Leases for oil and gas drilling on public land in New Mexico will be offered via auction in November.
The Bureau of Land Management on Friday, July 17, announced it was accepting comments from the public on the proposed lease sale, including lands within the southeast Permian Basin region of New Mexico.
The Permian Basin, a 55,000-square-mile oil and gas deposit, stretches from eastern New Mexico 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.
Eddy and Lea counties make up the New Mexico side of the Permian, fueling the state to be the second-highest oil producer in the nation following only Texas.
The public comment period on the lands proposed for auction in Eddy and Lea by the Bureau of Land Management will run for 30 days until Aug. 17, followed by a 30-day protest period before the auction can be held.
A public scoping period was held from May 22 to June 22 for technical comments.
An analysis by the agency found that oil and gas operations on the lands would have “no significant impact.”
Here’s what to know about the Bureau of Land Management’s November oil and gas land auction.
Where are the lands?
The auction will include 14 parcels in southeast New Mexico. This includes 11 in Eddy County on 3,921 acres and three in Lea County on 440 acres.
The sale also will include 880 acres on three parcels in Rio Arriba and San Juan counties, and 8,212 acres on 36 parcels in Texas and Oklahoma.
What are the terms of the leases?
A lease won at the auction entitles the lessee access to the land for 10 years or for as long as oil and gas is produced.
Operators also pay the federal government a royalty rate equal to 12.5% of the proceeds from oil and gas generated on the lands. The fee is split between the federal government and the state hosting the land.
‘No significant impact’
The Bureau of Land Management said oil and gas operations on the lands proposed for lease in New Mexico would have little impact on the region.
That’s because the area is already known for heavy oil and gas operations, read a bureau analysis.
In total, 18 oil and gas wells are likely to be drilled on the 14 parcels in southeast New Mexico, read the report, generating about 6.3 million barrels of oil and 21.4 billion cubic feet of natural gas.
The new wells represent just 0.03% of the roughly 69,108 wells the bureau estimates will be drilled in the Permian Basin throughout its lifetime.
Environmental impacts such as air pollution or surface disturbance would be mitigated by current regulations that successfully address the “adverse effects of primary concern,” according to the report.
“Leasing the nominated lease parcels would not result in significant public health and safety-related effects when comparing the aforementioned issues,” read the report. “Leasing for oil and gas, and subsequent exploration and development, is a regular and ongoing activity in the region.”
Managing Editor Adrian Hedden can be reached at 575-628-5516, or @AdrianHedden on the social media platform X.
