BLM federal oil and gas lease sale

News
Oct 14, 2011
by WLJ

The Bureau of Land Management (BLM) is offering oil and gas leasing mineral rights on 21 parcels totaling 6,455.67 acres located on federal lands in the states of New Mexico, Oklahoma and Texas. The oral auction will take place on Wednesday, Oct. 19, 2011, at the BLM New Mexico State Office, 301 Dinosaur Trail, Santa Fe, NM.

BLM representatives will be available in the lobby at 8 a.m. to allow each interested party time to obtain a bidding number. The sale will begin promptly at 9 a.m. Only oral bids offered at the sale will be accepted. Parcels will be awarded to qualified bidders offering the highest acceptable bid. The minimum acceptable bid is $2 per acre.

The breakdown by state is as follows:

11 parcels totaling 5,799.65 acres in New Mexico;

8 parcels totaling 532.63 acres in Oklahoma; and

2 parcels totaling 123.39 acres in Texas.

The lease sale notice can be found at http://www.blm. gov/nm/st/en/prog/energy/ oil_and_gas/lease_sale_no tices.html.

Leases are awarded for a period of 10 years and as long thereafter as there is production in paying quantities. The federal government receives 12.5 percent royalties on production from those leases. Fiftytwo percent of the revenues from federal lease sales is returned to the U.S. government and 48 percent goes to the state where the mineral lease occurs. Since 2005, New Mexico has received over $2.7 billion from BLM-managed federal leases. — WLJ

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