USDA Forest Service issues revised oil-and-gas leasing rule

The USDA’s Forest Service finalized revisions to its regulation governing federal oil-and-gas resources on National Forest System lands.

The revision modernizes and streamlines the process for managing energy development across millions of acres.

U.S. Secretary of Agriculture Brooke Rollins and Interior Secretary Doug Burgum announced the updated rule Jan. 27, emphasizing the Trump administration’s joint commitment to eliminating outdated and burdensome processes and advancing President Trump’s executive orders on declaring a national energy emergency and unleashing American energy.

“President Trump has made it clear that unleashing American energy requires a government that works at the speed of the American people, not one slowed by bureaucratic red tape,” Rollins said. “This rule gives energy producers the certainty they need to expand supply to make energy more affordable, create jobs and ensure America remains the dominant force in global energy markets—all while safeguarding forests and communities. Energy security is national security. These revisions create clarity and alignment across federal agencies, allowing our teams to move swiftly on leasing and permitting so American families and businesses can rely on affordable, dependable energy, while continuing to be good stewards of our public lands.”

Burgum added, “We are replacing the Biden administration’s bureaucratic delays with American innovation and efficiency. These new rules provide the certainty needed to boost production, slash energy costs and guarantee our global leadership. By streamlining permitting and cutting bureaucracy, we are lowering costs for families, creating jobs and securing our nation all while protecting our public lands.”

The final rule (36 CFR 228 Subpart E), now published in the Federal Register, updates and simplifies federal oil-and-gas leasing procedures, allowing the Forest Service and Bureau of Land Management to seamlessly coordinate when issuing permits.

By establishing a single, clearly defined leasing decision point and reducing duplicative analysis, the rule improves response times to industry requests, helps reduce longstanding backlogs, accelerates lease issuance and supports the timely processing of applications for permits to drill.

Under federal law, the Forest Service manages the surface estate of National Forest System lands, while BLM manages the subsurface mineral estate.

The two agencies work together to develop permitting conditions under their respective authorities.

Currently, 5,154 federal oil-and-gas leases cover approximately 3.8 million acres (about 2 percent) of National Forest System lands.

Of these, roughly 2,850 leases spanning 1.8 million acres across 39 national forests and grasslands contain producing federal oil or gas wells.