The largest offshore oil-and-gas lease in the nation’s history has been canceled by a U.S. District Court judge. Judge Rudolph Contreras has invalidated 1.7 million acres of drilling leases in the Gulf of Mexico impacting BP, Chevron and ExxonMobil.
Judge Contreras ruled the Biden administration did not properly take into account greenhouse gas emissions when it approved the $192 million sale of drilling rights on federal oil-and-gas reserves last November, violating the National Environmental Policy Act. Companies including Shell, BP, Chevron and ExxonMobil won the bid for 308 tracts, totaling nearly 2,700 square miles, but Contreras’ 68-page ruling Thursday found the Department of Interior’s Bureau of Ocean Energy Management (BOEM) did not thoroughly review how drilling would impact climate change, according to the Associated Press.
“Barreling full-steam ahead with blinders on was simply not a reasonable action for BOEM to have taken here,” Contreras said to The Associated Press.
Environmental reviews during the Trump and Biden administrations found “that extracting and burning more oil and gas from the Gulf would result in fewer climate-changing emissions than leaving it,” the news wire reported.
Biden attempted to suspend sales of oil-and-gas leases when he took office, but 13 State Attorney Generals led a successful challenge to overturn the policy. However, U.S. District Judge Terry Doughty ordered in June that plans continue for the lease sales in the Gulf, Alaskan waters and all onshore properties.
In a statement, Louisiana Oil & Gas Association President Mike Moncla stressed how the decision will affect consumers in the state and beyond.
“Judge Contreras’ decision to ‘throw out’ the last lease sale is disappointing for industry, but even a bigger blow to the American consumer,” Moncla said. “This administration continues to make decisions that increase energy costs on Americans. In just one year in office, President Biden’s energy policies (or lack thereof) have more than doubled oil, natural gas and gasoline prices.
“LOGA will continue to fight for actual policy that puts Americans to work while also providing affordable, reliable, and abundant energy to our nation.”
Reuters interviewed Earthjustice, the law firm that sued the Secretary of Interior and BOEM in August on behalf of several environmental groups, and they applauded Contreras’ ruling Thursday.
The news service also interviewed WildEarth Guardians, an environmental group that has sued the federal government repeatedly over climate impacts of onshore leasing and won several victories, said this week’s ruling raises doubts about whether the administration can proceed with other planned sales early this year.
“We’ve set a bar. This latest ruling, I think sets an even stronger bar,” said WildEarth Guardians attorney Jeremy Nichols. “And it certainly calls into question whether the Bureau of Land Management is going to be able to legally justify more onshore oil and gas leasing at this point.”
The American Petroleum Institute spokesman Scott Lauermann said late Thursday the API was reviewing the Gulf of Mexico decision and “considering our options.”
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