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Manzano, Abo Empire win state land leases

June 23, 2017 • Local News

SANTA FE — A Roswell oil and gas company and an Artesia firm were the winning bidders in the June oil and gas lease sale conducted by the State Land Office.
This month, State Land Commissioner Aubrey Dunn offered 20 tracts, covering 5,721 acres of state trust lands. Two tracts were located in Lea County and 18 were in Otero County.
[auth] Manzano LLC of Roswell and Abo Empire LLC of Artesia were the winning bidders of the Lea County tracts. The Otero County tracts were withdrawn.
The lease sale conducted this week collected $654,448, bringing fiscal year earnings from the State Land Office monthly lease sales to more than $65 million.
Comparatively, fiscal year 2016 earnings from oil and gas lease sales totaled $36 million.
“The State Land Office has exceeded its budget projections for the fiscal year, which gave us an opportunity to use this sale to gauge industry interest in other areas of the state,” Dunn said in a news release. “Clearly, industry remains focused in the Permian Basin.”
Oil and gas lease sale earnings are paid into the Land Maintenance Fund, which covers the Land Office’s operating expenses. The agency is self-funded and spends about 5 cents of every dollar it earns. The remaining revenue is distributed to the beneficiaries.
Public schools are the sole beneficiary of June’s lease sale revenues. Public school monies are paid into the state’s general fund and distributed to each school district, as appropriated by the state Legislature.

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