If known coal deposits exist, the DNR conducts a competitive lease disposal, otherwise a noncompetitive coal prospecting permit disposal is held. Leases are issued for indeterminate terms, and coal prospecting permits have 3-year terms with the option for renewal. Competitive Oil and Gas Lease - The Division of Oil and Gas issues leases, through a competitive sale process, allowing for the exploration and development of oil and gas on state land. The Five Year Oil and Gas Leasing Program provides a stable and predictable schedule of proposed lease sales. Typically, during a lease sale, the bidder having the highest bonus bid is awarded a lease, no larger than 5,760 acres, for a term of 5 to 10 years depending upon the specific sale.
Leases can continue indefinitely if held by production.
An inventory of active oil and gas leases is updated monthly. Exploration Licenses - The Division of Oil and Gas issues exploration licenses to stimulate exploration of oil and gas in remote areas of the state. Each April applicants may submit proposals for licenses. At any time the Commissioner may solicit license proposals for a specific area. A license, with a term of up to 10 years, will be awarded to the applicant who has committed the most dollars to an exploration program.