Oil and gas top New Mexico state land office’s record revenue

Oil and gas continued to generate revenue for the state of New Mexico as lawmakers prepared for the next budget-focused 2022 legislative session that begins later this month.

Last week, the New Mexico State Land Office said it received a record monthly turnover of around $ 141.8 million in December 2021, with oil and gas accounting for the bulk of the revenue.

Records show that of the total received last month at the Land Office, which manages land from the New Mexico State Trust and leases the land to oil and gas operators, about $ 137.9 million was from oil and gas royalties, or 97% .

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So far in fiscal year 2022, which runs from July 1, 2021 to June 30, 2022, the land office has received about $ 385.7 million in oil and gas royalties, or about 90 percent of the total ‘approximately $ 428.8 million.

Other prominent industries were coal which contributed $ 290,831 in royalties last month and around $ 1.4 million so far this fiscal year, and potash with $ 169,937 in December 2021 and $ 885,472. so far in fiscal year 2022.

December revenues surpassed the previous record of $ 141.2 million recorded by the Land Office in June 2021, surpassing other highs of $ 135.1 million in September and $ 132.6 million in October of l ‘last year.

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Public Lands Commissioner Stephanie said revenue was “on track” to exceed $ 1 billion in fiscal 2022 for the fourth year in a row.

She said the Land Office’s revenues were diversified to include uses other than fossil fuels like renewables, technology and outdoor recreation.

“I am proud to report that despite the ongoing pandemic, the land office earned more in December 2021 than in any month in New Mexico’s history,” Garcia Richard said. “This is a testament to the growth and success of all sources of income, including renewables, oil and gas, grazing, commercial leases, rights of way, etc. “

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Funds raised by the Land Office go to public schools, hospitals and universities through the state Land Grant Permanent Fund.

Garcia Richard said the money is also invested by the State Investment Council, used to offset costs to New Mexicans of more than $ 1,500 per year.

“By continuing to generate record revenues from the State Investment Council, our agency now has the potential to save New Mexico families even more than the $ 1,500 we save taxpayers each year,” he said. she declared.

“We are delighted to continue this growth and our work to diversify our sources of income by developing innovative economic development projects and outdoor recreation opportunities on State Trust Land. “

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Texas oil and gas executives also tout public revenues

Texas, with which New Mexico shares the Permian Basin – the most active oil and gas field in the United States – has seen $ 15.8 billion paid by industry in state and local taxes in fiscal year 2021, according to a recent report from the Texas Oil and Gas Association.

The revenues meant a 20% increase in state royalties and taxes on production, according to the report, while taxes on production exceeded $ 5 billion for “only the third time in history.”

Texas school districts received $ 1.84 billion in property taxes on the state’s mineral-producing lands, while counties collected $ 640 million in similar taxes, according to the report.

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The Midland School District was Texas’ top earner, with $ 134.9 million received in property taxes, while Reeves County, along the Texas-New Mexico border, was the top county. paid with $ 47.4 million.

Association President Todd Staples said the oil and gas industry has shown resilience despite the COVID-19 pandemic that began in the United States in March 2020 and resulted in multiple travel restrictions and business that subsequently caused fuel demand to drop to historically low levels.

“As our country continues to rebound from the lingering impact of the pandemic, this data confirms that reliable and affordable energy, fuels and products manufactured by the oil and gas industry are essential to the continued economic and environmental progress, ”Staples said.

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He criticized federal policies to tackle pollution and climate change under President Joe Biden’s administration last year could risk continued growth in oil and gas production.

Last year, as Biden took office, a hiatus was put on new oil and gas leases by the Home Office.

Although a federal judge later filed an injunction against the ruling, Staples warned that any future efforts to slow U.S. oil and gas operations could undermine climate progress by making the United States more dependent on energy supplies. foreign and more polluting.

“To waste our nation’s energy through the wrong policy is a disservice to all Americans and a step in the wrong direction for the environment,” he said.

“If the world really takes climate progress seriously, we need to produce and export more natural gas – not less – to provide other countries with lower-emission energy resources. “

Adrian Hedden can be reached at 575-618-7631, [email protected] or @AdrianHedden on Twitter.

Gregory M. Roy