Under New Mexico’s new geothermal leasing rule, companies developing state land can keep key details about their resources secret. The State Land Office recently approved the rule, which clears the way for geothermal energy development on state trust lands. It replaces the existing regulations in 19.2.7 NMAC and aligns with recent state legislative changes.
The rule gives the Land Commissioner the power to decide what information lessees can keep confidential. That includes details about the nature or extent of geothermal resources found on state land. In other words, a company drilling for geothermal energy doesn’t have to share what it finds with the public.
Under New Mexico’s new geothermal rule, companies can legally withhold what they discover on public land from the public.
That’s raising concerns among open government advocates. Christine Barber, executive director of the New Mexico Foundation for Open Government, has flagged the confidentiality provision as a transparency issue. She’s reminded others of how mining operators have tried to keep their discoveries secret in the past. The new rule could allow similar non-disclosure in the geothermal sector.
The public had a chance to weigh in before the rule was finalized. A public hearing was held on September 30, 2025, at Morgan Hall, 310 Old Santa Fe Trail in Santa Fe. Written comments were due by September 26, 2025, and could be sent to SLO-INFO@nmslo.gov. The Office of General Counsel presided over the hearing.
On the federal side, the Bureau of Land Management is planning a geothermal lease sale in New Mexico in June 2026. Under that program, 25% of bids, rentals, and royalties go to the U.S. Treasury. Another 25% goes to the county where the lease is located, and 50% goes to the State of New Mexico. Sales are conducted online through Efficient Markets, and the process follows federal environmental review requirements. The upcoming BLM sale reportedly covers 68 parcels spanning nearly 197,852 acres across five New Mexico counties.
Geothermal energy is a growing renewable energy source, and demand for it has been rising. New Mexico’s new rule is meant to modernize how the state handles geothermal leases and tap into that growing market. According to reports, a recent estimate put 163 gigawatts of geothermal power potential in New Mexico, more than 15 times what the state’s electric grids currently produce. Unlike solar and wind, geothermal plants operate with capacity factors typically exceeding 90% per industry standards, providing a reliable and continuous source of renewable energy without intermittency issues. But critics say the confidentiality loophole could limit public oversight of how state lands are being used.
References
- https://www.kunm.org/kunm-news-update/2026-04-23/thurs-new-leasing-rule-clears-path-for-geothermal-development-on-state-trust-lands-more
- https://www.blm.gov/announcement/blm-seeks-input-june-2026-geothermal-lease-sale-new-mexico
- https://www.nmstatelands.org/2025/08/28/state-land-office-proposes-new-rule-to-harness-geothermal-potential/
- https://nmpoliticalreport.com/2025/08/28/new-mexico-land-office-proposes-updated-geothermal-leasing-rules/
- https://www.law.cornell.edu/regulations/new-mexico/title-19/chapter-2/part-7
- https://www.srca.nm.gov/parts/title19/19.002.0007.html
- https://www.newsfromthestates.com/article/geothermal-industrys-groundwater-loophole-scrutinized
- https://news.unm.edu/news/releases-20250618
