News Release

For Release: Wednesday, Jan. 2, 2008    
Contacts: Tom Gorey, 202-452-5137 or Tim Spisak, 202-452-5061

Congress Directs BLM to Collect $4,000 Processing Fee for New Oil and Gas Drilling Permit Applications

The fiscal year 2008 omnibus appropriations bill – signed into law by President Bush on December 26 – requires that the Bureau of Land Management charge a $4,000 processing fee for each new oil and gas drilling permit application, known as an “Application for Permit to Drill” (APD).  Prior to enactment of the omnibus bill, there was no charge for processing APDs.  The money generated by these fees is not new revenue, but rather a reimbursement to the U.S. Treasury for the estimated cost of processing new APDs for the duration of fiscal year 2008.

To carry out this congressional directive, the BLM has developed interim guidance for its field offices regarding the collection and handling of the new fees, which took effect December 26.  Final guidance will be developed over the next several weeks.

– BLM –