Research list
Oil and Gas Royalty Rates: Federal, State Land and Private Leases (2026)
Oil and gas royalty rates are published only where the public is the lessor: Congress sets the federal rate, and state land offices print theirs on every sale notice and lease form. Here are those rates, read in the statute or document itself, with what is known about private leases.
Where to look first
An oil and gas royalty rate is the share of production, or of its value, that the mineral owner keeps free of the cost of drilling. Public owners publish theirs: the federal rate is set by statute, and state land offices print theirs on each sale notice or lease form. Private rates are whatever each lease says.
| Question | Answer |
|---|---|
| What is the federal onshore royalty rate? | At least 12.5 percent for leases issued since July 4, 2025 |
| Federal offshore? | 12.5 to 16 2/3 percent by statute; 12.5 percent in the August 2026 Gulf sale |
| Which state land rates are above one sixth? | Texas Relinquishment Act lands at 25 percent, New Mexico and Colorado at one fifth, and Oklahoma and core North Dakota at 3/16 |
| Is there a minimum royalty on private leases? | Pennsylvania sets 12.5 percent by statute; most states set none, and the lease decides |
| What do private leases pay? | Ohio State Extension reports 12.5 to 20 percent on modern wells; private rates are not published nationally |
How we checked
Every rate below was read on its own page or filing on October 5, 2026, and each figure is given as that source states it. Nothing here is paid placement, and AMR earns nothing from any organization listed.
Federal rates were read in the current statute, and state rates on each land office’s latest sale notice or lease form. Three state sites refuse visitors from outside the United States; those rows rely on archived copies of the agency’s own page, and say so.
Rates at a glance
| Lessor | Royalty rate | Applies to |
|---|---|---|
| Federal onshore leases | 12.5 percent minimum (one eighth) | Competitive and noncompetitive BLM oil and gas leases issued since July 4, 2025 |
| Federal offshore leases | 12.5 to 16 2/3 percent; 12.5 percent in the latest Gulf sale | Outer Continental Shelf leases; Gulf of America Lease Sale BBG3, held August 12, 2026, for all water depths |
| Texas, Permanent School Fund lands | At least one eighth; the School Land Board sets the rate | Public school and Gulf land leased by the School Land Board |
| Texas, Relinquishment Act lands | 25 percent | Royalty owed to the state on an unleased undivided surface owner interest, until payout |
| New Mexico State Land Office | One fifth (20 percent) | Development lease form, sealed tracts in the November 17, 2026 sale |
| Oklahoma Commissioners of the Land Office | 3/16 (18.75 percent) | Mineral leases at the September 2026 auction, with $1.00 an acre delay rental |
| Colorado State Land Board | One fifth (20 percent), with no post-production deductions | State Land Board oil and gas leases |
| Wyoming Office of State Lands and Investments | One sixth or one eighth, set for each parcel | State oil and gas lease auctions |
| North Dakota Department of Trust Lands | 3/16 in seven core counties, one sixth elsewhere | Leases at the October 2026 auction |
| Montana DNRC | 16.67 percent, free of costs; the statute sets a 12.5 percent floor | State trust land leases |
| Utah Trust Lands Administration | 16 2/3 percent, free of production costs | Trust lands oil and gas only lease form |
| Louisiana State Mineral and Energy Board | At least one eighth, as a minimum royalty bid | Bids at state lease sales |
| Alaska Division of Oil and Gas | One sixth (16.67 percent) or one eighth (12.5 percent), fixed by sale area | Beaufort Sea and North Slope areawide sales of 2026 |
| California State Lands Commission | At least 16 2/3 percent, on a sliding scale for oil | State lands, including tide and submerged lands |
1. Federal onshore leases, 12.5 percent minimum (one eighth)
Federal onshore leases: 12.5 percent minimum (one eighth). It applies to competitive and noncompetitive BLM oil and gas leases issued since July 4, 2025.
- Rate
- 12.5 percent minimum (one eighth)
“conditioned upon the payment of a royalty at a rate of not less than 12½ per centum in amount or value of the production”
30 U.S.C. 226(b)(1)(A) and (c)(1), as amended by P.L. 119-21
The Inflation Reduction Act had raised the rate to 16 2/3 percent from August 16, 2022; P.L. 119-21 repealed that on July 4, 2025. AMR’s federal mineral royalties page covers the leases issued in between.
Read on October 5, 2026: law.cornell.edu
2. Federal offshore leases, 12.5 to 16 2/3 percent
Federal offshore leases: 12.5 to 16 2/3 percent; 12.5 percent in the latest Gulf sale. It applies to outer Continental Shelf leases; Gulf of America Lease Sale BBG3, held August 12, 2026, for all water depths.
- Rate
- 12.5 to 16 2/3 percent; 12.5 percent in the latest Gulf sale
“cash bonus bid with a royalty at not less than 12½ percent, but not more than 16⅔ percent, fixed by the Secretary”
43 U.S.C. 1337(a)(1)(A); final notice of sale for BBG3
The BBG3 notice set “12 ½ percent for blocks in all water depths”, the minimum the 2025 law allows.
Read on October 5, 2026: law.cornell.edu
3. Texas, Permanent School Fund lands, at least one eighth
Texas, Permanent School Fund lands: at least one eighth; the School Land Board sets the rate. It applies to public school and Gulf land leased by the School Land Board.
- Rate
- At least one eighth; the School Land Board sets the rate
- Authority
- Tex. Nat. Res. Code 52.022
“The royalty rate set must be at least one-eighth of the gross production or the market value of the oil and gas produced.”
Tex. Nat. Res. Code 52.022
No General Land Office page states the rate the board uses in practice.
Read on October 5, 2026: glo.texas.gov
4. Texas, Relinquishment Act lands, 25 percent
Texas, Relinquishment Act lands: 25 percent. It applies to royalty owed to the state on an unleased undivided surface owner interest, until payout.
- Rate
- 25 percent
“shall be paid a royalty of twenty-five percent (25%) of the value of the Gross Production allocable to the unleased undivided interest”
General Land Office guidelines for leasing Relinquishment Act lands
Read on October 5, 2026: glo.texas.gov
5. New Mexico State Land Office, one fifth (20 percent)
New Mexico State Land Office: one fifth (20 percent). It applies to development lease form, sealed tracts in the November 17, 2026 sale.
- Rate
- One fifth (20 percent)
“DEVELOPMENT LEASE FORM, five (5) year term, 1/5th royalty”
NMSLO November 2026 lease sale book; NMSA 1978 19-10-4.3
Read on October 5, 2026: nmstatelands.org
6. Oklahoma Commissioners of the Land Office, 3/16 (18.75 percent)
Oklahoma Commissioners of the Land Office: 3/16 (18.75 percent). It applies to mineral leases at the September 2026 auction, with $1.00 an acre delay rental.
- Rate
- 3/16 (18.75 percent)
- Authority
- CLO sale notice, September 2026
“will provide for 3/16ths royalty, and an annual delay rental of $1.00 per net acre”
CLO sale notice, September 2026
The June 2026 notice says the same.
Read on October 5, 2026: clo.ok.gov
7. Colorado State Land Board, one fifth (20 percent)
Colorado State Land Board: one fifth (20 percent), with no post-production deductions. It applies to state Land Board oil and gas leases.
- Rate
- One fifth (20 percent), with no post-production deductions
“The Board’s current royalty rate is 1/5th with no deductions allowed for post-production costs.”
State Land Board oil and gas leasing page
Read from an archived copy dated February 9, 2026, because the live site refuses visitors from outside the United States.
Read on October 5, 2026: web.archive.org
8. Wyoming Office of State Lands and Investments, one sixth or one eighth
Wyoming Office of State Lands and Investments: one sixth or one eighth, set for each parcel. It applies to state oil and gas lease auctions.
- Rate
- One sixth or one eighth, set for each parcel
- Authority
- OSLI auction information page
“a royalty rate of one-sixth or one-eighth of the production, as indicated on the parcel listing”
OSLI auction information page
Read on October 5, 2026: lands.wyo.gov
9. North Dakota Department of Trust Lands, 3/16 in seven core counties
North Dakota Department of Trust Lands: 3/16 in seven core counties, one sixth elsewhere. It applies to leases at the October 2026 auction.
- Rate
- 3/16 in seven core counties, one sixth elsewhere
- Authority
- October 2026 auction land unit list
“all leases located within the following counties will be leased at a 3/16 royalty rate”
October 2026 auction land unit list
The seven are Billings, Divide, Dunn, Golden Valley, McKenzie, Mountrail and Williams.
Read on October 5, 2026: land.nd.gov
10. Montana DNRC, 16.67 percent
Montana DNRC: 16.67 percent, free of costs; the statute sets a 12.5 percent floor. It applies to state trust land leases.
- Rate
- 16.67 percent, free of costs; the statute sets a 12.5 percent floor
“a royalty of 16.67%, free of all costs and deductions, on the average production of the oil”
DNRC lease form DS-423 (January 2024); MCA 77-3-432
Read on October 5, 2026: dnrc.mt.gov
11. Utah Trust Lands Administration, 16 2/3 percent
Utah Trust Lands Administration: 16 2/3 percent, free of production costs. It applies to trust lands oil and gas only lease form.
- Rate
- 16 2/3 percent, free of production costs
“Lessee shall pay Lessor a royalty, free of all production costs and expenses, of sixteen and two-thirds’ percent (16 2/3%)”
TLA oil and gas only lease form, section 4.1
Read from an archived copy of the form dated May 2025, because the live site sits behind a bot check.
Read on October 5, 2026: web.archive.org
12. Louisiana State Mineral and Energy Board, at least one eighth
Louisiana State Mineral and Energy Board: at least one eighth, as a minimum royalty bid. It applies to bids at state lease sales.
- Rate
- At least one eighth, as a minimum royalty bid
“the Minimum Royalty bid cannot be less than one-eighth (1/8) of all oil, gas or other liquid or gaseous minerals”
La. R.S. 30:127, as cited on the board’s notice
Bidders compete on royalty as well as bonus, so awarded rates can be higher.
Read on October 5, 2026: dce.louisiana.gov
13. Alaska Division of Oil and Gas, one sixth (16.67 percent) or one eighth (12.5 percent)
Alaska Division of Oil and Gas: one sixth (16.67 percent) or one eighth (12.5 percent), fixed by sale area. It applies to beaufort Sea and North Slope areawide sales of 2026.
- Rate
- One sixth (16.67 percent) or one eighth (12.5 percent), fixed by sale area
- Authority
- Notice of sale, September 28, 2026
“All Tracts Cash Bonus $35.00 16.66667% Fixed”
Notice of sale, September 28, 2026
The North Slope South Sub-Region and the Foothills carry 12.5 percent.
Read on October 5, 2026: dog.dnr.alaska.gov
14. California State Lands Commission, at least 16 2/3 percent
California State Lands Commission: at least 16 2/3 percent, on a sliding scale for oil. It applies to state lands, including tide and submerged lands.
- Rate
- At least 16 2/3 percent, on a sliding scale for oil
- Authority
- Cal. Pub. Res. Code 6827
“shall specify a sliding scale royalty on oil commencing at not less than 16 2 / 3 percent”
Cal. Pub. Res. Code 6827
Read on October 5, 2026: leginfo.legislature.ca.gov
Private leases
On private land the rate is whatever the lease says; only a few states set a floor, and no agency publishes what private leases pay.
| State | Rate | Source of the rate | Read |
|---|---|---|---|
| Pennsylvania | At least 12.5 percent, by statute | The state’s minimum royalty act, 58 P.S. 33, as Penn State Extension describes it | extension.psu.edu |
| West Virginia | At least one eighth of gross proceeds | W. Va. Code 22-6-8(e), for wells under old flat rate leases only; read from an archived copy | code.wvlegislature.gov |
| Ohio, typical | 12.5 to 20 percent | Ohio State University Extension fact sheet ANR-88 | ohioline.osu.edu |
Common questions
What is the average oil and gas royalty rate?
No national average is published. One eighth, 12.5 percent, is the traditional floor; state land offices now charge one sixth to one fifth, and Ohio State Extension reports 12.5 to 20 percent on modern private wells.
What is the federal oil and gas royalty rate in 2026?
At least 12.5 percent for new onshore leases, after P.L. 119-21 repealed the Inflation Reduction Act’s 16 2/3 percent on July 4, 2025.
What royalty rate does Texas charge on state land?
At least one eighth on Permanent School Fund land, set by the School Land Board, and 25 percent on unleased interests in Relinquishment Act lands.
Does the rate include post-production costs?
Not by itself. Whether costs come out of royalty depends on the lease and the state; see AMR’s royalty deductions by state.
Summary
Public lessors charge from one eighth to one quarter, and most producing state land offices now ask one sixth to one fifth, above the restored federal 12.5 percent. To turn a rate into dollars, use AMR’s royalty calculator.
Sources
Every page below was opened on October 5, 2026.
- 30 U.S.C. 226(b)(1)(A) and (c)(1), as amended by P.L. 119-21
- 43 U.S.C. 1337(a)(1)(A); final notice of sale for BBG3
- Tex. Nat. Res. Code 52.022
- General Land Office guidelines for leasing Relinquishment Act lands
- NMSLO November 2026 lease sale book; NMSA 1978 19-10-4.3
- CLO sale notice, September 2026
- State Land Board oil and gas leasing page
- OSLI auction information page
- October 2026 auction land unit list
- DNRC lease form DS-423 (January 2024); MCA 77-3-432
- TLA oil and gas only lease form, section 4.1
- La. R.S. 30:127, as cited on the board’s notice
- Notice of sale, September 28, 2026
- Cal. Pub. Res. Code 6827
Cite this list
American Mineral Registry. "Oil and Gas Royalty Rates: Federal, State Land and Private Leases (2026)." Release 2026.10.1, October 5, 2026. https:// americanmineralregistry.com/ research/ oil-and-gas-royalty-rates
[Oil and Gas Royalty Rates: Federal, State Land and Private Leases (2026)](https:// americanmineralregistry.com/ research/ oil-and-gas-royalty-rates), American Mineral Registry, release 2026.10.1 (October 5, 2026).
<a href="https:// americanmineralregistry.com/ research/ oil-and-gas-royalty-rates">Oil and Gas Royalty Rates: Federal, State Land and Private Leases (2026)</ a>, American Mineral Registry, release 2026.10.1 (October 5, 2026).
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