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BLM Ordered to Reassess Wyoming Oil Leases

BLM, Oil, Wyoming, Lease

A federal judge has mandated the U.S. Bureau of Land Management (BLM) to halt the issuance of new oil and gas drilling permits on nearly 120,000 acres of federal land in Wyoming. This decision, rendered by U.S. District Judge Christopher Cooper, stems from a need to reassess the environmental impacts associated with a controversial lease sale.

Judge Cooper’s ruling on Tuesday comes on the heels of his March verdict, which found that the BLM had not adhered to the National Environmental Policy Act (NEPA) when it decided to auction the land for oil and gas development in 2022. The NEPA is a cornerstone environmental law that requires federal agencies to assess the environmental effects of their proposed actions prior to making decisions.

In siding with several conservation groups, Judge Cooper highlighted that the BLM had not properly evaluated the potential environmental impacts of future drilling activities. More specifically, the judge pointed out that the agency failed to adequately explain how it considered the potential climate harms resulting from greenhouse gas emissions produced by drilling operations.

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The judge’s March ruling did not specify any immediate remedies to address these deficiencies, leaving the door open for further legal action. Conservation groups, including the Wilderness Society, urged the court to completely vacate the BLM’s decision and nullify the leases resulting from the 2022 sale. These groups argued that such a drastic measure was necessary to ensure compliance with environmental regulations and to protect the climate.

However, Judge Cooper stopped short of canceling the lease sale outright. He noted that, although no drilling had commenced on the leased land, canceling the lease sale would have substantial real-world repercussions. This would include the need to refund $13 million in sale proceeds and potentially derail the time and effort that developers have invested in preparing for permitting and drilling activities. The judge acknowledged the significant disruption that vacating the leases would cause, stating, “In light of the ‘serious possibility’ that the Bureau will be able to substantiate its prior conclusions and the disruptive effects of setting aside the existing leases, the Court finds that vacatur is not the appropriate remedy in this case.”

To maintain a balance, Judge Cooper chose to preserve the status quo by enjoining the approval of new drilling permits. This means that while the leases remain valid, no new drilling activities can proceed until the BLM completes a thorough environmental review. The judge has given the BLM 180 days to finalize this new environmental analysis.

The legal battle over this lease sale has been complex, influenced by a prior court order in 2021. A federal judge in Louisiana had previously blocked President Joe Biden’s administration from pausing drilling auctions to assess their climate impacts, setting the stage for the Wyoming lease sale to move forward despite ongoing environmental concerns.

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The lawsuit, filed by conservation groups, underscores the ongoing tension between energy development and environmental protection. It is part of a broader trend of increased scrutiny over federal land management practices and their implications for climate change.

As of now, neither the BLM nor the lawyers representing the conservation groups have commented on the recent ruling.

This decision is a notable example of the judicial system’s role in balancing the interests of environmental stewardship and energy development. It highlights the complexities of managing federal lands in an era where climate considerations are increasingly at the forefront of policy and legal debates. The outcome of the BLM’s new environmental analysis, due in 180 days, will be closely watched by stakeholders on all sides of the issue.

This ruling also serves as a reminder of the intricate legal and regulatory framework governing oil and gas development on federal lands, and the critical role of thorough environmental assessments in guiding these decisions. The interplay between legal mandates, environmental protection, and energy needs continues to shape the landscape of federal land management in the United States.

The case is Wilderness Society v. U.S. Department of Interior, U.S. District Court for the District of Columbia, Case No. 1:22-cv-01871.
For the environmental groups: Alexandra Schluntz and Seth Johnson of Earthjustice
For BLM: Luther Hajek of the U.S. Department of Justice
For Wyoming: Shannon Leininger and Travis Jordan of the Wyoming Attorney General’s Office
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