New Mexico Oil And Gas Leases Net $22+ Million
Santa Fe, NM–As part of President Obama’s all-of-the-above strategy to continue to expand safe and responsible domestic energy production, a Bureau of Land Management (BLM) oil and gas lease auction today netted more than $22 million in revenues from the sale of 64 Federal leases in New Mexico, Oklahoma, Texas, and Kansas. The quarterly sale, an oral auction, took place at the BLM’s New Mexico State Office in Santa Fe.
BLM oil and gas leases are awarded for a period of 10 years and for as long thereafter as there is production in paying quantities. The revenue from the sale of Federal leases, as well as the 12.5 percent royalties collected from the production of those leases, is shared between the Federal Government and the states. Fifty-two percent of the revenue generated goes to the Federal Government and 48 percent to the state where leasing occurs. New Mexico will receive $10.4 million from today’s sale, while Oklahoma will receive $91,392, and Texas, $61,116.
Over the past 10 years, New Mexico has received more than $4 billion from energy production on BLM-managed Federal leases, all of which has been allocated directly to public education.
The Mineral Leasing Act of 1920 and the 1987 Federal Onshore Oil and Gas Leasing Reform Act authorize leasing of Federal oil and gas resources. The 1987 law requires each BLM state office to conduct oil and gas lease sales on at least a quarterly basis. BLM lease sales are competitive and conducted by oral bidding.
Under President Obama’s leadership, domestic oil and gas production has grown each year he has been in office, with domestic oil production in 2011 higher than any time in nearly a decade and natural gas production at its highest level ever. Foreign oil imports now account for less than 50 percent of the oil consumed in America – the lowest level since 1995. Revenues from domestic oil and gas production on public lands and Federal offshore areas, totaling more than $15 billion this year, are shared among federal, state and tribal governments and represent one of the largest nontax sources of U.S. government funds.
The next BLM Federal oil and gas lease sale is scheduled for October 16 , 2013, at the BLM’s New Mexico State Office, located at 301 Dinosaur Trail, Santa Fe, New Mexico. For information about upcoming lease sales and how to comment on nominated parcels, visit: www.blm.gov/nm/oilandgas