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

Okla. Admin. Code § 385:15-1-6
Amended by Oklahoma Register, Volume 38, Issue 06, December 1, 2020, eff. 11/2/2020

State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.


No prior version found.