The US Bureau of Land Management (BLM), Colorado is planning to offer 26 oil and gas lease parcels totalling about 30,548 acres during the March 2020 quarterly lease sale for exploration and production.

With a ten-year term, the leases are a contract to explore and develop potential oil and gas resources. The lease, however, will be extended subject to the establishment of production on the lease.

BLM said it plans to offer parcels managed by the Kremmling Field Office in Jackson County as well as the Royal Gorge Field Office in Las Animas County.

BLM Colorado State Director Jamie Connell said: “Oil and gas production from public lands is an important economic driver for communities across Colorado and the West.

“Consistent with our mandate to promote sustainable multiple-use activities on BLM-managed lands, we’re proud to offer these parcels for lease at our upcoming March lease sale.”

In 2018, oil and gas development on public lands managed by the BLM Colorado contributed an estimated $6.9bn to the economy. BLM Colorado leased 103 parcels totaling 67,980 acres for a total of $5,750,756 including rentals and fees.

According to BLM Colorado, oil and gas development on BLM-managed public lands supports 30,600 jobs statewide.

About 48% of the proceeds from each lease sale will be earned by the State of Colorado while the US Government will use the remaining.

The latest move triggers the start of a 30-day public comment period on the proposed lease sale, with scheduled close on 24 February 2020.

BLM generated $1.1bn oil and gas lease sales in FY 2018

The BLM generated a record $1.1 billion from 28 oil and gas lease sales in the financial year 2018.

In November 2019, BLM, Wyoming announced plans to offer 105 oil and gas lease parcels totalling about 118,219 acres during the March 2020 quarterly lease sale.

The BLM, in coordination with the State of Wyoming, said it deferring four whole parcels and a portion of one other as they intersect state-designated migration corridors.