Oil and Gas Lease Sale in Montana and North Dakota Generates $38 Million

The Bureau of Land Management on Sept. 15 reported that an oil and gas lease sale covering 23 parcels in Montana and North Dakota generated more than $38 million in revenue. The sale, which encompassed roughly 7,600 acres, surpassed the agency’s total national energy and timber receipts from the last quarter.

The results indicate increased interest from the oil and gas sector, partly driven by improved well economics made possible by three-mile lateral drilling technology in the Bakken and Three Forks formations of eastern Montana. Additionally, select parcels in North Dakota on U.S. Forest Service lands were instrumental in achieving the results, demonstrating how interagency cooperation can unlock valuable energy resources.

The One Big Beautiful Bill Act, passed in July, reinstated the minimum royalty rate for new federal onshore oil and gas production at 12.5 percent, replacing the 16.67 percent rate established under the 2022 Inflation Reduction Act. According to the bureau, this adjustment reduces the cost of conducting business on public lands, improving the economic feasibility of oil and gas development and encouraging additional leasing and drilling activity.

Oil and gas leases are typically issued for 10 years and remain in effect as long as production continues in paying quantities. The revenue generated from these leases is shared between the federal government and the states where the leases are located.