U.S. Interior Department’s New Mexico Oil, Gas Lease Sale Nets $8.3 Million

The Bureau of Land Management’s quarterly oil and gas lease sale in New Mexico generated net proceeds of $8.28 million, according to an Aug. 28 press release.

Nearly half the revenue from the sale is allotted to the states where the oil and gas activity takes place namely, New Mexico, Oklahoma and Texas. The remainder goes to the U.S. Treasury. The bureau offers leases for a 10-year term and thereafter until there is adequate production in paying quantities. States also have a share in the revenues from royalties based on oil and gas production.

The sale held Aug. 26-27 offered leases on 113 parcels totaling about 48,776 acres across the three states. The parcels are located in Chaves, Eddy, and Lea counties in New Mexico; Dewey, Custer and Ellis counties in Oklahoma; and Wise, Washington, Denton, and Lee counties in Texas.