New Mexico – The Bureau of Land Management plans an oil and gas lease sale on federal lands in New Mexico and two other states on Wednesday.
The sale of oil and gas mineral rights will take place at the BLM office in Santa Fe. The minimum bid per acre is $2.
The agency says 32 parcels of federal land totaling just over 12,000 acres in New Mexico, Texas and Oklahoma will be offered.
Leases will be awarded for 10 years or for as long afterward that there is production in paying quantities.
The federal government receives 12-and-a-half percent royalties on production on those leases. Fifty-two percent of the revenues from federal lease sales is returned to the federal government and 48 percent goes to the state where the lease occurs.
Copyright 2011 The Associated Press.