The Bureau of Land Management (BLM) generated $137,472 during its quarterly oil and gas competitive lease sale held in Reno on July 17, selling 27 parcels that comprised 38,070.81 acres. The sale high bid of $5,120 for a 2,560 acre parcel at $2 per acre was made by American General Energy Exploration Corporation.The lease is for a period of 10 years with annual rentals of $1.50 per acre for the first five years and $2 an acre after that until production begins. Once a lease is producing, a royalty of 12.5 percent is charged. Nearly half the bid and rental receipts go to the state of Nevada.The BLM offered 102 parcels totaling 173,921.36 acres. The initial sale list included 166 parcels totaling 285,364 acres. 64 parcels totaling 105,442.64 acres were deferred in areas where there were incompatible uses including sage grouse habitat, wilderness and large-scale mining activity. A complete summary of the parcels offered and the winning bids is available online. The next oil and gas sale is scheduled for September 9, 2014.
Source: U.S. Department of the Interior, Bureau of Land Management
