SANTA FE — In keeping with the administration’s goals of promoting America’s energy independence, the Bureau of Land Management New Mexico quarterly oil and gas lease sale resulted in $39,327,344 in competitive bids for 86,814 acres.
For this sale, the BLM offered 107 parcels in New Mexico, Oklahoma, and Texas. The highest bid per acre was $35,003 sold to Reagan Smith Energy Solutions Inc.in Lea County, New Mexico for 40 acres. The highest bid per parcel was a total of $2,880,000 sold to Flat Creek Resources LLC, in Eddy County NM for 160 acres.
Fifty percent of the revenue from lease sales goes to the state where the oil and gas activity is occurring, while the rest goes to the U.S. Treasury. If the leases result in producing oil or gas wells, revenue from royalties based on production are also shared with the state. The BLM awards oil and gas leases for a term of 10 years and as long thereafter as there is production of oil and gas in paying quantities.
The BLM is a key contributor to the Trump Administration’s America First Energy Plan, which is an all-of-the-above plan that includes oil and gas, coal, strategic minerals, and renewable sources such as wind, geothermal, and solar – all of which can be developed on public lands.
The BLM’s policy is to promote oil and gas development if it meets the guidelines and regulations set forth by the National Environmental Policy Act of 1969 and other subsequent laws and policies passed by the U.S. Congress. The sales are also in keeping with the America First Energy Plan, which includes development of fossil fuels and coal, as well as renewable energy.
The BLM manages more than 245 million acres of public land located primarily in 12 Western states, including Alaska. The BLM also administers 700 million acres of sub-surface mineral estate throughout the nation. The agency’s mission is to sustain the health, diversity, and productivity of America’s public lands for the use and enjoyment of present and future generations. Diverse activities authorized on these lands generated $96 billion in sales of goods and services throughout the American economy in fiscal year 2017. These activities supported more than 468,000 jobs.