Federal Register / Vol. 83, No. 136 / Monday, July 16, 2018 / Notices 32897 

copy of the nomination, include an 

electronic copy of the nomination on a 

data storage device. BOEM will list the 

parties that submitted nominations and 

the location of the proposed lease areas 

(i.e., OCS blocks nominated) on the 

BOEM website after the comment period 

has closed. 

Comments and other submissions of 

information may be submitted by either 

of the following two methods: 

1. Federal eRulemaking Portal: http:// 

www.regulations.gov. In the entry 

entitled, ‘‘Enter Keyword or ID,’’ enter 

BOEM–2018–0004, and then click 

‘‘search.’’ Follow the instructions to 

submit public comments and view 

supporting and related materials 

available for this notice. 

2. U.S. Postal Service or other 

delivery service. Send your comments 

and information to the following 

address: Bureau of Ocean Energy 

Management, Office of Renewable 

Energy Programs, 45600 Woodland 

Road (VAM–OREP), Sterling, Virginia 

20166. 

All responses will be reported on 

http://www.regulations.gov. 

If you wish to protect the 

confidentiality of your nominations or 

comments, clearly mark the relevant 

sections and request that BOEM treat 

them as confidential. Please label 

privileged or confidential information 

‘‘Contains Confidential Information,’’ 

and consider submitting such 

information as a separate attachment. 

Treatment of confidential information is 

addressed in the section of this Call 

entitled, ‘‘Protection of Privileged or 

Confidential Information.’’ Information 

that is not labeled as privileged or 

confidential will be regarded by BOEM 

as suitable for public release. 

FOR FURTHER INFORMATION CONTACT: 

Luke Feinberg, BOEM, Office of 

Renewable Energy Programs, 45600 

Woodland Road (VAM–OREP), Sterling, 

Virginia 20166, (703) 787–1705 or 

luke.feinberg@boem.gov. 

SUPPLEMENTARY INFORMATION: 

Authority: This Call is published 

pursuant to subsection 8(p)(3) of the 

OCS Lands Act, 43 U.S.C. 1337(p)(3), 

which was added by section 388 of the 

Energy Policy Act of 2005 (EPAct), as 

well as the implementing regulations at 

30 CFR part 585. 

Background and Purpose: The OCS 

Lands Act requires BOEM to award 

leases competitively, unless BOEM 

makes a determination that there is no 

competitive interest (43 U.S.C. 

1337(p)(3)). BOEM will make this 

determination after reviewing the 

nominations received in response to this 

Call. This Call also requests information 

from interested and affected parties on 

issues relevant to potential leasing 

within the Call Areas. 

The responses to this Call could lead 

to the initiation of a competitive leasing 

process in some parts of the Call Areas 

(i.e., where competition exists), and a 

noncompetitive process in other parts of 

the Call Areas (i.e., where no 

competitive interest exists). The Call, 

described in detail in the Federal 

Register (83 FR 15602 (April 11, 2018)), 

had an initial comment deadline of May 

29, 2018, but several stakeholders have 

requested additional time to comment. 

BOEM agrees that it would be helpful in 

this instance to reopen the comment 

period until July 30, 2018. 

Protection of Privileged or 

Confidential Information: BOEM will 

protect privileged or confidential 

information that you submit as provided 

in the Freedom of Information Act 

(FOIA). Exemption 4 of FOIA applies to 

trade secrets and commercial or 

financial information that you submit 

that is privileged or confidential. If you 

wish to protect the confidentiality of 

such information, clearly mark it and 

request that BOEM treat it as 

confidential. BOEM will not disclose 

such information if it qualifies for 

exemption from disclosure under FOIA. 

Please label privileged or confidential 

information ‘‘Contains Confidential 

Information’’ and consider submitting 

such information as a separate 

attachment. 

BOEM will not treat as confidential 

any aggregate summaries of such 

information or comments not containing 

such information. Additionally, BOEM 

will not treat as confidential (1) the legal 

title of the nominating entity (for 

example, the name of your company), or 

(2) the list of whole or partial blocks 

that you are nominating. Information 

that is not labeled as privileged or 

confidential will be regarded by BOEM 

as suitable for public release. 

Dated: July 11, 2018. 

Walter D. Cruickshank, 

Acting Director, Bureau of Ocean Energy 

Management. 

[FR Doc. 2018–15133 Filed 7–13–18; 8:45 am] 

BILLING CODE 4310–MR–P 

DEPARTMENT OF THE INTERIOR 

Bureau of Ocean Energy Management 

[Docket No. BOEM–2018–0035] 

Gulf of Mexico Outer Continental Shelf 

Region-Wide Oil and Gas Lease Sale 

251 

AGENCY: Bureau of Ocean Energy 

Management, Interior. 

ACTION: Final notice of sale. 

SUMMARY: On Wednesday, August 15, 

2018, the Bureau of Ocean Energy 

Management (BOEM) will open and 

publicly announce bids received for 

blocks offered in the Gulf of Mexico 

(GOM) Outer Continental Shelf (OCS) 

Region-wide Oil and Gas Lease Sale 251 

(GOM Region-wide Sale 251), in 

accordance with the provisions of the 

Outer Continental Shelf Lands Act 

(OCSLA), as amended, and the 

implementing regulations issued 

pursuant thereto. The GOM Regionwide Sale 251 Final Notice of Sale 

(NOS) package contains information 

essential to potential bidders. 

DATES: BOEM will hold GOM Regionwide Sale 251 at 9:00 a.m. on 

Wednesday, August 15, 2018. All times 

referred to in this document are Central 

Standard Time, unless otherwise 

specified. 

Bid submission deadline: BOEM 

accepts sealed bids between 8:00 a.m. 

and 4:00 p.m. on normal working days 

prior to the sale with the exception of 

Tuesday, August 14th, the day before 

the sale. BOEM must receive all bids for 

GOM Region-wide Sale 251 by 10:00 

a.m. on Tuesday, August 14, 2018. For 

more information on bid submission, 

see Section VII, ‘‘Bidding Instructions,’’ 

of this document. 

ADDRESSES: Bids will be accepted prior 

to the bid receipt deadline at 1201 

Elmwood Park Boulevard, New Orleans, 

Louisiana. Public bid reading for GOM 

Region-wide Sale 251 will be held at 

1201 Elmwood Park Boulevard, New 

Orleans, Louisiana, but the venue will 

not be open to the general public, 

media, or industry during bid opening 

or reading. Bid opening will be available 

for public viewing on BOEM’s website 

at www.boem.gov via live-streaming 

video beginning at 9:00 a.m. on the date 

of the sale. BOEM will also post the 

results on its website after bid opening 

and reading are completed. Interested 

parties may download the Final NOS 

package from BOEM’s website at http:// 

www.boem.gov/Sale-251/. Copies of the 

sale maps may be obtained by 

contacting the BOEM GOM Region at: 

Gulf of Mexico Region Public 

Information Office, Bureau of Ocean 

Energy Management, 1201 Elmwood 

Park Boulevard, New Orleans, Louisiana 

70123–2394, (504) 736–2519 or (800) 

200–GULF. 

For more information on bid 

submission, see Section VII, ‘‘Bidding 

Instructions,’’ of this document. 

FOR FURTHER INFORMATION CONTACT: Ann 

Glazner, Deputy Regional Supervisor, 

Office of Leasing and Plans, 504–736– 


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2607, ann.glazner@boem.gov or Wright 

Jay Frank, Acting Chief, Leasing Policy 

and Management Division, 703–787– 

1325, wright.frank@boem.gov. 

Table of Contents 

This Final NOS includes the 

following sections: 

I. Lease Sale Area 

II. Statutes and Regulations 

III. Lease Terms and Economic Conditions 

IV. Lease Stipulations 

V. Information to Lessees 

VI. Maps 

VII. Bidding Instructions 

VIII. Bidding Rules and Restrictions 

IX. Forms 

X. The Lease Sale 

XI. Delay of Sale 

I. Lease Sale Area 

Blocks Offered for Leasing: BOEM 

will offer for bid in this lease sale all of 

the available unleased acreage in the 

GOM, except those blocks listed in 

‘‘Blocks Not Offered for Leasing’’ below. 

Blocks Not Offered for Leasing: The 

following whole, segregated, and partial 

blocks are not offered for lease in this 

sale. The BOEM Official Protraction 

Diagrams (OPDs) and Supplemental 

Official Block Diagrams are available 

online at https://www.boem.gov/Mapsand-GIS-Data/. 

Whole and partial blocks that lie 

within the current boundaries of the 

Flower Garden Banks National Marine 

Sanctuary (in the East and West Flower 

Garden Banks and the Stetson Bank), 

identified in the following list: 

High Island, East Addition, South Extension 

(Leasing Map TX7C) 

Whole Block: A–398 

Partial Blocks: A–366, A–367, A–374, A– 

375, A–383, A–384, A–385, 

A–388, A–389, A–397, A–399, A–401 

High Island, South Addition (Leasing Map 

TX7B) 

Partial Blocks: A–502, A–513 

Garden Banks (OPD NG15–02) 

Partial Blocks: 134, 135 

Blocks that are adjacent to or beyond 

the United States Exclusive Economic 

Zone in the area known as the northern 

portion of the Eastern Gap: 

Lund South (OPD NG 16–07) 

Whole Blocks: 128, 129, 169 through 173, 

208 through 217, 248 through 261, 293 

through 305, and 349 

Henderson (OPD NG 16–05) 

Whole Blocks: 466, 508 through 510, 551 

through 554, 594 through 599, 637 

through 643, 679 through 687, 722 

through 731, 764 through 775, 807 

through 819, 849 through 862, 891 

through 905, 933 through 949, and 975 

through 992 

Partial Blocks: 467, 511, 555, 556, 600, 644, 

688, 732, 776, 777, 820, 821, 863, 864, 

906, 907, 950, 993, and 994 

Florida Plain (OPD NG 16–08) 

Whole Blocks: 5 through 24, 46 through 67, 

89 through 110, 133 through 154, 177 

through 197, 221 through 240, 265 

through 283, 309 through 327, and 363 

through 370 

All whole and portions of blocks 

deferred by the Gulf of Mexico Energy 

Security Act of 2006, Public Law 109– 

432: 

Pensacola (OPD NH 16–05) 

Whole Blocks: 751 through 754, 793 

through 798, 837 through 842, 881 

through 886, 925 through 930, and 969 

through 975 

Destin Dome (OPD NH 16–08) 

Whole Blocks: 1 through 7, 45 through 51, 

89 through 96, 133 through 140, 177 

through 184, 221 through 228, 265 

through 273, 309 through 317, 353 

through 361, 397 through 405, 441 

through 450, 485 through 494, 529 

through 538, 573 through 582, 617 

through 627, 661 through 671, 705 

through 715, 749 through 759, 793 

through 804, 837 through 848, 881 

through 892, 925 through 936, and 969 

through 981 

DeSoto Canyon (OPD NH 16–11) 

Whole Blocks: 1 through 15, 45 through 59, 

and 92 through 102 

Partial Blocks: 16, 60, 61, 89 through 91, 

103 through 105, and 135 through 147 

Henderson (OPD NG 16–05) 

Partial Blocks: 114, 158, 202, 246, 290, 334, 

335, 378, 379, 422, and 423 

Depth restricted, segregated block 

portion(s): 

Block 299, Main Pass Area, South and East 

Addition (Louisiana Leasing Map LA10A), 

containing 1,125 acres, from the surface of 

the earth down to a subsea depth of 1,900 

feet with respect to the following described 

portions: 

SW1⁄4NE1⁄4; NW1⁄4SE1⁄4NE1⁄4; 

W1⁄2NE1⁄4SE1⁄4NE1⁄4; S1⁄2S1⁄2NW1⁄4NE1⁄4; 

S1⁄2SW1⁄4NE1⁄4NE1⁄4; 

S1⁄2SW1⁄4SE1⁄4NE1⁄4NE1⁄4; N1⁄2SW1⁄4SE1⁄4

NE1⁄4; SW1⁄4SW1⁄4SE1⁄4NE1⁄4; NW1⁄4SE1⁄4

SE1⁄4 NE1⁄4; 

N1⁄2NW1⁄4SW1⁄4SE1⁄4SE1⁄4NE1⁄4; 

N1⁄2SE1⁄4SW1⁄4SE1⁄4NE1⁄4; 

N1⁄2S1⁄2SE1⁄4SW1⁄4SE1⁄4NE1⁄4; 

S1⁄2NE1⁄4NW1⁄4; S1⁄2S1⁄2N1⁄2NE1⁄4NW1⁄4; 

N1⁄2SE1⁄4NW1⁄4; S1⁄2SE1⁄4NW1⁄4NW1⁄4; 

NE1⁄4SE1⁄4NW1⁄4NW1⁄4; 

E1⁄2NE1⁄4SW1⁄4NW1⁄4; 

N1⁄2SE1⁄4SE1⁄4NW1⁄4; 

NE1⁄4SW1⁄4SE1⁄4NW1⁄4; 

N1⁄2NW1⁄4SW1⁄4SE1⁄4NW1⁄4; 

SE1⁄4SE1⁄4SE1⁄4NW1⁄4; 

E1⁄2SW1⁄4SE1⁄4SE1⁄4NW1⁄4; 

N1⁄2NW1⁄4NE1⁄4SW1⁄4NW1⁄4; 

N1⁄2S1⁄2NW1⁄4NE1⁄4SW1⁄4NW1⁄4; 

N1⁄2N1⁄2NE1⁄4NE1⁄4NE1⁄4SW1⁄4; 

N1⁄2N1⁄2N1⁄2NW1⁄4NW1⁄4SE1⁄4; 

N1⁄2N1⁄2NW1⁄4NE1⁄4NW1⁄4SE1⁄4.

The following blocks, whose lease 

status is currently under appeal: 

Keathley Canyon (Leasing Map NG15–05) 

Blocks 290, 291, and 292 

Keathley Canyon (Leasing Map NG15–05) 

Blocks 246 and 247 

Keathley Canyon (Leasing Map NG15–05) 

Blocks 335 and 336 

Vermilion Area (Leasing Map LA3) Partial 

Block 179 

II. Statutes and Regulations 

Each lease is issued pursuant to 

OCSLA, 43 U.S.C. 1331–1356, as 

amended, and is subject to OCSLA 

implementing regulations promulgated 

pursuant thereto in 30 CFR part 556, 

and other applicable statutes and 

regulations in existence upon the 

effective date of the lease. Each lease is 

also subject to those applicable statutes 

enacted and regulations promulgated 

thereafter, except to the extent that the 

after-enacted statutes and regulations 

explicitly conflict with an express 

provision of the lease. Additionally, 

each lease is subject to amendments to 

statutes and regulations, including but 

not limited to OCSLA, that do not 

explicitly conflict with an express 

provision of the lease. The lessee 

expressly bears the risk that such new 

or amended statutes and regulations 

(i.e., those that do not explicitly conflict 

with an express provision of the lease) 

may increase or decrease the lessee’s 

obligations under the lease. 

III. Lease Terms and Economic 

Conditions 

Lease Terms 

OCS Lease Form 

BOEM will use Form BOEM–2005 

(February 2017) to convey leases 

resulting from this sale. This lease form 

may be viewed on BOEM’s website at 

http://www.boem.gov/BOEM-2005. The 

lease form will be amended to conform 

with the specific terms, conditions, and 

stipulations applicable to the individual 

lease. The terms, conditions, and 

stipulations applicable to this sale are 

set forth below. 

Primary Term 

Primary Terms are summarized in the 

following table: 


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Water depth 

(meters) Primary term 

0 to <400 ......................................... The primary term is five years; the lessee may earn an additional three years (i.e., for an eight-year extended primary term) if a well is spudded targeting hydrocarbons below 25,000 feet True Vertical Depth 

Subsea (TVDSS) during the first five years of the lease. 

400 to <800 ..................................... The primary term is five years; the lessee will earn an additional three years (i.e., for an eight-year extended primary term) if a well is spudded during the first five years of the lease. 

800 to <1,600 .................................. The primary term is seven years; the lessee will earn an additional three years (i.e., for a ten-year extended primary term) if a well is spudded during the first seven years of the lease. 

1,600+ ............................................. Ten years. 

(1) The primary term for a lease in 

water depths less than 400 meters 

issued as a result of this sale is five 

years. If the lessee spuds a well targeting 

hydrocarbons below 25,000 feet TVDSS 

within the first five years of the lease, 

then the lessee may earn an additional 

three years, resulting in an eight-year 

primary term. The lessee will earn the 

eight-year primary term when the well 

is drilled to a target below 25,000 feet 

TVDSS, or the lessee may earn the eightyear primary term in cases where the 

well targets, but does not reach, a depth 

below 25,000 feet TVDSS due to 

mechanical or safety reasons, where 

sufficient evidence is provided that it 

did not reach that target for reasons 

beyond the lessee’s control. 

In order to earn the eight-year 

extended primary term, the lessee is 

required to submit to the BOEM GOM 

Regional Supervisor for Leasing and 

Plans, as soon as practicable, but in no 

instance more than 30 days after 

completion of the drilling operation, a 

letter providing the well number, spud 

date, information demonstrating a target 

below 25,000 feet TVDSS and whether 

that target was reached, and if 

applicable, any safety, mechanical, or 

other problems encountered that 

prevented the well from reaching a 

depth below 25,000 feet TVDSS. This 

letter must request confirmation that the 

lessee earned the eight-year primary 

term. The BOEM GOM Regional 

Supervisor for Leasing and Plans will 

confirm in writing, within 30 days of 

receiving the lessee’s letter, whether the 

lessee has earned the extended primary 

term and update BOEM records 

accordingly. The extended primary term 

is not effective unless and until the 

lessee receives confirmation from 

BOEM. 

A lessee that has earned the eight-year 

primary term by spudding a well with 

a hydrocarbon target below 25,000 feet 

TVDSS during the standard five-year 

primary term of the lease will not be 

granted a suspension for that same 

period under the regulations at 30 CFR 

250.175 because the lease is not at risk 

of expiring. 

(2) The primary term for a lease in 

water depths ranging from 400 to less 

than 800 meters issued as a result of this 

sale is five years. If the lessee spuds a 

well within the five-year primary term 

of the lease, the lessee will earn an 

additional three years, resulting in an 

eight-year primary term. 

In order to earn the eight-year primary 

term, the lessee is required to submit to 

the BOEM GOM Regional Supervisor for 

Leasing and Plans, as soon as 

practicable, but in no instance more 

than 30 days after spudding a well, a 

letter providing the well number and 

spud date, and requesting confirmation 

that the lessee earned the eight-year 

extended primary term. Within 30 days 

of receipt of the request, the BOEM 

GOM Regional Supervisor for Leasing 

and Plans will provide written 

confirmation of whether the lessee has 

earned the extended primary term and 

update BOEM records accordingly. The 

extended primary term is not effective 

unless and until the lessee receives 

confirmation from BOEM. 

(3) The standard primary term for a 

lease in water depths ranging from 800 

to less than 1,600 meters issued as a 

result of this sale is seven years. If the 

lessee spuds a well within the standard 

seven-year primary term, the lessee will 

earn an additional three years, resulting 

in a ten-year extended primary term. 

In order to earn the ten-year primary 

term, the lessee is required to submit to 

the BOEM GOM Regional Supervisor for 

Leasing and Plans, as soon as 

practicable, but in no instance more 

than 30 days after spudding a well, a 

letter providing the well number and 

spud date, and requesting confirmation 

that the lessee earned the ten-year 

primary term. Within 30 days of receipt 

of the request, the BOEM GOM Regional 

Supervisor for Leasing and Plans will 

provide written confirmation of whether 

the lessee has earned the extended 

primary term and update BOEM records 

accordingly. The extended primary term 

is not effective unless and until the 

lessee receives confirmation from 

BOEM. 

(4) The primary term for a lease in 

water depths 1,600 meters or greater 

issued as a result of this sale will be ten 

years. 

Economic Conditions 

Minimum Bonus Bid Amounts 

• $25.00 per acre or fraction thereof 

for blocks in water depths less than 400 

meters; and 

• $100.00 per acre or fraction thereof 

for blocks in water depths 400 meters or 

deeper. 

BOEM will not accept a bonus bid 

unless it provides for a cash bonus in an 

amount equal to, or exceeding, the 

specified minimum bid of $25.00 per 

acre or fraction thereof for blocks in 

water depths less than 400 meters, and 

$100.00 per acre or fraction thereof for 

blocks in water depths 400 meters or 

deeper. 

Rental Rates 

Annual rental rates are summarized in 

the following table: 

Rental Rates 

RENTAL RATES PER ACRE OR FRACTION THEREOF

Water depth 

(meters) Years 1–5 Years 6, 7, & 8+ 

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

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

400+ .................................................................................................................................................... 11.00 $16.00. 


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Escalating Rental Rates for Leases With 

an Eight-Year Primary Term in Water 

Depths Less Than 400 Meters 

Any lessee with a lease in less than 

400 meters water depth who earns an 

eight-year primary term will pay an 

escalating rental rate as shown above. 

The rental rates after the fifth year for 

blocks in less than 400 meters water 

depth will become fixed and no longer 

escalate, if another well is spudded 

targeting hydrocarbons below 25,000 

feet TVDSS after the fifth year of the 

lease, and BOEM concurs that such a 

well has been spudded. In this case, the 

rental rate will become fixed at the 

rental rate in effect during the lease year 

in which the additional well was 

spudded. Royalty Rate 

Royalty Rate 

• 12.5 percent for leases situated in 

water depths less than 200 meters; and, 

• 18.75 percent for leases situated in 

water depths of 200 meters and deeper. 

Minimum Royalty Rate 

• $7.00 per acre or fraction thereof 

per year for blocks in water depths less 

than 200 meters; and 

• $11.00 per acre or fraction thereof 

per year for blocks in water depths 200 

meters and deeper. 

Royalty Suspension Provisions 

The issuance of leases with Royalty 

Suspension Volumes (RSVs) or other 

forms of royalty relief is authorized 

under existing BOEM regulations at 30 

CFR part 560. The specific details 

relating to eligibility and 

implementation of the various royalty 

relief programs, including those 

involving the use of RSVs, are codified 

in Bureau of Safety and Environmental 

Enforcement (BSEE) regulations at 30 

CFR part 203. 

In this sale, the only royalty relief 

program being offered that involves the 

provision of RSVs relates to the drilling 

of ultra-deep wells in water depths of 

less than 400 meters, as described in the 

following section. 

Royalty Suspension Volumes on Gas 

Production From Ultra-Deep Wells 

Leases issued as a result of this sale 

may be eligible for RSV incentives on 

gas produced from ultra-deep wells 

pursuant to 30 CFR part 203. These 

regulations implement the requirements 

of the Energy Policy Act of 2005 (42 

U.S.C. 13201 et seq.). Under this 

program, wells on leases in less than 

400 meters water depth and completed 

to a drilling depth of 20,000 feet TVDSS 

or deeper receive a RSV of 35 billion 

cubic feet on the production of natural 

gas. This RSV incentive is subject to 

applicable price thresholds set forth in 

the regulations at 30 CFR part 203. 

IV. Lease Stipulations 

Consistent with the Record of 

Decision for the Final Programmatic 

Environmental Impact Statement for the 

2017–2022 Five Year OCS Oil and Gas 

Leasing Program, Stipulation No. 5 

(Topographic Features) and Stipulation 

No. 8 (Live Bottom) will apply to every 

lease sale in the GOM Program Area. 

One or more of the remaining eight 

stipulations listed below may be applied 

to leases issued as a result of this sale. 

The blocks to which particular 

stipulations will apply is identified on 

the map ‘‘Final, Gulf of Mexico Regionwide Oil and Gas Lease Sale 251, 

August 15, 2018, Stipulations and 

Deferred Blocks’’ included in the Final 

NOS package. The detailed text of the 

following stipulations is contained in 

the ‘‘Lease Stipulations’’ section of the 

Final NOS package. 

(1) Military Areas 

(2) Evacuation 

(3) Coordination 

(4) Protected Species 

(5) Topographic Features 

(6) United Nations Convention on the 

Law of the Sea Royalty Payment 

(7) Agreement between the United 

States of America and the United 

Mexican States Concerning 

Transboundary Hydrocarbon 

Reservoirs in the Gulf of Mexico 

(8) Live Bottom 

(9) Blocks South of Baldwin County, 

Alabama 

(10) Restrictions due to Rights-of-Use 

and Easement for Floating 

Production Facilities 

V. Information to Lessees 

Information to Lessees (ITLs) provides 

detailed information on certain issues 

pertaining to specific oil and gas lease 

sales. The detailed text of the ITLs for 

this sale is contained in the 

‘‘Information to Lessees’’ section of the 

Final NOS package and covers the 

following topics: 

(1) Navigation Safety 

(2) Ordnance Disposal Areas 

(3) Existing and Proposed Artificial 

Reefs/Rigs-to-Reefs 

(4) Lightering Zones 

(5) Indicated Hydrocarbons List 

(6) Military Areas 

(7) Bureau of Safety and Environmental 

Enforcement (BSEE) Inspection and 

Enforcement of Certain U.S. Coast 

Guard (USCG) Regulations 

(8) Significant Outer Continental Shelf 

Sediment Resource Areas 

(9) Notice of Arrival on the Outer 

Continental Shelf 

(10) Bidder/Lessee Notice of Obligations 

Related to Criminal/Civil Charges 

and Offenses, Suspension, or 

Debarment; Disqualification Due to 

a Conviction under the Clean Air 

Act or the Clean Water Act 

(11) Protected Species 

(12) Proposed Expansion of the Flower 

Garden Banks National Marine 

Sanctuary 

(13) Communication Towers 

(14) Deepwater Port Applications for 

Offshore Oil and Liquefied Natural 

Gas Facilities 

(15) Ocean Dredged Material Disposal 

Sites 

(16) Rights-of-Use and Easement 

(17) Industrial Waste Disposal Areas 

(18) Gulf Islands National Seashore 

(19) Air Quality Permit/Plan Approvals 

VI. Maps 

The maps pertaining to this lease sale 

may be viewed on BOEM’s website at 

http://www.boem.gov/Sale-251/. The 

following maps also are included in the 

Final NOS package: 

Lease Terms and Economic Conditions 

Map 

The lease terms and economic 

conditions associated with leases of 

certain blocks are shown on the map 

entitled, ‘‘Final, Gulf of Mexico Regionwide Oil and Gas Lease Sale 251, 

August 15, 2018, Lease Terms and 

Economic Conditions.’’ 

Stipulations and Deferred Blocks Map 

The lease stipulations and the blocks 

to which they apply are shown on the 

map entitled, ‘‘Final, Gulf of Mexico 

Region-wide Oil and Gas Lease Sale 

251, August 15, 2018, Stipulations and 

Deferred Blocks Map.’’ 

VII. Bidding Instructions 

Bids may be submitted in person or 

by mail at the address below in the 

‘‘Mailed Bids’’ section. Bidders 

submitting their bid(s) in person are 

advised to email boemgomrleasesales@

boem.gov to provide the names of the 

company representative(s) that will 

submit the bid(s). Instructions on how 

to submit a bid, secure payment of the 

advance bonus bid deposit (if 

applicable), and what information must 

be included with the bid are as follows: 

Bid Form 

For each block bid upon, a separate 

sealed bid must be submitted in a sealed 

envelope (as described below) and 

include the following: 

• Total amount of the bid in whole 

dollars only; 

• Sale number; 

• Sale date; 


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• Each bidder’s exact name; 

• Each bidder’s proportionate 

interest, stated as a percentage, using a 

maximum of five decimal places (e.g., 

33.33333%); 

• Typed name and title, and signature 

of each bidder’s authorized officer; 

• Each bidder’s qualification number; 

• Map name and number or Official 

Protraction Diagram (OPD) name and 

number; 

• Block number; and 

• Statement acknowledging that the 

bidder(s) understand that this bid 

legally binds the bidder(s) to comply 

with all applicable regulations, 

including those requiring it to post a 

deposit in the amount of one-fifth of the 

bonus bid amount for any tract bid upon 

and make payment of the balance of the 

bonus bid and first year’s rental upon 

BOEM’s acceptance of high bids. 

The information required to 

accompany the bid(s) is specified in the 

document ‘‘Bid Form’’ that is available 

in the Final NOS package. A blank bid 

form is provided in the Final NOS 

package for convenience and may be 

copied and completed with the 

necessary information described above. 

Bid Envelope 

Each bid must be submitted in a 

separate sealed envelope labeled as 

follows: 

• ‘‘Sealed Bid for GOM Region-wide 

Sale 251, not to be opened until 9 a.m. 

Wednesday, August 15, 2018;’’ 

• Map name and number or OPD 

name and number; 

• Block number for block bid upon; 

and 

• The exact name and qualification 

number of the submitting bidder only. 

The Final NOS package includes a 

sample bid envelope for reference. 

Mailed Bids 

If bids are mailed, please address the 

envelope containing the sealed bid 

envelope(s) as follows: Attention: 

Leasing and Financial Responsibility 

Section, BOEM Gulf of Mexico OCS 

Region, 1201 Elmwood Park Boulevard 

GM 266A, New Orleans, Louisiana 

70123–2394. Contains Sealed Bids for 

GOM Region-wide Sale 251. Please 

Deliver to Mr. Greg Purvis, 2nd Floor, 

Immediately. 

Please Note: Bidders mailing bid(s) 

are advised to inform BOEM by email to 

boemgomrleasesales@boem.gov 

immediately after putting their bid(s) in 

the mail. This is to ensure receipt of 

bids prior to the Bid Submission 

Deadline. If BOEM receives bids later 

than the Bid Submission Deadline, the 

BOEM GOM Regional Director (RD) will 

return those bids unopened to bidders. 

Please see ‘‘Section XI. Delay of Sale’’ 

regarding BOEM’s discretion to extend 

the Bid Submission Deadline in the case 

of an unexpected event (e.g., flooding or 

travel restrictions) and how bidders can 

obtain more information on such 

extensions. 

Advance Bonus Bid Deposit Guarantee 

Bidders that are not currently an OCS 

oil and gas lease record title holder or 

designated operator, or those that ever 

have defaulted on a one-fifth bonus bid 

deposit, by Electronic Funds Transfer 

(EFT) or otherwise, must guarantee 

(secure) the payment of the one-fifth 

bonus bid deposit prior to bid 

submission using one of the following 

four methods: 

• Provide a third-party guarantee; 

• Amend an area-wide development 

bond via bond rider; 

• Provide a letter of credit; or 

• Provide a lump sum payment in 

advance via EFT. 

For more information on EFT 

procedures, see Section X of this 

document entitled, ‘‘The Lease Sale.’’ 

Please allow sufficient time for your 

EFT payment to process so that it can 

be confirmed prior to your bid 

submission. 

Affirmative Action 

Prior to bidding, each bidder should 

file the Equal Opportunity Affirmative 

Action Representation Form BOEM– 

2032 (October 2011, https://

www.boem.gov/BOEM-2032/) and Equal 

Opportunity Compliance Report 

Certification Form BOEM–2033 

(October 2011, https://www.boem.gov/ 

BOEM-2033/) with the BOEM GOM 

Adjudication Section, Attention: BOEM 

Gulf of Mexico OCS Region, 1201 

Elmwood Park Boulevard, GM 276A, 

New Orleans, Louisiana 70123–2394. 

This certification is required by 41 CFR 

part 60 and Executive Order No. 11246, 

issued September 24, 1965, as amended 

by Executive Order No. 11375, issued 

October 13, 1967, and by Executive 

Order 13672, issued July 21, 2014. Both 

forms must be on file for the bidder(s) 

in the GOM Adjudication Section prior 

to the execution of any lease contract. 

Geophysical Data and Information 

Statement (GDIS) 

The GDIS is composed of three parts: 

(1) The ‘‘Statement’’ page includes the 

company representatives’ information 

and lists of blocks bid on that used 

proprietary data and those blocks bid on 

that did not use proprietary data; 

(2) The ‘‘Table’’ listing the required 

data about each proprietary survey used 

(see below); and 

(3) The ‘‘Maps’’ being the live trace 

maps for each proprietary survey that is 

identified in the GDIS statement and 

table. 

Every bidder, including joint bidders, 

must provide all applicable parts of the 

GDIS at the time of bid submission. If 

the data you are using has been 

reprocessed in any way, externally or 

‘‘in-house,’’ it is considered proprietary 

data and is no longer considered 

speculative. All three parts of the GDIS 

must be submitted for proprietary data. 

The GDIS must be submitted in a 

separate and sealed envelope, and must 

identify all proprietary data, which 

includes reprocessed speculative data, 

and/or any Controlled Source 

Electromagnetic surveys, Amplitude 

Versus Offset (AVO), Gravity, or 

Magnetic data; or other information 

used as part of the decision to bid or 

participate in a bid on the block. The 

bidder and joint bidder must also 

include a live trace map (e.g., .pdf and 

ArcGIS shape file) for each proprietary 

survey that they identify in the GDIS 

illustrating the actual areal extent of the 

proprietary geophysical data in the 

survey (see the ‘‘Example of Preferred 

Format’’ that is included the Final NOS 

package for additional information). The 

shape file must not include cultural 

information; only the live trace map of 

the survey itself. 

The GDIS statement must include the 

name, phone number, and full address 

of a contact person and an alternate who 

are both knowledgeable about the 

geophysical information and data listed 

and who are available for 30 days after 

the sale date. The GDIS statement also 

must include a list of all blocks bid 

upon that did not use proprietary or 

reprocessed pre- or post-stack 

geophysical data and information as 

part of the decision to bid or to 

participate as a joint bidder in the bid. 

The GDIS statement must be submitted 

even if no proprietary geophysical data 

and information were used in bid 

preparation for the block. 

The GDIS table should have columns 

that clearly state: 

• The sale number; 

• The bidder company’s name; 

• The Joint Bidder Company (if 

applicable); 

• The block area and block number 

bid on; 

• The owner of the original data set 

(i.e., who initially acquired the data); 

• The industry’s original name of the 

survey (e.g., E Octopus); 

• The BOEM permit number for the 

survey; 

• Whether the data set is a fast track 

version; 


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• Whether the data is speculative or 

proprietary; 

• The data type (e.g., 2–D, 3–D, or 

4–D; pre-stack or post-stack; and time or 

depth, etc.); 

• The Migration algorithm (e.g., 

Kirchhoff Migration, Wave Equation 

Migration, Reverse Migration, Reverse 

Time Migration) of the data and areal 

extent of bidder survey (i.e., number of 

line miles for 2–D or number of blocks 

for 3–D); 

• The Live Proprietary Survey 

Coverage (2–D miles 3–D Blocks); 

• The computer storage size, to the 

nearest gigabyte, of each seismic data 

and velocity volume used to evaluate 

the lease block; 

• The name of the party that 

reprocessed the data and the date the 

final reprocessing was completed 

(month and year); 

• If data was previously sent to 

BOEM, list the sale number and date of 

the sale for which it was used; and 

• Whether proprietary or Speculative 

AVO/AVA (PROP/SPEC) was used. 

The computer storage size 

information will be used in estimating 

the reproduction costs for each data set, 

if applicable. The availability of 

reimbursement of production costs will 

be determined consistent with 30 CFR 

551.13. 

BOEM reserves the right to query 

about alternate data sets, to quality 

check, and to compare the listed and 

alternative data sets to determine which 

data set most closely meets the needs of 

the fair market value determination 

process. For an example of the preferred 

format of the table, see ‘‘Example of 

Preferred Format’’ that is included in 

the Final NOS package. A blank digital 

version of the preferred table can be 

accessed on the GOM Region-wide Sale 

251 web page at http://www.boem.gov/ 

Sale-251. 

The GDIS maps are live trace maps 

(e.g., .pdf and ArcGIS shape files) that 

should be submitted for each 

proprietary survey that is identified in 

the GDIS table. They should illustrate 

the actual areal extent of the proprietary 

geophysical data in the survey. See the 

‘‘Example of Preferred Format’’ that is 

included in the Final NOS package for 

additional information. As previously 

stated, the shape file must not include 

cultural information; only the live trace 

map of the survey itself. 

Pursuant to 30 CFR 551.12 and 30 

CFR 556.501, as a condition of the sale, 

the BOEM Gulf of Mexico requires that 

all bidders and joint bidders submit the 

proprietary data identified on their 

GDIS within 30 days after the lease sale 

(unless they are notified after the lease 

sale that BOEM has withdrawn the 

request). This requirement only pertains 

to proprietary data that is not 

commercially available. Commercially 

available data is not required to be 

submitted to BOEM, and reimbursement 

will not be provided if such data is 

submitted by a bidder. The BOEM Gulf 

of Mexico Regional Director will notify 

bidders and joint bidders of any 

withdrawal of the request, for all or 

some of the proprietary data identified 

on the GDIS, within 15 days of the lease 

sale. Pursuant to 30 CFR part 551 and 

30 CFR 556.501, as a condition of this 

sale, all bidders that are required to 

submit data must ensure that the data is 

received by BOEM no later than the 

30th day following the lease sale, or the 

next business day if the submission 

deadline falls on a weekend or Federal 

holiday. 

The data must be submitted to BOEM 

at the following address: Bureau of 

Ocean Energy Management, Resource 

Studies, GM 881A, 1201 Elmwood Park 

Blvd., New Orleans, LA 70123–2304. 

BOEM recommends that bidders mark 

the submission’s external envelope as 

‘‘Deliver Immediately to DASPU.’’ 

BOEM also recommends that the data be 

submitted in an internal envelope, or 

otherwise marked, with the following 

designation: ‘‘Proprietary Geophysical 

Data Submitted Pursuant to GOM 

Region-wide Sale 251 and used during 

<Bidder Name’s> evaluation of Block 

<Block Number>.’’ 

In the event a person supplies any 

type of data to BOEM, that person must 

meet the following requirements to 

qualify for reimbursement: 

(1) The person must be registered 

with the System for Award Management 

(SAM), formerly known as the Central 

Contractor Registration (CCR). CCR 

usernames will not work in SAM. A 

new SAM User Account is needed to 

register or update an entity’s records. 

The website for registering is https://

www.sam.gov. 

(2) The persons must be enrolled in 

the Department of Treasury’s Invoice 

Processing Platform (IPP) for electronic 

invoicing. The person must enroll in the 

IPP at https://www.ipp.gov/. Access 

then will be granted to use the IPP for 

submitting requests for payment. When 

a request for payment is submitted, it 

must include the assigned Purchase 

Order Number on the request. 

(3) The persons must have a current 

Online Representations and 

Certifications Application (ORCA) at 

https://www.sam.gov. 

Please Note: The GDIS Information 

Table must be submitted digitally, 

preferably as an Excel spreadsheet, on a 

CD, DVD, or any USB external drive 

(formatted for Windows), along with the 

seismic data map(s). If bidders have any 

questions, please contact Ms. Dee Smith 

at (504) 736–2706, or Mr. John Johnson 

at (504) 736–2455. 

Bidders should refer to Section X of 

this document, ‘‘The Lease Sale: 

Acceptance, Rejection, or Return of 

Bids,’’ regarding a bidder’s failure to 

comply with the requirements of the 

Final NOS, including any failure to 

submit information as required in the 

Final NOS or Final NOS package. 

Telephone Numbers/Addresses of 

Bidders 

BOEM requests that bidders provide 

this information in the suggested format 

prior to, or at the time of, bid 

submission. The suggested format is 

included in the Final NOS package. The 

form must not be enclosed inside the 

sealed bid envelope. 

Additional Documentation 

BOEM may require bidders to submit 

other documents in accordance with 30 

CFR 556.107, 30 CFR 556.401, 30 CFR 

556.501, and 30 CFR 556.513. 

VIII. Bidding Rules and Restrictions 

Restricted Joint Bidders 

On May 15, 2018, BOEM published 

the most recent List of Restricted Joint 

Bidders in the Federal Register at 83 FR 

22513. Potential bidders are advised to 

refer to the Federal Register, prior to 

bidding, for the most current List of 

Restricted Joint Bidders in place at the 

time of the lease sale. Please refer to the 

joint bidding provisions at 30 CFR 

556.511–515. 

Authorized Signatures 

All signatories executing documents 

on behalf of bidder(s) must execute the 

same in conformance with the BOEM 

qualification records. Bidders are 

advised that BOEM considers the signed 

bid to be a legally binding obligation on 

the part of the bidder(s) to comply with 

all applicable regulations, including that 

requiring payment of one-fifth of the 

bonus bid on all high bids. A statement 

to this effect is included on each bid 

form (see the document ‘‘Bid Form’’ that 

is included in the Final NOS package). 

Unlawful Combination or Intimidation 

BOEM warns bidders against violation 

of 18 U.S.C. 1860, prohibiting unlawful 

combination or intimidation of bidders. 

Bid Withdrawal 

Bids may be withdrawn only by 

written request delivered to BOEM prior 

to the Bid Submission Deadline. The 

withdrawal request must be on 

company letterhead and must contain 

the bidder’s name, its BOEM 


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qualification number, the map name/ 

number, and the block number(s) of the 

bid(s) to be withdrawn. The withdrawal 

request must be executed in 

conformance with the BOEM 

qualification records. The name and 

title of the authorized signatory must be 

typed under the signature block on the 

withdrawal request. The BOEM Gulf of 

Mexico RD, or the RD’s designee, will 

indicate their approval by signing and 

dating the withdrawal request. 

Bid Rounding 

Minimum bonus bid calculations, 

including rounding, for all blocks are 

shown in the document ‘‘List of Blocks 

Available for Leasing’’ included in the 

Final NOS package. The bonus bid 

amount must be stated in whole dollars. 

If the acreage of a block contains a 

decimal figure, then prior to calculating 

the minimum bonus bid, BOEM 

rounded up to the next whole acre. The 

appropriate minimum rate per acre was 

then applied to the whole (rounded up) 

acreage. The bonus bid amount must be 

greater than or equal to the minimum 

bonus bid in whole dollars. 

IX. Forms 

The Final NOS package includes 

instructions, samples, and/or the 

preferred format for the following items. 

BOEM strongly encourages bidders to 

use the recommended formats. If 

bidders use another format, they are 

responsible for including all the 

information specified for each item in 

the Final NOS package. 

(1) Bid Form 

(2) Sample Completed Bid 

(3) Sample Bid Envelope 

(4) Sample Bid Mailing Envelope 

(5) Telephone Numbers/Addresses of 

Bidders Form 

(6) GDIS Form 

(7) GDIS Envelope Form 

X. The Lease Sale 

Bid Opening and Reading 

Sealed bids received in response to 

the Final NOS will be opened at the 

place, date, and hour specified under 

the DATES and ADDRESSES sections of the 

Final NOS. The venue will not be open 

to the public. Instead, the bid opening 

will be available for the public to view 

on BOEM’s website at www.boem.gov 

via live-streaming. The opening of the 

bids is for the sole purpose of publicly 

announcing and recording the bids 

received; no bids will be accepted or 

rejected at that time. 

Bonus Bid Deposit for Apparent High 

Bids 

Each bidder submitting an apparent 

high bid must submit a bonus bid 

deposit to the Office of Natural 

Resources Revenue (ONRR) equal to 

one-fifth of the bonus bid amount for 

each such bid. A copy of the notification 

of the high bidder’s one-fifth bonus bid 

amount may be obtained on the BOEM 

website at http://www.boem.gov/Sale251 under the heading ‘‘Notification of 

EFT 1/5 Bonus Liability’’ after 1:00 p.m. 

on the day of the sale. All payments 

must be deposited electronically into an 

interest-bearing account in the U.S. 

Treasury by 11:00 a.m. Eastern Time (10 

a.m. Central Time) the day following the 

bid reading (no exceptions). Account 

information is provided in the 

‘‘Instructions for Making Electronic 

Funds Transfer Bonus Payments’’ found 

on the BOEM website identified above. 

BOEM requires bidders to use EFT 

procedures for payment of one-fifth 

bonus bid deposits for GOM Regionwide Sale 251 following the detailed 

instructions contained on the ONRR 

Payment Information web page at http:// 

www.onrr.gov/ReportPay/ 

Payments.htm. Acceptance of a deposit 

does not constitute, and will not be 

construed as, acceptance of any bid on 

behalf of the United States. 

Withdrawal of Blocks 

The United States reserves the right to 

withdraw any block from this lease sale 

prior to issuance of a written acceptance 

of a bid for the block. 

Acceptance, Rejection, or Return of Bids 

The United States reserves the right to 

reject any and all bids. No bid will be 

accepted, and no lease for any block 

will be awarded to any bidder, unless: 

(1) The bidder has complied with all 

requirements of the Final NOS, 

including those set forth in the 

documents contained in the Final NOS 

package, and applicable regulations; 

(2) The bid is the highest valid bid; 

and 

(3) The amount of the bid has been 

determined to be adequate by the 

authorized officer. 

Any bid submitted that does not 

conform to the requirements of the Final 

NOS and Final NOS package, OCSLA, 

or other applicable statute or regulation 

will be rejected and returned to the 

bidder. The U.S. Department of Justice 

and the Federal Trade Commission will 

review the results of the lease sale for 

antitrust issues prior to the acceptance 

of bids and issuance of leases. 

Bid Adequacy Review Procedures for 

GOM Region-Wide Sale 251 

To ensure that the U.S. Government 

receives a fair return for the conveyance 

of leases from this sale, high bids will 

be evaluated in accordance with 

BOEM’s bid adequacy procedures, 

which are available at http://

www.boem.gov/Oil-and-Gas-EnergyProgram/Leasing/Regional-Leasing/ 

Gulf-of-Mexico-Region/Bid-AdequacyProcedures.aspx. 

Lease Award 

BOEM requires each bidder awarded 

a lease to: 

(1) Execute all copies of the lease 

(Form BOEM–2005 (February 2017), as 

amended); 

(2) 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 556.520(a); and 

(3) Provide to BOEM the bonding 

required by 30 CFR part 556, subpart I. 

ONRR requests that bidders use only 

one transaction to pay the balance of the 

bonus bid amount and the first year’s 

rental. When ONRR receives such 

payment, the bidder awarded the lease 

may not request a refund of the balance 

bonus bid amount or first year’s rental 

payment. 

XI. Delay of Sale 

The BOEM Gulf of Mexico RD has the 

discretion to change any date, time, 

and/or location specified in the Final 

NOS package in the case of an event that 

the BOEM Gulf of Mexico RD deems 

may interfere with the carrying out of a 

fair and orderly lease sale process. Such 

events could include, but are not 

limited to, natural disasters (e.g., 

earthquakes, hurricanes, and floods), 

wars, riots, acts of terrorism, fires, 

strikes, civil disorder, or other events of 

a similar nature. In case of such events, 

bidders should call (504) 736–0557, or 

access the BOEM website at http://

www.boem.gov, for information 

regarding any changes. 

Dated: July 11, 2018. 

Walter D. Cruickshank, 

Acting Director, Bureau of Ocean Energy 

Management. 

[FR Doc. 2018–15180 Filed 7–13–18; 8:45 am] 

BILLING CODE 4310–MR–P 

DEPARTMENT OF THE INTERIOR 

Bureau of Ocean Energy Management 

[Docket No. BOEM–2018–0035] 

Gulf of Mexico, Outer Continental Shelf 

(OCS), Oil and Gas Lease Sale 251 

AGENCY: Bureau of Ocean Energy 

Management, Interior. 

ACTION: Notice of availability of a 

Record of Decision. 


sradovich on DSK3GMQ082PROD with NOTICES