It seems as though oil and gas lease auctions get attention from the public at large only when the sales date is approaching. At this point, most of the major decisions regarding the sale have already been made. Much less attention is given to the preceding period that takes place many years prior to the sale, when there are options available, and results are uncertain. That time has now come for certain parts of Montana and North Dakota.
How will this assist in shaping future decisions?
Before any parcels are finalized or put up for bid, the Bureau of Land Management (BLM) has initiated a preliminary stakeholder feedback process in preparation for the oil and gas lease auction planned for August 2026 in Montana and North Dakota. A preliminary feedback process precedes parcel selection by the agency, and the BLM is currently considering lands that may ultimately be included in the sale.
Currently, the BLM is not permitting drilling nor determining the winning bidder. Rather, the BLM is seeking early input on which areas should be considered, potential conflict areas, and/or areas that should receive additional scrutiny or be excluded entirely.
Although this phase is procedural in nature, it typically sets the parameters for all subsequent phases.
Where the boundaries of a region matter
When Federal Lands play a critical role in energy development within a state, these boundaries are of great importance.
Understanding the context of the process
There is a defined structure to federal leasing. Early stakeholder feedback is one of the least visible of these steps. Early stakeholder feedback affords the agency an opportunity to recognize environmental concerns, current land use, and local priorities related to parcels prior to their advancement to more formal environmental analysis.
Both Montana and North Dakota have significant energy activities adjacent to agriculture, wildlife habitat, and recreation. While this balancing act is not unfamiliar to both states, the timing is different. By initiating the stakeholder feedback process approximately seven months before the proposed auction, the BLM is providing the opportunity for concerns to arise early, and therefore allowing for changes to occur at that time.
Although early input will not result in consensus, it will significantly influence the agency’s definitions of options available in later phases of the process.
Why is attention being directed to this phase?
Oil and gas leasing is not a new concept. However, the context of the leasing activity has changed. There is increasing overlap between energy markets, land conservation priorities, and community expectations, particularly in areas where development has historically been a part of the local economy.
Input provided during the early phase can impact whether parcels proceed through environmental review, and thereby whether they continue to be considered for leasing. Additionally, the conditions and/or restrictions considered, if leasing occurs, are also impacted by the early phase. For industry participants, this phase provides an early indication of potential leasing opportunities. For other stakeholders, this is likely to be the earliest opportunity to raise concerns regarding potential leasing activities prior to relying on litigation post-decision-making. Additionally, even a limited number of parcels can affect long-term regional development, including infrastructure planning, land access, etc.
Establishing a foundation for a future event
While the August 2026 lease auction may seem distant, the framework for the event is already in the process of being established. When parcels progress past the early phase, the opportunity for change decreases dramatically. Stakeholder feedback during the early phase of leasing rarely appears to be pivotal; it often establishes the options that remain on the table. In Montana and North Dakota, the early phase of leasing illustrates how federal land decisions develop long before public interest reaches a peak.
