# Sell New Mexico Mineral Rights | Delaware Basin, Lea & Eddy | Berlin Royalties > Sell New Mexico mineral rights and Delaware Basin royalties in Lea and Eddy County. The 2025 State Land Office 25 percent royalty, oil and gas proceeds withholding for nonresidents, Creson deduction rule, and fee mineral values. Source: https://www.berlinroyalties.com/new-mexico/ Publisher: Berlin Royalties, a veteran-owned oil and gas mineral and royalty buyer in Tulsa, Oklahoma, buying for its own account since 2014. Call or text 918-984-1645. License: free to quote and cite with attribution to Berlin Royalties and a link to the source URL. Where We Buy ยท New Mexico ## Sell your New Mexico mineral rights and royalties. Lea and Eddy County minerals sit over the most valuable rock in North America. They are also the most misunderstood, because so much of New Mexico is state and federal land that fee minerals here are scarce and priced accordingly. [Get a Free Valuation](https://www.berlinroyalties.com/free-valuation/) or call or text [918-984-1645](tel:9189841645) New Mexico is the highest value oil acreage in the United States and one of the least well served states for mineral owners looking for straight information. The searches return a Texas broker, a directory, and a series of template pages. Berlin buys New Mexico minerals and royalties, concentrated in Lea and Eddy County in the northern Delaware Basin, with interest in the San Juan Basin as well. Two things about New Mexico that shape everything else: fee minerals here are relatively scarce because so much acreage is state trust or federal, and the state's tax structure touches both your ongoing royalty and your eventual sale in ways it does not elsewhere. ## The 2025 state royalty change, and why it is your comparable In June 2025, **Senate Bill 23** raised the maximum royalty on new **State Land Office** oil and gas leases from **20 percent to 25 percent**, applied to new leases in the most productive areas of southeast New Mexico, which means Eddy and Lea Counties. It took effect June 20, 2025. This does not change your fee royalty. It matters anyway, for a reason that is worth understanding: it reset the reference price for southeast New Mexico acreage. The **first auction at the new 25 percent rate**, in July 2025, drew 14 leases, more than $56 million in bonuses, and a record high bid of over **$80,000 per acre**, well above the prior record. A second sale in August 2025 exceeded **$250 million**. Those numbers are the market speaking about what northern Delaware Basin rock is worth, in public, on the record. When someone offers you a number on a Lea County fee mineral interest, that is the backdrop. We will show you how we got from those comparables to your specific tract, and we would encourage you to ask any other buyer to do the same. ## Are you a mineral owner or a lessee? This sounds like a technicality and it is not. A large share of New Mexico minerals are held by the **State Land Office** or the **federal government through the BLM**. Many people who receive New Mexico oil and gas checks hold an interest under a state or federal lease rather than a **fee mineral interest** in the ground. The two are different assets. A fee mineral interest is perpetual real property that can be sold, leased again at the end of a term, and passed down. Interests derived from state or federal leases have different terms, different transfer requirements, and different durations. Send us what you have and we will tell you which one you own. That research is free and we do it whether or not there is a transaction in it. ## Deductions: New Mexico is a wellhead value state In ***Creson v. Amoco Production Co.***, 2000-NMCA-069, 129 N.M. 778, the New Mexico Court of Appeals held that "net proceeds at the well" means value **after** the lessee delivers gas at the surface but **before** the lessee adds value through processing or transportation. Compression, dehydration, and gathering are deductible. The Tenth Circuit's treatment in *Elliott Industries v. Conoco*, 407 F.3d 1091 (10th Cir. 2005), is related authority. New Mexico is therefore a **wellhead value** state rather than a clean first marketable product state. It sits closer to [Kansas](https://www.berlinroyalties.com/kansas/) and [North Dakota](https://www.berlinroyalties.com/north-dakota/) than to [Colorado](https://www.berlinroyalties.com/colorado/) or [Wyoming](https://www.berlinroyalties.com/wyoming/). Because the default runs toward the operator, your **lease language carries real weight**. A New Mexico gas royalty under a silent lease and one under a strong no deductions clause are meaningfully different cash flows. Our [royalty statement decoder](https://www.berlinroyalties.com/royalty-statement-decoder/) explains the deduction lines. ## Five taxes, not one New Mexico's production tax burden is layered and the components are rarely listed anywhere an owner can find them. The combined burden runs roughly **8.3 percent on oil and 9.0 percent on gas**. | Component | Rate | | Oil and Gas Severance Tax, NMSA 7-29-4.1 | 3.75 percent base, tiered down to 1.88 percent || Emergency School Tax, NMSA 7-31-4.1 | Oil 3.15 percent (to 1.58 percent at low prices); gas 4.00 percent (to 2.00 percent) || Conservation Tax, NMSA 7-30-4.1 | 0.19 percent, 0.24 percent for oil above a WTI threshold || Ad Valorem Production Tax, NMSA 7-32-1 et seq. | Local mill rate on 50 percent of taxable value || Production Equipment Ad Valorem Tax | Varies | Stripper incentive rates exist, with the school tax dropping to 2.36 percent on oil and 3.00 percent on gas for qualifying production. Tier thresholds change; verify current figures with the New Mexico Taxation and Revenue Department. ## The withholding out of state owners ask us about New Mexico requires anyone paying **oil and gas proceeds** from a New Mexico well to a **nonresident** to withhold New Mexico tax. NMSA 1978 chapter 7, article 3A, and specifically section 7-3A-3. This is a withholding on your **ongoing royalty stream**, which is different from the closing withholding [Colorado](https://www.berlinroyalties.com/colorado/) and [West Virginia](https://www.berlinroyalties.com/west-virginia/) impose on sales of real property. The Taxation and Revenue Department directs taxpayers to the Form RPD-41284 instructions for the current rate rather than publishing it on the overview page, so check there. The practical effect: a nonresident New Mexico royalty owner should be filing a New Mexico nonresident return to reconcile the withholding, and many are not. New Mexico's top individual rate is **5.90 percent**. On a sale, nonresidents are taxed on New Mexico source income, and gain on New Mexico real property is New Mexico source. See [taxes when you sell mineral rights](https://www.berlinroyalties.com/mineral-rights-capital-gains-tax/). New Mexico is also a **community property** state, which matters for how minerals held during a marriage are characterized. See [mineral rights in a divorce](https://www.berlinroyalties.com/divorce-mineral-rights/). ## What actually moves a New Mexico interest's value - **Which bench, and how many.** Northern Delaware acreage carries stacked Bone Spring and Wolfcamp targets. The count of remaining locations under your tract is the largest single valuation variable, and it is what a check based offer ignores entirely. - **Fee versus state versus federal.** See above. This decides what you are even selling. - **Section and township, not county.** Lea and Eddy contain both world class rock and ordinary rock. A generic Lea County number is not a valuation. - **Water and takeaway.** Delaware Basin economics carry real water disposal costs and periodic gas takeaway constraints that show up in realized prices. - **Operator.** Occidental, ConocoPhillips, Devon, Coterra, Mewbourne, EOG, Matador, and Permian Resources all operate here at different paces. Our [operator directory](https://www.berlinroyalties.com/operators/) has contacts. ## Statutes and primary sources - **Oil and gas proceeds withholding for nonresidents**, [NMSA 1978 section 7-3A-3](https://law.justia.com/codes/new-mexico/chapter-7/article-3a/section-7-3a-3/) and the [Taxation and Revenue Department overview](https://www.tax.newmexico.gov/all-nm-taxes/2020/10/22/oil-and-gas-proceeds-withholding-tax/) - **Production taxes**, NMSA sections 7-29-4.1, 7-31-4.1, 7-30-4.1, and 7-32-1 et seq.; see the [production taxes overview](https://www.tax.newmexico.gov/all-nm-taxes/2020/10/22/oil-gas-production-taxes/) - *Creson v. Amoco Production Co.*, 2000-NMCA-069, 129 N.M. 778 - **State Land Office 25 percent royalty**, SB 23 (2025), effective June 20, 2025: [nmstatelands.org](https://www.nmstatelands.org/2025/07/15/new-mexico-state-land-office-smashes-records-as-it-auctions-first-oil-gas-leases-at-newly-created-25-royalty-rate-championed-by-commissioner-stephanie-garcia-richard/) - **Oil Conservation Division**, NM Energy, Minerals and Natural Resources Department: [emnrd.nm.gov/ocd](https://www.emnrd.nm.gov/ocd/). See our [well records by state](https://www.berlinroyalties.com/well-records/) page. - Land records are held by **county clerks**. New Mexico has no statewide official portal. Last reviewed August 2026. Tax tiers and withholding rates change. Berlin Royalties is a mineral buyer and a landman shop, not a law firm or a tax advisor, and this page is general information rather than advice about your interest. ## Where to start Also see our [Delaware Basin page](https://www.berlinroyalties.com/texas/delaware-basin/) and the [basin index](https://www.berlinroyalties.com/basins/). Send a check stub, a lease, a deed, or a legal description. We will tell you whether you hold a fee mineral interest or a state or federal derived interest, what has been drilled and permitted on and around it, what it is worth and how we got there, and whether you should sell at all. Free, no obligation. Out of state owners should also read [out of state mineral owners](https://www.berlinroyalties.com/out-of-state-mineral-owners/). Formations & Plays ## What produces here ### Delaware Basin (Bone Spring & Wolfcamp) The northern Delaware under Lea and Eddy is the most valuable oil acreage in the United States by most measures. Stacked Bone Spring and Wolfcamp benches mean one tract can be drilled a dozen times. ### Northwest Shelf The shelf edge across northern Lea County, with shallower targets and a long conventional history running back to the 1920s. ### San Juan Basin Northwest New Mexico gas and coalbed methane in San Juan and Rio Arriba. Mature and declining, with deeply fractional ownership and old, complicated title including allotted lands. Counties ## Where we're most active [Lea County](https://www.berlinroyalties.com/new-mexico/lea-county/) [Eddy County](https://www.berlinroyalties.com/new-mexico/eddy-county/) [San Juan Basin](https://www.berlinroyalties.com/basins/san-juan/) [San Juan County](https://www.berlinroyalties.com/new-mexico/san-juan-county/) [Rio Arriba County](https://www.berlinroyalties.com/new-mexico/rio-arriba-county/) [Chaves County](https://www.berlinroyalties.com/new-mexico/chaves-county/) [Roosevelt County](https://www.berlinroyalties.com/new-mexico/roosevelt-county/) Sandoval Union Lea and Eddy are where the value is concentrated, and we review interests statewide including the San Juan Basin. ### The New Mexico mineral owner's guide Everything a New Mexico owner needs in one place: who owns what under state law, how royalties must be paid and by when, what a buyer can and cannot deduct, the tax treatment of a sale, and the deadlines that quietly cost people their minerals. Free, and no sign-up. [Read the New Mexico guide](https://www.berlinroyalties.com/guide/new-mexico/) Questions ## Straight answers for New Mexico owners Why did New Mexico raise its state land royalty to 25 percent and does it affect my fee minerals? Senate Bill 23, effective June 20, 2025, raised the maximum royalty on new State Land Office oil and gas leases from 20 percent to 25 percent, applied to new leases in the most productive areas of southeast New Mexico, meaning Eddy and Lea Counties. It does not change your fee royalty directly. It matters to you because it resets the market's reference point for what southeast New Mexico acreage is worth. The first auction at the new rate in July 2025 drew more than $56 million in bonuses and a record high bid over $80,000 per acre, and an August 2025 sale exceeded $250 million. Those are the comparables sitting behind any honest valuation of a Lea or Eddy fee mineral interest. I live in California and receive New Mexico royalties. Why is money being withheld? Because New Mexico requires it. Anyone paying oil and gas proceeds from a New Mexico well to a nonresident must withhold New Mexico tax under NMSA 1978 chapter 7 article 3A, specifically section 7-3A-3. This is a withholding on ongoing royalty payments, which is different from the closing withholding some states impose on real property sales. Check the current rate on the Taxation and Revenue Department's Form RPD-41284 instructions, and file a New Mexico nonresident return to reconcile it. New Mexico's top individual rate is 5.90 percent. Can the operator deduct compression and gathering from my New Mexico royalty? Generally yes. New Mexico is a wellhead value state. In Creson v. Amoco Production Co., 2000-NMCA-069, the Court of Appeals held that net proceeds at the well means value after the lessee delivers gas at the surface but before the lessee adds value through processing or transportation, so compression, dehydration, and gathering are deductible. New Mexico is not a clean first marketable product state, which puts it with Kansas and North Dakota rather than with Colorado and Wyoming. Your lease language is what decides how far the deductions go. How much does New Mexico take in severance taxes? More than most people realize, because it is five separate taxes rather than one. The combined burden runs roughly 8.3 percent on oil and 9.0 percent on gas. The components are the Oil and Gas Severance Tax at a 3.75 percent base tiered down to 1.88 percent, the Emergency School Tax at 3.15 percent for oil and 4.00 percent for gas with reductions at low prices, the Conservation Tax at 0.19 percent, an Ad Valorem Production Tax at a local mill rate on 50 percent of taxable value, and a Production Equipment Ad Valorem Tax. Stripper incentive rates exist. These come off before your royalty is calculated. Do I actually own minerals in New Mexico or am I a state or federal lessee? Worth checking, because New Mexico has an unusually large share of state trust and federal (BLM) minerals, especially in the southeast. Many people who describe themselves as New Mexico mineral owners hold a royalty under a state or federal lease rather than a fee mineral interest, and the two are valued and conveyed differently. Send us what you have and we will tell you which one you own, free. ## Before you sign anything in New Mexico The things owners here most often wish they had read first. All free, none of it gated. - [How mineral rights are valued](https://www.berlinroyalties.com/mineral-rights-value/), including the rule of thumb people quote and why it is usually wrong - [Selling mineral rights](https://www.berlinroyalties.com/sell-mineral-rights/) and [selling oil and gas royalties](https://www.berlinroyalties.com/sell-oil-and-gas-royalties/), with the real process and timeline - [The Pugh clause](https://www.berlinroyalties.com/pugh-clause/), the single most valuable sentence you can negotiate into a lease - [What a farm out is](https://www.berlinroyalties.com/farmout-agreements/), and why your operator suddenly changed - [The rule of capture](https://www.berlinroyalties.com/rule-of-capture/), and why a neighbor's well can legally drain your minerals - [Non-participating royalty interests](https://www.berlinroyalties.com/non-participating-royalty-interest/), if your deed carved one out - [Executive rights](https://www.berlinroyalties.com/executive-rights/), if somebody else signs the lease that binds your minerals - [Surface owner rights](https://www.berlinroyalties.com/surface-owner-rights/), if you own the ground and someone else owns what is under it - [Questions to ask a buyer](https://www.berlinroyalties.com/questions-to-ask/) and [what happens if you want out after signing](https://www.berlinroyalties.com/can-i-back-out-of-a-mineral-rights-sale/) Free Valuation ## Find out what your New Mexico minerals are worth. Free, no obligation, and no pressure. We reply within one business day, usually faster. Prefer the phone? Call or text [918-984-1645](tel:9189841645) and you will get Stephen, the owner, not a call center. If we miss you, we text back the same day. Your Name Phone Number Email Address Where are your minerals located? OklahomaTexasNew MexicoLouisiana ArkansasKansasNorth DakotaMontana WyomingColoradoUtahCalifornia West VirginiaOhioPennsylvaniaKentucky MichiganMississippiAlabamaAlaska Sand/Gravel/AggregateOther / Not sure County (if known) Interest type Select an option Minerals and Royalties Working Interest Overriding Royalty Interest An Entity (LLC, Partnership, Trust) Not Sure Are you currently receiving royalty checks? Select an option Yes No I Used To But They Stopped Not Sure Have you received offers for your minerals before? Select an option Yes No What best describes your situation? Select an option I'm ready to sell now I'm exploring my options I'm just curious what they're worth Anything else? (optional) Get My Free Valuation No cost, no obligation, and we never share your information.