H.R. 7831: License to Drill Act

This bill, named the License to Drill Act, proposes amendments to the Mineral Leasing Act regarding fees for permits to drill for oil and gas. The key points of the bill are as follows:

Extension of Fee Collection Period

The bill extends the period during which the Secretary of the Interior is required to collect a fee for each new application for a drilling permit from 2026 to 2037. This means that for a longer time frame, companies applying for these permits will have to pay designated fees.

Changes to Fee Distribution

The bill modifies how fees collected from drilling permit applications will be handled:

• The language indicates that all fees collected from fiscal years 2027 through 2037 will be transferred to the BLM Permit Processing Improvement Fund.
• This change ensures that the fees are used specifically for improving the efficiency of the Bureau of Land Management's processing of drilling permits.

Implications for the Bureau of Land Management (BLM)

By extending the fee collection and reallocating the funds, the bill aims to enhance the BLM’s capabilities in managing and processing drilling permits, potentially leading to more efficient administration of oil and gas leasing on public lands.

Duration of Fee Collection

The specific amendments to the law replace the previous expiration year of 2026 with 2037. This change signifies an increase in the time that drilling permit fees will be collected, effectively ensuring a steady revenue stream for the operations related to processing these permits.

Overall Purpose

The main objective of the License to Drill Act is to streamline the process of obtaining drilling permits while ensuring that there is a dedicated funding source to support this initiative over an extended period.

Relevant Companies

• XOM (Exxon Mobil Corporation): This bill could impact Exxon Mobil as they may need to navigate the extended permit application and associated fee structure for new drilling projects.
• CVX (Chevron Corporation): Similar to Exxon, Chevron's drilling operations may be influenced by the fee extensions and improvements in permit processing.
• OXY (Occidental Petroleum Corporation): Changes to permit fee structures and the allocation of fees to improvement funds may affect how Occidental plans its drilling operations in the coming years.