Current through Vol. 41, No. 13, March 15, 2024
The public auction process for school land oil and gas lease
sales shall be as follows:
(1)
Notice of Sale
.
(A) The Land Office shall publish a Notice of
Sale in the manner prescribed by law prior to conducting a public auction for
school land oil and gas leases.
(B)
The Notice of Sale shall list each tract offered for leasing
separately.
(C) The Notice of Sale
shall specify the tract number and legal description for each tract offered for
leasing.
(D) The Notice of Sale
shall specify the date and time of the sale and the date and time bidding will
be closed.
(2)
Oil
and gas lease sales.
(A) The Land
Office shall utilize the standard lease form to offer a tract for leasing
except in a special oil and gas lease sale. The Land Office may alter the
standard lease form to offer a tract for leasing in a special oil and gas lease
sale.
(B) Bidders shall submit a
separate sealed bid for each tract sought. Each bid shall identify the tract
number and legal description for the tract sought.
(C) Except as otherwise provided in this
section, the Land Office shall lease each tract offered for leasing to the
highest responsible bidder.
(D) The
Land Office shall not consider drilling contracts or production payments when
reviewing bids, except if consideration of drilling contracts or production
payments is applicable to a special oil and gas lease sale.
(E) The Land Office shall reject all bids
less than $5.00 per acre, except if consideration of bids less than $5.00 per
acre is applicable to a special oil and gas lease sale.
(F) The Land Office may reject any and all
bids. The Land Office shall not provide justification for rejecting a bid.
(3)
Special oil
and gas lease sales.
(A) The Land
Office may conduct special oil and gas lease sales to offer non-standard lease
terms or make special considerations.
(B) The Land Office shall mark notices of
special oil and gas lease sales, "Notice of Special Oil and Gas Lease Sale."
(C) The Land Office shall list
non-standard lease terms or special considerations in the Notice of Special Oil
and Gas Lease Sales.
(D) The Notice
of Special Oil and Gas Lease Sales shall otherwise conform to the requirements
of a Notice of Sale provided in this section.
(4)
Electronic bidding.
(A) Sealed bids for each tract offered shall
be submitted electronically in the manner designated by the
Secretary.
(B) The Secretary shall
post electronic bidding procedures on the Land Office website.
(C) Subject to other applicable laws, the
Secretary may select a designee to manage the electronic bidding process for
the Land Office.
(D) The designee
selected by the Secretary may impose a surcharge on the winning bid not to
exceed two percent (2%) of the winning bid or a fee determined by resolution of
the Board.
(5)
Time
of sale. The Land Office shall not accept bids submitted after bidding
is closed, as specified in the Notice of Sale.
(6)
Deposit required.
(A) Bidders shall remit a deposit not less
than twenty-five percent (25%) of the total amount bid to the Land Office or
its designee when submitting a bid.
(B) Successful bidders shall remit the
remaining seventy-five percent (75%) of the total amount bid to the Land Office
or its designee within thirty (30) days following the Land Office's acceptance
of the successful bid.
(C) The Land
Office or its designee shall refund deposits submitted by unsuccessful bidders
within forty-five (45) days following the Land Office's acceptance of a
successful bid.
(7)
Assignment of bids. Bidders shall not assign their rights to bids
for oil and gas leases.
(8)
Bids are final. Bids shall be final when submitted by a bidder.
The Land Office shall not permit a bidder to withdraw or alter a sealed bid to
correct an error or for any other purpose.
(9)
Award. The Land Office shall
award a lease to the successful bidder within sixty (60) days following the
auction.
(10)
Responsibilities of bidder after award. Within thirty (30) days of
the Land Office's award of a lease, the successful bidder shall:
(A) execute and return the oil and gas lease
to the Land Office; and
(B) remit
the balance of money owed for lease bonus, delay rental, or performance fee to
the Land Office.
(11)
Extension. The successful bidder may submit a written request for
an extension of time to execute and return the oil and gas lease and remit the
balance of money owed. The Land Office may grant a reasonable extension, in
writing, for good cause shown.
Amended at 15 Ok Reg 1745,
eff 5-12-98; Amended at 21 Ok Reg 633, eff 12-19-03 (emergency); Amended at 21
Ok Reg 1043, eff 5-13-04; Amended at 29 Ok Reg 1299, eff
6-25-12
