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BIA Oil and Gas Lease Sale brings in $50 million

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EL RENO, Okla. - The Bureau of Indian Affairs Concho Field Office held an oil and gas lease sale today at the Redlands Community College in El Reno.  Prior to the sale, regular attendees were unsure of what to expect due to the downturn in the oil market.

The BIA Concho Field Office manages restricted Cheyenne and Arapaho Tribal and Allotted tracts in Beckham, Blaine, Canadian, Custer, Dewey, Kingfisher, Roger Mills and Washita counties in Oklahoma.  There were over 400 tracts covering over 31,000 mineral acres available for lease at the auction.   

The sale is an oral auction whereby oil and gas companies bid on oil and gas leases. Bids ranged from $100 to $17,000 per acre.  The highest bids shocked even seasoned oil professionals and caused some bidders to leave during the middle of the sale.  Townships 15N-10W and 15N-11W, Blaine County generated the most competition with the highest bids. 

“We did not expect this kind of competition.  We are excited to see this interest in Indian country even during a downturn in oil prices,” said Jennifer Krieg, Vice-President of Leasing at Reagan Smith Energy Solutions who was a bidder at the sale. Reagan Smith Energy Solutions, Inc is a consulting firm which specializes in BIA leasing and permitting wells on BIA lands.

The oil and gas leases provide for a 3 year term and 20% royalty rate. The sale totaled approximately $50 million in oil and gas lease bonuses which will be paid to restricted Cheyenne and Arapaho Tribal members who own the various mineral tracts. 

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Red Dirt Report was launched July 4, 2007 as an independent news website covering all manner of news, culture, entertainment and lifestyle stories that affect and interest Oklahoma readers and readers outside of our state. Our mission is to educate, promote civic engagement and discourse on public policy, government and politics. Our experienced journalists provided balanced in-depth coverage of news stories that affect Oklahomans. Our opinion/editorial stories come from a wide range of political view points. We carry out our mission by reporting, writing, and posting news and information. read more

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