N.M. land office earns nearly $2.5M

The Associated Press

The New Mexico Land Office earned more than $2 million at the November oil and gas lease sale.

This was the highest grossing lease sale since September 2001, state Land Commissioner Pat Lyons said Nov. 25.

Bids were made on 37 tracts covering almost 10,000 acres.

Artesia-based Yates Petroleum submitted the highest sealed bid of $221,315.60 for 440 acres about 16 miles southeast of Artesia.

The highest oral bid was made by Pitch Energy of Artesia, which bid $686.30 per acre for 320 acres north of Carlsbad.

“It’s safe to say we’ve come a long way, baby,” Lyons said. “The average per acre this month was $233.50, which is a far cry from 30 cents an acre in 1928.”

The Land Office manages 9 million acres of surface trust land and 13 million oil, gas and mineral acres. It administers state trust lands that generate revenues for the permanent fund, which distributes money to public schools and other institutions.

Revenue from the bonuses supports the Land Office’s operating budget.