First onshore oil and gas lease sale held by Interior since last summer.

The Biden Administration Holds First Onshore Oil and Gas Lease Sale in Nearly a Year

The Bureau of Land Management auctioned off parcels totaling 10,123 acres in New Mexico and Kansas, marking the beginning of a leasing revival brought on by provisions negotiated by Sen. Joe Manchin (D-WV) in the Democratic Inflation Reduction Act that incentivize the Interior Department to lease more regularly for oil and gas.

This is a major disappointment for environmental groups, including those generally aligned with President Joe Biden on climate change policy, that have campaigned heavily against new leasing and filed multiple lawsuits against the administration to thwart new leasing. Biden pledged during his presidential campaign to crack down and even end new leasing and drilling on federal lands and in federal waters, ordering a pause on new leasing when he entered office.

Republicans and the industry have criticized and, in some cases, sued the administration over the intermittent leasing, arguing that it violated the Mineral Leasing Act. The century-old law provides that lease sales should be held “where eligible lands are available at least quarterly.”

The Inflation Reduction Act Intervenes with New Directions

The law included language negotiated by Manchin requiring that the bureau hold regular oil and gas lease sales in order to issue rights-of-way for renewable energy on federal lands, a major priority of the Biden administration.

The Interior Department has pointed to those provisions to justify new leasing, displeasing environmentalists. Jeremy Nichols of WildEarth Guardians, an environmental nongovernmental organization that is currently in court with the administration over leasing in New Mexico and other western states, said the bureau “continues to turn its back on its legal duty to account for the link between fossil fuel development and the climate crisis.”

What’s Next?

The Biden administration plans to carry out lease sales across federal lands through the rest of the year. While this marks a leasing revival, it also represents a major disappointment for environmental groups. The administration and environmental groups have argued the bureau and the interior secretary have discretion over whether or not to hold lease sales or make lands available.

• The first onshore oil and gas lease sale in nearly a year
• 10,123 acres in New Mexico and Kansas auctioned off
• Leasing revival brought on by provisions negotiated by Sen. Joe Manchin (D-WV)
• The Inflation Reduction Act requires regular oil and gas lease sales for renewable energy on federal lands
• The Interior Department has pointed to those provisions to justify new leasing, displeasing environmentalists

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