Oil & Gas Leasing
The IDL administers leases for State-owned land and minerals with oversight and approval by the Land Board.
Lands and minerals owned by the state endowment trust are leased to make money for specified endowment beneficiary institutions. The IDL also leases other State-owned lands, such as lands owned by the Idaho Department of Fish and Game, the Idaho Transportation Department, and public trust lands.
Oil and gas leases are offered through competitive bidding at oral auctions. Available lands are described in a tract list by legal subdivision with each tract having a designated tract number.
The minimum opening bonus bid is $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, the first year's annual rental of $1.00 per acre, and the prorated share of advertising costs.
Annual rental for the remaining term of the lease is one dollar per acre per year. Starting in 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 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.
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.
Future Oil & Gas Lease Auctions
October 19, 2017
Nomination period closes on July 21, 2017