Aubrey Dunn, State Land Commissioner
State of New Mexico
FOR IMMEDIATE RELEASE
March 21, 2017
Contact:
Kristin Haase, Assistant Commissioner for Communication
(505) 827-5762 (O)
(505) 699-1276 (C)
[email protected]
State Land Office’s March Oil and Gas Lease Sale Yields $18 Million Windfall for Education
SANTA FE, NM – State Land Commissioner Aubrey Dunn today announced that public schools
and a handful of other State Trust Land beneficiaries can expect an extra $18 million in their
coffers next month.
The windfall comes after the State Land Office’s March 21st oil and gas lease sale earned
$18,556,402 – the second highest earning lease sale in State Land Office history. Commissioner
Dunn offered 56 tracts covering 16,812.52 acres in Lea, Roosevelt, and Chaves Counties within
the Permian and Tatum Basins.
The beneficiaries of the leased tracts include public schools, the University of New Mexico, the
New Mexico School for the Blind and Visually Impaired, the New Mexico School for the Deaf,
the New Mexico Behavioral Health Institute, Rio Grande Improvements, and Water Reservoirs.
Tuesday’s earnings are expected to be distributed in April, with public schools receiving the
majority, or $14,252,802.
The monthly lease sales, which are held on the third Tuesday of every month, are conducted
online with a sealed portion and an active bidding portion. This month, sealed bids generated
$9,194,102 and active bids brought in $9,362,300.
OneEnergy Partners Operating, LLC was the winning sealed bidder, paying $2,363,175 for
315.09 acres in Lea County. Marathon Oil Permian was the winning active bidder, paying
$3,500,100 for 315.59 acres in Lea County.
The State Land Office is a self-funded agency. Renewable revenues such as lease payments,
rights-of-way, permits, and interest flow into the Land Maintenance Fund, which covers the
agency’s operating expenses, with the balance distributed monthly to the beneficiaries.
Oil and gas leases are on a five year term and are held by production. Royalties earned from oil,
gas, and mineral production on State Trust Lands are paid into the Land Grant Permanent Fund,
which yields hundreds of millions of dollars for the Trust beneficiaries.
“The State Land Office is having a record year, which is good news for public education,” said
Commissioner Dunn. “Sweeping budget cuts are expected across the board, but the Land Office
is in a strong position to support children and teachers across the state.”
The State Land Office’s fiscal year 2017 revenue estimate was $60,189,844, but year to date
earnings far exceed that. The end of the third quarter shows fiscal year revenues in excess of $81
million.
Oil, gas, and mineral production, ranching and farming, and commercial development on
State Trust Lands support public schools, the New Mexico School for the Deaf, the New
Mexico School for the Blind and Visually Impaired, the New Mexico Military Institute, seven
universities, three hospitals, correctional facilities, water conservation projects, and public
building construction and repair.
###