Leasing Washington State-owned Lands
FOR OIL AND GAS EXPLORATION
Washington’s Department of Natural Resources (DNR) periodically holds auctions to lease state-owned lands—mostly state trust lands—for oil and gas exploration. This occurs when an interest has been shown by the oil and gas industry and individuals.
DNR leases lands for petroleum exploration and production on behalf of several state agencies; this includes lands and ‘severed mineral rights’ managed by Washington State Departments of Fish and Wildlife, Transportation, Parks and Recreation, and Natural Resources. Parties interested in understanding and participating in the oil and gas lease auctions, will find the appropriate documents below.
Bonus, rental, and royalty revenues generated by leasing state acreage are returned to the agencies or, in the case of DNR, to specific state trust beneficiaries. For instance, revenue generated on lands owned by the Common School trust goes to the construction fund for public schools. Other state trust lands managed by DNR support the state universities, and some counties and their local districts.
State-owned Lands Available for Future Oil and Gas Leasing
Although an auction date has not been set, we welcome recommendations for areas of interest to be included in the next oil and gas leasing auction, and are accepting lease applications for leasing these state parcels. As interest arises and applications are received we will schedule a date. Please mail applications for nomination to Washington State Department of Natural Resources, Forest Resources Division, P.O. Box 47014, Olympia WA 98504-7014.
Results from May 22, 2007 Auction
Oil and Gas Leasing Background Information
Mineral Rights Laws and Contracts
Oil and gas leasing in Washington is administered under the Mineral, Coal, Oil, and Gas Leasing Act (chapter 79.14 RCW) and the Oil and Gas Leasing Rules (chapter 344-12 WAC).
The leasing contract provides for a 12.5 percent overriding royalty, a $2.00 - $5.00 per acre annual rental fee, and various requirements needed to comply with Washington law.
Leasing state mineral rights for underground gas storage facilities, for which there exists a marked shortage, is being marketed here under separate lease agreements.