The U.S. Bureau of Land Management (BLM) on Thursday sold all of its four parcels and 4,174.46 acres offered in an oil/gas lease auction, pulling in bonus bids that totaled $110,263.
When rental and administrative fees were added in, BLM said the sale's total receipts were $117,167, to be shared with state and county governments in which the leased lands are located, an agency spokesperson in Salt Lake City said.
Orem, UT-based Par Five Exploration LLC submitted the highest bids, both per-acre and per-parcel. The former was $50/acre for Parcel 13 and the latter was $36,720 for Parcel 24, both in the Canyon County District area.
Among the bidders were exploration and production companies from seven states, including one each from New York and Indiana. Half of the bidders were from Texas or Utah.
One of the Utah-based companies, Par Five Exploration, ended up with the winning bid for each parcel with a per-acre price range of $22-50/acre, and per-parcel bids of $35,925 for Parcel 12; $2,000 for Parcel 13; $35,618 for Parcel 22 and $36,720 for Parcel 24.
"Oil and gas leases are issued with conditions on activities designed to protect the environment and other natural resources," said the BLM spokesperson, adding that the conditions can include "limits on when drilling can occur or restrictions on surface occupancy."
When an operator proposes exploration and production activity on a BLM-issued lease, additional site-specific environmental analysis is conducted to determine the need for mitigation measures.
As is becoming more common, BLM used the EnergyNet Internet-based auction system.