The Bureau of Land Management’s March 27 Utah quarterly oil and gas lease sale resulted in competitive bids for 90 of the 111 parcels offered in the Canyon Country, Green River and West Desert Districts.
Crescent Point Energy, of Denver submitted the highest total bid per acre —$15,091 — for parcel 405 in the Vernal Field office area. Crescent Point Energy also submitted the highest total bid per parcel — $15,091 — for parcel 405 in the Vernal Field office area.
The BLM’s policy is to promote oil and gas development if it meets the guidelines and regulations set forth by the National Environmental Policy Act of 1969 and other subsequent laws and policies passed by the U.S. Congress. The agency’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.
Oil and gas leases are awarded for a term of ten years and as long thereafter as there is production of oil and gas in paying quantities. The federal government receives a royalty of 12 and one-half 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.
According to a press release from the BLM, the oil and gas industry on public lands in Utah contributed $2.6 billion in total economic output in FY2017. Continuous exploration, development, and site restoration is required to sustain production rates, jobs, income and royalties, said the press release.