Gulf of Mexico Lease Sale 248 makes history
Thursday, September 1, 2016
Making history in more ways than one, United States Western Gulf of Mexico Lease Sale 248 not only became the first livestreamed sale. It also set record lows for the number of companies bidding, blocks receiving and total bonus bids since 1983, according to Hart Energy.
Only three companies submitted bids on 24 of about 4,400 tracts offered. Blocks ranging from nine to over 250 miles near offshore Texas were offered. The lease sale generated a little over $18 million in bids.
Gulf of Mexico region director for the U.S. Bureau of Ocean Energy Management Mike Celata attributed the turnout to the continued low price of oil as abundant supplies of oil have outpaced demand across the world.
Learn more: Hart Energy > US GoM Oil, Gas Lease Marks A First. Sets Record Lows
Leave a Comment
Marcellus & Utica Shale Well Map
Additional Shale Maps
Shale FAQ
How often do royalty payments come?
Depending on the company, royalty payments can arrive monthly or quarterly.
Are my royalty payments transferable?
Yes. If you plan on selling your property, notify the gas company that is leasing your land and your realtor. They will make arrangements to allow the royalty payments to transfer to a different land owner.
What are royalties?
Royalties are payments from the gas company to the landowner as part of a lease agreement. Royalties payments cannot begin until production begins. The payments are dependent upon the market price of the resource.