The oil and gas lease sale by the Bureau of Land Management last week netted more than $8.2 million in revenue for Oklahoma, New Mexico and Texas.
Dozens of parcels, including three small tracts in northwest Oklahoma went to the highest bidder. About half of the $8.2 million will go to Oklahoma and the other states, according to the Bureau of Land Management.
Oklahoma’s share won’t be much since the sale involved only a total of approximately 106 acres with an average sales price of $119 an acre. The lease auction involved about 59 acres in Dewey County, 30 acres in Ellis County and 16.55 acres in Custer County.
The Bureau of Land Management awards oil and gas leases for a 10-year term and as long thereafter as there is production of oil and gas in paying quantities. If the leases result in producing oil or gas wells, revenue from royalties based on production is also shared with the state.
Source: Associated Press