State Mineral and Energy Board

State Mineral Leasing takes another big leap

Haynesville Shale area acreage strong

The Louisiana Mineral Board collected $48.7 million this month, surpassing last month's record payment of $35.8 million. According to Mineral Board Chairman and Department of Natural Resources Secretary Scott Angelle, "it appears that with the Haynesville Shale discovery underway, several major companies are validating their intentions to develop and produce natural gas in a big way. The state's energy production figures look to be on the upswing this year."

Governor Bobby Jindal said, "This $48 million from the lease sale this month, and with $46.4 million coming from the Haynesville Shale play, makes it the highest single lease sale for the state in mineral leasing since the early 1980s. This is terrific news for Louisiana and our continued work to encourage economic development in oil and gas and in every sector of our state to create great, high paying jobs so our kids don't have to leave Louisiana to pursue a great career."

Angelle said, "Louisiana is a great province to explore for oil and gas and we will continue our leadership role in helping to fuel this great nation. Our marketing trips to the oil companies of America are paying dividends for Louisiana. With stronger ethics laws, a reduction in taxes, and a responsive state government, Wall Street is confident that Louisiana is the address for success."

The lease sale figures show that over $46.4 million of this month's total of bonus money came from eight leases in the Haynesville Shale play area of north Louisiana of acreage that the Mineral Board was leasing on behalf of local governments there. According to State Mineral Board Secretary Marjorie McKeithen, seven of the north Louisiana leases were located in Caddo Parish and averaged over $30,000 per acre in bonus and 30 percent royalty.  The total bonus money received for the Caddo Parish leases amounted to $17,683,171, covering approximately 585 acres.  The other north Louisiana lease covered 1,045 acres in DeSoto Parish and brought in $28,750,040 in bonus which tallies $27,512 per acre and 27.5 percent royalty. 

McKeithen said the $46.4 million in bonus payments will go to the Caddo Parish Commission and the DeSoto Parish Police Jury.  "We over-nighted the checks to the local governments yesterday, and they have already received them. Yesterday was a great day for our state and today is a great day for the Caddo and DeSoto Parish local governments!" McKeithen said.

Following the meeting, Mansfield Mayor Curtis McCoy contacted McKeithen requesting that the Mineral Board consider leasing their properties for them in the future. McKeithen said she will travel to Mansfield on Monday to address the Mayor and Council members and assure them of the board's willingness to assist. She was also contacted by the DeSoto Parish School Board, who is also interested in the board's services. "We have a staff of expert geologists, petroleum landmen, and petroleum engineers and we have authority to lease lands on behalf of local governments, schools, and universities at no charge to them," she noted. According to McKeithen, the Office of Mineral Resources and the Mineral Board are ready and willing to assist the local governments however they can.

Angelle also said that he has directed the Mineral Board staff to contact all public bodies in the Haynesville Shale area to offer the assistance of the board in leasing their acreage; "we want to assist every agency possible in taking advantage of this opportunity," he said.

Below are the preliminary results of the July lease sale held on Wednesday, July 9th in Baton Rouge. The month of July begins the state's fiscal year 2008-09 calendar.

CLASSIFICATION	NOMINATED TRACTS	NOMINATED ACREAGE	LEASES AWARDED	NO. OF ACRES	AMOUNT OF CASH PAYMENTS
Lease Sale July 9, 2008
State Offshore Leases	17	22,977.290	5	1,588.800	$419,953.35
State Onshore Leases	17	9,229.590	11	2,558.620	$1,433,954.79
State Dedicated Leases	25	41,942.420	3	699.500	$449,711.00
State Agency Leases	8	1,630.303	8	1,630.303	$46,433,214.24
Total Sale	67	75,779.603	27	6,477.223	$48,736,733.38
NOTE: The totals for this sale do not refflect any options that may be exercised or revisions to acreage and cash amounts that may take place after this sale date which may cause these totals to change.
2008-2009 Fiscal Year
State Offshore Leases	17	22,977.290	5	1,588.800	$419,953.35
State Onshore Leases	17	9,229.590	11	2,558.620	$1,433,954.79
State Dedicated Leases	25	41,942.420	3	699.500	$449,711.00
State Agency Leases	8	1,630.303	8	1,630.303	$46,433,214.24
Total Sale	67	75,779.603	27	6,477.223	$48,736,733.38
NOTE: The Fiscal Year totals include only this sale totals since it is the beginning of the new fiscal year.