Government plans lease auction of federal lands in New Mexico and Texas

 

The Bureau of Land Management plans to go ahead with the May sale of oil and gas leases on government land in Texas and New Mexico.

More than 45,445 acres making up 95 parcels will be involved in the quarterly oil and gas lease sale.

The proposed parcels are located in Chaves, Eddy and Lea counties in New Mexico; and Wise County in Texas.  The three counties in New Mexico are in the southeast corner of the state where the Permian Basin is located.

Wise County in Texas is located in the northern part of the state in the Barnett Shale play.

The lease sale is scheduled to occur online at www.energynet on May 20-21, 2020.  The protest period begins March 23 and ends April 1, 2020.

Leasing is the first step in the process to develop Federal oil and gas resources. Before development operations can begin, an operator must submit an application for permit to drill (APD) detailing development plans. The BLM reviews APDs, posts them for public review, and coordinates with state partners and stakeholders.

Revenues from onshore oil and gas production on Federal lands directly fund the U.S. Treasury and state budgets, and support public education, infrastructure improvements, and other state-determined priorities. Forty-eight percent of lease sale revenue goes to the state while the rest goes to the U.S. Treasury. The state also receives half of the revenue from royalties if oil and gas are developed on the lease.

Source: BLM

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