ALBUQUERQUE, N.M. — Bids for 12 parcels in New Mexico brought in more than $4.1 million at Wednesdayâ€™s Bureau of Land Management quarterly oil and gas lease sale held in Santa Fe for parcels in two states, the BLM announced in a news release.
The federal agency said New Mexico will receive $2,004,638 from the sale because 52 percent of the revenues from federal lease sales go to the U.S. government and 48 percent go to the state where the mineral lease occurs.
Wednesdayâ€™s sale brought in $4,296,533 in revenues from the sale of oil and gas leasing minerals rights on 14 parcels in New Mexico and Oklahoma, according to the news release. The total included bonus bids, administrative fees and first-year rentals.
The news release said bids for two parcels in Oklahoma brought in $115,160.
Leases are awarded for 10 years and as long thereafter as there is production in paying quantities, the news release said. The federal government receives 12.5 percent royalties on production from those leases.
April 19, 2011
Oil and gas leasing mineral rights on 12 parcels in New Mexico totaling more than 1,800 acres will be available Wednesday (April 20) at a federal Bureau of Land Management lease sale in Santa Fe.
The agency said in a news release that the oral auction for oil and gas leases in New Mexico and Oklahoma will be held at the BLM state office building at 301 Dinosaur Trail beginning at 9 a.m.
Parcels will be awarded to qualified bidders offering the highest acceptable bid, according to the news release. The minimum acceptable bid is $2 per acre.
The breakdown by state, according to the news release, is:
- New Mexico â€” 12 parcels totaling 1,876.35 acres
- Oklahoma â€” 3 parcels totaling 169.70 acres
The news release said leases will be awarded for a period of 10 years, or as long thereafter as there is production in paying quantities. The federal government receives 12 1/2 percent royalties on production on those leases. Fifty-two percent of the revenues from federal lease sales is returned to the U.S. government and 48 percent goes to the state where the mineral lease occurs, according to the news release.