The Bureau of Land Management-Eastern States quarterly oil and gas lease sale resulted in competitive bids over $34 million on June 23, 2010. This was the largest dollar amount of any BLM sale this year, and the highest dollar amount ever for a BLM-Eastern States lease auction. The sale was held at the BLM-Eastern States Office, in Springfield, Virginia. Ninety-eight percent of the offered parcels were sold. Regulations require the bidding to open at $2.00 per acre. More than 6,800 acres were offered in the sale.
The BLM offered 57 parcels in Alabama, Mississippi, Louisiana and Arkansas. In Alabama, parcels were sold in Etowah, Tuscaloosa, and St. Clair Counties. In Mississippi, parcels were sold in Copiah, Simpson, Jackson, Amite, Lawrence, and Claiborne Counties. In Louisiana, parcels were sold in Grant, Winn, and DeSoto Parishes. In Arkansas, parcels were sold in White, Cleburne, and Van Buren counties. The 56 combined parcels were sold for $34,221,192.00. The highest per-acre bid of the auction was made by Matador Resources Company of Dallas, Texas at $31,000 per acre for 639.76 acres in DeSoto Parish, Louisiana.
State
Number of Acres Offered
Number of Acres Sold
% Sold
Total to the State
Total to the U.S. Government
Total
AL
746.2
586.2
79%
$ 528.50
$ 2,396.00
$ 2,924.50
AR
552.51
552.51
100%
$ 295,226.25
$ 1,049,080.25
$ 1,344,306.50
LA
3,352.66
3,352.66
100%
$16,412,338.13
$ 16,431,219.88
$ 32,843,558.00
MS
2,458.53
2,485.53
100%
$ 16,048.75
$ 32,798.75
$ 48,847.50
Total
7,034.3
6,874.3
98%
$16,724,141.63
$ 17,515,494.88
$ 34,239,636.50
Leases are awarded for a term of ten years and as long thereafter as there is production of oil and gas in paying quantities. The Federal government receives a royalty of 12 and one-half percent of the value of production. Each state government receives a 25 percent minimum share of the bonus bid and the royalty revenue from each lease issued in that state.
The BLM manages more land -- 253 million acres -- than any other Federal agency. This land, known as the National System of Public Lands, is primarily located in 12 Western states, including Alaska. The Bureau, with a budget of about $1 billion, also administers 700 million acres of sub-surface mineral estate throughout the nation. The BLM's multiple-use mission is to sustain the health and productivity of the public lands for the use and enjoyment of present and future generations. The Bureau accomplishes this by managing such activities as outdoor recreation, livestock grazing, mineral development, and energy production, and by conserving natural, historical, cultural, and other resources on public lands.
June 23, 2010
BLM Eastern States Oil and Gas Lease Sale Results Summary
Parcels Offered for Auction: 57
Parcels Sold: 56
% Parcels Sold: 98%
Acres Offered: 7,034.30
Acres Sold: 6,874.30
% Acres Sold: 98%
Average Bid/Acre Sold: $4,978.13
Average Bid/Parcel Sold: $611,092.71
Highest Bid/Acre: $31,000.00
Parcel with High Bid/Acre: 32
Highest Bid/Parcel: $19,840,000.00
Parcel with High Total Bid: 32
Total Bonus Bid: $34,221.192.00
Total Rental Due: $10.324.50
Total Administrative Fees Due: $8,120.00
Total Receipts Due: $34,239,636.50
Source: U.S. Department of the Interior, Bureau of Land Management
