Current through Register Vol. 63, No. 9, September 1, 2024
The procedure for auctioning state oil and gas leases shall be
either by sealed bid or oral bid. The selection of auction procedure shall be
at the discretion of the Director based on the public interest. Bids shall
include the minimum bid amounts set by the Director plus any additional
per-acre cash bonus amount the applicant desires:
(1) Oral Bid Procedure. The minimum starting
bid amount per acre, minimum raise in bid per acre, and bidding unit parcels
will be set forth in the notice of auction:
(a) The highest qualified bidder shall pay
one year's advance annual rental at the close of the auction and any cash bonus
bid within five working days after the close of the auction. Upon compliance
with these rules and applicable statutes, the highest qualified bidder shall be
awarded the lease;
(b) If no bids
are received at the auction, the Division may award the lease to the original
nominating applicant by accepting that applicant's offer pursuant to OAR
141-070-0060(2);
(c) The Division reserves the right to reject
any and all bids on any tract offered for lease.
(2) Sealed Bid Procedure. The minimum
acceptable bid will be established by the Director and will be announced in
accordance with OAR
141-070-0080:
(a) The number of acres within each bidding
unit shall be established by the Director;
(b) Each bidder shall submit a completed bid
form provided by the Division together with a check in an amount not less than
ten percent of the total bid amount per bidding unit. All bids received by the
deadline stated in the auction notice shall be opened and announced at the
specified place, date, and hour;
(c) The Director shall award a lease to the
highest qualified bidder for each bidding unit within 30 days of the bid
opening. The successful bidder shall pay the balance of the cash bonus bid
amount and the first year's rental within ten working days of the date the
Director notifies the successful bidder by certified mail.
Stat. Auth.: ORS 273
Stats. Implemented: ORS 273 .780 - ORS 273 .790
