How-To Guide

Set the Minimum

After the area to be nominated has been presented to the staff for review, the area will be evaluated in order to set the minimum terms for seismic fee, bonus amount and royalty.  You will then be provided with this information.  If accepted by you, then these minimums will be recommended to the Board for their approval.  All information given to the staff will be held confidential, including the area to be nominated.  However, until the prospective area has been approved for nomination by the Board, seismic permitting and leasing will still be allowed within the area to be nominated.  Additionally, other parties interested in nominating the same area for one of the EGA’s will similarly be met with and heard by the staff.  However, no party will be apprized of any other’s interest in the same area.  If there are multiple parties interested in nominating the same or overlapping areas, the Board will choose which applicant will be accepted.  Approval of any area, as well as the size of the area to be nominated in an EGA is generally determined by, but not limited to, considerations of the leasing, drilling and exploration activities in the area as well as the overall benefits to the State that may be derived as a result of the area being nominated.

Upon Board approval, you may then apply to the OMR Leasing Section to nominate the area for the designated lease sale for public bidding.  A nomination letter, including plat and legal description of the area, with an application fee of $400.00 must then be submitted according to the date schedule set by the Leasing Section.  The full description, all provisions, minimum bonus, royalty, type and terms of the EGA will then be advertised, as prescribed by State law.  Generally, the process is similar to mineral leasing.