Oil & Gas Leasing Frequently Asked Questions
1. How soon will my Expression of Interest (EOI) come up on a sale?
If the minerals are BLM public domain lands it can take anywhere from 6 months to a year to appear on a sale. This is longer for lands with different surface managing agencies.
2. Why does it take so long?
BLM works anywhere from 4 to 6 months in advance of a sale. We stop accepting Expression of Interests (EOI) for inclusion in a sale approximately 14 weeks before the sale. EOIs filed after that date are moved into the next sale. We are also required (43 CFR 3120.4-2) to post the Notice of Competitive Sale and have the plats notated 45 days prior to the sale.
3. What is the difference between an EOI and a Presale Noncompetitive Offer?
An EOI is an informal nomination for lands to appear on a competitive oil and gas auction. A presale noncompetitive offer is a formal nomination in which advanced rental is paid along with a filing fee. If no bid is received at the sale, the lease issues to the applicant for the $1.50 an acre rental. At the present time, we are able to work EOIs and presale offers within the same timeframes. However, in situations where time is critical the presale offers will take priority.
4. How am I notified of an upcoming oil and gas lease sale?
BLM is required to post the Notice of Competitive Lease Sale at least 45 days prior to the sale date. Oil and gas lease sale notices and sale results lists are available for lands located in the State of California and will be posted to the California Web Site Oil & Gas page . If you have access to this site, you can personally print the notice and results at no cost. However, if you would prefer to receive the official copies from the California State Office, there is a $5.00 charge for each sale notice and a $5.00 charge for each sale results list.
5. What is the primary term on a federal oil and gas lease?
Noncompetitive leases have a primary term (life of the lease) of 10 years. Competitive leases issued prior to the Energy Policy Act of October 24, 1992, had a primary term of 5 years. Section 2509 of this Act changed the primary term of subsequently issued competitive leases to 10 years.
6. What is the effective date of my lease?
The effective date of a lease is the first day of the month after signature by the Authorized Officer.
7. After the oil and gas lease auction, when I receive my lease, do I have to sign the back page of the lease form?
No. Your signature on the bid form at the sale signifies your acceptance of the lease terms on the back of the lease .
8. When and where is my rental due?
Rental is due to the Minerals Management Service , PO Box 5810, Denver, Colorado 80217 by the anniversary date which is the effective date of the lease. Rental is $1.50 an acre the first 5 years and increases the sixth year to $2.00 for the majority of leases.
9. What are the filing fees associated with oil and gas leases?
The fees for filing a Noncompetitive offer are a $380 filing fee and the rental of $1.50 an acre (remember to round up your acreage). If you are filing an Assignment of Record Title, transfer of Operating Rights, or Overriding Royalty, there is a $85 filing fee for each lease you are filing on.
10. What form do I use for transfers and where can I get the forms?
Use a June 1988 or later edition. For Record Title Interest use Form 3000-3. For Operating Rights/Overriding Royalties use Form 3000-3a. These forms, as well as others, can be requested from the BLM State and Field Offices. These forms can also be accessed on line at Assignment of Record Title Interest in a Lease for Oil and Gas or Geothermal Resources and Transfer of Operating Rights (Sublease) in a Lease for Oil and Gas or Geothermal Resources These Bureau forms are PDF files and can be downloaded using Adobe Acrobat.
11. Can I copy the official form?
Yes. Copies must be EXACT reproductions of the official form. Tear off the bottom directions; reproduce head to foot.
12. How do I file a mass assignment?
Use the current form. You must have 3 originally executed copies (both transferor and transferee sign 3 copies). Attach an exhibit to each original copy showing serials numbers, type and interest conveyed, and a description of the lands. We need one reproduced copy of the form and the appropriate page of the exhibit for each lease. There is a nonrefundable $85 filing fee per instrument per lease. For administrative convenience, please submit only 25 leases per each mass assignment along with separate checks for each mass assignment.