US postpones sales of oil and gas leases

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After brutally postponing a New Mexico lease sale last month, the Trump administration has postponed additional oil and gas lease sales in Nevada and Mississippi, the Bureau of the Internet’s auction site showed. Land Management.

The Department of the Interior’s Office of Land Management (BLM) postpones a rental sale of seven parcels covering 10,459 acres in Nevada, which was originally scheduled to take place on June 9. The BLM also postponed the sale of two 88-acre parcels in Mississippi to be auctioned on June 18.

The latest postponements of federal sales of oil and gas leases come after BLM postponed in May a sale of 95 plots totaling 45,446 acres in Chaves, Eddy and Lea counties in New Mexico; and Wise County, Texas.

Sale of oil and gas lease in the westernmost state of the Permian Basin would have been the first auction for drilling on federal land since US benchmark prices fell negative in April the day before the expiration of the May futures contract of WTI Crude.

In March, following the collapse in oil prices, the administration proceeded to sell leases in four western states: Montana, Nevada, Wyoming and Colorado, despite calls for the immediate suspension of sales of oil and gas drilling leases on federal lands amid falling prices. Rental sales have also drawn criticism from environmental groups who have alleged, among other things, that the BLM had rejected a request to suspend the comment period during the coronavirus pandemic.

But since late March, the administration has postponed lease sales in New Mexico, Nevada, and Mississippi.

According to the EnergyNet website, two lease sales are still scheduled for June and have not yet been postponed. The first is a federal lease sale of 135 parcels covering 169,750 acres in Wyoming from June 23 to 24, and a sale of 15 parcels covering 4,851 acres in Colorado on June 25.

By Tsvetana Paraskova for Oilprice.com

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