BLM Wyoming oil and gas lease sale garners $61 million
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CHEYENNE, Wyo. — As part of the Bureau of Land Management’s mission to promote domestic energy development as well as conservation of America’s natural resources, BLM Wyoming this week held its third-quarter oil and gas lease sale, bringing in approximately $61 million through competitive bids. In accordance with Secretarial Order 3362 to improve wildlife habitat, the BLM worked closely with the State of Wyoming to develop a sound leasing strategy that protects important wildlife habitat in the Red Desert to Hoback Sublette mule deer migration corridor in southwest Wyoming.
“These impressive third-quarter sale results, which are among our best on record in Wyoming, were obtained while also protecting an important big game migration corridor,” said Deputy Secretary of the Interior David Bernhardt. "Today’s results demonstrate that Wyoming continues to be one of the top energy producers on public lands, generating mineral revenue for the American taxpayer and approximately $29 million for state funding, which will be used to fund K-12 education and improve roads.”
BLM Wyoming originally analyzed 394 parcels nominated for the sale. After close consultation with the state, the BLM deferred 24 entire parcels and portions of two parcels, totaling nearly 21,000 acres. The deferrals include four parcels within the migration corridor, based on the Wyoming Game and Fish Department’s (WGFD) recommendation that the BLM defer certain parcels until the Rock Springs Resource Management Plan revision is completed. The BLM also applied a special lease notice to remaining parcels that overlap the corridor, requiring lessees to work with the BLM and WGFD to minimize potential impacts to big game before development.
“Wildlife like mule deer travel hundreds of miles through this migration corridor each year, and it is our priority to protect this important area while still promoting development and economic opportunities on public lands,” said BLM Deputy Director Brian Steed. “By working with the State of Wyoming, we’ve been able to craft a smart strategy that achieves this balance.”
Ultimately, the BLM offered 348 parcels during the three-day lease sale, receiving bids on 311 parcels. The highest bid received per acre was $13,208. The combined bids from the sale brought in approximately $61 million, of which about $29 million will go directly to the state. The balance goes to the U.S. Treasury.
If the leases result in producing oil or gas wells, revenue from royalties based on production are also shared with the state. The BLM awards oil and gas leases for a term of 10 years and as long thereafter as there is production of oil and gas in paying quantities.
Before drilling can occur, the BLM must issue a permit once the operator 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 BLM’s oil and gas leases sales support American energy independence and the Administration’s America First Energy Plan, 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. For more information, please visit https://go.usa.gov/xQxMN. A detailed results summary will be posted on the web within the coming week.
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.