DOI Finalizes Fluid Mineral Leases and Leasing Process Rule with Updated Fiscal Terms Reflecting IRA Provisions

On April 12, 2024, DOI announced a final rule to revise the Bureau of Land Management (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 The Fluid Mineral Leases and Leasing Process rule revises outdated fiscal terms to reflect IRA provisions through increasing minimum royalty rates, bid amounts, and rental rates, and introducing a $5/acre fee for expressions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 BLM’s 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 oil and gas development on important wildlife habitats and cultural sites. The rule also increases the minimum lease bond and the minimum statewide bond amounts while eliminating nationwide and unit bonds.