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, Va. on December 7, 2011. The combined bids brought in $499,111 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 17,646 acres were offered in the sale parcels.
The parcels in the sale were located in Mississippi and Louisiana. In Mississippi, parcels were sold in Wilkinson, Smith, Franklin, Covington and Grenada Counties. In Louisiana, parcels were sold in Rapides Parish. The highest per-acre bid of the auction was made by R&R Royalty, Ltd. of Corpus Christi, Texas at $325 per acre for over 444 acres in Rapides Parish, La.
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.
Source: U.S. Department of the Interior, Bureau of Land Management
