Pecos raises drilling permit fee to $20,000; council cites inflation and regional norms
Summary
After hearing staff and industry comparisons, the council voted to amend the city fee schedule to raise drilling permit fees from $4,000 to $20,000, noting that Bureau of Land Management and regional authorities charge substantially higher amounts.
Pecos City Council voted Thursday to raise the city’s oil and gas drilling permit fee from $4,000 to $20,000, a change council members said brings local fees closer to regional practice and accounts for rising administrative and review costs.
Hector Perosco, who led the discussion on the proposed fee changes, told the council he reviewed fees charged by other jurisdictions and the Bureau of Land Management; staff cited BLM permitting averages in the $10,000–$15,000 range and told the council many regional ordinances have not been fully updated to reflect current costs. Perosco said adopting a higher fee would recover administrative expense and “stop leaving money on the table.”
Council members debated the appropriate level; one councilman moved to increase the drilling permit fee to $20,000 and the motion was seconded and approved by voice vote. Staff explained that the new fee becomes effective after required publication (10 days after publication) and will apply to future permit applications after that statutory notice period.
Council members noted that the area’s active oil-and-gas activity and demand for regulatory review mean developers will continue to seek permits in Pecos despite higher fees. The council instructed staff to publish the new fee schedule and implement the change on the statutory timeline.
