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BLM Oil and Gas Lease Sale in Montana, Dakotas Raises $130.2 Million

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The US Bureau of Land Management leased 63 oil and gas parcels covering 27,330 acres in Montana and the Dakotas, generating $130,207,102 in total receipts during its latest quarterly federal lease sale, it said in a Thursday statement.

The agency said proceeds from lease bonus bids and rentals are shared between the federal government and the states where the parcels are located.

The sale was conducted under the One Big Beautiful Bill Act, which sets the royalty rate for new federal onshore oil and gas production at a minimum of 12.5%.

The BLM said the law reverses the 16.67% rate established under the Inflation Reduction Act.

According to the agency, the lower royalty rate reduces operating costs for companies developing oil and gas resources on public lands and is expected to encourage additional leasing and drilling activity.

Federal oil and gas leases are issued for 10 years and continue beyond that term as long as oil or gas is produced in paying quantities, the BLM said.

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