Oil and gas companies wanting to explore on public lands in New Mexico will likely see increased drilling fees because of last week’s action by the Biden administration to put reins on the industry to an even greater extent by increased royalty and rental rates.
What will it mean for E&P companies? Royalty rates raised from the existing 12.5% to 16.67% and bonding requirements boosted to $150,000 for single leases and $500,000 for leases statewide reported the Carlsbad Current-Argus.
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