GOM - US postpones Gulf of Mexico oil and gas auction due to litigation (with news compilation)
Nov 2 (Reuters) - The Biden administration on Thursday postponed a Nov. 8 sale of offshore drilling rights in the Gulf of Mexico pending the outcome of a lawsuit over oil and gas development and federal protection of an endangered species of whale.
The move comes after a U.S. appeals court on Oct. 26 temporarily paused a lower court order requiring the Interior Department's U.S. Bureau of Ocean Energy Management (BOEM) to expand the auction, which was originally scheduled to be held in September.
Oral arguments are scheduled for Nov. 13 in New Orleans.
"Until the court rules, BOEM cannot be certain of which areas or stipulations may be included in the sale notice," the bureau said in a statement.
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Read also
Oil and Gas Lease Sale 261 Postponed Pending Further Direction from the Fifth Circuit Court of Appeals, Bureau of Ocean Energy Management / November 02, 2023
Biden administration postpones offshore lease sale, prompts condemnation from oil trade group, WorldOil / November 02, 2023
BOEM postpones Lease Sale 261 due to litigation, Offshore magazine / November 02, 2023
Alaska sues Interior Department to revive oil and gas leases in ANWR, Wrangellsentinel / November 01, 2023
Gulf oil and gas lease sale off again, pending a federal hearing / Greater Baton Rouge Business Report / November 02, 2023
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The oil and gas industry and the state of Louisiana had sued the Interior Department in August over its decision to scale back the auction to reduce conflicts with Rice's whale habitat.
The American Petroleum Institute (API), an oil industry trade group that is a plaintiff in the lawsuit, criticised the postponement.
"The Department of the Interior continues to demonstrate its willingness to ignore the clear and growing need to expand American energy leadership and reduce reliance on foreign energy sources," Holly Hopkins, vice president of upstream policy at API, said in a statement.
