Forty-five parcels of Federal
subsurface mineral estate brought in $677,000 through a competitive auction of
oil and gas leases on the Ouachita and Ozark National Forests in Arkansas, the
DeSoto, Homochitto and Tombigbee National Forests in Mississippi and the
Monongahela National Forest in West Virginia. The sale was conducted by the
U.S. Department of the Interior's Bureau of Land Management - Eastern States
(BLM) on Thursday, June 23, 2005, in Springfield, Virginia. Bonus bids, filing
fees, and rental revenue amounting to $508,000 will go to the U.S. Treasury and
$169,000 will be shared with the three States.
The BLM has responsibility for leasing about 40 million acres of
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. The high
bid an oil gas lease at this auction was made by Robert S. Block of Oklahoma
City, Oklahoma, who paid $356,000 for a 900 acre parcel in Johnson County,
Arkansas.
Leases are awarded for a term of 10 years and as long thereafter as there is
production of oil or 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 and royalty revenue
from each lease that is issued.
The next competitive oil and gas lease sale is scheduled for September 15,
2005. Visit http://www.es.blm.gov/ for more information about oil and gas
lease sales and other BLM programs.
"The quality of American life depends on stable, inexpensive, and readily
available supplies of energy. Energy heats and cools our homes. It fuels our
ambulances, fire trucks, ships, and airplanes. It powers the companies that
create jobs and the agricultural economy that feeds our Nation and the world,"
said BLM - Eastern States Director Mike Nedd. "That is why we are proud to
help provide opportunities for environmentally safe mineral exploration and
development."
Interior Department-managed land and water produce about 30 percent of our
Nation's energy supply. About one-third of our natural gas, coal, and oil,
one-half of geothermal, 17 percent of hydropower, and 10 percent of wind power
are produced in areas managed by the U. S. Department of the Interior.
"The Department of the Interior is committed to implementing President George
W. Bush's long-term strategy to produce traditional sources of energy on
Federal land in an environmentally responsible way, and increase renewable
energy production on Federal land, involving all interested persons in a
careful and open process to meet the Nation's needs while protecting sensitive
resources for future generations," said State Director Nedd.
EASTERN STATES
June 23, 2005
COMPETITIVE OIL AND GAS RESULTS
AR MS WV Total
1. Parcels Offered 25 16 10 51
2. Acres Offered 11,478 4,846 16,342 32,667
3. Parcels Receiving Bids 25 14 6 45
4. Acres Receiving Bids 11,478 4606 10,791 28,876
5. State Shares $135,100 $4,200 $29,200 $168,500
6. Federal Receipts $508,500
7. Total Federal Receipts and State Share $677,000
DATASOURCE: U.S. Department of Interior, Bureau of Land Management, Eastern
States
CONTACT: Joe Zilincar of the U.S. Department of Interior, Bureau of Land
Management, Eastern States, +1-703-440-1713
Web site: http://www.es.blm.gov/