The Bureau of Land Management (BLM) generated $131,245 during its quarterly oil and gas competitive online lease sale March 14. Twenty parcels totaling 35,502.86 acres in Elko and Eureka Counties received bids.
A lease is the first step before eventually applying to develop and produce oil and gas from the public mineral estate. Additional planning, environmental analysis and public input must occur before drilling can begin. If drilling occurs, every lease will require reclamation and contain standard terms and stipulations designed to protect air, water, wildlife, and historic and cultural resources.
The lease is 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 the bid and rental receipts go to the state of Nevada.
A complete summary of the parcels offered and the winning bids is available online at: https://on.doi.gov/2nntQCJ. The next oil and gas sale is scheduled for June 13, 2017.
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