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New Mexico legislators OK increase on future oil royalty rates for prime land

The state Legislature has endorsed a bill that would raise royalty rates for new petroleum development on prime pieces of land in New Mexico, on one of the world's most prolific oil production areas. A 37-31 vote on Thursday sent the bill from the Statehouse to Democratic Gov. Michelle Lujan Grisham for consideration. The proposal would increase the top royalty rate for oil and gas development from 20% to 25% on New Mexico's state trust lands with implications for the energy industry in the Permian Basin, which overlaps southeastern New Mexico and western Texas.