First lease sale under new legislation lowers royalty rates and plans to boost domestic energy development
The Bureau of Land Management (BLM) in New Mexico has leased 16 parcels totaling over 7,500 acres, generating more than $58 million in revenue during its quarterly oil and gas lease sale. The proceeds will be split between the federal government and the state. This marks the first sale conducted under the One Big Beautiful Bill Act, which reduced the federal royalty rate for onshore oil and gas leases from 16.67 percent to 12.5 percent. The change—intended to reduce operating costs for energy companies—is expected to encourage further exploration and drilling activity on public lands.
According to the Department of the Interior, the updated royalty structure is part of a broader initiative to increase U.S. energy production and reduce dependence on foreign sources.
“This successful lease sale is another strong step toward restoring American Energy Dominance… we are unleashing the full potential of our public lands, lowering energy costs for hardworking Americans and strengthening our national and economic security…,” said Secretary of the Interior Doug Burgum.
The BLM emphasized that all leases must comply with environmental regulations, including the National Environmental Policy Act. Leases are awarded for an initial 10-year term and can be extended with ongoing production.
As the Lord Leads, Pray with Us…
- For environmental and economic balance and that the development of public land resources would be managed in a way that protects ecosystems while supporting responsible energy production.
- For Secretary Burgum and BLM officials to approach resource management with clarity and care.
- For communities impacted by energy development, both in New Mexico and nationwide, to benefit from economic opportunities while being safeguarded against environmental and health risk.
Sources: Department of the Interior
