The Bureau of Land Management-Eastern States quarterly oil and gas lease sale resulted in competitive bids for 91% of the parcels offered. The sale was held at the BLM-Eastern States Office, Springfield, Virginia on December 9, 2010. The combined bids brought in $522,602.50 that is distributed between the Federal government and states where the parcels were located. Regulations require the bidding to open at $2.00 per acre. More than 3,400 acres were offered in the sale parcels.
The parcels in the sale were located in Alabama, Arkansas, Louisiana, Michigan, Mississippi, and Ohio. In Alabama, parcels were sold in Covington and Conecuh Counties. In Arkansas, one parcel was sold in Franklin County. In Louisiana, parcels were sold in Natchitoches, Sabine, Caldwell, Desoto, Caddo, Webster, Bossier, Claiborne, Pointe Coupee, and Winn Parishes. In Michigan, two parcels were sold in Oceana County. In Mississippi, parcels were sold in Perry, Grenada, and Franklin Counties. In Ohio, one parcel was sold in Perry County. Of 32 parcels that were offered for sale, 29 parcels were sold for a total $522,602.50. The highest per-acre bid of the auction was made by Mason Dixon Energy of Bridgeport, WV at $10,175 per acre for 39.30 acres in Desoto Parish, Louisiana.
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.
December 9, 2010
BLM Eastern States Oil and Gas Lease Sale Results Summary
Parcels Offered for Auction: 32
Parcels Sold: 29
% Parcels Sold: 91%
Acres Offered: 3,465.50
Acres Sold: 3,257.68
Acres Sold: 94%
Average Bid/Acre Sold: $112.33
Average Bid/Parcel Sold: $515.72
Highest Bid/Acre: $10,175.00
Parcel with High Bid/Acre: 8
Highest Bid/Parcel: $407,000.00
Parcel with High Total Bid: 8
Total Bonus Bid: $513,497.00
Total Rental Due: $4,900.50
Total Administrative Fees Due: $4,205.00
Total Receipts Due: $522,602.50
Source: U.S. Department of the Interior, Bureau of Land Management
