SALT LAKE CITY — The Bureau of Land Management in Utah received bonus bids totaling $256,248.50 for 11 parcels covering 13,344 acres at the quarterly oil and gas lease sale held Tuesday at the BLM-Utah State Office in Salt Lake City.
The BLM sold 11 of the 14 offered parcels. In addition to the bonus bids, the sale grossed $20,023.50 in rental fees and $1,705 in administrative fees, for $277,977 in total receipts from this lease sale. Receipts from federal oil and gas leases are shared with the state and county where the leased lands are located.
Finley Resources Inc., of Fort Worth, Texas, submitted both the highest total bid per acre, $500, and the highest total bid per parcel, $107,000, for parcel 132 located in the Vernal Field Office.
Oil and gas leases are issued with conditions on activities designed to protect the environment and other natural resources; these conditions can include limits on when drilling can occur or restrictions on surface occupancy.
Once an operator proposes exploration or development on a BLM-issued lease, further site-specific environmental analysis is conducted to determine the need for additional mitigation measures. Many operators routinely use best management practices, such as directional drilling or remote monitoring of producing wells, to further minimize potential surface impacts.
Additional information regarding competitive sale lists, detailed results of oil and gas lease sales or the leasing process is available by writing the Bureau of Land Management, 440 W. 200 South, Ste. 500, Salt Lake City, Utah 84101, or by visiting the BLM website.
| May 2015 – BLM-Utah Oil and Gas Lease SaleResults Summary | |
| Parcels offered for auction | 14 |
| Parcels sold | 11 |
| Percent parcels sold | 79 percent |
| Acres offered | 15,265 |
| Acres sold | 13,344 |
| Percent acres sold | 87 percent |
| Average bid/acre Sold | $19 |
| Average bid/parcel Sold | $23,295 |
| Highest bid/acre | $500 |
| Parcel with high bid/acre | 132 |
| Highest bid/parcel | $107,000 |
| Parcel with high total bid | 132 |
| Total bonus bid | $256,248.50 |
| Total rental due | $20,023.50 |
| Total administrative fees due | $1,705 |
| Total receipts due (includes bonus bids, first year’s rental and processing fees) | $277,977 |
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$277,977? Doesn’t seem we’re getting much bang for our buck!