Oil and gas lease auction brings in nearly $667,000
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(BILLINGS, Mont.) – Bids on oil and gas leases in Montana brought in $666,900 in an online auction held December 11-12 by the Bureau of Land Management.
Two hundred four parcels covering 99,265.87 acres of federal land in Montana were offered during the two-day online auction. Bids were received on 55 parcels, totaling 25,168.76 acres.
Hoover & Stacy, Inc., of Cheyenne, Wyo., was the highest bidder, paying a total of $85,660 for a lease on a 600-acre parcel in Big Horn County in southeastern Montana.
The BLM awards oil and gas leases for a period of 10 years, and for as long thereafter as there is production in paying quantities.
The revenue from the sale of federal leases, as well as the 12.5 percent royalties collected from the production of those leases, is shared between the federal government and the states.
Potential environmental effects that could result from exploration and development are analyzed before any parcels are made available for leasing. All leases come with conditions on oil and gas activities to protect the environment that can include limits on when drilling can occur or restrictions on surface occupancy.
Once an operator proposes exploration or development on a BLM-issued lease, further environmental analysis under the National Environmental Policy Act is conducted to determine the site-specific need for various types of impact limiting or mitigation measures. In addition, many operators routinely use best management practices, such as remote monitoring of producing wells and multiple wells per pad, to minimize surface impacts.
Making parcels available in quarterly oil and gas lease sales is one way the BLM supports the America First Energy Plan, which allows the free market system to determine if energy development on public lands is feasible.
– BLM –
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.