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OIL & GAS SALE BRINGS $1.3 MILLION TO U.S. TREASURY

 WASHINGTON, Oct. 15 /PRNewswire/ -- The federal Treasury will receive half of the $2,636,127 bid for leasing rights on parcels offered by the Bureau of Land Management (BLM) Oct. 5 at the bi-monthly federal oil and gas lease oral auction held in Cheyenne, Wyo.
 In addition to the bid price, the sale netted $279,499.50 in first year rental fees and $18,525 in administrative fees. Half of bid and rental receipts go to the state of Wyoming.
 "This is an example of managed use of our resources," said Jim Baca, director of the BLM. "Development will occur in an environmentally sound manner. Further, this single sale will add over $1.4 million to the Treasury, and on-ground exploration will provide jobs for American workers," said Baca.
 The Federal Onshore Oil and Gas Leasing Reform Act of 1987 provides for oral auction competitive bidding for all leases. Only after a lease has been offered at auction and received no bids is it eligible for noncompetitive leasing.
 Bids ranged from the federally mandated minimum of $2 an acre to $285 an acre. That high bid was for a 640 acre parcel 12 miles southeast of Wamsutter, located in Carbon County, Wyo., and won by Caddis Resources of Denver. Successful bidders also pay a $75 per parcel administrative fee and yearly rental of $1.50 an acre.
 Some 367,281 acres in 458 parcels were offered at the sale. A total of 186,273 acres in 247 parcels were sold. Average bid per acre for each parcel sold was $14.15, and the average parcel sold netted $10,672.58 from bidding.
 Parcels which did not receive bids at the auction are available non- competitively for the yearly rental fee of $1.50 per acre for the first five years and $2 per acre for the second five years, and a $75 administrative fee. Application may be made at the BLM office in Cheyenne.
 The next Wyoming oil and gas auction will be held Dec. 7 in Cheyenne. Nationally, the BLM normally holds about 35 oil and gas auctions per year. In fiscal year 1993, those auctions brought in $11.5 million to the U.S. Treasury, a 20 percent increase from the previous year.
 -0- 10/15/93
 /CONTACT: Bob Stewart of the Bureau of Land Management, 202-208-5717/


CO: Bureau of Land Management ST: District of Columbia, Wyoming IN: OIL SU: EXE

IH-PB -- DC003 -- 2622 10/15/93 09:40 EDT
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Publication:PR Newswire
Date:Oct 15, 1993
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