Submitted Photo Lower federal royalty rates are expected to boost lease sales and production on public lands, according to the Bureau of Land Management.

BILLINGS, Mont. – The Bureau of Land Management announced it raised more than $38 million in an oil and gas lease sale that included 23 parcels in Montana and North Dakota, totaling 7,604.47 acres.

This single sale not only outpaced the BLM’s entire national energy and timber receipts from the previous quarter but also underscores broad national support for American energy development, according to the BLM. Proceeds are shared between the federal government and the two states.

“This sale is a clear signal that investors and communities alike believe in the future of American energy,” said Acting BLM Director Bill Groffy. “By unlocking these resources, we are not only driving revenue back to Montana and North Dakota but also supporting jobs and reinforcing our nation’s ability to remain energy independent for generations to come.”

The more than $38 million in total receipts reflects a notable increase in interest by the oil and gas industry, driven in part by the development of significantly improved well economics through three-mile lateral drilling technology in the Bakken and Three Forks formations of eastern Montana.

Additionally, key parcels in North Dakota on U.S. Department of Agriculture’s Forest Service public lands contributed to the strong results.

This lease sale was conducted under the One Big Beautiful Bill Act, which restores 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. By lowering the federal onshore royalty rate from 16.67% to 12.5%, the cost of doing business on public lands is reduced, 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, the BLM stated in a news release.

The BLM also ensures oil and gas development meets the requirements set forth by the National Environmental Policy Act of 1969 and other applicable legal authorities.

Oil and gas leases are awarded for a term of 10 years and as long thereafter as there is production of oil and gas in paying quantities.