(WO) — U.S. Bureau of Land Management lease sales across Colorado, Nevada and Utah generated $64.8 million in total revenue, reflecting continued interest in federal onshore acreage.
An oil and gas drill rig and pad near Railroad Valley, NV. (Image source: The Bureau of Land Management)
The agency leased 136 parcels covering 131,121 acres during its latest quarterly sale, with revenue distributed between federal and state governments.
Utah accounted for the majority of proceeds, generating $56.4 million from 57 parcels totaling 68,632 acres. Colorado lease sales brought in $8.1 million across 68 parcels, while Nevada generated $294,405 from 11 parcels.
The sales were conducted under updated federal policy that lowers royalty rates for new onshore oil and gas production to a minimum of 12.5%, down from 16.67%.
Officials said the lower rate is expected to improve project economics and encourage additional leasing and drilling activity on public lands.
“Oil and gas lease sales support domestic energy production and American energy independence, while contributing to the nation’s economic and military security.”
Leasing marks the first step in developing federal oil and gas resources, with projects subject to environmental review and regulatory approval before drilling can begin.
Federal leases are issued for an initial 10-year term and remain active as long as oil or gas is produced in paying quantities.
