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4. Bidding systems. All bids submitted at this sale must provide for a cash borus 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 nine will be employed an 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 an 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 goening. 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 amancing 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 inopened 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 con strued 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. Appeptange, Retection, 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).

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10. Suosil 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 satisty the banding requirements of 30 CFR 256, subpart I. Succuestw bidders are required to submit the balance of the barris and the first year's annual rental payment, for each lease issued, by electronic funds transfer in accordance with the requirements of 30 QR 218. 155.

11. Leasing Mans and official Protection Diagoms. Most of the bidding units offered for lease may be located on the arter Continental shelf Leasing Maps-Louisiana Nos. 1 through 12. This is a set of 27 maps which salls for $17 and which may be purchased from the out of Medico Regional Office (see paragraph 14(a)). Two of the bidding units contain blocks which are located on the official Protraction Diagram MH 16-10, Mississippi Canyon (revised December 2, 1976). This map sells for $2 and also may be purchased from the Regional offia.

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 is geologic atlin 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: WC-hiest Cameron.

WOW West Cameron West
WES-West Cameron South

BC-East Cameron
POS-East Cameron South

VR-Vermilian
Sa-South Marsh Island

SMIIN-South Marsh Island North
Sas-South Marsh Island South ET-Eugene Island
ss-Ship Shoal

SSS-Ship Shoal South
PL-South Palto

ST-South Timbalier
a-Grand Isle

GIS-Grand Isle South
WD West Delta

WDS-West Delta South
MC Mississippi Canyon

SP-South Pass
SPSE-Sarth Pass South and East MP- Main Pass
MPSE-Main Pass South and East

visitor day for each category of recreation activity and the daily per capita expenditures by coastal recreationists in the study area.

5. Washington, Oregon, and California OCS Fisheries Resource Data Base: This study (in its second year) will complement and expand the MMS's existing California OCS Fisheries Data Base to encompass fisheries data and resource mapping off Washington and Oregon. The goal is to develop a microcomputer capability to display and plot fisheries resource and economic information for Washington and Oregon while simultaneously overlaying such information with MMS information (e.g. lease blocks, platforms, petroleum resources, etc.) to allow for analysis of potential space and use conflicts and

of resource

areas

concern.

Question: Regarding additional funds for the Environmental Studies Program, I notice that 3 of the 5 projects and approximately $600,000 of the $900,000 has been devoted to accelerated studies in the Straits of Florida planning area.

How will these funds be reallocated in light of the Secretary's recent decision to drop the Straits of Florida off the 5 Year Schedule?

Given the fact that normal procurement procedures take approximately 6 months and there are only 5+ months remaining in the current fiscal year, will you be able to obligate the funds in this fiscal year?

If not, what are your plans?

Answer: As a result of the Secretary's decision to drop the Straits of Florida off the 5 Year Schedule, the three Florida related studies are no longer being considered for acceleration, and have been replaced by the following studies:

Potential Social and Economic Effects of OCS Oil and Gas Activities on
Oregon and Washington Indian Tribes

Inventory and Evaluation of Washington and Oregon Coastal Recreation
Resources

Washington, Oregon, and California OCS Fisheries Resource Database

we

are

can

In recognition of the 6 months required to proceed through the competitive procurement process,

investigating the possibility of pursuing cooperative agreements and/or interagency agreements which be awarded before the end of this fiscal year.

are unsuccessful in completing awards for all of the five projects in this fiscal year, we will forward fund other projects planned to continue in FY 1989 and use their programmed FY 1989 allocations to complete the awards for these studies early in FY 1989.

If we

Question: What is the status of the proposed Florida Task Force in light of the most recent deferrals offshore Florida?

Answer: The issues which would have been the primary concerns of the task force have been resolved by the terms of the agreement between the Governor and the Secretary. Agreement was reached through consultation pursuant to the intent and provisions of the OCS Lands Act. We will continue to consult with the State on issues concerning oil and gas leasing. At this time, there does not appear to be any reason to pursue the idea of a special task force.

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Question: It is my understanding that the Department is planning to hold a gold sale offshore Alaska late in 1988 and that this sale is supported by the Alaska delegation and the State.

Is this date overly optimistic given the fact that regulations, fair market value procedures, etc. have not yet been developed?

Answer: Yes, based on an agreement with the State, the OCS minerals lease sale in Norton Sound has recently been rescheduled for the Summer of 1989.

Question: Please provide details on the Department's recent salt and sulphur sale in the Gulf of Mexico.

а

Answer: The sale was

very successful

one. There were 20 bids submitted on 14 mining units. Over 140,000 acres were bid with total high bids exceeding $15 million. of the five companies that qualified, all five submitted bids. А со of the terms and conditions for the sale follow:

CENIRAL GULF OF MEIDO
SULPHUR AND SALT LEASE SALE BIDOING UNITS

Bidding Unit Description

Bidding Unit

Aceage

1 2

8

10 u 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51

WOW 306

5,000.00 WOS 521;522;544

1,428.74 EC 104;115

10,000.00 EC 118;119

10,000.00 EC 126

5,000.00 C 154;155; WC 263;272NE/4

16, 250.00 EC 178;179W/2; 1841W/4;1850/2

1,250.00 EC 229

5,000.00 ECS 293;304N/2

7,500.00 VR 124

5,000.00 VR 161;162

9,792.53 VR 164;179

10,000.00 VR 189;190;193;194

20,000.00 VR 1995W/4;200;203;2041W/4

12,500.00 VR 217;218;225;226

20,000.00 SM 8; SON 288

6,315.57 SNI 33:38

10,000.00 SMI58;69:70; SMS 71NE/4;72;73

23, 719.57 SMIS 121, 132N/2

7,500.00 E1 628/2;63S/2;76;77

15,000.00 EI 89;94;95W/2;1101W/4;111N/2

16,250.00 ET 116S/2;128;128A; 129;129A

12,500.00 EL 119;120;125;126

20,000.00 EN 157SE/4;158;175;176E/2

13,750.00 2 172;184

10,000.00 EI 188S/2;1895/2;190;191

15,000.00 EI 205;218;227N/2

12,500.00 EI 208

5,000.00 EI 237;238;252N/2;253N/2

15,000.00 SS 30;31;32;33

20,000.00 SS 149;154

10,000.00 SS 208SE/4;2098/2:214;215W/2

11,250.00 SS 218;219E/2;229;230W/2; SSS 242N/2 17,500.00 SSS 268;269E/2;274;275W/2

15,000.00 PL 0;12;191W/4;20N/2

13,750.00 ST 63;86

10,000.00 ST 131;132N/2; GIS 86

7,762.58 ST 134W/2;135;1511/2

10,000.00 ST 1605W/4;161;176;177

16, 250.00 G 72

5,000.00 WD 30;31

10,000.00 WDS 12LSE/4;1228/2;133;134E/2

11,250.00 WDS 137;138; MC 267

12,258.68 WDS 1528/2; MC 357;358

8,629.27 SPSE 88;89;93;94

17,080.90 SP 60;61N/2; SPSE 67;70N/2

14,999.94 MP 72 (seaward of Federal/State boundary) 3,750.80 MP 144;145; MPSE 295;296

19, 110.72 MPSE 289

4,560.81 MPSE 299

4,560.81 MPSE 305;306

9,999.92

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