BLM oil and gas lease sales in Colo., Okla., Texas net combined $4.7 million
WASHINGTON – In keeping with the Administration’s goals of promoting America’s energy independence, the Bureau of Land Management (BLM) New Mexico and Colorado state offices yesterday sold a combined 87 parcels at their quarterly oil and gas lease sales, totaling approximately 67,499 acres and netting $4,735,508 including rentals and fees.
The combined bids from the sales will be distributed between the federal government and the states of Colorado, Oklahoma, and Texas.
“As part of its multiple use mission, the BLM is proud to facilitate the responsible development of energy resources on public lands,” said BLM Acting Director Michael D. Nedd. “These oil and gas lease sales go a long way toward fueling America’s economy and supporting good-paying energy sector jobs.”
BLM New Mexico offered nine parcels in the State of Oklahoma in Canadian, Major, and Roger Mills counties and nine parcels in the State of Texas in Live Oak, McMullen, Washington, Burleson, and Jackson counties. Of these, 17 parcels sold totaling 4,230.56 acres. The highest bid per parcel was made by Sea Eagle Ford LLC, for a 976.80-acre parcel in Live Oak County, Texas with a bid of $1,202 per acre for a total bid of $1,174,354.The highest bid per acre was made by Cimarex Energy Co., who bid $9,803 per acre on a 102.34-acre parcel in Canadian County, Oklahoma, for a total bonus bid of $1,009,709. There were 38 registered bidders participating in these sales.
In Colorado, the BLM offered 85 parcels in Jackson, Moffat, Rio Blanco and Routt counties. Of these, 70 parcels sold totaling 63,268 acres. The highest per-acre price was $102, sold to Baseline Minerals, Inc. There were 23 registered bidders participating in the Colorado lease sale.
Oil and gas lease sales support domestic energy production and American energy independence. The BLM’s all-of-the-above approach to energy development includes oil and gas, coal, strategic minerals and renewable sources, which can all be developed on public lands.
The BLM’s policy is to promote 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 sales are also in keeping with the Administration’s America First Energy Plan, which includes development of fossil fuels and coal, as well as renewable energy.
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. In Oklahoma and Texas, 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 State of Colorado receives 49 percent of revenues from leases issued on public lands in Colorado.
In Fiscal Year 2015, oil and gas development on BLM-managed lands supported 188,200 jobs nationwide and contributed more than $50 billion to the U.S. economy.
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.