BLM Says Oil, Gas Leases Net More Than $20 Million

Wednesday, July 18th 2007, 8:03 pm

By: News On 6

SANTA FE, N.M. (AP) _ A sale of oil and gas leases on U.S. Bureau of Land Management property in New Mexico, Texas and Oklahoma brings in more than $20 million, the bulk of it for leases in New Mexico.

The BLM says Wednesday it received bids on all 113 federal leases offered in the quarterly sale on Tuesday. The total includes bonus bids, fees and the first year of the lease.

Bonus bids for 70 parcels in New Mexico brought in more than $18.7 million.

Bonus bids for 19 parcels in Texas brought a little more than $943,000 while bonus bids for 24 Oklahoma parcels were worth about $625,000.

Half the revenue from lease sales goes to the federal government and half goes to the state in which the mineral leasing occurs.

The government receives 12.5% of royalties from production on the leases.

Leases are awarded for 10 years, then as long production continues in paying quantities after that.