Federal Register / Vol. 77, No. 232 / Monday, December 3, 2012 / Notices 71621 

designed to prevent anticompetitive 

behavior in the marketplace. 

Compliance with the BOEM’s auction 

procedures will not insulate a party 

from enforcement of the antitrust laws. 

In accordance with the Act at 43 

U.S.C. 1337(c), following the auction, 

and before the acceptance of bids and 

the issuance of leases, BOEM will 

‘‘allow the Attorney General, in 

consultation with the Federal Trade 

Commission, thirty days to review the 

results of the lease sale.’’ 

If a bidder is found to have engaged 

in anti-competitive behavior or 

otherwise violated BOEM’s rules in 

connection with its participation in the 

competitive bidding process, BOEM 

may reject the high bid pursuant to its 

regulations at 30 CFR 585.222(a)(2). 

Anti-competitive behavior 

determinations are fact specific. 

However, such behavior may manifest 

itself in several different ways, 

including, but not limited to: 

• An agreement, either express or 

tacit, among bidders to not bid in an 

auction, or to bid a particular price; 

• An agreement among bidders not to 

bid in a particular location; 

• An agreement among bidders not to 

bid against each other; and 

• Other agreements among bidders 

that have the effect of limiting the final 

auction price. 

BOEM may decline to award a lease if 

doing so would otherwise create a 

situation inconsistent with the antitrust 

laws (e.g., heavily concentrated market, 

etc.). 

For more information on whether 

specific communications or agreements 

could constitute a violation of Federal 

antitrust law, please see: http:// 

www.justice.gov/atr/public/businessresources.html, or consult counsel. 

Post-Auction Certification: In addition 

to the steps described in the section 

entitled, ‘‘Process for Issuing the Lease,’’ 

following the lease sale, each winning 

bidder will be required to certify the 

following, in accordance with 18 U.S.C. 

1001 (Fraud and False Statements): 

I certify that [name of qualified bidder] did 

not engage in anticompetitive bidding 

behavior in violation of Federal law, BOEM’s 

regulations, or auction procedures. 

I certify that this bid is made in a good 

faith effort to win a lease to engage in the 

development of renewable energy resources. 

Non-Procurement Debarment and 

Suspension Regulations: Pursuant to 

regulations at 43 CFR Part 42, Subpart 

C, an OCS renewable energy Lessee 

must comply with the U.S. Department 

of the Interior’s non-procurement 

debarment and suspension regulations 

at 2 CFR parts 180 and 1400 and agree 

to communicate the requirement to 

comply with these regulations to 

persons with whom the Lessee does 

business as it relates to this lease, by 

including this term as a condition in 

their contracts and other transactions. 

Final Sale Notice: BOEM will 

consider comments received or 

postmarked during the PSN comment 

period in preparing a FSN that will 

provide the final details concerning the 

offering and issuance of an OCS 

commercial wind energy lease in the 

Rhode Island and Massachusetts WEA. 

The FSN will be published in the 

Federal Register at least 30 days before 

the lease sale is conducted and will 

provide the date and time of the 

auction. The possibility also exists that 

there could be a second PSN, with 

another 60-day public comment period, 

prior to issuance of the FSN. 

Force Majeure: The Program Manager 

of BOEM’s Office of Renewable Energy 

Programs has the discretion to change 

any date, time, and/or location specified 

in the FSN in case of a force majeure 

event that the Program Manager deems 

may interfere with a fair and proper 

lease sale process. Such events may 

include, but are not limited to, natural 

disasters (e.g., earthquakes, hurricanes, 

floods), wars, riots, acts of terrorism, 

fire, strikes, civil disorder or other 

events of a similar nature. In case of 

such events, bidders should call 703– 

787–1300 or access the BOEM Web site 

at: http://www.boem.gov/RenewableEnergy-Program/index.aspx. 

Appeals: The appeals procedures are 

provided in BOEM’s regulations at 30 

CFR 585.225 and 585.118(c). Pursuant 

to 30 CFR 585.225: 

(a) If BOEM rejects your bid, BOEM 

will provide a written statement of the 

reasons, and refund any money 

deposited with your bid, without 

interest. 

(b) You will then be able to ask the 

BOEM Director for reconsideration, in 

writing, within 15 business days of bid 

rejection, under 30 CFR 585.118(c)(1). 

We will send you a written response 

either affirming or reversing the 

rejection. 

The procedures for appealing adverse 

final decisions with respect to lease 

sales are described in 30 CFR 

585.118(c). 

Protection of Privileged or 

Confidential Information: 

Freedom of Information Act: BOEM 

will protect privileged or confidential 

information that you submit as required 

by 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, subject to the 

requirements of FOIA. Please label 

privileged or confidential information 

‘‘Contains Confidential Information’’ 

and consider submitting such 

information as a separate attachment. 

However, BOEM will not treat as 

confidential any aggregate summaries of 

such information or comments not 

containing such information. 

Additionally, BOEM may not treat as 

confidential the legal title of the 

commenting entity (e.g., the name of 

your company). Information that is not 

labeled as privileged or confidential will 

be regarded by BOEM as suitable for 

public release. 

Section 304 of the National Historic 

Preservation Act (16 U.S.C. 470w–3(a)): 

BOEM is required, after consultation 

with the Secretary of the Interior, to 

withhold the location, character, or 

ownership of historic resources if it 

determines that disclosure may, among 

other things, cause a significant 

invasion of privacy, risk harm to the 

historic resources or impede the use of 

a traditional religious site by 

practitioners. Tribal entities and other 

interested parties should designate 

information that they wish to be held as 

confidential. 

Dated: November 27, 2012. 

Tommy P. Beaudreau, 

Director, Bureau of Ocean Energy 

Management. 

[FR Doc. 2012–29096 Filed 11–30–12; 8:45 am] 

BILLING CODE 4310–MR–P 

DEPARTMENT OF THE INTERIOR 

Bureau of Ocean Energy Management 

[Docket No. BOEM–2012–0033] 

Atlantic Wind One (ATLW1) 

Commercial Leasing for Wind Power 

on the Outer Continental Shelf 

Offshore Virginia—Proposed Sale 

Notice 

AGENCY: Bureau of Ocean Energy 

Management (BOEM), Interior. 

ACTION: Proposed Sale Notice for 

Commercial Leasing for Wind Power on 

the Outer Continental Shelf Offshore 

Virginia. 

SUMMARY: This document is the 

Proposed Sale Notice (PSN) for the sale 

of a commercial renewable energy lease 

on the Outer Continental Shelf (OCS) 

offshore Virginia, pursuant to BOEM’s 

regulations at 30 CFR 585.216. BOEM 

will auction the area described in the 


emcdonald on DSK67QTVN1PROD with NOTICES
71622 Federal Register / Vol. 77, No. 232 / Monday, December 3, 2012 / Notices 

Call for Information and Nominations 

(77 FR 5545) as a single lease using an 

ascending clock auction. In this PSN, 

you will find information pertaining to 

the area available for leasing, proposed 

lease provisions and conditions, auction 

details, the lease form, criteria for 

evaluating competing bids, award 

procedures, appeal procedures, and 

lease execution. BOEM invites 

comments during a 60-day comment 

period following this notice. 

DATES: Comments should be submitted 

electronically or postmarked no later 

than February 1, 2013. All comments 

received or postmarked during the 

comment period will be made available 

to the public and considered prior to 

publication of the Final Sale Notice 

(FSN). 

The end of the comment period is also 

the deadline for the submission of 

qualification materials. All bidders 

interested in participating in the lease 

sale must have submitted all such 

qualification materials by the end of the 

60-day comment period for this notice. 

All qualification materials must be 

postmarked no later than February 1, 

2013. 

ADDRESSES: Potential auction 

participants, Federal, state, and local 

government agencies, tribal 

governments, and other interested 

parties are requested to submit their 

written comments on the PSN in one of 

the following ways: 

1. Electronically: http:// 

www.regulations.gov. In the entry titled 

‘‘Enter Keyword or ID,’’ enter BOEM– 

2012–0033 then click ‘‘search.’’ Follow 

the instructions to submit public 

comments. 

2. Written Comments: In written form, 

delivered by hand or by mail, enclosed 

in an envelope labeled ‘‘Comments on 

Virginia PSN’’ to: Office of Renewable 

Energy Programs, Bureau of Ocean 

Energy Management, 381 Elden Street, 

HM 1328, Herndon, Virginia 20170. 

3. Qualifications Materials: Those 

submitting qualifications packages 

should contact Erin Trager, BOEM 

Office of Renewable Energy Programs, 

381 Elden Street, HM 1328, Herndon, 

Virginia 20170, (703) 787–1320, or 

erin.trager@boem.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 

with the caption, ‘‘Contains 

Confidential Information’’ and consider 

submitting such information as a 

separate attachment. Treatment of 

confidential information is addressed in 

the section of this PSN 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: Erin 

Trager, BOEM Office of Renewable 

Energy Programs, 381 Elden Street, HM 

1328, Herndon, Virginia 20170, (703) 

787–1320 or erin.trager@boem.gov. 

Authority: This PSN is published 

pursuant to subsection 8(p) of the OCS Lands 

Act (43 U.S.C. 1337(p)) (‘‘the Act’’), as 

amended by section 388 of the Energy Policy 

Act of 2005 (EPAct), and the implementing 

regulations at 30 CFR Part 585, including 30 

CFR 585.211 & 585.216. 

Background: The proposed lease area 

is the same as the area described in the 

Virginia Call for Information and 

Nominations (Call), which was 

published in the Federal Register on 

February 3, 2012. Additional 

information about the proposed lease 

area is provided in the Call (77 FR 

5545). 

On February 3, 2012, BOEM 

published the Notice of Availability 

(NOA) (77 FR 5560) for the final 

Environmental Assessment (EA) and 

Finding of No Significant Impact 

(FONSI) for commercial wind lease 

issuance and site assessment activities 

on the Atlantic OCS offshore New 

Jersey, Delaware, Maryland, and 

Virginia. Consultations ran concurrently 

with the preparation of the EA and 

included consultation under the 

Endangered Species Act (ESA), 

Magnuson-Stevens Fishery 

Conservation and Management Act 

(MSFCMA), section 106 of the National 

Historic Preservation Act (NHPA), and 

the Coastal Zone Management Act 

(CZMA). The Commercial Wind Lease 

Issuance and Site Characterization 

Activities on the Atlantic Outer 

Continental Shelf Offshore New Jersey, 

Delaware, Maryland, and Virginia 

Environmental Assessment (Regional 

EA) can be found at: http:// 

www.boem.gov/Renewable-EnergyProgram/Smart-from-the-Start/ 

Index.aspx. 

The proposed lease area identified in 

this PSN matches the Virginia Wind 

Energy Area (WEA) described in the 

preferred alternative in the Regional EA. 

Additional environmental 

documentation will be prepared upon 

receipt of plans, such as a Site 

Assessment Plan (SAP) or Construction 

and Operations Plan (COP). 

Potential bidders should be aware of 

two unsolicited nominations under 

consideration by BOEM, situated within 

or near the Virginia WEA. Additional 

information is provided below. 

Atlantic Grid Holdings LLC (ROW) 

Grant Request: On March 31, 2011, 

Atlantic Grid Holdings LLC submitted 

an unsolicited application for a ROW 

grant. Following publication of a notice 

to determine competitive interest in the 

grant area and a 60-day public comment 

period, BOEM published its 

determination of no competitive interest 

on May 15, 2012 (77 FR 28620). The 

nomination and associated notices can 

be found at: http://www.boem.gov/ 

Renewable-Energy-Program/StateActivities/Regional-Proposals.aspx. 

Virginia Department of Mines, 

Minerals, and Energy (DMME) Research 

Lease Request: On June 1, 2012, the 

Commonwealth of Virginia (DMME) 

submitted an unsolicited nomination for 

a research lease under 30 CFR 585.238 

for the siting of two meteorological 

ocean and environmental monitoring 

platforms. The nomination can be found 

at: http://www.boem.gov/RenewableEnergy-Program/State-Activities/ 

Virginia.aspx. 

Financial Terms and Conditions: This 

section provides an overview of the 

basic annual payments required of the 

Lessee that will be fully described in the 

lease. 

Rent: The first year’s rent payment for 

the entire leased area is due within 45 

calendar days of the date the winning 

bidder receives the lease for execution. 

Thereafter, annual rent payments are 

due on the anniversary of the lease 

Effective Date until commercial 

operations on the lease commence, i.e., 

when the generation of electricity 

begins. The annual rental rate will be 

$3.00 per acre applicable to the entire 

leased area. For example, for a lease the 

size of 112,799 acres, the amount of rent 

payment will be $338,397 per year. The 

Lessee also must pay rent for any project 

easement associated with the lease 

commencing on the date that BOEM 

approves the COP (or modification) 

describing the project easement. Annual 

rent for a project easement, 200-feet 

wide and centered on the transmission 

cable, is $70.00 per statute mile. For any 

additional acreage required, the Lessee 

must also pay the greater of $5.00 per 

acre per year or $450.00 per year. 

Operating Fee: The initial annual 

operating fee is prorated and due within 

45 calendar days after the 

commencement of commercial 

operations on the lease, and subsequent 

payments are due on or before each 

Lease Anniversary annually thereafter. 

The annual operating fee payment is 

calculated by multiplying an operating 

fee rate by the imputed wholesale 

market value of the projected electric 

power production. For the purposes of 

this calculation, the imputed market 


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Federal Register / Vol. 77, No. 232 / Monday, December 3, 2012 / Notices 71623 

value is the product of the project’s 

annual nameplate capacity, the total 

number of hours in the year (8,760), an 

annual capacity factor, and an 

historical, annual average regional 

wholesale power price index. 

Operating Fee Rate: The operating fee 

rate is 0.02 through the 8th year of 

commercial operations on the lease. 

Starting in the 9th year of commercial 

operations, the operating fee rate is 0.04 

through the remaining term of the lease. 

Nameplate Capacity: The nameplate 

capacity at the start of each year of 

commercial operations on the lease as 

specified in the COP will be used to 

accommodate installation schedules or 

repowering. 

Capacity Factor: The capacity factor 

for the first eight full years of 

commercial operations on the lease is 

set to 0.4 to allow for three years of 

installation and testing followed by five 

years at full availability. At the end of 

the 8th full year, the capacity factor will 

be adjusted to reflect the performance 

over the previous five years based upon 

the actual metered electricity generation 

at the delivery point to the electrical 

grid. Similar adjustments to the capacity 

factor will be made once every five 

years thereafter. The maximum change 

in the capacity factor from one period to 

the next will be limited to plus or minus 

10 percent of the previous period’s 

value. 

Wholesale Power Price Index: The 

price is determined at the time each 

annual operating fee payment is due, 

based on the weighted average of the 

inflation-adjusted peak and off-peak 

spot price indices for the Northeast— 

PJM West power market for the most 

recent year of data available as reported 

by the Federal Energy Regulatory 

Commission (FERC) as part of its annual 

State of the Markets Report with 

specific reference to the summary 

entitled ‘‘Electric Market Overview: 

Regional Spot Prices.’’ 

Financial Assurance: BOEM will base 

the amounts of all SAP, COP, and 

decommissioning financial assurance 

requirements on estimates of the cost to 

meet all accrued lease obligations. The 

amount of supplemental and 

decommissioning financial assurance 

requirements is determined on a caseby-case basis. The amount of financial 

assurance required to meet all lease 

obligations includes: 

• The projected amount of rent and 

other payments due to the Government 

over the next 12 months; 

• Any past due rent and other 

payments; 

• Other monetary obligations (e.g., 

fines, liens); and 

• The estimated cost of facility 

decommissioning. 

Prior to lease issuance the Lessee 

must provide: (1) An initial leasespecific bond or other approved means 

of meeting the Lessor’s initial financial 

assurance requirements in the amount 

of $100,000; and (2) a supplemental 

bond or other approved means of 

meeting the Lessor’s supplemental 

financial assurance requirements in the 

amount of $338,397 to guarantee lease 

obligations from rental payments due to 

the Government over the first 12 months 

of the lease. Additional financial 

assurances will be required to address 

decommissioning, operating fee, and 

other obligations as the lease progresses. 

The financial terms can be found in 

Addendum ‘‘B’’ of the proposed lease, 

which BOEM has made available with 

this notice on its Web site at: http:// 

boem.gov/Renewable-Energy-Program/ 

State-Activities/Virginia.aspx. 

Place and Time: The auction will be 

held online. The time that the auction 

will be held will be published in the 

FSN. The date has not been finalized at 

this time, but will be no earlier than 30 

days after publication of the FSN in the 

Federal Register. 

Public Seminar: BOEM will host a 

public seminar to introduce potential 

bidders and other stakeholders to the 

auction format provided in the PSN, 

explain the auction rules, and 

demonstrate the auction process 

through meaningful examples. The time 

and place of the seminar will be 

announced by BOEM and published on 

the BOEM Web site. No registration or 

RSVP is required to attend. 

Mock Auction: BOEM will host a 

mock auction to educate bidders about 

the procedures to be employed, and 

answer questions. The mock auction 

will take place between the publication 

of the FSN in the Federal Register and 

the date of the auction. Following 

publication of the FSN in the Federal 

Register, details of the mock auction 

will be distributed to those eligible to 

participate in the auction. All bidders 

that intend to participate in the auction 

are strongly encouraged to participate in 

the mock auction. 

Bid Deposit and Minimum Bid: A bid 

deposit is an advance cash deposit 

submitted to BOEM. No later than 14 

calendar days following publication of 

the FSN, each bidder must have 

submitted a bid deposit (i.e., minimum 

bid) of at least $5.00 per acre, or fraction 

thereof, offered for sale. Approximately 

112,799 acres will be offered for sale in 

this auction. Therefore, the minimum 

bid deposit for any participant in this 

auction is $563,995. Any bidder that 

fails to submit the bid deposit by the 

deadline described herein may be 

prevented by BOEM from participating 

in the auction. Bid deposits will be 

accepted online via pay.gov. 

Following publication of the FSN, 

each bidder must fill out the Bidder’s 

Financial Form included in the FSN. 

BOEM has made a copy of the proposed 

form available with this notice on its 

Web site at: http://boem.gov/RenewableEnergy-Program/State-Activities/ 

Virginia. This form requests that bidders 

designate an email address, which 

bidders should use to create an account 

in pay.gov. After establishing the 

pay.gov account, bidders may use the 

Bid Deposit Form on the pay.gov Web 

site to leave a deposit. 

Following the auction, bid deposits 

will be applied against any bonus bids 

or other obligations owed to BOEM. If 

the bid deposit exceeds the bidder’s 

total financial obligation, the balance of 

the bid deposit will be refunded to the 

bidder. 

Area Offered for Leasing: The 

proposed lease area offshore Virginia 

contains 19 whole OCS blocks and 13 

sub-blocks. The western edge of the 

proposed lease area is approximately 

23.5 nautical miles (nmi) from the 

Virginia Beach coastline, and extends to 

an eastern edge that is approximately 

36.5 nmi from the same location. The 

longest north/south portion is 

approximately 10.5 nmi in length and 

the longest east/west portion is 

approximately 13 nmi in length. The 

entire area is approximately 112,799 

acres, or 45,648 hectares. A description 

of the lease area and lease activities can 

be found in Addendum ‘‘A’’ of the 

proposed lease, which BOEM has made 

available with this notice on its Web site 

at: http://boem.gov/Renewable-EnergyProgram/State-Activities/Virginia.aspx. 

Map of the Area Offered for Leasing: 

A map of the area and a table of the 

boundary coordinates in X, Y (eastings, 

northings) UTM Zone 18, NAD83 Datum 

and geographic X, Y (longitude, 

latitude), NAD83 Datum can be found at 

the following URL: http://boem.gov/ 

Renewable-Energy-Program/StateActivities/Virginia.aspx. 

A large scale map of this area showing 

boundaries of the area with numbered 

blocks is available from BOEM at the 

following address: Bureau of Ocean 

Energy Management, Office of 

Renewable Energy Programs, 381 Elden 

Street, HM 1328, Herndon, Virginia 

20170, Phone: (703) 787–1300, Fax: 

(703) 787–1708. 

Area Offered as a Single Lease: The 

area available for sale will be auctioned 

as a single lease. One lease will be 

issued pursuant to this lease sale. 


emcdonald on DSK67QTVN1PROD with NOTICES
71624 Federal Register / Vol. 77, No. 232 / Monday, December 3, 2012 / Notices 

BOEM has decided to auction the area 

as a single zone resulting in a single 

lease in order to take advantage of the 

simplicity of this type of sale, the 

importance of which was highlighted by 

comments received in response to the 

Auction Format Information Request (76 

FR 76174). Feedback from a member of 

the BOEM Virginia Renewable Energy 

Task Force suggested that offering the 

area in two zones could attract lower 

electricity prices for offshore wind 

generation in the event two different 

developers won different zones. 

However, splitting the area into two 

zones would not have prevented a 

single developer from winning both 

zones. Other Task Force members have 

endorsed the proposed single zone 

approach to facilitate potential phased 

development. If additional relevant 

comments regarding the auction format 

are submitted to BOEM in response to 

this PSN, BOEM will consider them. 

Withdrawal of Blocks: BOEM reserves 

the right to withdraw areas from this 

lease sale prior to the execution of the 

lease. 

Lease Terms and Conditions: 

Proposed lease terms and conditions for 

an OCS commercial wind lease in the 

Virginia WEA have been included in 

Addendum ‘‘C’’ of the proposed lease. 

BOEM reserves the right to apply 

additional terms and conditions that are 

consistent with the terms of the lease to 

activities conducted on the lease 

incident to any future approval or 

approval with modifications of a SAP 

and/or COP. The proposed lease, 

including Addendum ‘‘C’’, is available 

on BOEM’s Web site at: http:// 

boem.gov/Renewable-Energy-Program/ 

State-Activities/Virginia.aspx. The 

proposed lease consists of an instrument 

with 18 sections and the following five 

attachments: 

Addendum ‘‘A’’ (Description of 

Leased Area and Lease Activities); 

Addendum ‘‘B’’ (Lease Term and 

Financial Schedule); 

Addendum ‘‘C’’ (Lease Specific 

Terms, Conditions, and Stipulations); 

Addendum ‘‘D’’ (Project Easement); 

Addendum ‘‘E’’ (Rent Schedule); and 

Appendix A (High Resolution 

Geophysical Surveys and Analysis for 

the Identification or Reporting of 

Archaeological Resources). 

Addenda ‘‘A’’, ‘‘B’’, and ‘‘C’’ provide 

detailed descriptions of lease terms and 

conditions. Addenda ‘‘D’’ and ‘‘E’’ will 

be completed at the time of COP 

approval. 

After considering comments on the 

PSN and these proposed provisions, 

BOEM will publish final lease terms and 

conditions in a FSN. 

The lease form included as part of this 

proposed lease has been updated since 

its publication on February 3, 2012. A 

discussion of specific changes to the 

lease form is available separately on 

BOEM’s Web site at: http:// 

www.boem.gov/Renewable-EnergyProgram/Regulatory-Information/ 

Index.aspx#Lease_Forms. 

Plans: Pursuant to 30 CFR 585.601, 

the leaseholder must submit a SAP 

within six months of lease issuance. If 

the leaseholder intends to continue its 

commercial lease with an operations 

term, the leaseholder must submit a 

COP at least six months before the end 

of the site assessment term. 

Pursuant to 30 CFR 585.629, a 

leaseholder may request in its COP to 

develop its commercial lease in phases. 

If a leaseholder requests, and BOEM 

approves, phased development, this 

approval will not affect the length of the 

preliminary, site assessment, or 

commercial terms offered under the 

lease. The COP must describe in 

sufficient detail the activities proposed 

for all phases of commercial 

development, including a schedule 

detailing the proposed timelines for 

phased development. Further, the COP 

must include the results of all site 

characterization surveys, as described in 

30 CFR 585.626(a), necessary to support 

each phase of commercial development. 

The requirements of the SAP remain the 

same as they would under a non-phased 

development scenario, and must meet 

the requirements provided in the 

regulatory provisions in 30 CFR 

585.605–613 for the full commercial 

lease area. 

Qualifications—Who May Bid: 

Entities wishing to participate in the 

lease sale must be legally, technically, 

and financially qualified under BOEM’s 

regulations at 30 CFR 585.106–107. Any 

potential bidder that has not already 

submitted a complete qualification 

package must do so by the end of the 

comment period of this PSN. To be 

eligible to participate in the auction, 

each potential bidder must be legally, 

technically and financially qualified by 

the time the FSN for this sale is 

published. Please note that technical 

and financial qualifications are project 

specific; it is not sufficient to have been 

technically and financially qualified to 

pursue a project offshore another state. 

Guidance and examples of the 

appropriate documentation 

demonstrating your legal qualifications 

can be found in Chapter 2 and 

Appendix B of Guidelines for the 

Minerals Management Service 

Renewable Energy Framework, available 

on BOEM’s Web site at http:// 

www.boem.gov/Renewable-EnergyProgram/Regulatory-Information/ 

Index.aspx. Guidance regarding how 

you may demonstrate your technical 

and financial qualifications is provided 

in a document entitled, Qualification 

Guidelines to Acquire and Hold 

Renewable Energy Leases and Grants 

and Alternate Use Grants on the U.S. 

Outer Continental Shelf. (http:// 

boem.gov/Renewable-Energy-Program/ 

Regulatory-Information/ 

QualificationGuidelines-pdf.aspx). It is 

strongly recommended that you refer to 

this guidance before submitting your 

materials as the guidance has been 

updated recently. Documentation you 

submit to demonstrate your legal, 

technical, and financial qualifications 

must be provided to BOEM in both 

paper and electronic formats. BOEM 

considers an Adobe PDF file stored on 

a compact disc (CD) to be an acceptable 

format for submitting an electronic 

copy. In your qualification materials, 

provide a general description of the 

project you would like to construct on 

the lease area sought in this sale, 

including estimates of the project area 

and total nameplate capacity of the 

proposed facilities. 

Please note that it may take a number 

of weeks for you to establish your legal, 

technical, and financial qualifications. 

We advise potential bidders planning to 

participate in a sale to establish their 

qualifications promptly. It is not 

uncommon for BOEM to request 

additional materials establishing 

qualifications following an initial 

review of the qualifications package. 

Any potential bidder whose 

qualification package is incomplete at 

the time the FSN for this sale is 

published in the Federal Register, will 

be found to have failed to establish its 

qualifications to participate in the sale, 

and, therefore, will be unable to 

participate in the sale. 

Auction Procedures: The sale is being 

conducted using an online bidding 

system and follows an ‘‘ascending 

clock’’ auction format. In this format, 

BOEM sets an initial asking or ‘‘clock’’ 

price for the single lease being offered, 

and increases that price incrementally 

in subsequent rounds until no more 

than a single active bidder remains in 

the auction. During each round, active 

bidders may either (1) submit an active 

bid indicating that they are interested in 

acquiring the lease at the stated auction 

price or (2) exit the auction. 

A bidder remains active as long as it 

continues to meet BOEM’s asking price 

associated with ensuing rounds. If more 

than one active bid is received in a 

round, BOEM increases the asking price 

incrementally and conducts another 

auction round. Between rounds, active 


emcdonald on DSK67QTVN1PROD with NOTICES
Federal Register / Vol. 77, No. 232 / Monday, December 3, 2012 / Notices 71625 

bidders are informed about the number 

of bids submitted in the previous round. 

Additional auction rounds occur as long 

as two or more bidders continue to 

submit active bids for the lease in each 

round. The auction concludes at the end 

of the round in which the number of 

active bids received falls to one or zero. 

Bidders exiting the auction are 

allowed to submit an exit bid at an offer 

price greater than the clock price in the 

previous round and less than the 

incremented clock price in the current 

round. Once a bidder exits the auction, 

either by submitting an exit bid or by 

failing to submit an active bid, it will no 

longer be allowed to submit bids in any 

subsequent round. If a bidder leaves the 

auction without submitting an exit bid, 

BOEM will treat the last round’s clock 

price as the bidder’s exit bid in the 

current round. Exit bids are not 

considered to be active bids for purpose 

of determining whether to conclude the 

auction. 

The lease is awarded to the sole 

bidder submitting an active bid in the 

final round of the auction at the final 

round’s stated auction price. If an active 

bid is not received in the final round, 

the lease is awarded to the bidder 

offering the highest exit bid price for the 

lease. If there is a tie at the highest exit 

bid price offered, the winning bidder is 

chosen by a random draw. 

Specific details about certain 

administrative aspects of the auction 

sale process will be described in the 

FSN. These aspects include how the 

clock price will increase in various 

stages of the auction, the duration of 

each bidding round, the amount of time 

provided between rounds, the number 

of rounds expected per day, and the 

days on which the auction process will 

continue, if necessary, beyond the first 

day. Bidders may expect multiple 

rounds per day to occur during normal 

business hours. The amount of time 

allowed for bidders to enter bids and the 

time between rounds may be reduced as 

the auction progresses based on the 

patterns of bidding to increase the pace 

of the auction. Bidders will be notified 

of the round schedule at the start of 

each day of the auction. 

Acceptance, Rejection or Return of 

Bids: BOEM reserves the right and 

authority to reject any and all bids. In 

any case, no bid will be accepted, and 

no lease will be awarded to any bidder, 

unless (1) the bidder has complied with 

all requirements of the FSN and 

applicable regulations; (2) the bid is the 

highest valid bid; (3) and the amount of 

the bid has been determined to be 

adequate by the authorized officer. Any 

bid submitted that does not conform to 

the requirements of the FSN, the Act, 

and other applicable regulations may be 

returned to the bidder submitting that 

bid by the Program Manager of BOEM’s 

Office of Renewable Energy Programs 

and not considered for acceptance. The 

winning bid will be evaluated for its 

conformance with the requirements and 

rules of the auction, including, but not 

limited to, applicable bidder 

qualifications, bid deposits, and the 

integrity of the bidding process. 

Process for Issuing the Lease: If BOEM 

proceeds with lease issuance, it will 

issue three unsigned copies of the lease 

form to the winning bidder. Within 10 

business days after receiving the lease 

copies, a winning bidder must: 

1. Execute the lease on the bidder’s 

behalf; 

2. File financial assurance as required 

under 30 CFR 585.515–537; and 

3. Pay the balance of the bonus bid 

(bid amount less the bid deposit). 

If a winning bidder does not meet 

these three requirements within 10 

business days of receiving the lease 

copies as described above, or if a 

winning bidder otherwise fails to 

comply with applicable regulations or 

the terms of the FSN, the winning 

bidder will forfeit its bid deposit. BOEM 

may extend this 10 business-day time 

period if it determines the delay was 

caused by events beyond the winning 

bidder’s control. 

BOEM will not execute a lease until 

the three requirements above have been 

satisfied, BOEM has accepted the 

winning bidder’s financial assurance, 

and BOEM has processed the winning 

bidder’s payment. Please note the 

required timelines for providing 

financial assurance. The winning bidder 

may meet financial assurance 

requirements by posting a surety bond 

or by setting up an escrow account with 

a trust agreement giving BOEM the right 

to withdraw the money held in the 

account on demand by BOEM. BOEM 

may accept other forms of financial 

assurance on a case-by-case basis in 

accordance with its regulations. BOEM 

encourages winning bidders to discuss 

the financial assurance requirement 

with BOEM as soon as possible after the 

auction has concluded. 

Within 45 calendar days of the date 

that the Lessee receives the lease copies, 

the Lessee must pay the first year’s rent. 

Anti-Competitive Behavior: In 

addition to the auction rules described 

in this notice, bidding behavior is 

governed by Federal antitrust laws 

designed to prevent anticompetitive 

behavior in the marketplace. 

Compliance with the BOEM’s auction 

procedures will not insulate a party 

from enforcement of the antitrust laws. 

In accordance with the Act at 43 

U.S.C. 1337(c), following the auction, 

and before the acceptance of bids and 

the issuance of leases, BOEM will 

‘‘allow the Attorney General, in 

consultation with the Federal Trade 

Commission, thirty days to review the 

results of the lease sale.’’ 

If a bidder is found to have engaged 

in anti-competitive behavior or 

otherwise violated BOEM’s rules in 

connection with its participation in the 

competitive bidding process, BOEM 

may reject the high bid pursuant to its 

regulations at 30 CFR 585.222(a)(2). 

Anti-competitive behavior 

determinations are fact specific. 

However, such behavior may manifest 

itself in several different ways, 

including, but not limited to: 

• An agreement, either express or 

tacit, among bidders to not bid in an 

auction, or to bid a particular price; 

• An agreement among bidders not to 

bid in a particular location; 

• An agreement among bidders not to 

bid against each other; and 

• Other agreements among bidders 

that have the effect of limiting the final 

auction price. 

• If awarding a lease would otherwise 

create a situation inconsistent with the 

antitrust laws (e.g., heavily concentrated 

market, etc.). 

For more information on whether 

specific communications or agreements 

could constitute a violation of Federal 

antitrust law, please see http:// 

www.justice.gov/atr/public/businessresources.html, or consult counsel. 

Post-Auction Certification: In addition 

to the steps described in the section 

entitled, ‘‘Process for Issuing the Lease,’’ 

following the lease sale, each winning 

bidder will be required to certify the 

following in accordance with 18 U.S.C. 

1001 (Fraud and False Statements): 

I certify that [name of qualified bidder] did 

not engage in anticompetitive bidding 

behavior in violation of Federal law, BOEM’s 

regulations, or auction procedures. 

I certify that this bid is made in a good 

faith effort to win a lease to engage in the 

development of renewable energy resources. 

Non-Procurement Debarment and 

Suspension Regulations: Pursuant to 

regulations at 43 CFR Part 42, Subpart 

C, an OCS renewable energy Lessee 

must comply with the U.S. Department 

of the Interior’s non-procurement 

debarment and suspension regulations 

at 2 CFR Parts 180 and 1400 and agree 

to communicate the requirement to 

comply with these regulations to 

persons with whom the Lessee does 

business as it relates to this lease by 

including this term as a condition in 

their contracts and other transactions. 


emcdonald on DSK67QTVN1PROD with NOTICES
71626 Federal Register / Vol. 77, No. 232 / Monday, December 3, 2012 / Notices 

1No response to this request for information is 

required if a currently valid Office of Management 

and Budget (OMB) number is not displayed; the 

OMB number is 3117–0016/USITC No. 13–5–279, 

expiration date June 30, 2014. Public reporting 

burden for the request is estimated to average 15 

hours per response. Please send comments 

regarding the accuracy of this burden estimate to 

the Office of Investigations, U.S. International Trade 

Commission, 500 E Street SW., Washington, DC 

20436. 

Final Sale Notice: BOEM will 

consider comments received or 

postmarked during the PSN comment 

period in preparing a FSN that will 

provide the final details concerning the 

offering and issuance of an OCS 

commercial wind energy lease in the 

Virginia WEA. The FSN will be 

published in the Federal Register at 

least 30 days before the lease sale is 

conducted and will provide the date 

and time of the auction. 

Force Majeure: The Program Manager 

of BOEM’s Office of Renewable Energy 

Programs has the discretion to change 

any date, time, and/or location specified 

in the FSN in case of a force majeure 

event that the Program Manager deems 

may interfere with a fair and proper 

lease sale process. Such events may 

include, but are not limited to, natural 

disasters (e.g., earthquakes, hurricanes, 

floods), wars, riots, acts of terrorism, 

fire, strikes, civil disorder or other 

events of a similar nature. In case of 

such events, bidders should call 703– 

787–1300 or access the BOEM Web site 

at: http://www.boem.gov/RenewableEnergy-Program/index.aspx. 

Appeals: The appeals procedures are 

provided in BOEM’s regulations at 30 

CFR 585.225 and 585.118(c). Pursuant 

to 30 CFR 585.225, 

(a) If BOEM rejects your bid, BOEM 

will provide a written statement of the 

reasons and refund any money 

deposited with your bid, without 

interest. 

(b) You will then be able to ask the 

BOEM Director for reconsideration, in 

writing, within 15 business days of bid 

rejection, under 30 CFR 585.118(c)(1). 

We will send you a written response 

either affirming or reversing the 

rejection. 

The procedures for appealing adverse 

final decisions with respect to lease 

sales are described in 30 CFR 

585.118(c). 

Protection of Privileged or Confidential 

Information 

Freedom of Information Act: BOEM 

will protect privileged or confidential 

information that you submit as required 

by 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, subject to the 

requirements of FOIA. Please label 

privileged or confidential information 

‘‘Contains Confidential Information’’ 

and consider submitting such 

information as a separate attachment. 

However, BOEM will not treat as 

confidential any aggregate summaries of 

such information or comments not 

containing such information. 

Additionally, BOEM may not treat as 

confidential the legal title of the 

commenting entity (e.g., the name of 

your company). Information that is not 

labeled as privileged or confidential will 

be regarded by BOEM as suitable for 

public release. 

Section 304 of the National Historic 

Preservation Act (16 U.S.C. 470w–3(a)): 

BOEM is required, after consultation 

with the Secretary, to withhold the 

location, character, or ownership of 

historic resources if it determines that 

disclosure may, among other things, 

cause a significant invasion of privacy, 

risk harm to the historic resources or 

impede the use of a traditional religious 

site by practitioners. Tribal entities and 

other interested parties should designate 

information that they wish to be held as 

confidential. 

Dated: November 27, 2012. 

Tommy P. Beaudreau, 

Director, Bureau of Ocean Energy 

Management. 

[FR Doc. 2012–29097 Filed 11–30–12; 8:45 am] 

BILLING CODE 4310–MR–P 

INTERNATIONAL TRADE 

COMMISSION 

[Investigation No. 731–TA–909 (Second 

Review)] 

Low Enriched Uranium From France; 

Institution of a Five-Year Review 

Concerning the Antidumping Duty 

Order on Low Enriched Uranium From 

France 

AGENCY: United States International 

Trade Commission. 

ACTION: Notice. 

SUMMARY: The Commission hereby gives 

notice that it has instituted a review 

pursuant to section 751(c) of the Tariff 

Act of 1930 (19 U.S.C. 1675(c)) (the Act) 

to determine whether revocation of the 

antidumping duty order on low 

enriched uranium from France would be 

likely to lead to continuation or 

recurrence of material injury. Pursuant 

to section 751(c)(2) of the Act, interested 

parties are requested to respond to this 

notice by submitting the information 

specified below to the Commission; 1 to 

be assured of consideration, the 

deadline for responses is January 2, 

2013. Comments on the adequacy of 

responses may be filed with the 

Commission by February 15, 2013. For 

further information concerning the 

conduct of this review and rules of 

general application, consult the 

Commission’s Rules of Practice and 

Procedure, part 201, subparts A through 

E (19 CFR part 201), and part 207, 

subparts A, D, E, and F (19 CFR part 

207), as most recently amended at 74 FR 

2847 (January 16, 2009). 

DATES: Effective Date: December 3, 2012. 

FOR FURTHER INFORMATION CONTACT: 

Mary Messer (202–205–3193), Office of 

Investigations, U.S. International Trade 

Commission, 500 E Street SW., 

Washington, DC 20436. Hearingimpaired persons can obtain 

information on this matter by contacting 

the Commission’s TDD terminal on 202– 

205–1810. Persons with mobility 

impairments who will need special 

assistance in gaining access to the 

Commission should contact the Office 

of the Secretary at 202–205–2000. 

General information concerning the 

Commission may also be obtained by 

accessing its internet server (http:// 

www.usitc.gov). The public record for 

this review may be viewed on the 

Commission’s electronic docket (EDIS) 

at http://edis.usitc.gov. 

SUPPLEMENTARY INFORMATION: 

Background. On February 13, 2002, 

the Department of Commerce issued an 

antidumping duty order on imports of 

low enriched uranium from France (67 

FR 6680). Following the five-year 

reviews by Commerce and the 

Commission, effective January 3, 2008, 

Commerce issued a continuation of the 

antidumping duty order on imports of 

low enriched uranium from France (73 

FR 449). The Commission is now 

conducting a second review to 

determine whether revocation of the 

order would be likely to lead to 

continuation or recurrence of material 

injury to the domestic industry within 

a reasonably foreseeable time. It will 

assess the adequacy of interested party 

responses to this notice of institution to 

determine whether to conduct a full 

review or an expedited review. The 

Commission’s determination in any 

expedited review will be based on the 

facts available, which may include 


emcdonald on DSK67QTVN1PROD with NOTICES