Democrats in New Mexico who are critical of the oil and gas industry have passed legislation to force companies to pay higher royalty rates on state land leasses.
A bill to do such won approval over the weekend on a 39-28 vote as one sponsor said the state has a duty to maximize profits from oil and gas leases to benefit schools, reported the New Mexico Political Report.
As explained to the legislature, the bill would most affect the Permian Basin region of New Mexico but not the San Juan Basin in the northwest. The existing cap is 20% for the state but the bill would raise it to 25%.
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