Okla. Admin. Code § 385:15-1-6 - [Effective until9/14/2021]Public auction process for school land oil and gas lease sales
The public auction process for school land oil and gas lease sales shall be as follows:
(1)
Notice of Sale.
(A) The Land
Office shall publish a Notice of Sale as required by law prior to conducting a
public auction for school land oil and gas leases.
(B) The Notice of Sale shall list each tract
offered for leasing separately.
(C)
The Notice of Sale shall specify the tract number and legal description for
each tract offered for leasing.
(D) The Notice of Sale shall specify the date
and time of the sale and the date and time bidding will be
closed.
(2)
Oil and
gas lease sales.
(A) The Land Office
shall utilize the standard lease form to offer a tract for leasing except in a
special oil and gas lease sale. The Land Office may alter the standard lease
form to offer a tract for leasing in a special oil and gas lease
sale.
(B) Bidders shall submit a
separate sealed bid for each tract sought. Each bid shall identify the tract
number and legal description for the tract sought.
(C) Except as otherwise provided in this
section, the Land Office shall lease each tract offered for leasing to the
highest responsible bidder.
(D) The
Land Office shall not consider drilling contracts or production payments when
reviewing bids, except if consideration of drilling contracts or production
payments is applicable to a special oil and gas lease sale.
(E) The Land Office shall reject all bids
less than $5.00 per acre, except if consideration of bids less than $5.00 per
acre is applicable to a special oil and gas lease sale.
(F) The Land Office may reject any and all
bids. The Land Office shall not be required to provide justification for
rejecting a bid.
(3)
Special oil and gas lease sales.
(A) The Land Office may conduct special oil
and gas lease sales to offer non-standard lease terms or make special
considerations.
(B) The Land Office
shall mark notices of special oil and gas lease sales, "Notice of Special Oil
and Gas Lease Sale."
(C) The Land
Office shall list non-standard lease terms or special considerations in the
Notice of Special Oil and Gas Lease Sales.
(D) The Notice of Special Oil and Gas Lease
Sales shall otherwise conform to the requirements of a Notice of Sale provided
in this section.
(4)
Electronic bidding.
(A) Sealed
bids for each tract offered shall be submitted electronically in the manner
designated by the Secretary.
(B)
The Secretary shall post electronic bidding procedures on the Land Office
website.
(C) Subject to other
applicable laws, the Secretary may select a designee to manage the electronic
bidding process for the Land Office.
(D) The designee selected by the Secretary
may impose a surcharge on the winning bid not to exceed two percent (2%) of the
winning bid or a fee determined by resolution of the Board.
(5)
Time of sale. The Land
Office shall not accept bids submitted after bidding is closed, as specified in
the Notice of Sale.
(6)
Deposit required.
(A) Bidders
shall remit a deposit equal to twenty-five percent (25%) of the total amount
bid to the Land Office or its designee when submitting a bid.
(B) Successful bidders shall remit the
remaining seventy-five percent (75%) of the total amount bid to the Land Office
or its designee within thirty (30) days following the Land Office's acceptance
of the successful bid.
(C) The Land
Office or its designee shall refund deposits submitted by unsuccessful bidders
within forty-five (45) days following the Land Office's acceptance of a
successful bid.
(7)
Assignment of bids. Bidders shall not assign their rights to bids
for oil and gas leases.
(8)
Bids are final. Bids shall be final when submitted by a bidder.
The Land Office shall not permit a bidder to withdraw or alter a sealed bid to
correct an error or for any other purpose.
(9) The Land Office shall accept or reject
sealed bids within sixty (60) days following the auction.
Notes
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