The Bureau of Land Management-Eastern States (BLM-ES) quarterly oil and gas lease sale resulted in competitive bids for all but one of the 51 parcels offered. The sale was held at the BLM-ES office, Springfield, Va. on June 14, 2012. The combined bids brought in $838,707.50 that is distributed between the Federal government and the states where the parcels were located. Regulations require the bidding to open at $2.00 per acre. More than 49,800 acres were offered in the sale parcels.
The parcels in the sale were located in Arkansas, Louisiana and Mississippi. In Arkansas, parcels were sold in Conway and Sebastian counties. In Louisiana, parcels were sold in DeSoto and Natchitoches parishes. In Mississippi, parcels were sold in Forrest, Jasper, and Scott counties. The highest per-acre bid of the auction was made by R & R Royalty, Ltd., Corpus Christi, Texas at $425 per acre for over 230 acres in Scott County, Miss. For more details about the sale, go to http://www.blm.gov/es/st/en/prog/minerals/current_sales_and.html.
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
