BLM oil and gas lease sale nets nearly $195K
CARSON CITY, Nev. (AP) -- The Bureau of Land Management says a quarterly sale for oil and gas leases on Nevada public lands netted nearly $195,000.
Competitive bidding was conducted Tuesday in Reno, and 20 parcels were sold encompassing 32,328 acres. In all, 86 parcels totaling 114,348 acres were offered.
Leases are good for a period of 10 years with annual rentals of $1.50 per acre for the first five years and $2 per acre after that until production begins.
Once a lease is producing, a royalty of 12.5 percent is charged.
Parcels are nominated by the oil and gas industry and reviewed by the BLM before lease sales are conducted.
The BLM deferred more than 262,000 acres nominated because they are in or near priority sage grouse habitat.