Page 18: of Marine News Magazine (October 2023)

17 19

Column

Offshore

Delayed Lease Sales, Delayed Progress:

Our Offshore Energy Predicament

By Erik Milito, NOIA practice holds signi? cant consequences, all but ensuring no

This fall, the offshore lease sales in 2024 and a likelihood of delay through 2025.

energy industry faces

On top of that, the looming threat of meritless litiga- signi? cant uncertainty regarding the resumption of the tion came to the forefront in July 2023 when the Biden federal offshore oil and gas leasing program. While uncer- administration reached a voluntary settlement with activist tainty is not uncommon in our industry, the current situa- groups regarding protections for the Rice’s whale, a species tion is particularly perplexing. already protected under the Endangered Species Act (ESA)

For some time now, we’ve eagerly awaited the launch of and the Marine Mammal Protection Act (MMPA).

the upcoming federal offshore oil and gas leasing program, This agreement allowed the administration to bypass mandated by law. Astonishingly, a replacement program Congress, the public, and the regulatory processes, dis- was not in place when the previous leasing program ex- regard scienti? c input, and impose extensive restrictions pired in June 2022. As of writing, the next offshore oil while removing millions of prime acres from the Septem- and gas leasing program remains unreleased, although we ber 2023 Gulf of Mexico oil and gas lease sale, which is anticipate its arrival shortly. the last lease sale on the horizon without the next leasing

This uncertainty poses substantial challenges for our in- program taking effect. These restrictions deviated substan- dustry, impacting our ability to plan for the future, make tially from established best practices and introduced vessel investments, and ensure the continued production of a speed limits, along with restrictions on night travel and historically reliable source of American-made energy. travel during periods of low visibility, across a vast area that

Traditionally, the environmental work necessary for off- extends throughout the entirety of the Gulf of Mexico.

shore lease sales proceeds concurrently with the leasing pro- A last-minute preliminary injunction, just days before gram’s development. This ensures the timely completion of Gulf of Mexico Lease Sale 261 was scheduled, struck down essential environmental studies, facilitating predictable lease these restrictions and restored the acreage for lease sale. sales. However, the Department of the Interior has indicated The U.S. District Court for the Western District of Loui- they will not initiate this environmental work until after ? - siana’s determined that the challenged actions were proce- nalizing the leasing schedule. This deviation from established durally invalid, and Interior’s decision was arbitrary and © Troy V Smith / Adobe Stock 18 | MN October 2023