67 million acres of Gulf of Mexico oil leases held up by environmentalists, endangered whales

The Biden administration announced the sale in March and was originally scheduled to take place on September 27. However, in August, the government reduced the area available for leasing from 73 million acres (30 million hectares) to 67 million acres (27 million hectares) as part of a plan to protect endangered Rice’s whales. The Bureau of Ocean Energy Management (BOEM) changes also include new speed limits and new requirements for personnel aboard industrial vessels in certain lease areas.

Oil and gas companies sued, leading a federal judge in Lake Charles to order the changes be overturned. The government appealed to the 5th U.S. Circuit Court of Appeals in New Orleans. The Court of Appeal initially set a date for the sale on November 8, with appeals still pending. On Thursday, however, the court issued an order delaying the sale until a time after the case is argued on November 13.

BOEM adopted the reduced acreage and new lease sales rules as part of an agreement between the government and environmentalists to resolve a whale conservation lawsuit filed in federal court in Maryland.

Chevron, Shell Offshore, the American Petroleum Institute and the state of Louisiana filed a lawsuit seeking to undo the acreage reductions and block whale protection measures from being included in the terms of the lease sales. They claim the government’s actions violate provisions of the 2022 climate measure, known as the Inflation Reduction Act, which provides broad incentives for clean energy and creates new drilling opportunities in the Gulf.

Environmental groups involved include Earthjustice.

“We look forward to the opportunity to present our arguments to the Court of Appeal. We will continue to press for the restoration of basic measures to prevent harm to critically endangered whales,” Earthjustice attorney Steve Mashuda said in an emailed statement.

Thursday’s court delay comes amid growing criticism of the administration’s policies at Senate hearings. Republican Sen. John Barrasso of Wyoming and Democratic Sen. Joe Manchin of West Virginia, key figures in passing the Inflation Reduction Act, both said the administration is Enforcement of the lease sales required by the Act has been too slow.

Manchin said the administration was “surrendering” in its settlement with environmentalists. Barrasso said the government “is working to block all future offshore lease sales.”

The government has been criticized by the energy industry and environmentalists over conflicts of interest. The five-year plan announced on Sept. 29 includes three proposed sales in the Gulf of Mexico — the minimum amount a Democratic administration can legally offer if it wants to continue expanding offshore wind development under the 2022 climate bill.