Bonus bids for a total of 32,180 acres (19,292 acres in North Dakota and 12,788 acres in South Dakota) at the Bureau of Land Management’s July 12 oil and gas lease sale in Billings totaled $66,259,552.
Two North Dakota parcels received the highest bid per acre of $8,800, which were submitted by Irish Oil and Gas of Bismarck, ND, and Continental Resources Williston. The highest single-parcel bid, submitted by Hess Corporation, Houston, TX, was $6,217,800 for a 723-acre parcel in Williams County, North Dakota. All 111 parcels offered for lease received bids.
Additional information regarding competitive sale lists, detailed results of sales or the leasing process is available by writing the Bureau of Land Management, 5001 Southgate Dr., Billings, MT, 59101, by calling 406-896-5004, or online at http://www.blm.gov/mt/st/en/prog/energy/oil_and_gas/leasing/leasesaleinfo.html.
Oil and gas leasing is driven by consumer demand, and competitive oil and gas lease sales are conducted several times per year at BLM’s Montana/Dakotas State Office. Receipts from federal oil and gas leases are shared with the state or county where the lands are located. All leases are issued for a 10-year term.
Potential environmental effects that could result from exploration and development are analyzed before any leases are offered for sale. All leases are issued with conditions on oil and gas activities to protect the environment that can include limits on when drilling can occur or restrictions on surface occupancy. Once an operator proposes exploration or development on a BLM-issued lease, further environmental analysis under the National Environmental Policy Act is conducted to determine the site-specific need for various types of impact-limiting or mitigation measures. In addition, many operators routinely use Best Management Practices, such as remote monitoring of producing wells, to minimize surface impacts.
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