New Mexico’s State Land Office recently held its second-best auction ever of oil and gas leases.
The auction brought in $117 million including one Eddy County tract that sold for $175,000 per acre. Eddy County is in southeast New Mexico and makes up part of the oil-rich Permian Basin.
The previous record was $132,552 per acre. The Santa Fe New Mexican reports that eight of the 11 leases were leased under higher royalty rates.
The state legislature had approved a bill earlier in the year to boost the royalty rate to a maximum 25% for prime tracts.
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