Court Blocks Joe Biden’s Pause on U.S. Oil and Gas Leases

SEATTLE (Oil Monster):   A judge on Tuesday cleared the way for oil and gas leases to resume on US public lands by blocking a decision by Joe Biden’s administration to suspend them, dealing a blow to the president’s efforts to shift the country away from fossil fuels.

The Louisiana court ruled in favour of 13 broadly pro-fossil fuel states including Texas, Alaska and Oklahoma, granting a preliminary injunction against the White House’s pause on new leases. The decision allows for the leasing process to resume while the court hears further arguments in the case.

“The omission of any rational explanation in cancelling the lease sales, and in enacting the pause, results in this court ruling that plaintiff states also have a substantial likelihood of success on the merits of this claim,” Judge Terry Doughty said.

The ruling was a significant setback for Joe Biden, who ordered the suspension of new leases for fossil fuel development on public lands and waters in January while a review of the permitting process was carried out.

The suspension — which did not affect existing drilling permits — fulfilled an election pledge and marked the president’s most significant move against the energy sector after he campaigned on a “transition away from oil”.

The interior department said it would comply with Tuesday’s decision but would continue work on the review, which it said would “outline next steps and recommendations”.

The department declined to comment on when lease auctions might resume.

The suspension did not affect activity on private land, which makes up most US oil and gas output. Instead, it applied specifically to federally held lands and waters, which account for about 22 per cent of American oil production.

But the judge found the pause could do significant harm to states where production depends on public lands. “Millions and possibly billions of dollars are at stake,” Doughty wrote. “Plaintiff states have a reliance interest in the proceeds derived from offshore and on land oil and gas lease sales.

The decision was welcomed by the oil industry. “The federal leasing pause is harmful to our nation’s national security, environmental progress and economic recovery,” said Kevin O’Scannlain, vice-president of upstream policy at the American Petroleum Institute, Big Oil’s powerful Washington lobby group. “We are pleased to see the court ruling that natural gas and oil leasing must resume on federal lands and waters.”

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Courtesy: www.ft.com