BLM New Mexico Quarterly Oil and Gas Lease Sale Results
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The Bureau of Land Management (BLM) New Mexico received bids of $2, 935,450 for four Federal leases totaling 843 acres during the January 25, 2017 oil and gas lease sale. Leases for these parcels will not be issued to the successful bidders until protests received on them are considered by the BLM.
This quarterly oil and gas lease sale was conducted utilizing the EnergyNet internet-based auction system, under authority granted the BLM by Congress in the 2015 National Defense Authorization Act. The four parcels were available for bidding for three hours during the sale. Fifteen bidders registered for this auction. Public monitoring of the lease sale was available on the website.
BLM oil and gas leases are awarded for a period of 10 years and for as long thereafter as there is production in paying quantities. Fifty-two percent of the revenue generated from this sale goes to the Federal Government and 48 percent to the state where leasing occurs. If all four leases are issued, the State of New Mexico will receive about $1,409,016. In addition, 12.5 percent royalties collected from a producing BLM-issued lease are also shared between the state and Federal government.
All oil and gas leases are issued with terms and stipulations designed to protect the environment, as well as historic and cultural resources. Once an operator proposes exploration or development on a BLM-issued lease, further site-specific environmental analysis is conducted to determine the need for additional mitigation measures before drilling can begin.
For information about upcoming lease sales, visit:
https://www.blm.gov/programs/energy-and-minerals/oil-and-gas/leasing/regional-lease-sales/new-mexico.
The BLM manages more than 245 million acres of public land located primarily in 12 western states, including Alaska, on behalf of the American people. The BLM also administers 700 million acres of sub-surface mineral estate throughout the nation. Our mission is to sustain the health, diversity, and productivity of America’s public lands for the use and enjoyment of present and future generations.