House passes defense bill with BLM drilling permit program provision

Dec. 5, 2014
The US House of Representatives approved a fiscal 2015 defense appropriations bill that includes a provision to extend and make permanent an onshore drilling permit processing pilot program in several US Bureau of Land Management field offices.

The US House of Representatives approved a fiscal 2015 defense appropriations bill that includes a provision to extend and make permanent an onshore drilling permit processing pilot program in several US Bureau of Land Management field offices.

The defense appropriations measure now goes to the US Senate, which previously approved the drilling permit program provision by unanimous consent as a stand-alone bill (OGJ Online, Sept. 17, 2014). The pilot program was scheduled to expire in 2015.

Officials from the American Petroleum Institute and Independent Petroleum Association of America separately welcomed the House’s Dec. 4 action.

“A more efficient permitting process is crucial to America’s all-of-the-above energy strategy,” API Upstream and Industry Operations Director Erik Milito said.

“This legislation will help to address well-documented regulatory delays that have held up energy production on federal lands and slowed the growth of jobs,” Milito said. “It’s a great example of the kind of bipartisan effort that will be needed in the next Congress to ensure that America can continue to grow as an energy superpower.”

Daniel T. Naatz, IPAA’s vice-president of federal resources and political affairs, said continuation of the pilot program, which the 2005 Energy Policy Act established, “will provide much-needed certainty for America’s independent producers—companies with an average of 12 employees—with operations on federal lands.”

Naatz said, “Especially in these uncertain times with price volatility, it is encouraging to have certainty in an expedited permitting process. This program serves an essential role as producers consider future American energy opportunities on federal lands. We hope the Senate approves this measure again in a timely fashion.”

The House acted after six oil and gas association presidents and officials from two national business groups urged Speaker John A. Boehner (R-Ohio) to consider S. 2440 before Congress’s lame-duck session concludes (OGJ Online, Nov. 26, 2014).

Contact Nick Snow at [email protected].