Minerals Management

This division is responsible for the management of over 2.5 million mineral acres. Four oil and gas lease auctions are held each year and leases are awarded to the company or individual offering the highest up-front payment (bonus) for the lease. Leases allow the lessee to explore for oil and gas for five years. If a well is drilled and produces oil or gas then the lease lasts as long as there is production. All leases carry a royalty rate of 1/6. Royalty is collected and accounted for on production from over 520 wells.

This division issues coal leases, monitors the mining activity and works with the Surface Division to ensure development on state land proceeds in an environmentally sound manner.

Audits are performed to ensure that the proper amount of royalty is received and that our lessee is complying with all lease provisions.