The fee to process federal oil and gas applications for permits to drill increased this month from $4,000 per application to $6,500.

The fee hike was part of the 2010 Department of Interior appropriations bill enacted into law on Oct. 30. The fee took effect Nov. 2.

Bureau of Land Management officials said money generated by fees for applications for permits to drill constitutes a reimbursement to the U.S. Treasury for the estimated cost of processing the applications.

The fees were first established in 2005, set at $4,000.

Bruce Hinchey, president of the Petroleum Association of Wyoming, said he spoke with one oil and gas producer who submitted several applications to the BLM last week and was shocked to hear that the fee had increased.

"It doesn't take very many of those to add up. It's pretty costly," Hinchey said.

Energy reporter Dustin Bleizeffer can be reached at (307) 577-6069 or dustin.bleizeffer@trib.com. Check out Dustin's blog at http://tribtown.trib.com/DustinBleizeffer/blog" href= "http://tribtown.trib.com/DustinBleizeffer/blog">http://tribtown.trib.com/DustinBleizeffer/blog