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July 10, 2019
Angie Poss, Assistant Commissioner of Communications
State Land Office Revenue Will Surpass $1 Billion
in FY 2019
Record High Revenue Estimates Reflect 30% Increase from FY 2018
SANTA FE, NM – The New Mexico State Land Office received more revenue from
business activity in fiscal year 2019 than any year before. Conservative year-end
estimates show revenue on track to surpass $1 billion. Given the nature of royalty
payment collection, the exact royalty revenue amounts received will not be available
until the Fall. Even with the most conservative projections for the last three months of
the fiscal year, 2019 revenue is projected to be approximately $1,110,000,000. In fiscal
year 2018, Land Office revenue reached $852 million.
“This is a record year for New Mexico. The State Land Office is open for business, and
our business is making a huge impact. The Land Office is one of the most unique billion
dollar enterprises in the Southwest – every dollar that we raise goes directly back into
our communities, helping build a better future for all New Mexicans,” Commissioner
Garcia Richard said. “Not everyone knows that we financially support 22 public
institutions, so when the Land Office succeeds, public schools, colleges, hospitals and
other institutions succeed as well. We do business with a diverse array of companies –
oil and gas, small and large businesses, wind and solar investors, farmers and ranchers,
outdoor recreation outfits – and because of these strong partnerships and relationships
with various industries, New Mexico households and taxpayers are getting a break.”
Every dollar earned by the Land Office is a dollar taxpayers do not have to pay to
support public institutions. 2019 revenue will save the average taxpaying household an
estimated $1,500 yearly.
The Land Office raises revenue from business lease payments, oil and gas earnings,
rights-of-way easements, livestock grazing leases, permits, interest, fees and royalties.
Revenue from these sources is deposited into one of two funds before being distributed
to public schools, colleges, hospitals and other important state institutions.
Money brought in by land deals that do not permanently deplete a resource, such as
renewable energy, livestock grazing, business leases, or planning and development, is
deposited into the Land Maintenance Fund, which is distributed monthly to
beneficiaries. Money from deals that deplete a resource, such as royalty paid for the
extraction of oil, gas and minerals, is invested into the Land Grant Permanent Fund, and
distributed to beneficiaries after investment by the State Investment Council.
Commissioner Garcia Richard added, “The State Land Office provides two different, but
equally important, sources of income for the public institutions that we support. Not
only do we distribute funds on a monthly basis, but we also are the sole contributor to
the Land Grant Permanent Fund – the third largest public education trust in the nation
– which has grown exponentially and provides vital resources to our public schools and
other beneficiaries.”
Large increases from specific revenue sources lead to the record setting $1 billion for the
most recent fiscal year, including:
 a 36% revenue increase in oil, gas and mineral royalty payments compared to
fiscal year 2018
 a roughly 30% revenue increase in business and commercial lease payments and
bonus payments compared to fiscal year 2018
 an over 1300% revenue increase in solar energy lease payments compared to
fiscal year 2018
 an over 400% revenue increase in wind energy lease payments
 a 61% revenue increase in right of way easements and right of way interest
payments compared to fiscal year 2018
The State Land Office funds its own operational costs from the revenue it generates. In
fiscal year 2019, operating costs were $17.4 million, or 1.56% of the projected total