Wyoming oil and gas lease sale pulls in nearly $17.5M under new federal royalty rules

The original story by Ron Richter for Sheridan Media.

A recent federal oil and gas lease sale in Wyoming brought in just under $17.5 million as companies bid on drilling rights across the state, the Bureau of Land Management (BLM) announced.

In its quarterly lease sale, the BLM leased 86 parcels covering 79,169 acres in Wyoming. The money raised — a mix of bonus bids and rental payments — is split between the federal government and the state where the parcels are located.

This sale was held under the new One Big Beautiful Bill Act, which lowered the royalty rate for new federal onshore oil and gas production to a minimum of 12.5%. That reverses the higher 16.67% rate that had been set under the Inflation Reduction Act.

Supporters say the lower royalty rate cuts the cost of doing business on public lands, making drilling more attractive to oil and gas companies. Federal officials expect that to encourage more leasing and drilling activity, boost domestic energy production and, in theory, improve US energy security.

Leasing is just the first step in developing federal oil and gas resources. Before any drilling happens, projects still have to clear environmental reviews under the National Environmental Policy Act and other federal laws.

Leases are issued for an initial 10-year term and can continue beyond that as long as they’re producing oil or gas in paying quantities.