BLM Posts Results of Oil and Gas Sale

The Bureau of Land Management (BLM) generated $280,123 during its quarterly oil and gas competitive lease sale held in Reno on September 14, selling 21 parcels that comprised 42,762 acres. Of the total sale receipt amount, $212,928 is bonus bid revenue.

The BLM offered 72 parcels encompassing 153,237 acres. The highest bid per parcel was $29,610 and the highest bid per acre was $18.50, with both parcels located in Nye County. The highest bid per parcel came from Kirkwood Oil & Gas LLC of Casper, Wyoming, and the highest bid per acre came from Makoil Inc. of Las Vegas.

The leases are for a period of 10 years with annual rentals of $1.50 per acre for the first five years and $2 an acre after that until production begins. Once a lease is producing, a royalty of 12.5 percent is charged. Nearly half of the bid and rental receipts go to the state of Nevada.

The BLM received $68,586 in bonus bids in the June 2010 quarterly competitive sale with 23 parcels sold. The highest bid per parcel was $4,958 sold for a parcel located in Eureka County. All parcels sold received the minimum bid of $2 per acre.

A complete listing of the parcels offered and the winning bidders is available on-line at: www.blm.gov/nv/. The next sale is tentatively scheduled for March 8, 2011.