4. Bidding Systems. All bids submitted at this sale must provide for a cash bonus in the amount of $144,000 or more per bidding unit. All leases awarded will provide for a yearly rental payment of $3 per acre or fraction thereof. All leases will provide for a minimum royalty of $3 per acre or fraction thereof. A cash bonus/fixed royalty bidding system with a sulphur royalty rate of 12-1/2 percent at the mine will be employed on all bidding units offered in this sale. No royalty will be collected on salt used for operations or production purposes on the lease itself. A royalty rate of 5 percent at the mine applicable to salt produced for offsite usage will be employed on all bidding units offered in this sale.

5. Equal Opportunity. Each bidder must have submitted by the Bid Submission Deadline stated in paragraph 2, the certification required by 41 CFR 60-1.7(b) and Executive Order No. 11246 of September 24, 1965, as amended by Executive Order No. 11375 of October 13, 1967, on the Compliance Report Certification Form, Form MMS-2033 (June 1985), and the Affirmative Action Representation Form, Form MMS-2032 (June 1985). See paragraph 14(d).

6. Bid Opening. Bid opening will begin at the Bid Opening Time stated in paragraph 2. The opening of the bids is for the sole purpose of publicly announcing bids received, and no bids will be accepted or rejected at that time. If the Department is prohibited for any reason from opening any bid before midnight on the day of Bid Opening, that bid will be returned unopened to the bidder as soon thereafter as possible.

7. Deposit of Payment. Any cash, cashier's checks, certified checks, or bank drafts submitted with a bid may be deposited by the Government in an interest bearing account in the U.S. Treasury during the period the bids are being considered. Such a deposit does not constitute and shall not be construed as acceptance of any bid on behalf of the United States.

8. Withdrawal of Bidding Units or Portions Thereof. The United States reserves the right to withdraw any bidding unit or portion thereof from this sale prior to issuance of a written acceptance of a bid for the bidding unit.

9. 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 bidding unit will be awarded to any bidder, unless:

(a) the bidder has complied with all requirements of this
Notice and applicable regulations;

(b) the bid is the highest valid bid; and

(c) the amount of the bid has been determined to be adequate
by the authorized officer.

No bonus bid will be considered for acceptance unless it provides for a cash bonus in the amount of $144,000 or more per bidding unit. Any bid submitted which does not conform to the requirements of this Notice, the OCS Lands Act, as amended, and applicable regulations may be returned to the person submitting that bid by the RD and not considered for acceptance. Bid adequacy guidelines are available from the Gulf of Mexico Regional office. See paragraph 14 (a).

10. Successful Bidders. Each person who has submitted a bid accepted by the authorized officer will be required to execute copies of the lease, pay the balance of the cash bonus bid together with the first year's annual rental as specified below, and satisfy the bonding requirements of 30 CFR 256, Subpart I. Successful bidders are required to submit the balance of the bonus and the first year's annual rental payment, for each lease issued, by electronic funds transfer in accordance with the requirements of 30 CFR 218.155.

11. Leasing Maps and Official Protraction Diagrams. Most of the bidding units offered for lease may be located on the Outer Continental Shelf Leasing Maps-Louisiana Nos. 1 through 12. This is a set of 27 maps which sells for $17 and which may be purchased from the Gulf of Mexico Regional Office (see paragraph 14(a)). Two of the bidding units contain blocks which are located on the official Protraction Diagram NH 16-10, Mississippi Canyon (revised December 2, 1976). This map sells for $2 and also may be purchased from the Regional office.

12. Description of the Areas Offered for Bids. The sale will include 51 bidding units as tabulated on the following page. Bidding units are based upon the MMS geologic outline of potential sulphur deposits and are formed by combining several quarter-blocks. The tabulation contains the bidding units offered in this sale as well as their block composition and acreage. The map abbreviations used therein and their associated map names are:

(a) Leases resulting from this sale will have a primary lease term of 10 years with the condition that the lease may be cancelled after 5 years, following notice pursuant to the OCS Lands Act, if drilling of an exploratory well has not been commenced or if the well has not been drilled in conformance with the approved exploration plan criteria or if there is not a suspension of operations in effect. Leases will be on Form MMS-2006 (December 1987). A copy of this lease form is reproduced at the end of this Notics. Additional copies may be obtained from the Gulf of Mexico Regional office. See paragraph 14(a).

(b) The stipulations to be applied are as described in the

following paragraphs:

Stipulation No. 1—Protection of Archaeological Resource

(This stipulation applies to all bidding units leased in this sale.)

(1) "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 (Section 301(5), National Historic Preservation Act, as amended, 16 U.S.C. 470W(5)). "Operations" means any drilling, mining, or construction or placement of any structure for exploration, development, or production of the lease.

(2) If the Regional Director (RD) believes an archaeological resource may exist in the lease area, the RD will notify the lessee in writing. The lessee shall then comply with subparagraphs (a) through (c).

(a) Prior to commencing any operations, the lessee shall prepare a
report, as specified by the RD, to determine the potential existence of
any archaeological resource that may be affected by operations. The
report, prepared by an archaeologist and a geophysicist, shall be based
on an assessment of data from remote-sensing surveys and of other
pertinent archaeological and environmental information. The lessee shall
submit this report to the RD for review.

(b) If the evidence suggests that an archaeological resource may be
present, the lessee shall either:

(1) Locate the site of any operation so as not to adversely affect the area where the archaeological resource may be; or

(ii) Establish to the satisfaction of the RD that an archaeological resource does not exist or will not be adversely affected by operations. This shall be done by further archaeological investigation, conducted by an archaeologist and a geophysicist, using survey equipment and techniques deemed necessary by the RD. A report on the investigation shall be submitted to the RD for review.

(c) If the RD determines that an archaeological resource is likely to be present in the lease area and may be adversely affected by operations, the RD will notify the lessee immediately. The lessee shall take no action that may adversely affect the archaeological resource until the RD has told the lessee how to protect it.

(3) If the lessee discovers any archaeological resource while conducting operations on the lease area, the lessee shall report the discovery immediately to the RD. The lessee shall make every reasonable effort to preserve the archaeological resource until the RD has told the lessee how to protect it.

Stipulation No. 2-Military Areas.

(This stipulation applies only to Bidding Unit No. 49, i.e. Main Pass South and East Addition Block 289, which is located in the Eglin Water Test Area 1 (EWTA-1), an area used by the U.S. Air Force for rocket and missile testing. This bidding unit is located on the western boundary of EWTA-1.)

(a) Hold and Save Harmless

Whether compensation for such damage or injury might be due under a theory of strict or absolute liability or otherwise, the lessee assumes all risks of damage or injury to persons or property, which occur in, on, or above the Outer Continental Shelf (OCS), to any persons or to any property of any person or persons who are agents, employees, or invitees of the lessee, its agents, independent contractors, or subcontractors doing business with the lessee in connection with any activities being performed by the lessee in, on, or above the OCS, if such injury or damage to such person or property occurs by reason of the activities of any agency of the U.S. Government, its contractors or subcontractors, or any of their officers, agents or employees, being conducted as a part of, or in connection with,

the programs and activities of the command headquarters for Eglin Water Test Area 1 (EWTA-1), address provided below.

Notwithstanding any limitation of the lessee's liability in the lease, the lessee assumes this risk whether such injury or damage is caused in whole or in part by any act or omission, regardless of negligence or fault, of the United States, its contractors or subcontractors, or any of its officers, agents, or employees. The lessee further agrees to indemnify and save harmless the United States against all claims for loss, damage, or injury sustained by the lessee, and to indemnify and save harmless the United States against all claims for loss, damage, or injury sustained by the agents, employees, or invitees of the lessee, its agents, or any independent contractors or subcontractors doing business with the lessee in connection with the programs and activities of the aforementioned military installation, whether the same be caused in whole or in part by the negligence or fault of the United States, its contractors, or subcontractors, or any of its officers, agents, or employees and whether such claims might be sustained under a theory of strict or absolute liability or otherwise.