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The BLM WY State Office has opened a 30-day public scoping period to receive public input on 5 oil & gas parcels that may be included in a Sept. 2024 lease sale in WY

A 30-day Public Scoping Period

The Bureau of Land Management Wyoming State Office has opened a 30-day public scoping period. To receive public input on 5 oil and gas parcels totaling 239.38 acres. That can be incorporate in a September 2024 lease sale in Wyoming. The comment period ends February 15, 2024.

The parcels the BLM is analyzing, as well as maps and instructions on how to comment are available on the BLM’s ePlanning website at: https://eplanning.blm.gov/eplanning-ui/project/2030553/510.

A New Royalty Rate

oil & gas lease sale

As authorized under the Inflation Reduction Act. The Bureau of Land Management (BLM) is implementing a new royalty rate of 16.67 percent. For production on any new leases resulting from this sale. This move is focus at ensuring a fair and equitable collection of royalties on oil and gas extracted from federal lands.

The decision to implement this rate aligns with the BLM’s mandate to manage public lands in a responsible manner, striking a balance between promoting energy development and safeguarding the interests of taxpayers and the environment.

BLM’s online fact sheet

To gain a comprehensive understanding of the Inflation Reduction Act and its implications. Interested stakeholders are hearten to refer to the BLM’s online fact sheet. This fact sheet provides detailed information on the key provisions of the Act. Including its objectives, the rationale behind the royalty rate adjustment, and the expected impact on revenue distribution.

It serves as a valuable resource for industry professionals, state officials, and the public at large. Facilitating transparency and enabling informed decision-making regarding oil and gas leasing activities on federal lands. Notably, the generated revenues from these leases will be split between the respective state. Where the drilling occurs and the U.S. Treasury. Make certain that the financial benefits of energy production are shared among relevant stakeholders and contribute to the nation’s overall economic growth.

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Source: The Cheyenne Post

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Unlock wealth with oil and gas property leasing! Dive into this comprehensive guide, exploring how it works, benefits, risks, lease types, and strategies for success. Learn from real-world success stories and get started on a lucrative investment journey in the thriving energy industry.
DISCLAIMER: We are not financial advisors. The content on this website is for educational purposes only and merely cites our own personal opinions. In order to make the best financial decision that suits your own needs, you must conduct your own research and seek the advice of a licensed financial advisor if necessary. Know that all investments involve some form of risk and there is no guarantee that you will be successful in making, saving, or investing money; nor is there any guarantee that you won’t experience any loss when investing. Always remember to make smart decisions and do your own research!

Leasing oil and gas properties is a compelling investment opportunity that has piqued the interest of savvy investors looking to diversify their portfolios and tap into the wealth-generating potential of the energy industry. This comprehensive guide explores the intricacies of leasing oil and gas properties, delving into how it works, the benefits, associated risks, types of leases, strategies for success, and the broader implications of this lucrative investment avenue. In a world constantly seeking energy resources, this investment option holds the promise of significant returns and long-term stability.

What is Oil and Gas Property Leasing?

Leasing oil and gas properties involves the contractual agreement between landowners (lessors) and energy companies (lessees) to explore, drill, and extract oil and gas resources from a specific tract of land. In exchange for granting access to their land and resources, landowners receive lease payments and royalties based on the production or sale of these resources.

How Oil and Gas Property Leasing Works

When a landowner leases their property for oil and gas exploration, the lessee typically conducts geological surveys and exploration activities to determine the potential reserves. If the results are promising, the lessee proceeds to drill and extract the resources. The landowner receives lease payments, and if oil and gas are produced, they also receive royalty payments based on the production volume.

Lease terms can vary widely and typically span several years. During this time, lessees have the right to access the property, and they bear the financial responsibility for drilling and operational costs. Landowners, on the other hand, benefit from a steady stream of income without directly participating in the exploration process.

The Advantages of Investing in Oil and Gas Leases

Leasing oil and gas properties offers numerous advantages, making it an attractive investment option:

  • Passive Income: Investors receive lease payments and royalties without being involved in the daily operations of the drilling and extraction processes.
  • Portfolio Diversification: Oil and gas leases provide diversification in an investment portfolio, helping to reduce risk by having assets in different industries.
  • Inflation Hedge: Lease payments and royalties often increase with rising energy prices, serving as an effective hedge against inflation.
  • Potential for High Returns: Successful oil and gas leases can yield substantial returns, especially in areas with abundant reserves.

Risks and Considerations

Before venturing into oil and gas property leasing, investors should be aware of the following risks and considerations:

  • Market Volatility: Oil and gas prices are prone to significant fluctuations, which can affect the value of lease payments and royalties.
  • Environmental and Regulatory Risks: Energy companies must comply with environmental regulations, and changes in laws can impact the viability of a lease.
  • Resource Uncertainty: Drilling can yield unsuccessful results, leading to dry wells and lower returns.
  • Geopolitical Factors: Global events, like supply disruptions or political instability in oil-producing regions, can impact the industry and investment.

Types of Oil and Gas Leases

Various types of oil and gas leases exist, including:

  • Mineral Leases: Cover the rights to extract specific minerals (oil, gas, coal, etc.) from the property.
  • Non-Participating Royalty Interest (NPRI) Leases: Grant the right to a share of production, but not involvement in exploration and drilling.
  • Working Interest Leases: Involve active participation in exploration and drilling processes, with a share in both costs and profits.
  • Overriding Royalty Interest (ORI) Leases: Offer a share of production revenues, typically without responsibility for operational costs.

The choice of lease type depends on an investor’s level of involvement and risk tolerance.

Investment Strategies for Oil and Gas Property Leasing

To maximize the potential of oil and gas property leasing investments, consider these strategies:

  • Due Diligence: Thoroughly research the energy company, the property, and the geological potential of the lease area before investing.
  • Diversification: Spread investments across various leases to minimize risk associated with a single property.
  • Risk Management: Stay informed about market conditions, industry trends, and regulations to make informed investment decisions.
  • Legal and Financial Advisors: Consult with experts in the field to ensure you understand the lease terms and have a solid investment strategy.

Tax Implications

Oil and gas lease income is typically subject to taxation. Consult a tax advisor to understand the tax implications in your jurisdiction and develop a tax-efficient strategy for your investments.

Real-World Success Stories

Several investors have achieved significant success in oil and gas property leasing. Notable examples include:

  • Permian Basin: Investors in this prolific oil-producing region have witnessed substantial returns through productive leases.
  • Marcellus Shale: Landowners in this gas-rich area have enjoyed lucrative royalties from successful drilling operations.

How to Get Started with Oil and Gas Property Leasing

If you’re interested in pursuing oil and gas property leasing, follow these steps:

  • Education: Learn about the energy industry, lease types, and the exploration and drilling process.
  • Research: Identify reputable energy companies and potential lease opportunities in regions with known resources.
  • Consult Professionals: Seek advice from financial advisors, lawyers, and industry experts to guide your investment decisions.
  • Negotiate Leases: Engage in negotiations with lessees to secure favorable terms and agreements.


Leasing oil and gas properties presents an enticing investment opportunity with the potential for substantial returns and passive income. However, it is not without risks, and investors should approach it with diligence and careful consideration. A well-researched investment strategy, diversification, and the guidance of experts can help unlock the wealth-generating potential of this lucrative investment avenue. In a world with a growing energy demand, oil and gas property leasing stands as a valuable and promising addition to a diversified investment portfolio.

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The BLM is now seeking public comment on the parcels, potential deferrals, and the related environmental analysis.

The Bureau of Land Management New Mexico State Office today opened a 30-day public comment period to receive public input on 26 oil and gas parcels totaling 6,162 acres that may be included in an upcoming lease sale in New Mexico and Kansas. The comment period ends Dec. 20, 2023.

The BLM completed scoping on these parcels in Sept. 2023 and is now seeking public comment on the parcels, potential deferrals, and the related environmental analysis. BLM will use input from the public to help complete its review of each parcel. And determine if leasing of these parcels conforms with all applicable laws, policies, and land use plans.

As authorized under the Inflation Reduction Act, BLM will apply a 16.67 percent royalty rate for any new leases from this sale.

Leasing is the first step in the process to develop Federal oil and gas resources. Before development operations can begin, an operator must submit an application for permit to drill detailing development plans. The BLM reviews applications for permits to drill, posts them for public review. Conducts an environmental analysis and coordinates with State partners and stakeholders.

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Source: BLM.gov

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