U.S. Department of Interior and leasing agent Bureau of Land Management said Monday the Biden administration is reducing the acreage offered in the next round of sales of new oil and gas leases for onshore federal lands by 80 percent and increasing the royalty rate to 18.75 percent from the current 12.5 percent. Auctions are expected to be held later this year. BLM said 173 parcels spanning about 144,000 acres will be available. Oil & Gas Journal said 733,000 acres had been nominated for the sales to BLM.
Sen. John Barrasso, R-Wyoming, said, “After begging American oil and natural gas companies for months to produce more, the Biden administration is still doing all it can to restrict leasing on federal lands.” President Joe Biden paused oil and gas lease sales in January 2021 after campaign promises to ban new permitting on federal lands, but a federal judge ruled last June the moratorium was unlawful. The upcoming BLM sales will be the first under the Biden administration.