New Mexico Gambles on Higher Royalties as Oil Prices Tank

While West Texas Intermediate (WTI) oil prices have slipped nearly $3.50 a barrel since January—hovering uncomfortably around $68—New Mexico lawmakers just gave oil producers something else to stew over: higher royalty rates. Senate Bill 23, which passed the House of Representatives on Thursday, is now sitting on Governor Michelle Lujan Grisham’s desk. The bill raises the maximum royalty rate on the state’s premium oil and gas leases from 20% to 25%—the first change since 1970, when disco was en vogue and the EPA started…