The U.S. Interior Department periodically offers Outer Continental Shelf (OCS) tracts for lease at seated bid auction. The bid variable typically is the bonus, a sum paid by the lessee at commencement of the lease. A tract is awarded only to the high bidder. However, the seller often deems even the high bid insufficient, rejecting it and withholding the tract for possible later auction.
CapenE. C.ClappR. V.CampbellW. M. (1971). “Competitive Bidding in High Risk Situations.” Journal of Petroleum Technology (June): 641-53.
2.
EricksonE. W. (1982). “Affidavit in Support of Exxon Corporation’s Appeal from Decision of Alaska State Office, Bureau of Land Management to Reject High Bids at Competitive Oil and Gas Lease Sale No. 821.” Exhibit B, May 7. 1982, Department of Interior Board of Land Appeals Docket No. 72-706.
3.
GraysonC. J. (1960. Decisions Under Uncertainty. Boston: Harvard University Press, pp. 96-97.
4.
LohrenzJ.DoughertyE. (1983A). “Federal Offshore Oil and Gas Lease Bonus Bid Rejection Policy: Past and Present.” Journal of Petroleum Technology (November).
5.
LohrenzJ.DoughertyE. (1983B). “Federal Offshore Oil and Gas Lease Bonus Bid Rejections: Viewpoints of Bidders and Owners.” Society of Petroleum Engineers Paper 11309. In Proceedings of 1983 SPE Hydrocarbon Economics and Evaluation Symposium.
6.
MeadW.SorensenP.JonesR.MoseidjordA. (1980). “Additional Studies of Competition and Performance in OCS Oil and Gas Lease Sales, 1954-1975.” Final Report under USGS Contract 14-08-001-18678.
7.
MetzgerP. (undated). “Study of OCS Bid Rejection in the Gulf of Mexico- 1976-1981.” Unpublished paper. Washington, DC: Office of Policy Analysis, U.S. Department of the Interior.
8.
ReadingerT. A. (1978). “Analysis of the Gains in High Bids for the Previously Rejected Tracts Reoffered in OCS Sale No. 45.” Unpublished paper. Washington, DC: Branch of Marine Mineral Leasing, U.S. Department of the Interior.
9.
ReeceD. (1980). “An Analysis of Rejected High Bids in the Federal Offshore Petroleum Leasing Program.” Unpublished paper (September).
10.
RecceD. (1978). “Competitive Bidding for Offshore Petroleum Leases.” Bell Journal of Economics9.
11.
U.S. Department of the Interior (1983). “Procedures for OCS Bid Adequacy.” Appendix 2, Chapter 5. Washington, DC: Minerals Management Service.
12.
U.S. Department of the Interior (1985). “Budget Justification for Fiscal Year 1985.” Washington, DC. Interior.
