March oil and gas lease sale nets over $284,000
Organization
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SALT LAKE CITY — In keeping with the Administration’s goals of promoting American energy independence, the Bureau of Land Management (BLM) Utah quarterly oil and gas lease sale resulted in competitive bids for 22 parcels offered in the BLM’s Green River District, totalling over $284,000 in receipts.
R&R Royalty of Corpus Christi, Texas submitted the highest total bid per acre —$501 — for parcel 23, and the highest total bid per parcel — $120,240 — also for parcel 23. For more details about the sale results, please visit: http://go.usa.gov/xXk8c.
Revenues from onshore oil and gas production on federal lands directly fund the U.S. Treasury and state budgets, and support public education, infrastructure improvements, and other state-determined priorities. Forty-eight percent of lease sale revenue goes to the state while the remainder is transferred to the U.S. Treasury. The state also receives half of the revenue from royalties if oil and gas is developed on the lease.
The BLM is a key contributor to the Trump Administration's America-First Energy Plan, an all-of-the-above strategy that includes oil and gas, coal, strategic minerals, and renewable sources such as wind, geothermal, and solar – all of which can be produced on public lands.
Responsible energy development includes thoughtful consideration of parcels nominated for leasing as well as the potential resource impacts of the decision to lease. An additional environmental review will take place at the Application for Permit to Drill stage, where additional site-specific Conditions of Approval can be placed on the permit, in addition to the lease stipulations.
Background
By law, the BLM is required to offer quarterly oil and gas leases sales of available Federal lands. BLM state offices conduct lease sales quarterly when parcels are available for lease. These lease sales represent parcels that cleared environmental review and public comment. The BLM issues both competitive and non-competitive leases for a 10-year period. The leases are a contract to explore and develop any potential oil and gas. The lease may be extended if the production is established on the lease, otherwise the lease will expire after the primary term of 10 years.
The BLM generated a record $1.1 billion from 28 oil and gas lease sales in Fiscal Year (FY) 2018. The oil and gas industry on public lands in Utah contributed $2.6 billion in total economic output and jobs for FY 2017. Revenues from onshore oil and gas production on federal lands directly fund the U.S. Treasury, state budgets and support public education, infrastructure improvements, and other state-determined priorities.
March 10, 2020
BLM Utah Oil and Gas Lease Sale
Results Summary
Parcels Offered for Auction 25
Parcels Sold 22
% Parcels Sold 88%
Acres Offered 32,713.76
Acres Sold 28,491.58
% Acres Sold 87.09%
Average Bid/Acre Sold $8.34
Average Bid/Parcel Sold $9,503.32
Highest Bid/Acre $501
Parcel with High Bid/Acre 23
Highest Bid/Parcel $120,240
Parcel with High Total Bid 23
Total Bonus Bid $237,583
Total Rental Due $42,747
Total Administrative Fees Due $3,740
Total Receipts Due $284,070
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.