Federal government advances second Cook Inlet lease sale, offering 1.05 million acres

By SUZANNE DOWNING

Oct. 12, 2026 – The Trump administration is moving forward with another offshore oil and gas leasing opportunity in Cook Inlet, proposing to offer approximately 1.05 million acres in March 2027 under a leasing schedule mandated by Congress.

The Marine Minerals Administration announced Friday that it has prepared a Proposed Notice of Sale for Big Beautiful Cook Inlet 2, or BBC2. The proposed offering includes 224 blocks in federal waters, stretching roughly from Kalgin Island south to Augustine Island.

The proposed bid opening is scheduled for March 3, 2027, at 10 a.m. Alaska time. Companies would need to submit their bids by March 2.

The sale would be the second of at least six Cook Inlet offshore lease sales required by the 2025 Working Families Tax Cut Act, also known as the One Big Beautiful Bill Act. The law requires sales in 2026, 2027, 2028, 2030, 2031, and 2032.

“Alaska remains central to America’s energy future, and Cook Inlet is an important part of that opportunity,” MMA Acting Director Mike Olsen said in the announcement.

The proposed leases would have a 10-year primary term and a 12.5% royalty rate. Minimum bonus bids would be $25 per hectare, or fraction thereof. A hectare is approximately 2.47 acres.

Annual rental payments would begin at $13 per hectare, increasing to $20 per hectare at the start of the eighth year or upon a discovery, whichever comes first. The proposed minimum royalty is $20 per hectare annually, with no royalty relief.

Congress directed that the sales follow the lease form, terms, economic conditions, and stipulations used for Cook Inlet Lease Sale 244 in 2017. Each sale must offer at least 1 million acres, or all available unleased acreage if less is available.

The proposed package includes protections addressing fisheries, biological resources, Cook Inlet beluga whales, and northern sea otters. Additional instructions cover seismic surveys, discharges, spill response, and navigation.

The offering follows a first sale that attracted no bidders. Big Beautiful Cook Inlet 1 concluded March 4, after offering 216 blocks covering approximately 1.05 million acres in the same general area.

This illustrates the difference between making federal acreage available and securing industry investment. Congress has established a recurring opportunity for companies to acquire leases, but companies must still decide whether exploration and development make economic sense.

The Marine Minerals Administration combines the offshore leasing and oversight functions of the former Bureau of Ocean Energy Management and Bureau of Safety and Environmental Enforcement. The Interior Department describes the consolidation as an effort to improve coordination across leasing, permitting, and operational oversight.

Maps and sale documents are available on the federal government’s BBC2 webpage.