Washington, DC�The US Minerals Management Service (MMS) and Wyoming Thursday offered to sell about 6,600 b/d of royalty crude from federal and state leases. This offering is the fifth sale in the federal-state royalty in-kind (RIK) test program.
The governments are taking and selling their oil royalties rather than the usual practice of taking cash payments from producers. The most recent sale offered 4,900 b/d for production from April through September.
The current sale offers 6,600 b/d from leases in the Bighorn and Powder River basins of Wyoming. Bids will be accepted on specific pipeline subgroups and entire packages of Wyoming sweet, sour, and asphaltic-sour crude. Delivery will begin Oct. 1 and continue for 6 months.
In another RIK test program, MMS earlier said it would begin taking its royalty share of gas production from leases connected to the Matagorda Offshore Pipeline System in the Gulf of Mexico. The MMS will offer about 25 MMcfd of gas for a 3-month term beginning Aug. 1.