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Nature of the oil and gas lease (view source)
Revision as of 17:17, 17 January 2014
, 17:17, 17 January 2014→Leasing of federal onshore lands
===Leasing of federal onshore lands===
===Leasing of federal onshore lands===
The Oil and Gas Leasing Reform Act of 1987, and the regulations issued in 1988 to implement the Act, materially changed requirements for the leasing of federal onshore lands. The changes implemented require that any federal land offered for leasing by any federal agency must first be offered for competitive, ''oral'' bonus bidding at sales to be held at least quarterly by the Bureau of Land Management state office. The statutory rninimum bid is [[cost::2.00 USD]] per acre, and the royalty must be no less than 12.5%. Rental rates must be no less than [[cost::1.50 USD]] per acre for the first 5 years and [[cost::2.00 USD]] thereafter, and the maximum term is 10 years. Lands that receive no bids at an offering for a period of two years may be leased to the first qualified applicant on the same terms specified for competitive leasing. This system is called the “over-the-counter” noncompetitive leasing method.
The Oil and Gas Leasing Reform Act of 1987, and the regulations issued in 1988 to implement the Act, materially changed requirements for the leasing of federal onshore lands. The changes implemented require that any federal land offered for leasing by any federal agency must first be offered for competitive, oral bonus bidding at sales to be held at least quarterly by the Bureau of Land Management state office. The statutory minimum bid is [[cost::2.00 USD]] per acre, and the royalty must be no less than 12.5%. Rental rates must be no less than [[cost::1.50 USD]] per acre for the first 5 years and [[cost::2.00 USD]] thereafter, and the maximum term is 10 years. Lands that receive no bids at an offering for a period of two years may be leased to the first qualified applicant on the same terms specified for competitive leasing. This system is called the ''over-the-counter'' noncompetitive leasing method.
The Reform Act did away with the old noncompetitive “simultaneous filing” or “lottery” system and the competitive KGS (known geological structure) lease sales.
The Reform Act did away with the old noncompetitive ''simultaneous filing'' or ''lottery'' system and the competitive KGS (known geological structure) lease sales.
===Leasing of federal offshore lands (Outer Continental Shelf)===
===Leasing of federal offshore lands (Outer Continental Shelf)===