BLM Leases 101 Parcels in Eastern States Land Sale

One-hundred and one of 116 parcels of Federal land brought in $1,428,661 through a competitive auction of oil and gas leases conducted by the U.S. Department of the Interior's Bureau of Land Management-Eastern States (BLM-ES) on Friday, June 18, 2004, in New Orleans, Louisiana. Bonus bids, filing fees, and rental revenue amounting to $927,641 will go to the U.S. Treasury and $493,444 will be shared with the States within which the leases are located.

The BLM-ES has responsibility for leasing the federally-owned minerals located in the 31 States east of and adjoining the Mississippi River and offers selected parcels at quarterly competitive auctions. This lease auction was held in Louisiana to better serve BLM-ES' customers and to support the President's National Energy Plan. Regulations require the bidding to open at $2 per acre. V-F Petroleum Incorporated paid $111,360 for 1,740 acres for a parcel in Scott County, Arkansas, the highest bid of the auction.

Leases are awarded for a term of 10 years, and as long thereafter, as there is production of oil and gas in paying quantities. The Federal Government receives a royalty of 12 1/2 percent of the value of production. Also, each State government receives a 25 percent minimum share of the bonus bid and the royalty revenue from each lease issued in that state.

Public lands in the 31 States that make up the Bureau of Land Management- Eastern States (BLM-ES) region produced 1.5 million barrels of oil and 26.2 BCF of gas in FY 2003, and helped reduce the dependency on foreign oil imports. Approximately 8.4 million dollars were returned to the 31 States of the BLM-ES region in FY 2003, from oil and gas royalties, which benefits the states and counties in economic activities and employment. The energy sources were produced in a wide variety of environments ranging from the Appalachian range to the wetlands and marshes of the Louisiana bayous.

The next competitive oil and gas lease sale is scheduled for September 16, 2004. The Bureau of Land Management -- Eastern States has responsibility for 30,000 acres of public lands and about 40 million acres of sub-surface federal mineral estate in the 31 States east of and bordering the Mississippi River. Our major programs include: Energy and Minerals, Wildland Fire Management, Wild Horse and Burro Adoptions and Compliance, Natural Resources, Lands and Realty, Cadastral Survey, and General Land Office Records. Nationally the Bureau of Land Management has responsibility for about 260 million acres of public lands that contain invaluable resources, minerals, recreational opportunities and wildlife habitat.

                             STATE SUMMARY REPORT


                 # of Parcels       Acreage           Federal         State
    State        Offered/Sold    Offered/Sold         Revenue        Revenue

    AL              16/16     4,876.30 / 4,876.30    $99,063.62     $58,336.38

    AR              28/28    40,670.36 / 40,670.36   $466,359.62   $287,084.88

    LA               7/7        848.42 / 848.42       $41,104.00    $40,924.00

    MS              56/47   45,112.915 / 38,805.845  $290,721.73    $96,968.77

    WV               9/3      8,973.32 / 3,117.19     $30,392.63    $10,130.87

    TOTALS         116/101  100,481.315/88,318.115   $927,641.60   $493,444.90