BLM Oil and Gas Lease Sale Nets Over $83 Million from Parcels in Chaves, Eddy, Guadalupe, and Lea Counties
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As part of President Obama's all-of-the-above strategy to continue to expand safe and responsible domestic energy production, a Bureau of Land Management (BLM) oil and gas lease auction today netted over $83 million in revenues from the sale of 31 Federal leases totaling 13,282.01 acres in the Chaves, Eddy, Guadalupe, and Lea Counties. The highest bid per acre for a 640-acre parcel was $21,000 in Lea County. 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. The revenue from the sale of these 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 State of New Mexico. Fifty-two percent of the revenue generated goes to the Federal Government and 48 percent to the state where leasing occurs. The sale netted $83,080,090. The State of New Mexico will receive about $39,878,443. 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 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.