DOI Announces Oil and Gas Leasing Process Rule to Reflect IRA Provisions

On April 12, 2024, DOI announced a final rule to revise BLM’s oil and gas leasing regulations and codify fiscal provisions in IRA section 50262. The Fluid Mineral Leases and Leasing Process rule revises outdated fiscal terms to reflect IRA provisions, including increasing minimum royalty rates, bid amounts, and rental rates, and introducing a $5/acre fee for expressions of interest. Another key change is the establishment of a preference to offer lands for lease that are close to existing infrastructure or have high potential for oil and gas production with the goal of discouraging development on wildlife habitat and cultural sites. The rule also increases the minimum lease bond and the minimum statewide bond amounts and eliminates nationwide and unit bonds.