S5039-119

What This Bill Does

The License to Drill Act amends section 35(d) of the Mineral Leasing Act, the Bureau of Land Management oil and gas permit processing fee provision. It extends date references from 2026 to 2037.

The bill also changes how collected fees are transferred. For each fiscal year 2027 through 2037, all fees collected under the subsection must be transferred to the BLM Permit Processing Improvement Fund. That fund supports permit processing capacity. The bill is narrow: it does not itself approve drilling permits or change lease terms, but it preserves and directs fee funding for BLM permit processing for another decade.

Who Benefits and How

BLM oil and gas permit offices benefit because processing fees continue through 2037 and are directed to the Permit Processing Improvement Fund. Oil and gas permit applicants benefit if dedicated fee funding improves application processing capacity. Federal lands energy developers benefit from a more stable funding stream for permit administration. States with federal oil and gas leasing benefit if BLM processing capacity supports lease development. Federal taxpayers benefit if permit applicants continue funding processing costs through fees.

Who Bears the Burden and How

Oil and gas operators paying permit processing fees continue to bear those fees through 2037. BLM budget staff must transfer all collected fees to the Permit Processing Improvement Fund for fiscal years 2027 through 2037. BLM permitting staff must administer the fee-supported processing system. Environmental review participants may see more permit-processing activity if dedicated funding increases throughput. Operators that expected fee authority to sunset in 2026 lose that timing benefit.

Key Provisions

• Extends BLM oil and gas permit processing fee authority from 2026 to 2037.
• Directs all fees collected for fiscal years 2027 through 2037 to the BLM Permit Processing Improvement Fund.
• Supports continued fee-funded BLM oil and gas permit processing.
• Preserves applicant-funded processing costs for another decade.