Dawson and Roosevelt Counties were big winners this week in the Department of Natural Resources oil and gas lease sales.
Dawson County leased out nearly 14,000 acres at an average of $262.80 per acre bringing in $3.6 million dollars from 28 bidders.
Roosevelt County leased out 874 acres at a whooping $2,280.25 per acre to just 2 bidders and brought in nearly $2 million dollars.
The average bid for the September 7 sale was $39.51. Overall the sale brought nearly $8 million into state coffers, the second highest amount since June 2008. It was the fourth largest auction since 1980 and the second largest of the current energy rush. The largest was in September of 2008.
Additional leases were also sold in eastern Montana in Big Horn County (6,300 acres for $180,938.47), Daniels County (600 acres for $54,160), Prairie County (1,920 acres for $19,200), Sheridan County (1,160 acres for $560,800), and Valley County (1,678 acres for $58,760).
Which state department will get all those dollars? State officials say the schools.
Going into the 2012 fiscal year, the state was projected to receive $5 million in oil and gas lease revenue for the entire fiscal year which runs from July 1 to June 30. The September $7.9 million dollar sale was the first of four slated for the year and it brought in $3 million more than the entire year's budget for schools meaning the remainder of sales will help boost floundering school budgets.
Governor Brian Schweitzer's office said approximately 2.1 million acres of state-owned Trust Lands are currently under lease for oil or gas exploration, though production only comes from 235,000 acres, which generate $21 million per year in royalties. In general, about one lease of every 10 sold at auction will actually be drilled and developed. Once a tract is leased, the owner has up to 10 years to begin exploration and development. A producing lease can remain in effect for as long as oil or gas production continues.
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