Land Board approves March oil and gas lease sale; board members ask about riverbed ownership

The Montana State Land Board voted unanimously to approve an oil and gas lease sale conducted by the Department of Natural Resources and Conservation, DNRC staff said.

Director Castor told the board the March sale offered 47 tracts totaling about 8,326 acres and leased 18 tracts, generating $532,944 in proceeds. He said the average bid price was about $64 per acre, the high competitive bid was $4,005 per acre, and the largest total bid was $520,650 for Tract 13 in Richland County. Proceeds were described as benefiting the common schools and the public land trust.

"A total of 47 tracts covering 8,326 acres were offered and 18 tracts were successfully leased. The sale generated $532,944," Director Castor said as he summarized the results.

During discussion, board member Mr. Gavin asked whether some leased riverbed acres might be subject to quiet‑title claims from adjacent mineral owners. Zach Winfield introduced himself for the record as a petroleum engineer and responded that DNRC does not currently have a quiet‑title action for those acres and that quiet‑title suits typically follow drilling and royalty revenue. Winfield said DNRC geomorphologists review tracts before listing them and that staff are "confident in what we leased," while acknowledging that adjacent owners could later bring quiet‑title actions.

Attorney General Knudson also participated in the discussion. After questions were addressed, Director Castor moved approval of agenda item 0326-2; the motion was seconded and the board approved the lease sale by voice vote with no opposition.

The board did not attach conditions to the approval at the meeting; staff noted that ownership challenges, if they arise, are handled through later legal processes.