(a) For commercial leases, we will specify minimum bids in the Final Sale Notice and use one of the following bidding systems, as specified in the Proposed Sale Notice and in the Final Sale Notice: ------------------------------------------------------------------------
(1) Cash bonus with a constant fee rate Cash bonus.
(decimal).(2) Constant operating fee rate with A fee rate used in the formula
fixed cash bonus. found in Sec. 585.506 to set
the operating fee per year
during the operations term of
your lease.(3) Sliding operating fee rate with a A fee rate used in the formula
fixed cash bonus. in Sec. 585.506 to set the
operating fee for the first
year of the operations term of
your lease. The fee rate for
subsequent years changes by a
mathematical function we
specify in the Final Sale
Notice.(4) Cash bonus and constant operating Cash bonus and operating fee
fee rate. rate as stated in paragraph
(2) of this section (two-stage
auction format only).(5) Cash bonus and sliding operating Cash bonus and operating fee
fee rate. rate as stated in paragraph
(3) of this section (two-stage
auction format only).(6) Multiple-factor combination of BOEM will identify bidding
nonmonetary and monetary factors. variables in the Final Sale
Notice.
Variables may include:
(i) Nonmonetary (e.g.,
technical merit) factors
and
(ii) Monetary (e.g., cash
bonus, rental rate, fee
rate) factors.------------------------------------------------------------------------
(b) For limited leases, the bid variable will be a cash bonus, with a minimum bid as we specify in the Final Sale Notice.