Oil and gas lease sale nets almost $8M in southeast New Mexico

Nov 01, 2017

rigAdrian C. Hedden | Carlsbad Current-Argus | October 24, 2017

The State of New Mexico made just shy of $8 million in October’s oil and gas lease sale, with dollars going to public schools, the New Mexico Military Institute and water conservation.

Twenty-three tracts were offered in the sale, covering about 6,877 acres of State Trust lands in Eddy, Lea, Chaves and Roosevelt counties, read a Friday news release from the State Land Office.

Thirty bidders from seven states participated in the online bidding, both sealed and open bids.

Sealed bids generated about $5.7 million, with about $2.2 million coming from open bids.

“Business is booming in the Permian Basin, and fortunately for public education, State Trust Lands lie in the path of production,” said New Mexico State Land Commissioner Aubrey Dunn. 

The monthly lease sales gathered a total of about $60 million so far in Fiscal Year 2018, the release read, with about $43 million going toward public schools.

Estacado Land Services LLC, of Roswell, was the winning bidder in both sealed and open formats, paying just over $1 million for a 315-acre tract and $1 for a 320-acre tract.

Both pieces of land are in Lea County.

Earnings from the sales are earmarked for the Land Management Fund, which covers the Land Office’s operating expenses, the release read, spending about 5 cents for every dollar earned.

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