Bids for 31 parcels in New Mexico brought in more than $5.8 million at the Bureau of Land Management’s quarterly oil and gas lease sale in Santa Fe on Wednesday, the agency said.
The four-state auction of oil and gas leasing mineral rights netted a total $8,217,857.50 from the sale of 43 federal leases, according to a news release from the BLM. In addition to New Mexico, bids for nine parcels in Texas brought in more than $1.8 million, while bids for two parcels in Oklahoma sold for $558,800 and one parcel in Kansas brought in $2,255.
Leases are awarded for a period of 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. 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. New Mexico will receive $2,784,688.80 from Wednesday’s sale.
Tuesday, 19 October 2010 12:05
The Bureau of Land Management will offer oil and gas leasing mineral rights on 33 parcels totaling 8,279.92 acres on federal lands in New Mexico at an oral auction Wednesday (Oct. 20) in Santa Fe, the agency announced.
The BLM said in a news release the auction will be held at the new BLM State Office Building at 301 Dinosaur Trail. BLM representatives will be available in the lobby at 8 a.m. to allow each interested party time to obtain a bidding number, and the sale will begin at 9 a.m., according to the news release.
The lease sale also will involve nine parcels totaling 4,088.61 acres in Texas, two parcels totaling 215.21 acres in Oklahoma and one parcel of 54.38 acres in Kansas, the news release said.
Leases will be awarded for 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. The state in which the leasing occurs receives 48 percent of royalties collected, according to the news release.