What: On June 24, 2026, the Bureau of Land Management (BLM) proposed to comprehensively revise its oil and gas leasing regulations to implement requirements of the One Big Beautiful Bill Act as well as several executive orders directing the agency to expand domestic energy production and reduce regulatory burdens.
Why: Key changes in the BLM’s proposal include:
- Restoring minimum financial assurance (bonding) requirements to $10,000 per lease or $25,000 per state.
- Restoring the 12.5% minimum royalty rate.
- Requiring at least four competitive lease sales per fiscal year in certain states.
- Introducing provisions to speed up leasing in cases where competitive auctions do not result in completed sales.
The BLM acknowledged concerns from small operators that the higher bond levels set in 2024 created serious financial barriers that were not mitigated by the surety bond market. By restoring the lower bond amounts, the BLM expects to avoid a reduction in domestic energy production and economic activity that the 2024 levels would have created. BLM proposes that it will rely on its 5-year bond adequacy review process to step up the required bond amount for leases on a case-by-case basis.
BLM is also seeking comments on whether it should reinstate the option for a single, nationwide minimum bond, as well as public recommendations for other modifications of the oil and gas bonding process.
Action: Review the proposed rule and submit comments before the August 24, 2026, deadline.
PROPOSED RULE:
SUBMIT COMMENTS:
Oil and Gas Leasing BLM-2025-0037-0001
CONTACT:
Jeffrey Frank
EMAIL:
Regulatory Alerts
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