The US Bureau of Land Management on Tuesday said it generated $4,492,000 in total receipts after leasing 35 parcels totaling 34,596 acres in Utah during a quarterly oil and gas lease sale.
The lease sale was carried out under the Working Families Tax Cut Act, which lowers the new federal onshore oil and gas production royalty rate to a minimum of 12.5% as opposed to the 16.67% rate under the Inflation Reduction Act, thereby making oil and gas development more economically attractive to industry, the BLM said in a statement.
Leasing is the first step in developing federal oil and gas resources, with the BLM ensuring projects comply with environmental and other legal requirements. Oil and gas leases are typically issued for 10 years and can continue as long as the lease produces oil or gas in paying quantities, the statement said.
"Combined lease bonus bids and rentals are distributed between the federal government and state where parcels are located," the statement added.