A federal judge ruled that the Bureau of Land Management (BLM) was mostly in its right when it held off on some oil and gas leases over the last four years. Environmental groups say this sets an important precedent. Meanwhile, Wyoming, who initiated the lawsuit, is looking toward the incoming Trump administration for more favorable actions for the industry.
At the heart of the lawsuit are oil and gas lease sales. In order for a company to develop federal land for those resources, they need a lease. To get that requires a BLM auction, which has historically happened quarterly.
But when President Biden took office in 2021, a few sales were paused under an executive order. The BLM wanted to look at environmental impacts from oil and gas development. Industry stakeholders, like the state of Wyoming, said this was illegal, and they sued the federal government.
A ruling by U.S. District Court Judge Scott Skavdahl was released on New Year’s Eve. Environmental groups are calling it a win.
“It's okay for the BLM to choose not to lease for oil and gas on public lands, due to environmental concerns,” said Tom Delehanty, a senior attorney with EarthJustice.
EarthJustice helped represent 17 conservation groups that intervened in the lawsuit to defend the BLM.
“It means that BLM is free to manage our public lands in a more environmentally responsible way in a period where climate change is really turning a corner, and the ability to manage responsibly is just doubly important now,” said Delehanty.
The judge ruled that the BLM had adequate reasoning for two of the three withheld sales in question. But, the third sale required more reasoning and procedure to be withheld.
The judge highlighted this in an example showing a subtle difference. In the other two sales the BLM said it’s, “exercising its discretion to not hold lease sales.” For the third sale, the BLM said it “did not exercise its discretion to hold onshore lease sales in time for sales in the third [quarter] of 2022”.
“The suggestion that declining to lease lands is not an exercise of this discretion and it’s only an exercise of discretion when the decision is made to lease, though, is baseless. Both leasing lands and not leasing lands are exercises of this discretion,” wrote Judge Skavdahl in his decision.
The judge ruled the BLM didn’t have the right to withhold that third sale.
“I would almost call it a technicality,” said Delehanty.
But, Wyoming’s Gov. Mark Gordon is calling that a partial win.
“The Court clearly found that the BLM’s decision to not have the third quarter lease sale in 2022 arbitrary and capricious,” Gordon said in a press release, noting he was disappointed over the rest of the ruling.
It’s unclear how the BLM can remedy its mistake. The judge said it’s not within his power to force the agency to make-up that one sale.
“The briefing in this matter does not offer much assistance in the way of how this Court can correct BLM’s failure to explain its decision concerning a Q3 2022 lease sale,” Skavdahl wrote. “It appears Wyoming simply seeks a declaration that BLM was wrong.”
Notably, a judge cannot order the BLM to hold a “make-up” sale.
“The court basically shrugged its shoulders and said, “I don't know what you want me to do with this, though, because I can't order the agency to actually go lease more lands”,” Delehanty said.
Wyoming has until the end of the month to explain what it’s looking for in a remedy. But, Gordon said he’s focused on possible executive actions from the incoming Trump administration that’ll be pro-oil and gas.
“I am optimistic future federal oil and gas lease sales will be meaningful, contain sufficient acreage, and be consistently held as required,” Gordon said, adding that he expects Trump to “issue a series of energy-focused executive orders favorable to energy producers and ultimately, our nation.”
When Trump first took office in 2017, oil and gas leasing doubled compared to the year prior. Delehanty said his group will be watching how Trump’s administration handles public lands this next go-round.
“So if there's any effort by the administration to skirt those laws, we'll be standing by at the ready to help enforce them,” Delehanty said.
Initial looks at Project 2025, which some consider a blueprint for expected policy under the new Trump administration, show that oil and gas leasing will flourish over the next several years.
In a similar issue dealing with offshore drilling, Biden announced Monday, Jan. 6, that he’s banning oil and gas leasing in most federal waters. According to NPR reporting, it would likely take an act of Congress to undo this executive action
