BLM Montana/Dakotas oil, gas lease sale nets just over $4.5M
May 28, 2014
A Bureau of Land Management (BLM) oil and gas lease auction May 22, 2014, netted $4,582,755 in revenues from the sale of 43 Federal leases, totaling 14,620 acres, in Montana and the Dakotas.
Stewart Geological, Inc. submitted the highest per-acre bid at $3,400 for a 15.73-acre parcel located in Richland County, Montana. The highest single-parcel bid at $862,950.00 was purchased by JBLS Montana, Inc. for a 1,568.48-acre parcel also located in Richland County.
BLM oil and gas leases are awarded for a period of 10 years and for as long thereafter as there is production in paying quantities. The revenue from the sale of Federal leases, as well as the 12.5 percent royalties collected from the production of those leases, is shared between the Federal Government and the states.
Potential environmental effects that could result from exploration and development are analyzed before any leases are offered for sale. All leases come with conditions on oil and gas activities to protect the environment that 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 environmental analysis under the National Environmental Policy Act is conducted to determine the site-specific need for various types of impact-limiting or mitigation measures. In addition, many operators routinely use Best Management Practices such as remote monitoring of producing wells and multiple wells per pad to minimize surface impacts.
The next Montana/Dakotas Federal oil and gas lease sale is scheduled for July 15, 2014, at the BLM's Montana State Office, located at 5001 Southgate Drive, Billings, Montana. Additional information regarding competitive sale lists, detailed results of sales, and the leasing process is available by writing the Bureau of Land Management, 5001 Southgate Dr., Billings, Mont. 59101, by calling (406) 896-5004, or at http://www.blm.gov/mt.