BLM-Utah December quarterly oil and gas lease sale nets nearly $3,040,371.00
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SALT LAKE CITY — In keeping with the Administration’s goals of promoting American energy independence, the Bureau of Land Management (BLM) Utah quarterly oil and gas lease sale resulted in competitive bids for 96 of the 105 parcels offered in the Canyon Country, Color Country and Green River Districts.
Baseline Minerals Inc., of Lakewood, Colorado, submitted the highest total bid per acre —$66.00 — for parcel 234 in the Vernal Field office area. Baseline Minerals Inc. also submitted the highest total bid per parcel — $151,040.00 — for parcel 155 in the Vernal Field office area. For more details about the sale results, please visit: http://go.usa.gov/xXk8c.
To comply with a Preliminary Injunction entered on September 21, 2018, by the United States District Court, District of Idaho (Western Watersheds Project v. BLM, No. 1:18-cv-00187-REB), 116 parcels were not included with this sale. They required lengthier comment periods on environmental compliance documents associated with parcels that intersect Priority or General Habitat Management Areas for Greater Sage-Grouse. The BLM proposes to offer those parcels in the upcoming March 2019 lease sale.
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 BLM’s energy program includes 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.
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 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.
The oil and gas industry on public lands in Utah contributed $2.6 billion in total economic output in FY2017. Continuous exploration, development, and site restoration is required to sustain production rates, jobs, income and royalties.
December 11, 2018
BLM-Utah Oil and Gas Lease Sale
Results Summary
Parcels Offered for Auction 105
Parcels Sold 96
% Parcels Sold 91.43%
Acres Offered 154,212.880
Acres Sold 139,079.680
% Acres Sold 90.19%
Average Bid/Acre Sold $ 20.25
Average Bid/Parcel Sold $ 29,332.00
Highest Bid/Acre $66.00
Parcel with High Bid/Acre 234
Highest Bid/Parcel $151,040.00
Parcel with High Total Bid 155
Total Bonus Bid $2,815,872.00
Total Rental Due $208,659.00
Total Administrative Fees Due $15,840.00
Total Receipts Due* $3,040,371.00
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.