A federal judge struck down a Biden administration rule that would place restrictions on an offshore oil and gas lease sale.
A federal judge struck down a Biden administration rule that would place significant restrictions on an offshore oil and gas lease sale, according to an order issued on Thursday.
In the Thursday evening ruling, Judge James Cain of the Western District of Louisiana ordered the Biden administration to expand its sale of the Gulf of Mexico oil leases later this month, according to multiple news reports. It came after the state of Louisiana, the American Petroleum Institute group, Chevron, and Shell filed a lawsuit to block the federal Bureau of Ocean Energy Management’s restrictions on Lease Sale 261, a sale that is scheduled for next week.
The judge ruled that the sale must occur by Sept. 30 under its original conditions.
“The court observes that plaintiffs have demonstrated substantial potential costs resulting from the challenged provisions,” Judge Cain wrote. “While the government defendants largely focus on the acreage withdrawal and dynamics of the sale itself, many of plaintiffs’ alleged hardships arise from the vessel restrictions.”
Plaintiffs, he wrote, have demonstrated a ” likelihood that these will burden their operations on current and planned leases,” adding, “the resulting costs would not be undone by the court’s entry of a permanent injunction and order of another sale.”
In a criticism of the Biden administration’s rulemaking, he said it appeared to be “a weaponization of the Endangered Species Act than the collaborative, reasoned approach prescribed by the applicable laws and regulations.” The judge wrote that federal officials, meanwhile, have attempted to “provide scientific justification to a political reassessment of offshore drilling” by issuing restrictions on the lease sale.
Federal officials in late August issued the restrictions in a bid to protect a Gulf of Mexico whale species after it came to a settlement with a coalition of environmental organizations. The Bureau of Ocean Energy Management issued a notice that had expanded protections for the Rice’s whale, which is listed as an endangered species.
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