State Land Office collects $74 million from monthly oil and gas lease sales during the first half of FY 2018

By NM State Land Commissioner

SANTA FE, NM – State Land Commission Aubrey Dunn today announced the State Land Office has collected $74 million from monthly oil and gas lease sales during the first six months of fiscal year 2018 – $56 million more than this time last fiscal year.

“Oil and gas production on State Trust Lands dominates the agency’s business activity and accounts for 92 percent of revenues collected,” said Commissioner Dunn.  “The tremendous influx of exploration and production in the Permian Basin continues to boost earnings and has us on track for a record-breaking year.”

This month, the agency earned more than $1.5 million from the oil and gas lease sale and public schools and the University of New Mexico are the beneficiaries of revenues earned.

Commissioner Dunn offered 16 tracts covering 3,676 acres of State Trust Lands in Chaves, Eddy, Roosevelt and Lea counties.

The monthly lease sales, which are held on the third Tuesday of every month, are held online in sealed and open bidding formats.  This month, 24 bidders from eight states registered. Sealed bids generated $1,334,997 and open bids brought in $182,150 for an average per acre price of $413.

Auburn Operating, of Midland, TX, was the high bidder in both formats, bidding $274,873 for 323 acres in Roosevelt County and $119,100 for 314.25 acres also in Roosevelt County.

Oil and gas lease sale earnings are paid into the Land Maintenance Fund, which covers the State 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 directly to the beneficiaries, with the exception of public school monies which are paid into the state’s General Fund and distributed to each school district as appropriated by the Legislature.

Revenues earned by the respective lease sale beneficiaries are:

Public Schools: $1,192,983

UNM: $324,164