BLM Oil and Gas Lease Sale Nets over $27 Million from Parcels in Three States
Organization:
BLM Office:
Media Contact:
A quarterly oil and gas lease sale administered by the Bureau of Land Management (BLM) netted $27,242,369 in revenues today from the sale of 43 Federal leases in New Mexico, Oklahoma, and Texas. The total includes bonus bids, administrative fees, and first-year rentals. The oral auction took place at the BLM's New Mexico State Office in Santa Fe. A total of 43 bidders registered for today's auction.Bids for 14 parcels in New Mexico brought in over $23.7 million. Bids for 20 parcels in Oklahoma brought in over $2.8 million. Bids for nine parcels in Texas brought in over $626,000.The highest bid per acre was $7,000 for a 319-acre parcel in Lea County, New Mexico, by National Petroleum Properties of Tarzana, California.The highest bid per parcel was $5,600,000 for an 800-acre parcel in Lea County, New Mexico, by National Petroleum Properties of Tarzana, California.Leases are awarded for a period of 10 years and as long thereafter as there is production in paying quantities. 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 $11,398,272 from today's sale. Over the past 10 years, New Mexico has received over $4 billion from 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 April 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, visit www.blm.gov/nm/oilandgas.
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.