Date: April 9, 2008
Contact: Greg Albright (406) 896-5260
Results of April Oil and Gas Lease Sale
Total bids at the Bureau of Land Management’s oil and gas lease auction April 8 in Billings topped $3,286,700.
Headington Oil of Dallas had the sale’s highest bid of $645,300 for a 955-acre parcel in Dunn County, N.D. The highest per-acre bid was $1,200 from Sinclair Oil and Gas of Salt Lake City for a 440-acre parcel in Mountrail County, N.D.
Only 33 parcels were offered at the sale, 10 in Montana and 23 in North Dakota. With the exception of one North Dakota parcel, all offerings received bids. The average per-acre bid was $270.
Additional information regarding competitive sale lists, detailed results of sales, or the leasing process is available by writing the Bureau of Land Management, 5001 Southgate Dr., Billings, Mont., 59101, by calling (406) 896-5004, or at www.blm.gov/mt.
Oil and gas leasing is driven by consumer demand, and competitive oil and gas lease sales are generally conducted every other month at BLM’s Montana State Office. Receipts from federal oil and gas leases are shared with the state or county where the lands are located. All leases are issued for a 10-year term.
The Forest Service and BLM analyze the potential environmental effects from exploration and development before offering any leases for sale. All leases come with conditions on oil and gas activities to protect the environment that can include limits on when drilling can occur or restrictions on surface occupancy. Once an operator proposes exploration or development on a BLM-issued lease, further environmental analysis under the National Environmental Policy Act is conducted to determine the site-specific need for various types of impact-limiting or mitigation measures. In addition, many operators routinely use Best Management Practices such as remote monitoring of producing wells to minimize surface impacts.