BOEM sets out details for first three lease sales under ‘Big Beautiful Bill’ Act

The Bureau of Ocean Energy Management has announced two major steps toward expanding offshore energy development pursuant to the One Big Beautiful Bill Act (Public Law No: 119-21).

BOEM has released the Final Notice of Sale for Lease Sale Big Beautiful Gulf 1 (BBG1), the first of 30 Gulf of America lease sales required by the One Big Beautiful Bill Act (Public Law No: 119-21), and the Proposed Notice of Sale for Big Beautiful Cook Inlet 1 (BBC1), the first of six lease sales in Alaska’s Cook Inlet required by the One Big Beautiful Bill Act.

BOEM will hold the first required lease sale, GOA Lease Sale Big Beautiful Gulf 1 (BBG1), on Dec. 10, 2025. 

“President Trump’s signing of the One Big Beautiful Bill Act marked the beginning of a new chapter for oil and gas development in the Gulf of America and Alaska’s Cook Inlet,” said BOEM Acting Director Matt Giacona. “BOEM is now moving forward with a predictable, congressionally mandated leasing schedule that will support offshore oil and gas development for decades to come.”

The “Big Beautiful Gulf 1 (BBG1) – Gulf of America Lease Sale,” also called “Big Beautiful Gulf 1,” will make roughly 80 million acres available for leasing across the “Gulf of America.” The lease sale will be the first of 30 Gulf of America lease sales mandated by the One Big Beautiful Bill Act. 

Certain areas will be excluded, including blocks withdrawn on September 8, 2020, blocks beyond the U.S. Exclusive Economic Zone in the Eastern Gap, and areas within the Flower Garden Banks National Marine Sanctuary.

To encourage industry participation, BOEM has set a 12.5% royalty rate—the lowest rate permitted by statute—for both shallow and deepwater leases.

The Proposed Notice of Sale for BBC1 also proposes to make approximately one million acres available for leasing in Alaska’s Cook Inlet. This is the first of at least six Cook Inlet lease sales required by the One Big Beautiful Bill Act, scheduled annually from 2026 to 2028, and from 2030 to 2032.

Here again, to encourage industry participation, BOEM has set a 12.5% royalty rate—the lowest rate allowed by statute—for both shallow and deepwater leases.

The BOEM has also announced a Proposed Notice of Sale for the second offshore oil and gas lease sale in the “Gulf of America” under the One Big Beautiful Bill Act. The proposed lease sale, known as Big Beautiful Gulf, or BBG2, is scheduled to take place on March 11, 2026.

This sale will be the second of thirty “Gulf of America” oil and gas lease sales required by the One Big Beautiful Bill Act. 

“Lease Sale BBG2 marks another major milestone in advancing a robust and forward-looking offshore oil and gas program in the Gulf of America,” said Giacona. “Building on the momentum of BBG1, this proposed sale reinforces BOEM’s commitment to restoring certainty and long-term investment in the U.S. Outer Continental Shelf. By offering leases under a competitive 12.5% royalty rate, BBG2 sends a clear signal that the era of regulatory uncertainty is behind us, and a new phase of responsible energy leadership has begun.”

Lease Sale BBG2 proposes to offer approximately 15,000 unleased blocks covering about 80 million acres on the U.S. Outer Continental Shelf in the Gulf of America. The blocks, located three to 231 miles offshore, span water depths from nine feet to more than 11,100 feet.

The Proposed Notice of Sale will be published in the Federal Register on Nov. 20, 2025, initiating a 60-day comment period for affected state governors and local governments. Following the review of governor input, BOEM will publish a final notice of sale in the Federal Register at least 30 days prior to the scheduled lease sale date on March 11, 2026. More information, including the PNOS package and a detailed map of the proposed lease sale area, is available on BOEM’s website.