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The Interior Department announced it would resume selling oil and gas leases on public land, but the first sale would be dramatically smaller than previously planned. The lease sale, which had been postponed due to conflicting court rulings, will put 144,000 acres up for auction, an 80 percent reduction from the 733,000 acres that oil and gas companies had nominated.
The agency also announced it would raise the royalty rate on the leases from 12.5 percent to 18.75 percent, bringing rates in line with what oil and gas companies pay on state and private land.
In shrinking the lease sale, Interior noted that it had conducted an analysis of climate impacts of increased leasing, and engaged in a “robust environmental review” along with tribal consultation.
While some conservation groups criticized the restart of leasing, the Center for Western Priorities praised the smaller footprint and increased royalty rates, while also calling for permanent reform of the leasing system. “By limiting the upcoming sale to areas with existing oil and gas infrastructure, Interior will prevent speculators from locking up public lands with little or no potential for future production,” said Deputy Director Aaron Weiss. “Raising the royalty rate ensures taxpayers will get a fair share from oil produced on these parcels.”
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The fossil fuel industry has made it clear that they care more about their bottom line than they do about lowering gas prices for Americans struggling to make ends meet — folks who need to get to work, buy groceries and take care of their families. When oil and gas companies lease more federal lands, especially under this broken federal leasing program, it does nothing to lower gas prices. Moreover, ‘speculative leases’ on lands that will never generate oil are harmful because they 
