The Interior Department plans to reveal this week which plots of federal lands will be available in the newly-announced oil and gas lease sale.
At least 144,000 acres will be available after the Bureau of Land Management analyzed 646 parcels on nearly 733,000 acres of federal land, including the small amount of acreage that is available for leasing in Oklahoma. It’s not yet known whether any of the available leases will be in Oklahoma.
The 733,000 acres were in Oklahoma, Alabama, Colorado, Montana, Nevada, New Mexico, North Dakota, Utah and Wyoming. The available leases will be available on 173 parcels, an 80% reduction from the acreage that was originally nominated.
The BLM plans to issue sale notices this week for the upcoming oil and gas lease sales. The notices will also include the first-ever increase in the royalty rates to 18.75%. The old rate was 12.5%.
The Interior Department, in announcing the availability of the leases said the increase in royalty rates was “to ensure fair return for the American taxpayer and on par with rates charged by states and private landowners.”
Despite the announcement, it could take at least six months to a year before new drilling on the federal lands could produce more oil and gas.
President Biden has been searching for ways to improve his standing with the public as polls show him down to only about a 33% approval rating. His administration believes that by lowering the price of gasoline, he can receive more support from voters.
