BLM Sees Tepid Results from Federal Land Lease Sale
In spite of lower oil prices and reduced interest in US drilling, Wyoming remains a key state for US drilling leases. Wyoming sold the most parcels during the recent Bureau of Land Management’s (BLM) online first-quarter oil and gas leases, according to online marketplace EnergyNet.
Raising more than $3.3 million, the Bureau of Land Management (BLM) Wyoming received bids on 75 parcels totaling about 71,689 acres. BLM reviewed 125 parcels nominated for the sale and ultimately offered 105, totaling about 118,216 acres.
As required by law, BLM said it’s proceeding with its quarterly lease sales, which are now held online and have no associated public health risks during the coronavirus pandemic. BLM manages more than 245 million acres of public land located primarily in 12 Western states, including Alaska. BLM generated a record $1.1 billion from 28 oil and gas lease sales in fiscal year 2018.
Other first quarter lease sales results:
BLM Colorado State Office: Received bids for nine parcels covering 10,415 acres. Total high bids of $66,140.
BLM Nevada State Office: Received bids for two parcels covering 1,223 acres. Total high bids of $2,446.
BLM Montana State Office: Received bids for eight parcels covering 5,1814 acres. Total high bids of $28,326.
BLM Eastern States Office: Received bids for three parcels covering 322 acres. Total high bids of $11,863.
BLM Utah State Office: Received bids for 22 parcels covering 28,492 acres. Total high bids of $237,583.
BLM New Mexico State Office: Received bids for 66 parcels covering 16,785 acres. Total high bids of $20,389,528.
BLM is proceeding with its quarterly lease sales, which are now held online and have no associated public health risks during the coronavirus pandemic. BLM manages more than 245 million acres of public land located primarily in 12 western states, including Alaska. In 2018, the bureau generated a record $1.1 billion from 28 federal land oil and gas lease sales.
Leasing is the first step in the process to develop federal oil and gas resources, and it does not authorize drilling. Oil and gas leases are awarded for a term of 10 years and as long thereafter as there is production of oil and gas in paying quantities.
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20 May 2020
20 May 2020