A quarterly oil and gas lease sale administered by the Bureau of Land Management (BLM) netted over $24 million in revenues today from the sale of 37 federal leases in New Mexico, Texas and Oklahoma. The oral auction took place at the BLM's New Mexico State Office in Santa Fe. A total of 38 bidders registered for today's auction. Bids for 28 parcels in New Mexico brought in over $23 million. Bids for seven parcels in Texas brought in over $500,000. Bids for two parcels in Oklahoma brought in over $458,000. Leases are awarded for a period of 10 years and 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% is returned to the state where leasing occurs. New Mexico will receive over $11 million from today's sale. Over the past 10 years, New Mexico has received over $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. The next BLM federal oil and gas lease sale is scheduled for Jan. 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.
Source: U.S. Department of the Interior, Bureau of Land Management
