The Bureau of Land Management (BLM) generated $1,814.00 during its quarterly oil and gas competitive lease sale held in Reno on December 9, 2014, selling 1 parcel that comprised 473.22 acres. The sale high bid at $2.00 per acre was made by Kirkwood Oil & Gas, LLC.
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 97 parcels totaling 189,176.96 acres on the Ely District in eastern Nevada. The initial sale list included 100 parcels totaling 194,360.96 acres. 3 parcels totaling 5,184 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 at: http://on.doi.gov/1oXmCgT. The next oil and gas sale is scheduled for March 10, 2015.
Source: U.S. Department of the Interior, Bureau of Land Management
