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State Land Office News
SANTA FE, NM – The State Land Office this month collected $654,448 from the June oil and gas lease sale bringing fiscal year earnings from the monthly lease sales to more than $65 million. Comparatively, fiscal year 2016 earnings from oil and gas lease sales totaled $36 million.
This month, State Land Commissioner Aubrey Dunn offered 20 tracts covering 5,721 acres of State Trust Lands. Two tracts were located in Lea County and 18 in Otero County.
Manzano LLC, of Roswell, and Abo Empire LLC, of Artesia, were the winning bidders of the Lea County tracts. The Otero County tracts were withdrawn.
“The State Land Office has exceeded its budget projections for the fiscal year which gave us an opportunity to use this sale to gauge industry interest in other areas of the state,” said Commissioner Dunn. “Clearly, industry remains focused in the Permian Basin.”
Oil and gas lease sale earnings are paid into the Land Maintenance Fund, which covers the Land Office’s operating expenses. The agency is self-funded and spends about five cents of every dollar it earns. The remaining revenue is distributed to the beneficiaries.
Public Schools are the sole beneficiary of June’s lease sale revenues. Public School monies are paid into the state’s General Fund and distributed to each school district as appropriated by the state legislature.
Oil, gas, and mineral production, ranching and farming, and commercial development on State Trust Lands support public schools, seven universities, New Mexico Military Institute, New Mexico School for the Deaf, New Mexico School for the Blind and Visually Impaired, three hospitals, correctional facilities, water conservation projects, and public building construction and repair. In fiscal year 2016, the State Land Office collected $497 million from lease payments, oil and gas lease sale earnings, rights-of-way, interest, fees and royalties.
