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Unleased Federal Lands Within A Spacing Unit


Will the BLM agree to include unleased federal lands within an established spacing unit?

Yes.  A Communitization Agreement (CA) must be filed with the BLM. Prior to approving the CA, the BLM will establish an Unleased Land Account (ULA), which is identified by a serial number. The approved CA will reference the ULA serial number for royalty reporting purposes.

Why does an ULA need to be created?

To enable the Office of Natural Resources Revenue (ONRR) to establish a revenue account for earned royalty payments. 

How can I lease unleased lands?

Unleased lands must be leased competitively and be offered at a competitive sale.

Do the unleased lands need to be nominated for a competitive sale?

Yes. However, if industry does not nominate the lands and they are included with a CA, the BLM will initiate the process to include these lands in a future competitive sale. 

What happens when unleased lands become leased?

The operator is notified in writing to discontinue making royalty payments to the ULA and begin using the new lease serial number.

Does the CA need to be modified?

Yes. The operator will be notified in writing to revise copies of Exhibits A and B to reflect the new lease.

What happens if the CA terminates before the lands are leased?

The ULA is terminated when the CA is terminated.

Who can I contact if I have questions about the status of unleased lands or ULAs?

You can contact Teri Bakken at (406) 896-5091.

Who do I contact if I have questions about filing a CA with unleased lands?

Contact the appropriate BLM Field Office:
          Miles City – Jacqueline Anderson (406) 233-3641
          North Dakota – Pascual Laborda (406) 896-5102
          Great Falls – Samantha Iron Shirt (406) 791-7789

Last updated: 08-02-2012