October 1, 2026

DENVER – Western Energy Alliance and the Independent Petroleum Association of America (IPAA) today praised the U.S. Senate for unanimously passing a bill to extend a successful program that funds oil and natural gas permitting activities on federal lands for the next decade. The bill will soon head to the White House for President Trump’s signature.

The License to Drill Act (H.R. 7831/S. 5039) reauthorizes the Permitting Process Improvement Fund (PPIF), which directs the fees paid for drilling permits by oil and natural gas producers to priority Bureau of Land Management (BLM) field offices to support leasing, permitting, inspections, and other energy-related duties. The fund was set to expire today, the first day of the federal government’s fiscal year, had the Senate not passed the bill yesterday evening.

“Bipartisan support for oil and natural gas on public lands is still possible in Congress, and now a bill is headed to President Trump’s desk for his signature. Throughout this year, both parties have worked together to pass a bill that supports energy development and the federal employees working in BLM field offices that make it happen,” said Melissa Simpson, president of the Alliance. “For the next decade, this legislation will help secure our nation’s role as the global leader in producing oil and natural gas. It couldn’t have come at a better time. We’re grateful for the leadership of Rep. Kennedy and Chairman Lee for shepherding this bill through Congress.”

“IPAA has championed the PPIF concept since its origins in the Energy Policy Act of 2005 and proudly testified in support of the bill during its committee hearing earlier this year," said Dan Naatz, IPAA EVP and Chief Policy Officer. "Extending the program preserves an industry-funded permitting system with a fee that is indexed to inflation, designed to improve agency resources and reduce permitting delays. We applaud Chairman Lee and Rep. Kennedy and are grateful that the License to Drill Act will be heading to President Trump’s desk, continuing this important program for energy production on federal lands.”

The License to Drill Act was introduced in the U.S. House by Rep. Mike Kennedy (UT-03) and passed the U.S. House of Representatives with strong bipartisan support in June. In the Senate, Chairman Mike Lee (R-UT) introduced the companion bill and passed it through the Energy and Natural Resources Committee in July.

Background

Oil and natural gas producers pay more than $12,500 for each Application for Permit to Drill submitted to BLM. Revenue generated through those fees supports personnel and activities associated with reviewing permits and managing energy development on public lands. The program has long received bipartisan support because it is funded entirely by industry-paid fees rather than taxpayer dollars.

Reauthorization provides continued support for BLM offices responsible for overseeing approximately 10% of U.S. oil and natural gas production, making timely permitting and effective field office operations important to maintaining domestic energy production and energy security.

The PPIF was created in the Energy Policy Act of 2005 as a pilot program. Following 10 years of success, Congress renewed it for an additional 10 years and expanded the program. Congress prioritized funding for eight high-volume BLM offices to support federal and tribal oil and natural gas activities. The offices are in Colorado, Montana/North Dakota, New Mexico, Utah, and Wyoming.

The PPIF supports BLM’s staff working on approvals for oil and natural gas activities, including permits, rights of way, environmental analysis, sundry notices, and surface‑use plans. Money is also used for interagency coordination with other federal agencies, staff hiring, and training.

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