The Bureau of Land Management (BLM), an agency within the US Department of the Interior, has raised more than $38m from an oil and gas lease sale across Montana and North Dakota. 

The lease sale, involving 23 parcels covering 7,604.47 acres, has been awarded for a term of ten years, with extensions contingent upon ongoing production. 

BLM said the move reflects strong industry interest and support for domestic energy initiatives. 

The increased interest is attributed to advancements in drilling technology, particularly in the Bakken and Three Forks formations in eastern Montana. 

In addition, parcels on the US Department of Agriculture’s Forest Service public lands in North Dakota played a key role in the sale's success, said the agency. 

The revenue generated is said to exceed the BLM’s total national energy and timber receipts from the previous quarter. 

The agency will share proceeds from the lease sale between the federal government and the states involved to boost local economies and support employment. 

BLM acting director Bill Groffy said: “This sale is a clear signal that investors and communities alike believe in the future of American energy. 

“By unlocking these resources, we are not only driving revenue back to Montana and North Dakota but also supporting jobs and reinforcing our nation’s ability to remain energy independent for generations to come.” 

BLM conducted the lease sale under the One Big Beautiful Bill Act, which has adjusted the federal onshore royalty rate for new oil and gas production. 

The royalty rate is now fixed to a minimum of 12.5%, down from the 16.67% rate established by the Inflation Reduction Act. 

It is intended to lower costs for businesses and encourage more leasing and drilling activities, thereby enhancing domestic energy production and energy security. 

The BLM said the lease sale aligns with Executive Order 14154, Unleashing American Energy, which aims to meet the energy demands of US citizens. 

Furthermore, the agency said it ensures compliance with the National Environmental Policy Act of 1969 and other relevant legal frameworks. 

Earlier this year, BLM New Mexico State Office auctioned seven parcels covering 1,317 acres in its quarterly oil and gas lease sale, generating a total of $20.67m.