Adrian Hedden
Artesia Daily Press
achedden@currentargus.com
Oil and gas companies could lease another 30,000 acres of public land in New Mexico this spring.
The Bureau of Land Management said it was planning to lease the lands in an auction planned for May 2026.
The bureau completed its environmental analysis of the lands proposed for lease, and opened a public comment period on Wednesday, Jan. 21, for input on the analysis until Feb. 20.
This followed a “scoping period” in December 2025, where comments could be submitted after the proposed parcels were released.
Here’s what to know about the sale, and how to comment.
How to submit public comments
Public comments can be submitted online at the bureau’s website, https://eplanning.blm.gov/Project-Home/?id=543adaf8-a7f2-f011-8407-001dd80db62a, after clicking the “Participate Now” link.
The environmental analysis can be accessed under the “Documents” section of the page.
Where is the land?
About 94% of the lands offered in the lease sale – 31,525 out of the total 33,530 acres – were in southeast New Mexico’s Permian Basin region spread out between Eddy and Lea counties.
Thirty-five parcels are in Eddy County on 14,289 acres – about 42% of the total lands offered in the sale. Another 24 parcels were offered in Lea County on 16,015 acres, or 47% of the sale.
The sale also includes three parcels on 360 acres in Quay County, and a single, 320-acre parcel in Roosevelt County, along New Mexico’s eastern border with Texas.
In the northwest corner of New Mexico, 11 parcels were offered on 2,168 acres spread among Sandoval, Rio Arriba and San Juan counties.
The lone Texas parcel was on 156 acres in McMullen County.
Analysis finds ‘no significant impact’
Up to 142 oil and gas wells could be drilled on the lands nominated for leases, read the environmental analysis published by the Bureau of Land Management.
In its analysis, the bureau argued the area where the leases were proposed was designated by the federal government for oil and gas production, and that such operations are common nearby.
Most impacts to air quality from oil and gas drilling on the lands would be “short-term,” the report read, and peak within the first 60-90 of operations as the well is completed.
“Emissions are anticipated to decline during operations and maintenance as the need for earth-moving and heavy equipment decreases,” read the report. “Ongoing operations of well sites would be subject to state and federal permitting requirements, which ensure compliance with air quality emission standards.”
The agency reported water use would also peak during this time as the well is drilled using hydraulic fracturing, or fracking, when water and chemicals are pumped underground to break up shale rock to extract fossil fuels.
But the report did warn there was “uncertainty” as to when underground aquifers would be recharged after water is used for drilling, meaning any impact to local groundwater supplies could be “long-term.”
What are the terms of the leases?
Federal oil and gas leases are for 10 years or as long as oil or gas is produced.
Leasing is the first step to production on federal public land, granting a company access to the acreage.
Operators are still required to gain various approvals from the bureau to install the necessary infrastructure and to commence drilling via an application to permit drilling, known as an “APD.”
Once operations begin, the leaseholder must pay a royalty rate to the federal government, taken as a percentage of the proceeds from oil and gas production, which is reported annually based on the volume extracted and current market pricing at the time of the report.
Revenues from federally-leased lands for oil and gas development are split with the host state.
The Bureau of Land Management currently charges a 12.5% royalty rate, after it was decreased from 16.67% with the July 4, 2025, signing by President Donald Trump of a sweeping spending bill known to supporters as the “One Big Beautiful Bill.”
The 16.67% rate was enacted by former President Joe Biden, increasing from the previous 12.5% royalty.
Supporters of the lower rate said it would aid the oil and gas industry’s growth.
“The recent adjustment to federal royalty rates helps maintain New Mexico’s competitiveness in attracting investment,” said Missi Currier, president of the New Mexico Oil and Gas Association, a trade group that lobbies for industry interests. “It’s important to note that taxpayers benefit most when production occurs.”
But a Jan. 22 report from national government watchdog group Taxpayers for Common Sense said the lower rate would cost New Mexicans tens of millions of dollars.
The group’s report pointed to 17,889 acres in New Mexico leased after July 2025, when the lower rate went into effect, bringing in about $154.4 million. If the higher rate had been maintained, the group reported, another $84.3 million would have gone to the government.
And New Mexico oil and gas production grew heavily in 2023 and 2024, the report read, undeterred by the higher rate charged in those years.
“New Mexico continues to demonstrate that competitive leasing occurs where resource potential justifies investment, not where terms are tilted to favor operators,” read the report.
Managing Editor Adrian Hedden can be reached at 575-628-5516, or @AdrianHedden on the social media platform X.


















