The federal onshore oil and gas leasing system generates significant revenue for both federal and state taxpayers. Applying a fair, market-based royalty rate is essential to properly valuing America’s vast oil and gas resources and ensuring taxpayers receive a fair return from their development. The current onshore royalty rate of 16.67% is expected to generate billions in additional revenue. Rolling it back to the outdated 12.5% rate would shortchange taxpayers for decades to come.