Rio Grande Gorge, New Mexico
BLM
U.S. DEPARTMENT OF THE INTERIOR
BUREAU OF LAND MANAGEMENT
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New Mexico
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Oil and Gas Leasing
Frequently Asked Questions

How soon will my Expression of Interest (EOI) come up on a sale?If the minerals are BLM public domain lands it takes approximately 4-6 months to appear on a sale. This is longer for lands with different surface managing agencies.
  
Why does it take so long?BLM works anywhere from 4 to 6 months in advance of a sale. We stop accepting Expression of Interests (EOI) for inclusion in a sale approximately 17 weeks before the sale. EOI's filed after that date are moved into the next sale. We are also required (43 CFR 3120.4-2) to post the Notice of Competitive Sale and have the plats notated 45 days prior to the sale. But we do our best to get your nomination on the next available sale that we are currently working on.
  
What is the difference between an EOI and a Presale Noncompetitive Offer?An EOI is an informal nomination for lands to appear on a competitive oil and gas auction. A presale noncompetitive offer is a formal nomination in which advanced rental (1.50 per acre) is paid along with a filing fee ($400). If no bid is received at the sale, the lease issues to the applicant for the $1.50 an acre rental. At the present time, we are able to work EOI's and Presale's within the same timeframes. However, in situations where time is critical the Presale's will take priority.
  
What is the primary term on a federal oil and gas lease?Competitive and Noncompetitive leases have a primary term of 10 years.
  
What is the effective date of my lease?The effective date of a lease is the first day of the month after signature by the Authorized Officer.
  
After the Oil and Gas Auction, when I receive my lease, do I have to sign the back page of the lease form?No. Your signature on the bid form at the sale signifies your acceptance of the lease terms on the back of the lease.
  
When is my rental due?Rental is due to the Minerals Management Service by the anniversary date which is the effective date of the lease. Rental is $1.50 an acre the first 5 years and increases the sixth year to $2.00 for the remainder of the lease term.
  
What are the filing fees associated with oil and gas leases?The fees for filing a Noncompetitive offer are a $400 filing fee and the rental of $1.50 an acre (remember to round up your acreage). If you are filing an Assignment of Record Title or Transfer of Operating Rights, there is an $90 filing fee for each lease you are filing on and a $10 filing fee on Overriding Royalty assignments.
  
What form do I use for transfers?Use a June 1988 or later edition. For Record Title Interest use Form 3000-3. For Operating Rights/Overriding Royalties use Form 3000-3a.
  
Can I copy the official form?Yes. Copies must be EXACT reproductions of the official form. Tear off the bottom directions; reproduce head to foot.
  
Can I use computer generated forms for transfers?Yes. However, the New Mexico State Office will not review such formats for consistency with current Bureau forms. All parties will be bound by the language of the official form.
  
How do I file a mass assignment?

 

Use the current form. You must have 3 originally executed copies (both transferor and transferee sign 3 copies). Attach an exhibit to each original copy showing serials numbers, type and interest conveyed, and a description of the lands. We need one reproduced copy of the form and the appropriate page of the exhibit for each lease. There is a nonrefundable $90 filing fee per instrument per lease. For administrative convenience, please submit only 25 leases per mass along with separate checks for each mass.