ALBUQUERQUE, N.M. — State will receive more than $2.4 million from Wednesday’s quarterly sale of oil and gas leasing mineral rights on federal lands in New Mexico
Bids for 14 parcels in New Mexico brought in more than $5 million at Wednesday’s Bureau of Land Management quarterly oil and gas lease sale held in Santa Fe for parcels in three states, the BLM announced in a news release.
The federal agency said New Mexico will receive $2,437,051 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 brought in $18,639,260 in revenues from the sale of oil and gas leasing minerals rights on 31 parcels in New Mexico, Texas and Oklahoma, according to the news release. The total included bonus bids, administrative fees and first-year rentals.
The news release said bids for 12 parcels in Texas netted more than $11.2 million, while bids for five parcels in Oklahoma brought in more than $2.2 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.
Thursday, 13 January 2011 12:57
Oil and gas leasing mineral rights on 15 parcels in New Mexico totaling more than 7,750 acres will be available Wednesday (Jan. 19) 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.
The breakdown by state, according to the news release, is:
New Mexico — 15 parcels totaling 7,756.33 acres
Texas — 12 parcels totaling 4,076.67 acres
Oklahoma — 5 parcels totaling 535.11 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.