Springfield

Sixteen of 19 oil and gas leases were sold Thursday by the Bureau of Land Management’s Eastern States division in Springfield, VA, netting more than $65,275. Bonus bids, filing fees, and rental revenue amounting to $47,000 will go to the U.S. Treasury and $18,275 will be shared with the states where the leases are located on lands managed by the BLM. The BLM has 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/acre. Cyberoil Corp. paid $16,320 for a 1709 acre parcel in Johnson County, AK. Its bid of $8/acre was the highest per-acre bid of the auction. Leases are awarded for a term of 10 years and as long thereafter as there is production of oil and gas in paying quantities. The federal government receives a royalty of 12.5% of the value of production. Also, each state government receives a 25% minimum share of the bonus bid and the royalty revenue from each lease issued in that state. The next competitive oil and gas lease sale will be held in March 2004. Visit the web site at www.es.blm.gov for more information about oil and gas lease sales.