Nick Snow
Washington Correspondent
WASHINGTON, DC, Jan. 30 -- Nearly $12.6 million in revenues were generated as the US Bureau of Land Management's New Mexico state office sold 100 federal leases in New Mexico, Kansas, Oklahoma, and Texas Jan. 17.
The total included bonus bids, administrative fees, and first-year rentals. It included bonus bids totaling $6.7 million for 50 parcels in New Mexico, $1.6 million for 24 parcels in Texas, $4.2 million for 21 parcels in Oklahoma, and $2,200 for 5 parcels in Kansas.
A similar lease sale on Jan. 18, 2006, produced nearly $12.3 million in revenues from the sale of 68 leases in the four states.
BLM's New Mexico office holds oil and gas lease sales every 3 months in an oral auction. A total of 47 bidders registered for the latest sale and submitted bids on 100 of 110 parcels offered.
Daniel E. Gonzales of Santa Fe submitted both the highest bid per acre ($3,300) and the highest overall total ($1.44 million) for 480 acres in Santa Fe.
Leases are for 10 years and as long thereafter as there is production in paying quantities, according to BLM's New Mexico office.
It said the federal government receives a 12.5% royalty from production on the leases and returns half to the state in which the lease is located. New Mexico is due to receive $3.3 million from the latest sale and received more than $550 million from federal oil and gas lease sales during fiscal 2006.
Contact Nick Snow at [email protected].
