BLM oil and gas lease sale in Montana, North Dakota brings over $21 million

BILLINGS, Mont. — The Bureau of Land Management (BLM) leased 20 parcels totaling 3,388 acres in Montana and North Dakota for $21,339,550 in total receipts during a quarterly oil and gas lease sale, the agency said.

According to the BLM, combined lease bonus bids and rentals are distributed between the federal government and the state where the parcels are located. The sale was conducted under the Working Families Tax Cut Act. The agency said the act resets the royalty rate for new federal onshore oil and gas production to a minimum of 12.5%, reversing the 16.67% rate set by the Inflation Reduction Act.

The BLM said the lower rate is expected to spur additional leasing and drilling activity. Oil and gas leases are awarded for a term of 10 years and as long thereafter as there is production of oil and gas in paying quantities, the agency said. Leasing is the first step in the process to develop federal oil and gas resources, according to the BLM.