The Department of the Interior’s Bureau of Land Management (BLM) said that 91 parcels of federal land generated a total revenue of $464,222 through a competitive auction of oil and gas leases conducted on Sept. 25 in Springfield, VA.

The oil and gas lease auction included properties in Arkansas, Louisiana and Ohio. The BLM awards leases with 10-year terms and as long thereafter as there is production of oil and gas in paying quantities. Under the arrangement, the Federal Government receives a royalty of 12.5% of the value of production, while each state government receives a 25% minimum share of the bonus bid and the royalty revenue from each lease issued in that state.

The BLM has the responsibility for leasing the federally-owned minerals located in the 31 states east of and adjoining the Mississippi River and offers selected parcels at quarterly competitive auctions. Regulations require the bidding to open at $2 per acre. In the late September auction, Carlton Oil Corp. paid $4,356 for a 121-acre parcel in Monroe County, OH. Its bid of $36.00 per acre was the highest per-acre bid of the auction.

In Arkansas, 77 parcels of land were offered and 74 were sold totaling more than 117,000 acres, contributing $288,935 in federal revenue and $132,796 in state revenue. Ohio saw 14 out of 15 parcels sold, totaling over 2,281 acres, contributing $25,648 to federal pockets and $8,549 to state funds. Louisiana sold three of six parcels for a total of more than 214 acres, funneling $839 to federal and $629 to state revenues.

The next competitive oil and gas lease sale is scheduled for Dec. 18. For more information, visit the BLM’s website at www.es.blm.gov.

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