BLM: Utah oil and gas lease sale nets over $1.5 million

An oil well. Undated. Photo by Maciej Bledowski/iStock/Getty Images Plus, St. George News

SALT LAKE CITY — The Bureau of Land Management Utah quarterly oil and gas lease sale resulted in competitive bids for all of the over 51 million acres offered.

Under authority granted the BLM by Congress in the 2015 National Defense Authorization Act and in the Code of Federal Regulations, BLM-Utah conducted the lease sale online. Each parcel had its own bidding period that lasted two hours, and the public could observe the sale in real-time by logging on to the website.

Lasrich Lane, of Sandy, Utah, submitted the highest total bid per acre – $93.00 – for parcel 34 in the Monticello field office area. Context Energy Co. LLC, of Denver, submitted the highest total bid per parcel – $145,600.00 – for parcel 44, also located in the Monticello field office area. For more details about the sale results, go here.

Oil and gas leases sales support domestic energy production and American energy independence. 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.

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 sales are also in keeping with the current administration’s America First Energy Plan, which includes development of fossil fuels and coal, as well as renewable energy.

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 1/2 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.

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Twitter: @STGnews


March 20, 2018

BLM-Utah Oil and Gas Lease Sale
Results Summary

 Parcels Offered for Auction 43
 Parcels Sold 43
 % Parcels Sold 100.00 %
 Acres Offered 51,482.940
 Acres Sold 51,482.940
 % Acres Sold 100.00%
 Average Bid/Acre Sold $28.68
 Average Bid/Parcel Sold $34,337.67
 Highest Bid/Acre $ 93
 Parcel with High Bid/Acre 34
 Highest Bid/Parcel $145,600.00
 Parcel with High Total Bid 44
 Total Bonus Bid $1,476,520.00
 Total Rental Due $77,239.50
 Total Administrative Fees Due $6,880.00
 Total Receipts Due* $1,560,639.50

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