Adrian Hedden
Artesia Daily Press
achedden@currentargus.com
Steve Pearce came to Carlsbad May 20 and it was a productive visit.
The former Republican congressman from Hobbs took the oath of office as newly confirmed director of the federal Bureau of Land Management while he was in the Cavern City and celebrated the bureau’s record-breaking, $4 billion sale of oil leases on federal public land.
The sale included 74 parcels in southeast New Mexico and West Texas, centered in the Permian Basin oilfield.
Pearce’s nomination by President Donald Trump to lead the agency that oversees 247 million acres of federal land in 12 states, including New Mexico, was confirmed Monday, May 18, by the U.S. Senate.
After being sworn in as head of the Bureau of Land Management during a private ceremony, Pearce joined other federal officials and employees of the bureau’s Carlsbad Field Office to announce the lease sale.
Pearce said the sale would bring wealth to communities such as Carlsbad as the United States strives to become energy independent.
“We want jobs. We want wealth to come into our communities,” Pearce told the Current-Argus after the announcement event at the National Cave and Karst Research Institute in Carlsbad.
Leases to portions of federal public land managed by the Bureau of Land Management are sold via auction to oil and gas companies for 10 years or as long as oil or gas are produced. Operators must obtain approval from the agency for a separate permit to commence drilling.
Proceeds from the sales are split between the federal government and the host state, meaning New Mexico would receive a check for about $2 billion as a result of the second quarter lease sale announced Wednesday, said Kate MacGregor, deputy secretary of the U.S. Department of the Interior. The Bureau of Land Management is an agency within the Interior Department.
The sale included 35 parcels on 14,289 acres in Eddy County – 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 included 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.
MacGregor said the previous record in Carlsbad was a $972 million lease sale held in 2018, and that the previous national record was $3.7 billion in leases sold by the bureau in 2008 on public land in the Gulf Coast.
She said large sales such as Wednesday’s were a testament to the strength of the U.S. oil and gas industry and highlighted the necessity of domestic drilling.
“We have restored the goal of American energy dominance as something we support at the Department of the Interior,” MacGregor said, invoking a January 2025 executive order by President Donald Trump titled “Unleashing American Energy.” The order called for more drilling throughout the U.S., especially on public land.
In addition to the $4 billion in proceeds from the sale, MacGregor said, the leases would generate another $7 billion in royalties over the next 10 years.
“If we keep those wells productive, we’re talking real money,” she said.
Royalty rates are paid by operators to the government as a percentage of the proceeds from wells on federal land. The current rate of 12.5% has prevailed for all but three years since it was adopted by the federal government in 1920. It was raised to 16.67% during the administration of former President Joe Biden but was cut back to 12.5% through legislation passed by Congress and signed by Trump last July.
Pearce said the large lease sale was a sign that southeast New Mexico is critical to the U.S. becoming independent of other countries for energy and unfettered by global conflicts such as Iran closing the Strait of Hormuz amid military attacks by the U.S. and Israel starting on Feb. 28.
The strait is an essential trade route moving oil and gas from the Middle East to Europe and other global markets.
“The whole world is hanging onto the Strait of Hormuz, and we’re supplying the oil to the world in the interim,” Pearce said. “We want to be energy independent. It’s good for the American people.”
Pearce also addressed concerns about the environmental effects of expanded drilling. Oil and gas companies, he said, have “bought into the idea” of producing energy while mitigating pollution.
“I’m reassured that we’re paying attention to everything we can to keep our environment clean,” Peirce said, noting his plans to address abandoned wells throughout bureau-managed lands and balance other uses such as outdoor recreation. “I’m willing to talk to industry about the problem. We’re going to take care of people who want to recreate on public lands. I want to protect that.”
Pearce offered similar assurances during his Senate confirmation hearing, but environmental groups remain skeptical.
Demis Foster with Santa Fe-based nonprofit Conservation Voters New Mexico said Pearce’s record while he served as U.S. representative for New Mexico’s 2nd Congressional District from 2003 to 2009 and again from 2011 to 2019 was marred by heavy support for the use of public land for industrial development.
“Pearce also has a long history of climate denial and putting polluter profits over the well-being of our people,” Foster said. “Here in New Mexico, our communities are suffering the consequences of the Trump administration’s disregard of climate science, with record heat, drought, and wildfire devastating our rural communities.”
Managing Editor Adrian Hedden can be reached at 575-628-5516, or @AdrianHedden on the social media platform X.