Home News Local News State gets $15.3 million from oil and gas leases

State gets $15.3 million from oil and gas leases

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Copyright © 2021 Roswell Daily Record

The New Mexico State Land Office collected $15.3 million Wednesday from the November oil and gas lease sale, bringing fiscal-year earnings from monthly lease sales to $72.5 million.

State Land Commissioner Aubrey Dunn offered 26 tracts covering 6,757 acres of state trust lands in Chaves and Lea counties.

This month, 31 bidders from eight states bid on the offered tracts. Sealed bids generated $11,847,261, and open bids brought in $3,484,600 for an average per acre price of $2,269.

Manzano LLC of Roswell was the highest bidder in the sealed format, acquiring three, 320-acre tracts in Lea County for $1,325,000 each. Grey Wolf Oil and Gas of Houston was the highest bidder in the open format, paying $1,000,100 for 320 acres in Lea County.

The monthly lease sales are held online the third Tuesday of each month.

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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 $14,411,012 from the November lease sale. Public buildings will receive $920,850.