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Land Board approves historic oil and gas lease sale that raised $2.85 million
Summary
The Land Board unanimously approved DNRC’s item 0924-2 after the agency said an online auction leased four tracts for $2,853,403 covering 2,295 acres; members asked staff for historical trend reporting on oil-and-gas revenues.
The Land Board on a unanimous vote approved item 0924-2 after the Department of Natural Resources and Conservation reported that an online auction leased four oil-and-gas tracts for a combined $2,853,403.
DNRC staff told the board the four tracts sold covered 2,295 acres with an average bid of $1,243 per acre; the highest competitive bid quoted was $4,315 per acre and the single largest total bid was $2,761,600 for Tract 3 in Richland County. Director (S3) said the sale was the largest for the Common Schools Trust since 2012.
"A total of 4 tracts were offered for lease. Four tracks were leased for a total of $2,853,403," the director said, and described the sale as a historic result for the school trust. Governor (S1) and board members praised the move to the online auction platform as improving competitive bidding and returns for the state.
Committee member (S5) asked DNRC to provide context and trend data so the board can see whether the recent results represent a sustained shift or a one-time peak. "It'd be nice to see some sort of a trend to see exactly where we are," S5 said, adding that an annual report or a recap of oil-and-gas revenues would be helpful.
The motion to approve item 0924-2 was moved by Committee member (S2), seconded on the record, and passed unanimously. The minutes record no public comment on the item.
Next steps: DNRC indicated it normally provides a fiscal-year recap and an annual report on oil-and-gas revenues; board members requested staff return with historical trend reporting to inform the legislature and future board decisions.
