(BID FOR OIL and GAS LEASE) - State of Alaska DNR, Division of Oil 2025

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The document is a bid form for the competitive areawide oil and gas lease sale by the State of Alaska's Department of Natural Resources, Division of Oil and Gas. It outlines the requirements for bidders, including pre-qualification, submission of lease-interest percentages, total bid calculations, and deposit requirements. The form also includes certifications regarding the disclosure of working interests and provides instructions for handling unsuccessful bid deposits.
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Price Per Acre In 2024, some local drillers reported that the average amount they pay landowners per acre is in the $500/acre range. This is because landmen (the agents who negotiate leases) usually offer significantly less per acre if they suspect you lack knowledge of the market.
Oil and Gas leasing is a contract through which a landowner sanctions the exploration for and production of oil and gas on their land in exchange for an agreed royalty price.
Negotiating an oil and gas lease will require some research upfront. If youre a landowner interested in working with an oil and gas company, you should explore their history and experience. Youll want to work with a reputable company that works in your best interests, holds a high standard, and maintains insurance.
The Federal onshore oil and gas rate is 16.67% for leases issued after August 16, 2022. However, there are a few exceptions, including different royalty rates on older leases, reduced royalty rates on certain oil leases with declining production, and increased royalty rates for reinstated leases.
A one-time payment to a lessor as consideration for signing a paid-up oil gas lease. The bonus is generally not written in the lease. It is normally paid on a per net mineral acre basis and should be paid in a simultaneous exchange of the signed lease.

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The most important factors are: How many net acres you own. Your lease royalty rate. Number of pooled acres. Price of Oil and Gas. Volume of Oil and Gas Produced.
Royalty Rates: The royalty agreement or rate is a percentage of total revenue gotten from the sale of oil and gas, and its always outlined in the lease agreement. The royalty percentage is usually 12.5% to 15% but can change based on regional regulations or negotiations.

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Bidders also need to submit with their bids a Bidder Contact Form (Exhibit J) which identifies contact information relative to the bids. b) Sealed bids must

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