(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:
| Bid system | Bid variable |
|---|---|
| (1) Cash bonus with a constant fee rate (decimal) | Cash bonus. |
| (2) Constant operating fee rate with fixed cash bonus | A fee rate used in the formula found in § 585.506 to set the operating fee per year during the operations term of your lease. |
| (3) Sliding operating fee rate with a fixed cash bonus | A fee rate used in the formula in § 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 fee rate | Cash bonus and operating fee rate as stated in paragraph (2) of this section (two-stage auction format only). |
| (5) Cash bonus and sliding operating fee rate | Cash bonus and operating fee rate as stated in paragraph (3) of this section (two-stage auction format only). |
| (6) Multiple-factor combination of nonmonetary and monetary factors | BOEM will identify bidding 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.