The clock was ticking for companies trying to push through new drilling permits on federal lands as the looming threat of a government shutdown drew closer Monday. If the United States House and Senate are unable to come to an agreement about a short-term spending plan, the resulting government shutdown would bring to an abrupt halt at least some oil permitting, according to a geophysicist.
“If there is a shutdown, no new federal permits would be written. Without permits, there would be no drilling on federal lands, or offshore lands more than three miles out,” said Kathy Hardy, a geophysicist for EPL Oil and Gas.
While a well site that is on non-federal land is under control of the state, and would not be affected, anything that is done on federal land requires a separate permit, Hardy said.And then this:
“There are at least three different permits needed. You need a permit to drill the well, and a permit to complete the well, and a permit to plug the well. If there is anything else done, you need a permit for that, too,” said Hardy.I assume this means no more permits in much of the Bakken.