The Bureau of Land Management Eastern States (BLM ES) quarterly oil and gas lease sale resulted in competitive bids for all of the 22 parcels offered, totaling 18,223.52 acres. The combined bids brought in $425,936.50 that is distributed between the Federal government and the four states where the parcels were located. The sale was held at the BLM ES office, Springfield, Va., March 20, 2014.
Lease parcels sold were in Escambia County, Alabama; Van Buren County, Arkansas; and Wayne County, Mississippi as well as Sabine, Webster, Caddo and Bossier Parishes in Louisiana. The highest bid per acre of the auction was made by R&R Royalty, Corpus Christi, Texas, for a parcel totaling 80 acres located in Escambia County, Alabama, at $4,000 per acre. Regulations require the bidding to open at $2 per acre. 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 10 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
