CEO DATELINE - Oil and gas groups sue over drilling moratorium on federal lands
CEO DATELINE - Oil and gas groups sue over drilling moratorium on federal lands
- August 17, 2021 |
- Walt Williams
The American Petroleum Institute and 11 oil and natural gas industry groups are challenging the U.S. Department of Interior's indefinite pause on new leases for oil and gas drilling on federal lands and waters.
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API announced Monday the coalition had filed a lawsuit in U.S. District Court for the Western District of Louisiana challenging the moratorium, saying the Interior Department ignored congressional mandates when it announced the policy. The Biden administration enacted the pause in January as part of a larger effort to combat climate change.
In a statement, API Senior Vice President and Chief Legal Officer Paul Afonso said the law is clear: the Interior Department must hold lease sales and provide a justification for significant policy changes.
"They have yet to meet these requirements in the eight months since instituting a federal leasing pause, which continues to create uncertainty for U.S. natural gas and oil producers," Afonso said. "As our industry takes action to preserve our legal rights, we will continue working with the Biden administration on policies that support a lower-carbon future while providing access to the affordable, reliable energy our economy needs to recover."
Joining API in the lawsuit is the American Exploration & Production Council, Independent Petroleum Association of America, International Association of Drilling Contractors, International Association of Geophysical Contractors, National Ocean Industries Association, Montana Petroleum Association, North Dakota Petroleum Council, Petroleum Alliance of Oklahoma, Southeast Oil and Gas Association, Utah Petroleum Association and Western States Petroleum Association.
A dozen states previously sued the agency over the moratorium and a federal judge has blocked its implementation, although the administration has appealed that decision.
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