Energy Production on Federal Lands: Leasing
July 19, 2024
and Authorization
Adam Vann
Federal lands are a significant source of energy raw materials and electricity production. As a
Legislative Attorney
result, some have looked to federal lands as an important factor in addressing questions about

energy supply, energy prices, renewable resources, and climate change.

A number of different laws and regulations govern the leasing of federal lands for exploration
and production of oil, natural gas, and coal, as well as the permits that lessees must obtain in order to explore for and produce
these resources. The leasing process for these lands has evolved over the past century under the framework established by the
Mineral Leasing Act of 1920 (MLA). Oil, natural gas, and coal leasing and production on federal land pursuant to the MLA
are currently overseen by the Bureau of Land Management (BLM), an agency within the U.S. Department of the Interior
(DOI), in accordance with the principles of the Federal Land Policy and Management Act of 1976 (FLPMA). BLM may
lease federal lands identified in a Resource Management Plan (RMP) as amenable to oil, coal, or natural gas exploration and
production so long as such activities in that area are not prohibited by statute or regulation. Such lands are usually leased to
the highest bidder as determined by competitive auction. Leaseholders are generally required to pay both rental fees and
royalties (a percentage of the value of produced oil, natural gas, or coal) to the U.S. government. Other federal agencies
manage federal lands that are reserved for specific purposes. Different statutory authorities may allow those agencies to
facilitate energy projects on these lands to varying degrees.
The use of federal lands for renewable energy projects—including geothermal, wind, and solar energy—is subject to similar,
but distinct, federal laws and regulations from oil, natural gas, and coal leasing. Geothermal projects are leased in accordance
with the requirements of the Geothermal Steam Act of 1970, which functions similarly to the MLA: Lands that are amenable
to geothermal projects are leased to the highest qualified bidder. In contrast, wind and solar projects on federal lands are often
not authorized by leases but rather by BLM granting a right-of-way. These rights-of-way are issued pursuant to the
requirements of Title V of FLPMA, and holders of these rights-of-way must make monthly rental payments to the U.S.
government. Recent efforts by BLM and Congress have sought to create a leasing program for renewable energy similar to
the one in place for fossil fuel exploration and production.
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Energy Production on Federal Lands: Leasing and Authorization

Introduction
A variety of interrelated statutes and agency regulations govern leasing and permitting for energy
exploration and production on federal lands.1 Generally, these projects can be divided into two
categories, each of which is governed by its own set of statutes and regulations.
The first category is the exploration for and production of fossil fuels, including oil, natural gas,
and coal. Oil, natural gas, and coal exploration and production on federal lands are generally
governed by the Mineral Leasing Act of 1920 (MLA), as amended.2 The Bureau of Land
Management (BLM), an agency that is part of the U.S. Department of the Interior (DOI),
administers the MLA. In most cases, the lessee is authorized to explore for and ultimately
produce oil, natural gas, or coal on federal lands in exchange for lease and royalty payments to
the U.S. government. BLM authorizes exploration activities and production activities for lessees
only upon lessees’ request for permission to engage in these activities on the leased land.
The second category is renewable energy projects. Geothermal energy projects are leased under a
similar structure to oil, natural gas, and coal projects. Under the Federal Land Policy and
Management Act of 1976 (FLPMA), solar and wind projects are often undertaken pursuant to a
right-of-way or similar property interest. However, recently there have been efforts to create a
renewable energy leasing framework similar to the ones that already exist for oil, natural gas,
coal, and geothermal production on federal lands.
Coal, Natural Gas, and Oil Production on Federal Lands
History and Background
At the start of the 20th century, private entities could explore, develop, and purchase federal lands
containing mineral resources, including fossil fuels, with relative ease. Resources on or under
these federal lands could be transferred to full private ownership pursuant to the terms of the
Mining Law of 1872.3 This process was known as “patenting.” Under the patenting process, full
ownership of lands with subsurface oil resources “could be obtained for a nominal amount.”4
The Mineral Leasing Act of 1920
In the early 20th century, Congress decided that oil and natural gas resources on onshore federal
lands should remain under federal ownership. The enactment of the MLA in 1920 made
exploration for and production of these resources ineligible as a basis for patenting.5 Instead, the
MLA authorized the Secretary of the Interior to establish a leasing framework for the production
of oil, coal, or natural gas on federal lands.6

1 This report provides a discussion of energy projects on onshore federal lands (i.e., any land in which the federal
government maintains a property interest). Offshore areas on the continental shelf are also sometimes referred to as
“lands” but are outside the scope of this report. For discussion of offshore energy projects, see CRS Report RL33404,
Offshore Oil and Gas Development: Legal Framework, by Adam Vann (2018).
2 30 U.S.C. §§ 181-287.
3 30 U.S.C. § 22 note, 17 Stat. 91-96.
4 See Pan-Am. Petroleum & Transp. Co. v. United States, 273 U.S. 456, 486 (1927) (internal citation omitted).
5 Mineral Leasing Act of 1920 (MLA), 41 Stat. 4373 (1920), codified at 30 U.S.C. §§ 181 et seq.
6 Id. The MLA also established a leasing framework for a handful of other resources, including phosphates, sodium,
and oil shale. Although the patent system created by the Mining Law of 1872 remains in effect for mineral resources
(continued...)
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The MLA authorizes the Secretary of the Interior to lease onshore lands owned by the United
States, including those that contain fossil fuel deposits, with the federal government retaining title
to the lands.7 BLM administers the leasing program for subsurface mineral rights not only for the
land BLM controls but also for lands controlled by other federal agencies, such as the U.S. Forest
Service.8
The MLA excludes from leasing numerous categories of lands, such as national parks and
monuments, as well as lands in incorporated cities, towns, and villages.9 Lands within a
designated National Wilderness Preservation System area also cannot be leased, but valid
property rights that were already in existence by 1984, including leases, are preserved by
statute.10 In addition, although BLM controls the leasing process for subsurface rights to land in
the National Forest System, the Secretary of the Interior cannot issue any lease for National
Forest System lands reserved from the public domain if the Secretary of Agriculture objects.11
The Federal Land and Policy Management Act of 1976
BLM administers hundreds of millions of acres of subsurface federal estate throughout the
country. The Secretary of the Interior must develop and revise Resource Management Plans
(RMPs) for the lands it manages that consider both present and potential future uses.12 These
RMPs are the first step in determining which lands may be subject to leasing, as all activities
performed on BLM lands must be consistent with the RMPs.13
Related to this authority, FLPMA authorizes the Secretary of the Interior to withdraw federal
lands so that some or all potential land uses, including use for fossil fuel exploration and
production, are not permitted on those lands.14 A withdrawal involves “withholding an area of
Federal land from settlement, sale, location, or entry, under some or all of the general land laws,
for the purpose of limiting activities under those laws in order to maintain other public values in
the area or reserving the area for a particular public purpose or program.”15 Congress can also
make withdrawals through legislation, and the Secretary may not modify or revoke a
congressional withdrawal.16

not included in the MLA’s leasing program, it has been revised significantly over the years. Since FY1994, Congress
has included a limitation in the DOI budget providing that “none of the funds appropriated or otherwise made available
pursuant to this Act shall be obligated or expended to accept or process applications for a patent for any mining ...
claim.” See, e.g., Department of the Interior and Related Agencies Appropriations Act of 1995, Pub. L. 103-332 § 112,
108 Stat. 2499, 2519 (1994).
7 30 U.S.C. § 181. Lands acquired by the United States are generally subject to the MLA pursuant to the Mineral
Leasing Act for Acquired Lands of 1947, codified at 30 U.S.C. §§ 351 et seq.
8 Id.
9 Id.
10 16 U.S.C. § 1133(d)(3) (“Subject to valid rights then existing, effective January 1, 1984, the minerals in lands
designated ... as wilderness areas are withdrawn from all forms of appropriation under the mining laws and from
disposition under all laws pertaining to mineral leasing and all amendments thereto.”).
11 Id. § 226(h). In addition, the U.S. Forest Service has issued separate regulations governing certain aspects of leasing
and permitting for oil and gas development on lands within its jurisdiction.
12 43 U.S.C. § 1712; 43 C.F.R. Subpart 1610.
13 43 C.F.R. § 1610.5-3.
14 43 U.S.C. § 1714 (2000).
15 Id. § 1702(j).
16 Id. § 1714(j).
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The Secretary must generally apply “multiple use” and “sustained yield” principles when
developing RMPs.17 Multiple use principles require, among other things,
management of the public lands and their various resource values so that they are utilized
in the combination that will best meet the present and future needs of the American people;
making the most judicious use of the land for some or all of these resources or related
services over areas large enough to provide sufficient latitude for periodic adjustments in
use to conform to changing needs and conditions; the use of some land for less than all of
the resources; a combination of balanced and diverse resource uses that takes into account
the long-term needs of future generations for renewable and non-renewable resources.18
Sustained yield requires BLM to achieve and maintain “high-level annual or regular periodic
output of the various renewable resources of the lands.”19 In addition, FLPMA requires the
Secretary to provide opportunities for the public and other governmental entities to participate in
the development of RMPs, including public hearings where appropriate.20 Regulations require the
preparation of an environmental impact statement (EIS) in accordance with the National
Environmental Policy Act (NEPA)21 when producing an RMP.22
The Forest Service also manages 193 million acres of federal land under the same “multiple use”
and “sustained yield” policies.23 The Forest Service develops land management plans for National
Forest System by considering the desired conditions, objectives, suitability of areas for various
uses, and other criteria.24 As with the BLM planning process, the laws governing Forest Service
land management and implementation require public notification and opportunities for public
participation.25 When analyzing National Forest System lands for potential leasing, the Forest
Service classifies lands into three categories:
1. Lands that will be “open to development subject to the terms and conditions of
the standard oil and gas lease form”;
2. Lands that will be “open to development but subject to constraints that will
require the use of lease stipulations”; and

17 43 U.S.C. § 1732(a). An exception applies in circumstances “where a tract of such public land has been dedicated to
specific uses according to any other provisions of law,” in which case “it shall be managed in accordance with such
law.” Id.
On May 9, 2024, BLM issued a final rule updating its FLPMA implementing regulations to prioritize ecosystem health
and resilience within the principles of multiple use and sustained yield. Conservation and Landscape Health, 89 Fed.
Reg. 40308 (May 9, 2024).
18 Id. § 1702(c).
19 Id. § 1702(h).
20 Id. § 1712(f).
21 42 U.S.C. §§ 4321 et seq.
22 See 43 C.F.R. § 1601.0-6. BLM’s regulations stipulate that approval of an RMP constitutes a “major Federal action
significantly affecting the quality of the human environment”; thus, NEPA requires the preparation of an EIS. Id.; see
42 U.S.C. § 4332(2)(C). An EIS must address numerous issues, including the environmental impact of the proposed
action, alternatives to the proposed action, and any irreversible commitments of resources if the proposed action takes
place. 42 U.S.C. § 4332(2)(C). For an overview of NEPA’s requirements, see CRS In Focus IF12560, National
Environmental Policy Act: An Overview, by Kristen Hite (2023).
23 Multiple-Use Sustained-Yield Act, Pub. L. No. 86-517 (1960), codified at 16 U.S.C. §§ 528-532.
24 16 U.S.C. § 1604; 36 C.F.R. §§ 219.5, 219.7.
25 16 U.S.C. §§ 1604(d), 1612; 36 C.F.R. § 219.4.
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3. Lands that will be “closed to leasing, distinguishing between those areas that are
being closed through exercise of management direction, and those closed by law,
regulation, etc.”26
The Forest Service must also comply with NEPA when analyzing National Forest System lands
for potential leasing.27 Once the Forest Service has determined which lands will be available for
leasing, it notifies BLM of its decisions and may subsequently authorize BLM to lease the lands
in question.28
The Leasing Process: Oil and Gas
The MLA authorizes a competitive leasing process for oil and gas exploration and production.29
The process from consideration to production occurs in three main stages, each of which may
have additional steps. First, lands are identified for potential oil and gas leasing based on the
relevant agency’s land management planning process. Then, a lease sale is held and leases are
awarded based on competitive bidding. Finally, the holder of a lease must develop a plan and
obtain a permit for its energy development activities. This process begins when BLM generates a
list of lands available for competitive oil and natural gas leasing based on the RMP, expressions
of interest, and other variables. Private entities may respond by submitting nominations for
parcels to be auctioned.30 Each unit must be “as nearly compact as possible” and may not exceed
2,560 acres except in Alaska, where the maximum unit acreage is 5,760 acres.31
The MLA requires competitive bidding on at least a quarterly basis in each state where federal
lands are available for leasing.32 The Secretary may also authorize additional opportunities for
bidding if deemed necessary.33
Once public notice requirements have been satisfied, the Secretary usually offers the land for
leasing through competitive auction.34 A competitive bid in such an auction constitutes a legally
binding commitment and cannot be withdrawn.35 The MLA requires the Secretary to accept the
highest bid from a responsible qualified bidder whose bid meets or exceeds the national minimum
acceptable bid.36
The winning bidder at a competitive auction must submit the following payments on the day of
sale, unless otherwise specified: (1) the minimum bid amount; (2) the first year’s rental payment;
and (3) a processing fee, as set forth in BLM’s regulations.37 Then, the balance of the bonus bid—
any amount above the statutory minimum bid amount—is due within 10 working days.38 The

26 36 C.F.R. § 228.102(c).
27 16 U.S.C. § 1604(g); 36 C.F.R. § 228.102(a).
28 36 C.F.R. § 228.102(d), § 228.102(e).
29 The MLA leasing process for coal is similar to the process for oil and gas, but there are some differences discussed
later in this report.
30 See 43 C.F.R. § 3120.3-1.
31 30 U.S.C. § 226(b)(1)(a).
32 Id.
33 Id.
34 Id.
35 43 C.F.R. § 3120.5-3(a).
36 30 U.S.C. § 226(b)(1)(A).
37 43 C.F.R. § 3120.5-2.
38 Id.
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lease is also conditioned upon agreement to remit royalty payments39 unless the Secretary
suspends, waives, or reduces the royalty.40
Prior to enactment of the Inflation Reduction Act in 2022, if no valid bids were received at a
competitive bidding auction, the land would be offered for noncompetitive leasing. However, the
Act repealed the MLA’s noncompetitive leasing provision,41 so if there are no valid bids, the
leasehold remains with the federal government for future use in accordance with statutory
mandates.
An Obligation to Lease?
As noted above, the MLA directs DOI to hold lease sales for “each State where eligible lands are
available at least quarterly.”42 This provision requires quarterly lease sales “where eligible lands
are available,” but the Secretary may have some discretion to determine whether a state has any
eligible and available federal lands for leasing. Relying on that discretion, the Biden
Administration in 2021 issued an executive order, E.O. 14008, to “pause” all leasing on federal
lands.43 In 2021, the U.S. District Court for the Western District of Louisiana held that the
“pause” likely violated the requirements of the MLA.44 The court held that the “discretion to
pause a lease sale to eligible lands is not within the discretion of the agencies by law,” because
under the MLA, “the Secretary of DOI is required to hold lease sales for each state where eligible
lands are available at least quarterly.”45
The government appealed this decision, and the U.S. Court of Appeals for the Fifth Circuit
remanded with instructions to the district court to clarify whether its injunction applied
nationally.46 On remand, the district court clarified that the “pause” was enjoined nationally,47
although by that time the Biden Administration had voluntarily lifted it.
A Wyoming federal district court appears to have applied a different interpretation of the MLA. In
Western Energy Alliance v. Biden, the court considered BLM’s decision to delay the leasing
process based on the agency’s concerns about NEPA compliance.48 The Wyoming court cited the
same MLA language the Western District of Louisiana did, requiring leasing “for each State
where eligible lands are available at least quarterly.”49 However, the court went on to say:
“Eligible” and “available” are not defined by Congress in the MLA, which necessarily
delegates the matter to the agency. “‘Eligible’ lands comprise all lands ‘subject to leasing,
i.e, lands not excluded from leasing by a statutory or regulatory prohibition.’ ‘Available’
lands are those ‘open to leasing in the applicable [Resource Management Plan], ... when
all statutory requirements and reviews have been met.’”50

39 43 C.F.R. § 3103.31.
40 30 U.S.C. § 209.
41 Pub. L. 117-169, § 50262(e), 136 Stat. 1818, 2057 (2022).
42 Id. § 226(b)(1)(A).
43 E.O. 14008, “Tackling the Climate Crisis at Home and Abroad,” 86 Fed. Reg. 7619 (Feb. 1, 2021).
44 Louisiana v. Biden, 543 F. Supp. 3d 388 (W.D. La. 2021).
45 Id. at 409.
46 Louisiana v. Biden, 45 F.4th 841 (5th Cir. 2021).
47 Louisiana v. Biden, 622 F. Supp. 3d 267 (W.D. La. 2022).
48 No. 21-cv-13-SWS, 2022 WL 18587039 (D. Wyo. Sept. 2, 2022).
49 Id. at *9.
50 Id.
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The court held that the postponed lease sales involved lands that were not “available,” because
the BLM deputy director of operations or DOI Assistant Secretary for Land and Mineral
Management determined that the NEPA documentation for the lease sales needed additional
review and possible reworking due to other developments.51 As a result, the court concluded that
the federal lands tentatively set for lease through competitive bidding in March 2021 had not
satisfied all necessary statutory requirements.
In contrast to the Louisiana district court, the Wyoming district court interpreted the MLA to
provide substantially more discretion to the agency regarding what constitutes “eligible” land
“available” for leasing. These two decisions leave BLM without a clear answer as to whether the
act creates a broader obligation to hold regular lease auctions. Litigation on this subject is rare,
because DOI has rarely paused leasing nationally or regionally in this manner, so the extent of the
federal government’s “obligation” to hold oil and gas leasing auctions remains an open question.
Lease Terms and Conditions: Oil and Natural Gas
Eligibility Requirements
In addition to dictating how to determine where leasing can take place, the MLA places general
restrictions on who can lease. Federal lands containing oil and gas deposits may be leased only to
U.S. citizens, associations of U.S. citizens, corporations organized under U.S. laws or the laws of
any state, and municipalities.52 In addition, citizens of a country that denies similar privileges to
U.S. citizens and corporations may not control any interest in federal leases.53 Also, no entity is
permitted to own or control oil or gas leases in excess of certain acreage caps.54
Payment Obligations
Many federal energy leases require payment to the government of a royalty (a set percentage of
the value of oil or gas production that is removed or sold from the leased land). The MLA
currently sets a minimum royalty rate of 16 2/3% for federal oil and gas leases.55 Leases also
require payment of annual rental fees, priced on a sliding scale over the term of the leasehold.56
Rental payments are not due on acreage for which annual royalty payments exceed the rental
payment obligation.57
Money received from royalties and rental fees is initially paid into the U.S. Treasury.58 The terms
of the MLA provide that 50% of the funds received are then allocated to the state where the land
or mineral deposit is located.59 Forty percent of the funds are allocated to the Reclamation Fund
established under the Reclamation Act of 1902 for projects that provide water to arid Western

51 Id.
52 30 U.S.C. § 181.
53 Id.
54 Id. § 184(d)(1).
55 Id. § 226(b)(1)(A). This number was recently adjusted upward by Section 50261 of the Inflation Reduction Act of
2022, Pub. L. No. 117-169, 136 Stat. 1818, 2056. The prior default royalty rate of 12% applies to most BLM oil and
gas leases issued prior to August 16, 2022.
56 30 U.S.C. § 226(d).
57 Id.
58 Id. § 191(a).
59 Id.
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states.60 The remaining amount stays in the Treasury as “miscellaneous receipts.”61 Ninety percent
of the funds collected from federal leases in Alaska are allocated to the state of Alaska, which is
not served by the Reclamation Fund.62 The federal government takes 2% out of these scheduled
payments to the states to cover administrative costs.63
Initial Term, Extensions, and Cancellations
The MLA directs DOI to establish a primary term of 10 years for federal oil and gas leases.64 This
primary term is automatically extended “for any period during which oil or gas is produced in
paying quantities”65 or if “actual drilling operations were commenced and diligently prosecuted”
before the end of the primary term.66
A group of lessees may collectively adopt and operate under a cooperative plan for exploration
and production in a particular area if the Secretary considers such a plan to be in the public
interest.67 Any lease subject to such a plan is to be extended if any of the leases covered by the
plan qualify for a drilling or production extension.68
Any MLA lease can be canceled or forfeited if the lessee fails to comply with the statute, the
lease’s provisions, or regulations promulgated pursuant to the MLA.69 In some situations, the
Secretary has the authority to cancel the lease unilaterally, but some circumstances require a
judicial proceeding to cancel the lease.70 In addition, the MLA provides for automatic termination
“upon failure of a lessee to pay rental on or before the anniversary date of the lease, for any lease
on which there is no well capable of producing oil or gas in paying quantities.”71 However, the
Secretary may in some circumstances reinstate automatically terminated leases.72
Applications for Permits to Drill: Oil and Gas
Federal oil and gas lessees are not granted the right to drill the leased land as they see fit. BLM
regulations are generally incorporated into the terms of each lease.73 Those regulations require
that all wells be drilled “in conformity with an acceptable well-spacing program at a surveyed
well location approved or prescribed by the authorized officer after appropriate environmental

60 Id.
61 Id.
62 Id.
63 Id. § 191(b).
64 Id. § 226(e).
65 Id. § 226(e)(2).
66 Id. § 226(e)(3).
67 Id. § 226(m).
68 Id.
69 30 U.S.C. § 188(a); 43 C.F.R. § 3108.3(a), (b).
70 See 43 C.F.R. § 3108.3(a), (b).
71 30 U.S.C. § 188(b).
72 See id. § 188(c)-(e), (g), (j).
73 See, e.g., Form 3100-011, Department of the Interior, Bureau of Land Management, Lease for Oil and Gas, available
at https://www.blm.gov/sites/blm.gov/files/uploads/Services_National-Operations-Center_Eforms_Fluid-and-Solid-
Minerals_3100-011.pdf.
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and technical reviews.”74 The agency thus requires operators75 to submit an Application for a
Permit to Drill (APD) for each well they plan to drill during exploration or production. Prior to
approval of an APD, BLM must prepare conduct an environmental review, potentially including
an EIS, in accordance with the requirements of NEPA.76 BLM must also approve the lessee’s
proposed surface-disturbing activities before approving an APD.77 A complete APD must include
a drilling plan, a surface use plan of operations (including drillpad locations and plans for
reclaiming the surface), evidence of bond coverage, and any other information BLM may
require.78
Depending on the location of a lease and its proximity to various resources, BLM may also be
required to complete other federal statutory requirements related to analysis, consultation, or
permitting. Environmental organizations often bring legal challenges that allege that the leasing
agency failed to comply with NEPA or other environmental protection statutes in deciding to
conduct lease sales or to approve exploration plans or APDs or other administrative actions
related to the oil and gas leasing process. Such a challenge may claim, for example, that BLM
failed to account for the impact of the additional oil and gas exploration and production on the
environment, including aggregate impacts on climate change,79 or that the project would impact a
listed species or its critical habitat and the agency failed to satisfy the requirements of the
Endangered Species Act.80 Proximity to other resources may trigger litigation alleging failure to
comply with other protections, including the National Historic Preservation Act81 and
requirements for consultation with Indian tribes to protect tribal land and interests.82
The Leasing Process: Coal
The process for coal leasing on federal lands, which is governed by Section II of the MLA as
amended, is similar to the process for oil and gas leasing.83 Under the statute as amended and the
regulations promulgated pursuant to it, coal leasing on federal lands may not commence until the
land to be leased has been included in a comprehensive land use analysis.84 However, the
Secretary is authorized to prescribe coal “exploration licenses” to allow non-lessees to enter
federal lands and conduct exploratory activities that do not cause substantial disturbance to the
surface.85
There are two processes by which federal lands may be made available to be leased for coal
production. The first is “regional coal leasing,” in which BLM selects tracts for leasing as needed
to meet regional requirements as outlined by “regional coal teams” composed of BLM officials

74 43 C.F.R. § 3162.3-1(c). Oil and gas operations on lands managed by the Forest Service must obtain approval from
that agency for their surface disturbing activities.
75 BLM regulations define an “operator” as “any person or entity including but not limited to the lessee or operating
rights owner, who has stated in writing to the authorized officer that it is responsible under the terms and conditions of
the lease for the operations conducted on the leased lands or a portion thereof.” 43 C.F.R. § 3160.0-5.
76 43 C.F.R. § 3162.5-1(a).
77 Id. § 3162.5-1(b).
78 Id. § 3162.3-1(d), (f).
79 WildEarth Guardians v. Zinke, 368 F. Supp. 3d 41 (D.D.C. 2019).
80 Bd. of Cnt. Comm’rs of Cnty. of San Miguel v. BLM, 584 F. Supp. 3d 949 (D. Colo. 2022).
81 New Mexico ex rel. Richardson v. BLM, 459 F. Supp. 2d 1102 (D.N.M. 2006).
82 San Juan Citizens Alliance v. Norton, 586 F. Supp. 2d 1270 (D.N.M. 2008).
83 30 U.S.C. §§ 201 et seq.
84 Id. § 201(a)(3)(A)(i).
85 Id. § 201(b).
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and interested state and local parties.86 BLM has not employed regional coal leasing in recent
years, citing a lack of demand.87
The second is leasing on application, in which BLM issues coal leases on a case-by-case basis to
parties who express interest. In this process, a qualified potential lessee may submit an
application to lease for purposes of coal development any BLM lands that have been included in a
comprehensive coal land use plan or analysis.88 The application must contain certain data
intended to assist BLM in conducting the environmental analysis needed to satisfy the
requirements of NEPA.89 After this process is completed, BLM determines the fair market value
of the available coal and the maximum economic recovery for the proposed lease tract,90 and it
consults with the same parties with whom consultation is required for regional leasing.91
After these requirements are met, BLM conducts the lease sale. Most BLM coal leasing is done
competitively—with exceptions if a party holds a “prospecting permit” issued prior to the Federal
Coal Leasing Amendments of 1976 or if contiguous lands are added to existing leases.92 As with
oil and natural gas leasing, coal tracts may be leased only to U.S. citizens, associations of U.S.
citizens, corporations organized under U.S. laws or the laws of any state, and municipalities.93
Also, no entity is permitted to own or control coal leases with an aggregate acreage in excess of
75,000 acres in any one state or more than 150,000 acres in the United States.94 A party who has
held a federal coal lease for 10 or more years that has not produced commercial quantities of coal
may not acquire any other mineral leases under the MLA.95 BLM-issued coal leases are for initial
terms of 20 years with automatic extension “for so long thereafter as coal is produced annually in
commercial quantities from that lease.”96 In addition to rental payments, lessees are required to
pay a royalty of at least 12.5% of the value of the coal that is recovered from the leased land.97
The Secretary has the authority to determine other applicable terms and conditions of coal
leases.98
Renewable Energy Projects on Federal Lands
Some federal lands have topography that is considered suitable for certain types of renewable
energy projects, leading to consistent interest in siting those projects on federal lands. As with
leasing for oil, gas, and coal, the use of federal lands for renewable energy must be consistent
with the land management planning process established by FLPMA and other applicable statutes.
Renewable energy uses can be considered during the formulation of RMPs for federal lands, as
discussed above. A recent BLM final rule directs the agency to “build and maintain the resilience

86 43 C.F.R. § 3420.2.
87 See Bureau of Land Management, Frequently Asked Questions about the Federal Coal Leasing Program 7,
https://eplanning.blm.gov/public_projects/nepa/64842/78268/88489/CoalFAQ.pdf (last visited June 17, 2024).
88 43 C.F.R. §§ 3425.1, 3425.2.
89 Id. §§ 3425.1-7; 3425.3.
90 Id. § 3424.5(a)(1).
91 Id. § 3424.5(a)(2).
92 Id. §§ 3430.0-7, 3432.1.
93 Id. § 3102.10.
94 30 U.S.C. § 184(a).
95 Id. § 201(a)(2).
96 Id. § 207(a).
97 Id.
98 Id.
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of ecosystems on public lands in three primary ways: (1) protecting the most intact, functioning
landscapes; (2) restoring degraded habitat and ecosystems; and (3) using science and data as the
foundation for management decisions across all plans and programs.”99 The new rule does not
change the process by which BLM makes land use planning decisions but amends BLM’s
FLPMA implementing regulations to emphasize the importance of renewable resources in
considerations of “sustained yield” and “ecosystem resilience” when developing RMPs.100 The
regulations note that “sustained yield” includes “the achievement and maintenance in perpetuity
of a high-level annual or regular periodic output of the various renewable resources of BLM-
managed lands consistent with multiple use and without permanent impairment of the
productivity of the land.”101 Renewable energy projects may have a more expanded role within
this framework.
The following laws and regulations govern specific forms of renewable energy production on
federal lands.
Geothermal Project Leasing
Geothermal energy is produced by releasing cold water under the surface of the earth into a “hot”
area in order to generate steam that fuels the generation of power. The governing law for steam
leasing is the Geothermal Steam Act of 1970.102 The Geothermal Steam Act authorizes BLM to
manage geothermal leasing on approximately 245 million acres of public lands (including 104
million acres of Forest Service lands).103 The Act sets forth detailed provisions governing the
issuance and administration of geothermal steam leases.
The laws and regulations governing geothermal steam leasing and administration are similar to
the principles and processes for oil and natural gas leasing on federal lands described in detail
earlier in this report—with a handful of notable differences. BLM has authority to conduct “direct
use” leasing of geothermal resources in which the geothermal steam is delivered directly for end
use rather than converted into electricity.104 The Energy Act of 2020105 included a provision
authorizing BLM to permit the co-production of geothermal energy under existing oil and gas
leases.106
As with oil and gas leasing, BLM administers geothermal resource development in a number of
stages after the lease auction. Exploration, production, and reclamation projects require separate
authorizations when ground-disturbing activities are proposed, and BLM must comply with
NEPA prior to issuing a lease or authorizing development activities.107 While litigation is

99 Conservation and Landscape Health, 89 Fed. Reg. 40308 (May 9, 2024).
100 Id. at 40316.
101 43 C.F.R. § 6101.4(z).
102 Pub. L. No. 91-581, 84 Stat. 1566, codified at 30 U.S.C. §§ 1001 et seq.
103 Bureau of Land Management, Geothermal Energy (Feb. 12, 2024), https://www.blm.gov/programs/energy-and-
minerals/renewable-energy/geothermal-energy. As with oil and gas leasing, BLM administers the geothermal leasing
process for lands controlled by the Forest Service subject to additional Forest Service approvals.
104 30 U.S.C. § 1003(f).
105 Pub. L. No. 118-260, 134 Stat. 1182, 2418. The Act was included as “Division Z” of broader omnibus
appropriations legislation.
106 Id. § 3105, 134 Stat 2516.
107 43 C.F.R. Part 3200.
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relatively rare due to the more limited scope of geothermal energy production on federal lands,
parties do occasionally challenge BLM’s leasing decisions under the Geothermal Steam Act.108
Rights-of-Way for Solar and Wind Power Production on Federal
Lands: Title V of FLPMA
Federal lands have significant capacity for both wind and solar energy production. However,
while oil, gas, and geothermal projects are permitted by BLM under leasing processes, those
interested in producing wind or solar energy on federal lands often seek more limited
authorizations for development of their energy projects pursuant to Title V of FLPMA.109
BLM Rights-of-Way
Section 501(a)(4) of FLPMA authorizes the Secretaries of the Interior and Agriculture to “grant,
issue or renew rights-of-way over, upon, under or through such lands for ... systems for
generation, transmission, and distribution of electric energy.”110 Parties applying for BLM rights-
of-way for development of wind or solar energy projects must satisfy a number of requirements
in their applications as set forth by the Secretary of the Interior.111 These include disclosures
regarding the use of the right-of-way, the identification of business partners and other affiliated
entities, and plans for use of the right-of-way.112
Energy rights-of-way authorized pursuant to Section 501 of FLPMA differ from oil and natural
gas leases in several respects. Perhaps the most significant difference is that when BLM grants a
right-of-way, it retains substantial rights to use of the land in question, including the rights to
access the lands and any facilities covered by the right-of-way and to require common use of the
right-of-way.113 The federal government also retains ownership of all natural resources on the
land, including minerals and vegetation.114 In addition, BLM retains the discretion to determine
whether right-of-way grants are renewable or renewed,115 and BLM retains the right to change the
terms of a right-of-way to comply with other laws or to protect public health, safety, or the
environment.116
Forest Service Special Use Authorizations
FLPMA also authorizes the Secretary of Agriculture to grant rights-of-way for lands under Forest
Service purview. Applicants seeking to make use of Forest Service lands for such a project apply
for “special use authorization” under the generally applicable regulations for such authorizations

108 See, e.g., Pit River Tribe v. BLM, 793 F.3d 1147 (9th Cir. 2015) (challenge by Indian tribes and environmental
organizations to geothermal leasing, alleging violations of the Geothermal Steam Act, NEPA, the NHPA, and the
government’s fiduciary trust obligation to Indian tribes).
109 Pub. L. No. 94-579, 90 Stat. 2743 (1976), codified at 43 U.S.C. §§1767 et seq.
110 43 U.S.C. § 1761(a). A recent Supreme Court decision held that the Forest Service retains permitting authority for
rights-of-way across the Appalachian Trail and similar areas even if DOI assigns responsibility to the trail itself to the
National Park Service. U.S.F.S. v. Cowpasture River Preservation Ass’n, 590 U.S. 604, (2020).
111 43 U.S.C. § 1761(b).
112 Id. A detailed review of the information that must be included in an application for a FLPMA right-of-way grant can
be found at 43 C.F.R. Subpart 2804.
113 43 C.F.R. § 2805.15.
114 Id. § 2805.15(c).
115 Id. § 2805.15(d).
116 Id. § 2805.15(e).
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found at 36 C.F.R. Part 251, Subpart B. All uses of National Forest System lands other than road
usage, grazing and livestock use, sale and disposal of timber and other forest products, and
mineral usage are designated as “special uses.”117
Before conducting activities on these lands that are considered special uses, an individual or
entity must submit a proposal to a Forest Service–authorized officer118 and must obtain “special
use authorization” from that officer.119 The authorized officer may grant “permits, leases and
easements ... for rights-of-way for ... [s]ystems and related facilities for generation, transmission
and distribution of electric energy,”120 which would authorize wind or solar generation facilities.
As with BLM rights-of-way, special use authorizations are subject to a number of limitations that
illuminate a few important differences from leases. The Forest Service retains continuing rights of
access and entry to all Forest System lands and the right to require common use of the land or to
authorize the use by others in any way not inconsistent with a holder’s existing rights and
privileges after consultation.121 The regulations do not establish the duration and renewability of
special use authorizations, providing simply that “[i]f appropriate, each special use authorization
will specify its duration and renewability,” which must be “no longer than the authorized officer
determines is necessary to accomplish the purpose of the authorization and to be reasonable in
light of all circumstances concerning the use.”122
Recent Legislation Related to Renewable Energy Production on Federal Lands
A number of laws passed in recent years have amended or supplemented existing laws and
regulations governing renewable energy on federal lands, usually in an effort to stimulate
increased renewable energy production. These include the Energy Act of 2020, the Infrastructure
Investment and Jobs Act of 2021, and the Fiscal Responsibility Act of 2023. This section
discusses these legislative and administrative efforts.
The Energy Act of 2020123 contains a number of provisions that amended renewable energy
policies and practices on federal lands. Title III of the Act specifically addresses “renewable
energy and storage,” and several of its provisions are relevant to federal lands:
• Section 3102 directs the Secretary of Energy to establish a new national
“Renewable Energy Coordination Office” as well as state, district and field
offices, as appropriate, with the intention of coordinating and streamlining review
of applications for renewable energy projects on federal lands.124
• Section 3103 authorizes the Secretary to adjust rates and fees to “promote the
greatest use of wind and solar energy resources.”125
• Section 3104 directs the Secretary to coordinate with other agencies to establish
national renewable energy goals and to “seek to issue permits that, in total,

117 36 C.F.R. § 251.50(a).
118 The chief of the Forest Service is considered the “authorized officer,” and the regional foresters, forest supervisors,
district rangers, and other officers can all serve as “authorized officers” though delegation. Id. § 251.52.
119 Id. § 251.52. This requirement can be waived under certain circumstances that are not likely to apply to energy
projects.
120 Id. § 251.53(l)(4).
121 Id. § 251.55(b).
122 Id. § 251.56(b).
123 Pub. L. No. 116-260, Div. Z, 134 Stat. 1182, 2418 (2020).
124 Id. § 3102, 134 Stat. 2514-2516.
125 Id. § 3103, 134 Stat. 2516.
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authorize production of not less than 25 gigawatts of electricity from wind, solar,
and geothermal energy projects by not later than 2025, through management of
public lands and administration of Federal laws.”126
DOI and BLM have taken actions to implement these requirements and authorizations. For
example, DOI created the “Renewable Energy Coordination Offices” (RECOs)127 and reached a
memorandum of understanding (MOU) with relevant agencies regarding promotion of
renewables.128 According to the agency, “[t]hrough the RECOs and the MOU, the BLM
authorized Federal permits that added 5,670 MW of clean energy to the grid in FY 2022,” nearly
double the amount authorized in the previous fiscal year.129
BLM cited the mandates and authorizations of the Energy Act in a new final rule that amends the
regulations governing renewable energy on federal lands under its purview.130 The final rule
authorizes BLM to issue renewable energy leases by application in certain areas rather than
competitive auctions.131 According to BLM, this approach is intended to give the agency more
flexibility to work with industry partners on pilot renewable energy projects and other
experimental efforts on federal lands, allowing the agency to “maximize interest in renewable
energy leasing and accelerate the deployment of solar and wind energy on the public lands.”132
The rule also lowers per-acre rental rates and capacity fees for renewable projects, with the
intended result of lower costs for energy deployment, increasing renewable energy market
penetration in domestic energy production.133
The Infrastructure Investment and Jobs Act and the Fiscal Responsibility Act also each featured a
number of provisions intended to stimulate renewable energy production and availability. These
include transmission grid enhancement measures and amendments to transmission siting policies
that would increase the capacity to deliver renewable energy generation into the power market134
and federal loan and grant programs intended to encourage the development of renewable energy
technology.135 The laws do not directly address energy production on BLM-managed lands.
Proposals and Considerations in the 118th Congress
Members have introduced a variety of legislation in the 118th Congress intended to guide policy
for energy exploration and production on federal lands. For example, the Public Land Renewable
Energy Development Act of 2023 (H.R. 178) would require BLM to establish “priority areas”

126 Id. § 3104, 134 Stat. 2516.
127 U.S. Department of the Interior, Bureau of Land Management, Establishment of Renewable Energy Coordination
Offices (May 31, 2022), https://www.blm.gov/policy/ib-2022-040.
128 Memorandum of Understanding between United States Department of the Interior and United States Department of
Agriculture, United States Department of Defense, United States Department of Energy, and United States
Environmental Protection Agency to Improve Public Land Renewable Energy Coordination (Jan. 6, 2022),
https://www.doi.gov/sites/doi.gov/files/mou-esb46-04208-pub-land-renewable-energy-proj-permit-coord-doi-usda-dod-
epa-doe-2022-01-06.pdf.
129 U.S. Department of the Interior, Bureau of Land Management, Public Land Renewable Energy- Fiscal Year 2022
Report to Congress (2023), https://www.blm.gov/sites/default/files/docs/2023-
12/FY22%20Report%20to%20Congress%2003Nov2023.pdf, at 4.
130 Rights-of-Way, Leasing, and Operations for Renewable Energy, 89 Fed. Reg. 35364 (May 1, 2024).
131 Id. at 35670.
132 Id. at 35636.
133 Id. at 35636, 35647.
134 Infrastructure Investment and Jobs Act, Pub. L. No. 117-58 §§ 40101-40107, 135 Stat. 429, 923-941 (2021).
135 Id. §§ 40201-40206, 40341-42, 135 Stat. 958-963, 1030-1032.
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where policies would prioritize renewable energy development.136 A number of other bills would
direct DOI to conduct specific lease auctions.137 Members have also introduced legislation
intended to accelerate the application review process for various energy projects or to minimize
the sort of litigation challenges to energy development activities detailed in this report.138
Congress may also choose to respond to the administrative actions taken by BLM in its 2024 final
rules pertaining to renewable energy projects and land management/sustainability principles.

Author Information

Adam Vann

Legislative Attorney

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136 H.R. 178, 118th Cong. (2023).
137 See, e.g., S. 947, 118th Cong. Div. B, Title I (2023) (directing a minimum of four lease sales a year in certain
Western states); S. 3289, 118th Cong. (2023) (directing DOI to lease certain lands in the Coastal Plain of the National
Petroleum Reserve in Alaska).
138 See e.g., S.1456, 118th Cong. (2023); S. 947, Div. B, Title II.
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