What is the rental fee for leases issued in accordance with the 1987 Reform Act?
Annual rental rates for both competitive and noncompetitive leases are $1.50 per acre (or fraction thereof) in the first 5 years and $2.00 per acre each year thereafter. The first year’s rental payment is filed with your offer in the proper BLM office. Once you obtain your lease, you must pay the second and all subsequent rental payments to the Department of the Interior’s Minerals Management Service (MMS) on or before the lease anniversary date. If your rental is not received by the MMS on or before the anniversary date each year, your lease will automatically terminate. You should mail the rental payment at least a week or 10 days before the lease anniversary date. You should pay MMS directly. The BLM will not forward any misfiled payments to the MMS. What are the royalties? The MMS collects a royalty on production of 12.5 percent for both competitive and noncompetitive leases. Can I transfer a lease interest? You may transfer your interest in a lease by assignment of the record titl
