BLM New Mexico Leases Seven Parcels for Over $20 Million in Quarterly Oil and Gas Auction

The Bureau of Land Management’s New Mexico State Office leased seven parcels totaling 1,317 acres for $20.67 million in its quarterly oil and gas sale, according to a Feb. 21 press release. The auction proceeds will be shared between the federal government and New Mexico.

BLM New Mexico conducts oil and gas lease sales quarterly in accordance with the Mineral Leasing Act and Mineral Leasing Act for Acquired Lands, as amended, when eligible lands are available for lease. Oil and gas lease sales assist with domestic energy production in the U.S. and energy security and independence, whilst at the same time contributing to the nation’s economic and military security. Moreover, the BLM’s lease sales are in line with the most recent Executive Order issued by U.S. President Donald Trump “Unleashing American Energy.”

President Trump on Jan. 20 declared a national energy emergency that seeks to prioritize domestic fossil fuel production and streamline regulatory barriers to address rising energy demands and reduce consumer costs. The move emphasizes the urgent need to address “a precariously inadequate and intermittent energy supply” and an “increasingly unreliable grid.” The order warns that without immediate and decisive action, the situation will worsen in the near future due to increasing energy demand and natural resources driven by the next generation of technology.

Leasing is usually the first action in the procedure to develop and establish federal oil and gas resources. The bureau, as part of its process, ensures oil and gas developments fulfil the necessities laid out by the National Environmental Policy Act of 1969 and other applicable legal authorities. Oil and gas leases are granted for a period of 10 years and as long thereafter as there is production of oil and gas in paying volumes. In return, the federal government collects a sum of 16.67 percent of the total production value.