(World Oil) – The U.S. House of Representatives has 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,” said Dan Naatz, Executive Vice President and Chief Policy Officer of IPAA. “Extending the program preserves an industry-funded permitting system designed to improve agency resources and reduce permitting delays.”
According to the Western Energy Alliance, approximately 10% of U.S. oil and natural gas production comes from BLM-managed public lands.
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.
