New Mexico held its final monthly oil and gas lease auction, generating a total of $5.5 million in high bids, according to data released by the State Land Bureau. This sum, although lower than those recorded in October ($6 million) and September ($8.3 million), exceeds several sales made earlier in 2024.
The sale involved 14 parcels, with a record individual bid of $2.4 million placed by Dudley Land Co., a company based in Katy, Texas. This amount represented nearly 44% of the total bids and marked Dudley Land Co.'s only participation in this auction.
The second-highest bid, at $1.24 million, came from Federal Abstract Co., a firm specializing in land title management on federal, state and Native lands. These two bids combined represented approximately two-thirds of the total bids.
Dominance of regular bidders
Federal Abstract Co. stood out for the number of winning bids, winning six parcels for a cumulative amount of $1.5 million. Magnum Producing, a company based in Corpus Christi, Texas, was also a major player with five winning bids totaling $700,750.
Other notable bidders included Martin Oil & Gas, a Colorado-based company, which obtained a parcel for $400,529, and Marshall & Winston, a private company based in Midland, Texas, which won a concession for $480,080 .
Economic context and state strategy
The November results are part of a fluctuating trend in state auctions. Although revenues are lower than in previous months, this decline is partially attributed to the state's strategic decision to limit the supply of prime land.
Stephanie Garcia Richard, director of the State Land Bureau, announced earlier this year that she would reserve some strategic parcels until the Legislature approves a higher royalty rate. Currently set at 20%, this rate could rise to 25%, in line with other major producing states.
This strategy aims to maximize future revenues for public agencies that rely on oil and gas revenues. However, it also highlights the delicate balance between immediate fiscal needs and the long-term benefits of better natural resource management.
