Nevada oil sites leased
The U.S. Bureau of Land Management (BLM) last week held its quarterly lease sale of prospective oil parcels.
More than a hundred parcels totaling 215,630 acres were up for lease. A parcel in Nye County attracted the highest bid—$179,200—and the highest per acre bid—$80. The sale generated $2,673, 900 from the leasing of 66 parcels.
A BLM press statement read, “The leases are for a period of 10 years with annual rentals of $1.50 per acre for the first five years and $2 an acre after that until production begins. Once a lease is producing, a royalty of 12.5 percent is charged.”
Most of the royalty goes to the federal government. The remainder plus rent payments go to the state.