Adrian Hedden
Artesia Daily Press
achedden@currentargus.com

A $300 million auction of public land in New Mexico was driven by federal policies more friendly to the fossil fuel industry, officials said.

The Bureau of Land Management on Tuesday, Jan. 6, announced results of that day’s land lease sale in which parcels of public land – mostly in southeast New Mexico – were auctioned to oil and gas companies.

The leases remain active for 10 years or as long as oil or gas is produced. Operators are still required to gain approval from the bureau to begin drilling.

In total, 32 parcels were sold on 20,479 acres in this month’s sale, bringing $328.8 million in revenue to the agency, half of which is provided to the states that host the parcels, read a news release from the Bureau of Land Management.

That’s compared to $76 million brought in by the bureau’s sale in November 2025 and $58 million in a sale last July.

Acting Bureau Director Bill Groffy said the increase in revenue resulted from recent policy changes made by the administration of President Donald Trump after a budget bill known by supporters as the “One Big Beautiful Bill” was signed into law on July 4, 2025.

Among myriad provisions in the bill was a clause reducing the royalty rate companies pay on the value of oil and gas extracted on federal land.

Former President Joe Biden, Trump’s predecessor, hiked the percentage companies pay on each barrel produced from 12.5% to 16.67% in 2022. The 2025 budget bill lowered the rate back to 12.5%.

Groffy said the lower rate supported increased oil and gas development and also encouraged interest in developing energy on federal lands, advancing “the bureau’s ongoing commitment to fulfill President Trump’s mandate to unleash American energy.”

“This is expected to spur additional leasing and drilling activity, which in turn supports increased domestic energy production and strengthens U.S. energy security,” read a statement from the bureau.

Where were the lands leased?

About 95% of the lands offered Jan. 6 were in southeast New Mexico – 19,527 acres, according to the Bureau of Land Management’s sale notice published in August 2025.

Of that total,18,403 acres (94%) were offered in Eddy County with 1,118 acres offered in Lea County.

The remaining 83-acre portion of the New Mexico lease sale was split with single parcels in Rio Arriba and Sandoval counties in northwest New Mexico. Another 120 acres were offered for lease in Oklahoma.

Eddy and Lea counties make up New Mexico’s portion of the Permian Basin – the nation’s busiest oilfield – which New Mexico shares with Texas.

The Permian produced about half of the 13.8 million barrels generated per day as of October 2025, according to the latest data from the Energy Information Administration.

Groups debate royalty rate

Jesse Deubel, executive director of the New Mexico Wildlife Federation, said the boom in Permian Basin oil production should mean higher returns for New Mexico taxpayers.

Citing a Jan. 6 report from government watchdog and national nonprofit Taxpayers for Common Sense, Deubel said that if Biden’s16.67% royalty rate had been applied to the Jan.6 sale, the leases would have generated more than $100 million in additional revenue for American taxpayers.

The report contended that lowering the rate meant a “loss” of about $110 million in the recent lease sale and a total of $600 million in unrealized revenue from federal oil and gas lease sales since the rate was reduced.

Deubel said the higher rate did not slow down oil and gas production in New Mexico during the two years it was in effect.

New Mexico was the second-highest oil producing state in the U.S. last year and the state accounted for 79% of production on federal land, read the Taxpayers for Common Sense study. New Mexico accounted for 88% of the growth in oil production on federal land in 2024, according to a July 2025 study from the American Petroleum Institute.

Meanwhile, state economists reported the industry brought in about half of the New Mexico’s budgeted revenue last year, which Deubel said illustrated the importance of fossil fuel operations to New Mexico and the need to “maximize” financial returns.

“We completely understand the need for oil and gas production. We all use it in our daily lives and New Mexico is reliant on revenue from the oil and gas industry,” Deubel said. “It’s just unfortunate that we are leaving so much money on the ground.”

Missi Currier, president of the New Mexico Oil and Gas Association – a trade group that frequently lobbies for oil and gas interests – warned that if costs such as royalty rates get too high, companies will leave New Mexico for neighboring Texas.

The Permian Basin straddles the border between southeast New Mexico and West Texas.

Currier said oil companies could shift their operations across the state line, tapping into the same oil reserves but drilling where less land is government managed and subject to federal royalty payments.

“The recent adjustment to federal royalty rates helps maintain New Mexico’s competitiveness in attracting investment,” Currier said. “Lower rates provide an incentive for companies to continue operating here, which translates into jobs for New Mexicans, billions in state revenue, and reliable energy for the nation.”

And despite lower royalty rates, Currier said, expanded oil and gas production will prove a more valuable benefit by increasing the volume of fossil fuels extracted.

“If rates are set too high, companies may reduce investment or shift operations elsewhere, resulting in fewer royalties overall,” she said. “A balanced approach ensures that development continues, revenue flows to schools and communities, and New Mexico remains a leader in energy production.”

Deubel agreed that collaboration among state and federal agencies, industry and the environmental community was crucial. He said achieving a balance would ensure the state gets the revenue it deserves while protecting the economy and the environment.

“The idea is not to increase the royalty rate until they leave the state but to maximize the benefit to the people of New Mexico from this high-intensity oil and gas extraction,” Deubel said. “We should be inching up until we hit that threshold where industry might consider leaving the state, but not cross it. Our leaders need to find that number. We’re not there yet.”

Alex Ross
Artesia Daily Press
aross@elritomedia.com

With the state Legislature’s 30-day session set to begin next week, southeastern New Mexico lawmakers shared their thoughts on issues ranging from spending and education to health care and crime at a public forum Monday night in Artesia.

The legislators, all Republicans, fielded questions for about two hours during the meeting, which was hosted by the Artesia Chamber of Commerce at the Ocotillo Performing Arts Center and billed as a legislative town hall.

About 60 to 70 people attended the event, which is held each year before and after the session, said Jessica Bollema, executive director of the Artesia Chamber of Commerce.

Former-Executive Director and Eddy County Commissioner Hayley Klein moderated the discussion.

The lawmakers in attendance were making their case for Republican priorities in a Legislature controlled by Democrats and largely focused on the agenda of Democratic Gov. Michelle Lujan Grisham. Democrats hold a 44 to 26 majority in the House of Representatives and a 26-16 majority in the Senate.

The legislative session begins Tuesday, Jan. 20, and under the New Mexico Constitution, lawmakers can take up the budget and only consider bills approved by the governor. The governor releases a list of bills and priorities ahead of the session’s opening day.

Spending was a key topic at the forum with at least one member of the audience wondering if all the revenue flowing to New Mexico from oil production in the state has been spent effectively.

Destiny Rodo, 33, of Artesia, specifically asked about the state’s support of education.

“I think we look at our scores statewide, a lot of people have a question, what is that money doing?” Rodo said. She asked if there were any plans to ensure that spending translates into improved student performance.

State Sen. Candy Ezzell (R-32) of Roswell, a member of the Senate Education Committee, expressed frustration with the Democratic-controlled Legislature on the issue.

“They don’t seem to understand that we want our money accounted for, and we want it to work for us,” Ezzell said.

Sen. Larry Scott (R-42) of Hobbs said that since he joined the Legislature 10 years ago, the state budget has grown from about $6 billion to $11 billion. He asked for a “show of hands” from people in the audience who believe the spike in state spending has made their lives better.

Two people in the audience raised their hands – Audrey Sanchez, 47, a human resources technician for the Artesia Public School District, and her husband Nathan Ryno.

Ryno, 50, a teacher at Zia Intermediate School in Artesia, said pay raises for public school teachers and staff that have been approved by the Legislature since 2019 have benefited them.

“Teachers got a significant pay raise,” Sanchez said, citing an increase from $35,000 to $55,000 for new teachers.

Scott acknowledged the teacher pay raises but said they represent only a small fraction of the state’s overall spending.

Lawmakers at the forum said the state should defer to school districts and school boards on education policy. State Rep. Jimmy Mason (R-66) of Artesia told the audience that when school boards make the decisions, it leads to more accountability.

“They are easy to get rid of if you don’t like what they do,” he said of school board members.

Rep. Jon Henry (R-54), who is also mayor of Artesia, said. districts and teachers need to be willing to take action – including holding back underperforming students.

“We shouldn’t be passing them on, just to pass them on,” Henry said, noting that he had to repeat the second grade – something he said was good for him in the long run.

Other legislators in attendance said greater parental involvement is needed to improve the performance of New Mexico’s students.

Juvenile justice gets attention

For the past several sessions, proposals to revamp the state’s juvenile justice code have failed to gain traction in the Legislature.

Sen. Jim Townsend (R-34) of Artesia said the state has fewer juvenile detention centers than it once did, and a key element in reining in the high juvenile crime rate is a greater willingness to adopt measures to hold youthful offenders – and, in some cases, their parents – accountable.

Henry criticized House Bill 255, a measure the Legislature took up but ultimately rejected during the 2025 regular legislative session. The bill passed the House but was defeated in the Senate.

Democratic proponents of the bill portrayed it as a data-driven approach meant to hold youthful offenders accountable and allow them to reintegrate into society.

Republicans opposed the bill, specifically its provision for a pilot program that would have given a temporary $2,000-per-month stipend to youthful offenders who served their time or aged out of the foster care system. The money would have covered housing and living expenses for those youths while they received workforce training or pursued opportunities in higher education.

Although proponents of House Bill 255 said individuals charged with first-degree murder would not be eligible for the stipend, Republicans dubbed it “the homicide scholarship.”

Henry said the stipends amounted to “rewarding kids for bad behavior.”

Medical compacts

Audience member Janell Taylor, 48, chief operating officer for a Hobbs nonprofit, Permian Basin Counseling & Guidance, asked the lawmakers about several bills that have been pre-filed to allow New Mexico to enter into interstate medical licensure compacts. The compacts would allow health care professionals licensed in another state to work in New Mexico.

“I know from my position, if we could join those compacts, I really think it would make a huge difference in getting licensed professionals into those positions that we desperately need,” Taylor said.

The compacts have garnered bipartisan support, but Townsend said some Democrats are opposed to them because they conflict with New Mexico’s medical malpractice laws. Townsend said he believes the governor will put the compact bills on her agenda for the 30-day session, but if they do not get passed, he said the governor could call a special session to approve the compacts and reform the state’s medical malpractice laws.

Alex Ross can be followed on the social media platform X @alexrosstweets.

Levi Hill
Hobbs News-Sun

Zero emissions. It’s an ambitious and commendable goal, but is it practical?

The question looms in the face of the State of New Mexico recently releasing its Climate Action Plan that sets a target for zero greenhouse gas emissions for the state by 2050.

The plan outlines 45 areas in which to meet the net-zero goal. But, for a state that sees more than 50 percent of its annual revenue coming from oil and gas operations, is net-zero attainable, and if so, at what cost?

The New Mexico Environment Department and Energy, Minerals and Natural Resources Department developed the plan over the past year in collaboration with state agencies, local governments, Tribal nations, residents, community organizations, industry and subject matter experts.

The plan serves as a roadmap to meet New Mexico’s climate pollution reduction targets set by Governor Michelle Lujan Grisham’s 2019 executive order directing the state to reduce climate pollution by 45 percent by 2030 and reach net-zero emissions by 2050.

“The New Mexico Climate Action Plan is more than a set of goals — it is an actionable roadmap to a resilient, energy-independent and prosperous future for every New Mexican,” said Environment Secretary James Kenney. “We are confronting climate change head-on while building a thriving clean energy workforce and creating long-term economic opportunities, especially for communities historically overburdened by pollution.”

According to the state, when implemented as a whole, the measures are projected to assure New Mexico fully achieves its targets. Combined with reductions expected under current policies, the plan’s recommendations put the state on track to achieve a 45.4 percent reduction in emissions by 2030 from 2005 levels and an 82 percent reduction by 2050.

The measures in the plan are projected to eventually prevent $294 billion in health care costs, property damage and other impacts caused by pollutants.

However, reaching zero emissions might just mean the state is aiming for zero economic stability, at least according to those who oppose it.

State Senator Larry Scott, R-Hobbs, said economic prosperity and emissions per capita go hand-in-hand, citing that in the U.S. the nation creates about 17.6 metric tons per person of carbon dioxide, while in sub-Saharan Africa, where people live on $40 a month, the per capita CO2 generation is only one ton per person annually.

“A zero emissions policy will set New Mexico on a path to third-world status,” Scott said.

Representative Elaine Sena Cortez, R-Hobbs, said the nation and state produces oil and gas more cleanly and efficiently than any other country and regulations that would curtail production domestically would only drive production up in nations with already weaker standards and higher emissions.

“Until practical alternatives exist for all these uses, responsible domestic production remains necessary, and Lea County has proven its steadfast commitment to securing America’s energy independence and dominance on the world stage,” she said.

Missi Currier, president and CEO of the New Mexico Oil and Gas Association, said existing standards work and the action plan is unnecessary.

“New Mexico’s oil and gas industry has worked hand-in-hand with regulators to achieve remarkable emissions reductions,” Currier said. “Methane emissions from the oil and gas sector have fallen by more than 60 percent since 2019, and we are on track for a 70 percent reduction by 2025.”

She said that progress is driven by significant investments in advanced technology and infrastructure, such as cutting-edge leak detection, modernized equipment, and continuous monitoring.

“These results show the current regulatory framework works, and we will continue to meet and exceed targets without a need for additional rulemaking or legislation,” she said.

The plan’s action items include:

• Addressing industry emissions: Recognizing the oil and gas industry as the state’s largest source of emissions and a key economic driver, the plan supports new rules to boost industry productivity by mitigating methane leaks and exploring the potential of carbon capture technology.

• Decarbonizing the grid: The plan supports grid modernization, investments in energy storage, and promotes geothermal and other emerging technologies to assure a reliable and affordable transition to a 100 percent clean energy grid.

• Climate-smart agriculture: The plan recommends voluntary and incentive-based agricultural programs and practices that will lower emissions and increase agricultural resilience for rural communities of New Mexico.

The New Mexico Climate Action Plan was funded by the U.S. Environmental Protection Agency’s Climate Pollution Reduction Grant, which delivered resources to NMED and EMNRD in July 2023, and the Innovation in State Government Fund established by Senate Bill 83 in 2025.

The full New Mexico Climate Action Plan is available at www.climateaction.nm.gov/CAP.

Levi Hill’s email is reporter1@hobbsnews.com.