February 8, 2006
Contact: Beverly Gorny,
BLM Oil and Gas Sale Nets Over $6.8 Million,
State of Wyoming to Get Half
The Bureau of Land Management generated $6,897,560.50 for leasing rights on parcels offered at the BLM's bimonthly federal oil and gas lease auction held in Cheyenne on February 7, 2006.
"Energy development drives the Wyoming economy and our state provides critical energy resources for the entire nation," said Wyoming BLM State Director Bob Bennett.
Oil and gas operations on BLM-administered public lands and federal mineral estate in Wyoming produced 29,819,011 barrels of oil and 1,410,476,831 thousand cubic feet of gas, and generated $799,217,792 in federal oil and gas royalties last year. Half the royalty payments were disbursed to the State of Wyoming.
Bids totaling $6,687,382 ranged from the federally mandated minimum of $2 per acre to $900 per acre. That bid was for a 320 acre parcel in Sweetwater County that was won by Allen & Kirmse, Ltd., of Englewood, Colo. The highest bonus bid of $1,005,020 was for a 1,620.880 acre parcel in Sweetwater County that was won by Hanson & Strahn, Inc., of Cheyenne, Wyo. Successful bidders also pay a $130 per parcel administrative fee and yearly rental of $1.50 per acre.
In addition to the bids, the sale netted $190,288.50 in first year rental fees, and $19,890 in administrative fees. Half of bid and rental receipts go to the State of Wyoming.
A total of 133,428.310 acres in 161 parcels were offered at the sale. A total of 126,825.060 acres in 153 parcels were sold. Average bid per acre for each acre sold was $52.73 and the average parcel sold netted $43,708.38 from bidding.
Parcels which didn't receive bids at the auction are available noncompetitively for the yearly rental fee ($1.50 per acre for the first five years and $2 per acre for the second five years) and a $335 administrative fee at the BLM office in Cheyenne.
The next oil and gas lease sale will be held on April 4, 2006 in Cheyenne.