By OGJ editors
WASHINGTON, DC, May 16 -- An oral oil and gas lease auction sponsored by the US Bureau of Land Management will be held June 4 in Cheyenne, Wyo. BLM will offer 95 parcels totaling 87,120 acres of federal lands within Wyoming and Nebraska.
Auction rules call for a $2/acre minimum bid in bonuses on any parcel, BLM said. This means a buyer will pay the bid price for the right to obtain the federal lease, in addition to a standard $1.50/acre rental on the lease. BLM will also charge winning bidders $75/parcel to help cover administrative costs.
Leases have a 10-year term but can be continued as long as oil or gas is produced in paying quantities for royalty collection purposes.
BLM last month published and mailed out a notice of sale to potential federal oil and gas lease bidders. It contains a complete list of the parcels, conditions of the sale and lease stipulations, also available at BLM's web site.
