ALBUQUERQUE, N.M. — Bids for 11 parcels in New Mexico brought in more than $3.8 million at Wednesday’s Bureau of Land Management quarterly oil and gas lease sale held in Santa Fe, the BLM announced in a news release.
The federal agency said New Mexico will receive $1,835,428 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.
Wednesday’s sale netted $5,238,381 in revenues from the sale of oil and gas leasing minerals rights on 18 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 seven parcels in Oklahoma brought in more than $1.4 million.
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.
Oct. 17, 2011 — BLM Oil and Gas Lease Sale Will Be Held Wednesday in Santa Fe
By ABQnews Staff
Oil and gas leasing mineral rights on 11 parcels in New Mexico totaling nearly 5,800 acres will be available Wednesday 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, Texas 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:
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 from the 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.