30 C.F.R. § 260.110 What bidding systems may MMS use?
Title 30 - Mineral Resources
We will apply a single bidding system selected from those listed in this section to each tract included in an OCS lease sale. The following table lists bidding systems, the bid variables, and characteristics.
Title 30: Mineral Resources
PART 260—OUTER CONTINENTAL SHELF OIL AND GAS LEASING
Subpart B—Bidding Systems
General Provisions
§ 260.110 What bidding systems may MMS use?
---------------------------------------------------------------------------------------------------------------- For the bidding system_ The bid variable is the_ And the characteristics are_----------------------------------------------------------------------------------------------------------------(a) Cash bonus bid with a fixed royalty Cash bonus.......................... The highest responsible rate of not less than 12.5 percent. qualified bidder will pay a royalty rate of not less than 12.5 percent at the beginning of the lease period. We will specify the royalty rate for each tract offered in the Notice of OCS Lease Sale published in the Federal Register.----------------------------------------------------------------------------------------------------------------(b) Royalty rate bid with fixed cash Royalty rate........................ We will specify the fixed amount bonus. of cash bonus the highest responsible qualified bidder must pay in the Notice of OCS Lease Sale published in the Federal Register.----------------------------------------------------------------------------------------------------------------(c) Cash bonus bid with a sliding Cash bonus.......................... (1) We will calculate the royalty rate of not less than 12.5 royalty rate the highest percent at the beginning of the lease responsible qualified bidder period. must pay using either: (i) A sliding-scale formula, which relates the royalty rate to the adjusted value or volume of production, or (ii) A schedule that establishes the royalty rate that we will apply to specified ranges of the adjusted value or volume of production. (2) We will determine the adjusted value of production by applying an inflation factor to the actual value of production. (3) If you are the successful high bidder, your lease will include the sliding-scale formula or schedule and will specify the lowest and highest royalty rates that will apply. (4) You will pay a royalty rate of not less than 12.5 percent at the beginning of the lease period. (5) We will include the sliding- scale royalty formula or schedule, inflation factor and procedures for making the inflation adjustment and determining the value or amount of production in the Notice of OCS Lease Sale published in the Federal Register.----------------------------------------------------------------------------------------------------------------(d) Cash bonus bid with fixed share of Cash bonus.......................... (1) If we award you a lease as the net profits of no less than 30 the highest responsible percent. qualified bidder, you will determine the amount of the net profit share payment to the United States for each month by multiplying the net profit share base times the net profit share rate, according to § 220.022. You will calculate the net profit share base according to § 220.021. (2) You will pay a net profit share of not less than 30 percent. (3) We will specify the capital recovery factor, as described in § 220.020, and the net profit share rate, both of which may vary from tract to tract, in the Notice of OCS Lease Sale published in the Federal Register.----------------------------------------------------------------------------------------------------------------(e) Cash bonus with variable royalty Cash bonus.......................... (1) We may suspend or defer rate(s) during one or more periods of royalty for a period, volume, production. or value of production. Notwithstanding suspensions or deferrals, we may impose a minimum royalty. The suspensions or deferrals may vary based on prices or price changes of oil and/or gas. (2) You may pay a royalty rate less than 12.5 percent on production but not less than zero percent. (3) We will specify the applicable royalty rates(s) and suspension or deferral magnitudes, formulas, or relationships in the Notice of OCS Lease Sale published in the Federal Register.----------------------------------------------------------------------------------------------------------------(f) Cash bonus with royalty rate(s) Cash bonus.......................... We will base the royalty rate on based on formula(s) or schedule(s) formula(s) or schedule(s) during one or more periods of specified in the Notice of OCS production. Lease Sale published in the Federal Register.----------------------------------------------------------------------------------------------------------------(g) Cash bonus with a fixed royalty rate Cash bonus.......................... Except for periods of royalty of not less than 12.5 percent, at the suspension, you will pay a beginning of the lease period, fixed royalty rate of not less suspension of royalties for a period, than 12.5 percent. If we award volume, or value of production, or to you a lease under this depending upon selected characteristics system, you must calculate the of extraction, and with suspensions royalty due during the that may vary based on the price of designated period using the production. rate, formula, or schedule specified in the lease. We will specify the royalty rate, formula, or schedule in the Notice of OCS Lease Sale published in the Federal Register.----------------------------------------------------------------------------------------------------------------
Browse Previous |
Browse Next
