State Land Office’s History-Making July Oil and Gas Lease Sale Surpasses $30 Million

SANTA FE, NM – The State Land Office’s July oil and gas lease sale earned more than $30 million – an all-time high for the agency – which means higher than expected distributions to public schools and six other beneficiaries of the leased tracts.

In all, the State Land Office collected $30,035,248, with public schools earning the majority – $23,897,140. In addition to public schools, beneficiaries of the leased acreage and revenues earned include:

· New Mexico Military Institute: $4,494,610

· New Mexico Tech: $250,512

· University of New Mexico: $225,700

· Miners’ Colfax Medical Center: $753,583

· Penitentiary of New Mexico: $150,900

· Improvements to the Rio Grande: $262,802

Fifty-eight bidders from 11 states registered for Tuesday’s sale. Eighteen bid on 82 tracts covering 20,814 acres of State Trust Lands in Chaves, Eddy, Lea and Roosevelt counties. The monthly oil and gas lease sales are held online in sealed and open bidding formats. This month, sealed bids generated $19,392,398 and online bids brought in $10,642,850.

Ameredev II, LLC, of Austin, TX, was the highest sealed bidder, paying $7,360,000, or $23,000 per acre, for 320 acres in Lea County.

OneEnergy Partners, LLC, of Houston, TX, was highest online bidder, paying $6,001,100, or $18,753 per acre, for 320 acres also in Lea County.

The July earnings are also nearly double the agency’s total fiscal year 2018 operating budget of $15.9 million. The State Land Office is a self-funded agency and spends about five cents of every dollar it earns. The remaining revenue is distributed to the beneficiaries.

Public school monies are paid into the state’s General Fund and distributed to each school district as appropriated by the state legislature. The other beneficiaries receive checks monthly directly from the State Land Office.

“The July lease sale revenues far exceeded our expectations and our beneficiaries are thrilled,” said State Land Commissioner Aubrey Dunn. “It was a pleasure to call Major General Jerry Grizzle at the New Mexico Military Institute and let him know he has an extra $4.5 million coming his way. Plus, since we’ve already met our budget we will be able to distribute huge amounts of money to public schools, universities and other Trust beneficiaries we help support.”

“We certainly appreciate the oil and gas lessees and operators in the state of New Mexico,” said Ed Martin, acting assistant commissioner for oil, gas and minerals. “Development of these leases will contribute long-term benefits to the state in terms of increased royalties and severance taxes.”