2092 Federal Register / Vol. 74, No. 9 / Wednesday, January 14, 2009 / Notices 

business and considered usual and 

customary. 

Estimated Annual Reporting and 

Recordkeeping ‘‘Non-hour’’ Cost 

Burden: 

We have identified no ‘‘non-hour’’ 

cost burden associated with the 

collection of information. 

Public Disclosure Statement: The PRA 

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

agency may not conduct or sponsor, and 

a person is not required to respond to, 

a collection of information unless it 

displays a currently valid OMB control 

number. 

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

the PRA requires each agency to ‘‘* * * 

publish a 60-day notice in the Federal 

Register * * * and otherwise consult 

with members of the public and affected 

agencies concerning each proposed 

collection of information * * *.’’ 

Agencies must specifically solicit 

comments to: (a) Evaluate whether the 

proposed collection of information is 

necessary for the agency to perform its 

duties, including whether the 

information is useful; (b) evaluate the 

accuracy of the agency’s estimate of the 

burden of the proposed collection of 

information; (c) enhance the quality, 

usefulness, and clarity of the 

information to be collected; and (d) 

minimize the burden on the 

respondents, including the use of 

automated collection techniques or 

other forms of information technology. 

To comply with the public 

consultation process, we published a 

notice in the Federal Register on April 

29, 2008 (73 FR 23269), announcing that 

we would submit this ICR to OMB for 

approval. The notice provided the 

required 60-day comment period. We 

received no comments in response to 

the notice. 

If you wish to comment in response 

to this notice, you may send your 

comments to the offices listed under the 

ADDRESSES section of this notice. The 

OMB has up to 60 days to approve or 

disapprove the information collection 

but may respond after 30 days. 

Therefore, to ensure maximum 

consideration, OMB should receive 

public comments by February 13, 2009. 

Public Comment Policy: We will post 

all comments in response to this notice 

at http://www.mrm.mms.gov/Laws_R_D/ 

FRNotices/FRInfColl.htm. We also will 

post all comments, including names and 

addresses of respondents, at http:// 

www.regulations.gov. Before including 

your address, phone number, e-mail 

address, or other personal identifying 

information in your comment, be 

advised that your entire comment— 

including your personal identifying 

information—may be made publicly 

available at any time. While you can ask 

us in your comment to withhold from 

public review your personal identifying 

information, we cannot guarantee that 

we will be able to do so. 

MMS Information Collection 

Clearance Officer: Arlene Bajusz (202) 

208–7744. 

Dated: December 4, 2008. 

Greg Gould, 

Associate Director for Minerals Revenue 

Management. 

[FR Doc. E9–575 Filed 1–13–09; 8:45 am] 

BILLING CODE 4310–MR–P 

DEPARTMENT OF THE INTERIOR 

Minerals Management Service (MMS) 

Outer Continental Shelf (OCS) Central 

Planning Area (CPA) Gulf of Mexico 

(GOM) Oil and Gas Lease Sale 208 

AGENCY: Minerals Management Service, 

Interior. 

ACTION: Final Notice of Sale (NOS) 208. 

SUMMARY: On Wednesday, March 18, 

2009, the MMS will open and publicly 

announce bids received for blocks 

offered in CPA Oil and Gas Lease Sale 

208, pursuant to the OCS Lands Act (43 

U.S.C. 1331–1356, as amended) and the 

regulations issued thereunder (30 CFR 

Part 256). The Final Notice of Sale 208 

Package (Final NOS 208 Package) 

contains information essential to 

bidders, and bidders are charged with 

the knowledge of the documents 

contained in the Package. 

DATES: Public bid reading for the CPA 

Oil and Gas Lease Sale 208 will begin 

at 9 a.m., Wednesday, March 18, 2009, 

at the Louisiana Superdome, 1500 

Sugarbowl Drive, New Orleans, 

Louisiana 70112. The lease sale will be 

held in the St. Charles Club Room on 

the second floor (Loge Level). Entry to 

the Superdome will be on the Poydras 

Street side of the building through Gate 

A on the Ground or Plaza Level, and 

parking should be available at Garage 6. 

All times referred to in this document 

are local New Orleans times, unless 

otherwise specified. 

ADDRESSES: Bidders can obtain a Final 

NOS 208 Package containing this Notice 

of Sale and several supporting and 

essential documents referenced herein 

from the MMS Gulf of Mexico Region 

Public Information Unit, 1201 Elmwood 

Park Boulevard, New Orleans, Louisiana 

70123–2394, (504) 736–2519 or (800) 

200–GULF, or via the MMS GOM 

Homepage Address on the Internet at: 

http://www.gomr.mms.gov. 

Filing of Bids: Bidders must submit 

sealed bids to the Regional Director 

(RD), MMS Gulf of Mexico Region, 1201 

Elmwood Park Boulevard, New Orleans, 

Louisiana 70123–2394, between 8 a.m. 

and 4 p.m. on normal working days, and 

from 8 a.m. to the Bid Submission 

Deadline of 10 a.m. on Tuesday, March 

17, 2009, the day before the lease sale. 

If bids are mailed, please address the 

envelope containing all of the sealed 

bids as follows: Attention: Supervisor, 

Sales and Support Unit (MS 5422), 

Leasing Activities Section, MMS Gulf of 

Mexico Region, 1201 Elmwood Park 

Boulevard, New Orleans, Louisiana 

70123–2394. 

Contains Sealed Bids for CPA Oil and 

Gas Lease Sale 208 Please Deliver to 

Ms. Nancy Kornrumpf, 6th Floor, 

Immediately 

Please note: Bidders mailing bid(s) are 

advised to call Ms. Nancy Kornrumpf 

immediately after putting their bid(s) in the 

mail at (504) 736–2726. 

If the RD receives bids later than the 

time and date specified above, he will 

return those bids unopened to bidders. 

Should an unexpected event such as 

flooding or travel restrictions be 

significantly disruptive to bid 

submission, the MMS Gulf of Mexico 

Region may extend the Bid Submission 

Deadline. Bidders may call (504) 736– 

0557 or access our Web site at: http:// 

www.gomr.mms.gov for information 

about the possible extension of the Bid 

Submission Deadline due to such an 

event. 

Areas Offered for Leasing: The MMS 

is offering for leasing in CPA Oil and 

Gas Lease Sale 208, all blocks and 

partial blocks listed in the document 

‘‘List of Blocks Available for Leasing’’ 

included in the Final NOS 208 Package. 

All of these blocks are shown on the 

following leasing maps and Official 

Protraction Diagrams (OPD’s): 

Outer Continental Shelf Leasing 

Maps—Louisiana Map Numbers 1 

through 12 (These 30 Maps Sell for 

$2.00 each) 

LA1 West Cameron Area (Revised 

November 1, 2000) 

LA1A West Cameron Area, West 

Addition (Revised February 28, 2007) 

LA1B West Cameron Area, South 

Addition (Revised February 28, 2007) 

LA2 East Cameron Area (Revised 

November 1, 2000) 

LA2A East Cameron Area, South 

Addition (Revised November 1, 2000) 

LA3 Vermilion Area (Revised 

November 1, 2000) 

LA3A South Marsh Island Area 

(Revised November 1, 2000) 

LA3B Vermilion Area, South Addition 

(Revised November 1, 2000) 


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LA3C South Marsh Island Area, South 

Addition (Revised November 1, 2000) 

LA3D South Marsh Island Area, North 

Addition (Revised November 1, 2000) 

LA4 Eugene Island Area (Revised 

November 1, 2000) 

LA4A Eugene Island Area, South 

Addition (Revised November 1, 2000) 

LA5 Ship Shoal Area (Revised 

November 1, 2000) 

LA5A Ship Shoal Area, South 

Addition (Revised November 1, 2000) 

LA6 South Timbalier Area (Revised 

November 1, 2000) 

LA6A South Timbalier Area, South 

Addition (Revised November 1, 2000) 

LA6B South Pelto Area (Revised 

November 1, 2000) 

LA6C Bay Marchand Area (Revised 

November 1, 2000) 

LA7 Grand Isle Area (Revised 

November 1, 2000) 

LA7A Grand Isle Area, South Addition 

(Revised February 17, 2004) 

LA8 West Delta Area (Revised 

November 1, 2000) 

LA8A West Delta Area, South 

Addition (Revised November 1, 2000) 

LA9 South Pass Area (Revised 

November 1, 2000) 

LA9A South Pass Area, South and East 

Additions (Revised November 1, 

2000) 

LA10 Main Pass Area (Revised 

November 1, 2000) 

LA10A Main Pass Area, South and 

East Additions (Revised November 1, 

2000) 

LA10B Breton Sound Area (Revised 

November 1, 2000) 

LA11 Chandeleur Area (Revised 

November 1, 2000) 

LA11A Chandeleur Area, East 

Addition (Revised November 1, 2000) 

LA12 Sabine Pass Area (Revised 

February 28, 2007) 

Outer Continental Shelf Official 

Protraction Diagrams (These 19 

Diagrams Sell for $2.00 Each) 

NG15–02 Garden Banks (Revised 

February 28, 2007) 

NG15–03 Green Canyon (Revised 

November 1, 2000) 

NG15–05 Keathley Canyon (Revised 

February 28, 2007) 

NG15–06 Walker Ridge (Revised 

November 1, 2000) 

NG15–08 Sigsbee Escarpment (Revised 

February 28, 2007) 

NG15–09 Amery Terrace (Revised 

October 25, 2000) 

NG16–01 Atwater Valley (Revised 

November 1, 2000) 

NG16–02 Lloyd Ridge (Revised August 

1, 2008) 

NG16–04 Lund (Revised November 1, 

2000) 

NG16–05 Henderson (Revised August 

1, 2008) 

NG16–07 Lund South (Revised 

November 1, 2000) 

NG16–08 Florida Plain (Revised 

February 28, 2007) 

NH15–12 Ewing Bank (Revised 

November 1, 2000) 

NH16–04 Mobile (Revised November 

1, 2000) 

NH16–05 Pensacola (Revised February 

28, 2007) 

NH16–07 Viosca Knoll (Revised 

November 1, 2000) 

NH16–08 Destin Dome (Revised 

February 28, 2007) 

NH16–10 Mississippi Canyon (Revised 

November 1, 2000) 

NH16–11 De Soto Canyon (Revised 

August 1, 2008) 

Bidders are advised that the CentralEastern Planning Area Boundary has 

been revised to match the Federal OCS 

Administrative Boundary for the DeSoto 

Canyon, Lloyd Ridge, and Henderson 

Areas. The new boundary splits blocks 

that were formerly ‘‘stair-stepped’’ and 

can be seen on the ‘‘Stipulations and 

Deferred Blocks’’ or ‘‘Lease Terms and 

Economic Conditions’’ maps, included 

in the Final NOS 208 Package. The 

boundaries along the Pensacola, Destin 

Dome, and Florida Plain Areas will 

remain ‘‘stair-stepped’’ for this lease 

sale. The administrative boundaries can 

also be viewed at: http://www.mms.gov/ 

ld/AdminBoundaries.htm. 

Please note: A CD–ROM (in ARC/INFO and 

Acrobat (.pdf) format) containing all of the 

GOM leasing maps and OPD’s, except for 

those not yet converted to digital format, is 

available from the MMS Gulf of Mexico 

Region Public Information Unit for a price of 

$15. These GOM leasing maps and OPD’s are 

also available for free online in .pdf and .gra 

format at: http://www.gomr.mms.gov/ 

homepg/lsesale/map_arc.html. 

For the current status of all CPA 

leasing maps and OPD’s, please refer to 

66 FR 28002 (published May 21, 2001), 

69 FR 23211 (published April 28, 2004), 

72 FR 27590 (published May 16, 2007), 

72 FR 35720 (published June 29, 2007), 

and 73 FR 63505 (October 24, 2008). In 

addition, Supplemental Official OCS 

Block Diagrams (SOBD’s) are available 

for blocks which contain the ‘‘U.S. 200 

Nautical Mile Limit’’ line and the ‘‘U.S.- 

Mexico Maritime Boundary’’ line. These 

SOBD’s are also available from the MMS 

Gulf of Mexico Region Public 

Information Unit. For additional 

information, please call Ms. Tara 

Montgomery at (504) 736–5722. 

All blocks are shown on these leasing 

maps and OPD’s. The available Federal 

acreage of all whole and partial blocks 

in this lease sale is shown in the 

document ‘‘List of Blocks Available for 

Leasing’’ included in the Final NOS 208 

Package. Some of these blocks may be 

partially leased or deferred, or 

transected by administrative lines such 

as the Federal/state jurisdictional line. 

A bid on a block must include all of the 

available Federal acreage of that block. 

Also, information on the unleased 

portions of such blocks is found in the 

document ‘‘Central Planning Area Lease 

Sale 208—Unleased Split Blocks and 

Available Unleased Acreage of Blocks 

with Aliquots and Irregular Portions 

Under Lease or Deferred’’ included in 

the Final NOS 208 Package. 

Areas not Available for Leasing: The 

following whole and partial blocks are 

not offered for lease in this lease sale: 

Blocks with bid decisions currently 

under appeal (although currently 

unleased, the bid decisions on the 

following blocks are under appeal and 

bids will not be accepted): 

Mississippi Canyon (OPD NH16–10) 

Block 943 

West Delta Area (Leasing Map LA8) 

Block 50 

Whole blocks and portions of blocks 

which lie within the former Western 

Gap portion of the 1.4 nautical mile 

buffer zone north of the continental 

shelf boundary between the United 

States and Mexico: 

Amery Terrace (OPD NG 15–09) 

Whole Blocks: 280, 281, 318 through 

320, and 355 through 359 

Portions of Blocks: 235 through 238, 273 

through 279, and 309 through 317 

Sigsbee Escarpment (OPD NG 15–08) 

Whole Blocks: 239, 284, 331 through 

341 

Portions of Blocks: 151, 195, 196, 240, 

241, 285 through 298, 342 through 

349 

Whole blocks and portions of blocks, 

which are adjacent to or beyond the 

United States Exclusive Economic Zone, 

in or adjacent to the area known as the 

Northern portion of the Eastern Gap. 

Please note that an additional one block 

setback is being deferred, starting with 

this Sale: 

Lund South (OPD NG 16–07) 

Whole Blocks: 128, 129, 169 through 

173, 209 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 


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Portions of 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 23, 46 through 

66, 89 through 109, 133 through 153, 

177 through 196, 221 through 239, 

265 through 282, 309 through 326, 

and 363 through 369 

Portions of Blocks: 24, 25, 67, 68, 110, 

111, 154, 197, 198, 240, 241, 283, 284, 

327, 370, and 371 

Whole blocks and portions of blocks 

deferred by Gulf of Mexico Energy 

Security Act: 

Pensacola (OPD NH 16–05) 

Blocks: 751 through 754, 793 through 

798, 837 through 842, 881 through 

886, 925 through 930, 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 

Portions of Blocks: 16, 60, 61, 89 

through 91, 103 through 105, and 135 

through 147 

Henderson (OPD NG 16–05) 

Portions of Blocks: 114, 158, 202, 246, 

290, 334, 335, 378, 379, 422, and 423 

Whole blocks and portions of blocks 

above the Sale 181 area but beyond 100 

miles from the Florida coast: 

DeSoto Canyon (OPD NH 16–11) 

Whole Blocks: 148, and 185 through 192 

Portion of Blocks: 89, 90, 91, 103 

through 105, 141 through 147, 149, 

and 193 

Statutes and Regulations: Each lease 

issued in this lease sale is subject to the 

OCS Lands Act of August 7, 1953; 43 

U.S.C. 1331 et seq., as amended, 

hereinafter called ‘‘the Act;’’ all 

regulations issued pursuant to the Act 

and in existence upon the Effective Date 

of the lease; all regulations issued 

pursuant to the Act in the future which 

provide for the prevention of waste and 

conservation of the natural resources of 

the OCS and the protection of 

correlative rights therein; and all other 

applicable statutes and regulations. 

Lease Terms and Conditions: Initial 

periods, extensions of initial periods, 

minimum bonus bid amounts, rental 

rates, escalating rental rates for leases 

with an approved extension of the 

initial 5-year period, royalty rate, 

minimum royalty, and royalty 

suspension provisions, if any, 

applicable to this sale are noted below. 

Depictions of related areas are shown on 

the map ‘‘Final, Central Planning Area, 

Lease Sale 208, March 18, 2009, Lease 

Terms and Economic Conditions,’’ for 

leases resulting from this lease sale. 

Initial Periods: 5 years for blocks in 

water depths of less than 400 meters; 8 

years for blocks in water depths of 400 

to less than 800 meters (pursuant to 30 

CFR 256.37, commencement of an 

exploratory well is required within the 

first 5 years of the initial 8-year term to 

avoid lease cancellation); and 10 years 

for blocks in water depths of 800 meters 

or deeper. 

Extensions of Initial Periods: The 5- 

year initial period for a lease in water 

depths of less than 400 meters and 

issued from this sale may be extended 

to 8 years if a well, targeting 

hydrocarbons below 25,000 feet true 

vertical depth subsea (TVD SS), is 

spudded within the first 5 years of the 

initial period. The 3-year extension may 

be granted in cases where the well is 

drilled to a target below 25,000 feet TVD 

SS and also in cases where the well does 

not reach a depth below 25,000 feet 

TVD SS due to mechanical or safety 

reasons. 

In order for the 5-year initial period 

to be extended to 8 years, the lessee is 

required to submit to the Regional 

Supervisor for Production and 

Development, within 30 days after 

completion of the drilling operation, a 

letter providing the well number, spud 

date, information demonstrating the 

target below 25,000 feet TVD SS, and, if 

applicable, any safety or mechanical 

problems encountered that prevented 

the well from reaching a depth below 

25,000 feet TVD SS. The Regional 

Supervisor must concur in writing that 

the conditions have been met to extend 

the lease term 3 years. The Regional 

Supervisor will provide written 

confirmation of any lease extension 

within 30 days of receipt of the letter 

provided. 

For any lease that has a well spudded 

in the first 5 years of the initial period 

with a hydrocarbon target below 25,000 

feet TVD SS, the regulations found at 30 

CFR 250.175(a), (b), and (c) will not be 

applicable at the end of the 5th year. For 

any lease that does not have a well 

spudded in the first 5 years of the initial 

period which targets hydrocarbons 

below 25,000 feet TVD SS, the 

regulations found at 30 CFR 250.175(a), 

(b), and (c) will be applicable, but the 

3-year extension will not be available. 

At the end of the 8th year, the lessee is 

free to use all lease-term extension 

provisions under the regulations. 

Minimum Bonus Bid Amounts: A 

bonus bid will not be considered for 

acceptance unless it provides for a cash 

bonus in the amount of $25 or more per 

acre or fraction thereof for blocks in 

water depths of less than 400 meters, or 

$37.50 or more per acre or fraction 

thereof for blocks in water depths of 400 

meters or deeper; to confirm the exact 

calculation of the minimum bonus bid 

amount for each block, see ‘‘List of 

Blocks Available for Leasing’’ which is 

contained in the Final NOS 208 

Package. Please note that bonus bids 

must be in whole dollar amounts (i.e., 

any cents will be disregarded by the 

MMS). 

Rental Rates: Rentals for leases issued 

in this sale are to be paid at the rental 

rates summarized in the following table 

on or before the 1st day of each lease 

year until determination of well 

producibility is made, then at the 

expiration of each lease year until the 

start of royalty-bearing production. 

SALE 208 RENTAL RATES PER ACRE OR FRACTION THEREOF

Water depth in meters Years 1–5 Years 6, 7, & 8 Years 9–10 

0 to <200 .................................................... $7.00 $14.00, $21.00, & $28.00 (if a lease extension is approved) ................ N/A 

200 to <400 ................................................ 11.00 $22.00, $33.00, & $44.00 (if a lease extension is approved) ................ N/A 

400 to <800 ................................................ 11.00 $16.00 (if exploratory well drilled per 30 CFR 256.37) .......................... N/A 

800+ ............................................................ 11.00 $16.00 ..................................................................................................... $16.00 


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Escalating Rental Rates for leases with 

an approved extension of the initial 5- 

year period: Any lease in water depths 

less than 400 meters and granted a 3- 

year extension beyond the 5-year initial 

period as provided above will pay an 

escalating rental rate as indicated in the 

previous table and as set out in the 

following table, to be paid on or before 

the 1st day of each lease year until 

determination of well producibility is 

made, then at the expiration of each 

lease year until the start of royaltybearing production. However, the 

escalating rental rates after the 5th year 

for blocks in up to 400 meters will 

become fixed and no longer escalate if 

another well is spudded during the 3- 

year extended term of the lease that 

targets hydrocarbons below 25,000 feet 

TVD SS, and MMS concurs that this has 

occurred. 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. 

Extended lease year No. Escalating annual rental rate for a lease in: less than a 

200–meter water depth 

Escalating annual rental rate for a lease in a: 200– to 

less than 400–meter water depth 

6 ........................................... $14.00 per acre or fraction thereof ................................. $22.00 per acre or fraction thereof. 

7 ........................................... $21.00 per acre or fraction thereof ................................. $33.00 per acre or fraction thereof. 

8 ........................................... $28.00 per acre or fraction thereof ................................. $44.00 per acre or fraction thereof. 

Royalty Rate: 183⁄4 percent royalty 

rate for blocks in all water depths, 

except during periods of royalty 

suspension, to be paid monthly on the 

last day of the month following the 

month during which the production is 

obtained. 

Minimum Royalty: $7.00 per acre or 

fraction thereof per year for blocks in 

water depths of less than 200 meters 

and $11.00 per acre or fraction thereof 

per year for blocks in water depths of 

200 meters or deeper regardless of the 

year of the lease and notwithstanding 

any royalty relief volume. Minimum 

royalty is to be paid at the expiration of 

each lease year beginning in the year in 

which royalty bearing production 

commences, and continuing thereafter 

regardless of either the lease year or 

whether any royalty suspension may 

apply. A credit will be applied for any 

actual royalty paid on the lease during 

the lease year in which minimum 

royalty is owed on the lease. If the 

actual royalty paid on the lease for a 

given lease year exceeds the minimum 

royalty otherwise owed, then no 

minimum royalty payment is due. 

Royalty Suspension Provisions: Leases 

with royalty suspension volumes (RSV), 

are authorized under existing MMS 

rules at 30 CFR Parts 203 and 260. There 

are no circumstances under which a 

single lease could receive a royalty 

suspension both for deep gas production 

and for deepwater production. 

Section 344 of the EPAct05 extends 

existing deep gas incentives in two 

ways. First, it mandates a RSV of at least 

35 billion cubic feet of natural gas for 

certain wells completed in a drilling 

depth category (20,000 feet TVD SS or 

deeper) for leases in 0 to less than 400 

meters of water. Second, section 344 

directs that RSV’s no lower than those 

in shallower water (prior to the 

application of price thresholds) be 

applied to leases in 200 to less than 400 

meters of water. Section 345 of the 

Energy Policy Act of 2005 (EPAct05) 

directs continuation of the MMS 

deepwater incentive program utilized 

since 2001 in the GOM for leases issued 

between August 8, 2005, and August 8, 

2010, and provides for an increase in 

RSV from 12 million barrels of oil 

equivalent (MMBOE) to 16 MMBOE for 

leases in water depths greater than 2,000 

meters. 

Deep Gas Royalty Suspensions 

A lease issued as a result of this sale 

may be eligible for royalty relief for 

deep and ultra-deep wells mandated by 

section 344 of EPAct 05. The MMS 

published a final rule in the November 

18, 2008, Federal Register (73 FR 

69490), Royalty Relief—Ultra-Deep Gas 

Wells and Deep Gas Wells on Leases in 

the Gulf of Mexico (Incentives for 

Natural Gas Production from Deep 

Wells in the Shallow Waters of the 

GOM) implementing section 344 of 

EPAct05. If a lease is eligible, it is 

subject to the provisions of this rule, 

including the price threshold 

provisions. The royalty relief is in the 

form of the Royalty Suspension 

Provisions cited below. 

A. The Following Royalty Suspension 

Provisions Apply To Qualifying Deep 

Wells on Leases at Least Partly in Water 

Depths Up to 200 Meters 

Such wells require a perforated 

interval the top of which is from 15,000 

to less than 20,000 feet TVD SS. 

Suspension volumes, conditions, and 

requirements prescribed in 30 CFR 

203.41 through 203.47 and any 

amendments or successor regulations 

apply to deep gas production from a 

lease in this water depth range issued as 

a result of this sale. Definitions that 

apply to this category of royalty relief 

are found in 30 CFR 203.0. To receive 

this category of royalty relief, 

production from a qualified well or 

drilling of a certified unsuccessful well 

must commence before May 3, 2009. 

B. The Following Royalty Suspension 

Provisions Apply To Qualifying Deep 

Wells on Leases Entirely in Water 

Depths More Than 200 But Less Than 

400 Meters 

Such wells require a perforated 

interval the top of which is from 15,000 

to less than 20,000 feet TVD SS. The 

EPAct05 requires granting RSV to leases 

entirely in water depths more than 200 

but less than 400 meters that will be 

calculated using the same methodology 

as is currently employed for leases at 

least partly in water depth up to 200 

meters. Deep wells on leases in the 200 

to less than 400 meter water depth range 

issued in Sale 208 are eligible for 

royalty relief as prescribed in the final 

rule (73 FR 69490) implementing 

section 344 of the EPAct05. 

C. The Following Royalty Suspension 

Provisions Apply To Qualifying Ultra 

Deep Wells on Leases Entirely in Water 

Depths Less Than 400 Meters 

Ultra deep wells (i.e., wells completed 

with a perforated interval the top of 

which is 20,000 feet TVD SS or deeper) 

on leases entirely in water depths less 

than 400 meters issued in Sale 208 are 

eligible for the royalty relief as 

prescribed in the final rule (73 FR 

69490) implementing section 344 of the 

EPAct05. 

Deepwater Royalty Suspensions 

The following Royalty Suspension 

Provisions apply to deepwater oil and 

gas production: 

A lease issued as a result of this sale 

may be eligible for deepwater royalty 

relief mandated by section 345 of 

EPAct05. The following Royalty 

Suspension Provisions for deepwater oil 

and gas production apply to a lease 

issued as a result of this sale. These 

provisions are similar to, and mean the 

same as the language used in recent 

sales except for some clarifying text and 

updated examples. In addition to these 

provisions, and the EPAct05, refer to 30 


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CFR 218.151 and applicable provisions 

of sections 260.120–260.124 for 

regulations on how royalty suspensions 

relate to field assignment, product 

types, rental obligations, and 

supplemental royalty relief. 

1. A lease in water depths of 400 

meters or more will receive a royalty 

suspension as follows, according to the 

water depth range in which the lease is 

located: 

400 meters to less than 800 meters: 5 

MMBOE800. 

800 meters to less than 1,600 meters: 

9 MMBOE. 

1,600 meters to 2,000 meters: 12 

MMBOE. 

Greater than 2,000 meters: 16 

MMBOE. 

2. In any calendar year during which 

the arithmetic average of the daily 

closing prices for the nearby delivery 

month on the New York Mercantile 

Exchange (NYMEX) for the applicable 

product exceeds the adjusted product 

price threshold, the lessee must pay 

royalty on production that would 

otherwise receive royalty relief under 30 

CFR Part 260 or supplemental relief 

under 30 CFR Part 203, and such 

production will count towards the RSV. 

(a) The base level price threshold for 

light sweet crude oil is $36.39 per barrel 

in 2007. The adjusted oil price 

threshold in any subsequent calendar 

year is computed by changing the price 

threshold applicable in the immediately 

preceding calendar year by the 

percentage by which the implicit price 

deflator for the gross domestic product 

has changed during the calendar year. 

(b) The base level price threshold for 

natural gas is $4.55 per million British 

thermal units (MMBTU) in 2007. The 

adjusted gas price threshold in any 

subsequent calendar year is computed 

by changing the price threshold 

applicable in the immediately preceding 

calendar year by the percentage by 

which the implicit price deflator for the 

gross domestic product has changed 

during the calendar year. 

(c) As an example, if the implicit 

price deflator indicates that inflation is 

3 percent in 2008, then the price 

threshold in calendar year 2008 would 

become $37.48 per barrel for oil and 

$4.69 for gas. Therefore, royalty on oil 

production in calendar year 2008 would 

be due if the average of the daily closing 

prices for the nearby delivery month on 

the NYMEX in 2008 exceeds $37.48 per 

barrel, and royalty on gas production in 

calendar year 2008 would be due if the 

average of the daily closing prices for 

the nearby delivery month on the 

NYMEX in 2008 exceeds $4.69 per 

MMBTU. 

(d) The MMS provides notice in 

March of each year when adjusted price 

thresholds for the preceding year were 

exceeded. Once this determination is 

made, based on the then-most-recent 

implicit price deflator information, it 

will not be revised regardless of any 

subsequent adjustments in the implicit 

price deflator published by the U.S. 

Government for the preceding year. 

Information on price thresholds is 

available at the MMS Web site at: 

http://www.mms.gov/econ/. 

(e) In cases where the actual average 

price for the product exceeds the 

adjusted price threshold in any calendar 

year, royalties must be paid no later 

than 90 days after the end of the year 

(see 30 CFR 260.122(b)(2) for more 

detail) and royalties must be paid 

provisionally in the following calendar 

year (see 30 CFR 260.122(c) for more 

detail). 

(f) Full royalties are owed on all 

production from a lease after the RSV is 

exhausted, beginning on the first day of 

the month following the month in 

which the RSV is exhausted. 

Lease Stipulations: The map ‘‘Final, 

Central Planning Area, Lease Sale 208, 

March 18, 2009, Stipulations and 

Deferred Blocks’’ depicts the blocks on 

which one or more of 13 lease 

stipulations apply: (1) Topographic 

Features; (2) Live Bottoms; (3) Military 

Areas; (4) Evacuation; (5) Coordination; 

(6) Blocks South of Baldwin County, 

Alabama; (7) Law of the Sea Convention 

Royalty Payment; (8) Protected Species; 

(9) Limitation on Use of Seabed and 

Water Column in the Vicinity of the 

Approved Port Pelican Offshore 

Liquefied Natural Gas (LNG) Deepwater 

Port Receiving Terminal, Vermilion 

Area, Blocks 139 and 140; (10) Below 

Seabed Operations on Mississippi 

Canyon, Block 920; (11) Limitation on 

Use of Seabed and Water Column in the 

Vicinity of the Approved Gulf Landing 

Offshore LNG Deepwater Port Receiving 

Terminal, West Cameron Area, Block 

213; (12) Below Seabed Operations on a 

Portion of Mississippi Canyon, Block 

650 and (13) Below Seabed Operations 

on a Portion of Walker Ridge, Blocks 

293 and 294. 

The texts of the stipulations are 

contained in the document ‘‘Lease 

Stipulations, Central Planning Area, Oil 

and Gas Lease Sale 208, Final Notice of 

Sale’’ included in the Final NOS 208 

Package. In addition, the ‘‘List of Blocks 

Available for Leasing’’ contained in the 

Final NOS 208 Package identifies for 

each block listed the lease stipulations 

applicable to that block. 

Information to Lessees: The Final 

NOS 208 Package contains an 

‘‘Information to Lessees’’ document that 

provides detailed information on certain 

specific issues pertaining to this 

proposed oil and gas lease sale. 

Method of Bidding: For each block bid 

upon, a bidder must submit a separate 

signed bid in a sealed envelope labeled 

‘‘Sealed Bid for Oil and Gas Lease Sale 

208, not to be opened until 9 a.m., 

Wednesday, March 18, 2009.’’ The 

submitting company’s name, its GOM 

company number, the map name, map 

number, and block number should be 

clearly identified on the outside of the 

envelope. 

Please refer to the sample bid 

envelope included within the Final 

NOS 208 Package. The total amount of 

the bid must be in a whole dollar 

amount; any cent amount above the 

whole dollar will be ignored by the 

MMS. Details of the information 

required on the bid(s) and the bid 

envelope(s) are specified in the 

document ‘‘Bid Form and Envelope’’ 

contained in the Final NOS 208 

Package. A blank bid form has been 

provided for your convenience which 

may be copied and filled in. 

Please also refer to the Telephone 

Numbers/Addresses of Bidders Form 

included within the Final NOS 208 

Package. We are requesting that you 

provide this information in the format 

suggested for each lease sale. Please 

provide this information prior to or at 

the time of bid submission. Do not 

enclose this form inside the sealed bid 

envelope. 

The MMS published in the Federal 

Register a list of restricted joint bidders, 

which applies to this lease sale, at 73 FR 

59649 on October 9, 2008. Please also 

refer to joint bidding provisions at 30 

CFR 256.41 for additional information. 

All bidders must execute all documents 

in conformance with signatory 

authorizations on file in the MMS Gulf 

of Mexico Region Adjudication Unit. 

Designated signatories must be 

authorized to bind their respective legal 

business entities (e.g., a corporation, 

partnership, or LLC) and must have an 

incumbency certificate setting forth the 

authorized signatories on file with the 

GOM Region Adjudication Office. 

Bidders submitting joint bids must 

include on the bid form the 

proportionate interest of each 

participating bidder, stated as a 

percentage, using a maximum of five 

decimal places (e.g., 33.33333 percent). 

The MMS may require bidders to submit 

other documents in accordance with 30 

CFR 256.46. The MMS warns bidders 

against violation of 18 U.S.C. 1860 

prohibiting unlawful combination or 

intimidation of bidders. Bidders are 

advised that the MMS considers the 

signed bid to be a legally binding 


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Federal Register / Vol. 74, No. 9 / Wednesday, January 14, 2009 / Notices 2097 

obligation on the part of the bidder(s) to 

comply with all applicable regulations, 

including payment of the one-fifth 

bonus bid amount on all high bids. A 

statement to this effect must be included 

on each bid (see the document ‘‘Bid 

Form and Envelope’’ contained in the 

Final NOS 208 Package). 

Withdrawal of Bids: Once submitted, 

bid(s) may not be withdrawn unless the 

RD receives a written request for 

withdrawal from the company who 

submitted the bid(s), prior to 10 a.m. on 

Tuesday, March 17, 2009. This request 

must be typed on company letterhead 

and must contain the submitting 

company’s name, its company number, 

the map name/number and block 

number of the bid(s) to be withdrawn. 

The request must be in conformance 

with signatory authorizations on file in 

the MMS Gulf of Mexico Region 

Adjudication Office. Signatories must be 

authorized to bind their respective legal 

business entities (e.g., a corporation, 

partnership, or LLC) and must have an 

incumbency certificate setting forth the 

authorized signatories on file with the 

MMS GOM Region Adjudication Office. 

The name and title of said signatory 

must be typed under the signature block 

on the withdrawal letter. Upon the RD’s, 

or his designee’s, approval of such 

requests, he will indicate his approval 

by affixing his signature and date to the 

submitting company’s request for 

withdrawal. 

Rounding: The following procedure 

must be used to calculate the minimum 

bonus bid, annual rental, and minimum 

royalty: Round up to the next whole 

acre if the block acreage contains a 

decimal figure prior to calculating the 

minimum bonus bid, annual rental, and 

minimum royalty amounts. The 

appropriate rate per acre is applied to 

the whole (rounded up) acreage. The 

bonus bid must be in whole dollar 

amounts (i.e., any cents will be 

disregarded by the MMS) and greater 

than or equal to the minimum bonus 

bid. The appropriate minimum bid per 

acre rate is applied to the whole 

(rounded up) acreage and the resultant 

calculation is rounded up to the next 

whole dollar amount if the calculation 

results in any cents. The minimum 

bonus bid calculation, including all 

rounding, is shown in the document 

‘‘List of Blocks Available for Leasing’’ 

included in the Final NOS 208 Package. 

Bonus Bid Deposit: Each bidder 

submitting an apparent high bid must 

submit a bonus bid deposit to the MMS 

equal to one-fifth of the bonus bid 

amount for each such bid. All payments 

must be electronically deposited into an 

interest-bearing account in the U.S. 

Treasury (account information provided 

in the Electronic Funds Transfer (EFT) 

instructions) by 11 a.m. Eastern Time 

the day following bid reading. Under 

the authority granted by 30 CFR 

256.46(b), the MMS requires bidders to 

use electronic funds transfer procedures 

for payment of one-fifth bonus bid 

deposits for Lease Sale 208, following 

the detailed instructions contained in 

the document ‘‘Instructions for Making 

EFT Bonus Payments,’’ which can be 

found on the MMS Web site at: http:// 

www.gomr.mms.gov/homepg/lsesale/ 

208/cgom208.html. Such a deposit does 

not constitute and shall not be 

construed as acceptance of any bid on 

behalf of the United States. If a lease is 

awarded, however, MMS requests that 

only one transaction be used for 

payment of the four-fifths bonus bid 

amount and the first year’s rental. 

Please note: Certain bid submitters (i.e., 

those that are NOT currently an OCS mineral 

lease record titleholder or designated 

operator OR those that have ever defaulted 

on a one-fifth bonus bid payment (EFT or 

otherwise)) are required to guarantee (secure) 

their one-fifth bonus bid payment prior to the 

submission of bids. For those who must 

secure the EFT one-fifth bonus bid payment, 

one of the following options may be used: (1) 

Provide a third-party guarantee; (2) amend 

bond coverage; (3) provide a letter of credit; 

or (4) provide a lump sum payment in 

advance via EFT. The EFT instructions 

specify the requirements for each option. 

Withdrawal of Blocks: The United 

States reserves the right to withdraw 

any block from this 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. In any 

case, no bid will be accepted, and no 

lease for any block will be awarded to 

any bidder, unless the bidder has 

complied with all requirements of this 

Notice, including the documents 

contained in the associated Final NOS 

208 Package and applicable regulations; 

the bid is the highest valid bid; and the 

amount of the bid has been determined 

to be adequate by the authorized officer. 

Any bid submitted which does not 

conform to the requirements of this 

Notice, the Act, and other applicable 

regulations may be returned to the 

bidder submitting that bid by the RD 

and not considered for acceptance. The 

Attorney General may also review the 

results of the lease sale prior to the 

acceptance of bids and issuance of 

leases. To ensure that the Government 

receives a fair return for the conveyance 

of lease rights for this lease sale, high 

bids will be evaluated in accordance 

with MMS bid adequacy procedures. A 

copy of current procedures, 

‘‘Modifications to the Bid Adequacy 

Procedures’’ at 64 FR 37560 on July 12, 

1999, can be obtained from the MMS 

Gulf of Mexico Region Public 

Information Unit or via the MMS Gulf 

of Mexico Region Internet Web site at: 

http://www.gomr.mms.gov/homepg/ 

lsesale/bidadeq.html. 

Successful Bidders: As required by 

the MMS, each company that has been 

awarded a lease must execute all copies 

of the lease (Form MMS–2005 (March 

1986) as amended), pay by EFT the 

balance of the bonus bid amount and 

the first year’s rental for each lease 

issued in accordance with the 

requirements of 30 CFR 218.155; and 

satisfy the bonding requirements of 30 

CFR 256, subpart I, as amended. 

Also, in accordance with regulations 

at 2 CFR Parts 180 and 1400, the lessee 

shall comply with the U.S. Department 

of the Interior’s nonprocurement 

debarment and suspension 

requirements, and agrees to 

communicate this requirement to 

comply with these regulations to 

persons with whom the lessee does 

business as it relates to this lease by 

including this term as a condition to 

enter into their contracts and other 

transactions. 

Affirmative Action: The MMS 

requests that, prior to bidding, Equal 

Opportunity Affirmative Action 

Representation Form MMS 2032 (June 

1985) and Equal Opportunity 

Compliance Report Certification Form 

MMS 2033 (June 1985) be on file in the 

MMS Gulf of Mexico Region 

Adjudication Unit. This certification is 

required by 41 CFR Part 60 and 

Executive Order No. 11246 of 

September 24, 1965, as amended by 

Executive Order No. 11375 of October 

13, 1967. In any event, prior to the 

execution of any lease contract, both 

forms are required to be on file in the 

MMS Gulf of Mexico Region 

Adjudication Unit. 

Geophysical Data and Information 

Statement: Pursuant to 30 CFR 251.12, 

the MMS has a right to access 

geophysical data and information 

collected under a permit in the OCS. 

Every bidder submitting a bid on a block 

in Sale 208, or participating as a joint 

bidder in such a bid, must submit a 

Geophysical Data and Information 

Statement (GDIS) identifying any 

enhanced or reprocessed geophysical 

data and information generated or used 

as part of the decision to bid or 

participate in a bid on the block. The 

data identified in the GDIS should 

clearly identify whether the data or 

information are non-exclusive data sets 

available from geophysical contractors 

or exclusive data specially processed for 


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2098 Federal Register / Vol. 74, No. 9 / Wednesday, January 14, 2009 / Notices 

or by bidders. In addition, the GDIS 

should clearly identify the data type 

(2–D or 3–D, pre-stack or post-stack and 

time or depth); data extent (i.e., number 

of line miles for 2D or number of blocks 

for 3D) and migration algorithm of the 

data and information. The statement 

must also include the name and phone 

number of a contact person, and an 

alternate, who are both knowledgeable 

about the information and data listed 

and available for 30 days post-sale, the 

processing company, date processing 

completed, owner of the original data, 

original data survey name and permit 

number. The MMS reserves the right to 

query about alternate data sets and to 

quality check and compare the listed 

and alternative data sets to determine 

which data set most closely meets the 

needs of the fair market value 

determination process. 

The statement must also identify each 

block upon which a bidder bid, or 

participated in a bid, but for which it 

did not use processed or reprocessed 

pre- or post-stack geophysical data and 

information as part of the decision to 

bid or to participate in the bid. The 

GDIS must be submitted, even if no 

enhanced geophysical data and 

information were used for bid 

preparation of the tract. 

In the event your company supplies 

any type of data to the MMS, in order 

to get reimbursed, your company must 

be registered with the Central Contractor 

Registration (CCR) provided via Web 

site at: http://www.ccr.gov. This is a 

requirement that was implemented on 

October 1, 2003, and requires all entities 

doing business with the Government to 

complete a business profile in CCR and 

update it annually. Payments are made 

electronically based on the information 

contained in CCR. Therefore, if your 

company is not actively registered in 

CCR, the MMS will not be able to 

reimburse or pay your company for any 

data supplied. 

Please also refer to the Final NOS 208 

Package for more detail concerning 

submission of the GDIS, making the data 

available to the MMS following the 

lease sale, preferred format, 

reimbursement for costs, and 

confidentiality. 

Force Majeure: The Regional Director 

of the MMS Gulf of Mexico Region has 

the discretion to change any date, time, 

and/or location specified in the Final 

NOS 208 Package in case of a force 

majeure event which the Regional 

Director deems may interfere with the 

carrying out of 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 (504) 736–0557 or 

access our Web site at: http:// 

www.gomr.mms.gov for information 

about any changes. 

Dated: January 6, 2009. 

Randall B. Luthi, 

Director, Minerals Management Service. 

[FR Doc. E9–695 Filed 1–13–09; 8:45 am] 

BILLING CODE 4310–MR–P 

INTERNATIONAL TRADE 

COMMISSION 

[Inv. No. 337–TA–624] 

In the Matter of: Certain Systems for 

Detecting and Removing Viruses or 

Worms, Components Thereof, and 

Products Containing Same; Notice of a 

Commission Determination Not To 

Review an Initial Determination 

Terminating the Investigation Based 

on a Cross-Licensing Agreement 

AGENCY: U.S. International Trade 

Commission. 

ACTION: Notice. 

SUMMARY: Notice is hereby given that 

the U.S. International Trade 

Commission has determined not to 

review an initial determination (‘‘ID’’) 

(Order No. 26) of the presiding 

administrative law judge (‘‘ALJ’’) 

terminating the above-captioned 

investigation based on a cross-licensing 

agreement. 

FOR FURTHER INFORMATION CONTACT: 

Clint Gerdine, Esq., telephone 202–708– 

2310, Office of the General Counsel, 

U.S. International Trade Commission, 

500 E Street, SW., Washington, DC 

20436. Copies of all nonconfidential 

documents filed in connection with this 

investigation are or will be available for 

inspection during official business 

hours (8:45 a.m. to 5:15 p.m.) in the 

Office of the Secretary, U.S. 

International Trade Commission, 500 E 

Street, SW., Washington, DC 20436, 

telephone 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 investigation 

may be viewed on the Commission’s 

electronic docket (EDIS) at http:// 

edis.usitc.gov. Hearing-impaired 

persons are advised that information on 

the matter can be obtained by contacting 

the Commission’s TDD terminal on 202– 

205–1810. 

SUPPLEMENTARY INFORMATION: The 

Commission instituted this investigation 

on December 31, 2007, based on a 

complaint filed on November 21, 2007, 

by Trend Micro Incorporated (‘‘Trend 

Micro’’) of Cupertino, California. 72 FR 

74329–30. The complaint alleges 

violations of section 337 of the Tariff 

Act of 1930 (19 U.S.C. 1337) in the 

importation into the United States, the 

sale for importation, and the sale within 

the United States after importation of 

certain systems for detecting and 

removing viruses or worms, components 

thereof, and products containing same 

by reason of infringement of claims 2 

and 4–22 of U.S. Patent No. 5,623,600 

(‘‘the ’600 patent’’). The complaint 

named three respondents: Barracuda 

Networks, Inc. of Campbell, CA 

(‘‘Barracuda’’); Panda Software 

International S.L. of Spain; and Panda 

Distribution, Inc. of Glendale, CA 

(collectively ‘‘Panda’’). The complaint 

further alleged that an industry in the 

United States exists as required by 

subsection (a)(2) of section 337. 

On March 14, 2008, the Commission 

issued notice of its determination not to 

review an ID granting Trend Micro’s and 

Panda’s joint motion to terminate the 

investigation as to Panda on the basis of 

a settlement agreement. On July 11, 

2008, the Commission issued notice of 

its determination not to review an ID 

granting Trend Micro’s motion to 

terminate the investigation in part on 

the basis of withdrawal of claims 2, 5– 

8, 12, 16–17, 20, and 22 of the ’600 

patent. On September 29, 2008, the 

Commission issued notice of its 

determination not to review an ID 

granting Trend Micro’s motion to 

terminate the investigation in part on 

the basis of withdrawal of claims 14, 

and 18–19 of the ’600 patent. 

On October 16, 2008, Trend Micro 

and Barracuda filed a joint motion to 

terminate the investigation on the basis 

of a cross-licensing agreement. 

The ALJ issued the subject ID on 

December 10, 2008, granting the joint 

motion to terminate. No party petitioned 

for review of the ID pursuant to 19 CFR 

210.43(a), and the Commission found no 

basis for ordering a review on its own 

initiative pursuant to 19 CFR 210.44. 

The Commission has determined not to 

review the ID, and to terminate the 

investigation in its entirety. 

The authority for the Commission’s 

determination is contained in section 

337 of the Tariff Act of 1930, as 

amended (19 U.S.C. 1337), and in 

sections 210.21(a) and 210.42(h)(3) of 

the Commission’s Rules of Practice and 

Procedure (19 CFR 210.21(a), 

210.42(h)(3)). 

By order of the Commission. 


sroberts on PROD1PC70 with NOTICES