BLM’s May Oil and Gas Lease Sale Nets Nearly $9 Million
Contact: Mary L. Wilson 801-539-4020, Terry Catlin 801-539-4122
Salt Lake City, Utah—May 22, 2007—BLM Utah’s May quarterly oil and gas lease sale netted nearly $9 million today. The State of Utah receives 50 percent of the bonus bid ($4.5 million) and 50 percent of the rental fees ($29,000) from this sale. Of the 31 parcels (45,779 acres) that were offered for lease, 27 parcels (38,657 acres) were sold with bids ranging from $2 to $3,300 per acre. Parcels not bid on will be open for noncompetitive bid for the next two years.
“The sale results reflect continuing high interest in Utah’s energy resources. In terms of acres offered, this is the smallest lease sale we’ve held in some ten-plus years, but the number of bidders and their interest--indicated by the bid amounts--once again demonstrates that Utah is playing a critical role in meeting our nation’s energy needs,” said Terry Catlin, BLM Utah Lead for Oil and Gas Leasing.
Kent Hoffman, Deputy State Director for Lands and Minerals, noted “The high bid was in a 'wildcat' area, which indicates industry’s interest in exploration.”
Catlin noted that every parcel is scrutinized prior to the sale to determine if they can be offered in compliance with, among others, the National Environmental Policy Act, Endangered Species Act, National Historic Preservation Act and in conformance with the Resource Management Plan/Land Use Plan. To ensure the protection of other resources, numerous stipulations and stringent requirements are placed on leases that are issued. These may include seasonal occupancy restrictions to protect wildlife and limits on surface disturbing activities.
Once an operator proposes exploration or development on a BLM-issued lease, the Bureau carries out further environmental analysis and determines the site-specific need for various types of impact-limiting or "mitigation" measures. These measures may include:
- revegetation (to control soil erosion and helps curb the spread of weeds)
- strategic placement of structures and machinery with colors that blend in with the landscape,
- establishment of buffer zones so affects to wildlife habitat are minimized, and –
- burying powerlines and pipelines under or adjacent to access roads to protect wildlife and minimize visual impacts.
In addition, many operators routinely use Best Management Practices, such as remote sensing to monitor well production, to minimize surface impacts.
Less than one percent of the acreage managed by the BLM experiences surface disturbance from oil and gas activity. Government estimates indicate that Federal lands contain about 68 percent of all undiscovered U.S. oil and 74 percent of undiscovered natural gas. A detailed oil and gas inventory by the Interior and Energy Departments found that Federal lands in five key Western geologic basins – located in Montana, Wyoming, Utah, Colorado, and New Mexico – contain nearly 140 trillion cubic feet of natural gas. That is enough natural gas to supply the 56 million homes now using natural gas for the next 30 years.
May 2007 | |
| Parcels Offered | 31 |
| Parcels Sold | 27 |
| % Parcels Sold | 87% |
| Acres Offered | 45,779 acres |
| Acres Sold | 38,657 acres |
| % Acres Sold | 84% |
| Average Bid/Acre For Acres Offered For Acres Sold | $193.72 $229.41 |
| Average Bid/Parcel For Parcels Offered For Parcels Sold | $286,071.39 $328,452.33 |
| Highest Bid/Acre: | $3,300.00 |
| Parcel with High | 30 |
| Highest Bid/Parcel: | $2,088,00.00 |
| Parcel with High Total Bid | 67 |
| Total Bonus Bid | $8,868,213.00 |
| Total Rental Due | $57,997.50 |
| Total Administrative Fees Due | $3,510.00 |
| Total Receipts Due | $8,929,720.50 |
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