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NM Land Commissioner Wants Higher Royalty Cap For Oil, Natural Gas Production

Stephanie Garcia Richard

 

SANTA FE, N.M. (AP) — New Mexico Land Commissioner Stephanie Garcia Richard says she is working on a bill with state lawmakers to allow higher royalty rates for oil and natural gas production on state trust land.

Garcia Richards said Tuesday that she wants New Mexico to raise its royalty cap to 25 percent on future leases to match Texas. The commissioner currently can charge up to 20 percent on oil and gas production in some areas.

The State Land Office oversees energy leases across some 14,000 square miles (36,000 square kilometers) of state trust land and additional underground resources to help fund schools, universities and hospitals.

A 2017 bill to raise the royalty cap and levy charges on vented or flared gas never made it to a full state House or Senate vote.