How will the Big Beautiful Bill’s reduced oil-and-gas royalty rates impact Wyoming?

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Share this:A federal oil and natural gas lease sale in Wyoming this month netted $8.5 million for 32 parcels spanning 39,225 acres, according to the U.S. Bureau of Land Management. The One Big Beautiful Bill, passed in July, reduced the royalty rate for federal oil and gas from 16.67% to 12.5%. “Competitive, market-rate royalty rates do not affect industry interest or production decisions — lowering rates only shortchanges taxpayers by reducing future royalty revenue,” Taxpayers for Common Sense wrote. The Inflation Reduction Act increased the federal oil and gas royalty rate from 12.5% to 16.67% in 2022, Obermueller noted. The industry holds a vast amount of federal oil and gas leases that it has not acted on, they note.