House Passes License to Drill Act, Extending BLM Permit Processing Fund Through 2037
According to Rigzone, the License to Drill Act (H.R. 7831) passed the U.S. House of Representatives this week, with the Congress.gov website confirming a version of the bill was engrossed in the House on June 2, 2026.
What the Bill Does
H.R. 7831 extends the Bureau of Land Management’s authority to collect oil and gas permit processing fees through FY2037. Under current law, that authority expires in FY2026, meaning the program could lapse as soon as September if the Senate does not act in time.
The fees collected from each new permit application are transferred to the BLM Permit Processing Improvement Fund (PPIF), a program originally created under the Energy Policy Act of 2005. The fund supports BLM staff working on oil and natural gas approvals, including permits, rights of way, environmental analysis, sundry notices, and surface use plans. It also covers interagency coordination, staff hiring, and training at high-volume BLM field offices.
The Independent Petroleum Association of America called the bill “key,” with IPAA Executive Vice President and Chief Policy Officer Dan Naatz stating: “H.R. 7831 reauthorizes a longstanding policy that is an important framework for federal land producers.” Naatz added that “the concept is sound, industry pays its own way.”
The bill still needs to pass the Senate and be signed by President Donald Trump to become law, according to Congress.gov.
What It Means for Subcontractors
- Permitting continuity is at stake. If the PPIF expires in September, BLM field offices covering federal and tribal lands in the Permian, Rockies, and Bakken could face staffing and processing slowdowns, creating permit backlogs that delay drilling starts for field service companies.
- Watch the Senate timeline. The House passage is a necessary step, but the clock is tight. Subcontractors with federal land work in their pipeline should monitor Senate action closely and factor potential permitting delays into project schedules.
- Federal land operators depend on this fund. The PPIF supports the full approval chain, including rights of way and surface use plans that subcontractors need before mobilizing to a wellsite. A lapse would ripple downstream to service providers, not just operators.
- Bipartisan history is a positive signal. The IPAA noted the program has earned bipartisan support in multiple previous reauthorizations, which may improve the bill’s odds in the Senate.
