P.O Box 863, Lafayette, CO 80026
Regulatory ReportingColoradoBLM’s APD Processing Fee Expired: What Operators Need to Know
Map of the seven BLM offices funded by APD fees in Montana, Wyoming, Utah, Colorado and New Mexico, over a high-desert landscape

BLM’s APD Processing Fee Expired: What Operators Need to Know

By: Ashley Noonan | Last updated: October 3, 2026

At a glance

  • The Bureau of Land Management's (BLM) authority to collect the Application for Permit to Drill (APD) processing fee expired on September 30, 2026.
  • APDs submitted in BLM's Automated Fluid Minerals Support System (AFMSS) on or after October 1, 2026, do not require a fee payment or receipt number.
  • The fee, more than $12,500 per APD, funds the Permit Processing Improvement Fund (PPIF), which pays permitting staff at eight high-volume BLM field offices.
  • The License to Drill Act (H.R. 7831 / S. 5039) would extend the fee through FY2037. It has passed the House and cleared the Senate Energy and Natural Resources Committee, and is awaiting a Senate floor vote.
  • Operators should keep filing, but plan for possible review delays if the lapse continues.

What happened

On September 30, 2026, the Bureau of Land Management's statutory authority to charge a processing fee on new oil and gas Applications for Permit to Drill ran out.

Congress first created the fee and the Permit Processing Improvement Fund as a pilot in the Energy Policy Act of 2005. It renewed and expanded the program in 2014 through Public Law 113-291, which directed BLM to collect the fee and adjust it for inflation each year from FY2016 through FY2026. That ten-year window has now closed.

By FY2026, inflation adjustments had pushed the fee above $12,500 per application. The fee applies to APDs on federal and Indian lands, and BLM keeps it whether or not the permit is approved.

What BLM is telling operators

On October 1, 2026, BLM's AFMSS support team notified operators that APDs submitted on or after that date do not need to include a processing fee. In practice:

  • No payment, no receipt. AFMSS no longer requires APD fee information, and an APD will submit without a receipt number.
  • The field is still there. The fee data field stays in AFMSS 2 but is no longer required.
  • Clear your cache. If AFMSS still asks for fee information, clear your Google Chrome cache for "All time" so the change takes effect.

BLM has not yet said whether processing timelines will change, or how it will staff PPIF-funded positions during the lapse. The BLM AFMSS team has said it will share more information as it becomes available.

Why a "free" APD isn't good news

The APD fee pays for the people who review APDs. Part of every fee goes into the Permit Processing Improvement Fund, which pays permitting staff at eight high-volume BLM field offices in Colorado, Montana/North Dakota, New Mexico, Utah and Wyoming.

Those offices handle APDs, rights-of-way, environmental analysis and surface use plans for some of the most active federal acreage in the country. BLM public lands produce about 10% of U.S. oil and natural gas.

Without new fee revenue, those positions lose their dedicated funding source. If the lapse lasts, operators in PPIF offices should expect the risk of longer review times and bigger backlogs. That would come just as federal permitting timelines had been improving.

The program costs taxpayers nothing. As the Independent Petroleum Association of America has put it, "industry pays its own way."

Where Congress stands

The fix is drafted and has bipartisan support. It just didn't get to the President before the deadline. The License to Drill Act (H.R. 7831, introduced by Rep. Mike Kennedy, R-UT; companion S. 5039, introduced by Sen. Mike Lee, R-UT) would extend BLM's authority to collect the APD fee, and the PPIF, through FY2037.

Date (2026)Milestone
March 26House Energy and Mineral Resources Subcommittee holds a hearing on H.R. 7831
May 14House Natural Resources Committee advances the bill
June 2Full House passes H.R. 7831 with broad bipartisan support
July 21Sen. Lee introduces S. 5039
July 29Senate Energy and Natural Resources Committee approves the bill unanimously
September 17H.R. 7831 reported to the full Senate without amendment
September 30APD fee authority expires

What's left: a Senate floor vote, likely by unanimous consent, and the President's signature. Federal government funding currently runs through December 11, 2026, so the next funding package is another possible way to restore the fee if the standalone bill stalls.

What operators should do now

  1. Keep submitting APDs. BLM is accepting APDs without the fee, so there's no reason to hold back filings while Congress acts.
  2. Track every APD you file fee-free. Log the submission date and APD number. Nobody has said how a reauthorization will treat permits filed during the gap, and a clean record will help if BLM issues follow-up guidance.
  3. Build cushion into 2027 schedules. If you have federal wells planned in a PPIF office, add margin to spud dates that depend on APD approval.
  4. Watch for BLM guidance. Check AFMSS notices and BLM instruction memoranda for updates on processing and on any retroactive fee requirement.
  5. Budget for the fee to return. Once the License to Drill Act becomes law, expect the fee to come back at or above its FY2026 level, with annual inflation adjustments.

Questions worth answering before BLM asks them for you

  • Which of your APDs were submitted on or after October 1, 2026, without a fee?
  • Do you have a log of APD numbers and submission dates for every fee-free filing?
  • Which of your 2027 federal wells sit in a PPIF-funded field office?
  • How much schedule margin do your spud dates have if APD reviews slow down?
  • Has everyone filing in AFMSS cleared their browser cache so the old fee field isn't blocking submissions?
  • Is the APD fee in your 2027 budget in case Congress reinstates it mid-year?

Do I need to pay the BLM APD fee right now?

No. For APDs submitted on or after October 1, 2026, BLM has no authority to collect the fee, and AFMSS doesn't require a payment or receipt number.

Why is AFMSS still asking for fee information?

Your browser is probably showing a cached version of the form. BLM recommends clearing your Google Chrome cache for "All time."

Will BLM still process my APD?

BLM is still accepting APDs. It hasn't said whether review times will change during the lapse.

What is the Permit Processing Improvement Fund?

The PPIF receives part of each APD fee and uses it to pay permitting staff at eight high-volume BLM field offices in CO, MT/ND, NM, UT and WY

When will the APD fee come back?

When Congress passes the License to Drill Act (H.R. 7831 / S. 5039) and the President signs it. The bill has passed the House and is awaiting a Senate floor vote.

Will I owe a fee later for APDs filed during the lapse?

That hasn't been decided. Keep records of fee-free filings in case BLM issues guidance.

How Progressive can help

Progressive Consulting prepares and tracks federal APDs through AFMSS, along with state permitting in about 17 states. We're following the License to Drill Act closely and will update this article as BLM issues guidance and Congress acts.

Have questions about how the lapse affects your federal permitting schedule?

Contact our team

Last updated October 3, 2026.

Sources

ELEVATE YOUR BUSINESS WITH

Valiance theme

Limitless customization options & Elementor compatibility let anyone create a beautiful website with Valiance.

CONTACT US

156-677-124-442-2887