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Judge pauses Wyoming oil and gas drilling leases pending review

July 17, 202411:13 AM Reuters0 Comments

A federal judge has ordered the U.S. Bureau of Land Management to pause approving new permits to drill for oil and gas on nearly 120,000 acres of federal land in Wyoming until it finishes reevaluating the environmental impacts of a lease sale.

Tuesday’s decision by U.S. District Judge Christopher Cooper in Washington, D.C., followed his March ruling finding BLM did not comply with the National Environmental Policy Act when it decided to auction the land for oil and gas development in 2022.

Siding with conservation groups, Cooper in that ruling said BLM failed to comply with the law when assessing the impacts of future drilling and did not adequately explain how it considered potential climate harms from greenhouse gas emissions produced by drilling.

Cooper had not ordered any remedies to address those deficiencies in his March ruling. Conservation groups including the Wilderness Society urged him to fully vacate BLM’s decision and the leases resulting from the sale.

But Cooper said that while no drilling had yet occurred on any of the leased land, cancelling the lease sale would have “real-world repercussions,” forcing a refund of $13 million in sale proceeds and jeopardizing time and effort developers spent gearing up for permitting and drilling.

“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,” Cooper wrote.

The judge, an appointee of Democratic former President Barack Obama, instead sought to preserve the status quo by enjoining the approval of drilling permits. He gave BLM 180 days to complete its new environmental analysis.

BLM and lawyers for the conservation groups did not respond to requests for comment on Wednesday.

The lawsuit had been filed to challenge a lease sale that was set in motion by a 2021 court order by a federal judge in Louisiana who blocked President Joe Biden’s administration from pausing drilling auctions to assess climate impacts.

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

(Reporting by Nate Raymond in Boston)

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