This bill reduces federal royalties, fees, and minimum bids for oil and gas drilling on public lands. It cuts the royalty rate from 16.67 percent to 12.5 percent, slashes minimum lease bids from 10 dollars to 2 dollars per acre, and lowers annual rental rates to 1.50 dollars per acre for the first five years.
Latest Action
Referred to the House Committee on Natural Resources.
AI Summary
Plain-English explanation of this bill
This bill reduces federal royalties, fees, and minimum bids for oil and gas drilling on public lands. It cuts the royalty rate from 16.67 percent to 12.5 percent, slashes minimum lease bids from 10 dollars to 2 dollars per acre, and lowers annual rental rates to 1.50 dollars per acre for the first five years.
Last updated: 1/5/2026
Official Summary
Congressional Research Service summary
<p><strong>Declaration of Energy Independence Act</strong></p><p>This bill reduces certain royalty rates, minimum bids, rental rates, and fees for onshore oil and gas leases on federal lands and modifies related leasing procedures.</p><p>Specifically, the bill (1) decreases the royalty rate from 16 2/3% to 12 1/2% for developing oil and gas on federal lands, (2) lowers the minimum bid amount from $10.00 to $2.00 per acre for oil and gas leases on federal lands, and (3) decreases the rental rates from a maximum of $15.00 per acre to $1.50 per acre for the first five years and $2.00 per acre thereafter. The bill also eliminates the fee for expressing interest in a lease. </p><p>It also modifies leasing procedures to provide for noncompetitive leasing under certain circumstances.</p><p>In addition, the bill modifies the conditions for the reinstatement of leases that have been cancelled or terminated, including by reducing the applicable royalty and rental rates.</p>
Key Points
Main provisions of the bill
Reduces oil and gas royalty rate from 16.67 to 12.5 percent
Lowers minimum lease bids from 10 dollars to 2 dollars per acre
Cuts rental rates from 15 dollars to 1.50-2 dollars per acre
Eliminates fees for expressing interest in federal leases
Allows noncompetitive leasing under certain conditions
How This Impacts Americans
Potential effects on citizens and communities
Energy companies would pay significantly less to drill on federal lands, potentially boosting domestic production. However, this would reduce federal revenue from public lands by billions of dollars. Environmental groups oppose it as subsidizing fossil fuels, while industry says it promotes energy independence.
Policy Areas
Primary Policy Area
Energy
Scope & Jurisdiction
Jurisdiction Level
federal
Congressional Session
119th Congress
Citation Reference
526, 119th Congress (2025). "Declaration of Energy Independence Act". Source: Voter's Right Platform. https://votersright.org/bills/118-hr-526
