Department of the Interior Oil and Gas Lease Sale in New Mexico and Texas Generates Over $4 Billion

The Department of the Interior generated over $4 billion in total receipts from a Bureau of Land Management oil and gas lease sale in New Mexico and Texas, underscoring strong industry demand for domestic energy development on public lands. 

The Bureau of Land Management leased 74 parcels totaling 33,530 acres during the quarterly lease sale. Combined bonus bids and rental payments from the sale totaled approximately $4,007,944,870. Revenue generated through lease sales is shared between the federal government and the states where the parcels are located. 

“America is sitting on some of the richest energy resources in the world, and President Donald J. Trump is committed to putting those resources to work for the American people,” said Secretary of the Interior Doug Burgum. “This over $4 billion lease sale is another sign that President Trump’s American Energy Dominance Agenda is delivering results. By cutting costs and removing barriers to development, we are unleashing American energy, strengthening national security, creating jobs and generating significant revenue for taxpayers and local communities.”  

The sale was conducted under the Working Families Tax Cuts Act, which lowered the federal royalty rate for new onshore oil and gas production to 12.5%, reversing the 16.67% rate established under the Inflation Reduction Act. The lower royalty rate reduces costs for energy producers operating on public lands and is expected to encourage additional investment, leasing and drilling activity across the West. Oil and gas lease sales support reliable domestic energy production, strengthen American energy independence and help ensure the United States remains a global energy leader. Increased production on federal lands also supports manufacturing, transportation and national defense while helping stabilize energy costs for American families and businesses. 

Consistent with Executive Order 14154, “Unleashing American Energy,” the Department of the Interior and Bureau of Land Management continue to support responsible energy development on public lands while ensuring projects comply with the National Environmental Policy Act and other applicable laws. Leasing is the first step in the process to develop federal oil and gas resources. Oil and gas leases are issued for a term of 10 years and continue as long as oil and gas are produced in paying quantities. 

Additional information on current and upcoming lease sales is available through the National Fluid Lease Sale System.