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:
4796 Federal Register / Vol. 62, No. 21 / Friday, January 31, 1997 / Notices

a. Royalty rates on adjacent,

previously leased tracts were considered

to enhance orderly development of each

field.

b. Blocks in deep water were selected

for the 121⁄2-percent royalty system

based on the favorable performance of

this system in these high-cost areas in

past sales.

c. The royalty suspension volumes

were based on the water depth specific

volumes mandated by the DWRRA.

The specific blocks to be offered

under each system are shown on the

‘‘Stipulations, Lease Terms, and Bidding

Systems’’ and ‘‘Royalty Suspension

Areas for the Central Gulf of Mexico’’

maps for Central Gulf of Mexico Lease

Sale 166. These maps are available from

the Public Information Unit, Minerals

Management Service, 1201 Elmwood

Park Boulevard, New Orleans, Louisiana

70123–2394.

Dated: January 24, 1997.

Cynthia Quarterman,

Director, Minerals Management Service.

Approved:

Sylvia V. Baca,

Deputy Assistant Secretary, Land and

Minerals Management.

[FR Doc. 97–2458 Filed 1–30–97; 8:45 am]

BILLING CODE 4310–MR–M

Bureau of Reclamation

Proposed Policy and Directives and

Standards for Concessions

Management

AGENCY: Bureau of Reclamation,

Interior.

ACTION: Notice of availability on the

Proposed Policy and Directives and

Standards for Concessions Management.

SUMMARY: The Bureau of Reclamation

(Reclamation) has prepared proposed

Policy and Directives and Standards for

Concessions Management. Concessions

are those commercial services and

facilities that serve the public’s

recreation demands. The basic purpose

of the concessions policy is to provide

principles, objectives, and direction for

developing concessions contracts. The

concessions policy is concerned with

good business practices, providing an

equitable return to the Government, and

protecting the interests of the public

while providing facilities that are safe,

sanitary, and reasonably priced. This

policy affects new concessions

agreements and future sales and

transfers that are administered both

directly by Reclamation and by its nonFederal partners. This proposed policy

will not change the terms of existing

concessions contracts, but will be

applied to new concessions contracts

and new sales and transfers of

concessions contracts. Reclamation is

inviting comments from the public on

the proposed Policy and Directives and

Standards.

DATES: Written comments on these

proposed Policy and Directives and

Standards must be received by May 1,

1997.

To assist the public in better

understanding the proposed Policy and

Directives and Standards, Reclamation

will conduct eight public meetings

between February 25 and March 19,

1997, at the dates, times, and specific

locations indicated under the caption

ADDRESSES. These informational

meetings will include a presentation,

followed by questions and answers.

Public comments will not be formally

recorded at these meetings.

ADDRESSES: Written comments should

be mailed to Bureau of Reclamation,

Attention: Mr. Vernon Lovejoy, Program

Analysis Office (D–5300), PO Box

25007, Denver, CO 80225–0007.

Requests for copies, including braille

and large print, can be obtained by

writing or calling the Public

Involvement Group, Bureau of

Reclamation, Reclamation Service

Center, PO Box 25007, Denver, CO

80225–0007; telephone: (303) 236–2722,

extension 322. Standard copies can also

be obtained from any of the Reclamation

personnel listed under the caption FOR

FURTHER INFORMATION.

Public meetings will be held:

• February 25, 1997, 7:00 p.m. to 9:00

p.m., Holiday Inn, 5500 Midland Road,

Billings, MT 59101.

• February 26, 1997, 7:00 p.m. to 9:00

p.m., Sheraton Denver West Hotel and

Convention Center, 360 Union

Boulevard, Lakewood, CO 80228.

• March 4, 1997, 7:00 p.m. to 9:00

p.m., The Granite Bay Club House, 7806

Folsom-Auburn Road, Folsom, CA

95630.

• March 6, 1997, 7:00 p.m. to 9:00

p.m., Holiday Inn Select, Fairfield/Napa

Valley, 1350 Holiday Lane, Fairfield, CA

94533.

• March 11, 1997, 7:00 p.m. to 9:00

p.m., VA Medical Center, 500 Foothill

Drive, Bldg. No. 9 (Theater), Salt Lake

City, UT 84148.

• March 12, 1997, 7:00 p.m. to 9:00

p.m., Red Lion (Downtowner), 1800

Fairview Avenue, Boise, ID 83702.

• March 18, 1997, 7:00 p.m. to 9:00

p.m., Holiday Inn, Phoenix Corporate

Center, 2532 West Peoria Avenue,

Phoenix, AZ 85029.

• March 19, 1997, 7:00 p.m. to 9:00

p.m., Cashman Field Center, Room 204,

850 North Las Vegas Blvd., Las Vegas,

NV 89101.

• Copies are available for inspection

at the following Reclamation offices as

of the date of this Federal Register

notice:

• Office of the Commissioner, Bureau

of Reclamation, Room 7612, 1849 C

Street, NW, Washington DC 20240.

• Reclamation Service Center, Bureau

of Reclamation, Library, Room 167,

Building 67, Denver Federal Center,

Denver, CO 80225.

• Pacific Northwest Regional Office,

Bureau of Reclamation, Room 214, 1150

North Curtis Road, Boise ID 83706.

• Snake River Area Office-West,

Bureau of Reclamation, 214 Broadway

Avenue, Boise, ID 83702.

• Upper Columbia Area Office,

Bureau of Reclamation, 1917 Marsh

Road, Yakima, WA 98907.

• Lower Columbia Area Office,

Bureau of Reclamation, 825 NE

Multnomah, Suite 1110, Portland, OR

97232–2135.

• Grand Coulee Power Office, Grand

Coulee Dam, Grand Coulee, WA 99133.

• Snake River Area Office-East,

Bureau of Reclamation, 1359 Hansen

Avenue, Burly, ID 83318.

• Mid-Pacific Regional Office, Bureau

of Reclamation, Library, Room W–1522,

2800 Cottage Way, Sacramento, CA

95825.

• Central California Area Office,

Bureau of Reclamation, 7794 Folsom

Dam Road, Folsom, CA 95630.

• South-Central California Area

Office, Bureau of Reclamation, 2666

North Grove Industrial Drive, Suite 106,

Fresno, CA 93727.

• Central Valley Operations Office,

3310 El Camino Avenue, Suite 300,

Sacramento, CA 95821.

• Northern California Area Office,

Bureau of Reclamation, 16349 Shasta

Dam Boulevard, Shasta Lake, CA 96019.

• Klamath Basin Area Office, Bureau

of Reclamation, 6600 Washburn Way,

Klamath Falls, OR 97603.

• Lahontan Basin Area Office, Bureau

of Reclamation, 705 North Plaza Street,

Carson City, NV 89701.

• Lower Colorado Regional Office,

Bureau of Reclamation, Library, Room

M117, Nevada Highway and Park Street,

Boulder City, NV 89005.

• Phoenix Area Office, Bureau of

Reclamation, 1088 North 19th Avenue,

Phoenix, AZ 85029.

• Lower Colorado Dams Facilities

Office, Bureau of Reclamation, Highway

93, Hoover Dam, Boulder City, NV

89005.

• Southern California Area Office,

Bureau of Reclamation, 27710 Jefferson

Avenue, Suite 201, Temecula, CA

92590.

• Yuma Area Office, Bureau of

Reclamation, 7301 Calle Agua Salada,

Yuma, AZ 85364.