Oil and gas leases totaling more than $139 million and 20,000 acres of government land in New Mexico, Oklahoma and Texas were announced recently by the Bureau of Land Management.
The leases were part of a quarterly oil and gas lease sale conducted by the BLM and totaled $139,021,741 in total receipts. The combined lease bonus bids and rentals are distributed between the federal government and state where the land is located.
The recent sale is the latest in a series of successful sales in New Mexico, underscoring strong industry demand for domestic energy development on public lands. A record oil and gas lease sale in May generated more than $4 billion in New Mexico and Texas. So far this calendar year, lease sales in New Mexico have generated more than $4.4 billion. That’s about 90% of the $4.9 billion in oil and gas leasing revenue this year for all of BLM.
This lease sale was conducted under the Working Families Tax Cut Act, also known as the One Big Beautiful Bill Act, which reset the royalty rate for new federal onshore oil and gas production to a minimum of 12.5%, reversing the 16.67% rate set by the Inflation Reduction Act. By lowering the federal onshore royalty rate from 16.67% to 12.5%, the Working Families Tax Cut Act reduces the cost of doing business on public lands, making oil and gas development more economically attractive to industry. This is expected to spur additional leasing and drilling activity, which in turn supports increased domestic energy production and strengthens U.S. energy security.
Oil and gas lease sales support domestic energy production and American energy independence, while contributing to the nation’s economic and military security. Consistent with Executive Order 14154, “Unleashing American Energy,” the BLM’s lease sales help meet the energy needs of U.S. citizens and solidify the nation as a global energy leader long into the future.
Leasing is the first step in the process to develop federal oil and gas resources. The BLM ensures oil and gas development meets the requirements set forth by the National Environmental Policy Act of 1969 and other applicable legal authorities.
Oil and gas leases are awarded for a term of 10 years and as long thereafter as there is production of oil and gas in paying quantities. Information on current and upcoming BLM leases is available through the National Fluid Lease Sale System.
BLM lease sales are held online through Efficient Markets. Results are available on the National Fluid Lease Sale System. After navigating to the page, filter to the sale, and select the action “View Sale Documents” to view the sale results.
