Louisiana

70130, (504) 589–6901. For COE

information, prospective bidders should

contact Mr. Ron Ventola CELMN-OD-S,

Post Office Box 60267, New Orleans,

Louisiana 70160–0267, (504) 862–2255.

(c) Offshore Pipelines. Bidders are

advised that the Department of the

Interior and the Department of

Transportation have entered into a

Memorandum of Understanding, dated

December 10, 1976, concerning the

design, installation, operations,

inspection, and maintenance of offshore

pipelines. Bidders should consult both

Departments for regulations applicable

to offshore pipelines.

(d) 8-Year Leases. Bidders are advised

that any lease issued for a term of 8

years will be canceled shortly after the

end of the fifth year, following notice

pursuant to the OCS Lands Act, as

amended, if within the initial 5-year

period of the lease, the drilling of an

exploratory well has not been initiated;

or if initiated, the well has not been

drilled in conformance with the

approved exploration plan criteria; or if

there is not a suspension of operations

in effect. Furthermore, a rental payment

for the sixth year will be due despite the

cancellation. Bidders are referred to 30

CFR 256.37 and the MMS Gulf of

Mexico Regional Office Letter to Lessees

and Operators of February 13, 1995.

(e) Affirmative Action. Revision of

Department of Labor regulations on

affirmative action requirements for

Government contractors (including

lessees) has been deferred, pending

review of those regulations (see Federal

Register of August 25, 1981, at 46 FR

42865 and 42968). Should changes

become effective at any time before the

issuance of leases resulting from this

sale, section 18 of the lease form (Form

MMS–2005, March 1986), would be

deleted from leases resulting from this

sale. In addition, existing stocks of the

affirmative action forms described in

paragraph 5 of this Notice contain

language that would be superseded by

the revised regulations at 41 CFR 60–

1.5(a)(1) and 60–1.7(a)(1). Submission of

Form MMS–2032 (June 1985) and Form

MMS–2033 (June 1985) will not

invalidate an otherwise acceptable bid,

and the revised regulations’

requirements will be deemed to be part

of the existing affirmative action forms.

(f) Ordnance Disposal Areas. Bidders

are cautioned as to the existence of two

inactive ordnance disposal areas in the

Mississippi Canyon area, shown on the

map described in paragraph 13(a). These

areas were used to dispose of ordnance

of unknown quantity and composition.

Water depths range from approximately

750 to 1,525 meters. Bottom sediments

in both areas are soft, consisting of silty

clays. Exploration and development

activities in these areas require
4794 Federal Register / Vol. 62, No. 21 / Friday, January 31, 1997 / Notices

precautions commensurate with the

potential hazards.

The U.S. Air Force has released an

indeterminable amount of unexploded

ordnance throughout Eglin Water Test

Areas 1 and 3. The exact location of the

unexploded ordnance is unknown, and

lessees are advised that all lease blocks

included in this sale within these water

test areas should be considered

potentially hazardous to drilling and

platform and pipeline placement.

(g) Communications Towers. The

Department of Defense, U.S. Air Force,

has installed seven military

communications towers in the

Chandeleur/Mobile/Viosca Knoll area

which support Air Combat Maneuvering

Instrumentation (ACMI). This project

may impose certain restrictions on oil

and gas activities in that area since no

activity can take place within 500 feet

of a tower site, and unobstructed lines

of sight must be maintained between

towers. The seven towers are located

within Mobile, Blocks 769, 819, and

990; Viosca Knoll, Block 116;

Chandeleur Area, Blocks 33 and 61; and

Chandeleur Area, East Addition, Block

39. Information and maps of the specific

locations and line of sight crossings for

ACMI towers may be obtained from Mr.

Wallace Williams, Minerals

Management Service, (504) 736–2772.

(h) Archaeological Resources. Bidders

are referred to the regulations at 30 CFR

250.26 (Archaeological Reports and

Surveys). MMS Notice to Lessees (NTL)

91–02 (Outer Continental Shelf

Archaeological Resources Requirements

for the Gulf of Mexico OCS Region)

published in the Federal Register on

December 20, 1991 (56 FR 66076)

effective February 17, 1992, specifies

remote sensing instrumentation survey

methodology, linespacing, and

archaeological report writing

requirements for lessees and operators

in the Gulf of Mexico Region.

Three additional documents are

available from the MMS Gulf of Mexico

Region Public Information Office (see

paragraph 14(a)):

‘‘List of Lease Blocks Within the HighProbability Area for Historic Period

Shipwrecks on the OCS’’ dated January 30,

1995 (including an Errata Sheet dated

January 15, 1997). This list supersedes the

list promulgated by the MMS Letter to

Lessees (LTL) of November 30, 1990.

‘‘List of Lease Blocks Within the HighProbability Area for Prehistoric

Archaeological Resources on the OCS’’ dated

January 30, 1995.

MMS Gulf of Mexico Regional Office Letter

to Lessees and Operators of March 17, 1996,

which contains a list of lease blocks within

the High-Probability Areas for both Historic

Period Shipwrecks and Prehistoric

Archaeological Resources on the OCS that

were formerly ‘‘grandfathered’’ but which

may now require archaeological surveys.

(i) Proposed Artificial Reefs/Rigs to

Reefs. Bidders are advised that there are

OCS artificial reef planning areas and

reef sites for the Gulf of Mexico. These

are generally located in water depths of

less than 200 meters. While all artificial

reef sites require a permit from the U.S.

Army Corps of Engineers, the Artificial

Reefs program is implemented through

State sponsorship through the following

State Coordinators:

Alabama Mr. Steve Heath, (334) 968–

7576

Florida Mr. Jon Dodrill, (904) 922–4340

Louisiana Mr. Rick Kasprzak, (504) 765–

2375

Mississippi Mr. Mike Buchanan, (601)

385–5860

Texas Ms. Jan Culbertson, (281) 474–

1418

For more information, on artificial

reef sites, prospective bidders should

contact the above listed State Artificial

Reef Coordinators for their areas of

interest.

(j) Proposed Lightering Zones. Bidders

are advised that the U.S. Coast Guard

has designated certain areas of the Gulf

of Mexico (60 FR 45006 of August 29,

1995), as lightering zones for the

purpose of permitting single hull vessels

to off-load oil within the U.S. Exclusive

Economic Zone. Such designation may

have implications for oil and gas

operations in the areas. Additional

information may be obtained from

Lieutenant Commander Stephen Kantz,

Project Manager, Oil Pollution Act (OPA

90) Staff, at (202) 267–6740.

(k) Statement Regarding Certain

Geophysical Data. Pursuant to Sections

18 and 26 of the OCS Lands Act, as

amended, and the regulations issued

thereunder, MMS has a right of access

to certain geophysical data and

information obtained or developed as a

result of operations on the OCS. MMS

is sensitive to the concerns expressed by

industry regarding the confidentiality of

individual company work products and

client lists and the potential burden of

responding to a myriad of requests from

MMS pertaining to the existence and

availability of these types of reprocessed

geophysical data. To resolve the

concerns of both industry and MMS

with respect to such cases, MMS has

worked with industry to develop the

requirements contained within

paragraph 3(b) Method of Bidding

above. MMS modified the previous

procedure to require that bidders who

are in possession of the requested data,

now identify the specific data by line

name or 3D phase. This has helped

MMS in identifying time data that may

have already been in our data base and

at the same time not imposed undue

burden on industry by re-requesting it.

MMS is currently considering further

modifications to the above procedures

that would aid in the identification of

the data extent and at the same time

hasten the procurement and

reimbursement processes to bidders

who furnish MMS with data. These

changes will be available in April 1997

with the issuance of the Proposed

Notice of Sale for Western Gulf Sale

168, scheduled for August 1997. All

requirements are being imposed on a

trial basis to determine their

effectiveness and are subject to further

modification in future sales.

The details of this requirement are

specified in the document ‘‘Trial

Procedures for Access to Certain

Geophysical Data in the Gulf of Mexico’’

(revised January 19, 1996) which is

available upon request from the MMS

Gulf of Mexico Region Public

Information Office (see paragraph 14(a)).

In brief, these requirements include:

(1) In the period for ninety (90) days

after the sale, bidders will allow MMS

to inspect such data within seven (7)

days of a written request from MMS,

and upon further written request will

transmit to MMS, within ten (10)

working days, such data. After this

ninety day period, a response time of

thirty (30) days following an MMS

written request will be considered

adequate.

(2) Successful bidders must retain

such data for three (3) years after the

sale, and unsuccessful bidders must

retain such data for six (6) months after

the sale, for possible acquisition by

MMS.

For the six (6) month period after the

sale, based on a review of the allowable

cost of data reproduction to MMS for

three-dimensional and two-dimensional

data sets, the company providing the

reprocessed data will be reimbursed at

a rate of $480 per block or part thereof

for three-dimensional data and $2 per

line mile for two-dimensional data.

Afterwards, reimbursement will be

subject to the terms and conditions of 30

CFR 251.13(a).

All geophysical data and information

obtained and reviewed by MMS

pursuant to these procedures shall be

held in the strictest confidence and

treated as proprietary in accordance

with the applicable terms of 30 CFR

251.14.

For additional information, contact

the MMS Gulf of Mexico Regional Office

of Resource Evaluation at (504) 736–

2720.

(l) Information about Indicated

Hydrocarbons. Bidders are advised that
Federal Register / Vol. 62, No. 21 / Friday, January 31, 1997 / Notices 4795

MMS makes available, about 3 months

prior to a lease sale, a list of unleased

tracts having well bores with indicated

hydrocarbons. Basic information

relating to production, well bores, and

pay range for each tract is included in

the list. The list is available from the

MMS Gulf of Mexico Region Public

Information Office (see paragraph 14(a)).

(m) Royalty Relief. The Outer

Continental Shelf (OCS) Deep Water

Royalty Relief Act authorizes the

Secretary of the Interior to offer certain

deepwater OCS tracts in the Central and

Western Gulf of Mexico for lease with

suspension of royalties for a volume,

value, or period of production the

Secretary determines. An interim rule

was published in the Federal Register

(61 FR 12022; March 25, 1996) that

specifies the royalty suspension terms

under which the Secretary will make

tracts available for this sale. Bidders are

advised to review that document for

additional details on this matter. For

further information, bidders may

contact Walter Cruickshank of the MMS

Offshore Minerals Analysis Division at

(202) 208–3822.

A map titled ‘‘Royalty Suspension

Areas For The Central Gulf Of Mexico

(March 1996)’’ depicting blocks in

which such suspensions may apply is

currently available from the MMS Gulf

of Mexico Regional Office (see

paragraph 14(a) of this Notice).

The publication ‘‘OCS Operations

Field Names Master List’’ depicts

currently established fields in the Gulf

of Mexico. This document is updated

monthly and reprinted quarterly. Copies

may be obtained from the MMS Gulf of

Mexico Regional Office (see paragraph

14(a) of this Notice).

(n) Lease Instrument. Bidders are

advised that the lease instrument will

include royalty relief provisions

(paragraph 4(c)(3) of this Notice) and 8-

year lease cancellation provisions

(paragraph 14(d) of this Notice) where

applicable. Leases will continue to be

issued on Form MMS–2005 (March

1986) as amended.

(o) Electronic Funds Transfer. Bidders

are advised that the 4⁄5ths and first year

rental EFT instructions for lease payoff

have been revised and updated by MMS

Royalty Management. Companies may

now use either the Fedwire Deposit

System or the Automated Clearing

House (overnight payments). See

paragraph 10(a) of this Notice.

(p) Deepwater Operations Plans.

Bidders are advised that MMS Notice to

Lessees (NTL) 96–4N, which became

effective on August 19, 1996, requires

that a Deepwater Operations Plan be

submitted for all deepwater

development projects (water depths

greater than 304.8 meters (1,000 feet))

and for all projects utilizing subsea

production technology; projects using

conventional fixed-leg projects are

exempted from this requirement. Copies

of the NTL may be obtained from the

MMS Gulf of Mexico Regional Office

(see paragraph 14(a) of this Notice).

Cynthia Quarterman,

Director, Minerals Management Service.

Approved: January 24, 1997.

Sylvia V. Baca,

Deputy Assistant Secretary, Land and

Minerals Management.

[FR Doc. 97–2334 Filed 1–30–97; 8:45 am]

BILLING CODE 4310–MR–P

Outer Continental Shelf, Central Gulf of

Mexico; Notice of Leasing Systems,

Sale 166

Section 8(a)(8) (43 U.S.C. 1337(a)(8))

of the Outer Continental Shelf Lands

Act (OCSLA) requires that, at least 30

days before any lease sale, a Notice be

submitted to the Congress and

published in the Federal Register:

1. identifying the bidding systems to

be used and the reasons for such use;

and

2. designating the tracts to be offered

under each bidding system and the

reasons for such designation.

This Notice is published pursuant to

these requirements.

1. Bidding systems to be used. In the

Outer Continental Shelf (OCS) Sale 166,

blocks will be offered under the

following two bidding systems as

authorized by section 8(a)(1) (43 U.S.C.

1337(a)(1)), as amended: (a) Bonus

bidding with a fixed 162⁄3-percent

royalty on all unleased blocks in less

than 200 meters of water; and (b)(i)

bonus bidding with a fixed 162⁄3-percent

royalty on all unleased blocks in 200

meters of water or more, with a royalty

suspension volume of up to 17.5 million

barrels of oil equivalent on all unleased

blocks in 200 to 400 meters of water; (ii)

bonus bidding with a fixed 121⁄2-percent

royalty on all unleased blocks in 400 to

800 meters of water with a royalty

suspension volume of up to 52.5 million

barrels of oil equivalent; and (iii) bonus

bidding with a fixed 121⁄2-percent

royalty on all unleased blocks in water

depths of 800 meters or more with a

royalty suspension volume of up to 87.5

million barrels of oil equivalent.

For bidding systems (b)(i), (ii), and

(iii), the royalty suspension allocation

rules are described in the Interim Rule

(30 CFR Part 260) addressing royalty

relief for new leases that was published

in the Federal Register on March 25,

1996 (61 FR 12022).

a. Bonus Bidding with a 162⁄3-Percent

Royalty. This system is authorized by

section (8)(a)(1)(A) of the OCSLA. This

system has been used extensively since

the passage of the OCSLA in 1953 and

imposes greater risks on the lessee than

systems with higher contingency

payments but may yield more rewards

if a commercial field is discovered. The

relatively high front-end bonus

payments may encourage rapid

exploration.

b. (i) Bonus Bidding with a 162⁄3-

Percent Royalty and a Royalty

Suspension Volume (17.5 million

barrels of oil equivalent). This system is

authorized by section (8)(a)(1) (H) of the

OCSLA, and amended. This system

complies with Sec. 304 of the Outer

Continental Shelf Deep Water Royalty

Relief Act (DWRRA). An incentive for

development and production in water

depths of 200 to 400 meters is provided

through allocating royalty suspension

volumes of 17.5 million barrels of oil

equivalent to eligible fields.

b.(ii) Bonus Bidding with a 121⁄2-

Percent Royalty and a Royalty

Suspension Volume (52.5 million

barrels of oil equivalent). This system is

authorized by section (8)(a)(1)(H) of the

OCSLA, as amended. It has been chosen

for blocks in water depths of 400 to 800

meters proposed for the Central Gulf of

Mexico (Sale 166) to comply with Sec.

304 of the DWRRA. The 121⁄2-percent

royalty rate is used in deeper water

because these blocks are expected to

require substantially higher exploration,

development, and production costs, as

well as longer times before initial

production, in comparison to shallowwater blocks. The use of royalty

suspension volume of 52.5 million

barrels of oil equivalent for eligible

fields provides an incentive for

development and production

appropriate for this water depth

category.

b. (iii) Bonus Bidding with a 121⁄2-

Percent Royalty and a Royalty

Suspension Volume (87.5 million

barrels of oil equivalent). This system is

authorized by section (8)(a)(1)(H) of the

OCSLA, as amended. It has been chosen

for blocks in water depths of 800 meters

or more proposed for the Central Gulf of

Mexico (Sale 166) to comply with Sec.

304 of the DWRRA. The use of a royalty

suspension volume of 87.5 million

barrels of oil equivalent for eligible

fields provides an incentive for

development and production

appropriate for these deep-water depths.

2. Designation of Blocks. The

selection of blocks to be offered under

the four systems was based on the

following factors: