The Bureau of Land Management has finalized a plan making approximately 850,000 acres of federal land and mineral estate in Central California available for potential oil and gas leasing. It has also started to review 50 parcels for a future lease sale.
The July 2 parcel review covers approximately 36,000 acres in Kern, Kings, San Luis Obispo, and Fresno counties. It represents an early implementation step following BLM’s completion of a supplemental environmental review of oil and gas leasing across the broader region.
The decisions do not authorize drilling. BLM must select parcels for a lease sale, issue leases, and separately review applications for permits to drill before development can begin.
Decision completes review begun in 2025
In June 2025, BLM announced that it would prepare a supplemental environmental impact statement addressing oil and gas leasing within the Bakersfield planning area. That review covered approximately 400,000 acres of BLM-managed surface land and another 450,000 acres of federal mineral estate.
BLM released its draft supplemental environmental impact statement in January 2026. The agency preliminarily concluded that additional leasing and development would not produce significant new effects on public health, air quality, biological resources, soil, or water.
BLM completed the final environmental review in May and issued a record of decision in June 2026. The agency determined that it did not need to amend its 2014 Bakersfield Resource Management Plan because the supplemental analysis did not identify a notable increase in environmental effects.
The decision allows BLM to consider leasing within approximately 850,000 acres across Central California, including federal mineral interests in Santa Barbara, San Luis Obispo, Kern, Kings, Fresno, and Ventura counties. The affected areas reportedly include federal mineral interests near Lake Cachuma, Lompoc, and Carpinteria.
BLM begins reviewing specific parcels
On July 2, BLM opened a 30-day public scoping period for 50 parcels that could be included in a future lease sale.
BLM said leasing is only the first step toward development. A lease gives its holder the right to seek approval to develop federal oil and gas resources, but an operator must submit a separate drilling application. BLM would then review the proposed operation, conduct additional environmental analysis and coordinate with state agencies and other stakeholders.
More than 95 percent of federal drilling in California occurs in established Kern County fields, according to the BLM’s July 2 announcement. The agency estimates that federal drilling supports approximately 3,500 jobs and generates more than $200 million in annual economic activity. Federal oil and gas operations in California generate between $65 million and $90 million in annual royalties, about half of which is returned to the state.
State restrictions remain disputed
The federal actions are part of a broader effort to expand oil and gas development on federal lands in California.
In June 2025, the federal government separately terminated a 2012 memorandum of understanding between BLM and the California Geologic Energy Management Division. The agreement governed coordination between the agencies where state and federal regulatory authority overlapped.
That action is separate from the Bakersfield planning review but could affect coordination over future federal drilling permits involving federal mineral interests.
California and environmental organizations have previously challenged BLM’s environmental reviews of Central California leasing. Opponents contend that the latest analysis does not adequately address effects on public health, water, wildlife, and the climate.
Another unresolved question is whether California restrictions, including the state’s 3,200-foot health-protection zones around homes, schools, hospitals, and other sensitive locations, apply to development involving federal lands or mineral interests.
The June record of decision and July parcel review move the federal leasing process forward, but additional environmental reviews, permitting proceedings, and potential litigation remain before drilling could begin.
Federal leasing rules could also change
The Central California actions coincide with a broader BLM proposal to revise federal oil and gas leasing regulations. The proposed rule, published June 24, 2026, would eliminate leasing-preference criteria, modify public-participation periods, restore noncompetitive leasing, and return minimum bonding requirements to levels in effect before BLM’s 2024 rule.
The rulemaking is separate from the Central California land-use decision and the review of the 50 potential lease parcels, but it could affect how future California lease sales are conducted.