Federal Government Leases 22 Parcels of Land for Oil and Gas Exploration in Arkansas, Louisiana, and Michigan
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The current oil and gas lease competitive auction sold 100 percent of the 22 parcels of Federal subsurface land in Arkansas, Louisiana, and Michigan and brought in nearly $466,000.The sale was conducted by the U.S Department of the Interior's Bureau of Land Management (BLM) on June 25, 2009 in Springfield, Virginia.The BLM-ES has responsibility for leasing the federally-owned minerals located in the 31 states east of and adjoining the Mississippi River and offers selected parcels at quarterly competitive auctions. Regulations require the bidding to open at $2 per acre. The highest per-acre bid of the auction was by Hanna Oil and Gas Company at $1,650 per acre for subsurface land in Arkansas. The highest bid per parcel also came from Hanna Oil and Gas Company of Fort Smith, Arkansas at $128,975 for a single 736.87-acre parcel in Arkansas.Leases are awarded for a term of 10 years, and as long thereafter, as there is production of oil and gas in paying quantities. The Federal government receives a royalty of 12 percent of the value of production. Also, 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 next competitive oil and gas lease sale is scheduled for September 17, 2009 in Springfield, Virginia. Visit our web site at www.blm.gov/es for more information about oil and gas lease sales and other BLM programs.
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.