BLM - Fluid Minerals Home

Midway-Sunset Oil Field
near Bakersfield, California

Oil and Gas, and Geothermal Resources
BLM is responsible for leasing oil and gas and geothermal resources on all Federally owned lands, including those lands managed by other Federal agencies. This includes about 564 million acres of Federal minerals estate, or about 28 percent of all lands within the United States. BLM is responsible for review and approval of permits and licenses to explore, develop, and produce oil and gas and geothermal resources on both Federal and Indian lands. BLM is also responsible for inspection and enforcement of oil, gas, and geothermal wells and other development operations to ensure that lessees and operators comply with lease requirements and regulations. Although the Bureau of Indian Affairs issues leases on Indian lands, BLM handles the operational approvals and supervision of operations on these lands.

The Geysers, with power plants on private land and on Federal leases. View of Mount St. Helena in the distance

Helium Monument
Amarillo, Texas

Helium
Helium is extracted from natural gas, and all natural gas contains at least trace quantities of helium. The BLM is responsible for the management, conservation, storage, and sale of helium on Federal lands. Helium on Federal lands is reserved by law to the Federal Government. Federal oil and gas leases obligate the lessee to include provisions to pay for extracted Federal helium commingled in any gas sales contract. The Helium Operations program is administered by the Amarillo Field Office in Amarillo, Texas, under BLM's New Mexico State Office.

Revenues Generated
The amount of revenues generated by the Federal oil and gas, geothermal, and helium programs vary from year to year depending on a number of factors, including current price of the commodity, exploration and development activities by industry, and volumes of the commodity actually produced. Of the several billions of dollars worth of oil and gas and geothermal resources that are produced on Federal leases, a percentage is paid to the United States Treasury as royalty on these leases. Bonus bids on new lands offered for competitive oil and gas lease sale and rental on existing leases also add income to the United States. The helium program, too, generates returns to the Treasury each year.

Revenue Sharing with States
A large share of the monies collected on oil and gas and geothermal leases is returned to the States where the resource was produced. The proportion of the mineral revenues returned to the States depends on the Federal lands from which the resource was produced and the law that established how revenues would be distributed. For most Federal oil and gas or geothermal leases, 50 percent of all revenues collected are returned to the States.

Graphic: M'Lee Beazley
Albuquerque Field Office

The National Petroleum Forum focuses on national public land issues related to petroleum exploration, development, and production. It is an opportunity for BLM to extend its outreach and hear from all interested parties. The Forum will meet in Cheyenne, Wyoming, on June 21, 2004. The National Fluid Minerals Conference will meet June 22 - 24. Click here for location and registration details for the Forum and the Conference.

The National Petroleum Forum eCommerce Subcommittee is a liaison between industry, State, and Federal agencies. The Subcommittee provides guidance on electronic permitting and promotes eCommerce business practices.