Geothermal and Oil and Gas Parcels Finalized

Contact:  Mary Wilson, (801) 539-4020 or Megan Crandall (801) 539-4061
Number:  (801) 539-4122
Geothermal Lease Sale Info  
Oil & Gas Lease Sale Info  

Salt Lake City, Utah—December 12, 2008—On Dec. 19, BLM Utah will offer 142,333 acres for geothermal leasing.  While 191,000 acres of BLM-administered land were initially considered for renewable energy development, close to 50,000 acres were deferred for a variety of reasons.  BLM Utah deferred two parcels to provide the U.S. Forest Service with additional time to conduct analysis on lands near the existing geothermal plant at Cove Fort.  An additional eight parcels were deferred to provide time for further consultation and analysis regarding potential impacts to cultural resources and historical settings; and to address tribal concerns regarding Traditional Cultural Properties. In consultation with the State Historic Preservation Office and Native American Tribes, BLM determined that the important visual nature associated with some parcels may be affected by geothermal exploration and development.  Further consultation is needed on a site-specific basis to protect the Pony Express National Historic Trail corridor.

The final list for the Dec. 19 sale  includes 44 geothermal parcels totaling 142,333 acres and 132 oil and gas parcels totaling 163,935 acres in seven Utah counties—Carbon, Duchesne, Emery, Garfield, Grand, San Juan and Uintah.  Also included are three geothermal parcels totaling 8,676 acres in Idaho and 11 geothermal parcels totaling 41,363 acres in Oregon and Washington.

The deferral of parcels reduced the initial list of 241 proposed oil and gas parcels totaling 359,450 acres.  Specifically, discussions with the National Park Service resulted in deferring all or part of 23 parcels totaling 37,731 acres near national parks.  Additional parcels were deferred in the vicinity of Nine Mile and Desolation Canyons and others were removed for split estate concerns, wildlife issues or conflicts with existing coal mining operations.  This final list also includes 80,015 acres deferred in Fillmore until BLM completes the Fillmore Field Office Oil and Gas Leasing Environmental Assessment.

The sale will take place in Salt Lake City at the BLM Utah State Office, 440 West 200 South, Suite 500 in the Monument Conference Room.

The Mineral Leasing Act of 1920 requires that the BLM conduct quarterly lease sales for each state where eligible lands are available and there is interest in leasing.  Proposed lease parcels are reviewed for conformance with governing land use plans and compliance with applicable laws such as National Environmental Policy Act, National Historic Preservation Act, and Endangered Species Act. BLM Utah provided notice of proposed parcels and the proposed lease sale 45 days prior to the sale. Release of the sale notice began a 30-day public review period, during which protests were filed. 

Auction rules call for a $2 per acre minimum bonus bids on any parcel.  This means a buyer will pay the bid price for the right to obtain the federal lease, in addition to a standard $1.50 per acre rental on oil and gas parcels and $2 on geothermal parcels.  BLM will also charge winning bidders $140 per parcel to help cover administrative costs.  Leases are issued for a primary term of ten years and will continue as long thereafter as oil or gas is produced in paying quantities.  The holder of a federal lease must obtain specific permits prior to any surface disturbing activities.  If exploration does occur and the lease begins producing, the federal government will collect a 12½ percent royalty on production.  In accordance with the Mineral Leasing Act, collected revenues will be split between the BLM and the state.