Carlsbad-An Oct. 3 competitive sale of potash leases on three 320-acre parcels administered by the Bureau of Land Management in Eddy County netted $776,000 in revenue. Intrepid Potash Co. was the high bidder on two of the parcels, paying $425 and $650 per acre for the parcels (totaling $136,000 and $208,000, respectively); Mosaic Potash paid $1,350 per acre for the third parcel, with a total bid of $432,000. The leases are awarded for a period of 20 years. The federal government will receive a 5 percent royalty on production from the leases. Half of the revenues from the lease sale and subsequent production are returned to the U.S. Treasury, and half go to the state where the lease occurs. The parcels were nominated for leasing earlier this year. This is the first sale of potash leases by the BLM since 1992.
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