BLM: Thousands of acres of New Mexico land leased to oil and gas companies
Adrian Hedden
Oil and gas leasing of federal land in southeast New Mexico continued with a June lease sale held by the Bureau of Land Management which resulted in about $2.9 million in revenue.
About 39,303 acres were offered in the sale on June 20 on 50 parcels in New Mexico, Kansas and Oklahoma.
About half of the proceeds will go back to the states with the rest being added to the U.S. Treasury.
The highest bid was by Cimarex Energy for $30,021 per acre for 40 acres in southern Eddy County, totaling in $1.2 million for the entire parcel near the Texas state Line, east of U.S. Highway 285.
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Other parcels leased in Eddy County included 250 acres near U.S. Highway 62/180 at the border to Texas, and another parcel of 640 acres slightly north from the state line.
Two more parcels of 160 acres each were leased in southeast Chaves County, and two more totaling in 320 acres were leased in Rio Arriba County.
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About 34,172 acres were leased in Sandoval County on 34 parcels – the most of any county included in the lease sale.
Leases are sold for terms of at least 10 years and then as long as there is production of oil and gas on the land.
More:Study: New Mexico loses on federal oil and gas leases, industry calls for quicker approvals
Revenue from royalties collected if the leases result in producing oil and gas wells is also shared with the host state.
“The BLM is a key contributor to the Trump Administration's America First Energy Plan, which is an all-of-the-above plan that includes oil and gas, coal, strategic minerals, and renewable sources such as wind, geothermal, and solar, all of which can be developed on public lands,” read a BLM news release announcing the sale’s results.
In fiscal year 2017, activities on BLM-leased land generated about $96 billion in sales of goods and services, the release read, and supported more than 486,000 jobs.
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Trump orders faster permitting for American mineral production
President Donald Trump hoped to continue the production and making American independent of foreign energy sources.
The Trump’s administration released a new strategy on June 4, aiming to support domestic mineral development by speeding up permitting and providing better information to regulators and producers.
The directive," A Federal Strategy to Ensure a Reliable Supply of Critical Minerals" directed the U.S. Department of the Interior (DOI) – which oversees the BLM – to located domestic mineral supplies, ensure information is available to support production, and expedite extraction projects.
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“Thanks to President Trump’s leadership, today’s federal strategy lays out a blueprint for America to once again be a leader in the critical minerals sector,” said U.S. Secretary of the Interior David Bernhardt in a statement the day the strategy was released.
The BLM was ordered to enact a “comprehensive review” of its permitting and land classifications, along with management plans, intended to increase mineral extraction on federal land.
“Prolonged Federal permitting and land management policies have inhibited access to and the development of domestic critical minerals, which has contributed to an increased reliance on foreign sources of minerals,” read a BLM news release.
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The United States Geological Survey, which announced the discovery of about 46 billion barrels of oil and 281 trillion cubic feet of natural gas in the Permian Basin last year, was tasked with completing a nationwide program to map surface and subsurface minerals, in hopes of finding more resources for the U.S.
“As with our energy security, the Trump Administration is dedicated to ensuring that we are never held hostage to foreign powers for the natural resources critical to our national security and economic growth,” Bernhardt said.
“The Department will work expeditiously to implement the President's strategy from streamlining the permitting process to locating domestic supplies of minerals.”
More oil and gas news:
- How much does oil and gas give to your schools? Data shows boom towns get less than metros
- New Mexico Governor Michelle Lujan Grisham vows to collaborate with oil and gas during boom
- Devon Energy bringing office to Hobbs, New Mexico second in oil and gas rig count
- Oil and gas industry continues to respond to climate, pollution concerns
- New Mexico cracking down on oil and gas methane waste, Heinrich and Udall call for action
- Data: Venting and flaring at 'all-time high' in Permian basin as oil and gas booms
Adrian Hedden can be reached at 575-628-5516, achedden@currentargus.com or @AdrianHedden on Twitter.