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The Michigan Department of Natural Resources is offering 4,130 acres of state-owned oil and gas lease rights at a public auction this spring, officials announced Wednesday.

The May 7 event involves parcels in Alpena, Arenac, Gladwin, Grand Traverse, Isabella, Lake, Midland, and Wexford counties.

An auction catalog showing the legal description of the lands proposed to be offered and parcel classifications will be available after April 11 at www.michigan.gov/minerals, select Oil and Gas; or by mailing DNR-OMM, P.O. Box 30452, Lansing, MI 48909; emailing DNR-Minerals@Michigan.gov; or by calling (517) 284-5844.

Registration begins at 8 a.m. the day of the auction at the Lansing Center, 333 E. Michigan Ave., according to the public notice on the event.

Offering of lease rights begins at 9 a.m. at a minimum bid of $10 per acre and will continue until all descriptions have been offered, the DNR said. At the end of the auction, parcels receiving no bids may be re-offered at a minimum bid of $2 per acre.

Bids may be submitted by individuals of legal age, a partnership, corporation, or other legal entity qualified to do business in Michigan, the notice said.

Prospective bidders are required to submit a valid government-issued photo ID. If they are not on an authorized bidder list, they must submit a $5,000 security deposit to register. The security deposit must be a cashier’s check or money order made payable to “State of Michigan.”

To be placed on the authorized bidder list, someone must have been a successful bidder at a previous state oil and gas lease auction, not have an outstanding balance owed and not be on the DNR Hold Action List. To confirm inclusion on the list, prospective bidders can contact (517) 284-5912 or vennek@michigan.gov. 

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