BLM Oil and Gas Lease Sale Nets Over $28.5 Million from Parcels in New Mexico and Arkansas
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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 $28.5 million in revenues from the sale of 16 Federal leases in the States of New Mexico and Arkansas.BLM oil and gas leases have a primary term of 10 years and for as long thereafter as there is production in paying quantities. The revenue from the sale of these Federal leases, as well as the 12.5 percent royalties collected from the production of those leases, is shared between the Federal Treasury and the State in which the lease is located. 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 $13,692,024.00 million on 14 Federal leases totaling 5,029.94 acres from today's sale, while Arkansas will receive $134.40 on two Federal leases totaling 136.86 acres.Over the past 10 years, the State of New Mexico has received $4.3 billion from energy production on BLM-managed Federal leases.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. BLM lease sales are competitive and conducted by oral bidding.For information about upcoming lease sales, visit: www.blm.gov/nm/oilandgas.
The BLM manages more than 245 million acres of public land located primarily in 12 western states, including Alaska, on behalf of the American people. The BLM also administers 700 million acres of sub-surface mineral estate throughout the nation. Our mission is to sustain the health, diversity, and productivity of America’s public lands for the use and enjoyment of present and future generations.