Six bidders join federal auctions of 7 oil and gas parcels in Kern tehachapinews.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from tehachapinews.com Daily Mail and Mail on Sunday newspapers.
The U.S. Bureau of Land Management raised $54,254.52 this week through a series of seven online auctions totaling a little more than 4,133 acres of federal oil and gas property in Kern County.
Half a dozen oil companies participated Thursday in what were the first such sales in California since 2012. The BLM had predicted the parcels would hold no more than 10 new wells in all.
The sales were vigorously opposed by environmental activists who said leasing out the properties could lead to pollution. They also argued online auctions stifle public competition and fast-tracks oilfield activity.
The leases sold Thursday carry a primary term of 10 years, during which time the buyers must pay the government royalties of 12.5 percent on any petroleum they produce. Royalty proceeds get roughly divided between the state of California and the U.S. Treasury.