The U.S. House of Representatives has passed a bill titled "Drilling Licensing Act" which extends the federal oil and gas licensing program for another decade. This program continues to support the funding system for the oil and gas industry that assists in reviewing drilling permits and other energy development activities on federal lands.
Bill Details
The United States Senate unanimously approved this bill on September 30, following its approval by the House of Representatives in June. The bill is now awaiting the signature of Donald Trump, the President of the United States.
Funding and Activities
This bill re-establishes the Permit Processing Improvement Fund (PPIF), which is dedicated to collecting fees related to oil and gas drilling permit applications. These fees are allocated to priority offices of the Bureau of Land Management (BLM). Currently, oil and gas producers pay over $12,500 for each drilling permit application to the BLM. The revenue from these fees helps fund personnel and activities related to reviewing applications, conducting environmental analyses, and managing federal oil and gas operations.
Role and Impact on Energy Development
The PPIF was initially established under the Energy Policy Act of 2005 and was subsequently extended for another decade. This program prioritizes funding for eight BLM offices with high activity levels that support federal and tribal oil and gas development. These program offices are located in the states of Colorado, Montana, North Dakota, New Mexico, Utah, and Wyoming.
The Independent Petroleum Association of America (IPAA) and the Western Energy Alliance welcomed the passage of this bill, highlighting its role in maintaining permitting capacity and supporting development on federal lands. Dan Naatz, Executive Vice President and Policy Director of the IPAA, stated that the extension of this program preserves the industry-funded permitting system, which aligns costs with inflation rates and enhances the resources of this entity.
