What’s New?
BOEM Seeks Public Comment on Proposed Revisions to Bid Adequacy Procedures for Oil & Gas Lease Sales
On Jan. 18, 2023, BOEM released proposed revisions to its bid adequacy procedures that are in place to ensure receipt of fair market value from Outer Continental Shelf (OCS) oil and gas lease sales. The proposed revisions are published in the Federal Register for a 45-day comment period ending on Mar. 6, 2023. The proposed revisions can be found here:
- Proposed Revisions: Procedures for Determining Bid Adequacy at Outer Continental Shelf Oil and Gas Lease Sales (Jan. 2023)
- Addendum to BOEM’s “Modifications to the Bid Adequacy Procedures for Offshore Oil and Gas Lease Sales” Federal Register Notice (Docket No. BOEM-2023-0008)
Once finalized, the revised bid adequacy procedures will be implemented for use in oil and gas lease sales in the next National Outer Continental Shelf Oil and Gas Leasing Program. To comment on the proposed revisions, go to www.regulations.gov and search for docket number BOEM-2023-0008.
Background
The Outer Continental Shelf Lands Act (OCS Lands Act) grants the Secretary the authority to issue leases on the OCS. Section 18(a)(4) of the OCS Lands Act states that "Leasing activities shall be conducted to assure receipt of fair market value for the lands leased and the rights conveyed by the Federal Government." Lessees pay bonuses, rentals, and royalties reflecting the value of the rights to explore and potentially develop and produce OCS oil and gas resources.
- Oil and Gas Fiscal Terms
- Bid Adequacy Procedures
- Summary of Procedures for Determining Bid Adequacy at Offshore Oil and Gas Lease Sales: Effective March 2016, with Central Gulf of Mexico Sale 241 and Eastern Gulf of Mexico Sale 226
- Comparative Assessment of the Federal Oil and Gas Fiscal System Reports
- Areawide Leasing Study
- Renewable Energy Lease Sales