June Oil and Gas Lease Sale Nets Over $800,000
Organization
BLM Office:
Media Contact:
The Bureau of Land Management-Eastern States (BLM-ES) quarterly oil and gas lease sale resulted in competitive bids for all but one of the 51 parcels offered. The sale was held at the BLM-ES office, Springfield, Va. on June 14, 2012. The combined bids brought in $838,707.50 that is distributed between the Federal government and the states where the parcels were located. Regulations require the bidding to open at $2.00 per acre. More than 49,800 acres were offered in the sale parcels.
The parcels in the sale were located in Arkansas, Louisiana and Mississippi. In Arkansas, parcels were sold in Conway and Sebastian counties. In Louisiana, parcels were sold in DeSoto and Natchitoches parishes. In Mississippi, parcels were sold in Forrest, Jasper, and Scott counties. The highest per-acre bid of the auction was made by R & R Royalty, Ltd., Corpus Christi, Texas at $425 per acre for over 230 acres in Scott County, Miss. For more details about the sale, go to http://www.blm.gov/es/st/en/prog/minerals/current_sales_and.html.
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 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.