Federal lands opened to expanded oil leasing

Summary

A combination of the National Energy Emergency declaration, Interior Secretary Burgum's Secretarial Order 3418 ("Unleashing American Energy," February 3, 2025), and the One Big Beautiful Bill Act expanded oil and gas leasing, drilling and coal leasing on federal public lands, including reopening the 1.56 million-acre Arctic National Wildlife Refuge coastal plain to leasing and reducing the royalty rate companies pay on onshore oil and gas.

What happened

The OBBBA required BLM to hold at least four onshore oil and gas lease sales each fiscal year in specified states and cut the onshore royalty rate from 16.67% to 12.5%, reducing public revenue from the resource. DOI opened the full 1.56 million-acre ANWR Coastal Plain to oil and gas leasing under a new Record of Decision reverting to the Trump-era plan. In May 2026 BLM finalized a full rescission of the 2024 Conservation and Landscape Health (Public Lands) Rule, effective June 11, 2026, eliminating provisions that let third parties obtain leases for restoration or mitigation on public lands. The administration held 22 lease sales in 2025 generating $356.6 million in total revenue - which BLM said was more than in all four Biden years combined - leasing approximately 328,000 acres across 369 parcels in 10 states.

Impact on the United States

The OBBBA cut the onshore oil and gas royalty rate from 16.67% to 12.5%, so taxpayers receive less per barrel extracted from publicly owned resources. Taxpayers for Common Sense estimates that about 244,000 of the roughly 327,000 acres leased in 2025 were leased at the lower rate, an estimated $489 million in foregone royalty revenue over projected production.

Documented effects

1. BLM approved 6,027 drilling permits in 2025 - the most in 15+ years - and held 22 lease sales covering approximately 328,000 acres across 369 parcels generating $356.6 million.[1]
2. Oct 2025DOI opened the full 1.56 million-acre ANWR Coastal Plain to oil and gas leasing, replacing the Biden-era leasing program with the earlier Trump-era plan.[1][2]
3. Jan 2026Roughly 244,000 of the ~327,000 acres leased in 2025 were leased at the reduced 12.5% royalty rate, an estimated $489 million in foregone royalty revenue from projected production, per Taxpayers for Common Sense[4]

Why this is rated significant

Expanded leasing and reduced royalties cut public revenue and affect public lands, but long-term land-use consequences are not yet fully realized.

Corrections & updates [7]

Every change to a fact on this page after publication is logged here, newest first.

1. Sep 29, 2026CorrectedWhat happened

   The entry said the One Big Beautiful Bill Act "mandated rolling lease sales through 2040." BLM's implementing memo (IM 2026-018) says the law requires at least four onshore lease sales each fiscal year in specified states, and cuts the onshore royalty rate from 16.67% to 12.5%. The entry also said a "January 2025" ANWR sale drew no bids from major oil companies. That sale took place before the October 2025 decision described in the same sentence, and no cited source supports the claim, so it is removed.[3][2]

2. Sep 29, 2026CorrectedSource

   Earthjustice is an environmental advocacy law firm, not a major news outlet. It is relabeled Tier 3. The ANWR acreage still needs an official Interior Department source.[2]

3. Sep 29, 2026ClarifiedSummary

   Clarified that the comparison with revenue in all four Biden years is the Bureau of Land Management's own claim.[1]

   + Show previous and current text- Hide previous and current text

   Previously

   BLM issued a 28-day permit-processing mandate for drilling Applications in April 2025. The OBBBA required BLM to hold at least four onshore oil and gas lease sales each fiscal year in specified states and cut the onshore royalty rate from 16.67% to 12.5%, reducing public revenue from the resource. DOI opened the full 1.56 million-acre ANWR Coastal Plain to oil and gas leasing under a new Record of Decision reverting to the Trump-era plan. DOI also rescinded conservation leasing rules that had allowed BLM to issue leases for wildlife habitat and carbon sequestration on public land. The administration held 22 lease sales in 2025 generating $356.6 million in total revenue - more than in all four Biden years combined - leasing approximately 328,000 acres across 369 parcels in 10 states.

   Now

   BLM issued a 28-day permit-processing mandate for drilling Applications in April 2025. The OBBBA required BLM to hold at least four onshore oil and gas lease sales each fiscal year in specified states and cut the onshore royalty rate from 16.67% to 12.5%, reducing public revenue from the resource. DOI opened the full 1.56 million-acre ANWR Coastal Plain to oil and gas leasing under a new Record of Decision reverting to the Trump-era plan. DOI also rescinded conservation leasing rules that had allowed BLM to issue leases for wildlife habitat and carbon sequestration on public land. The administration held 22 lease sales in 2025 generating $356.6 million in total revenue - which BLM said was more than in all four Biden years combined - leasing approximately 328,000 acres across 369 parcels in 10 states.

4. Sep 29, 2026UpdatedKey facts

   Updated: Taxpayers for Common Sense's 2025 review estimates that about 244,000 of the roughly 327,000 acres leased in 2025 were leased at the lowered 12.5% royalty rate, costing an estimated $489 million in royalty revenue from projected production.[4]

5. Sep 29, 2026CorrectedWhat happened

   The entry said BLM issued a 28-day permit-processing mandate in April 2025; no source for this could be found and it is removed. The conservation-leasing rescission is now dated and cited: BLM finalized a full rescission of the 2024 Conservation and Landscape Health (Public Lands) Rule on May 12, 2026, effective June 11, 2026, eliminating leases for restoration or mitigation (not 'wildlife habitat and carbon sequestration'). Secretarial Order 3418 is cited to Interior's order library, and the ANWR reopening to BLM's own report. The unsourced 'unprecedented' and 'maximum' wording is removed.[1][5][6]

6. Sep 29, 2026CorrectedUS impact

   The US-impact text said public lands generate $887 billion a year in recreation, provide habitat for 3,000 species, and named the Piceance Basin and Red Desert as at risk. No cited source gives these figures or places; they are removed. The text now states the royalty change and the Taxpayers for Common Sense estimate already cited in the entry. The headline, subtitle and severity note no longer call the leasing a 'record': BLM reports the most drilling permits in 15 years and more lease-sale revenue than in the four Biden years combined.[1][3][4]

7. Sep 29, 2026CorrectedCost estimate

   The $489M royalty loss estimated by Taxpayers for Common Sense is lost on future production from leases sold in 2025, not money already lost, and about half of onshore royalties go to states. The entry now books nothing as realized and about $245M (the federal half) over the forecast. The 2025 bonus bids are no longer credited as a saving because lower royalty rates did not raise bids or leasing. The unsourced climate-cost figure was removed.

   Previously

   $489M so far ($950M cost - $461M savings); $4B / $6.5B federal 10yr/15yr; $9B broader 10yr

   Now

   $0 so far; $245M / $245M federal 10yr/15yr; $0 broader 10yr

Sources [6]