Section 50261 of the IRA amends section 8(a)(1) of the Outer Continental Shelf Lands Act, 43 U.S.C. § 1337(a)(1), to increase the minimum royalty rate for oil and gas production on the Outer Continental Shelf from 12.5% to 16.66%. The section also caps the maximum royalty that can be charged for oil and gas production on the Outer Continental Shelf for the next ten years at 18.75%. Once the cap expires (i.e., ten years after enactment of the IRA), only the statutory minimum will apply.
Current Status:
Section 50102 of the One Big Beautiful Bill Act of 2025 (Public Law 119-21) repealed this IRA provision.
Trump Administration Actions:
- Congress Passes Budget Bill, Rescinding Funds and Repealing IRA Programs and Tax Credits [07/03/2025]
- Litigation Compliance Report Indicates DOI Released Some Previously Frozen Awards [04/23/2025]
- DOI Secretary Issues Order to Review IRA Regulations and Spending [02/03/2025]
- OMB Orders Temporary Pause on Financial Assistance Programs, Later Rescinded [01/27/2025]
- OMB Clarifies Scope of the Order to Halt IRA Spending [01/21/2025]
- Trump Issues Executive Order to Halt All IRA Funding Disbursements [01/20/2025]
Implementation Status at End of Biden Administration:
This provision directly alters royalty rates for oil and gas production on the Outer Continental Shelf, and thus does not require implementing actions from DOI.