Today, the Department of the Interior announced that the Bureau of Land Management (BLM) New Mexico State Office has leased 16 parcels covering 7,501.76 acres for a total of $58,260,939 in its quarterly oil and gas lease sale. This amount marks the third highest value for a highest bid per acre for a parcel under BLM. The revenue from these leases will be shared between the federal government and the State of New Mexico.
The lease sale is the first conducted under the One Big Beautiful Bill Act, which adjusted the royalty rate for new federal onshore oil and gas production to a minimum of 12.5%. This change reverses the previous rate of 16.67% set by the Biden administration. The adjustment aims to reduce costs for businesses operating on public lands, thereby encouraging more leasing and drilling activities. It is anticipated that this will enhance domestic energy production and strengthen U.S. energy security.
“This successful lease sale is another strong step toward restoring American Energy Dominance,” stated Secretary of the Interior Doug Burgum. “By reversing burdensome Biden-era royalty hikes, we are unleashing the full potential of our public lands, lowering energy costs for hardworking Americans and strengthening our national and economic security. Under President Trump’s leadership, we are putting energy back in the hands of the American people and securing a brighter, more prosperous future.”
Oil and gas lease sales contribute to domestic energy production and American energy independence while supporting economic and military security. In line with Executive Order 14154, "Unleashing American Energy," BLM's lease sales aim to fulfill U.S. citizens' energy needs and maintain America's status as a global energy leader.
Leasing is an initial step in developing federal oil and gas resources. The BLM ensures compliance with requirements set by the National Environmental Policy Act of 1969 and other relevant legal authorities.
Oil and gas leases are granted for ten years or as long as there is ongoing production in paying quantities. Information on current and upcoming BLM leases can be accessed through the National Fluid Lease Sale System.
BLM conducts its lease sales online via EnergyNet, with results available on their system where interested parties can view sale documents.
