March oil and gas lease sale nets over one million dollars
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The Bureau of Land Management Eastern States (BLM ES) quarterly oil and gas lease sale resulted in competitive bids for all of the 63 parcels offered. The sale was held at the BLM ES office, Springfield, Va. on March 21, 2013. The combined bids brought in $1,279,351 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.
The BLM ES offered 63 parcels in Louisiana, Michigan and Mississippi. In Louisiana, parcels were offered in Desoto, Bossier, Natchitoches, Vernon, and Rapides parishes. In Michigan, parcels were offered in Allegan and Roscommon counties. In Mississippi, parcels were offered in Clark, Franklin, Madison, Scott, Amite, and Wilkinson counties. The highest bid per acre of the auction was made by MRC Energy Company of Dallas, Texas, at $5,250 per acre for 2.40 acres in Bossier Parish, Louisiana. 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.