BLM-Utah oil and gas lease sale nets nearly $186,617.00
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SALT LAKE CITY — In keeping with the Administration’s goals of promoting American energy independence, the Bureau of Land Management Utah quarterly oil and gas lease sale resulted in competitive bids for 11 of the 12 parcels offered. One additional parcel located in the Idaho Falls District, Pocatello Field Office, Idaho, was deferred from this sale.
Bro Energy LLC, of Salt Lake City, Utah, submitted the highest total bid per acre —$30.00 — for parcel 41 in the Vernal Field office area. Wapiti Rocky Mountain LLC, of Houston, Texas, submitted the highest total bid per parcel — $41,800.00 — for parcel 33, also located in the Vernal field office area. For more details about the sale results, please visit: http://go.usa.gov/xXk8c.
Under authority granted the BLM by Congress in the 2015 National Defense Authorization Act and in the Code of Federal Regulations, BLM-Utah conducted the lease sale online via www.energynet.com.Each parcel had its own bidding period that lasted two hours, and the public could observe the sale in real-time by logging on to the website.
Oil and gas lease sales support domestic energy production and American energy independence. The BLM’s energy program includes an all-of-the-above approach that includes oil and gas, coal, strategic minerals and renewable sources, all of which can be developed on public lands.
The BLM’s policy is to promote oil and gas development if it meets the guidelines and regulations set forth by the National Environmental Policy Act of 1969 and other subsequent laws and policies passed by the U.S. Congress. The sales are also in keeping with the Administration’s goal of American energy independence, which includes development of fossil fuels and coal, as well as renewable energy.
Oil and gas 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 20, 2018
BLM-Utah Oil and Gas Lease Sale Results Summary
- Parcels Offered for Auction : 13 (1 Idaho)
- Parcels Sold : 1
- % Parcels Sold : 84.62%
- Acres Offered : 13,593.760
- Acres Sold : 12,677.530
- % Acres Sold : 93.26%
- Average Bid / Acres Sold : $13.08
- Average Bid/ Parcel Sold : $15,076.00
- Highest Bid/Acre : $30
- Parcel with High Bid/Acre : 41
- Highest Bid/Parcel : $41,800.00
- Parcel with High Total Bid : 33
- Total Bonus Bid : $165,836.00
- Total Rent Due : $19,021.50
- Total Administrative fees Due : $1,760.00
- Total Receipts Due : $186,617.50
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.