The U.S. Bureau of Land Management (BLM) in Utah reported Tuesday that it completed an oil and natural gas lease sale for 11 or 12 parcels offered, netting $186,617.
Houston-based Wapiti Rocky Mountain LLC submitted the highest bid per-parcel, $41,800 for Parcel 33 located in BLM's Vernal field office area. Salt Lake City-based Bro Energy LLC submitted the highest total bid per-acre, $30, for Parcel 41 in the Vernal office area.
Of the 13,593 acres offered, 12,677 acres were leased.
The leases are awarded by BLM for 10-year terms and as long thereafter as there’s production of oil and gas in "paying quantities." The federal government receives a 12.5% royalty on the production value, and the state receives a 25% minimum share of the bonus bid and royalty revenue from each lease issued.
Last month, BLM sought public comment about a proposal to reduce restrictions on oil/gas leasing in several western states with greater sage grouse habitat. The BLM said it may also hold hearings or meetings over its proposal.
At about the same time in May, three landowners and two environmental groups challenged two recent BLM lease sales of 287 parcels in Montana, alleging in federal court that the agency ignored the potential environmental impacts of prospective oil and natural gas drilling.