SALT LAKE CITY - In keeping with the Administration’s goals of promoting American energy independence, the Bureau of Land Management (BLM) Utah quarterly oil and gas lease sale resulted in competitive bids for each of the seven parcels offered in the West Desert District.
Fiik Exploration, LLC of Salt Lake City, Utah, submitted the highest total bid per acre -$2.00 - for parcel 20, and the highest total bid per parcel - $5,120.00 - for parcel 19. For more details about the sale results, please visit: http://go.usa.gov/xXk8c.
The BLM’s policy is to promote oil and gas development if it meets the guidelines and regulations set forth by the National Environmental Policy Act of 1969 and other subsequent laws and policies passed by the U.S. Congress. The BLM’s energy program includes an all-of-the-above approach that includes oil and gas, coal, strategic minerals and renewable sources, all of which can be developed on public lands.
Oil and gas 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.
The oil and gas industry on public lands in Utah contributed $2.6 billion in total economic output in FY2017. Continuous exploration, development, and site restoration is required to sustain production rates, jobs, income and royalties.
June 11, 2019
BLM-Utah Oil and Gas Lease Sale
Results Summary
Parcels Offered for Auction 7
Parcels Sold 7
% Parcels Sold 100%
Acres Offered 9,822.520
Acres Sold 9,822.520
% Acres Sold 100%
Average Bid/Acre Sold $2.00
Average Bid/Parcel Sold $2,806.86
Highest Bid/Acre $2.00
Parcel with High Bid/Acre 20
Highest Bid/Parcel $5,120.00
Parcel with High Total Bid 19
Total Bonus Bid $19,648.00
Total Rental Due $14,736.00
Total Administrative Fees Due $1,155.00
Total Receipts Due* $35,539.00
Source: U.S. Department of the Interior, Bureau of Land Management
