Oil and gas companies drilling on state land in New Mexico, including the Permian Basin, will have to pay higher royalties after Gov. Michelle Lujan Grisham recently signed a bill into law.
The new law raises the previous oil an gas royalty rate cap from 20% to 25% on State Trust land in the Permian, the region containing the most valuable mineral resources in the state, according to the New Mexico State Land office. The increased rate is expected to generate up to $50 million a year in Land Office revenue to support public schools and hospitals.
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