WASHINGTON, DC, June 7 -- The US Minerals Management Service has developed guidelines for mandatory prequalification of bidders for upcoming royalty in-kind crude oil sales.
Three federal RIK sales are scheduled for this summer, two in the Gulf of Mexico and one in Wyoming. One of the Gulf of Mexico sales will be only for eligible small refiners.
MMS said to participate in any of these sales, prospective bidders will be required to be prequalified. It will issue invitations to such bidders to participate in the Gulf of Mexico sales in July and in August for the Wyoming sale.
Lucy Querques Denett, associate director for minerals revenue management, said, "Not unlike the prequalification process that often eases domestic real estate transactions, our new requirements will add certain assurances while expediting the process for both MMS and competing bidders."
In the process, potential bidders must submit financial documentation to MMS for obtaining a line of credit, demonstrate market experience and responsibility as a bidder, and sign a contract agreeing to RIK general terms and conditions.
MMS is the agency in the US Department of the Interior that manages the nation's oil, natural gas, and other mineral resources on the federal outer continental shelf.