All Parcels Offered are Sold in March Oil and Gas Lease Sale
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The Bureau of Land Management-Eastern States quarterly oil and gas lease sale resulted in competitive bids for all parcels offered. The sale was held at the BLM-Eastern States Office, Springfield, Virginia on March 17, 2011. The combined bids brought in $4,004,014 that is distributed between the Federal government and states where the parcels were located. Regulations require the bidding to open at $2.00 per acre. More than 97,000 acres were offered in the sale parcels.
The parcels in the sale were located in Alabama, Arkansas, Louisiana, Michigan, Mississippi, and Kentucky. In Alabama, parcels were sold in Covington and Escambia Counties. In Arkansas, parcels were sold in Scott, Pope, Van Buren, Johnson and Conway Counties. In Louisiana, parcels were sold in Claiborne, Grant and Winn Parishes. In Michigan, one parcel was sold in Mason County. In Mississippi, parcels were sold in Smith, Perry, Wayne, Forest and Pearl River Counties. In Kentucky, parcels were sold in Whitley County and McCreary County. The highest per-acre bid of the auction was made by Mason Dixon Energy of Bridgeport, WV at $925 per acre for over 642 acres in Clairborne Parish, Louisiana.
Leases are awarded for a term of ten years and as long thereafter as there is production of oil and gas in paying quantities. The Federal government receives a royalty of 12 and one-half percent of the value of production. Each state government receives a 25 percent minimum share of the bonus bid and the royalty revenue from each lease issued in that state.
March 17, 2011
BLM Eastern States Oil and Gas Lease Sale Results Summary
Parcels Offered for Auction: 147
Parcels Sold: 147
% Parcels Sold: 100%
Acres Offered: 97,855.257
Acres Sold: 97,855.257
Acres Sold: 100%
Average Bid/Acre: $39.20
Average Bid/Parcel: $26,904.00
Highest Bid/Acre: $925.00
Parcel # with High Bid/Acre: 92
Highest Bid/Parcel: $630,000.00
Parcel with High Total Bid: 90
Total Bonus Bid: $3,835,828.00
Total Rental Due: $146,871.00
Total Administrative Fees Due: $21,315.00
Total Receipts Due: 4,004,014.00
The BLM manages more than 245 million acres of public land located primarily in 12 western states, including Alaska, on behalf of the American people. The BLM also administers 700 million acres of sub-surface mineral estate throughout the nation. Our mission is to sustain the health, diversity, and productivity of America’s public lands for the use and enjoyment of present and future generations.