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BLM New Mexico Oil And Gas Lease Sale Nets More Than $30 Million

on December 27, 2017 - 8:51am
BLM News:
SANTA FE — In keeping with the administration’s goals of promoting America’s energy independence, the Bureau of Land Management New Mexico quarterly oil and gas lease sale resulted in $30,361,782.50 in competitive bids for 2,104.15 acres. 
The combined bids will be distributed between the federal government and the State of New Mexico. 
The BLM offered 7 parcels in Eddy and Lea counties. The highest bid per acre was made by Federal Abstract Company, Santa Fe, N.M. at $40,001.00. This set a BLM record for the highest bid per acre.
Oil and gas lease sales support domestic energy production and promote American energy independence. The BLM’s energy program includes an all-of-the-above approach that includes oil and gas, coal, strategic minerals and renewable sources, all of which can be developed on public lands.
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 and policies passed by the U.S. Congress. The sales are also in keeping with the America First Energy Plan, which includes development of fossil fuels and coal, as well as renewable energy.
Oil and gas leases are awarded for a term of 10 years and as long thereafter as there is production of oil and gas in paying quantities. The federal government receives a royalty of 12 and one-half percent of the value of production. Each state government receives a 25 percent minimum share of the bonus bid and the royalty revenue from each lease issued in that state.