LOGA Industry Report - Fall 2008 - (Page 37)

Mineral Leasing Sale Highest on Record Louisiana Mineral Board collected $93.8 million at its August lease sale, nearly doubling the $48.7 million collected in July. The majority of the August lease sale dealt with state-owned land, meaning a windfall for the state of Louisiana. Department of Natural Resources Secretary Scott Angelle noted that the August sale was the second biggest lease sale the Mineral Board has handled since 1969. The highest recorded sale was $157.7 million in May of 1980. The August 2008 sale handily outstripped what had been the second highest lease sale -$57.1 million in April 1978. According to Mineral Board Secretary Marjorie McKeithen, $92.2 million of the bonus money was generated from leases granted within the Haynesville The Shale Play. The Haynesville leases covered approximately 4,070 acres in Caddo, Bossier, DeSoto, Bienville and Red River Parishes. The royalty percentages on the Haynesville leases ranged from 25 to 30 percent, according to McKeithen. Governor Bobby Jindal said the lease sale, far and away the biggest single sale since the 1980s, pays dividends not only in the direct dollars to state and local government in lease bonuses and possible future royalty and tax dollars, but by continuing to draw interest to the state and boosting economic development. Angelle said that his department’s next responsibility, as with all development of the state’s natural resources, is to make sure the mineral leases are used to return the most value to the state in the most environmentally responsible way. “We are excited about the opportunities the new interest in north Louisiana has brought and will bring and are preparing to help oil and gas companies begin their development work as quickly as possible while holding them accountable to do it the right way,” Angelle said. Because almost all of the Haynesville leases granted today were on state-owned land and water bottoms, all of the bonus money collected on the state leases and 90 percent of any future royalty payments will go into state coffers, according to McKeithen. However, the parishes in which the leases are located will receive 10 percent of the royalty generated on the leases once production begins, she added. The total collected by the Mineral Board in the ﬁrst two months of the current ﬁscal year is $142.6 million. CLASSIFICATION NOMINATED TRACTS 14 52 1 1 4 72 NOMINATED ACREAGE 15,665.36 15,734.61 198 0.56 353.68 31,952.21 LEASES AWARDED 3 42 1 1 4 51 NO. OF ACRES 755.47 6,184.23 198 0.56 294.5 7,432.76 AMOUNT OF CASH PAYMENTS $366,438.25 $89,337,705.78 $80,388.00 $15,400.00 $4,031,768.00 $93,831,700.03 Lease Sale August 13, 2008 State Offshore Leases State Onshore Leases State Dedicated Leases School Indemnity Lands State Agency Leases Total Sale NOTE: The totals for this sale do not reflect any options that may be exercised or revisions to acreage and cash amounts that may take place after this sale date which may cause these totals to change. NOTE: It has been determined that Tr. 40024, & 40026 listed as inland tracts and Tr. 40057, 40058, 40059, 40060, 40062 & 40063, listed as Vacant State Land tracts, are in fact dedicated Loggy Bayou WMA tracts. There were 8 leases covering 314.89 acres for a cash consideration of $7,411,850.00. These amounts will be adjusted to the 2008 - 2009 Fiscal Year totals for next months state lease sale. 2008-2009 Fiscal Year State Offshore Leases State Onshore Leases State Dedicated Leases School Indemnity Lands State Agency Leases Total Year to Date 31 69 26 1 12 139 38,711.90 24,964.20 42,140.42 0.56 1,983.98 107,801.06 8 53 4 1 12 78 2,344.27 8,742.85 897.5 0.56 1,924.80 13,909.98 $786,391.60 $90,841,793.97 $530,099.00 $15,400.00 $50,464,982.24 $142,638,666.81 NOTE: The Fiscal Year totals include this sale totals and also options exercised and revisions to acreage and cash amounts that may have taken place from the date of the last sale to this state lease sale. www.loga.la | 37 http://www.loga.la

Table of Contents Feed for the Digital Edition of LOGA Industry Report - Fall 2008

LOGA Industry Report - Fall 2008 Contents Chairman's Corner President's Perspective Commissioner's Comments From the Pipeline... Supreme Court Upholds Act 312 LOGA Challenges Commission's Ad Valorem Tax Rules The Haynesville Shale - Waiting for the Gas to Come In 2008 Legislative Recap Gulf Coast Prospect Expo 2008 2nd Annual LAGCOE Open Golf Tournament Conservationist by Trade Katrina Relief Fund Update DNR Intent Natural Gas Production Surges: A Free Market At Work IPAA Washington Report Legal Updates New Members Index to Advertisers

LOGA Industry Report - Fall 2008

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