Commissioner Brock Greenfield

Oil and Gas Auction Facts and Procedures

ALL OIL AND GAS LEASES ARE OFFERED AND SCHEDULED FOR SALE AT AUCTION WHEN APPLICATIONS ARE RECEIVED. APPLICATIONS CAN BE MADE AT ANY TIME, BUT AUCTIONS WILL BE SCHEDULED SPRING THROUGH FALL.

NOMINATE SCHOOL AND PUBLIC LANDS (SPL) FOR MINERAL LEASE AUCTION BY USING THE SPL APPLICATION FORM ON THIS WEBSITE.

APPLICATIONS MUST BE ACCOMPANIED BY THE FIRST YEAR’S RENTAL ($1.00 PER ACRE) AND MINIMUM BONUS ($2.00 PER ACRE IN AREA “B” ((WEST RIVER)) AND $.50 PER ACRE IN AREA “A” ((EAST RIVER))). BIDDING AT THE AUCTION WILL BE ON THE BONUS AMOUNT. THE BONUS AMOUNT IS A ONE-TIME PAYMENT.

IF THE APPLICANT IS THE SUCCESSFUL BIDDER, MONIES RECEIVED WILL BE CREDITED TO THE TOTAL AMOUNT OWED FOR ACRES LEASED AT AUCTION.

SUCCESSFUL BIDDERS AT AUCTION WILL PAY FOR THE ADVERTISING COSTS BASED ON PRORATED AMOUNTS.

IF THE APPLICANT IS UNSUCCESSFUL, THE MONIES RECEIVED WILL BE REFUNDED AFTER THE AUCTION.

OIL AND GAS LEASE TERMS

  1. LEASES ARE TO BE FOR A TERM OF FIVE YEARS UNLESS HELD BY PRODUCTION.
  2. LEASES SHALL BE ISSUED TO INCLUDE UNITS OF 640 ACRE AREAS, MORE OR LESS. LESSER-SIZED AREAS WILL BE LEASED ONLY WHEN THERE ARE NO OTHER STATE LEASE AREAS CONTIGUOUS TO OR CORNERING SAID AREA.
  3. THE ANNUAL RENTAL IS ONE DOLLAR ($1.00) PER ACRE PER ANNUM ON A DRILL OR PAY BASIS. NO NOTICE OF “PAYMENT DUE” WILL BE SENT.
  4. THE ROYALTY RATE UPON PRODUCTION WILL BE ONE-EIGHTH (1/8).
  5. LEASES ARE TO BE EXECUTED IN CONFORMITY WITH SDCL CHAPTER 5-7 AND APPLICABLE SECTIONS TEREUNDER AND THE RULES AND REGULATIONS PROMULGATED BY THE COMMISSIONER OF SCHOOL AND PUBLIC LANDS.

ASSIGNMENT OF LEASES

  1. THE COMMISSIONER OF SCHOOL AND PUBLIC LANDS MUST APPROVE ASSIGNMENTS.
  2. THERE IS A $10.00 FILING FEE PER LEASE ASSIGNMENT.
  3. BLANKET ASSIGNMENTS ARE POSSIBLE, BUT THE $10.00 FEE PER LEASE APPLIES.
  4. ASSIGNMENTS MUST BE ON S.P.L. FORMS SUPPLIED THROUGH OUR WEBSITE OR OFFICE.

APPLICATION FORMS, ASSIGNMENT FORMS AND COPIES OF SOUTH DAKTOA CODIFIED LAWS AND ADMINISTRATIVE RULES RELATING TO OIL AND GAS AND/OR MINERAL DEVELOPMENT WITHIN THE JURISDICTION OF THIS OFFICE ARE AVAILABLE.

A LISTING OF STATE-OWNED ACRES IS ALSO AVAILABLE FOR $20.00 PER COPY. IT IS ALSO POSTED ON THIS WEBSITE.