SANTA FE, N.M. (AP) — The latest quarterly oil and gas lease sale for dozens of parcels in New Mexico, Oklahoma and Texas netted more than $8.2 million, federal land managers said.
The Bureau of Land Management reported Friday that nearly half of the revenues earned from this week’s sale will go to the states where the leases are located. The funds are often used for infrastructure projects, law enforcement and other government programs.
In all, 113 parcels totaling more than 76 square miles (197 square kilometers) were offered. The highest bid per acre topped $21,500 with the lease of 120 acres in southeastern New Mexico to Santa Fe-based Federal Abstract Company. The same parcel also received the highest bid per parcel with a total of more than $2.5 million.
The Bureau of Land Management awards oil and gas leases for a 10-year term and as long thereafter as there is production of oil and gas in paying quantities. If the leases result in producing oil or gas wells, revenue from royalties based on production is also shared with the state.