Petroleum Association of Wyoming Applauds Bipartisan Permitting Bill from Senators Barrasso and Manchin
Energy Permitting Reform Act of 2024 will address significant deficiencies in federal permitting
July 22, 2024
Casper, Wyo. – The Petroleum Association of Wyoming (PAW) proudly supports today’s introduction of bipartisan legislation by U.S. Senator John Barrasso (R-WY) and U.S. Senator Joe Manchin (D-WV) that aims to bring clarity and efficiency to the federal mineral leasing process. This landmark bill addresses several critical issues faced by the oil and gas industry, ensuring a more transparent and fair system for all stakeholders. PAW President Pete Obermueller testified before the Senate Energy and Natural Resources Committee last summer regarding permitting issues, and we are grateful for the Senators’ responsiveness to these concerns.
Clarification on Federal Authority
Drilling technology has advanced to the point that developers can now drill thousands of feet below ground, turn the bit sideways, and keep drilling up to 3 miles horizontally. Federal rules on when the BLM has authority to regulate the surface have not kept pace. The federal government would like to control surface activity even when they don’t own the land – only the minerals at the very end of the 3 mile well bore, deep underground. This bill will eliminate unnecessary federal oversight in these situations – called “fee, fee, fed” wells – promoting responsible development of natural resources while respecting private property rights.
Nomination Fee Reforms
The legislation prioritizes industry nominations in lease offerings, replacing the current opaque system that requires companies to pay $5 per acre with no guarantee the Bureau of Land Management will ever offer the parcels for leasing. This change will bring much-needed transparency and efficiency to the leasing process, ensuring that nominated parcels are given due consideration and reducing the risk of wasted investments. Additionally, the nomination fee will be paid by the company with the winning bid rather than the company nominating the parcel – encouraging more companies to participate in the nomination process and tying investment to possible production income, thus fostering a competitive lease auction and securing better returns to American taxpayers.
Adjudication Reforms
Additional reforms in the legislation include several provisions designed to streamline timeframes for litigation.
- A 150-day statute of limitations from the date of final agency action on a project
- Requires expedited review by the courts of any legal challenges
- A 180-day deadline for agencies to act on any remanded authorization
These requires will shorten delays caused by court filings while still maintaining all rights to judicial review.
Obermueller stated, “This legislation represents a significant step forward in ensuring that our industry can operate more efficiently, quickly and transparently. By addressing the issues of federal oversight, lease nominations, and fees, this bill supports responsible resource development and respects the rights of private landowners.”
About PAW: Representing Wyoming’s primary economic engine, the Petroleum Association of Wyoming, is the voice of the oil and gas industry. Our members produce 90% of Wyoming’s oil and gas, generating over $8 billion in economic activity and employing more than 19,000 of Wyoming’s hard-working men and women. PAW strives to foster mutually beneficial relationships with Wyoming’s landowners, businesses, and communities while promoting the sustainable production of Wyoming’s abundant resources.
The Petroleum Association of Wyoming provides a forum for education, interaction, and unified action for members, policymakers, and the public.