Home News Local News BLM lease sale earns more than $39 million

BLM lease sale earns more than $39 million


Copyright © 2021 Roswell Daily Record

The U.S. Bureau of Land Management of New Mexico earned about $39.33 million from a quarterly online oil and gas lease sale held Dec. 3.

A BLM news release indicated that the sale involved 107 parcels totaling about 86,814 acres in New Mexico, Oklahoma and Texas.

The highest bid per acre was $35,003 sold to Reagan Smith Energy Solutions Inc. in Lea County for 40 acres. The highest bid per parcel was a total of $2.88 million sold to Flat Creek Resources LLC in Eddy County for 160 acres.

Fifty percent of the revenue from lease sales goes to the state where the oil and gas activity is occurring, while the rest goes to the U.S. Treasury. If the leases result in producing oil or gas wells, revenue from royalties based on production are also shared with the state. The BLM awards oil and gas leases for a term of 10 years, with extension of terms possible if the wells are still producing paying quantities.

More information about the sale is available on the BLM website, blm.gov.

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