From the LA DNR - February mineral lease sale brings approximately $6.3 million
The state Mineral and Energy Board on Wednesday conducted its monthly lease sale in the LaBelle Room of the LaSalle Office Building in Baton Rouge.
The board collected more than $6.3 million in bonuses in the sale, bringing the total collected for the financial year that began July 1 to more than $45.2 million.
In all, 13 leases covering more than 1,700 acres were awarded, out of 20 nominated tracts covering more than 6,200 acres, in the February sale.
The Board sold leases in six parishes –Caddo, Calcasieu, DeSoto, Jefferson, Red River and Terrebonne. Of the 13 leases sold, the majority were sold in north Louisiana, with 10 leases sold in northern parishes and three in north Louisiana.
All 10 of the north Louisiana leases were sold in the area of the Haynesville Shale natural gas formation -- in Caddo, DeSoto and Red River parishes. Lease sale prices remain strong in that area, with the 10 Haynesville Shale area leases averaging about $9,200 an acre. More than half of those leases went for better than $12,000 an acre.
Leases sold by the Mineral and Energy Board on behalf of the Red River Waterway Commission brought more than $3.9 million for the Waterway Commission. That commission is responsible for management of right-of-way for projects and development and operation of recreational facilities along the Red River in its seven-parish area.
The Board also sold more that $80,000 in leases on behalf of the city of Mansfield. Mansfield Mayor Curtis McCoy attended the lease sale meeting, and said the Haynesville Shale had been a great boost for the economy and local government throughout the area.
“We appreciate the work that the Mineral and Energy Board, the staff of the state Office of Mineral Resources and the Department of Natural Resources have done in helping us to make the most of our opportunities with the Haynesville Shale activity,” McCoy said
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Replies to This Discussion
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Permalink Reply by adubu on
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Keith---what % royalty does the board usually receive on this leases? At $9200-$12000 per acre we getting back to the 2008 days.
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Permalink Reply by Skip Peel - Mineral Consultant on -
abudu. All successful bids for HS minerals have been for a quarter royalty since the play became public as far as I know. Several of us have questioned this policy in the past as there have been bids with royalties greater than 25%. I have seen 30% and even 40%. Those bids were not successful as the winning bids offered significantly higher bonus amounts. I do not know if the policy is official but in the interest of tax payers and state government, the state should consider the long term benefits of royalties at those levels.
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