[Code of Federal Regulations]

[Title 43, Volume 2]

[Revised as of October 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 43CFR3132.5]



[Page 388-389]

 

                    TITLE 43--PUBLIC LANDS: INTERIOR

 

    CHAPTER II--BUREAU OF LAND MANAGEMENT, DEPARTMENT OF THE INTERIOR

 

PART 3130_OIL AND GAS LEASING: NATIONAL PETROLEUM RESERVE, ALASKA

--Table of Contents

 

                     Subpart 3132_Issuance of Leases

 

Sec.  3132.5  Award of leases.



    (a) Sealed bids received in response to the notice of lease sale 

shall be opened at the place, date and hour specified in the notice of 

sale. The opening of bids is for the sole purpose of publicly announcing 

and recording the bids received. No bids shall be accepted or rejected 

at that time.

    (b) The United States reserves the right to reject any and all bids 

received for any tract, regardless of the amount offered.

    (c) In the event the highest bids are tie bids, the tying bidders 

shall be allowed to submit within 15 days of the public announcement of 

a tie bid additional sealed bids to break the tie. The



[[Page 389]]



additional bids shall include any additional amount necessary to bring 

the amount tendered with his/her bid to one-fifth of the additional bid. 

Additional bids to break tie bids shall be processed in accordance with 

paragraph (a) of this section.

    (d) If the authorized officer fails to accept the highest bid for a 

lease within 90 days or a lesser period of time as specified in the 

notice of sale, the highest bid for that lease shall be considered 

rejected. This 90-day period or lesser period as specified in the notice 

of sale shall not include any period of time during which acceptance, 

rejection or other processing of bids and lease issuance by the 

Department of the Interior are enjoined or prohibited by court order.

    (e) Written notice of the final decision on the bids shall be 

transmitted to those bidders whose deposits have been held in accordance 

with instructions set forth in the notice of sale. If a bid is accepted, 

2 copies of the lease shall be transmitted with the notice of acceptance 

to the successful bidder. The bidder shall, not later than the 15th day 

after receipt of the lease, sign both copies of the lease and return 

them, together with the first year's rental and the balance of the bonus 

bid, unless deferred, and shall file a bond, if required to do so. 

Deposits shall be refunded on rejected bids.

    (f) If the successful bidder fails to execute the lease within the 

prescribed time or otherwise to comply with the applicable regulations, 

the deposit shall be forfeited and disposed of as other receipts under 

the Act.

    (g) If the awarded lease is executed by an attorney-in-fact acting 

on behalf of the bidder, the lease shall be accompanied by evidence that 

the bidder authorized the attorney-in-fact to execute the lease on his/

her behalf. Reference may be made to the serial number of the record and 

the office of the Bureau of Land Management in which such evidence has 

already been filed.

    (h) When the executed lease is returned to the authorized officer, 

he/she shall within 15 days of receipt of the material required by 

paragraph (e) of this section, execute the lease on behalf of the United 

States. A copy of the fully executed lease shall be transmitted to the 

lessee.