State boosts BLM oil, gas lease sale record

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Federal oil and gas lease sales in the Dakotas and Montana set a record in fiscal 2005, with parcels in western North Dakota's booming oil patch garnering the overwhelming bulk of interest, the Bureau of Land Management says.

Oil and gas lease sales totaled slightly more than $36 million for the three-state region in the fiscal year, with North Dakota accounting for $35.1 million, the BLM said Thursday. Montana had $785,000 in leases, while South Dakota tallied $62,485.

Most lease sales in the three-state region have occurred on U.S. Forest Service land in western North Dakota's Williston Basin, said Karen Johnson, who head's BLM's oil and gas leasing division in Billings, Mont.

"Interest in the Williston Basin across the nation is phenomenal," said Ron Ness, director of the North Dakota Petroleum Council.

Ness was attending an oil industry conference on Thursday in Houston. He said North Dakota's oil patch is far from a secret.

"Everyone I'm talking to says it's amazing," Ness said. The Williston Basin "is right at the top for places to explore in the U.S. People from all over the world know it's hot, and everybody wants in."

Oil and gas lease sales in fiscal 2004 for the three states was $3.9 million, with North Dakota's share totaling $2.9 million. In fiscal 2003, lease sales totaled just $258,700, with $229,183 coming from Montana. North Dakota contributed just $29,600 to the total in fiscal 2003. South Dakota had no lease sales during that period, the BLM said.

Larry Melvin, mineral manager for the U.S. Forest Service, said some 946,000 acres of federal grasslands in western North Dakota became available for leasing after an environmental assessment was completed in 2003. About 827,300 acres are now leased, he said.

Revenues from the oil and gas leases are shared by the federal government and the state or county where the parcels are located, the BLM said.

Ness said a state oil and gas lease sale next week is expected to draw big interest from companies. Oil and gas leases on state-owned land already are at the highest level in 25 years, officials said.

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