Lease Sales and Fair Market Value

The Outer Continental Shelf Lands Act (OCS Lands Act) grants the Secretary the authority to issue leases on the OCS. Section 18(a)(4) of the OCS Lands Act states that "Leasing activities shall be conducted to assure receipt of fair market value for the lands leased and the rights conveyed by the Federal Government." Lessees pay bonuses, rentals, and royalties reflecting the value of the rights to explore and potentially develop and produce OCS oil and gas resources.