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notice of OCS lease sale published in the FEDERAL REGISTER.

(C) Royalty payment calculation. (1) The royalty rate utilized in the calculation of royalty payments is based on an adjusted value of production, and is established through application of a sliding scale formula or a schedule to the adjusted value of production.

(2) The adjusted value of production shall be determined by applying an inflation factor to the actual value of production.

(3) The established royalty rate is applied to the actual value of production, which results in the determination of amount in dollars to be paid to the United States by the person awarded the lease or the amount of royalty oil and gas to be taken in kind by the United States.

(4) The production period for purposes of determining value of production shall be stated in the notice of OCS lease sale that is published in the FEDERAL REGISTER. The inflation factor utilized shall be based on the gross national product fixed weighted price index that is first published in the Survey of Current Business by the Bureau of Economic Analysis, U.S. Department of Commerce, for a calendar period corresponding to a production period. The procedures for making the inflation adjustment shall be stated in the notice of OCS lease sale published in the FEDERAL REGISTER.

(ii) The amount of cash bonus to be paid is determined by the qualified bidder submitting the bid. Any deferment and the schedule of payments shall be included in the notice of OCS lease sale published in the FEDERAL REGISTER.

(iii) The annual rental to be paid by the highest responsible qualified bidder shall be the amount specified in the notice of OCS lease sale published in the FEDERAL REGISTER.

(4) Cash bonus bid with a fixed share of the net profits of no less than 30 per centum to be derived from the production of oil and gas from the lease area and a fixed annual rental-(i) Net profit share payment calculation. The amount of the net profit share pay. ment to the United States by the person awarded the lease shall be determined for each month by multiply

ing the net profit share base times the net profit share rate, in accordance with § 220.022.

(A) Net profit share base. (1) The net profit share base shall be calculated in accordance with $ 220.021. (2) The capital recovery

factor needed to calculate the allowance for capital recovery, in accordance with $ 220.020, shall be specified in the notice of OCS lease sale published in the FEDERAL REGISTER and may vary from tract to tract.

(B) Net profit share rate. The net profit share rate, which determines the fixed share of the net profits owed to the United States, shall be a percentage that is specified in the notice of OCS lease sale published in the FEDERAL REGISTER. Such net profit share rate shall not be less than 30 percent of the net profit share base and may vary from tract to tract,

(ii) The amount of cash bonus to be paid is determined by the person submitting the bid. Any deferment and the schedule of payments shall be included in the notice of OCS lease sale published in the FEDERAL REGISTER.

(iii) The annual rental to be paid by the person awarded the lease shall be the amount specified in the notice of OCS lease sale published in the FEDERAL REGISTER.

(b) The value basis for determining the actual value of production and for purposes of computing royalty in accordance with the bidding systems established by paragraph (a) of this section shall be as described in 30 CFR 206.102, 206.152, and 206.153; Provided, however, That with respect to oil, the first sale of which is controlled under 10 CFR part 212, the value shall not exceed the lawful first sale price of such oil; and Provided further, That with respect to gas, the value shall not exceed the sale price established by the Federal Energy Regulatory Commission.

(c) MMS may, by rule, add to or modify the bidding systems listed in paragraph (a) of this section, in accordance with the procedural requirements of OCSLA, 43 U.S.C. 1331 et seq., as amended by Pub. L. 95-372, 92 Stat. 629.

(45 FR 9539, Feb. 12, 1980, as amended at 45 FR 36800, May 30, 1980; 46 FR 29689, June 2, 1981; 46 FR 35625, July 9, 1981. Redesignated at 48 FR 1182, Jan. 11, 1983, and amended at 48 FR 24874, June 3, 1983; 56 FR 23648, May 23, 1991)

determines that the maximum and minimum per centum limitations set forth in this section are inconsistent with the purposes and policies of the OCSLA.

(45 FR 9539, Feb. 12, 1980. Redesignated and amended at 48 FR 1182, Jan. 11, 1983)

Subpart C-[Reserved]

Subpart D-Joint Bidding

SOURCE: 45 FR 62031, Sept. 18, 1980, unless otherwise noted. Redesignated at 48 FR 1182, Jan. 11, 1983.

8 260.301 Purpose.

The purpose of the regulations in this subpart D is to encourage participation in OCS oil and gas lease sales by limiting the requirement for filing Statements of Production to certain joint bidders.

$ 260.302 Definitions.

For purposes of this subpart D, all the terms used shall be defined as in 30 CFR 256.38.

260.111. Criteria for selection of bidding

systems and bidding system compo

nents. (a) In analyzing the application of one of the bidding systems listed in $ 260.110(a) to tracts selected for any OCS lease sale, MMS may, in its discretion, consider the following purposes and policies, recognizing that each of the purposes and policies may not be specifically applicable to the selection process for a particular bidding system and tract or may present a conflict that will have to be resolved in the process of bidding system selection, and that the order of listing does not denote a ranking:

(1) Providing fair return to the Federal Government;

(2) Increasing competition; (3) Assuring competent and safe operations;

(4) Avoiding undue speculation;

(5) Avoiding unnecessary delays in exploration, development, and production;

(6) Discovering and recovering oil and gas;

(7) Developing new oil and gas resources in an efficient and timely manner;

(8) Limiting administrative burdens on Government and industry; and

(9) Providing an opportunity to experiment with various bidding systems to enable the identification of those that are the most appropriate for the satisfaction of the objectives of the United States in OCS lease sales.

(b) In performing the analysis referred to in paragraph (a), MMS may, in its discretion, take into account the following in relation to their impact upon the purposes and policies enumerated in paragraph (a) of this section.

(c) The bidding systems listed in $ 260.110(a) (2) and (3) shall be applied to not less than 20 per centum and not more than 60 per centum of the total area offered for leasing each year during the five-year period commencing on September 18, 1978, unless DOI

§ 260.303 Joint bidding requirements.

(a) Any person who submits a joint bid for any OCS oil and gas lease during a six-month bidding period and who was chargeable for the prior production period with an average daily production in excess of 1.6 million barrels of crude oil, natural gas equiva. lents, and liquefied petroleum products, shall have filed a Statement of Production with the Director, MMS, in accordance with the requirements of 30 CFR 256.38. The Statement of Production shall state that the person filing the Statement is chargeable for the prior production period with an average daily production in excess of 1.6 million barrels of crude oil, natural gas equivalents, and liquefied petroleum products.

(b) No person chargeable for the prior production period with an average daily production in excess of 1.6 million barrels of crude oil, natural gas equivalents, and liquefied petroleum products may submit a joint bid for any OCS oil and gas lease during the applicable six-month bidding period with any other person similarly

means

chargeable. Such bids shall be dis- 8 270.3 Definitions. qualified and rejected.

As used in this part, the following (c) No person may submit any bid terms shall have the meanings given during the applicable six-month bid

below: ding period pursuant to any agree- Contract means any business agreement, the terms of which would result

ment or arrangement (in which the in two or more persons, each chargea

parties do not stand in the relation. ble for the prior production period ship of employer and employee) bewith an average daily production in tween a lessee and any person which excess of 1.6 million barrels of crude creates an obligation to provide goods, oil, natural gas equivalents, and lique- services, facilities, or property. fied petroleum products, acquiring or Lessee means the party authorized holding any interest in the tract for by a lease, grant of right-of-way, or an which the bid is submitted. Such bids approved assignment thereof to exshall be disqualified and rejected.

plore, develop, produce, or transport

oil, gas, or other minerals or materials PART 270—NONDISCRIMINATION IN

in the OCS pursuant to the Act and

this part. THE OUTER CONTINENTAL SHELF

Person means a person or company,

including but not limited to, a corporaSec.

tion, partnership, association, joint 270.1 Purpose.

stock venture, trust, mutual fund, or 270.2 Application of this part.

any receiver, trustee in bankruptcy, or 270.3 Definitions.

other official acting in a similar capac270.4 Discrimination prohibited.

ity for such company. 270.5 Complaint.

Subcontract

any business 270.6 Process.

agreement or arrangement (in which 270.7 Remedies.

the parties do not stand in the relaAUTHORITY: Sec. 604, Pub. L. 95-372, 92 tionship of employer and employee) Stat. 695 (43 U.S.C. 1863).

between a lessee's contractor and any SOURCE: 50 FR 21048, May 22, 1985, unless person other than a lessee that is in otherwise noted.

any way related to the performance of

any one or more contracts. $ 270.1 Purpose. The purpose of this part is to imple

$ 270.4 Discrimination prohibited. ment the provisions of section 604 of No contract or subcontract to which the OSCLAA of 1978 which provides this part applies shall be denied to or that “no person shall, on the grounds

withheld from any person

the of race, creed, color, national origin, or grounds of race, creed, color, national sex, be excluded from receiving or par

origin, or sex. ticipating in any activity, sale, or em

$ 270.5 Complaint. ployment, conducted pursuant to the provisions of ... the Outer Continen

(a) Whenever any person believes tal Shelf Lands Act."

that he or she has been denied a con

tract or subcontract to which this part $ 270.2 Application of this part.

applies on the grounds of race, creed,

color, national origin, or sex, such This part applies to any contract or

person may complain of such denial or subcontract entered into by a lessee or

withholding to the Regional Director by a contractor or subcontractor of a

of the OCS Region in which such lessee after the effective date of these

action is alleged to have occurred. Any regulations to provide goods, services,

complaint filed under this part must facilities, or property in an amount of be submitted in writing to the appro$10,000 or more in connection with

priate Regional Director not later any activity related to the exploration than 180 days after the date of the alfor or development and production of leged unlawful denial of a contract or oil, gas, or other minerals or materials subcontract which is the basis of the in the OCS under the Act.

complaint.

on

PART 280—PROSPECTING FOR MIN

ERALS OTHER THAN OIL, GAS, AND SULPHUR IN THE OUTER CONTINENTAL SHELF

(b) The complaint referred to in paragraph (a) of this section shall be accompanied by such evidence as may be available to a person and which is relevant to the complaint including affidavits and other documents.

(c) Whenever any person files a complaint under this part, the Regional Director with whom such complaint is filed shall give written notice of such filing to all persons cited in the complaint no later than 10 days after receipt of such complaint. Such notice shall include a statement describing the alleged incident of discrimination, including the date and the names of persons involved in it.

Sec. 280.0 Authority for information collection. 280.1 Purpose and applicability. 280.2 Definitions. 280.3 Activities requiring a permit. 280.4 Term of permit. 280.5 Application for a prospecting or sci

entific research permit. 280.6 Prospecting or scientific research

plan. 280.7 Obligations of persons. 280.8 Reporting. 280.9 Recordkeeping. 280.10 Environmental effects. 280.11 Notification. 280.12 Disclosure of information to the

public. 280.13 Disclosure of data and information

to the adjacent States. 280.14 Suspension or temporary prohibi

tion of activities. 280.15 Cancellation or relinquishment. 280.16 Remedies and penalties. 280.17 Appeals.

AUTHORITY: Outer Continental Shelf Lands Act, 43 U.S.C. 1331 et seq.; National Environmental Policy Act of 1969, 42 U.S.C. 4332 et seg.

SOURCE: 53 FR 25256, July 5, 1988, unless otherwise noted.

$ 270.6 Process.

Whenever a Regional Director determines on the basis of any information, including that which may be obtained under $ 270.5 of this title, that a violation of or failure to comply with any provision of this subpart probably occurred, the Regional director shall undertake to afford the complainant and the person(s) alleged to have violated the provisions of this part an opportunity to engage in informal consultations, meetings, or any other form of communications for the purpose of resolving the complaint. In the event such communications or consultations result in a mutually satisfactory resolution of the complaint, the complainant and all persons cited in the complaint shall notify the Regional Director in writing of their agreement to such resolution. If either the complainant or the person(s) alleged to have wrongfully discriminated fail to provide such written notice within a reasonable period of time, the Regional Director shall proceed in accordance with the provisions of $ $ 250.70, 250.71, 250.72, and 250.80 of this title.

8 280.0 Authority for information collec

tion. The information collection requirements contained in part 280 have been approved by the Office of Manage. ment and Budget (OMB) under 44 U.S.C. 3501 et seq. and assigned OMB clearance number 1010-0072. The information is being collected to inform the Minerals Management Service (MMS) of OCS minerals activities. The information will be used to ensure that such activities are conducted in a safe and environmentally responsible manner in compliance with governing laws and regulations. The obligation to respond is mandatory.

8 270.7 Reme es.

In addition to the penalties available under $$ 250.81-1 and 250.80-2 of this title, the Director may invoke any other remedies available to him or her under the Act or regulations for the lessee's failure to comply with provisions of the Act, regulations, or lease.

8 280.1 Purpose and applicability.

Section 5(a) of the Act (43 U.S.C. 1334(a)(1)) states that the Secretary “* * * shall prescribe such rules and regulations ...

necessary to carry out

the provisions of the Act. The primary purpose of the regula

341-117 0-93--14

tions in this part is to prescribe policies, procedures, and requirements for conducting data and information-gathering activities associated with geologi. cal and geophysical (G&G) prospecting and scientific research in the OCS for minerals other than oil, gas, and sulphur. The regulations in this part do not apply to activities authorized under a mineral lease. Activities authorized under the regulations in this part do not give rise to any rights or interests in any OCS mineral discovered as a result of approved prospecting or scientific research activities.

8 280.2 Definitions.

When used in this part, the following terms shall have the meaning given below:

Act means the OCS Lands Act, as amended (43 U.S.C. 1331 et seq.)

Adjacent State means with respect to any activity proposed, conducted, or approved under this part, any coastal State(s)-(1) That is used, or is scheduled to be used, as a support base for G&G prospecting or scientific research activities; or (2) in which there is a reasonable probability of significant effect on land or water uses from such activity.

Archaeological resource means any prehistoric or historic district, site, building, structure, or object (including shipwrecks); such term includes artifacts, records, and remains which are related to such a district, site, building, structure, or object.

Data means G&G facts and statistics or samples which have not been analyzed, processed, or interpreted.

Director means the Director of the MMS of the U.S. Department of the Interior or an official authorized to act on the Director's behalf.

Geological and geophysical (G&G) scientific research means any investigation conducted in the OCS for scientific research purposes which involves the gathering and analysis of G&G data and information which are made available to the public for inspection and reproduction at the earliest practicable time. This does not include scientific research related to oil, gas, and sulphur.

Geological sample means a collected portion of the seabed, the subseabed,

or the overlying waters acquired while conducting prospecting or scientific research activities.

Governor means the Governor of a State or the person or entity lawfully designated to exercise the powers granted to a State Governor.

Information means G&G data that has been analyzed, processed, or interpreted.

Lease means one of the following, whichever is required by the context: Any form of authorization which is issued under section or maintained under section 6 of the Act and which authorizes exploration for, and development and production of, specific minerals or the area covered by that authorization.

Minerals has the same meaning as the term is defined in section 2(q) of the Act.

National Environmental Policy Act (NEPA) means the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).

OCS minerals means any mineral found on or below the surface of the seabed but does not include oil, gas, or sulphur.

Outer Continental Shelf (OCS) means all submerged lands lying seaward and outside of the area of lands beneath navigable waters as defined in section 2 of the Submerged Lands Act (43 U.S.C. 1301) and of which the subsoil and seabed appertain to the United States and are subject to its jurisdiction and control.

Permit means the contract or agreement, other than a lease, approved pursuant to this part under which a person acquires the right to conduct prospecting or scientific research activities.

Permittee means the person authorized by a permit issued pursuant to this part to conduct prospecting or scientific research activities in the OCS.

Person means a citizen or national of the United States; an alien lawfully admitted for permanent residency in the United States as defined in 8 U.S.C. 1101(a)(20); a private, public, or municipal corporation organized under the laws of the United States or of any State or territory thereof; and an association of such citizens, nationals, resi. dent aliens, or private, public, or mu

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