Santa Fe – A quarterly oil and gas lease sale administered by the Bureau of Land Management (BLM) netted over $33 million in revenues today from the sale of 28 federal leases in New Mexico and Oklahoma. The oral auction took place at the BLM’s New Mexico State Office in Santa Fe. A total of 30 bidders registered for the auction.
Bids for 20 parcels in New Mexico brought in over $31.7 million. Bids for eight parcels in Oklahoma brought in over $1.4 million.
The highest bid per acre was $16,500 for a 31-acre parcel in Roger Mills County, Oklahoma, by Chesapeake Exploration, LLC.
The highest bid per parcel was $7.8 million for a 602-acre parcel in Lea County, New Mexico, by Rubicon Oil and Gas, LLC.
Leases are awarded for a period of 10 years and as long thereafter as there is production in paying quantities. The revenue from the sale of federal leases, as well as the 12.5 percent royalties collected from the production of those leases, is shared between the federal government and the states. Fifty-two percent of the revenue generated goes to the federal government and 48% is returned to the state where leasing occurs. New Mexico will receive over $15 million from today’s sale.
Over the past 10 years, New Mexico has received over $4 billion from energy production on BLM-managed federal leases, all of which has been allocated directly to public education.
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 July 18, 2012, at the BLM’s New Mexico State Office, located at 301 Dinosaur Trail, Santa Fe, New Mexico. For information about upcoming lease sales and how to comment on nominated parcels, visitwww.blm.gov/nm/oilandgas.