Sales of Fossil Fuels Produced 

from Federal and Indian Lands, 

FY 2003 through FY 2011

March 2012

Independent Statistics & Analysis

www.eia.gov

U.S. Department of Energy

Washington, DC 20585
U.S. Energy Information Administration | Sales of Fossil Fuels Produced on Federal and Indian Lands, FY 2003 through FY 2011 i

This report was prepared by the U.S. Energy Information Administration (EIA), the statistical and 

analytical agency within the U.S. Department of Energy. By law, EIA’s data, analyses, and forecasts are 

independent of approval by any other officer or employee of the United States Government. The views 

in this report therefore should not be construed as representing those of the Department of Energy or 

other Federal agencies.
March 2012

U.S. Energy Information Administration | Sales of Fossil Fuels Produced on Federal and Indian Lands, FY 2003 through FY 2011 1

Background

This paper was prepared in response to recent requests that the U.S. Energy Information Administration 

(EIA) provide updated summary information regarding fossil fuel production on Federal and Indian 

lands1 in the United States. It provides EIA’s current best estimates of fossil fuels sales from production 

on Federal and Indian lands for fiscal year2

Although EIA has regularly published summary information on this topic in its Annual Energy Review, it 

should be noted that the data regarding fossil fuel sales (for purposes of assessing royalty payments 

from production on Federal and Indian lands) are collected by various programs within the Department 

of the Interior (DOI), and not by EIA. The sales volumes reported in this paper, as those in EIA’s earlier 

summaries, rely exclusively on information provided by the DOI. However, this report includes some 

categories of production that were not included in our earlier summaries, such as volumes on which no 

royalties were paid due to lease provisions and those that were transferred to add to the Nation’s 

Strategic Petroleum Reserve under Royalty-in-Kind programs. It also reports all sales in the fiscal year in 

which they were made, unlike previous summaries which reported some sales in the year that royalties 

were collected. The sales reported in this paper provide a better proxy for marketed production 

volumes than do those reported in previous summaries.

(FY) 2003 through FY 2011.

EIA has worked closely with the DOI Office of Natural Resource Revenues (ONRR), which has posted on 

its website and shared information with EIA on sales of fossil fuels produced on Federal and Indian lands 

based on information reported to it through February 6, 2012. Helpful discussions between EIA staff 

and DOI staff between February 18, 2012, when a data file was first provided to EIA, and the issuance of 

this paper are gratefully acknowledged.

Data on fossil fuel sales continually flow into the DOI program offices, and those programs also conduct 

audit activities that may result, over time, in changes in the previously reported data to both sales and 

royalty payments. Past experience suggests that data for sales from production on Federal and Indian 

lands in FY 2011 could continue to change for some time, and that revisions to such data are more likely 

than not to increase reported sales. However, there is no reason to expect that such continuing updates 

would change the “big picture” results summarized below. 

 1 Includes offshore and onshore areas the Federal Government owns or administers, including American Indian lands. 

2 The U.S. Government’s fiscal year runs from October 1 through September 30. The fiscal year is designated by the calendar 

year in which it ends. 
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U.S. Energy Information Administration | Sales of Fossil Fuels Produced on Federal and Indian Lands, FY 2003 through FY 2011 2

Findings

Production and sales of fossil fuels from Federal and Indian lands can be influenced by a variety of 

factors, including, but not limited to, Federal leasing and regulatory policies. Total sales of all fossil fuels 

produced on Federal and Indian lands, which are measured in terms of British thermal units (Btu) to 

allow for aggregation across all fossil fuels, rose by about 1 percent between fiscal year FY 2009 and 

FY 2010 and dropped by about 6 percent between FY 2010 and FY 2011 (Table 1).

Table 1. Fossil fuel sales of production from Federal and Indian Lands, FY 2003 – FY 2011 

(quadrillion Btu)

Fiscal 

Year

Crude Oil and 

Lease Condensate

Natural Gas 

Plant Liquids Natural Gas Coal Total Fossil Fuels

2003 4.0 0.35 7.3 9.6 21.2

2004 3.9 0.39 6.9 9.9 21.1

2005 3.8 0.36 6.6 9.8 20.5

2006 3.4 0.32 6.0 9.3 19.0

2007 3.6 0.40 6.0 9.6 19.6

2008 3.3 0.39 6.0 10.3 20.0

2009 3.7 0.34 5.8 9.8 19.6

2010 4.3 0.42 5.5 9.6 19.9

2011 3.7 0.41 5.0 9.5 18.6

Sources: U.S. Department of the Interior, Office of Natural Resources Revenue, "Statistical Information"

(http://www.onrr.gov/ONRRWebStats/default.aspx) fossil fuel sales volumes in physical units; and U.S. Energy Information 

Administration, Annual Energy Review 2010, Appendix A – Btu conversion factors. Btu data are calculated by multiplying data in 

physical units by calendar year Btu conversion factors. Total Fossil Fuels is the sum of the heat content of crude oil and lease 

condensate, natural gas plant liquids, natural gas and coal.

Crude oil

Total crude oil sales of production from Federal and Indian lands increased from 642 million barrels in 

FY 2009 to 739 million barrels in FY 2010, but decreased to 646 million barrels in FY 2011 (Table 2).

Crude oil production from Federal lands is dominated by offshore production from the Federal Outer 

Continental Shelf (OCS). Trends in Federal OCS production, which are shown separately in Table 2, 

reflect the timing of several particularly important deepwater development projects over the past 

decade, as well as production disruptions and damage as a result of weather events to both producing 

infrastructure and projects under development. The latest offshore production data also reflect 

government actions taken following the 2010 Macondo disaster in the Gulf of Mexico.

The crude oil data in this report reflect significant changes from the information previously presented by 

EIA for some years prior to FY 2011. Unlike earlier EIA summaries, sales of production on Federal lands 

exempt from royalty payments are included for the fiscal year in which the sales occurred. This report

also presents sales volumes that reflect the sales date as opposed to the date of the royalty payment. 

The sales reported by ONRR are a reasonable proxy for marketed production because sales include 

production that leaves the lease under royalty relief and also production under a Royalty-In-Kind 

programs, such as that used to fill the Strategic Petroleum Reserve (SPR).
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U.S. Energy Information Administration | Sales of Fossil Fuels Produced on Federal and Indian Lands, FY 2003 through FY 2011 3

Table 2. Sales of crude oil and lease condensate production from Federal and Indian Lands, FY 2003 –

FY 2011 (million barrels)

Sources: U.S. Energy Information Administration and the U.S. Department of the Interior, Office of Natural Resources 

Revenue. "Statistical Information" (http://www.onrr.gov/ONRRWebStats/default.aspx).

Note: Totals may not equal sum of components due to independent rounding. The above categories are mutually exclusive. 

Onshore Federal excludes volumes on Indian Lands. Offshore Federal only includes areas in Federal waters.

Natural gas

Total natural gas sales of production from Federal and Indian lands have decreased each year since 

FY 2003. In FY 2011, reported sales were 4,859 Billion cubic feet (Bcf) —a 10-percent decrease from 

FY 2010, and a 31-percent decrease compared with the FY 2003 level (Table 3). Based on EIA’s latest 

figures for natural gas production in FY 2011, the Federal sales share of U.S. marketed production3

Offshore natural gas sales have been on a consistent downward trend over the last 9 years, falling more 

than 60 percent. Gas sales from onshore Federal lands were generally growing over this period, 

exceeding offshore sales by FY 2007. The last 2 years have seen declines, but FY 2011 sales from onshore 

Federal production are still higher than in FY 2007. Natural gas sales from production on Indian lands 

have decreased each year between 2005 and 2010, but increased slightly in 2011.

in 

FY 2011 was 21 percent. 

Policies that pertain directly to leasing and production activities on Federal and Indian lands are only one 

among the many factors that are reflected in the sales data. The rapid increase in natural gas production 

from shale resources over the last 5 years has significantly affected natural gas prices and the relative 

attractiveness of Federal and Indian lands as areas for development of conventional natural gas 

resources. Further, private landowners often require drilling within a relatively shorter time period to 

hold a lease than that required under Federal leases.

 3 Marketed production includes gross withdrawals of natural gas from production reservoirs, less gas used for reservoir 

repressuring, nonhydrocarbon gases removed in treating and processing operations at the lease, and quantities that are vented

and flared. Sales data for production from Federal and Indian lands, reported by the U.S. Department of the Interior, Office of 

Natural Resources Revenue, is comparable to marketed production. Therefore, sales from Federal and Indian lands, as a 

percent of U.S. production, is calculated, throughout this report, by dividing fiscal year sales by fiscal year marketed production 

volumes. 

Fiscal Year Offshore Federal Onshore Federal Indian Lands Total

2003 579 101 10 689

2004 572 97 10 680

2005 542 96 10 649

2006 471 101 10 582

2007 514 105 10 629

2008 462 104 10 575

2009 527 105 10 642

2010 618 108 13 739

2011 514 112 19 646
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U.S. Energy Information Administration | Sales of Fossil Fuels Produced on Federal and Indian Lands, FY 2003 through FY 2011 4

Table 3. Sales of natural gas production from Federal and Indian Lands, FY 2003 – FY 2011 

(billion cubic feet)

Fiscal Year Offshore Federal Onshore Federal Indian Lands Total

2003 4,523 2,274 283 7,080 

2004 4,025 2,346 312 6,683 

2005 3,522 2,529 327 6,377 

2006 2,754 2,791 308 5,853 

2007 2,709 2,835 284 5,828 

2008 2,496 3,051 272 5,819 

2009 2,206 3,170 265 5,640 

2010 2,098 3,068 249 5,415 

2011 1,654 2,955 250 4,859 

Sources: U.S. Energy Information Administration and the U.S. Department of the Interior, Office of Natural Resources 

Revenue. "Statistical Information" (http://www.onrr.gov/ONRRWebStats/default.aspx).

Note: Totals may not equal sum of components due to independent rounding. The above categories are mutually exclusive.

Onshore Federal excludes volumes on Indian Lands. Offshore Federal only includes areas in Federal waters.

Natural gas plant liquids

Sales of natural gas plant liquids (NGPL) from production on Federal and Indian lands peaked in FY 2010 

at 115 million barrels before decreasing slightly to 111 million barrels in FY 2011. Federal natural gas 

plant liquids sales have been relatively constant at 14-17 percent of U.S. NGPL production since 2003, 

comparing ONRR sales data with EIA’s latest figures for total U.S. natural gas plant liquids production.

Table 4. Sales of natural gas plant liquids production from Federal and Indian Lands, FY 2003 – FY 2011

(million barrels)

Fiscal Year Offshore Federal Onshore Federal Indian Lands Total

2003 51 42 2 94

2004 62 41 2 105

2005 56 40 2 98

2006 46 40 2 87

2007 60 44 3 107

2008 53 50 3 106

2009 44 45 3 93

2010 58 54 3 115

2011 49 59 3 111

Sources: U.S. Energy Information Administration and the U.S. Department of the Interior, Office of Natural Resources 

Revenue. "Statistical Information" (http://www.onrr.gov/ONRRWebStats/default.aspx).

Note: Totals may not equal sum of components due to independent rounding. The above categories are mutually exclusive.

Onshore Federal excludes volumes on Indian Lands. Offshore Federal only includes areas in Federal waters.
March 2012

U.S. Energy Information Administration | Sales of Fossil Fuels Produced on Federal and Indian Lands, FY 2003 through FY 2011 5

Coal

Coal sales from production on Federal and Indian lands have remained fairly steady at around 40-45

percent of total U.S. coal production each year since FY 2003. Sales of coal produced on Federal and 

Indian lands peaked at 509 million short tons in FY 2008 and have been decreasing slightly each year 

since then. In FY 2011, coal sales from production on Federal and Indian lands reached 470 million short 

tons, a 2-percent decrease from FY 2010 and an 8-percent decrease since the peak in FY 2008.

The electric power sector accounts for over 90 percent of U.S. coal use. For this reason, aggregate coal 

production trends are strongly influenced by coal demand in this sector, which is sensitive to both 

changes in the overall demand for electricity generation and changes in the mix of generation fuels.

Overall electricity demand is affected by economic conditions, weather conditions affecting heating and 

cooling requirements, and changes in standards for appliances and other electricity-using equipment.

The fuel mix is influenced by some of the same factors, as well by the relative prices of different 

generation fuels and policies to promote the use of certain generation sources. 

Table 5. Sales of coal production from Federal and Indian Lands, FY 2003 – FY 2011 (million short tons)

Fiscal Year Offshore Federal Onshore Federal Indian Lands Total

2003 NA 436 30 466

2004 NA 451 33 484

2005 NA 447 34 482

2006 NA 429 29 458

2007 NA 443 27 471

2008 NA 483 26 509

2009 NA 462 26 488

2010 NA 456 22 478

2011 NA 448 22 470

Sources: U.S. Energy Information Administration and the U.S. Department of the Interior, Office of Natural Resources Revenue.

"Statistical Information" (http://www.onrr.gov/ONRRWebStats/default.aspx).

Note: NA=not applicable. Total may not equal sum of components due to independent rounding. The above categories are 

mutually exclusive. Onshore Federal excludes volumes on Indian lands. Offshore Federal only includes areas in Federal waters.

Three appendices provide additional or reformatted information that may be of interest to readers. 

Appendix A presents the information reviewed in the paper (Table 1 through 5) in the format used in

EIA’s Annual Energy Review, Table 1.14, where EIA has historically presented information on sales of 

fossil fuels produced on Federal lands. Appendix B provides an overview of the agencies with primary 

responsibilities and involvement in the production of fossil fuels on Federally-administered lands. 

Appendix C provides background information about the DOI data sources used in this report. 
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U.S. Energy Information Administration | Sales of Fossil Fuels Produced on Federal and Indian Lands, FY 2003 through FY 2011 6

Appendix A

Table 1- 14. Fossil fuel sales of production from Federal and Indian Lands, FY 2003 – FY 2011

Fiscal 

Year

Crude Oil and Lease Condensate Natural Gas Plant Liquids 2 Natural Gas Coal Fossil Fuels

Million

Barrels 1

Trillion

Btu

Percent of

U.S. Total

Million

Barrels1

Trillion

Btu

Percent of

U.S. Total

Billion

Cubic Feet1

Trillion

Btu

Percent of

U.S. Total

Million

Short Tons1

Trillion

Btu

Percent of

U.S. Total

Trillion

Btu

Percent of

U.S. Total

2003 689 3,999 33.3% 94 352 14.9% 7,080 7,277 35.5% 466 9,577 43.3% 21,204 37.8%

2004 680 3,942 33.8% 105 392 16.0% 6,683 6,860 34.0% 484 9,893 43.9% 21,089 37.7%

2005 649 3,761 33.4% 98 365 15.0% 6,377 6,553 33.3% 482 9,809 42.6% 20,487 36.8%

2006 582 3,374 31.8% 87 324 14.2% 5,853 6,017 30.8% 458 9,308 39.7% 19,022 34.5%

2007 629 3,648 33.9% 107 395 16.6% 5,828 5,996 29.2% 471 9,575 41.0% 19,613 34.9%

2008 575 3,336 31.5% 106 392 15.9% 5,819 5,979 27.7% 509 10,297 43.8% 20,005 34.9%

2009 642 3,723 33.7% 93 342 13.8% 5,640 5,784 26.1% 488 9,783 43.8% 19,633 34.4%

2010 739 4,286 37.2% 115 422 15.4% 5,415 5,546 24.6% 478 9,627 44.8% 19,882 34.5%

2011 646 3,745 31.8% 111 410 14.3% 4,859 4,977 20.6% 470 9,464 43.2% 18,596 32.3%

1

Includes sales volumes for production from Federal and Indian lands including all classes of land owned by the Federal Government, including acquired military, Outer 

Continental Shelf, and public lands. 2

Includes only those quantities for which the royalties were paid on the basis of the value of the natural gas plant liquids produced. Additional quantities of natural gas plant 

liquids were produced; however, the royalties paid were based on the value of natural gas processed. These latter quantities are included with natural gas.

Note: Total fossil fuels equals the sum of crude oil and lease condensate, natural gas plant liquids, natural gas, and coal. In addition, the sales volumes are reported for the fiscal 

year in which the sales occurred as opposed to the date of the royalty payment. Volumes include fossil fuels for which royalties were paid, as well as those amounts exempt 

from royalty payments, such as additions to the Strategic Petroleum Reserve.

Sources: Physical Data: U.S. Department of the Interior, Office of Natural Resources Revenue, “Statistical Information.” (http:www.onrr.gov/ONRRWebStats/default.aspx)

Btu Data: U.S. Energy Information Administration. Btu are calculated using average, calendar-year heat rates for production of each fossil fuel, as reported in the Annual Energy 

Review 2010. The total Btu-content per fossil fuel is calculated by multiplying the physical data by the approximate heat content. The fossil fuel total is the sum of the total heat 

content for crude oil and lease condensate, natural gas plant liquids, natural gas, and coal.

Percent of Total: Percentages are calculated by dividing sales of production from Federal and Indian lands by total U.S. production, then multiplying by 100. Fiscal year values 

for total U.S. production are the sum of October-September values from the Monthly Energy Review (February 2012) and reflect EIA’s current data updates.
March 2012

U.S. Energy Information Administration | Sales of Fossil Fuels Produced on Federal and Indian Lands, FY 2003 through FY 2011 7

Appendix B

Federal agencies involved in fossil fuel production from Federal and Indian lands

U.S. Department of the Interior

• The Office of Natural Resources Revenue (ONRR) of the U.S. Department of the Interior was 

created in 2010 to manage revenues associated with Federal and American Indian mineral 

leases. It publishes royalty revenue data for American Indian lands, the Federal Offshore, and 

the Federal Onshore annually. It collects four types of mineral lease revenues: bonuses, rents, 

minimum royalties, and royalties.

• The Bureau of Ocean Energy Management (BOEM) of the U.S. Department of the Interior was 

created in 2011 to manage development of offshore resources. Functions include leasing, plan 

administration, environmental studies, National Environmental Policy Act (NEPA) analysis, 

resource evaluation, economic analysis, and the renewable energy program. 

• The Bureau of Safety and Environmental Enforcement (BSSE) of the U.S. Department of the 

Interior was created in 2011 to promote safety, protect the environment, and conserve 

resources offshore through vigorous regulatory oversight and enforcement.

• The Bureau of Indian Affairs (BIA) in the U.S. Department of the Interior provides services 

directly or through contracts, grants, or compacts to 566 Federally-recognized tribes. This 

includes natural resources management on trust lands representing 55 million surface acres and 

57 million acres of subsurface mineral estates.

• The Bureau of Land Management (BLM) in the U.S. Department of the Interior manages more 

Federal land than any other agency--about 245 million surface acres as well as 700 million subsurface acres of mineral estate. It maintains the land status data for all Federally-owned lands 

within the United States onshore, as well as oil and gas lease stipulation information.

U.S. Department of Agriculture

The U.S. Forest Service is the primary land management agency for the U.S. Department of 

Agriculture. It maintains information regarding oil and gas lease availability and leasing stipulations 

within the National Forest System.
March 2012

U.S. Energy Information Administration | Sales of Fossil Fuels Produced on Federal and Indian Lands, FY 2003 through FY 2011 8

Appendix C

Data sources from the U.S. Department of the Interior

Data on sales of fossil fuel production from Federal and Indian lands are available from the U.S. 

Department of the Interior’s Office of Natural Resources Revenue (ONRR) which is responsible for 

collecting, accounting for, and disbursing royalty payments on sales of minerals produced from Federal 

and Indian lands. These areas include energy and mineral leasing on Federally-administered areas under 

the jurisdiction of the Bureau of Land Management (BLM), Bureau of Indian Affairs (BIA), Bureau of 

Ocean Energy Management (BOEM), Bureau of Safety and Environmental Enforcement (BSSE) and the 

U.S. Forest Service. 

ONRR collects data on mineral sales on two survey forms: the Form MMS-2014, “Report of Sales and 

Royalty Remittance,” and the Form MMS-4430, “Solid Mineral Production and Royalty Report.” The 

forms are used to report sales and royalties and other obligations due on Federal and Indian, oil, gas and 

geothermal leases (Form MMS-2014), and solid minerals (Form MMS-4430). Form MMS-2014 and Form 

MMS-4430 are the sources of sales data used in the this report. ONNR provides aggregate data on its 

website at "Statistical Information" http://www.onrr.gov/ONRRWebStats/default.aspx.

The information presented here must be cited with some care. Most importantly, the fossil fuel volumes 

represent wellhead or first-purchaser sales and not gross production. Sales volumes, which are a 

reasonable proxy for marketed production, exclude certain produced amounts used or extracted in field 

operations and storage volumes at the lease. EIA has no information regarding production of these 

volumes from Federal and Indian lands. ONRR reports data both on the basis of when royalty payments 

were received (“accounting-year” basis) and when the sale actually took place (“sales-year” basis). In 

order to associate timing with the actual movement of the fossil fuel, ONRR data in this report are 

reported on a sales-year basis. In addition, reported sales volumes are presented within Federal fiscal 

years rather than calendar years. For example, FY 2011 covers the period from October 1, 2010, through 

September 30, 2011. 

Finally, the most recent ONRR report includes sales recorded as of February 6, 2012. It is possible that 

data for FY 2011 (and possibly before) will be adjusted in the future.