(WO) — Congress has passed legislation to extend a federal oil and natural gas permitting program for another decade, preserving an industry-funded system that supports drilling permit reviews and other energy development activities on federal lands.
The U.S. Senate unanimously passed the License to Drill Act on Sept. 30, following House approval in June, according to the Independent Petroleum Association of America (IPAA) and Western Energy Alliance. The legislation now awaits President Donald Trump’s signature.
The bill reauthorizes the Permitting Processing Improvement Fund (PPIF), which directs fees collected from oil and gas drilling permit applications to priority Bureau of Land Management (BLM) field offices. The funding supports permitting, leasing, inspections and other activities associated with energy development on federal lands.
Oil and gas producers currently pay more than $12,500 for each Application for Permit to Drill submitted to BLM. Revenue from those fees supports agency personnel and activities involved in reviewing applications, conducting environmental analyses and managing federal oil and gas operations.
The PPIF was established under the Energy Policy Act of 2005 and subsequently renewed for another decade. The program prioritizes funding for eight high-volume BLM offices supporting federal and tribal oil and gas development, including offices in Colorado, Montana, North Dakota, New Mexico, Utah and Wyoming.
IPAA and Western Energy Alliance welcomed the legislation, citing its role in maintaining permitting capacity and supporting development on federal lands.
“Extending the program preserves an industry-funded permitting system with a fee that is indexed to inflation, designed to improve agency resources and reduce permitting delays,” said Dan Naatz, IPAA’s executive vice president and chief policy officer.
Melissa Simpson, president of Western Energy Alliance, said the legislation would provide continued support for BLM field offices and federal employees responsible for overseeing oil and gas development.
The reauthorization also supports BLM activities involving rights of way, sundry notices, surface-use plans, interagency coordination, staff hiring and training. According to the industry groups, BLM offices oversee approximately 10% of U.S. oil and natural gas production.
About The Author
