BLM-Eastern States oil and gas lease sale nets $3,514.50
FALLS CHURCH, Virginia — In keeping with the Trump Administration’s goal of promoting America’s energy independence, the Bureau of Land Management (BLM) Eastern States State Office held an oil and gas lease sale December 17, 2020, that resulted in competitive bids on five of the fifteen parcels offered for 443.415 acres located in Arkansas and Mississippi.
The combined bids plus fees from the sale brought in $3,514.50, which will be distributed between the Federal Government and the states of Arkansas and Mississippi. The highest per-acre price was for a 122.63 parcel in Mississippi, awarded to R&R Royalty.
All sale results information is linked to the BLM Eastern States website here.
Oil and gas 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 12.5 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.
The BLM’s oil and gas lease sales support domestic energy production and American energy independence, and are aligned with the Administration’s America First Energy Plan, an all-of-the-above approach that includes oil and gas, coal, strategic minerals and renewable sources, all of which can be developed on public lands.
The BLM’s policy is to permit oil and gas development if it meets the guidelines and regulations set forth by the National Environmental Policy Act of 1969 and other subsequent laws and policies passed by the U.S. Congress.
The BLM manages more than 245 million acres of public land located primarily in the 11 Western states and Alaska. The BLM also administers 700 million acres of sub-surface mineral estate throughout the nation. In fiscal year 2018, the diverse activities authorized on BLM-managed lands generated $105 billion in economic output across the country. This economic activity supported 471,000 jobs and contributed substantial revenue to the U.S. Treasury and state governments, mostly through royalties on minerals.