Home News Local News Roswell company among winning bidders in $7.9 million lease sale

Roswell company among winning bidders in $7.9 million lease sale

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A Roswell company submitted winning bids at a recent New Mexico State Land Office oil and gas lease sale, which netted in total more than $7.9 million from 30 bidders.

The money will benefit public schools, New Mexico Military Institute and water reservoirs. The Oct. 19 sale involved 23 tracts covering 6,877 acres of state trust lands in Chaves, Eddy, Lea and Roosevelt counties.

The monthly lease sales, held on the third Tuesday of each month, are held online in sealed and open bidding formats. This month 30 bidders from seven states bid on the offered tracts. Sealed bids generated $5,719,062 and open bids brought in $2,192,250.

Estacado Land Services LLC of Roswell was the winning bidder in both sealed and open formats, paying $1,069,946 for a 314.69-acre tract and $1,095,100 for a 320-acre tract, both in Lea County.

“Business is booming in the Permian Basin and, fortunately, for public education State Trust Lands lie in the path of production,” said Commissioner of Public Lands Aubrey Dunn. “So far this fiscal year, we’ve earned nearly $60 million just from lease sales, and public schools’ share is more than $43 million, which will pay more teachers, buy more books, and build more schools.”

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Oil and gas lease sale earnings are paid into the Land Maintenance Fund, which covers the State Land Office’s operating expenses. The agency is self-funded and spends about five cents of every dollar it earns. The remaining revenue is distributed directly to the beneficiaries, with the exception of public school monies which are paid into the state’s General Fund and distributed to each school district as appropriated by the Legislature.

Public schools will receive $5,808,391 from the Oct. 19 lease sales, while NMMI will get $1,941,120 and water reservoirs will be given $161,801.

In the case of water reservoirs, the money goes to the Irrigation Works Construction Fund and is appropriated by the New Mexico Legislature to pay for dams, water rights acquisition and for other purposes relating to the conservation of New Mexico’s water resources.

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