License to Drill Act
- Sponsor
- Sen. Lee, Mike [R-UT]
- Committees
- Energy and Natural Resources Committee (primary)
- Last action
- Sep 17, 2026
Bottom line
The bill extends the collection of fees for federal oil and gas drilling permits for an additional 11 years, dedicating these funds to improve the Bureau of Land Management's permit processing efficiency.
What it actually does
This bill amends the Mineral Leasing Act to extend the period during which the Secretary of the Interior is required to collect a fee for each new application for a permit to drill (APD) from fiscal year 2026 to fiscal year 2037. It also mandates that all fees collected from fiscal years 2027 through 2037 be transferred to the BLM Permit Processing Improvement Fund, ensuring continued dedicated funding for improving the efficiency of permit processing.
Proponents argue
Supporters argue that extending the fee collection ensures the Bureau of Land Management (BLM) has the necessary resources to efficiently process drilling permits, reducing backlogs and improving service for the oil and gas industry. This dedicated funding mechanism helps streamline operations, benefiting both the industry through faster approvals and the public through more effective resource management.
Opponents contend
Opponents may contend that extending these fees places an unnecessary financial burden on oil and gas companies, potentially discouraging domestic energy production and investment. They might argue that the costs should be absorbed by general appropriations or that the fees represent an additional tax on an essential industry.
This bill is exceptionally short and clear, making it very accessible for any reader to understand its provisions and implications quickly.
Section 2
Extension of BLM Oil and Gas Permit Processing Fee
This provision extends the requirement for the Secretary of the Interior to collect a fee for each new application for a permit to drill (APD) from its current expiration in fiscal year 2026 to fiscal year 2037. Additionally, it specifies that all fees collected under this subsection for fiscal years 2027 through 2037 must be transferred to the BLM Permit Processing Improvement Fund, ensuring that these funds continue to be used for their intended purpose of enhancing permit processing efficiency.
Supporters argue
Supporters argue that extending this fee is crucial for maintaining and improving the efficiency of the BLM's permit processing system. By providing a dedicated funding stream, the agency can reduce permit backlogs, leading to faster approvals for energy projects and more predictable operations for the industry. This self-sustaining mechanism ensures that those who directly benefit from the permits contribute to the system's upkeep.
Critics contend
Critics may argue that extending these fees imposes an additional cost on an already regulated industry, potentially hindering domestic energy production and increasing operational expenses for companies. They might suggest that such administrative costs should be covered by general federal appropriations rather than specific industry fees, viewing it as an unnecessary barrier to energy development.
Tradeoffs
This provision navigates the tension between ensuring federal agencies have adequate resources to perform their functions efficiently and avoiding undue financial burdens on industries operating on federal lands. It aims to strike a balance where the beneficiaries of the service contribute to its improvement, potentially at the cost of increased operating expenses for those entities.