Energy

Court nixes offshore drilling leases auctioned by Biden administration


A federal judge in Washington, D.C., just nixed offshore drilling leases issued by the Biden administration last year. 

Obama appointee Rudolph Contreras vacated both the decision to hold the lease sale, which was issued by the Trump administration, and “the action taken based on that Record of Decision,” including the sale itself, which was held in November. 

The judge returned the sale back to the Interior Department for further proceedings. 

He took issue with underlying Trump-era calculations behind the decision, saying the department “arbitrarily” excluded the impacts the sale would have on foreign energy consumption when calculating its greenhouse gas emissions. 

Interior spokesperson Melissa Schwartz said that the department was reviewing the ruling when asked for comment. 

Environmental groups had opposed the sale, saying they did not want to increase offshore drilling because of climate change, while industry and Republican-led states have supported it. 

The Biden administration last year originally issued a temporary pause on all new oil and gas lease sales, but held the sale in question after the pause was held up in court in June.

Though the sale offered up as many as 80 million acres for lease, companies purchased the rights to drill on 1.7 million acres. 

Despite the June court ruling, environmentalists criticized the sale, arguing that the Biden administration should have modified it or waited for the results of an appeal.

The sale’s opponents cheered the court’s decision, but also called on the administration to take steps to curb drilling in general. 

“We are pleased that the court invalidated Interior’s illegal lease sale,” said Earthjustice Senior Attorney Brettny Hardy in a statement. “This administration must meet this critical moment and honor the campaign promises President BidenJoe BidenNorth Korea conducts potential 6th missile test in a month Clyburn predicts Supreme Court contender J. Michelle Childs would get GOP votes Overnight Defense & National Security — US delivers written response to Russia MORE made by stopping offshore leasing once and for all. Interior should use its next 5-year leasing plan to protect our coastal communities and public waters and offer no new offshore leases.”

Meanwhile, industry argued that the administration should “defend” offshore oil production. 

“The U.S. offshore region is vital to American energy security and continued leases are essential in keeping energy flowing from this strategic national asset,” said a statement from Erik Milito, president of the National Ocean Industries Association, which represents both offshore drilling and offshore wind interests. 

“It will be incumbent on the Administration to defend responsible U.S. offshore production and to take the necessary steps to ensure continued leasing and energy production from the U.S. Gulf of Mexico, for the benefit of all Americans,” he said. 

— Updated at 8:54 p.m.





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