New Mexico brings in over $108M in oil, gas royalty payments
SANTA FE, N.M. (AP) — Oil and natural gas royalty payments for development on state trust lands netted nearly $109 million for New Mexico in one month.
Land Commissioner Stephanie Garcia Richard announced the record revenues Friday, saying the State Land Office is on track to raise another $1 billion this year for public schools, hospitals and other beneficiaries.
Much of drilling activity is happening in the Permian Basin, which straddles parts of southeastern New Mexico and West Texas.
The State Land Office’s Royalty Management Division reports royalty revenue three months after production, so the revenue reported for the month of February actually reflects production from November. Overall, the oil and gas industry marked another banner year in 2019.
“For the first time in history, our monthly royalty revenue will be near or over $100 million for four months in a row,” Garcia Richard said. “The money that we receive in this office is vital to all New Mexicans – whether that money is from royalty payments from oil and gas, outdoor recreation permits, renewable energy, or rights of way easements.”
Revenue from royalty payments is directed to the State Investment Council for investment in the Land Grant Permanent Fund.