Federal Register #2026-08280

Regulatory Update: BLM Revises Oil & Gas Lease Royalty Rates per OBBB

This opportunity involves a regulatory update by the Department of the Interior, Bureau of Land Management (BLM), affecting oil and gas leasing on Federal lands: - Government Buyer: - Department of the Interior, Bureau of Land Management (BLM) - Regulatory Changes: - Revises regulations for royalty rates on Federal oil and gas leases - Implements the One Big Beautiful Bill Act (OBBB) requirement for a minimum 12.5% royalty rate on new leases - Applies to new, non-competitive, and reinstated leases - Removes previous provisions that set higher royalty rates - Products/Services: - No specific products or services are being procured - This is a regulatory change impacting future lease contracts and royalty payments - Notable Requirements: - Affects all operators of Federal oil and gas leases issued after the OBBB's enactment - Alters terms for lease contracts and royalty payments - OEMs/Vendors: - Bureau of Land Management (as the issuer and administrator of the regulations) - No contract vehicles, products, or service line items are specified

Description

This direct final rule revises existing regulations pertaining to royalty on production from Federal oil and gas leases to reflect changes required by the One Big Beautiful Bill Act (OBBB) enacted on July 4, 2025. The rule adjusts the royalty rate to not less than 12.5 percent, removing previous provisions that set higher rates. It applies to new leases issued after the enactment of the OBBB and clarifies royalty rates for non-competitive and reinstated leases. The rule is effective June 29, 2026, unless significant adverse comments are received by May 29, 2026.

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