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The return of BLM oil and gas lease sales and what you need to know 

Gus Rivero

Chief Ventures Officer at Efficient Markets: EnergyNet | Government Resources | Indigo Energy Advisors | Real Estate | Alternative Energy

The first 2023 Bureau of Land Management (BLM) oil and gas lease sale is now live at EnergyNet, consisting of 45 parcels across New Mexico and Kansas. Click here to view the sale. 

While the auction procedures remain largely the same, the 2022 Inflation Reduction Act (IRA) introduced changes to federal onshore leasing covering fees such as minimum bid amount, yearly rentals, and royalty rate, as well as the nomination-to-auction processes. 

Updated Fees 

  • Royalty rate: 16.67%; previously 12.5% 
  • Rental rate: Begins at $3/acre for the first two years, incrementing therefrom; previously beginning at $1.50/acre 
  • Minimum bid: $10/acre, previously $2/acre 
  • Nomination fee: $5/acre; a newly implemented non-refundable fee 

Nomination-to-Auction Process Update 

As provided in section 50265 of the IRA, the BLM may not issue a right-of-way for wind or solar energy development on Federal land unless it has: 

  1. Held an onshore oil and gas lease sale during the past 120 days; and  
  1. offered for lease the lesser of either 2 million acres or 50% of the acreage for which nominations have been submitted during the previous one-year period. 

Future Sales 

The New Mexico and Kansas lease sale will end May 25, 2023, but before then, BLM sales in Wyoming, Montana, and North Dakota should be live on www.energynet.com. 

If you wish to be notified as soon as BLM sales go live, please email the EnergyNet’s Government Resources team at government@energynet.com. 

Submitting Nominations 

If you are interested in submitting nominations for future federal onshore lease sales, you can do so via the National Fluids Lease Sale System (NFLSS) website at https://nflss.blm.gov. Keep in mind nominations will not be processed until the $5/acre fee, paid to the BLM state office which manages the lands being nominated, is received. 

EnergyNet is the world’s leading online marketplace for oil, gas, real estate, and other commodity auctions. To learn more visit: https://www.energynet.com/page/About_Us