The federal Bureau of Land Management reported it generated $131,245 in its quarterly online lease sale for oil and natural gas drilling in Nevada, Kallanish Energy learns.
Bids were received last week on 20 parcels totaling 35,502 acres in Elko and Eureka counties, the agency said.
A lease is the first step toward developing oil or natural gas wells on public lands. Additional planning, review and public input is required before drilling can begin.
The leases are for 10 years with annual rental rates 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% is charged. Nearly half of the bid and rental receipts go to the state of Nevada.
BLM’s next Nevada auction sale will be June 13.