Thursday, November 16, 2023

The U.S. Court of Appeals for the 5th Circuit has made their ruling on the lease sale, and the BOEM’s Gulf of Mexico Lease Sale 261 will happen on December 20, 2023!

Happy Thursday! 

Have you happened to see our blog at the end of August, September 27, October 5, and October 30, 2023 about the drama over the Gulf of Mexico Lease Sale 261? I’ll give you a recap of the soap opera.  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 to make the changes.  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. Then at the end of October 2023, the U.S. Court of Appeals for the 5th Circuit issued a stay on the sale which was scheduled for November 8, 2023, so they could have time to have arguments on November 13, 2023.   

Did anyone happen to read the Oil & Gas Journal’s Newsletter on November 15, 2023, their article titled, “Appeals court orders BOEM to go ahead with Gulf of Mexico oil, gas lease sale”?  In the article, it goes on to speak about the U.S. Court of Appeals for the 5th Circuit in New Orleans had the arguments on November 14, 2023 and made their ruling.  The 5th Circuit ruled the original sale must be held in 37 days or by December 22, 2023, as originally posted with no reduced acreage and no restrictions.  During court it was admitted the Endangered Species Act process is ongoing for the Rice Whales and at some point, restrictions could be added.  The court noted a winning tract still has to file an exploration plan and restrictions could be added.   The Plaintiffs of the case were satisfied with the ruling and timeline.  If you would like to read more of the Oil & Gas Journal’s article, please click the link:   https://www.ogj.com/general-interest/government/article/14301569/appeals-court-orders-boem-to-go-ahead-with-gulf-of-mexico-oil-gas-lease-sale?o_eid=7683F9823212A5B&oly_enc_id=7683F9823212A5B&rdx.ident[pull]=omeda|7683F9823212A5B&utm_cam.

Did anyone receive an email from the BOEM today?  BOEM announced the Gulf of Mexico Lease Sale 261 will be on December 20, 2023.  The BOEM’s Final Notice of Sale will be on the Federal Register on November 20, 2023.  If you would like to see the notice for the scheduling of the lease sale from the BOEM, please click the link: Oil and Gas Lease Sale 261 Scheduled | Bureau of Ocean Energy Management (boem.gov).

If you would like help in looking into how to transport your product efficiently, safely, and with less of a carbon footprint or just find out what is underneath your feet to help with your emission reduction goals, contact us via email in the blog and check out our ESC's website!

We hope you have a wonderful evening and a great rest of your week!  

**Disclaimer: You may be charged a fee to read The Oil and Gas Journal’s article. **