BLM sets Dec. 12 sale date for NPR-A; 2.85M acres, 254 tracts

Kristen Nelson

Petroleum News

The federal Bureau of Land Management has set Dec. 12 as the sale date for its National Petroleum Reserve-Alaska 2018 sale, with 2.85 million acres to be offered in 254 tracts.

As in the last couple of years, the bid opening will be via video livestream available at www.blm.gov/alaska, with bid opening to begin at 10 a.m. Alaska standard time. Sealed bids must be received by 4 p.m. Alaska standard time on Dec. 10.

“The tracts offered support the Secretary’s goal to strengthen our energy development,” said BLM Alaska Acting State Director Ted Murphy. He said the sale demonstrates the agency’s commitment to continue energy production in NPR-A “and create jobs and revenue for the State.”

This sale will be the 14th in NPR-A since 1999, BLM said. There are 199 currently leases covering 1.38 million acres in NPR-A. Bids received in the previous 13 sales generated more than $282 million, half of which was paid to the state of Alaska.

For high potential tracts, with a tract size of some 5,760 acres, the minimum bid is $25 per acre or fraction thereof and the fixed royalty rate is 16.67 percent, with a rental rate of $5 per acre or fraction thereof. For low potential tracts, with tract sizes of some 11,500 acres, the minimum bid is $5 per acre or fraction thereof, the fixed royalty rate is 12.5 percent and the rental rate is $3 per acre or fraction thereof.

BLM said in its detailed statement of sale that while it has established minimum bids: “To ensure that the Government receives fair market value for the conveyance of lease rights in this sale, each Tract receiving a bid will be evaluated to determine its fair market value. Any bid which does not meet or exceed the fair market value may be rejected.”

Details on the sale, including where to submit bids and a map showing tract locations, are available on BLM’s Alaska website: www.blm.gov/alaska.

- KRISTEN NELSON