Developers bid for the right to use only 73 of 329 parcels of federal land offered for oil and gas leasing last week. But the next day, non-competitive leases were requested on at least 50 of the unsold parcels.
Non-competitive leases are issued for a 10-year term, if parcels aren't sold in a competitive auction. They cost only $1.50 per acre yearly for the first five years and $2 per acre afterward, compared with a minimum acceptable bid of $2 per acre yearly in competitive bids.In the auction, only 65,700 acres won bids, out of a total of 388,300 acres offered. The property is under the jurisdiction of the BLM and the Bureau of Indian Affairs.
BLM public affairs officer Terry Cole said that during an oral auction held at the Red Lion in Salt Lake City, bonus bids amounted to $575,400. They ranged from the minimum of $2 per acre to $260 an acre, and averaged $8.76 per acre.
Yates Petroleum Corp. of Artesia, N.M., submitted the highest total bid, $62,400 for a 960-acre parcel about 15 miles southeast of Blanding, San Juan County. The highest bid per acre, $260, was submitted by Peter W. Hummell, of Reno, Nev., for a 40-acre parcel in the same area.