Oil GasProgram

AND

“Technological advances

have allowed larger

volumes of oil to be

produced from existing

wells, contributing to

record-setting revenues.

This money will help our

state’s Public schools,

special schools, univer-

sities and hospitals in

these difficult times.”

Ray Powell, M.S., D.V.M.Commissioner of Public Lands

~

The State Land Office signed a con-servation agreement with the U.S. Fish and Wildlife Service in March 2012 to protect over 245,000 acres of habitat for the dunes sagebrush lizard and lesser prairie-chicken on trust lands, while still allowing oil and gas production to continue.

This agreement was one of the top factors cited in the U.S. Department of Interior decision not to list the dunes sagebrush lizard for protection under the Endangered Species Act (ESA). The Land Office is working on a land ex-change with the Bureau of Land Management to protect unfragmented habitat for these animals.

Habitat Conservation

Ray Powell, MS, DVM, Commissioner of Public Lands

310 Old Santa Fe TrailSanta Fe, New Mexico

505.827.5744 www.nmstatelands.org

Record Earnings

In 2012 the Land Office created an Oil and Gas Advisory Board and a Conservation Advisory Board to enhance transparency and input on policy making. The Land Office is a voting member of the Oil Conservation Commission, which addresses regulatory and adjudicatory issues concerning oil and gas.

Exploration and development of state lands under oil and gas leases are regulated by the Oil and Gas Act, the Water Quality Act, and State Land Office Rule 100.

Surface disturbing activities require perfor-mance and surface improvement damage bonding.

Oil and gas leasing outside the Permian and San Juan basins requires a field inspection and review of environmental issues.

The Land Office controls over 40 percent of the oil and gas acreage in the southeast-ern New Mexico Permian Basin—one of the richest oil-and-gas producing regions in U.S. history. Production has increased in recent years due to new technology and the higher price of oil.

The San Juan Basin in northwest New Mexico, where the Land Office manages significant acreage, typically has been a gas-producing area. New development of oil shale in the basin may mean a burst of oil activity in the San Juan.

Permian Basin

San Juan Basin

Industry Regulation

In fiscal year 2012, the Land Office produced a record $653 million from trust lands and permanent funds, thanks in part to horizon-tal drilling that reaches previously inacces-sible resources. The Land Office conducts monthly oil and gas lease auctions, earning over $100 million in fiscal year 2012.

The New Mexico State Land Office supports 21 beneficiaries and about 94 percent of its revenue funds public education throughout the state. The Land Office manages about 11.6 percent of surface acres and 13 percent of subsurface/mineral acres in New Mexico.

The Oil, and Gas and Royalty Management programs comprise the Mineral Resources Division. More than 97 percent of State Land Office revenue is derived from oil and gas production.

The Oil and Gas Program manages subsur-face resources, evaluates commodity resourc-es, administers monthly oil and gas lease sales, processes mineral royalty revenue, and administers natural resource leases.

Revenues for Beneficiaries