BLM increases drilling permit fee

The U.S. Department of the Interior’s Bureau of Land Management said Sept. 29 that it would be adjusting its drilling permit fee effective Oct. 1.

BLM said that at the direction of Congress, it will adjust fees to process oil and gas drilling permits on public and Indian lands for inflation, an increase of $180 to $9,790, up from $9,610. The adjustment was directed by Congress as part of the National Defense Authorization Act for fiscal year 2015, and required an annual adjustment for inflation over 10 years.

The non-refundable fee is collected when operators submit applications for permits to drill, and is required whether or not the permit is approved.

BLM said the fee is not required for a notice of staking, but said if an operator submits an APD without the fee of $9,790, the agency will not log, post, process or consider the APD received until the fee is paid. If the full fee is not submitted, BLM said it will contact the operator and give the operator 10 business days to submit the required amount; processing will begin only after the full fee is submitted.

If the full fee is not submitted after the 10-day notice, BLM said it would return the APD along with any partial fees to the operator.

- Petroleum News