Most of the 4,053 acres of public land set for auction to the oil and gas industry in February is in Eddy County.
The Bureau of Land Management announced the lease sale Aug. 5, opening a “public scoping period” when initial technical feedback on the proposed lands can be submitted until Sept. 4.
After public scoping, a 30-day public comment period will be opened amid publication of an environmental assessment. Next will be a protest period where those opposed to the sale can submit their final comments.
The final sale was planned for February 2027, the first of the bureau’s quarterly lease sales of 2027 and the latest move by the agency to open more land in the Permian Basin to drilling.
The Permian Basin, a 55,000-square-mile oil and gas deposit, stretches from eastern New Mexico – Eddy and Lea counties – into West Texas. It’s the most active oilfield in the U.S., on track to produce an average of 6.6 million barrels per day in 2026, according to a report from the Energy Information Administration.
Here’s what to know about ongoing land leasing in the Permian.
Where are the lands being offered?
Of the 15 parcels offered for leases, nine are in Eddy County on 3,181 acres, or about 78% of the total acreage offered.
Another 482 acres on two parcels were offered in Lea County, along with 240 acres on two parcels in Rio Arriba County in northern New Mexico.
Two more parcels were offered in Oklahoma – 80 acres in Kingfisher County and 70 acres in Custer County.
What are the terms of the leases?
Federal oil and gas leases are active for 10 years or for as long as fossil fuels are produced from the property.
In exchange for such access, operators pay a 12.5% royalty rate taken as a portion of the proceeds from oil and gas production and split between the federal government and the host state.
How to submit feedback
Public scoping comments can be submitted to the Bureau of Land Management on its website blm.gov under the New Mexico oil and gas leases page.
On the project page, those interested can review a map and listing of proposed parcels and click the “Participate Now” button to submit comments. Commenters may provide their name, address, contact information and supporting documents along with their comments.
What other sales are planned?
The next lease sale offered by the land management bureau will be on Aug. 19 when bidding will be held on about 21,181 acres, including nine parcels in southeast New Mexico.
Those include 2,239 acres in total – seven parcels in Eddy County and two in Lea County.
The other 16,855 acres offered were in an area of northern New Mexico near the San Juan Basin known for heavy natural gas production. This included 10 parcels in Sandoval County and two parcels in Rio Arriba County.
Another 8,071 acres was planned for lease in November, including 11 parcels in Eddy County on 3,921 acres and three in Lea County on 440 acres. A public comment period for that sale will close Aug. 17.
State Land Office offers monthly oil lease sales
The New Mexico State Land Office offers monthly sales of leases on State Trust land to the oil and gas industry, also mostly centered in the Permian Basin.
In July, the land office sold leases on 12 parcels of land including 11 in Lea County on 2,256 acres and one in Eddy County on 321 acres. That sale brought in about $23.7 million.
In August, the Land Office is planning to offer another nine parcels – eight in Lea County on 1,509 acres and one in Eddy County on 40 acres.
The state’s September lease sale will offer seven parcels in Lea County on 1,560 acres.
Managing Editor Adrian Hedden can be reached at 575-628-5516, or @AdrianHedden on the social media platform X.
