IADC’s Response to the Bureau of Land Management’s Proposal

IADC’s Response to the Bureau of Land Management’s Proposal

For Immediate Release

Houston (27 July 2023) – On Monday, the U.S. Department of the Interior’s Bureau of Land Management (BLM) published recommended revisions to the Onshore Oil and Gas Leasing Rule. The proposed changes would impact the BLM’s oil and gas leasing regulatory framework by modifying the current fiscal terms and leasing processes. 

If put into effect, the proposed modifications would make oil and natural gas exploration more expensive for drilling contractors. Royalty rates for drilling on public lands would increase from 12.5% to 16.67%, as per provisions in last year’s climate and tax reconciliation law. The rule also proposed increasing the minimum lease bond amount from $10,000 to $150,000. 

While IADC respects the BLM’s efforts in modernizing its regulatory framework and preserving public lands, these changes would increase the economic and logistical obstacles involved in developing new energy projects. Domestic oil and natural gas supply may diminish as a result, decreasing the ability of the U.S. to meet national and global demand.

In response to the proposal, IADC President Jason McFarland stated, “The increased costs to drilling contractors is an obvious detriment to oil and natural gas exploration and will affect our Members unfavorably. As a voice for the drilling industry, IADC looks forward to collaborating with industry stakeholders in providing feedback to BLM in order to seek balance in how this ruling is developed.”


The International Association Drilling Contractors (IADC) is a non-profit trade association that is the global leader in advancing and promoting innovative technology and safe practices that bring oil and gas to the world’s consumers. More information.