BLM to auction two land parcels for oil and gas leases in May 2025
Dec 18, 2024, 8:00 PM
A screenshot from the Bureau of Land Management website shows the general area where oil and gas leases will be sold in May 2025. (Bureau of Land Management)
(Bureau of Land Management)
UINTA COUNTY, Utah — The U.S. Bureau of Land Management will sell federal oil and gas leases on two parcels of land in May 2025.
Oil and gas leases will be sold on land within the BLM’s Vernal Field Office. According to the organization’s website, the parcels of land will encompass 833.28 acres of land. They will be sold at a minimum bid of $10 per acre.
A press release said the land to be sold was examined through an environmental analysis. A public comment period was held, closing in July 2024.
“Leasing is the first step in the process to develop federal oil and gas resources,” read the press release.
The sales are held quarterly, whenever land is available for lease. According to the BLM website, the last lease sale was held on Dec. 12, 2023. No information on 2024 sales is displayed.
What happens after oil and gas leases are sold?
The BLM said that it issues oil and gas leases for “oil and gas exploration and development on lands owned or controlled by the Federal government.”
After a buyer secures oil and gas leases, they pay royalties. For the May 2025 sale, rates will be 16.67%. According to the BLM website, half of the royalty money “goes back to the states.”
Rental rates are also paid. The BLM General Oil and Gas Leasing Instructions said that the first year’s rental is paid when the land is purchased. It must be paid yearly, or the lease will be discontinued.
The rental cost per acre differs depending on how long a lease has been in effect. For example, the cost is $3 per acre for the first two years. During years three through eight, the cost per acre rises to $5.
Leases typically last for 10 years.
Before the May 2025 sale, the BLM is hosting a public protest period. From now until Jan. 17, 2025, you can submit public input through the BLM e-planning website.
Related: Utah BLM: Holiday tree-cutting permits now on sale
