New Mexico halts some oil-field lease sales in standoff over royalty rates in Permian Basin

New Mexico’s State Land Office will withhold lease sales indefinitely on its most promising tracts for oil and gas development in the Permian Basin as it seeks approval for the state Legislature to increase top-tier royalty rates. Land Commissioner Stephanie Garcia Richard confirmed the decision Thursday. Bills have repeatedly stalled in the Democratic-led Legislature that would raise New Mexico’s top royalty rate for oil and gas development from 20% to 25%. Proponents of the change say neighboring Texas already charges up to 25%. New Mexico Oil and Gas Association CEO Missi Currier says the disagreement between Legislature and State Land Office threatens to penalize petroleum producers and public beneficiaries as oilfield activity is sidelined.