Public Revenue
Lease sales and royalties generated about $18 billion in fiscal year 2023, with funds shared among the U.S. Treasury, states, and tribes to support budgets and conservation programs.
In plain English
Renting public land for drilling.
A system where the government auctions off the right to drill on public land, then collects a share of the money from any oil or gas produced.
Simple example
Under the Inflation Reduction Act of 2022, royalty rates for new onshore federal leases rose from 12.5% to 16.67%, meaning companies pay the government a larger share of the value of oil and gas they extract.
Why it matters
What the term actually changes.
Energy And Climate Tradeoffs
Leasing decisions influence domestic energy supply and prices while also affecting greenhouse gas emissions and the condition of wildlife habitat on public lands.
How it works
The mechanics, in practice.
Competitive Auctions
The BLM holds lease sales where companies bid for parcels; winning bidders pay rent annually and royalties on any oil or gas produced.
Environmental Review
Before leases are issued, agencies typically conduct reviews under the National Environmental Policy Act to assess potential impacts on land, water, wildlife, and climate.
Related guide
Should oil and gas drilling be permitted on federal public lands?
A look at how the federal government leases public lands for energy production, and the trade-offs voters are weighing.
Read the guide → Related issue brief
Should oil and gas drilling be permitted on federal public lands?
Americans are divided over whether the roughly 640 million acres of federally managed land should remain open to oil and gas development.
Read the brief →You’ve learned the term. Now vote.
Should oil and gas drilling be permitted on federal public lands?
Live results — 106 voters
Anonymous · one vote per person