The Bureau of Land Management-Eastern States quarterly oil and gas lease sale resulted in competitive bids for all parcels offered. The sale was held at the BLM-Eastern States Office, Springfield, Virginia on June 16, 2011. The combined bids brought in $7,922,705.50 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 137,000 acres were offered in the sale parcels.
The parcels in the sale were located in Alabama, Arkansas, Louisiana and Mississippi. In Alabama, parcels were sold in Pickens County. In Arkansas, parcels were sold in Pope and Van Buren Counties. In Louisiana, parcels were sold in Vernon, Grant, Winn and Natchitoches Parishes. In Mississippi, parcels were sold in Grenada, Scott, Adams, Wilkinson, Sharkey, Harrison, Amite and Franklin Counties. The highest per-acre bid of the auction was made by Sebastien Land Company of Shreveport, LA, at $20,000.00 per acre for 161.26 acres. It was parcel number 228.
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.
March 17, 2011
BLM Eastern States Oil and Gas Lease Sale Results Summary
Parcels Offered for Auction: 225
Parcels Sold: 225
% Parcels Sold: 100%
Acres Offered: 137,602.54
Acres Sold: 137,602.54
Acres Sold: 100%
Average Bid/Acre: $55.84
Average Bid/Parcel: $34,149.40
Highest Bid/Acre: $20,000.00
Parcel # with High Bid/Acre: 228
Highest Bid/Parcel: $3,240,000.00
Parcel with High Total Bid: 228
Total Bonus Bid: $7,683,616.00
Total Rental Due: $206,554.50
Total Administrative Fees Due: $32,625.00
Total Receipts Due: $7,922,795.50
Source: U.S. Department of the Interior, Bureau of Land Management
