Oil firms sue U.S. over Gulf auction changes for whale protection.
An Oil and Gas Industry Trade Group, Louisiana, and Chevron Sue Biden Administration Over Gulf of Mexico Lease Sale
The oil and gas industry, the state of Louisiana, and Chevron have filed a lawsuit against the Biden administration’s decision to withdraw acreage from an upcoming oil and gas lease sale in the Gulf of Mexico. The reason behind the withdrawal is to protect an endangered whale species.
Dispute Over Leasing Federal Lands and Waters for Energy Development
This lawsuit is the latest in a series of disputes between the oil and gas industry and the Biden administration regarding the leasing of federal lands and waters for energy development.
Biden had paused federal drilling auctions as part of his climate change agenda, but the Inflation Reduction Act, which is a year old, requires the government to hold the Gulf of Mexico lease sale planned for next month.
Finalized Plans for the Lease Sale
The lawsuit was filed in federal court for the Western District of Louisiana after the Interior Department’s Bureau of Ocean Energy Management finalized plans to conduct the lease sale. The final sale notice included new restrictions on development to protect the endangered Rice’s whale.
Challenging the Department of the Interior’s Actions
“Today we’re taking steps to challenge the Department of the Interior’s unjustified actions to further restrict American energy access in the Gulf of Mexico,” said Ryan Meyers, Senior Vice President and General Counsel of the American Petroleum Institute.
The Interior Department has not yet responded to the lawsuit.
Unjustified Changes to the Lease Stipulations
The new lease stipulations removed over 6 million acres originally intended for the auction and imposed requirements on vessel operators to maintain a vigilant watch for the whales and abide by speed restrictions in their habitat.
The American Petroleum Institute argues that these changes are unjustified and unlawful.
Agreement with Environmental Groups
The changes were made as a result of an agreement between federal agencies and environmental groups that sued in 2020, alleging inadequate safeguards for the whales. The lawsuit is currently paused.
Upcoming Lease Sale
Lease Sale 261 is scheduled for September 27 and will offer approximately 12,395 blocks on approximately 67 million acres on the U.S. Outer Continental Shelf in the Gulf of Mexico.
(Reporting by Mrinmay Dey and Nichola Groom; Editing by Michael Perry)
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