Or. Admin. Code § 141-070-0090

Current through Register Vol. 63, No. 12, December 1, 2024

Section 141-070-0090 - Auction Procedure

The procedure for auctioning state oil and gas leases shall be either by sealed bid or oral bid. The selection of auction procedure shall be at the discretion of the Director based on the public interest. Bids shall include the minimum bid amounts set by the Director plus any additional per-acre cash bonus amount the applicant desires:

(1) Oral Bid Procedure. The minimum starting bid amount per acre, minimum raise in bid per acre, and bidding unit parcels will be set forth in the notice of auction:

(a) The highest qualified bidder shall pay one year's advance annual rental at the close of the auction and any cash bonus bid within five working days after the close of the auction. Upon compliance with these rules and applicable statutes, the highest qualified bidder shall be awarded the lease;

(b) If no bids are received at the auction, the Division may award the lease to the original nominating applicant by accepting that applicant's offer pursuant to OAR 141-070-0060(2);

(c) The Division reserves the right to reject any and all bids on any tract offered for lease.

(2) Sealed Bid Procedure. The minimum acceptable bid will be established by the Director and will be announced in accordance with OAR 141-070-0080:

(a) The number of acres within each bidding unit shall be established by the Director;

(b) Each bidder shall submit a completed bid form provided by the Division together with a check in an amount not less than ten percent of the total bid amount per bidding unit. All bids received by the deadline stated in the auction notice shall be opened and announced at the specified place, date, and hour;

(c) The Director shall award a lease to the highest qualified bidder for each bidding unit within 30 days of the bid opening. The successful bidder shall pay the balance of the cash bonus bid amount and the first year's rental within ten working days of the date the Director notifies the successful bidder by certified mail.

Or. Admin. Code § 141-070-0090

LB 3-1988, f. & cert. ef. 9-19-88

Stat. Auth.: ORS 273

Stats. Implemented: ORS 273 .780 - ORS 273 .790