The Bureau of Land Management (BLM) generated $2,673,900 during its quarterly oil and gas competitive lease sale held in Reno today, selling 66 parcels that comprised 137,932 acres. Of the total sale receipt amount, $2,457,405 is bonus bid revenue.
The BLM offered 106 parcels encompassing 215,630 acres. The highest bid parcel was $179,200 and the highest bid per acre was $80, with the parcel located in Nye County. The highest bid per parcel and highest bid per acre came from John L. Obourn, Jr. of Littelton, Colorado.
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 December 13, 2011.