As part of the Trump Administration’s goal of promoting responsible energy development, the Bureau of Land Management (BLM) New Mexico raised $8,284,586 in its oil and gas lease sale held Aug. 26-27. Nearly 50% of the revenue from the sale will go to the states where the oil and gas activity occurs – in this case New Mexico, Oklahoma and Texas – while the rest will go to the U.S. Treasury.
The states use the revenue from lease sales to fund important services including schools, hospitals, law enforcement and infrastructure projects.
For this sale, the BLM offered leases on 113 parcels totaling 48,776.1. The highest bid per acre was $21,512, which sold to Federal Abstract Company for 120 acres in Eddy County, NM. The same parcel also received the highest bid per parcel with a total of $2,581,790.
The BLM awards oil and gas leases for a term of 10 years, and as long thereafter as there is production of oil and gas in paying quantities. If the leases result in producing oil or gas wells, revenue from royalties based on production is also shared with the state.
The BLM’s policy is to promote oil and gas development if it meets the guidelines and regulations set forth by the National Environmental Policy Act of 1969 and other subsequent laws. The sales are also in keeping with the America First Energy Plan, which is an all-of-the-above plan that includes oil and gas, coal, strategic minerals, and renewable sources such as wind, geothermal and solar, all of which can be developed on public lands.
For more details about the sale results, please visit: https://www.blm.gov/programs/energy-and-minerals/oil-and-gas/leasing/regional-lease-sales/new-mexico.