Federal Government Leases Land in Arkansas and Louisiana for Oil and Gas Exploration
SPRINGFIELD, Va., Sept. 18 /PRNewswire-USNewswire/ — Ninety-nine (99) parcels of Federal subsurface land in Arkansas and Louisiana brought in almost $8 million during a competitive auction of oil and gas leases in which 100 percent of the available leases sold.
The sale was conducted by the U.S. Department of the Interior’s Bureau of Land Management (BLM) on September 13, 2007 in Springfield, Virginia. Approximately $3.9 Million will go to the U.S. Treasury and $4 Million will be shared by the affected States.
The BLM has responsibility for leasing the federally-owned minerals and offers selected parcels at quarterly competitive auctions. Regulations require the bidding to open at $2 per acre. The highest per-acre bid of the auction was by Stellios Exploration Company of Lafayette, Louisiana at $5,400 per acre for subsurface land in Louisiana. Chesapeake Exploration, LLC of Oklahoma City, Oklahoma paid over $885,000 for a 552 acre parcel in Arkansas.
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 1/2 percent of the value of production. Also, each State government receives a 25 percent 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 is scheduled for December 13, 2007 in Springfield, Virginia. Visit our web site at http://www.blm.gov/es for more information about oil and gas lease sales and other BLM programs.
STATE-BY-STATE COMPETITIVE OIL AND GAS LEASE SALE September 2007 State # of Acreage Federal State Revenue Parcels Offered/Sold Revenue Offered/Sold AR 63/63 28,307.55/ $2,328,168.75 $1,677,465.75 28,307.55 LA 36/36 10,356.30/ $1,419,720.75 $2,540,994.25 10,356.30 99/99 38,663.85/ $3,747,889.50 $4,218,460.00 38,663.85 Background:
The BLM manages more land — 258 million surface acres — than any other Federal agency. Most of this public land is located in 12 Western States, including Alaska. The Bureau, with a budget of about $1.8 billion, also administers 700 million acres of sub-surface mineral estate throughout the nation. The BLM’s multiple-use mission is to sustain the health and productivity of the public lands for the use and enjoyment of present and future generations. The Bureau accomplishes this by managing such activities as outdoor recreation, livestock grazing, mineral development, and energy production, and by conserving natural, historical, and cultural resources on the public lands.
Bureau of Land Management-Eastern States
CONTACT: Karen Roberts of the Bureau of Land Management-Eastern States,+1-703-440-1717
Web site: http://www.blm.gov/es