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Yearly State Leasing Data

2012 - State Land Oil and Gas Leasing

In 2012, DEC administered 79 leases on 44,464 acres of state land in Allegany, Cattaraugus, Cayuga, Chautauqua, Chemung, Erie, Ontario, Schuyler, Seneca, and Steuben Counties. There were 237 wells located on and/or unitized with state land associated with 65 of these leases paying production royalties.

The 44,464 leased acres represent an increase of 14 acres from 2011, a result of the addition of two non-competitive DOT leases.

Revenues from oil and gas leases on state lands totaled $318,609 in 2012, a decrease of $265,740 from 2011. The decline in leasing revenues paid to the state can be attributed to the following factors:

  • Fluctuations in the royalty payment totals for underground storage leases associated with the state;
  • Lack of subsequent state lease sale(s) to generate additional revenue;
  • Reduced revenue from state lease wells related to production decline; and
  • The lower average well head price of natural gas, which fell from $4.08/mcf in 2011 to $2.63/mcf in 2012.

Although nearly 59,000 acres of state land have been leased since 1999, only 37 (0.06%) of these acres have been disturbed by well drilling, access road and pipeline construction.

State Acreage Under Lease at Year-End 2012:

  • DEC State Forests - 32,383 acres
  • DEC Wildlife Management - 1,059 acres; and
  • Other State Agencies - 11,022 acres.

graph showing total leasing revenuse from 2008-2012

Historical Leasing Reports:

The Oil & Gas Leasing Reports are summaries of yearly oil and gas activity on state lands, including production and financial information. Leasing Reports for previous years may be obtained by contacting the Division of Mineral Resources. Beginning with calendar year 2012, these annual summaries are included in the Division's Annual Report.

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