Home News Local News BLM raises more than $18 million from lease sale

BLM raises more than $18 million from lease sale

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The New Mexico division of the U.S. Bureau of Land Management raised $18,394,059 from its quarterly oil and gas lease sale held Nov. 7.

Nearly 50% of the revenue from the sale will go to the states where the oil and gas activity occurs, in this case New Mexico and Oklahoma. The rest will go to the U.S. Treasury.

For this sale, the BLM offered leases on 16 parcels totaling 7,619.46 acres. Fourteen of the parcels were in New Mexico, with two in Oklahoma.

Eight different entities were successful bidders, including Roy G. Barton of Hobbs and the Federal Abstract Co. of Santa Fe, which often buys on behalf of unspecified entities.

The highest bid per acre was $18,501 sold to Federal Abstract for 40 acres in Lea County. The highest bid per parcel was a total of $15,341,534 sold to Chevron USA Inc. for a lease in Eddy County for 1,534 acres.

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The BLM awards oil and gas leases for a term of 10 years and as long thereafter as there is production of oil and gas in paying quantities. If the leases result in producing oil or gas wells, revenue from royalties based on production is also shared with the state.

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