State Land Board Approves Oil, Gas Sale
Along with The Montana Department of Natural Resources and Conservation, Gov. Greg Gianforte, as chair of the Montana Land Board, has announced an oil and gas lease sale on state trust lands totaling more than $2.1 million in revenue.
“Montana provides key energy resources to make our state and nation energy independent and secure,” Gianforte said. “The funding generated by this sale represents a sustaining investment in Montana’s public schools to ensure our kids have access to the best education possible.”
The State Board of Land Commissioners, also known as the Land Board, approved the sale that included 12 tracts located in Musselshell, Sheridan and Toole counties. The tract in Sheridan County solely generated $2.14 million. This high bid was made possible as a direct result of the technological advancements the industry has made in horizontal drilling, opening wide underground layers from one surface location.
“Advances in the oil and gas industry are contributing to higher lease sales that generate more income for the beneficiaries of Montana’s state trust lands,” explained DNRC director Amanda Kaster.
Funds generated by leases on state trust lands contribute to the education fund for the state. Oil and gas leases are for possible future exploration and production.
“It is now common to see Bakken formation wellbores drilled up to four miles,” explained DNRC State Trust Lands petroleum engineer Zack Winfield. “Areas that were historically considered uneconomic for development are becoming very attractive to the industry. Provided that oil prices remain strong, I expect to see increased leasing activity and production from Sheridan County tracts into the future.”
