A change in royalty rates for federal onshore oil and gas production has increased oil and gas lease sales in Utah. The Bureau of Land Management made the announcement on Tuesday, sharing that the BLM leased 35 parcels totaling 34,596 acres in Utah for $4,492,000 in total receipts during the quarterly oil and gas lease sale. “This lease sale was conducted under the Working Families Tax Cut Act, which 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,” shares the announcement. “By lowering the federal onshore royalty rate from 16.67% to 12.5%, the Working Families Tax Cut Act, also known as the One Big Beautiful Bill Act, reduces the cost of doing business on public lands, making oil and gas development more economically attractive to industry. This is expected to spur additional leasing and drilling activity, which in turn supports increased domestic energy production and strengthens U.S. energy security.” Leasing is the first step in developing federal oil and gas resources. For the entire announcement, visit www.blm.gov.
Photo: BLM photo of a pump jack on public lands in Utah