Regional
10:35 am
Mon April 19, 2010

BLM Holding Oil/Gas Leases

New Mexico – The U.S. Bureau of Land Management plans to offer oil and gas leasing on 30 parcels of federal land in New Mexico, Oklahoma, Texas and Kansas.

The oral auction is set for Wednesday at New Mexico's BLM state offices in Santa Fe.

The minimum bid is $2 per acre.

Leases will be awarded for 10 years, or as long after that as production continues in paying quantities.

The federal government receives 12.5 percent royalties on production on the leases, while the state where the lease is located receives 48 percent of royalties collected.

Leases are being offered on a total of 14,755 acres.

Most of the land ? 8,772 acres ? is in New Mexico, followed by Texas with 5,770 acres.

Copyright 2010 The Associated Press.