U.S. House Passes Bill to Extend Federal Oil and Gas Permitting Fund
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The U.S. House of Representatives passed legislation that would extend a key federal program supporting oil and natural gas permitting activities on public lands, drawing support from industry groups that say the measure helps improve permitting efficiency while remaining fully industry funded.
The License to Drill Act (H.R. 7831), introduced by Rep. Mike Kennedy, R-Utah, would reauthorize the Permit Processing Improvement Fund (PPIF), which is scheduled to expire in September unless Congress approves an extension.
The PPIF supports Bureau of Land Management (BLM) offices responsible for processing oil and gas permits, rights-of-way, environmental reviews, surface use plans, and other approvals tied to development on federal lands. The program is funded through fees paid by operators seeking drilling permits.
Industry groups including the Independent Petroleum Association of America (IPAA) and Western Energy Alliance welcomed the House vote, noting that the program has received bipartisan support through previous reauthorizations.
“H.R. 7831 reauthorizes a longstanding policy that is an important framework for federal land producers. IPAA has championed this concept since its origins in the Energy Policy Act of 2005 and proudly testified in support of the bill during its committee hearing earlier this year,” said Dan Naatz, IPAA executive vice president and chief policy officer.
“The PPIF program has garnered bipartisan support in both the House and Senate in previous reauthorizations because the concept is sound — industry pays its own way. 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. We applaud Rep. Kennedy’s leadership and look to the Senate to follow suit,” added Naatz.
According to the Western Energy Alliance, approximately 10 percent of U.S. oil and natural gas production comes from BLM-managed public lands.
“The Permit Processing Improvement Fund is 100 percent paid for by fees on oil and natural gas drilling permits. It’s a balanced approach that Congress created to develop energy resources on public lands while supporting the federal employees who manage the process. Their roles are important because 10 percent of the oil and natural gas produced in the United States comes from BLM public lands,” said Melissa Simpson, president of Western Energy Alliance.
“Republicans and Democrats in Congress may not agree on much at the moment, but there’s strong agreement on extending support for the federal employees who perform the daily work that goes into managing oil and natural gas production. We’re thankful for the leadership of Rep. Kennedy in moving a bill critical to producing the oil and natural gas our country needs and gaining strong bipartisan support,” added Simpson.
The program was originally established under the Energy Policy Act of 2005 and was later expanded following its initial authorization period. Funds are used to support staffing, training, and interagency coordination at high-volume BLM offices in key producing states, including Colorado, Montana, New Mexico, North Dakota, Utah, and Wyoming.
The legislation now moves to the Senate for consideration ahead of the program’s September expiration deadline.
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