BLM auctions oil leases on 25 parcels
Eagle Exploration of Reno leased three parcels of land totaling 3,117 acres during the Bureau of Land Management’s quarterly auction of oil and gas leases held last week.
Eagle’s lease of a 920-acre parcel in Nye County at $145 per acre netted $133,400 for the BLM, which took in a total of $662,962 on 25 parcels comprising 44,959 acres. The BLM offered a total of 81 parcels encompassing 156,514 acres.
Kirkwood Oil & Gas of Casper, Wyo. was the auction’s most-active bidder, snapping up 14 leases totaling 25,413 acres. The company spent $190,554 on its holdings.
Leases are for a period of 10 years and include annual rentals of $1.50 per acre for the first five years and $2 an acre after that until production begins. If a lease holding produces oil or gas, the BLM charges a royalty of 12.5 percent.
The next BLM oil and gas lease sale is scheduled for September 13.
“We’re seeing indications that Nevada consumers are feeling the financial effects of the pandemic more than the national average and are beginning to tighten their household budgets,” says Bryan Wachter, Senior Vice President of Government and Public Affairs of RAN.