A federal court upheld an order forcing the Biden administration to expand the upcoming sale of offshore drilling rights in the Gulf of Mexico, while giving the government more time to hold the auction.
The decision by the Fifth Circuit Court of Appeals in New Orleans on Monday afternoon was a blow to environmental groups that had sought to quickly restore auction limits they considered essential to protect the endangered Rice whale .
The three-judge panel ordered the auction to take place no later than November 8, but otherwise left in place a lower court order forcing the Interior Department to sell more land for potential development oil Under that order, the agency must include 6 million acres it previously removed from the auction block and remove planned vessel traffic limitations in an area that can provide habitat for the species.
Louisiana and oil industry representatives, including the American Petroleum Institute, units of Chevron Corp. and Shell Plc, had challenged the constraints, with Chevron saying they could increase costs and time to complete projects in the region.
“We are pleased that the Fifth Circuit upheld the district court’s decision to compel the Department of the Interior to reinstate the removed acreage and remove onerous stipulations, but this administration has once again found a way to delay sales of oil and gas leasing,” he said. Ryan Meyers, API Senior Vice President and General Counsel.
The environmentalists, who had joined the Biden administration in appealing the lower court’s ruling and seeking a stay of the lower court’s order, argued that oil and gas activities in the northern Gulf of Mexico a serious threat to the continued survival of the rice whale, given that only 51 are estimated to remain.
Although the Fifth Circuit court ordered the Interior Department to take “necessary steps” to implement the order and warned that there would be no extension of the Nov. 8 sales deadline, the additional time allows the court considers the appeal of environmental groups on their appeal. merits
“Today’s ruling negates the oil industry’s frantic attempt to rewrite the rules of the game just as the clock is running out,” said Earthjustice attorney Steve Mashuda. “We will continue this fight to protect the near-extinct rice whale from unnecessary harm from the oil industry.”
A spokeswoman for the Department of the Interior declined to comment Monday night.
Oil and gas companies were preparing to submit sealed bids for the auction that was originally scheduled to take place on Wednesday. The sale, mandated by the Inflation Reduction Act, is the last clear chance for oil companies to buy new leases in the Gulf. The Interior Department has yet to issue its final plan to sell offshore oil and gas leases over the next five years, a legally required precursor to holding auctions.
A potential federal government shutdown could halt planning even for a Nov. 8 auction. Congress is still debating a spending plan for the federal government needed to keep the government open after the new fiscal year that begins Oct. 1.
