U.S. DEPARTMENT OF THE INTERIOR
BUREAU OF LAND MANAGEMENT NEWS RELEASE
Eastern States Office of External Affairs
Eastern States Office of External Affairs
| Contacts: | Davida Carnahan | , 703.440.1717 | , dcarnahan@blm.gov |
All parcels offered are sold in oil and gas lease sale at BLM Eastern States
SPRINGFIELD, Va.—The Bureau of Land Management-Eastern States quarterly oil and gas lease sale resulted in competitive bids for all parcels offered. The sale was held at the BLM-Eastern States Office, Springfield, Va. on September 15, 2011. The combined bids brought in $3,432,506 that is distributed between the Federal government and states where the parcels were located. Regulations require the bidding to open at $2.00 per acre. More than 48,000 acres were offered in the sale parcels.
The parcels in the sale were located in Mississippi and Virginia. In Mississippi, parcels were sold in Smith, Franklin and Grenada Counties. In Virginia, parcels were sold in Dickensen County. The highest per-acre bid of the auction was made by Threshold Development Company of Ft. Worth, Tx at $500 per acre for over 359 acres in Franklin County, Miss.
Leases are awarded for a term of ten years and as long thereafter as there is production of oil and gas in paying quantities. The Federal government receives a royalty of 12 and one-half percent of the value of production. Each state government receives a 25 percent minimum share of the bonus bid and the royalty revenue from each lease issued in that state.
September 15, 2011 BLM Eastern States Oil and Gas Lease Sale Results Summary |
Parcels Offered for Auction: 93 |
Parcels Sold: 93 |
% Parcels Sold: 100% |
Acres Offered: 48,771.54 |
Acres Sold: 48,771.54 |
Acres Sold: 100% |
Average Bid/Acre: $65.60 |
Average Bid/Parcel: $35,976.99 |
Highest Bid/Acre: $500.00 |
Parcel # with High Bid/Acre: 70 |
Highest Bid/Parcel: $272,620.00 |
Parcel with High Total Bid: 65 |
Total Bonus Bid: $3,345,860.00 |
Total Rental Due: $73,161.00 |
Total Administrative Fees Due: $13,485.00 |
Total Receipts Due: $3,432,506.00 |
The BLM manages more than 245 million acres of public land, the most of any Federal agency. This land, known as the National System of Public Lands, is primarily located in 12 Western states, including Alaska. The BLM also administers 700 million acres of sub-surface mineral estate throughout the nation. In Fiscal Year (FY) 2011, recreational and other activities on BLM-managed land contributed more than $130 billion to the U.S. economy and supported more than 600,000 American jobs. The Bureau is also one of a handful of agencies that collects more revenue than it spends. In FY 2012, nearly $5.7 billion will be generated on lands managed by the BLM, which operates on a $1.1 billion budget. The BLM's multiple-use mission is to sustain the health and productivity of the public lands for the use and enjoyment of present and future generations. The Bureau accomplishes this by managing such activities as outdoor recreation, livestock grazing, mineral development, and energy production, and by conserving natural, historical, cultural, and other resources on public lands.
Eastern States Office of External Affairs 7450 Boston Blvd. Springfield, VA 22153