New BLM application fee goes into effect

The U.S. Bureau of Land Management said Jan. 2 that it is implementing a new $4,000 processing fee for each new oil and gas drilling permit application, known as an application for permit to drill or APD.

The fee is required under the fiscal year 2008 omnibus appropriations bill which was signed into law by President Bush on Dec. 26. BLM said the money generated by the fees is not new revenue but is a reimbursement to the U.S. Treasury for the estimated cost of processing new APDs for the duration of fiscal year 2008.

BLM said it has developed interim guidance for field offices for the collection and handling of the new fees, which took effect Dec. 26; final guidance will be developed over the next several weeks.

—Petroleum News