“Four-State BLM Oil and Gas Lease Sales Rake in $22.8M, Boosting US Energy Security”

The Bureau of Land Management (BLM) recently leased 20 parcels of land across Louisiana, Michigan, Mississippi, and Utah, totaling 20,304 acres for oil and gas production. The leases, sold during quarterly sales, generated $22.8 million in total receipts. The income from these sales, a combination of lease bonus bids and rentals, is distributed between the federal government and the state where the parcels are located.

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The lease sale was conducted under the One Big Beautiful Bill Act, a legislation that resets the royalty rate for new federal onshore oil and gas production to a minimum of 12.5%, a reduction from the previous 16.67% rate set by the Inflation Reduction Act. By reducing the federal onshore royalty rate, the Act aims to lower the cost of doing business on public lands, making oil and gas development more economically attractive. This is expected to encourage additional leasing and drilling activity, thereby boosting domestic energy production and strengthening U.S. energy security.

The BLM’s lease sales are part of a broader strategy to support domestic energy production and American energy independence, contributing to the nation’s economic and military security. In line with Executive Order 14154, “Unleashing American Energy”, the lease sales are designed to meet the energy needs of U.S. citizens and establish the nation as a global energy leader. The BLM ensures that oil and gas development complies with the National Environmental Policy Act of 1969 and other legal authorities. Oil and gas leases are awarded for a term of 10 years and continue as long as oil and gas production remains profitable.