A federal judge has hit the pause button on new oil and gas drilling permits in Converse County, Wyoming because of some glaring mistakes in the BLM’s data about groundwater availability. The ruling stems from a lawsuit filed by two conservation groups who argue that the environmental review of the project, conducted by the U.S. Bureau of Land Management (BLM), missed the mark.
U.S. District Judge Tanya Chutkan, based in Washington, D.C., sided with the conservationists, pointing out that the BLM had overstated the amount of available groundwater by a staggering margin—10,000 times the actual figure. Given that groundwater is crucial for drilling operations, the error raised serious red flags. Now, the U.S. Department of the Interior and the conservation groups are tasked with suggesting ways to address the problem, with the possibility of the court revoking the project’s approval altogether.
The conservation groups—Powder River Basin Resource Council and Western Watersheds Project—were particularly concerned about how the project, which spans 1.5 million acres and could include up to 5,000 wells, would affect local wildlife like nesting raptors and the sage grouse, as well as air quality. They believe the BLM did not properly account for these impacts.
The project itself, which was green-lit by the Trump administration in late 2020, has been touted by developers as a major economic boon. They estimate it could create 8,000 jobs and generate between $18 billion and $28 billion in federal revenues. However, some local ranchers, including the WI Moore Ranch Co., have expressed fears that the groundwater depletion from such a massive project could harm their operations.
One of the most significant concerns is the protection of the greater sage grouse, a species already facing habitat threats. Environmentalists are worried that changes to BLM regulations could weaken protections for the bird’s habitat in the Douglas Core Area, which could be impacted by the project.
The BLM had already permitted 2,500 wells in the area before the court ruling, though only 582 are currently producing, and many permits remain unused or expired. The Petroleum Association of Wyoming (PAW), an industry group, is disappointed by the ruling, calling the environmental review a “poster child” for how such projects should be handled. They hope the issues can be fixed quickly so the project can continue.
For conservationists, however, this ruling is a step toward ensuring the environment is better protected. They hope the pause on new permits will give the government time to address other concerns, such as seasonal protections for wildlife and the capacity of local communities to deal with the project’s impacts, especially after a wildfire recently scorched the region.
Judge Chutkan’s decision puts the future of the Converse County project on hold for now, leaving both sides waiting to see how the government and the courts will address the significant environmental concerns raised.
