The parcels included in this sale are in North Dakota and comprise a total of 3,650.81 acres, according to the BLM’s press release about the new sale, which was announced on Oct. 17.
This choice to sell the lease wasn't made on the spontaneity of the moment. The public was given the opportunity to participate in the scoping process and provide input on the sale that is being planned by the Bureau of Land Management. The transaction will be finalized exactly one month later, on July 2023. Between the 18th of August and the 18th of September, 2023, the environmental impact study and draft Finding of No Significant Impact were made available for public scrutiny. The results of the auction, including the total number of parcels sold and the net revenue statistics, are scheduled to be made public on December 6, 2024, the day that is planned for publication of the results of the auction. You can find additional information regarding the process by clicking on this link: https://eplanning.blm.gov/eplanning-ui/project/2024323/510.
Under the terms of the Inflation Reduction Act, a royalty payment of 16.67% will need to be sent to the Bureau for any leases that are signed after the 5th of December. (You can find more information about general leasing on the BLM's website at https://www.blm.gov/programs/energy-and-minerals/oil-and-gas/leasing). The date that this became official was August 16th, 2022.
According to a statement of explanation that was made public by the Bureau of Land Management, the annual fee for competitive leases would change depending on the stage of the lease. The first two years of a 10-year lease cost $3 per acre, while the subsequent years cost $5 per acre, and the final two years of the lease cost $15 per acre. This is in addition to the royalty payment that we discussed earlier.
The oil and gas leasing scheme was significantly altered as a result of the Act in a variety of ways, in addition to the charge. An act sheet contains a synopsis of the revisions as well as directions for reactivating leases that have been temporarily canceled.
