The Bureau of Land Management (BLM) New Mexico State Office has successfully auctioned seven parcels, encompassing 1,317 acres, in its recent quarterly oil and gas lease sale, resulting in a total of US$20.67 million in receipts.
Proceeds from the combined bonus bids and rentals will be divided between the federal government and the state of New Mexico, providing financial support for both.
According to the BLM, these oil and gas lease sales are crucial for bolstering domestic energy production, strengthening US energy independence, and contributing to the nation’s economic and military security.
The sales align with Executive Order 14154, also known as Unleashing American Energy, and will aid in meeting the energy demands of US citizens while maintaining the nation’s position as a leading global energy power.
Leasing is the first step in the process of developing federal oil and gas resources.
The BLM is responsible for ensuring that oil and gas development adheres to the National Environmental Policy Act of 1969 and other applicable legal frameworks.
These regulations are designed to protect the environment while enabling resource development.
Oil and gas leases are valid for a term of 10 years upon award and can be extended if oil and gas production continues in paying quantities.
The US federal government receives a royalty of 16.67 per cent of the value of the oil and gas produced.
The BLM conducts its lease sales online through EnergyNet, a well-established platform for these transactions.
The BLM manages over 245 million acres of public land, primarily in 12 western states, including Alaska.
Additionally, the BLM oversees 700 million acres of sub-surface mineral estate nationwide.
