Dept. of Interior Files Court Brief Outlining Next Steps in Oil & Gas Leasing Program

Last week, the United States appealed the preliminary injunction entered by the district court in Louisiana v. Biden, which enjoined the Department of the Interior from implementing the pause in new federal oil and gas leasing as set forth in Section 208 of Executive Order 14008. The federal onshore and offshore oil and gas leasing program will continue as required by the district court while the government’s appeal is pending.

Today, as required by the court, the Department of Justice (DOJ) filed a brief advising the district court of the steps taken by the Interior Department to comply with the preliminary injunction, including next steps in the offshore and onshore oil and gas leasing processes. Accordingly, the government advised the district court of the following schedule demonstrating compliance with the district court’s injunction:

• The Bureau of Ocean Energy Management (BOEM) will submit the Record of Decision for Lease Sale 257 in the Gulf of Mexico to the Federal Register by the end of August. The sale notice for Lease Sale 257 is expected to be published in September. By law, the lease sale may not take place sooner than 30 days after publication of the sale notice. This fall, BOEM also will issue and take comments on a Draft Environmental Impact Statement analyzing Lease Sale 258 in Cook Inlet.

• The Bureau of Land Management (BLM) state offices will post for scoping parcels included in Quarter 1 and Quarter 2 2021 leasing deferrals by the end of August. Following a 30-day scoping period and taking into account comments received, the BLM will undertake environmental reviews of parcels for potential leasing. Following this review, state offices will identify any eligible parcels and applicable stipulations in lease sale notices posted later this year.

In complying with the district court’s injunction, the Interior Department will continue to exercise the authority and discretion provided under law to conduct leasing in a manner that fulfills Interior’s legal responsibilities, including to take into account the programs’ documented deficiencies.

The Interior Department is continuing to review the programs’ noted shortcomings, including completing a report. The Department also will undertake a programmatic analysis to address what changes in the Department’s programs may be necessary to meet the President’s targets of cutting greenhouse gas emissions in half by 2030 and achieving net zero greenhouse gas emissions by 2050.

The Department of Interior said, “The appeal of the preliminary injunction is important and necessary. Together, federal onshore and offshore oil and gas leasing programs are responsible for significant greenhouse gas emissions and growing climate and community impacts. Yet the current programs fail to adequately incorporate consideration of climate impacts into leasing decisions or reflect the social costs of greenhouse gas emissions including, for example, in royalty rates. Furthermore, past operation of the programs did not adequately reflect the breadth of the Interior Secretary’s stewardship responsibilities, including conserving wildlife habitat, protecting historic and cultural resources, ensuring that public lands are available for multiple uses, protecting marine, coastal, and human environments, meeting trust responsibilities to American Indian and Alaska Native Tribes, and providing a fair return to taxpayers.”

Click here to read the full statement from Dept. of Interior

The Louisiana Mid-Continent Oil & Gas Association (LMOGA) issued the following statement regarding the Department of Interior’s announcement on next steps on the leasing program: 

“LMOGA is encouraged by the Department of Interior’s decision to comply with the court order and make progress towards resuming federal lease sales, but we can’t ignore the negative impact the policy decisions of the past year have had on Louisiana,” said Tyler Gray, LMOGA President. “Offshore energy development and lease sales not only provide jobs to thousands of citizens, but the revenues generated also provide critical funding for local communities and coastal restoration.”

“While the case is under appeal and DOI’s review of the leasing program continues, we urge Interior to consider both the environmental and economic benefits of Gulf of Mexico energy production,” said Gray. “The Administration clearly recognizes the importance of oil production for the consumer as they encourage OPEC to increase production but fails to support American homegrown energy to meet consumer demands. We need smart, sound transitional policies to successfully achieve our climate goals that reflect the reality that long term demand for reliable sources of energy will continue to grow.”