State Mineral Board Chairman Scott Angelle announced today the results of this month’s mineral lease sale, calling it “the second highest for the state in ten years”. The October lease sale amounted to an $8.5 million payment on 75 leases awarded to oil and gas exploration companies drilling state properties both onshore and offshore, he said.

During 2004, the average monthly lease sale amount was $2.4 million while in 2003, the average monthly total was $1.75 million. However, Angelle said that $2.2 million alone was received on 683 acres located offshore in Cameron Parish this month, in addition to $6.3 million in other leases granted that provide revenue to the state’s general fund. He said the Biloxi Marsh area located in St. Bernard Parish was another area where a large number of leases were awarded.

“It has been about eight months now that energy prices have remained high and this may be an indication of increased interest by the industry,” Angelle noted. He also said, “the Department of Natural Resources continues its efforts to streamline the permitting process and is working with the LSU Center for Energy Studies to examine ways to improve the competitiveness of the oil and gas industry doing business on state lands and water bottoms.” Angelle further noted that Governor Blanco is very serious about wanting a strong oil and gas industry in Louisiana. “She wants to know each time we meet that we are making strides and making the process work better.”

Records from the Mineral Board office at the Department of Natural Resources show that in April 1998, the Board awarded leases in the amount of $17 million, the highest monthly award over a ten year period.

Here are the preliminary results of the lease sale conducted by the State Mineral Board at the October 13, 2004 Lease Sale held in the Conservation and Mineral Resources Hearing Room located in the LaSalle Office Building in Baton Rouge.