The Federal energy mix managed by BLM includes oil and gas, coal, and increasingly, renewable sources of energy such as geothermal, wind, and biomass -- energy derived from plants. Because of this, the BLM’s role in implementing the Energy Policy Act of 2005 is critical. The Act aims to secure America’s energy future by promoting dependable, affordable, and environmentally sound energy production while reducing U.S. dependence on foreign oil. 

 

The BLM reviews and approves permits and licenses from companies 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 the lease requirements and BLM's regulations. Although the Bureau of Indian Affairs issues leases on Indian lands, BLM handles the operational approvals and supervision of operations on these lands.

Companies operating under Federal lands must make royalty payments, rentals, bonus payments, and sometime, fines and penalties. The amount of revenue generated vary from year to year depending on a number of factors, including the current price of the commodity, exploration and development activities by the industry, and volumes of the commodity actually produced.  This money goes to the United States Treasury and to the States where the resource was produced.

 

In fiscal year 2005, more than $3.4 billion was paid to Federal and State governments as royalties, rents and bonuses for Federal onshore energy leasing and production.