Minimum acceptable bid is $2 per acre, leases are awarded for 10 years
The New Mexico Bureau of Land Management’s oil and gas lease sale originally set for July 20 has been rescheduled to Sept. 1 in order to ensure adequate public notice.
The location of the sale will remain in Roswell, New Mexico. A total of 36 parcels will be offered containing 13,876 subsurface acres of federal minerals – 6 parcels in Eddy County for 1,232 acres and 30 parcels in Lea County for 12,644 acres.
The parcels to be considered in the sale are located in Southeast New Mexico and the Roswell location will allow the public in the area to have the opportunity to observe the process, the BLM said in a press release.
The oral auction will take place at the Roswell Convention and Civic Center, 912 North Main Street, Roswell, New Mexico. The sale will begin promptly at 9 a.m.
Only oral bids offered at the sale will be accepted.
Parcels will be awarded to qualified bidders offering the highest acceptable bid.
The minimum acceptable bid is $2 per acre.
Leases are awarded for a period of 10 years, so long as oil and gas is being produced in paying quantities from the lease.
The revenue from the sale of Federal leases, as well as any royalties collected from the production of those leases, is shared between the Federal Government and the State in which the lease is located – fifty-two per cent goes to the Federal Treasury and 48 per cent is returned to the state.
The BLM manages more than 245 million acres of public land, the most of any Federal agency. This land, known as the National System of Public Lands, is primarily located in 12 Western states, including Alaska. The BLM also administers 700 million acres of sub-surface mineral estate throughout the nation.
