ALBUQUERQUE, N.M. — New Mexico’s share will be more than $1.1 million
Bids for 37 parcels in New Mexico during Wednesday’s quarterly oil and gas lease sale in Santa Fe administered by the U.S. Bureau of Land Management brought in more than $2.3 million, the BLM said in a news release.
In all, the sale netted $7,894,551 in revenues from the sale of 74 federal leases in New Mexico, Oklahoma, Texas and Kansas, according to the BLM.
The agency said bids for 14 parcels in Texas brought in just over $5.4 million, while bids for four parcels in Oklahoma brought in over $81,000 and bids for seven parcels in Kansas brought in $8,074.
The highest bid per acre for a parcel was $5,100 for 80 acres in Eddy County, N.M., by Marbob Energy Corp. of Artesia. The highest overall total per parcel was $3,824,820 for 786 acres in Shelby County, Texas, by J Bar Cane Inc. of Stanley, N.M., the news release said.
Leases are awarded for a period of 10 years and as long thereafter as there is production in paying quantities. The government receives 12.5 percent royalties on production from those leases. Fifty-two percent of the revenues from federal lease sales are returned to the U.S. government and 48 percent go to the state where the mineral lease occurs. New Mexico will receive over $1.1 million from Wednesday’s sale, the BLM said.