SALT LAKE CITY — In keeping with the Administration’s goals of promoting American energy independence, the Bureau of Land Management (BLM) Utah quarterly oil and gas lease sale resulted in competitive bids for 63 parcels offered in the BLM’s Canyon Country, Color Country, Green River and West Desert districts, totalling nearly $1.63 million in receipts.
Bro Energy, LLC of Salt Lake City, Utah, submitted the highest total bid per acre —$304.00 — for parcel 155, and Kodiak Energy, LLC submitted the highest total bid per parcel — $194,560.00 — for parcel 110. For more details about the sale results, please visit: http://go.usa.gov/xXk8c.
Revenues from onshore oil and gas production on federal lands directly fund the U.S. Treasury and state budgets, and support public education, infrastructure improvements, and other state-determined priorities. Forty-eight percent of lease sale revenue goes to the state while the remainder is transferred to the U.S. Treasury. The state also receives half of the revenue from royalties if oil and gas is developed on the lease.
The BLM is a key contributor to the Trump Administration's America-First Energy Plan, an all-of-the-above strategy that includes oil and gas, coal, strategic minerals, and renewable sources such as wind, geothermal, and solar – all of which can be produced on public lands.
Responsible energy development includes thoughtful consideration of parcels nominated for leasing as well as the potential resource impacts of the decision to lease. An additional environmental review will take place at the Application for Permit to Drill stage, where additional site specific Conditions of Approval can be placed on the permit, in addition to the lease stipulations.
Background By law, the BLM is required to offer quarterly oil and gas leases sales of available Federal lands. BLM state offices conduct lease sales quarterly when parcels are available for lease. These lease sales represent parcels that cleared environmental review and public comment. The BLM issues both competitive and non-competitive leases for a 10-year period. The leases are a contract to explore and develop any potential oil and gas. The lease may be extended if the production is established on the lease, otherwise the lease will expire after the primary term of 10 years.
The BLM generated a record $1.1 billion from 28 oil and gas lease sales in Fiscal Year (FY) 2018. The oil and gas industry on public lands in Utah contributed $2.6 billion in total economic output and jobs for FY 2017. Revenues from onshore oil and gas production on federal lands directly fund the U.S. Treasury, state budgets and support public education, infrastructure improvements, and other state-determined priorities