Monday, October 30, 2023

BOEM’s Gulf of Mexico Lease Sale 261 will or won’t it happen; saga continues…...!

Happy Monday and welcome back to another week of ESC News Blog.

Well, we knew that the saga would continue and looks like the next chapter has been unleashed. Let’s give you a little recap!  Back at the end of August the Department of Interior’s Bureau of Ocean Energy Management (BOEM) was being sued by the Oil and Gas Industry for reducing the acreage by about 6 million acres and making new terms and restrictions for the lease sale because of the endangered species which lives in the northern Gulf of Mexico and the environmentalists sued to stop the sale and the revised terms were part of an agreement with them to hold the lease sale.  The Oil and Gas Industry’s case had its day in court on September 21, 2023, the U.S. District Court for the Western District of Louisiana and the Honorable Judge, James David Cain, Jr., ruled the BOEM must return to the original lease sale terms and acreage announced back in March because the changes came at the last minute and the proper steps were not taken.  By the end of the week the BOEM filed an emergency request to allow the sale to proceed, but leave the new restrictions, and the environmentalist also filed an appeal with the U.S. Court of Appeals for the 5th Circuit in New Orleans.  The following week the U.S. Court of Appeals for the 5th Circuit sent down a ruling delaying the September 27, 2023, Oil and Gas Lease Sale 261 to November 8, 2023, to allow for them to consider the request.  Now you are up to date in this saga.

Did anyone see The Houston Chronicle’s Business Section on October 28, 2023, they had an article titled, “5th Circuit ruling puts Gulf oil, gas lease sale in jeopardy”?  In the article, it speaks about the Gulf of Mexico Oil and Gas Lease Sale 261, which was scheduled for Wednesday, November 8, 2023, and how arguments for the emergency request have been set for November 13, 2023 in New Orleans, Louisiana with the U.S. Court of Appeals for the 5th Circuit has been stayed by the court for now.  The court’s ruling on October 26, 2023, to stop the sale for now seems to have thrown everyone for a loop!  The Energy Natural Resource Committee believes the sale should go on as originally posted before the revised sale terms in August as specified in the Inflation Reduction Act and after the hearing they had on Thursday, October 26, 2023.  It will be interesting to see how this will play out in regard to will or won't the scheduled lease sale happen!  If you would like to read more of The Houston Chronicle’s article, please click the link: Gulf lease sale in jeopardy after stay by 5th Circuit (houstonchronicle.com).

Check out our blog at the August and September for more details about this saga.

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We hope you have a wonderful evening and a great week! Keep warm!

**Disclaimer: You may be charged a fee to read The Houston Chronicle’s article. **