BC’s March lands sales bring in USD 1.6 million

The March 2015 natural gas and petroleum rights sale resulted in more than $1.6 million in bonus bids, contributing to the fiscal year total with over $334 million in total land sales.

The March 25, 2015, sale resulted in eight parcels being sold, covering 5,460 hectares with an average price of $305 per hectare, according to the British Columbia’s Ministry of Natural gas development.

The highest bids per hectare include a drilling licence and a lease in the Green Creek – Tommy Lakes area, about 180 kilometres northwest of Fort St. John. Collectively, these two parcels earned over $458,136 in tender bonus at average prices of $407 and $419 per hectare.

Drilling licences provide the exclusive right to explore for petroleum and natural gas by drilling wells, and are acquired by the successful bidder at the Crown sale. Primary terms are 3, 4 or 5 years depending on location.

Leases provide the exclusive right to produce petroleum and natural gas. They are acquired by the successful bidder at the Crown sale, or selected from permits and drilling licences. Primary terms are five or 10 years, depending on location.

Revenues from rights sales provide immediate economic benefits, funding social programs and infrastructure development in communities throughout the province.

The next sale, scheduled for April 22, 2015, will offer 11 parcels covering 6,686 hectares.

Image: gov.bc.ca