BLM reports results of eastern states lease sale

The US Bureau of Land Management’s latest quarterly eastern states oil and gas lease sale attracted nearly $1.4 million in competitive bids on 30 of 31 available parcels totaling about 3,031 acres in Alabama, Mississippi, Louisiana, and Ohio.

The US Bureau of Land Management’s latest quarterly eastern states oil and gas lease sale attracted nearly $1.4 million in competitive bids on 30 of 31 available parcels totaling about 3,031 acres in Alabama, Mississippi, Louisiana, and Ohio, the US Department of the Interior agency reported.

BLM said the highest total bid of $301,080 in the sale, held Sept. 12, was made by BOP Acquisition LLC for a 119.6-acre parcel on the Wayne National Forest in Monroe County, Ohio, at $2,509/acre.

The parcel that did not receive bids will be available for noncompetitive lease for a period of 2 years beginning on the first business day following the lease sale date, BLM said.

It noted that it awards federal 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. The federal government receives a royalty of 12.5% of the value of production. Each state government receives a 25% minimum share of the bonus bid and the royalty revenue from each lease issued in that state, BLM said.

Contact Nick Snow at nicks@endeavorb2b.com.

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