No, the market rate of royalties is typically 16.5% to 25%.
Posted on: July 14, 2025 at 19:53:16 CT
TigerMatt STL
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The US government pegged it way under what private land owners get at 12.5%. This pegging existed until the Inflation Reduction Act of 2022 pushed by Biden increased it to 16.67%.
Non-competitive land lease deals were permitted until the Inflation Reduction Act of 2022 pushed by the Biden admin.
Royalty rates are fixed, they aren’t driven by market rates. The US government generates less income from federal lands than states and private land owners.
If the government sets aside a tract of land for lease to oil, gas or coal, it isn’t available for lease for any other purposes, locking the land out of a free market.
Edited by TigerMatt at 19:53:46 on 07/14/25