Oil and gas leases sold today at the Bureau of Land Management (BLM) competitive auction in Roswell, N.M., shattered previous records, garnering a record-breaking $145.6 million in total receipts and setting new highs for a single parcel, bid per acre, and average bid per acre.
Today's auction of 36 Federal leases covering 13, 876 acres in southeastern New Mexico's Lea and Eddy Counties in the BLM Pecos District Office netted more than $145.6 million in total revenues, including rental and administrative fees and averaged a record-breaking $10,489 per acre.
One parcel broke total bid per parcel and bid per acre records. Energen Corporation of Birmingham, Ala., set the new records—bidding $35,500 an acre for a total of $77.2 million on parcel number 15, which encompasses 2,160 acres in Lea County. Today's high bid per acre tops the previous mark of $34,000 set in 2014 at a BLM-Montana auction, while today's total bid per parcel mark shatters the previous high of $27.9 million set in 2004 at another BLM-New Mexico sale.
The record revenues from today's sale of Federal oil and gas leases, as well as the 12.5 percent royalties collected from any future production on those leases, is shared between the Federal Government and the State of New Mexico. Fifty-two percent of the revenue generated goes to the Federal treasury and 48 percent to the state. The State of New Mexico will receive approximately $69.9 million from today's auction.
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. All leases are issued with conditions on oil and gas activities to protect the environment; these can include limits on when drilling can occur or restrictions on surface occupancy. Once an operator proposes exploration or development on a BLM-issued lease, further environmental analysis under the National Environmental Policy Act is conducted to determine the site-specific need for various types of impact-limiting or mitigation measures. In addition, many operators routinely use practices, such as remotely monitoring producing wells, to minimize surface impact.
For information about upcoming lease sales, visit: www.blm.gov/nm/oilandgas.
The BLM manages more than 245 million acres of public land, the most of any Federal agency. This land, known as the National System of Public Lands, is primarily located in 12 Western states, including Alaska. The BLM also administers 700 million acres of sub-surface mineral estate throughout the nation. The BLM's mission is to manage and conserve the public lands for the use and enjoyment of present and future generations under our mandate of multiple-use and sustained yield. In Fiscal Year 2014, the BLM generated $5.2 billion in receipts from public lands.