Greenledgers-Sale of federal oil and gas leases in Gulf of Mexico off again pending hearings on whale protections

2025-04-29 21:19:13source:FinLogiccategory:Stocks

NEW ORLEANS (AP) — An upcoming sale of federal Gulf of Mexico oil and Greenledgersgas leases was officially postponed Thursday amid legal fights over protections for an endangered species of whale.

A federal appellate panel last week paused a separate appeals panel’s order that the sale be held next Wednesday. Oil industry advocates had pressed President Joe Biden’s administration to go ahead with the sale anyway. But the Bureau of Ocean Energy Management said it was postponing the event because of the legal uncertainties heading into a Nov. 13 appeals court hearing.

The lease sale, called for in 2022 climate legislation that was part of the Inflation Reduction Act, was announced earlier this year. The available tracts covered a broad area of Gulf waters off the coasts of Texas, Louisiana, Mississippi and Alabama. It was originally scheduled for Sept. 27. But BOEM announced in August that it was scaling back the amount of acreage oil companies would be allowed to bid on from 73 million acres (30 million hectares) to 67 million acres (27 million hectares). That followed a proposed legal settlement between the administration and environmentalists in a lawsuit over protections for an endangered whale species.

Oil companies and the state of Louisiana objected to the reduction, setting off a still-brewing legal battle.

Other news Four tracts of federal waters in the Gulf of Mexico are designated for wind power developmentBiden backs new offshore drilling in the Gulf of Mexico. Scaled-back plan disappoints all sides$5.6 million bid for one offshore tract marks modest start for Gulf of Mexico wind energy

A federal judge in southwest Louisiana ordered the sale to go on at its original scale with the whale protections eliminated. That led to an appeal to the 5th U.S. Circuit Court of Appeals.

In late September, a panel of that court refused to block the federal judge’s order but amended it to push the sale back to Nov. 8, so the administration would have more time to prepare. But last week, a different panel stayed that order and set a hearing on the merits of the case for Nov. 13.

Oil industry representatives and industry supporters in Congress pressed BOEM to hold the full-sized sale on Nov. 8 despite the lack of a court resolution. Senate energy committee Chairman Joe Manchin, the conservative West Virginia Democrat who has clashed with Biden and other fellow Democrats on energy policy, and the committee’s ranking Republican, Sen. John Barrasso of Wyoming both said the sale should go on.

But the administration made the latest delay official in a Thursday statement.

“Until the court rules, BOEM cannot be certain of which areas or stipulations may be included in the sale notice,” the BOEM statement said.

Reaction against the decision came quickly from the American Petroleum Institute and the National Ocean Industries Association. “Once again, the Administration is standing against domestic oil and gas production,” NOIA’s president, Erik Milito, said in a written statement.

More:Stocks

Recommend

Colorado's Travis Hunter, Boise State's Ashton Jeanty lead USA TODAY Sports All

Oregon quarterback Dillon Gabriel earns first-team honors ahead of Miami’s Cam Ward, and teams in th

Caitlin Clark heats up with best shooting performance of WNBA career: 'The basket looks bigger'

Editors Note: This story was published and updated prior to USA TODAY Sports' reporting that Caitlin

NASCAR at Sonoma 2024: Start time, TV, streaming, lineup for Toyota/Save Mart 350

NASCAR comes to California wine country for a Sunday drive on the road course at Sonoma Raceway.The