New Mexico is seeing record amounts of revenue from drilling leases. The increase comes as improved drilling techniques and the consent of potash miners persuaded the State Land Office this year to open previously off-limits tracts of land in New Mexico's southeastern counties to oil companies.

The State Land Office in June recorded unprecedented bid levels at its monthly oil and natural gas lease sale in by auctioning off leases on nearly 8,400 acres, mostly in Eddy and Lea Counties, for $17.2 million. That record lasted only one month.

Last week, the state accepted bids from oil companies totaling $19.5 million for an additional 9,600 acres of drilling rights.

Much of the state's money from the leases is earmarked for a state fund that pays out a prescribed amount of money every year to public schools, universities and other beneficiaries.

The boom is the latest sign of an uptick in New Mexico oil production despite ongoing debate over the state's environmental regulations. Oil production in New Mexico increased by more than 4 percent during the last fiscal year. Every $1 increase in crude oil prices generates $4 million or state coffers over a year.





© Copyright Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.