Executive Summary
Bureau of Land Management published two coordinated proposed rules on June 24, 2026, that together overhaul the federal onshore oil and gas leasing and waste prevention programs. The centerpiece is a 90%-plus cut to minimum bonding requirements, returning them to 1960s levels. The rules also compress public participation windows, restore noncompetitive leasing, and remove methane waste minimization requirements. For developers, this means lower upfront costs and faster access to federal acreage. It also means more exposure to post-lease litigation, since environmental groups have already signaled legal challenges the moment a final rule is published. Comments are open through August 24, 2026.
What Happened
On June 24, 2026, BLM published two proposed rules in the Federal Register. The first (91 FR 38084) revises the onshore oil and gas leasing program. The second (91 FR 37906) overhauls the waste prevention and royalty framework. Both are driven by the One Big Beautiful Bill Act signed July 4, 2025, and Executive Order 14154, Unleashing American Energy.
The leasing rule makes several significant changes. Minimum bonding drops from $150,000 to $10,000 per individual lease and from $500,000 to $25,000 statewide, returning to levels set in the 1950s and 1960s. BLM is also soliciting public comment on whether to restore nationwide bonds, which previously allowed…
