The Bureau of Land Management (BLM) received $34.4 million in high bids during its most recent lease sale in New Mexico and Kansas.
BLM offered 18 parcels covering 3,128 acres. In total, it received 451 bids on 14 parcels covering 2,768 acres, roughly 88.5% of the total acreage offered, the Interior Department division said in a statement on June 20.
Leases are subject to a 16.67% production royalty rate with revenues split between the state where drilling occurs and the US Treasury.
BLM noted that leasing is only the first step in the process to develop federal oil and gas resources. Before development operations can begin, an operator must receive a permit to drill, which requires the operator to file a development plan, a public review and environmental analysis of the plan, and consultation with state partners and other stakeholders.