Oil and gas lease sales of state trust land soar

• Five bidders generated $6.73 million for beneficiaries

The State Land Office Tuesday collected more than $6.7 million from the September oil and gas lease sale, bringing first quarter 2018 earnings from monthly lease sales to nearly $50 million, compared to first quarter earnings in 2017 barely exceeding $8 million.

“Ninety-two percent of revenues collected by the State Land Office is from oil and gas activity on State Trust Lands and most of it flows to public schools, which exemplifies why the industry is vital to our state,” State Land Commissioner Aubrey Dunn said. “These first quarter earnings indicate we are on track for a top-performing year which is good news for education.” 

The State Land Office earned $6,734,872 from five bidders, for an average per acre price of $4,317. Beneficiaries of the leased acreage and revenues earned include public schools at $5,357,901; New Mexico Institute of Mining and Technology at $65,381; and Miners’ Colfax Medical Center at $1,311,590.

This month, Commissioner Dunn offered 10 tracts covering 1,560 acres of State Trust Lands in Eddy and Lea counties.                   

Chisholm Energy Holdings, LLC, of Fort Worth, Texas, was the winning bidder, paying $2.56 million for 200 acres in Eddy County.

Oil and gas lease sale earnings are paid into the Land Maintenance Fund, which covers the Land Office’s operating expenses. The agency is self-funded and spends about five cents of every dollar it earns, according to the news release from the commissioner’s office. The remaining revenue is distributed directly to the beneficiaries with the exception of public school money that is put into the state’s General Fund and distributed to each school district as appropriated by the state legislature.