The Utah office of the Bureau of Land Management (BLM) reported that its June oil and gas lease sale last Friday was the largest ever in the state both in terms of acres leased and total bids received. BLM leased 123 parcels consisting of 203,077 acres, and the sale netted $9.95 million.

“Mineral resources on Utah public lands play a key role in meeting energy demands in the Rocky Mountain region,” said Kent Hoffman, Utah BLM’s deputy state director of lands and minerals. Last year, 138 Bcf of natural gas was produced on public lands in Utah.

He said roughly two-thirds of the lands that were offered were located in areas where exploration for oil and gas has been sparse in the past (Juab, Millard, Sanpete and Sevier counties). “Interest in new locations reflects escalating energy prices and increasing demands,” he said. “New advances in mineral extraction technology have also made development in some areas more feasible.”

A total of 164 parcels containing more than 281,253 acres of land were offered at the oral auction on Friday. Bids ranged from $2 to $650 per acre. The high bid totaling $254,800 was received from Denver-based Baseline Minerals Inc. for a parcel in Uintah County. Armstrong Resources submitted the second highest bid of $648,000 for a parcel in Sevier County. The parcels that were not bid on will be open for non-competitive bid for the next two years.

While the June lease sale was the largest in Utah in terms of acreage, 133,146 acres were deferred or deleted from the sale due to wilderness status. Lands nominated in Dirty Devil, Desolation Canyon, Jack Canyon, Bull Canyon and White River also were not offered at the sale.

Utah BLM conducts quarterly oil and gas lease sales. Half of the royalties from minerals development and leasing goes back to the state.

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