July 27, 2006
Contact: Steven Hall
Federal Oil and Gas Sale Scheduled for Aug. 1, 2006
An oral oil and gas lease auction sponsored by Wyoming's Bureau of Land Management will be held Tuesday, Aug. 1, 2006, at the Holiday Inn in Cheyenne. Doors open at 7 a.m. with the auction beginning at 8 a.m. BLM will offer a total of 154,385 acres in 207 parcels in Wyoming.
Ten parcels containing 11,263 acre located in the Bridger-Teton National Forest are currently scheduled to be offered. The Forest Service determines which parcels they will offer at BLM lease auctions.
"Mineral resources on Wyoming public lands play a key role in meeting energy demands in the Rocky Mountain Region. With one-third of the nation's oil and gas production coming from the public lands, oil and gas leasing helps increase domestic production of clean-burning natural gas and other mineral resources," 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 in 2005. About 64 percent of the homes in Wyoming are heated with natural gas.
Auction rules call for a $2 per acre minimum bid in bonuses on any parcel. This means a buyer will pay the bid price for the right to obtain the federal lease, in addition to a standard $1.50 per acre rental on the lease. BLM will also charge winning bidders $130 per parcel to help cover administrative costs. If the lease becomes producing, the federal government will collect a royalty on production. Last year, royalties of $799,217,792 were collected and shared equally with the State of Wyoming.
Leases are for a primary term of ten years, and will be continued as long thereafter as oil or gas is produced in paying quantities.
BLM has mailed out a notice of sale to potential federal oil and gas lease bidders. It contains a complete list of the parcels, conditions of the sale and lease stipulations. Copies will be available at the sale, and can be purchased for $5 from the State Office at 5353 Yellowstone Road in Cheyenne, or by writing: BLM, Attn: Copy Work, P.O. Box 1828, Cheyenne, Wyo. 82003. Copies are also available for purchase from each BLM field office in Wyoming.
The complete list of parcels is available on the Wyoming BLM web site at: www.wy.blm.gov/minerals/og/leasing/oilgasleasing.html