Bill > SB23

This bill modifies the royalty rates and lease terms for oil and gas development on certain New Mexico state trust lands, specifically for leases issued on or after July 1, 2025. The bill updates the standard lease form to allow for more flexible royalty rates, ranging from three-sixteenths to one-fifth or alternatively from one-fifth to one-fourth, depending on the specific geographic location of the leased land within restricted districts. The changes aim to enhance revenue for state trust land beneficiaries by providing the Commissioner of Public Lands with more options for setting royalty rates during lease auctions. Additionally, the bill requires more transparency in the lease sale process, mandating that information about individual tract nominations be posted while keeping the nominating company's identity confidential. The new provisions will give the state more flexibility in managing oil and gas leases, potentially increasing the financial returns from state trust lands by allowing for more competitive and adaptable lease terms. The changes will take effect on July 1, 2025, giving stakeholders time to prepare for the new leasing framework.

Agriculture and Natural Resources

https://www.nmlegis.gov/Legislation/Legislation?chamber=S&legtype=B&legno=23&year=25