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BLM Raises $35.3 Million in Colorado Lease Auction as Lower Royalty Rate Takes Effect

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The Bureau of Land Management generated $35.3 million from a Colorado lease sale covering 147 parcels as new federal royalty rules aim to boost energy development, the BLM said Tuesday.

BLM conducted the quarterly oil and gas lease sale under the One Big Beautiful Bill Act, while lease bonus bids and rental payments from the auction will be shared between the federal government and the state where the parcels are located.

Under the legislation, the minimum royalty rate for new federal onshore oil and gas production fell to 12.5% from 16.67%, reversing the higher rate established under the Inflation Reduction Act, BLM said.

The lower royalty rate could encourage additional leasing and drilling activity by improving project economics on public lands, supporting higher domestic energy production and strengthening US energy security, the Bureau added.

Aligned with Executive Order 14154, "Unleashing American Energy," the Bureau of Land Management said its lease sales help meet US energy demand while supporting economic, military and energy security objectives.

The leases carry an initial 10-year term and remain active beyond that period as long as oil and gas production continues in paying quantities, according to the Bureau of Land Management.

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