STATE OF MICHIGAN OIL AND GAS LEASES SET TO EXPIRE

The Michigan Oil and Gas News recently reported that approximately 1,440 state of Michigan oil and gas leases acquired during the May, 2008 auction will expire this year.  Those leases have a primary term of five years, which means they are set to expire on August 1, 2013.  Extension requests are available, however.  It is possible to acquire two one year extensions per lease.  A party desiring to extend a lease must request to do so in writing and pay a $250.00 per lease review fee.  Michigan will not grant more than a one year extension at a time.  It is recommended that the requests be submitted at least 30 days prior to the expiration of the lease, but as always, sooner is better. 

 

Corey J. Wiggins is a Michigan oil and gas law attorney with offices located throughout Michigan.  Corey can be reached at (231) 946-8630 or at info@zbwlaw.com.  Visit our website at www.zbwlaw.com.

U. S. NATURAL GAS EXPORT PLANS

The Associated Press recently reported that companies including Exxon Mobil and Sempra Energy are currently seeking permits from the federal government to begin more than 20 projects that could export as much as 29 billion cubic feet of natural gas per day.  Approval of all of the projects currently under review by the federal government could possibly result in the export of more than 40 percent of the United States’ production of liquefied natural gas.  According to the U. S. Energy Information Administration, the United States’ recent drilling boom resulted in a one-third increase of natural gas production since 2005.  In 2012 U.S. natural gas production reached an all time high of 25.3 trillion cubic feet.

Corey J. Wiggins is a Michigan oil and gas law attorney with offices located throughout Michigan.  Corey can be reached at (231) 946-8630 or info@zbwlaw.com.

State of Michigan Lease Auction Results

The May 10, 2013 edition of the Michigan Oil & Gas News reports this week that the May 9, 2013 state oil and gas lease auction fetched a total of $1,355,264 in bonus bids.  A total of 36,970.67 acres were leased for an average bid of $36.66 per acre.  Huron County acreage received the highest average bid at $88.51 per acre, while Ionia County acreage received the lowest average of $10.02 per acre.  Approximately 98% of the lands offered was leased.