BLM oil and gas lease auction brings in over $300,000
(BILLINGS, Mont.) – Bids on oil and gas leases in North Dakota and South Dakota brought in $314,862 in an online auction held Sept. 12, by the Bureau of Land Management (BLM).
Fifteen parcels encompassing just over 4,400 acres of federal minerals in Dunn County, North Dakota, and Fall River County, South Dakota, were offered at auction. Bids were received on all 15 parcels totaling nearly 4,400 acres.
Magnum Producing, L.P. of Corpus Christi, Texas was the highest bidder, paying $58,149.00 for a 638.17 acre parcel in Fall River County, South Dakota.
Making parcels available in quarterly oil and gas lease sales is one way the BLM supports the America First Energy Plan, which allows the free market system to determine if energy development on public lands is feasible.
BLM oil and gas leases are awarded for a period of 10 years and for as long thereafter as there is production in paying quantities. The revenue from the sale of Federal leases, as well as the 12.5 percent royalties collected from the production of those leases, is shared between the Federal Government and the states.
Potential environmental effects that could result from exploration and development are analyzed before any leases are offered for sale. All leases come with conditions on oil and gas activities to protect the environment that can include limits on when drilling can occur or restrictions on surface occupancy.
Once an operator proposes exploration or development on a BLM-issued lease, further environmental analysis under the National Environmental Policy Act is conducted to determine the site-specific need for various types of impact-limiting or mitigation measures. In addition, many operators routinely use Best Management Practices such as remote monitoring of producing wells and multiple wells per pad to minimize surface impacts.
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