First oil sales on public land under Biden bring $22 million

First oil sales on public land under Biden bring $22 million

BILLINGS, Mont. (AP) — Energy companies paid more than $22 million to secure drilling rights on about 110 square miles of public lands in the western U.S. on Thursday, during the first onshore oil and natural gas lease sales since President Joe Biden took office.

Leases on about 90 square miles went unsold in the U.S. Bureau Land Management online auctions that included parcels of federal lands in eight states.

Oil and gas produced from the leases will be subject to a royalty rate of 18.75%. That’s up from 12.5% and the first royalty increase since the 1920s.

About 200 square miles (518 square kilometers) of federal lands had been offered for lease in eight western states. Most of those sold were in Wyoming, where companies paid more than $13 million for parcels totaling about 105 square miles.

The auctions came as federal officials try to balance efforts to fight climate change against pressure to bring down high gas prices.

Biden faces calls from fellow Democrats to do more to curb fossil fuel emissions that are heating the planet. He’s also under pressure from Republicans to expand U.S. crude production and bring down gas prices.

Companies have been hesitant to expand drilling too quickly because of uncertainty over how long high prices will continue.