In a recent development, a federal judge has decided that a vast area of federal waters in the Gulf Coast, exceeding the size of Colorado, was improperly made available for offshore drilling leases. The Department of Interior has been found lacking in its thoroughness, failing to properly evaluate how these leases would impact both greenhouse gas emissions and a critically endangered whale species.
The prospects for one of the latest offshore drilling lease sales, authorized under the Biden administration, face uncertainty following a decision by Judge Amit Mehta of the District of Columbia district court. He ruled that the federal agency bypassed essential environmental regulations when it permitted bidding on 109,375 square miles (283,280 square kilometers) of Gulf Coast waters.
Currently, environmental organizations, the federal government, and the oil and gas industry are deliberating on potential actions. Earthjustice Attorney George Torgun, who is representing the plaintiffs, suggests that a possible remedy could involve annulling the sale of leases valued at $250 million, spread over 2,500 square miles (6,475 square kilometers) of federal Gulf waters that companies had successfully bid on.
The leases were projected to yield up to 1.1 billion barrels of oil and over 4 trillion cubic feet (113 billion cubic meters) of natural gas over the next 50 years. However, government analyses indicate that burning this oil could lead to a significant rise in carbon dioxide emissions, quantified in the tens of millions of tons.
The judge criticized the agency’s analysis, stating it inadequately assessed the carbon emissions associated with drilling expansion in the Gulf Coast. This auction was part of a trio of mandated offshore oil and gas lease sales included in a 2022 climate bill, designed to gain the backing of former Sen. Joe Manchin, a notable recipient of oil and gas sector contributions. A similar lease sale in Alaska’s Cook Inlet was previously overturned due to comparable legal challenges.
Legal director Hallie Templeton from Friends of the Earth, one of the plaintiffs, emphasized the necessity for comprehensive analysis by federal officials if they are to continue approving offshore drilling. Templeton also expressed commitment to stopping these practices and ensuring that the government adheres to all legal and environmental standards.
One of the environmental concerns presented pertains to the Rice’s whale, with numbers dipping below 100, residing solely in the Gulf Coast, highlighting the critical nature of the species’ conservation.
A spokesperson for the Department of the Interior has refrained from commenting on the ongoing litigation. The judged process allegedly fell short of the standards required by the National Environmental Policy Act (NEPA), a mandate that necessitates federal agencies to thoroughly evaluate the environmental consequences of their decisions.
While President Joe Biden pursued restrictions on offshore drilling towards the end of his term, the previous administration under President Donald Trump pushed strongly for expansion within the fossil fuel industry, including withdrawal from the Paris climate agreement and a rollback of NEPA regulations.
The American Petroleum Institute (API), representing over 600 oil and gas firms and involved in the Gulf Coast legal matter, is reviewing its possible responses to the court’s decision. API’s spokesperson, Scott Lauermann, has pointed to the case as illustrating how the approval process is being exploited by activists, advocating for reforms to permit procedures to maintain access to economical and reliable energy.
Chevron, also named in the lawsuit, offered no comment, directing inquiries to the API’s response.
Meanwhile, three more offshore oil and gas lease sales have been scheduled over the coming five years.