June 2016 Oil and Gas Lease Sale Conducted Successfully by BLM Nevada
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The Bureau of Land Management (BLM) generated $31,027 during its legally mandated quarterly oil and gas competitive lease sale held in Reno today, selling 3,764.96 acres located in the Battle Mountain District. The sale high bid was $21 per acre.The BLM offered 74,661 acres for lease out of the 134,461 acres originally nominated by industry. A total of 59,839 acres were removed from the sale or deferred in areas where there were incompatible uses, including sage grouse habitat, wilderness and large scale mining activity.The lease is for a period of 10 years with annual rentals of $1.50 per acre for the first five years and $2 an acre after that until production begins. Once a lease is producing, a royalty of 12.5 percent is charged. Nearly half the bid and rental receipts go to the state of Nevada. The BLM Nevada offers quarterly oil and gas sales as mandated by federal law.Oil and gas leasing is just one of many uses that the BLM permits as part of its multiple use mission. The agency also leases land for renewable energy development which, in Nevada, includes solar, wind, geothermal and alternative technologies like the ARES rail based energy storage system.A complete summary of the parcels offered and the winning bids is available online. The next oil and gas sale is scheduled for December 13, 2016.
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.