Court orders BOEM to hold GoM Lease Sale 261 the way Congress directed
Written by Nick Blenkey
The State of Louisiana, the American Petroleum Institute, Chevron USA Inc. and Shell Offshore have been granted a preliminary injunction in response to their law suit challenging conditions in BOEM’s Final Notice of Sale for Gulf of Mexico Oil and Gas Lease Sale 261.
The Final Notice of Sale covered significantly reduced acreage than in the proposed notice of sale announced back in March (67 million acres as opposed to 73.4 million). It also placed severe restrictions on oil and gas vessel traffic.
The preliminary injunction granted today by the U.S. District Court for the Western District of Louisiana ordered the Department of the Interior to proceed with Lease Sale 261, absent the terms challenged by the plaintiffs, by September 30, 2023.
The American Petroleum Institute (API) today issued the following statement from senior vice president and general counsel Ryan Meyers:
“We are pleased that the court has hit the brakes on the Biden Administration’s ill-conceived effort to restrict American development of reliable, lower-carbon energy in the Gulf of Mexico. Today’s decision will allow Lease Sale 261 to move forward as directed by Congress in the Inflation Reduction Act, removing the unjustified restrictions on vessel traffic imposed by the Department of the Interior and restoring the more than 6 million acres to the sale. This decision is an important step toward greater certainty for American energy workers, a more robust Gulf Coast economy and a stronger future for U.S. energy security.”
Erik Milito, president of the National Ocean Industries Association (NOIA), noted that preliminary injunction found that the implementation of the challenged actions was procedurally invalid and that the Department of Interior’s decision was arbitrary and capricious. This injunction blocks the new restrictions related to the Rice’s whale in the Final Notice of Sale for Gulf of Mexico Lease Sale 261 and restores millions of acres to the sale.
“The injunction is a necessary and welcome response from the court to an unnecessary decision by the Biden administration,” said Milito. The removal of millions of highly prospective acres and the imposition of excessive restrictions stemmed from a voluntary agreement with activist groups that circumvented the law, ignored science, and bypassed public input.
“In a period when inflation is increasing expenses for Americans, particularly in terms of gasoline prices, we must fully harness America’s energy production capabilities, particularly those offshore. Our leaders should stop ignoring the vast benefits that U.S. offshore oil and gas production provides to Americans. This includes an abundance of energy resources, high-paying job opportunities, environmentally responsible low carbon output, support for coastal resilience and restoration, and enhanced national security, among numerous other benefits.”
BOEM TO COMPLY
BOEM released a statement on September 22 saying that it “is taking steps to comply with an order issued on September 21, 2023, by the U.S. District Court for the Western District of Louisiana regarding Gulf of Mexico Outer Continental Shelf Oil and Gas Lease Sale 261.
“Although the United States is seeking an emergency stay of this order to allow time for a more orderly lease sale process, in the event such relief is not granted, Lease Sale 261 will be conducted on September 27, 2023, and in accordance with the court’s order, BOEM will include lease blocks that were previously excluded due to concerns regarding potential impacts to the Rice’s whale distribution in the Gulf of Mexico. BOEM will also remove portions of a related stipulation meant to address potential impacts to Rice’s whale from the lease terms for the leases that may be issued as a result of Lease Sale 261. For more information, see the Notice to Bidders at www.boem.gov/sale-261.
“BOEM is extending the bid submission period to 3 p.m. CST on September 26, 2023. For Lease Sale 261 only, bidders may hand deliver bids from 9:00 am – 3:00 pm CST on September 25 and 26, or send via mail. For additional bidding instructions modified as a result of the court’s order, please see our website (www.boem.gov/sale-261). BOEM plans to broadcast the opening of bids for Lease Sale 261 via its website (www.boem.gov) on Sept. 27, 2023, at 9 a.m. CST. “
