BLM will start collecting $4,000 oil and gas application fee |

BLM will start collecting $4,000 oil and gas application fee

The omnibus appropriations bill signed into law by President Bush on Dec. 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 Dec. 26. Final guidance will be developed over the next several weeks.

The BLM manages more land ” 258 million surface acres ” than any other federal agency. Most of this public land is located in 12 Western states, including Alaska. The BLM, with a budget of about $1.8 billion, also administers 700 million acres of sub-surface mineral estate throughout the nation.

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