The Biden White House is under fire for its proposal to have the fewest offshore drilling leases in history, prompting criticism from Republicans and industry advocates. Sen. Joe Manchin, D-W.Va., the chair of the Senate Energy and Natural Resources Committee, condemned the administration’s actions, calling for the lease sale to move forward within two weeks.
The controversy stems from Lease Sale 261, which spans nearly 73 million acres across the Gulf of Mexico. Originally scheduled for September, the sale was delayed to early November due to ongoing litigation. However, the federal appeals court recently stayed a lower court ruling that struck down the Bureau of Ocean Energy Management’s (BOEM) last-minute restrictions on the lease sale.
Sen. Manchin accused the Biden administration of mishandling Lease Sale 261, citing the clear direction in the Inflation Reduction Act (IRA) to proceed with the sale by September 30. He argued that the Department of the Interior’s eagerness to appease environmental groups led to important legal requirements being bypassed, resulting in litigation and further delays.
The senator emphasized that shrinking or delaying the lease sale could jeopardize both energy security and climate goals, potentially increasing dependence on foreign oil and gas. He also highlighted the IRA’s provision that ties offshore wind energy leases to oil and gas leases, suggesting that failure to proceed with the sale could threaten the development of renewable energy sources.
The controversy surrounding Lease Sale 261 began when the Biden administration attempted to cancel three planned offshore Gulf of Mexico lease sales, including 261, in May 2022, citing lack of industry interest. However, the move was met with opposition from the fossil fuel industry, Louisiana, and U.S. oil company Chevron, leading to a lawsuit against BOEM.
In late August, a settlement was reached between BOEM and environmental groups, resulting in restrictions on the lease sale, including reduced acreage available for oil and gas extraction. This prompted the American Petroleum Institute (API), Louisiana, and Chevron to sue BOEM, arguing that the agency’s actions were unlawful.
The legal battle culminated in Judge James Cain granting a preliminary injunction to the plaintiffs, ordering the Biden administration to proceed with Lease Sale 261 without restrictions. However, the U.S. Court of Appeals for the Fifth Circuit allowed BOEM to delay the sale until November 8, pending further arguments.
The indefinite stay issued by the appeals panel on the lower court’s preliminary injunction has raised uncertainty about the future of Lease Sale 261. The next arguments in the case are scheduled for November 13, and it remains to be seen whether BOEM will further delay the sale as a result of the ruling.
Sen. Manchin expressed his willingness to withdraw from the voluntary settlement agreement with environmental groups if it ensures that Lease Sale 261 will proceed on November 8. The settlement agreement, filed in July, included conditions requested by the groups in exchange for temporarily pausing litigation related to the case.
The case, which originated from a lawsuit filed by an environmental coalition, focuses on the National Marine Fisheries Service’s (NMFS) assessment of the oil industry’s impacts on endangered and threatened marine wildlife in the Gulf of Mexico. The settlement expands protections for the Rice’s whale, an endangered species.
Critics argue that the Biden administration’s handling of Lease Sale 261 raises concerns about its commitment to domestic energy production and its ability to balance environmental concerns with economic considerations. The outcome of the legal battle and the future of offshore drilling in the Gulf of Mexico will have significant implications for the energy industry and the country’s energy security.
In conclusion, the Biden administration’s proposal for the fewest offshore drilling leases in history has faced criticism from Republicans and industry advocates. The controversy surrounding Lease Sale 261 highlights the tension between environmental concerns and the need for domestic energy production. The legal battle and the delayed lease sale have raised uncertainty about the future of offshore drilling in the Gulf of Mexico.
