Bureau of Land Management Colorado oil and gas lease sale nets $630,556
LAKEWOOD, Colo. – In keeping with the Administration’s goals of promoting America’s energy independence, the Bureau of Land Management (BLM) Colorado today sold 32 parcels totaling approximately 43,438 acres for $630,556.00 including rentals and fees at its oil and gas lease sale.
The combined bids from the sale will be distributed between the federal government and the State of Colorado. The highest per-acre price was $382 sold to Verdad Resources LLC. More details about this and other lease sales in Colorado are available online at www.blm.gov/colorado/oil-gas.
The BLM offered 42 parcels totaling 47,445.44 acres in Jackson, Las Animas, Moffat, and Weld counties.
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 oil and gas, strategic minerals, and renewable sources, which can all 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 12.5 percent of the value of production. The State of Colorado receives 48 percent of revenues from leases issued on public lands in Colorado.
The oil and gas industry on public lands in Colorado contributed over $6.9 billion in total economic output in FY 2018. Continuous exploration, development, and site restoration is required to sustain production rates, jobs, income, and royalties.
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.