BLM secures $20.67m from quarterly oil and gas lease sale

The Bureau of Land Management (BLM) New Mexico State Office has auctioned seven parcels covering 1,317 acres in its latest quarterly oil and gas lease sale, generating $20.67m in total receipts.

The proceeds from the combined bonus bids and rentals will be shared between the federal government and the state of New Mexico.

Oil and gas lease sales are pivotal for supporting domestic energy production, fortifying US energy independence and contributing to the nation’s economic and military security, according to the BLM.

In alignment with Executive Order 14154, titled Unleashing American Energy, the BLM’s lease sales will help in meeting the energy needs of US citizens and maintaining the nation’s status as a leading global energy power.

Leasing marks the initial phase in the process of developing federal oil and gas resources. The BLM is tasked with ensuring that oil and gas development complies with the National Environmental Policy Act of 1969, alongside other relevant legal frameworks.

These regulations are in place to safeguard the environment while facilitating resource development.

Once awarded, oil and gas leases are valid for a term of ten years and can be extended as long as there is continuous production of oil and gas in paying quantities.

The federal government benefits from a royalty, which is set at 16.67% of the value of the produced oil and gas.

The BLM conducts its lease sales online via EnergyNet, an established platform for such transactions.

The BLM’s jurisdiction spans more than 245 million acres of public land, primarily in 12 western states including Alaska.

Additionally, the BLM administers 700 million acres of sub-surface mineral estate nationwide.

“BLM secures $20.67m from quarterly oil and gas lease sale” was originally created and published by Offshore Technology, a GlobalData owned brand.

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