BLM to sell oil/gas leases to 46,000 acres in New Mexico and Texas

The Bureau of Land Management (BLM) New Mexico is announcing a two-week public comment period on the environmental analysis for its May 21, 2020 oil and gas lease sale.

There are 102 parcels (46,365.76 acres) of Federal minerals proposed for lease. The parcels are located in Eddy, Lea, Rio Arriba and Chaves counties, New Mexico, and Wise County, Texas. The comment period will run from Jan. 27-Feb. 7, 2020.

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.

“Oil and gas production from public lands is an important economic driver for communities across Texas, New Mexico and the West. Consistent with our mandate to promote sustainable multiple-use activities on BLM-managed lands, we’re proud to offer these parcels for lease at our upcoming May lease sale,” said BLM New Mexico State Office Director Tim Spisak.

The BLM is a key contributor to the Trump Administration’s America-First Energy Plan, an all-of-the-above strategy that includes oil and gas, coal, strategic minerals, and renewable sources such as wind, geothermal, and solar – all of which can be produced on public lands. By statute, the BLM is required to offer quarterly oil and gas lease sales of available Federal lands. These lease sales represent parcels that have been through environmental review and public comment. The BLM issues both competitive and noncompetitive leases for a 10-year period. A lease is a contract to explore and develop any potential oil and gas. A lease may earn an extension if the lessee establishes production; otherwise the lessee pays an annual rental fee.

Source:  Bureau of Land Management