BOEM publishes PNOS for U.S. Gulf oil and gas Lease Sale 262

Proposed are of oilk and gas Lease Sale 262 [Image: BOEM]

The Bureau of Ocean Energy Management yesterday announced the publication of a Proposed Notice of Sale (PNOS) for an oil and gas lease sale in the Gulf of America. As directed by Secretary of the Interior Doug Burgum and outlined in the PNOS, Lease Sale 262 will offer approximately 15,000 unleased blocks located 3 to 231 miles offshore across the Gulf’s Western, Central, and Eastern Planning Areas. Covering roughly 80 million acres, these blocks are situated in water depths ranging from 9 feet to more than 11,100 feet (3 to 3,400 meters).

“To support robust industry participation, lower production costs, and unleash the full potential of the Gulf of America’s offshore energy reserves, BOEM is proposing a royalty rate of 16 ⅔ percent for both shallow and deepwater leases—the lowest rate for deepwater since 2007,” said BOEM’s Acting Regional Director for the GOA Laura Robbins.

The Notice of Availability for the PNOS will be available for public inspection in the Federal Register on June 26, 2025, and will officially be published on June 27, 2025.

The publication of the PNOS will initiate a 60-day comment period for the affected state governors and local governments. Following the comment period, BOEM will issue a Final Notice of Sale in the Federal Register at least 30 days before the scheduled public bid reading, which will be live streamed via Zoom. The lease sale bid reading is proposed for December 10, 2025.

“This is welcome news and a timely step that reaffirms America’s commitment to offshore energy leadership,” said National Ocean Industries Association (NOIA) president Erik Milito. “It underscores the vital role the Gulf of America plays in providing affordable, reliable energy, supporting hundreds of thousands of good-paying jobs, and reinforcing our national security.

“We commend Secretary Burgum and the administration for advancing this process and restoring much-needed predictability to the offshore leasing program. This action sets the stage for continued investment, innovation, and responsible development in one of the world’s most strategic energy regions. We look forward to working with policymakers to ensure the Gulf’s continued contributions to U.S. energy strength for generations to come.”

Lease Sale 262 is the first of three planned lease sales in the Gulf under the 2024–2029 Outer Continental Shelf Oil and Gas Leasing Program. BOEM is also in the process of developing a new National Outer Continental Shelf Oil and Gas Leasing Program that will include additional leasing opportunities.

The Gulf of America Outer Continental Shelf spans approximately 160 million acres and is estimated to contain around 48 billion barrels of undiscovered, recoverable oil and 141 trillion cubic feet of natural gas.

Leases awarded through Lease Sale 262 will be for oil and gas exploration and development only. Certain areas may be excluded from this lease sale, including blocks subject to the Sept. 8, 2020, presidential withdrawal, blocks adjacent to or beyond the U.S. Exclusive Economic Zone in the northern portion of the Eastern Gap, and blocks within the current boundaries of the Flower Garden Banks National Marine Sanctuary.

Outer Continental Shelf oil and gas activities generate billions of dollars from lease sales, rental fees and royalties. The funds are distributed to the U.S. Treasury, as well as states through several different revenue sharing programs that fund conservation and outdoor recreation across the nation. The largest portion goes to the General Fund of the U.S. Treasury, which benefits all U.S. citizens through funding of daily operations of the federal government. Offshore development fuels state and federal revenues, helping fund infrastructure, education and public services.

• More on Lease Sale 262 HERE