BLM Oil And Gas Lease Auction Brings In Over $720,000
June 21, 2017 | View PDF
(BILLINGS, Mont.) – Bids on oil and gas leases in northern and southeastern Montana brought in $720,843 in an online auction held June 13, by the Bureau of Land Management.
The sale included 156 parcels encompassing approximately 69,000 acres of federal minerals in Big Horn, Carter, Custer, Fallon, Garfield, Powder River and Rosebud Counties were offered at auction. Bids were received on 49 parcels totaling nearly 15,611 acres.
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.
Domestic oil and gas sales are part of President Trump’s America First Energy Plan to lower costs for hardworking Americans and maximize the use of American resources.
The America First Energy Plan also calls for responsible stewardship of the environment. “Protecting clean air and clean water, conserving our natural habitats, and preserving our natural reserves and resources will remain a high priority.” 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.