On Tuesday, May 2, 2023, the Department of Natural Resources (DNR) will offer, at an online bid public auction, approximately 77,000 acres of state-owned oil and gas lease rights throughout Arenac, Clare, Crawford, Gladwin, Grand Traverse, Kalkaska, Manistee, Mason, Midland, Missaukee, Montcalm, Newaygo, Osceola, Oscoda, and Wexford counties. More detailed information regarding location of the nominated parcels is available at www.michigan.gov/minerals, under Minerals map, select View the minerals management map.
Bidder registration will open no later than Sunday, April 30. Bids may be submitted by individuals of legal age, a partnership, corporation, or other legal entity qualified to do business in Michigan.
Bidders not on the authorized bidder list will be required to submit a security deposit to register. The security deposit must be made by electronic bank transfer or certified check in the amount of $5,000 and be received no later than 24 hours prior to the auction start time. The security deposit will be returned to the registered bidder after all successful bids are paid in full.
Prior to the day of the auction, prospective bidders can contact Kimberly Venne at VenneK@Michigan.gov to confirm they are on the authorized bidder list. (In order to be placed on the authorized bidder list, the individual must have been a successful bidder at a previous state of Michigan oil and gas lease auction; not have an outstanding balance owed; and not be on the DNR hold action list).
A preview auction catalog will be available in April showing the legal description of the lands proposed to be offered and parcel classification. A DNR-approved auction catalog – outlining legal descriptions and parcel classifications – will be available after Thursday, April 13, at Michigan.gov/Minerals select “Oil and Gas,” or by contacting DNR-LeaseManagement@Michigan.gov (subject line should be: AUCTION).
Written comments from interested parties relative to the classification of any description must be received by the DNR Minerals Management Section by April 10. Final approval of proposed classification will be set at the sole discretion of the DNR.
Offering of lease rights will begin Tuesday, May 2, at 9 a.m. at a minimum of $10 per acre and will continue until all parcels have been offered. The total bonus must be paid at the time of check out for all lease rights which receive successful bids. The successful bidders must pay the total bonus bid and a minimum of one year’s rental by electronic bank transfer or certified check no later than 4 p.m., May 4.