BLM auctions oil leases on Nevada parcels

A Colorado oilman accounted for much of the action last week at an auction of oil and gas leases on federal lands in Nevada.

The quarterly auction was conducted by the Bureau of Land Management.

John Obourn Jr. of Littleton was the winning bidder on 15 of the 20 parcels leased at the auction. His acquisitions included the highest bid in the auction, $34,578 for a 1,920-acre parcel in Nye County.

The high bid per acre was $19 by Adwin America, Inc., of Cedar Grove, N.J., for a 1,030-acre parcel in Nye County.

The auction generated $194,828 in successful bids. Leases are for 10 years with annual rentals of $1.50 per acre for the first five years and $2 an acre after that until production begins. Once a lease is producing, a royalty of 12.5 percent is charged.