Legislation would bring oil and gas royalty rates to market value,
providing millions more for public schools, universities, and hospitals

Santa Fe, N.M. - Legislation that would bring New Mexico's oil and gas royalty rates in line with current market values is now headed to the Governor's desk, after passing the House of Representatives today by a vote of 37-31.

Senate Bill 23 would apply to lease rates for new oil and gas tracts leased from the State Land Office, so that these rates are in line with the fair market value for New Mexico's mineral rights. This rate change would also supply additional funding for critical public services that are made through the Land Grant Permanent Fund.

"New Mexico is home to some of the most sought-after natural resources in the world, yet we're currently charging well below even the standard market rates," said lead sponsor Rep. Matthew McQueen (D-Galisteo). "By simply charging what our state's prime mineral interests are actually worth, we can increase payments to our schools, hospitals, and universities by hundreds of millions of dollars."

The proposal would raise an estimated $50 to $75 million a year, and up to $1.3 billion by 2050 for beneficiaries of the Land Grant Permanent Fund. Royalty rate increases under Senate Bill 23 would begin in July 2025, and would only apply to new oil and gas leases on certain prime pieces of land.

The bill is also sponsored by House Speaker Javier Martínez (D-Albuquerque), Senators George Muñoz (D-Gallup) and Elizabeth "Liz" Stefanics (D-Cerrillos).

Members of the public are welcome to attend floor sessions and committee meetings at the New Mexico Roundhouse, and can tune in virtually through the New Mexico Legislature's Webcasts tab. Public comment can also be provided in-person, and via phone or Zoom as directed on the daily schedule.