- The House passed Utah Rep. Mike Kennedy’s License to Drill Act, which would extend federal oil and gas permitting fees through 2037.
- The fees fund BLM staffing and permitting operations, helping the agency process drilling applications and environmental reviews more efficiently.
- Supporters say the bill would reduce permitting delays, support domestic energy production and provide more predictable investment and jobs in rural communities.
A bill to help the Bureau of Land Management streamline its oil and gas permitting process is on its way to becoming law, after being put forward by Utah Rep. Mike Kennedy.
Kennedy sponsored the License to Drill Act in March. On Tuesday it passed with overwhelming favor in the House of Representatives.
Co-sponsored by Utah Rep. Celeste Maloy, Wyoming Rep. Harriet Hageman and Oklahoma Rep. Stephanie Bice, the bill extends a rule that requires oil and gas companies to pay a fee whenever they apply for a new permit on federal land.
Instead of letting the fee requirement expire in 2026, the License to Drill Act extends the deadline to 2037. With increased funds to grant permits, the BLM can hire and retain more staff to review applications and potentially upgrade its processes.
“We know the effects of over reliance on foreign nations for our energy; it is a risk that we must mitigate. We also know that permitting delays cost jobs and drive up energy prices for everyday Americans,” Kennedy said in a statement.
He continued, “America needs an all-of-the-above energy strategy, and that starts with a government that can keep up with demand.”
Rikki Hrenko-Browning, the president of the Utah Petroleum Association, added, “BLM’s Project Offices in Utah are essential to keeping up with a high volume of drilling permits, rights-of-way and complex environmental reviews.”
She said the BLM’s field office in Vernal, in eastern Utah, processes the second highest number of Applications for Permit to Drill in the country.
The BLM is required to conduct environmental reviews and coordinate with relevant agencies and stakeholders to ensure a proposed project fits with the area, before an application is approved.
“When these offices have the resources to coordinate with other agencies and stay staffed up, projects move forward more predictably and our rural communities benefit from stable investment and jobs,” she said.
Kennedy’s bill will next move to an appropriate Senate committee, and if approved by committee members, it will appear before the body of the Senate for a vote.