The Bureau of Land Management (BLM) generated $662,962 during its quarterly oil and gas competitive lease sale held in Reno today, selling 25 parcels that comprised 44,959 acres. Of the total sale receipt amount, $591,888 is bonus bid revenue. Some parcels sold for more than $2 per acre.
The BLM offered 81 parcels encompassing 156,514 acres. The highest bid per parcel was $133,400 and the highest bid per acre was $145, with the parcel located in Nye County. The highest bid per parcel and highest bid per acre came from Eagle Exploration of Reno, Nevada.
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.
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 September 13, 2011.
This Is Reno is your source for award-winning independent, online Reno news and events since 2009. We are locally owned and operated.