SB 23 New Mexico Senate · 2025 Regular Session

OIL & GAS ROYALTY RATE CHANGES

SB 23 changes the royalty rate for future oil and gas leases on certain New Mexico state trust lands. It amends lease terms to set a new royalty rate for "Premium" lands issued on or after July 1, 2025, directly affecting oil and gas companies leasing these lands and increasing revenue for trust beneficiaries (like schools and hospitals). The key provision requires lessees to pay this new rate in addition to the existing lease terms for all new development leases on designated trust lands. This policy change specifically targets future leases, not existing ones, to boost state trust land revenue.

Bill status signed all 5 stages cleared

Introduction

Jan 2025

Committee Review

Mar 2025

Senate Passage

Feb 2025

House Passage

Mar 2025

Signed into Law

Apr 2025

Introduced Jan 21, 2025 Signed Apr 11, 2025

Maddy AI version diff · 2 comparisons

What changed between versions

FC substitute → Final Version · 4 edits

MODERATE

This bill amends the standard oil and gas lease form used by the State of New Mexico to establish higher royalty rates for future leases on specific state trust lands. The changes apply only to leases issued on or after July 1, 2025, on lands classified as 'restricted' and categorized as 'Premium'.

Scope change

The bill's scope is limited to new oil and gas leases issued after July 1, 2025, on state trust lands that are both classified as 'restricted' and categorized as 'Premium'.

FISCAL

Establishes a new royalty rate range for qualifying leases, requiring payment of not less than three-sixteenths nor more than one-fifth, or alternatively not less than one-fifth nor more than one-fourth, depending on the location within specific restricted districts.

TIMELINE

Sets a specific effective date of July 1, 2025, for the new lease form and royalty requirements to apply to future leases.

ELIGIBILITY

Defines eligibility for the new royalty rates to lands that are classified as 'restricted' and categorized as 'Premium' under existing state law.

REQUIREMENT

Updates the standard lease form language to include specific geographic restrictions and royalty payment terms tied to designated townships and ranges within the state.

Floor votes · Senate Feb 22, 2025 · House Mar 20, 2025

How they voted

20–15

Passed · 5 other

Total votes 40

Feb 22, 2025

D Democratic24

20 Yea 4

83% Yea

R Republican16

15 Nay 1

93% Nay

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Apr 11, 2025

Signed into law

Signed

executive

Mar 20, 2025

Lower · Passed

passed House

lower

Mar 15, 2025

Lower · Passed

DO PASS committee report adopted

lower

Mar 4, 2025

Lower · Passed

DO PASS committee report adopted

lower

Feb 24, 2025

Introduced

Sent to House Energy, Environment and Natural Resources Committee & House Appropriations & Finance Committee

lower

Feb 22, 2025

Upper · Passed

passed Senate

upper

Feb 19, 2025

Upper · Passed

DO NOT PASS, replaced with committee substitute

upper

Feb 7, 2025

Upper · Passed

DO PASS committee report adopted

upper

Jan 21, 2025

Introduced

Sent to Senate Conservation Committee & Senate Finance Committee

upper

4 primary · 0 co-sponsors