March Oil and Gas Lease Sale Nets Over $5.4 Million
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The Bureau of Land Management-Eastern States quarterly oil and gas lease sale resulted in competitive bids for all parcels offered. The sale was held at the BLM-Eastern States Office, Springfield, Va. on March 15, 2012. The combined bids brought in $5,414,155.50 that is distributed between the Federal government and states where the parcels were located. Regulations require the bidding to open at $2.00 per acre. More than 115,000 acres were offered in the sale parcels.
The parcels in the sale were located in Alabama, Louisiana and Mississippi. In Alabama, parcels were sold in Pickens, Escambia, Covington and Bibb counties. In Louisiana, parcels were sold in Caldwell, Caddo, Bossier, Vernon, Rapides and Natchitoches parishes. In Mississippi, parcels were sold in Smith, Scott, Wayne and Franklin counties. The highest per-acre bid of the auction was made by MRC Energy Company, Dallas, Texas at $7,200 per acre for over 25 acres in Bossier Parish, La.
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.
March 15, 2012
BLM Eastern States Oil and Gas Lease Sale Results Summary
Parcels Offered for Auction:
93
Parcels Sold:
93
% Parcels Sold:
100%
Acres Offered:
115,197.67
Acres Sold:
115,197.67
Average Bid/Acre Sold:
$45.38
Highest Bid/Acre:
$7,200
Parcel with High Bid/Acre:
92
Highest Bid/Parcel:
$880,000
Parcel with High Total Bid:
24
Total Bonus Bid:
$5,227,347.00
Total Rental Due:
$172,858.50
Total Filing Fees Due:
$13,950.00
Total Receipts Due:
$5,414,155.50
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.