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Wed October 21, 2009
Oil And Gas Leases Net Over $13M
By KRWG News
New Mexico – A quarterly oil and gas lease sale administered by the Bureau of
Land Management netted $13,298,017 in revenues today from the sale of 48
federal leases in New Mexico, Oklahoma, Texas, and Kansas.
The total includes bonus bids, administrative fees and first-year rentals. The oral auction took place at the Courtyard by Marriott in Santa Fe; a total of 31
bidders registered for today's auction.
Bids for 2 parcels in Texas brought in over $9.4 million; bids for 38
parcels in New Mexico brought in over $3.7 million; bids for 7 parcels in
Oklahoma brought in over $69,000; and a single parcel in Kansas sold for
The highest bid per acre for a parcel and the highest overall total per
parcel in today's sale was $7,500 for 1264 acres in Shelby County, Texas,
by Narenta Oil Company of Santa Fe, New Mexico ($9,480,000 total).
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 is returned to the U.S. government and 48
percent goes to the state where the mineral lease occurs. New Mexico will
receive $1,779,712.80 from today's sale.
The Mineral Leasing Act of 1920 and the 1987 Federal Onshore Oil and Gas
Leasing Reform Act authorize leasing of federal oil and gas resources. The
1987 law requires each BLM state office to conduct oil and gas lease sales
on at least a quarterly basis. BLM lease sales are competitive and
conducted by oral bidding.
The next BLM federal oil and gas lease sale is scheduled for Wednesday,
January 20, 2010 at the BLM's new state office building, located at 301
Dinosaur Trail, Santa Fe, New Mexico. Public review and comment on the
parcels nominated for this sale are due October 27, 2009. A complete list
of nominated parcels can be found at: