Oil and gas lease sale nets $30M for New Mexico

SANTA FE, N.M. (AP) — The Bureau of Land Management's latest quarterly oil and gas lease sale has netted more than $30 million in competitive bids for parcels in southeastern New Mexico. The federal agency says the parcels up for bid covered more than 2,100 acres in Eddy and Lea counties, which include portions of the Permian Basin. The highest bid per acre was made by Federal Abstract Co. of Santa Fe at $40,001.00. This set an agency record for the highest bid per acre. Leases are awarded for a term of 10 years and as long thereafter as there is production of oil and gas in paying quantities. Officials say each state government receives a 25 percent minimum share of the bonus bid and the royalty revenue from each lease issued in that state.