Gov. Gianforte, DNRC Announce Record-Setting $5.4 Million Oil and Gas Sale

HELENA, Mont. – Along with the Montana Department of Natural Resources and Conservation (DNRC), Governor Greg Gianforte today announced a record-setting oil and gas lease sale on state trust lands in four months, totaling more than $5.4 million in revenue.

“In Montana, American-made energy fuels our economy and funds education,” Gov. Gianforte said. “Thanks to DNRC’s work to modernize these sales, we’re seeing an increase in funding to benefit our schools and our students for years to come while also securing our energy future.”

Approved by the State Board of Land Commissioners this morning, the sale breaks the previous record-setting sale, which was approved by the Land Board in September. This sale is the largest grossing lease DNRC has had in 13 years.

The sale included 21 tracts in Fallon, Richland, Roosevelt and Toole counties, with more than 99 percent of revenues coming from bids on tracts in Richland and Roosevelt counties, home to the Bakken oil reservoir.

“DNRC’s management of natural resources to generate revenue from state trust lands provides a sustaining investment in Montana’s public schools,” said DNRC Director Amanda Kaster. “Oil and gas leases contribute important funding for students across the state.”

Funds generated by leases on state trust lands contribute to the education fund for the state. Oil and gas leases are comprised of a set annual leasing fee per acre, plus a one-time competitive bid, known as the bonus amount. If the leases are developed and produce oil, they generate additional royalty revenues.

DNRC manages state trust lands, including the auction of oil and gas leases. For more information on oil and gas lease sales, see here.

 

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