Regional
10:48 pm
Sun July 24, 2011

NM Lease Revenue Increases

New Mexico – New Mexico is seeing record amounts of revenue from drilling leases.

The increase comes as improved drilling techniques and the consent of potash miners persuaded the State Land Office this year to open previously off-limits tracts of land in New Mexico's southeastern counties to oil companies.

The Albuquerque Journal reports that the State Land Office in June recorded unprecedented bid levels at its monthly oil and natural gas lease sale in by auctioning off leases on nearly 8,400 acres for $17.2 million.

That record lasted only one month.

The state accepted bids last week from oil companies totaling $19.5 million for an additional 9,600 acres of drilling rights.

Much of the revenue is earmarked for public schools.

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Information from: Albuquerque Journal, http://www.abqjournal.com


Copyright 2011 The Associated Press.