Federal Permian lease sale tops $4 billion in record-setting auction
(WO) — The U.S. Department of the Interior said a federal oil and gas lease sale covering acreage in New Mexico and Texas generated more than $4 billion in total receipts, marking what officials described as the largest onshore federal lease sale in U.S. history.
The quarterly lease sale, conducted by the Bureau of Land Management, included 74 parcels totaling 33,530 acres across portions of the Permian basin. Combined bonus bids and rental payments totaled approximately $4.01 billion, according to preliminary figures released by the Interior Department.
Revenue generated through the lease sale will be shared between the federal government and the states where the acreage is located.
“America is sitting on some of the richest energy resources in the world, and President Donald J. Trump is committed to putting those resources to work for the American people,” said Interior Secretary Doug Burgum. “This over $4 billion lease sale is another sign that President Trump’s American Energy Dominance Agenda is delivering results.”
The Interior Department said the sale was conducted under the Working Families Tax Cuts Act, which lowered the federal royalty rate for new onshore oil and gas production to 12.5%, reversing the 16.67% rate established under the Inflation Reduction Act.
Federal officials said the lower royalty structure is intended to encourage additional leasing, drilling and investment activity across western producing regions.
Texas Railroad Commissioner Wayne Christian also praised the results, calling the auction evidence of renewed industry confidence under the current administration’s regulatory approach.
“The contrast between the Biden administration’s anti-energy agenda and President Trump’s pro-production policies could not be more obvious,” Christian said. “When the federal government allows American energy producers to do what they do best, investment surges, production grows, jobs are created and American energy security is strengthened.”
According to the Department of the Interior, the $4-billion total exceeded the previous federal onshore lease sale record of approximately $972 million set in 2018.
Oil and gas leases issued through the federal program carry an initial 10-year term and remain active as long as hydrocarbons are produced in paying quantities.
The lease sale comes as operators continue increasing activity across the Permian basin amid higher crude prices, stronger drilling economics and renewed policy support for domestic oil and gas development on federal lands.
