Dunn County gets highest bid for single-parcel from Herco of Billings, Mont.
As part of President Barack Obama’s all-of-the-above strategy to continue to expand safe and responsible domestic energy production, a Bureau of Land Management (BLM) oil and gas lease auction netted $4,256,301 in revenues from the sale of seven federal leases totaling 1742.18 acres in North Dakota.
Herco, LLC of Billings submitted the highest per-acre bid at $13,750 per acre for a 233.3-acre parcel located in Dunn County, North Dakota. This was also the highest single-parcel bid at $3,217,500.
BLM oil and gas leases are awarded for a period of 10 years and for as long thereafter as there is production in paying quantities. The revenue from the sale of federal leases, as well as the 12.5 percent royalties collected from the production of those leases, is shared between the federal government and the states.
Potential environmental effects that could result from exploration and development are analyzed before any leases are offered for sale. All leases come 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 and multiple wells per pad to minimize surface impacts.
The next Montana/Dakotas federal oil and gas lease sale is scheduled for May 6, 2015, at the BLM’s Montana State Office, located at 5001 Southgate Drive in Billings.