SALT LAKE CITY — The Bureau of Land Management’s quarterly oil and gas lease sale in Utah netted $48,027 on competitive bids for 7,478 of the 23,733.19 acres offered.
Proceeds from the sale will be distributed between the federal government and the state.
The BLM offered 20 parcels in Garfield, Piute, Sanpete and Sevier counties. The highest bid per acre was made by Magnum Producing at $10. The company also submitted the highest total bid per parcel — $12,400 — for a piece of land located in the Richfield field office area.
According to a statement from the BLM, oil and gas lease sales support domestic energy production and American energy independence. The leases are awarded for a term of 10 years and as long thereafter as there is production of oil and gas in paying quantities.
The federal government receives a royalty of 12.5 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.