BLM leased 35 parcels totaling 34,596 acres in Utah for $4,492,000 in combined bonus bids and rentals, the agency said, in one of its quarterly oil and gas lease sales. The receipts split between the federal government and the state of Utah, where the parcels sit.
New royalty rate
The sale falls under a broader royalty policy change: the Working Families Tax Cut Act, also known as the One Big Beautiful Bill Act, resets the royalty rate on new federal onshore oil and gas production to a minimum of 12.5%. That reverses the 16.67% rate set under the Inflation Reduction Act.
BLM says the lower rate cuts the cost of doing business on public lands and makes development more attractive to industry, and that this should spur more leasing and drilling. BLM describes lease sales overall as support for domestic energy production and American energy independence, and says they contribute to the nation's economic and military security. It also points to Executive Order 14154, "Unleashing American Energy," as the policy behind the push, saying the sales help meet U.S. energy needs and position the country as a long-term global energy leader.
How the sale works
Leasing is the first step toward developing federal oil and gas resources. BLM reviews each sale against the National Environmental Policy Act of 1969 and other applicable law. A lease runs for a 10-year term, and longer as long as the parcel keeps producing oil and gas in paying quantities. Utah's parcels went through BLM's online Efficient Markets platform, with results posted on the National Fluid Lease Sale System.
BLM manages about 245 million acres of public land, most of it across 12 western states including Alaska, plus 700 million acres of subsurface mineral estate nationwide.
