BILLINGS, Mont. – The Bureau of Land Management Montana-Dakotas State Office leased 11 parcels totaling 4,266.06 acres for $3,413,797 in total receipts for its quarterly oil and gas lease sale, the bureau recently announced. BLM lease sales are held online.

The combined bonus bids and rentals from the leases will be distributed among the federal government and the states of Montana and North Dakota, according to BLM information.

Leasing is the first step in the process to develop federal oil and gas resources.

Oil and gas leases are awarded for a term of 10 years and as long thereafter as there is production of oil and gas in paying quantities. The federal government receives a royalty of 16.67% of the value of production.