The U.S. Department of the Interior announced two proposed regulatory actions on June 22, 2026, focused on federal onshore oil and gas leasing and rules for royalty treatment of lost oil and gas. The proposals would revise Bureau of Land Management procedures with the stated goal of making federal leasing more predictable for operators while continuing public-land resource management.
Key changes include replacing a $500,000 statewide bonding requirement with the prior $25,000 standard while the department gathers comments on a longer-term approach. Interior also said its proposed updates to the royalty rule could reduce annual compliance costs by nearly $17 million. For readers comparing federal and private leasing frameworks, Ranger’s guide to leasing federal vs. private land for oil and gas exploration provides additional background.
The leasing proposal would allow noncompetitive leases after competitive auctions, shorten certain public participation timeframes, update filing fees, and provide replacement lease sales when prior offerings are canceled or delayed. The royalty-related proposal would remove certain application requirements, define standards for avoidable and unavoidable losses, and rename the rule “Royalty for Oil and Gas Lost from Onshore Federal and Indian Leases.” A 60-day public comment period will begin after the Federal Register notices are published.
Source: U.S. Department of the Interior
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