ELKO – The Bureau of Land Management’s quarterly oil and gas lease sale captured bids on more than a third of the 32,342 acres offered in Elko and White Pine counties, the agency announced.
The combined bids for 9,163 acres brought in $38,601, which will be distributed between the federal government and Nevada. The BLM offered 28 parcels. The highest bids were from D.Y. Oil LLC and Kirkwood Oil & Gas LLC, with both selling for $4 an acre.
The BLM cited the Trump administration’s goal of promoting energy independence when it announced the results.
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“The BLM’s energy program includes an all-of-the-above approach that includes oil and gas, coal, strategic minerals and renewable sources, all of which can be developed on public lands,” the agency stated. The sales are also in keeping with the administration’s America First Energy Plan, which includes development of fossil fuels and coal, as well as renewable energy.
Oil and gas leases are awarded for a term of 10 years and as long thereafter as there is production of oil and gas in paying quantities. The federal government receives a royalty of 12.5 percent of the value of production. Each state government receives a 25 percent minimum share of the bonus bid and the royalty revenue from each lease issued in that state.