U.S. DEPARTMENT OF THE INTERIOR
BUREAU OF LAND MANAGEMENT NEWS RELEASE
|Release Date: 01/16/13|
BLM Oil and Gas Lease Sale Nets Over $10 Million from Parcels in New Mexico, Texas and Oklahoma
States to share nearly half of sale revenues
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 $10 million in revenues from the sale of 68 Federal leases in New Mexico, Texas, and Oklahoma. The quarterly sale, an oral auction, took place at the BLM’s New Mexico State Office in Santa Fe.
Bids for 14 parcels in New Mexico brought in over $7.6 million. Bids for 49 parcels in Texas brought in more than $2.2 million. Bids for five parcels in Oklahoma brought in almost $200,000. Each state will receive 48 percent of the sales revenue resulting from today’s auction and royalties paid on oil and gas production from those leases.
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 $3,688,906 million from today’s sale, while Oklahoma will receive $95,420 and Texas, $1,065,849.
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.
Today’s auction was the first of 33 oil and gas lease sales BLM is scheduled to hold in 2013 and builds on the 31 onshore oil and gas lease sales held last year, which generated $233 million for American taxpayers. The 2012 sales offered more than 1.4 million acres of public land in 1,707 parcels and reflected a continued increase in the average price paid per acre. The price drillers are willing to pay for onshore parcels has more than tripled in the past three years, compared to the last 25 years. Since 1988, the average price paid per acre was $55, while over the past three years, the average was $210.
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 April 17, 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
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.
|Last updated: 01-17-2013|
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