Oil and Gas Leasing
Oil and gas leases are offered periodically through competitive bidding at oral auction. Available lands are described in a tract list by legal subdivision with each tract having a designated tract number. Tracts receiving no bids at auction are available over-the-counter for a six-month period following the auction.
The minimum opening bonus bid is $0.25 per acre with bidding increments of $0.25 per acre. The total bonus bid is the sum of the amount bid per acre times the acres in the tract. Successful bidders must pay the bonus bid as well as the first year's annual rental of $1.00 per acre.
Annual rental for the remaining term of the lease is one dollar per acre per year. Starting with the sixth year a drilling penalty of one dollar per acre or unit per year is assessed if the lease is not producing or being drilled. The drilling penalty is in addition to the annual rental.
There is a 12.5 percent royalty on any oil and gas produced and saved from the lease.
A $1,000 bond is required for exploration on each lease. The bond must be increased to $6,000 prior to drilling. An additional bond is required under the drilling permit, which is issued by the Idaho Oil and Gas Conservation Commission.
The Idaho Oil and Gas Conservation Commission, which regulates oil and gas well drilling on state, federal and private land, is based in the IDL Director's office in Boise.
Seismic exploration on state land requires a permit from IDL prior to entry. The permit fee is $100 per mile if the land crosses contiguous tracts of state land; otherwise the permit fee is a minimum of $100 per section.
Oil and Gas Leasing Forms
NOTE: Documents on this page are available in either WORD or PDF format.