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Board authorizes solicitation of bids for oil-and-gas lease on district land
Summary
The board authorized staff to solicit bids for an oil-and-gas lease covering approximately 28 acres in Sections 28 and 33, 7 North 7 West; no active wells currently exist on the property and the district would receive a 3% royalty under the described terms.
The Board of Education authorized solicitation of bids for an oil-and-gas lease on district-owned mineral interests, directing staff to publish a notice and hold a live auction after a minimum two-week notice period.
A representative for interested Camino Natural Resources explained the process to the board: the district will post notice, accept sealed or live bids at a public auction on campus and, if the board approves the winning bonus amount, enter a lease with that bidder. The representative described typical commercial lease terms they would propose: a 3 percent royalty, standard general terms, death/assignment clauses, and a two-year shut-in provision. The representative also said the parcel is currently not drilled and that the district is part of a two-mile lateral (two-square-mile unit) that will require outreach to multiple interest owners.
District staff identified the property location as Sections 28 and 33, Township 7 North, Range 7 West, and estimated the district’s surface/mineral interest at roughly 28 acres. The representative said title and pooling could involve many owners—potentially 20 to 30 parties—but counsel and title work would be used to determine exact interests when a pooled lateral is formed.
Board members moved and seconded a motion to authorize solicitation of bids; the motion carried on roll call (recorded votes included “Yes” from Allen, Cliff and others recorded in the meeting minutes). Staff said they will publish the solicitation, allow at least two weeks’ notice, conduct a live auction at district offices, and return lease offers to the board for approval before signing.
No formal lease was executed at the meeting; the vote authorized only solicitation and the process for receiving and presenting bids to the board.
