Federal Judge Strikes Down Biden’s Gulf Coast Oil Lease—What’s Next?

A federal judge’s decision stated the Department of Interior failed sufficiently consider the effects of offshore drilling leases on planet-warming greenhouse gas emissions and an endangered whale species, thus illegally opening up for offshore drilling leases an expanse of Gulf Coast federal waters bigger than the state of Colorado.

District Court for the District of Columbia Judge Amit Mehta’s finding on Thursday that the federal agency violated bedrock environmental rules when it permitted bidding on 109,375 square miles (283,280 square kilometers) of Gulf Coast waters puts in question the future of one of the most recent offshore drilling lease sales authorized under the Biden administration.

Environmental organizations, the oil and gas business and the federal government are currently negotiating solutions. Representing the plaintiffs, Earth Justice Attorney George Torgun stated that one result on the table is nullifying the sale of leases valued $250 million over 2,500 square miles (6,475 square kilometers) of Gulf federal waters successfully bid on by corporations.

A government study said the Gulf Coast licenses were projected to generate up to 1.1 billion barrels of oil and more than 4 trillion cubic feet (113 billion cubic meters) of natural gas over 50 years. The study indicated that burning such oil would generate tens of millions more carbon dioxide emissions.

The court said the government “failed to take a ‘hard look'” at the whole carbon footprint of increasing drilling on the Gulf Coast.

One of three offshore oil and gas lease auctions required under a 2022 climate bill deal meant to guarantee backing from now-retired Sen. Joe Manchin, a major beneficiary of oil and gas sector contributions, the auction was A federal court last July on like reasons halted another of the required oil and gas lease auctions in Alaska’s Cook Inlet.

Hallie Templeton, legal director of Friends of the Earth, a charity that one of the plaintiffs in the case, said, “The least federal officials can do is thoroughly investigate its damages if they are going to keep greenlighting offshore drilling.” We will continue to battle to put a complete stop to this harmful business; in the interim, we will closely monitor the government to guarantee adherence to all relevant laws and orders.

Drilling would also endanger the Rice’s whale, a species with less than 100 estimated remaining living alone along the Gulf Coast, court filings filed by environmental advocacy organizations say.

A Department of the Interior official stated the department could not discuss ongoing litigation.

The procedure fell short of National Environmental Policy Act, or NEPA, criteria, which calls on federal agencies to evaluate the environmental consequences of their activities before making decisions about public lands.

President Donald Trump’s administration has promoted a “drill, baby, drill” policy increasing the fossil fuel sector, removing the U.S. from the Paris climate agreement and rolling back environmental rules—including for NEPA—while Joe Biden later tried to outlaw offshore drilling in his final days in office.

A party to the Gulf Coast lawsuit, the American Petroleum Institute, or API, an oil and gas trade group representing over 600 companies, stated it is considering its choices following this week’s decision.

According to API spokesman Scott Lauermann, the lawsuit highlights how permitting reform is absolutely necessary to guarantee access to reasonably priced, dependable energy by showing how activists “weaponize” a regulatory process.

A defendant in the case, Chevron, refused to comment and pointed The Associated Press to the API’s statement.

Over the next five years, three offshore oil and gas lease auctions are planned.

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