What counts as federal public land
The U.S. government owns about 640 million acres, or roughly 28% of the country's land area. Most of it is concentrated in Western states and Alaska. Four agencies handle the bulk of management: the Bureau of Land Management (BLM), the U.S. Forest Service, the Fish and Wildlife Service, and the National Park Service. Each operates under different rules, and not all federal land is open to drilling. National parks and most wildlife refuges, for example, are generally off-limits to new oil and gas leasing.
How leasing works
Federal oil and gas leasing is governed primarily by the Mineral Leasing Act of 1920 and the Federal Land Policy and Management Act of 1976. Those laws direct the BLM to manage lands for "multiple use," balancing energy development with grazing, recreation, conservation, and other purposes. Companies bid at auction for the right to explore and drill on specific parcels. If they produce oil or gas, they pay royalties on the value of what they extract, along with rental fees and bonus bids.
What the government collects
In fiscal year 2023, federal oil and gas production from onshore lands and offshore waters generated about $18 billion in revenue for the U.S. Treasury, states, and tribes, according to the Office of Natural Resources Revenue. A significant share is shared with the states where production occurs and with the Land and Water Conservation Fund, which finances parks and outdoor recreation projects.
Recent policy changes
The Inflation Reduction Act of 2022 made the first major update to federal leasing terms in a century. It raised the onshore royalty rate from 12.5% to 16.67%, increased minimum bid amounts, and raised rental rates. The law also tied new renewable energy leasing on public lands to continued offering of oil and gas leases. Separately, the Biden administration has paused or limited leasing in certain areas, while previous and subsequent administrations have moved to expand it.
The case for permitting drilling
Supporters argue that producing oil and gas domestically — including on federal lands — keeps energy prices lower, reduces reliance on foreign suppliers, and supports jobs in producing states. They note that royalty revenue funds conservation programs and state budgets, and that modern drilling techniques affect a small physical footprint relative to the acreage leased. Some also argue that U.S. production is subject to stricter environmental rules than production abroad.
The case for restricting drilling
Critics argue that burning oil and gas extracted from public lands contributes significantly to U.S. greenhouse gas emissions, and that continued leasing is inconsistent with climate goals. They point to impacts on wildlife habitat, water quality, air quality near drilling sites, and cultural resources important to Indigenous communities. Some also argue that taxpayers have historically received below-market returns on federal minerals, and that public lands should be prioritized for recreation and conservation.
What voters are deciding
The question is not strictly all-or-nothing. Policy options range from expanding leasing and lowering fees, to maintaining the current balance, to sharply limiting new leases or phasing them out. Voters weighing the issue often consider local economic effects, energy prices, environmental impacts, and how federal lands should be used over the long term.